IBAW February 2017 Magazine

FEBRUARY 2017 February 13

February 17

Sales Roundtable

Monthly Meeting

Presenter: Joe Froehlich, TKO Miller.

The Difference Between a Presenter and a Winner

More Than Multiples: Things All Sellers Should Think About When Considering a Sale

Inside This Issue:

SEARING: “REINS” ACT WILL REIGN IN BUREAUCRACY

KEATING: POOR ECONOMIC GROWTH IN 2016 AND WHAT’S AHEAD

Save the Date: Special Report: A GLIDE PATH TO A 3% FLAT INCOME TAX

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.

IBAW MEDIA LINK Study: Obama Department of Education Effort Spent $7 Billion, Had No Effect

Executive Director Steve Kohlmann

_________________________________________________________

A new report from the federal Institute of Education Sciences has revealed that the Obama administration's School Improvement Grant (SIG) program failed to create any academic gains for students. The controversial grant program spent $7 billion over eight years, and was the largest-ever federal investment in failing schools.

President Jim Leef ITU AbsorbTech Secretary Dan Hansen Waukesha State Bank President Elect 2015-16 Craig Coursin Stier Construction VP. State & National Programs Charles Fry Baird Treasurer Casey Malek Sikich Directors

To read, click here.

Ann Barry Hanneman Simandl Law Group S.C John Weber Hypneumat Je Homan Boerke Co. Richard Blomquist Blomquist Benefits Lisa Mauer Rickert Industries Tom Boelkow BSI Design, Build, Furnish Robert Gross Gross Automation Scott Seroka Seroka Brand Development

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

You...Yes You...Made A Big Impact in January Steve Kohlmann, IBAW Executive Director I’m sure you’re well aware of the movie “It’s a Wonderful Life”, it was on many times this past holiday.

In it the movie’s main character, George Bailey, is given a unique opportunity to view what the world would be like without him. Today, I would like to share with you, the members and sponsors of IBAW, a few success stories. It’s to show you how IBAW impacts others. So sit back George, and let me tell you a few things that you - yes you - are personally responsible for happening in January.

It starts just a few weeks ago. I received a call from Sen. Ron Johnson’s office asking if I could come down to the Joseph Project and conduct mock interviews with the individuals who are enrolled in their curriculum. If you’re not aware of the Joseph Project, it connects individuals in Milwaukee’s inner city with businesses who are looking to fill jobs (video here). Those individuals go through a week long, rigorous curriculum to help them with hard and soft skills so they are better candidates. It’s a hands-on initiative to change lives one at a time.

And how did the mock interviews go? Well, some went well, but others were difficult. For both me and the candidate I was interviewing. One interview in particular was with a middle aged woman (I’ll call her Mary) who just got out of prison for theft and was battling an addiction to drugs and alcohol. She’s been free of both for the last eight months and committed to getting her life turnaround. For the interview, I used scripted questions provided to me. They were what you might expect for interview questions; “Tell me about yourself”, “Why do you want to work here?” “What are your greatest strengths“, etc. As interview questions go, they were fairly soft and not too difficult for the average person. Mary and I journeyed through the interview process but I could clearly see she was nervous and unsure about the whole thing. Her hands shook, her voice quivered and her eyes darted back-and-forth. After the interview we talked about what to expect in a real interview and we also spent time talking about her struggles and her commitment to overcoming them for a better life. When we were done Mary was much more at ease and feeling more confident. I let her know if she was determined she would make it. And she is determined. And she will make it.

Also with us that day was a gentleman I met a year earlier at an MMAC meeting, Paul Truess. Paul was at the Joseph Project giving a presentation on leadership and teamwork to the candidates. After Paul’s presentation I walked up to him and asked him, “What are you doing here?” Paul said, “I’m here because of you!”. I was puzzled (even more so than usual). Odd, I never introduced Paul to the Joseph Project. But then Paul reminded me I had invited him to a tour of Lakeview Technical Academy for a IBAW Business Behind the Scenes event a few years back. It was at that tour Paul met Orlando Owens who is on staff for Sen. Ron Johnson’s office and, it just so happens, that Orlando is heavily involved with the Joseph Project. The two of them hit it off and Orlando told Paul they were looking for someone like him to help. “Why not come by for a tour and and see for yourself what we’re doing?”, Orlando asked Paul. Why not indeed? Now Paul volunteers time helping turn people’s life around. That happened because of the IBAW. My third example for you involves our newest IBAW member, Saint Marcus School, in Milwaukee’s inner city. The Superintendent of St. Marcus is Henry Tyson who was our featured speaker at the December meeting with the topic “What Business Can Learn From A Choice School.” There was such interest at that meeting I decided to follow it up what’s the Business Behind The Scenes tour of St. Marcus. Our tour was well attended and Tyson gave us an unfiltered, sometimes harsh, reality check of what takes place at an inner city school. After the tour several members and guests stepped up to volunteer in some capacity at the school. Once again, IBAW makes an impression and another positive impact is taking place.

And finally one more example of IBAW working its Mojo.

