Fargo INC! November 2016 by Spotlight Media

NOVEMBER 2016

CEO CONVERSATIONS

Mickey Quinn VANITY

Photo s by Paul Flessland

EDITOR'S NOTE

A CONVERSATION STARTER I took a lot from this month’s cover story conversation with Vanity President and CEO Mickey Quinn, but probably nothing resonated with me more than something she said toward the end of our talk.

Maybe you, the owner of a small bakery, have little interest in commercial construction delivery methods, but maybe you know someone in the FM business community who does. Or maybe they know someone who does. And so on.

When asked why she sees value in staying active in the local business community despite being in charge of such a large company, she responded:

Or maybe you skim an article that’s not directly applicable to your company, but it nonetheless sparks something in your brain that has value to you later on.

“I find great value in getting to know other business leaders in town. You can think you’re in totally different worlds and that there’s just nothing you could possibly have to talk about but yet you do. It’s very powerful and beneficial.”

Or maybe you just take a genuine interest in an industry or a company or a leader in town you previously knew nothing about.

It struck me for both its simple profundity but also for its applicability to what we hope we’re doing with Fargo INC! There are many times during a month when we’re putting together a story and I think to myself, “This is a pretty niche subject. Can we really expect more than a handful of people to care about this?” But Quinn’s comment made me realize something: it’s about the conversation.

nate@spotlightmediafargo.com

The point is that, the way we see it, the challenges and experiences of the business world are universal. They might present themselves in different ways and forms, but they are, at the end of the day, the same. So let’s keep that conversation going and continue to highlight the countless positive things going on in Fargo-Moorhead business on a daily basis. As always, thank you for reading and enjoy the November issue!

Nate Mickelberg Editor, Fargo INC! NateMickelberg

linkedin.com/in/natemickelberg

Fargo INC!'s

EDITORIAL ADVISORY BOARD We at Fargo INC! want to make sure our content is unbiased, accurate, and reflects the views and opinions of the FM business community. That's why we meet regularly with our seven-member editorial board to discuss area business issues and trends and ensure that we are living up to our stated values.

ANNA HANSON

President Moorhead Business Association

CRAIG WHITNEY

PAT TRAYNOR

President & CEO FMWF Chamber of Commerce

GREG TEHVEN

President & CEO Dakota Medical Foundation

BRITTANY SICKLER

Executive Director & Cofounder Emerging Prairie

Economic Development Specialist US Small Business Administration

JOHN MACHACEK

DEL RAE WILLIAMS

SVP, Finance & Entrepreneurial Development Great Fargo/Moorhead Economic Development Corporation

Mayor City of Moorhead

JARED STOBER Special Adviser Program Managaer Innovate ND

CONTENTS

24 COVER STORY

NOVEMBER 2016

ADDITIONAL CONTENT

CEO CONVERSATIONS

MICKEY QUINN VANITY

The president and CEO of Vanity has learned a lot in her 30 years in the retail industry. Read what she has to say about getting out of your team's way, how the mall model is changing and why it's so important to reward your customers.

Kilbourne Group GM Mike Allmendinger gives us a look at what's in store for Downtown Fargo's Black Building.

Spotlight Media November 2016 Sponsor.Dog

Learn about the new charitable program from Fargo-based e-commerce company dogIDs that's helping make shelter dogs across the country more comfortable.

Why it pays to collaborate

McGough Construction's Nate Wood explains why an outdated commercial construction model could be costing you time and money.

Bringing back The Black

7 common commercial real estate questions

Dan Hicks is in the trenches of the commercial real estate world day in and day out. He answers some of the most common questions he gets from clients.

Where are they now?

We catch up with Fargo native and Boeing engineer Dan Ficek.

Meet the newest Fargo INC! contributor. The director of Innovate ND and a life-long entrepreneur, Jared Stober will be bringing readers a look at what's going on in North Dakota business outside the FM area.

Think you need a CFO but can't afford to keep one on staff? Eide Bailly's Possibilities Center has a solution.

A word from the capital

Why you should care about wealth transfer Don't want Uncle Sam to get his hands on your hard-earned money when you're pushing up daisies? We dive into the world of wealth transfer to show you how you can keep your legacy going strong for generations to come.

We will get it done!

FMWF Chamber of Commerce President and Fargo INC! Editorial Board member Craig Whitney explains what the Minnesota DNR's recent decision means for the future of the FM Diversion project.

A virtual option

Business Events Calendar

A talk from the man who helped take down Bin Laden, a look at Fargo's air service, the Founders Only Retreat and many more great business events that you can't miss in November.

FM Career Finder 86

Cheap ways to improve company culture

What can you learn about company culture from a coffee shop? A lot, it turns out. Twenty Below Coffee, Eide Bailly and other local companies talk about how they keep their employees happy and productive on a budget.

Job listings

Two full pages of positions at some of the best local companies to work at

NOVEMBER 2016

Meet the Team MIKE

TRACY

JESSE

Meet Spotlight Media's other magazines RYLEE

BRITTNEY

NICOLE

BOUGIE

ERICA

BRADY

ANDREW

JOE

The people have spoken and the results are in. After three weeks of nominations and two weeks of voting, Design & Living Magazine reveals the results in 39 home industry categories. Meet the deserving winners and nominees of our second annual People's Choice Awards.

SARAH

PAUL

HEATHER

NATE

SAM

RYAN

JENNY

LAURA

TANK

DEVIN

PAUL

LUKE

ETHAN

Before Gene Taylor left NDSU for Iowa, he proclaimed the transformation of the old Bison Sports Arena into the Sanford Health Athletic Complex was going to be the final step in the Division I transition at NDSU. Over two years later, that step is complete. Go inside the SHAC in the November issue of Bison Illustrated and see what made this project well worth the wait.

You can't complain about saving a little extra dough when you're out to eat, right? This month, Fargo Monthly visited 30 bars and restaurants in Fargo-Moorhead to show you a number of quality dishes that you can get one heck of a deal on. From lunch specials and half-priced appetizers to discounted pizzas, we discovered a wide variety of specials for every day of the week.

To learn more about Spotlight Media, go to spotlightmediafargo.com 14

NOVEMBER 2016

NOVEMBER 2016 Volume 1 Issue 11

Fargo INC! is published 12 times a year and is available at area businesses and online at fargoinc.com

Publisher Mike Dragosavich

drago@spotlightmediafargo.com

CREATIVE

Editorial Director Andrew Jason

andrew@spotlightmediafargo.com

Editor Nate Mickelberg

nate@spotlightmediafargo.com

Graphic Designers Sarah Geiger, Ryan Koehler, Brittney Richter

Photography J. Alan Paul Photography, Paul Flessland

Contributors Nate Mickelberg, Craig Whitney, Andrew Jason, Jared Stober, Mike Allmendinger

Copy Editors Erica Rapp, Sam Stark, Devin Joubert

ADVERTISING

Senior Account Tracy Nicholson Manager tracy@spotlightmediafargo.com

Marketing/Sales Paul Hoefer

paul@spotlightmediafargo.com

Paul Bougie

paulbougie@spotlightmediafargo.com

Tank McNamara

tank@spotlightmediafargo.com

Jenny Johnson

jenny@spotlightmediafargo.com

Business Operations Manager Heather Hemingway Administrative Nicole Houseal

CIRCULATION

Mitch Rapp, Hal Ecker, Nolan Kaml

Fargo INC! is published by Spotlight Media LLC. Copyright 2016 Fargo INC! & fargoinc.com. All rights reserved. No parts of this periodical may be reproduced without written permission of Fargo INC! Fargo INC! & spotlightmediafargo.com will not be held responsible for any errors or omissions found in the magazine or on fargoinc.com. Spotlight Media LLC., accepts no liability for the accuracy of statements made by the advertisers.

Spotlightmedia

Spotlight Media Inc. 15 Broadway N, Suite 500 Fargo, ND 58102 or info@spotlightmediafargo.com ADVERTISING: 701-478-SPOT (7768)

CEO CONVERSATIONS

Mickey Quinn VANITY

Queue the Johnny Cash because Mickey Quinn's been everywhere, man. The president and CEO of Fargo-based specialty retailer Vanity has spent time at five different companies in six different cities during her 30-plusyear retail career, and with her cross-country experience has come a unique understanding of what it takes to be a leader in a constantly changing industry. By Nate Mickelberg | Photos by J. Alan Paul Photography

NOVEMBER 2016

DON'T HIRE SMART PEOPLE TO TELL THEM WHAT TO DO. One of the things I feel strongest about is surrounding myself with experts in their field who really know what they’re doing. I stay in contact with them and I want to be aware of what they’re up to and what their plans are, but I lead by letting my experts do their jobs and by not being a micromanager. I also understand that I have to adjust my style to them because they’re not going to change.

Everyone needs a little bit different management, but I find my greatest success is getting out of my people’s way. It's also about trusting them— challenging but still trusting that they're doing what they're doing for a reason. No one in our company feels like they have the final say. Not even me. It’s a collaboration.

GO OD IDEAS ARE EVERYWHERE. A great example is our director of IT. He's been at the company a long time and understands why things we've tried in the past haven’t worked. And he’ll share that knowledge. Not in a way where he's saying we shouldn’t try it again, but he’ll share it as, ‘We did try that, here’s what happened, things have changed. So it could work now.’ It's great to involve all areas of the company together. Sometimes I think they might feel a little like, ‘Ugh, I could be back at my desk doing MY job rather than listening to IT talk about PCI,' but they’re stronger because they’ve heard what everybody else is working on and somebody—it doesn’t matter from what area of the company—might have an idea that makes us say, 'Ah! We didn’t think of that.'

A Brief History of Vanity

NOVEMBER 2016

1957

Emery and Ann Jahnke purchase the Vanity name from a Dickinson, N.D., dress shop where Ann works.

DO THE DIRTY WORK SO YOUR TEAM DOESN'T HAVE TO.

The LA Port Shutdown A 2015 dispute between shipping companies and dockworkers at the 7,500-acre Port of Los Angeles—one of the largest port complexes on the West Coast—threatened to cripple trade between the US and a number of international trade partners—China, Japan, and South Korea, among others. While a contract between the two sides

1960

A big part of the position I'm currently in is getting things out of our people's question from whether that's a board member or a government regulation or the slowdown at the LA port last year, which was a huge problem and caused us a lot of pain. When the (LA Port slowdown) was going on, I started calling our US Senators and said, ‘Hey, what are you guys doing to help us out here?’ I see my role as cheerleader, supporter and challenger, but ultimately the person who helps get the obstacles out of the way so that (our employees) can do the very best for the company.

was eventually agreed to, the dispute proved that business rarely happens in a vacuum, as some of the companies that would've been hardest hit were ones like Vanity—thousands of miles away and which rely on the Port to import the bulk of their supply.

Vanity moves to a 2,000-square-foot location and opens a children’s clothing store in the original location.

