MN Valley Business

The Definitive Business Journal for the Greater Minnesota River Valley April 2020

Jessica Beyer, president and chief executive officer of Greater Mankato Growth. Photo by Pat Christman

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Businesses work to attract, keep employees Also in this issue • FARRELL’S EXTREME BODY SHAPING OF MANKATO • WHIMSY AND WEATHERED • MAC’S FOR HAIR ON MADISON AVENUE

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BUYER BEWARE

By Sara Wilson With the advent of the Internet have come online services that allow people to create their own last will and testament. These online services provide a template form of a legal document and the person creating the will fills in the information requested to complete the document.

This process is often referred to as a “do it yourself ” option in writing a will. While use of these online services may at the outset appear easy, convenient and less expensive than seeking services from an attorney, there are serious limitations associated with the use of such products of which a person should be aware before using.

Perhaps the most important limitation is that an online form cannot foresee issues specific to you and your family. Face to face interaction with an attorney allows for an attorney to ask questions relevant to your personal situation and address issues you may not have considered in writing your own will.

The experience of an attorney allows them to draw out specific priorities from you and identify issues that may not have been on your radar prior to their meeting with an attorney.

Not all online forms allow you to address personal issues such as providing for a family member with special needs, digital assets or special bequests. Blended families, families with children from a previous relationship, and specific tax issues are all further examples of how an online form may fail to address your personal situation. For better or worse, the law is often not black or white, but contains grey areas that must be tailored to your individual situation. These areas simply cannot be addressed by a computer program.

Online services may contain a form with outdated or improper information related to the laws of the State of Minnesota or your

personal situation. State laws regarding will creation and execution vary and some sites may not take such laws into consideration when preparing a will. Some forms are not specific enough and may therefore fail to convey the wishes of the person drafting the will. And some sites may unintentionally allow for a user to introduce a clause that might contradict other elements of the document or may not make sense legally, leaving your will open to dispute.

Any of these limitations may inadvertently make a will invalid.

So, while you may think that you are saving money now by using an online service, you may be costing your heirs in the long run if the will is not drafted correctly. You and/or your heirs may end up paying more than you bargained for if the will isn’t valid or its validity ends up being contested because it wasn’t written well enough to withstand objections.

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F E A T U R E S April 2020 • Volume 12, Issue 7

10

With an ongoing worker shortage, businesses have to ensure they remain competitive to attract and keep employers and GMG is focusing on helping to draw more workers here.

16

Mother daughter team Denise and Jes Tano say they’ve found the formula that has kept their Whimsy and Weathered business growing: Family ties and a strong work ethic.

18

After joining a Farrell’s Extreme Body Shaping program in another state, Jeremy and Jacque Whiteford were sold on the concept and decided to open one in Mankato.

20

Kevin “Mac” Ayers strives to create a fun and welcoming atmosphere at his Mac’s for Hair business he recently opened on Madison Avenue in Mankato.

MN Valley Business • APRIL 2020 • 3

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APRIL 2020 • VOLUME 12, ISSUE 7

By Joe Spear

PUBLISHER Steve Jameson EXECUTIVE EDITOR Joe Spear ASSOCIATE EDITOR Tim Krohn CONTRIBUTING Tim Krohn WRITERS Kent Thiesse Dan Greenwood Dean Swanson Katie Leibel Katie Rogier PHOTOGRAPHERS Pat Christman Jackson Forderer COVER PHOTO Pat Christman PAGE DESIGNER Christina Sankey ADVERTISING Danny Creel Sales Joan Streit Jordan Greer-Friesz Josh Zimmerman Marianne Carlson Theresa Haefner ADVERTISING Barb Wass ASSISTANT ADVERTISING Sue Hammar DESIGNERS Christina Sankey CIRCULATION Justin Niles DIRECTOR For editorial inquiries, call Tim Krohn at 507-344-6383.

For advertising, call 344-6364, or e-mail advertising@mankatofreepress.com.

MN Valley Business is published by The Free Press Media monthly at 418 South 2nd Street Mankato MN 56001.

■ Local Business memos/ Company news....................................5 ■ Business Commentary........................6 ■ MRCI....................................................8 ■ Business and Industry trends .........22 ■ Retail trends ....................................23 ■ Agriculture Outlook .........................24 ■ Agribusiness trends.........................25 ■ Construction, real estate trends ....26 ■ Gas trends .......................................27 ■ Stocks ..............................................27 ■ Minnesota Business updates...........28 ■ Job trends ........................................28 ■ Schmidt Foundation ........................30 ■ Greater Mankato Growth .................32 ■ Greater Mankato Growth Member Activities ...........................33

From the editor

The business “environment” can be unhealthy, risky

B

y the time you read this, hopefully, the whole coronavirus threat has weakened or been controlled. Or maybe we’ll be in the throes of it.

Let’s hope not.

But it’s worth a discussion about how environmental health of a population can be just as important as economic health. At its simplest: People who are quarantined in their home or other places cannot spend money.

Businesses without employees cannot produce products and earn a profit.

The whole economic system can be shut down. By a virus.

Numerous industries will be hurt by the coronavirus outbreak.

Already, we’ve seen supply lines disrupted from China, where many manufactured goods are made. We’ve seen the travel industry take a big wallop with people canceling flight and trips and businesses halting travel for their employees.

The stock market took its biggest hit since the 2008 financial meltdown, erasing all the gains made since the Trump administration took of fice.

Businesses, government and nonprofits had to spend more to protect their employees from the risk of getting the virus.

The federal government approved $8.3 billion to fight the threats and Minnesota government authorized $21 million in the aftermath of the outbreak.

Hence, let’s hope this can be a lesson to everyone that health care is extremely important to economic prosperity, and we should invest as much as possible to reduce the risks of a viral world that seems to threaten humanity at every turn.

Let’s face it. It’s wrong to cut funding to places like the Centers

4 • APRIL 2020 • MN Valley Business

for Disease Control or the National Institutes of Health.

There are not fewer health threats in the world, there are more. And research and preparedness and programs to prepare for that might seem wasteful in a time of non-crisis are critical when there’s a crisis.

These kinds of systematic health threats should give us pause when we say we have to cut Medicare reimbursement rates to hospitals and clinics. Do we want to pay doctors, nurses and other health professionals less when the threats are greater?

These questions have difficult answers, but they raise new questions that are even more difficult.

What is the role of the physical environment -- climate for instance -- in creating a reaction to the health of the human race?

Does global warming and the resulting changes to the physical environment create a more hospitable environment for super bugs? We’re already seeing global warming have an impact on our forests and the presence of pests and the resulting impacts of things like emerald ash borer.

That kind of result might be good for tree trimming and disposal ser vices, but it’s a seemingly unnatural affront to nature at best or nature gone wild at worst.

These set of circumstances of the environmental cause and effect on business remind me of lessons learned in economics 101.

As we learned the basics of supply and demand curves and the impact of production functions and the marginal rate of return, we were introduced to the concept of externalities.

Those externalities were factors or events or conditions

that didn’t fit into the supply and demand curve, but they had a real impact on the cost of production and the buying and selling of goods.

A few examples: Did the external costs of acid rain from dirty and cheap coal have an economic impact on tourism in the Northeast. Yes, acid rain polluted lakes and rivers and recreational areas and made them unavailable for the business of tourism.

Luckily, wise elected leaders outlawed the emissions that caused acid rain and lakes and rivers once again were open for the tourism industry.

Did raw pollution filling rivers save money for the factories making widget X? Yes, they didn’t have to pay to dispose of their industrial waste and yes, widget X was made cheaper for the consumer.

Again, good government has over history fixed the problem with these externalities.

But others remain a threat as we are seeing with climate change and global warming.

Unfortunately, the kind of costs these externalities impose on business are not always readily apparent as industrial waste in a river.

The impact and effect of climate change may appear more subtle, or at least the explanations are a little more subtle. Scientists mostly report the extreme weather events that show a pattern of causation with climate change, but many remain remarkably unconvinced, explaining it as the “weather as normal.”

The cause of the things like coronavirus may seem as subtle and unconvincing. But the results of coronavirus and its offspring should not seem so opaque.

These kind of things threaten the business environment as we know it, and it’s in our power to do something about it.

Joe Spear is executive editor of Minnesota Valley Business. Contact him at jspear@mankatofreepress.com or 344-6382.

Follow on Twitter @jfspear.

Local Business People/Company News ■

VanRoekel named Board Chair of United Prairie

Former Taylor Corp. and Davisco executive, Melanie VanRoekel, has taken the helm of United Prairie Bank’s board of directors.

VanRoekel is assuming board leadership from Stuart Sneer who is transitioning into retirement.

Sneer has led the bank board, along with its insurance and investment divisions, since 2006 when his father and founder of the company, James Sneer, went into retirement. Sneer will remain on the board.

VanRoekel was CFO at Davisco Foods International and controller at Taylor Corp.

She’s also a recognized advocate for helping those with intellectual and developmental disabilities.

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Atwood honored

Century 21 Atwood was given the “2019 State Award” for being the top company in sales production and closings.

In its inaugural year, the Centur y 21 “State Award” recognizes sales professionals and offices that have gone above and beyond, providing personalized, unique moments to consumers throughout the real estate relationship.

■■■

Gislason ‘Best in Class’

Gislason & Hunter recently earned Best in Class Performance for HR management award from Gallagher Companies. This award is part of a national benchmarking survey completed by 2,307 midsized employers across the United States.

The rankings are based on three key themes: aligning employee philosophy with your organizational and operational priorities; investing in employee growth and overall well-being to boost job performance and employee engagement; and

recognizing the role of strategic healthcare management in engaging and retaining highvalued employees.

“The firm’s partners are keenly aware that our employees are the key to our past and future success,” said Gislason & Hunter Managing Partner and Attorney Andrew Tatge said a significant number of attorneys and staff who have been with the firm for decades.

