December 2013 ibaw magazine

DECEMBER 2013 December 14th:

December 20th:

INSIDE:

Business Behind the Scenes: A Christmas Carol

“The Entrepreneurial Spirit of Wisconsin”

Economic Heat Map

Gov. Scott Walker (invited)

Craig Culver CEO, Culver’s Restaurant

INSIDE THIS ISSUE:

SHAVLIK: GREAT LEADERS ARE NEVER TOO BUSY TO GIVE BACK

ENGEL: BUSINESS HAS STAKE IN CLOSING FINANCIAL GAP IN HIGH SCHOOLS

KEATING: MESSAGE BEHIND PRODUCTIVITY NUMBERS: A LOOK AT 3RD QUARTER

no business is small At AT&T a storefront is as important as a skyscraper.

Small businesses are the backbone of our economy.

They are the engines of new opportunity and growth. Having access to innovative technologies drives success. And we’re here to make sure you’re connected. Always.

AT&T is proud to support the Independent Business Association of Wisconsin.

© 2012 AT&T Intellectual Property. All rights reserved.

IBAW MEDIA LINKS Executive Director Steve Kohlmann President Steve Van Lieshout K & S Technologies .

President Elect 2014 Membership / Sponsorship John Weber Hypneumat

Gov. Scott Walker on new health care exchanges.

VP. State & National Programs Jeff Hoffman Judson & Assoc.

To view, click here.

Treasurer Casey Malek Sikich Directors Bart Adams Sikch Ann Barry Hanneman Simandl Law Group S.C Heather Baylor Park Bank Richard Blomquist Blomquist Benefits

Doctor gets double whammy from Obama Care.

To view, click here.

Jason Kuwayama Godfrey & Kahn Tom Boelkow BSI Design, Build, Furnish Dave Drumel Staff Electric

IBAW Mission: To advance business prosperity through insightful programming, executive networking and member-driven public policy and advocacy.

Friday, December 20th “THE ENTREPRENEURIAL SPIRIT OF WISCONSIN ”

Invited Governor Scott Walker

Craig Culver Culver’s Restaurant

Plus Legislator of The Year Award

Get Inspired, Get Motivated!

Network With Top Business Leaders Elected Representatives Also In Attendance!

Wisconsin Club - Main Ballroom, 900 West Wisconsin Avenue, Milwaukee 7:00 AM - 7:30 AM - Networking

7:30 AM - Breakfast

9:00 AM - Adjourn

Registration now open! Click here!

Event Sponsor: Media Sponsor:

Thank You Steve Kohlmann, IBAW Executive Director

I wanted to take this month’s column to thank everyone who has given me a nod of support upon hearing I am devoting my full attention to the IBAW. Many of you have gone out of your way to call or send me an email to offer your support. Thank you.

But, using a Dean Martin like phrase, I am just the straw that stirs the (IBAW ) drink.

Many of you have stepped up to support the IBAW not just financially but have spent time telling others of the organization or by giving me leads of interested parties. You have sent me articles for the eMagazine and renewed your membership.

Over the last month I have spent time with some of you with one on ones to get your feedback on IBAW, information that is very helpful for me as we roll into 2014 planning, programming and thinking strategically. If I have missed you and you would like to get together sometime to let me know what is on your mind, please send me an email, give me a call or catch me after a meeting. This is your organization and I can’t do it alone. I do need your help.

If you are wondering how you can get involved further with the IBAW again just call or shoot me an email. There are plenty of duties to go around and you can become involved in any number of functions.

But if you are looking for an easy way to help, here are three really easy ones: - Tell your business friends about IBAW & invite them to a meeting - Spread the word of upcoming events on LinkedIn - Follow us on Twitter and retweet our posts

Super easy ways to help IBAW.

The game plan for the first part of the year will have the mission of turning up the volume of the IBAW having our organization get more exposure to the masses. You can easily help me with this by just doing those three things.

I have said it in the past but it’s worth repeating: IBAW has come a long way and we have a long way to go but the journey is underway. Exciting stuff.

On behalf of the entire IBAW membership, staff, board of directors and myself, THANK YOU for your help. I wish you, your family and all your employees a great holiday season and a very happy and prosperous New Year.

Closing the Financial Literacy Gap: Business has a stake in supporting financial education in high school classrooms Benjamin Engel, President J.F. Cook Co., Inc.

