Upsize Minnesota May/June 2024

“ There are all these rules and different hoops you have to jump through.

You really need somebody that understands how the process works.”

— Kent Patterson, co-founder, president and CEO

at Kamp Automation

Maximizing your project

Incentives and assistance available to small businesses if you know where to look

TIPS FOR SUPPORTING EMPLOYEES WHO DOUBLE AS CAREGIVERS

At Crown Bank, every client relationship comes with our commitment to understand the client’s needs, their goals, and their concerns. That unwavering commitment serves as the foundation for the journey toward success that we take together. Because from there anything is possible. What can we make possible for your business?

Cover story

Large company expansions and relocations make newspapers. But the state and a lot of smaller communities have programs and incentives in place to help small- and medium-sized businesses find the best deal available for such projects, as well

BY ANDREW TELLIJOHN

Cover photograph by Tom Dunn

BUSINESS BUILDERS

PAGE 4

Founder’s Forum:

A Bar of Their Own Founder Jillian Hiscock discusses her women’s sports only venue with Upsize Founding Editor Beth Ewen

PAGE 4

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 6 DATA

Steps for creating an effective data loss protection plan by Todd Thorsen, CrashPlan

PAGE 8 HR

Tips for supporting your employees who double as caregivers by Alaina Melena, Family First

PAGE 10 LAW

Here are several tips for dealing with the daunting process of getting subpoenad. by Jeffrey Klobucar, Bassford Remele

PAGE 12 MANAGEMENT

Working through fear while making decisions by Nancy Lyons, Clockwork

PAGE 14 STAFFING

Fractional and flexible remain the future of employement by Stacey Stratton, True Talent Group

COLUMNS

PAGE 22

CATCHING UP

Matt Schwandt, co-founder of Bauhaus Brew Labs, talks about his future, the medical situation that forced him to stop drinking and the impact on pushing the brewery to diversify its product line

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FOUNDING PUBLISHER

Wes Bergstrom

EDITOR AND PUBLISHER

Andrew Tellijohn atellijohn@upsizemag.com

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Beth Ewen bewen@upsizemag.com

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© 2024 Upsize Minnesota Inc. all rights reserved

A Bar of Their Own founder on ignoring the experts

On day 31 at her new bar that shows only women’s sports on all its TVs, owner Jillian Hiscock assessed a gonzo opening punctuated by women’s March Madness and Iowa superstar Caitlin Clark.

“We survived. That’s what it was like,” she said with a laugh, detailing lines down the block to patronize the first sports bar of its kind in Minnesota and one of only a handful around the world, so far.

Formerly in higher ed and not-forprofits, Hiscock began working full-time on A Bar of Their Own last July, pouncing when the former Tracy’s Saloon closed on East Franklin Avenue and raising $140,000 in a crowdfunding campaign. “It was a bear to get it open,” Hiscock said, marveling at “the fact that we were able to pull off the opening in time for March Madness.”

Hiscock was a threesport athlete in her youth who became a huge fan of women’s sports. But finding games on TV practically required a master’s degree. In April of 2022 she visited The Sports Bra in Portland, Oregon, owned by Jenny Nguyen and the first to show only women’s sports. Some of the best advice from Nguyen “is holding true to what I wanted to do. I continually had to do the gut check,” Hiscock said, when experts gave her advice that she ultimately ignored.

That’s not always easy, but her wife’s perspective is helpful. Megan Slater holds a doctorate in epidemiology and says each piece of feedback should be considered merely a data point, no more and no less. “What feedback is worth changing your plans?” is the question to answer.

“It’s very easy to get swayed by people,” Hiscock says, especially those she trusts and respects, but she’ll say no as often as necessary. "That’s scary because you’re putting your confidence in something uncertain, a dream, a vision.”

“The example I give is beer,” she said. “I had people tell me, ‘You have to have Michelob Golden Lite on tap. You have to. You have to.’ And I said, ‘what if I didn’t?’”

Instead, she sought out two womenowned breweries in Minnesota that produced Bent Paddle and Cowbell Cream.

“I’m not going to have a crappy beer on tap,” she insisted, but her stance was unpopular. “So, Jenny’s advice to hold true to your dream” became her rallying

Then I told her what happened when I watched the riveting women’s basketball final at a regular sports bar. The man next to me opined at length—despite my withering glare followed by a request he stop talking— why the women’s game is inferior to the men’s.

“Yup!” Hiscock said ruefully in response to a story she’s heard time after time. “I don’t know how long we need to yell about investing in women. There’s progress being made but it’s the old trope that nobody watches women’s sports. It’s when I go into Google and type in March Madness and the first 15 are men’s games. Why are there so many things that men are the default? Is there a way to put women first in everything?”

At A Bar of Their Own, only one month in, she’s paving the way. “We’re on the right path,” she says.

—Beth Ewen founding editor bewen@upsizemag.com

www.upsizemag.com cry. “At the end of the day it’s mine.”

Jillian Hiscock

data security

Manage your cash flow in a few simple steps

by Craig Veurink

Safety net strategies: Fortifying small business resilience with backup

by Todd Thorsen

TIPS

TIPS

Tell me the truth: if you lost your computer tomorrow, how much damage would that do to your small business? For many small and midsize businesses (SMBs), the whole world of their work is housed on a laptop.

If you’re confused why this is a problem, take a minute to consider just how impactful the loss of this data would be to your small business: one spilled cup of coffee, one inopportune drop of your laptop, one lost or stolen device or one incorrectly handled phishing scheme — that’s all it takes to wipe out the entire history of your business.

1. Map out your technology profile

The first step in building a good plan is to inventory or map out all the important technology and data used to operate your business. Consider both software applications and hardware and all the data they contain. This will help you visualize which systems and technology host your most important data.

1. Set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future

Imagine that all your notes, invoices, customer lists and emails vanish in an instant. Maybe in a best-case scenario, this sets you back several days before you can patch together a new workflow. As it is, SMBs (particularly those in the early stages of their business) are often working with paper-thin margins. Could you afford this much downtime?

1. First, inventory or map out all the important technology and data used to operate your business.

Small businesses are usually founded by entrepreneurs who have a unique vision and a passion that drives them to work late hours, take chances and believe in what they’re doing. But, just as Thomas Edison once said that genius is 1 percent inspiration and 99 percent perspiration, successfully running a small business requires rolling up your sleeves and putting in significant time on more mundane, day-today matters.

Once you know the complete picture of the data your business uses, you’ll start to get a clearer picture of your priorities for data recovery and the unique risk profile of your organizational data.

2. Think through the risks and impacts of data loss

“When do I start to turn a profit?”

Rather than wonder, set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future.

2. Build a risk profile for your specific business’ needs. Update it periodically to ensure you are taking necessary steps to ensure your vital data is protected and recoverable.

2. Put cash flow before profits. It might seem counterintuitive, but if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix

It’s a grim prospect. But all the more frustrating is that all this loss is preventable. Because it all boils down to human error. And while the effects of human error can be devastating, mitigating it is simple: it’s a matter of awareness, good policy and empowered employees.

You can be driven, impassioned and have a great idea to fill a niche or serve customers in new ways, but if you don’t attend to the details of the business, you can create for yourself a heap of problems.

The next step is to try to assign a level of importance to the systems and data while thinking through what the impact would be to your business if that data was no longer available (e.g. due to human error, ransomware attack or system outage).

2. Put cash-flow management before profits

3. Have a right-sized response plan and data recovery tool in place that allows you to recover and resume operation with minimal disruption.

