JULY 2017 July 10th Sales Roundtable
“Raising the Dead...Lead
July 21st High Powered B2B Digital Marketing
Using Social Media to Build Your Brand and Generate Leads
Inside This Issue:
MILLER:
SOBIC:
COMMUNICATING WITH YOUR EMPLOYEES ONCE YOU’VE SOLD YOUR COMPANY
MISSED OPPORTUNITY TO IMPROVE THE STATUS QUO
KEATING:
SEROKA:
PROTECTING AND ADVANCING FREE TRADE: PRINCIPLES FOR RENEGOTIATING NAFTA
A MANUFACTURER’S ANTIDOTE TO COMMODITIZATION
Welcome New IBAW Board Members
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.
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IBAW thanks AT&T for it’s continued sponsorship.
IBAW MEDIA LINK Budget Meetings Continue Behind Closed Doors
Executive Director Steve Kohlmann President Dan Hansen Waukesha State Bank Secretary Charles Fry Baird Treasurer Casey Malek Sikich Directors
MacIver News - Wisconsin Republicans met several times behind closed doors on Wednesday hoping to find a solution to wrap up the state budget, but there still didn't seem to be much consensus by the end of the day. In fact, word leaked out that the Assembly is considering a heavy wheel tax to increase transportation revenue, complicating an already contentious situation. MNS' Bill Osmulski has more.
To watch, click here.
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, July 21st
MONTHLY MEETING
7:00 am - 9:00 am
High Powered B2B Digital Marketing: Using Social Media to Build Your Brand and Generate Leads
HERE FIRST!
Lori Highby How does business - and particularly manufacturing - utilize social media and digital marketing to build brand awareness and generate leads? Lori Highby, President of Keystone Click, shares the insights and tactical strategies her agency executes for their clients. Takeaways: How to source content your target customers want and will engage with, understanding how the B2B buying process has evolved in the digital space and HOW you can be part of that process.
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
Light Off the Boilers and Prepare To Get Underway Steve Kohlmann, IBAW Executive Director
In nautical terms, the IBAW has undergone a nice bow to stern refitting the last several years. As your executive director the last three and one-half years, (Already? Geez!) a lot of effort has been made to make sure the IBAW brand, programming, and finances are on solid footing. After all, you can’t build anything without having a solid foundation When I first came onboard as your director, we had about 90 companies involved in the IBAW. Today, that number is 147. That’s a pretty good gain but we could easily accommodate double that. For an organization of our size and economic budget, we put on some damn fine events if you don’t mind my saying. I know this is true because I hear it not only from our membership but from the guests we invite to our meetings. There’s a certain energy level at our meetings and the speakers we have deliver great content. I can prove that is true because it’s not uncommon for us to host a particular speaker and then six months later, that same speaker is at another organization speaking on the same topic. Good stuff. IBAW leads the way. But our monthly breakfast meetings are only the start. We host the monthly Sales Roundtable to discuss the challenges of sales and marketing. I’m happy to report that last month the Sales Roundtable celebrated its third anniversary. In that time we’ve helped a lot of people work through their toughest challenges. Additionally, our Business Behind the Scenes events have been off-the-charts cool getting inside businesses that you normally wouldn’t have access to. We’ve toured businesses such as Bucyrus Heavy Mining, Mitchell International Airport, Carmex and the Amazon Fulfillment Center in Kenosha. By the way, getting inside Amazon is nearly impossible, but once again, the IBAW did it. First again. We also publish this digital monthly magazine that you’re reading right now which goes out to about 700 business owners statewide. No other organization does this. Not even the big organizations that are 10 times larger than us or have an operating budget 10 times greater than us can offer this to their members. So where am my going with all this? We’re ready for some serious growth. We’ve been ready for growth. But I can’t do it alone and I need your help. So today I’m challenging you, the membership of the IBAW, to bring in just one new member over the course of the next 12 months. If everyone did that we would double in size. To meet the challenge I’m going to make it really easy for you to invite a guest. If you know of a business owner or business professional who you think would be interested in the IBAW, invite them to one of our monthly breakfast meetings at the Wisconsin Club. Let me know who they are and I’ll be glad to offer them a complimentary breakfast as a free test drive to the IBAW. Not only am I committed to growing the organization but our Board of Directors is too, as well as our membership committee, and both of them are gearing up for just that. You and I have built something very unique here at the IBAW. Let’s grow this organization and help more businesses - and Wisconsin become stronger!