WITH MILLENNIALS: 1) SEEK TO UNDERSTAND. 2) CHANGE YOUR MINDSET. Vanity is my first experience working with a lot of Millennials, and I've come to understand that what motivates them is different. They’re very protective of their time and their work-life balance. Giving them a project that’s going to really help them shine but is going to take a lot of extra

effort and time is not as much what they want. They’d rather understand that what they’re doing now will eventually get them that time they want (to do other things). You just have to phrase things in a slightly different way: 'If you do this now and take the time to train your team really well, you’re going to be able to take your vacation and you’re not going to have to work doubletime when you come back because you have to fix everything that wasn't done the way you wanted.' It's a different mindset. At first, I thought Millennials were just not as motivated and acted entitled, but the more I work with them, the more I realize that’s a generalization and isn't true. There are just as many Millennials who want to move ahead and are as driven and hard-working and I was when I was their age. I'm sure there are stereotypes of my generation from the group that was 2030 years older than me when I was first starting out. You just have to cater to the individual and not lump them all into one group. Their preference in a perk is different than what mine was when I was starting out. And just because I think something’s a great perk doesn’t mean they do. But I can change what I think and I can change what I’m doing. It’s taking the time to listen and find out what they want. Because they’re not going to change their opinions. I'll change.

1964

NOVEMBER 2016

The Jahnkes open a Vanity store in Grand Forks. The Grand Forks store is so successful that the they sell their Dickinson locations and open a second Vanity in Grand Forks. It is the only junior women's store in the state at the time.

MICKEY'S DAILY READING Magazines Chain Store Age

Chief Executive

STORES

BRICK-ANDMORTAR STILL MATTERS.

Newsweek

Women's Wear Daily Books

Web is doing great and is the wave of the future, but it’s not offsetting any losses you take in brick-and-mortar. It's our largest-volume 'store,' but it can’t make up for our 143 (physical) locations. There's still great value in having brickand-mortar.

Think about when you’re in the fitting room and you’re so discouraged, and then somebody tosses something over and you try it on and you’re like, ‘Wow, I look great.’ That -ization trend— personalization, customization—is very powerful in our industry right now.

While all of the technology and all of the 'press-a-button-and-it-shows-upat your doorstep' is great, there’s still a human desire to have a conversation and a connection. And in our business, there’s such opportunity in being able to help with that. It's women dressing themselves. We can help them feel good, feel fashionable and feel better about themselves.

In our sector, the moderate-price-point sector, it’s difficult to get help in the mall or sometimes even in a boutique. That's where we stand out. That’s our point of differentiation. You can walk into a lot of our competitors, and they greet you and tell you what the promo is, and then you’re on your own. We really focus on selling and assessing the customer’s needs.

Yes, you might get some satisfaction by pushing that button and having it show up to your doorstep, but it’s not as emotionally visceral as having that faceto-face conversation.

We ask, 'What is she looking for?' and then try to tailor to her based on what she wants.

1966

The 21 Most Powerful Minutes in a Leader's Day by John C. Maxwell

The Maxwell Daily Reader by John C. Maxwell

Quinn: "This is the one I refer to most frequently when preparing a message of motivation and inspiration to my team." The Little Book of Leadership by Jeffrey Gitomer

Excerpt Chapter 8: Opportunity Leadership “Crisis is the best time to effect change…Some people are ‘waiting to see what happens.’ Big mistake. There are three kinds of people: people who make things happen, people who watch things happen and people who don’t know what’s happening. Which kind are you?”

Vanity incorporates.

CONSUMERS ARE CHANGING. YOU SHOULD, TO O. Malls, in general, will tell you that their traffic is fine and that it's retailers that are not doing as much traffic. That could very well be true in what are called A malls, but I would really challenge that in B and C malls. What we do know is that our shopper used to visit five to seven stores when she made a trip to the mall and now she visits three to five. That's a huge 40 percent decrease in location that she's shopping when she goes there. She's spending a lot less time there, too. And she has a plan. She knows where she's going. That’s what that tells us. But it’s a definite change in her behavior, and that’s the chaos that we’re all going through. She's still going to the mall, but

1969

NOVEMBER 2016

she's going to fewer places. So how do we get her to come into our store? There are some malls that have reinvented themselves and added a Dave & Busters or a golf simulator. I’ve been to a couple of rural malls where they’ve taken over a former restaurant and now it’s a mini-golf course. For our customer, if she’s going to take her family out, it's become more of an outing. Dad might go do mini golf with the kids while she then does her thing and shops. It can actually improve traffic opportunity and the experience because then the kids have something to do with dad while she runs in and grabs a pair of jeans.

In Fargo, the company opens its first junior-fashion store.

A REWARDED CUSTOMER IS A LOYAL CUSTOMER. A huge majority of our transactions are rewards customers. They spend more than a non-rewards customer. They’re more profitable than a non-rewards customer. And because of that, they get the best deals. There’s great value in target-emailing to a group when we know we have a grand opening or are changing locations and we want to target-market to specific customers to give them specific information. There's a significant opportunity for us right now with the underserved plus-size demographic. The average size of the US woman is 14 and yet designers are

1 971

still using size eight as their fit model and then grading up and down from there. It doesn’t grade well when you have to go from a size eight up to a size 22. You lose the fit integrity. Fashion is an attitude, not an age or a size. And if you have product that fits the larger sizes and is fashionable, she will be very loyal because there are so few options for her. And it’s a significant opportunity when we find out that a customer purchases a certain size because we can then market to her and say, ‘We have even more fashion available online.’ Or, ‘You bought this online, and we have this offering in the store and your collection is landing.’

Vanity opens in Downtown Fargo. The store is part of Concept208, which consists of a music store, shoe store, candle and poster store, young men's store, hot dog stand and Vanity.

7. SANDPOINT, ID Coldwater Creek 11.5 years While her husband was running the gallery, Quinn accepted a new position with her former employer, serving as the company's division vice president of store operations for the next 11.5 years.

7 8

4. SANDPOINT, ID Coldwater Creek 2 years When Quinn's husband was recruited for a position at Idaho-based catalog retailer Coldwater Creek, the pair packed up and headed for the resort town of Sandpoint. Quinn got a job at Coldwater as well, serving as manager of the company's flagship location for nearly two years.

8. FARGO, ND Vanity 3.5 years Quinn says she saw the "writing on the wall" ahead of Coldwater Creek's 2014 bankruptcy filing and, in the process of exploring other opportunities in the retail industry, was turned on to Vanity by a former Coldwater colleague. He was serving as Vanity's CEO at the time and convinced her to come to Fargo for a visit. "It was when I met everybody at the home office that I really decided it was a good opportunity," Quinn recalls. "There were so many smart people doing a great job, and that was what I came to work with and that's why I moved here."

THE MAP OF

Mickey 1 97 2

NOVEMBER 2016

3. DALLAS, TX JC Penney 10 years After JCPenney moved its corporate headquarters from the Big Apple to the Lone Star State, Quinn spent the next 10 or so years working in Dallas as a buyer. She also spent time in the company's marketing and communications departments.

Vanity stores open in Bismarck and West Acres Mall in Fargo. The founders expand beyond the borders of North Dakota to open six stores in Colorado.

1. ROCHESTER, NY Rochester Institute of Technology 3 years Quinn grew up in western New York and did her undergraduate business administration studies only about an hour away at the Rochester Institute of Technology in Rochester, N.Y.

1 2 6

6. MEDINA, OH B. Dalton 6 months After the September 11 attacks and three moves in four years, Quinn and her husband decided it was time to put more permanent roots down somewhere. They decided to buy an art gallery, which Quinn's husband would run, back in Sandpoint.

2. NEW YORK CITY, NY JCPenney 1.5 years Quinn's first major job in retail was in JCPenney's corporate office in Manhattan. While corporate culture has its drawbacks, Quinn says that many major retailers are masters at teaching employees the nuts and bolts of how they want a job done.

Wallace's College Bookstores

FAB FACTS The first Vanity store was located in Dickinson, N.D., and occupied only 900 square feet.

Vanity clothes range in size from XS-2XL. Vanity operates almost 150 stores and is opening another four this year before Christmas.

5. LEXINGTON, KY Wallace's College Bookstores 2 years After a shakeup in the Coldwater men's department, Quinn's husband found himself looking for a new job, which led the pair to Lexington, Ky. Quinn's husband got a job at ecampus.com and Quinn herself accepted a position as the director of merchandise at Wallace's College Bookstores.

The specialty retailer's stores are located with a Midwest concentration but expand from there to 27 states.

Due to its quickly growing web presence, Vanity has sales in all 50 states.

Vanity has more than 100 team members at their corporate office in Fargo and 2,000 employees total.

1 974

Vanity headquarters are established in Fargo.

COMPANY SIZE AND STATURE SHOULDN'T DICTATE COMMUNITY INVOLVEMENT. At first, I didn’t quite understand why it would be important to be involved with things like Emerging Prairie or Women’s Startup Weekend, but it definitely makes you more in tune with the community. I find it to be invaluable, the connections you make and the conversations you have with people. It’s one of the things I’ve tried very cautiously, but consciously, to work on in Vanity’s culture is to encourage that kind of involvement in the local business community. We’ve been supporters of United Way and always participate in the Day of Caring, but it’s all very surface-level and that’s just been the culture of the company. It's always been very frugal and heads down, ‘You’re working for Vanity. You work on Vanity all day long and not this other stuff.’ It's been about broadening that horizon. We used to be members of the Chamber. We’re not right now, but that is something that I want to change. It's baby steps. We just became a gold partner with the YWCA, and that was

2 010

a big move. Vanity’s never done that before, but our chairman and majority owner recognize there is a need for giving back to our community. They are totally supportive. I find great value in getting to know other business leaders in town. You can think you're in totally different worlds and that there’s just nothing you could possibly have to talk about, and yet we do. It’s very powerful and very beneficial.

Vanity opens a new store in Johnson City, Tenn. The store is the first the chain opens in the tri-cities of Johnson City, Kingsport and Bristol.

NOVEMBER 2016

Vanity temporarily closes its West Acres store while it is remodeled. The new store design includes tall, glass storefront windows for better viewing into the store, a new lighting system, full-length mirrors, added lighting and wood benches in dressing rooms.

A WEB PRESENCE IS NO LONGER UP FOR DISCUSSION. You don’t have to have all the bells and whistles and you don’t have to go out and spend millions of dollars in order to get yourself up online, but having an online presence is almost a nonnegotiable in order to do business today. One of the first things the customer does when they find a brand or a name they like is search online. Even if you’re a small boutique and even if it’s just a landing page with who you are and your story, having an online presence is necessary, whether or not you sell your product online. At the very least, you need to have ownership of your brand online. And that's true whether

2 01 3

you're a brewery or actually selling product (online). I think the challenge, especially with a more established brand that’s been around for a long time, is that it's difficult to see the return on investment. It's software, it’s technology, and it can be hard to see the value in it. If you adopt it early, you spend so much money because it costs so much. And if you wait, you have economies of scale, everybody’s doing it, and the prices have dropped, and then it’s not that big of a disadvantage to enter in a little bit late.