3. Secure credit ahead of time. Most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected

4. Consider using a payroll service. Having the professionals take care of collecting payroll taxes saves them an enormous amount of time, helps streamline their cash flow

4. Don’t rely on locally stored backups for data protection. The most effective means to ensure all your valuable data is available to recover when you need it is to leverage a purpose-built cloudbased endpoint backup solution.

While there’s no magic bullet to stop data loss, one simple tool can protect you from it: a data recovery plan. A plan like this can be thought of like a fire evacuation drill: a practiced plan backed up by a purposebuilt tool to recover your data and get you back to business when your data gets lost and compromised.

Here, we’ll look at one of the most important of these business details: managing cash flow. Especially for early startups, knowing how much cash is coming in and going out, and accurately forecasting sales and expenses, is key to maintaining your company’s health.

No matter where you are in your business, keep these things top of mind:

3. Secure credit ahead of time

5. Schedule your payments. Don’t go delinquent but do divide your payments into categories such as “must pay,” “important to pay” and “flexible payment terms.” This can help keep sufficient cash on hand.

5. Revisit and update your plan regularly as your business grows to ensure you are keeping up with any changes and protecting everything you need.

1. Know when you will break even

Every small business owner keeps at the front of their mind the question:

But most SMB owners aren’t IT specialists and many aren’t large enough to warrant dedicated IT staff. So where should they start? Here are six points to consider in building your disaster recovery plan. And the good news is that you can keep it simple and evolve it as your company grows and risks evolve.

This might seem counterintuitive, since profits are how you survive. However, if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix. Keep things organized and well managed so you can be ready for whatever success comes your way.

Are there any specific risks associated with your data (e.g. intellectual property, customer lists and contact information, credit card numbers, health information, etc.)? These risks will vary from business to business, so think through specifically what is important and valuable to your business operations. Depending on the data involved, there may be financial, operational, legal or reputational risks to consider.

3. Build a response plan

Too often, small business owners wait until they need it to secure credit. This can cause a lot of unnecessary stress, or worse. Talk to experienced business owners in your area and industry ahead of time to know how much revenue you’ll need up front. Take a realistic look at the situation and plan. You might have sufficient cash reserves or a rich uncle who is only a call away, but most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected.

Whatever the case, building a solid risk profile and periodically updating it will allow you to take appropriate steps to protect that data and ensure that it is recoverable when things go wrong.

Do what makes sense based on the size and risk appetite of your company. For example, smaller organizations may be fine with a simple, BUSINESS BUILDERS

one-page plan which outlines the critical data stored on their hardware and software and what their capabilities are to recover it when things go wrong.

Larger organizations may be better served by designating a person or small team to be responsible for creating a more detailed plan for recovery based on critical data, controls and risk tolerance, as well as testing the plan and recovery capabilities periodically. The important thing is to have a right-sized response plan and data recovery tools in place before you need them so you can quickly take action to recover and resume operations without disruption to your business when the time comes.

4. Set your priorities

What data assets are missioncritical to your organization? Which ones are important but can wait? And which are nice-to-haves, but not the end of the world to lose in the event of a breach? Answering these questions will help you set priorities in data backup and recovery, allowing you to streamline the process and have a clear hierarchy around what you need to recover and how quickly.

5. Get cloud-based backup

The previous steps were at the level of procedure. This next step is the most important and can be as simple as incorporating the right tool.

Let’s start with what not to do. Definitely do not, under any circumstances, rely solely on locally stored data as your backup, which can introduce risk if your local network is corrupted or suffers an outage. Equally as risky is relying on cloud collaboration platforms like Google Drive or SharePoint for backup and recovery. These tools are designed for collabo -

ration and not complete backup and recovery solutions.

The most effective means to ensure all your valuable data is available to recover when you need it is to leverage a purpose-built cloudbased endpoint backup solution. They are simple to use and reliable and cost effective for small businesses.

Key features to look for include automatic backup, unlimited data backup including every version of every file, and data encryption. Other solutions that host your data onsite or that are not explicitly built for backup will not provide the level of protection needed for your business.

Even without the above protocol in steps 1 - 4, a purpose-built endpoint backup solution will work to protect your organization’s important data and ensure it is available to recover when you need it, allowing you to nip data loss in the bud.

6. Update and test

Finally, a disaster recovery plan isn’t a one-time, “set-it-and-forgetit” solution. As your business continues to change and grow, your plan may need to change with it. Make sure to revisit your plan periodically and make appropriate changes if needed.

Also, just like with a fire evacuation drill, your plan should be tested periodically. Run data loss scenarios (for example, what if you lose your laptop) and see how strong your recovery tools are. Through this sort of testing, you’ll have confidence and peace of mind knowing that your important data is protected and recoverable in the event things go wrong and when you need it most.

Contact: Todd Thorsen is the chief information security officer at CrashPlan: info@crashplan.com; www.crashplan.com; in/todd-thorsen7015bb65

“A disaster recovery plan isn’t a one-time, ‘set-it-and-forgetit’ solution. As your business continues to change and grow, your plan may need to change with it.”

Todd Thorsen

CrashPlan

human resources

Supporting your working caregivers

by Alaina Melena

Manage your cash flow in a few simple steps

by Craig Veurink

TIPS

TIPS

1. Set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future

1. Focus on outcomes, not hours at a workstation, should be the first step to creating a workplace that can adapt to employees’ needs.

According to the Rosalynn Carter Institute for Caregivers, one in five full-time employees — more than 26 million people in the U.S. — cares for a loved one while continuing to work full-time. Even more startling, a 2023 AARP survey reported that more than half of workers between the ages of 40 and 49 self-identify as caregivers, spending an average of 20 hours a week caring for aging parents, children or both.

Small businesses are usually founded by entrepreneurs who have a unique vision and a passion that drives them to work late hours, take chances and believe in what they’re doing. But, just as Thomas Edison once said that genius is 1 percent inspiration and 99 percent perspiration, successfully running a small business requires rolling up your sleeves and putting in significant time on more mundane, day-today matters.

“When do I start to turn a profit?”

Rather than wonder, set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future.

2. Put cash-flow management before profits

are turning to comprehensive caregiving platforms to provide specific human and data-driven solutions to help support working caregivers. For smaller companies, having the resources to design new internal caregiving support systems or utilize external platforms may be challenging. The good news is that there are still ways to support working caregivers in your organization. Here are five actions to consider to better support your working caregivers, reduce impacts on productivity and maintain a healthy work culture:

2. Flexible work policies can include varied start and finish times, compressed workweeks or job sharing.

2. Put cash flow before profits. It might seem counterintuitive, but if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix

3. Secure credit ahead of time. Most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected

3. Encouraging leaders to share their personal caregiving experiences can help set a tone of understanding that can help normalize the challenges of working caregivers.

4. Consider surveying employees and focus groups to determine what benefits would make a difference when it comes to offering more personalized options, such as lifestyle spending accounts.

4. Consider using a payroll service. Having the professionals take care of collecting payroll taxes saves them an enormous amount of time, helps streamline their cash flow

5. Schedule your payments. Don’t go delinquent but do divide your payments into categories such as “must pay,” “important to pay” and “flexible payment terms.” This can help keep sufficient cash on hand.

5. Provide access to mental health resources such as confidential counseling and employee assistance programs to create a culture normalizing and supporting mental health.

The number of people older than 65 is rapidly growing, as are the numbers of people who are chronically ill or disabled. Caregiving responsibilities are increasingly impacting workplaces, as the dual role of working caregivers often leads to increased stress, absenteeism and even attrition.

You can be driven, impassioned and have a great idea to fill a niche or serve customers in new ways, but if you don’t attend to the details of the business, you can create for yourself a heap of problems.

