November-December 2019 by Connect Business Magazine

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CONTENTS

November | December 2019

COVER INTERVIEW

COMPANY PROFILE

Ralco Jennifer Spaude

Consolidated Communications AG FOCUS

Focus on Agribusiness

Running in Circles

Hemp: The Rules Keep Changing But Here’s What We Know Now FEATURES

Collaboration Connection

Women of Belgrade

Family Values, High-tech Science

Blackhawk Fiberwerx

HOT STARTZ! MANKATO

Graif Clothing

DEPARTMENTS

MANKATO

Hilltop Florist NEW ULM

Beruck Studios 1 ON 1

David Bassey and Yvonne Cariveau

Connecting Southern Minnesota Business People Since 1994

8 27

Editor’s Introduction Day In The Life

Amber Pietan, Amber Pietan Travel Agency, Inc.

Entrepreneurial Insight

Lynette Lusk, Virginia & Co.

41 59 62

Connecting Back Bulletin Board Ask A Professional

Connect Business Magazine www.ConnectBiz.com

STAFF & CONTRIBUTORS

CIRCULATION

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Publisher: Concept & Design Incorporated

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Editor: Lisa Cownie

Published bimonthly

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Art/Photography: Jonathan Smith, conceptanddesign.com

CORRESPONDENCE

Contributing Writers: Kerry Hoffman, Laura DeKok, Thomas Nelson, Angela Pick, Matthew Tuggle, Rhett Schwichtenberg Production & Circulation: Becky Wagner Printing: Corporate Graphics, N. Mankato Mailing: Impact Mailing 4

Engineering Entrepreneurism

November | December 2019

Mailing Address: Connect Business Magazine P.O. Box 176 Nicollet, MN 56074 Send editorial correspondence to: editor@connectbiz.com

Information: connectbiz.com/advertising ABOUT CONNECT Locally owned Connect Business Magazine has ‘connected’ southern Minnesota businesses since 1994 through features, interviews, news and advertising.

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Connect Business Magazine is a publication of Concept & Design Incorporated, a graphic design firm offering print design, brand design, illustration and photography. Learn more at conceptanddesign.com.

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INTRODUCTION

More Than Expected While I love and always feel “connected” to each issue of this magazine, seeing this one come together has been really special. Mostly because I went in to each of these interviews thinking I knew what to expect, but boy, were they full of surprises! On the cover is a woman I have long admired, as I watch her seemingly effortlessly excel in her profession while raising two great kids and being very involved in her community. A strong, female role model for sure! Jennifer Spaude is not alone in that role in this issue, please check out Angela Pick’s article on the Women of Belgrade...a small, but mighty group transforming that part of lower North Mankato. And the story on Tyler Deike really intrigued me! I went into the story thinking one thing, but after hearing his story, didn’t realize the magnitude with which he lives life! We even reach into Marshall, Minnesota, where a third-generation family business is becoming quite prominent on the world stage...cementing our region’s reputation of being in the epicenter of agriculture.

Lisa Cownie EDITOR

Happy reading, and hopefully, learning,

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Architecture + Engineering + Environmental + Planning 8

November | December 2019

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Jennifer Spaude talks about balancing family, career and community. “Never too young to lead and never too old to learn.” This belief has helped Jennifer Spaude stay grounded in an industry that is explosive in its growth. She started in the telecommunications industry just as it was on the cusp of unfurling...and as it has grown, so has Spaude. It was in 1998 when Spaude joined a local telephone company, Mankato Citizens Telephone Company (MCTC), as a marketing analyst. She had a front row seat to view the transformation of an industry that would greatly impact the future of people, businesses and communications in general. “The 1996 Telecommunications Act paved the way for major change in our industry,” Spaude explains. “It opened the doors for everyone to compete. What began as a telephone company was evolving into a diversified and growing communications company. We were rapidly deploying broadband services and building infrastructure in neighboring communities, competing with companies, such as Qwest and cable providers. We were also building our operations and network in Iowa, growing our Des Moines market. When I came on board, we had just made an acquisition in northwest Iowa. It was an exciting time to join the company.” For the last two decades, Spaude has ridden the waves of the industry with a telecommunications firm that has changed ownership and names several times. One thing, though, has remained constant: its commitment to the greater Mankato community. “One of our company values is building a stronger community, which is really important to us. We do this through company giving, through employee volunteerism, and through broadband infrastructure investments. Here in Mankato, we are so fortunate to have our CCI Community Fund. In the last five years, we've given more than a million dollars from that fund, which was set up from our legacy HickoryTech Foundation in the early 60s. We are so proud to be able to give these gifts and support nonprofit organizations right here in the greater Mankato area, where we were founded. Additionally, our employees are so generous of their time, whether it's rallying for a cause or serving on committees, supporting the community is an important part of our culture.” Continues

November | December 2019

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And that aligns with Spaude’s personal values as well. She is a mom of two active teens, wife to Ryan (another busy professional) and vice president of a company at the forefront of the telecommunications industry on a national level. She is a very active community member, serving on several nonprofit boards and lending her time and talents to programs she is passionate about. More on that later. For now, suffice to say, she learned her compassion and collaborative spirit from her upbringing. “I grew up on a farm between Arlington and Henderson where my parents taught us at an early age the importance of a strong worth ethic and giving back to the community. I have three brothers and three sisters and we are a close family still today. We see each other often. Family is really important to me.” Now serving as Vice President of Corporate Communications for Consolidated Communications, we spoke with Spaude about the changes she’s seen in the industry over the years and where she sees it headed in the future. We’ve established that you have been with this organization for the bulk of your 20+ year career. But how did you land here? After graduating from Minnesota State Mankato with a degree in Mass Communications, my first job was at Taylor Corporation in corporate marketing. I thoroughly enjoyed what I did there. I was responsible for several direct-mail catalogues and public relations initiatives. I learned a lot while there. But then, in 1998, an opportunity opened up at the then-telephone company, Mankato Citizens Telephone Company (MCTC), which was growing by leaps and bounds. So, I started in 1998 as a marketing analyst at MCTC. It was really an opportune time to get into the industry. We had just become a CLEC, which is a competitive local exchange company, and it was on the cusp of big growth having a metro fiber ring. After a few years, I moved into a product management role. I spent six years in product management and was responsible for our data,

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November | December 2019

Spaude admits, her success has only been achievable because of the support network around her: her family. “Family is the most important thing to me,” she says. “I’m really fortunate to have a very supportive husband, Ryan. He is very busy, too, but he has always been my rock and supportive of the kids and I. Our kids are very active. Sports is a big part of our life right now and a passion for them. Spencer is a senior at West and is 18. Alaina is 15 and a sophomore. It’s a balance trying to get it all done, but together we all work it out.”

Jennifer Spaude | Consolidated Communications

internet, broadband products, as well as our digital TV. That was an important role for me as having that opportunity to learn the technical side has really helped me in my career as I moved into other roles within the company. After being in product management, I moved into a corporate role in 2006, and headed up investor relations, public relations and eventually marketing. Again, you were making a move at a very opportune time. Yes. At that time, we were growing throughout the Midwest. In 2000, we took our holding company name of HickoryTech. Prior to this, we had acquired and assembled a number of companies and brands through our growth. Over the years, we were in a lot of different lines of business, some that we divested of to refine our focus on broadband and business services. There was a time we were MCTC, Mid-COM, Crystal Communications, Heartland Communications, etc. We had all these different brands out there. So we took the leap in 2000 to unify the brand and put all those individual brands under one: HickoryTech, which was also our holding company. But that was just the beginning of renaming/branding. We were growing as HickoryTech. As part of that growth, we made a noteworthy acquisition in 2005: Enventis. This acquisition further diversified us as a business and a broadband company, not just a telephone company, and our service area expanded throughout the Midwest. Enventis became a bigger part of our business. We were growing as Enventis in the Twin Cities, northern Minnesota, Iowa, and we acquired another company in Fargo. In conducting brand perception studies, we were confident Enventis was a brand we could grow with. It was reflective of the business and broadband communications company that we were and helped us shake the stigma of being known as just a telephone company. We made a strategic branding decision in 2013. After much thought, deliberation and study, we decided to change our name and brand to Enventis. In my corporate role at that time, I took on

Spaude Outside of Work “Outside of work, I love to stay active. I think for me, being active, really fuels me and energizes me. I love to walk, hike, bike, play volleyball. I like to golf, but I have trouble finding the time to play. “As a family, we are pretty busy. We love to be outdoors and explore local and state trails, whether it’s bike trails or hiking trails. I walk my dog at night, just that time to decompress is really important. I also enjoy traveling when I can get away.”

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heading up marketing and that rebranding process. Then shortly after our rebranding, in 2014, being a public company, there was a suitor. Enventis had been successful with its growth initiatives and that created an opportunity to merge with a larger company. The offer was presented to our shareholders which they approved, and we merged with Consolidated Communications. That became our new name and brand and that led me into my next chapter. I took on a role of heading up corporate communications. Today my role is vice president of corporate communications. Within my role, there are a number of different elements including: public relations and media relations, crisis communications, brand identity, employee communications, company giving programs, Layered Prevention services and I also spend time on investor relations Intelligent Detection Services and regulatory affairs. It’s a hybrid role. Being a part of the senior leadership team, I get Instant Response Services involved in mergers and acquisitions and, generally all things affecting the company.

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It’s probably fun, you get to do a little bit of everything. Yes, it is fun and it’s certainly been an interesting route to travel. It’s helped to have the background in some of the areas that I have. Some may not realize Consolidated’s footprint is now in 23 states. Since 2004, Consolidated has made five to six notable acquisitions including: TXU

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November | December 2019

Travel Tales “Alaina and I went to Sweden this summer where she played in the Gothia Cup, which was a great experience. This was a whole new adventure for her and for mom,” Spaude laughs. “It was a great trip. This spring, I took a short trip to Amsterdam when the tulips were in full bloom.”

Jennifer Spaude

in Texas in 2004, North Pittsburgh in 2007, SureWest with operations in California and Kansas in 2012, Enventis in 2014, and the largest and most recent being FairPoint in 2017 which was transformative for the company. This acquisition added 14 states with significant operations in northern New England. This jump doubled the size of the company and our fiber network. We became a top 10 fiber provider in the United States. While based here, many of us are also focused locally, regionally and nationally and we have more resources to leverage. The constant changes in the industry must be hard to keep up with! Absolutely. One thing I’ve learned over the years is that you’re never too young to lead, and you’re never too old to learn. Being in this industry, the pace of change and transformation is so quick, I’m learning every single day. We have a really diverse customer base, which ranges from rural consumers to Fortune 500 companies, to social media providers who I can’t name, but you know them – to national healthcare providers, as well as national wireless carriers. We provide the network that wireless carriers operate on. In your role, you have to be well versed in all aspects of the operation. How do you keep up with it all? We have a great team of experienced people who are absolutely dedicated to expanding broadband services and serving our customers. We’re constantly working to improve, and that’s something we are proud of. Being in such a highly competitive industry, the consumer has a lot of options out there. No one can rest on their laurels and hope for the best. Everyone has to compete for business every day. The pace is incredibly fast. We’re buying, building, and partnering to meet our customers’ needs. We’ve got to be innovative in our industry to stay competitive. We’re always building, and at times, we’ve bought companies and have a successful track record of integrating them. And, we’ll partner where it makes sense. It really is a combination of things. Scale is important in our industry to offer our customers competitive solutions. CONNECT Business Magazine

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How many employees do you have locally here? We have 250 employees in Mankato and approximately 315 in Minnesota. We have two offices in Mankato, an office in Edina, Duluth, and a small office in Rochester. We have 3,600 employees across the country. Wow! Do you have to travel a lot? I travel when necessary, but we have very good video and communication tools. Every day, I’m on a video conference with people across the country. I have a virtual team spread out across the country who I talk to every day. But, still, travel is a part of it, too. If you could look into your crystal ball, what do you see? You’ve seen so much change up until now. What do you think is coming next in your industry? Certainly, the industry is becoming more and more competitive, and the demand for bandwidth is constantly increasing. The “Internet of Things” is driving bandwidth needs across all consumers and businesses, any device, any network. Conservative estimates forecast five times the growth in demand for speeds. U.S. internet traffic will triple in the next five years. While internet traffic is tripling, the number of connected devices – which is really what drives bandwidth – is also increasing. The average household is estimated to have 10 connected devices right now and increasing!

