Upsize Minnesota March/April 2022

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AUGMENTED

FUTURE Artificial intelligence, extended reality technologies opening up for small business benefit

“ This technology is not just for technology companies. There is not a company that won’t be a technology company in 20 to 30 years.”

Amir Berenjian, CEO and co-founder of REM5 Virtual Reality

A business law team that caters to the unique needs of small and mid-size business owners THE SCHINDEL SEGAL TEAM Jon Schindel

Leonard B. Segal

• Purchase and Sale of Businesses • Corporate Governance • Family Succession Planning • Estate Planning • Commercial Real Estate

• Compliance with Employment Laws • Non-Compete & Confidentiality Agreements • Anti-Harassment & Discrimination Policies • Employment Litigation

jschindel@schindelsegal.com

lsegal@schindelsegal.com

Kyle Moen

Sarah Porter

• Purchase and Sale of Businesses • Real Estate • Compliance and Risk Management • Corporate Governance • Succession Planning

• Corporate Governance • Mergers, Acquisitions, and Divestiture • Technology and Licensing Agreements • Residential and Commercial Real Estate

kmoen@schindelsegal.com CON TA C T U S A D D R E S S : SchindelSegal, PLLC 5901 Cedar Lake Road Minneapolis, MN 55416

sporter@schindelsegal.com P H O N E : 952-358-7400

EMAIL:

info@schindelsegal.com

Rick Burnton Fountain Real Estate Capital Mike Wilhelm Fountain Real Estate Capital

“Crown Bank propelled us to year three of our business plan in our first year.”

When Rick Burnton and Mike Wilhelm launched Fountain Real Estate Capital in the middle of the pandemic they needed a bank with a vision as bold as their own. They found that partner in Crown Bank. To read more stories like this search news at crown-bank.com.

What can we make possible for your business?

EDINA • 6600 FRANCE AVENUE S • 952-285-5800 | CROWN-BANK.COM MEMBER FDIC

EQUAL HOUSING LENDER

CONTENTS March • April 2022 • Vol. 21 No. 2 • www.upsizemag.com

PAGE 14

Cover story

Virtual reality and artificial intelligence have been around awhile, but not always attainably for small business owners. With costs coming down and technology utilization increasing, are there more opportunities for entrepreneurs to benefit?

BY ANDREW TELLIJOHN Cover photograph by Tom Dunn

BUSINESS BUILDERS

COLUMNS

Upsize Founding Editor Beth Ewen chats with Gustola Granola founder Angie Gustafson about the challenges of building a brand in a competitive market while facing down the COVID-19 pandemic.

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Founder’s Forum:

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

DATA

Tips on how your company can benefit from becoming data-driven

by Nathan McMurtrey, Eide Bailly LLP

HUMAN RESOURCES

CATCHING UP Melissa Johnston, who participated on many Club Entrepreneur/Upsize panels as a Highland Park exec, has joined other industry veterans to create Entre Bank, a community bank formed with entrepreneurs in mind

Technology can help small businesses perform human resources functions

PAGE 28

by Alice Walker, HR WoRx

The husband-and-wife duo of Chris Christianson and Paulie Skaja will co-chair the Minneapolis chapter of the Global Leaders Organization, a nationwide networking community aimed at helping establish growth, connection and the raising of capital among business owners

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MERGERS & ACQUISITIONS Ensure a good outcome when you make your move into business ownership

by Gregg Klohn, 21st Century Bank

PAGE 12

TECHNOLOGY Small businesses are getting targeted by hackers.

Take these steps to protect yourself

by Matt Jurcich, Invisik

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Growing a food brand takes gusto 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

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PHOTOGRAPHER

Tom Dunn tom@tomdunnphoto.com

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4

UPSIZE MARCH • APRIL 2022

S

porting bright goldenrod pants on a gray day, Angie Gustafson strides into a Minneapolis coffeeshop to catch Upsize up on her natural food brand, Gustola Granola. “I love the word gusto. I think it’s full of energy and vibrancy,” she says, while perhaps unwittingly displaying two of her signature personality traits. “We’re trying to put a little gusto in people’s day.”

A baker and a cook who was “underwhelmed” with existing options when she needed fast fuel after her daily runs, she made up her own recipe, rich with olive oil and maple syrup and whole oats and egg whites. “That’s the liquid magic,” she says.

Tapping her “captive workforce of four,” her children, she began selling it at farmers’ markets, graduated to the Linden Hills Co-Op, then began producing small batches at City Food Studio, a co-working commercial kitchen across from what is now George Floyd Square. In 2016 she found a copacker in Shakopee, and by the end of 2016, 200 stores were carrying Gustola Granola.

Then she hit a wall in the cutthroat battle for grocery store shelf space.

“When I created the recipe, of course, I wasn’t considering costs. It’s hard,” especially with a premium product priced at $8.99 last December, even before this year’s inflation surge. “It’s tough to make a buck. It’s all volume.”

So, the former marketing major at the University of Wisconsin-Madison, former Peace Corps volunteer and self-described hippie got to work, coldcalling people at General Mills and later in Battle Creek, Michigan, where she found a new packing company and also loads of ex-Kellogg’s executives willing to lend their expertise.

“I was really trying to fix COGS,” or cost of goods sold. “It took two years talking to people. OK fine, I finally get it,” she said, meaning she was ready to go to Expo West, the Super Bowl of natural consumer packaged goods, and ramp up her volume. The expo date?

March of 2020.

After a two-year pause, she’s back at it again. “Most of us have no idea about food, how it gets to the shelves. It’s such a messed-up system,” she says.

“It’s becoming increasingly difficult for the smaller brands. Everybody’s running at such thin margins.”

The food producer, meanwhile, gets paid last. “It becomes a significant pay to play. Say I’m producing 30,000 pounds of granola. I have to front that.

We’ve bootstrapped it so far,” she says.

“The likelihood of success is very, very slim.” But slim is not none, and she’ll keep pushing to learn by doing.

“I have an MBA in consumer-packaged goods,” she jokes, which she earned over and over again “by putting on an asbestos suit and putting out a fire.”

Her goal is simple but lofty. “I would like to see a premium brand become national, and of course I would like it to be Gustola Granola.” And who will win in the end? “Which one of us can deal with all the crap we deal with the longest,” she says while laughing — you guessed it — with gusto.

—Beth Ewen founding editor bewen@upsizemag.com

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data

BUSINESS BUILDERS

Strategies for becoming a data-driven company

by Nathan McMurtrey

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Develop a vision for how your data will help you be more profitable by understanding your systems, data sources and priority goals.

Centralize your business data.

Gathering and combining your information in a meaningful way will help gain deeper insights into performance and results.

Find key reports and performance indicators that will help your business push the needle. Once you have determined what those will be, output them in a visual, graphic way to make them more digestible.

Businesses of all sizes are using data analytics. The ability to turn insight into action allows you to be both growth-focused and respond proactively to changing market conditions.

Many companies are better utilizing data these days, but those with the greatest insight into that data are the ones that will set themselves apart.