As a small business owner, I see the impact of financial illiteracy in the workplace all the time. A lack of understanding about money and how to manage it affects the home lives and work lives of both employees and customers. Money is one of the primary reasons couples fight and get divorced. Financial pressures cause anxiety and depression. Some employees worry about their finances every single day, and many adults also worry about the finances of parents, siblings, and adult children. According to a nationwide survey conducted by Purchasing Power, 28% of employees reported trouble meeting monthly household expenses, and 44% said they don’t have at least $2,000 in emergency savings. Additionally, four in ten workers said they worry about personal finances at work, and 29% said they spend time dealing with their personal financial problems during work hours. It’s pretty clear that there is a significant impact on workplace productivity and the bottom line.

The Center for Financial Literacy at Champlain College recently released a report giving each state a letter grade indicating the quality of financial literacy programming in their public schools. Twenty states earned an A or B, but Wisconsin, along with eight other states, earned only a C. It baffles me that we continue to graduate high school seniors with no practical knowledge of money whatsoever. We talk to our kids about the dangers of drugs and the implications of sex, but we avoid the subject of money. I suspect it’s because parents often do not understand their own finances.

They’ve made mistakes themselves and they are too embarrassed to admit it. But if parents and schools don't teach their kids about money, children are forced to learn the hard way - through the painful “school of hard knocks”.

This is a cultural problem, and neither our educational system nor our parents are up to the task. So what’s the answer and what can we do? I believe we have to help teens become financially literate before they graduate. If young adults are smarter about money, they will make wiser choices, become better savers, and be less likely to make the big mistakes that could impact their lives at home and at work.

A few years ago, I signed on as a volunteer instructor to teach financial education in high school classrooms through Make A Difference – Wisconsin. Founded in 2006, Make A Difference – Wisconsin made it their mission to improve the futures of teens around the state by empowering them to make sound financial decisions. Volunteers from the local business community deliver the Make A Difference financial education program consisting of three lessons focused on saving money, understanding how banking works, and responsible use of credit. The program includes topics such as understanding what comes out of your paycheck, creating a budget, knowing the difference between needs and wants, compound interest, investment, how to open and maintain a bank account, identify theft and scams, how credit cards work and what they cost, how to build a solid credit score and why it matters.

The focus is really about getting teens to think long-term and “big picture” and to take responsibility for their financial futures. More than 33,000 students in 70 area high schools have received the program over the past seven years.

The organization’s behavioral-focused outcome studies show that teens who have completed the program open saving accounts, begin to save, stay away from the costly check cashing stores, put the money management and savings tips in to practice, and even share what they’ve learned with family and friends.

I invite other businesses to consider getting involved. Every business – and individual – can help. Because the curriculum is delivered during the school day, large numbers of volunteers are needed to provide the classroom sessions. And Make A Difference – Wisconsin makes it so easy to be involved. You can attend one of their training sessions in person or access it online, and everything you need in the classroom gets delivered right to your office or home. You can even partner with a colleague or friend.

Financial help is also needed. The cost to deliver the program is a modest $45 per student. The organization receives no United Way or government funding, and the program is delivered at no cost to the schools. Frankly, I can think of no better return on my money than this – investing in the financial future of our youth. It benefits the teens, our future workforce, and our entire community.

For more information, to visit a classroom, or to get involved, contact Brenda Campbell, Executive Director at Make A Difference – Wisconsin, at 414.273.8101, or brenda@makeadifferencewisconsin.org.

RVEY U S ON I T S E IBAW Members Asked to Participate in Marketing Survey 8 QU FREE Marketing Strategies Benchmark Report

IBAW, in conjunction with IBAW member Cultivate Communications, is conducting a brief (3- to 4-minute) online survey about effective marketing strategies and tactics used by companies in southeastern Wisconsin. The survey insights will be available to all companies who participate. In addition, Cultivate will randomly draw 25 participants’ names to receive a $20 GIFT CARD from Amazon.

Take the quick 8-question survey today and automatically subscribe to get your FREE Marketing Benchmark Report in 2014.

Click here to get started now.

Get the published results Your participation in this survey will help you identify how to generate better ROI from your marketing spend.

Learn how and where other companies in southeastern WI are having success using today’s marketing technology.

Holiday Greetings from all your friends at the IBAW

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dean martin

Giving Back Great Leaders Are Never Too Busy Jeffrey Shavlik, Vice President, Finance Systems of Green Bay Inc

As leaders in our businesses, the term "giving back" can be defined as many things.

Monetary donations, sponsorship of events and volunteering our time are just a few ways of "giving back" that come to mind. These are all valuable contributions to our various charities and organizations we support, but as leaders, we can and must do much more.

As leaders, we all have a wealth of knowledge in the business world. Great leaders must pass along this knowledge, our successes and failures to our younger generation. Internships, high school co-op programs and partnerships in education are all avenues where we as leaders can pass along this knowledge. Remember, you're never too busy to make a difference in someones life, and in turn, make a difference in your own life.

