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Contents

THE MAGAZINE FOR GROWING BUSINESSES IN SOUTHERN MINNESOTA

STAFF & CONTRIBUTORS Publisher: Jeffry Irish

COVER STORY

Editor: Daniel J. Vance

China Patterns

Art Director/Staff Photographer: Kris Kathmann

Interim Advertising Manager: Daniel J. Vance

PROFILES

Circulation: Dave Maakestad

Caregiver Deliverer

Contributing Photographers: Jeff Silker, Art Sidner Contributing Writers: Carlienne Frisch, Chris Edwards Production: Becky Wagner Kelly Hanson Josh Swanson

CIRCULATION 8,400 for May 2012 Published bimonthly

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

Mailing: Midwest Mailing, Mankato Cover Photo: Jeff Silker Photography

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E-mail: editor@connectbiz.com (please place press releases in email body) Web: www.connectbiz.com Phone: 507.232.3463 Fax: 507.232.3373

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Editor’s Letter Off-The-Cuff

Locally owned Connect Business Magazine has ‘connected’ southern Minnesota businesses since 1994 through features, interviews, news and advertising.

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EDITOR’S LETTER

Another Stevens-Vaughn Issue If officially asked to create a new adjective for Merriam Webster Dictionary, I probably would choose “Stevens-Vaughn,” which would be a contracted form of our cover story’s name, Stevens Vaughn. I would define this new word “Stevens-Vaughn” as something or someone “extraordinarily interesting” or “so unique mere words can’t describe.” So with this new adjective, you could have a Stevens-Vaughn day at the beach and a Stevens-Vaughn afternoon or my daughter could have a Stevens-Vaughn guest speaker at Bethany Lutheran College. He is extraordinarily interesting to say the least—just hearing Stevens Vaughn describe his own Stevens-Vaughn summer in the early ‘80s singing Hank Williams songs in a Russian hotel in Yugoslavia was enough to hook us. The person known as Stevens Vaughn is a world-class designer who co-owns Fairmont-based Kaldun & Bogle, a ceramics décor importer. Now living in Fairmont after 20 years in China, Vaughn collaborated on designing the crystal sarcophagus for the Queen of Denmark and has product he designed gracing shelves in Macy’s and Neiman Marcus. Other Stevens-Vaughn stories this issue are mommy organizer Kimberly Danger of MommySavers. com in North Mankato and caring Sharon Chader of Elder Care Services in Madison Lake. Our Hot Startz! Section features businesses from Le Sueur, Henderson, and Madelia. Sursum ad summum,

Daniel J. Vance Editor

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By Daniel J. Vance Photo by Jeff Silker

Fairmont farm upbringing leads to world-class designer finding his way in the world.

One summer about 30 years ago, he sang Hank Williams and other country artists’ songs and played guitar for polyester-clad Russian tourists in an Adriatic island hotel. In the Peace Corps, he imbedded himself in a sweltering Philippines revolutionary war zone and 25 years later with a group of artists worked there alongside impoverished basket weavers. Through the Hafnia Foundation, which he co-founded, he explores cultural diversity in artistic expression, has collected nearly 6,000 Chinese propaganda posters from the ‘50s to ‘80s, and provides resources for artists from Cyprus to Iceland. He has taught painting and sculpture to Beijing University students. He mentors budding artists through Europe’s Dieter Roth Academy and has exhibited artwork in Xiamen, China. Oh, and along with legendary Danish sculptor Bjorn Norgaard and others, in perhaps his crowning achievement, he helped design the crystal sarcophagus for the Queen of Denmark. Meet Fairmont native Stevens Vaughn, southern Minnesota’s rendering of the TV commercial-appearing Dos Equis Man, the Most Interesting Man in the World. The rumor is that when Vaughn walks into a bar, Dos Equis Man buys him a beer just to hear someone more exciting. At present, Vaughn earns a living mainly as a world-class designer of private label ceramic tableware and decorative accessories. You can purchase his ceramic creations in Neiman Marcus and Macy’s. The business he and his partner co-founded in 2003, ceramic décor importer Kaldun & Bogle, has a warehouse in Fairmont, Minnesota, and showrooms through the United States. Fresh from two decades of building business in the People’s Republic of China and at least for now, he has begun calling relatively pedestrian Fairmont home. Yet change rarely bothers Vaughn. It excites the Most Interesting Man in Southern Minnesota. continues > 8

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China Patterns

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To you, what is at the core of doing business? How you make people feel is the essence of business. It is so simple. Maya Angelou said people forget what you say and do, but they will never forget how you made them feel. And if you make your customer feel good, they will come back. And if you don’t, they likely won’t. While in China, I studied the Greek foundations of our (Western) civilization. From it, I learned three things: there is dialog, debate, and tragedy. Dialog requires trust, which is what we have here (in this interview). Debate requires respect. And tragedy requires nothing. (Laughter.) Last year, I flew around the United States interviewing people in many industries to get the general vibe of business and where it’s headed. I realized Americans have lost the ability to dialog. “Lean” is the new mean. People don’t talk to each other with trust anymore. Could you define dialog and debate, especially? When I first got into this business, I went into Sears, for example, and said to their buyers, “This is what you should be doing.” Instead, I should have been saying, “What do you think?” or “Tell me about your business.” Because I was so young when I started in this industry in the ‘80s, people—Stanley Marcus of Neiman Marcus, for example—would sit down with me as a mentor and just talk with me. There was a great deal of trust in that dialog. Trust in terms of? We could say anything. Nothing was on the record. We talked about personal things. We created this dialog and as a consequence came up with great merchandising programs. If you just provide a forum for people (customers or buyers) to talk, they can come up with their own solutions. You don’t have to be master of the universe. I discovered being playful is good for business and I remain playful. For instance, our company has grand, baronial dinners for clients. I for fun also have sent pictures of stewed rat (to customers).

Stevens Vaughn | Kaldun & Bogle

I take it stewed rat is something good in China? (Laughter.) I wouldn’t say it’s good, but it’s novel. (Laughter.) It’s worth eating once. From developing a personal and playful relationship with very powerful people, I began to realize in every corporation a structure exists. You go into a boardroom—and I entered the boardroom very early in life—all these MBAs and key people with a business strategy are debating their ideas using their ways and their points. There has to be a certain amount of (mutual) respect for that process to work. But after the boardroom debate ends, [the way I do it is invite] a select group of people into a dialog, which I call the “sandbox.” That’s when people after the debate get together for dinner, maybe have tequila, whatever, and start talking about the real issues of the business. There is no longer debate. It’s in a trusting environment, where people can talk. I refer to that as a sandbox. I have made proposals at Georgia Tech, and I hope Valparaiso, to begin building actual sandboxes. Literal sandboxes? Literal sandboxes, to teach people how to dialog. Dialog requires construction and deconstruction in an environment. But the idea is that from dialog comes constructive innovation. Companies that play are the winners today, such as Google. To attract the top talent, you have to provide a playful environment. When you get in that sandbox with the billionaire, for instance, they don’t want to talk about money. They want to talk about milking a cow, about art—anything but money. People make that mistake more than anything. They presume the people who can help them most are interested in discussing only finances. Make yourself interesting. Be playful. And you will attract the people who can help you. Google and Apple have created an environment where ideas prevail over strategy. The king of those companies is the idea. They come up with innovative ideas in dialog and debate the merits of the ideas. Many companies today have been so shell-shocked by the economic crisis they don’t have the trust level or confidence to talk about their ideas. If going to meetings in many of these companies,

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China Patterns

you will hear people say, “Oh, we tried that and it didn’t work.” Meaning they equate an idea with a financial expense? A financial or emotional expense. When people have become hurt (or burned) after trying a particular idea, they often lose trust to embrace new ones. They would much rather look at things from a rational standpoint. But prior to the debate of rationalization comes the idea. You have to go first into an environment of safety to come up with and develop ideas. For example: the idea we had for the sarcophagus of the Queen of Denmark. A sarcophagus is similar to a tombstone and the Queen’s ashes will one day be interred in it. You prepare a sarcophagus long before the royal dies. I was doing an exhibition with the great sculptor from Denmark, Bjorn Norgaard. At the time, I also was making perfume bottles for a large retailer. He had this idea of making this crystal sarcophagus for the Queen and asked if I would work with him. Of course, I said, we could do anything. Out of that idea was born the crystal sarcophagus, which we (as advisors along with Norgaard) spent eight years figuring out how to make. All the companies he tried to get to make the sarcophagus had reasons why they couldn’t do it. But after embracing the idea it could be made, we started studying how people made telescopes out of glass. We discovered in the Czech Republic people making giant lighthouse prisms. The idea went from Europe, to China, to Corning, and back to Europe. If we’d had a strategy rather than an idea, the project never would have happened. An idea doesn’t require capital. If an idea is good, the capital will be a consequence of the idea. As for the sarcophagus, we never thought we could not make it. I think of developing business ideas as a Levolor blind. Most people out there are trying to peek through the blinds and aren’t looking for the string. There is a string to everything. If you look for the string, and pull it, everything opens up like a picture.

China Patterns

Hafnia Academy “Hafnia” is the Roman word for Copenhagen, Denmark. The Hafnia Foundation, which Stevens Vaughn co-founded in 2000, collects and preserves art from around the world for the purpose of exploring cultural diversity. The collection consists of sculptures, paintings, and about 6,000 Chinese propaganda posters from the ‘50s to ‘80s. The Foundation has sponsored Chinese and European artists, projects, and exhibitions in China, Europe, and Fairmont. Historical plaque on The Grand Hotel

Stevens Vaughn | Kaldun & Bogle

I was doing an exhibition with the great sculptor from Denmark, Bjorn Norgaard. At the time, I also was making perfume bottles for a large retailer. He had this idea of making this crystal sarcophagus for the Queen and asked if I would work with him. Of course, I said, we could do anything. Tell me about your upbringing? I grew up on a Fairmont farm. I used to milk a cow before school— out of choice because the cow had lost her calf. I also wanted the experience of watching all the cats line up around the cow and shooting them with milk. There was a certain delight that came from doing the oddball thing. I didn’t like going to school. I couldn’t comprehend some classes. The way my mind works there are certain things I just don’t get. When I do get them and the light goes on, I really get them. But when I don’t get them, I just don’t have any comprehension. I have a type of autism and don’t have any ability for rote learning. For example, I don’t have an ability to learn spelling. My learning is very

experiential, and things must be integrated and connected to each other for them to make sense. In school, I didn’t comprehend geometry. I still don’t know what geometry is. In the ‘70s, I was being beaten and slapped around by my teachers because I was so frustrating for them. During that whole time in my life I was so unhappy and just kind of left it by going to college. The teachers, I’m assuming, thought you were resisting? They probably thought I was arrogant. I have no criticism of them because they were a product of their environment. You can spend a lot of time being angry about your childhood, but at a certain

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China Patterns

This is what was extraordinary about growing up in southern Minnesota: we didn’t really have any barriers to feeling the world was anything but ours. In small towns you don’t see the walls other people see—at least I didn’t see them.

point, it is what it is. What I drew most from my childhood were the friends of my parents—they were an extraordinary group and so worldly.

food she had, she would lay out this gigantic spread. She showed wonderful hospitality. They were poor, but yet whatever they had was yours.

Worldly in what sense? In the sense they read a great deal and were socially aware. Their influence combined with National Geographic was great. (Laughter.) This is what was extraordinary about growing up in southern Minnesota. We didn’t really have any barriers to feeling the world was anything but ours. In small towns you don’t see the walls other people see—at least I didn’t see them. I was raised to do whatever I wanted in life, along with all our friends’ kids. I had an idea I could have an extraordinary life. But I didn’t plan it. I also grew up in a culture of abundance. You talk about major influences in your life—my grandmother was one for me. Whatever

What did you do after high school? I went to South Dakota State, where my brother went, and I flunked out. They then sent me to Worthington Community College. After flunking out there at 19, I began calling the Peace Corps every week. I wanted to join the Peace Corps so bad, and ended up being the youngest person in it.

