Upsize Minnesota July/August 2022

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KAM TALEBI

TALKS BUILDING A RESTAURANT COMPANY DURING COVID

PLUS: HOW

“ Having somebody else talk about us in a great way is more powerful than me telling you my company is great”

TO SURVIVE THE UPCOMING RECESSION

Gwen Martin Partner, Scouts Talent

MARKETING MOJO Ensuring marketing pays off depends on front-end planning

Jeff Wessels President/COO

We believe that uncertain times create uncommon opportunities.

We believe that uncertain times create uncommon opportunities.

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EQUAL HOUSING LENDER

CONTENTS July • August 2022 • Vol. 21 No. 4 • www.upsizemag.com

PAGE 12

Cover story

It’s harder than ever to determine the return on any one of your marketing tactics. Experts and business owners say it’s more important to plan ahead, set a goal and make sure you hit that mark

BY ANDREW TELLIJOHN Cover photograph by Tom Dunn

PAGE 4

Founder’s Forum:

BUSINESS BUILDERS

Jill Johnson, owner of Johnson Consulting Services, PAGE 6 talks with Upsize Founding Editor Beth Ewen about BANKING mentorship Get the basics on the benefits of applying for SBA loans PAGE 4

by Paul Poncin, Hiawatha Bank

Staff list:

Who’s who at Upsize magazine and how to reach us.

Upsize Minnesota (USPS 024-029) is published bi-monthly by Broad Axe Media, 2908 W 71 1/2 St., Richfield, MN 55423. Periodicals postage paid at St. Paul, MN and additional mailing offices.

Postmaster: Send address changes to Upsize Minnesota, PO Box 23238, Richfield, MN 55423-0238

PAGE 8

LAW

Background, history and need to know info on raising money through crowdfunding

by Jeffrey O’Brien, Chestnut Cambronne

PAGE 10

MARKETING Don’t forget about traditional media as you’re planning your next marketing push

by Bonnie Harris, Wax Marketing

COLUMNS PAGE 18

FEATURE We’re well into an inflationary period that economists say will likely be followed by a recession. Experts offer tips for plowing forward through another challenge PAGE 22

CATCHING UP Kaskaid Hospitality co-founder and CEO Kam Talebi talks about focusing on fundamentals, seeing opportunities in difficult times PAGE 28

BACK PAGE Kelvin Johnson Jr., co-founder and CEO of Brevity Pitch, launches his company and a book, “Don’t Fear the Sharks,” all coming up this fall

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A sharp dose of Jill Johnson FOUNDING PUBLISHER Wes Bergstrom

EDITOR AND PUBLISHER Andrew Tellijohn atellijohn@upsizemag.com

FOUNDING EDITOR Beth Ewen bewen@upsizemag.com

DESIGN DIRECTOR Jonathan Hankin jhankin@upsizemag.com

CHIEF FINANCIAL OFFICER Dan O’Connell dano@upsizemag.com

PHOTOGRAPHER

Tom Dunn tom@tomdunnphoto.com

HOW TO REACH US To subscribe visit www.upsizemag.com/subscribe With story ideas email Andrew Tellijohn, atellijohn@upsizemag.com To advertise email Andrew Tellijohn, advertising@upsizemag.com To order reprints backissues@upsizemag.com To order extra or back issues email backissues@upsizemag.com To suggest Web resource links, info@upsizemag.com

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Main: 612.827.5290 www.upsizemag.com © 2022 Upsize Minnesota Inc. all rights reserved

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UPSIZE JULY • AUGUST 2022

W

hen Jill Johnson saw a job candidate in a client’s lobby, “this gorgeous young woman chomping gum, I said, ‘lose the gum,’” and the woman did and was hired.

When a mentee got into Sandra Day O’Conner College of Law but called to say he was struggling, “I said ‘get back on the horse. You know what you need to do.’ He ended up with the second highest score.”

And in the airport when she spied a young woman who said she was nervous for a job interview, “for what, becoming a stripper?” Johnson asked, advising a change of clothes and also confidence. “Oh, for God’s sake. When you walk in the room, shake hands. Of course, she got the job.”

The spicy advice is vintage Johnson, who started Johnson Consulting Services in 1987 with clients including Mayo Clinic, Salvation Army and Fairview. Last year she added a Minnesota Icon award from Finance & Commerce to a long list of accolades, in large part because of her mentorship to young professionals.

She figures she’s advised at least 100 people in formal and informal relationships that often last for years. In the beginning of each, “I would test them” to see how much they wanted to work with her. “I need you to like Sammy the Rottweiler on Facebook and connect on LinkedIn,” she would say, referring to one of her beloved dogs.

“I have the ability to see the success of their future when they can’t,” she said. “I’m pretty good at seeing people.

It’s part of the skill I have in consulting.

And I’m an old broad now, been to the rodeo a few times.”

In an article called “Beyond Mentoring: Coaches, Champions and Cardinals,” she debunks the idea that everybody needs only one mentor. You need many, she believes. “The cardinal is the person who flies into your life, sings you a pretty song you’ve never heard before and flies away,” she said. “For me

that man was Bob Cardinal,” SVP for a large management consulting firm who spoke at a Junior Achievement event in Chicago, right after Johnson graduated from high school. “I walked out of that luncheon and I said, ‘that’s me.’ I do a lot of Bob Cardinals.”

Johnson’s father didn’t graduate from high school and owned a small auto body shop in Hudson, Wisconsin.

Her mother was an executive secretary at 3M. “She ran the division. She was the spitfire,” Johnson said about her late parents. “I have my dad’s sense of humor, which is disarming. She was the cattle prod of expecting more.”

Her books and workbooks include “Compounding Your Confidence,” which she summed up in three parts.

“Those are what I call progressions.

You progress a skill through small, incremental improvements,” she said.

“The second part of that is practice. I tell people, ‘Get involved in trade associations. You can do different things’ and if you mess up you can recover.”

“And the third thing is how you present yourself. Do you walk in and own it?”

Anyone can mentor others, she believes. “I call it throwing pixie dust.

There are random opportunities that the universe creates for us. I find that it’s really invigorating.”

—Beth Ewen founding editor bewen@upsizemag.com

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Advice driven by advocacy.®

One of the best parts about being a financial advisor is seeing the individuals and families we work with go from building assets to actually using them to help fund their retirement. Helping clients transition to the stage they’ve been planning for all this time is really rewarding.

Lucas Traxler, CFP®

Advisor JNBA Financial Advisors

A client-first and conflict-free philosophy: that’s how JNBA Financial Advisors has operated since our founding days over 40 years ago. Since we began tracking in 2001, we have been fortunate to maintain a client-retention rate of 97 percent. And, Barron’s has ranked JNBA and CEO Richard S. Brown #1 in Minnesota on its Top 1,200 list for two consecutive years.* To learn more about how advice driven by advocacy® could help you and your family, begin a conversation with our team by calling us or visiting JNBA.com.

MINNEAPOLIS: 952.844.0995 | DULUTH: 218.249.0044 | BONITA SPRINGS, FL: 800.675.4793 | JNBA.COM *As seen in the 3/15/21 & 3/14/22 issues of Barron‘s magazine. Barron‘s is a trademark of Dow Jones & Company, Inc. All Rights Reserved. Please Note: Limitations: Neither rankings and/or recognitions by unaffiliated rating services, publications, media, or other organizations, nor the achievement of any professional designation, certification, degree, or license, membership in any professional organization, or any amount of prior experience or success, should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if JNBA is engaged, or continues to be engaged, to provide investment advisory services. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser. Rankings are generally limited to participating advisers (see link as to participation criteria/methodology, to the extent applicable). Unless expressly indicated to the contrary, JNBA did not pay a fee to be included on any such ranking. No ranking or recognition should be construed as a current or past endorsement of JNBA by any of its clients. ANY QUESTIONS: JNBA’s Chief Compliance Officer remains available to address any questions regarding rankings and/or recognitions, including the criteria used for any reflected ranking. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by JNBA Financial Advisors, LLC (“JNBA”)) or any non-investment related services, will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation or prove successful. A copy of our current written disclosure Brochure discussing our advisory services and fees is available upon request. The scope of the services to be provided depends upon the needs of the client and the terms of the engagement. Please see important disclosure information at jnba.com/disclosure.

