MARCH 2019 March 11th
Sales Roundtable
March 15th
Monthly Meeting
Inside This Issue:
KITTLE: EVERS’ CABINET SECRETARIES GET DOUBLE -DIGIT RAISES
MILLER: USING YOUR NEIGHBOR’S VALUATION IS A LOT LIKE BORROWING THEIR SHOES
KEATING: RESILIENT SMALL BUSINESS OPTIMISM
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.
MEDIA LINK: VIDEO: Parks & Kooyenga
Executive Director Steve Kohlmann
President
Dan Hansen
Secretary Charles Fry
Baird
Treasurer Tony Palmen
Sikich
Directors
Tom Parks of IBAW's Public Policy Committee sits down with State Senator Kooyenga on how Governor Evers and the state legislator are getting along and what's in store for the next legislative session. Â Watch Video
Jim Leef
ITU AbsorbTech Ann Barry Hanneman
Von Briesen Law OďŹƒce
John Weber
Hypneumat
Kerrigan on Fox Business: The State of the Economy, Small Business, and Policies to Fuel the Momentum
Lisa Mauer
Rickert Industries
Robert Gross
Gross Automation
Scott Seroka
Seroka Brand Development
Tom Parks
Annex Wealth Management
Jake Hansen
Jacsten Holding
Scott Hirschfeld
CTaccess
Andy Oliver
Gear Wash
On February 18, SBE Council president & CEO Karen Kerrigan joined the Cavuto Coast-to-Coast show on Fox Business to discuss the state of the economy and small business, policies that would strengthen confidence and growth, and the latest trade issues such as USMCA, a China deal and the importance of strong intellectual property (IP) protections.
Watch the clip here.
Al Leidinger
Mathison Manufacturing
IBAW Mission: To advance business prosperity through insightful programming, executive networking and member-driven public policy and advocacy.
Independent Business Association of Wisconsin Monthly Meeting
MONTHLY MEETING
Friday, March 15, 2019 | Time: 7:00 am - 9:00 am Location: The Wisconsin Club, 900 W. Wisconsin Ave. Milwaukee It’s a Wisconsin business story that’s been repeated hundreds of times; a father starts a business and wants to retire, but who - if anyone - can take over the business? In 2016, Mark Knudsen took over the small family business, ‘Pop’s Kettle Corn’ from his father, Richard, upon retirement. Previously the business was simply a way for his father to keep busy and have fun. Mark wanted more and has been aggressively moving the business on an upward trajectory. Today, Pop’s Kettle Corn continues expansion opportunities with an aggressive marketing campaign opening two retails stores and advancing the business to include corporate and wholesale sales, expansion into the grocery and liquor store sector as well as new outside opportunities. This is the entrepreneurial story of a family business rocketing toward success. But success doesn’t come without a few unpopped or burnt kernels and those challenges have to be overcome as well. Get the story. Get inspired. And…get a few tasty samples to boot.