UPSIZE MARCH • APRIL 2022

We are in the era that data experts are calling the Age of Big Data. In fact, we have been for several years now. The data craze has driven us to a widespread state of what we like to call “Analysis Paralysis.” It’s that point where you collect every piece of information that is, will be or may become important. And for most business owners, that means you’re now sitting on an enormous pile of data without any real insight.

That is not business intelligence.

As a business and organizational leader, you’re challenged with interpreting what your data is really saying. Crafting that message and molding it to be useful to the business decision-making process is key.

But getting there can be frustrating and overwhelming.

What is data analytics?

Every company is a data company, but not every company is data driven. Most companies accumulate large amounts of data. Yet many are unsure what to do with it or how to use it to drive strategic growth.

Mountains of high-potential, unorganized data that’s not backed by mature processes ultimately leads to more challenges. Now is the time to concentrate on data analytics and building a solid data-driven strategy for your organization.

But it all begins with understanding what data analytics is. Data analytics is the science of analyzing raw data to uncover insights that can help organizations make more

informed decisions. To truly become a data-driven company, business leaders must unify data into one version of the truth with an organized database and centralized solutions to power mature data analytics.

What is a “data-driven” company?

A data-driven company is any business that gathers and applies data to reach their business goals. They have made the collection and use of their data one of their core competencies. What’s important to note here is that a data company can be in any industry — from auto dealerships to manufacturers and retailers.

Of course, what initially comes to mind are the tech behemoths of our time like Facebook, Google and Amazon. But non-tech companies are also getting in on the action.

Regardless of your industry or focus, achieving these outcomes begins and ends with your data. With the rise of increasingly affordable business intelligence (BI) tools, even small or mid-sized local businesses are becoming disruptive data companies. In fact, the International Data Corp. predicts that big data and business analytics will be a $274 billion global industry this year, underscoring a universal investment in data as the next frontier.

In the current business climate, it is imperative that your organization leverages your data to understand your business and make better, datadriven decisions. The ability to turn insight into action allows you to be

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both growth-focused and respond proactively to changing market conditions.

Steps for becoming a datadriven organization How do you become a data-driven business? It starts with these three key steps.

1. Data strategy Developing a data strategy can sound daunting, but it doesn’t need to be complicated. A data strategy simply involves understanding your systems, data sources, and priority goals. It’s the vision for how your data will help you be more profitable in a changing marketplace.

To start, you need to audit all your various data sources. This includes both your internal and marketing systems as well as external information sources related to your industry. Next, you need to set your data goals. This is best done by asking what questions — if answered — could help increase your revenue or decrease your costs. Once you have three to five high-value questions, you need to identify the data sources needed to answer them. Then, you need to make the data usable.

2. Data warehouse This is where a data warehouse comes into play. A data warehouse is really just a fancy term for centralizing your business data. Your highest-value business questions will be answered by multiple sources of data. To become a data-driven business, you’ll need to effectively gather and combine all this information in a meaningful way. This will help you gain deeper insights into your performance and business results.

Unfortunately, most organizations skip this step on their data journey.

But the truth is, you cannot leave your data spread out and expect to be able to make well-informed, timely decisions about what’s happening in your business.

A data warehouse solves that problem by bringing your data together to see the full picture.

3. Data visualization This is what most people think of when they hear “data-driven” or “data analytics.” It’s the output of your business data in a digestible, graphic way. Think charts and graphs, and those dynamic dashboards and reports used to talk about business intelligence.

There is no shortage of options for data visualization. When your data warehouse is clean and sturdily built, you can gain value from almost any reporting tool of choice.

Even your Excel spreadsheets will become more useful. The key is to find the reports and key performance indicators (KPIs) that will help your business push the needle.

Data-driven is a mindset Getting intentional with your data isn’t a simple process. Becoming a data-driven company is truly a mindset. It is a way of looking at your organization through the lens of your business data and using data-driven insights to make decisions and lead. But the future really is now. When every company is a data company, those with the greatest insight into that data that will set themselves apart.

“ When your data warehouse is clean and sturdily built, you can gain value from almost any reporting tool of choice. Even your Excel spreadsheets will become more useful.”

Nathan McMurtrey Eide Bailly

Contact: Nathan McMurtrey is a principal with Eide Bailly: 801.655.4823; nmcmurtrey@eidebailly.com; www.eidebailly.com, linkedin.com/in/NathanMcMurtrey

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MARCH • APRIL 2022 UPSIZE

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human resources

BUSINESS BUILDERS

The growing role of technology in human resources

by Alice Walker

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Small businesses HR employees are tasked with more than ever before from supporting and onboarding remote workers to new compliance mandates.

Technology can help them do so efficiently.

Technologies available today allow companies to build communities people join based on their interests that businesses can source in looking for new employees.

Other programs allow HR departments to manage and coordinate skill development, performance management, benefits administration and other parts of the payroll process.

Added efficiencies can allow companies to delay hiring additional HR staff while letting existing workers focus on more strategic and interesting items.

The way business is done has changed significantly in recent years, but with some minimal investments in the right technology, businesses can work smarter and not harder.

UPSIZE MARCH • APRIL 2022

For a long time now, large businesses have used a variety of applications, software tools and technology systems within their HR departments. Their reason for doing this is simple: there are more people, as well as infrastructure and paperwork required to support them, than these companies’ HR teams can handle manually. So, they use technology to automate routine tasks, streamline processes, ensure compliance and more. As a result, they increase efficiency and minimize their need to spend valuable resources on additional staff.

The game has been a bit different for small to medium-sized businesses (SMBs). These companies have a similar percentage of total head count devoted specifically to HR (usually between 1 to 5 percent), but they don’t have the total employee base or infrastructure needs of larger organizations. Even with the smaller HR staff, they’ve typically been able to handle everything on their own.

But recently, the game has changed. There’s more work for HR to do than ever before. More effort is needed to support increasing numbers of employees working remotely. There are more compliance mandates to follow and keep track of — more keep coming all the time.

Better benefits and compensation packages are needed to attract and retain talent in today’s competitive landscape.

It all takes additional time and effort and there’s only so much of both available with the team you have. So

SMBs have a choice: either hire more people to keep up with the increased workload or find and implement more efficient ways of getting things done.

Common use cases of technology in HR Because the latter can be more cost-effective and is often simpler, we’re seeing SMBs turn to technology to help their HR departments operate more efficiently. They’re using new systems to drive efficiencies in three basic HR functions: • Payroll. In today’s HR departments, paying people goes beyond just issuing checks. Other activities like skill development, performance management, benefits administration and more have been incorporated into payroll processes. Accordingly, some of today’s technology tools offer the ability to coordinate and manage all of this together.

• Recruiting. It used to be the norm that companies would post their job openings to real and online bulletin boards or job aggregators, and candidates would apply if interested.

Today, that model has flipped around; companies are increasingly building communities that people join based on their affinities and interests, and then sourcing from those groups first when openings arise. Today’s HR technology helps organiza-

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tions build and maintain these communities and create talent pools full of people with active interest in what they’re doing.