Here, we’ll look at one of the most important of these business details: managing cash flow. Especially for early startups, knowing how much cash is coming in and going out, and accurately forecasting sales and expenses, is key to maintaining your company’s health.

These factors adversely affect a person’s output and can influence team dynamics and morale. Some studies report that, on average, companies currently lose as much as one-third of their productivity due to the caregiving duties of their employees. The projected loss of productivity is staggering for organizations and the U.S. economy.

No matter where you are in your business, keep these things top of mind:

1. Know when you will break even

This might seem counterintuitive, since profits are how you survive. However, if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix. Keep things organized and well managed so you can be ready for whatever success comes your way.

3. Secure credit ahead of time

Companies are addressing this growing crisis in several different ways. Larger organizations take advantage of robust HR and benefits departments to create internal caregiving support programs. Others

Every small business owner keeps at the front of their mind the question:

1. Implement flexible work policies. Shifting the focus from attendance to deliverables-based performance should be the first step to creating a workplace that can adapt to employees’ changing needs. Flexible work policies could include varied start and finish times, compressed workweeks, job sharing, part-time work, and, of course, remote work options. These elements exist in new work policies like 3M’s “Work Your Way” program, which relies heavily on trust combined with maximum flexibility. Companies of all sizes can remove the stigma and/or penalties associated with caregiving-related absences by focusing on outcomes rather than hours spent at a workstation. Studies and empirical evidence show that it

Too often, small business owners wait until they need it to secure credit. This can cause a lot of unnecessary stress, or worse. Talk to experienced business owners in your area and industry ahead of time to know how much revenue you’ll need up front. Take a realistic look at the situation and plan. You might have sufficient cash reserves or a rich uncle who is only a call away, but most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected.

not only supports the well-being of employees but can also lead to increased job satisfaction, loyalty and productivity.

2. Foster an open leadership culture. Many employees may feel uncomfortable discussing their current situation even when there are flexible policies. They may feel that their employer will question their commitment to the workplace or that they’ll get passed up for a work opportunity or promotion. Perhaps they’ve even seen co-workers experience career setbacks or even lose their jobs due to the impacts of caregiving.

However, many high-performing employees and people in leadership positions are also working caregivers. Encouraging leaders to share their personal caregiving experiences can help set a tone of understanding and support that goes a long way. This type of openness helps normalize the challenges of working caregivers, making people more willing to seek help from their employers.

3. Consider your benefits offerings. Benefits can be a significant cost for employers, but there are ways to expand core benefits without incurring large cost increases. Consider conducting employee surveys and focus groups to identify benefits that may be easy to offer and could make a big difference when it comes to working caregivers’ needs in terms of offering more personalized benefits. Lifestyle spending accounts, for example, are flexible benefits to support various employee needs, from dependent care to personal well-being. This benefit, funded by employers, offers a versatile solution to support employees’ diverse needs.

4. Promote inclusive social activities. Working caregivers may find it challenging to participate in important team-building and social events outside of work and really value the social connection with colleagues. As an employer, you can organize these activities during work hours to ensure inclusivity and support everyone on the team. If you’re committed to volunteering as a group, try to find opportunities that allow employees to engage without impacting their caregiving responsibilities or that can occur during the regular work schedule.

5. Make mental health a priority. Providing access to mental health resources involves offering employees services such as confidential counseling, employee assistance programs (EAPs), stress management options and mindfulness training. Again, as leaders you must promote a culture that normalizes mental health issues by talking about stress and other concerns openly and honestly, and by offering benefits that support mental health. By providing resources and flexibility, employers can alleviate the stress and challenges caregiving employees face, ensuring they achieve productivity and balance in all areas of their lives. This benefits the employees and contributes to a positive workplace culture, ultimately supporting the organization’s bottom line by retaining valuable talent and maintaining high operational efficiency.

Contact: Alaina Melena is the chief strategy officer for Family First: 651.235.1761; amelena@family-first.com; www.family-first.com; n/Alaina-melena-35183844

“By providing resources and flexibility, employers can alleviate the stress and challenges caregiving employees face, ensuring they achieve productivity and balance in all areas of their lives.”

Alaina Melena Family First

BUSINESS BUILDERS banking

Subpoena survival skills

by Jeffrey Klobucar

Manage your cash flow in a few simple steps

by Craig Veurink

TIPS

TIPS

The arrival of a subpoena is an unwelcome intrusion. From navigating the delicate balance between legal obligations and protecting proprietary or confidential information to understanding the implications on reputation and stakeholder trust, companies face multifaceted decisions when responding to subpoenas. Here, we explore the various approaches, considerations and best practices that enable companies to effectively navigate subpoenas.

Initial assessment of a subpoena

designate documents as confidential.

Importantly, if a document does not exist, it does not need to be created. Additionally, the documents must be reasonably accessible such that production does not create an undue burden or expense. If production will create an undue burden or expense or seeks confidential or proprietary information, a responding party can object to the subpoena or move to quash or modify the subpoena.

• Objecting to a subpoena

1. Companies should consider several factors when they receive a subpoena, including whether producing requested documents presents a legal risk or whether said documents contain proprietary trade secrets or confidential information.

1. Set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future

Subpoenas seek documents (duces tecum) and/or testimony. A subpoena for testimony is directed to an individual or a corporate designee either at a deposition or trial. Regardless of the type of subpoena that is served, three overarching principles should guide the responding party: (1) whether the underlying action presents a legal risk; (2) whether producing the documents presents a legal risk; and (3) whether the requested documents contain proprietary trade secrets or confidential information.

Responding to a subpoena

Small businesses are usually founded by entrepreneurs who have a unique vision and a passion that drives them to work late hours, take chances and believe in what they’re doing. But, just as Thomas Edison once said that genius is 1 percent inspiration and 99 percent perspiration, successfully running a small business requires rolling up your sleeves and putting in significant time on more mundane, day-today matters.

• Producing documents

2. Put cash flow before profits. It might seem counterintuitive, but if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix

2. Redact financial information, Social Security numbers and any records that identify other employees before producing information.

3. If the subpoena asks for confidential or proprietary information or fulfilling the request would require undue burden or expense, it can be challenged by the responding organization.

3. Secure credit ahead of time. Most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected

4. Consider using a payroll service. Having the professionals take care of collecting payroll taxes saves them an enormous amount of time, helps streamline their cash flow

4. In Minnesota, a witness subpoenaed for testimony must be compensated for the time and expense spent preparing for the testimony.

5. “I don’t know“ is not an acceptable response during a deposition for a company designee. Preparation is critical because the designee’s testimony will bind the corporation.

5. Schedule your payments. Don’t go delinquent but do divide your payments into categories such as “must pay,” “important to pay” and “flexible payment terms.” This can help keep sufficient cash on hand.

You can be driven, impassioned and have a great idea to fill a niche or serve customers in new ways, but if you don’t attend to the details of the business, you can create for yourself a heap of problems.

Here, we’ll look at one of the most important of these business details: managing cash flow. Especially for early startups, knowing how much cash is coming in and going out, and accurately forecasting sales and expenses, is key to maintaining your company’s health.

If there is no legal risk and no confidential or proprietary information, companies should produce documents without any limitations. Documents must be produced as kept in the normal course of business or organized to correspond with the categories in the subpoena. If the request contemplates documents or things that are electronically stored, the responding party can produce the materials either as stored or in a reasonably usable format.

No matter where you are in your business, keep these things top of mind:

1. Know when you will break even

Every small business owner keeps at the front of their mind the question:

Before producing any information, Social Security numbers and financial information (e.g., account numbers) must be redacted. If the records include the identity of another employee, that employee’s name should be redacted. If there is a protective order, companies can

“When do I start to turn a profit?” Rather than wonder, set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future.