Gosh, I believe it, though. Yes, the number of connected devices already far exceeds the number of humans. Telecom providers really need to be lean and agile. It is a race to improve profitability. There’s a great deal of competition. What that means is that we have to continue to improve processes and work to improve the customer experience. Like I said, we build, buy, and partner, and we’re doing that to meet our customers’ growing needs. Here at Consolidated, we definitely have a track record of investing. We also have a really good track record of mergers and acquisitions, and we partner where it makes sense. That’s something I think we’ll continue to see in the industry. Everybody hears about 5G and fiber networks, and how it will impact the internet and consumers. 90% of 5G traffic is said to be video. 5G is driving bandwidth demands, and that is especially true right here. We have added over 200 fiber miles in southern Minnesota in the last five years. We have about 3,000 miles in Minnesota and 37,000 fiber-route miles across the country with more than 2 million total miles of fiber. In the last five years, we’ve invested about $39 million in infrastructure and core network upgrades in southern Minnesota. We’ve been working hard on our broadband speed upgrades. We’re about 85% complete with upgrading approximately 4,300 locations. When it gets back to trends, everybody is building, and adding capacity. It’s an exciting time. The complete change of the

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November | December 2019

Jennifer Spaude | Consolidated Communications

Telecommunications Act in ‘96 is still having ripple effects. We’ve seen consolidation, we’re seeing new competition enter markets. Again, it’s all really good for the consumer. It’s always challenging for the providers to serve all customers, invest and compete. I’m sure that also means innovating as far as new products. Yes, while we’ve been expanding our service area, we’ve also been rolling out new products. For instance, we’ve been upgrading speeds. More recently, we’ve been upgrading to either 80 Mbps or 1 gig in select markets in southern Minnesota. We’ve rolled out many new products like Cloud services, and security solutions. On the consumer front, the big trend in the industry is moving higher broadband speeds and over-the-top content. What do you mean over-the-top, like outrageous? Sometimes. (laughter) The industry refers to over-the-top as providing content options over the Internet versus linear cable. It’s on-demand, when you want it and how you want it. We have been partnering with lots of different content providers and have really been working hard to increase our on-demand, streaming offering. As far as employees go, and as you grow, do you find it a challenge to find employees? Workforce shortage is a big concern in our area. In the last year, we have added 50 people here in Mankato, which

has become one of two major consumer call centers for Consolidated across the country. It can be hard to find people, especially with a low unemployment. Kari Juni, our senior director of customer service, is always working to fill those agent positions. I think the one misconception here is since we are no longer headquartered here, we’re not growing when in fact we are. How many employees do you manage yourself, would you say? My direct team is relatively small with six team members across the country. How do you describe your leadership style? I would say that I am a collaborative leader, with more of a coaching style. I really enjoy building teams, and I’ve got a lot of high performers on my team. Over the years I’ve been lucky to work with some exceptional leaders who I’ve learned a lot from. My team is empowered, and deals with a lot of different situations. There’s not a piece of the organization that we’re not working with or touching. Crisis communications is something we’ve dealt a lot with in recent years. We’ve had Hurricane Michael take out significant portions of our Florida panhandle area. And, Hurricane Harvey impacted our Houston-based operations. I have a team that I can trust and guide. I feel like providing clear direction is really important. And

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we are always striving for constant improvement, for raising the bar. We debrief and talk about “failing forward.” It’s okay to fail sometimes or for things to not go perfectly, as long as we learn from the experience. There are different types of leadership needed in different types of situations. For instance, as we have been putting companies together, it can be a challenging time for employees and for teams. Sometimes employees and even leaders may not see the path clearly. So, communication is really important and critical to the process. One thing that strikes me is that although Consolidated is a huge organization, it is still very community minded. I know you contribute a lot here locally. Yes, the communities we serve are very important to us. The values, I would say, of Consolidated compared to who we were as Enventis and HickoryTech aligned really well. Culture and values are so important when you’re merging companies. You’ve got to have values that align and work toward a common culture. Let’s talk a little bit more about that, since we’re on the topic. I know you are very active in different organizations. Let’s talk a little bit about your community volunteering. Currently, I serve on the Greater Mankato Growth board and the executive committee. I also serve on the Minnesota State University Foundation. I have served on a number of other

community boards throughout the years, often taking the role of board chair including Junior Achievement and Educare. I have also served on the YWCA and South Central College Foundation boards. Within our industry, I am currently serving on a USTelecom committee. I find it’s easy to volunteer when you’re passionate about the cause. I think that’s where I’ve really tried to align my time and focus around causes and organizations I’m passionate about. I know that you probably get asked for everything! So it’s important to set some boundaries. Yes. I’ve gotten a lot better, I won’t say, “yes” on the spot. I do like to think about it and be really thoughtful. There’s 168 hours in a week. You think about how much you work, and then you’ve got to sleep, and then you have to think about how you want to spend the time that’s left. That’s why I try to be really thoughtful, our time is limited. Everyone is busy. I gain so much by serving in the community. I’ve had really good experiences, and I’ve learned so much on the boards that I served on. I think looking back in the last 20-plus years being in the community, just learning from others and learning from various leadership styles. You can deal with some big issues, too. It’s been really rewarding to contribute and be a part of these community organizations. That’s been a really important part for me.

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November | December 2019

Jennifer Spaude

For me personally, I always admired all you do and I’ve never quite understood how you get it all done...and do it so well! You have two active kids, a husband who is also a busy professional, plus your work and community involvement. What’s your secret? I think work-life balance is probably one of the most challenging things for any busy person. I really try to be mindful, like I said, of how I’m spending my time, where I’m spending my time, and what that return is. It’s a challenge for me. It’s a struggle. Some days, you feel like you’ve got it all in check. Other days, sometimes, it can feel a little bit like, are the wheels falling off? I try to be really organized and plan ahead. I’m definitely more of a planner. I’ve gotten better about being more intentional with my time. That’s probably something you have had to learn over the years, how to find that balance. Yes, it’s been one of the most challenging things for me. I don’t have the secret or the answers, that’s for sure. Some days are better than others, right? Exactly. I think the always-connected-world that we live in is both a blessing and a challenge: we’re always clicking, we’re always checking, we’re always online, and we’re always reachable. So in theory, there’s really not a time I’m not working. But on the plus side, it offers flexibility. It gives you the ability to head out early to catch a game because you know you’ll log on later that night. I would say 10 or 15 years ago, I might not have been able to do that. Having that flexibility is great, but it also means, as I said, you are always on call. Last night for instance, we had a service outage in California. So, my plans for the night changed a bit! (she smiles.)

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Owner, CEED Energy Website: ceedenergy.com Phone: 507-341-0632

1 on 1 tells the stories of entrepreneurs and mentors working together to achieve success in our community. By Lisa Cownie, Editor

he September presenter at Mankato’s 1Million Cups was CEED Energy. A startup that wants to provide renewable energy solutions for ag-based needs. Its mission is to make life easier for the person or people who wish to extend the planting seasons that are limited due to weather. CEED was created by David Bassey. Bassey hails from southeastern Nigeria, and from a family that has always been passionate about agriculture. “As a child, I grew up hearing stories about my grandfather, Papa Okon, who loved to grow yams and plantains in his backyard and my grandma, Arit, who sold fish in the marketplace to raise nine children through school,” reflects Bassey. As a 3rd generation ag-enthusiast, Bassey enrolled in Minnesota State University, Mankato as a transfer student where he volunteered at farms and gardening events on campus. CEED Energy was birthed through a series of discussions among family and friends about a problem they identified about five years ago. “During my senior year at MSU, I visited my auntie Helen for the holidays and found out that she had made the decision a couple months earlier to live a healthier lifestyle. I was excited at the time mainly because, we’d get to eat fresh authentic Nigerian food from ingredients we could hardly find. Little did I know that as the number of plants she grew increased, during the winter seasons she and her husband would have to bring in her plants into the patio from her greenhouse just to control the temperature for the plants to survive. “Upon looking at this further, we found out that nine out of the ten planting zones in the United States had temperatures that were below freezing, which were highly unfavorable for plants in greenhouses without a source of electricity.” So Bassey, his brother and some friends, began searching for energy alternatives for her. They were met with various obstacles and challenges, most were not cost-effective solutions. 24

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Yvonne Cariveau, PhD Director, Center for Innovation & Entrepreneurship 424 N Riverfront Drive, Suite 210 Mankato, MN 56001 Phone: 507-389-1018

“Our long-term goal is to continue to develop renewable energy solutions that are viable and can improve the energy affordability. Our short-term goal is to launch the CV-100 kit developmental prototype by Spring 2020,” says Bassey. “Four years later, during a discussion with one of our original five employees, we realized that with a decentralized renewable energy source and storage, we could generate enough energy to reduce the cost of energy production for residential growers and provide a platform where people who are interested in growing their own food can engage. “CEED Energy started because we saw a problem that we were uniquely positioned to solve. By deploying small scale – less than 10 kW – clean energy solutions, we can increase the energy affordability to mankind. We envision a world where the residential owner would be able to contribute to the grid, just like conventional power plants, moving us one step closer to 100% energy production from renewable sources.” Bassey and his team were finally able to launch the second phase, research and development, this summer with the help of funding provided by the University’s Big Ideas Challenge. The next stop was 1Million Cups. “We decided to present at 1Million Cups to bring awareness to what we were doing and provide initial connection with the Mankato community, as this is the soil where CEED Energy germinated in,” explains Bassey. “We believe it was important to reach out to the community for support because a cleaner energy future is only possible if all stakeholders get on board and are aware of how they can contribute either through site assessments, talent

PHOTO SUBMITTED

David Bassey

referral or any other means.” Bassey says the experience was just what CEED needed. “I was fortunate to represent our team at this event. The community felt like home as always with lots of comments and questions. The experience was amazing! It was a great feeling presenting in front of community and business leaders from other industries,” he says. “I left with the feeling that Mankato will be known for massive growth and advancements in energy and agriculture. The feedback from the community and our team members helped us identify new challenges we must surmount to lead to a successful product launch.” Bassey says finding good mentors in the community is another benefit of participating in 1Million Cups. “We have been blessed with multiple mentors throughout this experience. We wouldn’t have had this opportunity if not for the CIE and Yvonne Cariveau, Jennifer Wanderscheid at Regis Mankato and phenomenal mentorship from Sarah Richards, CEO of Jones Metal. They have been very instrumental in guiding me, as well as the team, through critical conversations and advice.”

iven CEED’s goals, he says one question he has for the community is “what are some ways a young energy startup ‘like CEED Energy’ can continue to be better steward of the environment while creating global solutions of tomorrow?” Bassey cites Yvonne Cariveau, the director of the Center for Innovation & Entrepreneurship, as an early mentor for his business. So we went to her to help him get some additional help and resources as he moves forward. “David is on the right track,” says Cariveau. “He’s continuing to refine his prototype with testing to make it the best product he can and he’s getting out in the community and sharing his story to help find investors and partners. “I’m gathering information about opportunity zone investment possibilities for all of our student and faculty entrepreneurs and will encourage them to talk to those in our area interested in keeping talented young people like him in this area through that type of investment. Seed and angel funding is a definite gap in our local ecosystem, but there have been exciting discussions lately around filling that need.”