Sales Roundtable Monday, July 10th, 2017 | Time: 7:30 am - 9:00 am Location: CTaccess, 740 Pilgrim Parkway, Elm Grove You've tried and tried but it was finally time to stop chasing that sales lead and buried it. May it rest in peace. But wait, the Dr. Frankenstein in you thinks there's a possibility of resurrecting the dead lead. Hasn't the situation changed at the company you were working with? Is it really possible? Should you do it? 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.
Protecting and Advancing Free Trade: Principles for Renegotiating NAFTA Raymond Keating, SBE Council, Washington D.C.
On June 29, I had the opportunity to journey to the U.S. International Trade Commission. The purpose was to testify about U.S. negotiations with Canada and Mexico regarding modernization of the North American Free Trade Agreement (NAFTA). Speaking to representatives from the United States Trade Representative’s office, the State Department, the Department of the Treasury and the Department of Commerce, I was able to emphasize the tremendous benefits that have been derived from NAFTA, in particular, for small businesses. As noted in my written testimony as well, I made clear the point that all parties involved in the negotiations need to stay true to free-trade goals and principles of reducing governmental barriers, obstacles and costs that damage entrepreneurs, businesses, workers and consumers. Next, I pointed to the clear benefits of freer trade with our neighbors to the north and to the south. For example, under NAFTA, U.S. goods exports to Mexico grew by 452.2 percent from 1993 to 2016. That was more than double the growth in U.S. exports to the world. And then there is the significant role that U.S. small businesses play in trade. With Canada, 83.9 percent of U.S. exporters have fewer than 100 workers, and among U.S. importers, 64.4 percent also have less than 100 employees. As for trade with Mexico, 81.7 percent of exporters have less than 100 workers, and 74.3 percent of importers have less than 100 employees. For good measure, there has been tremendous growth in the number of U.S. businesses involved with trade under NAFTA. For example, from 1992 to 2015, there was an 81.4 percent increase in the number of U.S. exporters to Canada and a dramatic 365.5 percent increase in those exporting to Mexico. As for the forthcoming negotiations with Mexico and Canada, the message from myself, as well as others on the panel, was, first, do no harm. That is, don’t increase burdens or costs on individuals and businesses trading among the three nations. I also noted that the purpose for the negotiations must be made clear in order to reduce uncertainty for entrepreneurs and businesses; the focus should be on areas where true updating might be needed, such as relating to e-commerce and intellectual property; and finally, moving quickly would help, again, to reduce uncertainty. In the end, freer trade is simply about reducing government-imposed barriers – such as tariffs, quotas and onerous regulations – so that individuals and businesses are free to trade with each other. Indeed, it’s critical to keep in mind that trade does not, in fact, occur between nations, but between individuals and businesses. Lowering trade barriers expands opportunity for entrepreneurs, workers, businesses and investors. _______ Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.
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.
