May/June 2016

Page 1


Tom Best Technology Advisor Copier/Printer Solutions Marco

easier communications Doing business today requires more than a desk phone and email. Marco can help you stay better connected with your customers, partners and co-workers using Unified Communications tools that sync up all of your phone, video, data and mobile applications in one convenient place. Our super convenient Unified Communications tools empower our customers to connect more easily and collaborate more effectively. That’s bound to put a positive spin on your bottom line. Learn more and get empowered at marconet.com.

marconet.com

#mpowering

taking technology further


MULTIPLE IRAS OR 401(K)S? CONSIDER A ROLL AND TAKE CONTROL. Are you trying to decide what to do with assets from a retirement plan? Maybe you’re looking for a way to save time and paperwork by consolidating multiple accounts. If so, rolling over to a Thrivent Financial IRA may or may not make sense for you. Together, we can explore your options to help you make the most informed decision about these critical assets. Contact me today to discuss the potential benefits of a rollover.

Thrivent Financial was named one of the “World’s Most Ethical Companies” by Ethisphere Institute 2012–2016.

Ruthann C. Kragh FIC, CLTC® Financial Associate 150 Saint Andrews Ct., Ste. 520 Mankato, MN 56001 507-388-3555 ruthann.kragh@thrivent.com Thrivent.com/fr/ruthann.kragh Facebook.com/ruthann.kragh.thrivent

“World’s Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC. Securities and investment advisory services are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415, a FINRA and SIPC member and a wholly owned subsidiary of Thrivent. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc. They are also licensed insurance agents/producers of Thrivent. For additional important information, visit Thrivent.com/disclosures.

Appleton, Wisconsin • Minneapolis, Minnesota • Thrivent.com • 800-847-4836

28394 N2-15


MAY/JUNE 2016

Contents

THE MAGAZINE FOR GROWING BUSINESSES IN SOUTHERN MINNESOTA

STAFF & CONTRIBUTORS Publisher: Concept & Design Incorporated Editor: Grace Webb

COVER STORY

Art Director/Staff Photographer: Kris Kathmann

6

Comfort Food

Advertising Manager: Beth Benzkofer Kozitza

Sisters Keri Solheid and Colleen Van Blarcom are continuing the family business of bringing smiles to customers’ faces.

Contributing Photographers: Art Sidner Contributing Writers: Edwin J. Feulner, Jeff Wondra Production: Becky Wagner

PROFILES

Circulation: Becky Wagner

18

Home Sweet Home

Printing: Corporate Graphics, N. Mankato

Mankato-based Rich Draheim helps make homeownership dreams come true through his real estate business.

6

9,400 for May/June 2016 Published bimonthly

Kasota businessman Tony Borglum offers customers a one-of-a-kind driving experience.

CORRESPONDENCE Send press releases and other correspondence: c/o Editor, Connect Business Magazine P.O. Box 452, Nicollet, MN 56074

SPECIAL SECTION

Extreme Businesses Of Southern Minnesota

E-mail: editor@connectbiz.com (please place press releases in email body)

55

Web: www.connectbiz.com

Businesses across southern Minnesota are finding unique ways to meet customers’ desires for one-of-a-kind experiences.

Phone: 507.232.3462 Fax: 507.232.3373

18

COLUMNS

Editor’s Letter Grace Notes

5 28

IN EVERY ISSUE

National Opinion Bulletin Board Press Releases Business Trends Hot Startz! Ask A Professional

Cover Photo: Kris Kathmann

CIRCULATION

44

Battlefield Kasota

Mailing: Midwest Mailing, Mankato

35 37 40 52 59 62

44

ADVERTISING Call: (507) 232-3462

ABOUT CONNECT Locally owned Connect Business Magazine has ‘connected’ southern Minnesota businesses since 1994 through features, interviews, news and advertising. Connect Business Magazine is a publication of Concept & Design Incorporated, a graphic design firm offering print design, web design, illustration and photography. conceptanddesign.com

Copyright 2016. Printed in U.S.A.

4

CONNECT Business Magazine

MAY/JUNE 2016


EDITOR’S LETTER

Risky Business There’s a well-known saying: “No guts, no glory.” It’s true in a lot of areas of life, and that includes business. Rarely will a business see incredible success if the owners play it safe. It’s a difficult game, balancing security against potential, risks against rewards. The folks featured in our May issue know how to play that game—and win. First, there’s sister team Keri Solheid and Colleen Van Blarcom, co-owners of Bamco, Inc. and the five McDonald’s restaurants in its franchise. As daughters of Bamco founder Jerry Bambery, the women grew up with McDonald’s in their blood—but they’re still making their own mark on the family business. Then there’s Rich Draheim, owner of Weichert Realty in Mankato and the New Ulm Event Center in New Ulm. In January, this serial business starter took another risk when he waded into the world of Minnesota politics in his campaign for State Senate District 20. Finally, there’s Tony Borglum, who sells people the chance to drive tanks over cars and through houses. People told him he was crazy, but now he hosts customers from across the world. I’d like to add that I too am in the process of taking a big risk—working towards a commission in the United States Marine Corps. This will be my last issue of Connect Business Magazine as I focus my time and energy towards my military hopes. It has been a pleasure to delve into the world of southern Minnesota business, where there is no shortage of great story material. An veritas, an nihil, Grace Webb

Promoting Happy + Healthy Communities Communities that effectively integrate peoples’ needs and interaction with their outdoor environments including parks, trails, recreational facilities, and open spaces are proven to be the happiest and healthiest. At ISG, our multi-disciplinary team of over 200+ professionals incorporate a strategic combination of design and engineering expertise to Proud Recipient of: create harmonious outdoor spaces. Collaborating between our seven offices in three states, ISG offers fresh and progressive ideas while respecting the character and history of each environment.

ARCHITECTURE

+

ENGINEERING

+

ENVIRONMENTAL

+

PLANNING

www.is-grp.com



Sisters Keri Solheid and Colleen Van Blarcom are continuing the family business of bringing smiles to customers’ faces. By Grace Webb Photo by Kris Kathmann

Nearly everyone can remember the excitement of going to eat at McDonald’s as a kid: the bright yellow-and-red interior, the colorful indoor playground, the Happy Meal (and, most importantly, the toy that came with it). It was a special treat, a place to celebrate a birthday or a good report card. Even for adults, stopping by McDonald’s for ice cream can be a pick-me-up after a tough day or a fun time with friends. It’s still a treat, no matter how old the customer is. Since McDonald’s was founded in 1940, it has become the leading fast food franchise in the world, employing more than 1.7 million people and selling more than 100 billion hamburgers. Every major city in the world has a McDonald’s restaurant, if not several. Countless kids find their first jobs working for Ronald McDonald. In other words, it has become a part of the very fabric of life in America. For sisters Keri Solheid and Colleen Van Blarcom, the impact was even greater. As the daughters of former local McDonald’s franchise owner Jerry Bambery, the women had a unique view inside the world of McDonald’s from the time they were kids. They remember with perfect clarity the day that McDonald’s launched its breakfast menu and added Chicken McNuggets to the menu. They remember meeting with key industry leaders such as Ray Croc and Jim Klinefelter, who worked with Bambery to jumpstart McDonald’s from 116 restaurants in the U.S. to 25,000 restaurants across the world. And even though neither of them planned to go into the family business, they’re now the proud owners of five McDonald’s restaurants in the area: three in Mankato, one in Northfield and one in Faribault. They may not have planned to go into the business, but they’re naturals, combining their father’s shrewd business smarts with their own resourcefulness, work ethic, and deep compassion for employees and customers alike. As they explain it, they’re in the people business—they just happen to sell hamburgers at the same time. continued >

MAY/JUNE 2016

CONNECT Business Magazine

7


Comfort Food

Tell me a little about yourselves. Colleen: We’re originally from Minneapolis. Our parents are Jerry and Marilu Bambery, and there are three girls in our family; Mary (now McNulty) is the oldest, Keri is the middle, and then me. We attended Christ the King Catholic grade school and Regina High School, an all-girl high school in downtown Minneapolis. Your dad, Jerry Bambery, was pretty involved in the world of McDonald’s while you were growing up. What was that like? Colleen: Our dad started with McDonald’s in 1959 when he was 17. He worked for McDonald’s Corporation while we were growing up. When he began, there were only 116 McDonalds across the country (McDonald’s wasn’t a global company yet). He and his friend, Jimmy Klinefelter, started working at McDonald’s only a day apart and together became leaders within the young McDonald’s system. They were key players

in developing and growing McDonald’s in the Midwest region, which consists of Minnesota, Wisconsin, North and South Dakota, and Iowa. They’re considered pioneers in McDonald’s. So, McDonald’s was a part of our lives since we were born. Our dad worked a lot. Typically, we ate dinner at 7:30 p.m. We didn’t know any different. Mom was supportive and acknowledged how important working hard was. She never made it a bad thing that my dad worked all the time. It was always positive: “Your dad is working hard to provide for your education and save for our future.” When Dad and Jimmy retired from the corporate side to become McDonald’s franchisees, the company had grown to more than 25,000 McDonald’s restaurants globally. Today, there are more than 36,000 worldwide. The amount of growth and expansion that they were part of is impressive. In June of 1985, Bamco was formed when Dad retired from the McDonald’s Corporation and became an owner/operator

of the McDonald’s in Mankato. I had just graduated from high school, and my sisters were in college, when my parents moved here. It was a bit of a change for me to move from Minneapolis to a city with cornfields and no Target. Do you have any special McDonald’s memories from your childhood? Colleen: Of course, meeting Ronald McDonald for the first time. My other favorite memory was my dad bringing home a case of Chicken McNuggets for us to test before they were available on the McDonald’s menu. Keri: We went with Dad on his store visits on Saturdays and Sundays. Those were our days to tag along with him. While visiting the restaurants, Dad always taught us the standards for the business, both quality and operations; we learned those quite well. I can vividly remember the day that the Egg McMuffin came out, and going to the Dinkytown McDonald’s at the University of Minnesota campus and having a Triple

Power up your business with

CONSOLIDATED COMMUNICATIONS! Need faster, more powerful technology for your business? Power up with fiber from Consolidated Communications. We deliver fiber optic services throughout the area and your location may already be fiber ready! • Data & Internet • Voice • Cloud Services • Managed & Hosted • IT Services

®

consolidated.com

507.387.1151 Services are not available in all areas.

8

CONNECT Business Magazine

MAY/JUNE 2016


Keri Solheid and Colleen Van Blarcom | McDonald’s

Ripple (Neapolitan ice cream cone). I remember going to the Snelling McDonald’s in Roseville, when the first outdoor Playland opened. Those significant moments are such a huge part of our history. You’re both very involved in the community. Where did that come from? Keri: Mom was a stay-at-home mom who was an extremely involved volunteer at our school. Our philosophy of volunteering stems from her. She led by example. She was the one at school, working hard to help raise funds to enhance our Catholic education. As a kid growing up, you didn’t always want your mom at school with you, but once you grew up, you realized what a gift it was that she was there. She imparted that passion for giving back to us. It’s a key part of who we are. Colleen: I learned to fundraise from my mom. She started the Christmas wreath sale for our grade school. I was seven years old, going door to door, saying, “Hi, I’m

Colleen Bambery. I go to Christ the King School. Would you like to buy a Christmas wreath to help our school?” That was in first grade and here I am at 48, still fundraising for Catholic education. I am very proud of helping to create Wired To The Heart and Lucky 20 for Loyola Catholic School. I also have a soft spot for any kid who’s fundraising for their school; that takes a lot of perseverance and passion. How is that passion continued through Bamco? Colleen: Ray Croc, McDonald’s founder, believed that you give back to the communities that you do business in. That’s who my dad is, and it’s second nature to us, too. Our parents gave because it was important and the right thing to do. You don’t do it to get your name in lights. We receive requests daily from all of the communities that our restaurants are in, and we do what we can to help as many causes as we can. When I look at all of the charities that we are involved

with and the different things that Bamco is involved in, I believe that is a reflection of how our parents raised us. Keri: We do give back, but we don’t talk about it. We don’t need that plaque on the wall. The reason for giving back is because it’s important and it’s needed—and it is simply the right thing to do. We give privately and quietly. The needs are great and many, but we do the best we can to try to make a difference for our people, our customers and our communities. It is up to all of us to help where we can, so we do. What other lessons did you learn from your parents? Colleen: My mom always taught us that being nice matters, and my dad stressed that we are put on this earth to do good and to help others. It is all about what good you can do and what difference you can make. Our dad always said that “can’t” is not in the dictionary. If you look at all three of us girls, persistence would probably be a word

What a coincidence. We’re in the growth business, too. You’ve worked hard to build a rewarding legacy. And our experienced bankers can help cultivate it, leaving you better prepared for what’s ahead.

Bremer.com 800-908-BANK (2265) Member FDIC. ©2016 Bremer Financial Corporation. All rights reserved.

MAY/JUNE 2016

CONNECT Business Magazine

9


Comfort Food

that describes all of us. I don’t know if it’s the combination of going to an all girls’ high school, or only having sisters, but it was taught by our parents that girls can do anything. Keri: Even at 49, not using “can’t” has stuck with me. When it comes to doing something, “can’t” might be the right word for the conversation, but there is always another way. You have to avoid limiting yourself by thinking that something isn’t possible. It might not be perfect, and it might not be the prettiest. But you always find a way around the word “can’t.” That word was never allowed to stop us. We learned to look for opportunities and see through to other possibilities. Colleen: Another lesson I learned from my dad was my quest for perfection. Growing up, I was a pleaser. I followed all of the rules and didn’t want to disappoint my parents or my teachers, so I got great grades and stayed out of trouble. I remember my sophomore year of high school, I was showing my dad my report card of all A’s (again), and he said, “Colleen, the best thing you should do is to get a C. You will learn more from that than you will in achieving all A’s.” That puzzled me. It took me several years to understand that lesson. I was serving the wrong master. I was trying to do and be what I thought others thought I should be, instead of running my own race.

“My mom always taught us that being nice matters, and my dad stressed that we are put on this earth to do good and to help others. It is all about what good you can do and what difference you can make.” Growing up, did you plan on joining the family business? Keri: When we were growing up, Dad was working for the corporation, so it wouldn’t have been considered joining a family business. It wasn’t until we were in college that they bought their first stores. Even then, there was never any pressure or expectation that we would join the “family business.” They raised us to go to college and dream our own dreams. I attended St. Cloud State University and earned a B.S. degree in Management/Finance. Mary went to the University of WisconsinLa Crosse and earned a B.S. degree in Political Science/Marketing. Colleen also attended the University of Wisconsin-La Crosse, and graduated with a B.S. degree in Business Administration/Management. We were encouraged to go make something of ourselves, wherever and whatever that may be, so we did. What came next? Keri: After college, I went to work for Deluxe Check Printers up in the Twin Cities. It was during that time that I met my husband, Dan. I worked at Deluxe for five years and then stayed home after having our son, Danny. I had the opportunity to start working for my parents remotely doing accounting and then became more involved as time went on. It was after we had our daughter, Lindsay, that we 10

CONNECT Business Magazine

MAY/JUNE 2016


Keri Solheid and Colleen Van Blarcom | McDonald’s

made the move to Mankato, and both Dan and I began working directly with the family business. Colleen: Each year during college, I had a different job. One year I worked in the college dorm, another year I was a cashier at the grocery store, and another year I worked in retail. But each summer when I came back to Mankato, I worked at our Bamco restaurants. During my junior year of college, there was an opportunity for me to do a management internship with McDonald’s in La Crosse, which is part of the Courtesy Corporation. Dick Lommen, Courtesy Corporation’s founder, was a good friend of my dad’s, so I signed up and got the internship. Prior to the internship, my experience with McDonald’s was at the crew level. This internship exposed me to the management side of McDonald’s. That is when my love and passion for McDonald’s became a career choice for me. The exposure

100% RY SATISFACTO RATING* Courteous Quality Workmanship Chad Jacobs Window Foreman

Recommended Crew Professional Jobsite Cleanliness Refer Lacina Siding & Windows *Per Lacina Siding & Window 2013 Survey

Team Leader

Getting to know you:

Keri Solheid

507-625-5064

2104 N Riverfront Dr, Mankato, MN 56001

www.lacinasiding.com

Family: Husband Dan, son Danny (23), daughter Lindsay (20) Hobbies: watching golf, reading, four-wheeling, snowmobiling, spending time with family Favorite food on the McDonald’s menu: Sausage McMuffin with egg and a hash brown on it, McChicken, Diet Coke with extra ice

Getting to know you:

Colleen Van Blarcom Family: Husband Rick, daughter Jessi (21), sons Ryan (19) and Luke (18) Organizations: School Board for Loyola, McDonald’s Twin Cities Co-Op Executive Board, YMCA, Mankato Area Healthy Youth, United Way, Mankato Convention and Visitors Bureau, Women Operator Network (WON) Favorite food on the McDonald’s menu: Diet Coke, Caramel Frappe, Quarter Pounter with Cheese, Hotcakes, Egg Biscuits

You’re getting everything you need from your IT, right? We help companies strategically position their Information and Technology (IT) in a way that moves their business forward.

Learn About IT Strategy At: http://info.thriveon.net/IT-strategy

MAY/JUNE 2016

CONNECT Business Magazine

11


FOR LEASE

INDUSTRIAL WAREHOUSE SPACE

Comfort Food

to operations, systems, routines and management of people got in my blood. Dick had 14 restaurants then (now 53), whereas Bamco had two restaurants at that time. Those years were invaluable for me. Afterwards, I was able to move back to Mankato and help my dad grow Bamco from two to five restaurants.