What is 1Million Cups? 1Million Cups is a free, nationwide program designed to educate, engage and accelerate early-stage startups. You can join innovators and entrepreneurship enthusiasts in the southern Minnesota region every first Wednesday of the month at 8:30 a.m. at the Center for Innovation & Entrepreneurship on Riverfront Drive in Mankato. For more info, visit 1millioncups.com/mankato. CONNECT Business Magazine

ENTREPRENEURIAL INSIGHT

A Partnership for a Thriving Entrepreneurial Community One barrier to entrepreneurs may often be just knowing where to start and where to go for help. Communities across southern Minnesota recognize this challenge and are doing their part to break down barriers for entrepreneurs. Look at Jackson, Minnesota for example. The Jackson Economic Development Office is far more than just one organization but rather a partnership of multiple organizations all working to support growth in Jackson. The Jackson Economic Development Office partnership includes The City of Jackson, Community and Economic Development Associates (CEDA), Jackson Economic Development Authority (EDA), Jackson Economic Development Corporation (JEDC) and the Jackson Business

November | December 2019

Thomas Nelson JACKSON ECONOMIC DEVELOPMENT CORP.

The partnership that is behind the Jackson Economic Development Office ensures that all types of businesses are able to receive the support they need. Development Committee (JBDC). This unique mixture of organizations allows the community to focus on different areas of economic development at the same time. One way the City of Jackson supports growth is through numerous industrial, retail, and housing loan funds. The city revolving loan fund provides gap financing for businesses, helping to ensure that they are able fund new ventures as well as expansions. Housing funds work to encourage homeownership by providing interest-free down payment assistance loans, Small City Development Program grants and fix-up loans. The city of Jackson has historically provided staffing through the Economic Development Office. This has allowed others in the partnership to focus their efforts and resources towards projects. In recent years, the city brought in CEDA to provide the staffing for the office adding yet another partner to the mix. CEDA provides economic development support for rural communities in the Midwest. CEDA brings more than just the staff in the Jackson Economic Development office, they bring a whole team of experience and knowledgeable professionals. With other organizations in Jackson focusing on specific business sectors, the EDA works to encourage increased housing options in the community. In order for any business to be successful they need employees, and those employees need somewhere to live. The EDA is currently marketing Sunset View, a subdivision with lots available for as little as $5,000. The JEDC has been integral in attracting business such as AGCO, CAT Ziegler, Ametek, and West Corporation. The group started as a for-profit corporation

and in 2003 reorganized into a nonprofit, continuing to be a key player in attracting new business. They currently have both an industrial and commercial development park. The JEDC also has a 30,000 square foot industrial building available for sale or lease. The final organization of this unique partnership is the JBDC. The group has changed over the years but has always worked to support local commercial business in the community. The group developed both the Jackson Faรงade Improvement Program and the Jackson Business Challenge, both which were run in 2019 and will run again in 2020. Jackson, Minnesota is a fantastic place for any business small or large to grow. The partnership that is behind the Jackson Economic Development Office ensures that all types of businesses are able to receive the support they need. Entrepreneurs in Jackson have access to the people and resources they need to be successful. To learn more about these organizations or any of the programs mentioned, call the Jackson Economic Development Office or go to any one of the web pages below. THE ESSENTIALS

Jackson Economic Development 507-847-4423 cityofjacksonmn.com/econ_dev Jackson Economic Development Corporation (JEDC) growingjackson.com Community and Economic Development Associates (CEDA) cedausa.com

A DAY IN THE LIFE

Amber Pietan Owner of Amber Pietan Travel Agency, Inc.

started my career with AAA in Mankato in 1999 and enjoyed 13-1/2 years with them. In February of 2013, I started my own business; Amber Pietan Travel Agency, Inc. All combined, it is twenty years of being a travel agent in Mankato. How did you get started in travel? A few stars aligned to make it all happen. We traveled a lot as a family when I was a young girl. We would camp in tents and drive all over the western United States. My sister and I would pick up the tri-fold brochures at wayside rest areas and then play travel agent and hotelier in the back of our Econoline van. While working through the general courses at Minnesota State University, Mankato as a young adult, I overheard my best friend saying she wanted to be a travel agent. I knew at that point that is what I wanted, too. I switched schools and set my sights high. I graduated in 1998 with my diploma in travel.

There are self-help books, motivational blogs and leadership symposiums to help the business and entrepreneurial-minded make the most of each day to maximize productivity. Connect Business Magazine, though, recognizes we have great resources right in our own communities. So we are going right to local business leaders to give all of you a glimpse into how they manage their days. The goal is that readers may be able to take away little tidbits to incorporate into their own lives to be at their best in and out of the office!

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Helping people get out of their office is a specialty for Amber Pietan, owner of Amber Pietan Travel Agency in Mankato. In fact, she’s been in the travel industry for two decades...and counting. She’s also a mom and a busy community leader. How does she manage it all? Let’s find out: I understand you just celebrated a big milestone anniversary! 20 years, correct? Yes, it was a personal milestone of being a travel agent in Mankato for twenty years. I

I have always wondered how travel agents keep everything straight with the number of destinations you have to be an “expert” on! How do you keep track of it all? The best way to keep track of it all is by experiencing the different destinations personally. Since I began my travel career, I have traveled to two to three destinations every year. Vendors, tourist boards, and chamber of commerce organizations welcome travel agents to travel to their destination during the low season, to come and explore for our own experiences. In this way, we are able bring information back to our clients and explain the wonders of the destination. It is much easier to sell the destination and explain it thoroughly after having been there myself. Other ways to be an expert are to take new and continuing education classes to learn and update ourselves on destinations. What is your most important business tool? I would have to say my mind is my most important business tool, because I have so much to share. With my experience, I can provide personalized information

Lisa Cownie EDITOR

about places where you may travel to, or give you travel tips. When is your most productive time of day? I am busy all day long; morning, afternoon, and evening. Many people are only able to communicate after they are off work. So really, I am busy all day long. I strive really hard to work around my clients’ schedules. What’s the best business advice you have received? To always do your best. That advice came from my supervisor at AAA. She always said, ‘if you are doing your best, that is all you can ask for.’ Another good piece of advice I received recently is to breathe and stay calm. My current mentor told me that. How do you start each day? I make myself a cup of coffee or tea and sit out on my deck and enjoy the morning sounds of the birds, insects, and trees. How do you end each day? I love to spend time with my 13-yearold son. Well, we know you travel! What else do you like to do outside the office? I enjoy history, nature, traveling, and spending time with my son. I love seeing waterfalls, mountains, and trees! I also like watching Star Wars and Marvel movies!

THE ESSENTIALS

Amber Pietan Travel Agency 340 Pierce Ave North Mankato, MN 56003 Phone: 507-382-0669 Fax: 507-386-7128 An affiliate of Cruises and Tours Unlimited/Outside Agents

CONNECT Business Magazine

ENTREPRENEURIAL INSIGHT By Laura DeKok

Lynette Lusk Owner of Virginia & Co.

Ever since she was little, Lynette Lusk had a love for old buildings. She loves the architectural design and found beauty even in the buildings that had been left to sit, without their true characteristics shining through. When the building in downtown Jackson that formerly housed a Hallmark store came available, she saw her opportunity. “I truly wanted to bring an ugly building back to its original 1890’s design, and make a fun and unique place for people to enjoy and also give them a place to purchase gifts,” Lusk says of her store, Virginia & Company, named after her mother who had passed away. Lusk grew up in Jackson, so she is familiar with what the area has to offer. With a background in the medical field and the customer service industry, she has worked with people of all different backgrounds and interests. This gave her a great view of what many different people might want.

Jumping In Feet First

With a desire to open a small gift shop, Lusk was always on the lookout for new ideas, but she never really knew if she’d do it. She talked about opening a store for years, and one day a close friend told her to just do it. “She told me to stop talking about it, and just do it,” Lusk said. “So, I did.” 28

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The store opened to much anticipation on May 16, 2016 and has since blossomed into something much bigger than she had anticipated. The plans were to have a small store, but once she took on the location and gutted the space, she realized how much room she truly had. The store is at least double the size she’d imagined, but she has managed to keep it full of all sorts of odds and ends.

She also has to make all business decisions on her own, find time to take care of all aspects of the business from purchasing stock, keeping up with inventory, meeting with vendors, maintaining hours, and all of the little things that many people forget about, as well as attempt to find time for herself and her family.

Minnesota First

Within the store there are many books, calendars, even wall décor that have quotes on them. One that Lusk really liked was an Assyrian proverb that states: “There is no shame in not knowing. The shame lies in not finding out.” This was a big part of why she decided to open Virginia & Company. She knew she wanted to take that chance and find out what it would be like. She said that anyone considering opening their own store should know that if you just keep talking about it, it won’t ever happen. You have to take that step, accept the risks, and just do it. Another piece of information she said for those considering doing something similar is to know that you won’t be able to pay yourself for quite a while. Starting a business is costly, and while it is a labor of love, it’s also a financial leap. Slow and steady is the best way to grow, but it starts at a cost that may not be returned for quite some time.

If someone were to describe Virginia & Company, they might say that it has something for everyone. Lusk said that she had the idea to make it similar to an old fashioned mercantile where people could buy gifts for others, but also things for themselves. She has clothing for women, also a few for babies and toddlers, socks for anyone who could want them, chocolates, books, puzzles, dishes, kitchenware, jewelry, a great selection of kid’s toys and books, dish towels, cards, pens, journals, and so much more. There truly is something for everyone in Virginia & Company. One of the main things she works on, is keeping items in stock that are made locally or regionally. Sure, there are some items that come from farther, but many of her items come from makers, artists, designers, and more from the area. She supports the local artists, and loves displaying items from people right within Jackson County. She has also worked to keep things from the state of Minnesota in stock. Lusk also finds it important to give back to the community, and often participates in fundraisers through donating items for silent auctions, or even holding specials where a portion of her sales go to local non-profits such as a local animal rescue and the local food shelf.

Small Business Struggles

While owning your own business and filling it with all sorts of fun things sounds like a dream job, it does not come without its fair share of struggles. While Lusk has the option to bring in anything she wants, this is also hard many days. “I run the store alone,” Lusk said. “You can’t leave for long amounts of time. Even though I have some great staff members, if something breaks or needs to be fixed, I have to do that.”

Word to the Wise

Moving Forward

While starting a business is a lot of work, Lusk has enjoyed it. She said the best thing you can do for yourself is to surround yourself with positive people. Those who have your best interest at heart and are not looking for personal gain. Those are the people that have pushed her along the way and been beside her to keep things moving. Her plans for the future are to build up and continue to maintain the historic integrity of the building she is located in, and to keep the business moving, slow and steady. THE ESSENTIALS

Virginia & Company 402 Second Street Jackson, MN 56143 Facebook: Virginia and Company

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STR ATEGIC PARTNERSHIPS SERIES

The Hub for Connecting Students and Businesses Minnesota State University, Mankato: Strategic Partnerships Center

ig Ideas. Real-world thinking. You may have heard the slogan for Minnesota State University, Mankato, but their Strategic Partnerships Center is putting that slogan into practice. Located in historic Old Town on North Riverfront Drive, the Center helps businesses, students, and the greater Mankato community connect in an ever changing economy. Associate Vice President for Strategic Partnerships, Dr. Robert Fleischman, says “the purpose of our partnership division is to focus on meeting the needs of business while developing

talent pipelines.” Partners such as Kato Engineering, Taylor Corporation, Jones Metal, Dotson, Mayo Clinic Health Systems, Sanford Health and Nursing, among many others, create a valuable connection between area businesses and MSU students who help fill talent gaps. Fleischman also states that “higher education is the single biggest way for individuals to become upwardly mobile.” The goal is to provide an education which helps better prepare students to be truly ready for the workforce they will be joining, CONNECT Business Magazine

PRESENTED BY:

STR ATEGIC PARTNERSHIPS SERIES

Nathaniel Tucek

through collaboration with employers. The Strategic Partnerships Center houses the Center for Innovation & Entrepreneurship, the Small Business Development Center, as well as Continuing and Professional Education. Each providing valuable services to the greater Mankato community through training, resources, education and of course, strategic partnerships. Partnerships that help local businesses and students at MSU to connect and make viable economic impacts on the region. MSU’s Small Business Development Center has helped to start 41 new businesses in their nine county region in the last year alone, while creating or retaining 657 jobs. The SBDC offers services such as business plan development, start-up assistance, access to capital, and cash flow management, to name a few.