This Event: • Leadership
• Knowledge
• Networking
• Inspiration
Register now at IBAW.com LOCATION
THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE
7:00 AM
CHECK IN, COFFEE & NETWORKING
7:30 AM
BREAKFAST & PROGRAM
9:00 AM
PROGRAM ENDS
The Dying Local News Media Steve Kohlmann, IBAW Executive Director I was watching All The President’s Men on Turner Classic Movies again the other day. Even though I’ve seen the movie a dozen (or more) times, it’s one of those movies (along with a handful of others) that once I start watching I’ll watch it to the end. Jaws, Double Indemnity, The Day The Earth Stood Still, and any Godfather movie, are also on the list. Anyway, when the movie was over I flipped over to the local news. A reporter was doing a hard hitting investigative piece on the small amount of snow that had fallen on a local sidewalk. She kicked the dusting of snow with her foot and warned viewers to take “extreme” caution when walking on snow covered sidewalks. Extreme caution. Really? Really. The two pieces of media - All The President’s Men movie, and our fearless local reporter on the snow covered sidewalk couldn’t have been more opposite on their stories. This got me thinking about how poor local news reporting has become in our day. I can’t even recall the last time I saw a local investigative story. Local coverage is as predictable as the changing season: Thanksgiving = Reporter at local mall to interview shoppers —> “Are you buying more or less this year?” Pending snow storm = Reporter stands next to salt pile. New Year’s Eve = Interview Harlem Globetrotter, have them put spinning ball on reporter’s finger tip. Cold temperatures = Warn viewers; don’t leave your car running, dress in layers, give minutes to frostbite on exposed flesh. Start of Lent = Reporter at Serb Hall for fish fry. “How’s the fish?” —> “Oh, it’s the best!” Spring thaw = Story on potholes, show Mayor Barrett wearing safety vest filling holes, interview tire store owner. Heatwave = Reporter stands with thermometer, reminds us to drink water, wear sunblock and dress in light clothes. Fall = Show leaf piles blocking sewer grates, tell viewers to keep them open and clear. It’s not that there aren’t stories out there worth investigating, it’s just that local reporting, be it TV or newspaper, has just decided to take the lazy way out. The latest trend is asking people to tweet in their news stories with photos (usually involving children or pets.) In the counties which make up southeastern Wisconsin, you would think there would be plenty of stories of interest. Stories of danger, wrongdoing or just something that might make you scratch your head and say, “Hey, that’s certainly interesting.” There’s a nice meaty story out there right now that just got a passing glance. The new sheriff of Milwaukee County, Earnell Lucas just hired DA Chisholm’s 20-year old son, Ted, as his top aide for $85,000 a year. That’s a pretty sweet gig. Aren’t there more qualified people out there who aren’t related to someone that supported you during your election? You would think that would be interesting investigative story. Milwaukee recently made the top segregated city in the United States (again) by a study from the Brookings Institute . You would think a reporter would go down to city hall to interview the mayor about this but the story passed by without a whisper. I suppose you don’t want to rock the boat and I’m sure there’s a salt pile waiting to be stood next to. Don’t even get me started on Milwaukee’s Lead Pipe issue. Remember that story? What did the mayor know and when did he know it? And if he didn’t know about, why didn’t he know about it? So while local media has decided to ignore these stories - and many others - of our elected officials, that doesn’t mean you should. You (we) have had to become the watchdogs and to question authority in our community.
Sales Roundtable Monday, March 11, 2019 | Time: 7:30 am - 9:00 am Location: CTaccess, 740 Pilgrim Parkway, Elm Grove
This Event: • Sales • Branding • Marketing
Before you can begin to sell your product or service to anyone else, you have to sell yourself on it. This is especially important when your product or service is similar to those around you. Very few businesses are one-of-akind. Just look around you: How many clothing retailers, hardware stores, air conditioning installers and electricians are truly unique? The key to effective selling in this situation is what advertising and marketing professionals call a "unique selling proposition" (USP). Unless you can pinpoint what makes your business unique in a world of homogeneous competitors, you cannot target your sales efforts successfully. At this Roundtable we'll help you define your USP giving you the edge you need over your competition and help you market - and broadcast - your business.
7:30 AM - 9:00 AM. (Please arrive by 7:25 - we start at 7:30 SHARP. Location: CTaccess Conference Room 740 Pilgrim Parkway, (Lower Level) Elm Grove
Cost: Free, a benefit of your IBAW membership. Registration is required. This event is only open to IBAW members. Coffee provided by CTaccess, bakery provided by IBAW.
