IBAW November Business Magazine

NOVEMBER 2018 November 1st

November 12th

Legislative Roundtable

Sales Roundtable

November 16th “Inside Politics: Election Wrap Up - Expert Panel Discussion

OPEN FORMAT!

November Is JAM PACKED with Insightful Events!

Inside This Issue:

MILLER: RICHARD SHERMAN SHOULDN’T NEGOTIATE HIS OWN SALE AND NEITHER SHOULD YOU

KITTLE: JOHNSON: STATES COMMITTING ‘LEGALIZED FRAUD’ WITH MEDICAID

DREFS: PLANNING YOUR CORPORATE VIDEO PRODUCTION STRATEGY

Networking matters

At AT&T, we know that making connections is critical to success. In Wisconsin and across the nation, we link businesses with their customers and the world through our wireless network with access to the nation’s largest Wi-fi network. It’s just another way we help our customers stay connected.

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

© 2014 AT&T Intellectual Property. All rights reserved.

IBAW thanks AT&T for it’s continued sponsorship.

MEDIA LINK Wheel of Fortune Agrees: IBAW is Time Well Spent IBAW member, Tom Parks snapped a photo of a puzzle on Wheel of Fortune the other night.

Executive Director Steve Kohlmann

President

Dan Hansen

Secretary Charles Fry

Baird

Treasurer Tony Palmen

Sikich

Directors Jim Leef

ITU AbsorbTech Ann Barry Hanneman

Von Briesen Law OďŹƒce

John Weber

Hypneumat

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

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

The Ripple Effect Steve Kohlmann, IBAW Executive Director

It’s very early Saturday morning and I’m out on the front lawn putting the fall application of fertilizer on while the grass is still wet. Trouble is, I’m going to run short of fertilizer - again. My lawn is just under 10,000 square feet and I only bought the bag that covers 5000 square feet. I should have just bought the bag that covers 15,000 square feet but at the time of purchase I’m too cheap to pay for fertilizer I’m not going to use. Now I have to go back and buy more anyway. Lesson learned.

A quick run to the store has me bumping into a business buddy buying the same fertilizer. It seems he’s doing the same Saturday morning chore. We start a conversation on the merits of Scott’s fertilizer vs the generic brand. At the end of our hardcore fertilizer discussion (by the way Scott’s is the way to go) I ask the question “What else is new?” He tells me he’s very busy. His daughter is opening up her second children’s dance studio and that business is booming When I ask why he says it’s the positive outlook people have of the economy. A child’s dance class isn’t a life necessity so when there’s a tough economy it gets cut from the family budget. But when times are good it also gets top priority.

Fast forward a few days and I’m talking to a high profile owner of a jewelry store in Brookfield. I again ask the question “How’s business?” and he tells me it’s very good. And again I ask, “What do you attribute that to?” and the response comes back “Just so long as there’s talk about a positive economy my business does very well. Jewelry purchases are not a ‘must have’ thing so it’s a good indicator on the economy and the positive - or negative mood people have.” He continued, “ But the minute economic outlook turns neutral, or negative, people cut back severely on their purchases of jewelry.”

Both business above could be considered ‘luxury’ purchases.

You certainly wouldn’t consider them necessity items such as purchasing groceries, heat or gas for your car. In tough times you could live without them and be just fine.

Ronald Reagan had a term for this type of economy. He called it ‘Trickle Down Economics’. When the economy was good, spending would ‘trickle down’ the economic chain. Reagan got a lot of heat for that term. The press lambasted him implying the rich people at the top received all the benefits and wealth but the less fortunate only got the scraps from the rich’s spending.

I like to think of it more as a ripple effect which has a broad impact on a lot of lives. Let’s look at a hypothetical situation.

Business is booming for a manufacturing company so that company is comfortable enough to spend money on a new CNC machine to boost production. That machine needs an operator, so a person within the company is assigned to the machine and gets a pay increase and maybe more work hours to keep the machine running. That CNC operator sees his wage increase in his paycheck and decides to use that money to take his family on a vacation to the Wisconsin Dells. He loads up the family, fills up his gas tank (money spend) and drives the two hours to the Dells where he stays at the Kalahari Hotel (money spend) and waterpark. At the park he buys his kids the $9 hot dogs (money spend) and they visit other Dells attraction such as Goony Golf (money spend) and eat ice cream (money spend), take Duck Tours (money spend) and eat dinner at the Pizza Pit (money spend). The next day they have breakfast at Paul Bunyan’s (money spend) and gas up the van (money spend) and head back home.

