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BUSINESS Sweet success CROW RIVER

Your local business-to-business source for the Crow River region

APRIL 2013

Mother, daughter find right ingredients at The Cake House in Glencoe

Inside: Klobuchar visits local firms to hear exporting concerns Litchfield Chamber launches ‘buy local’ initiative Learn how to implement a ‘feed forward’ approach HTI plans to downsize, sell Development Center Published by the Litchfield Independent Review $1 on newsstands and Hutchinson Leader

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Contents CROW RIVER

BUSINESS

Business feature: U.S. Sen. Amy Klobuchar seeks local input on exporting

January 2010

APRIL 2013 Vol. 4, No. 2 • www.crb.mn

PUBLISHED BY Litchfield Independent Review P.O. Box 921 Litchfield, MN 55355 320-693-3266

Hutchinson Leader 170 Shady Ridge Road NW Suite 100 Hutchinson, MN 55350 320-587-5000

PUBLISHER Brent Schacherer schacherer@hutchinsonleader.com 320-234-4143

Cover story: The Cake House in Glencoe tastes the sweet flavor of success as business grows

Business news: HTI plans to downsize, sell off Development Center in Hutchinson

EDITOR Juliana Thill thill@independentreview.net 320-593-4808 Litchfield office 320-234-4172 Hutchinson office CONTRIBUTING WRITERS Terry Davis

ADVERTISING REPRESENTATIVE Shari Forsman sales@crowriverpress.com 320-234-5702 AD DESIGNERS Laura Knodel, Barb Laidlaw, Jill Smith, Shannon Streich COVER DESIGNER Marne Long SUBSCRIPTION OR ADDRESS CHANGE Sarah Bauman 320-234-4162 bauman@hutchinsonleader.com

PRINTED BY Crow River Press 170 Shady Ridge Road NW Hutchinson, MN 55350 320-587-2062 Crow River Business is published monthly by the Litchfield Independent Review and Hutchinson Leader newspapers. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by means, electronic, mechanical, photocopying, recording or otherwise, without the prior consent of the publisher.

Business news: Employers add jobs in first part of year

12 Litchfield Chamber: ‘Buy local’ initiative to support Meeker County economy 13 Hutchinson Chamber: ‘Feed forward’ approach lets employees offer input in positive way 19 Meeker County EDA: Organization offers funds to businesses training new employees 23 Business achievements: Hutchinson Auto Sales, Dynamic Detailing, Double O, New Ulm Telecom APRIL 2013 | CROW RIVER BUSINESS

Opening lines

here’s no place like home, even when it comes to opening a business. Expert cake maker and decorator Teal Johnson and her husband, Dave, had built a successful business in a Twin Cities suburb. However, Teal began to long for home. So she and her family returned to McLeod County, where she grew up, and opened The Cake House in Glencoe. Their staff is small, but their dreams are big, and the family business is growing. In addition to creating wedding cakes with uncommon flavors, The Cake House also has become more of a bakery, with a small area with tables for locals to gather and enjoy a cookie, caramel roll or piece of pie and cup of coffee. Read more about their business, goals and sweet success in this month’s magazine. On another positive note, Minnesota businesses that export or would like to start exporting learned recently they have a friend with a listening ear in the U.S. Senate. Earlier this spring, U.S. Sen. Amy Klobuchar, D-Minn., was appointed to serve on President Obama’s Export Council, a national advisory committee. Read more about her recent visits to local companies and how she wants to help open up new export markets for Minnesota businesses and help them compete in the global economy. The Litchfield and Hutchinson chamber executives have

interesting columns in this month’s magazine. Dee Schutte in Litchfield explains the importance of businesses doing business locally and the impact it has on the local economy. Mary Hodson offers tips that managers and others can use when running meetings that not only gain input from employees, but help employees feel like their input matters. In addition, Suzanne Hedtke of the Meeker County Economic Development Authority tells how businesses can get reimbursed for the cost of training a new employee through the Central Minnesota Jobs and Training Services. As you page through the magazine, keep your calendar close — there are many opportunities to learn more about business and the local economy with events, meetings and seminars offered in April and May. And if you don’t have a booth at the Litchfield or Hutchinson business expos, which take place April 13, stop by and learn more about what is offered in your community, or outside your community. You never know who you’ll meet, how it could help your own business, or how you can help another. — Juliana Thill