Fleischman says ”this is the kind of experience students cannot gain elsewhere. The unique opportunities we provide really distinguish their studies from peers at other institutions”. Nathaniel Tucek, an MSU Junior majoring in International Business, works for the SBDC as a Marketing Assistant. He finds his work with the SBDC gives him a leg up on the competition when it comes time to find a job upon graduation. “As a university employee, I enable myself to bridge the gap between the classroom and the real world. Working for the SBDC lets me work in a role similar to what a business consultant would do. I find this extremely valuable because

Hannah Hollingshead

these are positions that are hard to find as an undergrad through an internship, but through extended employment, I can build the relationships and my expertise over time to allow myself to do this.” The Center for Innovation & Entrepreneurship, also housed in the Strategic Partnerships Center, applies classroom learning to real world experiences for students. To complement their studies, students gain real world entrepreneurial experience by working with business mentors in the community. Fleischman says ”this is the kind of experience students cannot gain elsewhere. The unique opportunities we provide really distinguish their studies from peers at other institutions”. Continuing and Professional Education (CPE) provides accessible opportunities for professional development and customized training for regional businesses. This helps businesses and agencies focus on talent acquisition, talent development, and retention by identifying needs and utilizing the University’s resources and students to train the workforce. Hannah Hollingshead, a senior student Marketing Assistant for the CPE, makes viable contributions to this program. “Working for the University has provided me with ample real-world learning opportunities that have assisted in developing me into a young professional. These experiences range from having the opportunity to engage daily with university representatives and industry professionals in a business setting, to completing and submitting my first grant application” says Hollingshead. The Strategic Partnerships Center is located at 424 North Riverfront Drive in Mankato. “We want students to know they can stop by and we will always make time for them,” Fleischman says.

LEARN MORE: https://link.mnsu.edu/maverickacademy

AG FOCUS

Running in Circles Kerry Hoffman AG CONTRIBUTOR

You know how it goes when you are having a discussion with someone and you are trying to convince them that their way of thinking is just absolutely incorrect. You try and explain that you are acting in their best interest, but no matter how much you try to convince them, it’s like the belief is set in stone. Even if I am very knowledgeable in the subject, no matter what I could say, I will not change a point of view. It’s frustrating and tiring. I am at a point where I am beginning to wonder if it is even worth the efforts to try to convince others of how they are being so ill informed with less than accurate statements. Such is the case when working with people not in the know about agriculture. I could preach and preach and possibly change one person’s mind, then in a matter of seconds, some larger-than-life personality makes a comment to all of his or her followers and, “Boom!” my work is blown to smithereens. Just the other day, I saw a post on social media about a box of pasta that was labeled GMO free. (Don’t even get me started on how wrong the darn butterfly logo is. There are more of those butterflies slapped on labels than butterflies slapped into the front grill on our vehicles, in total.) There

is not a single piece of wheat that has been genetically modified. Nada. Zilch. Zero. But yet to meet the supposed wants of the consumer, the pasta company slaps on a Non-GMO statement. Then I saw another post on cow flatulence. I could use the other word, you know the one that starts with an F, ends with a T and has an AR in the middle, but I am classier than that. I mean really. Yes, cows have a lot of gas in their stomachs. Some days, even you and I contribute a lot of methane to the atmosphere. Sorry. It’s true. We all experience it. Cows because they have four stomachs. And those burps are coming out of the front end of the cow, not the back end. Front-end burps contain more methane than the exhaust. But did you also know that bogs, you know the ones that are infamous in Ireland and other areas across our great planet, send more methane floating into the sky than all cows put together. Livestock, including cows, pigs, sheep and other animals — are responsible for about 14.5 percent of global greenhouse gas emissions. Cows are the primary offenders in the animal world. But animals are not the main cause of methane in our atmosphere. Most methane comes from decaying vegetation and by the bacteria in wetlands and swamps. Something that has been going on for millions of years. The oil and gas industry produces boatloads of methane, producing one-third of ALL methane emissions. But that doesn’t matter. Let’s blame family farms. Lets make it hard for them to get up and feed the world, knowing that the loudest voice is going to make it hard to proudly proclaim that we are farmers.

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Speaking of family farms. Those that think large farms are factory farms just can’t be convinced that, although some of these farms are large, they more than likely are owned by a family. Why is it bad for a family to have a large corporation classified as a farm and then receive all the backlash, but a large family-owned manufacturing business is praised for making it through several generations. I know of farms that have been in families for more than 150 years. We should praise them with big signs out on the highways and bi-ways of America. So, you can see why I find fighting for American agriculture to be so hard. It’s like the old adage: One step forward and two steps back. I seriously cry when I think about how hard it will be for my sons to continue farming. Why would I want my son to choose a profession that only brings damnation? I think there is only one remedy to this conundrum. We need a negative economic event. One that makes consumers have to struggle to feed their families. Maybe they need to grow their own food. How many people have the time to plant, grow, harvest and store their entire menu of one year. Maybe there won’t be a loaf of bread on the grocery-store counter. Or maybe there won’t be a gallon of cow’s milk or the sugar-laden almond juice. Speaking of almond juice. Some like to call it milk. It’s not milk. It’s juice. Juice, which I am sure will be labeled non-GMO with that silly little butterfly on the package. It comes full circle. On a side note - Genetically modified foods include only eight items: corn, soybeans, cotton, potatoes, papaya, squash, alfalfa, and canola. These crops have been genetically modified to produce healthier crops, more production per acre, etc. If you are anti GMO, that means to me that you could possibly be pro-starvation. I could go on and explain the benefits of having these items genetically modified, but I fear opening another box of people coming down on me for trying to share the benefits of potatoes that resist blight and corn that survives rootworm infestations. And I am tired of running around in circles. Kerry and her husband, Steve, own and operate a dairy production business in rural New Ulm.

November | December 2019

Got an agriculture-related story idea? Email editor@connectbiz.com.

Hemp: The Rules Keep Changing But Here’s What We Know Now On December 20, 2018, President Trump signed into law the Agricultural Improvement Act of 2018, more commonly known as the 2018 Farm Bill. With the 2018 Farm Bill came the legalization of industrial hemp. Although legal, there are some important considerations farmers and businesses need to be aware of to navigate the current regulatory landscape.

What is Hemp?

Today, the terms hemp and marijuana are often used interchangeably to refer to the psychoactive drug. Although the two plants come from the same family of cannabis, Cannabis sativa L., marijuana and hemp share an important difference. Marijuana is high in a psychoactive chemical called delta-9 tetrahydrocannabinol (“THC”). Hemp, on the other hand, is high in a non-psychoactive chemical called cannabidiol, or “CBD.” Before the 2018 Farm Bill was passed, hemp was listed as a Schedule 1 controlled substance, along with marijuana, under the Controlled Substances Act. The Controlled Substances Act defined marijuana as “all parts of the plant Cannabis Sativa L,” which includes hemp. The passage of the 2018 Farm Bill reclassified hemp as an “agricultural commodity,” removing it from Schedule 1 classification and the Controlled Substances Act entirely. Under the 2018 Farm Bill, hemp is now defined as any Cannabis sativa L. plant with a THC content of 0.3 percent or less. Within thirty days of harvest, the Minnesota Department of Agriculture tests the THC content. Any field that exceeds the 0.3 percent limit will be ordered destroyed.

Licensing

The 2018 Farm Bill enables individual states to submit a plan to the USDA Secretary that, upon approval, allows that state to be the primary regulator of hemp in that state. If a state does not submit a plan, or the plan is denied, hemp producers in that

state will need to obtain a federal license issued by the USDA secretary via a licensing procedure that is still forthcoming. Plans will be reviewed after the USDA issues new, forthcoming regulations. The USDA plans to issue regulations this fall, giving states enough time to submit their plans for the 2020 planting season. In the meantime, individuals and businesses in Minnesota must be licensed under Minnesota’s Hemp Pilot Program to grow and process hemp. Minnesota’s Hemp Pilot Program will continue until the USDA approves Minnesota’s hemp plan. After Minnesota submits its plan, the USDA has 60 days to approve or reject it. There are two different licenses available under the Minnesota Pilot Program; a license to grow hemp, and a license to process it. Producers wishing to both grow and process hemp must hold both licenses. Before applying for a license, it is important to review which activities the Minnesota Department of Agriculture allows under each license.

Crop Insurance

Crop insurance was not available to hemp farmers for the 2019 season. Recently, the USDA announced that crop insurance will be available for the 2020 season under the Whole-Farm Revenue Protection program (WFRP). An important caveat to the WFRP program is that hemp with a THC content above the compliance level will not constitute an insurable loss.

Rhett Schwichtenberg ASSOCIATE ATTORNEY GISLASON & HUNTER

Drug, and Cosmetic Act and Public Health Service Act, it is illegal to introduce CBD into the food supply, market CBD products as dietary supplements, or market CBD products with a claim of therapeutic benefit or any other disease claim before going through the FDA approval process. The FDA did grant GRAS (generally recognized as safe) status to three hemp seed products: hulled hemp seed, hemp seed protein powder, and hemp seed oil. Sale of these products is permitted because they contain only trace amounts of THC and CBD. The FDA plans to issue a report by early fall detailing its progress. As the FDA is cracking down on businesses selling unlawful CBD products, it is crucial that CBD businesses review their marketing practices and the relevant regulations. Rhett Schwichtenberg is dedicated in representing the best interests of his clients through the foundation to the succession plan and all aspects in between including financing projects, corporate agreements, mergers and acquisition transactions, general matters, estate planning, wills and trusts.

CBD Products

Although the 2018 Farm Bill legalizes the growth and processing of industrial hemp, it does not regulate the sale of CBD products, explicitly preserving the FDA’s power to do so. Guidance involving the sale and marketing of hemp-derived CBD products is hazy as the FDA has not issued new regulations since the 2018 Farm Bill passed. The Commissioner explained that under the current regulations of the Federal Food, CONNECT Business Magazine

By Lisa Cownie

Photos by Jonathan Smith

FAMILY VALUES, HIGH-TECH SCIENCE The Knochenmus family of Marshall takes their mission of providing the best in animal nutrition around the globe. Knowing where food comes from before it hits our dinner tables is something consumers are embracing like never before. And never before have so many people relied on so few for their food. One Marshall company is on a mission to perfect technologies that naturally create an abundant global food supply. A company that revolutionized the very first step in the farm to table movement: the food consumed by the animals and plants that produce it for us. Ralco uses science and technology to provide the agriculture and aquaculture industries with natural technologies that help create safe and abundant food. “It’s tough to boil down what we do to one phrase, but I guess what describes us best is that we rethink nutrient conversion every day,” explains Brian Knochenmus, president and CEO of Ralco. “Whether it’s poultry, swine, dairy, or beef we think about how the diet they consume puts them in the best position to do what is being asked of them whether that is to provide milk, or to provide food for consumers. Our mindset is to perfect nutrient

conversion. We may never get there, but the pursuit of it is going to help us succeed.” It’s a pursuit that started with Knochenmus’ grandparents in the spring of 1971. Bob Galbraith founded Ralco after developing a product known as Suppli-Mix. A product Knochenmus says was ahead of its time. “After my grandpa developed this product, Suppli-Mix, he knew he was on to something. So he and grandma mortgaged their furniture for 2,500 bucks to start their company,” Knochenmus explains. "Really it started with his quest for better nutrient conversion for animals. He understood the pain of wasted nutrients, which when you think about it, was early for his time. In the early 70s, there probably was less of a need for low cost and efficiency because people could supply their own feedstuff. So, he really pioneered the idea of better use of feedstuff in diet in cattle and was able, through Suppli-Mix, to establish a better way to convert nutrients naturally. Also, he was successful because he understood the essence of people. Continues