As many of you have no doubt heard, several weeks ago Busch Precision on Milwaukee’s northwest side was suddenly shut down after a recent acquisition by private equity. Mike Mallwitz, the former president of Busch Precision, has been working tirelessly to find work for his former employees. Both my wife, Sue, and I have been working our connections to get Mike’s workers placed in a new work environment. This makes sense doesn’t it? I mean after all, you have all these skilled workers suddenly out in the cold and to try and match them up with businesses who need skilled workers just makes sense.

Now you may be saying to yourself, “Great job on all this, Steve!” But really, without your financial support, none of would have happened. YOU are the reason this happens. YOU are the George Bailey responsible for changing the course of several people’s lives. Because of your financial support of IBAW we’re able to do these things.

Often, when I am out trying to recruit new IBAW members, the main reason people won’t join IBAW is because they don’t have enough time to attend the meetings. I realize it’s difficult for many of you to attend monthly meetings or be involved with the IBAW on a regular basis. But you should know that even if you can’t attend meetings regularly doesn’t mean the IBAW isn’t working hard behind the scenes to make Wisconsin business, and the community that supports business, strong.

Without your support, both moral and, yes, financial, none of this would have happened.

YOU are the reason it’s all able to take place.

Thank you, George Bailey.

Steve Appreciate the great group you brought in to see what is happening at St. Marcus School.

Three attendees have already expressed interest in volunteering.

Thank you for being such great connector!

- Heather Schubert, St. Marcus School

So great to see you at the Joseph Project this past week. Thank-you again Steve for being the ultimate connector that helped me find the Joseph Project.

The benefits of IBAW go beyond helping build business to helping build the community we live in. An IBAW hosted tour of Lakeview Tech with Wisconsin US Senator Ron Johnson led me to an introduction to the Joseph Project – Senator Johnson’s faith based training initiative for Milwaukee central city job seekers, connecting companies that desperately need reliable workers with motivated job candidates who desperately need solid full-time employment.

-Paul Truess, Power Test, Inc.

Steve, I have to tell you again what a great event the St.Marcus tour was on Monday, but I want to add a little more.

On Saturday morning I gave a presentation regarding USO Wisconsin to a VFW group in Madison. With not much else to to that day I decided to stick around and see what the women's march on State Street would look like. To be fair, there were plenty of pretty normal looking but mad people. It dawned on me during the drive home that they were unhappy enough to vote for this single issue or that one next time. For the first time in my life I decided to become politically active as opposed to simply always voting and keeping my options to myself.

Frankly I was annoyed why I even needed to do this. Why are people so different in their view of right and wrong for our country vs. mine? Getting active became worthwhile with the St Marcus visit. What a wonderful place. I wondered how any elected official could work against choice schools.

Where were their priorities? Certainly not the kids, although they most likely believe so.

So I wrote a check to the school and called Sen. Tammy Baldwin to tell her I don't agree with her not supporting a school choice advocate like Sec. of Education nominee Betsy DeVos. I also sent an email to my kids in IL and CO with link to their Sen. to do the same.

I'm not annoyed anymore. Rather thrilled to be in the fight. Thanks for making that happen.

Tim Flatley

Getting out of Hot Water Leads to IBAW

Construction Looming?

MESSAGE FROM THE BOARD Early planning and communication is critical.

Bob Gross Every month the IBAW gives its board members an opportunity in this magazine to tell how and why they became involved with the IBAW and why it’s important for you to do so as well. This month it’s my turn to tell my story.

Board Stats

For over 25 years, the company I founded, Gross Automation, has grown to become the premier valueadded distributor of best-in-class industrial automation and electrical control components, panels and systems. We help OEMs, systems integrators and all types of manufacturers increase their productivity, lower costs and grow profits through proven applications of industrial automation and electrical control technologies. Over 100,000 customers have come to trust our company to provide the parts and components they need to produce their products or run their facilities.

Name: Bob Gross

Things had been going fairly well for my business through 2009 and 2010 but we were starting to experience a slowdown in our rate of growth. It was the early part of 2011 when my phone rang. IBAW board member Tim Peterson had an idea for me. Tim explained the IBAW and Reliable Water Services were partnering up for "How I Got My Business Out Of Hot Water" Business Challenge. He thought we had a compelling story to tell. To me, it was just a simple issue with financing for growth. It took time, energy and a whole lot of effort. In the end, there were issues to be discussed and lessons to be learned. And I wanted to share what we had learned so other business owners might avoid what we went through.

Member Since: 2011

Company: Gross Automation

Joined Board: 2013

So, I wrote it up and submitted it.

To my surprise I received a call from Lynn Robinson of Reliable Hot Water congratulated me on taking first place! Talk about some encouragement and positive energy flowing in my direction when it was most needed! Along with the 2nd and 3rd place winners, we each presented our story at the next IBAW meeting. Our compelling stories - and more importantly our solutions - were presented in a panel format to the membership. After the meeting broke up, I was asked to join the IBAW. How can you say no?

While this specific program no longer exists, it impressed upon me the value of learning from others and asking for advice. Every IBAW meeting has a speaker and a theme. From politics to education, they are relevant and informative for the busy business owner. Since 2011 when I joined, I have never regretted doing so. In fact, I feel so strongly enough about it, I continued to become more involved. Now, I’m on the board!