2. Put cash-flow management before profits

This might seem counterintuitive, since profits are how you survive. However, if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix. Keep things organized and well managed so you can be ready for whatever success comes your way.

3. Secure credit ahead of time

State and federal procedural rules permit companies to object to subpoenas. The objection must be in writing and served within 14 days of service or before the time specified for compliance if that time is less than 14 days after service. If objections are not timely served, they will be waived. Once timely objections are made, no further response is required absent a court order. In addition to undue burden and expense, a subpoena is objectionable if there is insufficient time to respond; the required compensation is not paid; responding to the subpoena would require the disclosure of confidential or proprietary information; and the subpoena is overbroad. When a subpoena seeks employment records or health information, businesses should be extra cautious.

Serving a written objection will force the requesting party to work with the responding party to resolve disputes. Additionally, objecting buys time and provides the company with protection from production. If an agreement is reached with the requesting party, the same considerations discussed above apply.

• Motions

Too often, small business owners wait until they need it to secure credit. This can cause a lot of unnecessary stress, or worse. Talk to experienced business owners in your area and industry ahead of time to know how much revenue you’ll need up front. Take a realistic look at the situation and plan. You might have sufficient cash reserves or a rich uncle who is only a call away, but most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected.

An alternative to a written objec-

tion is filing a motion to quash or modify a subpoena with the court. Although court involvement adds costs, it may be necessary where the requesting party is unwilling to modify its requests after written objections or if the responding party is contractually obligated to confidentiality and cannot obtain a waiver. If the court denies the motion, the same considerations discussed above apply.

Compensation for responding

Generally, a company or person responding to a subpoena is entitled to compensation. In Minnesota, a witness subpoenaed for testimony must be compensated for the time and expense spent preparing for the testimony. A company producing documents must be reimbursed for the time spent producing documents and copying costs. The compensation must be paid before the production of documents or testimony. If the requesting party does not agree to the requested compensation, the responding party is not required to comply with the subpoena, unless there is a court order.

Foreign subpoenas

Subpoenas that are issued in a state different than where they are served or from a federal agency are called “foreign” subpoenas. For a “foreign” subpoena to be enforceable, the subpoena must comply with the rules of the state where the subpoena originated, as well as where the subpoena is being served. A “foreign” subpoena must be domesticated in the state where it will be served.

Subpoena for deposition testimony

Subpoenas for testimony may be directed to fact witnesses or corporate representative designees. A subpoena is objectionable if it does not provide

enough notice for the deposition (e.g., the deposition date is within seven to 10 days after service) or requires the witness to travel great distances.

Subpoenas for a designee’s deposition may be objectionable for the same reasons as a subpoena duces tecum. If any of the designated topics cover privileged, confidential or trade secret information or are burdensome, written objections or a motion should be served within the 14-day window. A designee must be prepared to discuss all the topics identified in the subpoena unless the topics have been narrowed either by agreement or a court. “I don’t know “ is not an acceptable response. Preparation is critical because the designee’s testimony will bind the corporation.

Preparing fact witnesses may include familiarizing themselves with documents where they are an author, contributor, or recipient. However, they do not need to memorize the documents. Unlike a designee witness, “I don’t know” or “I don’t remember” are acceptable answers.

Conclusion

Subpoenas can be daunting, but they are manageable. Companies should determine the applicable deadlines for compliance or objections, then consider (usually with counsel) whether there is a basis for objecting, and if so, acting quickly to avoid waiving the right to object.

If the requesting party agrees to narrow the subpoena or a court modifies the subpoena, then produce the responsive documents, but do so under the provisions of a protective order. While the above information is not comprehensive, it will arm companies with vital skills to survive the subpoena process.

Bassford Remele attorney Beth LaCanne contributed to this article.

Contact: : Jeffrey Klobucar is a shareholder with Bassford Remele: 612.376.1639; jklobucar@bassford.com; www.bassford.com; in/jeffrey-klobucar-3861467. Beth LaCanne is an attorney with Bassford Remele: 612.376.1610; blacanne@bassford.com; www.bassford.com; in/beth-lacanne-b3bb2314

“Subpoenas can be daunting, but they are manageable.”

Jeffrey Klobucar Bassford Remele

Taking risks when you’re scared

by Nancy Lyons

Manage your cash flow in a few simple steps

by Craig Veurink

TIPS

TIPS

1. Set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future

1. Name your fear. Articulate what you are afraid of and then ask yourself “then what?”

2. Put cash flow before profits. It might seem counterintuitive, but if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix

2. While adverse outcomes are a possibility, we often let our fears outweigh the likely consequences of a decision.

3. Grounding your thinking in your company values can help make the case for a risk and settle some fears around the decision.

3. Secure credit ahead of time. Most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected

4. Assess what you can learn from the risk you are taking. Perhaps even if you don’t get the result you are seeking, taking the risk will provide information of value anyway.

4. Consider using a payroll service. Having the professionals take care of collecting payroll taxes saves them an enormous amount of time, helps streamline their cash flow

5. Schedule your payments. Don’t go delinquent but do divide your payments into categories such as “must pay,” “important to pay” and “flexible payment terms.” This can help keep sufficient cash on hand.

5. Identify what you may miss out on by not taking the risk. Inaction can have as many negative consequences as poorly thoughtout actions.

Risks are a necessary part of business, yet most of us find them hard to take. We hem and haw, try to collect endless data to substantiate our decisions or just put off decisions altogether. Neither our fear of risks nor the need to take them will likely go away anytime soon, so perhaps the best path forward is learning to take risks even when you’re scared.

just as Thomas Edison once said that genius is 1 percent inspiration and 99 percent perspiration, successfully running a small business requires rolling up your sleeves and putting in significant time on more mundane, day-today matters.

You can be driven, impassioned and have a great idea to fill a niche or serve customers in new ways, but if you don’t attend to the details of the business, you can create for yourself a heap of problems.

Here, we’ll look at one of the most important of these business details: managing cash flow. Especially for early startups, knowing how much cash is coming in and going out, and accurately forecasting sales and expenses, is key to maintaining your company’s health.

No matter where you are in your business, keep these things top of mind:

As a small business owner myself, I’ve made tough calls. I’ve had to jump into new ventures with some unknowns and I’ve had to cut some opportunities short that seemed right but turned out not to be best. I’ve had to fire clients and say no to engagements that didn’t align with our values. These were all risks, some more calculated than others, but risks nonetheless. From these experiences, I’ve noticed that I can more easily take risks, even with some fear, if I follow a handful of accessible practices.

1. Know when you will break even

What’s the downside?

Every small business owner keeps at the front of their mind the question: “When

Name your fear. Articulate what

will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future.

2. Put cash-flow management before profits

you’re afraid of and then add, “Then what?” For example, “I’m afraid it will be a waste of money.” Then what will happen? Will you go bankrupt or have you hedged your bets enough to sustain the loss?

This might seem counterintuitive, since profits are how you survive. However, if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix. Keep things organized and well managed so you can be ready for whatever success comes your way.

3. Secure credit ahead of time

Often our fear of something far exceeds the likely consequences. Of course, there may be adverse outcomes, and stakes are always at play. But if you’ve calculated your risk to some degree, the sky won’t fall. Help your brain and emotions remember that by walking through the specific aspects of your fear and potential outcomes.