CONNECT Business Magazine

Family Values, High-tech Science

It distributes products in more than 40 countries with offices in Ecuador, Uruguay, The Netherlands, Thailand and Canada, enabling them to better take the technologies to the people that need them. Ralco is considered a leading global provider of livestock nutrition, animal health products, crop enhancement products and shrimp production technology. He understood that people buy from people and that is something that has probably been minimized in today’s culture. But he understood the importance of personal interaction.” Today Ralco carries on that tradition and has added products, diversified, and created new business units. Still headquartered in Marshall, Ralco has global reach. It distributes products in more than 40 countries with offices in Ecuador, Uruguay, The Netherlands, Thailand and Canada, enabling them to better take the technologies to the people that need them. Ralco is considered a leading global provider of livestock nutrition, animal health products, crop enhancement products and shrimp production technology. Knochenmus is still amazed at the continuous improvement and breakthroughs he sees in the industry. All of them, he says, are to the benefit of the end user. “Every day, producers face operational decisions that affect their livelihood. Managing input costs is critical to ensure their money is invested wisely. Ralco understands this and has built

strong partnerships with producers around the world to provide guidance. Many nutrition programs look good on paper, but you need nutrition programs that earn their keep at closeout,” he says. To that end, Ralco has invested heavily in research. “We take a unique approach by focusing on the energy an animal gets from its nutrition rather than just the amount of energy in the diet. Our technical team understands how to drive and take advantage of digestive efficiencies. That knowledge leads us to build diets differently. Our diets, enabled by our technology packs and premixes, lead our customers to new levels of performance, efficiency and profit.”

Third Generation Family Business

Knochenmus started working in the family business early in life, and has had the opportunity to touch about every aspect of the business. “My father and mother and uncle purchased it from my grandparents in the early 90s, and that’s about the time I got involved. I started

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working in the plant and in operations through the 90s, then joined the marketing and sales efforts around 2000. After that I got into technology and managed the R&D work and market expansion into international businesses as well as some business unit expansions, particularly taking technologies into crop science. So I’ve gotten to know most of the nook and crannies but its changed a lot over the years.” While his father, Jon, is still active in the company, Brian Knochenmus took over as the company’s President and CEO in 2015.

“The Birthright product really made an impact in the swine industry,” says Knochenmus. “It lets producers think about weaning pigs early off of sows or if a sow has died they can still feed the piglets. That product really made a big impression.” And it came at a time when the globe was closing a bit in agriculture and Ralco started finding itself on the world stage, getting opportunities globally in Latin America and southeast Asia, to Europe and Ecuador. Staying on the diversification track, the next big thing for Ralco

Evolution of Ralco

Diversification has been key to Ralco’s dominance in the industry and its growing global footprint. In the 70s and 80s Ralco grew in the areas of beef and dairy. In the 90s they added swine to the mix, and made the investment into the scientific and technical expertise needed to really make an impact. “When we hired a renowned swine nutritionist we truly committed to the people and research needed in our quest of nutrient conversion,” he says. “We’ve brought a lot of science to the table and that’s what we are known for: taking a scientific approach to product development. That commitment to science and technology is the secret sauce of Ralco.” That research and knowledge helped Ralco develop a milk replacer for baby pigs that was revolutionary. Called Birthright, it remains the gold standard for digestible and convertible nutrients for piglets.

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came in the form of essential oils and bringing them into mainstream use in animal feeds, in particular poultry and swine. Just like it had so many times before with its products, Ralco launched Regano and quickly set the standard in diverse use of oils to strengthen animal health. Regano remains a top seller today. The next big milestone for the company came in 2009, when they formed an entirely new business unit called Agnition. This was the company’s foray into crop agriculture, they were no longer just focused on animals. “Agnition helped us to have a focus on crop science, particularly technology that stimulates the microbial environment in soils.

Knochenmus has not only spent the last two decades growing the business, but growing his family as well. “I am the luckiest man on the planet,” he says. “And I’m not blowing smoke. My wife and I have been married since 1998 and we have seven children: four boys and three girls.” The oldest is Olivia, 20; then Odesssa, 18; Owen, 16; Oakley, 14; Osiah, 11; Ora, 8; and Ozak, 3. “We are a faith-based family and are serious about stewarding our God given gifts. I’m just really thankful. My dad is still active in the business and we all see each other often. At Thanksgiving, a comment was made about how nice it was to sit down at the dinner table and not have family friction or descension. Again, I’m just very thankful.”

Ralco | Marshall

Actually, our original product, Suppli-Mix utilized this same concept. So we were building on the 70s just taking it to different areas. “We saw fantastic growth in crop nutrition,” he continues. “Agnition releases nutrients in soil to help with plant health. The nutrients are in a form where plants can take them up more easily. It activates the soil and makes the nutrients ready for plants to absorb. It’s garnered big time results in plant growth and yield.” Not one to rest on their laurels, Ralco leadership recognized another new and unique opportunity in 2014. “While in Ecuador on business, we ran into some researchers who were there from Texas A&M University,” he reflects. “They were exploring land-based shrimp production. We thought, ‘wow, wouldn’t that be cool to do in Minnesota?’, it seemed like a crazy idea. But the more we looked at it, the more we thought we could probably do it. So we acquired the patent from Texas A&M in 2014 and started developing our business case. It took a few years, but two years ago we were ready and split it off into its own business: The trū Shrimp Company. In Balaton, Minnesota we have land-based shrimp production. It’s amazing.”

The Future

Knochenmus says today, swine products do make up 60% of the business, but after spending the last two decades diversifying,

Outside the Office With his large family, Knochenmus says there is always something to do and his family prefers outdoor activities. “We have to be okay with variety,” he says. “We like anything outdoors pretty much, we like hunting and fishing, more than half of us like water sports such as jet skiing.”

CONNECT Business Magazine

Family Values, High-tech Science

Past and present Ralco owners: Mindy Knochenmus, Brian Knochenmus (President & CEO), Lou Galbraith, Robert Galbraith (founder, President 19711990), Niter Knochenmus, Jon Knochenmus (President Emeritus, President 2004-2015), Pam Galbraith, and Randy Galbraith (President 1990-2004)

Catch the Hometown Business Connection on KEYC News 12! KEYC News 12 and Connect Business Magazine bring you the stories of area local businesses and how they impact Southern Minnesota. • First Wednesday of the month on KEYC News 12 at 6 • Repeats Thursday on KEYC News 12 Midday • See all previous episodes on keyc.com

he’s happy with the track Ralco is on, although he does see an area he can improve upon. “We started in beef, then added swine and poultry, even got into crops, trū Shrimp, and some aquaculture. That’s a lot of expanding and diversification but we are in a good spot in the industries we are serving. I think where Ralco needs to do better is in that connection with the consumer.” More so, he says, helping the producers Ralco serves, better connect to the consumer. “As a company we’ve had to gut check ourselves. Actually, not just Ralco but agriculture in general. It provides a product that every single person needs and we’ve not done a great job at connecting with consumers. “At Ralco, we think about producers, distribution, manufacturing but it’s important to maintain a good connection to the consumer. I think 98% don’t know what goes on on a farm, so we need to make our voices known to counteract any misinformation that might be out there.” Ralco was founded in Marshall, and that, says Knochenmus is where it will stay. “We’ve certainly had opportunities to move, but this is our home. Our family is here, our church is here, our employees live here. The thing about Marshall that is exciting – actually it’s true of the entire upper Midwest – is that we are the epicenter of agriculture. Minnesota can be proud of that. Minnesota is a good fit for us, and Marshall in particular.” In total Ralco has about 200 employees.

THE ESSENTIALS Ralco 600 Michigan Road Marshall, MN 56258 Phone: 800-533-5306 Web: ralcoagriculture.com

November | December 2019

CONNECTING BACK

2019

BUSINESS AWARDS

2014 Five years ago, Deb Taylor, the South Korean-born niece of Glen Taylor, graced our cover as she worked her way up to the executive team at Taylor Corporation. Adopted by Glen Taylor’s older brother Roger, Deb became Taylor’s right-hand person being tasked with leading the company into the future. Also featured were Winnebago Manufacturing Company in Blue Earth and Wendy Emler of Century 21 Northalnd Realty in Fairmont.

2009 Ten years ago, Tom Rosen was our cover story, talking about the $2.5 billion Rosen’s Diversified of Fairmont. Also featured were Easy Automation, an innovative company in Welcome and B&D Metal Works of Wells.

2004 Fifteen years ago, a jack of all trades from Fairmont graced our cover. We featured Fred C. Krahmer as the cover story. Also featured were Mankato Symphony and St. Peter Woolen Mill with a side bar on Mary Lue’s Yarn & Quilt Shop.

and

HALL of FAME

RECIPIENTS

PRESENTED BY

The Greater Mankato Business Awards & Hall of Fame is Greater Mankato’s premier business awards event. This event is a time where Greater Mankato Growth, Visit Mankato, City Center Partnership and GreenSeam honor outstanding businesses, professionals and organizations within the Greater Mankato community. Here are this year’s award recipients:

Visit Mankato HOSPITALITY AWARD

Justin Ek, Bellissimo Paint & Coatings BRING IT HOME AWARD

Aussie Peppers

Greater Mankato Growth

City Center Partnership

BUSINESS LEGACY

RENOVATION ($1,000,000 - $3,000,000)

BUSINESS HALL OF FAME

RENOVATION (UNDER $500,00)

Carlson-Tillisch Eye Clinic

Vetter Stone

Bumbelou

Fun.com United Prairie Bank

DOWNTOWN DETAIL

DISTINGUISHED BUSINESS

Freedom Home Care, LLC BRIAN FAZIO BUSINESS EDUCATION PARTNERSHIP

Feeding Our Communities Partners, ISD 77, ISD 2071, ISD 2135, ISD 75, & ISD 507 HAP HALLIGAN LEADERSHIP

Stoltzman Park SUSTAINABILITY

Hubbard Building CREATIVE PLACEMAKING

ChalkFest

GreenSeam SEAMED IN SUCCESS

Farmamerica

Laura Bowman

GROWING IN THE GREENSEAM

YOUNG PROFESSIONAL OF THE YEAR

Revol Greens

Angela Guentzel

Specializing in Workplace Retirement Plans

1999 Twenty years ago, we featured another of Glen Taylor’s picks! Stafford Harder, president of Carlson Craft was on our cover. Hand picked and groomed by Taylor himself, Harder was often referred to as Taylor’s clone being transparent, empathic, warm and passionate about the business and employees. We also profiled a variety of other local companies: Dave McClellan of House of Print in Madelia, Le Sueur Inc. and KEVKO Inc. of Fairmont.

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CONNECT Business Magazine

FEATURE Collaboration Connection

Left to right: Ellen Koenigs, Y Barbers; Lisa Phillips, Blue Skye Mercantile; Jeni Bobholz, Circle Inn; Julie Sabin, Rooftop Bar & Grill (coming soon to Belgrade); Laura Doyen, Design & Wine; Sandra Oachs, Spinners; Deb Morin, Neutral Groundz.

