CONNECT BUSINESS MAGAZINE P.O. BOX 176 NICOLLET MN 56074-0176 CHANGE SERVICE REQUESTED PRSRT STD US Postage PAID Permit No. 609 MANKATO, MN
You’re Retired. Your Money Isn’t. To learn why consolidating your retirement accounts to Edward Jones makes sense, call our offices today.
Choose an Edward Jones Financial Advisor Travis M Larson
Mike Leary
Financial Advisor
Financial Advisor
1457 Lookout Drive North Mankato, MN 56003 507-387-2008
1111 E College Drive Ste 1 Marshall, MN 56258 507-532-7306
Financial Advisor
Jennifer Seys
Kenneth J Klooster AAMS®
Drew Schellpeper
551 Belle Avenue Suite A Mankato, MN 56001 507-625-7280
Financial Advisor 1660 Commerce Drive Suite 2 North Mankato, MN 56003 507-625-8452
1001 East Blue Earth Ave Suite B Fairmont, MN 56031 507-238-4244
Meghan Anderson
Mike Benz
Jill R Berdan
Financial Advisor
Financial Advisor
Financial Advisor
308 South Minnesota St Peter, MN 56082 507-931-9110
26 N Broadway Street New Ulm, MN 56073 507-354-0017
108 North State New Ulm, MN 56073 507-354-4243
Jason R Engstrom
Chris Hoffman CFP® CLU®
Chris Jensen CFP® AAMS®
Financial Advisor
Financial Advisor
340 Belgrade Ave North North Mankato, MN 56003 507-388-7786
700 N Minnesota St Suite C New Ulm, MN 56073 507-354-1234
Financial Advisor
Financial Advisor 1604 S Broadway St New Ulm, MN 56073 507-359-2163
edwardjones.com Member SIPC
Sander Ludeman AAMS® 1400 S Riverfront Dr Suite 100 Mankato, MN 56001 507-385-0305
Financial Advisor
CONTENTS
July | August 2020
COVER INTERVIEW
COMPANY PROFILE
COMPANY PROFILE
34
8
Christine Nessler and Chris Mihm
G & S Manufacturing, LLC
Freedom Home Care
Roll With the Changes
DEPARTMENTS
HOT STARTZ!
6 46
True Connections Canine Academy
KASOTA
Editor’s Introduction Ask A Professional
Mark Jaeger
24
FEATURES
41
MANKATO
Plumb-Rite Plumbing
AG FOCUS Benefits of Agriculture Marketing Groups
19
HerdStar
MANKATO
32 44
Agriculture Presses On in Uncertain Times 1Million Cups: Navigating the Legal Lay of the Land When Starting a Business
Knutson Construction
Continuing Business in the New World After COVID-19
Connecting Southern Minnesota Business People Since 1994
www.ConnectBiz.com
STAFF & CONTRIBUTORS
CIRCULATION
ADVERTISING
Publisher: Concept & Design Incorporated
12,000 for July/August 2020
Call: (507) 232-3463
Published bimonthly
E-mail: sales@connectbiz.com
Editor: Lisa Cownie Art/Photography: Jonathan Smith, conceptanddesign.com Contributing Writers: Matthew Berger, David Bau, AJ Dahm, Tim Robinson Production & Circulation: Becky Wagner Printing: Corporate Graphics, N. Mankato Mailing: Impact Mailing 4
Connect Business Magazine
July | August 2020
CORRESPONDENCE Mailing Address: Connect Business Magazine P.O. Box 176 Nicollet, MN 56074 Send editorial correspondence to: editor@connectbiz.com
Information: connectbiz.com/advertising ABOUT CONNECT Locally owned Connect Business Magazine has ‘connected’ southern Minnesota businesses since 1994 through features, interviews, news and advertising.
Web: connectbiz.com
Connect Business Magazine is a publication of Concept & Design Incorporated, a graphic design firm offering print design, brand design, illustration and photography. Learn more at conceptanddesign.com.
Phone: (507) 232-3463
Copyright 2020. Printed in U.S.A.
Proven Results
- Tax Planning - Cash Flow Planning - Strategic Planning
Michael R. Gardner, D.D.S. (Dr. Gardner) has worked with the CPA firm, Conway, Deuth & Schmiesing, PLLP (CDS), for the past 40 years. His dental practice team is highly trained, committed to excellence, and fiercely dedicated to the patients they serve. Dr. Gardner states, “I rely on CDS for all sorts of advice, they have steered me right at every turn. They are my counselor, coach, friend, and last, but not least, my accountants.”
In 1980, CDS was there to help Dr. Gardner with his initial business set up and financing. Throughout the years, CDS provided numerous accounting and advisory services to Dr. Gardner including financial forecasts, cash flow projections, and financing models as his business continued to grow. Tax services were provided for both his practice and personally to Dr. Gardner and his wife, Sandy. The business advisory services provided by CDS have helped Dr. Gardner thrive throughout his business lifecycle. When Dr. Gardner broke ground on his new dental practice building in 1996, Rick Conway, a founding Partner at CDS, was there with a shovel to show his support.
The quality accounting, business advisory services, employee benefits, HR, payroll, tax, and wealth management support that CDS provides, allows Dr. Gardner to do what he loves best– focus on his patients and team members. Dr. Gardner states, “When I first started with CDS,
they were a two-person firm. Over the years they have grown to one of Minnesota’s leading accounting firms, with 75 team members across Minnesota. As I entrusted more and more of my business procedures to CDS, they have more than exceeded my expectations. It has been a great partnership and I feel very fortunate to have connected with them. It is a remarkable firm. I really attribute my success to the significant role CDS and the people at CDS have played.”
capital and debt structure optimization, review of tax law changes and the impact on businesses, and benefits planning.
A legacy of service and integrity.
Our network of highly trained professionals offers a team approach to help businesses recover and thrive despite the financial impact of the pandemic. From CDS, clients receive big-firm resources wrapped in localfirm responsiveness, delivered by experts familiar with you, and vested in your business. Our core values – integrity, quality, collaboration, innovation, and kindness – guide our actions every day.
The coronavirus pandemic has impacted us all, but especially businesses like Dr. Gardner’s. When the Coronavirus Aid, Relief and Dr. Gardner’s Advisory Team Economic Security Act (CARES Act) was signed into law, CDS proactively reached out to clients offering business advisory services. CDS experts, Rick Conway and Bill Fenske, collaborated with Dr. Gardner to analyze the opportunities available and Rick Conway Bill Fenske Michelle Hanson Tax/Consulting Business Advisory Payroll found the solutions that worked best for his Services business. Dr. Gardner said, “During the past few months of the COVID-19 pandemic, the entire team at CDS helped me immensely.”
Business Advisory Services.
Businesses that are proactively contemplating their post-COVID-19 futures and are making plans accordingly will be better positioned to thrive in any crisis and beyond. Many companies are making those plans now. CDS provides ALL many services to help SERVICES ARE small to large-sized businesses: financial planning, budgeting, GUARANTEED forecasting, cash flow planning and projections,
100%
Jen Burnett Karla Hemmesch Chance Hooper Employee Benefits
www.cdscpa.com/business-advisory/
Wealth Management
We understand our clients’ needs.
At CDS, we go beyond compliance. We collaborate to develop strategy, look for hidden opportunities, and anticipate challenges. We’re proud to provide our clients with solutions to make their organizations more efficient and profitable.
Exceeding Expectations — Proven Results Call us at (320) 235-3311 to learn more.
Bookkeeping
INTRODUCTION
Dynamic Duos Take on COVID Again, I find myself sitting down to write this note to all of you unsure of what our region will look like by the time this issue comes out. That’s one of the quirky things about magazine deadlines, they are so far ahead of the actual publishing date ... well, my guess is that by the time this reaches your desk, we will all still be navigating our way through COVID-19. Those featured in the pages of this issue have found their way in the midst of the pandemic. The dynamic duo on our cover manages a team of front-line workers, caregivers to the most vulnerable to the coronavirus, Christine Nessler and Chris Mihm of Freedom Home Care. And we introduce you to another dynamic duo, Pat and Laura Stadick of G & S Manufacturing in Courtland. This issue does have an agriculture focus to it, so we feature many stories from those in the trenches, helping farmers during this time. As part of that focus, we profile HerdStar, Southern Minnesota’s global ag technology solution team.
Lisa Cownie
Happy reading and, hopefully, learning,
EDITOR
Lisa Cownie
Ingrained in Agriculture ISGInc.com | Architecture + Engineering + Environmental + Planning
6
July | August 2020
She Knew She Had a Choice She Chose OrthoEdge for Joint Replacement Surgery.
She got quality care close to home. The OrthoEdge Joint Replacement Program features two of the most experienced orthopaedic care providers in the area, The Orthopaedic & Fracture Clinic and River’s Edge Hospital. • • •
3,000 successful hip, knee and other orthopaedic surgeries 245 years of combined orthopaedic surgery experience 1 of 13 hospitals in the nation accredited as a hip and knee replacement center of excellence
Getting the care you deserve and trust, close to home, makes OrthoEdge the right choice for joint replacement surgery. Learn more at OrthoEdgeMN.com
Recognized for Being the Best! River’s Edge Hospital has been recognized as a DNV GL Healthcare certified Orthopaedic Center of Excellence for: • Hip & Knee Replacement • Shoulder Surgery • Spine Surgery Plus, River’s Edge Hospital is top rated for patient experience!
By Lisa Cownie Photo by Jonathan Smith
It is estimated that around 10,000 people turn 65 each day, a trend that is expected to continue until 2029. At this time, there are more than 50 million seniors, those over the age of 65. According to the Home Care Association of America, a third of those older than 65 live alone. Other stats show that nine out of 10 Americans 65 and older want to stay at home for as long as possible. There is definitely a market for home health care. Truth is, long-term care is an industry facing some challenges. Traditional government programs are having a hard time keeping up with the demand, and our current system of institutional care cannot meet the needs of the tens of millions of seniors who need some kind of assistance as they age. Therefore, private pay home care fills a critical gap for the elderly between hospital stays, nursing home care, and care provided by family members and loved ones. Continues
8
July | August 2020
CONNECT Business Magazine
9
Christine Nessler and Chris Mihm
Aging in a home setting has become even more of a focus since the onslaught of COVID-19. With the virus ravaging through long-term care facilities, some are wondering about the role of such congregate care settings moving forward. A duo from Mankato had the vision of helping all age in place long before coronovirus and quarantine were part of our everyday vocabulary. Freedom Home Care offers customized and affordable home care and case management services that provide independence, companionship and freedom to age in place with dignity and grace—something its founders, Christine Nessler and Chris Mihm, believe deeply that everyone deserves. They and their team are passionate about providing Southern Minnesota with services to make a difference in the lives of those they serve and their families. Nessler and Mihm have built a team of experienced, compassionate and dependable caregivers who help make their
clients’ lives easier and help them retain their independence, while providing their families with the peace of mind that their loved ones are safe. “At Freedom Home Care, we strive to provide the best possible care for aging adults and their families,” explains Nessler. “This means so much to us because we know the value of taking care of those in need and giving back to the community. “We are a locally owned business in a small enough community that we feel like we are serving our friends, family and neighbors. We believe that is exactly how all of our clients should be treated—like we are caring for our own loved ones. We are passionate about providing a service in Southern Minnesota that really makes a difference in the lives of our clients and their families.” The mission of Freedom Home Care is to help aging adults stay independent in their homes for as long as possible with the peace of mind that quality one-on-one care will
CONFUSION
SOLUTION
be provided by a team of compassionate, well-trained and reliable in-home caregivers, nurses, social workers and office staff. You have care attendants with a population vulnerable to COVID-19. Please talk a little about how the pandemic has affected your business and what you have had to do to adapt? Mihm: The changes that have transpired with the COVID-19 pandemic have been widespread and have impacted every aspect of our business. A few of our clients have put services on hold, but we have also taken on a number of new clients who needed assistance. With our care model requiring caregivers to go into people’s homes, it introduces a level of risk that we are trying to mitigate as best as we can with guidance from the CDC and Minnesota Department of Health. Early on, we instituted a “fit for duty” test prior to every shift that a caregiver goes to. The caregiver is required
PUT AN ADVOCATE ON YOUR SIDE OF THE DESK Are you struggling with the financial state of your operation? Or maybe there’s information you’re missing that could help you with succession planning and retirement. Let our Agribusiness Finance Specialist help you take charge of your financial data and make better decisions for today and tomorrow.