Let your values guide you. I find that grounding my thinking and decisions in our company values helps me both make the case for a risk and settle some of my fears around it. Connecting a risk to your values shows how aligned the risk is with who you are as a company. If you can’t see the value of the risk within any of your values, it might not be the right path. But if you see how the risk lines up with the actions and behaviors driven by your values,

Too often, small business owners wait until they need it to secure credit. This can cause a lot of unnecessary stress, or worse. Talk to experienced business owners in your area and industry ahead of time to know how much revenue you’ll need up front. Take a realistic look at the situation and plan. You might have sufficient cash reserves or a rich uncle who is only a call away, but most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected.

it can start to feel much less scary. When you show the throughline to your values, you can demonstrate to others that the decision isn’t random, even if it’s risky.

Upsides despite failure

Assess what you can learn from the risk you’re taking. There is powerful value in seeing the upside of things, yet “believe things will work out” isn’t great practical advice (even though it is good). So, rather than try to put on rose-colored glasses, I look for value in the situation even if things don’t work out. Perhaps the outcome of what you do won’t precisely be what you want or expect, but what data will it give you? Incremental learning is crucial and valuable in a small business operation.

If you offer a new product that doesn’t take off, you have learned what customers don’t want. If you raise prices on various services and clients protest, you have learned where your current price ceiling is. These sound like lessons you don’t really want to learn, but that doesn’t mean you aren’t learning something valuable.

Identify what you may miss out on by not taking the risk. In business, inaction can have as many negative consequences as poorly thought-out actions, but we often don’t take stock of them because they’re difficult to identify. If you don’t take a particular risk, will you lag behind your competitors? If so,

what is the risk of that?

By doing this calculation, you start to understand the opportunities lost. This thinking can help you understand the risk of not taking the risk (a bit meta, I know).

Seeking outside guidance

Walk a trusted colleague or team through your reasoning (everything above). Pausing to share details about your thought process can help you determine if you missed something and see what you got right about the risk. Outline the risk you’re taking, why you’re nervous, why you’re taking it, what you can gain or learn from doing so and what you may miss if you don’t take it. See if going through your thoughtful steps changes your mind about any aspect of the risk and ask your audience for their perspective. You’d be amazed at what we miss when our thinking is clouded by the emotions fear can bring up.

I don’t think our fear is going anywhere. Veteran business owners still feel it. We can’t be fearless, but we can fear less. By taking these steps, you start to see the risk with more dimension and objectivity, combatting the all-or-nothing thinking and subjectivity that fear can bring.

“Neither our fear of risks nor the need to take them will likely go away anytime soon, so perhaps the best path forward is learning to take risks even when you’re scared.”

Nancy Lyons Clockwork

Contact: Nancy Lyons is CEO and co-founder of Clockwork and author of Work Like a Boss: A Kick-in-the-Pants Guide to Finding (and Using) Your Power at Work: 612.746.1850; nancy@clockwork.com; www.clockwork.com; in/nancylyons

Employers: The future is flexible and fractional

by Stacey Stratton

Manage your cash flow in a few simple steps

by Craig Veurink

TIPS

TIPS

1. Set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future

1. Using remote and hybrid employment models has not decreased as a recruiting tool since the pandemic dissipated. It remains a great tool.

2. Put cash flow before profits. It might seem counterintuitive, but if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix

2. If you are requiring employees to work in person for a portion of the week, employees value the opportunity to pick which days they will be in the office.

3. Secure credit ahead of time. Most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected

3. The use of short-term contract or freelance workers continues to increase. Utilize the gig economy to your advantage.

4. Consider using a payroll service. Having the professionals take care of collecting payroll taxes saves them an enormous amount of time, helps streamline their cash flow

4. Hiring fractional workers can save 30 to 40 percent of the cost of hiring full-time employees and these workers typically come with significant experience.

What was once thought of as a ‘traditional’ job with the employee full-time and on-site is not as common as it once was. The accelerated change in the workforce over the past few years has driven both flexibility in the workforce and the rise of fractional employees.

Employers who are willing to be open and adaptable are the ones who win — and retain — the best talent.

Small businesses are usually founded by entrepreneurs who have a unique vision and a passion that drives them to work late hours, take chances and believe in what they’re doing. But, just as Thomas Edison once said that genius is 1 percent inspiration and 99 percent perspiration, successfully running a small business requires rolling up your sleeves and putting in significant time on more mundane, day-today matters.

“When do I start to turn a profit?”

Rather than wonder, set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future.

2. Put cash-flow management before profits

5. Bad hires are expensive. Hiring a fractional employee allows you to try before you buy to determine if they are the right fit.

5. Schedule your payments. Don’t go delinquent but do divide your payments into categories such as “must pay,” “important to pay” and “flexible payment terms.” This can help keep sufficient cash on hand.

You can be driven, impassioned and have a great idea to fill a niche or serve customers in new ways, but if you don’t attend to the details of the business, you can create for yourself a heap of problems.

Here, we’ll look at one of the most important of these business details: managing cash flow. Especially for early startups, knowing how much cash is coming in and going out, and accurately forecasting sales and expenses, is key to maintaining your company’s health.

Let’s start with flexibility. Employee turnover can negatively and significantly affect an organization’s operations and long-term success due to its financial impact. Recruiting and then onboarding new employees are considerable upfront investments. The average employee turnover is three times salary, not to mention the stress and sleepless nights for hiring managers. The ability to work remotely or hybrid emerged as a great recruiting and retention tool for employers during the pandemic and continues today.

No matter where you are in your business, keep these things top of mind:

1. Know when you will break even

Every small business owner keeps at the front of their mind the question:

As recently as a year ago, the leverage was all in the hands of the employee, but we’re seeing that shift. Today, we see few employers who are still 100 percent remote. At the same time, while continuing to offer flexible and hybrid work schedules — which employees like

This might seem counterintuitive, since profits are how you survive. However, if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix. Keep things organized and well managed so you can be ready for whatever success comes your way.

3. Secure credit ahead of time

— most employers also require workers to spend designated time in the office. The bulk require three or four days in person each week. Employees value the opportunity to choose, so let the employees select which days they will be in the office. We are seeing real growth in fractional hires. Increasingly, the gig economy — a labor market characterized by short-term contracts or freelance work as opposed to permanent jobs — is infiltrating businesses across the Upper Midwest. This model allows employers to hire workers for specific tasks, projects within C-suite roles or other highly specialized roles. Fractional work is a great way to bring in senior talent in finance, marketing, HR and operations.

As workloads increase at a company, hiring staff is appealing; however, not every company can afford a team of full-time employees. One advantage of hiring a fractional worker is that you get access to highly specialized talent with extensive work experience that you might not need — or can’t afford — daily. Hiring a Jack or Jill of all Trades might not get you the true expertise you need. You don’t have to pay a high monthly salary for someone if your needs don’t require a full-time

Too often, small business owners wait until they need it to secure credit. This can cause a lot of unnecessary stress, or worse. Talk to experienced business owners in your area and industry ahead of time to know how much revenue you’ll need up front. Take a realistic look at the situation and You might have sufficient cash reserves or a rich uncle who is only a call away, but most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected.

executive or your budget won’t accommodate specialized workers. For some businesses, a fractional role enables you to bring in a higher-level person to help you strategically execute and build your business. Studies show that the fractional business model can save payroll 30 to 40 percent versus the cost of hiring a full-time employee. By leveraging fractional work, businesses can scale their workforce up or down as needed, ultimately increasing efficiency, profitability and innovation.

Hiring a fractional employee also allows you to see if they are the right fit — a coveted “try before you buy” approach. No business can afford a bad hire, so this is one way to reduce the odds of bringing in the wrong person.

