AUGUST 2017 August 14th Sales Roundtable
August 18th 7 Steps to Building a High-Performance Culture
“Avoiding Tongue Tied-itus”
Inside This Issue:
KOHLMANN: HERE’S WHY... YOU SHOULD BE SIGNING YOUR COMPANY CHECKS
HIRSCHFELD: 7 CLARIFYING QUESTIONS THAT LEAD TO THE RIGHT DECISION EVERY TIME
KEATING: TROUBLING WARNINGS IN LATEST FEDERAL BUDGET NUMBERS
SEROKA: THE 5 DEADLY SINS OF BRAND COMPLACENCY
KITTLE: 12-YEAR-OLD ICE CREAM ENTREPRENEUR BURIED IN REGULATIONS
Networking matters
At AT&T, we know that making connections is critical to success. In Wisconsin and across the nation, we link businesses with their customers and the world through our wireless network with access to the nation’s largest Wi-fi network. It’s just another way we help our customers stay connected. AT&T is proud to support the Independent Business Association of Wisconsin.
© 2014 AT&T Intellectual Property. All rights reserved.
IBAW thanks AT&T for it’s continued sponsorship.
Executive Director Steve Kohlmann President Dan Hansen Secretary Charles Fry Baird Treasurer Casey Malek Sikich Directors Jim Leef ITU AbsorbTech Ann Barry Hanneman Von Briesen Law Office John Weber Hypneumat Jeff Hoffman Boerke Co. Lisa Mauer Rickert Industries Tom Boelkow BSI Design, Build, Furnish Robert Gross Gross Automation Scott Seroka Seroka Brand Development Tom Parks Annex Wealth Management Jake Hansen Jacsten Holding Scott Hirschfeld CTaccess
IBAW Mission: To advance business prosperity through insightful programming, executive networking and member-driven public policy and advocacy.
Independent Business Association of Wisconsin
Friday, August 18th
MONTHLY MEETING
7:00 am - 9:00 am
7 Steps To Building a High-Performance Culture
With the low supply and high demand for top-performing employees, you need to confront your competition headon by building a culture that will attract and retain the caliber of people you need to grow your business. On Friday, August 18, Scott Seroka, Wisconsin’s only Certified Brand Strategist and Principal of Seroka Brand Development, will share his seven proven steps to building a high-performance culture and compelling employer brand. Additional Takeaways: 1) Learn the #1 reason great employees leave, 2) Learn how to manage Millennials to become your greatest employer brand advocates, and 3) Learn how to overcome the biggest obstacle to improving your culture
Register at IBAW.com LOCATION
THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE
7:00 AM
REGISTRATION & NETWORKING
7:30 AM
BREAKFAST & PROGRAM
9:00 AM
PROGRAM ENDS
Schadenfreude: Illinois Slides Further Into the Abyss Steve Kohlmann, IBAW Executive Director
Well, Illinois moves closer to the brink of financial collapse. Today’s example is Cook County, and it has it’s own precarious budget situation. Recently Cook County passed a “soda tax” of a penny per ounce tax on all sweetened beverages to shore up it’s budget. It was originally pitched as a health tax, but everyone knew it was to fill a huge budget gap. The tax was to go into effect on July 1st but, at the request of the Illinois Retail Merchant Association and several grocers, a judge issued a restraining order temporarily blocking the tax. And that’s a big problem for Cook County since they were relying on that tax to pay their county employees wages. Cook County projected collecting about $67 million in revenue from the soda tax this year and another $200 million in the fiscal year of 2018 and for now, they have nothing and things are getting desperate. Cook County is so strapped for cash they have already spent that money and have sent out over 300 layoff notices to county employees to adjust for the shortfall. And this is just the tip of their financial iceberg. Officials now believe the layoff number could easily rise to 1100 by December if the tax isn’t reinstated. Even the state’s attorney’s office announced 17 prosecutors will be laid off along with 22 other staffers. By the way, Chicago, (murder capital of the U.S.) is in Cook County. What do you suppose will happen to the crime rate when you lay off 17 prosecutors? So what does all this have to do with Wisconsin? It makes Wisconsin that much more attractive to locate a business - or your home - into Chedderland. Wisconsin is attracting great companies. Uline, Kenall Lighting, now a new Foxconn plant - the first in the nation - and others are sure to follow. Now, I’m not saying that Wisconsin doesn’t have its own budget issues. We’re almost a month into not having a state budget and our transportation budget needs a total overhaul. Our friends over at the MacIver Institute uncovered almost $2 billion (that’s billion with a B) in wasteful transportation spending (A roundabout for bicycles? Yes, that’s true.) But with the Cubs struggling and the Bears football season looking grim (snicker) it’s just another reason for Illinois businesses to escape to Wisconsin. And we’re happy to have them.
Screen Room Update Of all the columns I have written in this magazine, the one that generated the most comments and questions to me was the column I wrote several months ago about getting out of my comfort zone and me taking on my aging screen room rebuilding the panels - some from scratch. Since that column I’ve been asked often, “How’s that screen room project going?” Well, I’m happy to report that aside from a few finishing touches of paint, the project is complete and all the digits on my hand are intact. Job done!
CO
ED T E L MP
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2017 Wisconsin Manufacturing Summit
Flexing Wisconsin’s Manufacturing
Muscle
Join the IBAW for a morning celebrating the resurgence of Wisconsin manufacturing. Network with Wisconsin’s top manufacturing CEOs including a special panel discussion with some of Wisconsin’s leading industries.