507.387.6031 | eidebailly.com/ag
10
July | August 2020
Freedom Home Care | Mankato
to take their temperature and self-screen for any symptoms and report that back to the office through automated means. In addition, we mandated the use of face masks prior to the official pronouncement from the CDC. Our caregivers have also gone through additional training related to personal hygiene and additional best practices on how to reduce the spread of the disease. Our caregivers are also very aware of monitoring our clients for any early symptoms. In addition to these, we’ve had to become very familiar with web conferencing and being able to recruit and hire without direct contact. I truly believe that many of these items will strengthen the overall process of caring for our seniors in their homes. We are also looking at this as an opportunity to grow our business with the market expansion and addition of a fulltime caregiver experience coordinator. We feel the best is yet to come for Freedom Home Care.
That’s what you are doing now, let’s backtrack a bit. What made you decide to open Freedom Home Care? Mihm: I have always had a desire to make a difference and decided to start investigating different business opportunities. To be honest, I didn’t really know much about the home care industry, but when I started looking at it more closely I couldn’t help but think of my grandpa who passed away from Alzheimer’s while I was in high school. My grandpa would have been a perfect candidate for home care, but there weren’t really any options available in the late 1980s. I was instantly drawn to the idea of helping as many seniors, like my grandpa, age in place at home. Nessler: When I was in high school and on breaks during college, I worked as a certified nursing aide at the Timely Mission Nursing Home in Buffalo Center, Iowa. That remains one of my favorite jobs. I enjoyed the hands-on care of our residents and getting to know each of them. For me,
the challenge was not being able to spend as much time with each person as I would have liked and knowing that many of them didn’t want to be there, but rather at home. When my partner, Chris, and my husband, Andy, came up with the idea to start a home care business in Mankato, I knew that it was an opportunity to take that experience and help people like those residents who wanted to remain in their homes. It also gave me the chance to provide them with one-on-one care with our in-home caregivers. Now I’m able to see some really special relationships form between our clients and caregivers because of the extra time and attention each client receives. When did you start Freedom Care? Nessler: We began our startup business in April of 2014. We created Freedom Home Care from the ground up, in order to fill a need we saw in our community. We both felt passionate about helping others in need.
SIESTA H
I
L
L
S
“A New Style of Living”
Coming Soon to Mankato! Dirt is starting to Move!
siestahillsliving.com CONNECT Business Magazine
11
Christine Nessler and Chris Mihm
Who does Freedom Home Care serve? Nessler: We offer customized and affordable home care and case management services to the aging adults of Southern Minnesota. Having customized services, we are able to help a variety of people, including anyone who wants to age in place with dignity and grace, someone needing a little extra care after a hospital or rehab stay or someone at end of life or in hospice. Mihm: We also serve those who need extended care after their Medicare benefit has run out for home health services, people living in an assisted living or a memory care community who need extra attention or care, or even just someone who doesn’t have family close by and could use help getting to appointments. Nessler: Another point of focus for us is people living with dementia, including family caregivers that could use some help.
Understanding Home Health Care Versus Home Care Home health care is clinical medical care provided by skilled medical professionals and is often prescribed as a part of a care plan following a hospitalization. Services include therapy, skilled nursing and wound care. Home health care agencies are also often Medicare certified agencies. Home care, like services provided by Freedom Home Care, provides nonclinical services, such as activities of daily living, personal cares, housekeeping, meal preparation, medication reminders and companionship. Many families find that utilizing home health and home care in tandem can be very beneficial for an aging adult who, for example, is recovering after a hospitalization. The home health staff address clinical and rehabilitative needs, while the home care aide can help with personal caregiving and household chores that the aging adult requires assistance with during his or her recovery. Freedom Home Care has case managers and nurses who can help determine the care that is appropriate for each client’s needs. Coordinating resources and providing peace of mind is what they do.
12
July | August 2020
Freedom Home Care | Mankato
How many people do you serve? Nessler: Currently we serve 64 clients, which include traditional home care services, case management, and emergency contact. What sets you apart from other services like this? Nessler: Our case management services are very unique. Many people have no family members nearby to serve as an advocate for them, to care for them or to be there for them in an emergency. Or their family works full time and doesn’t have the flexibility to
Getting to know:
Chris Mihm I grew up in Janesville and attended Mankato State University, graduating with a degree in accounting. I moved to the Twin Cities, where I started my career as a CPA in public accounting, serving in that role for six years. My wife, Kristine, and I always had a desire to make Mankato our permanent home, so we relocated back to Mankato in 1999. I worked at Wells Fargo Home Mortgage until starting Freedom Home Care in 2014. My wife, Kristine, and I just celebrated 25 years of marriage together and have three wonderful kids. Kelsey is currently studying for her master’s degree at the University of Minnesota in healthcare administration. Our son Andrew just finished his freshman year at Minnesota State University, studying in business, and our son Carter will be a sophomore next year at Mankato West. We enjoy spending time together at the lake and have spent countless hours at sporting events watching swim meets and football, hockey and baseball games. A lot of my hobbies and activities revolve around spending time with family and friends. I enjoy spending time at the lake boating, fishing, sharing stories around the campfire, and working around the cabin. I am very passionate about cooking and sharing some of those skills with the kids. We also enjoy traveling and exploring new things. One of my all-time favorite activities is snorkeling. Someday I would like to become a certified scuba diver. I have enjoyed coaching youth sports over the years and being involved with our church and, the American Diabetes Association and Alzheimer’s Association.
CONNECT Business Magazine
13
Christine Nessler and Chris Mihm
Getting to know:
Christine Nessler I’ve been a part of the Mankato community for more than 20 years since moving to Mankato from Iowa to attend Minnesota State University, Mankato. I graduated from MSU with a degree in mass communications with an emphasis in public relations. My career path in Mankato has provided public relations and marketing experience in the areas of government, for-profit and nonprofit. My husband, Andy, and I are busy raising three active kids. Max is 13, Liam is 11 and Margo is 7. We keep very busy with the kids’ activities, including music lessons, dance classes, drama classes, confirmation, football, baseball, basketball, golf and more. We love to spend time together with our extended family, most of which live within an hour or so of our home. We also enjoy taking advantage of a few of the 10,000 lakes in Minnesota. I really love to be active and I enjoy yoga, running, cycling and spending as much time with friends and family as possible. I also really enjoy baking. Cookies are my specialty. In the community I am and/or have been active in the following ways: • Christ the King Church Lutheran Church Sunday school teacher, confirmation guide and server at the Salvation Army • Hoover PTA, helping with events like the Risser Run and the spring carnival • Southwest Eldercare Development Partnership Stakeholder Committee for Minnesota Area Agency on Aging • South Central College Nursing Advisory Board • Mental Well-Being and Resilience Learning Community • Mayo Clinic Health System – Mankato Community Health Engagement Committee • Project 4 Teens board member • Alzheimer’s Association support group leader and Walk to End Alzheimer’s committee member • VINE Faith in Action volunteer
14
July | August 2020
Freedom Home Care | Mankato
take off work for their care or appointments. Freedom Home Care recognizes the importance of advocating for aging adults and has case management as a service to those in need. It’s like the icing on the cake for our customizable services. We are able to provide peace of mind to families by offering extra services, including 24-hour emergency contact services, care coordination, discharge planning, assessments and consultations, advocacy and education, and identifying and coordinating resources and services. Mihm: We also like to think that having a local ownership presence in our community is another distinguishing factor of Freedom Home Care. Our involvement in the community also extends down to the daily operations. We try to really stay on top of the communication with both our clients and caregivers. What geographic area do you serve? Nessler: As a service of Southern Minnesota, we cover a 30-plus mile radius in and around the Mankato area. Over the years, that has included hundreds of clients around the region spanning from New Ulm to New Richland and Le Sueur to Delevan, Minnesota. We are extremely excited to be expanding our business for the first time into the Owatonna and Faribault market, which will roll out this summer.