As we roll into the fall season, Finance System of Green Bay, Inc. sent off to college, Ryan Pastelak, our 20th high school co-op student. As was with many of these students, Ryan came to Finance System of Green Bay, Inc. very shy and quiet. Like most, the improvement in his character, communication skills and business knowledge was amazing.

Through the past 20 years, these students have continued their business careers to become attorneys, accountants, collection experts, sales executives and computer programmers.

Many students return to say, "Hi,"to the people here at Finance System of Green Bay, Inc. from time to time. Just recently, one of our past students was awarded a scholarship based solely on his work experience here at Finance System of Green Bay, Inc. As leaders, we have many business responsibilities. By expanding our "giving back" we can all make a direct impact on someones life. As the old Chinese proverb says, "Give a man a fish and he will eat for a day. Teach a man to fish and he will eat for a lifetime." You just may find, as I did, the direct impact it makes on making you a better leader and more importantly a better person.

The Message Behind Productivity Data...

A Look at 3rd Quarter Numbers Ray Keating, Chief Economist, SBE Council, Washington D.C.

The Bureau of Labor Statistics released third quarter productivity data on November 14, and it offers a moment to reflect on investment and income.

Keep in mind the link between productivity and capital investment. That is, when businesses make capital investment, that in turn boosts labor productivity. Quite simply, workers have improved tools and technology with which to work. That increased productivity then leads to increased income. The reason that Americans earn among the highest incomes around the world is because they rank among the most productive.

By the way, this speaks clearly to how capital and labor work together, as opposed to the archaic notion still pushed by class warriors and the labor union movement that capital and labor are at odds.

Getting to the data, non-farm business labor productivity improved by 1.9 percent (annualized rate) in the third quarter. That followed on 1.8 percent in the second quarter, and -1.7 percent in the first quarter. Productivity also declined by 1.7 percent in the fourth quarter of last year.

For all of 2012, productivity growth registered 1.5 percent, and 0.5 percent for 2011.

For comparison purposes, annual productivity growth averaged 2.3 percent from 1948 to 2012, and 2.0 percent from 1980 to 2012.

On the positive side, we’ve seen a bit of a pick up in labor productivity over the past two quarters. At the same time, though, even those levels were below the historical average, and for nearly three years now, productivity has underperformed, along with the rest of the economy.

Again, sluggish productivity growth warrants concerns for two reasons. First, does it reflect lethargic investment by business? Especially when one considers small business activity, I think the answer is “yes.” Second, it serves as an additional challenge and concern regarding income growth.

In turn, this raises added questions about a public policy environment – including on the tax and regulatory fronts – that has raised the costs of and worked against entrepreneurship, business and investment. Private sector risk taking – in terms of starting up, building and investing in businesses – cannot be detached from labor productivity and compensation, no matter how much various politicians wish that were the case.

Raymond J. Keating, Chief Economist, Small Business Entrepreneurship Council, Washington D.C.

Deutsche Asset & Wealth Management heat map of major regions of the U.S. economy

Opinions about the federal government and its role in society Majorities have consistently preferred a smaller government with fewer services to a larger one with more services. Opinions of the federal government have been in decline since the terror attacks of Sept. 11, 2001, with wide partisan differences depending on who is in the White House.

BUSINESS BEHIND THE SCENES HOLIDAY EDITION STAGE TOUR + SHOW

A CHRISTMAS CAROL

EXCLUSIVE BACKSTAGE TOUR!

D L O S T U O

SATURDAY, DEC. 14TH

STAGE TOUR: 5:30 PM / SHOW: 7:30 PM IBAW members & their guests will get an exclusive, backstage tour of the Milwaukee Rep’s production of A Christmas Carol.

Then enjoy floor seating for the evening show! ats e ! dS te Now i m r Li de r O

TICKETS: $48.00 per person

Tre fam at you il y or s r taff !

The Value of Corporate Gift Giving Jeanie Brown, Quality Resource Group

There is never a bad time to say Thank You to your clients and employees, but the holidays seem like a natural time to give gifts. People like to hear thank you and like to be acknowledged. That is not to say you should just do that during the holidays. I am a big believer of doing gifts at times of the year when it’s unexpected. The most successful gift campaigns I ever gave to my clients were spring gifts and Christmas in July gifts. I got tons of positive feedback and everyone was genuinely surprised and applicative of the gifts.

Selecting gifts for family and friends is hard enough; shopping for gifts for colleagues and customers doesn’t have to be. Here are some tips for personalized, easy and affordable corporate gift shopping to help companies leave a lasting impression.