• Onboarding. There’s never been more to do from the time companies extend a job offer to the completion of that employee’s first month. There are many forms both sides must complete, training regimens to carry out, policies and regulations to comply with, tax frameworks to set up and more. Today’s technology can help organizations simplify the execution and management of the entire onboarding process. This is important to help make sure everything that’s required gets done and to help new employees get off to a good start.

There’s a lot of technology on the market today to choose from — probably two to three times more than there was five years ago. Organizations should be able to find a good fit for them based on their size, industry, budget and unique business requirements. If you’d like help along the way, there also are consultants available to help you find the best tools and implement and configure them to maximize your return on investment.

• We’ve seen the average SMB human resources department that integrates technology become anywhere from 10 to 30 percent more efficient — a truly sizable difference.

• Those added efficiencies enable organizations to postpone or cancel hiring additional HR staff, allowing management to save on those expenses and improve the bottom line or reinvest those resources in other areas of the business.

• Current HR employees also can minimize paperwork and refocus their time on more strategic and interesting work that furthers their careers, makes them happier and adds more value to the business.

The way business is done has changed so much in the last few years and all that evolution is here to stay. We aren’t going back to the way things were done before.

Thankfully, there are plenty of new systems and tools that can help our organizations adapt to all that change without requiring major investments or expense increases.

Let’s take advantage of them and work smarter — not harder.

“ Thankfully, there are plenty of new systems and tools that can help our organizations adapt to all that change without requiring major investments or expense increases.”

Alice Walker HR WoRx

Benefits of incorporating HR technology By implementing the right applications, systems and tools, organizations have realized several important benefits: Contact: Alice Walker is principal at the consultancy HR WoRx: 952.237.1377; awalker@hr-worx.com; https://hr-worx.com/; www.linkedin.com/in/walkeralice.

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MARCH • APRIL 2022 UPSIZE

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mergers & acquisitions

BUSINESS BUILDERS

The surprising thing about uncertainty

by Gregg Klohn

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It’s a seller’s market. The stock and real estate markets are performing well. So, getting a bargain is unlikely.

Interest rates, even if they rise, will be in a historically low range. Bank and U.S. SBA debt are inexpensive forms of capital available to finance transactions.

Be disciplined. Expect to look at a lot of opportunities before finding the right one. Whether buying a business or a building, spending too much now can increase your risk and reduce your reward over the long haul.

Use both technology and personal contacts to aid your search. Find online listing consolidators and set up alerts, but also work your LinkedIn and Facebook contacts for leads.

Being financially well positioned to make a large purchase is the single most important thing business and real estate buyers can do to both ensure a good outcome and reduce uncertainty.

UPSIZE MARCH • APRIL 2022

The best part of my job

is meeting interesting and successful people that are contemplating something “big.” Maybe they want to quit their job to buy or start a business. Or, they are already a business owner considering a larger expansion or buying their first building. Common wisdom might say that right now is a bad time to try to do anything big.

With so much uncertainty in our lives today, why take the risk?

What I have discovered over the last two years is that uncertainty has actually increased my customers’ appetite for change. With so many outside influences on our daily lives, making a big change feels like selfdetermination. My customers are as motivated and impatient as I have ever seen them and uncertainty has increased their desire to have as much influence as possible over the events around them.

So, what do you need to know to make this big jump? Some of those conditions are fairly straightforward right now. Here are some that might help: Market conditions Surprisingly enough, we are still in a seller’s market in most areas of the economy. The stock market and real estate markets are at or near all-time highs, employment demand is strong and prices are high across the board.

So, while it may be possible to get a bargain, it is not likely. If you find a good business opportunity, odds are it won’t be cheap. And while interest rates are likely to be increasing in the

near future, they are still very low historically, and bank and U.S. Small Business Administration (SBA) debt are inexpensive forms of capital.

In a seller’s market, it is important to be a disciplined buyer. Expect to look at a lot of opportunities before finding the right one to pursue.

Whether buying a business or a building, spending too much now can increase your risk and reduce your reward over the long haul. A typical search can take many months and include looking at dozens of listings.

No matter what you want to buy, use technology to your advantage by finding online listing consolidators and setting up alerts for your listing criteria. And while technology is important, don’t neglect your own network and platforms such as LinkedIn and even Facebook. Get to know brokers or other intermediaries that can aid your search.

Quiet or loud?

Some decisions are easy. If you are currently unemployed and have decided to buy a business rather than find a new job, there is very little risk in announcing that to your network and the world. But if you are currently employed and plan to leave your employer at the point of an acquisition, you want to refrain from an announcement on LinkedIn. Similarly, business owners need to be very careful about when to let their landlord, employees or customers know they may be moving locations.

In today’s market, retaining staff can be a very important consideration in

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any move, so the timing and content of your communication is important.

Business and life events The more conservative among us may want to avoid going beyond our personal capacity to manage multiple changes at one time, but I see many entrepreneurs take on both major business and life changes all at once.

A business purchase might include a relocation and a need to pick up the family and move across the country.

A real estate purchase and buildout will certainly require a business owner to spend significant additional time managing the purchase, design, construction and transition to a new place of business. You can certainly outsource a portion of this process to your advisers and vendors, but such moves still can add significant responsibilities over a long time period. Add this to the regular daily responsibilities of business, kids, school and aging parents and it can be overwhelming.

What do you control?

Still thinking big? While there are a lot of challenges, you do have significant control over your own circumstances, which are key drivers of how well the big move plays out. I see three key things for buyers to manage to get off to a great start: Skills Do you have the experience and/or education to take on this challenge? And can you articulate that skill and experience? The greater and more relevant your skills and experience, the more likely you are to get funding and be successful over time. Whether you are looking for SBA funding or other forms of capital, you will likely need to paint a picture of your capacity to manage the business you want to buy and fund.

Personal financial resources Being financially well positioned to make a large purchase is the single most important thing business and real estate buyers can do to both ensure a good outcome and reduce uncertainty. Personal net worth and liquidity are a great antidote to anxiety. Your lender or capital partner should work with you to establish an appropriate capital position for both the business and its owners, from closing through ramp-up or construction and to normalized cash flow.

Maintaining a solid cash position so that you can manage cost overruns or longer than anticipated ramp-up will help you manage the uncertainty of today’s slower supply chains.

Patience and fit I have seen buyers that get desperate to leave an unhappy employment situation or landlord relationship.

Desperation does not usually lead to good decisions. Work with outside advisers to validate that you have thoroughly analyzed the opportunity, examined both the opportunities and risks and made sure it is a good fit for your situation. I see very few transactions that are an immediate “yes” for financing, but I see many requests that are a pretty quick “no.” I am talking about understanding both bank and SBA credit policies and qualifying criteria. But I also personally want to be confident buyers are making a dramatic improvement in their daily lives rather than helping them into a situation that increases their uncertainly and anxiety. If you keep these factors in mind and follow them closely throughout the process, you can definitely follow through on doing something big.