lly a n o i fess by o r P lled a t s in
How has the business model changed over the years? Nessler: As the needs of the community have grown, we have worked hard to fill them. We grew from a basic home care license with
Mn Lic BC 006219
507.625.6412
I
SchmidtMankato.com
Why They Do It Home care is a unique opportunity to make that difference by providing one-on-one care for individuals in their home, allowing them to retain their independence and have a high-quality of life. We also offer case management services with licensed social workers and registered nurses. Case management is a perfect solution for anyone needing a health care advocate, assistance with medical appointments, an emergency contact and much more. For our home care and case management clients we strive to serve each of our clients with the following values in mind: • Professionalism • Consistency • Integrity • Compassion • Quality-trained staff • Confidence
CONNECT Business Magazine
15
Christine Nessler and Chris Mihm
the Minnesota Department of Health to a comprehensive license. Our basic home care services include companionship, personal safety and health monitoring, meal preparation, help in and around the house, assistance with bathing, dressing, toileting, personal hygiene and mobility, and regular monitoring visits from our nursing team. With our comprehensive license we have been able to add health care services, including hands-on assistance with transfers and mobility, medication management, coordination of care, and delegated nursing tasks, which means our nurses are able to train our staff on specific client needs, including things like putting on compression socks. Finally, we added case management to help aging adults navigate through the difficulties of aging. That’s what is so great about being a privately owned business. We can change our business model to fill the needs we are seeing. Freedom Home Care works closely
16
July | August 2020
with our community’s hospital, clinics, skilled-nursing facilities, assisted livings, independent livings, home health cares and hospices in order to provide the best combined services to care for the whole person and all their needs, wishes and goals. What have been your biggest challenges? Nessler: From a community outreach perspective, I think it has been challenging making people aware of home care as an option for aging adults on the health care continuum. Our home care and case management services provide valuable tools for the care team of our clients. Whether that is working with the therapist from rehab to ensure clients are doing their exercises, helping someone make a safe transition home from the hospital, ensuring medications are taken properly, or providing valuable health information to a doctor or director of nursing at a facility. There are also so many huge benefits of home care, including preventing falls and other
common injuries, keeping aging adults healthy at home, providing companionship and personalized care, and helping aging adults remain engaged and connected. Mihm: I would say that caregiver retention has been one of the biggest challenges we’ve faced as an organization. Clients and family members want to know that there is consistency with the caregivers that will be providing their care and we place a high priority within the company to meet that need. With the unemployment rate being historically low, pre-COVID-19, we’ve had to be innovative in trying new approaches to improve the retention, such as our Caregiver Mentor program, Caring Hearts Club and various incentives. The caregiver turnover rate nationally is approximately 85% per year. Even though we have consistently performed better than this mark, it is still a major challenge that affects all organizations in long-term care settings. We are extremely excited to see the positive impact that the newly created position of
Freedom Home Care | Mankato
caregiver experience coordinator (CEC) will have on caregiver retention. What has been your biggest surprise? Nessler: It is amazing to see how valuable our services are to family members of our clients. We have really seen just how important it is to support family caregivers. Caring for a loved one is hard work. Oftentimes you see the caregiver’s own health being affected as a result of the care they are providing. Spouses that are getting burnt out from caring for a loved one on their own. Children who are missing work (and losing wages) to care for parents or take them to appointments. Children who live out of town and worry about their parents’ well-being. Providing that peace of mind that their loved one is well cared for and safe has been very rewarding. Both the home care and case management services have really allowed us to give much needed respite to family. Mihm: As a new business six years ago,
we needed to prove we were committed to the business and making a difference in our community. As expected, it took a little while to earn that trust with potential clients and health care partners, but my biggest surprise has been how supportive everyone has been and continues to be as we grow our business. This is one of many reasons why I feel blessed to be part of this community. How many employees? And what is the breakdown? Mihm: We have 70 employees. In the past six years, Freedom Home Care has grown from two employees, actually the two of us, to a team of five full-time office staff, one full-time registered nurse, two part-time registered nurses, one licensed social worker and 65 caregivers. Has staffing been an issue? Nessler: We have always been diligent about staying on top of staffing, but it is
a balancing act in home care. We need to ensure we have enough staff to fill the needs of our clients, but also be ready for growth. If a discharge planner from the hospital or a rehab facility call, we need to have a caregiver ready to step in and care for the person in need. Our most recent addition to the team is a caregiver experience coordinator. That role is solely dedicated recruiting, training and retaining our caregiver team. What made you decide to add this position? Nessler: The services our caregivers provide to their clients are so valuable to this community. So it’s crucial that we find the right people to fill that role. The caregiver experience coordinator is meant to make sure we have a team of compassionate, confident and competent caregivers. Our CEC has the opportunity to recruit the people that fit well into our mission. I always say you can train someone to be a caregiver, but
Christine Nessler and Chris Mihm
WHERE YOUR POLICY COMES WITH AN AGENT
Mankato | Amboy | Vernon Center
cimankato.com
Sneeze Guards
(507) 385-4485
PRODUCED AND DELIVERED LOCALLY BY SCHWICKERT’S
Keep your staff and community members safe by maintaining a positive distance of separation, while still providing a high level of engagement with Schwickert’s Sneeze Guard. Produced from durable, long-lasting and easyto-sanitize material, the Sneeze Guard is what your business needs to defend against harmful germs and illnesses. www.schwickerts.com | 507-387-3101 | 330 Poplar St. Mankato, MN
you can’t train compassion. It is so important to find the person that is looking for more than a job, but rather an opportunity to do meaningful work and make a difference in someone’s life. Once the CEC recruits that person, it is their job to make sure they are trained and ready for the first visit with a client and then provide them with ongoing annual training and support. The CEC always plays a big part in retention. We want our caregivers to feel valued, so the CEC helps coordinate our Caregiver Mentor Program, facilitates ongoing communication with the caregiving team and coordinates any fun events we have that encourage team building with our team. This position probably positions you well for future growth? Nessler: It is no secret that most people want to stay in their homes as they age, but there are also a couple more reasons why you’ll see growth in home care over the next several years. First of all, our population is aging quickly. However, the AARP estimates that our ratio of potential family caregivers is decreasing partly due to the growing distance between family members. Home care fills the gaps in existing care for aging adults between care provided by family caregivers in addition to hospital stays and skilled nursing care. I think the COVID-19 pandemic has also shed light on the safety benefits of staying home. With any luck our government will see the value in providing funding for home care as a cost-effective option for long-term care in addition to what they fund for nursing homes and home health services. In the next few years our plan is to grow with the need we are seeing, and that includes offering services in additional communities.
THE ESSENTIALS Freedom Home Care 1635 North Riverfront Drive, #200 Mankato, MN 56001 Phone: 507-387-4663 Linkedin: Freedom Home Care, LLC Web: freedomhomecarellc.com Facebook: Freedom Home Care 18
July | August 2020
AG FOCUS
Got an agriculture-related story idea? Email editor@connectbiz.com.
Benefits of Agricultural Marketing Groups
History: Marketing clubs have a long history in the Midwestern United States and have seen resurgence in Minnesota as a direct result of the University of Minnesota’s Master Marketer and Winning the Game programs. Agricultural business management educators have been teaching, facilitating and organizing marketing clubs for over 19 years.
Marketing groups and clubs have been in existence for many years and give farmers the opportunity to share and discuss marketing ideas and strategies. I have worked with several groups since 1999 and currently meet with four groups. Most groups consist of five to 15 member farms and meet 12 to 20 times per year for 90 to 120 minutes. Local sponsors are involved in promoting, developing and managing these groups. Marketing groups are ongoing group training and discussion sessions focused on marketing methods, tools, issues, conditions, and trends. The sessions include formal teaching with research-based materials from the University of Minnesota, and other credible sources along with discussion facilitated by regional extension educators. Each group formulates a pre-harvest and post-harvest marketing plan used to benchmark individual marketing performance. Typical members of marketing clubs are commodity grain and livestock producers of any size and agricultural professionals. Each farm pays a fee to cover the cost of materials, travel, technology and other costs associated with operating and managing these groups.
Location: Clubs that are managed and facilitated by ag business management educators and their local partners are located in Southwestern Minnesota. Current U of M marketing groups are located in Sleepy Eye, Slayton, and Wanda. Benefits: From 2004 through 2017, marketing group farmers averaged 7.5 cents per corn bushel marketed better than the average price received by their peers, (farmers in Southern Minnesota adult farm management programs) and 29 cents per soybean bushels. A total of $12,769 per farm per year more income than their peers. The total per farm over 14 years would be $178,766. For all 55 farms that total increased revenue above their peers would total $9,832,130. The average farm earns 20 to 30 cents per bushel (including government payments). Just 10 cents more per bushel could increase net income by 33% to 50%! Great marketing is not finding the high price. It’s finding an extra 10 to 20 cents per bushel with a solid plan that avoids mistakes. A survey of mature marketing clubs in Minnesota (62 groups and 173 surveys
Dave Bau REGIONAL EXTENSION EDUCATOR, U OF M
returned) showed these results: 155 reported positive impacts on their operation due to attending marketing group sessions. They reported a 163% improvement in the use of marketing plans with an average increased income per operation of $20,401 per year. Those surveyed also made these comments: • The marketing club is another excellent source of information on market trends and analysis. Sharing ideas is probably the best information I receive from the meetings. • Marketing is a continual learning experience. It only ends when you exit production agriculture. A person could not take in too much information. I would like to see the marketing club stressed to more Ag producers. • This has been, and continues to be a very positive experience. Discussing issues at hand, strategies and plans helps me to make decisions and /or write my marketing plan. Also gives me the courage to make decisions otherwise I have a tendency to procrastinate. If you would like to join one of my existing groups or are thinking about starting your own, send me an e-mail at bauxx003@umn. edu or call at 507-372-3900, ext. 3906. I would be glad to come to an organizational or informational startup meeting. CONNECT Business Magazine
19
AG FOCUS
Continuing Business In The New World After COVID-19 All of us are experiencing the historic impacts of the COVID-19 pandemic. As we have engaged in social distancing (a term most of us had never heard just 6 months ago) to slow the spread of this disease and protect people who are more vulnerable to its effects, many businesses have been forced to close or substantially reduce their operations, schools have closed (forcing working parents to balance homeschooling and additional care responsibilities), and millions of American workers have lost their jobs. Meanwhile, medical and public safety workers are working longer hours in dangerous and stressful conditions in order to care for people who have COVID-19. But the COVID-19 pandemic has also shined a light on some unsung heroes that have long been overlooked—the farmers and workers who toil every day to feed us. Before this pandemic, many Americans believed that food comes from the grocery store and took for granted the fact that we could walk into a grocery store at any time and find just about any food they desired at an affordable price. We did not think 20
July | August 2020
about the time and resources that farmers invested to produce the food or the sophisticated supply chain that it takes to process, transport, and stock so many products in our stores. During this pandemic, however, many customers have experienced product shortages for the first time, and this experience has provided many with a greater understanding and appreciation for our food supply. But even though agriculture and food production have uniformly been recognized as essential services and have continued to operate during this pandemic, it has not been business as usual for farmers and agricultural businesses. Early on, the shutdown of restaurants across most of the country caused a rapid and severe decline in livestock prices as demand for many products disappeared. More recently, numerous meat processing facilities slowed down, and then shut down, as COVID-19 spread among their employees. These events have taken a significant toll on farmers. During these difficult times, there are important steps that farmers and agricultural businesses can take to work through the immediate issues and plan for the future: Honestly Assess the Current Financial Situation In order to plan to weather any immediate crisis, businesses need to assess and understand their current financial condition by updating their balance sheets (assets and
Matthew Berger ATTORNEY GISLASON & HUNTER
liabilities) and profit and loss statements (current cash flow). Businesses also need to determine the amount of working capital that is available, the “burn rate” at which working capital is being depleted to meet immediate needs, and any sources of working capital or financing that may be available (and on what terms). In making these assessments, it is important for business owners and employees to be open and honest—both with themselves and with others on their team—about the current conditions so that future decisions are made based on accurate information. Assess Future Expenses and Liabilities In addition to understanding the current financial condition of the business, it is also important to assess future expenses and liabilities. Many farms and agricultural businesses have ongoing contracts with both suppliers of goods and services used in the business and customers of farm products. For example, a hog farmer may have contracts to purchase inputs (e.g., weaned pigs and feed), leases of land and facilities used in the farming operation, and contracts to sell market hogs to a meat packer. In such cases, the farmer should
Got an agriculture-related story idea? Email editor@connectbiz.com.
clearly understand their contractual commitments to purchase inputs or pay rent (how much and when) and to supply farm products in the future. The farmer should also carefully review the contracts to determine how long they continue and whether there are opportunities to terminate the contract early or temporarily stop performance. And where opportunities exist to terminate a contract early, the farmer will need to evaluate whether they have the resources to perform, whether performance will be profitable, and whether continued performance is important to maintain valuable relationships for future opportunities. These decisions, however, require an accurate understanding of the available options based on a clear understanding of the future contractual obligations. Adjust the Business to Reflect the Market During difficult times, it is important for businesses to take a hard look at their operations to identify the core business functions
that must be preserved to ensure survival into the future and ancillary functions that are not. And if an ancillary business is not profitable and threatens the well-being of the core functions, and if the business obligations can be terminated, many farms and businesses need to make the difficult choices to focus their limited resources on the core functions.
perform their job functions. For example, many employees and employers are now recognizing the value of flexible scheduling and working remotely from home, and others have adjusted procedures to improve sanitation and worker safety. These simple steps can be critical in maintaining the key employees who are critical to the business.
