2 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
In This Issue:
RURAL RETAIL: • Don’t put all the blame for decline on big-box stores/Page 3.
Getting Started:
WOMEN IN BUSINESS:
• Independent grocers adopt modern practices to compete/ Page 5.
COMMENTARY:
• Study: Businesses cautious in 2010/Page 21.
HEALTHBEAT:
• Discover tourism’s benefits/Page 24.
• Safety starts from the neck up/Page 36.
• New industrial park signs considered crucial for potential development/ Page 26.
ON THE COVER: Tony Laudner owns Dugan’s Supermarkets in Rockwell and Sheffield. Independent grocers like Laudner know they must adopt modern practices to compete with chains. Photo by BRYAN HOULGRAVE of the Globe Gazette
In Business: Vol. 8, No. 3, September 2010 Publisher: Howard Query 641-421-0500 howard.query@globegazette.com Editor: Joe Buttweiler 641-421-0542 joe.buttweiler@globegazette.com Managing Editor: Tom Thoma 641-421-0566 tom.thoma @globegazette.com Associate Editor: Jane Reynolds 641-421-0564 jane.reynolds@globegazette.com
small-town groceries, which om and pop stores in cities like have been hit particularly Mason City and Clear Lake aren’t hard by superstores. From the only ones that struggle to com1995 to 2005, Iowa lost nearly pete against bigger chain stores. half of its non-superstore Those in small communities throughout groceries, Dana Yost reports North Iowa do, too. You might say they in a story on Page 5. Survivors have double the challenge since they’re also competing with the bigger mom and pop Joe Buttweiler such as Dugan’s Supermarkets in Rockwell and Sheffield stores in the bigger surrounding towns. In Business and J&C Grocery in Allison It has been a tough go in recent years, Editor and Dumont have blended although some small towns and individual traditional small-town values with modern stores are bucking the trend. practices to compete. WHAT ARE THE KEYS to being successWe have columns on tourism by Sue Armour of Visit Mason City, on preparing for ful in rural retail? We focused this issue of In Business on finding the answers. Among tax law changes by Craig Braget of RSM them, as you’ll read in our lead story by Tim McGladrey in Mason City, on new industrial park signs by Gregg Gillman of the North Ackarman, are providing outstanding customer service, finding a niche and market- Iowa Corridor EDC and on the value of strong human resources programs. ing. I list customer service first because it is a AS ALWAYS IN SEPTEMBER, we focus huge factor in rural retail. The better you on women in business, this time with stoknow your customers and their needs, the ries on Lucy Brunner and Dodie Wilkins of more likely they’ll keep coming to you. For many rural residents, shopping local is Century 21 Preferred and on Camille Lee of Soyphisticated Candles. a big quality of life issue. They realize that For some additional news you can use, the more they support the local grocery see our HealthBeat story on Page 36 about store, for instance, the more likely it will protecting your (and your employees’) continue to be there in the future, saving eyes, ears and respiratory systems. time and money making trips to distant Speaking of health care, are you wonderstores. There’s also the corporate neighbor fac- ing what the federal healthcare reform legislation will mean to your business? We’ve tor to consider. Owners and managers of been asking a great deal about it and plan to those small businesses on Main Street are make it a focus of an upcoming edition of often the ones who contribute the most to In Business. Some of the changes are outcommunity projects and festivals. lined in our story on Page 20, although ONE OF THE STRONGER rural retail many of the questions remain unanswered. districts in North Iowa is in Osage, where OUR DECEMBER ISSUE will contain our Main Street has nearly 100 percent occupancy. It has a healthy variety of stores. annual Made in the Region list of area manThat diversity, along with loyalty and ufacturers. If your business has not hometown pride, go a long way, as you’ll appeared in this before or there have been read on Page 18. numerous changes, contact Ozzie Ohl at Although it was rocked by tough times at ozzie.ohl@globegazette.com or 641-421Winnebago Industries, Forest City’s retail 0554. If you have been listed before, you district is rebounding strongly, with seven will be contacted by mail. new businesses opening since June 2008. Meanwhile, I hope this edition of In See the story on Page 7. Business is helpful in improving your busiWe looked specifically at the status of ness and your bottom line.
M
• Forest City: Brunner (left) and Dodie Wilkins of Turnaround Lucy Century 21 Preferred in Mason City. in tough • 10 years later, no looking times/ back for Century 21 Tora Buffington of Page 7. Bookadee book store Preferred owners/Page 28. in Forest City. • Gone but not forgotten • Finding success through soy-phystication/Page 29. in Nora Springs/Page 12. • Shattering that glass • Osage: Diversity, loyalty, ceiling/Page 34. pride keys to success of downtown/Page 18. • Q&A with Beth Bilyeu, Forest City business guru/Page 35.
• Finance: Prepare your business for pending tax changes/Page 25.
North Iowa rural retail thrives with service, products and loyalty
Associate Editor: Bob Steenson 641-421-0530 bob.steenson@globegazette.com Advertising and Circulation: Greg Wilderman 641-421-0545 greg.wilderman@globegazette.com
••• In Business is a quarterly publication of the Globe Gazette. Reach us at Box 271, Mason City, IA 50402-0271 or by e-mail at news@globegazette.com.
GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 3
FOCUS: RURAL RETAIL FEELING THE PINCH, BUT ...
Don’t lay all the blame on big boxes Retail follows population and income growth, expert says By TIM ACKARMAN For In Business he face of retail is changing across Iowa, not always for the better in rural areas. But contrary t0 some beliefs, the Wal-Marts of the retail world are not entirely to blame, according to an Iowa State University official. In her role with ISU’s Regional Capacity Analysis Program, Liesl Eathington researches economic and demographic trends to assist local decision-makers Eathington throughout the state. Her research suggests a more complex picture than the popularity of big-box stores and metro shopping areas. “For several decades, retail trade activity has been consolidating into regional trade centers such as Carroll, Fort Dodge, Mason City and others, and metropolitan centers such as Des Moines/West Des Moines and Cedar Rapids,” said Eathington, an assistant scientist with the ISU Economics Department. “Iowa’s retail trade patterns have been following a long-term trend that is difficult to blame entirely on WalMart. Consolidation of trade activity has occurred in part because the state’s population and employment opportunities are also consolidating into those larger cities. Retail follows population and income growth, not the other way around.” Not all types of businesses are equally affected, she said. “Some types of retail can hang on in places with relatively few residents as long as those residents demand goods and services on a frequent basis and the goods are fairly generic,” she said. She cites taverns and convenience
T
stores as examples. “Other types of retail, including bigticket items such as automobiles and furniture, require a much larger population base to sustain,” Eathington said. Retailers of mid-sized staples such as groceries and clothing have been particularly affected by the growth of superstores in larger trade centers. While it is challenging for small firms to compete in terms of price, variety, hours and convenience of parking, Eathington said, employment factors are a major contributor to this trend as well. “A smaller fraction of people are working in the city were they live,” Eathington explained. “If a large fraction of a small town’s residents commute to work in those larger trade centers during the day, or if they travel there for their medical care or entertainment needs, it makes a lot of sense for them to shop there as well.” SOME SMALL TOWNS and individual businesses, however, are bucking this general trend. “Iowa has plenty of communities that seem to defy the odds in their ability to support a large or unique firm,” Eathington noted. Researchers have not identified a single key factor or group of factors allowing these areas to flourish. “Unfortunately, those examples can’t be generalized to provide a formula for success,” Eathington said. “If we looked at each case individually, we’d probably find a combination of factors …, but those factors can’t necessarily be replicated in some other community.” Smaller towns hosting a large employer have a distinct advantage, Eathington noted. “When you have a major employer, that brings a level of stability to the
North Iowa County Taxable Sales by Fiscal Year COUNTY Butler Cerro Gordo Floyd Franklin Hancock Kossuth Mitchell Winnebago Worth Wright North Iowa Total
FY 1976 $130.6 million 574.7 million 165.7 million 127.9 million 122.0 million 240.9 million 95.4 million 111.1 million 61.1 million 186.2 million $1.816 billion
FY 1986 $86.7 million 547.8 million 124.7 million 82.8 million 84.9 million 167.1 million 70.0 million 86.2 million 49.4 million 115.4 million $1.415 billion
FY 1996 $63.9 million 654.4 million 118.5 million 69.9 million 69.8 million 138.4 million 68.8 million 83.7 million 28.9 million 109.9 million $1.406 billion
FY 2006 $54.4 million 655.3 million 99.2 million 61.8 million 67.5 million 138.5 million 61.5 million 71.1 million 25.8 million 93.5 million $1.329 billion
FY 2009* $57.1 million 667.2 million 103.7 million 64.3 million 71.4 million 136.9 million 60.9 million 71.6 million 30.5 million 90.4 million $1.354 billion
* - Values for 2009 use a fiscal year ending June 30 rather than March 31, and thus are not directly comparable to the other values. Source: Iowa Department of Revenue
community,” she said. This has been the case in Forest City, home of Winnebago Industries. Total retail sales there (reported in 2009equivalent dollars) totaled $35.1 million in fiscal 2000 and rose to between $42 million and $46 million annually between fiscal 2001 and 2008. Sales fell
BOB STEENSON/Globe Gazette graphic
to $39.1 million in 2009, reflecting overall weakness in the economy. Those sales represented 54.5 percent of the total for Winnebago County while the city has only 37.4 percent of the total population. (Since part of Forest City lies in Hancock County, these Continued on next page
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4 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
RETAIL/From Page 3 numbers can be misleading.) Yet Forest City ranks below the median in percapita retail sales compared to other Iowa cities of comparable size located in rural counties, most likely because of its relative proximity to larger retail hubs such as Mason City and Albert Lea, Minn. In Sheffield, home of farm equipment giant Sukup Industries, sales were $3.8 million in fiscal 2000, grew to $6 million by 2003 and have averaged just over $6 million since. The city’s share of total sales in Franklin County is roughly equal to its percentage of the total county population (9.5 percent vs. 9.7 percent) while per-capita sales relative to comparable cities are near the median.
Etc.: • The retail sector, narrowly defined to include mostly the sale of consumer merchandise, accounts for approximately 6 percent of Iowa’s gross domestic product and 11 percent of Iowa’s jobs. • Sales and use taxes generate about 34 percent of total revenue to the state’s general fund. • Studies have found having access to a wide variety of products in close proximity to where they live and work is a quality-of-life issue for many.
nesses in the same specialty, making the area a destination spot for that product. For example, “If you’ve SMALL COMMUNITIES more geographically iso- got a couple quilt shops working together, they can attract people from a larger area,” Eathington said. lated from larger metropolitan centers are able to Other towns attempt to become retail destinations maintain greater retail diversity and actually serve as retail hubs. Algona saw retail sales increase from $96.1 by encouraging area businesses to market jointly. million in fiscal 2000 to just over $105 million in 2007 Promoting specialty shops, restaurants, entertainment and lodging as a total package might attract and 2008 before slipping to $102.7 million last year. more visitors than any of those individual business Algona generated 75 percent of retail sales in Kossuth County despite representing less than 35 percent types could alone. “You have to create enough reasons for people to of the population. Per-capita sales rank the city in come to the area,” Eathington said. the upper quartile of its peer group. Despite the success of a handful of businesses and Proximity to larger population centers represents both a challenge and an opportunity for small towns, Eathington said. While it is difficult for small-town shops to compete with larger retailers, “If they have something unique and special, you can draw (customers) from the bigger community.” Businesses in small communities might strive to offer a more relaxed, friendly shopping atmosphere with strong customer service, or they might delve into a niche market such as crafts, antiques or art. While it’s sometimes difficult for small merchants to compete on price, “if you’re selling something kind of special, price isn’t as important,” Eathington said. The city of Rockwell generated only $3.6 million in retail sales for 2009, only about 0.5 percent of total retail sales in Cerro Gordo County. Yet Dugan’s Market continues to thrive only 10 miles from large supermarkets in Mason City.