Without a robust economy the business never would have bought the CNC machine which enabled our worker to take advantage of a higher wage with overtime and treat his family for a weekend of spending in the Wisconsin Dells.

When the economy is good and strong, it benefits many business we may not even be aware of.

AT&T Supports REACH-A CHILD Program IBAW member and corporate sponsor AT&T donated $10,000 to the Reach-A Child Program in Waukesha October 29th at the Waukesha Police Department.

The REACH BAG Program supplies police squads and emergency vehicles with a First Responder bag containing children’s books & drawstring backpacks.

When First Responders encounter a child-in-crisis, they offer the child a book which the child gets to keep. The First Responder also gives the child a drawstring backpack to put the book in – and anything else the child might have to keep with them.

The cost of the BAG also includes one annual refill of the books and the children’s backpacks.

Dextra Hadnot (center) Director of Governmental Affairs of AT&T presents Curt Fuszard (far left) Executive Director of Reach - A Child with a check to support the Reach Bag Program at the Waukesha Police Department. IBAW director Steve Kohlmann (right) was on hand for the event.

Outgoing Board Members Recognized Awards for service were presented to Tom Boelkow of BSI and Jeff Hoffman of the Boerke Company for their ten years on the IBAW Board of Directors.

We thank both Tom and Jeff for their commitment and service to the IBAW!

Tom Belkow of BSI receives his award at BSI headquarters located in Waukesha.

IBAW director, Steve Kohlmann, presents Jeff Hoffman his award at last month’s IBAW monthly meeting.

Legislative Roundtable Thursday, November 1st 2018 | Time: 3:00 pm - 4:30 pm Location: Sikich Conference Room, 13400 Bishops Lane, Brookfield

Register at IBAW.com

Join

the IBAW Public Policy Committee for this roundtable discussion featuring both Republicans and Democrats from Madison. We’ll discuss the top issues facing Wisconsin business owners.

This is your opportunity to let your elected officials know what’s on your mind. Light refreshments will be served.

FREE EVENT FOR IBAW MEMBERS! • Non Members $25.00 • Register at IBAW.com

Sales Roundtable Monday, November 12th, 2018 | Time: 7:30 a.m. - 9:00 a.m.

Location: CTaccess, 740 Pilgrim Parkway, Elm Grove This month we will be doing an OPEN FORMAT discussion. Bring your toughest sales, marketing or branding challenges and we'll discuss it as a group!

Register at IBAW.com Sales Roundtable is a free event open only to IBAW members.

Independent Business Association of Wisconsin

MONTHLY MEETING Monthly Meeting Friday, November 16, 2018 | Time: 7:00 am - 9:00 am Location: The Wisconsin Club, 900 W. Wisconsin Ave. Milwaukee

Special!

Inside Politics: 2018 Mid Term Election Wrap Up

We’ll wrap up the this fall’s election results and what it means for Wisconsin business but we’ll also discuss politics in America. Protests, accusations and is America divided as the media says it is? And where is American politics heading?

What does all this mean for our political future?

Join us for a morning of frank political discussion and a recap of all things politics after the mid term elections with a special, all-star insider panel discussion.

Panelists: James Wigderson - Right Wisconsin Evan Zeppos - Michael Best & Fredrick Colin Roth - Wisconsin Institute for Law & Liberty

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

Register at IBAW.com

Wisconsin Bureaucrats Impose a $100 Million Tax Lucas Vebber, Wisconsin Institute for Law & Liberty

Prior to a June decision from the U.S. Supreme Court in the case of South Dakota v. Wayfair, states could only force out-of-state based retailers to collect and remit sales taxes if they had a physical presence in the state. After the Wayfair decision, things changed dramatically. In that decision the U.S. Supreme Court upheld a South Dakota law requiring retailers without a physical presence there to collect and remit sales taxes. Seeing an opportunity to begin collecting new sales tax revenue here in our state, Wisconsin’s Department of Revenue (DOR) announced plans to begin requiring out-of-state retailers to collect and remit sales tax on October 1 of this year.