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What was so compelling about the Peace Corps? Oh, adventure, and the idea of going into the world and living in a Philippines jungle. What a fabulous adventure. I played guitar, and had studied opera singing, and ended up singing at the Marcos parties in Manila and Embassy parties. It’s very important

to me to feel things. I feel the market and feel life. I wanted to be in the war in the Philippines, so I went to the war zone where there was shooting and bombing. In 1979 in Manila, the Philippines was rich. Sugar prices were high. They were releasing a thousand doves at weddings. I worked with them about creating an art movement. It was perfect for me at that point: a wonderful culture and people. What came next? When I came back from the Peace Corps in 1982, we started a retail store in downtown Fairmont called Das Lebenheim. After coming home from the Peace Corps, I was basically unemployable. We started a store with a cheese counter down the center and fine china down the edges, and for any person buying a hundred dollars worth of cheese I visited their home to give a lecture on cheese. It was so fun.

Stevens Vaughn | Kaldun & Bogle

I started going to Minnesota State and was flunking out again. I figured something was really wrong with me, so I had doctors test me and they discovered I had a visual-spatial gift. I was able to sort and integrate things visually and spatially. All of a sudden, I went from having flunked out of college three times to being a genius. They said there was a place in any school in the world for people with this gift. So I drove to Macalester College to test what they said. I went to the admissions department and said I wanted in. They said I had to fill out an application. I said I wasn’t good at applications. They asked why I wanted in. I said it was because their buildings had red brick, white trim, and looked nice. They let me in. My brain does not have markers for years. So I began studying primordial spirituality, and seeking answers on such things as: What was it like for people to first discover fire? What was the transformational aspect in our collective consciousness of discovering fire? Sounds a bit Jungian. It is somewhat. Somehow there was this transformation and all mankind discovered fire quickly. And then there came a second transformation with agriculture. I got very involved in learning how the col-

lective consciousness of humanity evolved to take something always around them and transcend that by making it part of their lives. I was also interested in what the third transcendence would be. If it happened twice, it would happen again. That summer, I had a job as a country western singer in Yugoslavia. I loved Hank Williams, played guitar and sang, and lived on an island in the Adriatic Sea in a Russian hotel. That fall, I returned to Macalester. A friend of ours had a company selling silk flowers and plastic Japanese trays. I drove a van for him, and about my fifth day on the job, they left me to pack up samples and drive to the next place. About five buyers came in at once. I said I wasn’t a salesman. They wanted to know the price for 35,000 (units). I couldn’t reach my company, so I called the factory and then Japan. They bought the product and said I had to be in New York the next day to present them. This was my first week on the job. I later sold a half million dollars worth of product to them. I didn’t know then the average order was $150. Because of (my learning disability) I don’t have a sense of scale. To me, $100 is the same as $100 billion. From doing this job, I discovered I had a great gift of being able to go into very large retailers and just talk to them. I

was only 24, and Stanley Marcus was just wonderful. I went into Gumps, JC Penney, Bloomingdale’s. My job was to go around and talk to these people, and ask what we as a company could make for them. At this level of business, you have to be very playful. They have to want to enter the sandbox with you, where they can talk to you about their needs, frustrations, and what they aren’t getting. At that point, it’s up to you to say you can make or find that product for them. About 1985, I met a Taiwanese gentleman at a show and we formed a glass company. I went to Taiwan and began designing glass product lines. I knew what U.S. buyers wanted. I remember designing dog and cat dishes from these factories in France. Nieman bought them. I would fly around the world and make things for people. It was so easy. It didn’t take capital. I just took basic, fundamentally sound ideas that I could defend in terms of being able to make money. Was it then you worked for Fitz and Floyd? It was a giant ceramics company and I became vice president of a division at age 29. Its products were of Japanese-American design and made in Japan. They wanted someone to go to Japan to learn how to make

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the product because no one in the new management team knew how. I was told to use the really old, old Japanese sculptors. Our whole thing when I was there was drinking, sculpting, and listening. They taught me the most fundamental aspect of sculpture—that without great flaws, beauty didn’t exist. Most sculptors make the mistake of trying to make their work perfect. I spent nine years studying with them.

This is one problem I have with American businesses. I feel many great ones have lost their fiduciary responsibility to the people they serve. It’s so essential everyone along the entire supply chain survive, including customers and suppliers. If you keep that in mind, you will make money. In the boardroom, I would walk in and say (because of my learning disability) I couldn’t read the reports. Of course, I had done incredible due diligence beforehand. I knew everything going on in my division. I would ask: “Could you just tell me which division is making money and which isn’t?” I would tell the people that hadn’t made money to keep quiet and let the people who had to talk first. I was so evil. They would say there was more to business than making money, and I would say they were wrong. In business, I am focused on making money. It’s a game, and if you don’t make money, no matter how you play the game, you haven’t scored. You aren’t there for yourself. You are there to help investors and help the

Stevens Vaughn | Kaldun & Bogle

How many languages can you speak? I would say, Johnny Walker, and…(Laughter.). I so do not believe in learning the language of people I’m with because it gets in the way of seeing what’s going on. If you’re trying to speak Chinese to Chinese people, for example, you’re missing all the nuances of what’s happening. Words are a small part of language. I have a very good interpreter. In 1995, you started Kaldun & Bogle (K&B). I wanted to do something in the States and, mostly importantly, in Fairmont, and create a premium product line utilizing what we had been doing for others. Kaldun is my grandmother’s maiden name. Bogle is my partner’s mother’s maiden name. Kaldun & Bogle is reflective of what I thought the market needed, which was a reasonably priced ceramics décor line to serve small, independent retailer accounts and to offer what they couldn’t get from other sources. Most importantly, Kaldun & Bogle gives us our own sandbox in which to test new

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company. As a company director, you have a personal responsibility to every person in the company. It is so non-personal, ego-driven. Again, your happiness is a consequence of how well you do your job to make those people happy. You have a fiduciary responsibility. This is one problem I have with American businesses. I feel many great ones have lost their fiduciary responsibility to the people they serve. It’s so essential everyone along the entire supply chain survive, including customers and suppliers. If you keep that in mind, you will make money. If not, you will not be in business long. I am mindful of this, especially as a designer. I design for a high-end English company, Spode. I was with them just last week. As a designer, I do not design for my taste. It’s not a personal expression. I design for the market. With Fitz and Floyd, I started in Japan, and from there took the company to Korea, Indonesia, and Sri Lanka. I lived in Sri Lanka for years and commuted to Japan, Korea, and China. When (our) manufacturing stopped in Japan, it splintered into all these other countries, and eventually they all came home to China.

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ideas and products with independent retailers before selecting product for large retailers like Macy’s, Gumps or Bloomingdales. Successful small retailers are by definition people who are playful, fun, and engaged with their customers. They speak our language of caring about their customers and products. What have been highlights of your dialog process? When I flew around the U.S. last year to get a grip on the market, I asked retailers about their ideas for the future. They said, “To survive.” That’s very much the feeling of most independent retailers. The market used to be more about buyers buying products with a theme. Now they have such little confidence in themselves, they are buying programs.

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Tell more about your company. The product is made in China. The factories I work with receive a lot of low-end orders from other companies and use our product as a means to train their workers in ways to increase their quality. I actually go into the factories and teach workers how to paint. I also lecture about the relationship between design, playfulness, and creating one’s own life as part of the product development process at Beijing University and smaller technical schools. It’s a lot of fun. What are the benefits and drawbacks to farming out production rather than having your own? We’ve had our own factory. There is a different kind of mentality

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Dieter Roth Academy Stevens Vaughn has been active with Dieter Roth Academy. Roth (d. 1998) was known for his unorthodox art using food as a medium and for his books on art. According to its website, the Academy exists in part to act “as a forum for Dieter’s ideas, whether directly as a teaching academy or as an academy for friends, scholars, and interested parties to discuss and develop ideas that Dieter Roth has left us in his writings, work, and above all in his living example in daily life.”

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Stevens Vaughn | Kaldun & Bogle

to owning a factory and being a designer. As a designer, you’re a cheerleader and constantly teaching them to improve. You don’t have to get bogged down in looking at everything from the standpoint of whether it’s possible or practical. As a designer, you are encouraging them to take the next step and use a particular technique. I can help them because I have studied every aspect of it. I will go into a factory and look at what they’re making and try to figure out what new things we can make, and how to take existing product and upgrade it rather than impose a design. If they are making this widget, for instance, I will say we can make that in a different way and have high value. Designers often impose designs on factories. I prefer to come alongside the factory and create a product with them.

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When did you move to China? In 1992—and the ten years following it I call China’s Golden Years. For those ten years, labor was very cheap and the Chinese wanted to learn everything we could teach. I loved those years. For me, and as China matures, I now find I am needed more in teaching in the universities and mentoring people on a different scale. I used to mentor factories. Now I think of myself as mentoring the sons and daughters of factory owners. As an American in China, what were some challenges you had in adjusting? Probably none. (Laughter.) I’d like to say there were some great cultural differences, but where I’m at is where I’m at home. I made wonderful friends there. Home for me is where my friends are. So it doesn’t matter if I’m in Fairmont or China, I’m at home. My friends in China are extraordinary people. We formed an art group there with artists from all over the world and this group now does exhibitions

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China Patterns

Getting to know you:

Stevens Vaughn Born: June 5, 1958. Education: Fairmont High School, 1976; Attended South Dakota State, Worthington Community College, Minnesota State University, and Macalester College. Lecturer: various Chinese educational institutions, including Beijing University. Member: Dieter Roth Academy.

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China Patterns

worldwide. I’m a professor at Dieter Roth Academy in Europe. With this group of artists, I spent November on a Philippines island preparing an exhibition with impoverished basket weavers. Our group tackles issues from a social viewpoint. I have friends everywhere. I got this from growing up in southern Minnesota. My mother and her friends are still friends after

55 years and their children are still friends. This gave me the foundation for being able to go around the world and to China. What are some challenges you see China facing? The greatest challenge China has is to keep learning. That’s what built China: people voraciously learning new things. It’s hard for

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people to keep learning as they age. They need to remain curious. That’s the word: curious. Would you add the word “playful”? My new lecture at Dieter Roth Academy is about being playful in business and probably what I will lecture on more in China. What I can teach China now is to go the next dimension in business and remain playful as it was 15 years ago. They need to keep that playfulness going. Often when making a lot of money people think they no longer need to be playful. They begin taking themselves too seriously.

~ Joe Willaert, Partner

L to R: A selection of ceramic pieces designed by Vaughn.

MAY/JUNE 2012

Do you have other businesses? I have. I would like to buy a ranch in South America. I’m at the age where I will return to the farm. People ask me what’s after China. I say, “The beach.” But the truth is it’s time to return to the farm. Showing up is half the game in China and the other half is knowing when to return home. I’m at the point of coming home and where home will be is in the process of being defined. I helped create a restaurant in China, and am half-owner of a company called Hafnia, which creates fine art. I primarily make money designing and selling to retailers. Where can a person find your designs and art? I’m a designer of private label in Macy’s. The product isn’t under my company name, but under Spode of England. I’m widely

Stevens Vaughn | Kaldun & Bogle

distributed, but under different brand names. What has worked for me in business is I have been the keeper of the idea. I love formulating ideas. If I deviate too much from that role, we don’t make money. Where do you see your life heading? More into helping big and small businesses understand exactly what we have been talking about today. I also see myself mentoring businesses in the integration of art and business. For example, the industrial revolution divided our work and personal lives. I want to help companies and people get back to being whole again,

so they would grow like rings on a tree rather than as pieces of a pie. This is my gift. I am still the farmer from southern Minnesota. I’m still very whole. Personally, I will be here in Fairmont at least a year because of family. What’s the best thing that ever happened to you? Growing up in Fairmont in an environment of good friendships—without a doubt, because through friendships you learn to trust. Editor Daniel J. Vance writes from Vernon Center.