The chain grows to 170 stores in 26 states. The corporate headquarters and distribution center remain in Fargo, along with the company's website, vanity.com

ON TREND Vanity Chief Merchandising Officer Jill Shea explains how the specialty retailer balances trendiness with brand identity: "We develop our styles from many perspectives but design for the Vanity customer. We travel to Los Angeles and New York to go to ‘market’ and gain insight from our vendors about trends and attend industry trade shows, which gives us a glimpse into upcoming trends. "We shop, shop, shop and people-watch in large, trendy areas throughout the country. We love to see the point of view of up-and-coming boutiques for innovation. It is insightful to see what retailers have in their stores and what trends they believe in, as well as how the trends are evolving and being worn. "We also subscribe to trend services that forecast themes and color one year in advance. We watch the designers' New York runway shows in advance of the season for inspiration. European retailers also offer a point of view that we watch and are inspired by."

2 01 6

DON'T CONFUSE YOUR PREFERENCES WITH YOUR CUSTOMER'S. The Vanity customer is very specific in what she likes from a fashion standpoint, and that can make it challenging for the buying team. They go to market in New York and see what's happening on the runways in Europe, and while they may personally want to wear something, they always

have to remember that the Vanity customer might not.

There are some trends that are fully adopted by the US consumer, but the Vanity customer is like, ‘I’m not wearing that.’ It's the constant balance of: this is going to be in the all the fashion magazines, it's going to be in every trend article, our vendors are showing it to us, but is it right for the Vanity customer? We always have to be thinking about that.

Vanity opens a web warehouse in North Fargo. The building is dedicated to all things web and e-commerce at the company.

It's all about the puppy love

SPONSOR DOG A new program from Fargo E-commerce company dogiDs is helping to make the stay of shelter dogs across the country a little more pleasant. WHO

Clint Howitz Founder & CEO dogIDs

NOVEMBER 2016

By Nate Mickelberg | Photos by Paul Flessland & J. Alan Paul Photography

dogIDs dogIDs is a Fargo-based e-commerce company that specializes in personalized dog products such as leashes, collars and harnesses, among many others.

WHAT

Sponsor.Dog Sponsor.Dog is a new program launched by dogIDs that allows people to effectively sponsor a shelter pup right here in FargoMoorhead and at other shelters across the country. Pick a dog, pick a product and send it right to the adoptable dog. It's that easy.

how it works

figure 1

With dogIDs being a national company, they wanted Sponsor.Dog to be a national program in an effort to help as many dogs as possible. The donation website features a map with five regions of the US. When you click on one, the shelters featured in that region and the adoptable dogs living at each will pop up.

2. WHEN

Right now While October was officially Adopt-a-Dog Month, there's no reason why the rest of the year can't be, too.

The products available for purchase are right below each pup. Once a product is purchased, dogIDs will send the product straight to the shelter. Two Fargo-Moorhead-based rescues, 4 Luv of Dog and Diamond in the Ruff, are Sponsor.Dog partners. Wilma (pictured below) is an eight-year-old Chihuahua mix currently housed at 4 Luv of Dog.

WHERE

Online, across the country dogIDs has partnered with rescues in every region of the country (see Figure 1).

WHY

For dogs' sake "Our pack has a genuine passion to help the pet rescue community," says dogIDs Founder & CEO Clint Howitz. "The products offered (through Sponsor.Dog) will keep dogs comfortable while they wait for their forever homes and help the rescue shelters take in more dogs."

Products range from essentials such as leashes and collars to more fun items such as chew toys and frisbees. Each item is specifically selected based on the needs and personality of the dog, and a percentage of the proceeds from each purchase will go to the rescue hosting the dogâ&#x20AC;&#x201D;helping with the day-to-day costs of running a shelter. If one of the featured dogs is adopted, a new one will take its place on the site.

TAKE

TIO N

SPONSOR.DOG

To learn more about the program or to sponsor a dog today, visit dogids.com/sponsor

FARGO-MOORHEAD RESCUES

3 Quick ?s

4 Luv of Dog 4luvofdog.org To make a donation, send to the following address: w/ dogIDs Art Director & Sponsor.Dog Project Manager Kayla Duffney

What was the motivation for establishing a charitable arm like this at dogIDs? Kayla Duffney: Clint (dogIDs Founder & CEO) is very passionate about helping dogs. It initially started as an idea to sponsor dogs in the area and then branched out to, 'Why don't we make this a nationwide thing and reach out to other shelters in different states to see if they want to be a part of it?' "There is no catch. We just want to promote that there are dogs that need to be adopted, and if people are willing to sponsor them, send them some products, and make them more comfortable in the shelters or foster homes they're in, that would make us very happy."

Due to different circumstances, not everyone can adopt a dog even if they want to. Is this a way for them help out in a different way? KD: That's how we view it. For people who can't own pets, it's a nice way of helping out those that are still in shelters or rescues. Most of the dogs we put on the website are older dogs or ones that have been in the shelter for a very long time. The shelters themselves will actually tell us which ones could use more support than the others.

It can be easy to gloss over programs like this when they're framed in terms of statistics and big numbers. Do you think it helps people to see the names and pictures of the dogs they'll be helping directly? KD: Yes. And I think what makes sponsoring a dog (on Sponsor.Dog) a little bit different is that people can have a little fun with it. If they're from a certain region, they can go to it on the site and actually look at all the different rescues and dogs available in their area. We always just want to try to find new ways to help dogs out.

NOVEMBER 2016

4 Luv of Dog Rescue PO Box 9283 Fargo, ND 58106-9283 Checks can be written payable to "4 Luv of Dog Rescue." You can also make an online PayPal donation on their website. Diamond in the Ruff diamondpetrescue.org PO Box 6464 Fargo, ND 58109

BUILD A better brand of

5 REASONS to consider a

COLLABORATIVE CONSTRUCTION delivery model

f you've ever built a house or a lake cabin or even just a backyard deck, you've probably had the experience of opening an invoice that's for a lot more than was originally promised. "Cost overruns are just an unfortunate reality of the building process" is what we're always told. But what if they weren't? For years, McGough Construction, a general contractor based in the Twin Cities that opened an office in Downtown Fargo in 2015, has been giving its commercial clients another option.

The collaborative delivery model, as it's referred to most generally, is a stark departure from the construction industry's other, more common delivery system—known as design-bid-build (DBB)—and as we learned from the head of McGough's Fargo office, Nate Wood, the collaborative model has become the preferred option for an increasing number of McGough's commercial clients. Here are five reasons you should consider the collaborative approach for your next commercial project.

By Nate Mickelberg • Photos by J. Alan Paul Photography 42

NOVEMBER 2016

NATE WOOD, regional operations manager for McGough's Fargo office, is pictured at the site of Concordia College's Science Facilities Project, which will be completed in 2017. Concordia opted for a collaborative delivery model for the major expansion to its science buildings.

Some Background on Collaborative vs. DesignBid-Build (DBB) Design-bid-build (DBB) requires completion of the project design before the contractor is selected. As Wood explains, this is a significant disadvantage because the contractor is not involved in the pre-construction process. This means that the contractor does not participate in value engineering, budgeting, constructability or design review. DBB also lengthens the project schedule and precludes fasttracking of projects. Conversely, with the collaborative delivery approach, a contractor is selected early on in the planning phase of the project and works intensively with the owner and design team to provide budget estimates, value engineering and scheduling input. The contractor establishes a Guaranteed Maximum Price (GMP) for the project when the design scope is well understood. This GMP includes some level of contingency to cover unanticipated changes in scope or unknown conditions that may exist when the GMP is established. When documentation for each major section of work is complete, the contractor competitively bids the work to the subcontractor community.

The collaborative delivery system delivers optimum value for the owner. The best opportunity to positively impact project costs occurs at the earliest stages of the project: during the design phase. Early contractor involvement positively impacts the accuracy and quality of the project’s design, budget, value engineering and constructability.

Net project cost is usually lower. Although the first cost estimates using the collaborative delivery approach are usually greater than DBB, the final cost of the project generally ends up being lower. These are just a few of the reasons: • Materials and subcontractor components of the work are competitively bid, which generally makes up more than 90 percent of construction costs. These are charged at actual cost without markup. • A collaborative approach returns 100 percent of any cost savings to the owner. Under the DBB approach, 100 percent of the cost savings are retained by the contractor. • The contractor operates according to an open-book process. The owner has access to actual project cost information at all times. As unused portions of the guaranteed maximum price (GMP) are identified, adjustments can be made to project scope.

Projects are completed more quickly. Several key factors enable the contractor to complete projects faster under the collaborative delivery process: • The early involvement of the contractor allows fast-tracking and accelerated scheduling of the project, which is not possible in DBB projects. Similarly, site work, including footings and foundations, can be completed before design is finalized. • The flexibility of this approach permits phased design packages throughout the process. Conversely, with the DBB approach, design documents are generally done in a single bid package, which means that design packages cannot be phased and construction is delayed until design is complete. • The contractor can anticipate requirements that are not shown in incomplete documents and can respond to changes as the project design evolves.

Owners are afforded maximum control and higher-quality results. Under the collaborative delivery approach, an owner maintains project control for the duration of the project. The owner can choose the level of project involvement they desire through each phase and is able to clearly outline project goals— budget, schedule, quality, etc.—and can influence those goals and make informed, incremental decisions from the commencement of the project through project completion. As an example, the process allows the owner to have significant involvement in evaluating and making decisions regarding the key building components that influence final project cost. These include site work, structure, building envelope, and mechanical and electrical systems. The key characteristics that ensure maximum owner control and flexibility: • The system is owner-focused rather than profit-focused. Owners may choose their degree of involvement during each project phase, which aligns owner goals with project results. • It produces early and credible cost information for owners so that they can estimate final project costs and balance these against other project goals.

Why Fargo? As with most growing companies, McGough always has their eyes on the horizon for new opportunities, Wood says. "We're always looking for that next and most sensible place to go," says Wood, who spearheaded the effort to establish a McGough office in Fargo in 2015. "If you look around the country—especially the Upper Midwest, which we're very familiar with—per capita, there are more startups in the state of North Dakota, especially in the Fargo area, than anywhere else in the country. "It's a growing area and a growing economy, and when you have a growing population, what's going to grow? Your institutions, your healthcare, all of those things to support your population. So for the types of projects we do—hospitals, clinics, higher education—this was definitely the first next step."

• The collaborative approach places a significant emphasis on achieving high-quality results. The team manages the trade-offs between quality and cost to ensure an optimum balance is achieved. 47

Communication is enhanced among project participants. Through all phases of design and construction, the contractor partners with the owner and design team, as well as project consultants, subcontractors, material suppliers, and vendors to review project progress and make adjustments as necessary. Some of the advantages: • Collaboration is characterized by shared expectations and project goals, resulting in a trusting environment that is established early and maintained throughout construction. • It improves team communications regarding budget and design and delivers earlier and better cost management direction to the architect and engineer, which reduces the project’s design cost. • It eliminates adversarial relationships and reduces the likelihood of litigation among project participants that typify the design-bid-build model.

