IBAW June 2013 magazine

JUNE 2013 JUNE MEETING: Wisconsin始s Entrepreneurial Leadership Drive for Excellence.

JUNE 21 Dirk Debbink, Chairman, MSI General Vice Admiral Chief of Naval Reserve Commander, Navy Reserve Force (Ret.)

INSIDE THIS ISSUE

DRAGOTTA: COMMON CORE QUESTIONS

KEATING: FCC LAGGING & DRAGGING

KANE: PRIVATE JETS A VIABLE OPTION

no business is small At AT&T a storefront is as important as a skyscraper.

Small businesses are the backbone of our economy.

They are the engines of new opportunity and growth. Having access to innovative technologies drives success. And we’re here to make sure you’re connected. Always.

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

© 2012 AT&T Intellectual Property. All rights reserved.

IBA MEDIA LINKS Executive Director Steve Kohlmann Heritage Printing / Cultivate Communications

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President Ann Barry Hanneman Simandl Law Group S.C. President Elect 2013 Steve Van Lieshout K & S Technologies VP. State & National Programs Jeff Hoffman Judson & Assoc.

Speaker Vos briefing for May 17th.

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Secretary John Weber Hypneumat Treasurer Casey Malek Kolb + Co. Membership / Sponsorship Heather Baylor Park Bank

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Directors Bart Adams Kolb + Co. Larry Elton Advantage Leasing

Kooyenga on Tax Reform Click image to view.

Video courtesy of McIver Institute

Richard Blomquist Blomquist Benefits Jason Kuwayama Godfrey & Kahn Tom Boelkow BSI Design, Build, Furnish Dave Drumel Staff Electric

We hear you.

Political Advocacy • Education • Networking www.ibaw.com / 262-844-0333 / IBAWOffice@gmail.com

Business Presentation Series JUNE 21ST The Wisconsin Club DIRK J. DEBBINK Chairman, MSI General VICE ADMIRAL CHIEF OF NAVY RESERVE COMMANDER, NAVY RESERVE FORCE (Ret.) Mr. Debbink is Chairman of MSI General, a design/build construction firm in Oconomowoc, WI. He has also recently retired as Vice Admiral, Chief of Navy Reserve, Commander, Navy Reserve Force in Washington D.C. Click here to register.

LOCATION! !

THE WISCONSIN CLUB ! 900 W. WISCONSIN AVE. MILWAUKEE

7:00 AM!

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REGISTRATION & NETWORKING

7:30 AM !

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BREAKFAST & PROGRAM

9:00 AM!

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PROGRAM ENDS

JULY 19 Meeting Do to a last minute schedule change, our original speaker had to reschedule so we are working to fill the July meeting.

As of press time we are still finalizing the speaker so please watch your email and the IBAW website. We’ll send you notification when we have confirmed our speaker.

Sorry for the inconvenience!

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The Big Five O Steve Kohlmann, IBAW Executive Director

I turned 50 in April, and while some men would be out shopping for Corvettes or booking some type of adventure vacation to fend off a mid life crisis, I was meeting with my surgeon, Dr. Chiang of Brookfield Surgical Associates to go over my “procedure” scheduled in a few weeks. The area needing attention was my abdominal area. I’ll spare you the details but in a nutshell it turns when you’re on the planet for 50 years, things internally have a tendency to jar loose and may need to be ‘repacked’ - and so it was with me. I was told this was a fairly routine procedure and there was very little risk but I would need to take it easy for a few weeks. Just an observation; when someone else goes in for an operation it’s a procedure, when you personally undergo an operation, it’s surgery.

Surgery went well and I was home later that day. Dr. Chiang skillfully performed his work. A few weeks earlier I was watching a program on how surgeons in the Civil War had to deal with battle wounds while in the field. Probably not the thing to watch before surgery - or maybe it was. We’ve come a long way in healthcare.