“ My customers are as motivated and impatient as I have ever seen them, and uncertainty has increased their desire to have as much influence as possible over the events around them.”

Gregg Klohn 21st Century Bank

Contact: Gregg Klohn is senior vice president and head of lending at 21st Century Bank: 612.229.0227; gklohn@21stcb.com; www.21stcb.com; www.linkedin.com/in/gregg-klohn.

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MARCH • APRIL 2022 UPSIZE

11

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technology

BUSINESS BUILDERS

IT security protections for every growing business

by Matt Jurcich

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Train your employees to notice scams and infected emails. All the spam filters and antivirus programs in the world can’t protect against someone clicking on and downloading a threat.

Implement an acceptable use policy outlining how everyone associated with your business is permitted to use devices, software, data, e-mail, and Internet access.

Rather than allowing employees to work on personal devices, consider issuing company-owned and monitored devices under an acceptable use policy to anyone who must work remotely. This gives you complete control over your company’s data for any eventuality.

Strong passwords and multifactor authentication are simple security steps that can add significant barriers hackers must get past to access your networks.

Update your software immediately with patches and updates created to repair vulnerabilities.

UPSIZE MARCH • APRIL 2022

Cybercrimes are increasing in intensity and hackers are set-

ting their sights on small and medium businesses who are more vulnerable for not fully investing in their network security. According to the National Cyber Security Alliance, at least half of the 82,000 new malware threats released daily to steal credit cards, sensitive data and money are aimed at SMBs. Take steps to implement critical IT security protocols and protect everything you have worked to build.

Training The number one security threat to any business is ... YOU. Almost all security breaches in a business are due to an end user clicking, downloading or opening an infected file, either from a website or an e-mail. Phishing e-mails (e-mails cleverly designed to look like legitimate messages from a website or trusted vendor) are increasing in sophistication and spam filters or antiviruses cannot protect your network when someone is intentionally clicking and downloading the threat.

Educating everyone connected to your network to spot an infected email or online scam is key to protecting your business. Cybercriminals can dupe even savvy computer users and just one slip could grant them access to infect other devices on your network. Also ensure the risks associated with public Wi-Fi use is well understood; prohibit accessing your network and any sensitive data through an unsecured internet connection.

Acceptable use policy On that same theme, implement an acceptable use policy (AUP) that outlines how everyone associated with your business are permitted to use devices, software, data, e-mail, and Inter-

net access. At a minimum, your AUP should limit the websites end users access with work devices and internet connectivity. Enforce the policy with customized content-filtering software and firewalls to grant permissions and rules that regulate online usage during company hours and/or with companyowned devices (social media, gaming, adult content, online shopping, etc.).

Restrict personal devices The use of unmonitored personal devices to access company apps, e-mails, and other sensitive data remotely are gateways for hackers to your network. Indeed, the global pandemic that imposed many employees to work remotely may have necessitated the use of personal devices for company business, but even employees who have returned on-site are asking to bring their own personal devices (BYOD) and use their smartphones for just about everything.

Alternatively, issue a companyowned and monitored devices under an AUP to anyone who must work remotely. This gives you complete control over your company’s data for any eventuality.

For example, if employees stop working for your organization, will you be allowed to erase all company data from their personal phone or laptop?

What if their device is lost or stolen?

Would you be permitted to remotely wipe it, hence deleting all their personal photos, videos, emails and texts?

Besides, highly sensitive data such as patient records, credit card details, and financial information may not be legally permitted to be accessed from devices that are not secured. If it is absolutely necessary for personal devices to be used for company business, insist on installing monitoring

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software that can be secured by your network administrator and under the directive of detailed AUP. Passwords and multi-factor authentication Requiring strong passwords and passcodes for all devices, networks, apps and sensitive files should be a routine security measure and enforced by your AUP. Passwords should be at least 8 characters and contain lowercase and uppercase letters, symbols and at least one number.

On mobile devices, requiring a passcode to be entered will go a long way in preventing access if it is lost or stolen. Likewise, implementing multifactor authentication (MFA) for all accounts on your network increases the difficulty for hackers. MFA requires anyone seeking access to present evidence from multiple distinct factors.

For example, something you know (a code) and something you have (sent to your phone).

Although cybercriminals are diligently working on methods to circumvent even these advanced security measures, MFA adds another barrier against hackers who may have stolen your passwords. Additionally, MFA alerts users to potentially suspicious account activity. Implementing these precautions and regularly enforcing them will help reduce network risks.

Software updates and patches Vulnerabilities are frequently found in common software programs such as Adobe, Flash or QuickTime. You can keep your network secure by making it a top priority to install updates and patches. Updating your systems and applications immediately when they become available is the best course of action. Consider working with a managed IT service provider to automate this process so your business does not

miss an important release that could leave your network exposed.

Monitor your backup An effective safeguard against the most aggressive ransomware attacks (where a hacker locks up your files and holds them ransom until you pay a fee) is a rock-solid backup. If your files are backed up, you don’t have to pay a crook to get them back.

A good backup will also protect you against accidental (or intentional) file deletion, natural disasters, fire, water damage, hardware failures and a host of other data-erasing catastrophes.

Therefore, make sure your backups are automated and monitored. The absolute worst time to test your backup is when you desperately need it to work.

Invest in a solid firewall Firewalls are the frontline defense against hackers. They block everything not specifically allowed to enter or leave an IT network. Current advancements in technology no longer make a good firewall cost prohibitive, so invest wisely in this key component of your network security. Most importantly, routinely monitor and maintain your firewall to warrant it from failure. Most managed IT service providers include this service in routine maintenance plans.

These seven security protocols when implemented in tandem help construct a multi-layer barrier to protect your network, data, and — most of all — hard earned money from security hacks. Working with a professional managed IT service provider to assure each piece is in working order will further protect your IT investments. Moreover, a cybersecurity insurance policy will help mitigate unpredictable losses.

“ Educating everyone connected to your network to spot an infected e-mail or online scam is key to protecting your business.”

Matt Jurcich Invisik Corporation

Contact: Matt Jurcich is owner and CEO of Invisik Corporation: 612.298.3000; support@invisik.com; www.invisik.com.

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MARCH • APRIL 2022 UPSIZE

13

COMINGSOON

Benefits of virtual reality, artificial intelligence trickling down to small businesses

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mir Berenjian likens the current state of where virtual reality (VR) headsets are to where the internet was in 1994 or iPhones 10 years ago.

The average person isn’t really sure what to make of virtual and augmented reality right now, but he says that’s changing.

With companies like Nike making big VR splashes through conducting virtual shoe try-ons via the Facebook’s Metaverse and equipment price points coming down, it’s only a matter of time, says Berenjian. He left a corporate banking career to help start the REM5 Virtual Reality Laboratory in St. Louis Park, where anyone can go experience a virtual reality headset while having drinks and dinner.

Berenjian, CEO of the lab and sister companies that include REM5 Studios, which is an agency that works with clients on using all forms of virtual, augmented and other extended reality to solve problems, tell stories,

build brands and connect humans.

“That’s the fun part about it,” he says.