THE ESSENTIALS

Kaldun & Bogle Address: 507 Downtown Plaza Fairmont, MN 56031 Phone: 877-472-9990 Email: inquiry@kaldunandbogle.com Web: kaldunandbogle.com

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MAY/JUNE 2012

CONNECT Business Magazine

IN MEMORIAM

WILLAM DEWEY CARLSON Founder of Carlson Craft

The March morning he died, few southern Minnesotans under 55 knew anything about 97-year-old William Dewey Carlson and his legacy, and fewer still knew he had died. The Mankato media didn’t make anything substantive of his passing, which made his life seem more a footnote to southern Minnesota history rather than the exclamation point that could have been. William Dewey Carlson was a business pioneer and close friend, and I feel indebted

to share in this special section my view of what made him so. Carlson began Carlson Wedding Service inside his 419 Mound Avenue home in Sibley Park in 1948 and eventually moved his Heidelberg printing press and offices to 1015 South Front. By 1959, the business had grown to 20 employees. Out front on the sidewalk that year Dewey chased down newly married MSU student Glen Taylor to offer a job printing napkins. Business went really well over the next 15 years. Then in 1974, at age 58 and after more than 25 years of printing wedding materials, sole owner Carlson sold his 500-employee, North Mankato-based Carlson Craft to Glen Taylor and two other executives. Several years later, he sold Taylor the manufacturing facility Carlson Craft had been renting. You know the rest of the story—at least Taylor’s part. I called him “Dewey” because I could get away with it and he enjoyed it. We became friends through Connect Business Magazine after I needed a businessperson to provide backlight for our November 1996 Glen Taylor cover story. He made me feel comfortable right away. Over the telephone (and later in person) he reminded me somewhat of M.A.S.H.’s Radar O’Reilly

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Then in 1974, at age 58 and after more than 25 years of printing wedding material, sole owner Carlson sold his 500-employee, North Mankato-based Carlson Craft to Glen Taylor and two other executives. Several years later, he also sold Taylor the manufacturing facility Carlson Craft had been renting. You know the rest of the story—at least Taylor’s part.

SUBMITTED PHOTO

trying to channel an inner Mr. Rogers. A couple years later, he and I began working on his autobiography, where he allowed intimate access into his personal and professional life. In years following I visited him and his wife Vi perhaps dozens of times, first at their North Mankato home, then Realife Cooperative, and finally at Keystone Communities. We had much in common. We both married at 31, had two children, faced difficult childhoods, and had similar outlooks on work and money, Christian faith, and people with disabilities. In appearance and personality, William Dewey Carlson in his heyday probably would not have made a profound first impression on many current Connect Business Magazine readers. (Again, imagine Radar O’Reilly channeling Mr. Rogers.) Yet at times he did great things. He had a great idea at the right time and chose a great means to sell his great idea, i.e., he was a post-World War II wedding printer that would use a vast distribution network to do the selling for him. Carlson hired and promoted great people and made prudent financial decisions. He deeply disliked debt, which created a financially sound organization poised for growth and one better able

to withstand market ups and downs. And he naturally trusted people. Finally, he put the customer’s needs first, even if that meant making his customer-friendly pricing perhaps a little too customer friendly. Dewey was a great friend. Rather than a cell phone or email to communicate, he used up until his death a manual typewriter to peck out letters mailed the old-fashioned way. These letters were masterpieces. Some of you probably still have yours. One letter typed out manually and sent several years ago read simply, “Thank you and come back soon again to visit.” Knowing his declining physical condition—he had Parkinson’s disease—and the turtle-like speed with which he typed, he probably spent an hour preparing and typing that letter and envelope. Only a true friend would do that. His quiet outer shell often hid a warm heart. He cared deeply about employees and customers. He was well on his way toward achieving his goal of annually donating five percent of Carlson Craft profits to charity when he sold in 1974. After the sale, the first recipients of his newfound wealth were his grandchildren, church, and community. William Dewey Carlson usually thought of others’ needs first. May we all go the way he did.

CONNECTING BACK

1 YEAR AGO

MAY/JUNE 2011

keep them healthy and happy. occupational medicine services Mankato Clinic Urgent Care @ Adams Street is your provider of Occupational Medicine Services. Our staff will collaborate with you to help manage risk factors, keep your employees healthy and happy and get them back to work quickly and

Minnesota Hospitality Hall of Fame 2009 inductee Doug Anderson of North Mankato was our cover story. His introduction began: “Doug Anderson lucked into it. He would be first to tell you. But nearly all businesspeople luck into opportunity. Connect Business Magazine over its 17-year history has featured hundreds of businesspeople that happened to be in the right place at the right time….But it’s the very best who seem to have an innate ability to see, size-up, seize, and build that opportunity into an economic skyscraper benefiting everyone.” Companies profiled: Jones Metal Products (Mankato) and Russell Associates (Le Sueur). Memorable quote: “I have read some of the cover stories you have published in Connect Business Magazine. Most people you write about had career paths and goals. I didn’t have a career path drawn out. It just happened.”—Doug Anderson.

5 YEARS AGO

MAY/JUNE 2007 Our cover story was Art Olsen of Beacon Promotions (New Ulm). Companies profiled: Dayport (Mankato) and On The Wall (Fairmont). Memorable quote: “I’ve been involved in selling Advertising Unlimited (of Sleepy Eye) twice: first in 1987 as a public company, when we sold AUI to R.L. Polk; and in 1999, when R.L. Polk sold AUI to Norwood Promotional Products.”—Art Olsen.

safely after an injury. 10 YEARS AGO No appointment is necessary for most examinations. Just walk in for prompt, professional service. For additional information call 507-385-4075 or visit www.mankatoclinic.com

MAY/JUNE 2002 Cover interview: Tom Engdahl of Brown Printing (Waseca). Profiled companies: Timeless Images (Mankato) and Meter-Man (Winnebago).

15 YEARS AGO

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Cover interview: Starr Kirklin (Mankato). Profiled companies: Southern Minnesota Construction (Mankato) and Emerald Travel (Mankato).

Read the entire articles at connectbiz.com

By Carlienne A. Frisch Photo by Kris Kathmann

Madison Lake business owner helps clients remain independent by filling healthcare gaps.

“Growing older presents many challenges in health, lifestyle, and relationships. We help our clients meet those challenges with dignity and respect,” said Sharon Chader, the founder and owner of Elder Care Services, which operates from the Chader home on acreage on the edge of Madison Lake. (Employees, including a bookkeeper in St. Paul, work from their homes.) Elder Care Services serves 70 clients within an 80-mile radius of Mankato, with branches being developed in Willmar and Rochester. Clients range in age from elderly clients in their 90s to developmentally disabled adults in their 20s. At the time of the Connect Business Magazine interview, the oldest client had celebrated a century of life and was still living on her own. “My staff and I work with older adults, as well as vulnerable adults of any age, to keep them living independently as long as possible,” Chader said. “When they can no longer do so, we make the transition to an assisted living facility or nursing home as easy as possible. We provide caring and continuity. We’re often with our clients when they take their last breath.” Elder Care Services offers case management, advocacy, assessments, crisis intervention, education, guardianships, health care advance directive information, Medicare and counseling, preparation, and arrangements. Chader, a Licensed Social Worker and Certified Care Manager, founded Elder Care Services in 1996. A sign given to her by staff expresses part of the explanation for Chader’s success. It proclaims, “Faith makes things possible, not easy.” The other part of the equation is her childhood. “As I was growing up in Thief River Falls, I spent time with my aunts and uncles, watching them go through the aging process,” Chader explained. “I’ve always had a heart for older people. When I look at someone, it’s not as a client, it’s as a person I care about.” continues >

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Sharon Chader with the painting she helped a dying artist create.

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“The first person I hired was a bookkeeper because I knew I wanted to be with people and not doing the bookkeeping,” Chader said. She found her first clients through friends and acquaintances. Further referrals came from clients and their family members, and other professionals. After graduating from high school, Chader enrolled briefly in a secretarial course before marrying Duane Chader, whom she met at church. They moved to Minot, N. Dak., with the U.S. Air Force, and later to England, where the first of their three children was born. When returning to the United States, they settled in the Mankato area. Chader worked for two years in a nursing home as a physical therapy aide before leaving her job to be home with her children. At age 33, Chader enrolled at Minnesota State University to pursue a degree in social work and sociology, with a minor in

gerontology. She graduated Summa Cum Laude in 1990. She later was honored as 2009 MSU Social Work Department alumna of the year. After graduating, Chader became a hospice social worker, visiting terminally ill patients and their loved ones to provide emotional support. She did psychosocial assessments, made sure patients’ care plans met Medicare standards, and located resources for patients and their families. While participating in interdisciplinary team meetings, she learned about the dying process, and, she said, “I learned from my patients about making each moment of life

Caregiver Deliverer

Community Effort Chader facilitates a faith-based caregiver support group for people providing care to a loved one with dementia and a support group for people experiencing memory loss. She serves on the MSU Chesley Center in Aging Board, the MSU Social and Behavioral Sciences Advisory Board, and Minnesota River Area Agency on Aging Board. She’s involved with the Alzheimer’s Association Memory Walk Committee and Mankato Area Senior Provider Network Group. She also volunteers at church in the Awana program for 3rd- through 6th-grade girls. 28

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MAY/JUNE 2012

Elder Care Services | Madison Lake

count.” She also became a certified nursing assistant through classes at South Central College in North Mankato. During six years as Social Services Coordinator at Old Main Village in Mankato, Chader saw a need for a local person on whom older adults could rely when no relative lived nearby. She explained, “In today’s society, adult children often live far away, so there is no family to assist the older adult when a crisis or change occurs. There also are families in which the adult child cannot take time off from work to handle day-to-day needs and routine medical appointments for a parent. That’s why I founded Elder Care Services in 1996. It was on a limited budget, and every time there was another unexpected expense, I’d ask Duane if I should give up on the idea. His response was always ‘you can’t give up now.’ Most of our costs came gradually, and I did much of the work myself at first. My daughter Ruth and I designed the logo, which includes a cross. Friends who are accountants helped us set up Elder Care Services and bought shares in the company. They have since sold their shares back to us.” Chader chose to make Elder Care Services an S corporation rather than a non-profit because she didn’t want to have her vision

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of a ministry-oriented service possibly eroded by a board of directors. Elder Care Services holds a Minnesota Department of Health license in home management and is bonded and insured. Chader is a member of the National Association of Professional Geriatric Care Managers. “The first person I hired was a bookkeeper because I knew I wanted to be with people and not doing the bookkeeping,” Chader said. She found her first clients through friends and acquaintances. Further referrals came from clients and their family members, and other professionals. Each client is assigned a case manager who is either a Registered Nurse or a Licensed Social Worker. The case manager will accompany the client to medical appointments as requested by the client, and can provide a variety of other services, which can include serving as a client’s health care power of attorney. “Each employee has a passion for working with older adults or with people with disabilities,” Chader said. “Our goal is to promote independence and home care. We research all options and implement appropriate services in accordance with our client’s needs and wishes. Our assistance offers peace of mind to our clients and their families by providing a friendly,