Coming events Olson to speak at Litchfield Chamber luncheon, annual meeting April 9 Litchfield Chamber of Commerce members are invited to participate in the annual membership meeting April 9. This year’s meeting will feature a keynote address by David Olson, president of the Minnesota Chamber of Commerce. Decisions at the state Legislature that will affect business change daily, and Olson will offer information about the lat- David Olson est developments. President of the Also, the Chamber will provide infor- Minnesota mation about its newest program to pro- Chamber of vide financial assistance to adult learners. Commerce The event will be from 11:30 a.m. to 1 p.m., with lunch served at VFW/Heroes, 915 Highway 12 E. To register or for more information, contact Dee Schutte at 320-693-8184 or email her at dee@litch.com.

Workshop series, ‘Learn to Lead,’ continues with session on motivation Business men and women can invest in their leadership skills this year. The Litchfield Chamber and Meeker County Development Corp. have teamed up with Ridgewater College’s Customized Training to offer a series

CROW RIVER BUSINESS | APRIL 2013

of educational leadership workshops. Each program stands on its own but participants can attend and learn from all the programs. Michael Monroe Kiefer, Ph.D., Ridgewater College, will lead the sessions. He is the author of “The Powermind System — Power of Will,” and has trained people from the U.S. military, law enforcement, states agencies, law firms, Fortune 100 corporations, and nonprofit organizations. Each session will run from 8:30 to 11:30 a.m. and will take place at sponsoring businesses. Cost is $49 per session. Register through Ridgewater College at 800-722-1151, ext. 8592 or at www.ridgewater.edu/customized. The workshop schedule includes: I April 10: Self Motivation, Inspiration and Drive/How to Stay Fired Up Every Day. This seminar covers how to use realistic positive self-talk in your daily routine to combat negativity. It also has techniques to eliminate chatter, toxic people, and negative surroundings. Event will take place at RIE Coatings, 221 Logeais St., Eden Valley. I May 15: Discovering Your Natural Talents and Skills. In 2010, a unique natural talent and genetic skills test was developed. This test allows anyone high school age and older to determine his or her natural talents and genetically inherited skills. Participants will learn how to maximize the use of their talents in their career and life. Event will take place at Meeker Cooperative Light & Power, 1725 Highway 12 E., Litchfield. I June 12: Running & Attending Highly Productive Meetings.

APRIL 2013 | CROW RIVER BUSINESS

Business news New business filings rise significantly Secretary of State Mark Ritchie announced that new business filings are up significantly from the same period a year ago. January 2013 statistics show that 5,519 new businesses filed with the Office of the Secretary of State, representing a 4.4 percent increase compared to the same time period in 2012. This is the second highest January on record. “The creation of these new businesses reflects confidence in our state’s Mark Ritchie economy,” Ritchie said. “After showing Minnesota strong growth in business filings in Secretary 2012, it appears that Minnesota will of State maintain that trend in 2013.” Filings in 2012 were the second highest number in our state’s history.

BusinessUSA website designed to help small businesses, exporters BusinessUSA is the first fully integrated federal website reflecting a new level of collaboration among federal, state and local agencies. It is a presidential initiative designed to help small businesses and exporters discover opportunities, connect with the right resources and grow. The BusinessUSA network connects people with tools and resources to help small businesses succeed. Go to BusinessUSA.gov to: I Connect with federal government resources. I Connect with state government resources. I Connect with local resources. I Connect with BusinessUSA online at http://business.usa.gov/ to chat, or connect on Twitter, by phone at 800-FED-INFO, or subscribe to the BusinessUSA newsletter.

A look at energy and the environment for Earth Day

pril 22 marks the 43rd anniversary of Earth Day — a day intended to inspire awareness and appreciation for the Earth’s natural environment. The day came from reaction to a massive oil spill in waters near Santa Barbara, Calif., in 1969. In honor of Earth Day — and Earth Week (April 16-22) — the Census Bureau offers statistics pertaining to energy and the environment:

49,174 Number of workers employed in nuclear electric power generation across the U.S. in 2010, up from 41,502 in 2009. They had an average salary of $109,021, down from $110,355 in 2009.