Take Care of Key Employees For many farms and businesses, a quality workforce of dedicated employees is their greatest asset. And while crises such as the current COVID-19 pandemic create incredible stress on businesses, they also create incredible stress on employees in their personal lives as they now balance additional child care needs, fears about contracting and spreading the virus, and fears about keeping their jobs and supporting their families. It is important for businesses to recognize these additional stressors and assess whether there are accommodations that can be made to allow employees to address these issues while continuing to
Look for Opportunities Many crises present significant challenges but also significant opportunities to improve and grow a business. In managing the immediate financial stress, farmers and agricultural businesses should also continue to look outward to identify new opportunities to improve the business in the future and assess whether they have (or can obtain) the resources to take advantage of these opportunities. Matthew Berger has focused his practice on serving and protecting the interests of farmers, agricultural businesses, community banks, and other small businesses. He regularly represents his clients in administrative and regulatory proceedings, civil litigation, and appeals involving a variety of disputes, including environmental and permitting issues, land use and zoning issues, contractual disputes, corporate governance and shareholder rights, and collection and bankruptcy.
Red Feather Blk PMS200.pdf 1 3/7/2018 10:29:01 AM
A E V A H S T E L ’
E E F F CO BREAK E SERVICE E F F O C E IC F F O PROFESSIONAL
ry • nex t day delive • no minimum ties • multiple varie quipment ers • professional e p & volume brew u -c le g n si l ia rc comme • ORE...
EL TODAY CONTACT HERM 8
4 00.594.844
TO LEARN M
www.ahherm
el.com
CONNECT Business Magazine
21
PRESENTED BY:
STR ATEGIC PARTNERSHIPS SERIES
Accelerating Community Wellness in Edina
T
he traditional model of a Chamber of Commerce centers on serving as the voice for businesses and leveraging a community network for marketing purposes to bring new customers through the door. While these methods for driving revenues- for local business owners may have worked in the past, the GreenUmbrella initiative implemented by the Edina Chamber of Commerce seeks to break through these traditional practices. The GreenUmbrella initiative places an emphasis on the importance of well-being and vitality in Edina and focuses on a more holistic role in the community and driving forward activities surrounding community health and purposes. This multifaceted program was developed and will be implemented through a collaborative partnership with Minnesota State University, Mankato, the Edina Public Schools, and Microsoft. The primary activities of the GreenUmbrella initiative surrounds a four-pronged approach to economic and workforce development: Accelerate, Educate, Communicate, and Innovate.
The GreenUmbrella Accelerator is a not-for-profit business accelerator developed in partnership with Minnesota State Mankato’s Strategic Partnerships division and Microsoft. Located in Edina, Minnesota, the purpose of the GreenUmbrella business accelerator is to provide developing companies access to commercialization support. This can come in the form of mentorship, investors, and hands-on guidance to help companies in the area become self-sufficient. The university’s role in this partnership is to funnel resources through the accelerator in the form of unique, national, and international partnerships. The overarching goal of the business accelerator is to provide the opportunity for high-potential companies to have access to necessary resources to thrive, further bolstering the Edina economy. Additionally, Minnesota State Mankato is working with the Edina Chamber of Commerce and Edina Public Schools on providing academic immersion opportunities for students. The chamber is aware that to build a happier, healthier, and more purposeful community, it remains vital to look toward the potential of future job shortages, along with emerging industries. In a collaborative effort, Minnesota State Mankato and the Edina area Public Schools are seeking to shape talent pipelines to cultivate an interest early on for students surrounding health care and well-being fields.
Students will have the opportunity attend camps and learn in state-of-the-art facilities, as well as receive mentoring from Minnesota State Mankato faculty. Through this partnership, students will be introduced to multiple career pathways in technology and design-process careers. Through the GreenUmbrella accelerator and academic immersion opportunities, Minnesota State Mankato continues to work toward supporting the next wave of innovators in the state of Minnesota. When asked about the GreenUmbrella initiative and partnership with the university, Lori Syverson, president of the Edina Chamber of Commerce said, “GreenUmbrella is about building community, and the way you do that is by partnering with organizations that have the same values and commitment to community. Minnesota State University, Mankato at Edina has been that partner for more than 10 years. What makes this partnership especially exciting, is not only our commitment to building a stronger Edina, but a commitment that goes beyond the borders of Edina and Mankato. It’s a commitment to build a stronger Minnesota.” The modern day workforce is being asked to anticipate trends, thinking deeper about what successful businesses and employees may look like in the future. This new approach to workforce and economic development pursues the goals of developing a happier, healthier, and more purposeful community in Edina through focusing on individual health and well-being. As a more vibrant community is encouraged overall, naturally a more vibrant business community is destined to emerge.
LEARN MORE: https://link.mnsu.edu/maverickacademy
UPCOMING TRAINING EVENTS
1
Live Online
2
Customized Training
3
Badging
CPE is excited to now be offering Live Online courses, a collection of high-quality, live virtual trainings administered by a collaboration of Minnesota State colleges and universities. Visit our registration site to view all courses currently open for registration.
Contact us for Customized Training to meet your company leadership development needs. Sample projects include: development of new and innovative corporate training programs, email etiquette and business communications training, public speaking skills, and English intensive training for new employees and managers (listening, speaking, writing, grammar and vocabulary).
We are excited to announce that we will now be offering digital badges—images that contain verified metadata describing your qualifications and the process required to earn them. Interested in digital badges for your company, organization or program? Contact us!
DEVELOPING LEADERS | MEETING INDUSTRY NEEDS
TO SIGN UP, OR FOR MORE INFORMATION: https://link.mnsu.edu/courses-and-programs All courses are held at the Strategic Partnership Center 424 North Riverfront Drive, Mankato, MN Phone: 507-389-1094
By Lisa Cownie Photo by Jonathan Smith
Roll With the Changes One thing about being in business for 26 years, you learn how to handle just about anything that comes your way: a recession, a cancer diagnosis and, yes, even a pandemic of unprecedented proportions. “We have learned that in the times when business is most challenging is when we were able to learn things that allowed us to take on work that was more complicated because of the skills we learned during this time trying to pick up new business accounts. Sometimes what you think is tough, complicated or too much to do sets you up to take on better or more work and separates you from the competition. We have seen a lot of changes through the years and sometimes business gets to be challenging but, in the end, it is also very rewarding to see what you and your employees can accomplish,” reflects Pat Stadick, who, along with his wife, Laura Stadick, owns G & S Manufacturing in Courtland. There are a few things they’ve learned over the more than two decades they have been in business, top among them don’t panic. At the very top though, is trust your employees. Continues
Bag houses for the coal industry manufactured by G & S Manufacturing in Courtland.
24
July | August 2020
CONNECT Business Magazine
25
Roll With the Changes
Go Deeper Into the Story Every episode we feature up to three different local business owners and ask the tough questions about business and what makes them successful.
Listen Now Spotify Google Podcasts Breaker
26
July | August 2020
“When the governor made the decision to close ‘non-essential’ business because of COVID-19, Laura and I met and discussed all options as how to or can we proceed?” says Pat. “We met with the employees that same day and announced that we will be remaining open and it will be ‘business as usual’ here but with some safety modifications with social distancing. The entire crew has stepped up and have showed up for work daily, through this entire ordeal to give their time and talents to support our customers, we are really proud of them for doing this and practicing the social distancing policies through this.” G & S Manufacturing, LLC is an industrial metal fabrication shop with 87,000 square feet to fabricate items of all shapes and sizes. They take pride in handling demanding structural steel, metal fabrication and/or production runs. The COVID-19 crisis is not the first crisis the Stadicks have had to endure, so they have learned to roll with the punches and have learned to come out on the other side stronger. “In 2008–2009 the big recession hit,” reflects Pat. “We were doing a lot of contract work for other shops. Well, that dried up in a hurry and we were forced to lay off a large part of our work force for four to six weeks. That has been the only layoff to date—knock on wood—and we used the experience to change our philosophy on business. One of the biggest changes that we made was that Laura and I decided to diversify our customer base. Today we are nicely balanced between various industries such as coal, grain handling facilities, grain processing facilities, dust collection equipment, large tanks, large utility companies, shooting range components, contract work for other companies and more.” The company has come a long way from its humble beginnings back in 1994. Pre-G & S, Pat worked for New Ulm Steel and Recycling as a lead person for the first five years after high school, Laura was working for J&R Schugel Trucking. Pat says, “I went to work for an air compressor manufacturer and then to Caterpillar in New Ulm, this is where I picked up my welding training and experience. After I got laid off from Caterpillar, I decided to start a business. Even though Laura was a little unsure of this decision, she eventually fully supported it and helped to get the business off the ground.” The Stadicks brought in a partner, Pat’s high school friend, Mark Guggisberg. “Mark was someone I knew who was smart and who could work as hard as me. Laura took care of getting all the accounting in place and keeping books for us while working full-time and raising two young children,” says Pat. Pat not only gained experience in earlier jobs, but he gained future clients as well. “Our first big job was at New Ulm Steel & Recycling as Walt (the owner) was putting up a rather large building that needed infrastructure built inside of it. We were very fortunate to have this job as it carried us through the first five months. During this time, I was called back to work at Caterpillar full-time, so I was working 16 hours a day for two or three months. Everything we made we put back into the business to make it grow. We soon picked up other accounts that were friends of New Ulm Steel owners, Walt
G&S Manufacturing | Courtland
INSPIRED BY OUR PEOPLE Eide Bailly would like to congratulate Brooke Forstner and Jamie Fay on their promotion to Partner! Thank you both for your hard work and service to the firm.
Pictured from left to right: Jessica, Laura, Pat and John.
Working As a Family to Tackle Health Situation
What inspires you, inspires us. | eidebailly.com
“Jessica and John have also been working their way up through the various position and taking more responsibilities. Working with family can have some issues as we see each other all the time and we sometimes tend to step on one another’s toes. We have learned to create boundaries as to who oversees certain job duties. In 2019 through a routine physical at Mayo Clinic I was diagnosed with Prostate cancer, low grade,” Pat reflects. “In 2020 it was moved up to being more aggressive and surgery to remove it was required, just two weeks ago. This has put me out for a few weeks, and everyone has stepped up to fill my shoes through this. Jessica and John stepped in fill Laura’s and my shoes though this and are on their way to being able to take it over at some point in the future, should they decide to. They have been very instrumental in bringing G & S into more modern ways of doing business and connecting G & S to the younger generation, sometimes Laura and I are old school in the way we see or do things. We find ourselves very blessed to have been able to get where we are at today, we learned a lot through our past employers and utilized that in a big way to mold our business.”