What The Numbers Say According to a 1999 study done by two researchers at Penn State University in State College, Pa., there are measurable differences with respect to project cost and schedule when utilizing a collaborative delivery approach, as compared to design-bid-build. The figure below summarizes their findings. COMPARISONS METRIC

DESIGN-BUILD VS. DESIGN-BID-BUILD

NOVEMBER 2016

LEVEL OF CERTAINTY

Unit Cost

6.1% Lower

1.6% Lower

99%

Construction Speed

12% Faster

5.8% Faster

89%

33.5% Faster

13.3% Faster

88%

Delivery Speed

OUT

McGough Construction is a sixth-generation commercial general contracting firm headquartered in the Twin Cities. From a wide range of healthcare, higher education, and institutional facilities to downtown office towers, they complete projects of all scopes and sizes. In addition to their flagship location in St. Paul, they have seven branch offices—three in Minnesota, two in Iowa, and one each in North Dakota and Arizona. MCGOUGH CONSTRUCTION mcgough.com 630 1st Ave. N #4, Fargo 701-639-6282

CM@RISK VS DESIGN-BID-BUILD

A WORD FROM THE CAPITAL WITH THE ND DEPARTMENT OF COMMERCE'S JARED STOBER

ABOUT ME

Hello Fargo INC! readersMy name is Jared Stober. I'm a special adviser to Fargo INC!, and over the next few issues, I'm going to be providing some insight into some of the programs and opportunities that are available to entrepreneurs in North Dakota. Before I start with that, though, I want to give you a little background on myself. I am an entrepreneur myself and, working at the North Dakota Department of Commerce, have the privilege every day of helping other entrepreneurs. Prior to joining the state, my 50

NOVEMBER 2016

family and I built a brand called Flax USA from the ground up. Flax USA pioneered the flax-seed category, and, with a little bit of luck and a lot of hard work, we sold flax-seed products in more than 16,000 retail locations, including Samâ&#x20AC;&#x2122;s Club and Costco. In 2015, we made the decision to sell our company to a private investor. As many of you can relate to, though, once you have the entrepreneurial bug, it's not something you can shake. So this year, my brother and I started Two Track Malting, a company that produces craft malt using barley grown on our family farm to supply to the craft-brewing industry. Once again, I am in startup mode and could not be happier.

INNOVATE ND When we first started Flax USA, the entrepreneurial ecosystem in the state did not exist at the level it does today. Having an entrepreneurial community like Fargo is very beneficial when starting a new business because you can engage with other entrepreneurs and learn from one another. Startup Weekend, 1 Million Cups and various networking events are things that were lacking in the past, and entrepreneurs are very fortunate to have options like these today. If you're not familiar, Innovate ND is a state program that is designed to help startups accelerate their business. I was not aware of Innovate ND until I began working for the Department of Commerce and was fascinated that a resource like this existed for businesses just starting out. Innovate ND has evolved into a great resource that provides financial assistance, mentoring, entrepreneurial-focused boot camps and networking that can help accelerate startups. In order to qualify for Innovate ND, a business or business idea must be innovative (not another "me too" business) and scalable. This means market potential must be, at the very minimum, a large regional market but preferably national and international markets. Once a business qualifies for the program, the next step for the entrepreneur is to visit with an entrepreneurial center. There are three centers located across the state.

Dr. Jeff Stamp speaks to an Innovate ND boot camp class held in Fargo on Saturday, October 8.

1) NDSU Research and Tech Park – Fargo 1854 NDSU Research Circle N, Fargo 701-499-3600 ndsuresearchpark.com 2) UND Center for Innovation – Grand Forks 4200 James Ray Drive, Grand Forks 701-777-3132 innovators.net 3) IDEA Center – Bismarck 2720 E. Broadway Ave. 2, Bismarck 701-250-2198 ideacenternd.org Entrepreneurial centers are staffed with experts who can help entrepreneurs develop a business plan, find mentors, and provide coaching and

consulting to help grow the business. I personally worked with the UND Center for Innovation when launching Flax USA and was connected with industry experts who helped us get our marketing and sales channels figured out. After an initial visit with an entrepreneurial center, Innovate

Over the past few years, there have been some great businesses that have used Innovate ND, many of which you are probably familiar with:

dogIDs

Profit Pros

Harvest Profit

Sky Blue Technology

Fargo 3D Printing

Botlink (formerly Aerobotic Innovations)

Oliver Cabell

Advanced Bone Technology

Posterboard

Protosthetics

ND is delivered in four phases that grow with your business. You will work with the center to develop a plan for each phase of the program. Voucher and grant funds can be used for anything that you need for the business, such as prototype development, marketing assistance, legal fees, and coaching and consulting fees at the center. Phase I $2,500 Voucher - $250 enrollment fee Phase II $5,000 Voucher - $500 enrollment fee Phase III $10,000 Grant - $2,000 matching funds Phase IV $15,000 Grant - $5,000 matching funds

camps, which are led by Dr. Jeff Stamp. Stamp was the inventor of Baked Lay’s potato chips and has built various other businesses over his career. He has a wealth of knowledge and holds these boot camps across the world so we are very fortunate to have him be a valuable part of Innovate ND. We have just started our fall boot camp series, even if you have missed one or two, it is not too late to join. Check out our website for the boot camp schedule and for additional information about the program. There has never been a better time to start a business in North Dakota, and Innovate ND is just one of the many reasons why. If you have a business idea and are looking for some help, apply now. TIO AC N

ITEM

If you qualify for all of the phases, Innovate ND provides up to $32,500 that you can use to grow your business.

JARED STOBER

Throughout your time in the program, participants are required to attend entrepreneur-focused boot

innovatend.com jstober@nd.gov 701-328-5373

Innovate ND Program Manager

BY Andrew Jason | PHOTO BY Paul Flessland 54

NOVEMBER 2016

ver the next 60 years, $59 trillion will be passed on as the world’s wealthiest people approach retirement or pass away. When you pass away, depending on your worth, you are subjected to an estate tax. With proper planning, you can ensure that your estate and legacy lives on through smart planning, and you can have a particularly huge

impact by donating to nonprofits.This wealth transer, which is the largest in history, will have huge impacts on families, communities and charities alike. We taspoke with Kelly Steffes and Rick Thoreson of Thoreson Steffes Trust Company about what this means and how you can make sure your legacy lives on.

THE BASICS Over the next 60 years, the largest wealth transfer in history is going to happen as the world’s richest people approach retirement and begin to pass away. According to a study conducted by John J. Havens and Paul G. Schervish of the Center on Wealth and Philanthropy at Boston College, an estimated $59 trillion will be divided among heirs, charities and estate taxes. Wealth transfer refers to somebody’s estate being passed on to the next generation. Right now, the federal estate tax exemption equivalent is $5.45 million but, as Thoreson Steffes CFO Kelly Steffes explains, this wealth transfer is about much more than just the money. “When we work with clients, we find that wealth transfer isn’t always about taxes,” she says. “It’s also about: what’s the best way to transfer it to the next generation?” North Dakota does not have an estate tax, but Minnesota does have an estate

tax exemption of $1.6 million for 2016 deaths. The individual exemption will rise by $200,000 a year until it reaches $2 million in 2018. Married couples, with proper planning, can double this amount. This means that if your taxable estate is more than the exemption amount, your estate will be taxed on the excess at a rate between 10 and 16 percent. This high tax rate makes it imperative to make sure you have a plan so that your estate goes where you want. “That’s where it really becomes important to work closely with the families and understand the family dynamics,” Steffes says. “Investments come into it, too, as far as what’s the best asset to transfer. If the client wants to make a gift, we’re going to visit about what are the best assets to transfer and what’s the best way to do it. If they want to give to a charity, appreciated stock and/or a charitable rollover may be the best decision."

BY THE NUMBERS

$59 TRILLION

Over the next six decades, it is estimated that $59 trillion will be passed on to heirs, charitable giving and estate taxes in 93.6 million American estates.

ELVIS SHOWS YOU WHY IT’S IMPORTANT TO PLAN AHEAD

WHY YOU SHOULD CARE Steffes says wealth transfer is a very complicated matter and that each circumstance is different, but it is an important topic because there are ways to make sure your legacy is passed on through smart planning. With the right planning, you can make sure your estate is passed down to the next generation. One of the best ways to avoid these high estate taxes is through charitable giving. • Elvis passed away with an estate of more than $10 million • He had to pay more than $7 million in taxes and fees upon his death • Because he didn't plan ahead, about $2.7 million of his estate went to his heirs, with 73 percent going toward taxes and fees * Example courtesy of Dakota Medical Foundation

$26.91 TRILLION

NOVEMBER 2016

“The one thing that surprised me is that people tend to be more charitable than we give them credit for,” she says. “Even when they aren’t in that situation where they have a taxable estate, they still have an interest in making charitable gifts. I think it’s about fulfilling their own personal wishes, and it’s not just about tax avoidance. It’s about carrying on that legacy.”

Steffes gives an example of an estate plan that she is currently working with. This person is giving 30 percent of her estate to a charity, though she doesn’t have any estate tax concerns. According to Dakota Medical Foundation, the total potential for wealth transfer to charities is $26.9 trillion over the next 50 years. It’s also important for everybody to be aware of the estate-tax laws because, although the federal exemption is so high right now at $5.5 million, it can easily change. Back in 2004, the estate tax exemption was only $1.5 million. Depending on the results of the election, Hilary Clinton would propose lowering the federal exemption to $3.5 million and the tax rate would increase to 45 percent, and Donald Trump would propose eliminating the estate tax.

Dakota Medical Foundation estimates that $26.91 trillion of the $59 trillion wealth transfer will go to charity

TAKE

TIO N

ABOUT THORESON-STEFFES

Thoreson Steffes is a trust company in Fargo that works on asset allocation, portfolio construction, equity management and much more. They pride themselves on having fewer clients but with larger amounts of wealth and greater planning needs. thoresonsteffes.com 210 Broadway N, Fargo 701-478-3341

WE WILL GET IT

D O N E !

here has been a great deal of discussion—both private and public—regarding the recent decision by the Minnesota Department of Natural Resources (DNR) to deny a permit for a dam on the Red River—a dam designed to be a major component of the Fargo-Moorhead Diversion Project. This decision not only flies in the face of facts gathered by the U.S. Army Corp of Engineers over an eight-year time period, but it is also contrary to the DNR’s own Environmental Impact Study (EIS) of the Diversion.

BY Craig Whitney

The best response to the DNR’s decision to deny the dam permit can be found in the United States Army Corps of Engineers news release, issued shortly after the ruling was announced. “Sandbagging should not be viewed as a long-term solution for any community and certainly not for the Fargo-Moorhead metropolitan area, where the Red River of the North has exceeded flood stage in 51 of the past 113 years,” says Col. Sam Calkins, St. Paul District commander. “The potential loss of life and economic devastation that would result from a failure of emergency measures are not acceptable risks.”