-46 percent The drop in the consumption of residual fuel oil in the U.S. manufacturing sector in 2010, going from 314 trillion Btu in 2006 down to 170 trillion Btu consumed in 2010.

19,061 trillion Btu The energy consumption in the U.S. manufacturing sector in 2010, down almost 10 percent from the 21,098 trillion Btu (British thermal units) consumed in 2006.

CROW RIVER BUSINESS | APRIL 2013

53,525 Number of workers employed in forestry and logging across the U.S. in 2010, up from 53,003 in 2009. They had an average salary of $37,215, up from $35,128 in 2009.

Business news

Employers add jobs in first part of year Minnesota recovers nearly 90 percent of jobs lost during the recession

innesota employers added 12,100 jobs in January, according to figures released in March by the Minnesota Department of Employment and Economic Development. The department also released revised figures from the federal Bureau of Labor Statistics showing the state gained 16,700 more jobs over the previous 21 months than originally reported. January’s job gains combined with the revised federal figures means the state has recovered nearly 90 percent

of the 160,000 jobs that were lost during the Great Recession, with 50,000 jobs added over the past year. The state unemployment rate climbed to a seasonally adjusted 5.6 percent in January from a revised 5.4 percent in December. The U.S. unemployment rate in January was 7.9 percent. “The Minnesota labor market is staging a robust comeback, with all 11 industrial sectors showing year-over-year growth rates for the first time since 2000,” said DEED Commissioner Katie Clark Sieben. “At the current pace of job growth, we soon will have recovered all the jobs that were lost in

the recession.” Minnesota’s job growth is outpacing national growth in seven of the 11 industry sectors. Trade, transportation and utilities led all sectors in January, adding 4,100 jobs. Other gains occurred in construction (up 2,600), leisure and hospitality (up 1,700), government (up 900), other services (up 900), education and health care (up 700), manufacturing (up 600), information (up 400), professional and business services (up 200), and logging and mining (up 100). Financial activities was the only sector that lost jobs in January, down 100.

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Business feature U.S. Sen. Amy Klobuchar visits with workers and executives at Miller Manufacturing in Glencoe as part of her “Exporting Minnesota” tour to businesses in eight Minnesota cities. Klobuchar serves on President Obama’s Export Council, a national advisory committee. She said she wants to help open up new export markets for Minnesota businesses and help them compete in the global economy. PHOTO BY JORGE SOSA

Klobuchar visits local businesses to learn about exporting concerns U.S. senator visits eight cities during ‘Exporting Minnesota’ tour By Juliana Thill EDITOR

.S. Sen. Amy Klobuchar, D-Minn, spent time in her home state recently to gain a better understanding of how important exporting is to local businesses, as well as what needs to be done to boost exports and advance innovation. Klobuchar was appointed Feb. 1 to President Obama’s Export Council, the primary national advisory committee on exports. The Council makes recommendations on policies and pro-

CROW RIVER BUSINESS | APRIL 2013

grams to expand U.S. exports and resolve trade-related difficulties. “Exports are literally a world of opportunity,” she said, noting that the United States is a leader in agricultural exports. As part of her two-day, eight-city “Exporting Minnesota” tour in February, Klobuchar met with local leaders, as well as with workers and executives at Miller Manufacturing in Glencoe and at American Time and Signal in Dassel. Klobuchar also made stops in Benson, Chaska, Glenwood, Morris, St. Cloud and Willmar to discuss her efforts to open up new export markets for Minnesota businesses. At Miller Manufacturing, Klobuchar toured the facility on the west edge of Glencoe, chatting with line workers and speaking with reporters before

meeting privately with Miller’s leaders. Miller Manufacturing makes pet, farm and ranch equipment ranging from flat-backed feed buckets for horses to cattle prods. “I’m going to talk to them to find out what markets are blocked for them,” Klobuchar said before her meeting with company executives and Glencoe civic leaders. Klobuchar concluded her “Exporting Minnesota” tour with a business leader roundtable at Enterprise Minnesota in Minneapolis. Joining her were U.S. Department of Commerce Deputy Undersecretary Ken Hyatt, Enterprise Minnesota President and Chief Executive Officer Bob Kill, and representatives from Agco, Carlson Companies and Ikonics, an imaging technology company in Duluth, Minn. “Meeting with businesses across the