THE ESSENTIALS

Elder Care Services Founded: 1996 Web: eldercareservicesmn.com Phone: 507-343-3603 Email: ecsc@hickorytech.net

caring professional who knows the client and provides caring continuity through many life changes. Even those people with family nearby often want a professional to provide advice and recommendations.” Although privacy regulations prevent employees from even disclosing whether someone is a client, within the company itself the case managers regularly share client information with one another. Thus, when a client phones the 24-7 call service, the case manager on duty is able to address any client’s concerns. When Chader began Elder Care Services, she had to put the family car into the company name and take out commercial insurance. Since it was the Chaders’ only vehicle at the time, that meant reporting all the personal miles and reimbursing Elder Care Services at the standard IRS rate. The company now has eight commercially

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Caregiver Deliverer

insured cars. A client might choose to use medical van transportation from AMV, a Mankato company, or to use a non-profit volunteer driving service. In either situation, an Elder Care Services case manager can accompany the client to the appointment. Chader’s face glows with enthusiasm when she talks about her staff. “Our wonderful staff is what makes us,” she said. “Everyone asks ‘Where do you find them?’ I truly believe God has sent each one of them to us. They come with a passion and a heart for ministry.” The staff offers not only passion and heart, but also a wealth of experience. There’s Lois, the bookkeeper, financial administrator and assistant director, who has been with Chader more than 10 years. Betti, an LSW, came on board nine years ago after working in adult protection services for many years in two counties. Patty, a public health nurse for nearly three decades, came with an extra credential when she was hired six years ago. Chader explained, “Patty was my

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MAY/JUNE 2012

public health nurse when I was pregnant with our son 28 years ago, so I knew she was good.” Three other case managers, MaryAnn, Renita and Audrey, also bring years of experience. Thirteen case manager assistants (Chader describes them as “good people that I have hand picked”) help with respite care, handle laundry and housekeeping chores, prepare meals, run errands, provide companionship, and assist clients with correspondence. One case manager assistant accompanies a client to evening theatre performances. Chader said, “We’ve even been hired to accompany a set of grandparents to an out-of-town wedding and to take them home when they got tired.” Then there are the two case managers who moved out of the Mankato area for family reasons but did not want to submit their resignations. Sarah, an LSW, is developing the Rochester branch of Elder Care Services. Kristin, who holds a Master of Social Work degree, started the Willmar branch earlier this year. The future of Elder Care Services didn’t look as rosy seven years ago. The company had hit an economic slump and Chader began asking herself “Why am I doing this?” When approached by an individual who wanted to buy out Elder Care Services and hire her

Elder Care Services | Madison Lake

to manage it, she was seriously tempted to accept. “Then I found out I would have to take the cross off of the logo and no longer write ’God bless you’ on the invoices,” she said. “It was a crossroads. I realized I needed to recommit Elder Care Services, and myself, to God. I realized my passion, commitment and calling was to keep Elder Care Services intact and with our original mission. But I so appreciated the man’s offer, which he made because he sensed I was struggling. I have the utmost respect for him, and we’re still friends.” Chader has a host of memories and stories about clients. Some, such as the woman who has subscribed to Elder Care Services’ emergency contact service for 16 years, are well and healthy. Because her children live out of state, the client has twice used the service to be accompanied to a medical appointment, and she subscribes to the 24-7 crisis hotline. Other clients rely on Elder Care Services to help them through major life changes, such as one who had lived in her own apartment for 30 years and was considering a move to an assisted living facility. Chader recalled, “She thought she knew which facility she wanted to move to, so I arranged for a tour. As I drove her there, she said she didn’t really want to move. I suggested taking a look so she at least could see what was available. I laughed and said she might like it and want to move in a week. To my surprise, she wanted to move immediately, but had to wait a month for an opening. She told me what she wanted to take from her apartment. On moving day, she

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Just The Facts 1. Siblings: The younger of two in birth family; brother is 12 years older. 2. Favorite school subjects: “Spanish, because it came easily to me and I love the Spanish culture; music, because I enjoyed singing in the choir; and American history, because I had a good teacher.” 3. Least favorite subject: “Art—I got a ‘D’ in school. I have to be able to think outside the box, and I just couldn’t follow all of the rules my art teacher gave me. When I tried art on my own, I painted nature scenes on plates, a scene from England, and the Split Rock Lighthouse from a photo. Don’t ever think you can’t do something unless you’ve tried.” MAY/JUNE 2012

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“The client had been an artist,” Chader said. “A week before her death, she wanted to paint ‘one more picture.’ I went to a craft store and bought the supplies. She tried to hold the brush, but couldn’t do so. She directed me what colors to use and what to paint, and we did a seascape in one afternoon.” Caregiver Deliverer

Charting Chader 1. Family: Husband Duane, two daughters, one son, and eight grandchildren, ages 2-17. 2. Hobbies: “Gardening—In the summer I take 12-15 ice cream pails of flowers to health care facilities or organizations. I discuss ‘Life Lessons from the Garden’ while showing how to make flower arrangements. Then residents make their own. My garden produces close to 300 bouquets each summer. I enjoy giving flowers to people who need an extra boost.” 3. Accomplishment of which most proud: “The difference we’ve made in people’s lives by helping them through Elder Care Services.” 4. Most valued possession: “Our possessions are so temporary; we have to hold onto them lightly. People are more important than possessions.” 5. Most valued intangible: “My faith, my family, and my friends.” 6. Three terms describing you: “I hope others say I am compassionate, trustworthy, and a true Christian.” 7. Your role model: “My grandmother, Myrtle Sackett, born in 1900, who put herself through business college, bought and operated a restaurant as a single parent, sold the restaurant, and then bought a grocery store she operated until she was 75 years old. Grandma is my Comment on this story at connectbiz.com hero, my mentor, and my role model. My middle name is Myrtle.” 32

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MAY/JUNE 2012

We protect our clients like we protect our children. spent an enjoyable, relaxing day with her sister. By 4 p.m., Elder Care Services had everything the client wanted moved to her new home and put away. I worked the whole day and was exhausted, but it was worth it. She loves her new home.” Chader has special memories of a client who had been with Elder Care Services for about seven years. Chader was able to use her own artistic abilities to help the client express herself during the last week of her life. “The client had been an artist,” Chader said. “A week before her death, she wanted to paint ‘one more picture.’ I went to a craft store and bought the supplies. She tried to hold the brush, but couldn’t do so. She directed me what colors to use and what to paint, and we did a seascape in one afternoon. The painting was propped in her room that last week of her life. I had the privilege of holding her hand when she died. A nephew later asked me if I wanted the painting. We don’t usually accept gifts, but this gift wasn’t from the client herself.” The seascape hangs in Chader’s home. Chader, herself, has been on the receiving end of Elder Care Services. “When I had a broken (now healed) back three years ago, I needed transportation to and from medical appointments,” she said. “I paid the company the standard rate, and a case manager accompanied me to the appointment. I was on pain killers, so the case manager took notes for me.” With Elder Care Services well into its second decade, Chader feels secure about its future, but not for the usual business reasons. “My philosophy is that Elder Care Services belongs to God,” she said. “Those times in my business when I’ve wondered, ’Will it succeed?’ I have come back to the realization that if it belongs to God, He is big enough to take care of it—and I am not. I just need to keep my trust in Him and acknowledge His ownership.”

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BUSINESS TRENDS

UNEMPLOYMENT

A NYPost.com article not long ago may have poured cold water on the falling U.S. unemployment rate: As much as

one-fourth of the recent unemployment decrease from more than 9 percent to the rate today could be attributed to people exiting the job market to file for federal disability payments. The number of people collecting federal disability has increased greatly during the recent recession. According to JPMorgan Chase, about 10.5 million Americans now—including two

million spouses and children of disabled workers—receive $200 billion a year. Wrote NYPost.com: “The sputtering economy has fueled those ranks. Around 5.3 percent of the population between the ages of 25 and 64 is currently collecting federal disability payments, a jump from 4.5 percent since the economy slid into a recession.” Until a few years ago, roughly 33 percent of disability applicants claimed mental illness as their disability. That share has now reached 43 percent. Mental illness is a hidden disability, meaning the disability isn’t apparent just looking at an affected person. Some examples of mental illness include forms of schizophrenia, bipolar disorder, and post-traumatic stress disorder. In its article, NYPost.com cited Boston College research economist Matthew Rutledge, who claimed a growing number of older, white-collar men have been applying. Federal disability payments aren’t like unemployment insurance, in which the vast majority of people return to work within a year or two. Nearly everyone on federal

disability payments stays on. Although an unemployment rate drop may seem good news on paper, the longterm trend of having one-fourth of that decrease coming from people filing for disability payments does not bode well long-term for politicians trying to balance the budget and reduce federal debt. Given the rate of disability increases with age— and America is certainly aging—look for this trend to continue accelerating if the economy remains stalled.

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BUSINESS TRENDS

CURRENCY

The juggernaut trend of countries moving towards cashless economies has no better poster child than Sweden, where paper money and coins account for only 3 percent of the

nation’s economy—versus 7 percent in the U.S. and 9 percent in the eurozone— according to the Bank for International Settlements. Reported daily.mail.uk: “In most Swedish cities, public buses don’t accept cash; tickets are prepaid or purchased with a cell phone text message. A small but growing number of businesses only take cards, and some bank offices—which make money on electronic transactions—have stopped handling cash altogether.” Some Swedish churches now use credit card readers to make offerings. Arguments for eliminating cash include taking away incentive for criminals. For example, in Sweden, some banks don’t handle cash at all, and the ones that do handle much less than only a few years ago. The Swedish Bankers Association reported the number of bank robberies in Sweden free-falling in 2008-11 from 110 to 16. Proponents further claim eliminating cash altogether would make tax evasion

and dealings among criminals much more difficult because of the creation of electronic paper trails. Daily.mail.uk reported: “In Italy—where cash has been a common means of avoiding value-added tax and hiding profits from the taxman—Prime Minister Mario Monti in December put forward measures to limit cash transactions to payments under euro1,000 ($1,300), down from euro 2,500 before.” Opponents in Sweden of a cashless society say while bank robberies have fallen, the number of cybercrimes using stolen credit cards increased six-fold from 2000 to 2011. Also, some people don’t use credit or debit cards—and never will unless forced—and many balk at the idea of someone possibly knowing every little detail of all their personal transactions. It brings forth the issue of privacy. Other people believe the subtle shift to plastic is simply a not-so-subtle means for big banks and governments to profit off transactions through user fees and taxes, respectively.

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MEDICINE

In a study published in the journal Psychopharmacology, a University of Oxford (England) team of psychologists, psychiatrists, and ethicists, found the heart disease drug Propranolol might have the unintended effect of reducing subconscious racial prejudice. In this study, 18 subjects using Propranolol scored significantly lower on a racial bias test than 18 subjects using a placebo. According to an Oxford website, Propranolol is a beta-blocker “used to treat

heart disease that blocks activation in the peripheral ‘autonomic’ nervous system and in the area of the brain implicated in fear or emotional responses. The researchers believe Propranolol reduced implicit racial bias because such bias is based on automatic, non-conscious fear responses, which Propranolol blocks.” Said study co-author Professior Julian Savulescu: “Such research raises the tantalizing possibility that our unconscious racial attitudes could be modulated using drugs, a possibility that requires careful ethical analysis.” In a related story, New York University bioethics professor Matthew Liao, in a paper published in Ethics, Policy & Environment, argued for the manufacture of drugs for a multitude of purposes to combat climate change, including his desire for a drug, in part, that could help people become more environmentally sensitive and favorable to the work of climate change organizations. In an interview in theatlantic.com, he

gave two further suggestions for people wanting to personally fight climate change but lacking the willpower a drug could provide: 1) voluntarily taking a drug that could trigger nausea upon eating meat because livestock, he noted, may account for half of the world’s greenhouse gas emissions, and; 2) using genetic engineering or hormone therapy for mothers to give birth to smaller children, who as adults would use fewer natural resources, such as clothing, water, food, and gasoline (because heavier people when driving get lower gas mileage). Liao, similar to the University of Oxford researchers, was intrigued by the idea of people taking empathy-increasing or belief inducing medication—voluntarily, of course, to bolster their weak willpower. And what about a pill that could induce meat nausea? While presenting his paper at Yale, Liao said a man in the audience working for a pharmaceutical company believed a huge market probably existed for such drugs.