CITIES CAN TAKE advantage of other amenities to maintain a positive retail climate. Clear Lake sustains significant “leakage” of traditional retail trade because of its proximity to Mason City. Per-capita retail sales are below the median for comparable cities, yet downtown Clear Lake maintains a good diversity of traditional retailers mixed with higherend specialty shops catering to tourists and uppermiddle class residents. Small towns lacking such ready-made attractions as a big lake may need to engage in creative strategies. Some small towns work to attract multiple busi-
communities, however, the shift toward consolidation in retail remains strong. “Unfortunately for most communities,” Eathington said, “everything I’ve looked at this year is a continuation of the trend.”
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GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 5
FOCUS: SMALL-TOWN RETAIL
Independent grocers adopt modern practices to compete By DANA YOST For In Business opulation decline and corporate competition have affected small, independent stores that were once prominent in small towns. That’s certainly the case with family-owned grocery stores. From 1995 to 2005, the state lost nearly half of its nonsuperstore groceries. Jay Skarr said Mason City hasn’t had an independent store since he closed his J & C Grocery on South Jefferson Avenue 25 years ago. Skarr Just before that, Skarr opened independent stores, also called J&C Grocery, in Allison and Dumont and still owns them today with his wife, Carol. Both are successful, Skarr said, but sometimes he still gets frustrated. He sees corporate grocery chains building large stores in places where independents once stood. He sees large dis-
P
count retailers like Wal-Mart and Target claiming dominant positions. Hardware/lumber stores like Menard’s now sell groceries as do fleet and farm stores. And Skarr sees small-town customers’ loyalty sometimes waning. Not long ago, Skarr, 63, was invited to a local service club’s dinner where only one product from his store was served. “Sometimes,” Skarr said, “I look at my wife and say, ‘What the hell are we doing?’ ” Tony Laudner, who owns the independent Dugan’s Supermarkets in Rockwell and Sheffield, is younger than Skarr but like him has spent his life in the business. He is a third-generation owner. His grandfather, father and uncle have been owners of the Dugan’s in Rockwell.
DANA YOST/For In Business
Tony Laudner, the owner of Dugan’s Supermarkets in Rockwell and Sheffield, is a third-generation independent grocery store owner and says the five years of experience he gained working for a corporate grocer has helped him since his return to Dugan’s 10 years ago.
the traditional values of smaller stores provides an edge over superstores — more attentive and personal customer BOTH STORE OWNERS acknowledge service, fresher meats and produce, the challenges faced by today’s smallcleaner stores — they also say today’s town independent stores, but both also small-town stores need to adopt modare determined to keep their stores oper- ern practices to compete. ating — but it can’t be like the past. “Our stores are bright and clean and While both Laudner and Skarr say they’ve got new equipment,” Skarr
said. “We put tons of money back in to keep them up, which a lot of stores don’t do. “I can see if, in a little town, a guy doesn’t keep (the store) up, I can see where customers don’t want to go in there all the time. But when a guy keeps the store up, there’s no reason cusContinued on next page
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6 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
GROCERS/From Page 5 tomers shouldn’t (shop).” Skarr said. While Laudner’s family has owned Dugan’s for 53 years, he spent time away from the store — first attending college, then five years with Fareway in Clear Lake, then in southern Iowa. When his son was born, he decided to come home, not wanting to raise a family while possibly facing more corporate transfers. THE TIMING was right: As Laudner moved home, his dad was ready to sell. His grandfather had started the store and taught Tony’s father and uncle how to sell groceries. Tony began implementing things he’d learned on the corporate side. “I went out and learned how a big corporation sells groceries. Small-town groceries that keep living on that 50year-old philosophy aren’t going to make it,” he said. “You have to inject a number of new ideas into it. “Look at the small-town groceries in Iowa (that are successful). They have younger guys with corporate experience who wanted to own their own businesses. That’s why I think successful small-town, familyowned grocery stores are still going to be here. “As family-owned grocery stores, we have the best of both worlds: We get out and learn how it’s done in the corporate world, then come back and apply that to our stores, tweak things to our needs,” Laudner said. “And it’s easier to do when you’ve got one store — you can do what you want, make changes, more easily than you would with 300 stores.” Laudner bought the store in Sheffield from Skarr two years
“But as long as they make it their monthly trip and keep it at that and fill in with me, I’ll tomer bases or to target specific do fine. I know I am where sets of customers. Skarr’s J&C they go to fill in on things. Grocery Stores have their own “We definitely have our regwebsite, http://jcgrocery.com. ular customers. On Tuesday • Find ways to maximize buymornings, you’ll see the same ing power. people. On Monday after• Don’t lose the values of a noons, you’ll see the same small-town store. Pay attention people. Usually, the same peoto individual customers. ple is what keeps me and my • The publication Business business afloat.” Week advocates making a smallSkarr said he believes custown grocery store a one-stop shopping site. It also suggests tomers can be mistaken if they selling niche or local products think prices at independent and housing a bakery. stores are always higher than — By Dana Yost at the superstores. “A lot of people just perceive that we have higher prices, but tions were that small-town unless they come into the store grocers needed to increase their customer base by 15 per- that’s all they do — perceive,” he said. cent to survive, while noting Skarr scours the Internet for Iowa’s 20 most rural counties deals, often getting a lower had declining populations. Rockwell has a population of price on products he can buy by the full pallet or semi-load, and about 950, down from the 1,100 Laudner remembers from passing those savings on to customers. Like the superstores, he his high school days, but he sees bulk buying as a way to said that is not a large decline compared to other areas. keep his products affordable. Dumont has a population of His stores offer about 200 about 700 and Allison about in-store savings items each 1,000 to 1,100, Skarr said. week. He prints a four-page Laudner realizes his cuscolor advertising circular every tomers will sometimes shop at week and pays to have it inserted in local papers. the bigger stores in Mason City, and Skarr understands BOTH J&C GROCERY and small-town residents like the Dugan’s are members of the experience of an outing to a Affiliated Foods Midwest bigger store and bigger city. cooperative, their main supLAUDNER SEES his Rockplier. Affiliated has warehouswell store fitting into a system es in Norfolk, Neb., Elwood, of amenities — along with Kan., and Kenosha, Wis., and good schools, a popular golf serves about 800 stores in 16 course and a new aquatic cen- states. ter — that keep Rockwell an That gives small grocers attractive bedroom communi- more buying power than might ty for Mason City. be expected, he said — another But he needs his customers. way to help keep prices down. “The biggest thing to me is I It also gives them flexibility to know and I realize and I plan adjust to a specific customer’s on people making their order but avoid being overmonthly trip to Mason City to stocked. Customer service is get groceries,” Laudner said. something experts agree must
Tips for survival from Jay Skarr, Tony Laudner: • Keep your store clean and bright with fresh produce and full shelves. Even in tougher financial times, re-invest in your store’s appearance and equipment. • Use updated technology such as computerized inventory tracking, computerized synching of cash registers and computerized billing and accounting. • Marketing and promotion are essential. Publish regular advertisements in local newspapers, offer in-store specials, use e-mail and regular mail for direct advertising at either broad cusago. He turned it into a Dugan’s and modernized much of the operation. Laudner said inventory, sales and customer count all have risen since he bought it. This in the face of growing corporate grocery business. SINCE 2001, Wal-Mart has been the No. 1 grocery retailer in the United States and groceries have become its biggest business domestically: In 2009, grocery sales accounted for 51 percent of its overall U.S. sales of $258 billion. In 2006, according to a study by the Iowa State University Extension, Wal-Mart accounted for 17 percent of all food and beverage sales in America. At the same time, ISU said, Wal-Mart’s entry into non-metropolitan markets cut sales at other groceries in those areas by 17 percent within two years. In August 2008, ISU reported that the number of grocery stores in Iowa with employees — not sole-proprietor stores with no employees, and not counting superstores or convenience stores — dropped from nearly 1,400 in 1995 to a little more than 700 in 2005. That study also said indica-
be a focus of independent grocers. It’s one thing that sets them apart from superstores. “They’ve got the bulk and the bulk attitude,” Laudner said of the superstores, “whereas we have a much smaller scale and know just about everybody that walks in the store and know what they want. We can congratulate them on their son’s football game from the night before, and that’s the difference between us and a Super Wal-Mart.” BEING A MEMBER of the cooperative has benefits for both sides of the partnership, Laudner said. He’s a shareholder in the co-op so he wants it to be profitable, but the co-op wants to work with stores like his to keep the stores healthy — and keep its own customers intact. Yet, despite Affiliated’s advantages, it is getting more challenging to stay a member, Skarr said. Affiliated now requires its members to order shipments of at least $10,000 a week, he said. That’s a lot of inventory he needs to move each week, he said. Skarr offsets that by wholesaling some of his weekly shipment to convenience stores in Marble Rock and Rockwell. He said other vendors also want to see their products sell or they’ll stop delivering to small stores. “The vendors don’t want to drive to these small towns if we don’t buy much from them,” Skarr said. “People need to see that, too.” Both Laudner and Skarr believe there is a future for small-town grocers. “Optimistic? Oh, yes,” Skarr said. “You get down in the dump some days when you get slow. But things will turn around and you get busier than heck.”
GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 7
FOCUS ON RETAIL: Forest City
Turnaround in tough times Various organizations helped businesses, and now the future seems bright By RAE YOST For In Business FOREST CITY even vacant storefronts in downtown Forest City. That was then, but this is now. Since June 2008, seven retail or service businesses have been added to Forest City’s downtown business district and more are on the way.
S
RAE YOST/For In Business
Continued on Page 8 Forest City’s downtown has added seven new retail or service businesses since June 2008 and more are on the way.
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FOREST CITY/From Page 7 IT WAS AS those businesses made efforts to adjust to the economic downturn that the city, FCED, Chamber and other stakeholders decided to make loans and services available to help new and existing businesses. “The city had money available for the start-up and retention of small businesses,” said Pat Galasso, director of Grow Forest City. “That made it easier to get into business. Four of the seven businesses that started in the downtown used low-interest loans from the city.” Bufffington and Loden used those loans to start their businesses. “It was the best time to open,” Buffington said. “If we could make it when the economy was supposedly so bad, how much better would that make us when the economy was stronger?” For Loden, starting her store was simply a matter of personal timing. “I was burned out by working for someone else,” Loden said. The city didn’t loan the money freely. “You don’t get carte blanche,” Galasso said. “You need a solid business plan in place. You have to do your market research — and they had to be committed to being open one night a week and on Saturday.”