Arthur J. Gallagher & Co. is a global insurance brokerage, risk management and consulting services firm based in Illinois.

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Lime Valley wins awards

Lime Valley Advertising of Mankato received five Service Industry Advertising Awards for communication excellence. This is the 16th year the SIAA has recognized Lime Valley.

The SIAA is a national competition that honors service industr y providers for their marketing and advertising.

Lime valley won gold for the Midwest Dairy Association, 2018 Annual Report and for the New Ulm Chamber of Commerce, Streetscape Banners.

They won silver for the Martin Luther College, Equipping Christian Witnesses Casebook and a bronze for the Aussie Peppers of MN, logo.

They received a merit award for the Oz Family Dentistry website.

■■■

Old National moves to Eide Bailly

Old National Bank has moved from 101 N Second St. across the street to the Eide Bailley Center, 111 Second St. South, suite 100.

The new facility features an energy efficient building, drivethru, interactive ATM and selfserve safe deposit boxes.

Jim Collins, Minnesota region market president, said the new building will better serve their clients.

MN Valley Business • APRIL 2020 • 5

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Business Commentary

By Dean Swanson

Accurate Revenue Forecasting is Vital for Business Success

I

n a previous column I shared three practical tools that SCORE mentors use with clients to assist them in getting a good handle on financial planning for the business whether it be for a business plan for a new business or just plain managing the business. Each of these three tools depends on revenue forecasting, which is one of the most critical elements of financial planning. In this column I will go one step further to share some forecasting insights from the SCORE website.

Accurate forecasting can help you validate the business case for your new product or service and help you build trust among future investors and partners. Poor forecasting, on the other hand, can sabotage your business before it even gets off the ground. And yet, many startups don’t give their forecast the attention it deserves.

If a startup goes under, it’s most often within the first two years and is usually a direct result of poor financial management and the business running out of capital.

The concept of revenue forecasting is pretty straightforward. Simply put, it’s the calculation of the amount of money a company will receive from sales during a particular period. Most companies determine forecasts for a period of time in the future based on actual sales revenue earned in the past. For a startup, this presents an obvious problem with key variables of the forecasting equation being unknown.

As the owner of the business about to make a large investment of time and money into your new venture, solid, accurate projections are the clearest way to also prove to yourself that your investment will be a profitable one.

Informed projections based on in-depth research, quality data and an understanding of your target market back-up your belief in your product or service and show you’ve done your homework to validate your idea as one that’s worth pursuing.

Giving the revenue forecast its deserved place in a business plan isn’t an easy task. So, why is it that forecasts are a challenge for startups? The first step in the process is learning how to avoid what’s referred to as “confirmation bias.” We usually test to prove that our hunches are correct, which is where things can go wrong in the revenue forecast. It’s your job as an entrepreneur to be aware of this pitfall and find ways to reduce or eliminate confirmation bias.

Once you’ve addressed and mitigated your confirmation bias, there are two primary areas of the plan that you need to lock down before you can accurately project revenue for your first twelve months.

6 • APRIL 2020 • MN Valley Business

Understanding Market Demand

Market demand for a product is the anticipated total volume purchased by a defined customer group in a defined geographical area during a defined period of time in a defined environment. Once you understand market demand, you can estimate your company’s potential share of that market.

Also, consider how you’ll gain market share. Will you steal it from your competitors? Or, will your product or service open up opportunities to create new market share? You’ll want to estimate future market demand for your products or services based on the growth of sales in the industry and changes in market share. A place to begin when accessing market demand for your product or service over a competitor could include asking yourself questions like: n What is the market’s capacity for my product or service? n Who may enter the market after me? n What makes my business valuable and can I clearly communicate the value to customers?

Sales Forecasting

Here’s where things get a bit more challenging.

Accurately predicting future sales is perhaps the most difficult part of the revenue forecasting process. You’ll need to factor in what your management team expects and pair that with the estimated demand for your products or services at your proposed price points.

Think ahead to all of the potential company or market shifts and how those changes may impact sales, such as: n Price changes or promotions n Seasonal or cyclical factors including economic activity n Marketing and branding changes n Erratic events like strikes, fads, or disturbances to the market Consider quantifying your sales forecasts in terms of ranges rather than absolutes. This communicates to a potential lender, venture capital firm and your partners and staff that you’re the type of owner who’s realistic and operating under a biased methodology. It also gives you the freedom to evaluate and adjust your sales and overall revenue projections after your business gets started and build even greater trust with key players along the way.

Now it’s time to consolidate all your research and newly gained insight and document your startup revenue forecast for your first year of business. The tools that I offered in the last column can help you begin the formal process and documentation of calculating everything from start-up expenses to anticipated cost of goods sold, income statements, and

more, as well as run a break-even analysis.

Revenue forecasts are one of the most challenging steps within the business planning process.

Rather than go it alone, talk to a SCORE mentor. A SCORE mentor will guide you through each step and help you develop an accurate forecast for your new business.

Dean Swanson is a volunteer certified SCORE mentor and former SCORE chapter chair, district director, and regional vice president for the north west region.

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Jones Metal Embraces MRCI Mission In More Ways Than One When Sarah Richards, President of Jones Metal, agreed to participate in MRCI’s Whose Line Is It Mankato? event, she didn’t really know what to expect. Improv? On stage? In front of 600 people? But what she did know, was that the mission was worth putting herself out there for. That’s because she’s seen firsthand, how the mission of MRCI… to provide opportunities for individuals with disabilities at home, at work and in the community…impacts lives.

Jones Metal employs an MRCI client. It’s a story that started in July of 2019.

“MRCI contacted me and told me they were working with a high school student who was interested in going to school for welding and wanted to work in a fabrication setting. We agreed to give him a try and he has been with us ever since,” says Val Bentdahl, Human Resources for Jones Metal. “He works as a production assistant removing parts cut from sheet metal, deburring them and palletizing them for the next process.”

The client, Devin Armendariz, is thriving even teaching those around him a thing or two.

April 17, 2020 “He is now in school for welding and still maintaining 30+ 7:30 p.m. hours a week,” explains Bendahl. “I think our employees Mayo Clinic Health System have become a bit more patient and willing to help. He Event Center really does a good job, and isn’t treated any different than To purchase a table, anyone else. The process was easy we really didn’t have to contact Lisa Cownie at make any changes other than be better trainers and that lcownie@mymrci.org was good for us to learn.”

For individual tickets, Since last year’s Whose Line event, Jones Metal has Ticketmaster. employed more MRCI clients and continues to embrace MRCI’s mission. The 2020 Whose Line Is It Mankato? event will be on April 17, 2020. Join us for a fun evening, a great cause and help MRCI fund its mission of supporting individuals with disabilities in our community. .” - Submitted by MRCI

About MRCI

MRCI provides innovative and genuine opportunities for people with disabilities and disadvantages at home, at work and in the community. Annually empowering more than 5,000 individuals across Minnesota, MRCI was established in 1953. For more information, please visit our website at www.mymrci.org.

8 • APRIL 2020 • MN Valley Business

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Julie Rethemeier, Vice President Director of Public Affairs and Advertising at Federated Insurance. Federated currently has 143 employees at their Mankato location.

New normal Businesses deal with worker shortage

By Tim Krohn | Photos by Pat Christman

A

few years ago, when a shortage of workers across all industries became apparent, businesses scrambled to institute new and creative ways to find and keep employees and to beef up pay and benefit packages.

As the reality of a long-term talent shortage has settled in, companies still face challenges but have come to terms with the new normal.

Judy Douglas, group vice president at the Johnson Outdoors Mankato location, said the company has to constantly ensure they’re keeping up.

“The labor market remains very competitive and challenging. We continue to monitor the market in Mankato and continue to make sure we’re competitive,” she said. “That’s been our best strategy — to make sure we’re competitive against similar positions in the area.”

Wisconsin-based Johnson Outdoors has long had a big presence in Mankato. Their original facility on Madison Avenue long centered on Johnson fishing reels, along with assembling Minn Kota trolling motors.

Cover Story

10 • APRIL 2020 • MN Valley Business

They built a new distribution facility in Eastwood Industrial Park and recently added a production facility there as production output has more than doubled in recent years.

Production in Mankato focuses on Minn Kota trolling motors and Cannon Downriggers.

Jessica Beyer, president and CEO of Greater Mankato Growth, said businesses are looking differently at personnel decisions.

“Employers are having to work a little differently on recruitment and keeping people. It’s about the wage, but it’s also about other benefits that come with employment — mentorship and other things. And marketing is huge. The market is tight.”

Julie Rethemeier, director of public affairs with Federated Insurance, said they work hard at training and making sure employees are confident in their jobs and aware of company culture, two keys to retaining workers.

She said they have had good luck in finding employees to populate their 1-year-old office in Mankato. The large national insurance company, based in Owatonna, bought the former Verizon office building on the east side of Mankato.

Federated started with 40 employees in Mankato and up to 143.

Importance of onboarding

Rethemeier said Federated has classes of 12 to 15 new employees with training lasting up to three months.

“Training is our specialty. We tell recruits, you don’t have to have the insurance background, you just need the energy and passion and we’ll train you,” she said.

“The onboarding process is ver y impor tant for any organization. Make sure they feel welcome and understand who Federated is and what the culture is and give them the tools they need to succeed in the role.”

She said they are aiming for about 200 employees in the near future, but they have plenty of room to grow. “It’s a big building so there’s a lot of capacity.”

Top: Johnson Outdoors’ Judy Douglas. Bottom: Scott Stauffer tests out a newly assembled Minn Kota Ulterra trolling motor at Johnson Outdoors’ Mankato plant.