Anyway, where was I? Ah yes, post op. Surprisingly I didn’t have any pain. In my anesthetic haze, I listened to the nurse indicate before the team sewed me up, they sprayed in a numbing agent so I would be pain free for about 24 hours, then a prescription for pain killers would do the rest. The next morning was a different story as the numbing agent wore off. Evidently you use stomach muscles for just about everything you do so when that area is carved open - you really feel it. The next few days on pain meds - and generally feeling out of sorts - it was strictly bed duty. With only so much TV to watch I would often rise from bed and aimlessly shuffle around the house just to get a change of scenery. The pain would retreat a little more each day and while there were a few bumps in the road to recovery, within several weeks all systems were back online and functioning normal. Now, a month later, I’m feeling great. Having internal organs repackaged to where they are suppose to be is definitely the way to go.

So I turned the big Five O facing a medical issue that, in the scheme of things, turned out to be nothing more than a blip on the radar screen of life. If there was a take away on this it’s that we’re all pretty fragile and there’s more to life than work. Remember, it’s important to spend time relaxing, enjoy life and not take your health for granted.

That’s your take away for this months column. But then again, you probably already knew that.

Now, about that Corvette shopping...

Wisconsin New Business Profile: There’s a new business taking flight - based right here in Wisconsin. Milwaukee Jets is the only fractional jet company in Wisconsin and headquartered in Milwaukee at Mitchell Field.

Your first question might be: “What is a fractional jet company?”

The fractional jet business has been around a long time. It’s a model that takes a corporate jet and divides up the usage of it between two or more owners. Each owner buys a share of the airplane based on the amount they intend to fly in a given year. Shares are sold in ¼ fractions and each fraction equates to approximately 100 flight hours a year.

Milwaukee Jets is the brain child of Troy Kane, a 42 year old pilot working at an international airline. Kane’s formal education is in accounting - but his passion is aviation. He worked in the business world as an accountant for over 10 years, before the desire to fly drew him into the aviation industry. Drawing from both career experiences, he observed a need to serve the discriminating air traveler. This became the motivation to start Milwaukee Jets.

The model fits exceptionally well for the busy business owner/CEO, individual or business organization that travels often. Here’s some of the advantages: -

Productivity would be the biggest advantage for the hectic schedules we all have. Milwaukee Jets offer the flexibility to travel when you want, where you what, all at the times you need. “The United States has more than 3,000 airports giving you much greater ability to get you to the actual city you need, unlike the airlines who only serve around 250 total markets.” Kane points out.

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Safety is a number one priority. Milwaukee Jets pilots are all simulator

Captain / CEO Troy Kane of Milwaukee Jets

trained and screened so they only have the best of the best. The size of the company affords the opportunity for close interaction between owners and pilots ensuring clients have open communication with the crew.

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Convenience is key. Had enough of inconvenient airline schedules, TSA, delays, excuses, overbooking, rudeness and underperformance of the airlines? Milwaukee Jets has solved all of that by offering ownership in your own aircraft. There is absolutely no need to rely on an airline again.

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Flexibility is paramount to their success. Being able to schedule a trip at a moments notice and travel to where you need to go is the one of the major benefits of owning your own airplane. For example, a trip to Sioux Falls, SD pops up. If you travel on the airlines you would incur a two day absence out of the office for your senior leadership team. Milwaukee Jets can get you there, conduct your meeting and get you back in the office the same day. Meetings on the aircraft with your team before & after your destination meeting can help make your time that much more productive.

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Connectivity is a natural since the aircraft are equipped with telephones and internet capabilities so you can remain productive and connected while en route. Hours in an airplane need not be wasted with someone’s seat back in your workspace while jammed in to a space fit for sardines. Providing a comfortable workspace to keep you engaged is important to business travel.

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Cost Savings is also a great consideration, their business model is to be the most economical way to own and travel in a private jet. With fractional ownership you only pay for the flight hours you need to use and cost is split among multiple owners. Also with the company being local, we have greatly reduced overhead passing on savings to the customers.

As with any start up, there are challenges. The biggest hurdle in starting up Milwaukee Jets is an introduction meeting to the qualified customers. CEO’s, business owners and individuals who have the means to make the decisions on a capital expenditure like a corporate jet are difficult to gain initial access to.