A Manufacturer’s Antidote to Commoditization Scott Seroka, Seroka Brand Development Many manufacturers continually struggle with differentiating their products to avoid having them classified as commodities. The most common, yet historically ineffective strategy to evade commoditization’s black hole is to simply offer enhanced and/or additional product features. Although a short-term solution, it is an arduous strategy to sustain for obvious reasons - competitors will quickly copy new features, say “me too,” perhaps cut prices, and perhaps add on even more features, rendering the NextGen product irrelevant. Adding to the pain will be the inevitable lower-cost products or alternatives arriving from overseas to disrupt the entire market. On one hand, this scenario provides an ideal buyer’s environment. Competition, coupled with a manufacturer’s strong desire to not have its products classified as commodities drives innovation and quality, while keeping prices competitive. But for some manufacturers, it’s a perpetuation of a vicious cycle few wish to endure, and only a handful can maintain. The way out of commoditization Hell is through brand experiences. If we look to the successes of brands such as Apple, Tesla, and Under Armour, each tells a story of how they were able to swagger away from the world of commoditization by creating brand experiences people fell in love with. And although each of these brands may not be the largest in their respective categories in terms of sales and profitability, each figured out a path to successfully build a base of loyal customers more than willing to pay a premium for their products. For example, in the world of computers, iOS (Apple) may be outsold many times by windows, but in the personal computing industry, when we think of a powerful brand, we think of Apple first – not Toshiba, HP, Dell, Lenovo or ASUS. However, not all products can be as seductive as computers, cars and shoes. If you’re manufacturing pharmaceuticals, industrial brushes, conveyors, etc. – products lacking glamour, you can still differentiate your brand away from commoditization through a combination of tactics, such as: 1. 2. 3. 4. 5. 6. 7. 8.
Manipulating product availability Delivery times and terms Flexible shipment quantities Flexible payment terms Offering extended warranties/guarantees Offering ancillary services (i.e. after sales services) Fanatically quick service/responsiveness Segmentation
Staying competitive in an industry characterized by near-identical products, overcapacity and price wars In addition to the above tactics, you may wish to invest in a good CRM system allowing you to calculate customer profitability to help decide which customers you may wish to release back into the wild. Sure, letting customers go may reduce your market share, but in the long term it will boost profitability. Other strategies include: •
Compensating your salesforce on profit margin versus sales revenues. This will help facilitate a transition to focus on your more profitable customers.
•
Changing or customizing your pricing structure so that customers cannot easily compare your products on price alone, forcing them to engage with your salespeople. After all, people don’t buy products, people buy from people.
Your customers are waiting. Give them a reason to choose you.
Missed Opportunity to Improve the Status Quo Libby Sobic, Associate Council, Wisconsin Institute for Law and Liberty
You may not know it but K-12 education policy is changing nationwide, including in Wisconsin, as states begin to implement new federal law, known as the Every Student Succeeds Act (ESSA). ESSA replaced the controversial No Child Left Behind as the federal law governing K-12 education. The law passed in 2015 with strong bipartisan support, including Speaker Paul Ryan, Senator Ron Johnson and Senator Tammy Baldwin. But how is Wisconsin complying with ESSA? Who is making the decisions and how does it affect your children? What is ESSA: ESSA requires states to enact certain policies in order to receive federal dollars, known as “Title funds,” to support public schools and students. In 2016, Wisconsin received more than $200 million in Title I-A funding alone so the stakes can’t be higher. ESSA is different from its much criticized predecessor, No Child Left Behind, because it removes the federal mandates that restrict states to the federal government’s standards and policies (like Common Core). Under ESSA, states must meet specific requirements, but the state is allowed to determine how it will meet those requirements. Therefore ESSA gives states more freedom to be innovative in its policies and customize the implementation of the law. Wisconsin’s state plan on ESSA: The most significant part of ESSA is the requirement that, in order to receive federal funds, states must complete and submit a “state plan” to the U.S. Department of Education. The state plan requires states to make decisions on how best to intervene in low-performing schools, school report cards, academic performance standards, and teacher effectiveness. In short, it will dictate the course of K-12 education for years to come. Education Secretary Betsy DeVos will review the plan and either approve or deny the state’s implementation of ESSA. Wisconsin intends to submit its state plan on September 18, 2017. One would think that the state plan would be drafted by the state legislature, the branch of government in-charge of policy. But, that is not the case, at least in Wisconsin. The state Department of Public Instruction (DPI) and State Superintendent Tony Evers have been controlling the process in drafting of the state plan. And they – and they alone – have the authority to make decisions on the plan. Last summer, Superintendent Evers convened the Equity in ESSA Council, a group of 34 members including 4 legislators and a representative from the Governor’s office, to discuss the state plan. However, the Council had no voting power and served as advisory only. Although DPI is holding statewide public