- Start planning early If while reading this you realize you have not planned your gifts for this year yet, then you may want to consider a New Year’s gift, spring or Christmas in July gift.

- Consider Food Gifts If you are sending to a large group office. Something large with your brand on the ribbon for example can be an impressive presentation and feed lots of people.

- Personalize gifts when you can I recommend breaking your list into categories and choosing a few types of gifts then give what best fits your clients.

A great example is a gourmet chocolates box I gave to clients one year. With each gift I included a year at a glance calendar in which I had variably printed each client’s first name worked into the graphics of the calendar. They loved it! The calendar did not add much cost, but it did add perceived value by being personalized.

Holiday gifts that are thoughtful and personalized can go a long way towards deepening business relationships and reminding clients and employees that you value them.

Saying thank you is certainly a good idea every day of the year, but why not say it with a gift a couple of times a year. Your clients and employees will remember that and appreciate it!

Jeanie Brown, consultant

262-754-2032

jeanieb@quality-resource.com

Innovate or Die

Dan Steininger, President, Biz Starts Milwaukee

Are you wondering if your team or even you personally possess the creative gene that would enable you and your team to innovate? Should you be looking to hire the next Steve Jobs?

Relax!

Innovation and entrepreneurship can, in fact, be taught.

Here's the proof provided by Prof. Bill Aulet of MIT: "As of 2006, over 25,000 businesses have been started by MIT Alumni at a clip of 900 new ones each year. Those companies employ over 3 million people with aggregate annual revenues of approximately $2 trillion. To put this in perspective the total annual revenue from MIT alumni-founded companies taken together would make them the 11th largest economy in the world."

What's interesting is that 90 percent of those companies were not built using MIT licensed technology or discoveries coming out of MIT research labs.

Prof. Aulet makes clear in his recent book "Disciplined Entrepreneurship" that it is because MIT teaches the tools of innovation and entrepreneurship.

By working with Wisconsin companies across the spectrum I have learned that the biggest single weakness is that many Wisconsin management teams do not have the tools necessary to drive innovation in their companies.

These management teams are composed of very bright, smart people. However they lacked a basic understanding of the tools that drive innovation in new products and services.

BizStarts has a continual deal flow of new and innovative companies started by entrepreneurs who are looking for capital. But before we allow them to present to our accredited investors, they are required to be trained in the 24 steps of Disciplined Entrepreneurship.

We can all agree that tools are necessary to build a house. So why would anyone hope to drive innovation without having the basic tools that drive innovation?

Every company, whether big or small, whether manufacturing or service provider, needs a basic toolbox to drive innovation and it needs a disciplined approach to innovation.

Obviously, the innovation process has to be more sophisticated for a company whose products or services reach beyond the local market. But even smaller companies, like restaurants and hair salons, also benefit from this disciplined approach.

Therefore I would like to pose key questions that apply to all businesses hoping to succeed in a new product launch, whether local or those with national markets. I will do this in the form of a basic checklist that can be utilized by your company every time you offer a new product or service. It does not encompass all 24 steps but it does give you a basic understanding of the key components necessary for success:

Checklist to new product launch: •Have you defined your target market and the end-user of your product and conducted face-to-face interviews to learn their reaction to your product or service?

•Have you defined a "beachhead market?" When the Allies landed on Normandy Beach in 1944 the game plan was to conquer Nazi Germany.

However they had to start somewhere. Where will you start?

•

Now define the persona of the person who will use your product initially. How will they find out about your product, and how will they acquire or install it?

•

Now describe your value proposition. What qualities of your product or service will convince your target persona that it will improve their lives?

•

Who will make the decision to buy the product? Frequently the end-user is different from the person needed to authorize the purchase.

•

Have you mapped the customer acquisition process? You need a methodical roadmap showing the costs of each step in the selling process. What will it cost to buy brochures and sales material? What will be the cost of salespeople and trade shows? How much money will be wasted on customers that will not buy?

•

What is the cost of customer acquisition? My experience is that most entrepreneurs underestimate the sales cycle, both in length and cost.

•

Have you built the "minimum viable product"? By this I mean the least expensive way to construct a product or service that you can test on your target customer base. In an era of 3-D printing and Internet tools, the options of keeping your investment in prototypes and models has never been lower.

•

Have you determined that the target customers on your beachhead will buy this MVP? Can you acquire letters of intent or other evidence before you launch the product or service?

•

Lastly, what is your game plan to drive product sales after your beachhead market has been successfully conquered? Who will be the next logical customer base, and what will you have to offer to reach those different adjacent customers?