CONNECT Business Magazine
27
Roll With the Changes
TAKE CONTROL OF YOUR ACCOUNTING Meet professional business consultant Nancy Wendt. Nancy is a certified QuickBooks ProAdvisor, serving SBDC clients since 2002. She can help your business optimize the use of QuickBooks and maintain the accurate financial information you need to make strategic decisions. Contact the Small Business Development Center for no-cost consulting services. myminnesotabusiness.com or call 507-389-8875 MSU Strategic Partnership Center, 424 North Riverfront Drive, Suite 101, Mankato, MN POWERED BY
Funded in part through a cooperative agreement with the U.S. Small Business Administration, Minnesota Department of Employment and Economic Development and regional support partners. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the program sponsors. Programs are open to the public on a nondiscriminatory basis. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Contact the SBDC at 507-389-8875.
28
July | August 2020
and Bev Luneburg. Those two were very instrumental in teaching me the business side of things, such things as structural steel and repairs for local businesses in New Ulm. These jobs really carried us through the first year.” They built their business slow and steady, and as the business grew so did their need for space. “Our first building was a machine shed located out on Mark’s farm for the first six months or so. Then we moved into a small storage shed on Front Street in New Ulm. We started getting into sandblasting when a friend from Caterpillar let me know that he wanted to get out of that business, so we decided to diversify into that, also because it complimented the steel work and painting that we were doing. This created the problem of needing more square footage, we decided to build a 5,000 square foot building on the north side of the 3M plant in New Ulm. We decided to lay in a press brake, shear, and plasma table at this point. “This building opened a lot more opportunities, and we also had a dedicated blasting and paint area. This is also when we started adding more employees, including a part-time bookkeeper, who took over Laura’s duties. Things continued to grow, and we were able to add an additional 7,000 square feet on to that building about two years later. At this point we were doing everything from farm repairs and small production runs to specialty projects for other companies and steel structural work. We were running out of room to expand on the current lot.” That’s how G & S became part of the Courtland community, expanding their footprint nationwide—all from Courtland, Minnesota, population 700. “In 2002 I found some land in Courtland that was the old Supersweet research farm, it consisted of an old dairy barn and hog barns. The decision was made to move operations out of our site in New Ulm. In Courtland, we ended up with about 12 acres which provided us with a lot more room for growth. We added on to the existing building and this doubled our square footage to 25,600 feet. We were doing a lot of work for the soy diesel and ethanol industries at this point. We were also doing a lot of stair towers, tanks and other
G&S Manufacturing | Courtland
structural work as well as for Caterpillar, where I used to work. Seemed strange that the place that had laid me off, is the place I was now doing work for.” The land in Courtland has served them well. They added on to the original building three times and currently have about 88,000 square feet. They have 30 employees who they say are the life blood of the business. “We have been very blessed with the employees, both current and past, that we have. They are very dedicated and a hard-working bunch. Without them we would never have been able to grow to the size that we are. This has been a key to our success and probably one of the toughest resources to acquire these days, as there is a lot of competition for welders and painters,” Pat says. There may be stiff competition, but there are also great local programs churning out great local talent. “We have been very fortunate to find a lot of good solid workers coming out of South Central College–North Mankato welding program. We feel strongly about this program and donated $20,000 to help with the upgrade they did last year to expand.” The Stadicks show appreciation for their employees in a number of ways. “We offer them a four-day work week with alternating two- and four-day weekends, competitive pay, health and dental insurance, and a retirement program. We have been able to pay an annual bonus each year. Also, we try to promote employees from within whenever possible, either by a position change, taking on more responsibility or learning additional equipment.” In 2007, the Stadicks’ partner, Mark, left G & S to start his own company. So Laura decided to dive in full time to help get things better organized and prepare G & S for future growth, which Pat says is really her strong suit. “She has a strong accounting and professional business sense. She brought G & S up to speed in safety, maintenance, documentation, record keeping and building a business that meets the criteria of dealing with large businesses that from time to time will audit us on our safety, calibration of equipment needed to test our paint application, record keeping of materials used, etc.” In 2008, their children came back to work
Convenient, Quality Insurance for Your Business Insurance Needs
Nick Smith Mankato, MN 320.761.9208
Stacey Johnson Owatonna, MN 507.455.5299
Jay Horner Owatonna, MN 507.455.5200
Jessica Grayson Owatonna, MN 507.455.5358
Imagine how much easier it would be to handle your business insurance with just one insurer.
Federated coverages range from property to liability to IRAs to business life and disability income. That means your Federated marketing representative can help design an insurance plan that takes care of almost every aspect of your business. Just pick up the phone and call. What could be more convenient than that?
Ed. 3/18
*Not licensed in all states. © 2018 Federated Mutual Insurance Company
Visit a business banker at First National Bank Minnesota to talk about your goals and how we can help. Your community banking partner since 1857.
www.fnbmn.bank CONNECT Business Magazine
29
Roll With the Changes
G&S Manufacturing | Courtland
“We can take on large million-dollar projects or do the local repair for a farmer. We have shipped across the continental U.S., as well overseas, built an indoor shooting range for his royal highness in Abu Dhabi, shipped ballistic panels to Morocco, as well as material into Canada.” for them. Jessica Kloeckl works on the office and accounting side and John Stadick on the fabrication side. (See side bar on p27.) With the family now all together in business, Pat says his dream and vision for the business is becoming reality. As a business, they have positioned themselves to be able to handle any size customer thanks to the technology they have been able to purchase. “Today we have a business that has computer controlled press brakes up to 500 ton, computer controlled rolls that can roll up to 5/8" plate 10' wide, a plasma table with two separate stations on a 12' x 54' bed, handrail cutting machine, angle rolls, large structural saws that can handle up to 20" x 30" beams, two drill lines for large structural steel that
can handle up to 40" tall beams weighing as much as 400 pounds per foot, angle line, computer design software that can draw huge structural facilities and a lot more. “We can take on large million-dollar projects or do the local repair for a farmer. We have shipped across the continental U.S., as well overseas, built an indoor shooting range for his royal highness in Abu Dhabi, shipped ballistic panels to Morocco, as well as material into Canada. We have built large airport hangar doors, coal conveying equipment, ash handling equipment, feed mill structural steel and bins/hoppers. We also have built a 600' long roller assembly for gas transportation, 12' diameter x 80' long concrete forms, 35' diameter hoppers, 100' tall stair towers and
a lot more. “John and I are both Certified Weld Inspectors (CWI) and we also have people trained in paint inspection. We have grown from a two-person business to where are today, and we have no outside sales or do any advertising, everything is word of mouth and customers approaching us.”
THE ESSENTIALS G & S Manufacturing, LLC 989 Main Street Courtland, MN 56021 Phone: 507-354-7600 Web: gandsmanufacturing.com Facebook: G & S Manufacturing, LLC
FEATURE Collaboration Connection
Agriculture Presses on in Uncertain Times Adapting to conditions outside of their control is nothing new for people involved in agriculture. Weather conditions, market uncertainty and government actions alter farm management decisions on a regular basis. Global pandemics, though, are uncharted territory. “This is more disruptive than anything we could have possibly imagined,” says JoDee Haala, director of public affairs for Sleepy Eye-based Christensen Farms. The onset of the COVID-19 outbreak and resulting disruptions have impacted nearly every U.S. citizen. Agriculture, deemed an essential industry, is not immune from those challenges. However, farmers and agribusinesses are committed to providing food for the nation and beyond, so they press on with spring field work and livestock care despite unprecedented challenges. “If a time like this doesn’t prove to people that agriculture and feeding the world is our foundation and is extremely important, then I don’t know what would,” says Ashley Leivermann, chief human resources officer for Crystal Valley Cooperative. “I’m proud of the industry from the standpoint that it is resilient. Whatever the challenge is, we’ll 32
July | August 2020
adapt. We don’t have the option to not get the crop in the ground. We don’t have the option not to feed animals, because people and animals need to eat. It doesn’t matter there’s a COVID-19 outbreak going on or not, they need to eat.” Minnesota’s livestock sector, an economic strength across Southern Minnesota and Northern Iowa because of prolific hog production, is facing drastic disruptions. Hog processing facilities in Minnesota, Iowa and South Dakota are shuttered because of COVID-19 outbreaks among plant workers. Markets for processed pork products like bacon are also in disarray because restaurants and food service venues are closed or offer takeout options only. “So, not only is it a lack of a place to go with processed product, it’s also a lack of a place to go with live animals that are ready to enter the food supply chain,” Haala says. “The situation is unfathomable, especially when the need for safe, nutritious, affordable food has never been greater.” Some hog farmers are faced with the need to try to find willing processors to take their animals in an already taxed system. The other unthinkable option is to cull otherwise healthy animals because there’s no place to take them for processing and no place to keep them. Livestock producers are well versed in animal health management and animal agriculture leaders put an emphasis on keeping cattle, hogs, turkeys or chickens
healthy. While farm worker safety is also a priority, dealing with a human disease that is disrupting the food chain is new territory. “We’ve had to deal with animal diseases in the past, but when you have a disease that potentially impairs your workforce, that’s a different kettle of fish that requires many different actions on the part of players in the industry to figure out how to continue to operate,” explains Christensen Farms Vice President Gary Koch. “We’re in uncharted waters here.”
Soldiering On
Despite stay-at-home orders and social distancing guidelines, agriculture activities press on in the adjusted reality. Farmers are diligently planting crops, and livestock operators remain committed to feeding and caring for their animals. The coronavirus may be a new challenge, but dealing with adversity is part of the fabric of farming. “The reality is that people need to eat, and there is no place in the world that has the geographic characteristics that Southern Minnesota and the Midwest has,” Haala says. “There is absolutely no place better in the world to be growing food, both the crops that go on to feed people, but also feed animals to supply the protein. What makes people get up and do that every single day? I think it’s just in their bones and it’s the fabric of who they are.” Farmers are adapting to new safety practices, as are employers and employees
in all aspects of agribusiness. From factory workers and livestock managers to sales representatives and fertilizer applicators, businesses are striving to ensure worker safety. Healthy workers are stepping up to do their jobs to produce healthy food. “My opinion is that folks recognize what they do is important,” Koch contends. “This is an essential industry and we have the noble purpose of feeding the world. Quite frankly, I think that is a motivating factor for people and it causes them to want to continue to come to work. You’ve got a bunch of committed people in this essential industry who are trying to figure out how to keep the wheels on the car, and keep producing food so that the American people can have the assurance that food will still be there every day. That’s the battle going on right now.”