Friday, September 15th, 2017, 7:00 am - 9:30 am
The Wisconsin Club Ballroom 900 W.Wisconsin Ave. Milwaukee Register at IBAW.com
Sponsored by:
Joel Quadracci, CEO, Quad Graphics
Chad Severson, President, InSinkerator
Jim Kass, VP Allen Edmonds
Welcome A New IBAW Member! Company: Halcyon Financial Services Contact: James (Jim) Stenstrom WHAT I DO: I help businesses achieve continued growth and stability through available tax credits, tax-exempt financing (with below market rates) and cost reduction audits at NO COST to the business! I work on an incentivized basis, only charging if I find SAVINGS to return to their bottom line. WHO I WORK WITH: Companies that are looking to grow and increase their opportunities in today’s economic climate. My services add value to many companies including Manufacturers, Commercial Real Estate Owners (office, retail, manufacturing, distribution, medical, etc.), Hotels and other Hospitality Businesses, Automobile Dealerships, Nursing /Long Term Care Facilities, Golf Courses and many more! WHY IT WORKS: When you partner with Halcyon, you get the most efficient, effective and affordable specialized tax service that businesses, and the industries that service them, can rely on to reduce undue tax liabilities and keep more of their precious bottom line dollars. I have a unique line of services that targets specific areas of expenses which prevent many companies from being successful, TAXES. Check it out.
P.O. Box 44413, Racine,WI 53404 414-930-4500 Email: jstenstrom@halcyonfinserv.com Website: www.halcyonfinserv.com
Advantage+ Promotes Jim Oberholtzer to Vice President of Credit Administration Brookfield, Wis. — Jim Oberholtzer has been promoted from credit manager to vice president of credit administration at Advantage+, a 25-year-old, nationwide direct lender based in suburban Milwaukee, company officials confirmed. “Jim has elevated our credit qualification processes and streamlined our reporting tools,” Advantage+ President Mike Elton said. “His leadership in the construction of our new internal systems has been invaluable to us in recent months. We are fortunate to have Jim on our team and unanimously agree that he is befitting this new position.” Oberholtzer has a bachelor of arts degree in behavioral science from Concordia University, Nebraska. He participated in a Master’s of Divinity program at Concordia Seminary and earned a master’s of business administration degree from Marquette University this May. In 2004, Oberholtzer began his career in collections and recovery at M&I Bank, which is now part of BMO Harris Bank. He then became an account manager at Everbrite Signs, where he oversaw the installation and maintenance of signage for a handful of restaurant chains. Before starting at Advantage+, Oberholtzer helped start and run Generations at 5 Points — a local area restaurant — as the front house manager. Fall of 2013 brought him to Advantage+. Oberholtzer began his tenure at Advantage+ in the sales support department. After a year and a half, he moved into inside sales and soon became the credit manager. As credit manager, Oberholtzer oversaw several departments, including repeat sales and customer service. His promotion to vice president of credit administration was made official on May 18, 2017. About Advantage+ Advantage+ is a nationwide direct lender offering equipment and working capital loans of $2,000 to $200,000 to small and midsize companies. The company also provides custom customer finance programs for manufacturers, distributors and dealers. The company makes more than one-third of its new loans to existing or previous customers. Since Advantage+ was founded in 1992, the company has lent over $500 million to more than 20,000 businesses. Its managers and a few outside investors own the company. Advantage+ augments its growing capital base with loans from its partner banks, which support small business and free-market capitalism.
Sales Roundtable Monday, August 14th, 2017 | Time: 7:30 am - 9:00 am Location: CTaccess, 740 Pilgrim Parkway, Elm Grove
Avoiding Tongue Tied-itus
Ever get tongue tied at the wrong time? Has your mind ever gone blank and it's your turn to talk? Maybe you didn't bring your "A" game with you that day due to a long night of preparation. At this Sales Roundtable, we're going to develop 5 questions that we'll be able to use that will bail your fanny out of a potentially embarrassing meeting. Join us for a morning of sales discussion with your sales and marketing peers. A free IBAW event open only to members.
Register at IBAW.com Paid Sponsor Content
invites you!
Friday, August 4, 2017
4th Annual Golf Outing
Dinner and Auction to benefit children with special needs.
Location: La Belle Golf Club, 6996 Pennsylvania St. Oconomowoc • www.labellegolfclub.com Schedule: Registration: 10:00 a.m. to 11:30 a.m. *Raffle open & silent auction preview Shotgun Start: 12:00 pm *Lunch Provided Dinner Registration: 4:00 p.m. to 5:00 p.m. Dinner/Auction: 5:00 p.m. to 8:00 p.m.
Join us for a day of golf at the beautiful & historic La Belle Golf Club to support special kids! Not a golfer? Enjoy an evening out with great people, dinner, live and silent auctions, and an overview of your impact for the special families we serve.
Register online...Click Here.
Your sponsorship provides opportunities for children with special needs to explore and appreciate nature.
View event brochure...Click Here.
July Meeting Wrap Up
High Powered B2B Digital Marketing: Using Social Media to Build Your Brand and Generate Leads
MYTH #1: B2B MARKETING
Millennials aren't making B2B business decisions REALITY #1: Nearly half of all B2B researchers are millennials
HIGH POWERED B2B DIGITAL MARKETING
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Our July 21st meeting featured Lori Highby, president of Keystone Click here in Milwaukee. Lori shared her industry expertise with over 65 IBAW members and guests. For the price of breakfast, attendees received expert advice on how to begin a social media campaign and why it’s important for manufacturers to embrace social media, how to leverage it to generate leads and increase your company’s brand presence.
MYTH #3: B2B MARKETING
Branded searches should be the focus of your search strategy REALITY #3: 71% of B2B researchers start their research with a generic search
Ms. Highby has offered to share her slide deck and you can view it by clicking here. If you have any further questions, feel free to contact Lori via email by clicking here.