You certainly can recognize there's no magic bullet here. Innovation is a discipline. There are no guarantees, but this schismatic approach using the tools of innovation can reduce risk. Plus having a systematic process such as these 10 steps will help dramatically improve the success ratio for your new products or services. Print them up and use them to guide your team.

Dan Steininger is president of BizStarts Milwaukee, president of Steininger and Associates and teaches the tools of innovation to existing companies. He can be reached at: Dan@BizStartsMilwaukee.com

ITU AbsorbTech Receives Award from GPS Education Partners GPS Education Partners recognized ITU AbsorbTech for playing a key role over the past decade in helping them realize their mission to provide students with an opportunity to earn their high school diploma through an integrated learning experience linking academic standards with real-world applications.

ITU AbsorbTech hosts the GPS New Berlin education center and supports numerous students in the work environment.

Jim Leef, owner and president of ITU AbsorbTech accepts the Celebrating Success award from Andy Hepburn, GPS Program Director along with Stephanie Borowski, president of GPS Education Partners on October 2, 2013.

Oak Hill Business Partners Anniversary, Article

IBAW member Erik Owen of Oak Hill Business Partners celebrated his firm’s 4th Anniversary as well as a Business Journal story about his firm at the Western Racquet Club in Elm Grove on November 7th.

Oak Hill Business Partners specializes in three main business areas: Growth Management Services, Business Sales and Mergers & Acquisitions and financial services.

Read the Business Journal story by clicking here.

November Meeting: Eric Ness, Small Business Administration, Milwaukee Office One thing is for sure regarding the Affordable Care Act; there’s plenty of uncertainty and the situation is very fluid with all the answers unclear and without certainty.

Despite covering many areas of the Affordable Care Act, business members in attendance raised questions and concerns they had about the new law. Some of those questions remained unanswered.

If you missed the meeting or attended and would like to review Mr. Ness’s PowerPoint, click here.

Welcome New IBAW Members!

Charles Fry Robert W. Baird & Co Steve Szymanski Weiss Berzowski Law Office Michael Theison Sales Management & Marketing Solutions David Kircher WBD Finance Corp.

Mark Hondadel Talent Bridge / Goodwill

You Can Make a Difference In Wisconsin!

Spread the word of IBA to your business associates pass on the IBA brochure!

Download it in PDF format or pass the link on.

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IBAW’s Business Presentation Series offers high level speakers on timely business topics keeping you informed and exhilarated.

Quality programming every month.

That’s IBAW.

“As a result of listening to the speakers today I was able to find and lookup the WI Lean Govt. working group and booked appointments with three departments so far this afternoon.”

- Mark Truesdell, CTAccess / Computer Technologies of Wisconsin, Inc.

“...I am much better informed and educated on a plethora of topics.”

- Todd Poston

Political Advocacy • Education • Networking www.ibaw.com / 262-844-0333 / IBAWOffice@gmail.com

IBAW 960 Timber Pass Brookfield, WI 53045 Office: 262-844-0333 WWW.IBAW.COM

Membership Application Name____________________________________________________________________________________ Company_________________________________________________________________________________ Type of Business___________________________________________________________________________ Address__________________________________________________________________________________ City, State, Zip_____________________________________________________________________________ Phone____________________________________Fax_____________________________________________ Email______________________________________Website________________________________________

PLEASE CHOOSE THE APPROPRATE CATEGORY FOR YOUR INVESTMENT IN THE GROWTH AND STABILITY OF SMALL BUSINESS NUMBER OF EMPLOYEES IN COMPANY

ANNUAL DUES

1–5

$215

6 – 15

$275

16 – 25

$375

26 – 49

$470

50 or more

$600

Sustaining Member

$700

Special! – Pre pay breakfast meetings – 12 for the price of 10

AMOUNT

$300 ENCLOSED AMOUNT:

PAYING BY CHECK ?

Make checks payable to IBA – and mail to: IBA 960 Timber Pass Brookfield, WI 53045

WANT TO PAY ONLINE? You can also pay by Mastercard / Visa at the IBA Membership page. www.ibaw.com ________________________________________________________________________ The Independent Business Association of Wisconsin is a not-for-profit entity filed with the IRS under 501(c)(6) of the Internal Revenue Code. As a not-for-profit association, the members of The Independent Business Association, Inc. are allowed to deduct a percentage of dues that are not used for lobbying purposes. For the year 2013 based on the total income of the association and the lobbying expenses as reported on the Wisconsin State Ethics Board Lobbying reports for 2011 the percent of dues that were used for lobbing purposes is 10%. Therefore, the percent of dues that would be tax deductible is 90%.