Really, he adds, if every company convened a discussion, they’d all come up with one or more ways they could use virtual reality to better their businesses. He believes just like late adaptors to previous game-changing technologies, those who don’t adapt will be left behind.

“This technology is not just for technology companies,” he says. “There is not a company that won’t be a technology company in 20 to 30 years.”

Price points, perception changes making VR attainable

REM5 has worked with police departments, putting officers in VR scenarios to train them on de-escalation techniques, done corporate training with large companies on subject like diversity training and taken groups Amir Berenjian helped found the REM5 Virtual Reality Lab to break down barriers and make the technology available to all.

by Andrew Tellijohn photographs by Tom Dunn

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15

COVER STORY Kelvin Johnson,

co-founder and CEO of Brevity CPA and management consultant Kelvin Johnson Jr. was working a freelance job with a local start-up company when he came across the book “The 3-Minute Rule: How Hollywood Storytelling Can Help Your Business” by Brant Pinvidic.

The book discusses how Pinvidic successfully pitched Hollywood using the philosophy that he must be able to clearly and concisely provide all the vital information about his ideas in three minutes or less.

Johnson reached out to Pinvidic for some inspiration and advice and during their conversation, Pinvidic revealed he was looking to create an online course to help teach people his approach. Johnson took it one step further by co-founding Brevity, an artificial intelligence-powered pitch building and refinement platform.

“At that point I thought an online course sounds good, but what I think people need is an action-based pitch software,” says Johnson, who is also CEO of the company.

“So, I built it.”

Presenters, whether pitching a banker, a potential investor, in a competition or elsewhere, go into the Brevity platform and type in the pitch goal, audience and duration of the presentation. The software then recommends the number of statements and slides necessary to keep the pitch to an appropriate time — and it customizes the details to the type of pitch, so a three-minute speech for a startup fundraising opportunity would look different from a similarly timed pitch for a networking event.

The program’s trademarked pitch framework, called S.O.U.L., forces the presenter to consider several core concepts: The S stands for “state the target audience and problem,” the O for “outlining how and why your solution works,” the U for “uncovering that proof of potential,” and the L for “listing capabilities and needs.” So far, clients have raised more than $2 million since Brevity launched.

“You have to convey value on time constraints,” he says.

“I’m essentially trying to democratize the pitch process.”

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of students on countless discoveries using its headsets.

The company can create customized software for some of these experiences, but in others, it licenses already available technology.

That makes it affordable and manageable for organizations that don’t have the budget or time to handle the technology themselves.

“If you’re an 11th grade teacher teaching public speaking, you may be all in on VR being a tool you should be using in the classroom, but you’re not going to manage 25 headsets and software licenses and all the stuff that comes along with it,” he says. “So, you just partner with us. We license the software from the public speaking company.”

That is an option for small businesses. But prices also are coming down, says Thong Nguyen, founder and CEO of Roomera Inc., which is working on creating VR, augmented reality and mobile tools to help people imagine what their living spaces might look like. He’s been involved with virtual reality since 2016 and it’s only recently, he says, where people could go to a retail store and buy a decent headset for around $300.

“That was always one of the limiting factors,” he says.

“Not a lot of companies were willing to plunk down thousands of dollars on something that was more of a novelty.

So, price point accessibility, usability has gotten within the reach of the consumer.”

That doesn’t mean virtual reality is going to become true reality overnight. It still, Nguyen says, faces the perception that its largest use is its entertainment value.

“Unfortunately, most businesses look at it and they’re like ‘oh, I’d buy it for my kids for Christmas,’” he says.

“They tend to think of it as a toy. What they don’t realize is the foundation for business applications is being built right now.”

He compared it to the early days of Apple’s App Store, where it started out oriented toward consumers. Eventually developers realized the business-to-business and business-to-consumer potential for apps.

These changing factors provide a strong likelihood, Nguyen says, that within the next couple years, small businesses might see these technologies as a practical way to solve business needs. It’s already happening among small architectural, engineering and construction firms that “are going to have headsets they use with their clients,” he says, adding that otherwise small business adoption is just starting to uptick in other markets.

So, Nguyen adds, for the basic small e-commerce company? It’s probably premature to get involved in virtual reality. The franchise owner for a Snap Fitness, on the other hand, might find it useful to buy some equipment

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tech consulting

SOLUTIONS

Why Digital Transformations Fail: Top Mistakes Leaders Make

by Shelley L. Earsley

B

usinesses continue to adopt more advanced digital capabilities to stay competitive in today’s market, and this has accelerated the use of technologies such as artificial intelligence (AI) and real-time data analytics.

The potential benefits of these technologies are great, but when business leaders approach adoption with a narrow scope, patching their operations with technology to quickly meet demand, a lot can go wrong.

In truth, most businesses need to digitally transform. If you don’t stay current, you could be overtaken by a competitor or a new digital alternative. To ensure your transformation is meaningful and successful, consider these common failure points for businesses on the same journey.

1. Misunderstanding what digital transformation is.

A true digital transformation is holistic and accounts for total business impact. It transforms the original business model, involving a culture change and training. Leaders can’t be hesitant about overhauling their business models and operations to achieve success.

2. Not having leadership in the driver’s seat.

For the entire organization to adopt and execute change, the initiative must have the support, energy and drive of all key business leaders. This will help ensure a culture shift. Leadership can be champions for the business changes with customers, vendors and employees.

3. Being unwilling to invest what it takes to get it right.

A digital transformation will most certainly fail if you cut corners and go for the lowest price point versus investing in the right solutions, providers and implementers. You must be willing to invest what it actually takes to make the changes you want to make — and do it right.

4. Focusing on technology, not people and processes.

People and processes are even more essential to digital transformation than any digital component. Leaders must assess people’s willingness to change, their current skillsets, their potential, their current culture and more. And they must assess their current business processes before they can map out their next moves and transform.

5. Not having a thorough strategy.

You must map how you’ll get from your current state to your transformational goals with the resources you have, and which resources you’ll need to add. And you must also define what success will look like by determining metrics that are key to your goals.

Digital transformations are a big undertaking. Avoiding these common mistakes will help ensure your transformation sets you up for the type of growth that is critical for meeting your goals.

SHELLEY L. EARSLEY, CPA, PMP PARTNER Shelley provides leadership for organizations working through their digital transformations, business and technology initiatives, strategic planning, organizational design assessments and implementation projects. She leads a group of talented professionals focused on providing solutions to business challenges.

When you work with Shelley, you can expect an experienced consultant who will lead you through your digital transformation, guiding you through business and technology challenges, identifying effective solutions to solve those challenges, recommending optimized business processes, providing change management strategies and positioning your business to thrive.

Outside of work, Shelley enjoys spending time outdoors hunting and fishing, creating wonderful memories with family and friends and serving the community.

ABOUT EIDE BAILLY We are a CPA and consulting firm dedicated to helping our clients grow, thrive and embrace opportunities and innovation.