So, get up and get involved with the IBAW. The benefit to you is that while you never know who you will meet there, it will have an effect on how you and your company develop!

Bob Gross

Independent Business Association of Wisconsin

MONTHLY MEETING More Than Just Multiples: Things All Sellers Should Think About When Considering a Transaction.

Friday, February 17, 2017 | Time: 7:00 am - 9:00 am |Location: Wisconsin Club, 900 W.Wisconsin Ave.

Whether you're thinking of an exit strategy by looking to sell your business OR if you're interested in expanding your business by acquisition, there are specific items that need to be checked off to make sure the deal works to everyone's satisfaction...especially yours.

Most business owners understand that the business’s performance and the state of the broader market have an impact on value, but often do not realize how much of an impact variations in the actual approach to selling the business, such as the key takeaways listed below, can have.

Key takeaways:

Presenter Joe Froehlich, TKO Miller.

• Defining an owner’s objectives in a sale ahead of going to market • Presenting the correct “story” • Identifying the correct universe of buyers • Creating competition among buyers • Leverage/control over the process and exchange of information

LOCATION

THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE

7:00 AM

REGISTRATION & NETWORKING

7:30 AM

BREAKFAST & PROGRAM

9:00 AM

PROGRAM ENDS

To register, CLICK HERE.

“REINS” Act

Will Reign in Bureaucracy When it comes to our system of governance, most of us who took a civics course in high school were taught pretty much the same thing. Most fundamentally, we learned about the three branches of government, how the Electoral College works (just fine), and how a bill becomes a law.

Eric Searing, Special Consultant for the IBAW

Later on, as adults we learn how the government (federal, state, or local) is more involved with our lives than we had imagined. Depending on where you live, you might have to ask your local unit of government for permission to do something on your own private property like putting up a fence. In your professional life, you might need a license or licenses issued by the government to do your job. You also might have to fill out special forms or retain specific records for a period of time, because the government requires you to do so. If you own a business, it seems that the government is always interested in what you’re doing.

The persistent presence of government telling you what is permissible on your property or in your business oftentimes goes beyond our common understanding of the law. Here is when we learn about the harsh realities of regulation and dealing with an unelected bureaucracy. The worst part is, it exists at virtually all levels of government.

Absent in those civics courses we took, was any discussion of the topic of what bureaucracy is. Whenever our respective legislative bodies pass new laws that expand the size and scope of government, they are empowering agencies run by unelected officials, bureaucrats, to create and enforce new regulations.

Not all regulations are bad. Some are very necessary. On the other hand, most employers – especially small business owners will tell you that between state and federal regulations, they have gotten excessive and costly.

At the federal level, President Trump and Republican Congressional leaders have vowed to ease regulations and take on the leviathan that is federal bureaucracy. At the time of this writing, President Trump just signed one of his first executive orders granting federal agencies the power to minimize “the economic burden” of the Affordable Care Act. Here at the state level, lawmakers have been making attempts to reign in state regulations for a number of years now. In 2011, Governor Walker signed Act 21 into law which among several changes, narrowed the rule-making authority of state agencies and gave the Governor the authority to approve or reject a proposed rule.

Last session, another piece of regulatory reform legislation authored by State Representative Adam Neylon (R-Pewaukee) and Senator Devin LeMahieu (R-Oostburg) called the REINS Act (Regulations from the Executive In Need of Scrutiny) made it through the Assembly, but failed to get a vote in the Senate. With a new legislative session just beginning, both lawmakers have since reintroduced the legislation with the backing of a number of business organizations.

If passed, the REINS Act would require approval from the full Legislature for any new regulation that costs $10 million or more to implement. The proposal also would give lawmakers the ability to request independently-prepared economic impact analysis documents for proposed regulations. Lastly, the legislation empowers the Legislature to require agencies to hold public hearings on a proposed rules’ scope statement before they begin drafting the new regulation. Right now, agencies are only required to hold a public hearing after the proposed regulatory rule has been written.

Regardless of what party is in power, there will always be some degree of bureaucracy. Whether we like or not, most of us accept it. At the same time, it is good to remind ourselves and those running the government that the Preamble to the Constitution doesn’t start off with “We the Regulators,” and the Gettysburg Address doesn’t reference “a government of the bureaucrats, by the bureaucrats, for the bureaucrats.”

At the end of the day, people want and expect accountability from their government. What they don’t want is an autonomous and unaccountable bureaucracy. For too long, that has been the case. Here in Wisconsin, Representative Neylon and Senator LeMahieu are working to change that. At the core of the REINS Act is the issue of accountability. By passing the REINS Act, our elected officials will be able to ensure that our bureaucracy is accountable too.

UPCOMING EVENTS Sales Roundtable: The Difference Between a Winner and a Presenter Monday, January 9th 2017 | Time: 7:30 am - 9:00 am | Location: CT Access, 740 Pilgrim Parkway, Elm Grove

Presenter: Scott Seroka, Seroka Brand Development

How confident are you that you’re giving your prospective customers the best possible presentation on your product, your service, and yourself? When a sales opportunity has vanished, the prospective customer will rarely give candid feedback on your presentation unless you ask for it. Unfortunately, by then, it’s too late. The sale is gone.