Regional Strength
GreenSeam Director Sam Ziegler isn’t surprised farmers and agribusinesses are stepping up during the COVID-19 pandemic. Southern Minnesota and Northern Iowa were built on the strength of the region’s agriculture economy and continue to flourish because of agriculture’s contributions. “Agriculture has always been a humble industry,” Ziegler says. “Just because we are now labeled as essential does not change the passion people in this industry have. There is a passion to produce cleaner energy such as ethanol. There is a passion to raise
“This industry is the foundation of our economy for as long as Minnesota and Iowa have been states. Looking into the future, it will remain to be the foundation of our economy. In times like this, agriculture remains a bright star and I am proud to have my career in agriculture.” animals to nourish families near and far. There is a passion to care for the soil and work with whatever Mother Nature throws at us. There is a passion for finding solutions to grow more nourishing food. Right now, more than ever there is a passion to not let fellow Americans down by keeping food on your table.” Ziegler says that while the dark clouds are hanging over agriculture now with historically low prices and a supply chain traffic jam, agriculture remains strong. Farmers are in the process of planting another crop, confident in the fact they’ll harvest a crop this fall. “These times have not stopped this hope or motivation to plant new seeds,” Ziegler contends. “This industry is the foundation of our economy for as long as Minnesota and Iowa have been states. Looking into the future, it will remain to be the foundation of our economy. In times like this, agriculture remains a bright star and I am proud to have my career in agriculture.” Far beyond economic reward, many in agriculture are willing to step up in the face of challenges because of their commitment
to providing for others. “I think people from coast to coast are counting on the ability of our region to continue to make food to maintain the country and keep putting food on the table during this time of crisis,” Koch says. “Agriculture is a pretty resilient industry,” Leivermann says. “Agriculture is regularly being faced with challenges that we need to figure out how to adapt and overcome. Overall, I think the agriculture industry is just so resilient because we’re constantly being faced with something that we can’t control.” Beyond supplying food for consumers, Haala says farmers and agribusinesses are contributing much more. Christensen Farms has donated to 17 food banks across the Midwest and is the lead partner in the Brown County United Way Project Lunchbox, which provides weekend meals to kids. A group of Christensen employees has also sewn and donated hundreds of masks. “People want to help people,” Haala says. “You can see that evidence all over the place.” CONNECT Business Magazine
33
Mark Jaeger Photo by Kris Kathman
34
July | August 2020
By AJ Dahm
Growing up on his family’s farm near Mapleton, Mark Jaeger is no stranger to the ag industry. Jaeger is now owner of the Mankato-based company, HerdStar, which primarily sells equipment to the agricultural livestock industry. Through partnerships with its customers, the company creates technology that allows those in the ag livestock and industrial sectors to maximize their operational efficiency, as stated in its mission statement. Starting as a small two-man operation, the business has grown to around 17 employees who Jaeger considers family, working with many of them for over 20 years. At one point the company even employed Jaeger’s parents and children, who helped in production; now one of his sons works as part of the engineering group. Continues
CONNECT Business Magazine
35
HerdStar
WHO IN YOUR ORGANIZATION IS GOING TO TAKE THE HACKER’S BAIT?
COMPUTER TECHNOLOGY SOLUTIONS YOURCTS.COM | 507.388.3880 NETWORK & DATA SECURITY | MANAGED SERVICES SECURE WI-FI WITH BYOD PROTECTION | CABLING TELEPHONE SYSTEMS (UC) | CAMERAS 36
July | August 2020
Jaeger has spent much of his life working in agriculture in one form or another. “I enjoyed the work and took pride in the feeling of having our own business. I always enjoyed experimenting with new things,” says Jaeger. Eventually the farm crisis of the ‘80s, along with significant allergies, forced Jaeger to search elsewhere when building his career. Studying business and computer science at Gustavus Adolphus College in St. Peter propelled him down a path that would lead back to the ag industry. “After college I went back and worked on the farm while trying to find a job in my major. The only jobs I could find were for big companies as a business applications programmer. Sitting behind a desk did not interest me. After six months, I decided to go back to college to work on an electronic engineering technology degree at Mankato State,” says Jaeger. This led to a position at a scale company in Fairmont called Weigh-Tronix. This job allowed Jaeger to develop products for both agricultural and industrial markets. It was just what he was looking for and was close enough that he could continue to help out on the farm. As a programmer, Jaeger was able to learn on the job and develop useful skills that would one day allow him to start his own company. While there, he developed a number of great professional relationships, with four of them now directly involved in his current business. Product development, budgeting, costing, project management and production were all nurtured in the early stages of his career at Weigh-Tronix. “The owner of Weigh-Tronix had started the company from nothing. It originated from his patenting of The Weigh Bar, a means of measuring load, using a machined round bar of steel with precisely placed strain gauges. The idea of someday being able to have my own business, even one-tenth that size, was planted,” says Jaeger. After the company was sold to a larger holding company, Jaeger eventually went to work for a new startup company in Mankato called Blue Earth Research. As the engineering manager, Jaeger headed its development of ventilation controls for livestock facilities. The company was small, with about eight employees, but grew to more than 20. Two of them were previous Weigh-Tronix employees, one being his former boss who had
Mankato
first hired him. The business was quickly bought out, at which time Jaeger and the previous owner decided to start a company of their own. On July 1, 2001, Novonix Corporation was formed—the beginning of what would become HerdStar. The two rented office space in the back of a bank and went to work designing a new product for controlling heat lamps and mats for swine and farrowing rooms. “Having worked closely with dealers and customers for the past five years, I knew there was nothing on the market similar to it and understood the need and opportunity for such a product. We were also fortunate to have a couple of local swine operators who we could share our ideas with. They helped us define our product and also pointed out some additional benefits we were not aware of at the time,” says Jaeger. Like any fledgling business, finances were an issue in the early days of the operation. “We had no income, but we continued to spend money on the business and the development of the product with everything coming out of personal funds. The business was my life and, if it was to succeed, we needed to have something to sell. The concern was once we developed the product, how were we going to sell it? Who would buy a product from a two-man show? The product had to be low cost to overcome any objection due to cost, as well as being reliable. Any initial product failures would be very hard to overcome,” says Jaeger. Picking up engineering contracts helped them to make enough money to keep their dreams alive. “Our largest contract job was with a company called HerdStar. They contracted us to design and develop a swine sorting scale. Controlling pneumatic gates, the sorter would capture a pig and record its weight. Based on weight, it would use programming to sort pigs into appropriate food courts. When the pigs were ready to be sold, the sorter could be programmed to sort a number of pigs within a programmed weight range into a sale pen. This project continued to evolve into developing a complete remote monitoring system that included radios and communication gateways that took the data from the scale and put it in the Cloud. This was way before remote monitoring and cloudbased systems were popular,” says Jaeger.
WHEN WAS THE LAST TIME YOU HAD A SECOND OPINION ON YOUR FINANCIAL PLAN? In this ever changing economy, we have found many business owners are unhappy with the advice given from their financial advisor—it’s not uncommon. We believe that many successful businesses would value a second opinion on their finances and succession plans. Let us help you help those you care about. Contact us today.
Brad Connors, President 213 15th Ave NE | Waseca MN 56093 507-835-9111 www.iWealth4me.com Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.
We drive the same roads, drink the same water, and
LIVE IN THE SAME COMMUNITIES AS YOU.
Bolton-Menk.com CONNECT Business Magazine
37
HerdStar One of Jaeger’s many talents is identifying a need and finding a way to meet that need for his customers. In Jaeger’s opinion, “Labor continues to be a big issue for the livestock industry. It is getting harder to find people willing to work in a livestock facility, and especially hard to find someone with the background or education in livestock production. More producers are looking for remote monitoring of livestock health and the barn environment. Our BinTrac vision (cloud-based monitoring solution) helps to solve this concern. We can provide accurate feed consumption to alert on possible animal health issues and automate just-in-time feed deliveries. We also partner with industry-leading software solution providers that manage the broiler chicken supply chain from egg hatching to individual chicken pieces on the grocery store shelf. The software company’s data solution provides analytics and machine learning from a number of data points. This includes our BinTrac data to monitor bird feed consumption, health, estimated bird weight and size based on total consumption and bird genetics.” Much of their work during this time would revolutionize the ag industry, developing products that made it easier on livestock growers. MicroZone was awarded one of the best new products of the year at the World Pork Expo in 2006. Two years later, its BinTrac product took home the same prestigious honor. “We had begun selling our MicroZone product, which is a heat lamp control for farrowing facilities. We developed it and started selling it labeled under our Novonix name. It controls heat lamps or heat mats in
a swine farrowing building. When piglets are first born, they lack the body fat to stay warm. Their natural instinct is to lay next to the mother, but this often results in the mother laying on them and crushing them. A heat lamp or mat is used to keep the piglets warm and away from the mother when resting. As the piglets get older, less heat is needed, and operators would manually raise the heat lamps. Our system regulates the power to the heat lamps to maintain a comfortable micro-environment for the piglets. It ramps the power based on the piglet’s age and also adjusts the power based on the room temperature. Our system has been proven to reduce energy consumption by up to 40 percent, together with reducing piglet mortality due to lay-ons,” says Jaeger. It is estimated that the technology saves an average producer approximately $20,000 annually on electrical costs for a 2,400-head facility. “We have worked with a number of the large power companies that now recognize our product as a power-savings device. Customers can thus apply for rebates when buying our MicroZone system. This has been a very stable and reliable product for us, which has helped make it successful. Farrowing facilities have high levels of biosecurity, which does not allow easy access to our product. It needs to be dependable and simple to operate and maintain. We have estimated that we are controlling heat lamps or mats for well over 2 million sows, with all the large integrators using it,” says Jaeger. “We also started the development of a bin weighing system, which I had always hoped to develop following my years at Weigh-Tronix.
Superior Quality and Fast Printing! Children’s Books, Coffee Table Books, Brochures, Annual Reports, Catalogs, Magazines, Posters, Yearbooks, and MORE!
1750 Northway Drive North Mankato, MN 56003
800-729-7575 www.corpgraph.com
38
July | August 2020
Mankato
I knew the systems currently being sold for weighing bins were not reliable and difficult to install on existing bins. I saw a big opportunity if we could come up with a reliable product that could easily be retrofitted to existing bins, as there were many livestock barns without scales. I knew that growers did not like climbing bins and calling in feed orders, but this was not enough to justify the cost. I quickly learned that in order to sell the product, I would need to find more value for the customer. Our best way of doing this was to collect data from our bin scales. The remote monitoring system we had developed for our sorter was easily adopted to our bin scale system. I knew our bracket assembly was unique and if I was going to apply for a patent on it, I had to do it before I started selling it. As with any patent, if you start selling it publicly, it is then recognized as being in the public domain and no longer patentable. I filed for the patent, again investing more money into something I wasn’t sure I could sell. Cash continued to be an issue, and having a lot of continuity between the sorter we developed for HerdStar and our bin weighing system, we decided to merge businesses,” says Jaeger. The company’s BinTrac and MicroZone product lines are now the most popular and best-selling of what the Mankato-based company has to offer. The BinTrac product line is used to monitor inventory in a hopper style bin or silo. Their patented bracket assembly is easily connected to a customer’s existing bins. A reasonable price point and easy installation make it a no-brainer for the
BinTrac modules and load cell mounting brackets.
consumer when making a decision to purchase such technology. “When our bin scale is combined with our remote monitoring, customers use our system for vendor managed inventory. This is when a supplier of material remotely monitors their customers’ inventory to ensure each customer is always adequately supplied, instead of the customer needing to order it when they get low,” states Jaeger. HerdStar currently sells through a dealer network that now exceeds 50 U.S. dealers and over 10 internationally. The larger dealers have distribution worldwide. They currently have installations in about 25 different countries and estimate
MAINTENANCE SERVICES
YOUR VISION. OUR EXPERTISE.