We’ll help you gain a new perspective of what’s possible and work with you to make that vision into reality. You’ll work with talented, down-to-earth people who are inspired to deliver outstanding expertise, care and results. In an ever-changing and evolving environment, we’ll be there with inspired ideas and solutions to tackle risk and propel you forward.

Eide Bailly U.S. Bancorp Center 800 Nicollet Mall, Ste. 1300 Minneapolis, MN 55402 eidebailly.com

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17

COVER STORY Amir Berenjian,

co-founder and CEO of REM5 Virtual Reality Lab Looking for a unique place for a family birthday party or a date night?

How about a virtual reality lab?

Amir Berenjian, CEO and co-founder of REM5 Virtual Reality Lab, left a steady career in investment banking and corporate finance to start the lab. In an 8,000 square foot space in St. Louis Park, REM5 houses several virtual reality pods that can be rented for 90 minutes and enjoyed along with pizza and local brews for a price around $120.

Berenjian’s goal was to make virtual reality accessible to everyone to learn, create and explore.

“I believe in this being the next computing platform,” Berenjian says. “It was not accessible. We needed to be able to show them the technology.”

Since the space opened in 2018, more than 35,000 people have tried the equipment.

“Having this physical space is a game changer,” Berenjian says, adding that getting their hands on the technology will remove uncertainty and make people realize its potential. “We took all the friction out. There is too much friction in the ecosystem right now.”

But that’s not all REM5 is about. REM5 For Good allows for use of the space by students in kindergarten through 12th grade, corporate customers and others looking to learn about the technology.

And currently the company’s largest source of revenue is REM5 Studios, a full-service XR (extended reality, which references all real-and-virtual combined environments and human-machine interactions generated by computer technology) agency, leveraging technology to solve problems. The company, for example, built a virtual Hall of Fame for the Minnesota Twins during the pandemic so fans could use a headset or web browser to be “transported into the Twins’ truly virtual clubhouse” to see artifacts, memorabilia and exhibits.

That business is important because the VR lab itself is space constrained. “If you are a restaurant you are limited by tables, Berenjian says. “The same is true here.”

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In addition to the VR pods, the REM5 Virtual Reality Lab hosts other events, including immersive interactive art shows.

and get started.

“There’s a lot of fitness stuff that’s emerging within VR right now,” he says. “My honest assessment is that it’s still very early, even though we’re quite a few years in. I think in the next 15 to 20 years, this is basically the new Internet.”

Artificial intelligence on the rise

A little further along on the development scale is small business adoption of artificial intelligence (AI), though Nguyen says those companies typically aren’t developing it on their own just yet.

“Businesses couldn’t hire a $200,000 AI engineer to build this stuff,” he says, adding that small businesses currently utilize AI tools developed by companies that specialize in such developments.

One example of this is Lucy AI, an artificial intelligence-powered knowledge management solution. Lucy, says co-founder Scott Litman, initially tried serving both large and small companies before realizing it was too much and deciding to focus on enterprise businesses.

While Lucy is currently designed for large companies, Lucy itself is a small firm with about 30 employees and Litman himself uses the product. It allows people to save time conducting searches for documents or answers to questions by searching any shared file infrastructure seeking answers. So, rather than taking several minutes or even hours to search through countless files, Lucy returns

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19

COVER STORY Thong Nguyen, founder and CEO of Roomera

Thong Nguyen has been involved in the virtual reality space for several years now largely as the founder and CEO of Roomera, a virtual reality platform that, broadly speaking, helps people see and test the future together.

Initially, Roomera had worked to help organizations minimize the risk of innovation by learning how people would respond to new experiences before attempting to scale. A lot of Roomera’s clients were in the retail and hospitality industries. For example, customers could experience via virtual reality a new flagship Krispy Kreme doughnut store that eventually went up in Times Square.

The company is finishing up a few of those contracts, but is now pivoting toward the consumer side, working on automating its technology and putting it on people’s mobile phones.

“The goal is to provide people with an app that lets them mockup their own space,” he says. “What we’re doing is giving you tools to digitize your space so that you can share that with architects all around the world or whoever.”

So, you don’t like your kitchen?

“We’re building the tools right now that would let you, in a minute, mockup the entirety of your kitchen,” Nguyen says. “Today, households around the world are making billions of decisions regarding their living spaces that will impact their future for years to come. We see an opportunity to make the process inspiring, effortless and accessible — and to bring the world closer together.”

search results to specific questions in seconds.

“If somebody makes a new proposal or a new RFP response, or our customer success team comes up with a new template for whatever process they’ve got going, they just save it into that file system,” he says. “Lucy is a member of that team that recognizes ‘oh, there’s new stuff, I’ll go read it tonight and I’ll know it for tomorrow.’ … These are very practical uses for how AI is able to benefit us similarly to how it benefits our clients.”

Justin Grammens is founder of Lab651 and host of AppliedAI, a newsletter, podcast and monthly Meetup group aimed at developing the next generation of AI experts. He also publishes a weekly artificial intelligence newsletter called IOT Weekly News. Grammens says as people look to be more efficient with their time, adoption is increasing among small businesses, costs are coming down in a way that makes AI and VR more accessible and several industries, from medical technology to marketing to education, are benefiting.

“You get what you pay for,” he says. “It doesn’t cost a whole lot for you to put a sensor on a piece of equipment that is out in the field and start getting data. And then you just learn from it. You don’t need to go in whole hog and spend a lot of money. Let’s just start with a pilot program.”

That being said, Grammens emphasizes that the AI product is only as good as the operator. “A two-year-old child is smarter than the best artificial intelligence in the world because a child can take a look at a picture and they’ll be able to see a face there,” he says. “Artificial intelligence doesn’t work that way. You have to have shown it millions of pictures of cats and dogs for it to finally realize ‘you know, that looks like a dog.’”

Grammens works with companies to not only get useful data but then also to find intelligent ways to bring that data value via AI. He advises companies that using artificial intelligence “is not a silver bullet,” but should be complementary to their business.

“The beauty of it is that it’s not so much scary or out on the edge anymore,” he says. “A lot of these things have been built and you can use off the shelf software. … People have to understand that there are a lot of really cool things you can do with not a whole lot of money. That’s what I like to talk to companies about is what is possible.”

Local SMB on AI-driven run

One local small business that dove into AI during the COVID-19 pandemic has seen its growth potential explode. Eden Prairie-based Williams AV acquired a company that had begun the process of creating an AI tool.

During the pandemic, the company finished its develop20

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COVER STORY Brad Kautzer,

president and CEO of Williams AV Williams AV started out as a hearing assistance company working from the founder’s garage. It’s been around for years, steadily serving that market and growing to a mid-sized entity.

Artificial intelligence driven technologies owned by Williams AV allowed the company to enter captioning and translation services that are applicable in many industries.

ment, using it to establish new translation and captioning services when in-person meetings were on hold, says Brad Kautzer, CEO. The move has given the company an avenue for accelerated growth, both within its existing customer base but also in newly discovered markets. Several new products are in development and the company is limited only by the resources it has available to develop the products.