Business feature

“

Meeting with businesses across the state, I’ve seen firsthand how important exporting is to their success. I have long been committed to efforts to boost exports and advance innovation, and I look forward to continuing this work on the President’s Export Council.

state, I’ve seen firsthand how important exporting is to their success,” Klobuchar said. “I have long been committed to efforts to boost exports and advance innovation, and I look forward to continuing this work on the President’s Export Council.” The Export Council also includes four other senators, five members of the House, the Secretary of Commerce

AMY KLOBUCHAR, U.S. senator, D-Minn.

and other cabinet members, as well as 28 leaders in the private sector. As chair of the Commerce Committee’s Subcommittee on Competitiveness, Innovation, and Export Promotion, Klobuchar has led efforts to boost America’s ability to compete in the global economy, working to cut red tape for businesses. In 2010 she passed legislation — the

Export Promotion Act — to help smalland medium-sized businesses sell their products in international markets. She also has introduced legislation, the Innovate America Act, to promote innovation. Jorge Sosa, staff writer at the Hutchinson Leader, contributed to this report.

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Coming events Winsted Chamber, Ridgewater offer Learn to Lead business sessions

Hutchinson, Litchfield chambers plan business expos April 13 The Hutchinson and Litchfield chambers of commerce are conducting business expos, where companies and organizations can demonstrate their products or services, enhance image and visibility, and network and collaborate with others. I Hutchinson Area Chamber of Commerce and Tourism’s “Bring it Home” Family Fun & Business Expo will be from 9 a.m. to 4 p.m. Saturday, April 13, at the McLeod County Fairgrounds. For information or to reserve space, call 320-587-5252. I Litchfield Chamber of Commerce Business Expo will be from 9 a.m. to 1 p.m. Saturday, April 13, at the Litchfield Civic Arena, 900 Gilman Ave. N. For more information or to reserve booth space, call 320-6938184.

Enterprise Minnesota offers tips for businesses to operate efficiently Enterprise Minnesota will offer a class titled Lean Office: Beyond the Manufacturing Floor from 8 to 11 a.m. May 15 at Trusight, 9805 45th Ave. N, Plymouth, Minn. In the class, participants will learn to be lean throughout their organization. The exact same principles that Lean uses in a manufacturing shop floor environment can be applied to any other office setting to streamline processes and exact greater efficiency and profitability. Administration centers, engineering, purchasing, scheduling, quality and accounting are ripe for improved efficiency because few companies have tried to apply Lean thinking to an office environment. Participants will learn from company leaders about how to take Lean to their office and find new ways to reduce waste. Early registration fee by April 30 is $79 per attendee. Regular registration fee starting May 1 is $119 per attendee. For more information or to register, go online to www.enterpriseminnesota.org/ and click on Events.

CROW RIVER BUSINESS | APRIL 2013

Improved leadership skills for supervisors, managers and executives are the goals of a four-session business professional development series that runs April through June in Winsted. This Learn to Lead series addresses topics from discovering natural talents and skills to situational leadership and positive workplace attitudes. The Tuesday morning series is available through the Winsted Area Chamber of Commerce and Ridgewater College Customized Training and Continuing Education. Dates and topics include: I April 23: Maintaining Positive Workplace Attitudes I May 14: Self-motivation, Inspiration & Drive: How to Stay Fired Up! I June 4: Discovering Your Natural Talents and Skills I June 18: Situational Leadership Sessions will be from 9 a.m. to noon at Winsted City Hall, 201 First St. N., Winsted. Cost is $179 for the series or $49 per session. Companies that purchase three seats get a fourth one free. Winsted Chamber members receive a special member price. For more information or to register, go to www.ridgewater.edu/customized and select Business and Computers under the Specializations or contact Pat Lang at 320-234-8537 or pat.lang@ridgewater.edu. To register by phone, call 320-234-8592 or 800-722-1151 ext 8592.