Women of Belgrade By Angela Pick There’s a surge of new business owners in downtown “lower” North Mankato, and it’s worth noting that the majority of the new business owners are women. Recently, Connect Business Magazine sat down to talk with seven women who have all owned a business on Belgrade Avenue for five years or less. This dynamic group had plenty to say about the recent revitalization of the area, and what it’s like to be part of this community of women business owners. The most recent addition to the area is Julie Sabin, whose business: The Rooftop Bar & Kitchen is currently under construction at 301 Belgrade Avenue. The Rooftop will be joining several existing bars and restaurants in the area, causing many to speculate about rivalries and competition. Sandra Oachs, who took ownership of Spinners Bar & Grill three years ago, doesn’t 42

November | December 2019

see it that way. “When Julie decided to build her restaurant down here, the newspapers called, and people were saying. ‘How do you feel about this? Are you afraid you’re going to lose business?’ I said, ‘Absolutely not! I think this is the most wonderful thing happening. First of all, she’s a woman business owner, second of all, she is going to bring so many different people down here. It’s going to be a great thing. She’s going to enhance my business.’” Jeni Bobholz agrees. She recently purchased Jeni’s Circle Inn at 232 Belgrade after working there for ten years. “I get asked that, too. It’s completely different though. If anything, they’ll come to the Circle for a couple of drinks and then go there for a great meal. It’s funny how people always go right to the negative. People assume that women business owners are going to be ‘catty’ or ‘out to get each other.’ It’s not like that down here.”

Sabin adds, “I am extremely proud to join such a wonderful, hardworking group of women owners. It’s a great network for all like-minded women, mothers, and wives... we all might be just a little crazy.” Laura Doyen is the owner of Design & Wine at 300 Belgrade Avenue. Doyen has been in business for five years, but has been at this brick-and-mortar location for two years. She often sends her customers to other businesses on Belgrade after workshops at her store. “They’re already parked

“I am extremely proud to join such a wonderful, hardworking group of women owners. It’s a great network for all likeminded women, mothers, and wives...we all might be just a little crazy.” Julie Sabin

here, so I encourage them to stay down here and see what the other businesses have to offer.” Ellen Koenigs has owned Y Barbers and ONATAH Eco Salon at 231 Belgrade for five years. Koenigs notices that “People like to stroll down the sidewalk and have different places to see and shop.” Just over a year ago, Lisa Phillips opened Blue Sky Mercantile at 237 Belgrade Avenue. Initially, she was concerned that her new neighbor, Deb Morin at Neutral Groundz would be angry because she was opening a store right next door, “But it wasn’t like that! What I have works really well with what she has. These ladies have all really helped me.” Morin agrees, “We complement each other very well. I send people over there. I say, ‘have you checked that one out?’ Because I think the whole area needs to continue to support each other. For me, it’s a community. I love what I do, I love the community here, and I love all the business owners and I’m a big advocate for women

“It’s easy to get behind every one of the ladies down here. They are proud of their business and the quality of what they put out there.” Laura Doyen in business. We work hard. Everyone in this room works hard.” Belgrade Avenue is very much like a small town inside a city. Oachs notes, “We have restaurants, we have bars, but we also have a post office, we have a bank, we have a barbershop, we have design, we have shopping, we have coffee—all in one block. We have whatever you need. Isn’t that the coolest thing?” Bobolz adds, “Which is also why people want to live down here. There’s really nowhere else you can walk or bike and get all of those needs met.” Morin notes that North Mankato has a very loyal group of patrons, “You would think that there was something on that bridge that blocks them from going across to Mankato. They love North Mankato.” That community bond extends beyond

the residents and to the business owners themselves. Sabin was drawn to the area because of the walkability and the people that are in the community of this space. “I knew it was driven by women owners who take care of their employees and their guests. People come in to these places because they have great people to take care of them. I already knew that this would be such a great community to have great guests, great staff. All the staff visit each other as well to keep those businesses alive.” There are several levels of collaboration that happen between these women and their businesses. Spinners Bar and Grill serves a sandwich with Balsamic Vinegar from Blue Skye Mercantile. Jeni’s Circle Inn embraces “Church Night” every Wednesday with drink specials and appetizers from Blue Sky Mercantile served on a platter

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November | December 2019

created by Doyen at Design & Wine. They are currently in the planning stages of a Ladies Night in Lower North that will feature specialty shopping, crafting and a social hour. Owning a business is demanding work, but these women somehow make it look easy. All seven of the women are married and in different stages of motherhood. Between them, they have 23 children, 8 grandchildren, and another on the way. When asked how they balance their lives, they replied, “What balance?” By far, the greatest challenge they face is finding enough time in the day to do all the things. Morin finds that she is “busy all the time. I’m always heading in a thousand different directions.” Bobholz adds, “You don’t want to miss out on anything. You want to be there for your kids, you want to be there for your husband, so you’re always going to be lacking in something.” Doyen says that guilt is what bothers her the most. “Sometimes I’m working and don’t get to kiss my kids goodnight. It tears me up sometimes.” Oachs advises, “One thing I learned recently is that you can have it all, but just not all at once. Sometimes we just have to prioritize.” On the flip side of that, owning your business allows for a level of family involvement that might not be possible with a conventional nine-to-five job. Phillips’ daughter works full-time at Blue Sky Mercantile, and she is thrilled to offer that opportunity for her children. Doyen’s children often help out at the shop washing sponges and greeting guests. Koenigs’ five children all help in one way or another at the barbershop and salon. Bobolz loves that her daughter gets to see first-hand how important it is to work hard and build a strong work ethic. Doyen adds, “It’s good for kids to see that you have to work for it, that things aren’t just handed to you.” They all give high praise to their husbands, who, according to Bobolz, all have similar personalities. “They know that our business is our baby, and they tend to stay out of it and let us do our thing.” “It takes a strong man to let a strong woman take the lead,” adds Oachs. The women agree that North Mankato

Mayor Mark Dehen and other city officials have been extremely supportive. “The City has been so easy to work with. Much easier than I expected them to be,” notes Doyen. “If you send an email, you’ll normally get an answer by the end of the day.” Morin adds, “I’ve found that they are all so approachable. I love having who we have in North Mankato.” In addition to the support from the city, the women are members of Business on Belgrade Association, which is a group of community members and business owners who love and want to keep the uniqueness of lower North Mankato and the downtown Belgrade Avenue area alive. This group coordinates local events such as Bier on Belgrade in September, Bells on Belgrade in December, Bookin’ on Belgrade in May, and Blues on Belgrade in July. Bobolz notes that “there are more women now in the Business on Belgrade Association than ever before, and I can tell that the communication has improved so much. Women are generally better communicators than men. When something doesn’t work, we look at ways to improve but we don’t dwell on it. We move on to the next thing. Let’s just get it done.” Morin adds, “I think everyone in this room has had successes and failures, and we’ve learned to pick ourselves up and be strong enough to move on and try something different. We don’t hang on to the negative. I know everyone in this room is strong.” In the future, all of these women hope to see more growth and more expansion of business on Belgrade Avenue. They would welcome clothing boutiques, maybe an antique store, an ice cream shop and even a grocery. “Belgrade has become a destination in and of itself, and the women on Belgrade feel strongly that the area can support more commerce,” says Bobholz. Koenigs adds, “It takes entrepreneurs, it takes people with passion to make it happen. It’s important to find those people and support them.” These seven women are driven and passionate about their work. It’s clear that they value communication and relationships. They are more inclined to cooperate than compete, and together they are finding their collective voice.

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CONNECT Business Magazine

By Lisa Cownie

Photos by Jonathan Smith

Organization, Education & Vision Help Tyler Deike Fulfill His Dreams If there is one take away from the life of Tyler Deike, it’s never, ever settle. “I was almost done with my master’s degree in industrial engineering and I was looking in the future to where I might be in 5, 10...15 years and realized I saw myself in a place where I would not be fulfilling my dreams. Even at the top of the company I was working for, I wouldn’t be fulfilled,” he reflects. “Also, while I was good at it, I was frustrated with corporate strategy and politics. I think the reason some of these large corporations struggle to change with the markets and innovate is the hesitation to make changes, take calculated risks and realize/utilize the potential of their employees. It was shortly after gathering all of those thoughts that I had my ah-ha moment.” That ah-ha moment propelled him from simply having a job, to having the life he wanted. “I have always wanted to be a full-time entrepreneur but I ended up taking the path which many young people are told is the best way to go. Go to college, get a good job, contribute to your 401k and eventually you should have enough money to retire. I am grateful for the opportunities I have had but I couldn’t be held back.” That can-do spirit had been building in him from a very young age. “My dad bought my brother and I a lawn mower, trailer and some of the other essential equipment we needed when we were 14 and 15 and we secured a few mowing accounts from a family friend who was getting out of the business. My dad would drive us around town until we were finally able to drive. We secured several other accounts while in high school and college. I ended up continuing the business by myself during college. By the time I graduated from MSU, we had about 25 accounts. The business grew from a small one-person-with-a-lawnmower business to a three-person crew. Over the next 10 years I grew the company slowly while maintaining a full-time job at Kato Engineering. We now have six employees and have tripled in size in the last year.” Continues

November | December 2019

Blackhawk Fiberwerx owner, Tyler Deike, in front of his fiberglass production line.

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RICKWAY CARPET 507.625.3089 | 1107 Cross St.| North Mankato

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Maverick Lawn Care provides a full scope of lawn care services including, mowing and trimming, fertilizer and weed control as well as shrub trimming, aeration, and landscaping services in the summer time. In winter, they offer snow and ice management services such as plowing, blowing, shoveling, salt and snow removal. “We will continue to expand our service offerings through Maverick Lawn Care this coming year–doing a lot more landscaping and offering things like mosquito spraying.” Maverick Lawn Care was keeping him busy for sure, yet, even combined with a full-time job it just never quite seemed enough. “I remember writing business plans while listening to lectures in college and at night while I was working at Kato Engineering and running the lawn care business. “I have always been brainstorming business and product ideas. I even had a web application built by B507 at Minnesota State to automate some parts of my lawn care business that I could use and also sell to other companies. But I was never quite satisfied.” That brings us back to his ah-ha moment. “I have always been thinking of starting something (a business or designing a product) from scratch when one day in late 2017 it occurred to me. I don’t have to start something from scratch. I have developed skills, learned from my mistakes – by working at a young age, running a small business – and have been working

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Deike says now that he is on this entrepreneurial, business-building track, he may not get off. “I have many things I like about business but some of my favorites are thinking of and developing new products, developing new ways to grow and improve existing product lines and business processes, and looking at new business opportunities and investments. Since I have been a full-time entrepreneur, I have evaluated a half a dozen other companies and looked over a dozen other investments. I think now is one of the best times in history to purchase a business due to the age of the owners and opportunities to rapidly grow and improve their businesses. I can see myself operating and overseeing several more companies. “But eventually I see myself and my wife spending most of our time giving back. I was given the great opportunity to basically grow up and be successful at anything I wanted to do. Everyone doesn’t get that chance. I think finding ways to balance the workforce, finding a way to introduce young people to opportunities outside of just going to college and teaching young people about trades and entrepreneurship are two obvious opportunities for the education system.”

Blackhawk Fiberwerx | St. James

AMERICARE MOBILITY VAN INC.

Three Keys to Success: people, pivot and scale Deike says while there are a myriad of things that lead to success, three in particular are top of mind for him: the people he surrounds himself with, being able to pivot fast, and knowing how to scale depending on the need. First, the people. “My wife has always been behind me and has been the backbone of our family and my support system with whatever new crazy ideas come up next. It wasn’t easy when we were going through the acquisition knowing that we were basically betting our whole lives and everything we have worked for on me running my businesses full time. A wife and house with three kids is a lot to bet on… I have also managed to build good business relationships with bankers, attorneys and mentors along the way. Lastly, having really good people working with you is essential. I have made plenty of mistakes hiring the wrong people and learning the hard way. Finding people that have a different set of skills than your own is essential. “I also have to point out an employee who came over from Kato Engineering with me when I purchased Blackhawk Fiberwerx. He is a great guy and I trust him with my life. It is an amazing feeling having someone around like that, that you can trust. Especially because I am not always able to be at the shop or everywhere I need to be, so he is able to fill in when I am handling issues with the other companies, traveling or evaluating other companies and opportunities.” Next, perfecting the pivot. “When you are running a small manufacturing company, which is basically a startup, you need to make decisions quickly and continue moving forward. You cannot bank on one customer to support your entire business. You need to diversify. In our research and development of new products, making decisions quickly and pivoting has been key. Finally, scaling up or down depending on need for your product. “Satisfying an order that is three times your capacity at the drop of a hat is truly challenging. Also, understanding if and when you have too many resources, being able to scale down is also essential. Make a decision too slowly and you may run out of cash and the rest would be history.”