Northport Industrial Park

2155 Ringhofer Drive, North Mankato } } } } } } }

20,000 to 60,000 sq. ft. available $6.00/sq. ft. triple net lease Six 50,000 lb. capacity automatic dock levelers 26 ft. clear height LED lighting with sensors and 50 skylights Hard wall construction Future expansion planned John R. Jasinski, Broker

Office: 507-386-4608 Mobile: 507-291-1341 john.jasinski@mcdfrealestate.com PROFINIUM PLACE | 100 WARREN STREET, SUITE 200, MANKATO

www.mdcrealestate.com

Rickway Carpet North Mankato 625-3089 akopesky@hickorytech.net CONNECT Business Magazine

“We need each other’s strengths to run Bamco, just like he needed our strengths to run Bamco. I could not do what Keri does. I love to be in the restaurants with the people and the action. That’s why Keri and I complement each other well.” My dad will always be a teacher with high standards and things to teach—stressing to always do the right thing because there is no other way to do it but the right way. He is brilliant. I always say that Keri got the finance, numbers, walking calculator side of my dad, and I got the operational side of his brain. Dad really set Keri and me up to purchase Bamco together without us realizing it. We need each other’s strengths to run Bamco, just like he needed our strengths to run Bamco. I could not do what Keri does. I love to be in the restaurants with the people and the action. That’s why Keri and I complement each other well. Keri: My role in a sense was always different than Colleen’s. She was in the front lines working with Dad. He gave me a lot of room to learn what I needed to learn, and it became more of a trusted partnership. He counted on me for that. That was sacred. You did not want to mess that up. Our brains numerically were wired similarly, so it was the ying and the yang to what we needed to do. You always wanted to make sure you made him proud, so you always worked to the best of your abilities. It was expected of us. Second best was never accepted; you had to do your best.

Chris Cairns Adam Kopesky Commercial Estimators

12

What was it like working with your father? Colleen: It was a great journey. Thirty-one years ago, Bamco was at two restaurants. Today, we’re at five. I’m forever grateful that my dad trusted me and gave me the room to help grow and develop his company. Of course, we had our struggles of working together. I’d be lying if I said that we didn’t have our moments. I’m sure some of his life lessons that he taught me came back to bite him when my “‘can’t’ is not a word” arguments wore him down to give into me.

MAY/JUNE 2016

What were the challenges of working in a family business? Colleen: Well, there are pros and cons of working with a family business. My husband was also involved for 17 years, so, at that time, I had my dad, my mom, my sister, my brother-in-law and my husband all working together with me. I would say the hardest part of working in a family business is being able to shut work off when we’re all together. Sometimes we just wanted Thanksgiving to be Thanksgiving with no talk of the business, but with so many of us involved, it was


Keri Solheid and Colleen Van Blarcom | McDonald’s

natural for it to be part of the conversation. It took a lot of discipline to not talk about business when we were all together. The positive side of a family business is that everyone has everyone’s back. You are there for each other and make sure the business runs well. Are there challenges? Yes. It was probably more difficult for Rick (my husband), my dad and myself, since the three of us were in operations. Ultimately, someone had to make the final decisions. There can only be one boss. My persistent side probably frustrated my husband and my dad, but in the end, I made the decision to take the lead role in the company.

The best value in stylish fine dining since 1977

Creative Construction

Like Father, Like Daughters When it comes to the story of McDonald’s, both the local franchise in southern Minnesota and the worldwide corporation, Jerry Bambery plays a pretty big role. Bambery started out as a McDonald’s crew person at the age of 17 and worked his way up through management, playing a pivotal role in developing the five-state region for McDonald’s corporation. He and his wife, Marilu, became owner/operators of a McDonald’s franchise in 1985 when he retired from McDonald’s and formed Bamco. Eventually, he operated five stores: three in Mankato, one in Faribault and one in Northfield. In April of 2009, Jerry and Marilu sold Bamco to two of their three daughters, Colleen Van Blarcom and Keri Solheid. Bambery was impressively successful during his 50-year stint in the fast food industry, and he had some simple advice on how he did it. “In a penny business, if you watch the pennies, the dollars will take care of themselves,” he said. “Don’t waste. Sell what you buy. Be aware of your expenditures. A good manager should know how many dollars of labor he has on the floor at all times. He or she should know what a minute’s worth of time costs. These are simple rules. Good managers know these rules.”

We offer completely customized and personalized menus for any event, large or small. Our professional wait and bar staff can fulfill all your culinary and beverage needs. Your menu choices are limited only by your imagination.

Frank and Connie Weber Frank: 507-381-9960 Connie: 507-381-9970 weberscustomcatering@gmail.com www.weberscustomcatering.com

FIRST IMPRESSION.

COMMERCIAL

SIGNAGE Custom Sign & Graphics Affordable. Professional. Guaranteed. SIGNPROMANKATO.COM | 507-345-3388 digital message boards, channel letters, backlit letters, vehicle wraps, banners, awnings, large format printing, sign repair & installation MAY/JUNE 2016

CONNECT Business Magazine

13


Comfort Food

“My husband was also involved for 17 years, so, at that time, I had my dad, my mom, my sister, my brother-inlaw and my husband all working together with me. I would say the hardest part of working in a family business is being able to shut work off when we’re all together.” Your father has been very open about his struggles with depression. How did you face that as a family while running the business? Colleen: That has been part of our lives since I was five. We saw some of it at work— the ups and the downs. There were times that it was difficult to work with our dad, but we knew that he was not in the best emotional state. We just worked harder to make the business run and protect our dad. There have been times when we know that this person we love is not in a good spot,

14

CONNECT Business Magazine

MAY/JUNE 2016

and we wish we could take the pain away when he did not realize the pain that he was causing others because he was not well. That has probably been the biggest difficulty. Keri: It’s not a pretty disease. It is painful and gut-wrenching to see someone that you love struggling. Words cannot always describe what it is like. You figure out how to protect the one who is hurting. Empathy is incredibly important to have in order to help you manage. Colleen: I think that what helped the most was when my dad shared about his

mental illness (in his 2007 Connect Business Magazine cover story). When I was five, mental illness was not discussed. I remember being told, “Something is wrong with your dad’s brain.” But we didn’t talk about it. I remember my teacher telling me, “I know we shouldn’t talk to you about it.” So I didn’t really understand. I would get up in the morning, knowing that my mom and dad were up all night because my dad was suffering… I learned to have a different level of empathy for people. I always say McDonald’s is a people business that serves


Keri Solheid and Colleen Van Blarcom | McDonald’s

hamburgers. My dad’s illness taught me to have compassion for our employees and our customers. Every person has a story. Oftentimes, mental illness isn’t talked about openly. That was especially true when we were children. After my dad shared his story, it was amazing how many people will talk about it to us. Society as a whole is talking about it more and more. A lot of people suffer with mental illness. I’m glad that my dad shared. It has probably made it easier for a lot of people to understand. I see that in a lot of my employees, and I’m able to guide them and encourage them to seek help. With mental illness, you cannot wish it away or change your way of thinking. It’s not that easy. You can’t hide from it. It is really amazing how many people suffer, and they just don’t know how to get the help they need, or the support and understanding from their family. Keri: It is a difficult disease. It is really hard. You consume so much energy trying

to keep the ones you love protected from the effects of the disease. In some ways, we are a compassionate society, and in some ways, we are the cruelest society. If everybody paused long enough to hear the other side of the story, to truly engage and understand how others are doing, to care more, we would change our world. We will get there, but it takes a lot of work, a lot of caring and a lot of empathy and understanding. It is about helping one person at a time. How has McDonald’s changed since the time you began working there? Colleen: I started when I was 17, so back then there were a lot fewer items on the menu. Happy Meals were only available five times a year. There were only single lane drive thrus, and we didn’t have the automated beverage system that makes our drive thru sodas. Now, we have grilled chicken, salads, McGriddles, McCafe, Cuties, GoGurts and apple slices as menu options, just to name a few.

USE US

I understand that McDonald’s restaurants in Europe are using kiosks in their lobbies for ordering. Any chance we’ll see those here soon? Colleen: In Europe, those countries are further advanced in the technology aspect of what they can provide for their customers. In the U.S., there are more than 13,000 restaurants to change out the technology and advance it to the level of Europe. It never happens as fast as we would like it to. Smaller markets make it easier to roll out and test the technological advances. What other challenges did you face when you bought Bamco? Colleen: Probably one of the biggest challenges for me when I bought the business was learning about commodities. That was just a side of the business that never fell on me. Dad made the pricing decisions. Several years ago, there was a lot of pressure on us as owner/operators to continue with the Dollar Menu, and at that time, wheat,

f or br illiant lig htin g up g r a de s .

Business facilities waste approximately 30% of the energy they pay for, and over half of that can be due to inefficient, conventional lighting. Xcel Energy works with businesses to help upgrade the efficiency and quality of their lighting, while providing rebates to offset the cost and speed up payback. Contact an energy efficiency specialist today at 1-855-839-8862, or visit xcelenergy.com/Business. xcelenergy.com © 2015 Xcel Energy Inc.

15-XCL-01147-D_OC_Biz_LED_7.5x5_4C_FNL.indd 1

MAY/JUNE 2016

CONNECT Business 1/29/16Magazine 2:17 PM

15


Comfort Food

corn and beef were at record highs. We lost money on every McDouble we sold. I had to make a decision that would negatively impact the business. My dad wasn’t there to do it for me. I needed to move the price of the McDouble from $1 to $1.19. It sounds easy, but it’s not. The fear was, if you took products off the Dollar Menu, how many customers would you lose? How much less often would customers come? We are a penny business. Our margins are tight. With the increased minimum wage changes and other increased cost pressures, there were tough decisions I had to make. You mentioned wage affecting your margins. What are your thoughts on recent pushes to increase minimum wage even more? Colleen: I believe business owners should make their own decisions on what to pay their employees, and the government shouldn’t be involved. To be competitive with attracting and retaining employees, businesses will always figure out the correct wage to pay. When the government proposes minimum wage increases, it plays well in the media that everyone should make more money. I don’t know a single business owner who doesn’t want to pay their employees more. The media doesn’t show that any minimum wage increase is really another income tax revenue stream

Colleen Van Blarcom sits with one of her “Tables of Wisdom.”

for the government through payroll taxes. What are the most rewarding parts of the business? Colleen: Our employees and our customers. We have great employees! For many employees, we are providing them with their first job. They learn about teamwork, customer service, food preparation, food safety and cleanliness standards. My passion is developing our managers. I love teaching them that they are part of one of the world’s largest brands and here they are running a multimillion dollar restaurant. Bamco managers wear many hats; they are in charge of building sales, delivering great customer service, inventory management, training departments, accounting, human resources and operations. My dad

stressed with me that we train people up until the day they leave. We never give up on someone. As a first time employer, we must teach them skills that they can take with them. That has stuck with me. I know not all managers will be with us for 20 years, but we have many who are, and I keep teaching all managers as if they will be. I have received many thank-you notes from past Bamco managers, thanking me for what I taught them and how it has helped them be successful in their careers. Knowing that I helped make a difference in their lives is rewarding. Another great part is our customers. Every restaurant has several coffee groups. I call these groups the “Tables of Wisdom.” I thoroughly enjoy visiting and learning from them. I learn about their perspective

LOCAL DECISION MAKERS Nick Hinz

President

NMLS 769578

Shane Van Engen

Cole Nelson

Senior Vice President

Assistant Vice President

NMLS 1321033

NMLS 815774

frandsenbank.com

Member FDIC

507.345.5043

NO PROBLEM

16

CONNECT Business Magazine

MAY/JUNE 2016

CA012516

BIG LOANS


on life, their family, their travels and their health issues. They keep me posted on the obituaries. They make me smile. I truly appreciate their business. Explain how being an independent owner/operator works. Colleen: Bamco is a separate corporation running independently of McDonald’s. By paying our franchise fees to McDonald’s, we operate their brand as independent owner/ operators. I know that I will sell a heck of a lot more hamburgers as McDonald’s than I would as Colleen’s Hamburger Shop. What are your thoughts on the decision of the National Labor Relations Board that quick service restaurant companies employ the staff of the franchises? How does this affect you and your restaurants? Keri: We are an independent, small business. We operate a franchise, which pays rent and service fees to McDonald’s in order to utilize their brand. We are not run by the corporation. We are independent, and we make our business decisions and lead Bamco as an independently owned and operated business. We are separate entities, and that’s the way it needs to be. Otherwise, you lose the autonomy of being a small business owner. McDonald’s has changed its look significantly in the last 10 years. How do you balance your history with staying modern? Colleen: McDonald’s is evolving to a more sophisticated look. We want to be current and relevant, and we want our buildings to grow up as our customers have grown up. You’re already starting to see remodeled lobbies, and in the next few years, you’ll see more exteriors changed as well. Some experts have said that the McDonald’s menu is getting too cluttered. What do you think? Colleen: I absolutely agree. We are in the process of simplification right now. It is never as easy as it seems. McDonald’s has done studies showing that consumers have identified their favorite three items. As we try to streamline, we have to be cog-

THE ESSENTIALS

BAMCO, Inc. Phone: (507) 345-1968 Address: 193 West Lind Court Mankato, Minnesota

nizant that we don’t take off their second or third choice, because we would risk the consumer not visiting as often if we don’t have their favorite choices. When the menu gets complex, it slows down our kitchen’s efficiency, and that’s what slows down our service. People are in a hurry. McDonald’s is between point A and point B—whether it’s soccer practice, work or class. We need to makes sure that when a customer comes through our drive thru or front counter, they can get through quickly. When you have many items on the menu, it just slows down that piece. Operationally, streamlining will help all of us deliver what our customers want when they want it and how they want it. At the same time, McDonald’s has some pretty exciting things on the horizon, which will hopefully be released by next fall. It’s a combination of new products and simplification. I recently went out to Oregon and tested the new products, Chef Crafted Sandwiches, and they’re outstanding. McDonald’s hired Steve Easterbrook as its new CEO in 2015. What are your hopes for his approach to the company? Colleen: One of his priorities is about simplifying the menu but being regionally relevant, and that is so important. Years ago, we all had to have the same item at every single McDonald’s. But we all have different tastes. A Spicy McChicken didn’t go over as well in the Midwest as it did in the South. Steve has helped with simplifying the menu and being relevant to regional flavors.

meet peter...

Keri Solheid and Colleen Van Blarcom | McDonald’s

Peter j.

hemberger attorney at law

+ Commercial Litigation + Agricultural Law + Banking Law + Drainage Law

What characteristics make a great employee? Colleen: Attitude is everything. Keri: Attitude is everything. It either opens your door or closes it. With the right attitude, you find your way through that door. MAY/JUNE 2016

CONNECT Business Magazine

17


Mankato-based Rich Draheim helps make homeownership dreams come true through his real estate business. By Grace Webb Photo by Kris Kathmann

18

CONNECT Business Magazine

MAY/JUNE 2016

There’s a famous scene in the classic 1939 movie “Mr. Smith Goes to Washington” where naïve Senator Jefferson Smith (Jimmy Stewart) starts his filibuster of a corrupt bill that is being pushed through the legislature in order to benefit the political machine pulling strings behind the scenes. While the other 99 senators call for Smith’s arrest based on phony charges, the earnest do-gooder from out West continues pleading with them to have the courage to stand up for convictions that grew hazy somewhere along the road to political success. Even when he’s surrounded by bins of letters calling for his resignation, he keeps going. Swaying from exhaustion, voice hoarse, he promises to fight for the “lost causes” because of one plain, simple rule: “Love thy neighbor.” Rich Draheim is a lot like that. The Mankato native is passionate about helping others, whether it’s through the businesses he has started over the years (a list that takes quite a while to run through), his volunteer efforts or his personal interests. “You look at all the jobs and businesses we’ve started, and they’re all about helping people,” he explained. That work history ranges from earning $3.50 an hour as a kid at the Mankato John Deere dealership to his recent purchase of the New Ulm Event Center. He also owns and operates a Weichert Realtors, Community Group in Mankato, where he delights in helping people achieve their dream of homeownership. That’s not even getting into the fundraisers and nonprofit organizations like the Anthony Ford Pond Hockey event he has helped organize over the years, or his 40-year history with his church. Draheim recently added one more commitment to his already full calendar when he announced he was running for State Senate District 20, going up against Democratic incumbent Kevin Dahle. He explained that he saw this as his way to serve his country and help fellow Minnesotans. He may not be taking on the entire Washington establishment, but Draheim shares Smith’s commitment to integrity, honesty and perseverance—loving every neighbor he meets along the way. Whether he ever makes it to St. Paul or not, he’s still dedicated to helping his fellow man, one person at a time. continued >



Home Sweet Home

“I think that’s why I’ve always started new businesses, because I like the challenge of trying something different. I love to work. My wife and I are both workaholics. I get up every morning excited to come in. If you’re not excited to come in, you shouldn’t be there.” Draheim was born and raised in Mankato. His father worked as a counselor at MSU-Mankato and his mother was a high school art teacher. His neighbor across the street was Ron Kibble of Kibble Equipment, who offered Draheim his first job at age 11, working at the John Deere dealership in Mankato. There, he mostly cleaned bathrooms and washed tractors and combines, earning $3.50 an hour. “I thought I was in heaven,” he said. He attended high school at Mankato East, where he played football, basketball and soccer—but most of his time was spent at the dealership. During the summers, he would head to Bismarck with classmate Steve Kibble to work at the dealership over there.