For some in-state retailers this change was welcome news. They viewed out-of-state retailers as getting a competitive advantage under the old system, since as an in-state business they had to collect sales tax while out-of-state businesses did not. Consumers in Wisconsin, however, are likely to sing a different tune. According to fiscal estimates prepared by DOR, the state expects to bring in about $100 million in new tax revenue each year as a result of this change. That’s money that comes right out of the pockets of every consumer in the state.

Wisconsin’s sales tax statutes apply to just about all retailers. In deciding to use Wayfair as an opportunity to expand sales tax collections here, DOR decided to exempt small businesses outside of Wisconsin from these new tax-collection requirements. Matching language in South Dakota’s law, Wisconsin’s new regulations don’t apply to out-of-state businesses that sell less than $100,000.00 worth of goods or services in Wisconsin or who engage in fewer than 200 transactions per year in Wisconsin. Small businesses located in Wisconsin still have to collect these taxes.

This decision to give a benefit to small businesses outside of our state was made by unelected and unaccountable tax collectors at DOR, rather than elected lawmakers. What’s worse is that they pushed this exemption out as an emergency rule. The staff at DOR determined that collecting this new tax revenue immediately was so important that “preservation of the public peace, health, safety, or welfare” of our state required them to use the emergency rulemaking procedure to fasttrack the imposition of this new tax-collection mechanism.

DOR wrote an exemption into a law where none existed. In doing so, they likely exceeded the authority delegated to them by the legislature, putting these new regulations on shaky legal footing and making them subject to a challenge under Wisconsin’s Administrative Procedures Act. No matter how you feel about the imposition of this new policy, I think most Wisconsinites will agree that decisions on important issues like this should have been debated on the floor of the legislature by elected lawmakers, not in the cubicles of the DOR by unaccountable bureaucrats.

If you’re a business impacted by this change, contact me at Lucas@will-law.org – I’d like to hear your perspective and how these changes are impacting you.

The Five Second Rule Lori Mendelsohn, Men’s Fashion Expert and Personal Stylist

We’ve all heard that saying that “You only have one chance to make a first impression.”

Have you also heard that people make decisions about you within 5 seconds? YES. Five seconds. That is why it’s imperative to always put your best foot forward when meeting a potential client, collaboration, or business associate for the first time-and proper grooming and clothing can be the deal breaker.

Let’s think about this a minute. Two companies are competing for the same project. Both have the same skills, and both come in with a relatively comparable proposal, and both say they can deliver the end result on, or before the target date.

Both companies have equal value. What’s the differentiator?

It may come as a surprise to you, but studies have shown that those who present themselves more professionally come across as more trustworthy, reliable and thus, are perceived to be more valuable.

In this article: https://www.businessinsider.com/how-your-clothing-impacts-your-success-2014-8 by Jaclyn Smith, the following is discussed: "Let's be clear: In the big picture of ultimate reality, what you wear neither defines who you are as a person nor determines your value as a human being," says Darlene Price, president of Well Said, Inc., and author of "Well Said! Presentations and Conversations That Get Results." "However, in the temporal realm of mere mortals, fair or not, people judge us by the way we look and that includes the way we dress." Especially in the workplace, clothing significantly influences how others perceive you and how they respond toward you, she says.

Research shows that your appearance strongly influences other people's perception of your financial success, authority, trustworthiness, intelligence, and suitability for hire or promotion. And, because perception is often reality, what you wear not only communicates who you are in the minds of others, but also influences your level of career advancement.

Research has also found that when you combine your appearance with communication skills, not only is others' perception of you affected, but their behavior toward you is also influenced. "Clothing plus communication skills determine whether or not others will comply with your request, trust you with information, give you access to decision makers, pay you a certain salary or fee for contracted business, hire you, or purchase your products and services," she says.

Based on this information, and with the business climate getting tougher every day, wouldn’t one want to put their best self forward, and come to the table dressed to kill?

Photo credit: mentatdgt from Pexels

Most men enjoy choosing clothing about as much as women enjoy running a snow-thrower in the dead of winter. And, sadly, most men ask the women in their lives for opinions on style. Most women have no clue about fabrics, silhouettes, fit, or the psychological effects of color; they merely choose what they like. Professional stylists do. It makes good business sense to use one.

When you only have one chance to make that first impression, why risk the deal of a lifetime?