The additions happened as one of the larger employers in the region, Winnebago Industries Inc., was cutting employees and the U.S. economy was struggling. In January 2008, Winnebago had just started a series of layoffs. The company reached peak employment of 4,220 in August 2004, according to a timeline provided by Kelli Harms of the company’s public relations department. Employment dropped to its lowest level — 1,630 — on Aug. 21, 2009. Today, Winnebago employment has rebounded to about 2,000. And while small businesses in the city did feel some impact from the company’s downturn and the recession, many remained open. Sales have recovered partially, businesses have started, and business owners and community officials are optimistic about the city’s economic future. IT HAS TAKEN, in part, efforts by various organizations. Grow Forest City is an initiative between the city, Forest City Economic Development, the Forest City Chamber of Commerce and other private stakeholders. Grow Forest City, a city loan program and services available through the Chamber were instrumental in helping owners start and maintain businesses during the downturn. Tora Buffington of Bookadee book store and Mary Loden of NU 2U clothing and furniture consignment store were among those starting businesses. Existing businesses, meanwhile, such as Hansen’s Hardware Hank, Goldy’s convenience store and The Quilted Forest were experiencing some expected and unexpected results. “Some of our small businesses were seeing sales drop, especially the ones with more discretionary items,” said Beth Bilyeu, Forest City economic development director. “We definitely saw sales drop,” said Jodi Fank, manager of the Goldy’s, owned locally by Doug Knapper. “Money was tighter.”
RAE YOST/For In Business
Tora Buffington of Bookadee book store in downtown Forest City helps a customer.
A SOLID business plan can help businesses weather a bad economy, said Chamber of Commerce Executive Director Kathy Rollefson. One area of focus is advertising. Deanna Rochleau, bookkeeper, said Hardware Hank has redirected its advertising from 80 percent print advertising to more electronic options. “We are still print-heavy because our clientele still needs print advertising,” Rochleau said. “But we are also focusing on the clientele of the future with more electronically based advertising.” The store is using more web-based advertising and is emphasizing the national Hardware Hank connection, Rochleau said. The store’s radio ads make more use of the national Hardware Hank jingle, Rochleau said. “Find as many advertising tools as Continued on next page
GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 9
FOREST CITY/From Page 8 you can,” Buffington said of an action that has helped her business. “Get creative about advertising and find ways to talk about your business as much as possible.” That includes participating local events, Buffington said. Monitoring inventory is also critical, Rochleau said. That’s also true for Fank at the convenience store. “You control your ordering, control the inventory,” Fank said. “You have to order what you need without running out, but we don’t have near the inventory we did.” Shelly Robson, owner of the Quilted Forest, has a diverse market as she sells to customers locally and much farther away. She has a wholesale pattern business called Pieced Tree patterns. Retail stores buy the patterns and sell them. Robson said she deliberately priced her patterns low to make them affordable to retail stores and their customers. Her patterns sell at $3.50 per pattern retail compared to others that sell at $8 to $10. ROLLEFSON said Forest City service and retail businesses will always have the big box retailers and larger providers with which to compete as well as economic challenges. “If they can develop a niche business, that’s where they can become distinctive,” Rollefson said.
Forest City is developing a niche market business district but still maintains traditional stores and services, Rollefson said. The business people said the fundamentals of customer service are a must to survive and to build customer support. “If the customer asks for something, you know I’m going to get it,” Fank said. “You have to make sure you have what the customer wants.” “Offer good customer service,” Rochleau said.
“If you say you are going to do something, do it ... show you care about your customers and your community.” Keep prices as low as you can and keep the store clean and organized, Loden said. “I couldn’t stress enough how important it is to keep it clean and well-organized,” Loden said. The business owners and managers said they are optimistic about the city’s economic future. “We have progressive
4
tips for success compiled from Forest City businesses:
1. Do the research and have a well-developed business plan
answering customer questions, good quality products, etc.
2. Evaluate your advertising and be creative with advertising, use different options such as Facebook, websites, etc.
4. Evaluate inventory and make sure that while you have what customers want, you don’t have too much.
3. Stress customer service, including keeping business neat and organized,
thinkers in town,” Robson said. “We have proactive people that are making sure Forest City
does not stop growing. And I think there is a good attitude in this town.”
LIFE insurance that makes it WORTH LIVING. Karen F Keller, Agent 114 N Clark, Forest City, IA 50436 Bus: 641-585-4808 karen.keller.c79c@statefarm.com
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— Compiled by Rae Yost
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12 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
FOCUS ON RETAIL: NORA SPRINGS
Store’s gone, not forgotten Closing of Nora Springs hardware/grocery store leaves town with a void By MARY PIEPER mary.pieper@globegazette.com NORA SPRINGS
ifty or 60 years ago, Nora Springs had several hardware stores and grocery stores. Now it has none. The last one, Brennan’s Hardware & Grocery, 14 S. Iowa Ave., closed recently. Bernie Brennan took over the store a year and a half ago. It had been in operation in Nora Springs for many years before he bought it. He said he decided to close the store and sell the building to Young Construction for storage because there was “more money going out than coming in.” Brennan, a first-time business owner, had loyal customers but “just not enough to keep the store open,” he said. Brennan cited the economic downturn as one reason, but the store’s depleted inventory when he took it over was another. “We worked feverishly to get the store restocked,” he said. In addition to replenishing the hardware items, Brennan added groceries. Although the selection wasn’t as big as in a typical gro-
F
BRYON HOULGRAVE/The Globe Gazette
Bernie Brennan had loyal customers, but not enough to keep his store open. cery store, it was “more stuff than a convenience store would have,” he said. Grocery items included bread, milk, cereal, 12 different kinds of meat, ice cream, onions, potatoes and bananas. However, Brennan said he still couldn’t get customers to come back. BRENNAN, 47, grew up in Charles
City and was living in Mason City when he took over the hardware store. He moved to Nora Springs seven months ago. He met his girlfriend, Melissa Thomas, when she came into the store as a customer. Thomas has lived in Nora Springs for 14 years. “It’s very different” now that the store has closed, she said, noting people can’t just run downtown and Continued on Page 14
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that, “Electronic Engineering is one of our shining stars, and Electronic Engineering will be one if its leaders for the strong growth of Networkfleet service in the coming year.” This next generation of Smart GPS tracking, has a patented connection which all engine related diagnostics are passed directly to a web based monitoring program, allowing the latest vehicle status to be delivered in user friendly design to a manager. Email alerts also notify more serious vehicle problems, and even maintenance alerts to remind the user to change the oil and other related scheduled services. “We have had several customers (including Electronic Engineering) that tried GPS solutions in the past, many with a very bad experience,” said Mark Clark, EECo president. “They have been reluctant to try
another solution. Those who have tried this new Networkfleet solution have been amazed at how far this next generation has come, and have been quite happy: as the reasons they tried GPS solutions in the past, can now be successfully realized.” Another reason that the number of customers has grown quickly is that EECo has a full service monthly program that allows customers to install this product without having to invest several thousand dollars in equipment. Monthly savings in gas, labor, and time – easily make the monthly payments, with money left over to add to a company’s savings (and bottom line). Smart GPS could be the biggest tool your company could use to combat the specter of high gas prices. Contact Electronic Engineering to see actual uses, a demonstration, or a pilot program for your fleet.
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14 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
THE SMALL BUSINESS PROFESSOR
Tips to selling globally By BRUCE FREEMAN
Scripps Howard News Service ear Professor Bruce: I am a small business owner looking to sell globally, however I have no experience with international sales. I would like to expand to enable my business to have a worldwide presence but I don’t know where to begin. Do you have any tips or suggestions to help me get started? Answer: Here are some tips for small businesses on selling globally from Eddie Davis, PayPal’s senior director of small business merchant services: 1. Get online: The Internet has no boundaries and provides an easy way to reach out to international buyers. 2. Get smart or pay later: There is much to
D
BRYON HOULGRAVE/The Globe Gazette
Brennan’s store is now used for storage by Young Construction.
BRENNAN/FROM PAGE 12 get what they need. Instead, they have to drive to Mason City for hardware items or for groceries that convenience stores don’t carry. There are fewer and fewer businesses in town that are family-owned, according to Thomas. Nora Springs resident Peter Bieber was a frequent customer at the store before and after Brennan took over. He also got to know Brennan personally. “It’s tough to see that (losing a business) happen to a friend,” he said. Now people have to go to Mason City “for
absolutely everything they need,” Bieber said. He still supports other local businesses in Nora Springs, but “it’s getting tough in a small town.”
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know when selling abroad, and mistakes can be very costly. Before selling abroad make sure you understand international customs, currencies, taxes and regulations. 3. Cater to local tastes: Understanding the tastes, preferences and customs of the markets in which you are looking to sell is essential to success of any business. 4. Know the global rules when it comes to shipping: Claiming you didn’t know just won’t cut it when it comes to shipping globally. 5. Make payments easy: Dealing with exchange rates and foreign currencies can be confusing. Ensuring you get paid is especially important when dealing in the global marketplace.
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GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 17
BUILDING MORALE:
’EM LAUGH! Hey, boss, give workers time MAKE But make sure boundaries are set for humor in your office off to attend school events S B By JOYCE E.A. RUSSELL Special to The Washington Post
By JOYCE M. ROSENBERG
BEING FAIR AP Business Writer There can be friction and resentoss, my daughter has a soccer ment in companies where parents game on Thursday, so can I get time off for sporting and school leave early? events, but non-parents feel they Owners who want to keep can’t get the time for things that morale up will say OK. But they matter to them. It’s important for should also give non-parents the an owner not to make judgments, opportunity to leave early for per- for example, saying that childsonal reasons. related requests are reasonable and understandable, but requests from childless workers aren’t. WHY YOU SHOULD It can also GIVE TIME OFF work the other For Dave Reeves, “there’s nothway. Owners ing more important than family.” If who don’t “Work, your career, comes things aren’t have children next,” he said. might not So at his company, there’s no good at understand question that his four employees home, they that it really is should take time off for school or family events. can’t be good important for a parent to see Reeves, president of Reeves at the office.” all three perLaverdure Public Relations in Boca formances of Raton, Fla., believes that helping — Dan Reeves, the play that a president of a staffers take care of their lives will child is in. Or public relations only benefit the business. that an firm in Florida “If things aren’t good at home, employee they can’t be good at the office,” he might have to take several days off said. because a child has the flu. Allowing employees to tend to Paula Slotkin remembers what it their children or other personal matters will also help a small busi- was like as an employee to have to take vacation days when her young ness retain good workers. It can daughters had skating events. She’s also be a good recruiting tool. liberal with time off for the “With that loss of a little bit of employees of her Woburn, Mass.time, you gain a lot of good will,” based public relations firm, Topaz said Rick Gibbs, a senior human Partners. resources specialist with Admin“As long as you get your work istaff, a Houston-based company done, I’m fine,” she said. that provides HR outsourcing. Slotkin also recognizes that nonGibbs said that in some states, it parents have events that are may be more than a matter of important to them. So if a worker goodwill, as they have laws that unexpectedly gets tickets to a Red require companies to grant Sox game, “I wouldn’t ask someemployees time off for family body to pass that up.” issues. California, for example, Reeves doesn’t limit time off to requires companies with 25 or more workers in the same location parents, but he doesn’t see it as a to give parents or guardians time matter of being fair. He is sensitive off for school activities such as to what matters in his staffers’ field trips or team sports. lives.
“
So when one of his staffers needs to take her dog to the veterinarian, she gets time to do that. “That’s her kid,” he said.