Craig Whitney is the president and CEO of the Fargo Moorhead West Fargo Chamber of Commerce. 58

NOVEMBER 2016

Yes, the Minnesota DNR’s answer to devastating floods that affect both sides of the Red River of the North is sandbags. A majority of us remember the economic and emotional toll that sandbagging and

other defensive methods took in the years in which we had major flooding, particularly the near catastrophe of 2009. And for those who were not here during those difficult times, there are plenty of images and stories available from that time. I’m sure it would take no time at all for someone to find a flood victim with a frightening story to share. The good news is that the U.S. Army Corps of Engineers is dedicated to moving forward and getting the project done and will shortly award its first construction contract. The Corps believes—and our business community agrees—that in all the years

PHOTOS BY J. Alan Paul Photography and courtesy of FMWF Chamber of Commerce

working with the parties affected, including in great detail with the Minnesota DNR, the Army Corps has chosen the right project that will guarantee that a major flood event in our region will be as manageable as it now is for our neighbors downriver in Grand Forks and Winnipegâ&#x20AC;&#x201D;two communities in which it took major disasters to get the protection they need. I would hate to think that we need the evacuation of 90 percent of our population, water flowing in the streets and buildings on fire in our downtown to get things done. We have the right project to ensure that this

never happens, and we are on the verge of the right funding. In last monthâ&#x20AC;&#x2122;s column, I discussed a fair funding method to getting this done. With no new taxes, we can make the difference needed to pay for the FM Diversion and in one of the fairest ways possible. By extending sales taxes for both the City of Fargo and Cass County, we not only include those who will benefit from the Diversion today but future generations who will benefit most from it down the line. In addition, the

sales taxes will stay at the current levels they are today, allowing us to avoid costly flood insurance increases and eliminate the need for floodrelated property taxes and special assessments. And if the project is paid for before 2084, the taxes will expire. Permanent flood protection is so important that I want to close this month with the same call to action as last month. Vote "yes" on both Cass County Measure 1 and City of Fargo Measure 1.

BRINGING BACK THE

BLACK By Mike Allmendinger

Rendering courtesy of JLG Architects

ince several hundred people gathered to watch its cornerstone placed on November 17, 1930, Downtown Fargo’s Black Building has captured the imaginations of North Dakotans. The eight-story, art-deco towerwrapped with banks of large windows in intricate cast-iron frames, would serve as the bustling center of commerce of Fargo for decades. As Kilbourne Group and the Black Building’s many long-standing tenants embark on writing the next chapter for the iconic landmark, we are inspired by its storied past.

NOVEMBER 2016

An exclusive rendering of the new Black Building. The redesigned space will feature more than 70,000 square feet of office space and nearly 30,000 square feet of retail space. George M. Black, proprietor of the Black Building, was an experienced merchandiser, having grown up in the business. His father, Leslie Black, had emigrated from Ireland in the 1860s and set up his first store in Parsons, Kan. As a young boy, George worked long hours in the store-cleaning, stocking shelves and taking care of customers. When he and Leslie decide to seek out new locations in which to set up a chain of stores, Fargo happened to be a train stopover. “A beautiful day in May, 1912,” reads the autobiography of George Black. “Lots of women out shopping. I visited the stores Herbsts, deLendrecies, and Moody’s. They were busy. Prices were good. It was an exhilarating experience.”

Mike Allmendinger General Manager, Kilbourne Group kilbournegroup.com 210 Broadway N, Fargo 701-237-2279

George Black arrives in Fargo and purchases 112 Broadway.

BLACK BUILDING TIMELINE

Sears store opens for business in Black Building Sears relocates to West Acres Mall

Black Store sold to Sears Construction of Black Building

1912

1929

On June 12, 1912, The Black Store opened at 112 Broadway.

Gold Dollar Sale, in which each purchase came with a free dish of ice cream. If a lucky customer found a capsule in their ice cream, it would mean a prize up to a five-dollar gold piece. As the depression of the 1920s intensified, more and more stores were consolidating or

1931

1972

closing. George was in New York on October 29, 1929, to witness the stock market collapse, an experience that prompted him to sell The Black Store in Fargo to Sears, Roebuck. He would use the proceeds of the sale to build the Black Building.

NOVEMBER 2016

Kilbourne Group purchase of Black Building

2016

“During the erection of the new building, it was my duty to keep the store going. Departments would have to be moved from one place to another as construction proceeded. Business must be kept intact.”

Judge approves sale of building to DTL, Inc.

1993

Ads for the building boasted that if all of the electrical wiring and piping in the building were placed end to end, it would reach from Fargo to Ulen, Minn., or a distance of 32 miles.

Again, from George Blacks autobiography:

City-issued bond backing the 1986 deal defaults

1990

Fargo construction company TF Powers called the Black Building its masterpiece. Other superlatives used to describe the structure: "center of activity flooded with merchandise," "the pride of Fargoans," and "veritable cathedral of business activity."

Building sold to local investors

1986

The basement and first and second floors would be home to the new Sears store. The remaining six floors would be the most modern, professional office space the city had seen. The top floor was dedicated to the well-appointed studios of local radio station WDAY and would be the scene of many live performances over the years.

Empty Sears area renovated into Elm Street Square

1975

George ran a successful store and continuously expanded its footprint along Broadway. He became well-known for throwing turkeys off the roof to celebrate Thanksgiving, originating a “one-cent sale” and the unique

1930

The caption of a 1934 photograph of the Black Building lobby reads: Today, as the building nears 90 years old, Kilbourne Group begins the most extensive renovation the Black Building has ever seen. Our first step was to have the building added to the National Registry of Historic Places, ensuring its care for decades to come. Historic details that will be refurbished include ornate elevator doors, terrazzo flooring and marble baseboards. Kilbourne Group’s vision is to return the Black Building to its rightful place in Fargo’s history as a destination unto itself. The Black Building will remain true to its use as retail and office space. Our goal is for it to serve as an anchor of the Downtown Fargo restaurant and retail district. As a tribute to our shared history, we hope the Black Building will again be a celebration of unique, local, authentic offerings and uniquely Fargo experiences. Office space will be efficient, with shared amenities such as conference rooms, break rooms, restrooms, etc. The Black

“The above photograph, although it does not do it justice, gives one a reasonably accurate conception of the size and beauty of the luxurious entrance lobby to the office part of the Black Building. More than 4,000 people visit this lobby daily.”

Building will offer the opportunity to work from a historic tower of commerce with its sweeping views of Downtown Fargo, which today is hailed as a tech hub. Smart re-use of the building’s infrastructure to suit the needs of today’s retailers and business professionals-along with care and attention to historic detailshas the potential to once again draw thousands of people into the building each day and add to Fargo’s vibrant downtown. We look forward to celebrating the revitalization of Downtown Fargo's iconic Black Building with you!

7 The

NOVEMBER 2016

most common commercial real estate questions I get asked

or the November issue, Fargo INC! asked me to address some of the commercial real estate questions, issues and concerns that I run into most frequently. I came up with seven, and while most of the answers are more complex than the shortened version I provide here and vary with individual circumstances, I did my best to summarize them below. BY Dan Hicks, Commercial Agent, Property Resources Group | PHOTO BY Paul Flessland

ABOUT DAN HICKS

Dan Hicks is a commercial agent with Property Resources Group in Fargo. You can learn more about him at propertyresourcesgroup.com

What is the best location for my business?

It varies for every business. It’s true that location is everything, but for some people that means being on the outskirts of the city versus a primary street with heavy traffic counts. The better the location, the higher the price, and thus you need to know that your business can afford the location and if that location is going to create greater sales for your business. If you are a destination or a service industry, you can save money by choosing a location not on the primary streets in the city. For example, a trucking company’s biggest location factor is access. For some businesses, it should be proximity to workforce, and for others, it should be traffic counts and retail climate.

How many years should I sign a lease for?

This is usually a point of negotiation between the tenant and landlord—often with the tenant wanting a shorter term than the landlord. Shorter is not always better. As a tenant, you want to secure your space for as long as you know it will continue to work for your business. If you find a landlord who is willing to accept a one-year lease, it may be hard to get further concessions, such as fit-up dollars, which may be more important to you than the shorter lease term. You also want to have extension options in your lease. I know a number

of businesses that have lost their space to an expanding neighbor because they had a short-term lease without options to extend. Ultimately, the term is just one piece of the puzzle that you need to consider when signing a lease.

What is the average price-per-square foot (PSF) for commercial space?

There are averages to use, but it varies by property type and subcategories. You have to define your wants and needs before an average can be determined. For example, brand-new, high-end office space (Class A) can be more than $20 PSF, whereas slightly older office space off the beaten path (Class B) can be $14-$16. Class C can be $12 PSF or less. Retail can be $16-$32 PSF for the most desirable locations. Industrial pricing varies from $5-$12 but is valued based on size of lot, access, side-wall height, loading docks, etc.

What do CAM, NNN and Gross mean when looking at lease space?

A triple net lease (NNN) means taxes, insurance and maintenance are paid by the tenant. These costs are sometimes also referred to as common area maintenance (CAM) fees or operating expenses. In an NNN lease, the tenant pays a base rate and then pays all expenses associated with the space. NNN fees are often referred to as CAM fees when a property is rented to multiple tenants. These fees can range

LOCATION?

DEVELOPERS? INVESTMENTS?

from $1-$8 PSF so it is very important to understand what is included in the CAM fees and how much it is going to cost your business as it is an additional expense on top of rent. CAM fees fluctuate from year to year based on the actual expenses the property incurs. The details should be spelled out in the lease, but both parties should also have a common understanding of these terms. Absolute NNN leases are not all that common across all property types— most often it is an NN, or modified net lease. Modified net leases usually split up the maintenance obligations between a landlord and a tenant. For example, if the roof leaks or needs to be replaced on an absolute NNN lease, the tenant needs to pay to have it fixed or replaced. Often in modified net leases, the landlord agrees to take care of the structural components of the property, and thus the landlord would pay for that expense. In a gross lease, the tenant pays a set monthly rate for the space, and the landlord pays all real-estate expenses. Sometimes, but not always, this rate includes utilities.

Do developers work with commercial realtors or do they work directly with business owners? Most developers have a sales team, which is often composed of licensed commercial realtors. Some developers do the leasing and/or sales themselves or have an internal sales team. Holding costs are what can turn a profitable development into a non-profitable development. Thus, the goal once a property is developed is to get the

NOVEMBER 2016

lots sold or buildings leased. Many developers use realtors unless they themselves have the time and resources to handle the project.

How do I get started in investment real estate?

The best advice I can give is to be ready to invest. 1) The beginning of the process is talking with your banker. Discuss the max purchase price that you and the bank are comfortable with. Often the primary factor behind this is the amount of money you will have for a down payment. The bank will also have other requirements on the performance of the property. 2) Find a real-estate attorney you would like to use when it comes time to prepare and review contracts. 3) Find an accountant who is wellversed in real-estate accounting. If you don’t have a contact for these professionals, ask a friend, family or business associate for a referral to someone they have done business with. You can start your search at anytime in this process. However, having a team in place is going to be critical to a successful transaction. Good investment properties will not remain on the market very long. When you see a property of interest, you will want to be able to move quickly while still protecting yourself. Having the right people on your side is key.

When is the right time to sell my business?

This is often a question that a business owner should have asked a few years in advance. It’s hard to consider selling when business is going well and expanding, but it is a better time to sell than after the business peaks and starts to decline. Many business owners ask this question at retirement age, which doesn’t always line up with the right time to sell. You want to start planning an exit strategy approximately three years before you plan to sell if this is an option. This gives you time to train key employees to take over tasks currently handled by the existing owner. It is a lot easier to sell when a buyer has trained, reliable people in place rather than jumping into a business where the exiting owner is the main person who knows the entire business. This period also gives you time to make sure your accounting is being done correctly and in a format that a buyer and buyer’s council will want to review prior to purchase. Business sales often take an extended period of time. It is best to research selling—even before you are ready to sell—whether for retirement or other reasons.