HIGH POWERED B2B DIGITAL MARKETING
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MYTH #5: B2B MARKETING
Video is watched solely to gain awareness REALITY #5: B2B researchers watch video during the entire path to purchase
HIGH POWERED B2B DIGITAL MARKETING
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7 Clarifying Questions that Lead to the Right Decision Every Time Scott Hirschfeld, President, CTaccess
It was late now, past 7PM, and John still sat at his desk, head in hands. He was part owner and led the sales team at his company. He had been a long-time proponent of buying another firm for expansion. The opportunity had now presented itself, and his partners who were nearing retirement and a bit risk averse, had left the final decision up to him, telling him that he had to make it work. He had done some due diligence and believed it would work, but the burden of the decision weighed heavily on him. So many things swirled in his mind as he fought to gain clarity. He struggled over the high price. What was the competitor’s business worth? He was afraid of spending cash even though his partners and the banker had given him the thumbs up. He even struggled over having more business. Would the sales team step up? Could production take on the extra volume? He wanted to succeed, and taking over another business was a sign of success, right? If things worked out, this could almost double their size. It seemed that lately, he had been staying late at the office and coming in early a little too often. He knew he needed to find a little more time to spend at home and he would, as soon as he got over this next business milestone. The company was doing well, and a little more pushing would get them to the next level. As he sat struggling, he remembered, he and his wife Julie had a few words last night. He knew she and the kids needed him to be present more often. Hopefully he would patch things up this weekend once he made some final decisions about this purchase. Now, he just had to push through and decide whether to pull the trigger… We have all had to make hard decisions, maybe not just like John’s but with as much impact or more. Some decisions are harder than others. Some we agonize over, and some we should agonize over and don’t. The mantra of the day is “Fail Faster”. The idea is that failure is often where we learn what we need to know to succeed the next time. While “Fail Faster” has its merits, there still must be smart decision making criteria to help us choose what is worth risking failure! Here are 7 questions that I have found to help bring clarity in making decisions: 1. The Sanity Check Question. Am I in the right frame of mind to make a decision? We have all done this and see others do it. We are frazzled, tired, frustrated, or maybe even depressed, and we still think we are qualified to decide. In our story, John is making his decision after a long hard day and an argument with his wife. At this point, it would be wise for him to recognize that he is most likely not even able to make a decision about what to have for dinner, let alone something that may have long term impact. 2. The Focus Question. Is the choice I am considering fear based or purpose based? Being motivated by fear always leads to bad decisions. John is afraid of spending his money even though two advisors have told them it is not an issue. We may choose not to have that hard conversation with someone on our team because we are afraid they might quit. Whenever we hear ourselves saying “I’m afraid that…”, we should take a breath and ask ourselves what the purposeful thing to do is. Doesn’t that conversation with our team member help both them and the company? Isn’t it necessary, and isn’t the fear most of the time unfounded? Don’t let fear stop you from doing what you know is right.
3. The Motive Check Question. What is my motivation in choosing to do this? We are great rationalizers, and we can so easily fool ourselves. To dig a little deeper, ask these three questions: " What is the right thing to do? We often know the answer. We just need to ask the question. "
Am I choosing this to gratify myself and elevate myself? So often we are blind to our own ego and its role in deciding.
"
Have I considered how this decision will impact others?
In our story, it seems that John is not fully considering how the purchase might impact his team or his family. 4. The Impact Question. What is the worse that is likely to happen? This question makes sure that we don’t waste time in angst over a decision that has very low impact. What happens if I do it? What happens if I don’t? Sometimes the answer is huge, like if this fails it could bankrupt me. However, more often neither answer is very impactful, and this frees us up to pull the trigger on one direction or the other and move on. 5. The Objection Question. What is holding me back? We often ask this question in the sales process to help clarify what concerns a potential customer might have. John seems to be holding back for a number for reasons, all of which might be induced by his uncertain frame of mind after a long day and argument with his wife. 6. The Counselor Question. Who have I asked for their perspective? An old biblical Proverb says, “Plans fail for lack of counsel, but with many advisers they succeed.” Running a decision past someone you respect for their wisdom, past your spouse, and certainly by God is a necessity. So often someone on the outside can see things more clearly and either confirm or point out the craziness of our ideas. 7. The Action Question. Will this decision continue the status quo or bring about action? So often in business and in life, we are stuck. We keep doing the same thing with the exact same results and then are frustrated by where we end up. Someone once told me that change for the sake of change is sometimes good, and I now see the wisdom of this. Once you’ve considered everything else, consider the side of the decision that brings about good healthy change. Let’s make good decisions on what is worthy of risking failure. And, let’s make sure we value what is important in making those decisions. In the long term, there is no temple of success that will matter more than the people we impact, our families, and our faith. 8.
IBAW Strategic Brand Meeting & Discovery On Tuesday, April 18th, the IBAW went through the process of redefining its brand, facilitated by Scott Seroka, Certified Brand Strategist and Principal of Seroka Brand Development. The purpose was to identify and clarify what makes the IBAW truly unique to other organizations offering seemingly similar programs, opportunities and benefits. We needed to create a meaningful and compelling answer to, Why IBAW? Below is an overview of the main benefits of IBAW membership, along with our Brand Essence Statement and new tagline. For those of you who are active members, your continued support and contributions are most appreciated. For those of you who are still considering, we hope our new brand provides more clarity about who we are, what we stand for, and why joining the IBAW would truly be a benefit to you, and your business. Steve Kohlmann Executive Director
2017 IBAW BRAND TOP BENEFITS OF IBAW MEMBERSHIP: 1. 2. 3. 4. 5. 6. 7.
High-quality and timely/relevant programming An advocate for independent business and the free market Welcoming, friendly and authentic (non-intimidating) A “business first” mentality (before politics/religion/modern-day issues) Easy to develop high-quality relationships with like-minded professionals based on a smaller membership base Always thinking of new and unique ways of keeping members interested and engaged Caring about the community
IBAW BRAND ESSENCE STATEMENT: The IBAW was formed to exclusively serve the needs and interests of independent business owners. As Wisconsin’s leading advocacy group for independent businesses and the communities they serve, we deliver events and programs that benefit our members’ business endeavors and contribute to their ongoing success. We secure high-profile, high-demand business and political leaders for our monthly meetings who share their valuable knowledge and insights while keeping members informed on relevant business issues. And, because of our group’s intimate size, our members are afforded unique opportunities to interact with speakers, as well as with other like-minded business professionals.