MN Valley Business • APRIL 2020 • 11

Dan Kaduce takes a drink from his mug while working at the Federated Insurance office in Mankato.

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Mankato is a processing office with employees doing customer service phone work, insurance processing and internal work supporting market reps out in the field.

Rethemeier said having several smaller towns in the area to draw employees from helps when

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recruiting.

“The hiring market has been good for us, and the community has really embraced us. We had a walk-in interview day and a couple of hundred people stopped in and we moved forward with some of them.”

A GMG focus

Beyer said a lot of collaborations are growing in the region to work on recruitment and retention efforts.

“GMG is having ongoing discussions with higher ed, the schools and others on navigation on all levels, high school and higher ed and upskilling needs.”

Mankato Area Public Schools has a youth employment acceleration program with includes students getting paid positions at various businesses.

Minnesota State University and South Central College have various partnerships with area industries, working on ongoing employee training tailored to individual businesses.

Beyer said GMG is planning a number of events with various partners addressing talent issues.

On May 18 there is to be a Workforce Solutions Summit led by the Minnesota Department of Employment and Economic Development with GMG and others participating.

She said GMG has a number of ongoing initiatives that aim to

Jessica Beyer

MN Valley Business • APRIL 2020 • 13

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attract, educate and retain employees in the region.

The Young Professionals program is for those ages 21-40.

“It has an educational component once a month and a social once a month, aimed at emerging leadership. Many organizations have their own onboarding specific to their business, but we look at how are we connecting them to the community and linking them to other resources in the region.

“Not all communities are fortunate to have programs like this,” Beyer said.

“If you’re connected not only to your profession and organization but also the community and other professionals, it strengthens that tie to the community and they want to plant roots here.”

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participants go through a full-day session each month to learn leadership skills and enhance their career and organization.

GMG also started a new Community Navigators program.

“It’s more for someone coming from California or wherever and they may not know anything about the community. The business might want them to get more plugged into the community.”

Beyer said people are matched with a mentor based on mutual interests. “It helps them learn what organizations they can get involved in and social connections and all sorts of things. And it helps connect their families as well.”

GMG has also started a new Executive Sounding Board group for executive leaders to have a safe space to resolve business challenges or other issues they are dealing with.

“It’a monthly program — a confidential, trusting environment for executive leaders to have a safe space, to have a sounding

board for strategic decisions and building long-term relationship with their peers.”

Beyer said GMG is also building on marketing efforts to advertise the region and, more importantly, get potential recruits to visit.

She said advertising the region increases the likelihood people will think of the Mankato area as a good place to live; but if they visit, there is a ver y high likelihood they will actually move here.

Finally, Beyer said GMG and businesses are looking for the “hidden workforce” in the community. That can be people with disabilities, people with criminal records, immigrants, and people who retired but are considering coming back into the workforce. MV

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Above: Jes Tano, left, and Denise Tano of Whimsy and Weathered in Old Town. Below: The owners say they only choose items to sell that they would want to have in their own homes.

Formula for success Whimsy and Weathered keeps growing

By Katie Roiger

C

extraordinary. ommon wisdom says that if a small “The magic formula for us is that we are business is still in operation five family, we’re driven, and we have an years after it first opened, the owners amazing work ethic,” are doing something said Denise, mother of right. Based on their Jes. “We believed in store expansion, each other.” extended hours, a Whimsy and community mural, and WHIMSY AND Weathered, a painted a booming side business WEATHERED furniture and home only three years after 523 N. Riverfront Drive, their start, Denise and accessor y store, was Mankato Jes Tano of Mankato’s born of an actual whim.

Whimsy and Weathered After years working in 507-995-1085 are doing more than just corrections, Denise was Whimsy and Weathered the right thing – they’re looking for a new career on Facebook doing something more suited to her

Cover Spotlight

16 • APRIL 2020 • MN Valley Business

interest in design and art and had the idea for a store that was only open a few days per month. She immediately reached out to Jes, who had worked with her throughout high school in Denise’s wedding design business and had bought out the company after finishing her undergraduate’s degree.

“I have zero bookkeeping skills,” Denise laughed. “It’s her business sense that guides the business. I will have these creative ideas, and she’ll always say, ‘Let me do the math for you.’”

The math they chose for their vintage-feel store in Old Town Mankato was a successful equation. When they first created Whimsy, the mother-daughter team intended the store to be open only four days per month over one long weekend. Thanks to increasing demand, they’re now anticipating a switch to eight days over two weekends per month. They’ve also doubled the square footage of their store.

“I never thought we’d expand at this point,” Jes said. “I thought that if we expanded, it would be year seven or we’d be going to a different building.”

The team turned their former storage area in the back of their shop, plus some extra footage leased by their landlord, into a natural extension complete with painted brick walls and much more product. They also installed a fireplace that complements the ever-changing rotation of goods.

“Each time you come in, the experience is different because the layout is different and what we have available is different,” Denise said. The Whimsy team prides itself on the variety and quality of goods they sell.

“We don’t carry anything in the store that we wouldn’t put in our own homes,” Denise added.

Clearly, what the Tano women put in their homes is popular with their customers. The Whimsy team’s home décor picks are fastsellers and led to an unexpected demand for design ser vices.

Patrons began visiting the store with pictures of Whimsy-created designs and asking the Tano team to help them re-create the look in their own living rooms. Now, the Tanos’ in-home design and paint

consulting is a staple of the Whimsy business.

“We got asked a couple times and gave it a go, and with each one we learned a little more,” Jes said. She and her mother visit a client’s home to offer fresh perspective and do a little redesigning. Often this involves bringing a few pieces from the store, but their goal is to use as much of the owners’ original décor as possible.

Another aspect of the Tanos’ home design services is holiday decorating. This year, they received more requests than they could handle, but it’s one of their favorite services.

“Put the tree up, fluff it, put the lights on – Whimsy will do the rest,” Denise explained. “People really enjoy that.”

The Whimsy women’s confidence in taking on more projects stems mainly from their unwavering faith in their capacity for teamwork. Being family helps them understand the other’s perspective.

“People say to us all the time, ‘It must be great to work with family!’” Denise said. “Yes, I’m living the dream, but that doesn’t mean that we don’t argue. The thing that Jes and I are good about is it’s short, quick, and done. Five minutes later, we’re on to the next thing.”

A similar sense of style certainly helps. Jes and Denise both select the items found on their sales floor and have discovered that while the pieces they choose may be different, the overall look is seamless. The mother-daughter team also has a strong understanding of their core values and keep them at the center of what they do.

“When you run a business, I think it’s very important that you

don’t lose your brand and don’t lose your values for a dollar,” Jes said. “To find the balance of that is really (about) making a business where you can continue to do what you love and be successful enough to pay your bills and not lose yourself along the way. That’s really what I think Whimsy is about.”

Whimsy’s focus on their brand and legacy was the driving force behind the Whimsy Wings mural the Tanos commissioned for the side of their building. Visitors to Old Town see two sets of pink wings, one smaller than the other, stretching overhead along the red brick wall. Jes and Denise get a special kick out of seeing pictures of the mural crop up in their followers’ Facebook accounts.

“It was a lot of planning and a lot of saving,” Denise remembered. The Whimsy team reached out to the Twin Rivers Council for the Arts to find a muralist and settled on artist Michael Cimino. From start to finish, the mural took only nine months and became a downtown favorite.

“It was the perfect way for us to let people know where we are, but also give back to the community at the same time,” Jes said.

Positively impacting the community that has given so much to them is of first importance to both of them, especially as they move into their fourth business year.

“It’s such a blessing, the people who come in here who love and support us and believe in our dreams,” Denise said. “What the community has given us is unmeasurable. It’s changed my life.”

Jes feels that the acceptance and support that Whimsy has found in the Mankato area is more than just business success.

It’s also a confirmation that dreams are achievable.

“It actually works,” Jes said.

“Your ideas and your craziness and all those things combined are something you can do not only as a passion but as a business. I love to design and I love to decorate, so the fact that I get to wake up every day and do that for other people – I think that’s my favorite part.”

MV

MN Valley Business • APRIL 2020 • 17

Jacque Whiteford and her husband own Farrell’s Extreme Body Shaping in Mankato.

Focus on transformation Farrell’s hosts 10-week exercise program

By Katie Leibel | Photos by Pat Christman

F

arrell’s Extreme Body Shaping offers some extra and that evening we have a celebration. The most incentive to those who hope to transform transformed person goes home with $1,000,” Whiteford themselves. The most transformed person who said. joins their 10-week program walks But it doesn’t end there. After away with $1,000. students graduate from the 10 The fitness center is known for its week challenge, they are officially 10 week challenge.

FIT members, or Farrell’s Infinite “We start on a Saturday, and we FARRELL’S EXTREME Transformation members. do a fitness assessment. Monday is They have access to special FIT BODY SHAPING the first class,” said Jeremy member only classes, and can 1170 S Riverfront Dr, Mankato Whiteford, part owner with his wife, attempt to win $10,000.

380-9624 Jacque.

Once a year, Farrell’s hosts their fxbmankato.com The program is simple: show up national challenge with the to class and workout for a chance to possibility of winning $10,000. The beat the competition and walk out healthier and $1,000 competition challenges FIT members from across all richer. In class, students practice kickboxing, strength Farrell’s locations to see who has the greatest training with nutrition coaching and heart-rate tracking transformation in 12 months, with one man and one to ensure a good workout and lifestyle to support it. woman winning $10,000 each.

“At the end of the 10 weeks we do a final assessment, Farrell’s doesn’t just encourage people to try it for 18 • APRIL 2020 • MN Valley Business

Profile

Left: Jacque Whiteford leads a class at Farrell’s. Right: Sam Walmsley picks resistance bands from a wall. the chance to win the money.