“While we struggled initially to gain access to these valued clients, we have launched a marketing campaign to market our product to get the word out” Kane said. Kane is encouraged by the growing interest, and will continue to market services via different avenues to grow the company.

“Milwaukee - and Wisconsin - being a fiscally conservative area is a great benefit to us.” Kane says. “The owners will see the immense financial value in private jet travel. Being a small Milwaukee based company, allows us to be flexible to our customers and deliver the same quality ownership experience that the big fractional ownership companies provide but at a significant cost savings. Once people travel on a corporate jet they will never go back. I liken it to golf on a country club course then going back and playing a public course on a Saturday morning.” Kane continues, “Milwaukee Jets is a growing company and we hope to see more clients join us to experience the only way to travel. I would welcome anyone who has any questions or potential interest to contact me and see how you could benefit from private aircraft.” Kane said.

You can reach Kane at Troy.kane@milwaukeejets.com -

John Felmy, American Petroleum Institute, Washington D.C. Our speaker for the May meeting was Mr. John Felmy of the American Petroleum Institute. Mr. Felmy flew in from Washington D.C. to give the IBAW membership an exclusive look into America’s energy situation.

His presentation followed up with a Q&A session.

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Presentation available!

Click the icon to the left to view Mr. Felmy’s presentation.

Another full house as over 50 IBAW business owners and their guest gain access to a national energy economist flown in from Washington D.C.

Representative Joe Sanfelippo at May Meeting...

15th Assembly District Joe Sanfelippo stopped in at our May meeting to give us an a legislative update on what was happening in Milwaukee and his district. Specifically Representative Sanfelippo discussed recent legislation that will move Milwaukee County Supervisors from a full time to part time positions.

IBAW Members Make Journal Sentinel Survey for Top Workplaces: Congratulations to these IBAW members for being on the Milwaukee Journal Sentinel survey for Top Workplaces in southeastern Wisconsin!

Kolb + Co. Godfrey & Kahn S.C. Tailored Label Products Baker Tilley Virchow Krause LLP

Quote of the Month “My mom kept telling me that I’d better learn to do something for when this burns out. I said, ‘It’s not going to.’

‘Something to fall back on.’ That was the phrase she always used. And I used to say, ‘We aren’t going to fall back.

There isn’t going to be any falling back.’ " Tom Petty from the book ‘Conversations With Tom Petty’

Technology and Entrepreneurs: FCC Lagging and Dragging the Market Raymond Keating, Chief Economist Small Business Entrepreneurship Council

The telecommunications marketplace continues to drive ahead with investing in, expanding and innovating high-speed Internet Protocol (“IP”) broadband networks. Of course, consumers ultimately are driving this transformation, as they make the decisions about what works and what does not in the marketplace.

For example, a December 27, 2012, NBC News report noted that, according to the Centers for Disease Control’s National Health Interview Study, “Of the more than 20,000 households interviewed, just over half used wireless (i.e. cellular) phones for all or nearly all phone calls — 35.9 percent were wirelessonly, and 15.9 percent had a landline but rarely used it. That adds up to 51.8 percent of all households…”

Also, in FCC comments filed on January 28, 2013, AT&T reported, “ILECs [incumbent local exchange carriers] have been hemorrhaging access lines year after year. Since 1999, the number of residential switched ILEC access lines in AT&T’s ILEC states has fallen by more than 68%, even as the number of total housing units that ILECs must serve has soared, and fewer than 30% of households in AT&T’s 22state ILEC region subscribe to traditional ILEC voice services.”

It’s clear that consumers are sentencing the old telephone networks to economic oblivion. The question is: How can policy clear away obstacles and hurdles to investment and innovation?

One key step would be to relieve service providers from regulatory requirements and wasted costs related to the outdated, dying networks.