“When I wasn’t at a sport, I was at work,” he said. “I really enjoyed working for the John Deere dealers. I learned a lot, such as the value of a dollar and the importance of looking at your job like you were the boss and it was your money. A good employee is one that values every penny and sees the big picture. And part of that is sharing with your employees the big picture, and what you’re trying to accomplish. I don’t think everyone does that.” This philosophy helped Draheim quickly advance into different roles at John Deere, from sales to IT to marketing. He continued to work full-time at John Deere while attending college at MSUMankato, where he explored several different fields of study before

Home Sweet Home

Goals and Priorities Here’s a run-down of where Draheim stands on the issues. On education: “I don’t think our education system is working as well as it could. I don’t blame the teachers. They’re handcuffed by all these mandates and regulations, and frankly all kids learn at a different pace. We have a cookie-cutter system for education. People think everybody can fit into this funnel, but I don’t think we can. I also think we need to focus on the vocational and trade schools. All the trades are short of people. We have to be up front with the kids at high school and tell them that any job is honorable. You don’t have to have a 4-year degree with a fancy title to have an honorable job.” On abortion: “I really have a hard time with our state and federal dollars going to Planned Parenthood. The Open Door Health Center here in Mankato does 20

CONNECT Business Magazine

MARCH/APRIL 2016

more good than all the Planned Parenthood clinics in the whole state. I have a hard time with the fact that we spend that many resources out of our hard earned tax dollars to kill babies. I know it’s not a popular political topic. That’s a life. You can’t put one life ahead of the other. You look at all the families that want to adopt, and how long it takes for them to be able to adopt. It’s nine months out of your life—to save someone. Would you give up 6-9 months of your life to save someone else’s life?” On immigration: “A lot of talk is about immigration right now. You might as well be talking about me. My grandpa came over from Germany, so I’m only second generation American. And I have no problem with people coming here, as long as they’re going to work and learn the language. You can value your heritage, but you have to function in our society, and part of that is learning our language and our rules. If you have things that your religion says you can’t do, don’t do them. But don’t expect us to change.” On marijuana and drug testing: “Surprisingly, I’ve been asked quite a bit about drug tests and marijuana.


Weichert Realtors, Community Group | Mankato

settling on industrial and organizational psychology. After graduating in 1994, Draheim continued to work at John Deere, running the parts department and doing “whatever no one else wanted to do.” “I liked that, the challenge of something new,” he said. “I think that’s why I’ve always started new businesses, because I like the challenge of trying something different. I love to work. My wife and I are both workaholics. I get up every morning excited to come in. If you’re not excited to come in, you shouldn’t be there.” Draheim also credits the Kibble family with teaching him part of his work ethic. “They were hardworking, salt-of-the-earth people,” he recalled. “Ron Kibble was very tough but fair, and very loyal to his employees. I learned a lot from Ron.” Altogether, Draheim worked at John Deere for 19 years. He said he had hoped for a long time to own his own dealership, but after crunching the numbers, he realized how difficult that would be. Instead, he decided it was time to move on. “I loved every second at John Deere,” he said. “They were very good to me. I’d do it again in a heartbeat. But there’s something about being your own boss and making your own decisions, reaping the rewards for the effort you put in it.”

SUMMER IS HERE

Summer hours go into effect May 1st and continue until January 3rd. Stay tuned for new menu items!

PICNIC TABLE RENTALS

Experience our outdoor space with picnic table rentals. Enjoy this private space while sipping your favorite Chankaska Wine. A private tasting option is also available. Please email events@chankaskawines.com to reserve your space.

LIVE ENTERTAINMENT

Come enjoy live entertainment every Friday and Saturday night on the tasting patio. Weather permitting. EVENTS@CHANKASKAWINES.COM | 507-931-0089 KASOTA, MN 56050 | WWW.CHANKASKAWINES.COM

I don’t care what people do in their own homes; it’s none of my business or the government’s business. But what bothers me is when I go through these houses and see drug paraphernalia and know folks are getting rent paid for by our tax dollars. We work hard for our dollar, and we’re very generous. I don’t mind helping people that need help. I think we have to. As Christians, we should help everybody. But I have a hard time with helping people that don’t want to help themselves. I think a little tough love goes a long way.” On new taxes: “Any new tax should be voted on by the people of Minnesota. Any specific tax should stay there and not be moved into the general fund. They say, ’Let’s roll it over here to pay for this.’ I’m okay with a dedicated tax for a specific purpose, like education or roads, but only if politicians can’t touch it for something else, like buying a snow machine or remodeling a museum or any other crazy pet project. And if it needs to be reduced, it should be reduced. Politicians are supposed to be working for the people, not the reverse.”

There for you. MAKING DREAMS COME TRUE. Many have trusted MinnStar Bank’s personal service to help them build and grow their businesses—and we can do the same for you.

minnstarbank.com

City Center Mankato • 507-625-6816 Lake Crystal • 507-726-2137 Member FDIC

MAY/JUNE 2016

BUSINESS BANKING

CONNECT Business Magazine

21


AMERICARE MOBILITY VAN INC.

NON-EMERGENCY MEDICAL TRANSPORTATION SERVICE AREA INCLUDES: Mankato, Fairmont, Blue Earth, Madelia, St. Peter, Le Sueur, Waseca plus Northfield, Faribault, Owatonna, Albert Lea, Austin

40+ VEHICLE FLEET

AmeriCare Mobility Van Inc.

Phone: (800) 963-SAFE or (507) 625-6741 Web: amvan.com

Home Sweet Home

Draheim and his wife, Lynnette, decided to find their own business to run, telling their realtor to look for “anything but a bar or restaurant.” But when they heard about Westood Marina on Lake Washington, it felt like a perfect fit, and they ended up buying it in 2001. “Westwood just felt right,” Draheim explained. “What could be better than sitting out at the lake every day?” The Draheims ran Westwood Marina until 2014, hiring about 60 employees every season. Along the way, they also got involved in local real estate, since they came to know the lake area so well. They both went to night school to earn their real estate licenses, after which they worked for a real estate company for a few years. Then, in 2007, they bought into the Weichert real estate franchise, opening an office in Mankato. The office houses 12 independently contracted agents. Draheim mostly focuses on lakefront and rural property, as well as residential lots. According to Draheim, some of the biggest demand for housing in the Mankato area is for one-level living, along with the desire for three-car garages. He said commercial real estate is also in demand, but he is unsure if the commercial wave will continue to swell. “There are a lot of empty spots in strip malls,” he said. “I don’t

Home Sweet Home

Homeownership For Draheim, the best part of his job at Weichert is helping families find new homes—especially since homeownership can be a major factor in everything from net worth to the length of someone’s marriage. “Real estate is the second-biggest decision you make, after who you marry,” he said. “I feel honorable helping someone make a good decision. I like helping people. I like seeing people happy.” Draheim added that it’s particularly important to encourage homeownership today because of the record low rate of homeownership, especially as more elderly people transition out of their homes and more Millennials choose to rent instead of buy. “If you have fewer people working and a whole bunch of people retiring, especially in the rural areas, you don‘t have the population density to fill in for that,” he said.

22

CONNECT Business Magazine

MAY/JUNE 2016


Weichert Realtors, Community Group | Mankato

Home Sweet Home

Skating For A Cause One local cause that’s near and dear to Draheim’s heart is the Anthony Ford Pond Hockey event that he helped organize in 2007 when he was still working at Westwood Marina. The event began in honor of Anthony Ford, a nine-year-old area boy who battled cancer for eighteen months before passing away. Ford loved playing hockey and dreamed of playing in the NHL as the “Next Great One.” After his death, the Anthony Ford Committee was founded to help find a cure for childhood leukemia and help other young hockey players be the “Next Great One.” The committee raises money through two main events: an annual outdoor pond hockey classic and an annual silent auction. The hockey classic started on Lake Washington but moved to Spring Lake Park in North Mankato this year. Since the event was established, it has raised more than $100,000 for pediatric cancer research and youth scholarships for disadvantaged kids through United Way’s Connecting Kids. It also enabled volunteers to construct 12 hockey rinks on Lake Washington. The hope is to fund more hockey programs and equipment in the future, along with someday building an ice arena for youth hockey. “I love helping people,” said Draheim, who admits that he is not a hockey player himself. “[Through our businesses], we were able to donate to a lot of different causes and do right by the community. We try to give back.” Draheim is also involved in the annual Big Bobber ice fishing contest, which raises money for scholarships to MSU-Mankato.

Mankato Transit Maintenance Facility

GOSEWISCH

CONSTRUCTION, INC. General Contracting - Project Management - Design Build

507-625-2634 | www.gosewisch.com MAY/JUNE 2016

CONNECT Business Magazine

23


Home Sweet Home

know if we can continue filling them.” Another issue is housing affordability, which Draheim said can be a problem in the area, especially because of how the college market inflates rent prices. “There are plenty of places to live, but the problem is they’re not

Home Sweet Home

Getting to know you: Jay Weir

Rich Draheim Family: wife Lynnette, kids Lilly (11) and David (7)

Mike Donohoe

The James R. Weir Insurance Agency has merged with Arthur J. Gallagher, one of the worlds largest insurance brokers. We both share the same philosophical commitment that puts our clients first and now we can offer our clients a greater level of specialized insurance and risk management insurance expertise. The merger represents the coming together of two well known companies to better enhance our client relationships.

Arthur J. Gallagher & Co. Phone: 507-387-3433 208 N Broad Street | Mankato, MN 56001 3600 American Blvd. West, Suite 500 Bloomington, MN 55431 24

CONNECT Business Magazine

MAY/JUNE 2016

Education: Bachelor’s degree in business administration from Minnesota State University, Mankato Management style: “I’m a very open book. I’m the guy that lets everyone know what I’m thinking and why, and what the goal is.” Affiliations: National Association of Realtors, past president and current treasurer of the Realtor Association of Southern Minnesota, member of Realtor Association of Minnesota, member of the Minnesota River Builders Association What’s on the bucket list: “I’ve already accomplished most of it. I really don’t have much left except to tour the rest of the states and to serve my country in some way, like in politics.” What would you be doing if not this?: “I would love to run a foundation, if I had Bill Gates money. I’d just focus on my foundation and giving away the money.” Proudest moment: “My kids. All the businesses and all the stuff doesn’t mean anything. They’re fun, and they’re a good way to earn a living. I’m proud of what we did at Westwood and with the real estate company. But the kids are what’s important to me, and I hope that we can teach them how to be good people and have good values.”


Weichert Realtors, Community Group | Mankato

“It seems like the solution that most politicians have for low income housing is to have a fancy building put up that costs two or three times what a normal developer would spend, and then they cut the rent way down to half of what average folks have to pay.” affordable,” he said. “You look at the cost of everything, and it’s gone up. It seems like the solution that most politicians have for low income housing is to have a fancy building put up that costs two or three times what a normal developer would spend, and then they cut the rent way down to half of what average folks have to pay. I’d rather see them do something in smaller towns.” Draheim has started or acquired several other businesses within the past several years, including the New Ulm Event Center, which he bought in 2012 and has put through extensive renovations. The Minnesota Wedding Shop, another business he acquired in 2014, is located inside. Draheim added even more to his already full plate when he decided to run for state senate in the 2016 election. He explained that it wasn’t even on his radar until someone asked him to run,

admitting that he doesn’t like to speak in front of groups. But friends and family finally convinced him to announce a campaign for State Senate District 20, which includes cities such as Northfield, Belle Plaine, Le Sueur and Cleveland. “It’s the frustration,” he said. “We’re trying to do too much for too many people. I think we need to get back to our core values as a state.” For Draheim, those core values include public safety, roads and bridges, and education. Meanwhile, the biggest problems facing Minnesotans, according to him, are excessive taxation and too many regulations. “This building we’re sitting in, it’s like $100,000 a year for property taxes,” he said. “That eliminates a job, since you have to cut back. You only have so big a pie, and if the government is taking 30-40 percent of it, that only leaves 60 percent for everything else. It’s that

Home Sweet Home

Path To St. Paul Once Draheim decided to run for State Senate District 20, he looked for a campaign manager, finding him in Jack Zimmerman. Zimmerman has been greatly involved with the Republican Party and his local Le Sueur County, as well as campaigning for Ted Cruz and other high profile candidates. Draheim also had to report himself to Minnesota’s Campaign Finance and Public Disclosure Board, which requires candidates to register if they raise or spend more than $750 on their campaign. In addition, he reached out to the Republican Party of Minnesota, since he was seeking the party’s official endorsement. Part of that included visiting with the Basic Political Units of the counties within the district: Le Sueur, Scott and Rice. Next came the caucus night and then the district endorsement

convention on April 11. Draheim’s race for senate was a little unusual in that the Republican Party had four candidates for this year’s primary. Usually, only one person decides to run against the incumbent. And as for that incumbent, Kevin Dahle? Draheim said he respects Dahle but thinks he’s removed from the everyday lives most Minnesotans experience. “I think he lives in a different world than most people in my district do,” Draheim said. “When you’re in that government bubble, such as his job at a public school, it’s hard to relate to people who aren’t in that bubble. I’ve created businesses, I’ve started from scratch, I’ve built something… I think it gives you an opinion on what to value. You have to quantify everything when you’re a business person. You have to justify the needs over the wants, cost versus benefit. He’s a very nice man. I just don’t agree with his political positions.” MAY/JUNE 2016

CONNECT Business Magazine

25


Home Sweet Home

“It’s that mentality that some people in government have, that budget doesn’t matter. There’s no accountability. It’s an open credit card. And we can’t sustain it.” mentality that some people in government have, that budget doesn’t matter. There’s no accountability. It’s an open credit card. And we can’t sustain it.” Instead, Draheim recommends taking much of the control out of the state government’s hands and giving it back to local communities. “Every community’s different,” he said. “I don’t care if it’s a John Deere dealership or the government; we have different needs and wants, and to have a blanket policy over everybody, to me, is not very efficient.” One way to do this, according to Draheim, would be to streamline state agencies and cut back on redundancy. He added that this could make it easier for Minnesotans

to start and expand new businesses. “When was the last time that you heard of a state agency that went away or got merged into something else? Hardly ever,” he said. “We need to evaluate what we’re spending money on. You look at all the different agencies that you have to deal with as a small business person. My priority is to streamline the process for them, so that they have a onestop shop that they can log into and have all the forms that they need to fill out.” Another way to cut back on state control would be to stop funding so many projects, Draheim continued. “The problem isn’t that we don’t tax enough,” he said. “It’s that we waste too much. We don’t focus back on what’s

FIRE UP

THE GRI With Schmidt’s Award Winning Brats and Wieners. • Steaks • Burgers

• Chops • Chicken

Downtown Nicollet • (507) 232-3438 • schmidtsmeatmarket.com 26

CONNECT Business Magazine

MAY/JUNE 2016

important for the average Minnesotan. We try to keep everybody happy. We have to reevaluate our values as a state so that we can keep our spending under control, which will keep the taxes under control. In almost every aspect of our lives, our taxes have gone up, yet our debt has gone up as a nation and as a state. We waste money on stupid pet projects. In this year’s spring bonding bill, there was a request for a snow making machine in St Paul. You ask the majority of Minnesotans if that’s a priority, and they’ll say no. There’s a museum remodel for $10 million for a town of 2,800. Is that a priority? No. It’s the same with sports. I love sports, but as a state, is it really our priority to fund these professional teams? Or even at the college level, like spending $31 million adding onto the Civic Center. I support the team 1,000 percent, but is that a priority? Are we that sad of a society that we have to have the government subsidize our entertainment?” Draheim went on to say that these taxes and regulations can be a big problem when it comes to attracting new businesses to the state. “You talk to most corporate people about why they come to Minnesota, and it’s because of the standard of living and the good work force: well educated with a good work ethic,” he explained. “What has happened to the work ethic in the last decade? It’s gone down. What’s happened to the cost of doing business here? It’s skyrocketed. We’re going to have a deficit of workers within the next 10-15 years. So why would you come to Minnesota to do business if education isn’t what it used to be, standard of living isn’t what it used to be, taxes are some of the highest in the country and you can’t find the workforce? We have one of the best states in the country. I wouldn’t live anywhere else. But we need to control our taxes.” Since starting his campaign last year, Draheim worked to meet with constituents across the district and also talk with


Weichert Realtors | Mankato

THE ESSENTIALS

Weichert Realtors, Community Group Phone: (507) 345-1111 Address: 300 St. Andrews Drive Mankato, Minnesota Website: weichert.com

Complete Plumbing & Heating Services ■ Residential ■ Commercial ■ Remodel Kylian Wassman Mankato, MN Office: 507-720-6563 Email: wassmanplumbing@gmail.com

wassmanplumbing.com

PC 687877

past delegates. “You meet with a lot of people,” he said. “It’s such a diverse district. Every community is different, and that’s part of the challenge. Not everyone wants to hear what I have to say. I’m pretty blunt. But I told myself when I decided to run that I wasn’t going to change what I believed in. It’s not that I won’t listen or compromise, but I’m not going to change what I’m saying just because I think you’re not going to like it. I’m going to be straight forward and call a spade a spade.”

“A lot of people say, ‘Rich, you’re kidding yourself.’ But that doesn’t mean you give up. It doesn’t mean you don’t try.” Draheim said the biggest challenge has been juggling all his other commitments as he works on his campaign. “There were two things that I said when I was going to run,” he recalled. “One: that I wouldn’t change what I was saying or who I was. And two: I wasn’t going to stop going to the kids’ events. My biggest regret is that I don’t have enough hours. I thought I’d have more time than I did. But I’m not going to apologize for spending time with my kids.” Draheim was chosen as the official Republican candidate at the party’s regional endorsement convention on April 11. Now comes the long road to the November elections. And if he’s elected on Nov. 8? “I have this grand idea of going up there and making a difference,” he said. “A lot of people say, ‘Rich, you’re kidding yourself.’ But that doesn’t mean you give up. It doesn’t mean you don’t try.”