REAL ESTATE DEVELOPMENT + BROKERAGE
Whether you are remodeling your current space, undergoing a lease build-out or building a new location, you should partner with a contractor focused on your goals.
SELF-PERFORMING FIELD SERVICES
CONSTRUCTION MANAGEMENT
ka an
GENERAL CONTRACTOR
M
Three generations of building partnerships.
to ,M
N
As one of the few full-service design/build firms in Minnesota, Rice Companies can help you achieve excellence every step of the way. We promise to listen, communicate, advise and most of all, be a true partner.
ARCHITECTURE
320.252.0404 // RICECOMPANIES.COM SAUK RAPIDS // GLENCOE // MANKATO
CONNECT Business Magazine
39
HerdStar
Mankato
there are over 17,500 systems installed around the globe. Selling internationally is exciting and a great reward for those working at HerdStar, while often receiving compliments on the reliability of their products and requests to purchase more equipment. HerdStar’s willingness to cater to individual customer needs has helped it make some of the most reliable products on the market today. “In many cases, we are dealing with a very harsh environment. We are exposed to all weather conditions and everything that comes with a livestock facility. Many of the locations where these livestock facilities are built are very rural and as far away from the general public as possible. This means they are at the end of a power line and can have fluctuating power. They are in the flatlands of Oklahoma, where a bin is the highest point and acts as a lightning rod or in the hills of Arkansas where cellular coverage is poor. Much of the new technology assumes a good internet connection, but that is not always the case for many of our installa-
Business | Home | Auto | Health
tions. We commonly utilize cellular as a means for transferring data to our cloud solutions, but we customize our hardware and software to deal with weak signals and intermittent connections,” says Jaeger. “We feel being global is necessary to growing our business, but it does have its challenges. Support is always one of our biggest concerns. Before we ship product into another country, we need to identify a trustworthy dealer who will sell, support, and service our product. Dealing with language and time zone differences adds to these challenges. Another added expense before we can even ship into some of these countries is product certification requirements. Many countries do not recognize our UL safety certification and require their own certification. Testing and evaluating our products to these other countries standards is costly,” says Jaeger. Patents have played a big role in the success of HerdStar over the years. The company holds a number of patents on its unique products and technology that are
Belle Plaine | Le Sueur | Minnetonka 10,000
CLIENTS
8,000
6,000
4,000
2,000
Get insurance options! 20 professionals & 16 companies See how new clients on save average!
$628
(800) 967-3389 thecanopygroup.com
40
July | August 2020
2005
2018
The Canopy Group is an insurance agency with three locations that is making waves by rapidly growing its business.
now considered industry standards. Jaeger says, “It is always exciting whenever one of our new patents is issued. We currently have patents for every one of our main product lines: Sorting Scale, MicroZone, and BinTrac. We have patents in the U.S., Canada, China, and South Korea. HerdStar designed and developed unique features into each of these products that we felt were marketable and created a distinct advantage over competition. There have been a few occasions where competition has started infringing on our patents and we have been able to successfully defend them and work out a favorable business arrangement.” The early years were difficult for Jaeger and his staff, with putting in long hours and investing so much of their time, energy and resources into a company and products they believed in. “It was difficult starting a business and maintaining a personal life. My business was my life and still is today, but maybe to a lesser degree. I see my employees as part of my family. As with many businesses, we spend a lot of time together. The first 10 years of the business were very difficult, as I was working all the time. Luckily, I had a supportive family. I have a great committed group that takes ownership in the business and wants to see us succeed,” says Jaeger. Along with a topnotch team, Jaeger has guided HerdStar toward an even brighter global future. “I like the saying, ‘Failure is not the opposite of success; stagnation is.’ In the next five to 10 years, I hope to see continued sales growth as we partner with more international distributors and plan to expand into more industrial niche markets that fit our BinTrac line. We strongly feel that to grow our business we need to be global and diversified. We have diversification between the different livestock sectors we sell into domestically, but going globally also provides us diversification,” says Jaeger.
THE ESSENTIALS HerdStar 1400 Madison Avenue, Suite 504 Mankato, MN 56001 Phone: 507-344-8005 Web: herdstar.com Facebook: HerdStar, LLC
HOT STARTZ! MANKATO
Knutson Construction After working in the Mankato community for more than fifteen years, Knutson Construction is making it official and just opened an office in the City Center. “The Mankato community has a great, diverse economy and shares the same values we do. We have been involved with Mankato Greater Growth, Partners for Affordable Housing, Mankato Area Foundation, Boys & Girls Club of Mankato—just to name a few,” says Heidi Carrozzella, VP of strategic marketing. Knutson Construction has also been involved in many notable projects, such as the Eide Bailly Center, including their own office space, St. Paul Lutheran School remodel and expansion, Mankato East High School renovation, Prairie Winds Middle School, and the Julie A. Sears Residence Hall, Minnesota State University-Mankato. Carrozzella says Knutson is thrilled to have an established presence in Mankato. “We are excited to bring our services to the Mankato market, specifically our pre-construction and virtual design and technology offerings. We believe these services ensure your project gets off to the right start and allows you to envision the full potential of your project, helping you make key decisions that save time and money. We pride ourselves on delivering The Knutson Experience, which means we guide you through the process every step of the way no matter the size of your project.” Knutson Construction is a wholly owned subsidiary of Knutson Holdings, Inc. Knutson Construction has been in business for 109 years and became officially incorporated on May 28, 1985. The company is owned by the Curry family, with Steve Curry serving as chairman of the board. His son, John Curry, serves as director of customer experience and represents the third generation of the Curry family to work for Knutson since it was purchased by his grandfather in 1985. Knutson Construction 111 South Second Street, Suite 410 Phone: (507) 280-9788 Web: knutsonconstruction.com
Catch the Hometown Business Connection on KEYC News 12!
PHOTO SUBMITTED
KEYC News 12 and Connect Business Magazine bring you the stories of area local businesses and how they impact Southern Minnesota. • First Wednesday of the month on KEYC News 12 at 6 • Repeats Thursday on KEYC News 12 Midday • See all previous episodes on keyc.com
CONNECT Business Magazine
41
HOT STARTZ! KASOTA
True Connections Canine Academy
True Connections Canine Academy 32247 480th Street Phone: (507) 441-1582 Web: trueconnectionscanineacademy.com
PHOTO SUBMITTED
Patricia Linehan and Terry Clodfelter spent their lives in education ... of people. Now, they are turning those teaching talents to the four-legged species. The former college professors opened True Connections Canine Academy (TCCA) on six acres of fully fenced property about two miles off Highway 22 between Mankato and St. Peter in August of 2019. TCCA is a dog training business focused on teaching humans how to train their own dogs. This gives dog owners training independence because they have built their own skills to clearly and kindly communicate to their dog what they want the dog to do. “We opened TCCA to fulfill a long-held dream of helping people and dogs understand one another better and do amazing, fun things together. Although we own the business and are responsible for it financially, it was designed and is operated quite nontraditionally. TCCA is truly a group effort, run by pooling good ideas from a small group of devoted dog trainers, then discussing them from every direction possible, and acting on the best. Without the group, there would be no business. This group of trainers keeps the business fresh with the latest ideas in training science and offers a creative energy, kindness and enthusiasm which permeate everything we do,” explains Linehan. TCCA got off to a great start, but as with so many other small, locally-owned businesses, COVID-19 proved to be a challenge they are still trying to conquer. “We had full classes when the pandemic hit and we chose to close and refund for the safety of everyone. We do not know exactly when we will open yet. This has been hard on all of us because we miss our
students, the comradery, and of course all the funny, silly, sweet, or challenging dogs who make us all think hard and/or laugh,” she says. The best part of her businesses is the people she meets along the way. “Here at TCCA we get to see the best of people. We see them struggle at times with learning how to train, and then getting it. Light bulbs go off right in front of us! We see them touch their pups gently, with love. We see new owners of rescue dogs come for training so the relationship will work out. That’s commitment. It fills us with joy. I didn’t know this would make me smile so much!”
BANKING THE WAY IT SHOULD BE At your service. On your side.
Mankato | Amboy | Eagle Lake | Vernon Center | cbfg.net 42
July | August 2020
To be considered for Hot Startz, tell us about a new business or new professional in the area by emailing editor@connectbiz.com.
MANKATO
PHOTO SUBMITTED
Plumb-Rite Plumbing Love of family, love of community and love of his career brought Brandon Schmidt to Mankato a number of years ago. Let’s work backwards from that, starting with his career. Brandon began his plumbing career in 2001. “Brandon always wanted to do something in the trade industry as he loves building things and working with his hands,” explains his wife and co-owner of Plumb-Rite, Jen Schmidt. Brandon adds, “I guess plumbing just fell into my lap and I decided to go for it.” Originally from St. Paul, that’s where Brandon and Jen met in 2008 and that’s how he came to move his career to Mankato. “I have a strong love for this community and that’s how Brandon ended up here. We love the small town feel with the metropolis amenities ... so he moved from St. Paul to Mankato to be with me and my daughter, he is the best stepdad ever, and hasn’t looked back since,” explains Jen. The couple started Plumb-Rite a little over a year ago, when they saw a need in the area. “We started Plumb-Rite as we saw a need for more trustworthy and honest plumbers who are knowledgeable and put the customer first. We started this company as a family and want each of our customers to feel like they are part of that family too. Watching how many service companies treat customers just left a bad taste in our mouths, by starting our own company, we feel we have the ability to change that in the industry and hope to make a positive impact within the community,” she says. That said, like with any newcomer to a market, the Schmidts admit there have been challenges. “Our biggest challenge is breaking into an already saturated
market and showing people why we are different than other plumbing companies out there. Also, of course COVID-19 has been a challenge as we aren’t able to get out there and meet people face to face at local events or even sponsor them, as we love to give back when we can.” The Schmidt’s understand Mankato was the best spot to start their business and raise their family; Jade, 15 and Dominic, 9. “Honestly, the best surprise has been our repeat customers and referrals from our customers that we get. Our customer loyalty has been amazing which is truly special to us —we are incredibly thankful for every single one of them.” Plumb-Rite Plumbing 308 Ledlie Lane Phone: (507) 720-6007 Web: plumbriteplumbing.biz Facebook: Plumb-Rite Plumbing
Radio ads influence search and retail traffic. When radio spots come on, they have been proven to drive:
THE VOIC E Of MA N KA TO
29% lift in search in activity. (Source: RAB: Radio Drives Search, Sequent Partners, Media Monitors & In4mation Insights, 2017)
29%
22% in store traffic.