As fractional work increases in popularity, here are some tips I share with the employers we work with:

• Take time to determine:

What does your business need today? That may change in six or nine months but focus on what your existing business needs are today and bring in the talent that helps you best meet your current objectives.

• Partner with a skilled and reputable talent recruiter to identify the most skilled applicants. A skilled recruiter understands what you need and will do the vetting and advance candidate selection for you, offering you a pool of qualified candidates best suited to your needs, saving you time and money.

• Onboarding and orienta -

tion are critical. You must nail the job description. You want employees — both fractional and full-time — to be set up for success from the beginning. Too often, employers who fail to invest the time on the front end to successfully onboard a new employee may have to go back to the beginning, negatively impacting both productivity and the bottom line.

• Fine-tune your communication skills. Like a consultant, fractional employees may only work on a specific project, making it difficult sometimes to integrate into the rest of the business. Clear communication and expectations from the start will help set up talent for success.

• Once you’ve set your expectations and clearly communicated what you want accomplished — get out of the way! When you hire a fractional worker, look for someone who is independent. You shouldn’t have to hold their hand.

Fractional roles open up more opportunities in the company, both on the personnel side and with cash flow. As employers look to stabilize or grow their business, I’d encourage them to consider fractional hiring for specialized roles. Complement this model of staffing with continued flexibility in the workplace and you should be set up for staffing success.

Contact: Stacey Stratton is CEO of True Talent Group: 612.860.0307; stacey@truetalentgroup.com; www.truetalentgroup.com; in/staceystratton

“Employers who are willing to be open and adaptable are the ones who win — and retain — the best talent.”

Stacey Stratton True Talent Group

Kent Automation recently consolidated from three buildings in Waseca to a single space in Owatonna with help from the state, the University of Minnesota and a reolcation consultant.

When you try sometimes …

Getting what you need from your

relocation, expansion

As the name suggests, Owatonnabased Kamp Automation looks for customers with a process they’d like to automate. It could be a small, inconvenient, tiny part that people can’t assemble. It could be a high-volume product so needed that the customer can’t find enough labor to produce it in the necessary quantities.

“We’ll work anywhere from medical device companies to the seed industry for corn and soybeans,” says Kent Patterson, co-founder, president and CEO. “We just jump all over wherever there is custom automation.”

The company started in his garage. Patterson and his partners built a machine. The company started to grow to the point where now it has 48 employees – and had a bunch of people and stuff in different locations.

“We went from a garage to a shop to a shop and just kept moving to new places and signing leases,” he says. “We got to a point where it’s

like, OK, this is getting big enough and sustainable — we felt that we wanted to look for our own space.’”

Starting a search

Patterson and his business partners did what many — maybe most — companies do when they are looking for new space. They went to a bank. But financing is challenging right now. And he kept hearing more and more about the possibility of moving to other towns outside of Waseca where the company started. Before long, he was getting overwhelmed with running the business and a building search simultaneously.

“It’s like creating a whole new job for yourself,” he says.

Enter Justin Erickson. City officials in Waseca suggested to Patterson that he give Erickson, vice president of site selection and economic development for The Brookshire Cos., a call.

by Andrew Tellijohn photographs by Tom Dunn

COVER STORY

He’s glad he did. Jointly, they started piecing together a plan. They discussed alternatives to financing, talking to multiple cities, potential incentives from the state and who he should call about his project.

It took a long time — though Erickson says it was shorter than it would have been going it alone — but the building was built. The company received new market tax credits from a program designed to attract private capital into low-income communities by allowing investors to receive a tax credit in exchange for equity investments in Community Development Entities as well as funding from the University of Minnesota

“The reason I liked him so much is, not only does he know what he’s good at, but he knows the industry,” he says. “It’s like learning a new language. It takes forever. There are all these rules and different hoops you have to jump through. You really need somebody that understands how that process works.”

Finding a consultant

Erickson has spent the last 20 years acting as something of a relocation consultant. His clients are typically larger now, but he started working with small businesses

and still occasionally does smaller projects.

He says small business owners, who see headlines saying a large city provided significant incentives to a company like Google, can’t fathom that the same types of benefits could be available to them.

But they’re wrong, Erickson adds.

It’s on a different scale, but small business owners who play their hand correctly when they need a larger building or new location can find communities willing to step up and help out significantly. But they need to know they have to ask for them.

“All these incentives, whether it’s a low-interest or forgivable loan from the city on up to the main Department of Employment and Economic Development (DEED) incentives, every incentive and public finance tool is, in some form, a derivative of taxpayer dollars,” he says. “As a result, the edict that is set forth is don’t go and advocate to give these dollars away.”

Along with that, business owners must know who to call to find them.

“Most, it doesn’t even occur to them that this might be applicable,” Erickson says. “And even if it does, they say ‘Well, I don’t know who to ask.’”

As companies do explore these opportunities, Erickson cautions business owners to consider incentives after they’ve considered basic fundamentals like knowing where the company needs to be located and staying within budget.

That said, incentives are available at local, regional, state and national levels of government. And, often, rural and smaller communities will be even more aggressive than larger metro cities because they are looking to add jobs to their communities.

“If your expansion would entail at least $250,000 in new investment, that could be buying a building, it could be an improvement of a building, it could be capital equipment or some combination thereof … I use that as kind of a benchmark,” Erickson says, adding that the projected addition of double-digit-or-more jobs helps too.

A couple pieces of advice: don’t commit upfront to

Kent Patterson, president and co-founder of Kamp Automation, worked with relocation consultant Justin Erickson to find the right location and the best incentives for a new building in Owatonna.

COVER STORY

staying in your city or even your state, he says, adding that otherwise they have no incentive to help you stick around.

“The stock answer is going to be we appreciate your loyalty and consideration and you are no longer eligible,” Erickson says, adding that another key is the “butfor” rule — more specifically, “but for these incentives, this project won’t happen.”

Doing the DEED

While every municipality has its own entry point — it might be going through utility companies in one city or the public works department in another — Erickson suggests looking for people who have economic development in their title.

At the state level, that would be DEED, which has programs for start-up companies but also for established businesses looking to relocate or expand. Every few months, the state releases information on what incentives they’ve provided to which companies. And there always are some small businesses in the mix.

For example, in February of this year, DEED announced that Rion Inc. received $440,000 from the state’s Job Creation Fund (JCF) and $175,000 from Minnestoa Investment Fund (MIF) for leasing about 10,000 square feet of additional space at a new location in Rochester. The regenerative biotherapy company

Whether it’s a tiny, difficult-toassemble part or a high-volume piece the client can’t hire enough people to produce, Kamp Automation helps them automate the process.

scaled its production for its flagship innovation, Platelet Exosome, that heals a variety of hard-to-treat body tissues at a cost of $7.3 million with the expectation of creating 22 jobs in the first three years.

The company, established in 2017 out of the Mayo Clinic Employee Entrepreneurial Program, announced at the time that the move represents a “significant milestone” in Rion’s mission to bolster its manufacturing capabilities to support its Rion Aesthetics spin-off and its globally renowned skin and hair brand product.

The building spans 14,000 square feet and it equips the company with advanced industrial space aiming to ramp up its production of Skin Science, which has gained traction with plastic surgeons, dermatologists and upscale medical spas, according to the company.

“The expansion of our new facility in Rochester translates to job creation for Minnesota and increased capacity to meet the soaring demand for the Skin Science

COVER STORY

“It’s like learning a new language. It takes forever. There’s all these rules and different hoops you have to jump through. You really need somebody that understands how that process works.”