RESIDENTIAL | CONSUMER | COMMERCIAL | AGRICULTURAL

Commercial Banking from a Name You Trust Welcome Cory Abels as our St. Peter Market President

1-800-944-5869 | wellsfederal.com St. Peter: 1618 S. Minnesota Avenue | 931-6100 Equal Housing Lender – Member FDIC

WELLS | BLUE EARTH | MANKATO | FAIRMONT | ALBERT LEA | ST. PETER | MINNESOTA LAKE | OWATONNA | ST. JAMES MAY/JUNE 2016

CONNECT Business Magazine

27


GRACE NOTES

“Hey, Grace, I can see our house from here!” I craned my neck to look over my sister’s shoulder and out the window of the cramped Cessna Super van 900. Sure enough, as we hovered 13,000 feet above the ground, I could faintly make out my parents’ farm Grace A. Webb tucked into the green Editor hills of western Wisconsin. It was a comforting sight during a rather uncomfortable ride—a ride that was about to abruptly end as soon as my sister, my dad and I hurled ourselves out of a perfectly good airplane to celebrate my dad’s 50th birthday. Skydiving has been on my bucket list for years. (It wasn’t top of the list; that would be shark diving in Africa. I have yet to fulfill that dream.) When my dad suggested going in late 2015, I agreed without a second thought. I’ve always been a bit of an adrenaline junkie, bridge jumping and zip-lining over gorges. This was going to be beyond exciting. Yet, as the day drew closer, the excitement got mixed in with a hefty dose of nerves. Growing up, I refused to even ride the Power Tower at Valley Fair. How on earth could I force myself out of a plane for a 60-second free fall? What if my chute didn’t open? What if I chickened out at the last minute, and had to take the ride of shame back to the airfield? The extended safety video warning us that we could die, along with the thick packet of liability forms we had to sign, did nothing to soothe my fears. But as they opened the plane’s doors and the first diver rolled out into the open air, I found myself surprisingly calm. I’m sure part of it was the adrenaline, but part of it 28

CONNECT Business Magazine

MAY/JUNE 2016

was just my decision to enjoy this experience. “You can do this, and you are going to do this,” I told myself. Seconds later, my tandem instructor and I shuffled our way out to the opening, and I looked down into a sea of space. Then we were out, hurtling toward the earth in a minute of free-fall that is the closest to flying I’ll probably ever be. And honestly, it wasn’t scary at all. It was wonderful. It was like nothing I’ve ever experienced. The closest I could describe it was the way it feels to ride my motorcycle, but a hundred times better. There’s such a sense of freedom, of complete relaxation, of totally letting go. Sometimes, you’ve just got to jump. When it comes down to it, life is a series of continual risks, and it’s up to you to choose whether to take them. It’s not always smart to dive in whole-heartedly, but sometimes it is. Sometimes, you won’t even know if it’s smart until after you do it. The trick is weighing the risk with the possible reward—and having the guts to go for it if it’s worth it. I know all about risks—of leaping out of my comfort zone and hoping that I planned my landing well enough to catch me. There was the time my sister and I bought plane tickets to Europe and showed up for two months of backpacking without having any clue what we were doing. There was a semester studying in Ecuador, even though I feared my Spanish was not nearly good enough to get me through daily life, let alone an internship at the city newspaper down there. Even taking this job was a risk, one that I decided to tackle even though I had no business experience and had never run a publication before. And now, for the past several months, I’ve begun preparing to take the biggest risk I’ve ever faced: joining the U.S. Marine Corps. If you read my November 2015 column, you know that I come from a military family. My dad was a Marine, and my grandfather was in the Army. I’ve grown up with their same love for my country, for the freedoms and rights that we are blessed with. Here, we can say what we want, worship whom we want and be who we want. Ours is a country like no other in the world, and it needs to be protected.

I have always admired those who served our country, but for a long time, I didn’t think that could be me. Everything I knew about the military was filtered through my dad’s Marine Corps stories, and those were about rough-and-tumble men who could run fifteen miles with eighty pounds on their backs. What use would they have of me, a scrawny girl who enjoyed studying English? I figured I could do the next best thing and find a way to report on the military and veterans. But, while I was studying at MSUMankato, a friend of mine dragged me to the Marine Corps recruiter’s office in the Riverhills Mall. She wanted to join, but she was too nervous to go alone. After we talked to the recruiter, my friend ended up losing interest—but I didn’t. It turned out, you didn’t need to be able to repair a tank or navigate a submarine to serve. There were all sorts of positions, and some of them—such as public affairs and intelligence—were surprisingly up my alley. Since then, I’ve been slowly but surely working on applying for a commission. There were a few detours as I studied abroad, took time off after graduation for an extended mission trip and started my career at my first full-time job. It also took me a while to settle on which branch I actually wanted to join. Honestly, the Marine Corps was my last choice. “If I ever manage to join the military,” I said countless times, “it won’t be the Marine Corps. They are the best of the best, but they’re too intense for me.” That all changed in December 2015. I had been working with the Army, but they were having some complications because of my medical history, so I thought I should at least do some research (I am a journalist, after all) and see if another branch would have an easier time. I went back to the Marine Corps recruiter in the Riverhills Mall, who spent two hours that day and four hours the next day talking with me. He only oversaw the enlisted side of things, so he had an officer drive all the way down from Fargo to talk with me about commissioning as an officer. I was grateful for how much time they both spent with me, explaining the program and what I would need to get in. It felt like they actually cared


about me and were invested in my success. Slowly, I began to think that maybe I was good enough for the Marines. Maybe I did have the grit I needed to get through the program. Maybe I could be part of the few and the proud. From there, things sort of snowballed. They invited me to work out with their ROTC candidates at MSU every morning, so I started going to those PT sessions. Now that was intimidating: showing up for a Marine Corps workout session alongside candidates who had been in the program for months and who already were in peak physical shape. I’ve never even been on a sports team. I was last in everything, and I was pretty sure I was going to pass out after the first day. But I kept coming. I’m still last, but I’m getting better—and that’s all they care about. In February, we took things even farther by attending a practice drill event up in Fargo. We drove up on a Friday night and stayed all day Saturday, learning and training with about 40 other Marine Corps candidates. Most of that training consisted of far too much running, including a section when they strapped us into 30-pound packs, slung fake rifles over our shoulders and had us slither through the snow to attack an “enemy outpost.” We were covered in mud, sweat and grime by the time we climbed back into the van for the sixhour ride home, so exhausted most of us fell asleep immediately, but we fell asleep mighty proud of ourselves. By the time you read this, I’ll have completed a weekend-long mini-OCS (Officer Candidate School) event, complete with screaming staff sergeants and disgusting MRE’s (Meals Ready to Eat). After that, the next big thing is the actual Commissioning Board, which meets in July. If they accept me, I’ll ship out to OCS in September and graduate in November—if I make it through. That’s a question I still ask myself, sometimes daily: Will I make it through? OCS is 10 weeks of some of the hardest tests you will ever have to do. There will be 12-mile hikes, obstacle courses and a 3.5-mile combat simulation course. There will be early mornings, late nights, and precious little sleep for long stretches of

time. There will be stress levels that make my bi-monthly worries about magazine deadlines look like child’s play. In other words, I know without a doubt it will be the most challenging thing I’ve ever attempted. And, between you and me, I don’t know if I’ll make it through. I think I will. I think I’ll dig deep within myself and find that well of determination that has served me all the other times I was facing a seemingly impossible obstacle. I think I’ll be able to grit my teeth and tell myself, “Just one more mile. Just one more mile. You can make it just one more mile,” ten miles in a row. I think I’ll be able to keep getting up every time I fall down. I think so, but I don’t know it. And honestly, I don’t think I can know it with 100 percent certainty. I don’t know what it’s going to be like, not with firsthand knowledge. I don’t have other really similar experiences to compare it to. I might fail spectacularly. I might wash out of OCS and have to face everyone who knew what I was trying to do—and how, in the end, I couldn’t do it. I’m not going to lie—it’s scary. But I can’t let that stop me. For me, the reward if I succeed—the ability to serve my country with some of the finest men and women in the world—is far greater than the risk of failing. I don’t know if I’ll make it, but I have to try. Sometimes, you’ve just got to jump.

Commercial Industrial Architectural Sheet Metal

AWARD

WINNING ROOFERS SINCE 1977 New Roof & Reroof Repair & Maintenance Commercial Roof Snow Removal 24-Hour Emergency Service

507-388-4112 info@katoroofing.com

katoroofing.com

MAY/JUNE 2016

CONNECT Business Magazine

29


CONNECTING BACK

5 YEARS AGO

MAY/JUNE 2011 Our cover story was Doug Anderson, owner of North Mankato’s Best Western, as well as Mankato’s City Center Hotel and Holiday Inn Express. Profiled companies included Jones Metal Products and Russell Associates. Great quote from Anderson about weighing the costs of adding extras to your business plan: “In the hotel business, when you start adding a restaurant, bar and meeting rooms, what you are really doing is trying to enhance the sleeping room business. Typically, rooms are the cash cow of the business, and the rest is an amenity—that sometimes can cost you money.” 10 YEARS AGO

MAY/JUNE 2006 Bob Christensen, owner of $550 million Christensen Farms in Sleepy Eye, was our cover story. Profiled companies were JB Lures in Winthrop and Nu-Chuck Prep in Elysian. One good quote from Christensen about what characteristics in employees raise red flags: “What hits my radar screen strongest is seeing someone settle for less than what is possible. You’re not always going to hit the 100 percent mark, but effort is most important.” 15 YEARS AGO

MAY/JUNE 2001

“Contact me today to bring exposure to your organization by advertising with Connect.”

– Beth Benzkofer Kozitza Sales Manager

sales@connectbiz.com www.connectbiz.com/advertise

30

CONNECT Business Magazine

MAY/JUNE 2016

Our cover story featured Z. Sam Gault, owner of Nicollet County Bank in St. Peter. A secondary story featured Pat Loonan, executive vice president at State Bank in Easton. Profiled companies included the Faribault Sentinel in Faribault and Y Barbers in Mankato. 20 YEARS AGO

MAY/JUNE 1996 This issue didn’t feature a cover person— that didn’t begin until later—but focused on issues of quality assurance facing the business industry. Profiled businesses were Blue Earth Research in Mankato and It Takes Two in Le Sueur.

Read the entire articles at connectbiz.com


#EIDELIKE I’D LIKE A BUSINESS ADVISOR WHO UNDERSTANDS MY INDUSTRY

Feel Confident in Your Business Decisions As a manufacturer, the ability to predict your outcomes is critical to your business, and it takes intimate knowledge of your process to do that. Eide Bailly understands this because we’ve been serving manufacturers for 90 years. And as a top 25 CPA firm in the nation, we have expertise and solutions that go well beyond tax and audit to help you reach the goals you’ve set for your business. Whether it’s upgrading your technology, filing for R&D tax credits or planning for succession, we can connect you to the resources you need, when you need them.

Experience the Eide Bailly Difference. 507.387.6031 w w w.eid eb aill y.com/manuf a c t urers


Minnesota State Mankato Strategic Partnership Series

Minnesota State Mankato alumna and president of S-T Industries, Margaret A. Smith, is flanked by Andrew Spang and Brandon Svobda, both design engineers with Automotive and Manufacturing Engineering Technology degrees from Minnesota State Mankato.

S-T Industries Offers Real-World Experience to Local Students 32

CONNECT Business Magazine

MARCH/APRIL 2016


SPONSORED BY: PRESENTED BY:

W

hen learning about the principles of automotive and manufacturing engineering, many college students have to be content to read textbooks and watch Power Point presentations, since not many universities can afford all the pricey machines future engineers will someday utilize. But MSU-Mankato students in the Department of Automotive and Manufacturing Engineering Technology recently received a unique opportunity thanks to St. James-based S-T Industries. S-T Industries manufactures a variety of video inspection professors from the engineering department were when it came systems, optical comparators, micrometers and other precision to figuring out the best way to give students practical handsmeasuring tools, with many of its customers coming from the on opportunities. medical device industry. It also services the automotive, aerospace, “That program is so open and willing, so from a business oil, plastics and general manufacturing industries, among side, it’s fun to work with them,” Spang said. “The professors are others, with customers from more than 30 countries across the so excited about what they do, and that carries over to what world. The company, which employees about 50 people, was you’re learning. If the professors are excited, the students are established in 1983 when a group of local investors purchased a too. The program has done such a fantastic job of developing portion of a company that started in early 1940s. this practical curriculum, and we’re really excited to be able to In March, S-T Industries donated a video inspection system to give them a piece of equipment they can use.” the university to help students explore metrology, the scientific Vice President of Sales Grant Lillevold pointed out that many study of measurement, which is used for everything from manuengineering students study computer-aided design (CAD), facturing bottle caps to improving car performance. Students but not many have the chance to study metrology, so MSU’s will be able to use the S-T 8700 video inspection system for program offers a great way to make students marketable by the product validation using video interpretation, an important part time they graduate. of quality assurance programs in the world of manufacturing. “To go into a company with that skill to start with ought to The S-T 8700 video inspection system is an in-kind gift that get you a job right away,” he said. “There’s a lot of programs out was suggested by Andrew Spang, an engineer at S-T Industries and a graduate of the same engineering program at MSU. “When I was in school there, we had a really positive relationship with a lot of local companies that provided a lot of support for the research projects we were doing,” Spang explained. “I go back to the school regularly to talk to professors and students, and I heard about how they were working to develop metrology curriculum. That’s so perfect for us. It’s what we do. It was a really good fit for us as a local company that provides this equipment, to give them an opportunity to work with that equipment in a hands-on way.” Fellow MSU alumna Margaret Smith, president and CFO of S-T Industries, agreed, adding, “It gives the students the opportunity to use a piece of equipment that they may face using when they go into a job. They’ll be able to say, ‘I know how to use that.’” Both Smith and Spang praised MSU’s Minnesota State Mankato faculty member Winston Sealy (left) and S-T Industries, Inc. President Margaret open collaboration, mentioning how helpful Smith display the S-T 8700 video inspection system donated by S-T Industries to Minnesota State Mankato.

“That program is so open and willing, so from a business side, it’s fun to work with them.”

MAY/JUNE 2016

CONNECT Business Magazine

33


SPONSORED BY:

there that aren’t marketable, degrees that people don’t want, but this is one that people will want and continue to need.” Many of the students who do delve into that field end up staying in the area, Spang pointed out, such as the MSU grads who come to work at S-T Industries. The company also recently hired an MSU student, Melissa Ryan, as a part-time employee to offer her experience in her field before graduating. The “internship” ran from January to April, with Ryan coming to work for four hours a day, three days a week. While at work, she was able to perform real-world activities such as creating and revising parts, as well as working with 3D computer-aided design software. “Sometimes, it’s hard to fit an intern into a program, because it takes so much of your time to spend with them that you’re both not productive,” Lillevold said. “But it worked out very well for us. She hit the ground running and was able to do something productive.”

“But it worked out very well for us. She hit the ground running and was able to do something productive.” “It gave her an opportunity to see the application of what she learned in school and how that actually gets implemented in a business,” Spang added. “It’s been a really positive experience for everybody involved.” Ryan said the professors in the Automotive and Manufacturing Engineering Technology program recommended her to the folks at S-T Industries, who were impressed by her work ethic and offered her the opportunity. She said the partnership has been a good fit for everyone. “I appreciate the friendly and helpful employees here,” she said. “Anyone is willing to help and teach me about things that I am working on, or things that are made here. I feel like I’m part of the family.” She also had great things to say about her time at MSU. “The Automotive and Manufacturing Engineering Technology program at MSU is a great program,” Ryan said. “I love it. The professors are very friendly and helpful, and they care about you as a person. I like the style of teaching because there is a lot of hands-on learning.” Ryan will complete another internship this summer and plans to graduate in the spring of 2017. She said she hopes to work for S-T Industries again once the fall semester starts. 34

CONNECT Business Magazine

MAY/JUNE 2016

#EIDELIKE I’D LIKE A BUSINESS ADVISOR WHO UNDERSTANDS MY INDUSTRY

Expect More From Your CPA Firm Services for Manufacturers and Distributors • Operation and Process Improvement • Strategic Planning • Business Valuation • Fraud Prevention and Detection • R&D Tax Credits • Estate and Succession Planning • Technology Consulting • And More Experience the Eide Bailly difference. • 90 years experience in the manufacturing industry • More than 1,400 manufacturing and distribution clients • High level of partner and manager involvement

Experience the Eide Bailly Difference. Contact us or visit our website to learn more.

507.387.6031 w w w.eid eb aill y.com/manuf a c t urers


NATIONAL OPINION

When you think of the United States as being free, what comes to mind? The ability to speak your mind? To vote? To live and work where you please? Good answers, but there’s another kind of liberty that’s easily overlooked, although it affects nearly everyEdwin J. Feulner thing we do. I’m talking about economic freedom. How free are we to earn without being overtaxed and overregulated? How complicated is it to start a business and keep it running? Does our government spend too much? Can we trade freely with other countries? Such questions may not leap to mind when we evaluate how free we are, but they should. They affect numerous aspects of our daily lives — from how much money we make and what kind of work we do, to

how high prices and unemployment are and even what kind of appliances we can buy. So how economically free are we? And where do we stand in relation to the world? Every year, the Heritage Foundation and The Wall Street Journal release a countryby-country policy guide known as the Index of Economic Freedom. And the 2016 Index shows that our global ranking is No. 11, with a score of 75.4 (on a 0-100 scale, with 100 being the freest). Others might envy being No. 11 on a list of 178 countries, but we tend to hold ourselves to a higher standard. We’re trailing Hong Kong, Singapore, New Zealand, Switzerland, Australia, Canada, Chile, Ireland, Estonia and the United Kingdom. We’re not even the freest economy in North America. As recently as 2008, the United States ranked seventh worldwide, had a score

of 81, and was listed as a “free” economy (a score of at least 80). Today, its score of 75.4 — which matches its lowest score ever — means it’s “mostly free,” the Index’s second-tier economic freedom category. Before looking at why, let’s consider how the index editors determine the scores. Each country is evaluated in four broad areas: Rule of Law: Are property rights protected through an effective and honest judicial system? How widespread is corruption — bribery, extortion, graft and the like? Limited government: Are taxes high or low? Is government spending kept under control, or is it growing unchecked? Regulatory efficiency: Are businesses able to operate without burdensome and redundant regulations? Are individuals able to work where and how much they want?