Using Your Neighbor’s Valuation is a Lot Like Borrowing Their Shoes Tammie Miller, TKO Miller
I will give you a minute to get over the "ewww" factor involved in wearing someone else's shoes. Often, I meet with business owners for an initial consultation where they arrive with a value for their business in mind. Usually, this is a result of having sat at a bar (country club, airplane, basketball game...) with a friend or neighbor that had sold their business, hearing the multiple of revenue or EBITDA that person received, then multiplying that number by their own revenue or EBITDA. Voila! There is your business valuation. There are a few things that are wrong with this rampant, back-of-the-envelope valuation practice. First, on an emotional note, your friend probably exaggerated. Similar to describing one's last round of golf, high school basketball career points, or the size of that muskie pulled out of the lake up North, the value received for the sale of a business tends to be one of those things that people inflate in their minds, and later, their words. Secondly, the multiples change. I know this seems obvious, but if I hear another person say "technology companies trade for 4 times revenue," I'm going to have to throw my computer at them. Maybe they traded for that last year, maybe last week, maybe in 1985. Unless you are taking companies exactly like yours to market constantly, private business owners cannot know what the market is paying right this moment. Whatever multiple you are looking at, I can guarantee that your number won't be that number. Things change constantly. Thirdly, companies are different. To use a Millennial turn of phrase, "they are like snowflakes." I can make a long list of things that buyers pay more for in a business and another that detracts from business values. Maybe your friend had excellent gross margins, a diverse customer base, a rotten ERP system, two broken machines, and a rock star management team. Do you have all those things? I'm guessing you do not. (If you do we need to address the broken machines and the rotten ERP system before you sell). You get my point. Of course, your revenue and EBITDA are part of the valuation, but they are just one part. There are a lot of company characteristics that go into valuing a business. An investment banker or business advisor who can evaluate your business in the context of the current market is the only way to know the real value of your business. You need someone that is selling businesses often because they are the only ones that know who is paying what for what. Onto the shoes. Your neighbor probably has nice feet, but maybe he has a bunion or two that he's not telling you about and sometimes he doesn't wear socks. His shoes are stretched in weird places and they are the wrong size for your feet. Get your own shoes.
Evers’ Cabinet Secretaries Get Double-Digit Raises Matt Kittle, The MacIver Institute Gov. Tony Evers’ cabinet members are earning significantly more than their predecessors, according to executive branch salary information obtained by MacIver News Service in an open records request. Transportation Secretary-designee Craig Thompson will make $145,017 per year, a 23 percent increase compared to his predecessor Dave Ross, who took home $117,254. Many of the Democratic governor’s key appointees received double-digit salary increases, according to the state Department of Administration spreadsheet of cabinet salaries. Speaking of the DOA, Evers’ pick for secretary, Joel Brennan is taking home $152,755 a year, about 20 percent more than former Gov. Scott Walker’s DOA Secretary, Scott Neitzel, according to 2017 salary information. Neitzel left that post in 2018, and was succeeded by Ellen Nowak, who made $132,000, according to reports. That’s 15 percent more than Brennan, who will earn just $1 less than his boss. Evers is set to make $152,756 annually, according the Legislative Reference Bureau. Brennan ran Milwaukee Mayor Tom Barrett’s failed bid for governor in 2002 and his successful mayoral campaign two years later. He most recently served as head of the nonprofit Discovery World, a science and technology museum in Milwaukee.
Evers’ Department of Health Services Secretary-designee Andrea Palm is pulling in $150,009, about $22,000, or 17 percent, more a year than Walker’s last DHS Secretary, Linda Seemeyer. Palm served in the Obama administration as senior counselor to the Secretary of Health and Human Services. Before that, she worked for five years as health policy advisor to then-U.S. Sen. Hillary Clinton. Palm’s No. 2 at DHS, Deputy Secretary Julie Willems Van Dijk, will make $136,801, making her one of the highest paid officials in Evers’ cabinet.