hearings on the draft plan and will provide the legislature and Governor the opportunity to review it, the DPI is not required to change the state plan based on their feedback. We also raised significant legal issues about DPI’s process. In a joint letter sent to Superintendent Evers by WILL and the Wisconsin Manufacturers & Commerce (WMC), we stated our concerns that DPI’s implementation of the state plan violates state law. The state plan includes policies that will have the “effect of law” and we believe DPI must use the rulemaking process under Chapter 227 of the Wisconsin Statutes. What is in Wisconsin’s state plan: The Department of Public Instruction recently released version 1.0 of Wisconsin’s state plan for public comment. The current state plan is a reflection of State Superintendent Tony Evers and his status quo policies despite the opportunity for innovation under ESSA that other states are embracing. For example, while the draft plan includes the goal to cut achievement gaps in half in the next six years and increase graduation rates by 2023, Evers largely refrains from significant reforms to our low-performing schools. The state plan
commits Wisconsin to improving “low performing” schools through community engagement and financial support. Compare that to Florida, which plans to incentive successful charter school operators to open schools in areas with lowperforming public schools. Evers’ draft state plan has also chosen not to utilize greater discretion over the spending of federal funds for school improvement. Wisconsin’s draft plan continues the formula-based grants to low-performing public schools. Compare that to Delaware’s state plan, which plans to distribute a portion of federal Title I funds through a hybrid process of competitive grants and formula-based allocations to low-performing public schools. New Mexico’s state plan implements policies to maximize their discretion over federal funds. New Mexico plans to create competitive grants to districts that provide direct student services, such as extended learning time, Advanced Placement course access, and pre-kindergarten programs. Wisconsin could choose to do the same and strengthen the “Course Options” program, which gives Wisconsin students access to courses that their public school doesn’t offer. However Wisconsin’s draft plan does not opt into the Direct Services funding. What happens next: The Department of Public Instruction will collect feedback from the public hearings and plans to present version 2.0 of the state plan to the legislature in July. Governor Walker will be given 30 days in August to review the plan prior to the final submission in September. For now, we wait and ask: will the state legislature take action over the state plan? Will Superintendent Evers incorporate feedback from the Governor? How is Wisconsin K-12 education going to change?
Libby Sobic, is Associate Council at the offices of Wisconsin Institute for Law and Liberty. She can be reached by email at Libby@will-law.org
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
“BIER...With ED” On the afternoon of Wednesday, June 21st, the IBAW once again held another successful “With ED” event. This time it was beer tasting at Cafe Hollander at The Corners of Brookfield with IBAW’s Executive Director, Steve Kohlmann. Over 30 IBAW members took advantage of the free event and enjoyed a late afternoon of fellowship, appetizers and beer tasting. After the event, members were given an exclusive walking tour of the new facility by Chelsea Roessler, Marketing Director for The Corners of Brookfield and Robert Gould, VP of U.S. Operations of IM Properties. Special thanks to our host - and newest member - The Corners of Brookfield for hosting the event!
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.
Communicating With Your Employees Once You’ve Sold Your Company Tammie Miller, Managing Director, TKO Miller
The process of selling a business is incredibly time consuming. Business owners and management teams will be stressed to their very limits. The last thing you want to think about once a transaction is done, or nearly done, is communicating effectively with employees, but doing this well will make the ownership transition much easier and lead to fewer headaches. Here are some things to keep in mind: 1) Keep It Quiet Until It's Done. Except for the key employees that you need in order to complete a transaction, the news of the pending deal should stay quiet until the transaction is complete. You may want to tell people, but news like this never, ever stays quiet and when it reaches employees as a rumor, you cannot control the message. Sale rumors can create a tremendous amount of employee anxiety. The rule of thumb here is to tell employees when you have enough information about their futures to answer their questions. Usually, this is after a transaction is complete and the administrative details have been discussed with the new owner. 2) When the Transaction is Complete - Now Communicate - A Lot. Once you are ready to communicate with employees it is best to have your act together. Employees are going to be nervous and they are going to have a lot of questions. After you answer those questions, they will go home and talk to their spouse and come back with more questions. At the very least be prepared to talk about: Insurance Benefits - This is the number one issue that employees want to know about once they learn their company is being sold. Be as prepared as you can. Bring in a representative from your new insurance company if you can. Make sure you communicate if there will be changes in doctors, premiums or plan types. Seniority - If we are being sold to a new company, will I still be an employee with ___ years of seniority? This is especially important if it factors into people's vacation days. Vacation - If the vacation policies are changing, make sure you communicate this. Carry over days? Use it or lose it policies? Seniority-based vacation differences? Make sure all these items are covered.