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banking

BUSINESS BUILDERS

SBA lending: What you need to know

by Paul Poncin

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Interest rates associated with SBA loans are typically on the lower end of the payment spectrum.

Monthly payments are typically up to 25 years for real estate and 10 years for equipment and working capital, which provides flexibility necessary to structure payments in line with your growth.

You should always have a plan for what you intend to do with your small business loan, whether it’s an SBA loan or a different product, but SBA lending is less restrictive in the specifics of how the funds are used.

There may be some unique challenges to getting funding from the SBA. It can take 60 days or more. The lender may charge a packaging fee. And the SBA may require a guarantee.

You may also need a statement of purpose or a letter explaining the request, a business plan and specific financial documentation for your situation and possibly that of your co-owners, who will need to be all in with you too.

UPSIZE JULY • AUGUST 2022

There are many different types of financing available to small business owners, but the advantages attached to loans from the U.S. Small Business Administration can make them hard to beat. These advantages may include lower interest rates, longer payment terms and manageable fees.

The SBA guarantees the loans, which lowers lenders’ risks, thus allowing them to help qualified entrepreneurs when the risks might otherwise be too great.

There are three types of SBA loans, each with their own terms, conditions and advantages: • SBA 7(a) loans offer $5 million in guarantees and terms up to 10 years and longer with real estate involvement.

• CDC/504 loans are meant specifically for real estate purchases and equipment purchases with terms up to 25 years.

• Microloans are usually under $50,000 with shorter payback periods.

In addition to being available for different business goals, here are some other advantages business owners should be aware of: 1. Low interest rates Taking out a small business loan comes with worries about what that loan will cost in the long run. Interest rates rising or changing is always a big concern. SBA loans are typically on the lower end of the spectrum. SBA 7(a) loans cap the margin a lender can offer. CDC/504 loans have longer fixed-rate terms and SBA microloans are different but equally inexpensive compared to the rest of the market.

2. Capital availability Most business owners spend considerable time in search of capital. Banks don’t like risk, often putting small business owners in a tough spot. The emergence of alternative lenders and non-bank business loans have made the marketplace even more confusing, and those easy-to-qualify loans may not be a good deal in the long run.

An unbeatable advantage of SBA loans is the access to capital they allow. Because the SBA works with lenders, mostly banks, the bank may feel more comfortable offering you a multimillion-dollar loan than if you were seeking financing without the guarantee. This significantly decreases the bank’s risk.

3. Repayment terms The length of repayment terms offered through SBA loans are unlikely to put a financial strain on your business.

Monthly payments are typically up to 25 years for real estate and 10 years for equipment and working capital, depending upon the lenders’ policies and guidelines. This offers the flexibility you need to structure payments in line with your growth.

4. Down payments Depending upon the type of financing you are seeking your lender will generally ask for a down payment.

That can vary depending upon the amount of money you are borrowing, the purpose of the loan, your financial profile and the general policies of your lender.

SBA loans generally require some down payment, but it’s typically lower than other types of lending would require – possibly as low as 10 percent of the total request.

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5. Flexibility in terms of use Some business loans come with specific terms dictating how you can use those funds. That doesn’t have to be a bad thing. For example, when you apply for equipment financing, you are looking to meet a specific need. But sometimes owners just need money.

You should always have a plan for what you intend to do with your small business loan, whether it’s an SBA loan or a different product. You generally will not get approved without a plan for the money, but business does not always go as planned so flexibility sure can help.

SBA 7(a) loan funds can be used for almost any business purpose. The terms of the loan are pretty broad and you can use funds to refinance existing debt, buy business real estate, purchase inventory and more. If it’s a business need, it may be eligible.

Other SBA loans are a bit less flexible in purpose. The CDC/504 loans, for example, are for fixed assets, including real estate and equipment. But SBA loans will still have an advantage in terms of flexibility of use. You just need to find the right program for your need.

6. Unique program details Depending upon which program you choose, there may be some unique details that should not be overlooked.

Time to funding may take a little longer, often 60 days or more. The lender may also charge a packaging fee and the SBA may need a guarantee fee depending upon the situation.

You also generally will be required to pledge collateral to your ability to do so. However, the SBA guarantee may make the lender more comfortable extending credit significantly beyond what is available for collateral, making an SBA loan a good tool for expanding your business when other sources of

financing may not be available.

So, how do you qualify • Generally, SBA loans are easier to qualify for than conventional loans. They do often require extensive financial documentation but if you get past that, getting to funding is generally easier.

The SBA has no hard, fast rules around credit scores, revenue requirements or general business profile. They leave some room for the lenders to define what is acceptable to them within their loan policies. So, business owners must ask SBA lenders questions to determine their fit, such as: • Do you have a minimum credit score requirement?

• How long do you need to be in business?

• Do startups qualify?

• Do you have a minimum annual revenue requirement?

The SBA generally will be looking for other non-negotiable items including: • Personal investment in the business.

• Be a for-profit business • Do business in the U.S. • Have explored other financing options Don’t forget the paperwork In addition to personal information and financial documentation, you may need: A statement of purpose or a letter explaining the request, a business plan and very specific financial documentation for your situation and possibly that of your co-owners, who will need to be all in with you too.

“ Because the SBA works with lenders, mostly banks, the bank may feel more comfortable offering you a multimilliondollar loan than if you were seeking financing without the guarantee.”

Paul Poncin Hiawatha Bank

Contact: Paul Poncin is managing director of Hiawatha National Bank: 651.307.0579; pponcin@HNBank.com; www.HNBank.com; in/paul-poncin

www.upsizemag.com

JULY • AUGUST 2022 UPSIZE

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law

BUSINESS BUILDERS

Show me the money: Equity crowdfunding under Regulation CF

by Jeffrey O’Brien

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Websites such as Kickstarter allow for contributions, but they do not entitle the giver to profits resulting from the enterprise.

Securities purchased in a Regulation CF offering may not be resold for a year. Holders of the securities would not count toward the threshold requiring a company to register with the SEC. Companies that conduct Regulation CF offerings must file certain information with the SEC and make it available to investors and to the intermediary that is used to facilitate the offering.

Regulation CF transactions must be conducted through an SECregistered intermediary, which will be either a broker-dealer or a funding portal.

The intermediaries will conduct offerings through online platforms, are required to provide investors with educational materials outlining the risks of investing and must take measures to reduce fraud risks.

UPSIZE JULY • AUGUST 2022

Obtaining equity capital is

perhaps the most complicated and costly legal issue involved with starting and growing a business. Since the 1930s, businesses have had to comply with strict requirements in both federal and state securities laws, particularly with respect to smaller investors. These difficulties ultimately led to the passage of equity crowdfunding laws.

The 2012 JOBS Act allowed businesses to tap large and small investors alike with the promise of ownership in the business and loosened the solicitation rules for larger investors to allow businesses to cast a wider net for funds with the goal of simplifying the fundraising process. Three years later, the Securities and Exchange Commission (SEC) enacted Regulation CF. In March 2021, the SEC finalized amendments to Regulation CF to expand the amount(s) which could be raised via the exemption.