“We’re a fitness center, but we’re more than just a gym. We work to make positive lifestyle changes. Our goal is to lose fat and gain lean muscle,” Whiteford said.

These positive lifestyle changes include changing mindsets, reducing stress levels and helping people to live longer and happier lives. That starts right away with what Whiteford calls ‘off-scale victories.’

“We celebrate each other’s offscale victories. We don’t like to get on the scale because weight is just a number. It doesn’t tell you a lot about your health,” Whiteford said.

Instead of celebrating a number on a machine, the fitness center encourages people to take note of how they are feeling and the little things such as clothes fitting better or being able to get on the ground and play with your grandchildren.

They are celebrating the things they weren’t necessarily able to do before or that feel better now.

They also encourage positive lifestyle changes but don’t push it too far.

“We’re not an abstinence program. We still like to eat pizza and drink wine, but we’re just smarter about it,” Whiteford said.

They encourage healthier eating, but know that just eating chicken and rice and broccoli would make anyone crazy. Instead they encourage daily healthy

eating habits and reserving your favorite foods for special occasions or the weekends along with staying accountable for your choices.

“We’re all about accountability.

We have personalized coaching for our new students. If our students miss a class, we give them a call. We want them to come. They paid for the class, and we know our program works,” Whiteford said.

Jacque and Jeremy say they are walking proof that the program works. They were once new students at Farrell’s Extreme Body Shaping.

“We were living in Denver, Colorado, and Jacque was going back to school. She said she needed something to do. She said ‘I’m sitting around all day at work and then I’m coming home and sitting and doing homework,’” Whiteford said.

Suddenly, Jacque found herself enrolled in her own 10-week program, and encouraged Jeremy to do the same, but he didn’t have quite the same enthusiasm at first.

“I was kind of hesitant. I was a typical excuse-maker, but the reality is I was scared,” Whiteford said.

Whiteford empathizes with those who get a bit nervous about joining. First, the name can be kind of off-putting. “Farrell’s *Extreme* Body shaping. It almost sounds like boot camp.

As for the whole kickboxing

aspect of it?

“I never saw myself as a kickboxer. Never thought I could do it, but you come in and you see people of all different shapes, sizes and abilities,” Whiteford said. He actually ended up winning the $1000 for his 10 week challenge.

The Whitefords were both from Minnesota originally, and always talked about moving back, but when they were finally about to do it, they realized they were missing something.

“We saw a need here. There are a lot of great options here in Mankato, but there’s nothing like what we provide,” Whiteford said.

“Having an active community that’s cognizant about their health is beneficial for ever yone,” Whiteford said.

“I think people should check out our business because it’s a great chance to be a part of something bigger,” Whiteford said.

According to their website, if you follow all of the Farrell’s 10-week program and there is no improvement in any of your fitness evaluations that are conducted by them upon completion of your 10-Week Challenge, they will pay you $500.

Guests don’t have to wait for the next 10 week challenge to join. They can jump into the classes right away and then are automatically enrolled in the next 10 week challenge. MV

MN Valley Business • APRIL 2020 • 19

Kevin “Mac” Ayers in his newly opened barber shop Macs For Hair on Madison Avenue in Mankato.

Gathering spot Mac’s for Hair aims for welcoming atmosphere

By Katie Rogier Photos by Jackson Forderer

K

evin “Mac” Ayers startup plan for his to keep them busy and entertained until ninth business is simple: Be genuine their turn arrived. and have fun.

Mac’s for Hair is still under construction “I’ve already made my until this summer, but is mark in business so I’m open for business not tr ying to prove meanwhile. Ayers has myself,” Ayers said. “I’m noticed that his customers at that stage where it’s really enjoy seeing the MAC’S FOR HAIR like, let’s enjoy this!” shop take shape, and even 1237 Madison Ave. East, The “have fun” business venture a few suggestions Mankato model is immediately of their own.

507-779-7240 evident at Mac’s for Hair “They get to watch Macs-for-hair.business.site on Madison Avenue, it grow,” said Ayers. “It’s Mac’s for Hair on Facebook Mankato.

When like an organism.” customers first step in the door, they’re The combination of Ayers’ dreams and greeted by a miniature putting green placed patrons’ requests have led to staples such as invitingly near the entrance. the game corner featuring a pool table and a “Some guys get nervous about haircuts,” dart board, an infrared sauna, a stand-up Ayers explained. He’s seen it over and over tanning bed, and a comfortable seating area again: The waiting customers who fidget or in front of a fireplace made from Duluthpace, and he wanted to give them something imported river rocks. Barn doors in the back • APRIL 2020 • MN Valley Business

Feature

20

of the shop will lead to rooms that Ayers rents to hairdresser friends from smaller communities. A corner with Southern Minnesota’s largest selection of men’s hair products and a huge varnishedwood backdrop hung with toolboxes for Ayers and his two barber employees’ hair tools turn Mac’s for Hair from your typical salon into a destination location.

“This is a college town; I want people going back to Hong Kong and telling people ‘Next time you’re in Minnesota, you should stop by this place’” Ayers joked.

Ayers’ unofficial start in cutting men’s hair came when he was 12 years old and he’s been licensed since he was eighteen.

Initially he never meant to make a living from barbering.

“I just fell in love with it,” he said, reminiscing about his first barber shop in Lake Harriet, MN. In that small-town setting, he was a local figure as the only barber for the surrounding area – a role that suited Ayers’ gregarious personality down to the ground.

Ayers has been self-employed ever since 9/11, which marked a drastic change in his outlook on the future.

“I was in shock, and that’s how I handled it,” Ayers said. “I’d just got married, had my first son, and felt like I needed to something for my kid. I didn’t know what was going to happen.”

Ayers first channeled that uncertainty into opening and running a few restaurants, and later his first barber shop.

Originally from Lower North Mankato, Ayers moved back to home specifically to open Mac’s for Hair. He still owns Mac’s Barber Shop in Olivia, MN and intends to keep it open, along with what he calls the World’s Smallest Candy Store.

“I’m going to use that as a tourist attraction to bring people into Renville County because it’s dying so fast,” Ayers said of the Candy Store. He still travels to Olivia every Friday to cut hair and run the businesses.

While his business ventures over the years are best described as diverse and inventive, Ayers kept coming back to barbering as the best fit for his love of and interest in people of all

backgrounds.

“When we left (North Mankato) we ended up on the west side of Saint Paul, and I was surrounded by Hispanics, Puerto Ricans, and Jewish kids that were bussed in from Mendota Heights,” Ayers said. He remembered realizing that he was the outsider among his diverse classmates and enjoyed the opportunity to join their groups.

“I had a lot of sleepovers and friends in all these different cultures that I was exposed to,” Ayers said. “I grew up like that.”

Ayers credits this childhood experience with developing his extraverted personality and making him comfortable with a wide range of customers.

People from all walks of life are going to come here and I can handle every single one of them,” Ayers said. “I know people; that’s a huge thing. Without that experience, I don’t know if I could do this.”

Ayers’ welcoming nature gives his new barbershop an old-school feel, reminiscent of the days when everyone knew their neighbor.

When creating Mac’s for Hair’s slogan and signs, Ayers turned to a fictional neighborhood establishment famous for turning strangers into acquaintances: the bar from the television series Cheers.

“I started watching Cheers and thought ‘I can totally relate to that,’” Ayers laughed. “I’ll have eight or nine people at a time all

trying to talk while I’m cutting hair, and be able to coordinate everybody and still have fun, tell stories and all that. I’ve got a guy here who’s kind of my Norm, but I’ve got to get him talking more.”

Ultimately, Ayers feels that it’s this small-town, open-door atmosphere that will most contribute to making Mac’s for Hair a success. Besides the relaxed, recreational atmosphere, Ayers hopes to give his customers the sense of community and belonging he believes may be lacking in other establishments.

“These days, the old-school barbers are starting to come back, with the shaves and the beards and the tight fades and all that,” Ayers said. “I think it’s the nostalgia of it. The way our country’s going, it’s becoming very plastic and fake, and there’s something so real about that, and younger guys want that connection back in their lives.”

In Ayers’ mind, the only way to provide his customers with this sense of genuineness is to be genuine himself. From the way he designed his shop to the fellow barbers he hires, to the way he interacts with his customers, Ayers hopes that Mac’s for Hair will truly be the place where everybody knows your name.

“I’m a natural at what I do and I love people, and every year I just get more and more and more into it,” Ayers said. “The guys are noticing that I’m different. I’m going to rock this.” MV

Rolland Wright gets a haircut from Mac’s for Hair owner Kevin “Mac” Ayers at the newly opened shop on Madison Avenue in Mankato.

MN Valley Business • APRIL 2020 • 21

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blethenberens.com 22 • APRIL 2020 • MN Valley Business

Energy Biofuel production to slowly grow

The U.S. Energy Information Administration’s projects that U.S. biofuel production will slowly grow through 2050, primarily driven by economic and policy factors.

The projection, which reflects current laws and regulations, suggests biofuels production in 2050 will be 18% higher than 2019 levels.

However, in another scenario with higher global crude oil prices, biofuels such as fuel ethanol and biodiesel are increasingly consumed as substitutes for petroleum products, resulting in 55% growth in biofuels production in 2050 in that case.

In 2019, U.S. biofuels consumption totaled 1.09 million barrels per day and accounted for 7.3% of total motor gasoline, distillate, and jet fuel consumption.

Fuel ethanol is the largest component of U.S. biofuels.

In the scenario ethanol production is expected to slowly decrease between 2019 and 2030, and then it increases toward the end of the projection period.

The projected decline in domestic ethanol-blended gasoline consumption is offset by increasing U.S. ethanol exports.

From 2019 to the end of the projection period, domestic production of biodiesel and other biofuels increases by 30,000 barrels/day (b/d) and 80,000 b/d, respectively.