Here’s the deal – bring your presentation to our next sales roundtable where fellow sales professionals will give you their undivided attention and give you the feedback you need to either confirm its effectiveness or provide ideas for improvement. Just think – one small change could make the difference between being a presenter and a winner. And, if you like, we’ll even record your presentation so you may see how others see you.

Each participant will have up to 12 minutes of presentation time with up to 12 minutes of feedback.

Registration is required. Click here.

Business Behind the Scenes: Carmex Tuesday, April 4 2017 | Time: 1:00 pm - 3:00 pm | Location: 9750 S. Franklin Drive, Franklin, WI. Alfred Woelbing, like many people, suffered from cold sores. Unlike many people, he had an entrepreneurial spirit and a knack for kitchen chemistry.

Alfred decided to solve his painful condition for himself, and concocted a remedy for his cold sores. In 1937, he began making Carmex® by hand, pouring the medicated lip balm into the familiar jars in his kitchen.

His sales method: visiting pharmacies one by one. If they weren’t interested, he gave them a dozen jars for free—along with a postcard to reorder. In no time, the pharmacies sold the free samples and the reorder forms started coming in.

Today, Alfred’s grandsons, Paul and Eric, run Carmex selling the product world wide.

We’ll tour both the Carmex laboratory and production facility. Join us for an afternoon for a great Wisconsin success story, inspiration and true entrepreneurship.

Cost: Free. Open only to IBAW members

Save the date - registration opens soon!

Update From Representative Rob Hutton Representative Rob Hutton, 13th Assembly District

Inauguration Day “I am honored and humbled by the trust the residents of the 13th Assembly district have placed in me. As I embark on this new session as your Representative my goal remains the same: to eliminate waste and remove burdensome government barriers for economic growth.”

I have been appointed to serve as Chair of the Government Accountability and Oversight Committee as well as Vice-Chair of the Corrections Committee. In addition I will also serve on the Federalism and Interstate Relations, Regulatory and Interstate Relations, and Small Business Development committees.

Establishing Government Neutrality on Public Construction Projects I recently introduced AB24 which promotes government neutrality regarding Project Labor Agreements (PLA’s). The bill has seen widespread support with 43 co-authors received a public hearing on January 4th in the Assembly Committee on Labor.

This bill will prevent government entities from requiring a PLA, which often requires a contractor to enter into a collective bargaining agreement as a condition of bidding on a project. By doing this we will open up the bid process to more contractors to bid on projects that are funded by taxpayer dollars.

Current law allows for government entities to require PLA’s as part of a contract. This often fences out contractors who are otherwise well qualified to bid on a project. By opening these taxpayer funded projects for more contractors to bid on, we increase competition, which results in more value for taxpayers.

State of the State “I was encouraged to hear the goals put forward by Governor Walker during the State of the State address. As the Governor stated, we have made real progress in lowering taxes and in creating an environment that increases economic opportunities for all citizens in our state.”

“Wisconsin’s unemployment is at the lowest rate in 15 years and more people are employed now than at any point in Wisconsin history. Property taxes are down and we are projected to end this budget with a surplus. The future is indeed bright.”

“I look forward to partnering with Governor Walker to find solutions for the issues that still confront our State. We must continue to improve career readiness through expanded educational opportunities and eliminate government inefficiencies in order to ensure that we are providing the best value for taxpayers.”

Helping Milwaukee County's Public Safety and Youth Last session, I was the chair of the Assembly Committee on Corrections. During this period I spent many hours in discussions with Department of Corrections (DOC) staff, touring at their facilities, and examining their process from intake to reentry. I have approached this field with a mindset that the DOC’s first priority is obtaining safety and protection for victims and our communities. Their second focus is correcting the offenders so when they reenter the community (as 95% of them will) they will be able to be productive members of society.

The City of Milwaukee has experienced a wave of carjackings and more youth are being arrested for violent crimes. Many of the youth committing these crimes are then found to have lengthy criminal records and pending cases. What we continue to hear is that youth are not being held accountable for the initial crimes they commit and law enforcement are constantly arresting the same youth over short periods of time. This is reflected by the breakdown in our juvenile intake system that sometimes allows for up to two months before the youth is charged and seen in court. I will be working on legislation to streamline the juvenile intake process to provide accountability and the appropriate punitive measures for youthful offenders.

: S E L A S

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

Today, many companies are obsessed with digital marketing: web pages, emails, social media, native advertising, pay-per-click ads…. What has gotten lost in the shuffle is the cost-effectiveness and value of integrated marketing – using a combination of online and offline channels to build brand awareness and generate sales leads.

Bob Wendt, Cultivate Communications

In particular, integrating your direct mail and web strategies can pay big dividends. Several years ago, Harvard Business Week found that integrating direct mail and email provided noticeably better results for businesses than using either medium alone. On average, businesses increased their order value by more than $3 when using the

two mediums combined, while also getting a 25% response rate.

If you find yourself struggling for ideas to integrate your next direct mail piece with a web component, we’ve got you covered.

Here are eight ideas to get you started: 1. Include a direct link to your website or blog. If your direct mail piece generates interest, make it easy for the recipient to find you on the web. These links can be refined by creating short code versions from bitly.com or tinyurl.com.