Lori Mendelsohn is an award-winning fashion designer who has worked in both LA and NY designing men's, women’s and children’s clothing. She has worked in Hollywood, and in the garment centers of NY and LA for over 33 years. Presently, she is assisting Midwestern Men in creating their own personal brands and style for www.uncommonman.net

Richard Sherman Shouldn’t Negotiate His Own Sale, and Neither Should You Tammie Miller, Managing Director, TKO Miller The Boston Globe recently published a well-written article titled, "Richard Sherman's Five Missteps in Negotiating His Contract with the 49ers." The article is about an athlete who decides that he will take charge of his "business", in this case the franchise of himself and negotiate a contract without the assistance of an advisor.

We write articles all the time about the dangers of company owners negotiating on their own to sell their business, but as the article points out, the danger extends to anyone who decides to negotiate solo against a group that is far more experienced.

Let's look at Richard Sherman's errors and how they might compare to business owners contemplating a sale.

1) He Didn't Play the Field Ben Volin of the Boston globe writes, "Sherman was released at 1 p.m. Pacific time Friday. By Friday night, he was in San Jose, joined by his fiancée for dinner with 49ers coach Kyle Shanahan and Shanahan’s wife. By noon Saturday, Sherman and his fiancée were negotiating a contract with general manager John Lynch and cap expert Paraag Marathe."

This is a lot like a business owner who decides to talk to only one buyer. When you deal with only one party, you give away your negotiating leverage. You lose the ability to walk away from a transaction when the buyer knows that you don't have any immediate options. An M&A advisor would help you run a sales process that would include multiple buyers and keep the leverage in your court. Richard Sherman needed to take the time to create demand for his brand and you do too.

2) He's Not an Experienced Negotiator “I spent maybe 10, 12 hours reading all these contracts and studying the contract language,” Sherman said. Marathe, meanwhile, spends 365 days a year thinking about contracts. And he has done it for about a decade now with the 49ers.

Business owners hear stories at the golf club about what other people sold businesses for and sometimes they do a little research on recent sales in their industry. This is absolutely the equivalent of Richard Sherman spending 12 hours reading contracts.

Buyers are going to be better at buying than you are at selling. They have done this before, sometimes many times over and for most business owners, they will sell a business once in their lifetime. You need an advisor on your side to level the playing field.

3) He Let his Ego Get in The Way Volin writes, "Confidence is good on the football field, but foolish at the negotiating table" and he is absolutely right.

It is almost impossible for business owners to remain emotionally neutral when negotiating the sale of their business.

Entrepreneurs who are in a position to sell have been successful in many ways and are talented business people. That talent doesn't necessarily translate to being a good negotiator. Once a buyer knows that he or she has gotten to your emotional core, they know they have an advantage.

4) Sweet Talk Today Does Not Create a Good Deal Tomorrow "Lynch and Marathe bent over backward praising Sherman, to the point that they were basically patronizing him," writes Volin.

When buyers call on business owners they often begin the conversation with high praise, wild valuations and promises of a transaction that will be quick and painless. I have yet to see a buyer deliver on these promises. An unrepresented business owner can hear these things and think they are dealing with the nicest buyers in the world. Business owners tell us, "they were really interested", "they seem to get my business" and "they sat down and talked over a beer!" Buyers know that a little flattery can warm a buyer up to the point where they can almost feel badly if they don't do a deal with them.

You might not be an NFL corner back, but if you own a business you too have a brand and a reputation to protect. Richard Sherman shouldn't have represented himself when negotiating with the 49ers and an owner thinking of selling his business shouldn't represent him or herself either. A business owner cannot accumulate the knowledge and experience necessary to complete a transaction that extracts the most value. An advisor might seem like an extra expense, but they will pay for themselves in the end.

Planning Your Corporate Video Production Strategy Andy Drefs, Bottom Line Productions As a business owner, you might find yourself on the fence regarding corporate video production. Like many others, it’s possible that you don’t think your company is big enough or that your story is compelling. However, you could be wrong. If done correctly, your corporate video production strategy can increase your visibility and ultimately your revenues.

WHY IS VIDEO SO IMPORTANT? The saying goes, “A picture is worth a thousand words.” So, it stands to reason that a video is worth thousands if not millions of words. As a direct result of the internet, people have been conditioned to want information immediately. Furthermore, YouTube, Facebook Live, and Snapchat have programmed people to want their information visually, fast-paced, and in bitesized chunks. As a result, the fast-paced capacity of video content to be digested will only continue to garner more attention in the future.