Transportation Secretary-designee Craig Thompson will make $145,017 per year, a 23 percent increase compared to the salary of his predecessor, DOT Secretary Dave Ross, who took home $117,254 annually when he started in 2017. Factor in a 2 percent raise for Ross in 2018, and Thompson would still be making more than 20 percent more than his predecessor. Thompson led the Transportation Development Association before being tapped as Evers’ choice for transportation secretary. State Rep. Joe Sanfelippo questioned the hefty salary bumps in the executive branch. The West Allis Republican said the increases were “unheard of” but not surprising coming from a governor who has already proposed billions of dollars in additional spending in advance of his biennial budget plan, expected to be released later this week. “It’s just emblematic of what I expect to see coming out in the budget Thursday,” Sanfelippo said. “(The governor) has no regard for how hard taxpayers have to work and he’s proving it by just throwing money around left and right.” Department of Natural Resources Secretary-designee Preston Cole will pull down nearly $147,000 a year, a 15 percent increase over his predecessor, DNR Secretary Dan Meyer, who made just over $127,000 annually. Peter Barca, Evers’ pick for Department of Revenue secretary, will haul in nearly $145,000, an 18 percent increase from the previous secretary, Richard Chandler. Secretary salary ranges are set in the state Division of Personnel Management 2017-19 Classification and Compensation rules established by Chapter 111 and Chapter 230, in Wisconsin statutes, and the associated Administrative Rules. Officials from the DPM did not return MacIver News Service’s multiple requests for comment on the cabinet members’ salary increases. The Department of Workforce Development Secretary-designee Caleb Frostman will receive an annual salary of $140,000 a year, a 15 percent increase from his predecessor, Ray Allen, who earned $122,470 a year. Department of Financial Institutions Secretary-designee Kathy Blumenfeld gets an 18 percent salary increase, taking home $135,012 annually. That’s a $20,000 boost from what Walker administration DFI Secretary Jay Risch earned. And Evers’ Agriculture, Insurance, Veterans Affairs and Tourism directors will all make $130,000 annually, in some cases, thousands of dollars more than their predecessors. The tourism post comes with an 18 percent salary increase. The double-digit raises are a departure from the Walker years. In 2011, when Walker took office, a majority of his cabinet members earned less than Gov. Jim Doyle’s secretaries, according to a salary comparison published at the time by the Isthmus. In 2011, when Walker took office, a majority of his cabinet members earned less than Gov. Jim Doyle’s secretaries, according to a salary comparison published at the time by the Isthmus, a Madison-based liberal news organization. In most cases, when Walker cabinet secretaries did receive wage bumps, the increases were relatively small, $2,000 or less. Walker’s deputy secretaries were, in general, paid more than Doyle’s, but, overall, cabinet level salaries were lower under Walker. On the campaign trail last year, Evers said he wanted lawmakers to be paid the same as first-year teachers, or about $37,000 a year. The salary for lawmakers is $52,999, a 4 percent increase in the previous biennium. Evers didn’t say anything on the campaign trail about raising cabinet member salaries by more than 20 percent.
Why Business Sustainability Should Be Woven Into Your HRM Strategy Lauber Business Partners
Business sustainability is often defined as managing the triple bottom line—where businesses attend to their financial, social, and environmental risks (sometimes referred to as people, profits, and planet). Today, sustainability is an issue faced by businesses of all sizes, as embracing sustainable practices leads to better corporate culture, happier employees and customers, and greater long-term profitability and brand proposition. While Human Resource Management teams are less likely to be involved in the creation of sustainable programs, they could play a quintessential role in the implementation of an effective, sustainable strategy. In this article, we will discuss why and how sustainability applies to HR, and conversely, how HR responsibilities and leadership can influence sustainability and corporate strategies. Sustainability—What is it, and Why is it so Important? Sustainability is increasing a company’s profitability by managing both the risks and opportunities of the economy, environment and social climate. Unfortunately, it appears that many leaders see sustainability as something “nice-to-do” rather than a “need-to-do,” despite their claim to prioritize it. Thus, sustainability in the work environment lacks leadership; there is not enough motivation for profit-driven executives to continually alter and conform businesses to sustainable practices. Sustainability affects every area of business, from how your employees see their workplace and feel about what they’re doing to what customers think and how they relate to you. Today, people care about what goes on behind closed doors; does this company genuinely care about people and the environment, or solely profit? Customers want to interact with a business that they feel is making a positive impact, and employees want to work for a company where they feel they are contributing to the greater good. That’s why sustainability is so intertwined with a company’s success. When it comes down to it, sustainability is a people issue. It’s all about what people are expecting from your business, and whether or not you prove to hold it central to your organization. Thus, sustainability is very much connected with HR, even though HR doesn’t necessarily need to “own” it. Human Resources must be woven into the fabric in developing a case for business sustainability, creating the organization’s culture and leading it to sustainable efforts. How Will Sustainability Affect the HR Profession? Sustainability is already changing the business climate—HR will play a more central role in it. Employee desires are changing; workers want to be somewhere that is purpose-driven and values sustainable practices. Sustainability can be embedded into recruitment, branding, engagement, training, and leadership, and HR professionals are the ones who need to implement and carry out those sustainable practices.