Other Company Benefits - It is important to think about all the other things the company currently offers its employees and to communicate if these will continue. Examples of things I've seen employees ask about include the Christmas turkey, the annual management BBQ or company provided parade tickets. No matter how small, employees will want to know what is going to continue. This is only a fraction of the questions employees will have about the transaction. Set aside some time in the days after the transaction announcement to talk with employees about the transition. Remember, they won't have all their questions formulated as you make the announcement. They will develop over the next couple of days. 3) It Seems Obvious, But Let Them Know They Still Have Jobs Because everyone will just assume they are being fired. Take this time to meet with employees and tell them how important they have been to the company. Tell them that they will continue to be important to the buyer. Have them, if possible, meet with their new managers and demonstrate what they do. Have them own their positions and take pride in their work. If it's possible, let employees know what the buyer has planned for the company. If they are planning on expanding or moving production capabilities to your facility, let employees know. Most buyers acquire companies because they have growth plans for the business, but most employees have the "made for TV" scenario in their head where everyone gets fired and the plant is closed down. 4) Let the Buyer Talk to Employees If the buyer has a CEO or President that can talk with your employees, that is an ideal way to communicate the plan for the future. This will do a couple of things. First, it will be an introduction to their new company and the culture into which the employees will be absorbed. Secondly, it is a message coming right from the acquiring organization and that tends to carry more weight with employees who might be tempted to think that you, as the seller, might just be telling them things to make them feel good. 5) Assure Them That The Company is OK Without You This is especially true of family and founder held companies. When a company has been a part of a family for generations, it may be difficult for employees to think of the business as separate from the owners and the owners separate from the business. They might be worried about the viability of the new leadership and doing things differently than they have in the past. Reassure employees that new management, new capital and new ideas can be wonderful things for a business and often lead to better opportunities for employees. Let them know that you have created a business with a strong foundation and that it can continue without you as the owner. The day a transaction closes can be momentous for a business owner. It can be terrifying for employees. Remember that employees are an important asset for the continuation of the business and that clear, complete, and frequent communication can be the key to a successful transition.
Tammie Miller is Managing Director for TKO Miller and can be reached by email at TMiller@TKOMiller.com
Grover Norquist Congratulates Wisconsin for Leading the Way - Again - On Government Reform M.D. Kittle, McIver Institute [Madison, Wis...] - And Wisconsin shall lead them - again. Tax reform guru Grover Norquist predicts 10 states will pass REINS Act legislation in the coming year, and he asserts Wisconsin can take a bow for that. "Congratulations for living in Wisconsin, which has consistently been a leader in this fight to increase liberty and make the government play by its own rules," Norquist, founder and president of Americans for Tax Reform, told MacIver News Service in June on the Mark Belling Late Afternoon Show, on NewsTalk 1130 WISN. Last week, the Assembly, on a party-line vote, passed the Regulations from the Executive in Need of Scrutiny Act, commonly known as the REINS Act. The next stop for REINS as of this writing is Gov. Scott Walker, who is expected to sign the measure. The REINS Act is similar to legislation moving through Congress, but with lower thresholds. It provides greater legislative oversight of the regulations adopted by state agencies. Any rule or regulation with an economic impact of more than $10 million would require legislative approval. And it gives the Legislature's Joint Committee for Review of Administrative Rules more muscle. The committee would be empowered to request a public hearing earlier in the rule-making process and call for an independent review of the proposed regulation's economic impact. Democrats insist the REINS Act would undermine regulations designed to protect the public. The left-leaning Sierra Club described the federal REINS Act legislation as "clearly an imprudent if not perhaps Machiavellian attempt to chip away at the regulatory process.� Norquist says REINS is about bringing representative democracy and liberty back to the people. "People have understood this as a federal, national problem," he said. Congress passes an open-ended law and some bureaucrats fill in the blanks. Very dangerous. "Then you get regulations with the force of law that can send you to jail. There are 600,000 regulations in this country not passed by Congress but fleshed from some law. Then the bureaucrats say, 'Here's what that law means.' There are 600,000 ways to go to jail," he added. "Only Congress should be able to pass laws...the president should have to sign laws. That's what they tell us in school, anyway, and that's what the Constitution says.� The same bureaucratic morass has infected state government and, Norquist says, has given lawmakers a pass from having to take tough regulation votes. "This is the beginning of an entirely new front opened up to expand liberty and to reduce how abusive government can get. And it requires accountability. You want a law? You vote for it," he said.