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CONNECT Business Magazine

Engineering Entrepreneurism in a manufacturing company for many years. There are plenty of business owners exiting their businesses all the time. More than ever probably right now due to baby boomers retiring. I knew I had the skills needed to take over one of these companies, and use the skills I have learned from improving my business and many others as an Industrial Engineer, Quality Engineer and Lean Manufacturing professional.” So he started doing some networking around town, met a business broker and embarked on his quest to buy a business. That’s when information on Blackhawk Industries in St. James landed on his desk. “I was not familiar with fiberglass manufacturing, and ideally I would have liked purchasing a company closer to home, Mankato,” he says. “But one Saturday I said, what the heck, I’ll check it out and visit the facility. I always give things a chance, listen and take meetings. You never know when you might pass something up by being too busy or thinking you are too important or anything like that. I have worked in and toured many manufacturing facilities looking for opportunities for improvement and once I walked into Blackhawk, I knew this was an opportunity of a lifetime.” His experience and education kicked into full gear: with a degree in industrial engineering and the vision to see more than meets the eye.

November | December 2019

“From the disorganization, the paper bookkeeping and 1995 sales and marketing strategy, I could see right through it! Learning To See is one of the first books any lean manufacturing or continuous improvement leader will run across. I didn’t really understand the title right away, but it finally occurred to me that learning to see meant being able to see improvements before they were made. Being able to see through the inefficiencies and the missed opportunities.

Blackhawk Fiberwerx | St. James This covers both manufacturing and business processes,” he says. Seeing the potential, Deike purchased Blackhawk Industries Inc. in June of 2018. One of his first official acts was to change the name to better reflect the direction he wanted to take the company. He changed the name to Blackhawk Fiberwerx LLC. “When I purchased the company we had three types of products: outdoor fire pit bases, crane engine covers and cab backs,” he explains. “We manufactured and sold the fire pit bases to a company in the Twin Cities who then sold them nationally through a network of dealers and retailers. The engine covers were shipped to Terex

Family First Deike and his wife Haley have three children: Bryn, 7; Lennon, 5; and Blair, 2. “I like to spend time with my family traveling to theme parks and to the mountains, hanging out at the lake, going to the kids sporting events, riding motorcycles with the kids and friends and downhill skiing in the winter. I like to get out and play some golf and hunt when I can. Luckily I can take a day off whenever I want so I don’t miss out on family time.”

Crane Company. “The third product is the Cab Back. I had never heard of this product, and I don’t think many people have. It is a niche product where our customer will close off the cab of a cutaway chassis. Cutaway chassis are used as the driving force and chassis for motorhomes, box trucks and ambulances to name a few. “Historically, most of these cab backs would be mounted on an old ambulance chassis. The ambulance up-fitters (truck builder) would take the ambulance body off an old ambulance and reuse it on a new truck chassis, as the fiberglass ambulance bodies will tend to last longer than the truck they were first mounted on. Then, the now empty chassis will be sold off as it will generally have life left. The ambulance up-fitters will purchase the cab back from us or give us a referral. Customers will also find our cab backs online. We have 16 different cab back options and have added additional accessories and features that the previous owner had not offered. “There are many more opportunities for this product as we have found dealing with fleet customers. Selling one or two cab backs to a customer is nice but selling hundreds or thousands to one customer is much better!” Learning new products in an industry he was not familiar with was just one of his challenges after taking over the business. “The biggest challenge this far, has been managing the backlog and then maintaining good velocity in the product development

Adrenaline Junkie “I grew up just south of Mankato in what was called Pigeon Hills (by Benco Electric). It was a small neighborhood in the country where we were able to explore the outdoors riding bikes, motorcycles, snowmobiles and adventure in the wooded areas near our house. I played all kinds of sports growing up as our family was active in the YMCA sports programs, but as I went into high school motocross racing, downhill skiing and watersports were what stuck. I guess you could say I am somewhat of an adrenaline junky… My brother and I are only a year apart so we have been really close our whole lives. My dad would always show us how to work on our dirt bikes, lawnmowers or really anything around the house. We also have a cabin on Duck Lake so we spent the summers out there where we quickly excelled at watersports. I think we were barefoot skiing when we were 9 and 10 years old. Not something every 9 year old has the opportunity, ability or the guts to do… We would take many trips out west to go skiing and snowmobiling as well. Our greatest memories are powder skiing, jumping cliffs and snow cat skiing where we were easily the youngest skiers in the group by 10-15 years.”

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cycle. The faster you can release a product and get it to the market so the market can provide feedback, the better off you will be. This is outlined in one of my favorite books, The Lean Startup. “To elaborate a bit on the challenges, when we took over in June of 2018 we were almost 700 parts behind, and running maybe 50 parts per month. Had we not reacted fast and at least doubled our capacity, it would have taken us over a year to catch up, leaving our customer with little option but to find an additional vendor. So,the first month we took over we made over 150 parts..” The added capacity helped and Deike was able to catch up on orders and start thinking about expansion. “Once we caught up we immediately started to investigate and evaluate new products. We used the logic of, if you had to go to a trade show and walk around for 3 days or exhibit your products, what

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Constantly Learning “Books and podcasts have had a big effect on my life. I listen to 1-2 books a week on my drives to and from St. James. Filling what would otherwise be “dead” time with learning. Some of my favorites are The Lean Startup, Good to Great, and Rich Dad Poor Dad. I have the opinion that there isn’t ever just one thing to read that will change your life and you cannot take everything that you hear or read and apply it literally. It is the ability to sift through the takeaways and apply it to yourself or situations that you are in. Pinpointing and applying the right techniques and thought processes can take you anywhere you want to go!”

November | December 2019

Blackhawk Fiberwerx | St. James

trade shows wouldn’t feel like work? You can find fiberglass or composite materials used in almost every industry. And even if you don’t, where you will find steel, plastic and other materials, composites generally have the edge in many ways. Hence why airplanes and other high-performance products are made from composites.” His early vision for the company proved to be spot on, and his quick actions after taking ownership are already paying off. “We had tripled sales for the first seven months and have maintained steady growth after that. We have huge potential with the new products that are being launched and could see over 10x growth over the next few years.” Now his eyes are focused steady on the future. “We are working on several new products and just released our own brand of outdoor fire pits and tables. We have also been working on a line of power sports accessories which are primarily fiberglass roofs with audio systems. We have a few other

products that are in the pipeline and even have other hopeful entrepreneurs come in and ask us to make parts for them, where we will be a second-tier manufacturer and they will sell the completed products. After the building and process improvements at Blackhawk, we are well under our floor

space capacity and have room to grow another 4-6 times before we will need more shop space. We hope to be building trucks as part of our business at Blackhawk Fiberwerx in the near future.” While happy and certainly busy with Blackhawk, the entrepreneurial wheels in

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his mind kept spinning and he identified a new outlet. “After about a year at Blackhawk, after purchasing and building a few cutaway trucks (installing our cab back and flat beds on cutaway chassis) and paying sales tax on those trucks, looking at how many vehicles I need to buy for my businesses and the costs associated with driving back and forth to St. James, we started to look into a auto dealer’s license. So now we have another business, Blackhawk Motors. “Having a dealer’s license offered several advantages that are not available to everyone, including access to wholesale vehicles that I could purchase for Maverick Lawn Care, and offered me the ability to essentially drive whatever vehicle I want, whenever I want. We have had requests and have been able to buy specific vehicles for family and friends from anywhere in the country and also sell their old vehicles outright or at the auction. As we can see with more and more online vehicle purchase and delivery companies like Carvana, there is an opportunity in the market with the help of technology and the new acceptance of that technology. You can sell vehicles without the huge overhead of a dealership. It is the Amazon of things. You don’t need a large inventory of cars on a lot in a great location to be able to sell them.” Although the distance to St. James was off-putting at first, Deike is glad it was not a deal breaker. “Other than the drive, I love being in St. James. We work with local businesses whenever we can. It is a true small town where you get to know everyone in town and build relationships. There is a good workforce. We are situated right off of highway 60 next to Siem Construction and Olsen Diesel. This works out good when you need a hand with some carpentry work and fixing trucks and equipment. We share services and help each other whenever there is a need.”

THE ESSENTIALS Blackhawk Fiberwerx, LLC 35119 746th Avenue St. James, MN 56081 Phone: 507-375-5544 Web: cabbacks.com 54

November | December 2019

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HOT STARTZ! MANKATO

Graif Clothing It’s been a Mankato retail staple for nine decades, yet it always finds a way to reinvent itself. Graif Clothing has once again changed hands. Marissa Brostrom considers herself fortunate to have landed in such a well established business at such a young age. Having a background in retail she joined Graif Clothing as an employee a few years ago, then purchased the store from Randy Appel and Karissa Baukol in July of 2019. “One day I made a joke with Randy about him selling to me and the conversation led to a meeting and after having a baby in the middle of negotiations we got it done. It was really a very unique arrangement. There were no attorneys or long drawn out issues. It was really just two people that respected one another trying to take Graif to the next level. We all wanted what was best for Graif and Randy and Karissa knew with the growing business it needed a more hands-on ownership and me being here every day, it just felt right.” She says the biggest asset right now is the longevity of the brand in Mankato. “To be in my 20s and own a 94-year-old company is an amazing feeling, also a lot of pressure,” she laughs. “But to think of

all the style changes and economic hurdles that we have gone through is amazing. Being able to offer so much with menswear, ladieswear, wedding services, letter jackets, and in-house tailoring, it’s truly a one stop shop. The reason for it all is we truly care about our customers and we want them to know that! We are only as good as our customer experience and we are fortunate to be a staple in the community.” Brostrom says one of her challenges right now is time management in her new role

as owner. “There are a lot of behind the scenes stuff that I wasn’t doing before. Another challenge has been the risk of introducing new concepts for the store, especially since it falls back on my dollar now. Overall, though, it has been great!” she says. Graif Clothing 900 North Riverfront Drive Phone: 507-345-3000 Web: graifclothing.com

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November | December 2019

To be considered for Hot Startz, tell us about a new business or new professional in the area by emailing editor@connectbiz.com.