“It’s been deliberate,” he says. “It hasn’t been by accident. And it’s not just the technology, but looking at the market and the opportunities and where do we grow with this? It’s been transformational for us.”

CONTACT: AMIR BERENJIAN is co-founder and CEO of REM5 Virtual Reality: amir@rem5vr.com; www.rem5vr.com; linkedin.com/in/amir-berenjian-90738220/ JUSTIN GRAMMENS is founder and CEO of Lab651 and involved in a number of other organizations: 612.208.8663; justin@grammens. com; www.justingrammens.com; linkedin.com/in/justingrammens/ KELVIN JOHNSON JR is CEO and founder of Brevity: kelvin@brevitypitch.com; www.brevitypitch.com BRAD KAUTZER is CEO of Williams AV: 800.328.6190; info@williamsav.com; www.williamsav.com; linkedin.com/in/brad-kautzer SCOTT LITMAN is co-founder of Lucy AI: info@lucy.ai; www.lucy.ai; linkedin.com/in/scottlitman

But during the COVID-19, pandemic company leaders evaluated its existing offerings and where it could grow in the future. That led Williams AV to finish an artificial intelligence-driven technology that allowed the company to expand into captioning and translation “that support people in an ability to be more communicative,” says Brad Kautzer, president and CEO. “Our mission is to help people by breaking down communication barriers and AI has done just that.”

Accurate captioning and language translation has been a need for a long time, Kautzer says. Programs like Google Translate have been around a while, but Williams AV was able to take some of that base technology and adapt it for customers, both existing and new. So, a client can use the company’s Caption Assist for visual representation of a conversation in the same language or, via Convey Video, can get the conversation translated in real-time into one or more of 127 languages. Accuracy is in the high 90 percent realm, Kautzer says.

The technology has been used in courtrooms, educational settings, beauty pageants, sporting venues and more. “We’ve got reference cases all over the world now.”

Williams AV works primarily through professional AV installers who work with end users, like churches, stadiums, museums, or schools. And both with its current AI-empowered technologies and others in development, AI has greatly expanded Williams AV’s growth expectations going forward. The company sees the market potentially expanding to medical translation services, international business communications, employer/non-native employee relationships and other areas in which such services can break down communication barriers.

“It presents for us an opportunity to go far beyond where we are today in the market spaces and go after more and bigger, more substantial opportunities,” Kautzer says. “It’s just continually opening our eyes.”

THONG NGUYEN is founder and CEO of Roomera Inc.: hello@roomera.com; www.roomera.com

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MARCH • APRIL 2022 UPSIZE

21

catching up

by Andrew Tellijohn

Johnston joins several banking vets in opening EntreBank

PHOTOS THIS PAGE BANKBEAT/TAYLOR CABINE

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ong-time readers of Upsize will recognize Melissa Johnston from the many Upsize/Club Entrepreneur panel discussions she took part in while serving as senior vice president and senior business banker at Highland Bank.

Truth be told, she says, she wasn’t looking to leave that role, even after learning of a new opportunity that would allow her to become a cofounder.

“People say ‘have you always wanted to start a bank?’ No, I haven’t,” she says. “In fact, when I was contacted to meet with Daniel [Boeckermann, the bank’s chair] to talk about being part of the founders’ group, it took me several months and a number of conversations before I even took the meeting. Then I took the meeting and thought it was a crazy idea.”

But after taking the meeting, her interest went from about a 5 percent to about a 50 percent. “And, then, from there, my interest kept going up.”

As the leadership group, which also includes CEO Tim Viere, President Todd Hovland and chief financial officer Erik Knutson, came together, Johnston finally came to believe starting what will become EntreBank was an opportunity she could not pass up.

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clients’ path with them and help them implement new strategies, be a sounding board through good times and bad, know where they got started, where they want to go and really create value to help them capitalize on opportunities.”

Viere says EntreBank will accomplish that by hiring people that have a sense of urgency about ensuring what Johnston said comes true.

“So many organizations are really top down,” he says. “I think we really kind of view ourselves from the bottom up, meaning that the individuals who are closest to the customer are closest to the operations. They’re the ones that Melissa Johnston, chief commercial are going to see on a daily basis how we officer, and Tim Viere, CEO, are two of can do things better.” the founders of EntreBank.

Viere was early in his career when the savings and loan he worked at conStanding apart verted into what became Voyager Bank, So, how does a group of founders “so the only thing in my career that I with a significantly entrepreneurial haven’t truly done was go through the mindset differentiate itself in an already application process of getting a brandvibrant market of community banks? new bank started.”

Johnston, who will be the chief credit officer and chief marketing officer, says Technology also key the employee team intends to be more While personal service will be imporresponsive, sit down face-to-face with tant, EntreBank officials say the ongoing clients to learn about their businesses pandemic and other factors have left and become a true adviser. people less interested in meeting in “A lot of other banks just take orders person than in the past. or may think they know what the cliThus technology also will play a key ent needs without really doing a deep role in EntreBank’s future. The bank dive,” she says. “We want to walk our will open a Bloomington branch locawww.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.

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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.

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catching up EntreBank

STUDIO EA

Description: New community bank Headquarters: Bloomington, MN Founded: 2022 CEO: Tim Viere CCO: Melissa Johnston Employees: 14 Website: www.entrebank.com

tion in March.

But the bank will use an open architecture core system, which means it can offer both proprietary and thirdparty external products to its clients, which is thought to allow institutions to better meet their needs.

“As fintechs and new technologies come along, I think our core system will allow us to respond more quickly than some of the legacy systems that are out there,” he says.

Both say staff will balance technology and personal relationships. Johnston, Viere says, has tremendous passion for building relationships with clients and will ensure their needs are being met.

“It doesn’t matter where your customer is located,” Viere says. “You take the old community bank mentality that is ‘your customer needs to feel like they belong. They need to feel like they are a part of the organization, that they feel like they belong there.’ I think that matches up with our culture, as well.”

Coming soon EntreBank will officially open soon and the company has been finishing up filling out its staff. Joining the co-founders will be 10 additional industry veterans. It’s an experienced group with varied talents and deep networks that Johnston and Viere say will allow EntreBank to hit the ground running.

But those cultural seeds were sown early on, as the founders quickly meshed their complementary skill sets. Johnston and Hovland “both have incredible client connections and clients that love doing business with them,” Viere says. Knutson is well versed not just on the financial side, but in technology. Boeckermann, the chair, has been on the board at two successful banks. And, Johnston adds that Viere is a master of reading a room and collaborating.

“He’s been so phenomenal at building this team,” she says. “He allows for healthy conversation and making sure everybody feels heard. He’s very openminded. Oftentimes he’ll start the conversation with ‘oh, I never thought about it that way’ or ‘huh, that’s never been brought up to me that way.’”

There have been few disagreements, but a couple challenges have arisen through the start-up process. They hit snags when closing in on a name for the company and on lease negotiations for a space they’d looked at for months.

When each of the first choices fell through, they gave themselves a brief period to be frustrated, but then shortly thereafter moved on to solutions they liked better.