MAY/JUNE 2012

CONNECT Business Magazine

OFF-THE-CUFF

May is here and we’re gearing up for another summer. Hope all is going well with you. Here, in this issue, I feature a slam-dunk of a column that

“If James signs a deal (with the Heat) totaling $96 million over five years, his state income taxes would range from nothing with the Heat to nearly $2.9 million with the Chicago Bulls, roughly $8.6 million with the New York Knicks or New Jersey Nets and $10 million with the Los Angeles Clippers.” Prior to reading this, I had never thought about state Daniel J. Vance income taxes playing Editor a role in any professional athlete’s signing decision. But what a sumo wrestler-sized difference this was—James could take home an additional $10 million over five years inking with a Florida versus a California team. Florida doesn’t have a personal state income tax. I don’t know about you, but to me $10 million seems a lot. With that much extra, for example, James easily could pay for 50 needy inner-city high school students to attend a leafy college like Gustavus Adolphus over four years. More likely though, I can see that $10 million helping James buy 41 new Rolls Royce Ghosts at $246,500 each—one for each home game in a typical NBA season..... After musing over what most Americans,

examines the effect personal state income taxes could be having on—of all things— National Basketball Association team records and top-tier Minnesota corporations acquiring the best talent. Buckle your seat belts and away we go…. About a year ago, I saved a PalmBeachPost.com article discussing possible reasons why NBA human tattoo canvas LeBron James would choose signing with the Miami Heat (which he did) over other NBA squads, including his hometown Cleveland Cavaliers. What grabbed my attention recently was re-reading this sentence from that Palm Beach Post column:

including LeBron James, would do for $10 million—some literally would die for it—I figured I ought to be able to find a significant difference between the abilities of NBA teams in no-tax and highest-tax states to lure top talent and also their abilities to field winning basketball teams. It seemed no-tax state teams should have better players and win more games. So I went looking. Nine states don’t have any personal state income taxes: Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee. As a good comparison group, I chose the nine states (including the District of Columbia) with the highest upper-tier personal income tax rates: Hawaii, Oregon, California, Iowa, New Jersey, New York, Vermont, Maine, and Washington D.C. The no-tax states currently have five NBA teams: the Miami Heat, Orlando Magic, Dallas Mavericks, Houston Rockets, and San Antonio Spurs. The no-taxers had a sixth team, Seattle, which moved after the 2008 season. The highest-tax states have seven teams: the Portland Trailblazers, New York Knicks, New Jersey Nets, Golden State Warriors, Sacramento Kings, Los Angeles Clippers, and Los Angeles Lakers. I compared won-loss records of no-tax and highest-tax state teams from 2002-11 and the results seemed to confirm my

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hypotheses. It would appear that no-tax state teams are able to lure better talent and have better teams. Teams in no-tax states won on average 47.9 games a year from 2002-11; teams in the highest-tax states won only 38.7 games. The NBA average from 2002-11 was 41. In only one year, 2004, did high-tax teams garner more wins on average, 43 to 42. If I hadn’t included Washington D.C. and instead used the next state down on the high-tax list, #10 Minnesota, the teams in highest-tax states would have fared even worse..... Next, I went about trying to learn if no-tax state teams had a higher percentage of the NBA’s best players. To define “best,” I used a relatively simple measure: scoring average per game. Applying this to the 2010-11 season, I found six of the NBA’s Top 20 scorers played on teams in no-tax states, which represented exactly 30 percent of the league total. Yet the teams these players played on made up only 16 percent of the league total. Those six, no-tax-state stars were LeBron James, Dwight Howard, Dirk Nowitzki, Tony Parker, Chris Bosh, and Kevin Martin. Another measure of no-tax teams displaying an apparent advantage: the five teams in no-tax states have won five of the last ten NBA championships—Dallas (‘11) San Antonio (‘03, ‘05, and ‘07), and Miami

(‘06)—even though, again, making up only 16 percent of all NBA teams..... Assuming an advantage does exist in the NBA and all this wasn’t purely coincidental, I figured such an advantage probably wouldn’t carry over to Major League Baseball. That sport uses a “luxury tax” that opens the door for high-tax state teams, such as the New York Yankees and Los Angeles Angels, to expand their payrolls far beyond those of smaller market teams in order to make up for players having to pay higher taxes. So I didn’t even analyze Major League Baseball because the situation was similar to comparing apples and oranges. As for the NFL, which like the NBA has a salary cap, I thoroughly expected no-tax teams would have better won-loss records. However, my analysis involving the 2002-11 seasons showed no difference at all. In part, I attributed this to the relative importance the highest-paid players have on each sport. For instance, an elite NBA player makes up 20 percent of his team’s starting five and is on the floor about 85 percent of the time. In comparison, an elite NFL player makes up about five percent of his team’s starters and is on the field perhaps 45 percent of the time. It seems logical that the best NBA players have a much greater influence over an NBA game than the best NFL players over an NFL game.....

All this set my mental gears spinning: If teams in no-tax states have been signing a greater percentage of the best players and dominating the NBA because of it, wouldn’t it be logical also to assume these same no-tax states have been luring away our nation’s best corporate executives, i.e., the ones with the necessary intellect, steamroller drive, and industry knowledge to grow a business and create jobs? Let’s say a top CEO has identical job offers of $500,000 from competing companies in Minnesota and Texas. If the CEO chooses Texas, he/she takes home about $40,000 more every year. Which job offer would you choose? What could you buy with $40,000?.... That’s it for now. Thanks for reading southern Minnesota’s first and only locally owned business magazine since 1994, the only one reaching 8,400 business decision makers in nine counties. See you next issue. Editor Daniel J. Vance also writes “Disabilities,” a nationally selfsyndicated newspaper column (danieljvance.com). Email letters to the Editor by June 1 for next issue. We may edit for space and clarity.

LETTERS TO THE EDITOR

Re: Paul DeBriyn Thanks for the great article (March ’12) on our CEO Paul DeBriyn. Paul is a vital reason we have been so successful at AgStar. His leadership team and management style of happy team members leading to happy clients has served us well. As a 38-year employee, it has been quite a journey. Being a successful company in the industry is something we are all proud of. Ann Wendt, AgStar Financial Services

Re: Waseca Music Company Your Waseca Music Company article (March ’12) by Carlienne A. Frisch was so awesome. We had so many positive comments about the article. You had a great, professional layout, too. Many thanks. Jim “Kozy” Kozan, Waseca Music Company

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BULLETIN BOARD

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

classic cars, garden tours, parade; July 12-15 has Town & Country Players performing “Joseph & The Amazing Technicolor Dream Coat.” For more, see blueearthchamber.com.

Mankato

Fairmont Bob Wallace, Fairmont Area Chamber

Julie Nelson, South Central Minnesota Small Business Development Center

If you’re like many small businesspeople, funding is at the top of your mind. A common question is, “Am I eligible for grant money?” Grant dollars are typically not available to help start or run a small business. While there are grant programs out there, most are not targeted toward for-profit businesses. Contact your SBDC at 389-8875 to identify and assess the appropriate financing options for your business. SBDC services are always confidential.

Blue Earth Cindy Lyon, Blue Earth Chamber Upcoming events: Annual Chamber Golf Outing June 12 at Riverside Town & Country Club; June 16 features dedication of the “Donald Deskey street light” at Gazebo Park for the famous Proctor & Gamble industrial designer—and hometown boy; Giant Days July 13-14 includes supper at the statue, dance, DJs, games, fireworks,

CONNECT Business Magazine

MAY/JUNE 2012

Businesses in south-central Minnesota have a new online tool to provide general information about their companies’ apprenticeships, internships and job shadowing opportunities. This on-line tool will assist in meeting regional employer needs for skilled workers, connect workforce development partners, and increase engagement of businesses and educational institutions thereby helping students in the career development process. For more information visit iseek. org/southcentral or contact Fairmont Area Chamber at 235-5547 or Greater Mankato Growth at 385-6640.

Faribault County Linsey Warmka, FCDC

In an effort to match manufacturers with needed employees, Faribault County Development Corporation and Workforce Center in Fairmont teamed up to offer a fundamental welding training course taught by Minnesota West Community and Technical College instructors. The intense 120-hour course provided 12 students with classroom and hands-on training for five weeks. This successful project has helped align the workforce with existing Faribault County area jobs. We are currently planning another course to begin in June.

Mankato Shelly Megaw, Greater Mankato Growth

Greater Mankato Growth is accepting applications for Greater Mankato Leadership Institute class of 2012–13. For more than 25

Local Chamber & Economic Development News

Madelia Karla Grev, Madelia Chamber

Madelia Theater has eliminated 35mm film and begun showing movies in digital format. Due to the cost, smaller theaters have been slow making the transition. Some estimates say up to 7,000 small theaters may close doors when 35mm film is no longer available. With the digital system, a movie arrives at Madelia Theater in a box containing a hard drive, which is slipped into new computer-like projection equipment. Theater goers have noticed picture quality improvements.

years, Greater Mankato Leadership Institute has provided comprehensive leadership training with a community focus. Each year, the curriculum is updated to ensure graduates are well prepared to serve as leaders in their workplace and community. For more information and/or to apply by June 1, visit greatermankato.com/ gmg-leadershipinstitute.php.

Mankato Christine Nessler, Greater Mankato CVB

In July, we host two conventions for books deeply connected to our community. From July 12-14 at Minnesota State, we host LauraPalooza, the national conference of the Laura Ingalls Wilder

Legacy and Research Association. From July 19-22, the Betsy-Tacy Convention connects fans and celebrates Maud Hart Lovelace’s Betsy-Tacy books. These conventions will bring in about 500 people. For more on these conventions and their Greater Mankato impact, contact Senior Sales Director Larissa Mrozek at 385-6662.

New Ulm Terry Sveine, New Ulm CVB

Spring in New Ulm is a time of activity with these events: Martin Luther College’s “Outdoor Classics” plays in German Park on May 4-6 outdoors. Hanska’s Syttende Mai on May 18-20 includes Friday and Saturday variety shows and “Norwegian fun” in the city park Sunday. Morgan Creek Vineyard’s Mai Fest on May 5 has wine tasting, entertainment, and tours. “Autofest” on June 24 is a free outdoor car and truck show.

North Mankato Lynette Peterson, North Mankato CVB

The 47th Annual North Mankato Fun Days celebration is July 5-8 in Wheeler Park. Throughout the weekend there will be carnival rides, pfeffer tournaments, bingo, a car & motorcycle show, petting zoo, kids pedal tractor pull and live entertainment in the tent and beer garden. Kiddie Parade Friday night and grand parade Saturday at 11 a.m. Visit northmankato.com for a complete North Mankato Fun Days schedule. Belgrade Blues Festival will be Saturday, July 21 on Belgrade Avenue.

Sleepy Eye Julie Schmitt, Sleepy Eye Chamber

Sleepy Eye Chamber of Commerce is proud to announce Arneson Distributing as its 2012 Business of the Year. A luncheon in their honor will be held in May. Chamber members celebrating milestone anniversaries in 2012: Bruggeman Co. (75 years), Brown County REA (75 years), Sleepy Eye Sportman’s Club (65 years), Braun & Borth Sanitation (40 years), Randy’s Family Drug & Gifts (25 years), and J & L Printing (25 years). continues on page 44 >

MAY/JUNE 2012

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BULLETIN BOARD

Local Chamber & Economic Development News

Sleepy Eye Kurk Kramer, Sleepy Eye EDA

Fraternal Order of Eagles Orchid Inn received a new sound system for their banquet hall, the Minnesota Room, for banquets, wedding receptions, and concerts. They also had their floor refurbished and refinished to provide a parquet dance area in the banquet hall. They are currently working on remodeling Minnesota Room bathrooms. These renovations enable the Eagles Club Orchid Inn to continue providing southern Minnesota one of its finest banquet and wedding dance facilities.