Although not included in the projections, the biodiesel blender’s tax credit renewed in December 2019, is expected to increase domestic production and net imports of biomass-based diesel.

EIA projects U.S. biofuel production to slowly increase through 2050

Retail/Consumer Spending Vehicle Sales Mankato — Number of vehicles sold - 2018 - 2019 1500

1,219 930

1200 SOURCE: U.S. Energy Information Administration, Annual Energy Outlook 2020

Fuel demand falls

The federal Energy Information Administration expects global petroleum and liquid fuels demand will average 100.3 million barrels per day in the first quarter of 2020. This demand level is 0.9 million barrels per day less than forecast in the January and reflects both the effects of the coronavirus and warmer-than-normal January temperatures across much of the northern hemisphere.

EIA now expects global petroleum and liquid fuels demand will rise by 1.0 million b/d in 2020 rather than the 1.3 million b/d increase predicted earlier.

U.S. crude production up

EIA forecasts U.S. crude oil production will average 13.2 million b/d in 2020, up 1.0 million b/d from 2019, and then rise to 13.6 million b/d in 2021.

Most of the production growth in the forecast occurs in the Permian region of Texas and New Mexico.

Natural gas use steady

EIA expects the share of U.S. utility-scale electricity generation from natural gas-fired power plants will remain relatively steady; it was 37% in 2019, and EIA forecasts it will be 38% in 2020 and 37% in 2021.

Renewables rise

Electricity generation from renewable energy sources will rise from a share of 17% last year to 20% in 2020 and 21% in 2021.

Coal’s forecast share of electricity generation will fall from 24% in 2019 to 21% in both 2020 and 2021.

The nuclear share of generation, which averaged slightly more than 20% in 2019 will be slightly lower than 20% by 2021, consistent with upcoming reactor retirements.

CO2 emissions to fall

After decreasing by 2.3% in 2019, EIA forecasts that energy-related carbon dioxide (CO2) emissions will decrease by 2.7% in 2020 and by 0.5% in 2021.

Declining emissions in 2020 reflect forecast declines in total U.S. energy consumption because of increases in energy efficiency and weather effects, particularly as a result of warmer-than-normal Januar y temperatures.

A forecast return to normal temperatures in 2021 results in a slowing decline in emissions.

900 600 300 0

J

F

M

A

M

J

J

A

S

O

N

D

Source: Sales tax figures, City of Mankato Includes restaurants, bars, telecommunications and general merchandise store sales.

Excludes most clothing, grocery store sales.

Sales tax collections Mankato (In thousands)

- 2018 - 2019

600

$459,114 $501,500

500 400 300 200 100 0

J

F

M

A

M

J

J

A

S

O

N

D

Source: Sales tax figures, City of Mankato

Lodging tax collections Mankato/North Mankato

- 2018 - 2019 $42,501

70000

$48,188

52500 35000 17500 0

J

F

M

A

M

J

J

A

S

O

N

D

Source: City of Mankato

Mankato food and beverage tax - 2018 - 2019 175000 140000

$63,883 $60,700

105000 70000 35000 0

J

F

M

Source: City of Mankato

A

M

J

J

A

S

O

N

D

C. Sankey

MN Valley Business • APRIL 2020 • 23

■

Agricultural Outlook

By Kent Thiesse

W

The importance of farm working capital

e often hear phrases such as “protect your working capital”, or “watch your liquidity”, or “cash is king”, when referring to short-term financial analysis of a farm business. All of these terms generally refer to the “working capital” of a farm business. The level of working capital is very important to the financial health of a farm business, and a significant decline in working capital in a farm operation can lead to a rapid deterioration of the overall financial outlook for the entire business and its owners.

The simple definition of “working capital” is “total current assets” minus “total current liabilities”. While that definition sounds quite simple, getting true and accurate working capital data can be much more complex in many situations. The “current assets” usually include available cash from bank accounts, accounts receivable, grain and livestock inventories, prepaid crop and livestock expenses, hedging account balances, and any other short-term assets. Accounts receivable could include crop insurance or government farm program payments, deferred payments on grain or livestock that has already been sold and delivered, and money owed to a farm for custom or contract work.

The “current liabilities” include all accounts payable, unpaid taxes due, any crop input loans with coops or seed companies, farm operating loan principal balance, and accrued interest on all loans. The current liabilities also include the amount of loan principal payments due in the next 12 months (not the entire principal balance) on all term loans and real estate loans. In the case of grain that has been placed under a 9-month CCC Loan with the Farm Service Agency (FSA), either the entire value of the grain should be listed as an asset and the loan amount as a liability, or just the estimated net value of the grain should be listed as an asset.

The financial ratio that is often used to express the level of working capital is the “current ratio”, which is simply the “current assets” divided by the “current liabilities”. A current ratio of 1.7 or higher in a farm operation is usually considered quite solid, while a current ratio below 1.2 is typically a warning sign of potential financial challenges or cash flow difficulties in the farm operation. If the farm current ratio drops below 1.0, it likely means that there could be difficulty in paying all accounts payable at year-end, as well as repaying the entire principal balance on the farm operating loan for the previous year. In more serious situations, there could also be difficulty in paying all required loan payments on term loans and real estate loans. Ag lenders usually pay close attention to these

24 • APRIL 2020 • MN Valley Business

trends.

Another ratio that many farm financial advisors and ag lenders follow very closely is the level of “working capital to gross revenue” in a farm operation, which more accurately reflects the liquidity needs based on the size of a farm operation. That ratio divides the calculated working capital for the farm operation by the annual gross revenue of the farm business. For example, a farm operation with a calculated working capital of $200,000, and an annual gross revenue of $400,000, would have a ratio of 50 percent, which would be quite strong. However, if a farm operation had a gross revenue $2 million with $200,000 working capital, the ratio would be only 10 percent, which could be a financial concern if not addressed.

A “working capital to gross revenue ratio” of 30 percent or higher for crop farms, and 20 percent or higher for livestock farms, is usually considered to be fairly strong. If the ratio drops below 10 percent, it is usually an indicator of some financial stress in the farm business, which may require some financial restructuring. If the ratio reaches a negative number, the farm business may need more immediate action to address the financial shortfall. If either of these situations occur, it is best for farm operators to consult with their ag lender to explore some workable solutions.

According to USDA Economic Research Service (ERS) data, total farm-level working capital in the United States declined from $165 billion in 2012 to an estimated $52 billion by the start of 2020, a drop of 68 percent in an 8-year period. The ERS data also indicated that the average “working capital to gross revenue” ratio on U.S. farms declined from 36 percent in 2012 to only 12 percent at the beginning of 2020.

The average ratio has been below 20 percent every year since 2015 and dropped below 15 percent in 2019.

Based on actual farm business management data in FINBIN, which is analyzed through the University of Minnesota, approximately half of the farms in FINBIN had a ratio below 20 percent. In addition, approximately 60 percent of that group had negative working capital, with current liabilities exceeding current assets. These statistics are key indicators to some of the financial challenges that currently exist in the farm economy today.

Based on the Farm Business Management (FBM) records for over 1,450 Southern and West Central Minnesota farms, the average “working capital to gross revenue” ratio in 2018 was approximately 23 percent, which is a decline of nearly 7 percent in the 5-year period from 2014 to 2018. In 2018, crop farms had an average ratio just over 30 percent, with most

livestock farms at much lower levels and dairy farms averaging a ratio of only 7.5 percent. The data also showed that farm operations that were in the bottom 20 percent of net income in 2018 had an average ratio of near 4 percent, while farm operations in the top 20 percent of net farm income had an average ratio of over 41 percent. There was very little difference in the average ratio among different sizes of farms that ranged, from 500 acres to over 2,000 acres.

As we enter the 2020 growing season, the level of working capital will likely be a concern for an increasing number of farm operations. This is due large variations in 2019 crop yields and year-end grain inventories, continued lower values for grain inventories, as well as increasing levels of accounts payable and farm operating loans at the end of 2019.

Farm operators in portions of the Upper Midwest that incurred reduced crop yields last year, due to excessive rainfall are especially feeling some added financial stress from the decline in working capital, as compared to a year earlier.

Once a farm operator has identified the need for improvement in working capital in the operation, they should consult with their ag lender and farm business 8 management advisors to develop a workable plan. Some possible ways to improve the working capital in a farm operation include: 6 • Use any extra cash income generated by the farm business to pay accounts payable or to reduce the 4 farm operating line of credit, rather than making extra principal payments on term loans.

2 • Use caution in spending excess cash from the farm operation to purchase capital assets or land, or 0to add J unnecessary F M A M term J loans J Awith S additional O N D annual principal and interest payments.

• Consider refinancing term loans and real estate loans to longer term financing to reduce annual principal and interest payment requirements. Long 8 interest rates are currently quite favorable. term • If100 the farm operating loan is close the maximum 6 principal level, or if the farm operation had 85 carryover farm operating debt from the previous 4 it may also be advisable to refinance some of year, 70 the farm operating debt with longer term financing.

552 • Consider selling any unused or extra farm or 400 personal assets, possibly including a land parcel, J F M A M J J A S O N D to generate some extra cash to be applied as 25 payments J on F the M farm A Moperating J J loan.

A SRemember O N D to account for the tax liability when considering the sale of land or other assets.

Improved crop yields and more consistent grain and livestock prices would certainly help improve 100 working capital for many farm operations; however, it may be 85 necessary to implement some of the strategies that we detailed earlier. Most working capital70shortfalls can be worked out if they are identified early, while there are still some 55 manageable solutions available. A majority of ag lenders 40 and farm business management advisors are well prepared to assist farm families with working capital25strategies J F for M their A Mfarm J operation.

J A S O N D Kent Thiesse is farm management analyst and senior vice president, MinnStar Bank, Lake Crystal.

