June 2024 Elevate Magazine | Rapid City South Dakota

JENNA CARDA

Cover photo by Sydney Riendeau

CONTINUOUS GROWTH & IMPROVEMENT

I once heard a story about a guy buying a business based on nothing more than a beer, a red marker, and a napkin. He apparently missed the memo about due diligence, independent third-party business valuation, and detailed 5–7-year pro-formas with a full business plan. And he made the business work anyway.

But that’s the power of buying into a good idea. It galvanizes, energizes, and makes people feel connected to something larger than themselves. It drives individuals to risk everything—sometimes even putting up their mortgage or their 401k as collateral—just for the satisfaction of taking a good idea and making it better.

It’s really one of the remarkable aspects of America’s free-market system. It rewards innovation and hard work, and through an almost invisible hand, nurtures those ideas, allowing them to grow and provide communities with jobs, wages, and the taxes that form the foundation of our infrastructure—roads, water, sewer systems, and air service. It also rewards those who invest in these great ideas, fostering a cycle of continuous improvement and growth.

Welcome to this issue of Elevate, where we’re investing in some good ideas too. This issue is all about the people who have bought businesses in the Rapid City area and are trying to take them to the next level. We’ve got a little bit of everything here—ice cream, bagels, marketing, and cool rides. What unites these stories isn’t a product, but an entrepreneur with passion for building a business and building it better. In these pages, you’ll find stories of resilience and creativity. And for everyone with a napkin and a dream, these stories will inspire you to take it to the next level in your own life.

Stay safe and God-speed.

Tom Johnson, President & CEO

Elevate is a monthly publication produced by Elevate Rapid City. It is the premier business magazine for the Black Hills region telling the stories that make our area unique and vibrant.

PO Box 747, Rapid City, SD 57709 605.343.1744 elevaterapidcity.com

PRESIDENT & CEO

Tom Johnson

SENIOR COMMUNITY DEVELOPMENT & PARTNERSHIPS

DIRECTOR

Taylor Davis

SENIOR MARKETING & COMMUNICATIONS DIRE CTOR

Shiloh Francis

SENIOR ECONOMIC DEVELOPMENT DIRECTOR

Lori Frederick

SENIOR PUBLIC POLICY DIRECTOR

Garth Wadsworth

OPERATIONS DIRECTOR

Liz Highland

EVENTS & MARKETING DIRECTOR

Rachel Nelson

WORKFORCE & EQUITY DIRECTOR

Reese Niu

HOUSING & COMMUNITY DEVELOPMENT MANAGER

Laura Jones

EMPLOYER ENGAGEMENT MANAGER

Alyssa Larkey

INNOVATION & ENTREPRENEURSHIP MANAGER

Dillon Matuska

ECOSYSTEM SUPPORT & PROPERTY MANAGER

Loni Reichert

BUSINESS DEVELOPMENT MANAGER

Kallie Ruland

INVESTOR RELATIONS MANAGER

Jason Wittenberg

DIGITAL CONTENT MANAGER

Sydney Riendeau

EVENTS & MARKETING COORDINATOR

Maddie Bazala

EXECUTIVE

ADMINISTRATIVE ASSISTANT

Ashley Simonson

RESEARCH & DATA COORDINATOR

Karissa Ellis

DESIGN AND LAYOUT

Bailey Sadowsky

Shadow Sky Creative Co.

RAPID CITY, SOUTH DAKOTA

ECONOMIC INDICATORS

MARCH

events

JUNE 1

Black Hills Pride Parade Memorial Park bhcfe.org

JUNE 1

Fruhlingsfest Main Street Square mainstreetsquare.org

JUNE 1

National Trails Days Guided Hikes Black Hills National Forest

JUNE 1

Rapid City Marshals vs Oregon The Monument themonument.live/events

JUNE 1

Crazy Horse Memorial Volksmarch Crazy Horse crazyhorsememorial.org

JUNE 1 & 2

Mickelson Trail Marathon Deadwood deadwoodmickelsontrailmarathon.com

JUNE 4

Family Food Truck Night Canyon Lake Park

JUNE 6

Splash Patio - Wicked Six Main Street Square mainstreetsquare.org

JUNE 6

Summer Nights - David Graham & the Eskimo Brothers Downtown Rapid City mainstreetsquare.org

JUNE 7 & 8

Black Hills Beatdown Demolition Derby Central States Fair & Rodeo centralstatesfair.com