Springfield Marlys Vanderwerf, Springfield Chamber First, Springfield events: Riverside Days occurs June 22-24 and Crazy Dollar Days July 20-21. Also, new business LMB Photography is a small portrait studio specializing in seniors, children, families, and weddings. Its two photographers graduated from Hennepin Technical College with professional portrait photography degrees. Also in studio is Bobbi Barron Design, whose owner has a graphic design degree from Art Institutes International Minnesota. Bobbi specializes in wedding stationery, holiday cards, and high school senior invitations.

St. James Lori Nusbaum, St. James Chamber

St. James Area Chamber of Commerce celebrated 2011 Business of the Year Johnson’s Meat Market at the Annual Chamber Banquet and Wine Pairing event on Friday March 16 at St. James Golf Course. 2010 BOY recipient Tracy Hurley of True Value Radio Shack presented Dustin and Nicole Johnson their award. Little Swan Lake Winery of Estherville, Iowa, presented five wines that were paired with the Italian cuisine from St. James Golf Course.

Waseca Kim Foels, Waseca Area Chamber Waseca Area Chamber and Agri-Business committee presented annual Farm and City Luncheon awards: 2012 Waseca County

Outstanding Young Farmer to Jason David Norton, Waseca County Farm Family of the Year to Paul & Marijo Beckstrand, Jamie, Amy, Trevor, and Travis, and Waseca County Soil and Water Conservation to Brian Jewison. Keynote speaker was Ron Eustice, who majored in agriculture journalism at the U of M and is executive director of the Minnesota Beef Council. See discoverwaseca.com/chamber.

Waseca Kimberly Johnson, City of Waseca City of Waseca Economic Development Authority (EDA) has been awarded a $500,000 United States Department of Agriculture loan. With Waseca County, Waseca Development Corporation, and a private family foundation help, the EDA has established a $625,000 Intermediary Relending Program Revolving Loan Fund to assist agribusiness startups and expansions t\providing value added production. Loans fill the gap between total project cost and available private funding. For more, call 837-9741. Waseca EDA is an equal opportunity provider.

Winnebago Austin Bleess, City of Winnebago

The 1st Annual Craft Brew Fest will be June 23 in Winnebago. Sample more than 50 beers from 25 breweries. Food vendors will be on site. The largest event of its kind in southern Minnesota. Calamity Jean and The Tombstone Trio will provide live entertainment. Tickets on sale around Winnebago or at craftbrewfest.com, where you can learn the full lineup of breweries attending. Event sponsor is Winnebago Lions Club. Proceeds benefit Winnebagoarea projects. Any chamber of commerce, convention and visitors bureau, or economic development organization in our reading area—large or small, from Amboy to Waterville—can post on our free bulletin board. For details, email editor@connectbiz.com.

CONNECT Business Magazine

MAY/JUNE 2012

By Daniel J. Vance Photo by Kris Kathmann

Resourceful North Mankato mother helps millions of other mothers make ends meet while raising children.

SAVE $5

At the time, Kimberly Danger, then of St. James, Minnesota, couldn’t completely comprehend the lifelong implications of what was happening around her. Her mother and father were prudent spenders, especially mother Jean, who regularly redeemed grocery store coupons, shopped thrift stores, and hunted garage sale deals like nobody’s business—and brought Kimberly along. Always resourceful with what they had, her parents made cost-cutting their lifestyle. They formed a foundation in their daughter that has led to a rewarding career in which Danger helps form those same thrifty behaviors all over the nation in other mothers with young children. “We were always looking for ways to save money,” said 41-year-old Danger in a Connect Business Magazine interview. Now living in North Mankato, Minnesota State graduate Danger (rhymes with hanger) owns four-employee Mommysavers.com, founded in 2000, which has become a popular website, forum, newsletter, and Facebook community doing far more than helping hundreds of thousands of mothers trying to make do with less and teaching coupon clipping and garage sale etiquette. She has helped create a sense of community for members. Danger has authored three books, regularly appears on television morning shows in Top 30 markets, receives 700,000 unique visitors monthly to her website, and has more than 43,000 Facebook friends. Last November, she appeared before a live studio audience in New York City on Anderson Cooper’s syndicated daytime talk show “Anderson.” And it all naturally evolved from a thrifty upbringing. You could say her parents taught her well. continues >

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MAY/JUNE 2012

Baby Bargains

“When I was in fifth grade, I wanted a new ten-speed bike. Instead of buying me one like many parents would have done, my dad loaned me the money (I think) to teach me a lesson. After taking nearly a year to pay back the loan, I decided debt wasn’t worth it.” “My mom and I liked going to garage sales,” said Kimberly Danger to Connect Business Magazine from her home office in North Mankato. “I grew up in a frugal household and didn’t know anything else.” In particular, she and her mother especially enjoyed doing Kimberly’s back-to-school shopping at Goodwill Industries and low-cost TJMaxx in order to wring more clothing from a tight family budget. In the ‘80s, they scoured garage sales to furnish a recently purchased up-north cabin with a second-hand bunk bed, a kitchen table, and appliances. Said Danger of her mother, an elementary schoolteacher, and father, a seed corn sales manager: ”From my mom I learned about day-to-day savings, coupon clipping, and garage sales, and from my dad I got the overall picture in terms of saving, investing, and being frugal. When I was in fifth grade, I wanted a new ten-speed bike. Instead of buying me one like many parents would have done, my dad loaned me the money (I think) to teach me a lesson. After taking nearly a year to pay back the loan, I decided debt wasn’t worth it.” In time, her father left being a seed corn sales manager after a company ownership change and became involved in selling promotional products, such as imprinted calendars and pens. Perhaps due to inheriting some of her father’s genes, she was interested in the psychology behind selling and graduated with a marketing degree from Minnesota State University in 1993. Immediately after college, she married Scott Danger, who had grown up in a similar household: financially frugal, from St. James, and having a schoolteacher mom. The newlyweds lived in Hudson, Wisconsin for two years before moving to New Ulm, where Scott worked as a certified public accountant. Kimberly found work at the New Ulm Journal in 1995, which began a string of jobs preparing her for starting her own business. “I worked at the Journal in ad sales and doing ad layouts and copy,” said Danger. “So I took what I learned doing graphics to Sleepy 48

CONNECT Business Magazine

MAY/JUNE 2012

MommySavers.com | North Mankato

Eye, where I began working at Advertising Unlimited. It was there I started buying photos for calendars. In 1998, I took that experience and used it to buy photos for kids books, as a photo researcher at Capstone Press in North Mankato.” With Kimberly’s job change to Capstone Press and Scott’s hiring at Abdo Eick & Meyers in Mankato in 1998, the couple moved about twenty miles east to Mankato. Danger said, “I worked at Capstone Press a couple years. What changed my life was having a daughter in 1999. At that point, I didn’t want to work full-time, but to stay home with her. Capstone Press was really good to me and let me do my job part-time after her birth. I worked at home and went into the office only a few hours a week. But after a year, even that became a lot. I was looking for ways to stay home permanently—and that’s how Mommysavers.com began.” Though having grown up in southern Minnesota, Danger knew hardly anyone in Mankato and the few friends she had were at Capstone Press. As she spent less time at Capstone Press, those friendships felt more and more distant. While caring for her daughter, she felt a strong need to create a group of online friends sharing her personal interests: being a mother of a small child, spending most her time at home, and saving money. “And six months into doing (a discussion forum), in 2000, I realized I could make money at it,” she said. “I started the website to share my ideas (of saving money) with others, and in turn, the online community gave back to me. The website just mushroomed from there. The biggest thing in 2000 (and still is today) was the discussion forum part of our website. It’s different from a blog—when I started they didn’t exist. I started with a couple dozen pages of articles I’d written, such as how to clip coupons and shop garage sales. The discussion forum was a way for others to share ideas. Eventually, at times, the forums became impromptu support groups. For example, if a mom had a question like, Why isn’t my baby sleeping at night?, someone would try offering insight or suggestions.” Over the years since 2000, to a great extent, Danger’s online family

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Baby Bargains

Frugality Sisters CONNECT: Are you passing on your frugality to your children, the way your mother did with you? DANGER: That’s something I’m doing with my own daughter now. She’s getting to be at the age where clothes are more important to her. When you give children money and give them the opportunity to spend it as if it were their own money, they tend to make better decisions. I grew up with that philosophy, and am passing it on to my own kids.” MAY/JUNE 2012

CONNECT Business Magazine

Baby Bargains

has become her offline family. She has met in person perhaps a dozen Mommysavers.com members from all over the nation. Her four part-time employees live in North Carolina, Utah, Minnesota, and Pennsylvania. She said, “The whole forum is a big support group. We act as cheerleaders. If someone pays off a bill of $50, for example, everyone encourages that person. We celebrate the little victories. People also present challenges. For instance, a mom might mention being invited to a wedding that has a $100 gift as an expectation. They want to know what to do. A member might come to their rescue and mention an idea costing only $20 that could mean much more (to the bride). It’s all about providing ideas and inspiration.”

Over the years since 2000, to a great extent, Danger’s online family has become her offline family. She has met in person perhaps a dozen Mommysavers.com members from all over the nation. Her four part-time employees live in North Carolina, Utah, Minnesota, and Pennsylvania.

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In 2004, a book publisher read over her website articles and asked Danger to author a how-to book, which she did, 1,000 Best Baby Bargains. (In 2010, she released two more, Instant Bargains, and The Complete Book of Baby Bargains.) The book achieved distribution in Walmart and Target, and opened up doors. It gave her website added credibility. Two years later, a public relations company lined up a media tour on radio stations and morning television shows in larger markets to help her promote her book. As an aside, she also became involved representing certain consumer name brands on morning show television in top markets as a “frugal expert.” Until Facebook became part of her outreach in 2007, Mommysavers.com marketed almost exclusively through a newsletter and an email list siphoned from discussion forum registrations. “But social media came along and changed everything,” said Danger. “That’s part of working on the web: you roll with the changes. In order to

MommySavers.com | North Mankato

stay relevant, you have to go wherever your fans are. We have more than 42,000 friends on Facebook now.” (The company also has more than 70,000 members on its forums, she said.) Today, Mommysavers.com has two primary revenue streams: online ads and affiliate revenue. The ads are sold through an ad broker that also advises Danger on marketing trends; the latter originates from companies like Amazon.com and Target that pay Mommysavers.com a percentage of sales on certain items sold through its website. The company has four part-time employees, including a forum manager and three bloggers, who post hot bargains, and on the forums they encourage topics, help conversations flow, and delete posted spam. All have worked their way up through the Mommysavers.com system, having been members and volunteer moderators over several years before joining as paid staff.

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Baby Bargains

Anti-Joneses Group Said Mommysavers.com founder Kimberly Danger, “The most rewarding thing that happens is when I get an email or when someone posts that they have paid off a lot of debt and they couldn’t have done it without our help. The tips we provide are not huge, life-changing tips. For example, I can tell a mom how to make her own baby wipes. That’s great, but it’s not going to change her life. However, if she can put all the pieces together, begin making that decision to live within her family’s means, and realize living on a budget isn’t so bad, then it becomes easy.” She said the discussion forum on Mommysavers.com acts as a support group for people that have made that decision. “In today’s culture,” she added, “so many people are wrapped up in keeping up with the Joneses. We’re the anti-Joneses website. Forget the Joneses—that’s actually the name of a project we have members work on. In it, they go through a spending freeze to help them focus on their priorities. You have to be conscious about how you spend your money.”