IBAW TAGLINE:
Knowledge and insights powering independent business
Next Steps: 1. 2. 3.
Update marketing with the new brand Selectively choose other benefits to use as marketing messages and/or themes Make the brand prominent on internal correspondence to keep all conversations, topics and decisions tied to the IBAW brand
Troubling Warnings in Latest Federal Budget Numbers Raymond Keating, SBE Council, Washington D.C.
The latest numbers on the federal budget should serve as a warning for federal lawmakers in terms of the need to rein in the growth of government, and to implement pro-growth tax and regulatory policies to get the economy moving. The first nine months of fiscal year 2017 is now in the books, and according to the latest Monthly Budget Review from the Congressional Budget Office (CBO), spending is up and revenue growth is sluggish. Specifically, total receipts over the first nine months of FY2017 increased by a mere 1.6 percent over the same period last year. That included, for example, a 2.4 percent increase in income tax revenues and only 0.1 percent in receipts from corporate income taxes. Those numbers point to continuing under-performing economic growth. However, total outlays increased by 5.5 percent during these first nine months of FY2017. That combination has resulted in an increase in the federal deficit, from $399 billion through the first nine months of FY2016 to $520 billion so far this year. Looking ahead, in it June 29th publication An Update to the Budget and Economic Outlook: 2017 to 2027, the CBO offered projections that feature poor real annual economic growth – averaging a mere 1.9 percent over the coming decade – and large increases in federal spending, with outlays as a share of GDP rising from 20.9 percent in FY2016 to 23.6 percent in FY2027. That is, spending as a share of the economy is on path to reach historic levels that were only touched or exceeded briefly during World War II, and during and in the immediate aftermath of the credit/economic mess from 2009 to 2011. On the debt front, federal debt held by the public is projected to rise from 77 percent of GDP in 2016 to 91.2 percent in 2027. That compares to 35.2 percent in 2007. Without a doubt, U.S. real economic growth has been woeful since at least 2007, that is, for more than a decade now. The CBO is projecting even worse real growth over the coming decade. But such projections are not etched in stone. In terms of the federal budget, if spending does in fact continue to expand its share of the economy, and if nothing is done on the tax front – that is, if repealing the ObamaCare taxes and broad-based tax relief and reform are not accomplished – then a grossly under-performing economy will persist. Keep in mind when we look at 2.1 percent average real growth during the current economic recovery/expansion period, and when the CBO projects only 1.9 percent real average annual growth over the coming ten years, the U.S. should be growing at an average annual rate of better than 4 percent during recovery/expansion periods. We can get back to strong, sustained economic growth if policymakers get the policy mix right, that is, tax and regulatory relief and reform, and reined in government spending.
Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. Keating’s latest book published by SBE Council is titled Unleashing Small Business Through IP: The Role of Intellectual Property in Driving Entrepreneurship, Innovation and Investment and it is available free on SBE Council’s website here.
President’s Circle IBAW / DALE CARNEGIE PRESIDENTS CIRCLE A LEADERSHIP PROGRAM FOR CEOs, PRESIDENTS, AND BUSINESS OWNERS
As the CEO, President, or Owner you are asked to produce more results with fewer resources, meet and exceed competition, innovate and motivate. This creates very difficult teams and leadership challenges. Leaders must encourage teamwork, bottom-up idea generation, alignment, loyalty and above all commitment. Rather than direct and dictate, leaders must inspire and motivate!
The Presidents Circle: The IBAW and Dale Carnegie Training have developed an exclusive Leadership program for IBAW members only. The Presidents Circle combines peer group engagement and highly targeted executive Dale Carnegie Training among peers to help you achieve significant results. These results will be achieved by providing insights, peer challenges, and developing leadership skills which are aligned with your organization and which will help drive agendas. By combining corporate mission, vision and values with our unique methodology employees will begin supporting a world they helped create.Ultimately, the only sustainable competitive advantage is the innovation, motivation, and creativity of the employees of an organization. Establishing a strong leadership culture provides the environment where innovation and creativity can flourish.
Program Specifics: • • • •
Meetings with other IBAW CEOs/Presidents/Business Owners 10 monthly meetings Dale Carnegie Executive Leadership Training workshop each session. Round Table Issues Discussed and Resolved
• • •
Guided Yearly planning Accountability among peers. Business Results
The President’s Circle will help you achieve results by: • • •
Providing training among peers Creating and sustaining change initiatives Ensure continuous improvement and bottom-line impact
• • • • •
Align the organization behind a common vision Develop a habit of fact-based decision making at every level. Strengthen and implement strategic planning Create a value based culture to ensure loyalty Build energy and trust up and down the organization to insure customer loyalty.
Program Leader: Steve Bobowski
“Knowledge isn’t power until it is applied.” -Dale Carnegie
Commitments: • Attend meetings • No cost for meetings, a benefit of IBAW membership •
Referrals or 3 enrollments
This program is now forming and is limited in the number which can attend. For more information, contact Program Leader Steve Bobowski by clicking here.