Such questions may not leap to mind when we evaluate how free we are, but they should. They affect numerous aspects of our daily lives — from how much money we make and what kind of work we do, to how high prices and unemployment are and even what kind of appliances we can buy.

MAY/JUNE 2016

CONNECT Business Magazine

35


NATIONAL OPINION

Insurance strategies, like children, continually grow and change. At B&B we always strive to stay ahead of these changes, making sure your plan meets your evolving needs at the best possible price.

Contact us today for a free quote: (507) 388-2010

Lora McCollum Ph (507) 344-4515 lmccollum@bbmankato.com

530 West Pleasant St. Mankato, MN 56001 www.brownmn.com

Your local independent agency representing

Tim Schwartz Ph (507) 344-4507 tschwartz@bbmankato.com

Is inflation in check? Are prices stable? Open markets: Can goods be traded freely? Are there tariffs, quota or other restrictions? Can individuals invest their money where and how they see fit? Is there an open banking environment that encourages competition? How is the U.S. doing on these measures? Let’s see: ■ Rule of law: Property rights are guaranteed and the judiciary functions independently and predictably. But the protection of these rights has been uneven. Polls show that public trust in government is at the lowest it has been in a decade. ■ Government size: The top individual income tax rate is 39.6 percent. The top corporate tax rate is among the world’s highest: 35 percent. Total government spending amounts to about 39 percent of gross domestic product. That’s $29,867 per household. The national debt clocks in at a staggering $135,000 per taxpaying family. ■ Regulatory efficiency: The regulatory burden continues to increase. More than 180 new major federal regulations have been imposed on business operations since early 2009 with estimated annual costs of nearly $80 billion. ■ Open markets: The average tariff rate is 1.5 percent. High tariffs increase the price of clothing, sugar imports are restricted, and foreign investment in some sectors is capped. So is the United States destined to continue this slow decline? No. We can change course. “Restoring economic freedom is prerequisite to revitalizing and brightening America’s future,” writes index editor Anthony Kim. “2016 is the year to reaffirm the principles of limited government, free enterprise, and rule of law so that we can reconstitute an America where freedom, opportunity, and prosperity flourish.” Edwin J. Fuelner, PhD is one of the founders of the Heritage Foundation and the chairman of the Asian Studies Center.

36

CONNECT Business Magazine

MAY/JUNE 2016


BULLETIN BOARD

Local Chamber & Economic Development News

Any chamber of commerce, convention and visitors bureau, or economic development organization in our reading area—large or small, from Amboy to Winnebago—can post on our free bulletin board. For details, email editor@connectbiz.com.

Award.” We are so fortunate here in B.E.-utiful Blue Earth to have giants of all types! We are also proud of the support of 33 new Chamber Members, totaling 163 members for 2015-2016. GIANT!

Mankato Julie Nelson, Small Business Development Center

The SBDC is thrilled to announce that our nominee, The Coffee Hag in Mankato, has been named Women-Owned Small Business of the Year by the U.S. Small Business Administration (SBA) Minnesota District Office. Owner Jenn Melby-Kelley and her team have built an iconic business that promotes diversity, inclusion and community, as well as art and music. The Coffee Hag will be honored at the SBA Small Business Week Awards Program on May 4.

Blue Earth Cindy Lyon, Blue Earth Area Chamber

The Blue Earth Area Chamber celebrated its 75th anniversary at the Annual Banquet. 2016 Honorees were Kibble Equipment (KEI) and its manager Craig Krysan as “Business of the Year,” and Lillian Robinson, who was awarded the “Community Service

Fairmont Stephanie Busiahn, Fairmont CVB

Summer fun is just around the corner! Get out on the Fairmont lakes and participate in the Lakes Foundation Fishing Tournament on May 14. Have some fun on the outdoor patio at Green Mill of Fairmont with the country band, Slamabama! Don’t forget to take in Fairmont’s popular community festival, Interlaken Heritage Days, from June 10-12. Make sure to sign up and participate in the Fairmont Triathlon and Duathlon on June 11.

Gaylord Amy Newsom, Economic Development Authority

The Gaylord EDA offers down payment assistance to homebuyers who buy a new and existing home that exist on permanent foundations within the City of Gaylord. If an applicant qualifies for this program, the loan amount awarded under this program will be equal to up to 5 percent of purchase price for the home, but not to exceed $10,000. For more information, contact Amy Newsom at (507) 237-2338 or anewsom@exploregaylord.org.

Henderson Jeff Steinborn, City of Henderson

Henderson Cycle Works and the Henderson Healing Hub are new businesses located on Main Street. Garage Sale Days take place May 6-7. The Henderson Classic Car Roll In begins May 17. Come early for good parking. World renowned Sauerkraut Days takes

Strategic Partnership Series SPONSORED BY: Connect Business Magazine, Radio Mankato and Minnesota State Mankato are partnering to promote southern Minnesota partnerships between businesses and organizations with MSU students and faculty. The goal is to highlight various industries to show the breadth of businesses in the region and how higher education is helping advance them.

PRESENTED BY:

Promoting strategic partnerships in Southern Minnesota MAY/JUNE 2016

CONNECT Business Magazine

37


BULLETIN BOARD

pull, bean bag tournament, car show and lots of food! Finally, the Crystal Waters Project will host music, food and the boat parade at Robinson Park.

Waseca

Madelia Karla Angus, Madelia Chamber

Kim Foels, Waseca Area Chamber

The Minnesota Deed site has a new cost of living tool that provides a yearly estimate of the basic-needs cost of living in MN. The site displays Waseca County as affordable in many areas, which you can see here: http://mn.gov/deed/data/data/data-tools/col/. What makes Waseca County attractive is its small-town feel, contentment among residents, great schools and quality of life. For information on events in the Waseca area, check out www.wasecachamber.com.

place June 24-26. The City of Henderson has completed a major update to its City Comprehensive Plan. For more information, call (507) 248-3234 or visit www.hendersonmn.com.

Lake Crystal Julie Reed, Lake Crystal Chamber

Plans are underway for the upcoming “Lake Days” Celebration (formerly Duck Days) on June 17-19. The “Battle of the Bands” competition parade features 12 Minnesota Marching Bands on June 17. Stay for the fireworks at dusk and entertainment in the beer garden. Saturday offers the Lake Crystal Area Recreation Center’s 5th Annual “Duathlon,” with turtle races, kids’ inflatables, a pedal

The community of Madelia is working diligently to recover from the fire that took place on Feb. 3. We can’t say “Thank you” enough for the overwhelming support as we move forward to rebuild. Madelia’s Park Days Celebration will be held on July 8-10 with a grand parade, entertainment, fireworks, a Blues Festival featuring six bands, Rivers Edge Art & More Fair, 5K Run/Walk, giant inflatables, carnival games, tournaments, food vendors, beer wagon and events for all ages. Visit www.visitmadelia.com for more information.

Mankato Jonathan Zierdt, Greater Mankato Growth

Greater Mankato Growth, Inc. is proud to announce the 13th annual Songs on the Lawn. This is a community event for co-workers, families and friends to enjoy live music, entertainment, activities and food. Attendees may purchase lunch sold by a variety of local vendors. Join us for this free event every Thursday in June from 11 a.m. to 1 p.m. at the Civic Center Plaza in Mankato. To learn more, visit greatermankato.com/songs-lawn.

New Ulm Sarah Warmka, New Ulm CVB

The New Ulm Area Chamber of Commerce welcomes these new Chamber Members: Bruce Fenske, New Ulm Baseball Association, Total Lawn Care, NU Current Electric, Rice Home Medical, Bellaforma and Fischer Law, PA. In April, the Chamber hosted the Career Expo, Home Show, Spring Boutique Week and Spring Tourism Roundtable. The Chamber will again host Leadercast on May 6. New Ulm attractions will begin their summer hours Memorial Day weekend.

Fifteen Offices Proudly Serving the Upper Midwest Civil and Municipal Engineering Water and Wastewater Engineering Traffic and Transportation Engineering Structural Engineering Aviation Planning and Engineering Water Resources Engineering Coatings Inspection Services Landscape Architecture Services Funding Assistance Surveying and Mapping www.bolton-menk.com 38

CONNECT Business Magazine

MAY/JUNE 2016


Local Chamber & Economic Development News

Nicollet Alesia Slater, Nicollet Chamber

Happy Spring! Please use caution as the Highway 14 construction continues. Follow all the construction updates at nicollet.org. Nicollet’s citywide clean-up day is May 7. The Memorial Day Service in the city park is at 11 a.m. on May 30. June 17-19 is Friendship Days. An all-school reunion is being held on June 18 to mark Nicollet Public School’s 100th Anniversary. Visit nicollet.org for more information.

Sleepy Eye Trista Barka, Sleepy Eye Chamber

The 2016 Miss Sleepy Eye coronation was held April 9, and the three ladies crowned will represent Sleepy Eye at area parades and Chamber events.

Springfield Marlys Vanderwerf, Springfield Chamber

Springfield is hosting Riverside Days June 23-26. The annual celebration will include the Medallion Hunt, Over 60’s band concert and ice cream social, “Kids Party in the Park,” a parade, a dance, a 5K run/walk, classic car show, Kids’ Fishing Derby, bean bag tournament, Springfield Sings contest, Pork Chop Feed and Sunday Pancakes in the Park. Visit the Chamber website at springfieldmnchamber.org for additional information.

St. James Jamie Scheffer, St. James EDA

The City of St. James is excited to announce that demolition is underway on our old hospital building, which was funded by the State Department of Employment and Economic Development’s (DEED) demolition loan program. In addition, we are excited to welcome two new businesses to town: Centro Nic Appliance Repair and Plaza Jalisco Mexican Grill, both on Main Street. Stop by for a visit!

St. James Jennie Firchau, St. James CVB

Work has begun on the Watonwan County Walk/Bike Trail. The 41st Annual Pioneer Railroad Days will take place June 23-26. Events

include the Rail Run, the St. James Community Golf Invitational and the Big Parade. 2015 Business of the Year, Encore Coffee Café, was asked to provide muffins and scones to Amy Klobuchar’s Washington office in February. New St. James Chamber members include The Harder Agency/Andy Swanson, Collectibles and Thrift, and Brian McCabe Agency.

St. Peter Ed Lee, St. Peter Chamber

Planning is well underway for the St. Peter Old-Fashioned Fourth of July Parade and Picnic in the Park. Several marching bands, including the Govenaires and St. Peter High School Marching Saints, will grace the parade as will the Schell’s Hobo Band, and Gerry Buse singing with his horse trolley. The picnic in Minnesota Square Park will offer a variety of food options, music by the band Holdout and a free inflatable obstacle course for kids.

Region Nine Nicole Griensewic Mickelson, Dev. Com.

New Ulm (SMB-NU) will present “Social Media: Your Brand Strategy” by Otto Media Group on May 27. SMB-NU brings together social media practitioners and enthusiasts for mornings of sharing and learning about all things social media. Have breakfast with us from 7:30–8:30 a.m. at the Best Western Plus in New Ulm. Visit smbnewulm.com to register and learn more about this free event. SMB-NU is made possible through support of Region Nine and other local partners.

Winnebago Chris Ziegler, City of Winnebago

Winnebago will be hosting “Bago Fun Fest” June 17-19. Headlined on Saturday by the 5th Annual Craft Brew Fest and on Sunday by the Classic Car Show and Shine, the weekend will be a blast with events for all ages. For the full schedule, visit the city’s website at bagofunfest.org, or its Facebook page, City of Winnebago.

Thank You Greater Mankato. Proud to Serve You.

T

H A N K

Y

O U

www.cbfg.net #CBthanksyou

TOP PRODUCING BANK

MAY/JUNE 2016

CONNECT Business Magazine

39


PRESS RELEASES

INSULATION To submit a press release for publication:

greener world solutions 855-612-8038 • Waseca, MN

www.greenerworldsolutions.com

www.jetterclean.com Roots

I CE

Grease

Video Insn pection

507

Web Site

Coupons

345-3149

Email: editor@connectbiz.com Fax: 507-232-3373

Fairmont

Madelia

From the Chamber: Mayo Health Clinic System, Fairmont was recently awarded the 2015 Large Business of the Year, while Cup N’ Saucer won the Rising Star 2015 Business of the Year as well as the 2015 Small Business of the Year.

From the Chamber: new members include ARR Contraction-Adam Reinhart, Elite Electrical Innovations- Josh Henry, HMR Excavating–Bill McMullen, Madelia Ministerial Association, Tom & Joanne McCabe, Reihs Farms, Trinity Lutheran Church, Sunde Olson Kircher Zender, VanessaLyn Photograhy & Design and Dennis and Pat Wanek. The Madelia Community Hospital Foundation Board of Directors recently named Bruce Taylor as the new Foundation Executive Director for the Madelia Community Hospital & Clinic (MCHC).

Gaylord Gaylord is hosting Gaylord Dog Days of Spring on May 4 with shopping specials and the first-ever Gaylord Doggie Parade at 7 p.m. The first 25 registrations get a free T-shirt. There will also be a gift package giveaway from the Gaylord Area Chamber business members that evening.

Lake Crystal From the Chamber: new members include Collis “C” Store, Buss Brothers Productions and Sisterhood Inspirations Boutique.

Kasota Chankaska Creek and Winery recently promoted Nick Paterson to MN Distribution Sales Manager.

SIGN REPAIR Exterior commercial signs need repair? Lights out? Faces cracked? Poles need paint? We can help! We come with ladders, boom trucks, parts, paint and lots of experience!

EXCEPTIONAL PRICES, GIANT SELECTION FREE DELIVERY Furniture, Flooring, Window Treatments, Design Service and More! Downtown New Ulm • 16 North German Street

507-354-2716 • www.newulmfurniture.com

40

CONNECT Business Magazine

MAY/JUNE 2016

507.345.4274 signguy@charter.net

Mankato Marco was recently named the recipient of the 2016 BOLD Award in the Middle Market Category, presented by the Minnesota Chapter of the Association for Corporate Growth. Marco was also recently named the winner of two 2016 Perfect Image Awards by imageSource Magazine in the categories of Dealer of the Year and Outstanding Leadership in Customer Engagement. Marco was also recently awarded the 2016 Community Impact Award in the category of Long-Term Achievement, presented by Minnesota Business magazine.


Marco was recently named the recipient of the 2016 100 Best Companies to Work For Award, presented by Minnesota Business magazine. Marco recently announced the addition of a new Enterprise Network Team focused exclusively on providing business enablement technology solutions to enterprise businesses. Christopher Cousins of Connect Real Estate Group recently completed the Graduate of the Realtor Institute Designation Category, presented by the Minnesota Chapter of the Association for Corporate Growth. Title Resources, LLC, a full-service title company owned by Gislason & Hunter LLP, recently acquired Lamm, Nelson & Cich. The operations of Lamm, Nelson & Cich will be immediately merged into Title Resources, with Dick Nelson and Joel Cich also joining Gislason & Hunter LLP as Of Counsel Attorneys focusing on Real Estate Issues.

MANKATO

Consolidated Communications The Consolidated Communications Community Fund of the Mankato Area Foundation recently donated $155,000 in grant awards to 26 non-profit organizations across the company’s southern Minnesota service area.

MANKATO

Call Karla VanEman today!

Mayo Clinic Health System

(507) 345-4040

Mayo Clinic Health System recently announced plans to open Express Care clinic inside the Hilltop Hy-Vee grocery store. The clinic, which will be located adjacent to the pharmacy, is expected to open in May.

Consolidated Communications recently gave awards to two employees for exemplary service. Julie Foster received the company’s highest honor, the Chairman Award, while Greg Hasse was recognized with the company’s Community Service Award. Video Services Inc. (VSI) was recently awarded the contract for the Event Center Audio Visual Systems. VSI’s local work includes the new Prairie Winds Middle School, the recent Dakota Meadows Middle School expansion, a complete refresh of technology systems at Christ the King Lutheran Church, and the recently constructed sister buildings of Profinium Place and Ridley Tower. Representatives of the Minnesota Soybean Research and Promotion Council (MSR&PC) recently undertook a 10-day trade mission to Vietnam, one of the most rapidly growing feed and livestock markets in southeast Asia.

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

Serving Southern Minnesota For Over 50 years

507-345-6260 robinsonappraisalmn.com appraisal@hickorytech.net 115 E. Washington, Mankato *State certified/licensed appraisers

Commercial Industrial Agricultural Properties

Incentives for Job Creation SHOVEL VEL READY DY LOTS S

New Ulm Economic Development Corporation

507-233-4305 • www.nuedc.com nuedc@newulmtel.net MAY/JUNE 2016

CONNECT Business Magazine

41


PRESS RELEASES

CENTURY 21 Atwood Realty recently received the Gold Medallion Award from the Century 21 Real Estate Corporation, along with several other awards earned by different agents at the Mankato office. Frandsen Bank & Trust recently hired Joslyn Manske as a mortgage banker. Lasson Management recently opened an office in the Walnut Towers building in downtown Mankato. United Prairie Bank was recently recognized by the Minnesota Bankers Association through the Community Champion Recognition Program for its community involvement. Jordan Sands recently announced the winners of its inaugural Jordan Sands Foundation Award, which recognizes exemplary employees. Recipients of the award are Kurt Pearson (Rail Lead), Matt Tomisin (Rail Load Operator), and Jason Reese (Project Manager). Agstar Financial Services, ACA recently donated $10,000 to Junior Achievement of the Upper Midwest. The funds will support the continued expansion of the JA Company Program at Maple River High School and Janesville-WaldorfPemberton High School. I+S Group professional surveyor and civil engineer Dan Stueber was recently sworn in as President-Elect of the Minnesota Society of Professional Surveyors (MSPS). The Mankato YMCA, in partnership with Scheels, is hosting the Scheels 10kato LiveSTRONG race on May 30. Proceeds from the race benefit the LiveSTRONG program at the YMCA.