2. Use a personalized URL (PURL). This can really enhance the user experience by moving someone from a personalized printed piece to a personalized web page. If your data supports it, you can program that web page with preferences you already know about the client. Once the client gets to this personalized microsite, your business can easily acquire individual responses and data.

3. Include social links. One of the easiest ways to integrate direct mail and the web is to add links to all of your social media platforms. (Check out this story of what Six Flags Great America did to effectively use multiple social media channels to create a stellar customer experience).

4.. Take a hybrid approach. We’ve had excellent response from campaigns that lead off with a direct mail piece, followed by a series of emails. The direct miler makes a strong first impression, which is then reinforced by several emails.

5. Expand your email list. Purchase a direct mail list of people who match the characteristics of your target audience. Send them a direct mail piece with a gated offer to download a special report, interview or other content asset that’s focused on their needs. Once you have their email address, you can send them emails to nurture them down the path to a sale.

6. Use direct mail to trigger an email autoresponder. First, design a direct mail piece that offers a free report, eGuide or other valuable piece of content. It should point them to a landing page on your website that requires them to register to download it. When they do so, it can trigger an autoresponder email series that delivers a series of emails at pre-programmed intervals, designed to nurture them along the path to a sale.

7. Use direct mail to follow up on customers who have stopped responding online. Direct mail’s excellent open rate makes it a great tool for contacting prospects who haven’t been opening your emails. A single direct mail postcard can “reactivate” people in a way that email can’t.

8. Use direct mail as a re-engagement tool. If you have a key message that isn’t being read by email, segment your list into openers and non-openers and use direct mail to reach the people who aren’t opening your emails.

Direct mail is a communication channel that can be very effective if properly and creatively executed AND if it includes a web response component. It just takes a little planning to find the right “hooks!”

Bob Wendt is president of Cultivate Communications in Brookfield. He can be reached by email. Click here.

Personalized Digital Marketing - It’s Not Just for B2C Anymore Rachel Carter, Senior Digital Marketing Strategist, Northwoods Web Solutions

For years, consumers have enjoyed (and come to expect) a certain level of personalized marketing from their favorite B2C brands. Who hasn’t received a follow up email from Target highlighting a recently browsed product or seen a Facebook ad promoting a favorite restaurant?

B2C companies adopted personalized marketing early and hopped ahead to dominate the field. B2B companies, meanwhile, have again plodded along as the tortoise in the digital marketing race, but perhaps for some pretty good reasons.

Cost and lack of information about their targets have blocked most B2B companies from taking advantage of personalization. If you don’t know exactly who your customers are, how can you begin to personalize a digital marketing campaign? You can’t.

So, B2B marketers, figure out who they are, then adopt and implement effective, cost-efficient personalized digital marketing tactics. You can make them work for your business. So let’s begin.

What? You object? OK, OK. We’ll take a minute to review -- and overrule -- your objections.

Why Personalize B2B Digital Marketing?

Many B2B executives don’t see value in personalizing marketing efforts. After all, they argue, the experience of purchasing a rug from Target for your living room differs in kind from buying widgets for your warehouse. Target tries to appeal to your emotions: “Buying this rug will surely make yours the coolest living room in the neighborhood!” B2B digital marketing appeals to business-first, calculating rationality: “This widget is made from quality material that can withstand the rough and tumble conditions of your warehouse at an advantageous cost per unit.”

Of course, anyone who’s ever engaged in actual sales knows that the process is rarely so frosty. Even in a commodity B2B setting, personalization creates positive connections, which can be leveraged with customers and prospects throughout the sales process.

And because B2B personalization isn’t as prevalent as it is in the B2C space, including it in your digital marketing efforts can help your company stand out from the crowd. Maybe you can’t catch up with those B2C hares, but you can still win a prize by finishing first in a race among tortoises.

How to Personalize B2B Digital Marketing 1. Figure out who your digital customers are. One of the biggest benefits of free analytics programs, such as Google Analytics, Search Console and social media analytics, is the wealth of information they collect about visitors to your website and social media followers. For example: Enable demographic reports within Google Analytics not only to capture such details as age, gender and location of your visitors, but also to highlight topics of interest to them. Facebook Insights, tools in Twitter and YouTube, and LinkedIn Analytics provide similar data about your followers on those social networks.

Once you know your customers better, you can personalize your marketing by aligning campaigns and content with their characteristics and interests. Even if collecting demographic information about customers and prospects is your only means of personalization, you can use that information to write content that appeals to customers’ interests, for example.

2. Make your emails personal. If you’re already sending out mass email blasts, it’s simple to personalize your messages, including, at the very least, a user’s name in your message.

A marketing automation system makes it easy to add another level of personalization that reflects a user’s interests, as revealed by the user’s interactions with your website. For example, if a site user filled out a form requesting information about your latest product, you can automatically follow up via email with materials about that product. Likewise, with an advanced lead scoring strategy, you can continue to engage with prospects and customers by focusing on their interests.

(The best part of marketing automation? It’s automated. Which means less work for you. Check out our tips for developing MA strategy.)