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Hilltop Florist With a long history of business and community involvement, Kevin and Deb Newman made their roots in the Mankato community grow even deeper when they purchased Hilltop Florist in August. “One of our goals has been to own our own business,” says Deb Newman. “For the last year we had been exploring different opportunities. When we learned that Hilltop Florist and Greenhouse was for sale – we felt it was the opportunity we were looking for.” So they took the leap and became the fifth family to own Hilltop Florist. “Our goal is to continue to serve the Greater Mankato area in the same manner that the community has become accustom to. We will continue to offer premier flowers and excellent personalized design services for every day events, weddings, and funerals - in addition to offering unique home décor and gifts items. We aim to build on the legacy of this 139-year-old business by staying true to its core but also inserting new products, studio classes, and more,” says Deb. The Newmans are also injecting the business with plenty of philanthropy. “Having served and supported nonprofits throughout our careers – we felt it was

important to do something that could help raise both awareness and financial benefit for area nonprofit organizations,” explains Deb. “The focus of Hope in Bloom will be on nonprofit organizations whose missions are to improve the health and wellness of children, families, and the overall community. Each month, Hilltop Florist will partner with a different nonprofit organization, design a custom

floral arrangement, and donate 20% of the proceeds to the selected organization to support their cause.” Hilltop Florist 885 East Madison Avenue Phone: (507) 387-7908 Web: hilltopflorist.com Facebook: Hilltop Florist and Greenhouse

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Beruck Studios Ashley Aukes is never far from a camera. Photography has been her long-time passion. “I started doing photography when I was 14 years old. I walked in to a local studio and begged the owners to teach me everything they knew and that I’d work for free. They eventually brought me on as a paid employee where I was a second shooter and handled sports and special events. Since then, I’ve worked in various fields that led me to Region Nine Development Commission where I worked for five years as a communications specialist. Photography never left my side, I have always continued to do shoots alongside other things in life.” In summer of 2018, she made it official and turned her passion into a business. “Actually, Beruck Studios was officially started in 1971 by my late grandfather, Andrew Beruck, in Pennsylvania,” says Aukes. “But last year I started my own studio under his business name.” Beruck Studios specializes in headshots and business photography. Two areas, she believes, that are of utmost importance. “The images you use in your marketing materials are important when it comes to making a first impression on customers. High quality photography is an important asset that will contribute to your overall success. A professional headshot is vital in today’s market where people often times look you up online before ever meeting you in person,” she says. “I also feel my business is filling a void in the photography industry locally. We have many great photographers in the area, but few that specialize in strictly headshot and business photography.” Beruck Studios is located in New Ulm, however, Aukes says she’s built the studio in a way that makes it able to be a “pop-up” studio

so she can go on site to almost any location. So far, says Aukes, so good. “I haven’t had to find another job yet, so that is a good sign! My business has taken me into a lot of fun places like the top of buildings, operating rooms and construction sites,” she says. “The support of my community has been outstanding!” Beruck Studios Phone: 507-276-5897 Web: beruckstudios.com Facebook: Beruck Studios

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November | December 2019

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BULLETIN BOARD Local Chamber and Economic Development News

Check Out What’s Happening In Your ! y t i n u m m o C

Albert Lea Nicole Hagen: The Albert Lea EDA is partnering with key stakeholders in the community, including the City of Albert Lea, Freeborn County, the local Chamber and the Convention & Visitors Bureau in an economic development strategic planning process. Boards and staff of the organizations will be participating in a 12-week process to define the future vision for the community and set goals and benchmarks to work towards the long-term plan. We are looking forward to increased collaboration with our partners.

Fairmont Area Chamber Ned Koppen: Fairmont kicks off the holiday season with their 30th annual Glows Festival on November 22th! Come visit Santa and Mrs. Claus when they land at the Fairmont Municipal Airport around 4pm. Experience our extraordinary downtown parade of lights and music, complete with pre and post-parade activities. With over 70 annual entries and thousands of lights, this impressive display of holiday cheer is one you won’t want to miss! Contact the Fairmont Area Chamber of Commerce for more information.

Greater Mankato Growth Lucy Sanford: The 37th Annual Rural Forum, hosted by GreenSeam, is set for December 5. This year’s forum entitled “Navigating Perspectives” will be held from 4 to 9pm at the Mankato Civic Center Ballroom. The reception and dinner event joins key public leaders with a wide range of attendees for the opportunity to have important conversations about the key issues facing the rural economy and potential solutions. Minnesota Governor Tim

City of Janesville Clinton Rogers: The City of Janesville’s EDA recently awarded 22 grants to local businesses under its Storefront Enhancement Program. The Program supports the maintenance and updating of commercial buildings in the City of Janesville. The EDA’s Storefront Enhancement Program has been in place for 4 years. The local non-profit group, Janesville Matters, helps encourage and assist local businesses with their applications. For more information, contact City Administrator Clinton Rogers at (507) 234-5110 or clintonr@janesvillemn.gov.

Walz has been invited to speak. Hear from the Minnesota FFA, key Minnesota Legislators and our keynote speaker, Rick Berman. Visit greenseam.org for details.

Henderson Chamber Jeff Steinborn: Henderson is proud to welcome the Henderson Fitness Center. Located within Henderson’s historical Main Street, it’s open 24/7 and features treadmills, ellipticals, bikes, free weights and machines. The 8th Annual Ladies Night and Toy Drive will take place at the Henderson Event Center and along Main Street on November 1. Shop in Henderson for Small Business Saturday on November 30. The Henderson Area Chamber meets monthly on the last Wednesday at noon.

Le Sueur Chamber Julie Boyland: Le Sueur’s 9th Annual Night Out on the Town is Thursday, November 21 from 4 to 8pm. Enjoy a night out shopping in Le Sueur and take advantage of many discounts and specials. There will also be food samplings, wine tasting, gifts, and many drawings. Downtown Le Sueur’s Christmas on Main is Friday, December 6 from 5 to 8pm. For questions call the Chamber Office at 507-665-2501 or check out our website at lesueurchamber.org.

Lake Crystal Area Chamber Julie Reed: You are invited to the Christmas in Lake Crystal celebration on December 7. Activities include a holiday craft and gift show at the Lake Crystal Area Recreation Center. Remember to bring the little ones and your camera to take some memorable CONNECT Business Magazine

BULLETIN BOARD Local Chamber and Economic Development News

Maple River Chamber Chelsea Germo: The Maple River Chamber of Commerce will be celebrating Small Business Saturday in the cities of Amboy, Good Thunder, Mapleton and Minnesota Lake on Saturday, November 30. In partnership with our local Economic Development Authorities, we encourage you to shop local! The Maple River Chamber will host their annual Snowflake Dazzle event on Wednesday, December 4. The event will feature photos with Santa Claus, cookie decorating with Mrs. Claus, face painting and a lighted parade at 7pm.

pictures with Santa. Don’t forget to enjoy the Christmas cookie bake sale and a bowl of chili from the Mason’s Club. Free daycare while you shop. It’s a small town holiday celebration wishing you all of the best of the season from the Lake Crystal Area Chamber of Commerce.

Madelia Chamber Karla Angus: “Frozen 2” showing at the Madelia Theater is one of our holiday activities during Madelia’s Razzle Dazzle Celebration on November 22 and 23. Join us for the Parade of Lights, Santa, reindeer, sleigh rides, games, holiday open houses, chili, tamales, wine tasting and the baked potato bar! Enjoy shopping at the Holiday Expo and Make–n-Take Workshops. See full schedule at visitmadelia.com or visit our facebook page: Madelia Chamber. #frozeninmadelia.

Marshall EDA Marcia Loeslie: The Marshall Economic Development Authority had an exciting month of August. Suite Liv’n Apartments opened and Ashley HomeStore and Hobby Lobby had their Grand Openings. Avera Marshall completed a 10,540 square foot renovation project to expand their Emergency Care in Marshall. Marshall unveiled a new outdoor basketball court which was completed through the Timberwolves Our Courts, Our Future Program. Commerce Industrial Park continues to be a focus on our community’s economic future. By having this site shovel-ready, increasing our online marketing, and being in an Opportunity Zone, we are well positioned for growth. 60

November | December 2019

Small Business Development Center Julie Nelson: Women’s business ownership, especially among women of color, is the fastest growing segment of our economy. Women are starting small businesses at a higher rate than men, and their businesses are generating jobs and revenues above the national average. Supporting female entrepreneurs unlocks tremendous growth for women and their communities. At the SBDC, we are excited to launch Women Mean Business: training, events and peer networking specifically for women. Watch for upcoming events!

New Ulm Area Chamber Sarah Warmka: The New Ulm Area Chamber of Commerce is pleased to announce Michael Looft has been hired as the new President and CEO. The Chamber welcomes New Ulm Dental Clinic and Lady, Man & a Truck as new chamber members. The shopping season kicks off with the Holiday Shopping Opener, November 8-10, including craft sales and the GnomeMade Market, holiday open houses, and extended shopping hours for many New Ulm retailers. The annual Parade of Lights will take place in historic downtown on Friday, November 29. #ShopNewUlm on Small Business Saturday, November 30.

Nicollet Chamber Alesia Slater: The Nicollet Chamber of Commerce invites you to attend our Hometown Holiday Event on Saturday, November 30 at the Nicollet American Legion. The Legion Auxiliary will host lunch and a craft show from 9 to 3pm. Mr. and Mrs. Claus will make their appearance on the horse and sleigh. For more details check out nicollet.org. We are also celebrating Small Business Saturday. Keep it local, visit our local shops. Wishing you and your family and safe and blessed Holiday Season.

Region Nine Dev. Commission Region Nine Development Commission is a regional, governmental organization representing nine counties, 72 cities, 147 townships, and 32 school districts in South Central Minnesota. As a federally-designated economic development district, Region Nine leverages federal dollars to provide long-range planning, community

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St. James EDA

Springfield Area Chamber

Jamie Scheffer: The EDA has been busy with a lot of great projects in 2019. We recently launched a new revolving loan fund for child care workers to help fund the obtainment of their CDA credentials. This partly came from a need identified by ISD 840 as they expand their child care facility by 35 slots to help address the child care shortage. In other news, the City of St. James has been working diligently with Southwest Minnesota Housing Partnership on creative solutions to stabilize a tax-forfeited building on Main Street. Visit our website for updates on the project.

Denise Gieker: The Springfield Area Chamber of Commerce will be organizing the Holiday Open House on November 13. NEW downtown Christmas decorations will be on display which can be seen by FREE horse drawn carriage rides. While shopping, earn tickets to be entered into our annual Jingle Bell drawing to be held on December 19. A total of $2,500 will be given in chamber bucks to be spent locally. SHOP LOCAL this Holiday Season. Find us on Facebook: Springfield Area Chamber Of Commerce CVB.

development assistance, and a revolving loan fund program to strengthen the regional economy. Learn more at rndc.org.

UM Extension led the planning team that assembled a program featuring twenty breakout sessions in eight downtown venues. Amanda Brinkman, Small Business Revolution, gave the keynote message. Green Forest Recycling is expanding to Waseca from Brainerd with an operation in the former Quad Graphics plant. Recycling paper will be the initial emphasis.

Sleepy Eye Kurk Kramer: We remain cautiously optimistic that there will be some positive activity that follows the announcement that Del Monte would be closing after the corn pack this canning season. The Sleepy Eye Coffee Company is ready to open within the next couple of weeks and the Sleepy Eye Brewing Company will follow, opening early 2020. Both of these new businesses will be located on Main Street in the former PIX Theater Building. This building has been restored completely including the lighted marquee. It is a wonderful addition to the Downtown District.

St. James Area Chamber Joe McCabe: The St. James Chamber, in conjunction with the St James EDA and the South Central Small Business Development Center, will host its final Lunch and Learn for the year on November 20. The annual Winter Carnival will be held December 2-13. Events include the Medallion Hunt, Christmas Open House and Bake Sale, store sales and special hours, Santa and his elves, food vendors, the Lighted Winter Carnival Parade and much more. Business After Hours on December 16 will be a salute to Pete Eggen, Manager of Fleet and Farm as he is retiring at the end of the year.

Waseca EDA

Gary Sandholm: Downtown Waseca was filled by the Connecting Entrepreneurial Communities Conference September 5 and 6.

Waseca Chamber Ann Fitch: The Sinister Forest returns to Maplewood Park in Waseca for Halloween. Four evenings of scary fun await those brave enough to wind through the woods at night. It’s really great fun for those who dare to venture into the darkness. Come to Waseca October 18 and 19 or October 25 and 26. Hours are 6:30 to 10:00pm.The Waseca specialty shops are planning fall promotions. Watch for details about unique retail experiences.

City of Winnebago Jean Anderson: The Church Ministerial Association, in conjunction with the Winnebago Community Club, invites everyone to the First Baptist Church for a turkey dinner on Thanksgiving Day! Free will offering. On Friday, December 6, the Winnebago Businesses invite you to celebrate Frosty Fest. A Holiday Open House and chili/hot dog feed will be held at City Hall. There will be carolers, an appearance by Mr. Frosty and the Hospice Tree Lighting at 6pm. Santa and Mrs. Claus will be hosting children’s cookie decorating at the Winnebago Area Museum. Enjoy ice skating (weather permitting) at the ice rink at City Hall too! The Lutheran Church’s Annual Craft and Bake Sale will be held the morning of Saturday, December 7. CONNECT Business Magazine

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