MANKATO

VEHICLE GRAPHICS For Fleets of 1 to 100+ Sign Pro has over 20 years of experience dressing company vehicles to match the look and feel of any business.

Full Wraps | Partial Wraps Door Logos | Custom Design

of Mankato

507.345.3388 signpromankato.com

42

CONNECT Business Magazine

MAY/JUNE 2016

New York Life Judy Ringler Mountain, from the Minneapolis General Office of New York Life, was recently certified to offer AARP members a range of financial solutions through AARP Life Insurance, Annuity and Long-Term Care Options from New York Life.

MANKATO

Thriveon Thriveon was recently named one of Minnesota’s 100 Best Companies To Work For by Minnesota Business magazine based on online questionnaires filled out by employees.

Ground was recently broken for a new apartment complex, M2 Lofts, on the four acres of property that also houses Hilltop Florist and Greenhouse. The hope is to open the complex in September 2016. The Mayo Clinic Health System Mankato Health Care Foundation hosted its 23rd annual Hospice Family Fundraiser on April 15. Each year, the Hospice Family Fundraiser generates enough funding to cover about six months of hospice and palliative care operations. Martin C. Menk, Jr., co-founder of Bolton & Menk, Inc., passed away in March. He founded Bolton & Menk, Inc. in 1949 and stayed with the firm until 1992.

New Ulm Josh Dalluge, a newly hired Systems Support Technician at Thriveon’s New Ulm location, recently attained MTA (Microsoft Technology Associate) certification. The new Southern Minnesota Broadband network was recently completed through collaboration among independent telecommunications companies across southern Minnesota. The SMB fiber network has a backbone of 760 miles and extends across southern Minnesota from the border of South Dakota to Wisconsin, and from south of the Twin Cities to Iowa.

Nicollet Schmidt’s Meat Market recently won six awards at the Minnesota Association of Meat Processors Convention held


in St. Cloud. Schmidt’s received three Grand Champion level awards, two Reserve Grand Champion awards and one Champion award.

Owatonna Minnesota’s Department of Education (MDE) has awarded the Southern Minnesota Initiative Foundation (SMIF) $30,000 to work with a minimum of 10 school districts providing outreach, technical assistance, training and financial incentives for districts to expand their Pre-K to Grade 3 alignment efforts.

Sleepy Eye Michael Poppler, Systems Support Technician at Thriveon, recently attained the CompTIA A+ Certification.

St. James Country 101.5 KRRW radio station has moved to a new location on First Avenue. Watonwan County Farm Bureau received the Minnesota Farm Bureau President’s Award of Exemplary Achievement, the

most prestigious of all county Minnesota Farm Bureau awards. Kathleen Svalland is the 2016 Watonwan County Board chairperson. Lynn Krachmer is the new Watonwan County Assessor. Naomi Ochsendorf is the new Watonwan County Director of Human Services. Sarahi Showalter, owner of Lord’s & Lady’s, has moved to the former Curves building on First Avenue. H&R Block recently opened in a new location at 518 First Avenue. Mike Mikkelson recently became a new physician assistant at Mayo Clinic Heath System in St. James. S-T Industries, Inc. donated a video measurement system to Minnesota State University, Mankato’s Department of

ST. JAMES

Clipperton Auto Repair Clipperton Auto Repair was recently named a 2015 Top Shop recipient by AAA Clubs of Minnesota. Only 15 Approved Auto Repair shops in Minnesota earned the honor in 2015.

Automotive and Manufacturing Engineering Technology.

Waseca From the Chamber: new businesses include Prime Poly Solutions, Awaken Vibrance, Waseca Tech Services and Maxwell’s Bar. The Roots Award was recently presented by the Chamber Ambassadors to Roundbank Insurance Agency in recognition of its more than 30 years of service in the Waseca area. Derrick Girad, CFP-VP of Investment Solutions (a division of Roundbank), was awarded the Accredited Investment Fiduciary designation. Mediacom recently marked its 20th anniversary by announcing a $1 billion capital investment over the next three years to upgrade and expand its national broadband network. Edward Jones Financial Advisor Nyla T. Hagen recently announced that a second financial advisor, Ben Salaba, has joined her office in Waseca. Southern Minnesota Area Rural Transit (SMART), a new public transportation servicing Waseca, Steele, Freeborn and Mower Counties, is now providing public transportation services.

Open House Northwestern Mutual cordially invites you to an open house in celebration of our new office in downtown Mankato’s Ridley Tower. Wednesday, June 1st, 2016 | 4 p.m. to 8 p.m. 111 West Cherry Street Ste. 200 | Mankato, MN 56001 RSVP: If you are able to attend please call Michaela at 507-625-9400 or email michaela.rehm@nm.com

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI and its subsidiaries.

MAY/JUNE 2016

CONNECT Business Magazine

43


The tank crashes through the underbrush, crushing anything in its path. It lumbers past trees, a 25-foot-long, 62-ton metal behemoth on the hunt. It plows through a shallow pond, barely slowing its 30 mph pace as it sprays mud and splashes water. Soon, it hones in on its prey: a rusty Cadillac, sitting in the middle of a clearing. The tank rolls inexorably closer, gears grinding. It reaches the car and keeps going. The sound of metal wrenching against metal fills the air as the Cadillac flattens like a Styrofoam cup. As the tank continues on its way, all that’s left is a twisted pile of metal and shattered glass. It sounds like a dystopian war scene, but it’s not. It’s just part

44

CONNECT Business Magazine

MAY/JUNE 2016

of the fun offered through Drive A Tank, a Kasota business that allows customers to try their hand at driving some of the largest vehicles ever manufactured. Started only a few years ago, Drive A Tank has exploded in popularity, attracting thousands of customers from around the world—as well as press spreads in notable publications like Fortune and Forbes. It all started when Waseca native Tony Borglum came up with a crazy idea—an idea that people told him would be too stupid to try. But he plunged forward anyway. And it’s working out pretty well for him. continued >


By Grace Webb Photo by Kris Kathmann

Kasota businessman Tony Borglum offers customers a one-of-a-kind driving experience. MAY/JUNE 2016

CONNECT Business Magazine

45


Battlefield Kasota

“Here, we think nothing of driving to Minneapolis twice in a week. This was unheard of to the Brits. Pretty soon, everyone in England, in the military world, had heard about these two crazy Americans who were driving all over the country looking for Ferrets.” Borglum grew up in Waseca and quickly discovered a passion for all things motorrelated: motorsports, truck pulls, garden tractor pulling, mini-rods. He built a garden tractor with his father, then a truck, then a street rod. “When I was little, I had a bike, and the old man helped me put a dozer blade on the front and a ripper on the back,” he remembered. “I was always taking things apart and putting them back together. I had a pretty nice bike, and I wanted to make a three-wheel bike with a rear axle that would steer. So I took apart a perfectly good bike to make it into a three-wheeler. We’ve been an entire family of builders.”

That interest came in handy as he started working for the family business, which focused on crushing concrete. He was only eight or nine when he started helping his father by dumping loads of concrete into the crusher machine. “When I told my class I did that over my summer vacation, my teacher called me a liar,” he said. He also helped his family crush a torndown parking ramp in Mankato. His father ran the crusher machine, his mother watched for chunks of steel that could shred the machine from the inside, and he was responsible for running the skid steer cleaner under the conveyers.

But of all the machines and vehicles he worked with, what really interested him was Army trucks. So he bought one as soon as he found a promising possibility. “At that point, you start to realize what’s available,” he said, explaining that he started looking into other Army vehicles that were on the market. That’s when he found out he could buy a Ferret armored car, a British fighting vehicle built for reconnaissance missions. The only trouble was the hefty price tag—about $25,000. On the other hand, Borglum found, if he was willing to travel to England, he could buy one and ship it home for a total cost of $15,000.

EMPLOYEE PERK Hermel Professional Office Coffee Service • Next day delivery • No minimum • Multiple varieties • Professional equipment Contact Hermel today to learn more...

507-387-5634 | ahhermel.com 46

CONNECT Business Magazine

MAY/JUNE 2016

Commercial Single-Cup and Volume Brewers


Drive A Tank | Kasota

At the time, Borglum was still in high school and working for his family’s construction business. His dream might have only stayed a dream, had not his mother stepped in one day in 2006. “One day, I came back from work, and my mom said, ‘I’m sick and tired of you two being around here and making my life miserable. Go to England for 10 days and buy the Ferret,’” Borlgum said. “So my dad and I went to England.” He and his father drove across the country, from Kent to Leeds, looking for a deal. “They thought we were nuts,” Borglum said. “Here, we think nothing of driving to Minneapolis twice in a week. This was unheard of to the Brits. Pretty soon, everyone in England, in the military world, had heard about these two crazy Americans who were driving all over the country looking for Ferrets.” During their search, they came across a place that offered the chance to drive an FV 433 Abbot tank for $300. The two of them gave it a try, and Borglum’s father suggested starting a similar business back in Kasota. At first, Borglum wasn’t sure, but he eventually agreed to try it. They ended up buying an Abbot and three FV 432s. Borglum said the plan was to open their business in Waseca, and they went around asking neighbors if anyone would mind. No one voiced any worries. “Everyone was of the thought process, ‘That’s a stupid idea and nobody’s ever going to want to do it, so knock yourself out,’” he said. But people had second thoughts once Borglum applied for a conditional use permit. He was served a cease and desist order, spent endless days in court and faced ever-escalating accusations from people worried that his tanks posed a threat to residents’ safety. His mother’s car was keyed, and the family was accused of selling drugs to fund the new business. “Now it became just a struggle to keep the business open, because we had all these neighbors freaked out that we had tanks,” he recalled. “‘What if somebody steals them and blows up the school with a gun that doesn’t work?’ I stood in a meeting for an hour explaining that the guns didn’t work. It weighs 35,000 pounds and has a 200 horse power engine. Everyone has a John

Nick Smith Mankato, MN (507) 625-5649

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 group health 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?

Federated Mutual Insurance Company - Federated Service Insurance Company - Federated Life Company 121 East Park Square • Owatonna, MN 55060 • (507) 455-5200 • www.federatedinsurance.com

L I T I G AT I O N • B U S I N E S S • F A R M • P E R S O N A L

INTEGRITY For well over a century, Blethen, Gage & Krause has partnered with our clients to provide effective, practical solutions for their legal concerns. Our commitment to excellence and your legal needs is why our clients – large and small – continue to put their trust in our team. Call or visit blethenlaw.com today to learn more about how we can make a difference for you. MAY/JUNE 2016

blethenlaw.com Mankato, Minnesota CONNECT Business Magazine

47


Battlefield Kasota

PRESENTS

10KATO RUNSTRONG Memorial Day: Monday, May 30. Races start at 8:30 a.m.

The 10kato is back! This legendary race has joined with Scheels and the LiveSTRONG program at the YMCA to form an even more exciting and memorable experience! Proceeds from the race benefit the LiveSTRONG program; a twelve-week, small group program designed for adult cancer survivors that puts the focus on the individual’s health and not just the disease. The course for the 10k race is the traditional 10kato route, taking you on a scenic run around beautiful Mankato. The 2+mile walk/run has its own course this year through Bethany Lutheran College and surrounding area. Awards will be presented for the top 3 finishers, male and female, from each age group. Registration Fees for the 2+ Mile and the 10k race: Before April 1st $20.00 (early bird discount) After April 1st $25.00 Race Day, May 30th $30.00 Check in by calling the hotline: 507-476-0267 or watch as the race unfolds by following us on Facebook: www.facebook.com/10kato or www.facebook.com/livestrongatthemankatofamilyymca

Questions? Call Teresa Langworthy at 507-387-8255 EXT 234 or email livestrong@mankatoymca.org

COMMERCIAL BUILDING FOR SALE 4,886 sq.ft. / 0.55 acre lot 120 East Main Street / Mankato

E DYNAMIT

D OW

ANKATO N TO W N M

! LOCATION

SALES • INVESTMENT • DEVELOPMENT • LEASING Tim Lidstrom, CCIM Broker Karla Jo Olson, Broker Dan Robinson, Agent

100 Warren Street Suite 708 Mankato, MN 56001

507.625.4606 www.lidcomm.com

48

CONNECT Business Magazine

MAY/JUNE 2016

Deere tractor nowadays that weighs 35,000 pounds and has a 200 horse power engine. It’d just be like driving a tractor around on the weekends. Then an old farmer stood up and said, ‘The Borglums want you to think that this is a tractor. It’s not. It’s a killing machine. It was made with one intention and one intention only, and that’s to kill people, and that’s exactly what it’s going to do. Each of you board members is going to be responsible when somebody steals this tank and kills all of the children at the school. It’s going to be your fault.’” Eventually, the Borglums decided it would be better to find a different location to open their new business, and they checked Kasota first because of some local connections. They had already bought property out there to better serve some of their construction clients, and they visited the mayor to ask about opening their tank business. When he told them to come in for a permit meeting, they were worried, Borglum said, especially when the board asked them for $851. “I thought, ‘In Waseca, you give them $400 and then they’ll talk about if they’ll do it,’” he explained. “We walked in and they asked for that, and I thought that was pretty expensive. But he explained, ‘That’s the building permit fee. You give us that, you can start building tomorrow and open your business the next day.’ It was no big deal—45 minutes and it was done.” Borglum opened “Drive A Tank” in 2010, within Kasota’s city limits, and said he has never had to worry about disturbing his

Battlefield Kasota

The Cost Of Making Memories Borglum is totally open about the cost of doing business with him—it won’t be cheap. But, he explained, it can’t be, since tanks cost so much to operate. Most of his tanks only have a lifespan of about four hours. The Chieftain costs about $1,000 an hour to operate, and even the Abbots burn four gallons of fuel per mile, which quickly adds up. Another cost is the price of finding replacement parts, especially since tanks wear out quickly. These parts can be hard to find, since Borglum usually has to find collectors willing to part with them. In January, he managed to scoop up the last sets of Chieftain track in the world. His British tanks are the cheapest and easiest to repair, since Great Britain has been surplusing


Drive A Tank | Kasota

neighbors; in fact, people were still asking them when they were going to open a year and a half after they started offering rides. “Nobody even knows we’re here,” he said. “That’s our impact on the surrounding area. Everybody does their own thing, and nobody worries about anybody else. You do your thing, I do my thing, you don’t bother me and I won’t bother you. So many towns nowadays, it’s like, ‘I don’t like the color of your house.’ Not here. You can do whatever you want. It’s perfect.” Once the tank business was up and running, Borglum had to stop working for the family business and focus his attention on his ever-increasing customers. Last year, more than 1,650 people visited. Borglum and one other full-time employee handle all those customers, though they do sometimes have part-time help. Borglum said his business really took off in 2012 after a slew of articles and television features. He was featured on Larry the Cable Guy’s show “Only in America,” the Huffington Post, Popular Mechanics, Fox News and many others. “All I did was answer the phone and take people’s money, and I couldn’t do it fast enough,” he said. Before the publicity, he added, five drivers and three car crushes was the high point of business. Now, they sometimes receive 20 or more visits in a day, and they’ve organized up to 14 back-to-back car crushes. Borglum said he prefers to cap things off at 20 drivers on

Since 1883 Nicollet County Bank

its tanks for decades (though it recently ended the practice). Even so, there are only 300 Abbots available in the world—and he has a few, which cost him about $100,000 each. He also has a Russian T55, the most produced tank in existence, and a British Chieftain Mark 11, one of only five surplus models in the world (and also the star of the 2002 Reign of Fire movie). He imported that one from Ireland. It’s the American tanks that are hard to come by, since the United States doesn’t surplus its old military vehicles. Borglum was the first person in the world to let customers drive a Sherman E8, which he only offers in his business’s top tank package. Part of the secret to his success is how he is able to modify his tanks with easier-to-replace modern pieces. (The one exception is the Sherman, which is 100 percent original.) “Other people in the United States who try tank driving usually come and go, but we’ve been at it for almost a decade now,” he said. “It’s because of our re-powers and our re-modifications.”