3. Personalize your digital advertising efforts. Traditional advertising is one-size-fits-all: Develop a single ad (or two), push it out via mass media and hope it resonates with your target audiences.

Digital advertising, on the other hand, can be completely customized and personalized to reflect your target audiences’ exact interests and needs. For example, implementing a Google Search Display campaign can highlight products or services your customers have already browsed by displaying relevant ads on relevant third-party websites. You can use the Custom Audiences feature on Facebook and Instagram to advertise directly to users, if you have their email addresses. For example, if you’re running a campaign to promote a new line of products, you can send an email message promoting the line and then mirror that messaging with ads on Facebook. The best part? Both options are very targeted and often inexpensive.

4. Personalize your website. No, we’re not recommending that you create a new website. Instead, create targeted landing pages to align with your personalization campaigns. If you send out a mass email to a category of dentists highlighting the attributes of your latest product for their particular line of work, the links in the email should take them to a landing page related specifically to that product and to those dentists’ specialty.

If the same product could be of use to a certain category of doctors, send out another email highlighting the relevant product attributes and containing links to a doctor-specific landing page. This may mean you’ll create multiple landing pages for every digital marketing campaign, but you need not reinvent the wheel every time you add a level of personalization.

Instead, use the same page layout and adjust the content as needed. (Bonus tip: If you use an advanced content management system, such as Titan CMS, just copy pages and adjust content in your blocks.)

These customized landing pages personalize customer experience and boost the overall user experience of your site. And that always gets you a few steps closer to the finish line – a sale. " Rachel Carter specializes in content marketing and social media within the Northwoods digital marketing department. She focuses on developing content strategies for customers like Vollrath, HED, Lutheran Social Services, and many others. Rachel draws from best practices, current trends, and previous experiences to help clients meet their digital marketing goals.

The Issues Impacting Wisconsin Business One of the hallmarks of the IBAW is to keep business owners informed on important topics coming out of Madison in Washington D.C..

The IBAW has released topics we feel are important to you and give you the challenges and opportunities for each.

Many of these issues can be complex. It’s IBAW’s job to distill down issues and present them in a manner that’s easy to understand and quick to read.

Read these White Paper Issues at our website: IBAW.com.

• REGULATIONS • TAXES • WORKFORCE • ENERGY • HEALTH CARE

Poor Economic Growth in 2016, and What’s Ahead Raymond J. Keating, SBC Council, Washington D.C.

Economic growth during the last quarter and final year under President Barack Obama was, unfortunately, dismal.

A Story of Weak Economic Growth Real GDP in the fourth quarter of 2016, according to data released on January 27 by the U.S. Bureau of Economic Analysis, came in at a mere 1.9 percent, and for all of 2016, real GDP growth registered a woeful 1.6 percent. After the recession came to a close in 2009, that 1.6 percent growth tied for the slowest annual growth rate during this poor recovery.

Since this period of recovery/expansion began in mid-2009, real GDP growth has averaged only 2.1 percent. That compares to an average rate of 3.1 percent over the past six decades, and an average rate of 4.3 percent during periods of recovery/expansion. That is, growth has run at a fraction of where it should be.

Another point to consider is that throughout his eight years in office, real annual GDP growth never exceeded 2.6 percent (2015). No other president since Herbert Hoover has registered such a poor performance in terms of annual GDP growth.

As for the fourth quarter data, consumption slowed compared to the previous two quarters, nonresidential (or business) investment inched ahead by only 2.4 percent (having now performed poorly for over two years), and exports were down by 4.3 percent (biggest drop since the first quarter of 2015). On the positive side, residential (housing) investment grew by 10.2 percent, and imports were up by 8.3 percent (indicating a big of life in the domestic economy).

While President Obama most certainly was dealt a very bad economic hand upon entering office, his subsequent policy decisions worked to undermine any robust economic recovery, as he focused on increasing regulatory burdens and taxes, expanding federal spending and debt, and largely abandoning U.S. leadership in advancing free trade. Raising costs and creating negative uncertainty for business and investors, and diminishing incentives for entrepreneurship is not a sound economic agenda. The result of one of the worst economies on record should have surprised no one.

The Future of U.S. Growth Looking ahead, polls have pointed to an increase in small business optimism since Election Day, and that’s most welcome.

However, the Obama economy will not be transformed immediately.

(See the latest Small Business Insider blog post on small business optimism, or my recent appearance on MSNBC’s It’s Your Business.)

Indeed, as it takes time to change policies, the Obama economy likely will linger for a bit. The speed and substance of positive policy changes from the Trump administration – such as pro-growth tax and regulatory relief, and reining in government spending – will play a central role in creating a dramatically improved domestic policy environment upon which business, investment, entrepreneurship and the economy can grow. At the same time, early actions and statements from President Trump on international trade are adding negative uncertainties to business and investment decisions.

As with the past Administration, the future of growth will be dictated by actual policy actions – entrepreneurs are certainly hoping for growth-oriented ones from the new Administration that support their businesses and aspiration for growth. _______ Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

Avoid This Deadly Mistake When Defining Your Brand Scott Seroka, Seroka Brand Development The executive team of a Wisconsin-based manufacturer was exhausted and frustrated from being in a perpetual state of rebranding. The company recently completed three acquisitions and needed to bring clarity to its global brand. Everyone on the team had strong, yet conflicting opinions about what the brand should be, and what kind of marketing messages were needed to capture more business. After several unsuccessful attempts were made to define the brand internally, we were invited into their brand “rehabilitation” meeting to provide the necessary guidance for a successful rebrand.