GETTING THE WORK DONE Business owners who are flexible about time off usually find that staffers will get their work done because they appreciate being given the chance to take care of what’s important in their lives. Employees will be willing to stay late on other days or catch up with their work at home. Owners who are worried about employees abusing the privilege shouldn’t use that as a reason not to give time off. “You might get burned, but the motivational advantages outweigh the occasional hornet’s nest,” Gibbs said. Hiring responsible workers in the first place should head off any problems. “If you have a mature enough work force, they’re not going to take advantage of it,” Reeves said. “You’re going to know if people are abusing it.” And, Gibbs said, a worker’s performance should be a factor in whether he or she can take the time off. Slotkin points out that in her business, what matters is that clients can reach employees. Cell phones and smart phones take care of that need. “If you’re sitting at a hockey rink and take a phone call, you’re not really out of touch,” she said. Sometimes an employee’s job is such that the work can’t be done later. One example is someone who works at a call center. The solution then is for co-workers to pitch in. Chances are, they’ll be willing to do so if the work atmosphere is a positive one and every worker knows he or she will also have the opportunity for time off if they need it.
ome people these days feel overwhelmed with everything they have to do in their lives — jobs, family responsibilities, educational pursuits, house chores — you name it. We all feel the never-ending pressure to do things faster, assimilate more information, learn new skills and take on more responsibilities. So what’s an employee to do? Maybe a little humor at work is in order. I often tell executives I coach that sometimes they need to just lighten up and bring a sense of humor into the workplace. Of course, it is important to use appropriate humor at work. Humor should be about laughing with rather than laughing at others. Even if the jokes or comments were intended to be humorous, they may not be received that way. To use humor appropriately in the workplace, here are some guidelines: COMPANY GUIDELINES • Have a written policy in place as to what behavior, including humor, is and is not acceptable at work. • Make sure there is an avenue for complaints by employees. • Make sure participation at company social events is voluntary. That way, individuals will not feel that they have to attend events that involve pranks or fun. • Provide suggestions regarding boundaries needed for celebrating holidays. • Have a policy on e-mail humor (e.g., forwarding jokes). INDIVIDUAL GUIDELINES • Focus the laughs on yourself — laughing at yourself helps to humanize you in front of others and to make you more likeable. • Know your audience — when making a comment or joke, do you know how people might take the comment? Will people take it seriously or will it seem hurtful? • Don’t kid or joke about serious or controversial topics. Talking about a person’s race, age, sexual orientation, physical disabilities, religion, ethnicity, gender, weight, etc., is never a good idea. If you aren’t sure if the topic is controversial or how others will take it, just don’t tell the story or joke.
18 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
FOCUS ON RETAIL: Osage
Diversity ... loyalty ... pride ... All are called keys to success of downtown Osage
T
By DAVID NAMANNY For In Business OSAGE he success of downtown Osage is apparent to most who drive into the
small North Iowa town of about 3,600. With its Main Street which has nearly 100 percent storefront occupancy, Osage seems to be a shining example of communities that can survive and thrive, even with the bigbox stores just a half-hour drive away. Not only does the community boast a wealth of qualities like wide streets, historic buildings, publicly-own municipalities, antique shops, excellent schools, excellent health care and the new $18 million Cedar River Recreation
and Fine Arts Center, but it also has a strong and diverse retail sector. Gifts, clothing, shoes, furniture, electronics, Cooper building supplies, new and used cars, fine food, fast food, groceries — Osage’s retail sector offers most anything the community needs. “It’s all like a big puzzle that comes together perfectly — and that is a big part of why Osage is successful,” said
Osage Mayor Steve Cooper, who owns Osage Auto Inc. “I think our retail businesses also work hard to make their stores appealing and I think the Chamber of Commerce does a good job of promoting businesses and events. “I think this community has a lot of pride, not only in their stores but in their homes and school district, and they try to do business here at home,” Cooper added. KEN EMERSON has owned Fleming’s Clothing since 1999 and expanded with a second
clothing store in Clear Lake about three years ago. There has been a clothing store in Osage since the late 1800s. “It’s about customer service and specialty items that the bigger stores just don’t offer,” Emerson said. “We are a destination store so there’s a lot of people who come from out of town to shop here for our unique offerings. We also have good loyal local customers who come to us to buy a new outfit before heading off to a shopping mall. “Overall, I think Osage’s Continued on next page
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GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 19
OSAGE/FROM PAGE 18
SINCE THE START of the national recession in early 2008, Osage has witnessed the opening of 12 new businesses. A majority are on Main Street with Heuton another handful in other areas or in homes. Wendy Heuton, executive director of the Osage Chamber of Commerce, said several factors explain the success of Osage and its retail sector. “Osage is lucky to have its Main Street situated on State Highways 218 and 9. The amount of exposure these two
roads bring is priceless,” she said. Osage is also fortunate to have a city council and public works director who are “forward thinking and open to ideas suggested by the Chamber,” Heuton said. “Keeping our Main Street and town attractive is important to commerce as travelers are more apt to stop if a town looks welcoming. The business owners are friendly and customer-service oriented. They are proud of their businesses and it shows on their storefronts,” Heuton said. “They also work together so that shoppers have a variety of merchandise to choose from, as the less duplication of product the better for everyone. “The banking industry in
human services offices. Mitchell County Regional Health provides wonderful primary care services. Osage Community Schools and Sacred Heart Catholic School provide a complete curriculum KEVIN M. of accredited class offerings KOLBET, presi- and extracurricular activities. We have numerous church dent of the Osage Develop- denominations,” Kolbet said. ment Corp. and “Osage is home to the USDA owner of Kolbet government offices. The new Realty of Osage, Cedar River Complex meets Kolbet the educational, social, physisaid Osage is a cal fitness and recreational destination community and needs of all ages and the that contributes to the strength of the retail sector as Mitchell County Fair attracts do other factors such as infra- patrons from around the region. structure, recreational “We have a modern movie opportunities and, most of theater showing recently all, loyal residents and loyal released and new movies in a customers. comfortable and affordable “We house the (Mitchell) Continued on Page 23 County Courthouse and
also be able to upload coupons, job openings and store promotions to the calendar,” Heuton said. “The new website will be connected to Facebook and Twitter.”
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Osage is very supportive of our businesses and is willing to work with existing and new business. Economic Development works to get new businesses in the area and also helps get them up and running.” Heuton said it is the Chamber’s role to promote local businesses. The Chamber promotes Osage on the radio and in newspapers, flyers and brochures. The Chamber also promotes shopping local with Chamber Dollars and The 3/50 Project in North Iowa (pick three businesses, spend $50). Plus, the Chamber keeps up with technology. “Soon we will be rolling out a new website where businesses can have their own front page, and if they have a website it can be linked. They will
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20 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
OUTLOOK: Health Care Reform
The Small Business Professor:
Good news, bad news likely for employers in health bill
Steps to reduce IT costs
But many questions remain unanswered, insurance official says By KRISTIN BUEHNER kristin.buehner@globegazette.com CLEAR LAKE
he 2010 Health Care Reform Bill will undoubtedly have good news and bad news for employers, although details of implementation are still being worked out, Iowa insurance broker Jesse Patton told employers at a Health Care Seminar in Clear Lake. “Be forewarned,” said Patton, national chairman for legislative issues for the National Association of Health Underwriters. “There are some questions you have today that cannot be answered.” What is known is that U.S. health care costs increased 119 percent from 1999 to 2008 and employers absorbed 117 percent of that increase. “We’re probably at the point where the employer is pretty much saturated in how much they can pay,” said Patton of West Des Moines. The 2,700-page reform bill, signed into law March 23, ensures that approximately 32 million uninsured Americans will have health insurance coverage. The reforms will cost an estimated $1 trillion over 10 years and will be enacted in stages from 2010 to 2014, Patton said. Company insurance plans already in place as of March 23 are automatically grandfathered in, Patton said. But some companies may choose not to maintain their grandfathered status, contrary to what proponents of the Health Care Reform Bill intended. “The government never intended for companies to drop their current plans,” Patton said.
T
Employers choosing to maintain their current plans need to know that few changes will be permitted. Grandfathered plans may not: • Increase the rate of co-pay paid by employees. • Reduce employer contributions by more than 5 percent. • Increase deductibles by more than 15 percent plus medical inflation. • Use mergers or acquisitions as a way Patton to cover new employees. • Change carriers if they are fully insured. • Make a significant cut to benefits, such as eliminating benefits for a particular condition. Grandfathered plans, however, may: • Add family members or new employees. • Make changes as a result of new government regulations. • Increase premiums. Small businesses may also qualify for tax credits to help with the cost of coverage, Patton said. After Sept. 23, 2010, all plans will have to eliminate limits for such eligible expenses as prescription drugs, cover dependents until the age of 26 and provide enhanced coverage for preventive services — to be covered at 100 percent with no deductible. These new provisions do not apply to grandfathered plans until Jan. 1, 2014. New plans after Jan. 1, 2014 — the biggest year for change — will forbid employers from excluding
employees with pre-existing conditions from coverage. In 2014, new markets for health insurance will be established called “Exchanges.” Employees who do not have employer-sponsored coverage may be eligible for a subsidy to help pay for the cost of the coverage through an Exchange, Patton said. Everyone — except those with very low incomes — will be required to carry a minimum Cooks level of health insurance in 2014. Employers with more than 50 employees generally will be required to offer a minimum threshold of health insurance coverage or potentially be subject to fines. Employers could also be subject to fines if their employees choose government-subsidized coverage through an Exchange, Patton said. Cathy Cooks, labor liaison with Wellmark Blue Cross-Blue Shield, who also spoke at the conference, said Iowa is in a better position than most states because it has a lower percentage of uninsured — 14 percent — and lower-cost, higher-quality health care. “We really believe we can get this health care system fixed and can get a sustainable health care system,” she said. “While shifts will happen and changes will occur, it is an opportunity to improve our health care system. ... We have to work together to make this thing work.” The seminar was sponsored by the North Iowa Area Community College Pappajohn Center and Lentz & Associates, Waterloo.
By BRUCE FREEMAN Scripps Howard News Service
Dear Professor Bruce: What are some steps a small business owner can take to reduce information technology (IT) costs? A: Marc Bressman, president of Falcon Computer Consulting, offers some excellent advice. 1. Outsource certain components of IT (i.e. email, web services, management of Internet connection, etc. This can save a significant amount of money from keeping these IT services in-house. 2. Streamline the software used in the office so it is easier to support, upgrade and maintain. 3. Shop around for better, less expensive Internet service providers in your area. 4. Standardize the hardware used in the office. When hardware is not standardized it takes more time to track down a part or find a problem. 5. Security: Having suitable network and computer security throughout your organization protects you, your employees and your customers. — For further information, visit www.falconcc.com.
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GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 21
North Iowa Corridor EDC study:
Businesses were cautious in 2010 By LAURA BIRD laura.bird@globegazette.com MASON CITY ason City and Clear Lake businesses were cautious during 2010 according to a survey by the North Iowa Corridor Economic Development Corp. The NICEDC has been surveying businesses in Mason City and Clear Lake each year as part of its Business Retention and Expansion program. “Our No. 1 goal for the Corridor is to assist our local businesses with any needs they may have and to encourage them to continue to do business here,” said Gregg Gillman, executive director. “This is one of the ways we get close to them.” The survey gives the NICEDC data and helps it understand what is going on with area businesses. The survey once included
M
The survey went out to 82 businesses early this year with 58 participating. Eighteen were new participants. The questions were broken down into eight areas including company information, workforce, e-commerce, sales, facility and equipment, municipal/community resources, business climate and success factors. Specific questions included File photo things such as whether employment trends are Gregg Gillman, pictured earlier this increasing, staying the same or year, said the survey tells officials they “need to stay close to all of the declining; projected sales growth for next year; facility businesses and industries.” and equipment investments only manufacturing industries, over the past 18 months; and but has expanded to other expansion plans in the future. businesses, such as banks and Fifty percent of participants other professional services, in reported that they expected 1 recent years. to 9 percent sales growth in the “We decided let’s try to future. In 2009, 25 percent had touch more businesses, and the same prediction, with 35 we’ll continue to do that,” percent predicting zero perGillman said. cent growth in sales.