JUNE 7 & 8

Deadwood PBR Deadwood deadwood.com

JUNE 8

Skillet - Day of Destiny Tour The Monument themonument.live/events

JUNE 9-23

The Play That Goes Wrong Black Hills Playhouse blackhillsplayhouse.com

JUNE 11

Family Food Truck Night Canyon Lake Park

JUNE 13

Splash Patio - High Rise Main Street Square mainstreetsquare.org

JUNE 13

Summer Nights - Dan Brekke Downtown Rapid City mainstreetsquare.org

JUNE 14-15

JuneFest 2024 Bandshell Memorial Park

JUNE 14-16

Northwest Barrel Racing Association Finals Central States Fair & Rodeo centralstatesfair.com/events

JUNE 15

Find Your Park Festival Storybook Island

JUNE 15

Kids’ Carnival Main Street Square mainstreetsquare.org

JUNE 15-16

Black Hills Renaissance Festival Recreational Springs Resort blackhillsrenfest.com

JUNE 15-16

West Boulevard Summer Festival Wilson Park westblvdrc.com

JUNE 19

National Park Free Entrance Day nps.gov/planyourvisit

JUNE 20

Splash Patio - Wilt Brothers Band Main Street Square mainstreetsquare.org

JUNE 20

Summer Nights - Flannel Downtown Rapid City mainstreetsquare.org

JUNE 22

Rapid City Marshals vs Washington The Monument themonument.live/events

JUNE 26

Special Day of Remembrance Crazy Horse crazyhorsememorial.org

JUNE 27

Splash Patio - Neon City Main Street Square mainstreetsquare.org

JUNE 27

Summer Nights - Jessie G Downtown Rapid City mainstreetsquare.org

JUNE 28 - 29

Monsters of Destruction Deadwood monstersofdestruction.com

JUNE 29 - 30

Native POP - People of the Plains Main Street Square mainstreetsquare.org

JUNE 30

Disney’s The Little Mermaid Black Hills Playhouse blackhillsplayhouse.com

generations

of business

Pantoe Family chases growth with

car industry Acquisitions in Rapid City

Creating a company with staying power, especially for four generations, is not possible without both consistency and chasing growth. In the last decade, Liberty Superstores has not only stayed, but more than doubled its presence in Rapid City and the region.

The most recent series of expansions began in 2016. After acquiring their current Jeep/Chrysler store at the southwest corner of Omaha and Cambell Streets in 1999, the Patnoes had their eyes on the lot across the street. They spoke frequently with Eddie Rypkema, waiting for when he would be ready to sell Dodgetown.

STORY & PHOTOS BY SHILOH FRANCIS

"That’s our high-level formula: get really good people, have a great selection so that when people come into any of our stores, they have a very easy and simple transaction."

- Max Patnoe

Dodge & Ram (605) 343-2696

volkswagen & mitsubishi (888) 450-6913

Chevrolet (605) 347-2566

Hyundai & Mazda (666) 751-6009

chrysler, Jeep, & fiat (877) 268-3228

The opportunity for the Hyundai property (404 Cambell Street) across the way presented itself, and knowing Eddie wasn't ready, Liberty took steps to acquire the building. Low-and-behold, about two months later, Eddie had called to say “he was ready.”

“Timing is never great with how these things come together,” laughed Max Patnoe, fourthgeneration owner and General Manager of Liberty Superstores.

Not wanting to give up the opportunity, they looked into what it would take to get both.

“It requires good relationships,” he added. “You need a whole team from lenders to accountants and attorneys. We thought we couldn’t probably do both at the same

time, but we had some lenders that stepped up and helped us make it happen.”

Expanding, acquiring, and buying a business is one thing. But there is also an art, or magic, to taking care of the people in those businesses, too. Something that Liberty knows well as evidenced by the number of people with more than 20 years tenure.

Much of the success with the recent expansions has been finding businesses that already align with the same shared values.

“It’s like merging two families,” said Max. “Dodgetown had been in the Rypkema family more than 50 years and Hersruds had the Chevy store for 105 years. So I think when they were ready to sell, they wanted to make sure

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all their employees and customers have that same family atmosphere, same family culture. At the end of the day it's treating customers well and taking care of them.”

This is also why, when they launch the new store, Max said they put a lot of focus on integrating the two teams together – moving some existing Liberty team members to the new store with existing staff so they can learn from one another.

And while for many, these deals look like they happened overnight, it’s anything but. “It requires a lot of patience,” Max advises anyone looking to buy another business.