What is a “security” A key issue in raising money is whether or not what is being sold is a “security.” With websites such as Kickstarter, businesses offer rewards in exchange for a contribution with the clear understanding that the contribution does not entitle the person to any profits in the enterprise. Legally speaking, a “security” means any note, stock, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement.” In other words, you do not have to be selling shares of stock to be engaged in the sales of a “security” under the law.

Registration vs exemption The sale of securities became heavily regulated when, in the aftermath of the 1929 stock market crash and in the midst of the Great Depression, Congress enacted the Securities Act of 1933. This Act created the SEC as the federal regulatory agency having jurisdiction and oversight over the

raising of investment capital. Under the Act, a company seeking to raise funds, defined in the Act as the “issuer,” must either register its offering with the SEC (i.e., a “public offering”) or qualify for one of several exemptions. Most small private company offerings are made under exemptions set forth in Regulation D, particularly Rules 504, 506(b) and 506(c).

JOBS Act & “equity crowdfunding” In response to the success of rewards-based crowdfunding and demand from the startup community to streamline businesses’ ability to raise capital, Congress passed the JOBS Act in 2012.

The centerpiece of the 2012 Jumpstart Our Business Startups Act (the “JOBS Act”) was the creation of an exemption to permit securitiesbased or equities-based crowdfunding without registering the offerings with the SEC. Until the JOBS Act and the promulgation of Regulation CF, crowdfunding was not a legal means of raising equity capital.

A company issuing securities in reliance on Regulation CF can raise a maximum aggregate amount of $5 million in a 12-month period. Investors are permitted to invest, during any 12-month period, up to $2,200, or 5 percent of their annual income or net worth, whichever is greater, if both their annual incomes and net worth are less than $107,000. Investors may invest up to 10 percent of their annual income or net worth, whichever is greater, if either is equal to or more than $107,000.

Securities that are purchased in a Regulation CF offering may not be resold for a year and holders of the securities would not count toward the threshold that requires a company to register with the SEC under Exchange Act Section 12(g).

Companies that conduct Regulation CF offerings must file certain information with the SEC via Form

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C and make it available to investors and to the intermediary that is used to facilitate the offering. The offering document must include information about officers, directors and holders of more than 20 percent of the issuer’s securities. The disclosure would include a business description, the offering terms, a description of the use of the proceeds from the offering and the price of the securities being offered.

The Form C disclosure includes certain related-party transactions, a description of the financial condition of the company and its financial statements. Companies would be required to update the offering document to include material changes and to provide updates about the progress in reaching the targeted offering amount. Crowdfunding issuers also must file annual reports with the SEC and provide annual reports to investors.

Regulation CF’s financial disclosure requirements differ based upon the amount of the offering: • For offerings less than $250,000, the issuer must provide financial statements and certain information from the issuer’s federal income tax returns, both certified by the principal executive officer.

If, however, financial statements of the issuer are available that have either been reviewed or audited by a public accountant that is independent of the issuer, the issuer must provide those financial statements instead and will not need to include the information reported on the federal income tax returns or the certification of the principal executive officer.

• For offerings from $250,000 but not more than $1,070,000,

financial statements must be reviewed by a public accountant that is independent of the issuer.

If, however, financial statements of the issuer are available that have been audited by a public accountant that is independent of the issuer, the issuer must provide those financial statements instead and will not need to include the reviewed financial statements.

• For offerings of more than $1,070,000, financial statements must be audited by a public accountant that is independent of the issuer.

Regulation CF transactions must be conducted through an SEC-registered intermediary, which will be either a broker-dealer or a funding portal. The intermediaries will conduct the offerings through online platforms. Intermediaries will be required to provide investors with educational materials that outline the risks of investing. They also must take measures to reduce the risk of fraud.

Funding portals may not offer investment advice or make recommendations. They may not solicit purchases, sales or offers to buy securities offered or displayed on their websites. The proposed rules impose restrictions on compensating people for solicitations and prohibit the funding portals from holding, possessing or handling investor funds or securities. The proposal includes a safe harbor under which funding portals can engage in certain activities consistent with these restrictions.

“ With websites such as Kickstarter, businesses offer rewards in exchange for a contribution with the clear understanding that the contribution does not entitle the person to any profits in the enterprise.”

Jeffrey O’Brien Chestnut Cambronne PA

Contact: Jeffrey O’Brien is a partner with the Minneapolis law firm of Chestnut Cambronne PA. F: (612) 336-1298 or via email at jobrien@chestnutcambronne.com; www.chestnutcambronne.com; in/jeffreycobrien www.upsizemag.com

JULY • AUGUST 2022 UPSIZE

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marketing

BUSINESS BUILDERS

Traditional media matters … for nontraditional reasons

by Bonnie Harris

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Get to know your audience’s behavior beyond their digital devices. Where are their eyes then? Are they driving to pick up kids from daycare? Running to catch a plane? Reading a magazine?

Create a strong message and boost your primary outreach with focused paid-media buys. Many traditional salespeople are quite good at helping you plan buys based on your budget.

Radio still reaches 83 percent of all adults in the U.S. on a weekly basis. Focused radio programs are often the most effective, especially when marketing to a specific community.

Make sure you understand how to check the traffic, engagement and other digital stats on specific landing pages and other owned content.

Keep tweaking. Today’s customers are constantly changing their media behavior as they find new channels and abandon old ones.

You need to evolve your marketing mix as those changes occur.

UPSIZE JULY • AUGUST 2022

For many of us, the name Kris Lindahl was permanently burned into our brains after what seemed like an overnight explosion of billboards featuring the realtor’s now-famous “Open Arms campaign.” What most people don’t realize is that Lindahl was already one of the most successful realtors in Minnesota well before those ads started running.

“I saw a huge opportunity to disrupt the traditional real estate industry,” Lindahl says, adding that the billboards were just part of his company’s “proprietary omnipresent marketing machine.” Lindahl also says that “in the beginning, we had a lot of successes and a lot of learning opportunities. Now, Kris Lindahl Real Estate has become one of the most recognized real estate brands in the country.”

As a marketer what strikes me about this campaign is Lindahl’s use of traditional (some would even say old school) marketing tactics. It’s a great lesson for all of us. Understanding how and when to use traditional marketing channels like radio, billboards and print is crucial and it can boost the results of advanced digital marketing tactics, even on a small budget.

While most business owners have dropped the idea of finding a single silver bullet marketing tactic, we are drawn to strategies that are familiar to

us. For millennial entrepreneurs, that can sometimes mean relying entirely on digital channels or even just one social media network. For some business owners that can mean working email lists to the point of exhaustion.

The last few years have seen a huge shift toward digital marketing, lead generation and social media marketing. A big change that many people haven’t considered, however, is how the role of traditional media fits into an integrated or omnipresent marketing campaign — meaning a campaign executed across multiple channels simultaneously.

Traditional ads used to drive every marketing campaign. The creative team built a cool concept, the ads were purchased based on the makeup of the customer base and all the elements — email, social media, blogs, etc. — revolved around that paid media plan.

Today, however, we know that content leads the charge when it comes to most marketing efforts, and as a result, some marketers have left traditional tactics out completely.

Kris Lindahl’s campaign reminds us why it’s important to consider traditional media as a tactic to boost the rest of our marketing efforts. And that with careful planning, results can happen faster (even without a large budget).

www.upsizemag.com

The big question is how to decide where to put your money. Here are a few things to consider as you ponder the marketing strategy for your business: 1. Understand your audience’s behavior beyond the screen.