TAKE

TIO N

PROPERTY RESOURCES GROUP Dan Hicks

dan@prgcommercial.com 4265 45th St. S, Fargo 701-356-8888

WHERE ARE THEY NOW?

DAN FICEK W

hile we at Fargo INC! love to celebrate the people making the FargoMoorhead community a great place to work and start a business, the fact is that we can't keep 'em all. Dan Ficek is a 2007 graduate of Fargo North High School and, for the last four and a half years, has been working in Seattle as an engineer for Boeing, the world's largest aircraft manufacturer. We recently caught up with the Fargo native to get a glimpse into what a typical day designing airplanes is like and to see what he likes most about life in the Pacific Northwest. By Nate Mickelberg Photos courtesy of Dan Ficek

NOVEMBER 2016

now using North Dakota State meat department beef

BURGERS. BEER. BISON.

1414 12th ave N • herdandhorns.com • 701.551.7000

I LOVE THE FACT THAT THE PRODUCT I PRODUCE IS TANGIBLE AND VERY EASY TO SEE."

NOVEMBER 2016

IF YOU'RE THINKING THIS "I don't understand our books." "I have no idea how much money we're actually making."

NOVEMBER 2016

"I can't see the future."

YOU MIGHT NEED THIS INSPECT WHAT YOU EXPECT Why a virtual CFO might be just what you need to get out of no man's land Too big to be small and too small to be big. That's how Eide Bailly's Jim Ramstad describes most of the businesses he works with. "They're businesses who have some experience and have been in operation for a while," explains Ramstad, who has

more than 45 years of business-consulting experience. "They've had some ups and downs, and although they need a full-time CFO, they can't afford one."

don't have is the resources to get things implemented. They don't have the time themselves and they don't have the people with the right acumen to be able to do it.

Ramstad works out of the Fargo Eide Bailly Possibilities Center and is what's known as a virtual CFO. If you've never heard of a virtual CFO, you're probably not alone and shouldn't feel bad, as the concept is a relatively new one.

"That's where we come in. Because we can implement change and help them go through all of the strategic planningâ&#x20AC;&#x201D;figure out where they are, help them get their accounting set up and take them from where they are today to where they want to be tomorrow. Because there's a gap there of where they're at and where they want to be."

Ramstad explains where the need for a virtual CFO often comes from. "From my experience, business owners know 90 percent of what's working and what isn't working," Ramstad says. "But what they

With Ramstad's help, we've come up with a short questionnaire to help you figure out if your business could benefit from a virtual, or outsourced, CFO's services. 75

Question 1

Does your business fall into one of these categories? $2-$5 Million Annual Revenue

This business is going through the phases of growth and making a whole turnaround. It's asking itself, "How do I get to the point where my business model is scalable?"

$6-$25 Million Annual Revenue

This is a company going through exponential growth and wanting to create a new market or reinvent itself. It needs a trusted adviser for when it starts to ask, "How do we get from here to here?"

$26 Million or More Annual Revenue

These companies are well into growth mode but still could potentially need a resource and aren't ready to hire one full-time, in-house. "What I do is what a business would hire an in-house CFO for," Ramstad explains. "The distinction, though, is the cost factor. There's a point at which they get big enough that they need to have their own internal CFO in place. And it's typically right around that $25-$30 million range." However, this is not a hard-andfast rule based on revenue. The Possbilities Center also sees several other factors contributing to the decision to bring a CFO in-house, including complexity of the business, future growth plans and more.

Eide Bailly Virtual CFO Services*

·· Management of financial infrastructure - accounting, treasury, finance ·· Financial, business, and strategic planning and implementation ·· Profitability analysis by service or product line ·· Cash-flow management and projections

·· Private equity and debt financing ·· Analysis of equipment purchases, expansions and critical business decisions ·· Bank financing and investormeeting preparation ·· Audit preparation and liaison with audit firm

Question 2

Is your business in one of these stages of growth?

·· Key metric benchmarking and trend analysis ·· Accounting software selection and implementation ·· Financial and operational improvement plans ·· Transitional planning ·· Education and training for current accounting staff

*Management is in control of what CFO functions they want to have outsourced. From the list above, together you will establish which tasks you'd like outsourced, expected deliverables with completion dates and estimated time involved.

NOVEMBER 2016

1. Formulation

This is when you formulate everything, put your business plan together and put your target market together.

2. Concentration

"Concentration" is the stage during which you implement what you put together during formulation. You see what works and what doesn't work, particularly with your business model and marketing.

3. Momentum

Once you stop chasing the customer and the customer starts coming to you, you're in "momentum." Once you get into "momentum," you start growing exponentially. This stage can be very tiring because typically the entrepreneur is the person doing a lot of the work.

4. Stability

After you get through "momentum," things stable off and you enter into "stability." This typically happens around $2-$5 million and is the point at which you have to decide what you want to do.

5. No Man's Land

This is where you have to decide whether or not your company is scalable. You have to figure out: as I grow and go from $5 million to $15 million, can my current business model take me there? Then there's, of course, the money. You can get it from a bank, investorsâ&#x20AC;&#x201D;either as a loan or equityâ&#x20AC;&#x201D;or you can grow through revenue. *Note: Stages of growth from Doug Tatum's "No Man's Land."

Do you want to grow? Do you want to stay the same? Do you want to sell? There are decisions to be made. If you want to take things to another level, then you enter into "no man's land."

Recommended Reading

Getting NAKED Business writer Patrick Lencioni illustrates the principles of inspiring client loyalty through a fascinating business fable. He explains the theory of vulnerability in depth and presents concrete steps for putting it to work in any organization. The story follows a small consulting firm, Lighthouse Partners, which often beats out big-name competitors for top clients. One such competitor buys out Lighthouse and learns important lessons about what it means to provide value to its clients.* *Summary from Amazon

Question 3

Do you face any of the following challenges on a daily basis? Financial Illiteracy

Ramstad: "Basically, owners don’t understand their financial statements. And they don’t know if they really trust them. A lot of them will say, ‘Jeez, I made $1,000, but I don’t have any money in the bank.’ They don’t understand how the whole flow of it works. You have to look at your balance sheet and your income statement. "

Lack of Leadership Team

Ramstad: "In the beginning stages of an organization, CEOs/owners are often alone at the top. They don't have the resources to hire a full C-suite, but the advice these individuals offer is vital to the growth of an organization. Virtual CFOs can help round out the leadership team. They provide a sounding board to help an owner be heard. They also serve as their advisory partner."

Ramstad's 5 Things That Separate Virtual CFOs from In-house CFOs 1) We have to have the “heart of a teacher” as we are always teaching and coaching. We are not out to build an annuity for our service and want the client to become self-sufficient. Then, we can become a more-trusted business advisor.

virtual CFO is often cheaper— think no insurance costs, unemployment benefits, etc. Not to mention, you are only paying for the CFO time you need. Plus, you won't have to deal with the transition if an in-house employee leaves.

2) Virtual CFOs work alongside a client to help them understand their day-to-day operations and finances. But above and beyond that, we can take some of the burden off the client in a difficult situation, allowing them to prioritize working on their business rather than in it.

4) We help the entrepreneur with the anguish of running a small-tomedium-sized business. By providing them with solutions, they can make moreinformed decisions.

3) Because you're not actually employing them, the cost of a

5) We serve businesses as their resource hub. Collaborating with management, we develop solutions and create value for the entrepreneur's specific needs.

Unclear Direction

Ramstad: "Owners always ask, 'How do I get my team to work together? How do I get them to see a clear direction?'

"Often, small- to mid-sized organizations don't have a strategic vision set forth for their company. Or if they do, they haven't communicated it to the rest of the organization nor how they can help achieve it. One of the best ways to do this is to establish key performance indicators (KPIs) for each team member that links their daily tasks to the overall vision of the company."

No Long-term Vision

Ramstad: "Most businesses, from the time they start out fresh, don’t think about what their exit strategy is. ‘What do I want out of this? What do I want this to look like in 20 years?’ They have it in their head, but they haven’t put it on a wall. To me, it’s like a painting. What do I want this painting to look like? Do I want this blue? Do I want this yellow?’ "It's a vision. They have a vision in their head, but they don’t know how to get it out. And that’s where we come in. We draw that out of them and help them figure out what they want that painting to look like. Then, we take that vision and put it into a plan, a roadmap, that will get that vision implemented and bring people along with us."

TAKE

TIO N

If you're interested in or would just like to learn more about what a virtual CFO can do for your business:

JENNI HUOTARI

Director, Eide Bailly Possibilities Center jhuotari@eidebailly.com eidebailly.com/ebpossible 701-476-8728 79

CALENDAR

NOVEMBER 2016

BUSINESS EVENTS

PLANNING COMMISSION 2 FARGO Tuesday, November 1, 4 - 8 p.m.

Shawn Dobberstein

You can watch the meeting live on TV Fargo (channel 12). Meetings are rebroadcast each Sunday at 8 a.m., Tuesday at 4 p.m. and Wednesday at 8 a.m. cityofargo.com/calendar Fargo City Hall 200 3rd St. N., Fargo

HIGH: A LOOK AT FARGO’S 1 FLYING AIR SERVICE

Tuesday, November 1, 7:30 - 9 a.m. You see them flying overhead and bringing visitors and residents to and from Fargo all day long, but do you know all of what is happening at Hector International Airport? Shawn Dobberstein, executive director of Hector, will provide you with a full update on construction projects, terminal changes and what to expect in the coming year for local air service. Michael Lum, consultant with Sixel Consulting, will also share an overall view of the Fargo air-service market. Through data about passenger trends, fares, load factors, and popular domestic and international flights, you’ll gain an understanding into what it takes to gain air service in our region. Registration includes breakfast and is $30 in advance and $35 at the door for Chamber members and $40 in advance and $45 at the door for nonmembers.

In October and early November, the Moorhead Business Association (MBA) will host candidate forums for the Moorhead City Council election. Each forum will be at the MBA’s regular Wednesday meeting time (7:00 - 8:00 a.m.) and place (Highway 10 Moorhead Fryn' Pan). October 19 is the forum for Wards 2 and 4 with candidates Heidi Durand, Steve Gehrtz and John Rowell. October 26 is the forum for Ward 3 with candidates Matthew Kammerer and Joel Paulsen. November 2 is the forum for Ward 1 with candidates Sara Watson Curry, Cory Emerson, Daryl Moede, Raymond Schultz and Jim Steen. Attendance is free and open to all.

fmwfchamber.com Courtyard by Marriott Fargo-Moorhead 1080 28th Ave. S, Moorhead

facebook.com/MoorheadBusinessAssociation Fryn' Pan Family Restaurant 2920 US-10, Moorhead

NOVEMBER 2016

BUSINESS ASSOCIATION (MBA) CITY COUNCIL CANDIDATE FORUMS 3 MOORHEAD October 19, October 26, and November 2, 7 - 8:00 a.m.