However, fewer companies reported in 2010 than 2009 that they had invested in their facility or equipment the past 18 months. Gillman said that tells the NICEDC that businesses are being cautious due to the economy even though they might be making money. It doesn’t surprise them given the state of the economy. “This doesn’t scare us,” he said. “It just tells us we need to stay close to all of the businesses and industries.” Gillman said they look over each business’s responses and follow up with them. “It’s all about the follow-up,” he said. “We find hot buttons and concerns and we rank them.” Businesses that indicate potential future expansion go to the top of the list. Gillman said there have been several area companies expand-
For more: To view the full results of the survey contact the NICEDC at 641-423-0315. ing despite the economy. Two examples include TeamQuest in Clear Lake, which has expanded, and Kraft Foods in Mason City, which has added a few jobs. Other companies that would go toward the top of the follow-up list are ones struggling and considering layoffs or closures. Companies expanding or downgrading are important because the NICEDC’s No. 1 goal is to maintain or expand businesses in the area, Gillman said. Its second goal is to attract new companies to the Mason City and Clear Lake area, he said.
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22 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
DAVID NAMANNY/For In Business
Osage has a strong and diverse retail sector to go with its many quality-of-life features such as the Cedar River Complex (above).
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GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 23
OSAGE/FROM PAGE 19 good for retail business and business in general.”
Why retail works in Osage from those who help make it go: • “I think our retail businesses also work hard to make their stores appealing and I think the Chamber of Commerce does a good job of promoting businesses and events.” — Osage Mayor Steve Cooper, who owns Osage Auto Inc. • “It’s about customer service and specialty items that the bigger stores just don’t offer.” — Ken Emerson, who has owned Fleming’s Clothing since 1999. • “Our retailers and service businesses provide our public with whatever they need, offering not only good choices but also top-notch service.” — Kevin M. Kolbet, president of the Osage Development Corp. and owner of Kolbet Realty of Osage. Street Loan Program which subsidizes the enhancement of facades and expansion of retail and service businesses. Significant new business starts and transitions to new
owners have resulted, including national retailers such as Sears, he said. “Osage serves as an example of how community, county and regional cooperation
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KOLBET SAID residents are proud of the area’s agricultural heritage and are good stewards of the soils. But they also have diversified the industrial base to nontraditional companies offering fair wages with competitive benefits. “Without our industries many of the aforementioned attributes would not be possible” Kolbet said. “People make our downtown viable. Employees that are loyal to our businesses allow for growth and expansion. We are fortunate.” Kolbet said in an effort to continue the attractiveness and vibrancy of Osage’s Main Street and business community, the ODC has encouraged the City Council to continue its Main
RANDALL CONSTRUCTION MS-20146505
venue, and our eateries do a nice job of catering to nearly everyone’s desires,” continued Kolbet. “Our retailers and service businesses provide our public with whatever they need, offering not only good choices but also top-notch service.” According to Kolbet, infrastructure and development go hand in hand. “The mayor, council and public works do a thoughtful job of planning and execution in building and maintaining systems and structures for the long term vs. a quick fix,” said Kolbet. “Our own utility company (Osage Municipal Utilities) not only turns over revenues which would otherwise be sent out of the area but also provides exceptional service at competitive rates. That is not only good for local citizens it’s
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24 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
COMMENTARY:
Discover tourism’s valuable benefits By SUE ARMOUR Visit Mason City Executive Director healthy travel and tourism industry is important to North Iowa with far-reaching effects that flow deep into our local economy. According to Travel Industry of America (TIA), a nationally recognized organization endorsed by the state of Iowa, “To measure travel’s powerful return on investment (ROI) within an area, one needs to review direct, indirect and softer benefits that contribute to the quality of life.” Such direct benefits are tax contributions and employment opportunities generated by visitor spending. According to a study prepared by TIA for the Iowa Department of Economic Development Tourism Office, visitor spending in Mason City during 2008 generated an estimated $78.6 million and employed more than 750 people in tourismrelated jobs. In addition, Cerro Gordo County ranked 11th in tourism based on expenditure levels compared to the other 98
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counties in Iowa. Tourism also supported more than 1,500 jobs and generated a payroll of $24.75 million in Cerro Gordo County in Armour 2008, according to the study. The study also revealed that these travelers generated $157.23 million into Cerro Gordo’s economy, $7.41 million in state tax receipts and $2.57 million in local tax receipts. The dollars spent by visitors strengthen North Iowa’s economy by creating jobs, supporting local businesses and creating greater tax revenues to support our area. Virtually every business and resident is touched by the tourism industry. However, taxes and jobs are just a couple of direct indicators of travel and tourism’s return on investment. The collective or “public” benefits of investing in tourism also need to be considered. Some of these benefits include contribution to
What’s in a new name? Visit Mason City is the former Mason City Convention & Visitors Bureau. The name was changed in May. "Our new name is easy to remember, consistent with our brand and is a call to action," said Sue Armour, executive director.
an enhanced quality of life for those who live in the area and personality/image of an area. Travel and tourism serves as the front door for economic development. The return on investment is much more than money in the bank. It is entrepreneurial spirit at its best, it’s capital investment, it’s quality of life, preservation, revitalization and sharing the celebration of our sense of place with others. In addition, it is a compliment and a complement to a community and an industry that just about any part of the country can participate in. It’s about opening up our doors and letting others learn what makes us who we are.
Direct Tourism Benefits in 2008 • Travelers contributed an estimated $78.6 million to Mason City’s economy. • 1,510 people are employed in tourism-related jobs in Cerro Gordo County. • Direct travel expenditures reached $157.23 million in Cerro Gordo County. • Traveler-generated payroll in Cerro Gordo County totaled $24.75 million. • Tourism in Cerro Gordo County generated $7.41 million in state tax receipts and $2.57 million in local tax receipts.
Indirect Tourism Benefits • Creates jobs and services. • Generates new payroll. • Reduces taxes paid by existing residents. • Enhances local infrastructure. • Provides for city services, personnel. • Enhances real-estate values. • Diversifies economy. • Attracts businesses.
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For More Information: Visit Mason City markets and promotes the area as a multi-day tourism destination. For more information regarding the impact and importance of tourism, contact Visit Mason City at cvb@VisitMasonCityIowa.com or call 641-422-1663. To learn more about what’s happening in Mason City and North Iowa, visit www.VisitMasonCityIowa.com or follow Visit Mason City on facebook.
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GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 25
ADVICE: FINANCES
Prepare now for pending tax law changes By CRAIG BRAGET Tax Director, RSM McGladrey, Mason City here continues to be much uncertainty as to possible additional tax legislation before year’s end. But for tax planning purposes it is important to be aware of the level and magnitude of many tax benefits that have expired as well as many that will expire at the end of 2010. In 2001 and 2003, Congress enacted legislation resulting in several tax cuts for businesses, individuals and families, investors and small business owners. For years now, taxpayers have enjoyed the benefits from these tax reductions. All of these benefits are scheduled to expire under the sunset provisions of those acts, and unless Congress takes action with new legislation soon these benefits will no longer be available for tax years beginning in 2011 and thereafter. While not a complete listing, below are many of the most popular tax benefits that are scheduled to expire after 2010: Business tax benefits: • Sec. 179 expensing for small business: limit for annual expensing of qualified purchases would be reduced to the old $25,000 level, with phaseout starting as qualifying purchases exceed $200,000 annually. Individual tax benefits:
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About the author: Craig Braget is a tax director in the Mason City office of RSM McGladrey. He has more than 14 years of public accounting experience, including helping clients with tax compliance, audits, regulatory issues, mergers and acquisitions, S Corp conversions and marketing consultation. For more information, contact him at craig.braget @mcgladrey.com. • Marginal individual income tax rate reductions: the current 10 percent bracket would not exist and there would be a return of “old” brackets ranging from 15 percent to 39.6 percent. • Alternative Minimum Tax (AMT): set to return to former, much lower AMT exemption levels (normal AMT “patch” not passed yet for 2010 so could impact 2010 also). • Capital gains tax at maximum rate of 15 percent scheduled to rise to 20 percent in 2011. • Qualified dividend income at capital gains rates: Instead of the current maximum 15 percent rate, it would go back to being taxed at ordinary income rates (up to 39.6 percent). • Personal exemptions for upper-income tax-
payers would again be phased out. • Itemized deductions for upper-income taxpayers would again be limited based on level of Adjusted Gross Income. • Child care credit: set to go from $1,000 per child back down to $500 per child. • Marriage penalty relief (basic standard deduction and 15 percent rate bracket will equal that for single taxpayers). • Education incentives: will revert to less favorable treatment of employer-provided education assistance and student loan interest
MS-20146442
deduction, among others. • Incentives for Families and Children: reductions in adoption tax credit and employer adoption assistance, employer-provided child care tax credit and dependent care tax credit • The currently expired federal estate tax will be reinstated in 2011 with a $1 million lifetime exemption and a maximum rate of 55 percent for amounts in excess of the exemption amount In addition to the above, there were numerous beneficial tax provisions that expired Dec. Continued on Page 39
MS-20146169
26 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
COMMENTARY:
LEARN ABOUT IN BUSINESS
New industrial park signs crucial Hopefully, they’ll catch the attention of just the right person and lead to development
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ern third of Iowa. Add to that our substantial railroad access and commercial airport and this area becomes extremely attractive for development. Thousands of people — including people who are stakeholders in businesses — are passing by us every day. B U T W H I C H of those drivers knows that we have prime industrial park land available? Industrial parks with infrastructure already in place? Industrial parks with space to build? Industrial parks directly on major thoroughfares? When you’re driving on the interstate, the Clear Lake Industrial Park is partially hidden behind a grove of trees. When you’re driving on the Avenue of the Saints, the
Mason City Industrial Park is corn and soybean fields with an ethanol plant plopped in the center. Enter the new signs — hopefully catching the eye of just the right driver, just the right business person looking to expand his or her company — quite frankly, letting the world know we are serious about industrial development and that our sites have tremendous logistical advantages. Potential for development — that definitely gets us excited, and we see great marketing opportunities with these signs. B U T T H E R E ’ S more to this story. If you traverse both highways, you may notice that the signs match except one says “Clear Lake” and the other “Mason City.”
This is an example of an immutable goal of the North Iowa Corridor EDC: synergy between Mason City, Clear Lake and Cerro Gordo County. Mason City and Clear Lake both were willing to work with the Corridor for a consistent design, showing unity within our marketing efforts. That’s what the Corridor is all about: unity, synergy, partnership. Those facets become more solid with each of these projects and that is only going to make our entire region stronger. — Reach Gregg Gillman at ggillman@ northiowacorridor. com.