Most of us know which social media channels our customers prefer. We also have a decent understanding of what works in terms of SEO, digital ads and influencer marketing. But we also need to consider where our customers’ eyes go when they’re not looking at their devices. Are they driving to pick up kids from daycare?

Running to catch a plane? Reading a magazine? (Many people don’t know that the niche print magazine business is booming, with more than 7,000 new magazines launching this year, according to Publishers Weekly.)

2. Create a strong message and boost your primary outreach with focused paid-media buys.

Many traditional salespeople are quite good at helping you plan buys based on your budget. They understand that if the ads don’t work, you won’t be back. Ask your rep to keep you posted on discounts, remnants and other “deals” that could make this type of advertising affordable. Fit your ad buys into the schedule where and when they’ll do the most good, based on the timing of your other tactics.

3. Remember radio. According to Statista, radio still reaches 83 percent of all adults in the U.S. on a weekly basis. Focused radio programs are often the most effective, particularly when you’re marketing to a specific community. Radio is a great way to quickly

boost brand awareness or get important information out there fast, particularly in a specific community.

4. Test and measure continuously. Getting more sales is the end goal, not the actual metric.

Make sure you understand how to check the traffic, engagement and other digital stats on specific landing pages and other internal (what we call owned) content.

Create a set of simple metrics that demonstrate your tactics are working and review them on a regular basis.

5. Keep tweaking your marketing mix. It would be great if we could lay in a marketing strategy and just let it run, knowing it would keep working forever. But today’s customers are constantly changing their media behavior as they find new channels and abandon old ones. You need to evolve your marketing mix as those changes occur if you want to maintain or improve your results.

Marketing today is really hard, especially on a tight budget. It takes constant focus and a consistent, persistent effort. As Lindahl wisely says, “You should go into it knowing that you’re going to lose for a certain amount of time and with the understanding that you’re not going to get ROI right away.”

With patience you can find the right rhythm, and that’s when the magic really starts happening, but remember to include all channels in your consideration. Traditional media is here to stay … it’s just parked in a different spot these days.

“ Understanding how and when to use traditional marketing channels like radio, billboards and print is crucial and it can boost the results of advanced digital marketing tactics, even on a small budget.”

Bonnie Harris Wax Marketing

Contact: Bonnie Harris is an integrated marketing communications consultant and coach and founder of Wax Marketing Inc.: 612.801.0912; harris@waxmarketing.com; www.waxmarketing.com; in/bonnieharris111

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JULY • AUGUST 2022 UPSIZE

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START AT THE

END Ensuring marketing pays off depends on front-end planning

by Andrew Tellijohn

S

couts Talent provides on-demand finance and accounting consulting for clients on a project basis. The company works with CFOs, controllers and business finance leaders to help them reach business goals.

When they do a great job, the company will, on occasion, seek a social media post or other form of validation to help with marketing efforts, says Partner Gwen Martin.

“Having somebody else talk about us in a great way is more powerful than me telling you my company is great,” she says. “If somebody tells you ‘You’ve got to go try this restaurant, it was so awesome,’ you’re going to take that with a lot more weight than if the restaurant is out there saying ‘Hey, we’re new, come and try us.’”

Scouts Talent tries a variety of strategies to get its messaging out and to become known as thought leaders in its field, including publishing five-minute interviews and five-second infographics that are informational and free to readers. The company started doing those a few years ago and they’ve built a significant following.

“These are examples of things that don’t really have anything to do with accounting and finance consulting, but it differentiates us and we’re sharing knowledge, we’re out there as the experts,” Martin says.

She acknowledges it can be difficult to figure out exactly why people call or specifically why business increases. It could be a social media post, a referral or an email that finally clicks and gives Scouts Talent that “‘Wow, these guys are everywhere,’” type of feel, Martin says. But trying more things versus fewer has proven beneficial.

“Any one of those dots independently wouldn’t have been able to move the needle,” she says. “It’s important

Gwen Martin, partner with Scouts Talent, says it’s important to try several marketing tactics in order to get the “buzz” out

photographs by Tom Dunn

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UPSIZE JULY • AUGUST 2022

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COVER STORY to try a variety of things and have the buzz out.”

story, learning about its differentiation, monitoring every stage of the sales process and targeting marketing efforts to the ideal Get the story straight customer. That allows the company to narrow its clients’ focus One piece that has really helped is having a laser-sharp to a smaller audience made up of those who are more likely to focus on what the brand and its differentiators are, Martin purchase. says. That might not sound hard, but distilling it down really “The costs of getting in front of folks are getting more and can be tricky. For help with that, Scouts Talent has worked more expensive,” he says. “Where we see folks struggle and with Garrio Harrison, a partner at Curious. With inflation in where dollars are being wasted is they don’t spend time geteffect and money tightening, his company has been conting that key message right first.” necting with clients recently to ensure marketing dollars are being spent wisely. That means that while they’ll have clients Start at the end do the basics — Google’s Pay Per Click, social media, email That process of establishing a plan upfront and using goals marketing — just doing them alone isn’t enough. established in the process for measuring the success of a mar“All these tools out there, when you add them all up, keting effort resonates with Casey Fuerst, owner of Tic Tac together your marketing budget is now pretty unmanageToe Marketing. able,” he says, adding that “everything is happening at the Where measuring marketing effectiveness used to be as awareness level of the process. You’re building up all this simple as using coupon codes, now it’s harder than ever, she awareness, measuring based on awareness … that’s all passays, to measure marketing effectiveness. sive, sitting back and waiting until people find you. You can “It takes so many more points of contact than ever before go out of business waiting for that to happen.” to get somebody’s attention and to make a sale with marketBy talking to customers that have actually purchased from ing,” she says. “It’s hard to know which point of contact made those clients in the past about how they found and decided the difference. Was it the billboard that finally made the sale to buy, Harrison says Curious helps them determine where or was it the email they got three times before that and the their clients’ marketing dollars are best spent. billboard just reminded them to make the call? It’s so hard to “We’re also making sure the sales team has everything tell which gets the credit for the sale.” they need to continue to nurture potential customers to So, instead, begin with the end in mind. their sales pipeline,” he adds.

“When somebody says I need to know the [return on investCurious starts, Harrison says, by finding out the client’s ment] of every piece of marketing it kind of makes me cringe,” she says. “It’s hard to do and it’s naïve to be able to say we have to be able to do that.”

That’s not to say it’s not worth trying. Good planning upCONTACT: front does help give a sense for whether an individual marketHEATHER BOSCHKE owns Vogel Venture: 612.327.7735; ing strategy is working. But if, for example, a small business heather@vogelventure.com; www.vogelventure.com; coaching company with two existing clients wants to increase company/vogelventure that count over the next year, it might do some content marketing — blogging, emailing, social media. Those steps alone CASEY FUERST owns Tic Tac Toe Marketing: put out goodwill and raise awareness, but they don’t often di612.979.3915; casey@tictactoemarketing.com; rectly lead to direct sales. They might, however, spark a starter www.tictactoemarketing.com, in/casey-fuerst conversation about how the company could help them. And, at GARRIO HARRISON is a marketing consultant at the end of the year, if the company has eight clients, it’s a win, Curious: 612.423.1900; garrio@discovercurious.com; regardless of the specific tactic that made the sale. www.discovercurious.com; in/garrioharrison “You might logically draw a conclusion that says, ‘Because I did content marketing, I went from two clients to eight,’ and GWEN MARTIN is a partner with Scouts Talent: so you could say ‘I can measure the results of my content mar612.308.1100; gwen@scoutstalent.com; keting,’” Fuerst says. “But you probably wouldn’t be able to www.scoutstalent.com; in/gwenmartin say, ‘This one blog post got me that extra six clients.’ It’s very KRISTIN WIERSMA is CEO of Focus Consulting: hard to put measurements on specific tactics. But you might 651.815.1516; kristin@focusconsulting.net; be able to draw conclusion about overall planning results.” www.focusconsulting.net; in/kristinwiersma Now, that’s not to say companies should discount individual tactics. It is important to measure them and adjust course when necessary. But whether it’s content marketing, putting 14

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COVER STORY

Casey Fuerst, owner of Tic Tac Toe Marketing, says setting an end goal and meeting it is more important than measuring the success of each and every tactic that helps get there

She’s been a consultant for two national firms but launched on her own in January. Fuerst, she says, has helped her boil down for potential clients her story while getting her to listen more about what that potential client might need without preconceived assumptions.