“It’s months of conversations, and meetings before anything ever even gets on paper. And then it’s attorneys hashing out the details.”

But, Max would also remind people, it’s more than a price tag and tangible business. “There are all the intangibles, and emotional stuff that go with it. From the buyer's perspective, taking on a lot more responsibility and debt, a lot of times. From the seller's perspective, it seems like whether it's going into retirement or their identity, there's a lot more emotion that plays into it other than the numbers.”

With three expansions under his belt – Hyundai, Dodgetown, and Hersruds of Sturgis – it’s safe to say Max is as prepared as he can be for the latest addition. In June 2024 they will be opening a used car store on the northeast corner of Omaha and Cambell Streets, where Kopren Motors once stood.

And whether you’re walking into this new store, or one of the other five, there is something you can always expect: Simple, worry-free car buying. “We try to make that happen at any of our stores; simple and easy to do business,” Max explained. “That’s our high-level formula: get really good people, have a great selection so that when people come into any of our stores, they have a very easy and simple transaction.”

Who’s to say what’s to come with the next generation or business expansion? One thing is certain: Max Patnoe is doing what we can to be ‘your dealer, for the people.’ •

brand sa me new owner brand new owner

ERIC HAWRONSKY TAKES THE LEGENDARY BLACK HILLS BAGELS TO THE NEXT LEVEL

STORY BY JENNA CARDA // PHOTOS BY SYDNEY RIENDEAU

When an opportunity presents itself, taking a chance to make a change can yield high reward. Getting another opportunity to dive into the food service industry wasn’t something Eric Hawronsky was expecting, but it is one he is grateful for.

Eric grew up in North Dakota and after working for his dad assisting with book sales at the public schools, he attended college in Nebraska and studied business administration and sales. During his time in the metropol- itan area of Lincoln, Eric was introduced to gourmet bagels. It was a new favorite after the first bite.

“I had never worked in a restaurant before starting my business,” said Eric. “And I quickly learned how much work went into starting up a new business.”

Soon after opening, Eric gained a business partner and local coffee brewer which merged the shop. Popularity and opportunity combined with Eric’s willingness to say “yes”–the second location of B.C. Bagels opened.

"It felt almost like the show Undercover Boss. I was trained just as other employees, and then got to get a look at each department to understand how the business model was set up."

- Eric Hawronsky

Fast forward beyond graduation and Eric moved back to North Dakota to continue working with his dad. In Bismarck, bakeries were not prevalent at the time – especially not a bagel shop. So, combined with his hobby of baking, he began to perfect his homemade bagel. Over time, with the support of his wife, family, and friends, Eric took the leap into opening up one of western North Dakota’s first gourmet bagel shops – B.C Bagels.

“I worked hard, and after six years or so, burnout began to set in. Having a fast-scaling business while trying to raise a family was taking its toll.”

A door opened for Eric to pass on the business to a chef who had moved to town from New York looking for an opportunity. With details in order, Eric handed over his portion of the company.

In 2018, Eric and his wife (Marla) and their daughter and son, relocated to Rapid City. Working in sales, 2020 shifted Eric’s career once again when COVID-19 changed the way people interacted with others.

"I have an incredible amount of respect for everything Deb and her team have done, and I’m excited to start introducing some of my favorites to the menu."

- ERIC Hawronsky

“I was back to doing book sales and once COVID-19 took over, schools shut down practically overnight,” explained Eric. “I started a handyman business in the interim, but eventually found a job in sales in the tourism retail industry.”

Three years later, another opportunity would present itself – one that was familiar and a passion for Eric. Through the grapevine, Eric was contacted by his former business partner about a possibility of owning a bagel shop in Rapid City. Within a few months, Eric had met Debra Jensen, the now former owner of Black Hills Bagels, and began working as an employee to see the inner-workings of the business.

“It felt almost like the show Undercover Boss. I was trained just as other employees, and then got to get a look at each

department to understand how the business model was set up,” said Eric. “I have an incredible amount of respect for everything Deb and her team have done, and I’m excited to start introducing some of my favorites to the menu.”

In addition to menu changes, Eric has prioritized company culture and employees have noticed. Not only does Eric believe that each employee should enjoy what they do, they should have a voice in the changes that are proposed.

“I’ve learned over the years that empowering employees to make decisions and fostering a team environment can help each staff member think bigger than their day-to-day job.”