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By GREGG GILLMAN Executive Director, North Iowa Corridor Economic Development Corp. new industrial park sign? So what? In the next month or so, you may notice new signage advertising our industrial parks on I-35 in Clear Lake Industrial Park and on the Avenue of the Saints south of Mason City. What’s the deal about new signs that gets us so fired up? Gillman It actually has more to do with transportation and our geographic location. Did you know that Cerro Gordo County is a unique place? For many reasons, certainly, but from an economic development standpoint, one of the top things that stands out to us is location. Being on the crossroads of an interstate and a major four-lane divided U.S. highway is a big deal. Twentyseven out of Iowa’s 99 counties have an interstate running through them. Of those, only five counties are in the north-
For advertising and circulation information, contact: Greg Wilderman 641-421-0545 greg.wilderman@globegazette.com
641-423-7032
GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 27
ADVICE: HUMAN RESOURCES
A value-added information provider By JIM CRONIN For In Business have spent a large percentage of my time working with human resource representatives in the private and public sectors. I know that in many employer organizations, some operations managers view human resources representatives as individuals “who are always pulling us into meetings to talk about what new government rules we have to follow.” The operations people frequently complain that the human resourcesgenerated meetings interfere with production schedules and “cost the employer many dollars, and that the human resources people never come up with any ideas that save money for the company.” There are ways for human resources representatives to change such negative and inaccurate perceptions. One sure way is to keep your eyes open in the print media for accounts of how employers in various industries are investing in new cost-saving products.
I
I KNOW this approach pays off because I have practiced it myself for years. And I can even describe one recent example. My wife and I live in White Bear Township, a St. Paul suburb. The White Bear Press is a weekly newspaper that serves a total of 10 close-in suburbs
of people will choose their next opportunity based on pay and benefits Source: Monster Poll week of 3/8/10
OVER THE YEARS, I have been astounded by the number of clients who had no idea about certain recent cost-reduction products and approaches affecting their operations. I learned many years ago not to presume very much about what a client or other acquaintance knew about particular issues. And I always make sure to
forward the site addresses with a note saying, “I thought this might be of interest” so you avoid any mistaken impression that you are lecturing the recipient. There are a number of businessrelated magazines that contain helpful information to employers in both the private and public sectors. Two of these, Inc. and Fast Company, are published by the same company. The June issue of Fast Company featured descriptive summaries of The 100 Most Creative People in Business. Every month, under banners proclaiming “Everything you need to know to run your business in today’s economy” and “A Monthly Guide to Policies, Procedures and Practices,” Inc. publishes four-page “How To” booklets that can easily be removed to store in your business notebook. Past “How To” booklets have included a wide variety of subjects, including, How To: • Launch your company’s 401(k) plan. • Build business alliances. • Find and hire good people. • Assemble a board of advisers.
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Continued on Page 35
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Jim Cronin has been an employee relations (management) counsel with the Minneapolis-St. Paul law firm of Felhabor, Larson, Fenlon & Vogt for more than 30 years. This column is presented as general information, not as legal advice. Specific situations must be assessed individually by counsel of your choice. Cronin is the author of “No Fluff, No Puff: Just Management/Communication Principles That Work.” Readers may preview chapters of this resource manual at www.nofluffnopuff.com. It is also available for purchase at www.Barnes&Noble.com. Cronin would like to respond to readers’ needs by addressing workplace-related questions of general interest in future issues. Send your questions or comments to him at jjcanddrb@earthlink.com.
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and outlying rural communities. A recent issue included a profile of a local inventor Jon Fleck, and featured a discussion of one of his inventions, the DeFlecktor, which is a lightweight wheel cover that provides better fuel efficiency by reducing wind drag. More specifically, the article went on to note that the nationwide Schneider trucking operation, which is based in Green Bay, Wis., and has a fleet of 12,000 trucks, projected that using DeFlektors would save the company 1.8 million gallons of fuel per year. Two articles that more fully describe this inventor’s activities can be found at www.presspubs.com. I would note that to avoid copyright issues it is best to give the site information rather than pass out copies of the articles. I have forwarded the site addresses to contacts in the trucking industry and expect to hear from some of them that they had never heard about the DeFlecktor.
About the author:
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28 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
WOMEN IN BUSINESS: A SPECIAL FOCUS
10 years later, no looking back Brunner, Wilkins celebrating 10 years as Century 21 Preferred franchise owners By LAURA BIRD laura.bird@globegazette.com MASON CITY en years ago Lucy Brunner and Dodie Wilkins had the opportunity to purchase Century 21 Preferred in Mason City. Having joined the franchise 23 and 16 years ago, respectively, they went for it and haven’t looked back since. “We have a wonderful team,” Wilkins said. That team and their partnership have made them No. 1 in the North Iowa area and No. 1 or 2 in Century 21’s Heartland Region the past eight years, they said. When Brunner and Wilkins took over as co-owners they knew they needed to surround themselves with the right people. “We had worked with them for so many years that we knew who to seek out,” Brunner said. The team since then has consisted of people who truly care about their clients, they said. “They always say people don’t care what you know until they know you care,” Wilkins said. Customer service is extremely important to them. Wilkins and Brunner often tell their 21 agents to think about how they would want to be treated if the situation was reversed. Team members must also
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show integrity, honesty, trustworthiness and most important a genuine respect for everyone else. It’s these qualities that have made the partnership between Wilkins and Brunner work, they said. “We have a good understanding between us,” Brunner said. MAJOR DECISIONS are also made together and usually involve three questions: • What are the laws? • Is it ethical? • What would it do to Century 21’s reputation? Brunner and Wilkins’ coownership also works because the two women complement each other, they said. Brunner does well with the marketing and creative aspect of the business while Wilkins does well with the financial part. “I’m always saying, ‘We’re like an airplane — she is the wings and I’m the landing gear,’” Wilkins said. Marketing, financing and using corporate resources has been key in growing the business. Prior to the two women buying the agency, its owner was using corporate resources very little, they said. They quickly realized that corporate resources provided a wealth of information. “Corporate knows all about
LAURA BIRD/The Globe Gazette
Lucy Brunner (left) and Dodie Wilkins say they complement each other with Brunner doing well with the marketing and creative aspects while Wilkins doing well with the financial aspect.
Tips for success from Brunner, Wilkins: • TRUST AND RESPECT whoever you enter into a business with. • RESEARCH the product and the demand for it. • DO MARKETING of your business and product. • KNOW YOUR FINANCIAL SITUATION. Be realistic about it and stay on the conservative side at first. • LOCATION, LOCATION, LOCATION. — By Laura Bird the trends, the economy and lifestyles,” Wilkins said. It also uses new technology, which helps with the marketing aspect of the business. “Ninety-six percent of people look at website listings before buying,” Brunner said. “Our websites are cutting-edge.” Century 21 has 89 websites and will soon expand to 330. Each franchise has its own
website and houses are listed through other websites, too. At least six photos are included with each listing and some have virtual tours. Realtors now show a handful of homes rather than 20 because potential buyers usually have it narrowed since they’ve already viewed the homes on the website. The website for Century 21
in Mason City has also been updated to include a Spanish version. Wilkins and Brunner said they’d like to work with Spanish-speaking clients. They have offered to pay for Spanish classes for agents and would likely hire a Realtor who speaks Spanish. Other marketing includes using two Multiple Listing Services and providing a moving trailer with Century 21 on it for clients to use. The trailer also helps with customer service. “People love it,” Brunner said. “It’s a moving billboard for us.” WHILE BRUNNER AND WILKINS have turned Century Continued on Page 29
GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 29
WOMEN IN BUSINESS: A SPECIAL FOCUS
She found success through soy-phistication Making soy candles turned out to be a bright idea could give candles as Christmas gifts. By LAURA BIRD laura.bird@globegazette.com “One of them was soy and I thought it was a neat idea,” she said. MASON CITY Apparently all of her friends and ine years ago Camille Lee started family thought so, too. playing around with different They kept asking for more and told types of candle waxes so she
N
her she should start her own business making and selling the candles. After taking a class and completing a feasibility study through the North Iowa Area Community College John Pappajohn Entrepreneurial Center she decided to give it a go. That lead to the creation of Soyphis-
ticated Candles in 2002. “I didn’t know how far into things I would go,” Lee said. Using self-financing, Lee decided to start slow by working out of her home making candles, soap, lip balm and lotions. Continued on Page 32
BRUNNER-WILKINS/FROM PAGE 28 21 into a booming business, it hasn’t been without its challenges. Overhead costs are always a challenge, which is why the two women still sell real estate as well as manage. The economy has also
changed the way they have to do business. “The challenge is finding financing” for customers, Wilkins said. “It used to be if you were breathing they’d give you a loan. It’s not that way anymore.”
Vicky McCloskey McCloskey Appliance Vicky McCloskey along with husband John have owned and operated McCloskey Appliance since January 1991. Vicky says their great reputation is a combination of old fashioned friendly service and great products.
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Being a member service representative at NICCU means making our members top priority. I make sure each and every member understands just how important they are to our credit union. My key responsibilities include opening accounts, CDs, IRAs, and online services. It is my goal to meet the financial needs of our members. After all, they do own the place!
641-424-2281 • www.NICCU.com Susan Hendershot Operations Manager
I joined the Credit Union staff in 1990 as a part time teller and was impressed with the family atmosphere and the close relationships with members. I feel that still holds true today. After 19 years I'm now the office manager. No two days are alike, which is what keeps my position challenging and interesting. My responsibilities revolve around the daily operations of the credit union and managing our excellent staff, in addition to being involved in new products and services.
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time to buy with record low interest rates. They’ve dealt with the challenges from the economy by continuing strong marketing. “You have to stay out there,” Brunner said. “The clients have noticed it and
Keri Hartwell Members Service Representative
Sharon Somers Mortgage Loan Officer I am originally from Clear Lake. I joined the North Iowa Community Credit Union family in 1995 as the mortgage loan officer. I very much enjoy working with our members to help them buy their dream homes.
The economy has also caused people to be more conservative. “The general public is sitting tight,” Brunner said. “People are uncertain of the future.” However, Brunner and Wilkins said now is the best
641-424-2281 • www.NICCU.com
MS-20147072
mention it.” Brunner and Wilkins have no immediate future plans for Century 21 other than to serve customers the best they can. “We’re really thankful for a really good community,” Wilkins said.
WINE & SPIRITS
Fall is Transition Time For Wines Yes, it’s hard to believe fall is here. The nights are becoming crisper, football season has started and we start drink drinking more red wines.
Let’s Take a Look at Some Choices in Red Wines. Let’ Making M Ma ak chili, try a Zinfandel, to match the spice in the chili, or try a Shiraz from Australia. With a nice hearty beef sstew, tew w you could try an earthy Syah or Merlot. I like the old standard; A big Hearty Red Sauce, A Big Hearty Red. Cabernet really becomes popular as the weather turns colder. How about a Malbec or Carmenere...two great C Ca abe b reds from South America. There are always a few unique wines like Mouverde, one of my favorites, or Petite Verdot, Cabernot Franc or a Perite Sirah, another one of my favorite red wines. All of the Hy-Vee’s in Mason City Verd have a great staff to help you pick that just right red for fall.
Whatever wines you enjoy, see the wine specialists at Hy-Vee and they will help you during the fall transition. Wha OUR PICK...CLINE CASHMERE
Bruce Long, Mgr.
Definitely a comfort wine. This wine has a long finish with flavors of raspberries, chocolate and just a little bit of black pepper and plums. Cline Cashmere is made from Genache Syrah and Mourverde. This is a great wine with a terrific bouquet and goes will with hearty dishes or meaty pastas. You won’t find a better wine to transition into fall than the Cline Cashmere.