Tic Tac Toe Marketing also has helped create “an ecosystem of marketing activity,” focusing on not investing everyup billboards or sending emails, Fuerst says there has to be a thing in one or two huge marketing activities but in really plan in mind with a goal to reach and tactics aligned toward getting the word out about her offerings in multiple ways. getting there or measuring is going to be impossible.

And, Wiersma says, it’s been a clear story, consistent across “We can throw spaghetti on the wall all day long, we can do channels, that communicates offerings without assuming she random acts of marketing all day long, but unless we have a knows what clients are going to need. goal in mind and know where we’re going, none of it’s going to “They’re going to connect with you on one and somebody make a difference,” she says. else is going to connect with you on another,” Wiersma says.

“They need to have the mutuality in terms of messaging. You Creating an ecosystem can’t have different messages in different places. They need Kristin Wiersma, owner and chief consultant with Focus to lead to each other.”

Consulting, had worked with Fuerst in a number of roles when Someone may find you on LinkedIn, go to your website, she started her own organizational and management consult- find an email list, read a blog or hear you at a conference, she ing company. says.

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COVER STORY

Scouts Talent officials work through a consulting project.

The company works with business financial leaders to help them reach their business goals.

“All those messages add up and they’re consistent, and so then they go oh, this person can be trusted,” she says.

“Because in my world, it’s about creating a sense that I can be trusted to solve their problem.”

articles written about the company.

For a company seeking greater engagement, on the other hand, Boschke says she’d look at liking, sharing and commenting on social posts or whether targets are clicking into emails.

What is the goal And still other companies are looking to increase revenue Heather Boschke, owner of Vogel Venture, did corpoand sales. Relevant measures for them might be cost of acrate marketing for large companies like Verizon, Radisquisition, basket size at checkout or revenue per customer. son and ShopNBC, before a stint with a small nonprofit “What I do with my clients is I create a marketing scoreunlocked an itch to help small businesses. She agrees card based on their goals,” she says. that measurement starts with having a goal, but she does While those are tactics that can be measured, Boschke pay considerable attention to the performance of differ- does say it still starts with the initial goal. ent metrics related to those all-encompassing goals.

“That’s 100 percent it,” she says. “When I do my strategy “It all starts with what is the goal,” she says. “What are sessions with my clients, it’s the same thing. What are we you trying to achieve.” trying to achieve? Are you trying to increase brand awareSome clients might be focusing on brand awareness. ness? Are you trying to introduce a new product? From there, For them, relevant metrics include Google Analytics how are we going to do that.” measurements of traffic, both in general and on speOnce those goals are in place, companies can implement cific pages, and on how many people are going to your traceable tactics, implement them, measure them and tweak website, what percentage are opening emails and on along the way based on results. Boschke emphasized that your social media reach scores. Public relations might getting to the goal isn’t going to happen overnight.

“Give things time,” she says. “There’s no marketing faucet be another focus with these companies, so she’d look that spits out leads and revenue. If that was the case, that at whether content from the client’s website was being would have been found already. Marketing is the long game. picked up for stories or how many hits are coming from 16

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BE VIGILANT, DON’T PANIC Recession prep puts balance sheets on diets, but provides opportunities, too

T

he U.S. inflation rate in May hit its highest mark since 1981, reaching 8.6 percent. And economists are projecting that the country will head into recession in 2023. It’s not the recipe most were hoping for coming on the heels of supply chain shortages and pandemic-related uncertainty.

But is all lost?

Not at all, says Tom Siders, a partner with L. Harris Partners. Businesses will have opportunities to grow and thrive but only if they play their cards right.

“You’re either going to A, play offense and make some bold moves, B, play defense and hope you can ride this out or C, you’re going to just give up your toys and go home,” he says.

In truth, option C probably isn’t feasible at this point.

If you’re thinking it’s time to get out and retire, the last

thing you want to do is go through an economic downturn — but in reality, that’s also the worst time to sell.

So, it’s time to stay calm and make a decision.

Picking option A

“If you’re going to be decisive and stay in business, the absolute first thing you do when you’re facing a recession is cash flow forecasts,” he says.

Do it for several scenarios. Update them regularly.

Then immediately take them to the bank.

“Restructure your current debt, keeping your interest rates low,” he says. “Extend terms, lower payments and expand your credit line so you have some fallback in the event things go to hell. If you don’t have a credit line, get one. It’s going to be a bumpy ride.”

Next, focus efforts on liquidity. You’ve got to build

by Andrew Tellijohn

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FEATURE

“Restructure your current debt, keeping your interest rates low. Extend terms, lower payments and expand your credit line so you have some fallback in the event things go to hell. If you don’t have a credit line, get one. It’s going to be a bumpy ride.”

— Tom Siders L. Harris Partners

cash reserves so you’ve got the savings account to withstand the storm. Sell your obsolete inventory or old equipment.

“Basically, put your balance sheet on a diet,” he says.

Explore new vendors to try and cut costs. Dual sourcing is good in the event one of your suppliers goes broke.

Get rid of the bad customers. If they slow pay, no pay or complain a lot, Siders says, they are gone.

“Never waste a recession by hanging on to a real pain in the ass customer,” he says, adding that the same is true of employees. “I know it’s not in vogue to get rid of people today, but as the economy slows down there is always going to be somebody better coming along who is looking for a job.”

Eye on your receivables

From there, Siders and others say, monitor your accounts receivable like a hawk and act quickly if somebody gets slow.

“You do not grant anybody good graces when you’re facing a recession,” Siders says.

Monitoring accounts receivables is not only important for your cash flow, but to make sure you are aware if a creditor may be headed toward bankruptcy, says Matthew Bialick, a partner with the MJB Law Firm.

Take note if creditors stop responding to you when you ask about late payments. Don’t hesitate to ask questions and, if the governing documents allow, ask for financial statements. If applicable, file with the Secretary of State to put in writing your interest in the case well before a bankruptcy filing.

“Be vigilant looking for signs of bankruptcy,” he says.

“Being vigilant is going to be important in terms of the

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fact that the sooner you act if there is a problem — particularly before bankruptcy — the more likely you are to get paid. It also matters in terms of lien perfection.”

Lien perfection establishes the priority rights on encumbered property among creditors, he explains. And if a creditor files bankruptcy, it’s too late. So, act early.

“In a time where there is a recession that might be coming,” he says, “essentially, being a secured party is pretty much going to make it a lot more likely you are going to do well in a bankruptcy scenario.”

Bialick adds that if you wait and the company declares bankruptcy before you file, you’re out of luck.

In addition to monitoring AR, companies need to be proactive in making sure they continue controlling cash flow and covering costs. Part of that means looking at your prices, says Diane Paterson, director of the Small Business Development Center in the Schulze School of Entrepreneurship at the University of St. Thomas.