507-381-7960); kent.thiesse@minnstarbank.com

Agriculture/ Agribusiness Corn prices — southern Minnesota

(dollars per bushel)

— 2019 — 2020

20

8 6

16

$3.67

12

4

8

2 0

$3.27

J

F

M

A

4

M

J

J

A

S

O

N

D

0

J

Source: USDA

Soybean prices — southern Minnesota

(dollars per bushel)

— 2019 — 2020 8 20 100 16 6 85 $8.27 12 470 8 255 $8.03 4 40 0 0 J F M A M J J A S O N D 25 J F M A M J J A S O N D J F M A M J J A S O N D Source: USDA

Iowa-Minnesota hog prices

185 pound carcass, negotiated price, weighted average

— 2019 — 2020

20 100 25 16 85 22 12 $51.22 70 19 8 55 16 4 40 13 0 J F M $46.73 A M 25 10 J F M A M J F M A M Source: USDA

25 22 19 16 13

J J J

Milk prices

J J J

A S O N D A S O N D A S O N D

Minimum prices, class 1 milk Dollars per hundredweight

— 2019 — 2020 25 22

$16.84

19 16 13 10

$16.13 J

F

M

A

M

20 25 16 22 12 19 8 16 4 13 0 J 10

J

J

A

S

O

N

D

Source: USDA. Based on federal milk orders.

Corn and soybean prices are for rail delivery points in Southern Minnesota.

Milk prices are for Upper Midwest points.

C. Sankey

MN Valley Business • APRIL 2020 • 25

10

J

J

Construction/Real Estate Residential building permits Mankato

Commercial building permits Mankato

50000

60000

- 2019 - 2020 (in millions)

- 2019 - 2020 (in millions)

$564,990

40000

$531,173

30000

20000

20000

10000

10000

0

J

F

M

A

M

J

J

A

S

O

N

0

D

Source: City of Mankato

J

Information based on Multiple Listing Service and may not reflect all sales

- 2018 - 2019 (in thousands)

180

M

A

M

J

J

A

S

O

N

D

Median home sale price: Mankato region - 2018 - 2019 (in thousands)

250

300 240

F

Source: City of Mankato

Existing home sales: Mankato region

122

200

87

150

$178,600 $169,900

100

120

50

60

0 J

F

M

A

M

J

J

A

S

O

N

D

Source: Realtors Association of Southern Minnesota

J

F

M

A

M

J

J

A

S

O

N

D

Source: Realtor Association of Southern Minnesota

Interest Rates: 30-year fixed-rate mortgage

Includes single family homes attached and detached, and town homes and condos

Housing starts: Mankato/North Mankato

— 2019 — 2020

- 2019 - 2020

5.5

30

5.0

4.3%

4.5

24 18

4.0

3.4%

2

12

3.5 3.0

$2,164

40000

30000

0

$531,175

50000

0

6 J

F

M

A

M

J

J

A

S

O

Source: Freddie Mac

N

D

0

J

F

M

A

M

J

J

A

S

O

N

D

Source: Cities of Mankato/North Mankato

Johnson Park in New Ulm.

Read us online!

Construction Management General Contracting Design-Build www.webconmankato.com

26 • APRIL 2020 • MN Valley Business

507.387.1667 | 300 St. Andrews Dr. St. 200 | Mankato

Gas Prices 5

Gas prices-Mankato

— 2019 — 2020

54 43 $2.34

32 21 10 0

J

F

M

J

F

M

$2.11

$35.77

-21.6%

Ameriprise

$178.64

$111.06

-37.08%

Best Buy

$90.93

$67.56

-25.7%

Brookfield Property

$18.30

$15.29

-16.4%

Crown Cork & Seal

$78.87

$54.65

-30.7%

S

O

N

D

Consolidated Comm.

$5.29

$5.72

+8.0%

A

M

J

J

A

S

O

N

D

Fastenal

$38.34

$31.52

-17.8%

General Mills

$52.93

$54.89

+3.7%

Itron

$88.32

$67.83

-23.2%

Johnson Outdoors

$73.31

$58.38

-20.4%

3M

$163.80

$145.86

-11.0%

Target

$118.11

$105.82

-10.4%

U.S. Bancorp

$54.81

$36.56

-33.3%

Winland

$1.02

$1.04

+2.0%

Xcel

$69.03

$68.75

-0.4%

— 2019 — 2020

$2.19

M

$45.61

A

32

F

Archer Daniels

J

$2.49

J

Percent change

J

54

10

March 9

M

5

21

Feb. 13

A

Gas prices-Minnesota

43

Stocks of local interest

A

M

J

J

A

S

O

N

0Source: GasBuddy.com J F M A

M

J

J

A

S

O

N

D

C. Sankey

D

C. Sankey

MN Valley Business • APRIL 2020 • 27

Minnesota Business Updates

■

groceries and alcoholic beverages, the Star Tribune reports.

Target also will test a 6,000-square-foot conveniencestore concept, about half the size of its smallest store, while the company also works to further strengthen its assortment of private-label and national brands.

“Because our strategy is working, others are taking note and applying some of our pages to their own playbooks,” he said at Target’s annual investors’ meeting.

Coming off three strong investment years in which Target spent a total of $9 billion in capital expenditures, executives said they will continue a similar pace of spending this year and next on store remodels and new initiatives such as adding robotics to more of its supply chain.

■ New boat line by Old Town Johnson Outdoors has launched a new Old Town Sportsman Line of seven boats.

“The new Old Town Sportsman Line was born from extensive consumer research,” Ryan Lilly, Brand & Product Manager of Johnson Outdoors Watercraft, said in a statement. “Understanding what motivates fresh and saltwater anglers drove us to innovate a lineup of truly amazing products.”

The flagship model in the new line is the all-new Autopilot, a fishing kayak that delivers hands-free fishing. Available in two sizes, the Autopilot uses a fully integrated Minn Kota 45-pound thrust saltwater-safe motors with GPS Spot-Lock virtual anchoring to hold the craft in place.

■ Target’s focus on brick and mortar

■ Brookfield buying malls Just days after making an $81 million bid to save tapped-out retailer Forever 21, company executives at Brookfield Property Partners, owners of River Hills Mall, think the worst of the bankruptcy bloodbath is behind them.

“We had 3.5 million square feet of closures due to bankruptcies,” last year, Brookfield CEO Brian Kingston said on the company’s fourth-quarter earnings call.

“Our expectation is that 2019 was the peak for bankruptcies and 2020 will get a little better.”

Target CEO Brian Cornell told investors that the retailer will continue to focus on stores, where most Americans still shop.

The Minneapolis-based retailer will add new stores in urban areas and near tourist attractions as well as expand its store-pickup options to include fresh

Employment/Unemployment Initial unemployment claims Nine-county Mankato region Major January Industry 2019 2020 Construction Manufacturing Retail Services Total*

412 253 67 268 914

Local non-farm jobs Percent change ‘18-’19

373 268 57 146 844

Construction 126000 126000 Manufacturing Retail 113000 Services 113000 Total*

8,995 2,604 1,349 4,983 17,929

126000

1400 700

100000

J

F

M

A

M

J

J

A

S

Minnesota Local non-farm jobs

D

D

0

150000 100000

2000 1400 1400

50000

0

700 0

J

0

J

200000

4000 2100 2100

700 D

N

3,010 2,992

8000 3500 3500 6000 2800 2800

N

O

- 2018 - 2019

(in thousands)

-19.7% +13.0% -7.8% -10.8% -11.6%

Services consist of administration, educational, health care and social 100000 assistance, food andJ otherF miscellaneous services.

M A M J J A S O 100000 J don’t F equal M total A because M Jsome Jcategories A not S listed.

O N *Categories

28 • APRIL 2020 • MN Valley Business

2100

113000

Percent change ‘18-’19

7,222 2,943 1,242 4,443 15,850

3500 2800

-9.5% +5.9% -14.9% -19.8% -7.7%

Minnesota initial unemployment claims January 2019 2020

130,946 131,613

139000

Services consist of administration, educational, health care and social assistance, food and other miscellaneous services. *Categories don’t equal total because some categories not listed.

Major Industry 139000 139000

- 2018 - 2019

Nine-county Mankato region

J

F

J

F

F M

M

A

M

J

J

A

S

O

N

D

M A A M

M J

J J

J A

A S

S O

O N

N D

D

0

J

F

O

O

Brookfield earlier this year made a bid to purchase Forever 21 for a bargain price of $81 million with partners Simon Property Group and Authentic Brands Group. Brookfield and Simon are two of Forever 21’s largest landlords and unsecured creditors.

Brookfield has meanwhile doubled down on its acquisitions of malls, buying out its partner’s interests in four mall joint-ventures. On the firm’s strategy for malls, Kingston said BPY plans to continue “mallrepositioning and densification in order to unlock value.”

■ State’s exports to China down Even before the coronavirus hit, Minnesota’s exports to China fell. Exports dropped 2% between 2018 and 2019, with a 5 percent drop in exports to Asia driving much of the decline, according to a state report released Monday.

The total exports of $22.2 billion dropped from the $22.7 billion of 2018, with Minnesota dropping from 20th to 21st in its ranking for the amount of exports.

The United States’ exports dropped by 1% in 2019 as well, according to the Minnesota Department of Employment and Economic Development.

“Disruptive 139000 U.S. trade tariffs, foreign countermeasures 139000 and uncertain trade policies impacted trade in 2019,” the report said.

126000 noted that exports to China, one of the The report 126000 top five export markets, dropped 9 percent by state’s $243 million, with exports to China totaling $2.7 113000 billion.

113000

■ ADM results mostly positive Archer-Daniels-Midland Company recently reported its yearly results. The result was positive overall - although revenues of $65 billion were in line with what analysts predicted, ArcherDaniels-Midland surprised by delivering a statutory profit of $2.44 per share, modestly better than expected.