Hy-Vee Wine & Spirits
BLEND IS THE NEW TREND! Blending is a traditional practice in France and is gaining popularity among California wine makers. California red blends are making their mark in the industry. Take Menage a Trois for example, a blend of Zinfandel, Cabernet Sauvignon, and Merlot. This blend is produced by Folie a Deux, a hobby winery turned overnight sensation due to the rapid growth in popularity of its Menage a Trois Blends. Menage a Trois went from experimental blend bottled and sold locally to the #1 selling red wine IN THE NATION. The perfect pairing for grilled dishes, California red blends are as diverse as they are delicious! Just a few carry at Hy-vee East are: Kitchen Sink Red Blend- a unique blend of Zinfandel, Cabernet Sauvignon, Rachel Wacker Merlot, and Petite Sirah make this the perfect party wine. A by Acacia Red Blend- If you are into Pinot Noir, Hy-Vee East Wine Dept. I recommend giving this one a shot! Cline Cashmere-Silky and sophisticated, this blend is the traditional French style with a California twist!
GO GREEN AND GIVE BOXED WINES A TRY! Compared to bottles you can reduce packaging waste by 92% and carbon emissions by 55%. They have come a long way since they first appeared. You can now find many quality artisan wines in a box. Big House Red, Big House White, Silver Birch, Sauvignon Blanc, and Black Box wines are some of my favorites. One 3 liter box is equal to four 750ml. bottles, making them ideal for parties and receptions. Once opened they last up to six week, which make them perfect for your Pete Bjugan, Mgr. fridge or kitchen counter. At a cost of $12 to $25 each, these are great bargains as well as environmentally friendly. Hy-Vee Drugstore Wine & Spirits Stop in to the Hy-Vee Drugstore Wine and Spirits and let us help you find one today! Cheers, Pete
MS-20146300
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32 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
SOYPHISTICATED/From Page 29 One of the first things she did was create a website, www.soyphisticatedcandles.com, which has been essential to her business. “That’s huge,” Lee said. “Even if people can’t order from a website it’s important to have a presence that says, ‘Hey, here I am.’ ” Lee’s website does allow people to order from it, and it has brought in the majority of her business. Shoppers include everyday people, wholesale buyers and private labels. Wholesale buyers have ordered from all over the world, including Texas, New York City, Alaska, South Korea and Australia. They usually find Soyphisticated Candles via the website, but she also seeks them out if someone tells her a certain store would be perfect for her products. With the private labels, Lee makes the candles but the company gets to put its own label on it. Also on the website she has a guest book and is very open to receiving e-mails. “Customer experience is important,” Lee said. Many of her customers have served as inspiration for her scents.
Camille Lee started her own business, Soyphisticated Candles, in 2001. She now has a small retail shop and sells wholesale all over the world. LAURA BIRD/ The Globe Gazette
Continued on Page 33
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GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 33
SOYPHISTICATED/From Page 32 “I do a lot of custom scent blending,” Lee said. “Half of the blends I do were custom blends at first.” The customization and listening to the demand of customers is what Lee thinks has made her successful. “I like to be different,” she said. “My niche is customization.” WHILE SOYPHISTICATED CANDLES has thrived, it has had its challenges. Space has been and continues to be an issue. Lee worked out of her home for a while before it became too much. She eventually moved to a location near Southbridge Mall in Mason City. It included a small retail space. While it was larger than her house it wasn’t laid out very well.
Lee tries to find a balance during the summer by going to farmers markets and making fewer candles. Producing less product has also been Lee’s way of dealing with the economy. “I had the mindset of hanging in there and seeing what happens, which hasn’t been easy,” she said. Some wholesale businesses, however, couldn’t hang in there. Lee lost a few wholesale customers OVERHEAD COSTS and the but made up for them with new ones. poor economy also have created “It’s sad for me,” she said about challenges. The economy has made business the businesses she lost. “I know what they’re going through.” difficult the past couple of years, Business, however, has started but overhead costs have always been a struggle. to slowly recover. Lee has some future ideas for “Especially during the summerSoyphisticated Candles but is OK time when people don’t buy as with the current size of the busimany candles as the wintertime,” ness for now. she said. Later a space opened up at 932 E. State St., near East Park. It was away from the retail area and slightly smaller but laid out better. The current store has a small retail space, too, but has limited hours because most of Lee’s business comes from her website. “It’s 500 square feet and I need about double or triple,” Lee said. “It’s OK, though. It forces me to be a little more organized.”
Camille Lee’s tips for success: Tips for success from Camille Lee, owner of Soyphisticated Candles. • START SLOW whether you’re using self financing or getting financing from a bank. • HAVE A WEBSITE; Lee calls it essential to her business. • HAVE A BUSINESS TELEPHONE NUMBER. It’s important to answer the phone with the business’s name and to keep business and your personal life separate. • FIND your niche. • TRUST your instincts. • LISTEN to what your customers are asking for. • DON’T BE AFRAID to ask for advice or assistance from places such as the North Iowa Area Community College John Pappajohn Entrepreneurial Center. • BE WILLING TO TAKE A CHANCE.
— By Laura Bird
Sue Adams
Administrator Rockwell Community Nursing Home
Renee Bartling Education Coordinator Landfill of North Iowa
Sharon S. Steckman State Representative State of Iowa Statehouse Des Moines, IA 50319 sharon.steckman@legis.state.ia.us
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Sharon Steckman is a 34-year resident of Mason City. She was elected to the Iowa Legislature in 2008. In 2009 she was elected Assistant Majority Leader by her peers. She serves on five committees; Economic Growth, Ways and Means, Education, Human Resources, and Natural Resources.
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Sue Adams, a native of Rockwell, has been with the Rockwell Community Nursing Home for more than 30 years. She and her facility staff have received numerous recognitions including the Governor’s Quality of Care Award. Sue enjoys working with and caring for the people of her hometown. She feels that a small community-owned care and rehabilitation center has so much more to offer than a larger facility. Sue is active in numerous community projects and has been instrumental in recruiting physicians to the Rockwell Medical Clinic.
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34 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
WOMEN IN BUSINESS: A SPECIAL FOCUS Special To In Business or every woman who reaches success in her chosen field, there are many others who continue to struggle, according to an expert on women’s success in the workplace. Roxanne Rivera says it’s either because they are being held back by the boys’ club in their organization or industry or because they are afraid to take steps to get ahead. To push these women to greater heights, she stresses the importance of showing them that they can be successful, no matter their industry. “Sure, the inequality gap between men and women in the workforce continues to close,” said Rivera, who is author of “There’s No Crying in Business: How Women Can Succeed in
Shattering F that glass ceiling An expert on women in business shares ideas to help others learn from her success
Male-Dominated Industries.” “But the hard reality is that often women still have to work harder and smarter to get the respect and proverbial piece of the pie they deserve.” Rivera, who runs her own multi-million-dollar construction company, offers tips on what successful women do right: • Choose credibility over insecurity. Successful women go out and earn credibility through their actions and attitude. They prove their credibility by being effective doers rather than trying to stay under the radar as nice but ineffectual employees. They also understand that once credibility is established, it must be maintained. They know that there is always the chance that what they say or do will affect their
reputation. • Be a “thoughtful risk-takers.” Women need an edge if they’re going to enjoy exceptional success in a malefocused culture, and that edge often comes from taking calculated risks. • Be passionate about your work. Often overlooked, passion is a crucial point for women who want to make it to the top. “At least in my experience, I have never seen a woman CEO who is always cool, calm and unemotional yet still highly efficient,” said Rivera. “Instead, they are extroverted, enthusiastic and fiercely dedicated. There is no question that they care deeply about their companies and their job performance, and they bring energy to their work that few can match. They have the
drive to lead others. If you don’t have a passion for what you are doing that can push you through the tough times, it will be very difficult for you to reach your full potential.” • Know when to say no. Successful women know that setting and keeping their boundaries will have many more long-term benefits for them than doing every little project or task they are asked to do. • Know how to provide strong support to leaders. A major factor for successful women is knowing when to contribute versus when to take the backseat. Successful women can read their leaders. They can intuit when their immediate boss, manager or company CEO wants them to contribute a slew of ideas and Continued on Page 35
North Iowans Who Make A Difference Rep. Linda Upmeyer
Senator Amanda Ragan I am pleased to be part of this special edition of InBusiness. It is my honor to help recognize women whose talents make North Iowa a better place to live, work, and raise families. I am privileged to represent many families in the Iowa Senate. My work is concentrated on improving our state economy to increase good, high-wage jobs, keeping our educational system top notch for our children and grandchildren, expanding access to quality health care, and protecting the quality of our air and water resources. I am always glad to hear from my constituents. Their comments, questions, suggestions, and ideas can be invaluable in deciding the future for our state. You can call my home phone at 641-424-0874. Thank you for your communications and support. It is a true pleasure to work for you. Sincerely, Senator Amanda Ragan MS-20146591 MS-20147148
Paid for by Amanda Ragan For Iowa Senate
represents HD 12 (Cerro Gordo, Hancock and Franklin counties) Linda is completing her fourth term. She lives in Garner where she and her husband, Doug, farm. She is also a Nurse Practitioner, at Mercy Medical Center North Iowa. Upmeyer is the House Minority Whip. She serves on the Administrative Rules Review Committee and the Economic Development Commission and works on the Health Reform Commission. Upmeyer received her ADN from North Iowa Area Community College, her BSN from the University of Iowa with Honors and High Distinction, and her MSN, FNP from Drake University, Summa Cum Laude. She is the mother of five children (a daughter and four sons) and grandmother of two grandsons. To her great joy, they all live and work in Iowa! MS-20146543
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GLOBE GAZETTE • SEPTEMBER 2010
IN BUSINESS • 35
CEILING/From Page 34 when he just needs some strong support. And nine times out of 10 the best way to provide that support is to listen first, speak second. That’s because people who feel they are being listened to — especially leaders — will respect the listener. • Know when to ask for help. Confident women realize that asking for help does not mean they are incompetent. • Put the “pro” in professional. When given an alternative project — even when it is something they may not necessarily have wanted — successful women always handle it like a pro. Doing so shows the people in their organizations that not only are they team players but they can also change horses mid-stream and still do an excellent job. • Build effective teams rather than seek the limelight. • Have a thick skin. Take pride in your abilities and understand that while standing up for yourself and being decisive and authoritative may be viewed by some negatively, most people will view it as being competent and self-confident. • Don’t use being a woman as an excuse for not succeeding. • Know how to earn the respect of male peers. Successful women understand that there is no better way to earn respect or faster way to grow than to tackle a project that stretches them to their limits.
Q&A WITH BETH BILYEU
‘Almost everything we do has an impact’ By JOHN SKIPPER john.skipper@globegazette.com FOREST CITY eth Bilyeu, economic development director for Forest City, has been involved in rural economic development for 20 years in several different capacities. Recently, she discussed the challenges in an interview for In Business.
my first major was political science.
Q. How did you get interested in economic development? A. My first job in economic development was at the Regional Economic Development Center at NIACC. I was down the hall from Rich Petersen at the Small Business Development Center. I learned a lot from him Q. Tell us a little about your back Bilyeu and I really grew to like ground. economic development. A. I was born in Forest City but I was in sales for a while and then grew up in Mason City and graduated went to work for Winn-Worth-Betco from Mason City High School, class (Winnebago-Worth County Betterof 1977. I went to North Iowa Area Community College and then took a ment Corp.) and was there for 12 years. 10-year break — “a very long spring I’ve been with Forest City Ecobreak” — and then went back to nomic Development for eight years. school as a business major at Buena We have a contract to manage HanVista. cock County’s economic developQ. When you were in high school, ment. what did you envision you would be Q. Describe economic develop doing someday? ment in small, rural communities. A. At first, I wanted to be a nurse. A. Economic development in a But later I developed a more international interest and wanted to work in small town can be the start-up of a grocery store. In a small town, a car an embassy. When I went to college,
B
wash is a big deal. It provides jobs — and it uses a lot of water. Q. What are some successes you’ve experienced? A. We were involved with the Golden Oval egg plant and Hawkeye Pride and development of a wind farm. The most satisfying part of the job is that almost everything we do has an impact. It’s one of the wonders of our industry. When we recruit companies, people have jobs. They support their families. Q. What’s the most important thing the public should know about economic development? A. One of our most important responsibilities is retaining existing businesses. We haven’t gained anything if a business moves or closes while we’re recruiting a new one. So we provide training through FastTrac programs and lunch-andlearns to stay in touch with existing businesses. Another thing people should know: Existing businesses are eligible for almost everything a new business can get.