You probably need to raise them. Businesses already are feeling the effects of inflation in the form of supply chain shortages, higher transportation costs and the rise of wages amidst employee shortages. It isn’t a matter of if, but when, she says.

“The question small business owners need to ask themselves,” Paterson says, “is how much should they raise their prices to avoid eroding profit margins.”

Meet your partners

Village Bank bankers have been meeting with clients for quite a while listening to business owners talk about what’s keeping them up at night. In addition to inflation, the concerns across the board are hiring, whether in the C-Suite or in lower-level positions; the supply chain chal-

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FEATURE lenges; and dwindling cash surpluses after the Federal Reserve talked about slowing the economy down.

“We are in the perfect storm,” says Aleesha Webb, president and vice chair at Village Bank. “It’s a much bigger storm than just one piece. Because inflation isn’t caused by just a rate hike. Inflation is caused by all the money the government just dumped in consumers’ pockets and businesses’ pockets. So, were the consumer and the business smart about how they spent that money?

Even if they were, are they able to get the goods, service and products they wanted to spend the money on? It’s really a big storm that’s rumbling.”

So, what can business owners do to get through this?

Webb reiterated the need for conversations with business partners. Can you get a fixed rate? Can your banker provide you information on what your debt payments will look like as interest rates shift? Keep in mind: Banks are busy right now. There is money in the market right now. Interest rates are going up, but historically, they are still far from high.

CONTACT: MATTHEW BIALICK is a partner with MJB Law Firm: 952.239.3095; matthew@mjblawmn.com; www.mjblawmn.com; in/matthew-bialick-35b7a438 DIANE PATERSON is director of the Small Business Development Center in the Schulze School of Entrepreneurship at the University of St. Thomas: 651.962.4503; diane.paterson@stthomas.edu; www.stthomas.edu; in/dianepaterson CORY PARNELL is principal and CEO of Boeckermann Grafstrom Mayer: 952.844.2500; cparnell@bgm-cpa.com; www.bgm-cpa.com; in/coryparnell TOM SIDERS is a partner with L. Harris Partners: 952.944.3303; tom.siders@lharrispartners.com; www.lharrispartners.com; in/tom-siders-035663b ALEESHA WEBB is president and vice chair at Village Bank: 763.780.2100; marketing@villagebankonline.com; www.villagebankonline.com; in/aleesha-webb-mba

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That said, make sure you have a crisis contingency plan for hiring, supply chain and other challenges. Will you have enough cash? Or access to cash? Make sure it’s available and make sure you know what steps you have to take if your inventory is slow or if there is a dramatic wage increase or bonus you have to pay.

“You’ve got to be meeting with your banker, you’ve got to be meeting with your accountant,” Webb says. “One thing we’re doing a lot of right now is stress testing. So, if rates go up by 50 basis points, what does debt service coverage look like based on revenue and expenses today. If it goes up by a point, a point-and-a-half? These are things your banker can do for you.”

Then do what you can to mitigate surprises. Monitor appropriate metrics to your industry. Communicate with employees, customers and others. Take necessary preventative measures to make sure you’re in good shape.

“Then you don’t have as many surprises,” she says.

Communicate, don’t panic

As the current inflationary period drags on, one good sign is that most clients of Boeckermann Grafstrom Mayer (BGM) still have decent balance sheets due to government funds received during the pandemic, says Cory Parnell, principal and CEO. So, many companies aren’t reeling yet.

His accounting firm is working to help clients through this time and he’s largely on the same page as other financial experts. Cut expenses that don’t derive revenue or generate profits. Consider deferring capital projects.

If balance sheets do look bleak, Parnell says, companies can look at vendor terms and bank relationships. Definitely communicate early and, if you end up renegotiating terms, make sure they’re favorable enough where you can stay current.

“They can be a great partner through the process,” he says. “Just make sure whatever you agree to you are able to meet it. If you don’t meet them, there is a lot of trust lost very quickly.”

Finally, Parnell says, given the difficulties in hiring right now, companies might consider avoiding layoffs and instead cutting salaries across the board. Several clients did that in 2008 and “everyone in different organizations appreciated that,” he says. “It’s a lot better for everyone to go down if it’s 10 percent than to chop off the labor force to equal that 10 percent. That helps you, especially in a tight labor market, in regard to when the economy does start to recover. You’ve got those individuals and you’re

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FEATURE

“Anytime there is an economic downturn there are companies that are going to be better or worse able to weather the storm. Better competitors can use this as a tremendous opportunity.”

— Matthew Bialick, MJB Law Firm

able to move them back up as times allow.”

Legal concerns

Avoiding layoffs, if possible, might also be safer from a legal standpoint. As liquidity dries up, reducing head counts always carries potential legal ramifications, Bialick says, particularly if it’s someone let go just a short time after they were hired.

“At a minimum, there are potential unemployment or discrimination claims,” he says. “If someone is not happy with that situation, there could be a variety of legal actions.”

Similarly, monitor contracts with suppliers who might be looking at termination provisions or force majeure clauses when it comes to supplier performance.

“If there starts to be economic stress that is going to be affecting suppliers … It’s important to realize that if it’s an agreement that is too permissive, that is too low in terms of accountability of the supplier, that might be a reason to be more proactive in terms of looking for new suppliers or a wider variety of suppliers.”

this as a tremendous opportunity.”

That’s why one cut you should avoid making is to your marketing budget, adds L. Harris Partners’ Siders.

“It is the worst thing you can do,” he says. “It’s the easiest and most likely idea to cut our sales and marketing. But you are going to have competitors go broke.

And if you are front of mind with those people you have a chance to pick up better customers than the ones you just fired.

You can gain market share even in a recession.”

Same with employees, Webb says, adding that the clients she has spoken with still are trying to hire people who fit in with their culture and who aren’t going to chase the next massive salary increase they are offered.

There will be opportunities to do that if you stay disciplined and prepared.

“That takes culture and time and money,” she says.

Opportunities will abound

While times are tough, there will be opportunities coming in the months ahead, as well. Businesses with strong financial situations might be able to acquire competitors undergoing distress, Bialick says.

“Anytime there is an economic downturn there are companies that are going to be better or worse able to weather the storm,” he says. “Better competitors can use

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catching up

by Andrew Tellijohn

Optimism, adherence to fundamentals keeps Kam Talebi growing

Fundamentals and employees Much of Kaskaid’s success then had to do with the freedom of being a private company, able to make decisions without worrying about the volatility of the stock market. That meant the company could take some chances on opportunities larger chains had to back away from.

His management team stuck to a series of fundamental beliefs in what makes a good business opportunity.

He tried to take the same approach 22

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PHOTOS THIS SPREAD COURTESY OF KASKAID HOSPITALITY

F

ew industries were hit harder during the COVID-19 pandemic the last couple years than restaurants. Nothing could have prepared business owners for that chaos, but Kaskaid Hospitality was perhaps more ready than some.

The 15-year-old company has grown to more than 1,200 employees since being featured in the June-July 2010 issue of Upsize. And its cofounder and CEO, Kam Talebi, along with his brother co-founder Keyvan, made the switch from a career in technology to starting Crave right before the last round of economic recessions in 2008 and 2010.

Kam told Upsize Founding Editor Beth Ewen back then that he saw starting a restaurant during that time as an opportunity.

“In 2007 and 2008, when we had the whole crisis with the mortgages and banking ... we took the challenge on and we were able to survive and beat a lot of expectations,” he says now.