HERE’S WHY...You Always Sign the Checks Sue Kohlmann, Kohlmann Management Group
This is the headline no one wants to see:
“Trusted CFO/Accounting Manager/Bookkeeper/Treasurer has absconded with hundreds/thousands/millions of dollars of company funds.” How does this happen? It’s almost always someone who has been with the firm for years. Or someone everyone likes. Or someone you would never expect. What? It happened because someone wasn’t watching or an audit wasn’t properly conducted. Don’t create the opportunity for this to happen to you. It’s your money. It’s your company. It’s your responsibility. As a small business owner, signing the company checks addresses a number of situations in an office setting. Let’s look at just one of them. It shows you are intimately involved in this part of the business. It shows you are aware of the current bank balance, your receivables and your payables. You decide which clients to poke for payment and which vendors to pay to continue that beneficial relationship. Here’s a simple procedure. You must see all of the incoming mail and shipments. All of it. Snail mail and emails. Front door or dock. Or, you have access to all of it. This is a lot of work but you can do it. This is how you learn to “feel” your business. It’s the only way to gauge the amount of work in the shop to the orders in-house. This is how you “know” the inventory matches the vendor invoice. It’s the only way you know the check going out to a vendor is correct. Do you know all of your customers? Did you invoice for all of the work or product? Locate the product that’s shown on that vendor invoice. Find out why there’s a change in vendors. Don’t let anything unusual slide by just because you’re really busy right now or you don’t want to interrupt your work crew. You create a procedure to define and accomplish a task. This is a big-picture task. And you create this procedure because no one watches your money the same way you do.
Five Deadly Sins of Brand Complacency Scott Seroka, Seroka Brand Development
Some of us are deceived to believe that many of the larger, well-known brands have everything figured out. Many of them do. But the others? Well, read on. Below are some higher-profile brands that were, at one time, leaders in their respective industries, and today are struggling to survive from a history of complacency. There is a lot we can all learn from each of them. Harley Davidson It was nineteen years ago when I was at a Business Marketing Association event where Harley Davidson’s CMO shared the company’s strategy for making the Harley brand more appealing to younger riders. Harley had legitimate reasons to be concerned. At the time, the average age of a Harley rider was approximately 43, and many other motorcycle manufacturers entering the market were taking giant bites into Harley’s younger-demographic market share by offering higher-performing, better-built, higher-tech, and more reliable motorcycles at much lower price points. And to attract those who liked the looks and lines of a Harley Davidson, some manufacturers built bikes strikingly similar in looks and design, competing on price, technology, build quality, service and warranty. It was no secret these were direct and unapologizing hits to the Harley brand. And despite numerous, aggressive branding and marketing strategies to counter these competitive attacks over the years, the average age of a Harley rider continues to rise. The Harley Davidson brand is running out of time to retool its brand. KODAK In the world of photography, KODAK was the undisputed industry leader for many years, that is, until camera manufacturers Canon, Nikon and FUJI introduced digital cameras, rendering KODAK’s film cameras irrelevant and nearly obsolete. As I remember many people commenting after the purchase of their first digital cameras, I don’t need to pay for any more film or wait for my prints to be developed! I can shoot a thousand photos for free and just get them on a CD! Stubbornly, KODAK didn’t invest into digital technology because the lion’s share of their profits came from sales of their own film. By the time they caved in and offered their own line of digital cameras, it was much too late. Today, KODAK is one of the smallest fish in a very large ocean of many different camera brands. CRAFTSMAN, BLACKBERRY AND GARMIN Craftsman tools, at one time, were thought of as the best brand of tools to own for those who weren’t professional mechanics or wealthy enough to pay several hundred dollars for a small collection of wrenches. Unfortunately, quality has suffered and they are not as durable as they once were. Today, Craftsman tools no longer have any relevant brand advantages over DeWalt, Ace or Stanley. And remember Blackberry? I can’t remember the last time I’ve seen one other than in a print advertisement more than a year ago. The final straw occurred when customers painfully suffered through a three-day interruption in service. Not to worry competitors gladly came to the rescue by offering disgruntled Blackberry owners deep discounts on trade-in programs. Do you have a Garmin mounted on your windshield? Why would you when newer cars come with built-in GPS units and smartphones that have as-good-as, or even better navigation technology that is free?
The Five Deadly Sins In my experience, research, and in my unwavering belief, one of the leading reasons major brands struggle or ultimately fail is due to complacency, brought on by years of success, profitability and market dominance. For brand complacency leads to the five following sins… 1.
Failure to innovate, or at least introduce new products that satisfy minimum customer expectations. When Canon recently released a long-awaited update of their prosumer 6Dii camera, angry and bewildered photographers headed to forums, blogs and social media criticizing the leading camera manufacturer for releasing a product with three-year-old technology. Many called it the “last straw” and vowed to sell their gear to invest in a better camera system. As one person stated, “It’s like buying an expensive brand-new car and discovering that it doesn’t have Bluetooth!”
2.
Ignoring trends and waiting too long to see how they play out. You’re likely familiar with the saying that there are three kinds of people – those who make things happen, those who watch things happen, and those who wonder what just happened. Which one are you?
3.
Not paying attention to what the competition is up to. Every day that goes by, your competitors are one day closer to launching a new product or service to make yours less relevant.
4.
Not listening to internal and external customers. Customers are on Twitter, Facebook, LinkedIn, Google+, Yelp, YouTube, Vimeo, Glassdoor, blogs, and forums. They are filling out surveys and sending emails. They are talking about your products and your services. Are you listening? Many are not.
5. Loss of agility. One of my favorite quotes comes from Christopher McDougall, who said: “Every morning in Africa, a gazelle wakes up, it knows it must outrun the fastest lion or it will be killed. Every morning in Africa, a lion wakes up. It knows it must run faster than the slowest gazelle, or it will starve. It doesn't matter whether you're the lion or a gazelle-when the sun comes up, you'd better be running.” In other words, if your company moves more like a sloth than a lion or gazelle, you’re already defeated. Every large brand has a following of loyal customers. Some will be patient, others will not. But very few will wait around forever. I hope all of these brands find their way back into the spotlight once again.