■ 3M ramps up mask production 139000

2100

2100 1400 700

100000

100000 J F

J M

M J

J A

J S

Local number of unemployed

4000 2100 1400 2000

N

D

A O

S N

O D

8000 6000

J F M A M M A M J J M A M J J

J A A

J S S

A S O N O N D O N D

108,919 97,928

150000 100000 50000 0

J

F

50000

0 0 J F JM

J

F M A M AJ FA M

M MJ

J JA

M

A

M

J

J

A

S

O

N

D

J JS

A AO

S N S

O D O

N N

D D

(includes all of Blue Earth and Nicollet Counties) 200000 150000

December

100000

D

0

J

0 F

J M

F M A A M J

M J

J A

2018

2019

2.5% 62,061 1,574

2.6% 61,484 1,625

J S

A O

S N

O D

N

D

Unemployment rates Counties, state, nation County/area

- 2018 - 2019

200000

D

700 2000

Unemployment rate Number of non-farm jobs 50000 50000 Number of unemployed

100000

2000 0 F F

100000

Mankato/North Mankato Metropolitan statistical area

150000

4000

700 0 J 0 J

D 0

200000

5,109 4,661

Minnesota number of unemployed

N

N

- 2018 - 2019

Nine-county Mankato region 8000 3500 6000 2800

4000 1400

Employment/Unemployment

F M A A M J

3500

3M has increased production 2800 of its N95 face masks at its 126000 Aberdeen facility in the face of 2100 higher demand due to the 1400 spread of the COVID-19 113000 outbreak. According to the Centers for Disease Control 700 and Prevention (CDC), the N95 mask is the most 100000 type of the seven types of particulate-filtering 0 common J F M A M J J A S O N D J facepiece respirators, filtering at least 95% of airborne particles.

The company says the facility has the capability and experience to adapt production to demand.

The 3500 Aberdeen plant has more than 650 employees, 8000 has increased production from a five-day schedule 200000 3500 and to 2800 a seven-day schedule, according to the plant manager, 2800 CNBC 6000reports.

150000

Blue Earth Brown Faribault Le Sueur Martin Nicollet Sibley Waseca Watonwan Minneapolis/St. Paul Minnesota U.S.

December 2018

December 2019

2.6% 3.6% 4.2% 3.6% 2.4% 2.4% 6.3% 4.2% 3.9% 2.8% 3.2% 3.7%

2.6% 4.0% 5.2% 3.4% 2.5% 2.5% 4.9% 5.0% 3.8% 3.0% 3.5% 3.4%

Source: Minnesota Department of Employment and Economic Development C. Sankey

MN Valley Business • APRIL 2020 • 29

0

J

Sponsored by the Carl & Verna Schmidt Foundation

Unlock the debtor’s prison of student loans

E

By Liz Weston | NerdWallet

arlier this year, a judge denounced the myth that student loans can’t be erased in bankruptcy court as she excused a Navy veteran from having to pay $221,000 in education debt. Bankruptcy judge Cecelia G. Morris’ decision garnered plenty of headlines, along with speculation that the ruling might make such discharges easier.

The battle isn’t over, though. A few days later, Morris’ ruling was appealed by the Education Credit Management Corporation, a nonprofit company that guarantees and services federal student loans for the U.S. Department of Education.

The reality is that getting student loans erased in bankruptcy, while technically possible, is so hard and expensive that few people try; even fewer succeed.

Without intervention by Congress and a change of heart at the Education Department, struggling borrowers will continue to be trapped in a virtual debtor’s prison: unable to pay what they owe and unable to move on with their lives.

Taxpayer money is being wasted, as well. ECMC has a long history of aggressively opposing student loan discharges, even when there’s little hope of recovering any money. Among other cases, ECMC has notoriously fought bankruptcy relief for a woman diagnosed with pancreatic cancer; a formerly homeless woman with mental illness subsisting on Social Security disability payments; and, in the case of Navy vet Kevin Rosenberg, the subject of Morris’ ruling, a man whose basic living expenses exceeded his income.

Obviously, walking away from student loan debt should never be easy. But getting relief from unpayable education debt should never have become this hard.

That was the consensus of an expert group of bankruptcy judges, lawyers and scholars who studied the issue and made their recommendations public last year. The American Bankruptcy Institute’s Commission on Consumer Bankruptcy suggested changes judges could make to help more borrowers, but real reform will require new laws and a more sensible, costeffective approach by the Education Department.

Among the commission’s recommendations:

Allow private loans to be erased

Federal student loans are backed by taxpayer money, so it makes sense that they’re harder to discharge than credit card debt or medical bills. But Congress extended the same status to private student loans in 2005. Unlike federal student loans, private student loans are underwritten — which means the lenders assess borrowers’ ability to repay, charge interest rates that reflect the risk of default and often require co-signers to guarantee repayment. Shielding

30 • APRIL 2020 • MN Valley Business

private student loans in bankruptcy court may protect lender profits, but it’s hard to make the case that doing so is somehow in the taxpayers’ best interest. The commission recommends Congress change the law to allow private student loans, as well as loans taken out by parents and other relatives for their children, to be more easily erased.

Restore seven-year standard

In 1976, Congress decided that overwhelmed borrowers could get their student loans wiped out in bankruptcy once five years had passed since the first payment was due. Debtors could get relief earlier if repayment represented an “undue hardship.” In 1990, Congress lengthened the waiting period to seven years.

Meanwhile, courts toughened the rules about what “undue hardship” meant — with the understanding that those who couldn’t prove undue hardship could still get the debt wiped out within a few years. In 1998, however, Congress removed the time element entirely.

Now borrowers are held to the strict standards the courts had developed under previous laws, but without the promise of eventual relief.

The commission recommends returning to the seven-year standard, noting that if borrowers were still struggling at that point, their circumstances were unlikely to improve enough to repay a significant portion of their loans. Getting rid of the debt, on the other hand, could allow people to buy homes, start families, launch businesses and otherwise engage in productive activity that contributes to the tax base.

Call off the dogs

The commission decried “costly and inefficient litigation,” noting that the Education Department and ECMC regularly fight discharges regardless of the costs or benefits.

Instead, the commission recommended the department adopt clearly defined rules that would prevent student loan collectors from opposing discharges for people collecting disability benefits from Social Security or Veterans Affairs, or whose incomes were less than 175% of federal poverty levels.

In other cases, collectors would be required to do a cost-benefit analysis so they don’t waste government money.

“That doesn’t mean we’re saying to the department you just ought to wipe out every student loan debt,” says William Houston Brown, a retired bankruptcy judge who co-chaired the commission. “Just don’t spend the money litigating over things that are pointless.” MV

Sponsored by the Carl & Verna Schmidt Foundation

Credit card loyalty is not a virtue

By Gregory Karp | NerdWallet

L

oyalty is often a good thing, but not in a relationship with your credit card. It’s often better to be like the “distracted boyfriend” from the internet meme and use your wandering eye to see if you can do better.

The credit card market is bubbling with useful and rewarding offers for many kinds of consumers and lifestyles. Yet, many Americans have the wrong card, and their loyalty is hurting them financially.

At least 1 in 5 credit card customers are carrying the wrong card, usually because fees or rewards are misaligned with their purchasing habits, J.D. Power has said in its annual U.S. Credit Card Satisfaction Study.

They’re in a dysfunctional relationship with their credit card, and it’s potentially costing them hundreds of dollars.

Reason to dump it

Changing circumstances can sour a love affair, even with a credit card.

Sometimes the card changes for the worse, with a higher annual fee or slashed benefits, for example.

Sometimes the market changes, and the old standby doesn’t cut it anymore — 1% cash back is so 2013. And sometimes “it’s not you, it’s me.”

The card is the same, but your needs and spending habits have evolved since you first hooked up. You’ve simply grown apart.

So, embrace credit card infidelity if you can score a better deal that either saves money — with a lower interest rate or long 0% period — or makes money with better rewards, whether that’s cash back, points or airline miles.

For example, if you charge $1,500 a month on your card, you’ll earn $540 more from a 2% cash back card than a 1% card over just three years.

Granted, some people shouldn’t have a credit card at all because it encourages them to get into debt — they just aren’t built for that type of commitment. But if you use cards properly, you’ll be able to find a match that will complete you financially.

Break up tip

If you want out of a toxic relationship, canceling your card usually isn’t the best way to do it. It’s better to ghost it.

With a credit card, that means cutting everyday ties

with the card, maybe sticking it in a sock drawer and using it a few times a year. Why? The card account is part of your long credit history, which can help your credit rating. And keeping a lot of credit open, while using little of it, helps your credit utilization ratio, another key factor in your credit scores. Using the card a few times a year means the issuer is less likely to cancel the account for inactivity.

Granted, tenure with your issuer might mean you have leverage to talk things out, especially if you want a lower interest rate or a higher credit limit.

Those are relationship issues you c a n overcome. You might even be able to swap partners, with an upgrade to a more lucrative card within that issuer’s card family or a downgrade to a card with no annual fee.

But if you can’t downgrade to avoid an annual fee, sometimes that financial baggage just isn’t worth it anymore. Consider closing the account and making a clean break, even if it will ding your credit.

The relationship you deser ve

Before swiping right on a new credit card, think about what you really want out of a new relationship. You don’t want to fall for a rebound card that flatters you with blingy names — gold, platinum, diamond — until you’re certain it has the long-term qualities you need.

Be wooed by things that matter. If you’ll transfer debt, you want a lengthy 0% period. If you’ll travel the world, you want to be rewarded for travel spending and not be charged a fee for foreign transactions.

Besides paying attention to advertising from card issuers, you can also read credit card reviews and use interactive online tools that help you find your newest wallet partner.