BENEFITS OF CORPORATE VIDEO Your business can benefit from corporate videos. A video gives your customers a behind the scenes view of your product, company, or ownership. When using corporate video, you can better relate to your customers and get that all-important visibility.

CORPORATE VIDEO PRODUCTION STRATEGY Whether you’re new to the idea or have been producing corporate videos for a few years, there is still an opportunity to improve your craft. A production company can help give you pointers for a product campaign strategy; all the way to planning and implementing your entire video production. A strategy is essential because it enables you to identify the goals for your videos. For example, it directs where you want to promote your videos and how to evaluate the success of your campaign.

Next, we’ll provide you with three quick tips to help you plan your corporate video production strategy. These tips will work for you whether your business is a brand-new startup, a midsized business or you’re a Fortune 500 company.

IDENTIFY VIDEO TALENT One of the main things that you need for a video is a talent to share your content. To save money, you should consider the talent that is already working for you. Yes, you can outsource your video production, but that can add to your overall expense. Instead, you should consider some of your current employees. Do you have current staff that loves to talk? Someone, your clients find engaging? How about someone who is super passionate about one of your products? These individuals are excellent sources for your ready-made talent.

LIVE STREAMING YOUR VIDEOS As was previously mentioned, people have grown accustomed to watching videos on YouTube, Snapchat, and Facebook Live.

The great thing about this trend is that many of these videos are spontaneous and non-technical. As a result, you can get away with less-desirable video quality. Moreover, this penchant for wanting to see a behind-the-scenes look at all kinds of topics makes videoing your business a way to connect with people. By sharing a few company secrets, you can further increase your video exposure. People love to feel that they’re in on the action.

MAKE CONTENT PERSONAL The last tip for your corporate video production strategy is to consider personal content. People yearn for connections.

Therefore, you are doing yourself and your business a disservice by believing you’re not interesting enough, large enough, or not popular enough for people to care. It is simply not the case. If you relate on a personal level to people, you can achieve a loyal following in ways that a corporate giant can’t. People buy from people they know and trust. What better way for people to know you than through video? It’s time to refine your corporate video production strategy with a company who understand where you’re coming from and what you aim to achieve.

Johnson: States Committing ‘Legalized Fraud’ with Medicaid Matt Kittle, MacIver News

MADISON – They’ve been described as “Medicaid maximization schemes,” revenue manipulations, gimmicks.

U.S. Sen. Ron Johnson has a more pointed expression for what some states have done to milk the system, to funnel more federal taxpayer dollars into their public health care coffers.

“I would call it legalized fraud,” the Oshkosh Republican said last week on the MacIver Newsmakers podcast.

“This is just a way to maximize the federal match into Medicaid and some states do more of these gimmicks than others and it creates a completely inequitable allocation of federal health care dollars …” Johnson added.

Medicaid provides federal matching funds to states for money they spend on health care services for low-income individuals. Some states have taken the agreement to the extreme.

“This has been going on for years. We don’t have the information, nobody knows how extensive this is. My guess is hundreds of billions of dollars worth, certainly over multiple years, but its tens of billions of dollars in any particular year,” Johnson said.

States artificially inflate the federal government’s contribution to the Medicaid program while reducing their state share, according to a report by the majority staff of the Homeland Security and Governmental Affairs Committee. Johnson serves as chairman of the committee.

The report is titled, “The Centers For Medicare & Medicaid Services Has Been a Poor Steward of Federal Medicaid Dollars.”

In testimony before the committee in August, U.S. Government Accountability Office Comptroller General Gene Dodaro told members that “the range of (state Medicaid) gimmicks … is almost limitless.”

States and the federal government share Medicaid expenses. The federal obligation varies based on a state’s per capita income. In Wisconsin, the federal government picks up about 60 percent of the Medicaid budget to the state’s 40 percent. The federal contribution, according to the Congressional Research Service, is “open-ended.”

As Dodaro testified, the “open-ended” nature of the federal government’s Medicaid funding obligation incentivizes states to create “all of these types of programs to try to draw down federal dollars.”

Some of the more popular gimmicks, according to Johnson, include: Intergovernmental Transfers (IGTs), which include “transfers of … funds between State and/or local public • Medicaid providers and the State Medicaid agency” in ways designed to trigger the release of federal matching funds.

Provider taxes, in which states tax health care providers and then return the funds to the providers, triggering a • federal match.