We started the meeting with performing a post-mortem on their last two branding initiatives so that we could understand where things took a wrong turn. In both cases, we learned that the leading question by the CEO to the executive committee in the brand development process was, “What brand message do we need to generate more sales?” And although that may seem like a logical approach, both initiatives were doomed to fail from the beginning because of a common, deadly mistake – not asking the right question.

Instead of leading with, “What brand message do we need to generate more sales?,” the better question should have been, “What are the relevant, meaningful and distinct reasons customers should believe in our brand and buy from us instead of our top competitors?”

The first question does nothing more than encourage the group to offer reactionary and random thoughts about what they believe the brand message should be. Unfortunately, typical responses often include answers such as industry leader, most innovative, premium quality, best-in-class service, etc. The problem with these statements is that they are very common and generic, thereby offering no relevance in the minds of customers as they travel through their brand consideration process. However, the second question forces the group to dig much deeper into the well of the company’s tangible and intangible assets so that they may emerge with a meaningful and relevant value proposition that would influence a new customer relationship.

Common roadblocks Oftentimes, companies end up “settling” for a brand that is either soft or not as strong as it could be for one or more of the following reasons: 1. In the brand discovery process, the CEO or the group placed too much emphasis on the wrong area - designing a brand that would merely sound better and look better than the competition, and not enough consideration to its internal assets.

2. The group's inability to reach a consensus on what the brand should be, eventually succumbing to frustration and creative fatigue.

3. People from different roles within the company were not invited to participate in the brand discovery or development process. Staff members from HR, accounting, product development, distribution, service, sales, marketing, and even from IT all bring valuable and much needed insights to the discussion.

4. The CEO, the one who risked it all by starting the business does something that is perceived as “safe” – creating a brand that is only slightly different, but not too much different, than the competition. In other words, s/he created a brand that is not substantive enough to motivate someone to strongly consider or switch over from a competitor.

I challenge you to ask yourself, “What are the relevant, meaningful and distinct reasons customers should believe in our brand and buy from us instead of our top competitors?”

Next, ask yourself if you believe your answer is compelling and convincing enough to pull people away from your toughest competitor. If it’s not, let’s talk.

MI POLICY www.maciverinstitute.com

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A Glide Path to a 3 Percent Flat Income Tax

Executive Summary

S

ince the beginning of his tenure, Governor Scott Walker has made tax reform a priority for Wisconsin. Walker has said he hopes to lower the tax burden every year of his term. Thus far, he has stuck to his pledge, having lowered taxes by $4.76 billion in under six years.

Both the amount of taxes and the different types of taxes that Governor Walker has cut since he took office is impressive.

It should not be simply glossed over how much progress Wisconsin has made reducing taxes in recent years. In 1994, less than 25 years ago, Wisconsin ranked 3rd nationally in overall tax burden and our taxes were 16 percent above the national average.

Today, property taxes are at the smallest percentage of personal income since 1945, 3.6 percent. The average homeowner in Wisconsin, in 2016, paid $116 less in property taxes than he or she paid in 2010. According to the Department of Revenue, the typical family in Wisconsin has seen their income taxes cut by $1,159. Wisconsin’s state and local tax burden, as reported in December 2016 Census Bureau data, fell to 10.8 percent of personal income, the 16th highest among the states. By comparison, the year prior, Wisconsin’s tax burden ranked the 15th highest at 10.9 percent of personal income.

While Walker and the Republican Legislature should be lauded for all the taxes they have cut, these tax cuts have done little to improve Wisconsin's overall tax ranking.

Similar to the Census Bureau data mentioned above, the nonpartisan Tax Foundation’s most recent ranking of state and local tax burdens puts Wisconsin at the 12th highest in the nation and third highest in the Midwest. In the same study, the Tax Foundation found that state and local taxes take up over 11 percent of all personal income in Wisconsin every year.

Clearly, it is time to think

Wisconsin's top rate of 7.65 percent is the 9th highest top rate among the 43 states with an income tax.

The bottom rate of 4 percent is the 4th highest among the 33 states with a progressive income tax. about the next big and bold reform that will transform our state and make Wisconsin an economic powerhouse for generations to come. It is time for a flat tax in Wisconsin.

Wisconsin’s reputation as a high-tax state has a significant impact on the state’s ability not only to attract newcomers, but also to retain those who are already residents. Annually, Wisconsin loses an estimated $136 million in adjusted gross income to tax migration. The high tax burden drives individuals to leave for those states with lower tax burdens or no income tax at all, such as Florida and Texas. One study, which examined Internal Revenue Service data from 1992 through 2015, showed that Wisconsin lost $3.40 billion in wealth to Florida, $1.08 billion to Arizona, and $769.15 million to Texas during the 23-year period. In that time, almost 93,000 people migrated from Wisconsin. The 93,000 residents that Wisconsin Figure 1 has lost to migration is more than the entire population of our fifth largest city, Racine. The loss of so many individuals, their businesses, and their economic activity does not bode well for the economic future of the state.