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Baby Bargains

As for the business itself, and her company’s future, she said, “I never expected to have it come this far. The key for me is just to keep up with what’s happening on the Internet. It’s changing so rapidly and if you don’t roll with the punches, you’re going to get left behind. It’s impossible to predict what the Internet will be like in a year.”

In November 2011, Danger appeared on Anderson Cooper’s daytime television show to present money saving tips.

CONNECT Business Magazine

MAY/JUNE 2012

MommySavers.com | North Mankato

“And I still do book tours in the Top 30 markets,” said Danger, referring to her three books. “I’ve been able to see many cities that way. I’ve been to Chicago, Dallas, Nashville, Tampa, Cincinnati, Cleveland, Detroit, Indianapolis, and others. And last November I was on Anderson Cooper’s morning show in New York City and did a speed round where I presented ten money saving tips in one minute before a live studio audience on national television.” In February 2012, the website alone had 700,000 unique visitors and 1.5 million page views. Membership with Mommysavers.com has always been free. Danger said, “We have members all over the U.S., a good cross-section, but seem to have a heavier concentration in the Midwest. For whatever reason, Ohio has always been really big for us. As for Canadians, we haven’t had many members because Canadians don’t have coupons the way we do. However, they will come to our website for money-saving tips, but the deals we post are mainly only available to people in the United States.” Interest in Mommysavers.com has been split nearly evenly beWaseca Music Company, 111 South State Street tween the website and Facebook page. A lot more interest lately has been coming from Pinterest.com. Said Danger, “Pinterest gets your website out there and people will look at you, but the challenge is getting an engaged reader out of a Pinterest transaction. They are a lot more fickle than forum or Facebook readers. Forum members are our diehard fans and Facebook is next. Pinterest brings us traffic,

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Baby Bargains

Debt to Frugality CONNECT: Are many of your members trying to get out of debt? DANGER: Being in debt is relative. Ten thousand dollars to one person might be devastating and to another, nothing. The women I’m dealing with usually are young mothers that don’t have a huge net worth or household income. It could take them ten years to dig out of a huge debt hole. Our job is to provide encouragement and create a plan to help them—and getting them into the mindset that living on a budget doesn’t mean you’re giving up or sacrificing. Some of our members are trying to save money out of desperation. They want to save their home or keep their child in a particular school. Frugality is a lifestyle many are having to adopt because of their financial situation, especially because of the economy the last few years.” MAY/JUNE 2012

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MommySavers.com | North Mankato

Baby Bargains

As for being a mother, it’s my personal goal to log off the computer once they come home from school every day at 3:00 p.m. That’s a big challenge and one reason I have my part-time helpers— because I don’t want to work 80 hours a week. but not a lot that sticks around. It’s almost like a search engine in the way it works. They might find what they are looking for, but they aren’t as likely to return as a Facebook follower or someone who comes to our forum every day.” Also, Mommysavers.com promotes itself throughout its website and Facebook pages. On every website page, members have an opportunity to sign up for the newsletter and Facebook page. The company also has links on particular forums that tie in with similar forum topics. Mommysavers.com began as a means for Danger to become a full-time, stayat-home mom to her young children. So has all the traveling, books, and work accomplished the opposite? She said, “Now that my children (ages 8 and 12) are in school full-time, I have more

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time during the day. As for being a mother, it’s my personal goal to log off the computer once they come home from school every day at 3:00 p.m. That’s a big challenge and one reason I have my part-time helpers— because I don’t want to work 80 hours a week. Without the part-timers, I would be totally negating the whole purpose of having this business. It was born out of a desire to be home with my kids.” She works about 40 hours a week except during the Christmas season, when she spends extra time finding hot online deals and bargains for members. The most challenging aspect of her business has been handling her children who sometimes don’t understand why mom sometimes has to be at the computer late afternoon. They might ask her to make them a sandwich, for example. And yet she has hundreds of thousands of people

THE ESSENTIALS

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waiting for her work to publish. As for the business itself, and her company’s future, she said, “I never expected to have it come this far. The key for me is just to keep up with what’s happening on the Internet. It’s changing so rapidly and if you don’t roll with the punches, you’re going to get left behind. It’s impossible to predict what the Internet will be like in a year. For example, Pinterest is such a big part of how we market mommysavers.com now and a year ago I hadn’t even heard of it. My main mission is to keep doing what I’m doing, and get the message out to moms that they can live well for less. That’s always been what it’s about.” Editor Daniel J. Vance writes from Vernon Center.

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HOT STARTZ!

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

LE SUEUR

Riverside Aesthetics

ART SIDNER

Dr. Robin Ballina opened Riverside Aesthetics at 500 N. Main last July as a side business as she transitions into semiretirement while also working as a part-time psychiatrist. With it, she helps people with permanent hair reduction, spider veins, rosacea, dilated capillaries, age spots, melasma, hyper pigmentation, sun damage, skin tightening, collagen rebuilding, and chemical peels. “I’m kind of high energy,” said Ballina in a telephone interview. She grew up in New Orleans and graduated from nursing school before entering LSU Medical Center, from which she graduated in 1983. She worked her way through medical school as a psychiatric nurse. She had her residency at University of Connecticut Health Center before moving to Utah in 1988, where she worked in private practice and hospitals. In 1995, she yearned for law school, and eventually graduated from Vermont Law School, where she studied environmental law. After law school, she said, “It became painfully clear I couldn’t afford the salary hit to become an associate in a law firm. I had a $125,000 law school loan.” She put her education to good use by entering forensic psychiatry and receiving a fellowship at Tulane University. She returned to Utah as a psychiatrist in 2000, and while there learned about aesthetic technology, which she enjoyed. On the side, she took a 1,200hour paramedical master aesthetician program and earned

her Master Aesthetician License in Utah. In 2006, she took on a forensic psychiatry position at St. Peter Regional Treatment Center. It’s a profession she now works at part-time while operating Riverside Aesthetics. She said: “I like working for myself and taking as much time as I need with clients.” RIVERSIDE AESTHETICS Address: 500 N. Main #104 Telephone: 507-665-2025 Email: RSAesthetics@aol.com

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

HENDERSON

East Henderson Farm “I grew up 800 feet from where we live now,” said 33-year-old Josh Reinitz in a telephone interview from his 40-acre, certified organic farm. “I was born into an active family farm and my dad was a full-time dairy and crop farmer. He sold out in the mid‘80s when I was 6 and he never looked back. He took a job with Davisco Foods and is there to this day as a plant manager.” Fortunately for Reinitz, his dad kept 40 acres. After graduating from high school and finishing a degree in fisheries and wildlife management, Reinitz worked in a downtown Minneapolis cubicle doing environmental-related work. Over time, he lost his passion—not for the work itself, but the industry. Climbing the career ladder meant having to move to another state. He said, “And I’m too much of a homebody. ‘Place’ is important to me and after being in the Cities eight years I decided the most important place was my home on the farm.” In 2002, he moved home, married, began working as a carpenter, and farmed the family’s 40 acres. Not feeling fulfilled as a carpenter, he started having thoughts of ramping up the family farm into a viable business. He and his wife took beginning farmer training courses in 2008 and they started selling eggs, produce, and chickens for meat. In 2011, East Henderson Farm’s land became 100 percent certified organic. Today, individual members for $550 can purchase a share of the farm’s produce during the growing season, which equates to about a bushel of produce weekly. About half the

farm’s 90 members live in the Cities. The other half receives weekly allotments from the farm or St. Peter Food Co-op. This year’s memberships have already been sold, but customers yearning for organic produce can buy lesser quantities. Reinitz said, “Getting into organic and sustainable farming has shown me that farming can and should be done in a way that suits and benefits the natural world. I am actually using my college degree.” He added he especially enjoys the “community” aspect of his business, such as having events, building relationships, and getting local people involved.” EAST HENDERSON FARM Address: 30083 290 Street Telephone: 612-756-3971 Web: easthendersonfarm.com

ART SIDNER

HOT STARTZ!

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MADELIA

La Plaza F!esta You won’t find many people outworking 23-year-old Krystal Spinler, who purchased the Mexican restaurant in Madelia in January and renamed it La Plaza F!esta. She began working at her parents’ Owatonna roller rink at age 11 doing concessions, admissions, cleaning bathrooms, stocking shelves, and buying supplies. She ran the computer and was in charge of all private parties. At age 14, and after her parents sold the roller rink, she took a part-time restaurant dishwasher job at The Kernel. “Our family kind of had a string of bad luck, and my older brother and I had to get jobs to help my parents,” she said. After age 16 while attending high school, she worked three jobs—at The Kernel, a sports bar, and a Chinese restaurant. She loved everything about work and over time worked just about every position a person in the industry could. After high school, she finished a two-year degree at Minneapolis Business College in only 14 months. To make a long story short, her best friend and co-worker, Fabian Martinez, lost his life in a tragic car accident on Christmas in 2008. Around the same time, Spinler lost two of her jobs when Vikings lineman Matt Birk closed his two restaurants after signing with Baltimore. Over time, Spinler became close to Fabian’s parents, who owned several Mexican restaurants, including one

in Madelia. She began working at the Owatonna location in 2009, and two years later moved to Madelia to manage it. She said, “He (Fabian’s father) asked me to buy it in October 2011. He said I was ready and owning a restaurant has always been my dream. I like helping and serving people. I am so happy when customers love their food.” This cut-above restaurant has become known for its Mexican fajitas and authentic homemade recipes served in a fun and relaxing family atmosphere. Call for reservations. LA PLAZA F!ESTA Telephone: 507-642-8624 Web: laplazafiesta.com Address: 15 West Main Street

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.

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Blue Earth

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From Express Diagnostics: The company released a rapid, on-site urine dip test for K2/Spice; Martin Lueders joined as director of quality systems; the U.S. Department of Transportation approved the company’s AlcoCheck FC90 breath alcohol testing device. CEO Steve Thompson of Utilities Plus was featured in US Business Executive.

MinnStar Bank elected Gordon Kuznia as a board director to replace retiring Chuck Danish.

Fairmont From the Chamber: new members include Eagles Club #3394 and Fairmont Trap Club; new businesses include Accents By Sara Lynn at 1140 Torgerson Drive; Ambassador visits occurred at Al’s Corral (new business), House of Hope, Highland Court Motel (new owners), and Options Pregnancy Center (relocation to 322 East Blue Earth). From the Chamber: Business relocations include Dollar Tree to 200 South State, Town & Country Agency to 113 West Blue Earth, and Cavers Realty to 1140 Torgerson Drive. Fairmont Area Foundation announced new board members Sara Gaalswyk (Trimont), Melissa Garry (Granada), Doug Kahler (Fairmont), and Steve Williamson (Trimont). Hometown Sanitation Services has a new office at 1031 Fairview Avenue.

Le Sueur From the Chamber: New members include Riverside Aesthetics and East Riverside Farm.