How Might HR Influence Sustainability?
There are a few ways that HR can be central to sustainability implementation and follow-through, such as: •
•
•
Acting as Leaders – HR professionals can be very clear examples of sustainable practices for others to follow. Beyond just promoting the ideals, they can help further other employee’s abilities and gain employee feedback on which practices are working and which are not. Defining and Promoting it Within the Organizational Culture – HR is the head of recruitment and training. They can ingrain sustainable ideas from the start for better chances of the practices sticking. They can also encourage them throughout lifecycles and daily tasks; at any point in an individual’s career, HR is there to help reinforce sustainable ideas and monitor their implementation. Focusing on People – After all, the purpose is people. HR’s entire existence is about people, and so it is with sustainability. HR can help show how the company is value-based rather than profit-driven; it can implement practices that help keep that central to the organization as well.
Sustainable practices change how customers and employees view a company. Leveraging sustainability in company initiatives to engage, inspire, and connect employees can bring tremendous benefits in attracting employees with aligning values, increasing job satisfaction and retention, and appealing to and preparing for younger employees. Especially for the millennial generation, a sustainable business is an appealing business. The generation as a whole is looking to support organizations that do good, which impacts whom they go to for service and whom they look to for work. As HR permeates every section of a business and every person involved, they are the perfect fit for implementing and managing sustainability. Strong Human Resource support is among the most critical needs for businesses and organizations. For help evaluating your sustainability, contact the experts at Lauber Business Partners.
6 Dangerous Behaviors of Disengaged Employees Click to Watch Video
In Case You Missed It: Medicaid Expansion, DOT Projects and Wisconsin’s Tax Ranking Chris Rochester, MacIver News Despite the week seemingly speeding past us, the government has been occupying their time with big projects, and with big projects come big price tags for taxpayers. A new $100+ million highway construction project is being considered for the State of Wisconsin. New reports detailing the ranking of taxes in every state–including Wisconsin–and providing estimates for Tony Evers’ proposed Medicaid Expansion program have been released. The MacIver Institute has compiled some need-to-read articles from this past week, in case you missed it. New DOT Secretary Weighs Expensive I-39/90 Construction Project Tony Evers’ new Department of Transportation secretary Craig Thompson may sign a contract to start a new construction project on the 1-39/90 highway system in Wisconsin. The DOT awarded the project to a single bid contractor at a cost of $20 million over the budgeted amount for the project. Now, Craig Thompson must decide if he will sign the contract, despite it being over budget. Tax Foundation Releases Data on State and Local Income Taxes The Tax Foundation released data showing the amount of State and Local Income taxes collected per capita during Fiscal Year 2016. During Fiscal Year 2015, Wisconsin collected the 14th most taxes in the nation, amounting to $1,225 per capita. During Fiscal Year 2016, the state collected the 12th most state and local income taxes, collecting $1,297 per capita. On average across the country, the state and local taxes collected went up from $1,144 to $1,164. Study: Medicaid Expansion Would Cost Wisconsin Private Insurance $600 Million a year The Center for Research on the Wisconsin Economy (CROWE) and Wisconsin Institute for Law and Liberty (WILL) released a report exploring the impact Medicaid expansion would have on the Wisconsin economy. While expansion would give $545 million in benefits to the state, it would raise healthcare costs $1.145 billion, leading to a net cost of $600 million to Wisconsin. The MacIver Institute found that a single-payer healthcare system in Wisconsin would cost taxpayers $30 billion in the first year. Business Investment Falters The Wall Street Journal reports that businesses may be feeling the tension of trade wars and economic uncertainty, reducing their optimism. This has had the effect of causing a popular economic indicator on investment to fall for the fourth time in five months. This article is behind a paywall for the WSJ. U.S Auto Tariffs Would Harm Eurozone, Throw Germany into Recession In an op-ed for The Hill, AEI researcher Desmond Lachman looks at the possible implications overseas if President Trump were to place tariffs on European and Japanese auto exports. Lachman argues more tariffs would most definitely plunge Germany into recession, as well as strengthen the U.S dollar, giving more incentive to import rather than export.