Photos courtesy of FMWF Chamber of Commerce and United Way of Cass Clay

Michael Lum

TECHNICAL ADVISORY 4 TRAFFIC COMMITTEE MEETING

Wednesday, November 2, 4 - 5:30 p.m. You can watch this meeting live on TV Fargo (channel 99). Meetings are rebroadcast the first Tuesday of the month at 3 p.m., the second Tuesday at 8 p.m. and the third Wednesday at 8:30 a.m. cityofargo.com/calendar Fargo City Hall 200 3rd St. N., Fargo

SECURITY: YOU CAN 5 CYBER OUTSMART A CON ARTIST

Lisa Jemtrud

Heather Johnson

Rick Davis

Jesse Van Nevel

Wednesday, November 9, 11:30 a.m. - 1 p.m. Scams and fraud are all around us, even in places we least expect it. Because cyber security affects all areas of our livesâ&#x20AC;&#x201D; personal, business and financialâ&#x20AC;&#x201D;learn from experts in each of these three areas at this training. Lisa Jemtrud, director of the Institute for Marketplace Ethics for the Better Business Bureau; Rick Davis, CEO of Insight Technologies; and Jesse Van Nevel, First International Bank & Trust, will share important information regarding scams and fraud in a society where data security threats are front and center in a panel discussion moderated by Heather Johnson, business outreach coordinator at the Better Business Bureau. Registration includes lunch and is $27 in advance and $32 at the door for Chamber members and $40 in advance and $45 at the door for non-members. fmwfchamber.com Holiday Inn Fargo 3803 13th Ave. S, Fargo

ONLY RETREAT 6 FOUNDER’S November 9, 3:00 p.m. - November 11, 1

p.m. Emerging Prairie will be hosting the Founder’s Only Retreat to encourage you to invest in yourselves, create a support network and have some time away. The team at Emerging Prairie is committed to creating a meaningful experience with great food, tasty coffee and meaningful interactions. Cost: $20 - $550 emergingprairie.com/event/foundersonly-retreat-2016 Coteau des Prairies Lodge 9953 141st Ave. SE Havana, ND

Past Voices of Vision Presenters

Robert O’Neill

OF VISION: ROBERT O'NEILL 7 VOICES Wednesday, November 16, noon - 1:30 p.m.

Decorated combat veteran Robert O’Neill will bring his expertise and insights to the metro when he headlines the 2016 Voices of Vision. O’Neill’s presentation, “Never Quit: The Story of a Life Built on Successful Missions,” focuses on what he learned during his more than 400 combat missions across four theaters of war.

2015 Rudy Giuliani

2014 Terry Bradshaw

2013 Jeb Bush

2012 Joe Theismann

2011 Bob Woodward

2010 Lieutenant Colonel Oliver North

O’Neill has served America as a Navy SEAL, team leader and senior chief petty officer at Naval Special Development Group in some of the most challenging, storied and clandestine military roles of our time. A highly trained SEAL, he led the military’s most elite and was involved in our nation’s most important campaigns. Registration includes lunch and is $60 in advance and $65 at the door for Chamber members and $75 in advance and $80 at the door for non-members. Corporate table sponsorships are $750. ***Individual tickets are sold out and a limited number of corporate tables are available. To be put on a waiting list or to reserve a table, please contact Tracy at tpowell@fmwfchamber. com or call 218-359-0515.*** fmwfchamber.com Ramada Plaza & Suites and Conference Center 1635 42nd St. S, Fargo

NOVEMBER 2016

CONTROL BOARD MEETING 8 LIQUOR Wednesday, November 16, 1 - 2 p.m.

Meetings are broadcast live on TV Fargo (channel 99). They are rebroadcast on the fourth Tuesday of the month at 7:30 p.m. and the first Wednesday at 9:30 a.m. cityofargo.com/calendar Fargo City Hall 200 3rd St. N., Fargo

DOWN THE ROAD BUSINESS AFTER HOURS December 1

fmwfchamber.com Ramada Plaza & Suites and Conference Center 1635 42nd St. S, Fargo

STATE OF THE CITIES

Thursday, January 12, 8 9:30 a.m. fmwfchamber.com Holiday Inn Fargo 3803 13th Ave. S, Fargo

1 MILLION THANKS 2017

Thursday, January 19, 2017, 6:30 - 9:30 p.m.

emergingprairie.com/events Location TBD

MONTHLY MEETUPS* ··Bitcoin Meetup Edie Ramstad

··Cass-Clay Subcontractor Sales & Marketing Meetup ··Girl Develop It ··Fargo 3D Printing Meetup ··Fargo Cashflow Game Night ··Fargo Entrepreneurship Meetup ··Fargo Virtual Reality Meetup

THE BOTTOM TO THE 9 FROM TOP: ONE WOMAN’S STORY OF

ENTREPRENEURIAL SUCCESS

Tuesday, November 22, 3:30 - 5 p.m. (Social: 5 - 6 p.m.) Edie Ramstad, owner of Weave Got Maille, will share how the philosophy of helping other women has helped take her from the bottom to the top. From feeling like she would never be able to do anything to owning two milliondollar companies and helping numerous other women reach their goals and better their lives, her story is one that is inspiring and encouraging. fmwfchamber.com Avalon Events Center 2525 9th Ave. S, Fargo

··Fargo-Moorhead Content Strategy ··The Fargo-Moorhead Real Estate Investing Meetup ··Master Networks – Fargo Business Referral Group ··Mobile Meetup Fargo ··Moorhead Entrepreneurship Meetup ··Red River Valley Big Data – Midwest Big Data Hub Meetup *All meetups above (except Bitcoin Meetup) can be found at meetup. com/cities/us/58102. If interested in the Bitcoin Meetup, please contact alarson@myriadmobile.com

Fargo INC!, Fargo Monthly and GoFargoJobs.com bring you a section dedicated to careers in Fargo-Moorhead Inside you'll find CHEAP WAYS TO IMPROVE COMPANY CULTURE + JOB LISTINGS

R E E R CA R E D N I F

Photo by Ali Burke

By Ali Burke Czar of the Bar

CHEAP WAYS

Photo by Rob Burke

TWENTY BELOW COFFEE CO. Photo by Danae Moran

TO IMPROVE

COMPANY CULTURE

e know, culture is such a buzzword that it's almost become cliché. A simple Google search will yield hundreds of articles about how to create a fun and productive culture. Well, we skipped over those articles and went directly to the companies and people in town who are making their business a great place for their employees, as well as their bottom line. 86

NOVEMBER 2016

wenty Below’s mission has always been about people. The coffee is important, but our primary objective is to use it as a catalyst through which we cultivate community and make people feel valued. The value we place on people extends to both our patrons and our staff team alike. A company can run as a well-oiled machine—working in tandem and serving effectively—when well-maintained and cared for. Here are a few frugal ways we at Twenty Below care for that machine.

PEOPLE OVER PROFIT It goes without saying that a business needs profit to continue its existence, but what often goes unsaid and overlooked is that a greater importance exists. At Twenty Below, we strive not only to tell our employees that we value them but also to show it. We do this through our daily Community Lunch Hour, where we put coffee-making operations on hold at noon to allow everyone a break (which often includes some friendly table games); through potluck lunch Fridays, where both employees and customers contribute food to a communal meal; and through being closed on Sundays to offer a day of rest. These times of closure could surely be bringing in more money if we opened, but we value the times of rest they give our employees. We value the people over the profit. 2

FUN FUND A recent addition to Twenty Below, the Fun Fund is a pool of management’s tip money that’s used to fund something that the whole staff will enjoy (e.g., a pizza party or a camping trip.) So instead of management pocketing the tips accrued while they work on the coffee bar, it was unanimously agreed upon to put that money toward something that would benefit everyone.

NON-WORK STAFF FUN TIMES We’ve found that our team feels most connected and rejuvenated when we spend time together outside of work engaging in fun activities. For us, this looks like picnics in the park, campfires, movies together, grill outs, and, most recently, camping. Our annual staff camping trip just took place, and it was a blast! Living life together and building our relationships is undoubtedly worth the effort. 4

SNAP CUP Based on a sparkly idea from "Legally Blonde", our team has a Slack channel dedicated to encouraging and uplifting one another with praise and warm fuzzies. Praise that’s unspoken is no praise at all, and our aim is to ensure that each employee is valued, that hard work never goes unappreciated or overlooked. 5

OPEN COMMUNICATION, SOLICITED FEEDBACK AND VALUED OPINIONS A complaint commonly associated with job dissatisfaction is that employees don’t feel heard or listened to. We hope that’s never a complaint associated with our company. In order for our leadership team to avoid this blunder, we encourage direct communication, quarterly employee reviews, and an open feedback loop where employees are encouraged to ask questions and poke holes in our ideas rather than remain silent with discomfort.

By Jack Yakowicz, Marketing Manager

OFFICE SIGN COMPANY

hen I first applied for a job at Office Sign Company, I knew nothing about signs. In fact, I hardly knew anything about what Office Sign Company did (I suppose the name of the company was a bit of a giveaway, but still, I had no idea). I found out about Office Sign Company at the 2015 FMWF Chamber Luncheon. I was working for a different company at the time, and Office Sign Company ended up winning "Small Business of the Year". Listening to Ryan’s (Fritz, founder) speech, and viewing the slideshow of images playing behind him, I was pretty amazed by how culturecentric this young company seemed. For companies that are budget-conscious, it may seem even more difficult to obtain the culture that your employees are yearning for. Trust me, that is just a misconception, and any money you do spend on culture is well-spent. Here are a few low-cost initiatives that we implement in our company to ensure that our culture is accounted for and that our employees are happy.

Photos by Bri Lee, Marketing Graphic Designer at Office Sign Company

POTLUCKS We like to eat. Why not reward that with a potluck? Our team of creative employees has quite a bit of culinary skill, and we love to see what each person can bring to the table. We’ve celebrated potlucks for holidays such as Halloween and Thanksgiving but also for everything from new hires to Star Wars appreciation. You should have seen the Chewbacca cake that Nate brought. The keg in our downtown location only makes these potlucks even more enjoyable. 2

BEING RESPONSIVE TO FEEDBACK An important learning lesson is that culture should be led by every individual within the company, not just those at the top. That way, everyone’s voice is heard and events are being planned that benefit the entire group. For this reason, every week we pose a random question to our team on a platform that allows them to reply anonymously. This ensures that we get the most-honest feedback from our team, and we can incorporate great ideas from every single person. Oftentimes, these ideas that are brought to light by employees end up being put in place.