— KENT PATTERSON, PRESIDENT AND CO-FOUNDER, KAMP AUTOMATION

brand,” said Dr. Atta Behfar, co-founder, in a statement. “This facility marks a pivotal stride for Rion as we endeavor to realize Rion Aesthetics’ transformative vision: offering beauty from within while spearheading the industry’s shift toward more science-driven, innovative and transparent aesthetic solutions.”

Other state investemnts in small businesses during the past couple years include:

CONTACT:

JUSTIN ERICKSON is vice president of site selection and economic development for The Brookshire Company: 612.281.4648; justin@brookshireco.com; www.brookshireco.com; in/justin-erickson-a632303

KENT PATTERSON is president and CEO of Kamp Automation: 612.460.0983; sales@kampautomation. com; www.kampautomation.com; in/kent-patterson-a851a49b

CATALINA VALENCIA is director of business development at the Minnesota Department of Employment and Economic Development (DEED): 651.259.7114; DEED.customerservice@state.mn.us; www.mn.gov/deed; in/catvalencia

• In August of last year, DEED announced that North American Foods in Lakeville, doing business as Sweet Harvest Foods , received $155,000 from the JCF program to assist in leasing a new 360,000 square foot facility with office, product storage and processing space, according to DEED. The $6.5 million project was expected to create 20 jobs in the first two years.

• Rosemount-based Spectro Alloys Corp. got $750,000 from the JCF program and $400,000 from the MIF program to turn materials at the end of their lifecycle into EVs and solar panels by recycling aluminum. The project expanded an existing facility by 90,000 square feet and will include new equipment to recycle used beverage containers, extrusions and a variety of lifecycle scrap types. The nearly $77 million project creates 70 jobs in the first three years.

Catalina Valencia, director of business development at DEED, says the agency will deal with businesses directly or with their consultants. Potential partners must have capital and readiness to execute their project. They might need to fill a specific gap or technical support in identifying a specific location that has the utilities, the workforce and other infrastructure they require.

“That’s where my team comes in,” she says, adding that about 80 percent of her department’s time is spent on companies already existing in Minnesota while the remainder is focused on companies considering relocating here.

“We support the companies at any stage of that location and expansion decision process,” Valencia says. “They already have a better sense of a lot of the components that

we try to sell companies that don’t know this.”

Real estate is a frequent component of such requests. Workforce recruitment, training and development also come up. The agency might be able to aid with permitting process.

Usually, the requests are seeking financial and incentive help. DEED has a set of tools available.

“They may come to us just for the incentives,” she says. “Or they may come to us because they need incentives and workforce support.”

The companies provide all the criteria they are seeking. DEED takes that information and works with its partners, the different stakeholders, to identify where in the state would be a good fit. And, to the initial point, they can help whether the companies are large or small.

“They already have a project,” Valencia says. “We are here to support. The only caveat is they need to be in the capacity to execute that expansion.”

How’s Kamp doing?

As for Kamp, itself a recipient of such funds, its new location in Owatonna has worked out as hoped. The company picked its new headquarters due to location

— it’s bringing in potential employees from the south metro area but also the Mankato and Rochester areas. The central location makes it viable for people in either direction.

Kamp broke ground in 2023, gained occupancy in December and moved in on January 1. Instead of having a total of 28,000 square feet spread across three buildings — one space for operating, another for storage and a third for spillover — it now has one building that’s almost 50,000 square feet.

“It’s a big change,” Patterson says. “We have room to move and do things efficiently, plus grow.”

And, another added bonus, the building can be used as a recruiting tool.

“We recruit and mostly hire engineers,” he says. “To get young engineers, they don’t want to come work in the back of somebody’s garage. They can go to work for Google or Tesla or whoever. You really have to have a nice place to work. And so having a state-of-the-art facility has helped us.”

catching up

by Andrew Tellijohn

Bending brewing boundaries

Founder’s medical issue sped Bauhaus diversification

Since Matt Schwandt visited with Upsize in 2017 for a story on standing out in a crowded market, the local craft brewing industry has only gotten more so.

Bauhaus Brew Labs, he said at the time, stood out partially because it focused its product line on longer-todevelop lager beers rather than ales that had been popular with the craft crowd, and also because of a focus on flashy branding and social media messaging.

Social and branding remain important. The product line still includes lagers, but it has evolved significantly, both due to the professional need to keep innovating and the personal situation of its founder.

Bauhaus, he says, was one of the first local breweries to delve into nonalcoholic beer — the fastest-growing segment in beer right now — in part

Matt Schwandt’s legal background helped in founding Bauhaus Brew Labs in 2017. He’s now pondering a return to law.

Held during the Art-A-Whirl, The Liquid Zoo at Bauhaus celebrates musicians, artists and food vendors in Minneapolis

because a medical episode a few years ago forced Schwandt, co-founder and president, to quit drinking alcohol.

“That was a pretty crazy circumstance for someone whose passion for craft beer led them to open a craft brewery,” he says. “At first it was really challenging, but over time I grew to love not drinking. It’s just who I am today.”

Bauhaus Brew Labs

Description: Brewer of Germaninspired craft beer

Headquarters: Northeast Minneapolis

Founded: 2014

Co-founder & president: Matt Schwandt

Employees: 24

Website: www.bauhausbrewlabs.com

Bauhaus did so in 2018 in tandem with Ben Jordan, CEO of ABV Technology, the St. Paul-based company that designed a machine that removes alcohol from beer “while retaining a lot of the great flavor profile you want in a beer so that it actually tastes like the real thing,” Schwandt says. “He approached us in the fall of 2019 and said, ‘Hey, would you be interested in trying to brew a craft scale nonalcoholic beer?’ I thought, ‘Hmm. That’s really interesting.’”

After a few test kegs, Schwandt says, “It turned out way better than I ever expected.”

So, Bauhaus launched Nah to heavy acclaim. The company has added two more non-alcoholic products and intends to introduce a fourth later this year with the idea of marketing a four-variety mixpack.

He might have gotten there anyway but acknowledges his own health situation probably got Bauhaus there quicker, ahead of most of the industry.

Schwandt readily acknowledges one lesson he’s learned — and one of importance to any small business owner in any industry — is to be more on top of cash flow and general finances. The introduction of non-alcoholic beers to Bauhaus’s product mix have significantly improved the company’s financial outlook, growing to about 10 percent of sales — definitely useful in an industry where even some large powerhouse breweries have been

closing down in recent months.

And, he adds, distributors in other markets that pay little attention to out-of-state craft beers have called to talk with Bauhaus about adding their product line due to the availability of non-alcoholic products. The company launched in Colorado in January with its full slate of products, an opportunity that likely otherwise wouldn’t have been available.

“I am always interested in innovation,” he says. “I think my personal situation made it more of an appealing thing for me to just try. And I’m really glad we did.”

High on THC

Schwandt, who first was a homebrewer, then was a lawyer before starting Bauhaus, testified at several legislative committee hearings in St. Paul as lawmakers worked through legalizing cannabis. His legal background came in handy.

And Bauhaus dove headfirst into that newly growing industry, as well, introducing several varieties of a THC-infused beverage called Tetra. Those non-alcoholic

Bauhaus, which started with a focus on lagers as others brewed largely ales, has grown into non-alcoholic beer and THC beverages in recent years.

beverages have gotten significant interest from around the country.

“I think we’re one of the only producers doing a n0n-alcoholic beer with THC right now,” he says. “There have been a handful of others that have done really small-scale versions of something like that, but we’ve done it at a full-scale production batch.”

Schwandt says that’s likely another area of continued growth for Bauhaus. He pays attention to a lot of the insights published by the Brewers Association Chief Economist Bart Watson, who regularly provides trend information on areas of opportunity for the industry.