MESSAGE FROM THE BOARD
Let IBAW Help You on the Path To Business Success
John Weber
Hello everyone, my name is John Weber and I am the President and Owner of Hypneumat, Inc. We are a manufacturing company located in the Franklin Industrial Park and have been in business for over 65 years. Hypneumat manufactures automatic drilling and tapping units, as well as multiple spindle heads. It never ceases to amazes me the applications our products are utilized in, and the fact that our machinery can be found in nearly every major manufacturing industry throughout the world. This gives us the unique opportunity to take the pulse of a large array of businesses by getting a feel for their manufacturing trends, the direction these companies are going and how they are adapting to the ever changing economic climate. Having the opportunity to talk with like-minded individuals on a daily basis and hearing about their company’s needs, gives you the perspective to know how to keep your own business moving forward. To be successful in business, it takes the intestinal fortitude to live outside of your comfort zone always trying to create something new from nothing. These endeavors typically require a tremendous amount of work with risks and many disappointments along the way. To succeed at these efforts, business people must use all the tools at their disposal to assist in these adventures. This is where the IBAW can be a resource. I have been involved with the IBAW for about 10 years; I am currently on the Board of Directors and am a past President of the organization. This tremendous organization provides networking opportunities to help benchmark for best practices, is a great resource for information and offers excellent events with insightful speakers where I always get 1 if not 2 solid takeaways after each meeting. Running a successful business is tough enough attempting to do it alone. Having the resources the IBAW has to offer makes it worthwhile to have as an ally on your side. So what are you waiting for, get involved it is certainly worth it.
More information at MKELeaders.com
S AV E T H E DAT E ! BUSINESS LEADERS...LEADING BUSINESS
BUSINESS PROGRAMMING • Timely Speakers on Business Issues • A Powerful Resource for You and Your Team
PEER TO PEER NETWORK • Connect With Your Business Peers • Intimate Setting = Meaningful Dialogue
VOICE TO GOVERNMENT • Member Driven Advocacy • Voice on Public Policy Issues
Learn the benefits of membership at IBAW.com
: 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
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
Scott Seroka Seroka Branding
Charles Fry Robert W. Baird
Katie Ross Xorbix
Jeanie Brown Quality Resource Group
Mike Poludniak Merrill Lynch
Dan Hansen Waukesha State Bank
Jake Hansen Jacsten Holding
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.
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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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.
Education • Networking • Political Advocacy BUSINESS LEADERS...LEADING BUSINESS
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MEMBERSHIP BENEFITS apply to your entire team. • Monthly Sales Roundtable - free with membership • Monthly 5 Star Breakfast Program • C Level Peer to Peer Networking • Monthly Digital Statewide Magazine - free with membership • Informative workshops • Business Behind the Scenes Tour • Legislative Updates & Representation from Madison & Washington, D.C. ...AND MORE!
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