In one example of questionable transfers, Michigan ‘paid’ $122 million in state funds to county health facilities, along with a $155 million federal match triggered by the state government – and the same day, the county facilities transferred all but $6 million of the $277 million total back to the state,” Johnson wrote, referencing a Government Accountability Office report, on IGT-fostered “State Financing Schemes.” The state “realized a net gain of $149 million over the state’s original outlay of $122 million,” the report found.

Johnson said Wisconsin “may be taking advantage” of the open-ended system in some circumstances, but the Badger State is not among the primary abusers.

States have used enhanced federal funds through Intergovernmental Transfers “for a range of purposes with no direct link to improving quality of care or increasing Medicaid services,” according to a report from the Inspector General of the U.S. Department of Health and Human Services.

More than 40 states impose provider taxes on hospitals, described as a “Medicaid shell game” in December 2017 opinion piece published in the Wall Street Journal. The Wisconsin Hospital Assessment was first implemented in fiscal year 2009, according to the Wisconsin Department of Health Services.

Oregon state Rep. Mitch Greenlick, a Democrat from Portland, described his state’s provider tax as a “dream tax.”

“We collect the tax from hospitals, we put it up as a match for federal money, and then we give it back to the hospitals,” Greenlick, chairman of the Legislature’s House Health Care Committee said, as reported by the Portland Tribune. “They have enough money to put people in Medicaid so they have health insurance to pay for hospitalizations.”

While states may use the Medicaid gimmicks at the expense of federal taxpayers, CMS has done a shoddy job at collecting information, according to the General Accounting Office. CMS “generally does not require (or otherwise collect) information from states on the funds they use to finance Medicaid, nor ensure that the data that it does collect are accurate and complete,” GAO noted in its 2015 report. And many state supplemental payments to health care providers, made separately from regular claims-based payments for Medicaid services, are not subject to audits, GAO found.

Johnson said CMS’ failure to inform drives him nuts.

“I’m an accountant, I come from the business world. You need information. (I think) the fact that the government doesn’t collect the information is because they don’t want anybody to know,” the senator said.

Johnson intends to get answers.

In a letter sent last month, he asked the CMS administrator for the agency’s plan to address Medicaid maximization schemes, including proposed actions to hold states and providers accountable for intergovernmental transfers. The senator also wants to know what CMS intends to do about provider taxes used as a Medicaid maximization scheme. And he wants to know why CMS historically has not collected accurate and complete data from states on the sources of funds they use to finance the non-federal Medicaid share.

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.

Thanks to: Judi Murphy - referred Endwell Business Coaching, Heartland Payment and Robert Feest Insurance.

Steve Bobowski referred Hilton Garden Inn Milwaukee Airport.

Bob Gross referred Guardian Business Solutions.

Charles Fry referred ApTex. Mark Schanen referred Local First Podcast.

Contact IBAW director Steve Kohlmann for details on how you can invite a guest to a monthly breakfast meeting.

Coach’s Corner: Engaging Partially Disengaged Employees Steve Bobowski, Dale Carnegie Training Coach

Dear Carnegie Coach Bobowski:

I am challenged by partially engaged and disengaged employees. They are nice people and I do not want to fire them. What can I do to “fire them up?”

Chesley from Burlington

Dear Chesley,

Keeping employees engaged is a challenge all managers face. There are numerous things that you can do to keep your employees engaged and motivated.

THE ACTIONS I WANT YOU TO TAKE:

1.

Walk the Talk: Be enthusiastic and fully engaged with your job and your employees. Learn what motivates them, what they want to achieve and why this is important to them.

2.

Earn Trust, Credibility and Respect: Fulfill promises, keep confidences and commitments, and act consistently, fairly and rationally. Be authentic and approachable.

3.

Play to Strengths– Match the right person to the right job. By learning your employees’ strengths and work styles, you can make the best use of their individual and unique talents and skills.

4.

Instill a Purpose - Instill sense of purpose in your employees. Involve them in projects as fully as possible by communicating the big picture goal. Everyone needs to know that his or her efforts make a difference.

5.

Be Clear - Set clear and realistic expectations and define expected outcomes. Maintain open lines of communication and “check in” with employees on a regular basis.

6.

Listen - Learn to listen empathically, with your eyes, ears and heart. Listen without judgment and listen to understand and connect with your employees.

THE BENEFIT TO YOU:

You will keep your employees engaged throughout the year.