22%
(Source: RAB: Radio Drives Store Traffic, TagStation, 2018)
Visit RadioMankato.com and learn how to start. CONNECT Business Magazine
43
FEATURE Collaboration Connection
Navigating the Legal Lay of the Land When Starting a Business So you want to be an entrepreneur and you’ve done the “fun” stuff: you have a name picked out, you know your product or service inside and out, but now you are stuck. You have no idea how to register your company, write contracts, or pay taxes. Navigating the legal lay of the land is an important early step for any entrepreneur. There are too many legal ins and outs to go over in this article, but we can offer some tips to help you get started. 1) Seek Legal Advice Early: You can avoid a lot of problems later by consulting a legal expert before you even start operating. Don’t be afraid to ask for clarifications on confusing or highly technical terms; lawyers are trained to help you with this and foresee any issues that could be relevant to the future of your company. Some things that might come up in preliminary discussions include: finding a name for your company that will not pose any legal issues, registering your company as the correct legal entity to save you money on taxes, and making sure you have a clear deal with any co-founders. Start early, and you can save a lot of time and money.
On July 1, 1MC Mankato will hold a panel discussion on local legal resources. Please join 1MC Mankato at 8:30 a.m. on Zoom: (the link each week is posted at facebook.com/1mcmankato/.) 1MC Mankato is organized by a team of volunteers and is facilitated by the Minnesota State University, Mankato College of Business Center for Innovation & Entrepreneurship. In late May, 1MC also held a community mapping session focused on law, and what entrepreneurs and business startups in our region say they need early on when it comes to legal services. The mapping session ended with the following takeaways for our community to consider. Startups primarily need help in three areas: 1) What form their business should take: C-Corp, S-Corp, LLC, Sole Proprietorship. 2) Obtaining a Federal Tax ID.
2) Find a Lawyer with the Right Expertise for Your Industry: Although it can be tempting to turn to friends or family lawyers, it is important to consider whether they are fully equipped to handle issues relevant to your business. Whomever you choose should have relevant, specialized legal expertise in your industry. Hiring a lawyer who has worked with startups before is a definite plus. If you are unsure of how to find someone, get recommendations from other entrepreneurs in your industry.
3) Negotiating lease terms.
3) Be Organized: Keep good records, such as important emails, documents, contracts, licenses, and sales records.
2) Understand where and how any disputes will be resolved.
4) Don’t Let Legal Requirements Scare You Away from Entrepreneurship!: It may seem overwhelming at first as an entrepreneur wades into unfamiliar legal requirements. Though there are a lot of issues to keep in mind, having a good lawyer by your side can help you get through them with ease. You have already taken the courageous step to start your own business, don’t let a little paperwork take your eyes away from your vision.
Places to go early on for legal help:
Participants found that business owners may not review contracts as carefully as they should: 1) Look for “Hold Harmless” clauses.
1) SBDC Legal Corps 2) SCORE.org 3) LegalZoom
Founded by the Kauffman Foundation, 1Million Cups is based on the notion that entrepreneurs network and discover solutions over a million cups of coffee. 44
July | August 2020
CONNECT NETWORK
Call Karla VanEman today!
Join the Connect Network: sales@connectbiz.com
NEW ULM • JensenMotors.com
Marshall, MN is a FORWARD THINKING, BUSINESS- FRIENDLY community with SHOVEL READY sites. JOIN US.
(507) 345-4040 AN EXPERIENCED TEAM
Marshall Economic Development Authority (507) 337-0802 • ci.marshall.mn.us
Looking to sell your business? Interested in buying a preexisting business? BizLink North is here to help. Visit bizlinknorth.com today.
’s
Wednesda y @ 1:05 pm
On the
SHOW
mankato.bigdealsmedia.net
EXCEPTIONAL PRICES, GIANT SELECTION FREE DELIVERY FRIENDLY, PERSONAL SERVICE Furniture, Flooring, Window Treatments, Design Service and More! Downtown New Ulm • 16 North German Street
507-354-2716 • www.newulmfurniture.com
NEW ULM AREA CHAMBER OF COMMERCE Supporting the businesses who make us a special place to visit for a weekend, or a lifetime. See our historical downtown, do some shopping – open your own business! We’ll help you make it your home.
1-507-233-4300
newulm.com CONNECT Business Magazine CONNECT Business Magazine
45 45
ASK A PROFESSIONAL
Eleven Ways to Help Yourself Stay Sane in a Crazy Market Keeping your cool can be hard to do when the market goes on one of its periodic roller-coaster rides. It’s useful to have strategies in place that prepare you both financially and psychologically to handle market volatility. Here are 11 ways to help keep yourself from making hasty decisions that could have a long-term impact on your ability to achieve your financial goals. #1: Have a game plan. Having predetermined guidelines that recognize the potential for turbulent times can help prevent emotion from dictating your decisions. For example, you might take a core-and-satellite approach, combining the use of buy-and-hold principles for the bulk of your portfolio with tactical investing based on a shorter-term market outlook. You also can use diversification to try to offset the risks of certain holdings with those of others. Diversification may not ensure a profit or guarantee against a loss, but it can help you understand and balance your risk in advance. And if you’re an active investor, a trading discipline can help you stick to a longterm strategy. For example, you might determine in advance that you will take profits when a security or index rises by a certain percentage and buy when it has fallen by a set percentage. #2: Know what you own and why you own it. When the market goes off the tracks, knowing why you originally made a specific investment can help you evaluate whether your reasons still hold, regardless of what the overall market is doing. Understanding how a specific holding fits in your portfolio also can help you consider whether a lower price might actually represent a buying opportunity. 46
July | August 2020
And if you don’t understand why a security is in your portfolio, find out. That knowledge can be particularly important when the market goes south, especially if you’re considering replacing your current holding with another investment. #3: Remember that everything is relative. Most of the variance in the returns of different portfolios can generally be attributed to their asset allocations. If you’ve got a well-diversified portfolio that includes multiple asset classes, it could be useful to compare its overall performance to relevant benchmarks. If you find that your investments are performing in line with those benchmarks, that realization might help you feel better about your overall strategy. Even a diversified portfolio is no guarantee that you won’t suffer losses, of course. But diversification means that just because the S&P 500 might have dropped 10% or 20% doesn’t necessarily mean your overall portfolio is down by the same amount. #4: Tell yourself that this too shall pass. The financial markets are historically cyclical. Even if you wish you had sold at what turned out to be a market peak, or regret having sat out a buying opportunity, you may well get another chance at some point. Even if you’re considering changes, a volatile market can be an inopportune time to turn your portfolio inside out. A well-thought-out asset allocation is still the basis of good investment planning. #5: Be willing to learn from your mistakes. Anyone can look good during bull markets; smart investors are produced by the inevitable rough patches. Even the best investors aren’t right all the time. If an earlier choice now seems rash, sometimes the best strategy is to take a tax loss, learn from the experience, and apply the lesson to future decisions. Expert help can prepare you and your portfolio to both weather and take advantage of the market’s ups and downs. There is no assurance that working with a financial professional will improve investment results.
#6: Consider playing defense. During volatile periods in the stock market, many investors reexamine their allocation to such defensive sectors as consumer staples or utilities (though like all stocks, those sectors involve their own risks, and are not necessarily immune from overall market movements). Dividends also can help cushion the impact of price swings. #7: Stay on course by continuing to save. Even if the value of your holdings fluctuates, regularly adding to an account designed for a long-term goal may cushion the emotional impact of market swings. If losses are offset even in part by new savings, your bottom-line number might not be quite so discouraging. If you’re using dollar-cost averaging — investing a specific amount regularly regardless of fluctuating price levels — you may be getting a bargain by buying when prices are down. However, dollar cost averaging can’t guarantee a profit or protect against a loss. Also consider your ability to continue purchases through market slumps; systematic investing doesn’t work if you stop when prices are down. Finally, remember that the return and principal value of your investments will fluctuate with changes in market conditions, and shares may be worth more or less than their original cost when you sell them. #8: Use cash to help manage your mindset. Cash can be the financial equivalent of taking deep breaths to relax. It can enhance your ability to make thoughtful decisions instead of impulsive ones. If you’ve established an appropriate asset allocation, you should have resources on hand to prevent having to sell stocks to meet ordinary expenses or, if you’ve used leverage, a margin call. Having a cash cushion coupled with a disciplined investing strategy can change your perspective on market volatility. Knowing that you’re positioned to take advantage of a downturn by picking up bargains may increase your ability to be patient. #9: Remember your road map. Solid asset allocation is the basis of sound in-
Sponsored Content
vesting. One of the reasons a diversified portfolio is so important is that strong performance of some investments may help offset poor performance by others. Even with an appropriate asset allocation, some parts of a portfolio may struggle at any given time. Timing the market can be challenging under the best of circumstances; wildly volatile markets can magnify the impact of making a wrong decision just as the market is about to move in an unexpected direction, either up or down. Make sure your asset allocation is appropriate before making drastic changes. #10: Look in the rear-view mirror. If you’re investing long term, sometimes it helps to take a look back and see how far you’ve come. If your portfolio is down this year, it can be easy to forget any progress you may already have
made over the years. Though past performance is no guarantee of future returns, of course, the stock market’s long-term direction has historically been up. With stocks, it’s important to remember that having an investing strategy is only half the battle; the other half is being able to stick to it. Even if you’re able to avoid losses by being out of the market, will you know when to get back in? If patience has helped you build a nest egg, it just might be useful now, too. #11: Take it easy. If you feel you need to make changes in your portfolio, there are ways to do so short of a total makeover. You could test the waters by redirecting a small percentage of one asset class to another. You could put any new money into investments you feel are well-positioned for the future, but leave the rest as is. You could set a stop-loss order to prevent an
Tim Robinson APMA® Financial Advisor, Wealth Management Solutions
investment from falling below a certain level, or have an informal threshold below which you will not allow an investment to fall before selling. Even if you need or want to adjust your portfolio during a period of turmoil, those changes can — and probably should — happen in gradual steps. Taking gradual steps is one way to spread your risk over time, as well as over a variety of asset classes. APMA® Financial Advisor Wealth Management Solutions is a private wealth advisory practice of Ameriprise Financial Services, Inc. Tim Robinson has worked in the financial industry for 18 years. He truly enjoys helping people understand the potential their lives have through his comprehensive financial planning approach. Everyone’s situation is different and his goal is to get to know each client and work with them to help them live the life they have always dreamed of through investment analysis and portfolio design.
CONNECT Business Magazine
47
ARCHITECTS
ENGINEERS
SCIENTISTS
SURVEYORS
Solid. Agile. Versatile. Now with nine offices, including Mankato. 507.519.3700
Widseth.com
Bridge Plaza is slated to open later this year in Mankato MN.
Est. 1975