As AT&T pointed out in comments filed with the FCC in November of last year: “Indeed, legacy regulations affirmatively harm consumers because, left intact, they would delay the transition to an allIP regime and inefficiently force ILECs to invest scarce capital in wireline services that consumers are increasingly abandoning in favor of unregulated alternatives… As the National Broadband Plan explained, legacy regulations that ‘require an incumbent to maintain two networks’ both ‘reduce the incentive for incumbents to deploy’ next-generation facilities and ‘siphon’ investments away from new networks and services.’”

AT&T proposed geographic trials of “next-generation service” so that policymakers could better grasp this transition to IP broadband networks. By making such trials free from legacy regulation, policymakers would better see how the market is driving this transformation, and be able to identify the regulatory reforms needed to both protect consumers and encourage private sector investment and innovation.

As the Small Business & Entrepreneurship Council, along with Women Impacting Public Policy and the National Association for Moms in Business, put it in comments filed with the FCC on January 28, 2013: “The system of beta tests in select wire centers envisioned by the Petition offers a unique opportunity for the Commission, industry, state and local governments, and other stakeholders to work together to identify the areas in which regulations should be modernized to provide regulatory certainty and to ensure a level playing field on which all broadband service providers can compete.”

Unfortunately, the response from the FCC on May 10, 2013, signaled little more than regulatory foot dragging, as they declared nothing more than that they seek more comments on the issue of geographic trials.

What’s the problem with such an at-best go-slow approach?

In a statement, Jim Cicconi, AT&T’s senior executive vice president of external and legislative affairs, captured the key point: “We continue to believe that controlled, comprehensive geographic trials will more likely identify problems and allow the crafting of solutions. We also believe that further delays by the FCC in moving to such trials, which they themselves would control, creates more investment uncertainty.”

While so much on the public policy front in recent times has worked against entrepreneurship, business growth and investment, the telecommunications revolution in the private sector has forged ahead, and been a lifesaver for the U.S. economy, and for countless small businesses that have been able to explore new opportunities, reduce costs and expand their market reach. Any opportunities to clear away government-imposed costs would have beneficial effects for the telecommunications industry, and for residential and business customers of such services throughout the nation.

Make no mistake, there is a real cost to all involved when government regulators lag behind and put a drag on private sector innovation and risk taking. The FCC needs to move ahead quickly on these geographic market trials, so that resources can be shifted from maintaining yesterday’s networks to continuing to build and innovate the networks of tomorrow.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council in Washington D.C.

Common Core Standards Needs More Facts Uncovered Ken Dragotta, President / CEO, System Engineering & Automation Corp.

Common Core State Standards (CCSS) is a program that was initially designed to improve educational standards.

CCSS is based upon common benchmarks and standards. Although it sounds like a great program, the devil is in the details. CCSS has many critics, including the Heritage Foundation, CATO Institute and the liberal Brookings Institute. The topic has shown concerns on both sides of the political spectrum: While the criticism from the left is based upon educators loosing authority, right organizations voice concern over the Federal top-down takeover of state and local education programs.

The money for this program is based upon budgeting by each state, yet the Feds are making money available to reimburse the states with “Race To The Top competitive grants and raises many questions: • What will happen when the Feds have states dependent upon the federal money and forces additional conditions to meet requirements?

• Who are the players in the development of the standards?

• Who is writing the standards?

• How does this program deal with the different learning styles between analytical and creative kids?

• Who is impacted by these standards...choice, charter, public, private?

These questions, and others will be addressed at a Business Coalition meeting held in Waukesha. Karen Schroeder will be the guest speaker on 6/12/13 at the Machine Shed, N14 W24145 Tower Place (I-94 & WIS 164 / Exit 294) Pewaukee. Ms. Schroeder is an expert in the field of Common Core and lectures across the entire Country on the issue. She is a retired school teacher that has testified as to the dangers of CCSS. Plan on being seated by 6:45 AM and placing your breakfast orders. Karen will speak promptly at 7:00AM and the event will last until 8:15 with questions afterward. We anticipate a large crowd and have asked that everyone interested RSVP to me by clicking here

Another event is planned with Karen for Serb Hall on Thursday 6/27 from 6-9PM for anyone that is unable to make the 6/12 breakfast meeting. Join us to have these questions answered by our CCSS expert. Karen Schroeder is the President of Advocates for Academic Freedom, a member of the Wisconsin Educational Communications Board, an experienced public school teacher, and an educational consultant.. Frequently interviewed by Wisconsin radio personalities, Karen writes for the U.S. Journal and other newspapers in several states.