•

Make It A Great Day!

Steve

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 • •

No cost for meetings, a benefit of IBAW membership Referrals or 3 enrollments

New program starts Friday, October 5th!

Program Leader: Steve Bobowski

“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.

4 Recent Moves by the Trump Administration and Key Agencies Are Big For Small Business Karen Kerrigan, Executive Director, SBE Council, Washington D.C.

Congress may be out, but the wheels of reform continue to turn inside-the-beltway.

During the past couple of weeks, there’s been some notable movement on administrative actions by the White House and regulatory agencies that SBE Council has been advocating for, or monitoring very closely. These significant actions are very positive for entrepreneurs and small businesses.

Here are some highlights: Improvements to Health Reimbursement Accounts On October 23, the Departments of Labor, Treasury, and Health and Human Services (HHS) announced a proposed rule to liberalize the use of health reimbursement account (HRA) funds. The proposal vastly improves this important tool for small businesses.

Under the proposal, small businesses will be allowed to use HRA funds to provide offsets for premiums purchased by their employees in the individual market. Current rules in Obamacare do not allow employers to provide this type of financial support for employees.

In addition, employers who offer traditional group coverage would also be allowed to provide an HRA of up to $1,800 per year (indexed to inflation) to reimburse an employee for certain qualified medical expenses, including standalone dental benefits and premiums for a short-term health insurance plan for those employees who choose not to participate in the traditional coverage option offered by an employer.

Read the proposed rule here and the DOL FACT SHEET here.

This is a solid proposal for small businesses, and SBE Council will submit comments to make it even stronger for small businesses and their employees. (Read SBE Council’s response to the proposed rule here.)

Association Retirement Plans for Small Businesses On October 22, the Department of Labor announced a proposed rule that will make it easier for small businesses to offer retirement savings plans to their workers through Association Retirement Plans (ARPs). This model will leverage the power of pooling to better negotiate lower cost 401(k) type plans for small businesses and lift administrative burdens associated with managing the plans.

Similar to Association Health Plans (AHPs), where the final rules have been in place for several months to help small businesses more efficiently access affordable health coverage for their employees, ARPs could be offered by a variety of associations formed by city, county, state, or a multi-state metropolitan area, or in a particular industry nationwide. The self-employed would also be permitted to join such plans. In addition, plans could be sponsored through Professional Employer Organizations (PEOs) under the proposed rule.

As noted by the media release announcing the proposed rule: “By expressly permitting these new plan arrangements, the proposal would enable small businesses to offer benefit packages comparable to those offered by large employers. The Department expects the plans to reduce administrative costs through economies of scale and to strengthen small businesses’ hand when negotiating with financial institutions and other service providers.”

On August 28, members of SBE Council joined President Trump in Charlotte, NC where he announced an Executive Order directing the Department of Labor and Treasury to move forward with this initiative. (Read SBE Council’s media response to the Executive Order here.)

A Competitive Playing Field for Global Shipping Rates On October 17, the Trump Administration announced forceful action to address the disparity in global postal rates that undermine U.S. businesses. This disparity especially hurts our small businesses, and enables the production and shipment of counterfeit goods into our country. President Trump announced that the U.S. will pull out of the international system that sets shipping rates (terminal dues), as these rates undercut American business and the body governing rates has been unresponsive to change.

The U.S. is part of the Universal Postal Union (UPU), the international body that sets terminal dues. These are fees that postal operators pay each other for the domestic delivery on inbound international mail. Current pricing procedures not only put small businesses at a competitive disadvantage, but also reportedly create a loss for the United States Postal Service (USPS). Previous representatives from the U.S. State Department who have engaged in these negotiations have not been adequately instructed by the Postal Service leadership to achieve parity for our businesses, or even revenue neutral results for the USPS. Current terminal dues rates set by the UPU and provided by the United States Postal Service (USPS) to foreign shippers have resulted in a severe competitive imbalance that gives these shippers favorable rates for packages sent into the U.S., which happen to be far lower than what U.S. small businesses are charged to ship packages domestically.

As I noted in our media release about this important action: “President Trump’s action today is great news for American small businesses. This wacky system forces our small businesses to pay higher shipping rates than foreign competitors, subsidizes shipping costs for our competitors, enables intellectual property theft and counterfeiting, all the while exacerbating the challenging financial condition of the U.S. Postal Service. Small businesses are grateful for the leadership of President Trump and the work of his team.”