Kaskaid Hospitality has grown a lot the last 15 years, both with its Crave concept and by acquiring restaurants like Brit’s Pub in 2019.

in beating back the effects of the pandemic and he’s going into this inflationary period, knowing that a recession is likely to follow, with the same optimism he had when the first Crave opened.

“When you have something that’s challenging that comes across your way, you’ve got to be positive,” he says. “And you’ve got to say ‘Look, we’re going to fight through this.’ And that sense of

optimism and confidence resonates with people.”

Talebi pounds hard on sticking to the fundamentals in surviving difficult times. It’s worked in the past, it helped during COVID – the company actually grew, through the acquisition of Brit’s Pub and the launch of Butcher’s Tale, a steakhouse, while continuing to slowly and steadily open new Crave locations.

And it’s what he figures will help Kaskaid Hospitality stay strong as inflation takes hold and another recession seems likely to follow.

To him, that means taking care of www.upsizemag.com

guests by providing great food and service and, especially, taking care of employees and making sure they are happy.

That was another massive focus for Talebi during the pandemic, for which he doesn’t think anyone could possibly have prepared for in advance. He spent time talking to landlords and partners about changing terms. He invested in technology to create a take-out business that previously hadn’t really existed. He updated systems. And he locked in with laser focus on making sure he had the workers necessary to come out of the pandemic ready to rock.

“What we were prepared for is the commitment of saying, ‘Look, at the end of the day, if we want to be a company afterward, we’ve got to take care of the employees,’” he says. “We committed to that. That was the number one goal that I had was that I’ve got to take care of the family and just make sure that I take care of my people. Because either

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the world’s going to fall apart or there are going to be better days ahead. And in order for us to be able to come out of it and be able to be strong, we’ve got to take care of our employees.”

Kam (left) and Keyvan Talebi traveled to the U.S. in 1979 while their mother was fighting breast cancer. They founded Kaskaid Hospitality in 2007.

Learning from mistakes While Talebi and his colleagues at Kaskaid have weathered a lot of storms and won far more than they’ve lost in the last decade-plus, that’s not to say there haven’t been mistakes. In 2009, the company had three locations and had just opened in the West End in St. Louis Park. The company was looking at expansion to Florida and Nebraska. A location in Omaha ran successfully for eight years before growth moved outside the city and it closed.

But the Florida location never took off. Lack of proximity was a challenge, as was understanding the nuances of a different market. The location itself also ended up not working.

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Kaskaid Hospitality

Description: Parent company of restaurants including Crave, Brit’s Pub, Blvd Kitchen & Bar, Union Bar & Grill and Butcher’s Tale Headquarters: Bloomington Founded: 2007 CEO: Kam Talebi Employees: More than 1,200 Website: www.kaskaidevents.com

“Florida was an experiment and it didn’t work for us,” he acknowledges.

“Life is full of experience and gray hairs. And as you go through that experience, you learn and you become smarter and, hopefully, you make better decisions.”

For Kaskaid, that meant backing off national expansion plans, focusing on the Midwest and on quality over quantity. The company now has eight Crave restaurants in the Twin Cities, one in Rochester, one each in Sioux Falls, S.D., Fargo, N.D. and Sioux City, Iowa. The company will consider opportunities in an expanding ring of Midwestern and central U.S. markets, such as Kansas City or Chicago.

“So, we’ve got a portfolio of different brands in our backyard and that allows us to be able to stay focused,” Talebi says. “We’re blessed

to be where we are. To go from three to where we are today, I’m certainly happy with what we’ve been able to accomplish.”

Going forward So, the Talebi family emerged from COVID relatively unscathed from COVID. Their parents came to Minnesota in 1979 so the family matriarch, Shahnaz, could fight breast cancer at the Mayo Clinic. They’re still around, providing inspiration. In addition to being a multiple time cancer survivor, Kam Talebi says his mother recently grappled with COVID, as well. “She beat that one too,” he says.

Talebi knows restaurants will always be challenging. But he remains grateful for what the company has become and optimistic about knowing the steps needed to take advantage of opportunities that can arise during downturns so Kaskaid can emerge even stronger.

“We’re excited about where we are.

With the challenges right now of what’s happening with the economy, we’re holding our breath and saying, ‘okay, here we go, round two,’” he says. “But we’re trying to stay in front of it and deal with the business challenges that we have. And hopefully as long as people are dining and getting out, we’ll be able to continue weathering the storm.”

JONATHAN HANKIN

PHOTO COURTESY OF KASKAID HOSPITALITY

catching up

“ When you have something that’s challenging that comes across your way, you’ve got to be positive and you’ve got to say ‘Look, we’re going to fight through this.’ And that sense of optimism and confidence resonates with people.”

Kam Talebi

Kaskaid Hospitality

Contact: : Kam Talebi is co-founder and CEO of Kaskaid Hospitality: camt@craveamerica.com; www.in/kam-talebi-3579b110 24

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SBA LENDER Highland Bank

Steve Schad, sschad@OptimaAdvisoryllc.com Ph: 651.587.0588 www.OptimaAdvisoryllc.com

7575 Golden Valley Road, Suite 100 Minneapolis, MN 55427 763-546-8201 www.Lingate.com Greg Loeschke — Managing Principal

Troy Rosenbrook, President | 952.858.4810 Kim Storey, SBA Lending Manager | 952.858.4590 952.858.4888 | www.highland.bank

Attracting and retaining the right people will fuel your growth. Take the guesswork and headache out of the people side of your business with help from Optima HR Solutions. Smart HR will get you to the next level - assessment, strategy, fractional HR leadership, and tactical HR support and recruiting.

Founded in 1945, Lingate Financial Group is a leading provider of lower middle market merger & acquisition advisory services, representing privately held businesses of all types with revenues of $5 – 50 million. Lingate helps business owners with market-based valuations, business sales, mergers, acquisitions, recapitalizations, and internal transitions among family members, partners and management.

We get deals done.

Founded in 1943, Highland Bank is focused on small business lending and is an SBA “Preferred” Lender, making us uniquely qualified to help your business obtain the financing it needs expeditiously. Work directly with the decision-makers who will treat you like a business partner. Member FDIC.

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LEADERSHIP DEVELOPMENT Prouty Project

PUBLIC RELATIONS Bellmont Partners

SBA LENDER 21st Century Bank

6385 Old Shady Oak Road, Suite 260 Eden Prairie, MN 55344 952.942.2922 | www.proutyproject.com Kari Baltzer | stretch@proutyproject.com

3300 Edinborough Way, Suite 700 Edina, MN 55435 Brian Bellmont, President 612-255-1111, info@bellmontpartners.com www.bellmontpartners.com

2335 Highway 36 W Suite 202 Roseville, MN 55113 612-372-2178 • www.21stcb.com

Our leadership development engagements and cohort-based leadership programs – Prouty L3 and Prouty i•will – link behavior to team performance in your workplace through the lenses of Leading Self, Leading Others and Leading the Business.

We focus on STRETCHing participants to lead business within internal and international divisions. Give us a call or stop by.

Bellmont Partners helps growth-focused Minnesota organizations solve complex challenges. Our experienced communications strategists generate results that build brands, drive engagement and support business objectives.

SBA LENDER Sunrise Banks

GROW OR DIE

David Reiling, CEO Phone: 651.265.5600 www.sunrisebanks.com Sunrise is headquartered in St. Paul, MN, and has four retail banking branches located in the urban core of Minneapolis and St. Paul. Its primary business lines include: Commercial Lending and Leasing, Relationship Banking, Treasury Management, Prepaid Cards, Fintech Partnerships, New Markets Tax Credits, and Small Business Administration Lending.