Welcome New IBAW Board Members
Tom Parks, AIF®, CRPS® | Director of Retirement Plan Services Annex Wealth Management 262 786-6363 12700 W. Bluemound Rd. Suite 200, Elm Grove, WI 53122 tparks@annexwealth.com | http://www.annexwealth.com Tom Parks, AIF® CRPS® is the Director of Retirement Plan Services at Annex Wealth Management headquartered in Elm Grove. Annex is a privately-held Registered Investment Advisory firm committed to providing conflict-free, unbiased advice to its clients. Annex also hosts two live radio programs on Saturday mornings at 10:00AM on WTMJ 620AM and at 11:00AM on WISN 1130AM. Tom is a graduate of Marquette University High School and earned a BA in philosophy & economics at St. Norbert College. He is involved in a variety of philanthropic endeavors and is actively engaged in civic affairs.
Jake Hansen, Principal, Jacsten Holdings P: 414.278.5990 C: 202.341.7002 jacob.hansen@jacsten.com | www.jacsten.com Jake Hansen is a principal at Jacsten Holdings, LLC, a Milwaukee-based family office that invests in small businesses. Jake is responsible for initiating investment opportunities, participating in the team’s due diligence efforts and structuring all transactions. After an acquisition, Jake works closely with portfolio company management teams to develop and execute on a strategic plan to create shareholder value. Prior to joining Jacsten, Jake was in the Investment Banking department at Robert W. Baird & Co. where he provided M&A and equity financing advisory services. Prior to Baird, Jake was a Manager in the Transaction Services practice of KPMG where he provided M&A consulting and financial due diligence services to private equity and corporate clients. Before KPMG, Jake was in the commercial audit practice at Deloitte. Jake is a CPA and earned both his Master’s and Bachelor’s degrees in Accounting from the University of Notre Dame.
Scott Hirschfeld, President, CTaccess 262 789-8210 740 Pilgrim Parkway, Elm Grove, WI 53122 Scotth@ctaccess.com| www.ctaccess.com Scott has served as President of CTaccess, Inc. for the last six years and has been foundational in establishing and growing the technology consulting business for over twenty-five. CTaccess provides an expert fully-outsourced IT department to companies with 10 to 150 technology users. They also provide IT security and compliance services, and business process automation solutions. They operate in Wisconsin and northern Illinois. Scott has a BBA in Information Systems from the University of Toledo. In this role at CTaccess he has worked with professional service firms, manufacturers, municipal government offices, commercial construction firms and a wide variety of other organizations. He also has experience in software development for municipal government, warehouse control, and banking. He has extensive experience in compliance, information governance, business process management, and enterprise content management.
Coach’s Corner: Job Satisfaction Steve Bobowski, Dale Carnegie While it’s a good thing to not be afraid of change, when it comes to work we all have difficult moments in staying satisfied at our jobs. The relationships we build at work can be quite powerful factor that can influence our work as well as overall satisfaction of the job. Sometimes it just takes time to build these relationships. It is also important that you take pride in your work. Here are some things you can try to stay satisfied at your work.
1. Speak your mind - If you find yourself dissatisfied with something, say it, no one can read your mind. Find the right person to talk to and create a solution. It is important that you stay logical and professional about an issue. If the tasks you are performing are not challenging enough, let your boss know. Remember when there’s a problem there’s a solution. Communication is the key.
2. Build relationships - Relationships at work are very important. Many times you are with coworkers more than you are with your loved ones. It is no wonder that your job will be less satisfying if you do not have a positive relationship with co-workers. Be sincere, listen and learn from your coworkers it will enhance your workday.
3. Take pride in your work. No matter how small a task is if it’s important to you it will be important to others. Show that you are committed to everything and the rewards will be great. Think of the end results and people that will be affected by your performance. Your effort will be recognized!
4. Stay positive - Don’t depend on others to make you happy but visa versa. Turn the negatives into positives. If you have any business related questions or would like advice on other workplace issues, visit our web site at www.sewis.dalecarnegie.com or email us at payton.stevens@dalecarnegie.com. (c) Dale Carnegie & Associates, Inc. 2006. All Rights Reserved.
12-Year-Old Ice Cream Entrepreneur Buried In Regulations M.D. Kittle, MacIver Institute
Nic Ruffi, at the age of 12, has already learned what entrepreneurs everywhere know: Stifling regulation stops start-ups. The Wausau tween wanted to do something more with his summer vacation than play video games and hang out. He wanted a job. He wanted to make money. The answer: ice cream. Nic planned to sell frozen sweet treats on his three-wheeled bicycle. His parents, owners of Ruffi Law Offices in Wausau, decided to check in with the regulators first before Nic proceeded with his ice cream American Dream. For his troubles, the would-be entrepreneur received a thick commercial vendor registration packet, replete with various rules and regulations. Nic would have to have his bicycle and his ice cream cooler inspected by the city health department, a $60 fee, and pay a permit fee - $75 for six months, $100 for a year. But in order to get the permit, Nic's parents would have to take out an insurance policy for $1 million in liability, at a premium cost of $500. And the city required it be named as an additional insured party on the policy. Apparently the city was concerned about the possible carnage caused by a kid selling Fudgsicles from the back of his bike. "So my kid would have to spend $620 in fees and insurance before he sells one ice cream sandwich," Sarah Ruffi, Nic's mom, told MacIver News Service in an interview on the Vicki McKenna Show, on NewsTalk 1130 WISN in Milwaukee. But that wasn't the worst part, Sarah said. After digging through all of the regulations, the Ruffi family found that Nic need not apply. The city's standard commercial ordinance requires a permit applicant be at least 18 years old. Sarah said her husband was told by Wausau Mayor Robert Meilke that the rules are the rules, that there was nothing the city could do. "We were not satisfied with the answer we got," she said. So they talked to city council members. They weren't done there. Sarah and Nic drove to Madison to share their ice cream permit saga with the National Federation of Independent Business-Wisconsin. Then they hit the Capitol, meeting with state representatives and senators and "explaining the hurdles this 12-year-old kid is going through to try to sell ice cream." The city, it seems, has relented - somewhat. Responding to the Ruffis concerns, the Public Health and Safety Committee has approved a youth vendor permit that would lift the age restriction, lower the cost of the permit, and reduce the liability insurance coverage requirements. The committee proposal goes before the full City Council Tuesday evening. Meilke said this is all a "big story about nothing," that the Ruffis are making a "mountain out of a molehill." "I really believe the city has been unfairly portrayed. There is a legal process we have to go through," the mayor said.