220 South Third Street St. Peter, Minnesota Phone: 931-3310 nicolletcountybank.com

N

MAY/JUNE 2016

C B

Nicollet County Bank CONNECT Business Magazine

49


Battlefield Kasota

Battlefield Kasota

Tank Experience When it comes to choosing which of Borglum’s tanks to drive, it depends on just how authentic you want your experience to be. The simplest package (“3 Star Lt. General”) costs $449 and lets guests drive the FV433 Abbot SPG, which is technically not a tank but an armored vehicle. Meanwhile, the most expensive package (“The Sherman Driver”) costs $3,699 and adds the FV 432 APC and Sherman E8 for guests to drive. There are a few places in the United Kingdom where tank enthusiasts can drive Abbots, but Borglum’s business is one of the first in the world to offer rides in real tanks such as Chieftain MK10s and Russian T-55s. Altogether, he has nearly a dozen vehicles in his arsenal. Borglum said that Abbot is one of the easiest to drive, since you actually drive with your head outside the vehicle, so you can see where you’re going. With the next package, you move up to the FV 432 APC, which requires the use of a periscope—and makes driving that much more difficult. “People come and say, ‘I’ve been riding construction equipment my entire life,’” Borglum said. “That doesn’t matter, because you’re in a different position than you’re used to. You’re not in your element. Most people, when they’re done, they say, ‘It wasn’t fun.’ And I always say, ‘You didn’t come here to have fun, did you? You came here to experience tanks.’” He went on to explain that the Abbot is usually considered the most fun to drive, while the FV 432 is the most confusing and the T55 is the most work, since it has manual transmission and brakes. And all of it requires much more training than most people realize. “I can’t tell you how many people walk through my door and say, ‘I want to drive a tank and blow stuff up,’” he said. “But I tell them, ‘You’re not supposed to drive your car and text message. What makes you think you can take an $8 million vehicle and drive it 45 mph, aim a 120-mm cannon to your side and still not run into things?’” If you really want the full experience, you can pay to crush a car from the local salvage yard or even drive through a mobile home. Borglum said he only gets a few requests for home deconstructions a year, but he still offers them. And, while tanks might conjure up a sense of danger and excitement, Borglum said his customers are totally safe when they head out, no matter their level of experience. “You’re in a metal box that weighs 120,000 pounds,” he said. “How can you hurt yourself? You can’t.” 50

CONNECT Business Magazine

regular days, so that he can give everyone enough attention, but there can be up to 80 people at corporate team-building events. He also prefers to offer a smaller number of his bigger packages (such as “The Sherman Driver” and the “5 Star” package) compared to squeezing in many more small packages. “The majority of my customers, they’re not here just to drive fast,” he said. “They want to learn all the different things. The average lifespan of a Sherman tank or World War II tank is 40 minutes. Their mind is blown by that. They watch so many movies and think that’s what tanks are all about, but usually it’s quite different.” Borglum’s business is especially popular with bachelor parties and corporate outings. He and his employees recently worked on pulling the original gun out of one of their tanks and refitting it with a replica that is operated by air, so that they can adjust how severe the force is. Teams are able to get the complete “battle” experience by working together to load the gun (albeit with rubber balls) and engage pop-up targets throughout a course. “There’s no more extreme team building experience than military equipment, and tanks are one of the top ones,” Borglum said. “Just being together in an unfamiliar place is teambuilding. I don’t care who you are; you can work with someone for 10 years and then, all of a sudden, when you’re in a desperate situation with them, you get to know each other very well very quickly.” Groups are also able to break into teams and compete against each other to see who can shoot the most targets. Borglum said that’s always interesting, since the people you would suspect to be the most competent— those who hunt and shoot as hobbies—often don’t do that well. He explained that it comes down to being willing to ask for advice. “It’s not against the rules to ask for advice,” he said. “Don’t assume you know everything. Every time, it was the person with hunting experience who’d pick a gun, and it was the wrong one. If you’re at work and you need a piece of equipment, there’s nothing wrong with asking the manufacturer what it should be and how you should use it. If you just stop and ask a question, ask for help, anybody can be perfect at it.” In fact, Borglum said listening to directions


Drive A Tank | Kasota

is the toughest part of the tank experience for many people, since they would rather forge ahead on their own. “Our ladders into our tanks are the most dangerous things we have around here,” he said. “Sometimes in the team building events, people won’t use the ladder properly. If you’re a fireman, you’d want to have your helmet on. It’s the same thing here; you have to use the safety equipment properly. They think it’s tanks and machine guns and it’s going to be super difficult, but it’s all about following directions. The shooting’s easy, and the driving’s easy. The most dangerous driver I ever had was someone who wasn’t paying attention. He said, ‘I can’t learn anything from a dumb kid like you. I’ve been driving tractors longer than you’ve been alive!’ We got him in the vehicle, and it revved off, and it went in a straight line and hit the first tree. People come with this expectation, ‘I don’t know if I can drive a tank.’ Just shut up and listen, and you’ll be fine.” Along with his tanks, Borglum offers customers a chance to shoot a variety of guns, including submachine guns, assault rifles, machine guns and anti-material rifles—including the WWII Browning M1919 machine gun. “It’s something different that puts people somewhere where they’ve never been,” he said. “They think it’s going to be wild and crazy, but it’s safe. Just follow the directions and keep the gun pointed where it’s supposed to be.”

THE ESSENTIALS

Drive A Tank Address: 550 West Cherry Street Kasota, Minnesota Phone: (507) 931-7385 Web: driveatank.com

Borlgum’s customers come from around the world, with many showing up from India and Canada. They range from kids to elderly folks, and he’s even able to make the experience work for people with disabilities such as blindness or a missing leg. “We had a child who was eight, terminally ill with brain cancer,” he said. “We had to put a 4x4 block on the throttle, but he did it. He was one of the best drivers of the day.” Every year, he works with more customers. Sometimes, there’s a waiting list weeks long. In fact, there’s such a demand that he’s considering adding one more tank to his arsenal: another Russian T-55. “There’s definitely demand for it,” he said, “though it’s an elite crowd. It’s not for everybody. I never claimed to be an ice cream shop. It’s not people who happen to be in Minnesota for a golf tournament and decide to come here. We’re drawing them in. Basically, what we’ve learned is, if you do something that’s super bad-ass, that everybody else says is impossible, if you can pull it off, people will travel the world to see you.”

Battlefield Kasota

Behind The Scenes Borglum was recently approached about helping supply the sound effects for video games, as well as loaning out his tanks for movies and TV shows. He worked on a video game for Microsoft, as well as providing the tank for “In an Instant,” a television series filmed in the Twin Cities. He also helped with the sound effects for “World of Tanks,” a free online game. “I’ve got the most reliable fleet of armor in the country,” he explained.

audio|video|technology specialists

Due to recent growth and expansion, Video Services Inc. (VSI) has an immediate need for Installation Technicians to join our team. Construction, Electrical, or Low-Voltage experience is a plus. For more information, please inquire by contacting our office:

507-625-1650

Resumes can be submitted to: 211 Mohr Drive, Suite 100 Mankato, MN 56001 info@videoser.com CONNECT Business Magazine

51


BUSINESS TRENDS

AGRICULTURE

Western states are seeing record high prices for beef cattle after years of drought, according to Fedgazette, and that’s having an impact on the agricultural industry in more than one way. Because of dry pastures, ranchers in Texas, California, Oregon and other states have started selling off cattle in unusually high numbers—resulting in the U.S. beef cattle herd shrinking to the smallest number it has been since the late 1950s, according to the U.S. Department of Agriculture. It is this reduced cattle supply that is driving up beef prices. These increased prices are benefiting farmers across the Ninth District, especially in eastern Montana and the Dakotas. (South Dakota and Montana are fifth and seventh in the country’s cattle production, respectively.) These states haven’t been hit by the same droughts, so ranchers are able to maintain their cattle herds at about average levels. Ranchers usually react to high cattle prices by breeding more cattle, Fedgazette

52

CONNECT Business Magazine

MAY/JUNE 2016

reports, and the USDA head count did show that cattle numbers increased 3 percent (up to 92 million) in 2015. This is why calf prices fell by about one-third over the second half of 2015, according to the USDA. However, experts are theorizing that ranchers won’t be as quick to rebuild their herds in the face of continued episodic droughts, as well as high labor costs. Gary Brester, an agricultural economist at Montana State University, said ranchers in the Ninth District are taking advantage of the higher prices to replace equipment, improve technology use and improve the genetics of their herds. He also noted that area ranchers are already beginning to increase their herds (based on a decrease of heifer slaughters throughout 2015). However, he pointed out that increasing labor costs in such a labor-intensive agricultural operation is limiting just how much ranchers choose to expand—or even stay in the business at all. In addition, the recent droughts across the nation have pushed up feed costs, especially for hay, limiting the funds they can put towards expansion. Brester said he thinks cattle prices will drop somewhat this year, since more beef is being produced, and other types of protein such as pork and poultry are bouncing back from some of the disease issues they recently experienced. However, he still thinks the trend in cattle prices over the next decade is going to be above the historical average.

TAXABLE INCOME

Minnesota lost or began losing an estimated $2.1 billion in taxable income over the past two years, according to Twin Cities Business, as nearly 3,100 taxpayers left for other states. The numbers come from a research study on wealth migration, conducted by TCB and research firm The Morris Leatherman Company. The study also found that this exodus amounts to an estimated loss of about $1.5 billion in annual taxable income, $12 billion in average net worth and $22 billion in gross estate value. TCB reports that the trend will continue for at least the next five years, with an estimated 12,200 Minnesotans leaving and taking a combined $5.2 billion in taxable income (along with $122 billion in gross estate value) with them. In almost three-fourths of the cases, survey respondents said their reason for leaving had to do with Minnesota’s tax policy and collection practices. This is bad news, since other sources indicate that Minnesota is losing more wealth than it is gaining. Between 2008 and 2012, about 22,000 higher-income non-student individuals moved into the state, according to the Minnesota demographer’s office, but about 24,000 people in the same income range left. Going back even farther, Center for the American Experiment’s March report on IRS data shows that Minnesota lost between $240 million and $490 million in annual taxable income between 1997 and 2012. That loss increased to $697 million in 2013 and up to nearly $1 billion in 2014. TCB reports that based on these annual taxable incomes, the 13,000 individuals who left or are in the process of leaving represent about half of Minnesota’s top-tier tax population, described in the 2015 Minnesota Tax Incidence Study. This top tier provides Minnesota with about 25 percent of its total individual income tax revenues.


One of the reasons that wealthier Minnesotans are leaving include a tax bill in 2013 that increased the taxes to be paid by the state’s highest wage earners—as well as lowering that “highest” threshold to individuals making at least $154,950 and households making at least $258,260 annually. That new top rate of 9.85 percent ranks as the third-highest such tax in the country. That’s quite a difference compared to states with no income tax, such as Florida, South Dakota, Texas and Nevada.

Approved by All Insurance Companies • Most Auto Glass in Stock • Free Mobile Service • Chip Repair • Locally Owned by Larry & Ellen Wild

345-7415 | 800-642-8890 katoglass.net

227 North 2nd Street | Mankato

Let us help protect what is important to you.

One of the reasons that wealthier Minnesotans are leaving include a tax bill in 2013 that increased the taxes to be paid by the state’s highest wage earners. That new top rate of 9.85 percent ranks as the third-highest such tax in the country. Another reason is the estate tax, which can charge residents up to 40 percent on estates greater than $5.45 million for individuals and $10.9 million for married couples. Minnesota is one of only 14 states that still have estate taxes, and even estates as small as $1 million are taxable. Minnesota’s state and local income tax collections per person were the sixth highest nationally, according to the Tax Foundation, in 2013. The state’s corporate income tax system, which includes a flat rate of 9.8 percent, is the third highest among states levying a corporate income tax. In addition, Minnesota is tied for fourth when it comes to the highest capital gains tax rate (at 9.9 percent).

At Community Insurance we have the ability to compare insurance from multiple companies to get you the best coverage at a great price. Combine that with our insurance knowledge and friendly group of agents, and we say that’s a winning deal. Community Insurance - where your policy comes with an agent.

MANKATO 507.385.4485 AMBOY 507.674.3355 I VERNON CENTER 507.549.3679 Christina Meyer

INSURANCE OFFICES LOCATED IN THE COMMUNITY BANK BUILDINGS

www.cimankato.com

Schwickert’s Tecta America has been providing award-winning service for 110 years. Our expertise is shown in the multitude of solutions we offer.

design I build I repair I replace 330 Poplar Street, Mankato I 507-387-3101 I schwickerts.com MAY/JUNE 2016

CONNECT Business Magazine

53


BUSINESS TRENDS

MANUFACTURING

Despite a slower year in 2015, district manufacturers are expecting moderate growth throughout 2016, according to Fedgazette. This outlook was reflected in a survey conducted in November and early December 2015 by the Federal Reserve Bank of Minneapolis and the Minnesota Department of Employment and Economic Development. Manufacturers across the Ninth District (which includes Minnesota, Wisconsin, North and South Dakota, Michigan and Montana) pointed to increased profits, capital spending, wages and benefits in 2015 compared to 2014.

54

CONNECT Business Magazine

MAY/JUNE 2016

Many also mentioned the expectation that their businesses would grow in 2016, and orders, productivity and profits are expected to increase. While more moderate, they also expect positive changes in employment, wages, investment, prices and exports as well. While the outlook is good overall, several manufacturers still wrote about the challenge of finding enough workers. This challenge has affected southern Minnesota as well, with some businesses unable to expand or take on new projects because of the lack of skilled workers. When it came to their views on their

states’ economies overall, manufacturers voiced more modest expectations. On average, respondents expect state employment to barely increase, and they also expect a slight drop in consumer spending and corporate profits. A special question on the survey asked about the impact of recent changes in currency exchange rates, particularly the strengthening of the U.S. dollar versus other major currencies. Overall, district manufacturers reported that this change has had little effect on their operations, though about a fourth of respondents said the dollar’s rise has hurt sales and profitability.


SPECIAL SECTION

Extreme Businesses of Southern Minnesota Check out some local businesses serving up thrills to customers brave enough to try them. By Grace Webb

As consumers finally start to emerge from the recent recession and loosen their financial belts, an interesting trend is coming to light: just how people spend their newly available money. More and more business owners are realizing how much people want to create one-of-a-kind experiences that they can cherish and talk about for years to come. In fact, according to Yahoo! Finance, Americans are gravitating away from purchasing big-ticket items and instead buying more experiences. For example, air travel and hotel bookings have both increased in recent months. Businesses across southern Minnesota are noticing this market as well. Within the last 15 years, new businesses have begun offering everything from paintball to kayaking to skydiving. And they’re thriving, gaining more interest and more customers every year that they stay open. Some businesses sell clothing. Some businesses sell expertise. These businesses sell memories.

Minnesota Zip Line Adventures HENDERSON

Lee Kerfoot has always been one to push the limits. Growing up on the Gunflint Trail by the Boundary Waters in northern Minnesota, Kerfoot was involved in every manner of outdoor recreation, including ziplining. In 2012, his father start the first canopy zipline tour in Minnesota—and that inspired him to open his own canopy tour business. After searching for about eight months, he and his wife found the perfect spot of land outside of Henderson, opening in June 2013. “The big thing was to just encourage people to get outdoors, to push their boundaries, to give them an adventure,” he said. Kerfoot offered 10 ziplines the first year, then added four more lines shortly after, pushing the tour over a mile in length. The whole experience takes about two and a half hours, and also includes a 170 ft. suspension bridge. In 2014, he also started to offer kayaking

on the Minnesota River, as well as working on another zipline tour up in Brainerd, which opened this spring. The Brainerd site has seven ziplines and a bridge that leads to a tower where guests can “quick jump” for a 20-foot free-fall. During the summer, Kerfoot employs about 30 people. And, surprisingly, he also employs people in the winter, since he’s one of the few zipline tours in the region that stays open year-round. “There’s a place in Wisconsin that does MAY/JUNE 2016

CONNECT Business Magazine

55


SPECIAL SECTION

it year-round, so I said, ‘Why not?’” he remembered. “What’s beautiful about this piece of land is that in the winter, it’s a totally different experience.” Kerfoot said the biggest challenge is making people aware of the fact that there’s “top-shelf ” ziplining in Minnesota. “You have this perception of ziplining across the world, and there’s a lot of amazing courses, but I think you’ll be pleasantly surprised that this is really a top-shelf experience,” he said, pointing out that his course offers nearly double the number of zips compared to any other course in Minnesota. “It’s really a fun thing to do. It’s fun to see people who come in for different reasons, and they just have an amazing experience.” The experience costs about $100 per person during the summer season. For more information about Minnesota Zip Lines & Adventures, visit its website at ziplinemn.com.

Arlington Raceway ARLINGTON

For Bob and Susan Allen, racing cars has been a part of their lives for years. It only made sense that they’d eventually own and operate their own race track. Bob Allen enjoyed racing at the Cannon River Speedway until it shut down. As he looked around for another place to race, the Arlington Raceway caught his eye. In the past, the track had been used for events during the Sibley County Fair, but it didn’t run year-round. Allen contacted the Sibley County Fair Board and asked if he could see how many people showed up for year-round events. “They said that they’d give it a try, and we lined up people to do different things, and that’s just how it started,” said Susan Allen. “We didn’t ever think we’d be doing it 36 years later, but we are.” Now, the Allens host weekly races on their half-mile dirt track. Sons Levi and Brett are also involved in the business. Eight categories of cars race, as well as four categories of go-karts. “Most of our drivers are families of racers,” Susan Allen said. “The parents race in the big cars, and the kids race the go-karts.” Rookie go-kart racers can be as young as five, and some adults still get in on the 56

CONNECT Business Magazine

MAY/JUNE 2016

“It’s a good starting point if someone wants to get started in racing in general. Many of our go-kart racers have moved up into the regular race cars. Our kids used to race go-karts, and now our grandkids race go-karts.” action on the stock go-kart category side of things. About 40 people raced go-karts per night last year. Each class includes two heats, which are about eight laps each. The top three racers earn trophies every week, and they also build up points to move them closer to the championship, which is celebrated at the raceway’s annual banquet. “It’s a good starting point if someone wants to get started in racing in general,” Susan Allen said. “Many of our go-kart racers have moved up into the regular race cars. Our kids used to race go-karts, and now our grandkids race go-karts.” Allen said they make some sort of improvement to the track every year to keep it maintained. While a lot of things have changed in the past 36 years, she added, her family is still committed to running good races and giving people a good time. “A lot of tracks across the nation have been closing down due to the economy,” she said. “Our plan is to stay open.” For more information about the raceway, visit arlingtonraceway.com.