Move your business forward with investment capital generation, deep-level network connections and strategic refinement consultation from Brimacomb and Associates. We partner with emerging companies and professional services firms to offer unparalleled access to professional resources, executive suites and financing sources.

Member FDIC

STRATEGIC PLANNING Prouty Project 6385 Old Shady Oak Road, Suite 260 Eden Prairie, MN 55344 952.942.2922 | www.proutyproject.com Kari Baltzer | stretch@proutyproject.com We start with a blank sheet of paper to elevate your clarity on vision and purpose, create alignment in your strategy to achieve your vision and gain commitment to execute. What are your “market, product/service, people, and financial” strategies over the next 1-5 years?

Can you articulate your strategic plan on one page?

Join us in our Creative Think Tank to stretch your thinking and ignite your creativity.

www.brimacomb.com 612.803.3169 • rick@brimacomb.com

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At 21st Century Bank, we know what it takes for businesses to survive, grow, and prosper in today’s market. For over 100 years, we have been your community partner. A family-owned bank, with expertise in all SBA and conventional lending programs covering all stages of your business. We tailor solutions that respond to your unique business and banking needs.

ADVERTISING SECTION

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UPSIZE RESOURCE DIRECTORY TRANSITION PLANNING KeyeStrategies

WEALTH MANAGEMENT JNBA Financial Advisors

Minneapolis, MN Keyestrategies.com 763-350-5563 Julie Keyes, Founder/CEPA

8500 Normandale Lake Blvd., Suite 450 Minneapolis, MN 55437 952.844.0995 www.jnba.com Cärin Viertel, Director of Client Services

“KeyeStrategies LLC advises business owners in Transition and Exit Planning. Julie Keyes is both a Certified Exit Planning Adviser (CEPA) and Value Growth Adviser. She is also a faculty member for the Exit Planning Institute’s Global organization and President of its local Chapter.”

Being a small business we understand the needs of small business owners. And with 40+ years of experience in providing conflict-free advice, our proactive and integrated approach allows our multi-generational teams to put clients first when delivering customized financial life planning and investment strategies to help maximize their resources.

venture capital Brimacomb + Associates

WORKPLACE WELLBEING R3 Continuum

TCF Tower, Suite #1600, 121 South Eighth St., Minneapolis, MN 55402 612-803-3169 * www.brimacomb.com Rick Brimacomb, rick@brimacomb.com Chief Strategy and Relationship Officer

7825 Washington Ave. S., Suite 500 Bloomington, MN 55439 R3c.com 866-927-0184 toll free

Results-oriented advisory firm with unparalleled access to executive suites and financing sources. Emerging companies and established professional services firms rely on our depth of knowledge and deep-network connections to grow client lists, assemble project resources and secure new sources of funding.

R3 Continuum (R3c) is a global leader in workplace behavioral health, crisis, and security solutions. We help enhance workplace behavioral health and performance, speed recovery from disruption, and maintain safety and security on all levels, with our best-practice, human-centered, and technology-enabled continuum of solutions.

EXIT PLANNING: Directing the Process!

Have you determined: When you want to leave your business?

To whom you want to transfer your business?

What your business is worth?

How “Inside Buyers” are going to finance a purchase?

Your “back up” plan should the unexpected happen?

e. drh@exitplanstrategies.com w. www.exitplanstrategies.com p. 651 426 0848

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Follow this link to receive your FREE DIGITAL SUBSCRIPTION: bit.ly/3tBoCAV www.upsizemag.com

ADVERTISING SECTION

JULY • AUGUST 2022 UPSIZE

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BACK PAGE

Brevity founder Johnson launching software and book

by Andrew Tellijohn

I

t’s going to be an exciting summer for Kelvin Johnson Jr. After nearly two years of beta testing, the CEO of Brevity Pitch, in October, will launch his artificial intelligence-based software program aimed at helping entrepreneurs hone their pitches skills.

As Brevity debuts, the company has created nearly 100 pitch frameworks for different scenarios entrepreneurs might face throughout their journey, each with time durations and slide suggestions.

But before that launches, Johnson is finishing up another project from his bucket list. He penned a book that showcases real-life examples of pitching success from business owners.

“Don’t Fear the Sharks: Six Principles to Pitch Investors” is scheduled for a September release.

Johnson joined Upsize Editor Andrew Tellijohn to share some insights on what readers can expect: Tellijohn: What are people going to learn from the book?

Johnson: It’s really about six principles that are the best practices when it comes to pitching your business for investment. The key is to provide insights, inspiration, but more importantly, concrete examples of how other successful business owners actually executed and implemented these six principles. There are five entrepreneurs within the book that have received offers on Shark Tank from its expert panelists.

Tellijohn: Was this dual launch of Brevity Pitch and your book intentional?

Johnson: Honest answer, no. The book really came about, I was in the 28

UPSIZE JULY • AUGUST 2022

shower one day and “Don’t Fear the Reaper” came on my Spotify shuffle. It’s always been on my bucket list to write a book. And then I was thinking, it immediately came to me, I mean, “Don’t Fear the Reaper,” and “Don’t Fear the Shark” and what are those most common principles that increase your chances of being influential in persuading investors to take a chance on your company.

It’s successful business owners, like Tyrre Burke, CEO and founder at Player’s Health, who recently raised $30 million in a funding round and a bunch of other founders that have embodied these principles. The big thing here is "Don't Fear the Sharks," which will come out in September, provides reallife examples of business owners utilizing Brevity Pitch's pitching principles.

beta users and then we had two organizations pay for the data. We helped founders raise over $2.5 million in capital.

People have closed deals with Fortune 50 companies. People have crushed the case interview portion of job interviews leveraging Brevity. And we’ve had over 20 first-place pitch competition winners.

Brevity Pitch CEO Kelvin Johnson will launch both his company and a book this fall.

about thought leadership and credibility for the company and the need to use the software.

Tellijohn: So, it wasn’t planned, but the launches will complement each other well. How has the beta-testing gone for your Brevity software?

Johnson: We had over 200 private

Tellijohn: Where can people find the book?

Johnson: It’s being published by Strive Community Publishing and can be found here: https://www.strivepublishing.com/ books-by-strive/dont-fear-the-sharks Contact: Kelvin Johnson Jr. is CEO and co-founder of Brevity Pitch: kelvin@brevitypitch.com; www.brevitypitch.com; in/kelvin-johnson-cpa.

www.upsizemag.com

HOW TO REACH THOUSANDS OF BUSINESS OWNERS TOO BUSY TO TAKE YOUR CALLS It’s tough getting in touch with business owners, especially when they’re hands-on managers of growing companies.

That’s exactly who Upsize readers are.

They run small, growing companies.

They look to the how-to format for products, services and growth ideas, and they look to the ads for the means to achieve them.

When you advertise in UPSIZE MINNESOTA, you’ll reach business owners and managers who are busy seeking the goods and services your firm can provide.

For more information, email Andrew Tellijohn at atellijohn@upsizemag.com or call 612.827.5290

This is a great time to list your business for sale It continues to be a seller’s market. If you’ve ever considered selling your business, now is a great time to better understand what your business is worth.

Get a free, confidential value range analysis started today.

Easy. Confidential. No obligation.

Contact this Sunbelt Business Advisor team today.

Peggy Demuse

Lisa Meyer

Business Broker

Business Broker

Cell: 612-730-8921 Direct number: 651-288-1627 email: pdemuse@sunbeltmidwest.com

Cell: 612-801-2299 Direct number: 612-361-4918 email: lmeyer@sunbeltmidwest.com

Minnesota’s Largest Seller of Companies Office Address: 1300 Godward St. NE, Suite 6000 | Minneapolis, MN 55413