On January 2, 2024, Eric officially gained the ownership title and has gotten to

Black Hills Bagels

913 Mt. Rushmore Rd, Rapid City (605) 399-1277

1720 N. Haines, Rapid City (605) 719-1720

work introducing new ideas, menu items, and processes. While preserving the core essence of the legacy Black Hills Bagels has had in the community, there are exciting changes on the horizon for the next chapter of the business.

“You don’t often get a second chance to do something you love,” Eric reflected, “and it’s really rewarding. I’m incredibly grateful for the opportunity and am excited about what the future holds for Black Hills Bagels.” •

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CREATING A CULTURE OF Employe e

Empowermen

t Employe e

Kyle Lambert helps lead A&B Business Solutions’ acquisition of local marketing agency

STORY BY MICHELLE PAWELSKI// PHOTOS BY SHILOH FRANCIS

Asa seventh grader, Kyle Lambert knew his future profession.

When asked to write a paper on his career choice, the middle schooler was not sure at first.

“I went to the library and found a book on growing careers and accounting was one of them. I decided at that point I would be an accountant and stuck with it.”

What Kyle did not anticipate in seventh grade was where his career choice would take him.

The South Dakota native and University of South Dakota graduate is now the chief financial officer and chief operations officer of A&B Business Solutions, a regional office equipment dealer that encompasses a wide range of services from copies and printers to office furniture, purified water, and coffee products.

Kyle’s role has evolved since joining the growing company in January 2021. He created new a financial strategy based on office equipment operational metrics and developed a new four-tier organization chart which broke the company into three departments, sales, service, and operations, with a vice president for each.

His most recent role was one of his hardest.

Kyle, working with A&B owner Dennis Aanenson, acquired the local marketing agency, Robert Sharp & Associates.

The latest acquisition adds another branch to A&B’s umbrella of companies which includes Cask and Cork, a wine and liquor distributor, and creates a new line of comprehensive services for its customers.

Kyle is now taking the A&B culture of openness, accountability, empowerment, and opportunity to the newest employees of the A&B family. This includes an initiative Kyle refers to as “Break the Walls Down” which cultivates an environment of candor and honesty. “It really turns

work into fun and makes people feel empowered,” he said. “And if we communicate, we will be successful.”

When acquiring the marketing agency Kyle said it was important to discover its culture and brand and how it would fit into the A&B environment. He also knew finding the right leader for the marketing agency would be important for its future growth and success. “When we found Angela, we knew we had the person who could take this marketing business to the next level. Not only is she a strategic businesswoman and passionate team leader, but she is also a perfect cultural fit from an A&B standpoint,” said Kyle referring to the new A&B Vice President of Marketing and marketing agency COO, Angela Avila.

“People think it is just the number, what is the purchase price, but it is so much more than that.

It includes hiring the right team members, getting to know the current employees, listening to customers, and getting feedback.”

"i have always found that whatever i am doing i am going to put my heart and soul into it, and that's the mentality everyone needs to have in business."

- Kyle Lambert

It is important to know if the cultures will align and how the company will run years from now, Kyle said of an acquisition or merger with a new company.

Initially, Kyle believed the RSA’s company’s culture aligned with the one he and Dennis had built at A&B. However, as they began to work through logistics and the changes in leadership, visions and culture did not align, and tough decisions had to be made. “A few months went by, and we realized we had issues that could prevent our vision from coming to fruition and needed to make changes.”

A&B made some tough decisions to better position the marketing agency for growth under fresh leadership and committing to a culture of empowerment. “We had real honest conversations about the reality of the situation. We wanted the employees to have the courage to tell us that these are problems we want to fix. We don’t see problems as things we will sweep under the rug.”

For the acquisition to be successful three things needed to happen: the employees needed to stay, the customers needed to stay, and the cultures needed to be in sync, Kyle said.

“We had some great discussions. No acquisition or merger is going to go perfectly. There will always be bumps, but we are soldiering through it. I just don’t see the company, the brand, I see the employees first. These people are now our family and our responsibility.”

A&B is now in the process of rebranding Robert Sharp & Associates with a new name and logo and is bringing together their employees to help with the process.

“We are offering an incentive to any employee that comes up with a new name and logo,” Kyle said.

With his first acquisition achieved, Kyle said he learned a lot and knows what he will do differently next time.

“There is no playbook, and I can tell you it was scary and exhilarating I am excited to do another one because I know how to be more successful, how to ask different questions and maybe find more pitfalls to make sure it is the right decision.”

Kyle and Dennis, who have wanted to own a marketing firm for decades, are excited about the opportunities that lie ahead for the growing company.