Chris Rochester is Director of Communications at the MacIver Institute. Follow him on Twitter at: twitter.com/cdrochester
Coach’s Corner: Handling Sales Rejection Steve Bobowski, Dale Carnegie
Dear Carnegie Coach Bobowski I have recently been moved from a technical support position to Sales. I am new to Sales, but I do have years of working experience. One major concern for me is how I will be able to handle rejection. What advice do you have for handling rejection? Stew from Burlington
Dear Stew: It seems that you are a very enthusiastic to begin your new career path and that is a great place to start. Rejection is part of the sales process, so here are: THE ACTIONS I WANT YOU TO TAKE: •
Don’t take the rejection personally – When customers reject our idea, they are not rejecting us personally. Keep in mind that even when customers are rude or mean, they don’t know us; it’s just human nature to strike out at the closest target.
•
Live in day-tight compartments – Give your job your complete attention while ‘on-duty” but leave it there when you go home at night.
•
Find ways to reduce stress – Find a physical activity to enjoy and use proven stress reduction principles
•
Get help from others – Don’t let yourself feel isolated or alone. Your coworkers are going through their share of stress as well. Laugh at the situations that we can find humor in.
•
Know your Metrics: Know how many call you need to make to get an appointment and how many appointments you need to get a sale. When you know your metrics it will keep you energized because each call and each appointment gets you that much closer to the sale!
•
Focus on the positives – Many of your calls will go well. Keep your mind filled with the “good news” to keep the day’s work in perspective.
THE BENEFIT TO YOU: An energetic and enthusiastic approach to selling! • Make It A Great Day! Steve Steven G. Bobowski
Resilient Small Business Optimism Raymond Keating, Chief Economist, SBE Council, Washington D.C.
The takeaway on small business optimism in the latest Wells Fargo/Gallup Small Business Index survey (taken between January 9-15 and released on February 7) is a bit tricky, but the bottom line remains that American entrepreneurs are resiliently optimistic. The overall score index came in at 106, which was down notably from the all-time high of 129 registered in the previous quarterly survey. However, the 106 index score still indicates a strong level of small business optimism. Consider how the index score should be read, according to Wells Fargo/Gallup: “The overall Index can range from -400 (the most negative score possible) to +400 (the most positive score possible), but in practice spans a much more limited range. The margin of sampling error is +/- four percentage points. The highest Index reading was +129 in the fourth quarter of 2018, and the lowest reading was -28 in the third quarter of 2010.” So, 106 is very strong. When we look at key questions and the percentages for each response, we can see that optimism remains high. For example, on rating “your company’s financial situation today,” 75 percent said very good or somewhat good, while only 13 percent said “neither good nor poor” and a mere 10 percent poor or very poor. And on rating “your company’s financial situation … 12 months from now,” 81 percent said very good or somewhat good, while 11 percent said “neither good nor poor” and a meager 6 percent poor or very poor. Indeed, the entire survey points to small business owners remaining an optimistic bunch – just not as optimistic as was the case in the previous survey. This more or less lines up with the findings in, for example, the latest NFIB Small Business Optimism Index, in which it was noted: “The NFIB Small Business Optimism Index slipped 3.2 points in January, as owners continued hiring and investing, but expressed rising concern about future economic growth. The 101.2 reading, the lowest since the weeks leading up to the 2016 elections, remains well above the historical average of 98, but indicates uncertainty among small business owners due to the 35-day government shutdown and financial market instability.” Similarly, Andy Rowe, Wells Fargo head of Customer Segments, observed, “Today’s business owners are very in tune with changes in the economy, government policy and many other factors that can affect their ventures. They are seeing these factors come into play and are predictably exercising measured caution as they plan for the coming year.” Indeed, much has occurred over the last two months to raise questions on the political and policy fronts. And when things do go awry, it’s usually government doing something ill-advised. Small business owners know that better than most. At the same time, as noted earlier, the resilient optimism of the American small business owners seems to be the main takeaway from these recent measures of optimism. _______ 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.