“We’ve learned it’s a very positive group,” Viere says. “When you’re positive and proactive, you might not end up with things being perfect, but you’re able to improve things pretty quickly.”

“ We want to walk our clients’ path with them and help them implement new strategies, be a sounding board through good times and bad, know where they got started, where they want to go and really create value to help them capitalize on opportunities.”

Melissa Johnston EntreBank

Contact: Melissa Johnston is chief credit officer and co-founder of EntreBank: melissa@entrebank.com; www.entrebank.com; linkedin.com/in/Melissa-johnston-banker; Tim Viere is CEO and co-founder of EntreBank: tim@entrebank.com; www.entrebank.com; linkedin.com/in/timothy-viere-13670b 24

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EXIT STRATEGIES Exit Planning Institute

Peggy DeMuse, pdemuse@sunbeltmidwest.com 651-288-1627 Lisa Meyer, lmeyer@sunbeltmidwest.com 612-361-4918 www.sunbeltmidwest.com

Twin Cities Metro Area chapter 763-208-9119 exit-planning-institute.org Jessica Hawthorne, Administrator admin@e-officeconnection.com

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Member FDIC

Founded in 1943, Highland Bank is focused on 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.

Tom is a commercial photographer who has been helping businesses tell their unique story with photographs for websites and marketing materials since 2006. Tom works closely with his clients to understand their business and branding strategy and creates images that support their mission and success.

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Winthrop & Weinstine is a business with a deliberate culture of enterprise and fresh thinking. Our clients have big ideas, and our lawyers help turn those ideas into successful businesses. We represent clients in the early stages of their business in matters such as entity formation, capital raising, employment matters, vendor and customer agreements, and others. We provide counseling as your business grows, and work closely with clients to smooth the path to success.

John Thwing The SBA Guy

Show Content • Best Practices to Grow Enterprise Value • Business Owners Share their Exit Stories • Learn what it takes to exit on your terms!

• Guests share need-to-know advice for lucrative outcomes • Episodes are all under 30 minutes Subscribe on Apple, Spotify, Google, iHeart, Stitcher

Sponsorship Opportunities!

With over 30 years in the industry, John Thwing, SVP Head of Lending, locally known as the “The SBA Guy” is a recognized Twin Cities lender that entrepreneurs know and trust.

Specializing in: Owner-occupied Commercial Real Estate Business Acquisition Expansion Partner Buyout Franchise Construction Financing 612-505-9751 sbaguy@21stcb.com 43 Main St. SE Suite 144 Minneapolis, MN 55414

Download episodes and order the book! https://www.poisedforexit.com/ www.upsizemag.com

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UPSIZE RESOURCE DIRECTORY LEADERSHIP DEVELOPMENT Prouty Project

SBA LENDER Highland Bank

SBA LENDER Sunrise Banks

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

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

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.

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.

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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Member FDIC

MERGERS & ACQUISITIONS Lingate Financial Group

SBA LENDER 21st Century Bank

STRATEGIC PLANNING Prouty Project

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

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

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

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.

GROW OR DIE 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.

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.

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.

TIME TO SELL?

Year after year our closing record is 100% above the industry average Increase your odds of selling your business with Transitions In Business

Contact Sam Thompson, CBI, M&AMI 29 years as business owner and 9 years selling businesses sthompson@transitionsib.com • www.transitionsib.com 952-405-8470

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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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UPSIZE MINNESOTA is your source for the advice you need to help grow your business. By signing up for your FREE DIGITAL SUBSCRIPTION to Upsize, you will receive how-to advice six times a year in a full-page, easy-to-read format, complete with active links to relevant service providers and experts.

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

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BACK PAGE

Global Leaders Organization coming to Minnesota

prospects for GLO include business owners with $500,000 or more in revenues, business owners with at least three employees or C-suite executives with $1 million-plus in profit-and-loss responsibility.

If you are an entrepreneur interested in learning more and staying informed of upcoming events, please send a note to Chris and Paulie at GLO.Mpls.Info@ gmail.com.

by Andrew Tellijohn

E

ntrepreneurs looking to network and grow their businesses might consider joining one of many coaching organizations available to them in the Twin Cities. A local husband and wife team are bringing another to town, the Global Leaders Organization (GLO), a nationwide community aimed at helping with growth, connection and the raising of capital.

The organization was founded by its CEO Michelle Poscente, who has grown it to about a dozen local markets across North America. The Minneapolis chapter initially kicked off in early 2020, when an inaugural event drew nearly 75 participants.

The COVID-19 pandemic scuttled progress for a couple years. It’ll return in person with an event in late March.

Chris Christianson and Paulie Skaja will co-chair the Minneapolis chapter. Christianson, a residential realtor, and Skaja, an enterprise and leadership consultant, jointly responded in writing to some questions about what the organization is all about.

Tellijohn: What can you tell me about the organization?

Christianson & Skaja: GLO was created to help entrepreneurs build and grow their companies through our four pillars: • Connect with like-minded leaders in the international GLO community via a dynamic digital platform and enjoy face-toface interaction with our local chapter members.

• Commerce is facilitated through the GLO Marketplace.

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Chris Christianson and Paulie Skaja are reviving the Minneapolis chapter of the Global Leaders Organization.

This online opportunity empowers members to do business with one another.

• Capital, both working or growth, as well as credit and investment opportunities are available through GLO investment portals.

• Content is critical to promote continued business and leadership growth; GLO provides content to help members do just that, from weekly events with celebrity CEOs to monthly live, local events, networking opportunities and forums.

Tellijohn: Where are you at in setting it up and how will people engage with you?

Christianson & Skaja: GLO – Minneapolis launched right before COVID-19 hit. Throughout the pandemic, GLO continued to provide free content to support entrepreneurs. We are now ready to re-launch GLO – Minneapolis. Qualified

Tellijohn: What’s the organization’s mission?

Christianson & Skaja: The mission of GLO is to help 1 million entrepreneurs increase their revenues by 25 percent. Big goal for sure, but we feel equipped to do so. With our four pillars, we believe they are the backbone of all growing companies: community, to learn and grow with; commerce, to actually transact business with people you know and trust; capital, whether it is debt or equity, GLO can assist in finding the right capital; and content, help leaders continue to grow as leaders and business owners.

Tellijohn: Where can people go to get more information?

Christianson & Skaja: To learn more about GLO in general, visit withGLO.com.

To learn more about the Minneapolis chapter, consider attending a free informational session on March 24th starting at 4pm at Duke’s on 7 in Minnetonka, MN. Register here: https://www.eventbrite.com/e/glominneapolis-informational-sessiontickets-292185794577 Contact: Glo-Minneapolis co-chairs Chris Christianson and Paulie Skaja: 612.839.9193; GLO.Mpls.Info@gmail.com. www.withglo.com

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Over seven million households are

“unbanked.”

Prepare + Prosper offers FAIR Banking to help people obtain affordable bank accounts that offer transparency, trust, inclusion, access and partnership.

Learn more at sunrisebanks.com/prepareprosper

Member FDIC

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