And you might try a love triangle of sorts: using two cards in tandem to find chemistry. A flashier one for outsize rewards on some spending — like 5% back on gas or groceries — and a reliable one for all other spending, preferably at least 1.5% back.

There are plenty of fish in the sea and credit cards on the market. By breaking fidelity with your credit card, you might ultimately be more loyal to yourself.

MV

MN Valley Business • APRIL 2020 • 31

The mission of the Greater Mankato Growth Ambassadors is to be the greeting arm of Greater Mankato Growth to promote the community and encourage expansion of established businesses and the development of new businesses in Greater Mankato.

Each month the Cavaliers make visits to new members of Greater Mankato Growth. Cavaliers are also the friendly greeters at Business After Hours events held every month. They help new Greater Mankato Growth members feel welcome and help introduce them to other business professionals at these events.

AMBASSADOR VISIT

NEW BUSINESS

Northern Energy Homes 1750 Bassett Drive, Mankato

Caravel Austism Health 1720 Bassett Drive, Mankato

20TH ANNIVERSARY

REMODEL & EXPANSION

Cambria 1850 Adams Street, Suite 420, Mankato

Southern Minnesota Periodontics & Dental Implants | 99 Navaho Ave #102, Mankato

APX Construction Group apxconstructiongroup.com

Evenson Concrete Systems evensonconcrete.com

Full Sail Commercial Real Estate kwcmidwest.com

Marco's Pizza www.marcos.com

RETAIL OPPORTUNITIES Greater Mankato is a destination for retail shopping in southern Minnesota. Our 6,800 square-mile retail trade area is bigger than most regions because of where Mankato is located. We know consumers come from across southern Minnesota and northern Iowa to shop here. Visit greatermankato.com/retail to watch our video about retail success on the hilltop in Mankato and to learn more about the opportunities for businesses in the area.

32 • APRIL 2020 • MN Valley Business

2020

2020 SPONSOR:

4 - 6 PM

Eide Bailly

JAN 7

111 South Second Street, Suite 300, Mankato

Loyola Catholic School

FEB 4

WHY JOIN * CENTURY 21 Atwood

19304 State Highway 22, Mankato

GREATER MANKATO GROWTH? Mayo Clinic Health System

APX Construction Group

OCT 6

United Prairie Bank

Chankaska Creek Ranch & Winery

NOV 3

Mankato Ford

1020 Innovation Lane, Mankato

MAY 5

Terrace View Golf Course

SEPT 1

209 South Second Street, Suite 200, Mankato

APR 7

151 St. Andrews Court, Suite 400, Mankato

AUG 4

145 Good Counsel Drive, Mankato

MAR 3

Connect Real Estate Group

JUL 7

1179 East Pearl Street, Kasota

EXPOSURE

1025 Marsh Street, Mankato

10 Firestone Drive, Suite 100, Mankato 1935 Madison Avenue, Mankato

Landline, Mankato Regional Airport Store It MN DEC 1 JUN 2 Build your Brand; 3030 North Airport Road, Mankato 2015 Basset Drive, Mankato grow your business.

Stand out and get It’s not just st WHO WHO you ou noticed! know, it’s who knows k February 2020 Business After Hours hosted by Loyola Catholic YOU. Networking IS Powerful.

NETWORKING TW WORKING ORKING

BE IN THE KNOW

LEARNING

Gain access cces to Member Exclusive Content to help grow your business.

School:

MEMBER EXCLUSIVE BENEFITS

Receive our member only emails making you the first to know the latest news.

TALENT REFERRALS We only refer member RETENTION NOTE: Calendar magnets are available at the check in table at each Business After Hours event and they are available at our office businesses. Word of mouth at 3 Civic Center Plaza, Suite 100. Also, a downloadable version is available at greatermankato.com/business-after-hours.

Keep your employees and direct referrals come

engaged and retained with

from being a valuedto get together with one Business After Hours gives levels an opportunity access torepresentatives our member from onlyGreater Mankato Growth member businesses at all member of GMG. another to exchange ideas and learn about each other’s businesses. greatermankato.com/events events and programs.

SHAPE YOUR CREDIBILITY Raise your reputation by COMMUNITY Save the dates for live music, local belonging.

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Your investment helps us continue to build the best environment for your business and its employees.

that businesses who belong to a chamber of commerce are more successful.

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11 am - 1 pm at Civic Center Plaza June 4 June 11 June 18 June 25

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MN Valley Business • APRIL 2020 • 33 greatermankato.com/join

Thank you to all who attended the Greater Mankato Growth. Inc.

Annual Meeting

Thank you again to our sponsors!

Presenting Sponsors

Speaker Sponsor

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34 • APRIL 2020 • MN Valley Business

Our Community Needs YOU to Fill Out the 2020 Census!

WHY IS THE CENSUS SO IMPORTANT?

by Ryan Vesey - Economic Development Specialist at Greater Mankato Growth

R

esponding to the Census is important for reasons other than the fact that it is required by federal law. Here are some key reasons it's important for our region:

WHY JOIN

Minnesota is at risk to lose a seat in the US House of Representatives. The primary and originally EXPOSURE intended purpose of the decennial census is the Build your Brand; appropriation of representation in the US House of grow your business.

Representatives. While Minnesota’s Stand aboveout average and get population growth would apparentlynoticed! allow us to keep our congressional seats, we are actually growing slower than some of the fastest growing states.

This means that current estimates put us between ~6,700-22,000 people shy of the mark in order to LEARNING avoid losing our first congressional seat since 1963.

Coming as close we can to a complete count Gainas access cces to Member Exclusive to help may be the only way toContent maintain our current level of grow your business. representation in Congress.

Go to www.2020census.gov GREATER MANKATO Program, which is funded by the US Department of GROWTH? Agriculture’s Summer Food Service Program. It is

estimated that roughly 1,000,000 children between the ages of 0-4 (4.6% of the total population that age) NETWORKING TW WORKING were notORKING counted in the 2010 Census. Achieving accurate count It’sannot just st WHO WHO you ou of our 0-4 year olds could be imperative know, it’s whotoknows k ensuring that the school district receives adequate YOU. Networking IS funding to continue this program.

Powerful.

Census data is important BEwhen IN businesses are making decisions. When businesses are looking THE KNOW to expand to the area, Greater Mankato Growth is frequently a firstReceive stop where they can get the data our member only they need to make an informed decision.

Existing emails making you the first to businesses alsoknow comethe to latest us fornews. data to make decisions regarding growth, wages, and to learn about the regional labor shed. While many of Greater Mankato Growth’s REFERRALS resources don’t come directly from the US Census, virtually all of them start with only refer memberanalysis and/or US Census Data,We and use statistical businesses. Word of mouth original research to extrapolate from there.

MEMBER US Census data is a key factor used when EXCLUSIVE budgeting federal programs. US Census data is TALENT also used for the distribution & budgeting of federal BENEFITS funding. One RETENTION example of a federally funded program Keep your employees impacting Mankato would be the Summer Lunch engaged and retained with access to our member only events and programs.

and direct referrals come from being a valued member of GMG.

JUST RELEASED...

SHAPE YOUR CREDIBILITY our 2019 Annual Report!

COMMUNITY

Your investment helps us continue to build the best environment for your business and its employees.

Read more articles like the one above on our blog!

Raise your reputation by belonging. Research shows that businesses who belong to a chamber of commerce are more successful.

greatermankatoblog.com Blog posts are written by staff and our member businesses, greatermankato.com/join April 2018 on topics ranging from business insights, economic development, public affairs, topical issues and more!

greatermankato.com/publications MN Valley Business • APRIL 2020 • 35 greatermankato.com/join

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Student Business Competition

B

ig Ideas is a premier event for Minnesota State University, Mankato, College of Business and for the Center for Innovation & Entrepreneurship attracting over 200 attendees. The mission is to provide a platform to support, celebrate and promote student entrepreneurs and their venture ideas. The competition is open to individuals or teams of current Minnesota State Mankato students from any discipline and graduates within two years of graduation.

Winners compete for $15,000 in prize money generously donated by Lloyd Companies, Cranky Ape, All American Foods and BankVista.

The Big Ideas Challenge is a vibrant event with fascinating presentations and the thrill of awards at the end, but the best outcome is for all of the finalists to develop their ideas and their skills as inventors, business people and professionals. Come be a part of this exciting day!

Join us on April 14, 2020 The day begins with a Student Pop Up Store followed by a main stage event featuring five to seven teams that interactively present their big ideas. Audience members are given the opportunity to vote for their favorite idea and the team with the most votes wins the $2000 People’s Choice Award. A panel of distinguished judges score the teams and awards an additional $13,000 in prizes.

The final teams, that will present on April 14, were selected through a blind process and are composed of students from all over the University. While they may be studying different subjects, they all have one thing in common – they are go-getters and innovators that we would hope to keep in our region. After the event, there is an opportunity for the audience to meet and greet all of the teams.

April 14, 2020 Student Pop-up Store 11:30am –1:45pm Mav-Ave, Centennial Student Union Big Ideas Challenge Presentations 2:00pm – 4:30pm Ostrander Auditorium, Centennial Student Union Open to the Public Free Admission RSVP at cob.mnsu.edu/bicrsvp

Follow the CIE

An Affirmative Action/Equal Opportunity University. This document is available in alternative format to individuals with disabilities by calling the College of Business at 507-389-5420 (V), 800-627-3529 or 711 (MRS/TTY). BUSC594AD_02-2020

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EARLY DETECTION SAVES LIVES.

Your birthday is a great reminder to celebrate good health by scheduling a mammogram. Our physicians and the American Cancer Society recommend women have an annual breast screening beginning at age 40. Call 507-246-1996 to schedule an appointment.

mayoclinichealthsystem.org

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