Commitments: • Attend meetings • •
Program Leader: Steve Bobowski
No cost for meetings, a benefit of IBAW membership Referrals or 3 enrollments
“Knowledge isn’t power until it is applied.” -Dale Carnegie
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.
President Trump has made regulatory reform a centerpiece of his agenda. Since the Office of Advocacy is the independent voice for small business within the federal government, our office has developed a Regulatory Reform Action Plan to make sure the agencies keep small business issues in mind as they work to accomplish this goal. We are hosting Regional Regulatory Reform Roundtables across the country to gather small businesses’ input about federal regulations that are most burdensome to them. Advocacy is using the information gathered at these roundtables to inform agencies, Congress, and the public on how specific regulations can be modified or removed to help small businesses. We will be planning more roundtables soon. Keep an eye on this webpage for updated information on Advocacy’s involvement in helping to reduce the regulatory burden on our nation’s small businesses. Also, we have created a form for small businesses to let us know about the federal regulations that are burdensome to them. Please feel free to fill that form out here and distribute to small businesses who may be interested. It will help us shape our future regional regulatory roundtables. In December 2018, Advocacy published a report on the roundtable effort from June 2017 to September 2018. The report outlines the initiative, top small business regulatory issues, and progress that has been made so far. What Small Businesses Are Saying and What Advocacy Is Doing About It: Progress Report on the Office of Advocacy’s Regional Regulatory Reform Roundtables
IBAW Members Score Wine By Giving Referrals IBAW members can get a free bottle of wine every time they refer a business friend to IBAW and that persons joins. We want to grow the IBAW and since we are a member driven organization, we rely on you to help grow the group. Who makes a great candidate for IBAW? Any person or business that has a ‘pro business’ attitude is an ideal candidate. This can include businesses both large and small along with individuals who are entrepreneurs who are free market thinkers! Contact IBAW director Steve Kohlmann for details on how you can invite a guest to a monthly breakfast meeting.
: 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 Public Policy Committee Hosts Legislative Roundtable in Brookfield
The IBAW Public Policy Committee hosts a Legislative Roundtable every spring and fall featuring representatives from Madison to discuss important issues business owners face. It’s your opportuntity to speak to your elected officials. Past meetings have had representatives Senator Lena Taylor, Senator Chris Kapenga, Representative Rob Hutton, Joe Sanfelippo, Christine Sinicki, Samantha Kirkman and Representative Dale Kooyenga. Meetings are held at the offices of Sikich in Brookfield. Welfare reform, excessive business regulations and the ever increasing shortage of a competent workforce were the main concerns of business owners as well as crime and the state of Milwaukee Public Schools. Save the date - our next Legislative Roundtable is April 11th!
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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2019 Membership Committee
Jake Hansen Jacsten Holdings
Charles Fry Robert W. Baird
Mike Poludniak Merrill Lynch
Dan Hansen
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.
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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.
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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.
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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.
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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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