The health and safety committee, he said, gladly created a youth vendor permit to accommodate Nic Ruffi and young businesspeople like him. Meilke added that the city could cite the 12-year-old for selling ice cream on his bicycle without the proper permits and insurance, but it won't do so. Tara Alfonso, Wausau assistant city attorney, said the committee proposal creates a $15 fee for youth vendors, and requires a $100,000 liability policy. The ordinance still would require the city be named an additional insured participant. The city must be protected, Meilke said, from possible lawsuits. "Let's say he (Nic Ruffi) sells ice cream with a peanut in it and someone has a peanut allergy. Who is going to be on the hook for that? Not the city," the mayor said. Alfonso said any ordinance must comply with state and federal child labor laws, which include different requirements depending on the age of the child worker. Nic Ruffi, it would appear, would fall under the "domestic business" category, meaning he would not be bound by the same kind of restrictions as children employed or contracted through a non-domestic business. The assistant city attorney said Wausau government officials are being accused of "beating up lemonade stands," and that couldn't be further from the truth. There are exceptions to the main commercial vending ordinance, Alfonso said. It doesn't apply to kids selling lemonade from their homes or on private property, with approval of the property owners. "This applies to people selling on the street and on sidewalks. We have always allowed kids to have a lemonade stand," she said. What's different in Nic Ruffi's case is that the young entrepreneur wants to sell his product on his bike, going door to door, the attorney said. "We did tweak that for his situation and for other kids like him," Alfonso said. Sarah Ruffi said the proposed youth vendor ordinance is a step in the right direction and that city officials' hearts are in the right place. But it still contains unnecessary restrictions and costs. Even the $100,000 liability insurance cap comes with a costly premium, of $265, she said. That operational expense is a big cut to Nic's profits. Sarah said she'd like to see a waiver for all kids. It's all been a learning experience for Nic and his older brother, Mac, and in some ways the lessons have been invaluable. It's taught the boys what owning a small business truly entails. It's taught them not to accept the status quo. Mac, 13, saw potential in his kid brother's business plan and wants to get in on the venture. A "born litigator," according to his mother, Mac is scheduled to address the full council at the meeting. Sarah said Nic and Mac aren't alone in their push to loosen the grip of government regulation. "I find it very hard to believe that my sons are the only ones who want to be young entrepreneurs in this state," she said. "I think the government's job is to get out of their way and encourage them to be entrepreneurs and follow that spirit rather than say, 'Hey, we're going to make it difficult and expensive for you to get into business. I think that's just wrong."
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2nd Monday of the Month SALES ROUNDTABLE 7:30 am - 9:00 am Free & open to IBAW members only Register at IBAW.com
Sales can be a tough road of ups, downs, potholes and a few bumps. But it can also be fast paced, exhilarating and rewarding. If you’re in sales, you know there are things only other sales people understand; the thrill of scoring the big account, the uncertainty of “let me think about that.”, the frustration of phone calls or emails that don’t get returned. IBAW’s Sales Roundtable is a support and knowledge resource for sales professionals, business owners, marketing and branding experts who are charged with driving sales. Join us to discuss the strategy, tactics, inspiration, and motivation to increase sales. It’s a FREE benefit of your membership! Who should attend: • Sales professionals of any level. • Business owners • Sales Managers • Marketing & P.R. Professionals
“For many years I ran sales meetings for as few as 3 and as many as 22 sales rep’s now I can go as a participant once a month to IBAW’s Sales Roundtable.
BONUS! Join the IBAW Sales Roundtable and get a compact disc with the BEST in Sales Survival Music. Play it to pump you up before that big meeting or to console you if you hit a sales slump. Guaranteed to make life better.
It’s a focused meeting and everyone wants the same thing – to be more effective at selling.” - Jerry Wick, CEO, Custom Data Too Mail
IBAW is on an upward trend of growth and we are actively recruiting businesses just like yours to join! When you join IBAW your entire company is a member - anyone from your team can attend our fine educational and networking events. Help yourself, your business AND your Team Members. Come on in...we’re open for business!
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2017 Membership Committee
Katie Ross Xorbix
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Tom Parks Annex Wealth Mgt.
Legislative Fix Moving Ahead for Wisconsin’s New Manufacturing & Agricultural Credit Jim Brandenburg, CPA, MST - Sikich LLP
In IBAW meetings and publications in recent years we have introduced you to Wisconsin’s new tax incentive - the Wisconsin Manufacturing and Agriculture Credit (referred to as the “MAC”). The MAC came about in 2011 to provide an incentive for Wisconsin manufacturers and agricultural companies to remain and grow here, and also perhaps to have out-of-state companies move here. It was scheduled to begin in 2013, and when fully phased-in by 2016 it would essentially exempt any Wisconsin manufacturing and agricultural income from Wisconsin income tax. The MAC was championed by Representative Dale Kooyenga and Senator Glenn Grothman in the legislature.
Magazine Content Needed Consider Submitting an Article!
The MAC, however, had some problems for individual taxpayers when it was drafted and this glitch was recently identified. Here is the issue in a nutshell: the MAC would reduce a taxpayer’s Wisconsin individual income tax, but then would trigger a Wisconsin minimum tax for nearly the same amount. Thus, there may be little, if any, net savings for the MAC in 2013 (a “MAC Attack?”). The legislature is trying to remedy this situation now so that taxpayers can realize the proper tax savings with the MAC on their 2013 Wisconsin individual tax returns.