Lower, flatter income taxes are one way to help stem the tide of out-migration from Wisconsin.

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Low, flat state income tax rates are indeed common throughout the country. Seven states levy no individual income tax at all.

New Hampshire and Tennessee currently tax dividend and interest income, though recent reforms in Tennessee have set a glide path to total elimination

www.maciverinstitute.com of the income tax in 2022. Eight states have flat individual income tax structures, and 33 states, including Wisconsin, levy progressive tax rates based on income level.

Figure 2

In today’s mobile economy, every state must compete for new residents and new businesses or risk losing them to other states. While climate and the local job market are big factors in a person’s decision to move, a state’s tax burden plays an important role in keeping recent graduates, people looking for a better life, and retirees from moving to a state with a lower tax burden.

The personal income tax, not just the corporate tax, is also becoming a bigger factor in the financial health and growth of businesses. The number of pass-through entities has nearly tripled since 1980, making pass-through businesses the most common business form in the country.

Pass-through entities are not subject to typical corporate taxation, but are instead taxed under the individual income tax. Profits are passed through to the shareholders or partners of these companies and become part of their income. More than half of Wisconsin’s workforce is now employed by pass-through businesses, giving the individual income tax even greater importance to the livelihoods of Wisconsinites and the success of their businesses. In Wisconsin, pass-through businesses pay a top marginal

“I think it’s a great time to talk about [a flat tax] because Walker and the Republicans now have proven that we have adults running our budget.” - Jay Weber

income tax rate of over 48 percent - the 8th highest rate in the country.

Taking nearly half of a company’s income is detrimental to success and economic growth.

Many states are wising up to the fact that high income taxes hurt competitiveness by punishing success and hard work. Despite the rhetoric that progressive taxation results in a fairer outcome, evidence shows that progressive income taxes are actually associated with higher income inequality.

THE SOLUTION: A 3 PERCENT FLAT TAX This report sets out to explain why Wisconsin should continue to ratchet down its relatively high individual income tax system and many different rates to one flat rate. Evidence from a variety of sources - economic, social, and fiscal health metrics, as well as academic studies demonstrates the benefit of a lower and flatter income tax structure. After examining Wisconsin’s position within the Midwest and considering recent reforms around the country, this report will recommend that Wisconsin transform its progressive income tax to a flat 3 percent tax rate for all taxpayers over an eight year period. In subsequent papers, we will continue to build our case through a comparison with Indiana, a state similar in size and demographics to Wisconsin, and will recommend specific steps that Wisconsin can take to make a flat tax a reality.

A systematic glide path to a 3 percent income tax rate would give Wisconsin the most competitive income tax among Midwestern states while greatly improving the state’s attractiveness on a national level. Such a move would have a significant impact on the incomes of all Wisconsinites and Matt Crumb, former researcher at the MacIver Institute, also contributed to this report.

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A Glide Path to a 3 Percent Flat Income Tax most importantly, allow working class people to keep more of their income. A 3 percent flat tax would be a tax cut for everyone in Wisconsin. Under the current "progressive" tax code, our lowest tax rate of 4 percent for those who make just $11,120 per year is the 4th highest tax rate among the 33 states with a progressive income tax system.

Spacing out the rate reductions over a number of years also protects the state budget from sudden and steep revenue drops, giving legislators sufficient time to make gradual adjustments so the transition to the new tax system is as smooth as possible.

If Wisconsin is serious about becoming a high-performing state in a 21st Century economy, it must continue its recent

States with the most progressive income taxes have the greatest income inequality. States with no income taxes have the lowest levels of income inequality. tax-cutting momentum to fundamentally change the fiscal trajectory of our state and to lighten the tax burden for its hard-working residents.

Our economic future depends on it. v

Figure 3

*Iowa, Ohio, and Wisconsin's brackets are indexed annually for inflation; for simplicity’s sake, this chart does not include those additional values.

All rates listed are for single filers for 2017, or 2016 if the state's Department of Revenue has not yet updated rates at the time of this publication.

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Business Behind the Scenes: St. Marcus School On the morning of January 23rd, IBAW members took a tour of St. Marcus School. The Choice school located at Palmer Street and North Ave. is giving new hope to children in Milwaukee’s inner city. The tour was a follow up from our December meeting of “What Business Can Learn From A Choice School.” For more information about St. Marcus, visit their website at www.stmarcus.org/school

← Pre Tour Overview St. Marcus Superintendent Henry Tyson briefs IBAW members on the Schools Morning Activities.

Daily Class Briefing → For kids in the upper grades, the morning starts out with a daily report from each class.

← Classroom Visits

IBAW members were able to sit in on classes and experience firsthand how teachers and students interact with each other.

Shhhh....Testing Area → We tip toed past this room.

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Learn the benefits of membership at IBAW.com

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Craig Coursin Stier Construction

Scott Seroka Seroka Branding

Charles Fry Robert W. Baird

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Dan Hansen Waukesha State Bank

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.

Articles submitted by our members & sponsors.

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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