Read a small business owner’s view of why this is important to his firm in The Atlantic: Why It’s Cheaper to Ship Goods from Beijing Than New Jersey.

(See SBE Council’s media release on the action here, which includes detailed background on the issue and the UPU.) New Joint Employer Standard Moving Forward In its Fall 2018 Unified Agenda of Regulatory and Deregulatory Actions released on October 18, the Department of Labor said it will release a proposed rule on joint employer by the end of the year. For many types of small businesses and for entrepreneurs who wish to franchise their businesses, having certainty and predictability on joint employer is critical for moving forward with expansion plans. A common sense fix to the standard is good news coming out of the DOL. The National Labor Relations Board (NLRB) is also moving forward with a proposed rulemaking on the joint employer standard. Again, small business owners and employers want and need a clear and long-term rule given the Obama-era NLRB expansion of the standard to include ‘indirect’ and ‘unexercised’ employee control, which means small businesses could face unlimited and unpredictable joint employer liability and repercussions if they are a franchisee, staffing firm or if they work with other contractors, partners or subcontractors on projects in any industry.

Under the NLRB’s proposed new rule on joint employer, “an employer may be found to be a joint-employer of another employer’s employees only if it possesses and exercises substantial, direct and immediate control over the essential terms and conditions of employment and has done so in a manner that is not limited and routine. Indirect influence and contractual reservations of authority would no longer be sufficient to establish a joint-employer relationship.”

That definition and framework provides the clarity small businesses need. Small business owners and entrepreneurs need to weigh in here and let NLRB know you agree with their approach.

The DOL proposal will complement the NLRB’s action. At the same time, SBE Council is working with our allies to move the Save Local Businesses Act through the Senate, as it already passed the House this past summer. (Read SBE Council media response to the NLRB announcement here.)

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2nd Monday of the Month SALES ROUNDTABLE 7:30 am - 9:00 am Free & open to IBAW members only Register at IBAW.com

Sales can be a tough road of ups, downs, potholes and a few bumps.

But it can also be fast paced, exhilarating and rewarding.

If you’re in sales, you know there are things only other sales people understand; the thrill of scoring the big account, the uncertainty of “let me think about that.”, the frustration of phone calls or emails that don’t get returned. IBAW’s Sales Roundtable is a support and knowledge resource for sales professionals, business owners, marketing and branding experts who are charged with driving sales.

Join us to discuss the strategy, tactics, inspiration, and motivation to increase sales. It’s a FREE benefit of your membership!

Who should attend: • Sales professionals of any level.

• Business owners • Sales Managers • Marketing & P.R. Professionals

“For many years I ran sales meetings for as few as 3 and as many as 22 sales rep’s now I can go as a participant once a month to IBAW’s Sales Roundtable.

BONUS! Join the IBAW Sales Roundtable and get a compact disc with the BEST in Sales Survival Music. Play it to pump you up before that big meeting or to console you if you hit a sales slump. Guaranteed to make life better.

It’s a focused meeting and everyone wants the same thing – to be more effective at selling.”

- Jerry Wick, CEO, Custom Data Too Mail

IBAW Public Policy Committee Hosts Legislative Roundtable in Brookfield

On the afternoon of Thursday, January 25th, the IBAW Public Policy Committee hosted a Legislative Roundtable featuring Senator Lena Taylor, Senator Chris Kapenga, Representative Rob Hutton and Representative Dale Kooyenga, 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.

Additionally, the topic of the present state of the city of Milwaukee - crime, unemployment and the state of Milwaukee Public Schools, became quite heated at times.

Our next Legislative Roundtable is scheduled for Thursday, November 1st.

Visit IBAW.com for details.

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!

Join o

nline!

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2018 Membership Committee

Jake Hansen Jacsten Holdings

Charles Fry Robert W. Baird

Mike Poludniak Merrill Lynch

Dan Hansen

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.

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“ I almost always come away from an IBAW meeting with useable material that helps me with my business. Many times, a speaker will give me something that applies to ITU AbsorbTech. Other times, it is a conversation over breakfast that gives me value.”

Jim Leef, President & CEO, ITU AbsorbTech

“Being involved with a business organization like the IBAW is critical for small business owners in Wisconsin for growth and to have a voice with government.”

Rich Meeusen, CEO, Badger Meter.

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