HUMAN RESOURCES/From Page 27 • Navigate insolvency. • Save money by saving energy. • Know your customer better. • Make the most of trade shows. • Protect your trade secret. These four-page guides do not contain “all the answers.” They are, rather, starting points for discussions and contain references to other
publications for answers to the issues raised by future indepth discussions. They are written in plain English and should make operations managers comfortable in acquiring and assessing additional related information. Two other sources of current helpful business-related information are daily newspapers, The Wall Street Journal and USA Today.
The WSJ is not the stodgy paper of previous years. It maintains its basic focus on business but has branched out considerably, printing insightful articles on a wide variety of topics, including political developments, education trends, science and product developments, and the latest developments in the arts. In addition to its Money sec-
tion, USA Today has recent business-related developments and other topics spread throughout its front section. One of the more interesting features is a subsection titled Across the USA — News from Every State. Regular readers of this section would agree that it is very important to have outside auditors looking over the shoulders of internal accounting personnel. Unfortunately,
not a week goes by without a report from one or two states about individuals stealing substantial sums of money from their private or public employer to feed a gambling or chemical dependency habit. To summarize: These print resources can be invaluable to human resources representatives fielding tough workplace-related questions and issues.
36 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
HealthBeat: Safety starts ‘from the neck up’ Be smart: Take steps to protect your eyes, ears, nose/respiratory system afety starts from the neck up.” This expression usually advocates smart decisionmaking to avoid workplace injuries. Yet it’s equally true that a comprehensive safety program should include protection for the eyes, ears and nose/respiratory system. Common eye injuries in the workplace include retained foreign bodies, burns and irritation or infection from dust or chemicals. Most are uncomfortable, but severe or unaddressed injuries can lead to visual impairment or even blindness. Optometrist Donald Furman is the sole owner and practi-
“S
tioner at the Family Eye Care Centers in Britt and Garner, where he has served since 1995. While much of his work involves assessing and correcting visual problems, he also monitors ocular health and deals with common eye emergencies. Foreign bodies are a frequent complaint. “Eighty percent of (foreign bodies) I see could be prevented by wearing safety glasses,” Furman said. He recommends glasses featuring permanently affixed side shields. Welding burns are “99 percent avoidable,” Furman said. Most occur when welders attempt to start a weld without
their helmets in place. Older helmets with dark glass made it difficult to see until the welding machine was activated, tempting workers to flip the helmets back while initiating the process. Newer light-activated helmets largely eliminate this issue, Furman explained. Safety goggles or protective face shields should be used for handling corrosive chemicals. Accidental exposures should be treated by vigorous flushing followed by medical assessment. Comparatively minor irritation from dust, non-corrosive chemicals and environmental Continued on Page 37
TIM ACKARMAN/For In Business
Optometrist Donald Furman examines patient Mike Kramer of Garner.
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IN BUSINESS • 37
SAFETY/From Page 36 WINNEBAGO INDUSTRIES Inc., the Forest City motor home maker, stresses similar environmental adaptations when it comes to protecting workers’ hearing. While the company offers employees several types of earplugs or earmuffs, “hearing protection presents other safety risks,” said safety manager Paul Visser. Wherever possible the NOT ALL EYE conditions develop in company undertakes initiatives to reduce blue-collar occupations. Employees noise rather than simply continuously working on computers using barrier devices to can develop computer vision syndrome block it. (CVS),in which the visual focus gets Visser “Doing it from an “locked in” to closer distances. While other tasks require employees engineering point of view is the goal,” to focus on near objects for a sustained Visser explained. “It can be really fun … to make a major difference in terms period, the flickering nature of the computer screen “overloads the visual of what (noise level) people are exposed to.” system,” Furman said. One recent project involved lining a CVS often requires treatment regirouter booth with a sound-dampenmens designed by specialists in vision ing blanket and dividing it into two therapy, none of whom work in North work stations with a plastic curtain. Iowa. Fortunately, preventing the ail“If you talk to the (router) operator, ment is fairly simple. he said the difference is night and “Take frequent breaks and relax the eyes,” Furman advises. He recommends day,” Visser noted. In a nearby area employees use air the “20/20/20 rule,” which involves nozzles to blow away dust created by focusing on something at least 20 feet an automated router. Changing to away for at least 20 seconds every 20 TIM ACKARMAN/In Business quieter nozzles reduced noise considminutes. erably. Other preventative measures FurAlthough Winnebago Industries employee Rich Kezar wears earplugs while operating this Some chassis arriving at the plant man recommends include addressing router, the sound-dampening blanket lining the router booth further reduces noise exposure. any pre-existing visual problems with must be lengthened by cutting them in half and adding an extension. The corrective lenses, reducing glare by welds were previously ground flat closing curtains and positioning using a hand-held rotary grinder with workers so their eyes are five to six a stone wheel. This process required inches higher than the computer Dental Healthcare can affect your overall health and life. It is screen. Continued on Page 38
allergies can be treated with over-thecounter drops. Those exposed to such hazards on a routine basis might benefit from flushing their eyes out after work. Dust found in confined-animal operations can cause “nasty eye infections,” Furman said. He advises workers to practice good hygiene and avoid rubbing their eyes.
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38 • IN BUSINESS
SEPTEMBER 2010 • GLOBE GAZETTE
SAFETY/From Page 37 employees to wear double hearing protection. Changing to a flexible grinding wheel dropped the noise from 89 decibels to 86, while putting a muffler on the grinder lowered the exhaust noise from 86 to 71 decibels. Around 85 decibels is the threshold at which noise begins to cause discomfort and significant hearing damage, meaning these apparently slight decreases can be noticeable to employees. “Experience has taught me it only takes three to four (decibels of noise reduction) when you’re in that range where you need to use hearing protection,” Visser said. Such improvements often benefit employees not directly involved with a particular task. “In some instances whole buildings would be required to wear protection due to one or two hot spots,” Visser said. Identifying problem areas and making the appropriate changes can be an expensive and time-consuming process, yet Visser believes it’s an economically sound strategy as well as a moral imperative.
“Once you own an occupational illness … you own it for life. Cuts heal; hearing doesn’t come back,” he said. Winnebago emphasizes the importance of safety through initial and ongoing training as well as during monthly safety meetings. Safety coordinator Sherry Flugum believes this effort is fostering a positive attitude toward workplace safety. “Years ago the safety departFlugum ment was looked at like the cops,” Flugum noted. Many employees saw safety rules as inconvenient and viewed the safety officer as someone to be avoided. “It’s not like that anymore,” Flugum said. “We’re all on the same team. The culture has changed.” ALTHOUGH NOT ALL businesses are large enough to employ safety officers, the culture has changed for many smaller employers as well. Bruce and Julie Steinberg have owned and operated
TIM ACKARMAN/For In Business
Troy Aukes uses a respirator while working in a painting booth at North Iowa Collision Center. Intake and exhaust filters in the booth help to improve air quality in the building as well as minimize discharge of pollutants into the environment, while the respirator further protects Aukes from potentially harmful fumes. North Iowa Collision Center in Clear Lake for the past 11 years. Bruce manages the operations while Julie handles most of the accounting, record keeping and reception duties. They have three other full-time and two part-time employees.
We know health insurance.
Auto body work can release respiratory irritants and potentially cancer-causing fumes, requiring safety initiatives to protect workers and the general public. As such, many regulatory agencies monitor compliance, including
OSHA, EPA and DNR. Insurance carriers, qualityassurance organizations such as Underwriters Laboratories, car companies and in some cases vendors also require the business to meet evolving safety Bruce Steinberg standards. “There’s a lot more accountability than there used to be,” said Julie Steinberg. “The risk tolerance is a lot less.” Advances in Julie Steinberg protective equipment have made the industry safer but also more expensive, Bruce Steinberg said. He said the company uses three different kinds of respirators; one type to filter particulate matter when sanding or grinding, another to reduce smoke inhalation when welding and a third to protect against fumes during painting. New standards driven by Continued on Page 39
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IN BUSINESS • 39
FINANCE/From Page 25 31, 2009. Typically referred to as “extenders,” many of these are under current consideration by Congress, but as of this time there is no certainty that these will be extended to 2010 or beyond. Below is a partial list of items not yet extended: Business Tax Relief: • Research tax credit credit). • 50 percent bonus depreci-
ation for qualifying purchases. • 15-year straight-line cost recovery for qualified leasehold, restaurant and retail improvements. • 5-year depreciation for farming business machinery and equipment. Individual Tax Relief: • Deduction of state and local general sales tax.
• Additional standard deduction for real property taxes. • Deduction for qualified tuition and related expenses. • Deduction for certain expenses of school teachers. Charitable Provisions: • Limited tax-free distributions from IRAs for charitable purposes. • Various business-
enhanced charitable deductions for food inventory, book inventory and computers. If Congress chooses not to act to extend any of the above provisions, you have a limited window of time to manage and prepare for the resulting tax increases. Examples would be to review planned equipment purchases,
review of investment portfolios and consideration of sales to generate gains taxed at more favorable rates, timing decisions on income and expenses for the remainder of 2010. These and other strategies should be reviewed and discussed now while there is time to take advantage before these provisions expire.
SAFETY/From Page 38 OSHA and the insurance industry require more extensive training for employees regarding the fit and function of such protective equipment as well as regarding work practices to minimize exposure to hazardous materials. Annual pulmonary function testing is required for those in high-risk occupations. Auto shops are also being required to address air quality through environmental controls. New intake and exhaust filters on paint booths said to be 98 percent efficient will be required in 2011 while a move to water-based paint will significantly reduce the need for toxic solvents in 2012. “Everything about this industry is going to change in the next year,” Bruce Steinberg said. The Steinbergs recently invited OSHA for a voluntary inspection of their facility to ensure compliance. “People said we were nuts,” Bruce said, “(but) we want to do the right thing.”
Safety tips: • In addition to using appropriate safety equipment and hygiene, optometrist Donald Furman of Family Eye Care Centers in Britt and Garner encourages workers to have routine eye exams regardless of their occupation. “Certainly if employees see better and are more comfortable with their vision, they’re more productive,” he said.
using power tools, etc., has a cumulative effect when coupled with occupational exposure.
co-owner of the repair center with her husband, suggests they use outside resources such as vendors and insurance company personnel. “Your business insurance carrier can be a big help, especially their risk management department.”
• Bruce Steinberg of North Iowa Collision Center in Clear Lake encourages small-business owners and managers to outline clear expectations for employees regard• Bruce Steinberg also recoming a safe work environment early mends cultivating a good relationin the training process. “Set the ship with employees of government • Winnebago Industries safety standards high from day one.” regulatory agencies. “They’re your manager Paul Visser urges employfriends …,” he said, “not your eneees to use hearing protection at • Since small-business owners mies.” home as well as at work. Excessive and managers often lack expertise noise from lawn mowing, shooting, in safety measures, Julie Steinberg, — By Tim Ackarman
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