OFFICE OLYMPICS In August, we held our OSClympic games. Our two locations came together at Gooseberry Park in Moorhead to compete in the first annual OSClympics, and it was an absolute blast. We shut down at 1:30 on a Thursday afternoon, put on our uniforms and headed over to compete. Six teams played games such as water balloon dodgeball, touch football, team relay and more. Regardless of athletic skill, everyone had an awesome time coming together as a unit, and our medal ceremony at the end of it really capped things off well. 4

CULTURE-BASED SOFTWARE At Office Sign Company, we use specific software in-house to help boost culture. TinyPulse, for example, is used to send “Cheers for Peers” to individuals in various teams that went the extra mile and helped each other out. Podio, our internal social media, is used to post events, customer testimonials, jokes and other musings from our days at the office. These really help to create a further sense of togetherness among our team members, especially now that we are split between two separate locations. 87

By Katie Hutton Marketing Manager

EIDE BAILLY

E Photos courtesy of Eide Bailly

ide Bailly LLP is a top 25 CPA firm in the nation, headquartered right here in Fargo. The home office houses almost 300 staff, including the firm’s administration team. Eide Bailly’s list of services boasts both compliance (we’re talking audit and tax) and consulting services (health care consulting, technology, forensics, outsourced CFO services and more) to help clients succeed. Equally important to the firm is the well-being of its staff. Eide Bailly was recently named one of the "50 Best Places to Work" by Prairie Business. The firm’s culture is the foundation of what it does, and that includes having fun along the way.

CELEBRATE SPECIAL OCCASIONS IN UNIQUE WAYS Following the recent promotion of one of our staff members, email “challenges” were sent out daily for a week celebrating different milestones and accolades leading up to her promotion. Even simpler, we recently had another staff member get engaged. We celebrated by giving her the opportunity to share her engagement story over coffee and water at the water cooler. Making employees feel appreciated goes a long way toward creating a positive company culture. 2

GET MOVING With more employees wearing technology to get fit, try incorporating challenges into your workspace. Eide Bailly’s Health Smart Committee created charts for staff to record their activity or steps for the week. Winners were chosen on a weekly basis and, in turn, received a health-themed reward. Creating motivation coupled with friendly competition all while bettering our health and wellness!

CREATE FUN CHALLENGES Setting and achieving goals plays an important role in a business’ success. Set a goal and the team that achieves that goal first receives coffee or lunch. Food can be inexpensive but incredibly motivating. But you can even take it a step further and have fun with the type of work you do. Annually, Eide Bailly holds a 10-key challenge, allowing anyone to participate in a March Madness-themed bracket for the fastest and most accurate 10-key skills. The winner receives (we’re not joking) a golden 10-key. Plus, staff fill out brackets and there is a prize awarded to the person who gets closest to guessing the correct bracket.

MAKE FUN EASY Create a culture where there’s not just work but also play. At Eide Bailly, our breakroom contains foosball and air hockey tables along with gaming equipment. It doesn’t have to cost money or take time away from work either. We have an annual Halloween costume contest and “Festive” holiday sweater days to ensure we keep it light yet fun. 5

GO FOR A WALK Allowing your staff to conduct meetings outside of the office allows for collaboration and a change of scenery. At Eide Bailly, our professionals are often seen walking the paths around the building together or grabbing lunch and coffee. Getting out of the office has proven to increase motivation and boost morale.

By Leah Baker

STONERIDGE SOFTWARE

Photos by Paul Flessland

CONSISTENT & EFFICIENT MEETINGS What? Another meeting? Meetings might not sound like an innovative way to assist in establishing a great culture. But, with two offices 300 miles apart and many employees that work from home, it’s how we connect as a company and ensure that everyone is kept abreast of what’s happening. We have regular all-company team meetings every Friday. The team gathers in conference areas in our Barnesville and Minneapolis offices and anyone working from home or not in the office calls in. We start each meeting with employee recognition for demonstrating our company values. Business and project updates are covered as well as good news, best practice stories, company reminders and a Q & A session – all in 20 minutes. Each manager also has a recurring periodic one-on-one with each of their team members to check in, discuss goals and address concerns. Departmentally, each team has a periodic “Level 10” meeting to cover what’s happening across the team in a broader sense. These meetings are strategic in focus and follow a consistent format, keep everyone informed and head off any issues before they become problems.

NOVEMBER 2016

BEER & PIZZA Nothing brings people together like food. We have a standing Thursday date at noon at the local pool hall. Everyone knows this is the day when the entire team goes to lunch together. Those who work from home or in other offices often make an effort to stop in on Thursdays to make sure they have the chance to hang out with the team. We also hold summer grill-outs and themed potlucks. A few fun potluck themes we’ve enjoyed: bacon, soup and Oktoberfest. 3

OFFICEVIBE (OR ANY ANONYMOUS FEEDBACK GATHERING TOOL) Everyone has a voice and wants to be heard but not everyone has the courage to speak up at the office. We use a web-based tool called Officevibe, which sends out a short weekly questionnaire to each person to answer anonymously. Any effort to provide this option in a company would be valuable, even if it were a piece of paper in a suggestion drop. Providing a channel for anonymous feedback gives everyone a voice and gives the company leadership a chance to keep a pulse on the morale of the team. We have gotten very valuable feedback from the team and use the reporting features of the software to identify areas we need to dedicate time and resources to.

WELLBEING A well-received effort has been our focus on employee well-being. Our Healthy Dynamics committee sponsors a different “challenge” each quarter to encourage weight loss, physical activity, healthy eating or meditation. It encourages the team to be mindful of our health and provides a little friendly office competition. Healthy snacks are stocked for purchase and company-sponsored meetings must always include a healthy option. Employees appreciate that the company cares about each person’s physical and mental health and not just their output at the office. 5

RECOGNITION Gratitude goes a long way and it's 100 percent FREE. Our company has a “Kudos” page on our SharePoint site where team members can enter in their thanks or congrats for a coworker’s job-well-done. New entries are highlighted at the weekly allcompany team meetings. Work anniversaries are recognized each quarterly company meeting. And our annual company meeting features the “Stoneys,” which are peernominated nonsense awards such as “Most likely to leave the water cooler empty” and “Most understanding of millennials.” Some of these are a well-placed pat on the back and the others encourage light-hearted fun.

Construction

Health Care

Construction Positions

Registered Nurse

A.M.P Contracting is looking for individuals to work with crew members in creating their company's vision in a safe and efficient manner. Responsibility and supervisory skills increase depending on the role.

Prairie St. Johnâ&#x20AC;&#x2122;s, a 110-bed psychiatric care facility located in Fargo, has been providing services for children, adolescents, adults, and seniors to address mental health issues, chemical dependency, or addiction and cooccurring disorders since 1997.

Apply:

West Fargo, ND

Visit bit.ly/ampcont

Digital Strategy Intern (Paid) Construction Foreman

West Spotlight Fargo, Media ND

Email PSJHR@uhsinc.com

Therapist

Fargo, ND

A.M.P How Contracting do I apply?is looking for a working foreman to direct and work with crew members in creating their company's vision in a safe and efficient manner. Responsibility and supervisory skills increase depending on the role. Pay is based on experience.

Prairie St. John's currently has a full-time therapist position available working with children, adolescents and adults. This is a nine-month position (September-May).

Apply: Visitatbit.ly/ampcont2 more info SPOTLIGHTMEDIAFARGO.COM

Apply:

Marketing/Advertising Digital Strategy Intern (Paid) Marketing Position

Fargo, Spotlight ND Media

HowTransfer do I apply? Heat Warehouse is an e-commerce wholesale distributor of garment material. They are looking for an experienced marketing person to help with email marketing, social media, content, and other marketing duties and channels. Apply: moreVisit infobit.ly/htwmarketing at SPOTLIGHTMEDIAFARGO.COM

Digital Services Coordinator

Fargo, ND

Email PSJHR@uhsinc.com

Management Store & Assistant Managers

Fargo, ND

Petro Serve USA is looking for qualified individuals who have integrity, can provide outstanding customer service, are eager to learn, and can consistently and respectfully work as a team member. They offer competitive pay, benefits, 401(k), paid vacation and sick leave.

Apply:

Visit bit.ly/PSUSA17

Digital Marketing Strategy Intern (Paid) Digital Specialist Spotlight Media

Fargo, ND

This position is responsible for supporting the work and improving the efficiency of the digital department. This position falls within the digital department of the marketing and communications division and aligns with the work of the virtual Online Patient Experience team.

The digital marketing specialist is responsible for promoting Essentia Healthâ&#x20AC;&#x2122;s brand and strategic marketing priorities within the online arena through display, search and social media advertising, and relationship marketing.

Apply:

Apply: Visit at bit.ly/2egwxyx more info SPOTLIGHTMEDIAFARGO.COM

Visit bit.ly/2eePDUs

NOVEMBER 2016

How do I apply?

gofargojobs.com

Customer Service

General

Digital Strategy Intern (Paid) Career Opportunities

Digital Strategy Intern (Paid) Leasing Specialist

Digi-Key is currently seeking detail-loving, passionate employees to join their Inbound Sales and Product Distribution Center (PDC) teams. If you enjoy providing superior customer service or working in a fast-paced environment, apply now to find your new career today!

How do I apply?

Goldmark strives to make a positive impact on the lives of others. An opportunity is available to serve those looking for or living in apartment homes we manage. They are accepting applications for caring and dedicated candidates for full-and part-time positions with opportunities for advancement.

Apply: Visit at www.digikey.com/careers more info SPOTLIGHTMEDIAFARGO.COM

Apply: more info Visit atwww.goldmark.com/careers SPOTLIGHTMEDIAFARGO.COM

Digital Strategy Intern (Paid) Workflow Coordinator

Digital Strategy Intern (Paid) Maintenance Technician

How do I apply?

Duties include but are not limited to: mopping, How do I apply? vacuuming, carpet cleaning, lawn care, general plumbing and electrical, general house care and meeting with contractors. Must be able to lift up to 50 pounds and pass a background check. This position is Monday through Friday 7:30 a.m. - 4 p.m.

more info atintegreon.com SPOTLIGHTMEDIAFARGO.COM Apply: Visit

more info at SPOTLIGHTMEDIAFARGO.COM Apply: Email bhalvorson@mcrsi.com

Document Processing Specialist

Digital Strategy Intern (Paid) Program Assistant

Fargo,ND ND Fargo,

Spotlight Media Moorhead, MN

This supports word processing and presentation Howposition do I apply? graphics for all projects received through Integreon. They will also be responsible for the completion of all work given to them by a workflow coordinator (WFC).

Full-and part-time positions available. Assist clients with disabilities in a variety of areas based on need, including cooking, cleaning, supervision, transportation and redirection of behavior.

Apply:

more info atbhalvorson@mcrsi.com SPOTLIGHTMEDIAFARGO.COM Apply: Email

Spotlight Thief RiverMedia Falls, MN

Fargo, Spotlight ND Media

This position manages word-processing projects by communicating with clients and assigning projects to other Integreon associates.

Visit integreon.com

Fargo, ND Media Spotlight

Moorhead, MN Spotlight Media

How do I apply?

Energy & Oil

Intake Admin Specialist

Digital Strategy (Paid) Propane ServicesIntern Technician

Fargo, Fargo,ND ND

West Fargo, ND Spotlight Media

The duties this position may range from: meeting How do I in apply? preparation, internal and external correspondence, report preparation, document and word processing assistance, and many other administrative duties as requested.

Petro USA is looking for qualified applicants to be HowServe do I apply? a member of their team. They offer competitive wages, medical benefits, paid vacation, holiday and sick days. Qualified individuals have 2+ years of propane service experience. CETP certification is preferred.

Apply:

Apply: Visitatbit.ly/PSUSA16 more info SPOTLIGHTMEDIAFARGO.COM

Visit integreon.com

NOVEMBER 2016

gofargojobs.com