Bent River Outfitters MANKATO

During the off-season months, Jason Femrite and Adam Steinke have “regular” jobs at engineering and architectural firms. But during the summer, the two of them own and operate Bent River Outfitters, a relatively new business to Mankato that offers customers the chance to kayak, canoe and paddleboard to their hearts’ content. Steinke said he got the idea when he heard how the City of Mankato planned to construct the Riverfront Park Amphitheater. “I thought, ‘Mankato needs an outdoor business,’” he recalled. “I thought outdoor activity could help rebuild this area.” Steinke reached out to Femrite, a friend of more than 20 years. They started with a small fleet of about a dozen kayaks, a 15-passenger van and a trailer. However, the demand quickly necessitated finding even more equipment. “It was quite an adventure that first year,” Femrite said. “We were begging, borrowing and stealing boats to bring out some of our groups.” Since that first year in 2011, the partners have hired employees and expanded their fleet. They also made it a goal to offer something new every year, branching into paddleboarding, canoeing, snowshoeing and more. They offer group events throughout the year, such as snowshoe hikes to Morgan’s Creek Winery, and corporate team building events. “You’re going to have more fun if you come out in a group, or if you come out


Extreme Businesses of Southern Minnesota

with an open mind to meet people,” Steinke said. “It’s the social aspect of the Outfitter that I think is the fun part.” Last year, the partners organized more than 1,500 trips, working with customers from around the world. They’ve hosted birthday parties, bachelor parties, family reunions, scout groups and even the U.S.A.F. Thunderbirds when they were in town for Mankato’s Air Show Spectacular last year. “It’s an asset to the community that it’s here,” Steinke said. “To have the park, and the other new things that are opening up, and the trails and the bison… People can come to Mankato now and spend a weekend and have enough to do. They’re not going to get bored.” Steinke and Femrite work with about 1015 seasonal employees—and they make an effort to hire college students. “We’re trying to provide opportunities for those students to learn how to run a business,” Femrite said. “We see this business as forever changing; we’ve never had two years be the same as of yet. I think these students are what will keep the Outfitter new and fresh every year.” For more information about the Outfitter or its calendar of events, visit bentriveroutfitter.com.

own skydiving business, Southern Minnesota Skydiving, in 2009. He started in Le Sueur and eventually moved to Waseca, where he had more than 1,000 people come in for tandem jumps in 2015. While Minnesota Skydiving usually keeps its doors open from March to October (opening only on weekends), the majority of Hanna’s business comes between May and September. The customers themselves

are as variable as imaginable: anything from adrenaline junkies to bachelor parties to two elderly ladies who wanted a thrill. Hanna works with fellow tandem instructor Jason Petterson, splitting the jumps between the two of them. He doesn’t have any employees, but he does have a group of independent contractors, such as his pilots, who work with him. The whole skydiving experience takes about 35 minutes. He

Southern Minnesota Skydiving WASECA

It only took one jump for Corey Hanna to fall in love with skydiving. The Army veteran was working for Carlson Craft when his daughter invited him down to Texas to go skydiving with her. “I was hooked instantly,” he said. He decided to keep jumping, first earning his license to jump solo and then earning his license to become a diving instructor. Over the years, Hanna has earned several more certifications, from becoming a qualified FA parachute rigger to earning his pro license so that he can parachute into sports stadiums. He also holds the records for most skydives in a 24-hr period in Minnesota thanks to the 100 jumps he made in 2009 to raise support for suicide prevention awareness. Once he earned his instructor’s license, he decided to go even further and open his MAY/JUNE 2016

CONNECT Business Magazine

57


SPECIAL SECTION

ExtremeBusinesses Businessesof ofSouthern SouthernMinnesota Minnesota Extreme

can take people up for tandem jumps, work with them to earn their solo license or even teach them to become instructors themselves. Hanna said the biggest challenge is fitting this business in with his full-time job at Carlson Craft, but the stress is worth it. “I get so much out of the enjoyment I see when I land,” he said. “I go home at night and think I got to be part of something pretty cool.”

It costs about $180 for a tandem skydive, which includes 45 seconds of free fall. Hanna also offers classes to become a licensed skydiver. For more information, visit the company’s website at southernminnesotaskydiving.com.

Tommyguns Paintball NEW ULM

In 2010, Thomas Strenge was required to write a business plan for one of his classes at South Central College. Years later, he has turned that plan into a reality at Tommyguns Paintball. Strenge had experience playing paintball in high school and college, even playing in tournaments. (“We weren’t that great,” he admitted.) So when the chance came for him to turn 16 acres into a collection of paintball fields, he decided to go for it. At the time, paintball was very popular, leading to lots of competition in the area, but Strenge said there’s been a lot of turnover in the industry since then, and the number of fields has actually been cut in half since he started. He says part of the reason is because business owners have started trying to market paintball to kids instead of adults, but parents aren’t always interested in funding such an expensive hobby. Strenge has seven paintball fields and can run games on all of them at the same time. Fields can be reserved, or people can just show up for open play Sundays, which tend to attract 10-15 players each week. A typical paintball game is about 25 minutes long, Strenge said, with guests usually playing 6-10 games per visit. There’s no time limit, just a $45 cost that includes

500 paintballs per person, paint guns and protective wear, and all-day admission. (More paintballs are available to purchase for extremely enthusiastic players.) Season passes are also available. Strenge said he tends to run his fields from April to October, and he’s busiest during “wedding season”: April-June. A majority of his customers come for bachelor or bachelorette parties. Strenge also warns that guests will definitely know when they’ve been hit, describing it like “getting hit by a wet towel.” This is one of the reasons that he sets the minimum age at 12. Visit tommygunspaintwars.com for more information.

Pioneer Bank Your Business Bank

David KRAUSE

Duane OLENIUS

Mike KUNKEL

Andrea JOHNSON

Denise NIENOW

HARRINGTON

Mike

Exceeding Expectations. www.bankwithpioneer.com

Lewisville • Madelia • Mankato • Mapleton • North Mankato • St. James • Lake Crystal Loan Production Office 507-625-3268

58

CONNECT Business Magazine

MAY/JUNE 2016


HOT STARTZ!

Very New or Re-formed Businesses or Professionals New To Our Reading Area

WASECA

Pleasant Grove Pizza Farm

ART SIDNER

When Bill Bartz bought land outside of Waseca in 2008, he initially considered raising alpacas. Now, he runs a pizza farm. Bartz was born and raised in Waseca, leaving after high school to become a duck and goose hunting guide. After guiding groups everywhere from Minnesota to Canada, he returned to Waseca and started working in custom remodeling with his father. When 60 acres of land went up for sale outside Waseca, he couldn’t pass up the deal. While Bartz eventually decided to set up a venue for weddings, he changed his mind after his girlfriend, Emily Knudsen, convinced him to visit a pizza farm in Wisconsin with her. “I’m not going to lie—at first I kind of dismissed her,” he admitted. “But I wasn’t there for 20 minutes before I was sold.” Bartz and his friends added a kitchen into his barn, and he and Knudson began experimenting with different kinds of pizzas. In August 2015, they held their soft opening, and Bartz said business has been steadily growing as more people hear about the farm. Bartz and Knudson run the business mostly by themselves, though friends will sometimes help on busy nights. They offer four types of pizza, along with “pizza fries” (breadsticks). The most popular pizza is their Pig + Pork, which is topped with spicy sausage, pepperoni, green olives and shredded mozzarella. Perhaps more interesting than what the farm offers is what

it doesn’t offer. Visitors need to bring their own tables, chairs, serving utensils, drinks and appetizers. They’re also required to bring their trash back out, since Pleasant Grove Pizza Farm is a “clean farm” that doesn’t offer disposal services. Visitors are able to wander the farm, pet animals (including an alpaca) and listen to live music, which is offered every night the farm is open. The farm is also available for weddings. PLEASANT GROVE PIZZA FARM Address: 41142 160th Street Website: pleasantgrovepizzafarm.com Telephone: (507) 384-2692 Facebook: Pleasant Grove Pizza Farm


HOT STARTZ!

Sisterhood Inspirations For Brenda Sanderson, it all started with a dresser. Sanderson explained that she received a dresser from her mother-in-law and thought it had the potential for a perfect entryway bench—if she could just repurpose it. She managed to create such an impressive final product that friends soon started asking her to repurpose their furniture too. From there, Sanderson decided to open her own store, selling repurposed furniture (as well as offering custom work) but also clothing and accessories. She explained that she is rather unique in the world of boutiques, since she orders small quantities of clothing and never restocks the same pieces. Because of this, there is a totally new selection of products every week. “If I have a limited amount of inventory, not everyone will be running around in the same thing,” she said. Sanderson said she also caters to plus-sized women, another rarity in small boutiques. About half of her boutique is dedicated to plus-sized clothing. “It was very important to me to offer every woman of every size good quality clothing that’s trendy and affordable,” she said. “They want to look trendy, but they don’t know where to find clothes. Whatever size you are, if you feel beautiful, that makes all the difference.” Sanderson has her retail sales license and finds most of her merchandise through wholesale companies. While she runs the store by herself right now, she said she hopes to hire someone to help with the workload, and she also has plans to

start an online store in the future. Sanderson officially opened her store in November. Before that, she worked in a beauty salon for 16 years, though she took the last three years off to be a stay-at-home mother to her three sons. She’s relatively new to Lake Crystal, moving there a year ago because of her husband’s job. “It’s definitely more work than I thought it would be, but it’s been the happiest I’ve ever been,” she said. “I feel like I was born to do this.” SISTERHOOD INSPIRATIONS Address: 133 South Main Street Telephone: (507) 726-6625 Facebook: Sisterhood Inspirations

ART SIDNER

LAKE CRYSTAL

THE FUTURE IS YOURS TO CUSTOMIZE WITH A COMPREHENSIVE FINANCIAL PLAN At Eide Bailly, we help clients effectively manage their family’s unique financial situation. By specializing in Comprehensive Financial Planning, we can customize solutions and strategies to help you plan for the future. Our financial services combine the knowledge of a Certified Financial Planner with an experienced team of CPAs and Business Advisors to help you prepare for retirement, manage your taxes and plan your estate. Contact Ryan Spaude, CFP® or visit our website today.

EXPERIENCE THE EIDE BAILLY DIFFERENCE

507.387.6031 | w w w. e id e b a i lly.com

Financial Advisor offers Investment Advisory Services through Eide Bailly Advisors LLC, a Registered Investment Advisor. Securities offered through United Planners Financial Services, Member of FINRA and SIPC. Eide Bailly Financial Services, LLC is the holding company for Eide Bailly Advisors, LLC. Eide Bailly Financial Services and its subsidiaries are not affiliated with United Planners.

60

CONNECT Business Magazine

MAY/JUNE 2016


Very New or Re-formed Businesses or Professionals New To Our Reading Area

BLUE EARTH

Oswald Brewing Company John Oswald took quite a meandering path before ending up with his own business in Blue Earth, but he’s definitely glad to be back in the southern Minnesota area. Oswald, a Frost native, moved out to Colorado with his wife Tammy after the two of them graduated college. There, they got into the local craft beer scene, even starting to brew their own drinks at home. While they enjoyed their lives in Colorado, though, they longed for a homier place to raise their two kids. “It was a big, rushed lifestyle compared to raising the girls in more of a community that my wife and I were used to, something smaller and more genuine,” Oswald explained. During a trip home to Minnesota to visit family, they happened to come through Blue Earth and notice that a building on Main Street was for sale. It was in decidedly bad shape, but the couple saw the potential there to open their own brewery. They worked with the City of Blue Earth, which revised its ordinance against breweries, and ended up buying the building in 2013. The Oswalds tried to keep as much of the historic building, which had once been a bank, original as possible, only renovating or repurposing what they had to. They officially opened Oswald Brewing Company in October 2015. They don’t have any employees yet, though friends and family will occasionally help when needed. They offer

six beers on tap (Oswald’s personal favorite is the Berserker), along with seasonal specials, and have already sold 4,700 pints across the bar. “We’ve been getting really nice support from the local community and the extended community as well,” Oswald said. “Considering how little we’re advertising right now, I’m feeling really excited about what’s happening.” OSWALD BREWING COMPANY Address: 110 South Main Street Telephone: (507) 526-3101 Website: oswaldbrewingcompany.com

ART SIDNER

To be considered for one of three spots in the July Hot Startz!, email the editor at editor@connectbiz.com. Businesses considered must have started—or changed greatly in form—within one year of our publishing date. Professionals chosen must be new to our reading area.

20% OFF

your next order *

GET YOUR BUSINESS NOTICED ALL YEAR with personalized cards from Carlson Craft

Stop in today, and together we’ll find the perfect design for you

1750 Tower Blvd., North Mankato www.stationerygift.carlsoncraft.com 507.625.0547

*Offer expires 7/31/16. Valid on in-store orders only. MAY/JUNE 2016

CONNECT Business Magazine

61


ASK A PROFESSIONAL

Jeff Wondra Sales Manager Snell Motors Mankato

The Evolution of the Automotive Sales Consultant Directly Benefits Consumers

Like many industries, the automotive landscape has drastically changed over the years. Vehicles have more technology that comes standard, and innovative solutions are being added with each passing year. There are several manufacturers as well as dealerships, making the car buying process full of countless options to sift through. On top of that, the internet has become an integral part of the shopping process. Sites like AutoTrader, Cars.com and True Car present varying ways to filter and find your next vehicle, all filled with different nuggets of information on vehicle options, price points and dealer comparisons. Because of these changes to the car shopping process, the sales profession has changed as well. Sales consultants are becoming savvier and even more relatable. Their stint as a sales person is turning into a reputable career, and as a consumer you can only benefit by the bar being raised for sales consultants. Rather than solely focusing on finding the right car for the right price, shift the focus to include finding your next automotive sales consultant and learning how to best utilize them in your car shopping experience. Don’t only look at online reviews for dealerships and vehicles, but also sales consultants. Google reviews and sites like Dealer Rater will provide good insight on reputable sales consultants.

Trusted Advisor

There are plenty of factors to consider when you start the process of buying a vehicle. Are you looking for new or preowned? Both have advantages. Should you lease or buy? Leasing provides a predictable financial scenario, but it’s not always right for everyone. What features are important to you? Aesthetics, safety, space, towing capacity? Maybe all of the above. The investigative list of questions could go on. Consumers are overwhelmed by these 62

CONNECT Business Magazine

From Typical Sales To Trusted Advisor

MAY/JUNE 2016

factors, the information they find online and even the technology in varying vehicles. Instead of trying to become an expert on all of it, sales consultants need to be viewed as trusted advisors. They understand vehicles’ technology, financing options and comparisons between makes and models. They can simplify the endless clicks of information online and put it into relatable terms. A sales consultant will do the investigation for you and ultimately match a vehicle to best fit your wants and needs. Rather than spend more time researching and feeling the stress of information overload, use your sales consultant to make recommendations and view them as a trusted resource in the process.

Well-Connected

Gone are the days when dealers could simply throw up balloons, grill hot dogs and rely on all the in-market shoppers to spend their precious Saturday kicking tires at a dealership. People are busier. Time is highly valued. And they can do the bulk of their research and shopping online. Showroom traffic has decreased and dealer website traffic is at an all-time high.

Because of this, guests who come on the lot or in the showroom are immediately attended to – it’s not meant to be annoying or high-pressure, but to deliver a high level of customer service. Nothing pains a dealer more than knowing a guest walked around twenty minutes without being helped. When consumers aren’t driving on the lot, sales consultants continue to work their business and make outside connections. From volunteer groups and community service clubs, to neighborhood groups and networking organizations, sales consultants are branching out. You don’t necessarily have to set foot on a dealership lot to start the car shopping conversation. The sales consultant has been someone who you’ve gotten to know through another avenue, either personally or professionally. When the time comes to purchase a vehicle, you have a trusted resource to contact. Finding a great sales consultant is like finding a great accountant, doctor or hair stylist – you’ve built a connection and you trust them in their profession. These relationships aren’t built for just one-time transactions, but lifelong relationships.


Sponsored Content

Connectivity brings business to sales consultants as well as your own business. You often find that sales consultants prioritize doing business with those who do business with them. The reciprocation and referrals are yet another added benefit of finding a trusted sales consultant.

Relationships

It doesn’t matter if it’s a college student looking to purchase their first vehicle, a family with their fourth child on the way needing more vehicle seating, or a retired couple needing a more comfortable car for their cross-country travels to visit family. Sales consultants want to get to know their clients. By opening up and sharing your vehicle needs, sales consultants can build a deeper relationship with you, rather than just sell you a car. A common question in an email, text and even Facebook message to sales consultants is, “What’s your best price on that car?” While price continues to be a key factor in decision-making, sales consultants want to better understand your situation. Are you more interested in the price of the vehicle or the monthly payment? After investigating, it’s common that most car shoppers are concerned with what it will cost them per month and how it will affect their overall household budget. To arrive at that point, sales consultants need to know if you have a trade, if you’ll be putting any money down, and if you plan to finance, among other things. Simply shooting off a “best price” isn’t fair or always the most accurate for both the client and the dealer. And similar to other industries, the lowest price is rarely the best value. Don’t be afraid to open up and get to know your sales consultant. Buying a vehicle is a big deal, and dealers know that, which is why they want to build a long-lasting relationship with you. Rather than dread the experience, let your sales consultant bring back the fun and excitement in vehicle shopping. Snell Motors is a locally owned and operated dealership, building relationships in the Greater Mankato area for more than 40 years. For more information, please visit www.snellmotors.com. Jeff Wondra joined Snell Motors in 2006 as a sales consultant. He now serves as Sales Manager and trains all sales staff.

Experience the an Expert Advisor can make.

Deb Atwood

Jen Schmidt

507-386-SOLD (7653) 500 South Broad Street ∞ Mankato lumiererealestategroup.com Illuminate. Simplify. Perform.

Innovative Craftsmanship Made Simple. New Homes • Renovation Custom Cabinetry

507-345-5411 www.holmgrenconstruction.com Lic. #BC135111

Member FDIC

We always put you FIRST!

Experienced Lending

with a long history and background in agriculture!

Craig Bode Vice President Ag Lending

Visit us online at www.fnbmn.com Mankato 507.625.1121

St. Peter 507.931.4000 MAY/JUNE 2016

Gaylord 507.237.5521 CONNECT Business Magazine

63



Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.