Contact: Matt Schwandt is co-founder and president at Bauhaus Brew Labs: 612.387.1407; matt@bauhausbrewlabs.com; www.bauhausbrewlabs.com; in/matt-schwandt-360aba243

He’s also regularly monitoring consumer product and ingredient publications.

“I’m kind of a market research geek,” he says. “I like seeing what’s going on out there and what could be the next big thing.”

Stepping aside?

Schwandt used to do all the recipe formulations for Bauhaus. He’s still involved but has a seven-member leadership team among the brewery’s 24 employees who meet weekly to discuss opportunities for innovation.

“We’ll have brainstorm sessions like, how can we do this most effectively,” he says. “And how can we make this fit under the Bauhaus umbrella? Our team

daughter, both of whom are competitive swimmers, Schwandt’s free time is limited. Which has him considering returning to the more stable and predictable practice of law.

With his personal and professional interest in THC and non-alcoholic beverages, cannabis law may be up his alley. What impact that would have on his day-to-day involvement with Bauhaus is up in the air.

“I’m comfortable now knowing that our staff is adept at the day-to-day, where I could probably take a step back and take more of an advisory role,” he says. “I’m just doing my best to try to take this industry as it comes, trying to see around corners where I can and, when the uncertainty kicks in, I just

“I’m kind of a market research geek,” he says. “I like seeing what’s going on out there and what could be the next big thing.”

Matt Schwandt co-founder & president, Bauhaus Brew Labs

UPSIZE RESOURCE DIRECTORY

BANK

Crown Bank

6600 France Avenue South, Suite 125

Edina, Minnesota 55435

Ph: (952) 285-5800

www.crown-bank.com • Jeff Wessels, President & COO

At Crown Bank, we want to be partners in your possibilities. Because possibilities are what the future is made of. From something as personal as growing your savings, to something as big as growing your business, our bankers and staff have the expertise and energy to partner with you to make that happen.

U.S. Bank

Tesh Patel

Email: pritesh.patel1@usbank.com

Phone: 720-667-7578

At U.S. Bank, we help you earn more without asking you to do more. That means more money, more purchasing power and more expertise, so you can focus on running your business. Let us find the best business credit card for you and turn your hard work into easy money.

BUSINESS BROKER

Sunbelt Business Advisors

Peggy DeMuse, pdemuse@sunbeltmidwest.com

651-288-1627

Lisa Meyer, lmeyer@sunbeltmidwest.com

612-361-4918

www.sunbeltmidwest.com

Thinking about buying or selling a business? Sunbelt is the world’s largest seller of private companies. We work with business owners to help them understand the current value of their business and how to maximize their net proceeds at the time of sale. Sunbelt will provide business owners with a completely confidential, no-obligation value range.

CFO SERVICES

Integrated Consulting

Craig Siiro

612-669-7703 (c)

craig.siiro@integrated-consulting.net www.integrated-consulting.net

Integrated Consulting delivers Chief Financial Officers to small businesses on a fractional basis. From projections to cash flow tools to assistance with all things financial. We provide 30 years of expertise on a small business budget.

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• Best Practices to Grow Enterprise Value

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Subscribe on Apple, Spotify, Google, iHeart, Stitcher Sponsorship Opportunities!

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

COMMERCIAL PHOTOGRAPHER

Tom Dunn Photography

651-368-2047 www.tomdunnphoto.com

Tom Dunn tom@tomdunnphoto.com

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.

DIGITAL MARKETING

Aktion Interactive

Phone: 612-448-9670

Email: tony@aktioninteractive.com

Website: https://aktioninteractive.com

Aktion Interactive is a full-service digital marketing agency that partners with you to provide the assistance you need with every aspect of your digital strategy, from building a new website to driving more traffic & leads from your existing site to developing a custom app.

HR Solutions for Small Business

Get and keep the people you need to grow the business you want

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

From people strategies to operations and tactics, we work along side you as an extension of your team Take the HR hat off your head and let us help you win with better results through people

w: optimaadvisoryllc.com p: 612 547 5759

e: sschad@optimaadvisoryllc com

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EXIT STRATEGIES

Exit Planning Institute

Twin Cities Metro Area chapter

763-208-9119

exit-planning-institute.org

Jessica Hawthorne, Administrator admin@e-officeconnection.com

LAW FIRM

Bassford Remele

100 South 5th Street, Suite 1500 Minneapolis, MN 55402 www.bassford.com

612.333.3000

MERGERS & ACQUISITIONS

Lingate Financial Group

7575 Golden Valley Road, Suite 100 Minneapolis, MN 55427 763-546-8201 www.Lingate.com

Greg Loeschke — Managing Principal

Through the Certified Exit Planning Advisor (CEPA) credential, the Exit Planning Institute provides professional advisors with the content, tools, and training needed to gain more access to business owners, strengthen relationships, and become the most valued advisor.

EXIT STRATEGIES

Exit Planning Strategies, LLC

p. 651 426 0848 — www.exitplanstrategies.com

Dyanne Ross-Hanson: President e. drh@exitplanstrategies.com

Bassford Remele is in the business of meeting legal challenges. Our trial lawyers solve disputes for corporate clients in Minnesota and across the nation and we have a depth of experience in many industry areas. When businesses seek solutions, from the conference room to the courtroom, they seek Bassford Remele.

LEADERSHIP DEVELOPMENT

Prouty Project

6385 Old Shady Oak Road, Suite 260 Eden Prairie, MN 55344

952.942.2922 | www.proutyproject.com

Kari Baltzer | stretch@proutyproject.com

Exit Planning Strategies, LLC, a firm dedicated to offering business owners objective, fee based, financial consulting in the development of intentional ownership transition plans. We direct an inter-disciplinary process to explore planning options, map realistic exit strategies and to develop an Action Checklist, to accomplish an owner’s unique objectives.

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

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 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 marketbased valuations, business sales, mergers, acquisitions, recapitalizations, and internal transitions among family members, partners and management.

MERGERS & ACQUISITIONS

True North M&A

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

We help business owners achieve their exit goals. True North Mergers and Acquisitions serves companies with $5 million to $150 million in revenue and their strategic advisors. We specialize in business owner exits, business valuations, and acquisition services in the lower middle market. If you are considering exiting your company, contact our team today.

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NETWORKING CLUB

The Capital Club

www.capitalclubmn.com

The Capital Club (CAPS) is a sports-centered, business-networking group designed for established and emerging leaders in the Twin Cities. Members gather monthly over breakfast to hear from notable sports figures and accomplished individuals who share their journeys, stories and strategies for success. For more information, contact Patrick Klinger at patrick@ agilemarketing.com.

PEER GROUP

Coalition9

PO Box 834

Lester Prairie, MN 55354-7832 www.coalition9.com

Aaron Eggert | aaron@coalition9.com

Leadership is lonely. We build your tribe. Coalition9 memberships provide peer advisory groups with an emphasis on personal and professional growth. As a member, you will experience interactive learning while connecting to the resources and people that will help you be your best. Our vision: Changing business nine leaders at a time™

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

VENTURE CAPITAL

Brimacomb + Associates

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

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.

TRANSITION PLANNING

KeyeStrategies

Minneapolis, MN

Keyestrategies.com 763-350-5563

Julie Keyes, Founder/CEPA

“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.”

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.

WEALTH MANAGEMENT

JNBA Financial Advisors

8500 Normandale Lake Blvd., Suite 450 Minneapolis, MN 55437

952.844.0995 www.jnba.com

Cärin Viertel, Director of Client Services

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.

Cell: 612-801-2299

Direct number: 612-361-4918 Email: lmeyer@sunbeltmidwest.com