SBA WISCONSIN CONGRATULATES LOCAL PARTNERS ON NATIONAL RECOGNITION MILWAUKEE—The Wisconsin Women’s Business Initiative Corporation (WWBIC), Milwaukee, and the Wisconsin Business Development Finance Corporation (WBD), Monona, will receive national awards from the U.S. Small Business Administration, the SBA’s Wisconsin District Office announced today. Both will be honored at an awards breakfast in Milwaukee on May 31 and during June National Small Business Week ceremonies in Washington, D.C. “We are extremely proud of these winners. Wendy Baumann and Joseph Wolfe represent the best in their field. They and their organizations are truly deserving of this national recognition,” said SBA Regional Administrator Marianne Markowitz. “They are a shining example of how our resource partners excel in building communities and empowering entrepreneurs.”

WWBIC will receive the national Women’s Business Center Service Excellence Award. With four Women’s Business Center locations in the state they support entrepreneurship for women and men alike, helping them to start, grow, and sustain businesses. Beginning in late 2011, they piloted a highly successful Job Corps youth entrepreneurship program which has become a national model.

WWBIC has been a state award winner several times and received the SBA’s Midwest regional award in this category in 2011 and 2012. Among its many achievements, WWBIC assisted 397 startup businesses in 2012. In their capacity as a micro-lender, they provided 126 direct loans totaling $3.5 million to business clients, with loan clients each creating 2.7 jobs and retaining 5.8 jobs on average. WWBIC and its President and Chief Visionary Officer Wendy Baumann are active locally, regionally, nationally and internationally in advancing their mission.

WBD will receive the award for large CDC’s (Certified Development Companies) over $50 million.

According to its mission statement, WBD “provides the knowledge, services, and resources to foster economic development solutions that grown jobs, businesses, and communities.” It offers SBAguaranteed 504 long-term, fixed-rate loans, and it assists qualified businesses in accessing other guaranteed loan products. In fiscal year 2012, WBD, working with 114 Wisconsin financial institutions, obtained 302 loan approvals totaling over $228 million, making it third in the country (of over 255 CDC’s). It holds a loan portfolio of over $550 million, the 6th largest nationally. WBD has also been instrumental in training Wisconsin lenders on working with small businesses, and it has shown national leadership in helping businesses reduce their costs through use of a temporary SBA 504 refinancing program. WBD’s President and CEO Joseph Wolfe is former Board Chair of National Association of Development Companies (NADCO). Dan Schneider, WBD’s Executive Vice President, will also be recognized as SBA Wisconsin’s 2013 Financial Services Champion.

Both WWBIC and WBD will receive their awards at the SBA’s National Small Business Week ceremonies in Washington, D.C. on June 21. They and SBA Wisconsin’s other award winners will be recognized at the 28th Annual SBA Awards Breakfast on Friday, May 31. To register for the event or to sponsor a table, click here. Contact Mary Trimmier at (414) 297-1093 or mary.trimmier@sba.gov for more information.

Welcome New IBAW Members!

Tom Parks M4 Financial Partners

Christopher Zuzick, VanderBloemen Group LLC

Erik Owen, Oak Hill Business Partners

You Can Make a Difference In Wisconsin!

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The Independent Business Association of Wisconsin is a not-­for-­profit entity filed with the IRS under 501(c)(6) of the Internal Revenue Code. As a not-­for-­profit association, the members of The Independent Business Association, Inc. are allowed to deduct a percentage of dues that are not used for lobbying purposes. For the year 2012 based on the total income of the association and the lobbying expenses as reported on the Wisconsin State Ethics Board Lobbying reports for 2011 the percent of dues that were used for lobbing purposes is 15%. Therefore, the percent of dues that would be tax deductible is 85%.