“Having a marketing company benefits all the businesses. Now instead of having one person doing the marketing, we have a set of 15 brilliant individuals working toward making us all more successful.”

Kyle has big plans for A&B’s newest business.

“We see this company growing 10 times over the next five to 10 years. Dennis, Angela, and I are committed to giving it the resources it needs, and we will give the opportunity and empowerment to the employees. We are going to let them take us as far as we can go.”

Kyle’s goal for the new marketing sector is to expand to Sioux Falls, regionally and eventually nationwide.

“I have always found that whatever I am doing I am going to put my heart and soul into it, and that’s the mentality everyone needs to have in business.”

That mindset position’s Kyle along with the rest of the extended A&B family on the path to future success. •

SWEET SWEET BUSINESS OPPORTUNITY

JESS AND CODY SKINNER'S SWEET TOOTH FOR RAPID CITY BRINGS the TITLE OF NEW BUSINESS OWNERS

STORY BY DOWNTOWN RAPID CITY // PHOTOS BY BRI VANDE POL

Inlate 2022, real estate agent Jess Skinner came across a listing with her broker for a sweet business opportunity; The Silver Lining Creamery in Downtown Rapid City was looking for new ownership. Even though Jess and her husband Cody were novices to the world of operating a creamery, there was just something about this opportunity that felt like it was meant for them. By December of 2022, the baton was officially passed to Jess and Cody and they were the proud new owners of The Silver Lining Creamery.

When Jess and Cody first took over, the first hurdle they overcame was employee acceptance. Jess said it was a learning experience to manage employees and foster a respectful workplace while also learning how to make the product that was so beloved by the community.

“We’ve had some staff changes since we first took over but now we feel like we’ve got employees who are along for the ride and who emulate a positive, energetic, and respectful work environment.” Jess says there are five college students who have returned for the summer months and she loves how much fun they have together at work, singing along to the radio, and making people feel welcome. The customers have taken note of the positive energy at the store with many leaving reviews that comment on how the long line was worth the great service.

"This year our storage unit is full and so we feel really ready for the summer."

- Jess Skinner

The Silver Lining Creamery has become a Rapid City staple since they first opened in 2014. Ensuring that the high quality of the product remained unchanged has always been one of the most important things to Jess and Cody during their leadership. Keeping quality top of mind, they’ve been able to put their own mark on things and make non-traditional flavors that have become crowd pleasers, like lavender honey or black licorice. They’ve also held onto the classics, like the best-selling, bright blue, cotton candy flavor.

Over the past year and a half of ownership, Jess has figured out to mitigate pain points of running the creamery, specifically the challenges that come with ordering supplies. Without a local wholesaler, foresight has become paramount to the creamery running without any disruptions, “Last year if we ran out of stuff like spoons or gloves, we’d have to run to every store in town and snatch up what we needed. This year, my storage unit is full and so we feel really ready for the summer.”

Jess says getting through the first year fills her with a sense of achievement; she’s mastered a completely new skill of making ice cream and has fully embraced becoming a boss. It’s also been a fun challenge for Cody to experiment with new flavors and embrace the creativity that owning this business has afforded him. Jess comments that they have gained experience with wholesale business in addition to operating the physical location, “I’ve been really surprised about the volume of ice cream we get to make to keep up with the demand. Since we’re a creamery, the product is made right here in the store and so we’re almost always making something whether it’s for the store or for our wholesale customers.”

Silver Lining is eagerly gearing up for another summer of serving joy by the scoop. Whether it’s a double scoop of cookie monster ice cream in a waffle cone or the tried-and-true favorite, vanilla (Jess’s top pick), Jess and Cody are thrilled they embraced this adventure, offering a unique experience to their customers. •

Compassionate, skilled providers work with patients and families to meet physical, emotional, social and spiritual needs for patients nearing the

of

Care and support are provided by an experienced team including nurses, social workers, nursing aides, physical therapists, counselors, chaplains, physicians, pharmacists and volunteers.

• A shared Electronic Medical Record makes the coordination with Monument Health hospitals and services seamless.

• Our Hospice House located in Rapid City provides 24-hour hospice care if/when a patient needs it.

• Ability to provide a full line of services from home medical equipment, pharmacy, specialty pharmacy and home care.

• Referral to the correct level of care is seamless and easy for families.

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Are you thinking about your future? Midco® is, and we’re here to get you there faster with multi-gig speeds and ultra-smooth reliability, giving you the power to take on all your tomorrows.1

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