The IBAW magazine is in need of content, we rely on our members and sponsors to supply us informative articles. The digital magazine is sent out to over 650 contacts statewide and the magazine is parked on the web where, on average, it gets over 1100 views.
Legislative Update: It seems that all key legislative leaders are now on board to correct this issue. It was approved by the legislature’s Joint Finance Committee last week. The Senate and Assembly will be in session in March and voting on final passage for several bills, one of which is this tax bill with the MAC correction. It looks like the legislative timetable will have the bill passed near the middle of the March, before going to the Governor. Thus, a best guess now is that the bill would be enacted into law somewhere in the latter half of March, 2014. MAC Attack Options: For any of our individual taxpayers taking advantage of the MAC, this may present some filings logistics. Here are the possibilities:
1. Best case scenario - in some cases the taxpayer’s share of the MAC for 2013 will be used and not result in a Wisconsin Minimum Tax. A taxpayer in this situation could go ahead and claim the MAC and file their 2013 Wisconsin individual return. There would be no need to wait for the legislation to pass.
Consider writing an article on a timely business related topic to your particular field of business. This is an outstanding opportunity for you and your company to gain exposure and increase your brand awareness to a statewide audience. There is no cost to submitting an article.
2. Next, a taxpayer has generated a MAC for 2013, but it will trigger a Wisconsin Minimum Tax. The taxpayer in this case could wait until the law is changed (and then wait a little for the WDR to update its computer processing systems) and then file their Wisconsin tax return and claim the MAC, and not incur the Wisconsin Minimum Tax. This could present a tight timeline for the April 15 deadline, and you may need to file for an extension.
3. Similar case as #2, but this taxpayer could file their Wisconsin individual return with the MAC, but also incur and pay a Wisconsin Minimum Tax for 2013. Then, once the corrective law is enacted go back and file an amended 2013 Wisconsin tax return to obtain the proper tax benefit of the MAC. You would not need extend, but you would need to amend. We’ll keep you posted as this legislation moves forward. If you have any questions, please contact Jim Brandenburg or Brian Kelley at Sikich, LLP in Brookfield (262)754-9400.
Contact Steve Kohlmann for details.
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Welcome New IBAW Members!
Meeting Recaps 2014 Wisconsin Manufacturing Knowledge Summit
Power Test
On June 20, 2014 the IBAW partnered with the Tool, Die & Machining Association of Wisconsin (TDMAW) to offer Wisconsin manufacturers and their suppliers a unique look at trends within the industry and to also report on some of the challenges the industry faces in the next 5 years.
Power Test, Inc. is an industry leader in the design, manufacture and implementation of dynamometers and control systems.
Special thanks to the event sponsor, First Business Bank for their efforts in helping organize this event.
For more than 37 years, Power Test has provided specialized test equipment to manufacturers, rebuilding facilities and distributors globally. Our products can be found in use at these facilities in nearly 100 countries on six continents.
Chris Halaska
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Our headquarters and manufacturing operations are located in Sussex, WI with sales representatives worldwide. Our unparalleled customer service is well known throughout the industry. Power Test employs a dedicated staff of talented machinists, fabricators, electronic technicians, assemblers, designers, engineers, software developers, and administrative and customer service personnel. Our exceptional product life and excellent customer service is well known throughout the industry and has made us one of the industryleading dynamometer manufacturers. Our dedication to the customer and to the advances in powertrain component testing keep us there.
Power Test N60 W22700 Silver Spring Drive Sussex, WI 53089 Phone: 262-252-4301
4 Advanced Waste Services Advanced Waste Services is an environmental services company that provides wastewater recycling and other waste and risk elimination services to manufacturers in all industries. Each day, AWS helps hundreds of businesses, both large and small, meet their community and environmental obligations. Annually, we collect, treat and recycle more than 50 million gallons of contaminated wastewater into clean, reusable water and other valuable resources like fuel, steam and electricity. AWS is constantly helping our clients manage, reinvent and improve their sustainability successes. For example, we recently partnered with Forest County Advanced Waste Services Potawatomi Community to help Wisconsin food and beverage manufacturers convert 1126 South 76th Street food waste into clean, green renewable energy. Suite N408B West Allis, WI 53214 Founded in 1993, AWS employs 55 people in the Milwaukee area and a total of 150 people companywide in 5 states. 414-847-7100
Photo Key 1: A full house in the main ballroom of the Wisconsin Club as IBAW & TDMAW members prepare to hear about the state of manufacturing and the challenges the industry faces in the workforce.
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2: David Vetta of First Business Bank delivers opening remarks and highlights the importance of a strong relationship between banking and manufacturing working together for success. 3: New IBAW President, John Weber of Hypneumat addresses the change in IBAW Bylaws and calls for voting in new board officers. 4: Kent Lorenz of Acieta gives the main presentation on “Manufacturing Matters” pointing out the trends on manufacturing now and what to expect in the future. 5: Outgoing IBAW President, Steve Van Lieshout receives his award for his efforts as 2013 - 2014.
6 Photos courtesy of Tim Townsend.
6: IBAW Executive Director, Steve Kohlmann (Left) presents David Drumel with an award for his service on the IBAW board.
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THERE’S ROOM AT THE TABLE
As an advocate for small business, the IBAW offers intimate meetings on relevant topics such as Leadership, HR, Sales, and Political Issues. Business Leaders...Leading Business
Join us. “...the sales round table was very informative, Judson will be renewing our membership in the IBAW. Thank you and I look forward to more roundtables!” Dominic Misasi, Judson and Associates s.c.
“ I almost always come away from an IBAW meeting with useable material that helps me with my business. Many times, a speaker will give me something that applies to ITU AbsorbTech. Other times, it is a conversation over breakfast that gives me value.” Jim Leef, President & CEO, ITU AbsorbTech
“Being involved with a business organization like the IBAW is critical for small business owners in Wisconsin for growth and to have a voice with government.” Rich Meeusen, CEO, Badger Meter.
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