Mankato Marco earned the Konica Minolta Business Solutions U.S.A. 2012 Pro-Tech Service Excellence Award. Midwest Family Mutual Insurance Company named Kato Insurance Agency to its President’s Club for the fifth consecutive year. S&S Thermo Dynamics hired Clark Diel as service manager. USBank downtown branch moves to the USBank Center (former HECO building) on June 4. Jack Link’s presented Mankato School District a $8,500 check to purchase PLAYAWAY MP3 players for the district’s elementary school libraries. JoRae Galli Storm joined Regional Center of Entrepreneurial Facilitation as a board member. From Century 21 Atwood Realty: the

company received the Gold Medallion award from the Century 21 real Estate Corporation; the office received the Quality Service Producer Award; Mary Ann Donahue earned the Centurion Award; Jeff Kaul earned the Century 21 System’s Masters Ruby Award; Deb Atwood and her Home Selling Team earned the Masters Team Award; Peg Ganey and Dan Thielges earned the Multi-Million Dollar Producer Award; Ellen Gruhot and Cheryl Lustig earned the 2011 Century 21 Quality Service Pinnacle Producer Award; and Peg Ganey, Dan Thielges, and The Deb Atwood Home Selling Team earned the Quality Service Producer Award. From HickoryTech: the company completed the acquisition of IdeaOne Telecom Group of Fargo in a $28 million transaction; HickoryTech Foundation awarded 29 grants worth $121,000 to non-profit organizations, including more than $10,000 each to South Central College and Minnesota State. From Greater Mankato Growth: 201213 officers include Greg Kutcher of Mayo Clinic Health System (chair), Julia Ketcham Corbett of Blethen, Gage & Krause

MANKATO

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(vice chair), Chad Surprenant of I&S Group (secretary/treasurer), Jim Santori of The Free Press (at-large officer), Rob Else of EI Microcircuits (at-large officer), and Tim Tupy of LIV Aveda Salon & Spa and Mankato Brewery (at-large officer). The American Society of Civil Engineers Minnesota Section named James Panko of Paulsen Architects 2011 Young Engineer of the Year. From Greater Mankato Growth: New members include Townhomes at Parkside Homeowners’ Association, Inspired Aging, Tandem Bagels, and Linder Enterprises. City of Mankato, Verizon Wireless Center, and Twin Rivers Council for the Arts will present the 2nd annual Arts by the River fine arts and crafts festival at Riverfront Park June 9-10. Marco distributed $2.1 million in stock benefits for fiscal 2011 to 421 eligible employees. Dr. Emily Birkholz of Ophthalmology Associates of Mankato became certified in the newest bladeless Lasik surgery (INTRALASE). CityArt will debut another 34 sculptures on May 19 for its 2012-13 tour. Thomas Tree & Landscape unveiled a new website. Capstone appointed David W. Smith to its board of directors. Purchasing manager Tim Suedbeck of Video Services Inc. received Certified Technology Specialist certification from InfoComm International. People Driven Performance hired Bill Dickmeyer as director of business development. From United Prairie Bank: USAdvisors Network awarded United Prairie its 2011

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President’s Outstanding Program Award; and USAdvisors Network named Duane Ludewig a 2011 Elite Advisor for 2011. Country Inn & Suites By Carlson Hotel and Conference Center Mankato earned the 2011 Country Inn & Suites President’s Award. The Mankato Diamond Vogel paint location earned Service Center of the Year honors at recent corporate sales meetings. Merely Players Community Theatre hired Jonas Nissen as artistic director. Mayo Clinic Health System Mankato was named among the nation’s best regional hospitals in 2011-12. Region Nine Development Commission hired new executive director Nicole Griensewic. Lime Valley Advertising received Service Industry Advertising Awards for work done for Gislason & Hunter, Wow! Zone, and AgStar Financial Services. City of Watertown and Bolton & Menk (city engineer) received a “Grand Award” from the American Council of Engineering Companies of Minnesota in recognition of the City’s Lewis Avenue extension.

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Madelia From the Chamber: AmberField Place added three property maintenance employees: Dean Jones, Earl Kunz, and Clayton Jones; Matt Gunderson purchased and renamed Countryside Building Center to Madelia Lumber Company; Krystal Spinler went from general manager to owner of La Plaza Morena, which was renamed La Plaza F!esta; Karla Grev is executive director of Madelia Area Chamber of Commerce; Courtney Hennis is communications coordinator of Crystal Valley Cooperative; and the annual Park Days Celebration goes from July 12-15 and includes golf, softball, and volleyball tournaments, a parade and kid’s carnival, and many other events.

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From the Chamber: new board members include Brad Olson of 3M; new Chamber members include Jake’s Pizza and River Valley Extra; Century 21 Koeckeritz Realty added sales associate Angie Schugel; Freedom Valu Centers raised more than

$37,000 to benefit the Children’s Home Society; NU-Telecom TechTeam added Paul Torgusen; Brian Amsberry is store director at New Ulm Hy-Vee; Artisans at the Grand Bohemian Bistro moved into the space vacated by The Splendid Nest; Suzy Guggisberg celebrated 25 years of service at Drs. Akre & Clark; Mike and Jennifer Siewert purchased Valley View Electric; Bank Midwest named Shane Deal community bank president; BCBS Minnesota named Jim Hoffman, LUTCF, as a “Blue Partner”; The Splendid Nest moved to the Haroldson Building at 20 North Minnesota; Kemske purchased Wegner Computers; and Retzlaff ’s Ace Hardware remodeled to include Benjamin Moore paint. From AMPI: The cooperative reported $2 billion in 2011 revenues; and received two gold medals at the 2012 World Championship Cheese Contest, including one for butter made in New Ulm. From Gislason & Hunter: Dustan Cross received recertification as a MSBA Board Certified Civil Trial Law Specialist; the Minnesota State Bar Association honored Marlin Kunard for 50 years of service to the legal profession; the firm celebrated 75 years in business; and Gislason & Hunter was named to the Minnesota Best Lawyers list. New Ulm Convention and Visitors Bureau has begun promoting New Ulm as a destination city for weddings.

Nicollet Minnesota Association of Meat Processors honored Schmidt’s Meat Market with five awards, including Grand Champion for its Raspberry Chipotle Bacon (also received Best of Show) and Polish Sausage. From the Chamber: new members include The Cabin Bar, Compart Family Farms, Grommersch Seeds, Inc., Scentsy, Tastefully Simple and Thirty-One; new board members include Adam Erickson (Scentsy), Bill Landin (Crystal Valley Coop) and Connie Anderson (Nicollet Conservation Club).

North Mankato Key City Insurance Agency earned the Grinnell Mutual Reinsurance Company

President’s Club award. Chris Jensen of Edward Jones has been authorized by the Certified Financial Planner Board of Standards to use the certification CFP. Coughlan Companies announced fourth-quarter 2011 grant recipients, including Minnesota State University Foundation, Lasting Imprint, and Lincoln Community Center (all in Mankato). Ecumen Pathstone Living celebrated 75 years in business.

St. James From Mayo Clinic Health System St. James: Dr. Jeremy Fleischmann (podiatrist) joined the Clinic; Michelle Green was promoted to lab manager; and Dr. LeRoy Hodges began providing surgical services. North Central Geothermal gave Bruce’s Plumbing and Heating its “Dealer Of The Year” award. St. James Chamber named Johnson’s Meat Market 2012 “Business Of The Year.”

St. Peter City of Saint Peter, Bolton & Menk (city engineer) and Rice Lake Construction

(contractor) received a “Grand Award” from American Council of Engineering Companies of Minnesota in recognition of the City’s new water treatment plant and water wells. Ecumen Prairie Hill introduced a respite care service for area residents with Alzheimer’s, dementia or other chronic care needs. River’s Edge Hospital & Clinic earned a Minnesota Hospital Association Patient Safety Excellence Award for preventing retained objects in the operating room.

ST. PETER

First National Bank Minnesota First National Bank Minnesota appointed Michael Bresnahan as president and chief executive officer. Said St. Peter native Bresnahan in a telephone interview, who until recently had been living outside the region 20 years: “It’s nice to be back. I missed being away from my hometown and river valley area.”

Springfield Riverside Animal Clinic hired veterinarian Phil Sadler.

Waseca From the Chamber: Whitestone Cleaners owner Toby Jensen received the “Roots Award” for more than 30 years in business; Agricultural Utilization Research Institute hired communication director Amanda Wanke; McDonald’s new owner is Peggy Kropinski; new Chamber members include Edina Realty; Precision Chiropractic and Wellness and new owner Ryan Mairs hosted a Business after Hours event; and Tourism and Visitors Bureau installed a trail map way on Clear Lake Trail.

Wells From the Chamber: New members include Stevermer Catering (Bricelyn); Keith Weitzel owns Dairy Queen Grill & Chill; Midwest Dental purchased Wells Family Dental and hired Dr. Paul Carlson as its new dentist; and Kristy Neubauer owns Shear Artistry.

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NATIONAL OPINION

President Obama and most members of Congress agree the U.S. corporate tax rate should be cut. Thankfully, it is finally sinking in that having a 40 percent corporate tax rate when the world average is just 23 percent is suicide in a globalized economy. The sticking point on slashing the corporate tax rate has been the fear that the federal government might lose revenues under such a reform. To prevent an expected revenue loss, policymakers have searched for tax loopholes to close in order to “pay for” a corporate rate cut. The problem is that members never find any loophole closings that they can agree on. I’ve concluded that the effort to close

corporate loopholes is a big waste of time. It is simply blocking desperately needed reforms to the tax rate. If I was drafting a corporate tax reform bill, I’d match a tax rate cut with federal spending cuts, but that idea hasn’t caught on either. The good news is that a corporate tax rate cut without any changes to the tax base probably wouldn’t lose the government any money over the long term. Good evidence comes from Canada’s corporate tax cuts of the 1980s and 2000s. Canada’s federal corporate tax rate plunged from 38 percent in 1980 to just 15 percent by 2012. Amazingly, there has been no obvious drop in tax revenues over the period. Canadian corporate tax revenues have fluctuated, but the changes are correlated with economic growth, not the tax rate. In the late 1980s, a tax rate cut was followed by three years of stable revenues. In the early 1990s, a plunge in revenues was caused by a recession, and then in the late 1990s revenues soared as the economy grew. In 2000, Canadian policymakers enacted another round of corporate tax rate cuts, which were phased in gradually. Corporate tax revenues initially dipped, but then they

rebounded strongly in the late 2000s. The rate cuts enacted in 2000 were projected to cause substantial revenue losses to the Canadian government. That Chris Edwards projection indicates that the reform didn’t have much in the way of legislated loophole closing. But the chart shows that the positive taxpayer response to the rate cut was apparently so large that the government did not lose much, if any, revenue at all. In 2009, Canada was dragged into a recession by the elephant economy next door, and that knocked the wind out of corporate tax revenues. However, it is remarkable that even with a recession and a tax rate under 20 percent, tax revenues as a share of GDP have been roughly as high in recent years as they were during the 1980s, when there was a much higher rate. Jason Clemens of the Macdonald-Laurier Institute notes that Canadian corporate tax revenues have been correlated with corporate profits, not

If I was drafting a corporate tax reform bill, I’d match a tax rate cut with federal spending cuts, but that idea hasn’t caught on either.

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the tax rate. If a corporate tax rate is high, there is a “Laffer effect” when the rate is cut, meaning that the tax base expands so much that the government doesn’t lose any money. Estimates from Jack Mintz and other tax experts show that cutting corporate tax rates when they are above about 25 percent won’t lose governments any revenues over the long run. The overall Canadian rate this year is about 27 percent when the average provincial rate is included. By contrast, the average federal-state rate in the United States is 40 percent, which is roughly 15 points above the revenue-maximizing rate. That means that Congress can proceed with a corporate rate cut and everyone would win — taxpayers, the economy and even the government. Corporate tax reform with loophole closing is a wild-goose chase. Congress never seems to agree on which loopholes to close, with the result that our economy continues to suffer under a super-high rate. If we matched Canada by cutting our federal corporate rate from 35 percent to 15 percent, it would generate a large increase in reported income as corporate investment boomed and tax avoidance fell. The tax base would automatically expand without Congress even legislating reductions to deductions, credits or other loopholes. In 2012, Canada will collect about 1.9 percent of GDP in federal corporate income tax revenues with a 15 percent tax rate. The United States will collect about 1.6 percent of GDP with a 35 percent tax rate. Do we need any more evidence that our high corporate tax rate makes no sense?

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