Workplace Wellness Conference focuses on Meeker, McLeod, Sibley counties Whether a business is new to worksite wellness or a longstanding leader, the Meeker McLeod Sibley Healthy Communities is planning a Workplace Wellness Conference to provide people with skills and tools to enhance wellness initiatives in their worksite. The Workplace Wellness Conference will take place from 8:30 a.m. to 2:30 p.m. May 1 at Victorian Inn, Highway 7, Hutchinson. Mary Kruse, president of HealthSource Solution, and Ken Dickson, director of health strategy and consultation at Medica, will give the keynote address: “Making Lasting/Sustainable Changes in Your Workplace.” There will be a plenary session: Making the Case for Workplace Wellness & Workplace Engagement, as well as break-out sessions to choose from to learn best practices for implementing wellness initiatives in the workplace. There is no cost for the conference, which is sponsored by the Statewide Health Improvement Program grant through Meeker, McLeod and Sibley counties. For more information go online to www.mmshealthycommunities.org/ or send an email to info@mmshealthycommunities.org.

Coming events SWIF provides ongoing class with tips for starting small business

SWIF offers education, free consultations to entrepreneurs

Kill to review survey results of Minnesota’s manufacturers

Southwest Initiative Foundation will offer “Starting a Small Business” class from 9 a.m. to noon Wednesday, April 17 at the foundation’s office, 15 Third Ave NW, Hutchinson. The class is conducted on the third Wednesday of each month in Hutchinson. Entrepreneurs can learn how to research and prepare a business plan to determine whether a business idea is feasible, marketable and profitable and learn about available financing options. There is no charge to participants, but registration is requested. For information or to register, contact Greg Jodzio at 320-5874848 or 800-594-9480 or email gregj@swifoundation.org.

Southwest Initiative Foundation offers entrepreneur education opportunities and walk-in consultations from 9 to 10 a.m. on the first Wednesday of each month. The next opportunity is April 3 at the foundation’s office, 15 Third Ave NW, Hutchinson. People can meet with a business consultant to have their business or pre-venture questions answered and discuss the challenges and opportunities of business ownership. No appointments necessary and there is no charge to participants. For information, call Jackie Turner-Lovsness at SWIF, 320-587-4848 or 800-594-9480.

To recognize the importance of manufacturing to the economy, Litchfield Chamber of Commerce is planning a program titled, “The State of Manufacturing in Minnesota.” Bob Kill, president and chief executive officer of Enterprise Minnesota, will review the highlights from the fourth annual comprehensive survey of Minnesota’s manufacturers. The event will be from 11:30 a.m. to 1 p.m. May 3 in the lower conference room at Meeker County Courthouse, 325 Sibley Ave. N., Litchfield. Lunch is included. Cost is $15 for Chamber members, $25 for non-members. For more information, contact Dee Schutte at 320-693-8184 or email her at dee@litch.com.

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Litchfield Chamber

Chamber launches ‘buy local’ initiative to support Meeker County economy By Dee Schutte EXECUTIVE DIRECTOR OF LITCHFIELD CHAMBER OF COMMERCE

During a conversation about the Chamber’s “buy local” initiatives the question was posed, “Even if you could get people to spend more locally, would it even be significant enough to really matter? Why does the Chamber even bother spending resources on this?” There are probably several ways a person could go about responding to this criticism. I chose to get right down to the numbers. So I asked, “What would you consider significant?” We settled on $6 million as something we would both consider significant in our community. There are 595 businesses in Meeker County (that

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employ roughly 6,318 workers). Of the total population in Meeker County, 11,785 are in the workforce. (This information is from the Minnesota Department of Employment and Economic Development.) If every business spent an additional $100 per month with local vendors, they would generate $720,000 in a year. If each employed Meeker County resident spent an additional $10 per week at local businesses, those purchases would generate an additional $6.1 million a year. That comes to roughly $6.8 million annually going into the local economy. I assume that not every business or every employed person can or will shift their spending with local businesses. I estimate that 90 percent would, and some do more. It is not out of the stretch of the imagination that $6.2 million is attainable. That conversation and arithmetic provided the foundation for our Chamber’s newest “buy local” initiative. Formulated by our Membership/Marketing Committee, the initiative will be introduced April 9 at our annual meeting; to the public April 13 at our Business Expo; and run throughout the rest of 2013. Our theme is “Shop here and generate $6.2 million/year to our local economy.” It is meant to draw attention to how easy it would be, with minimal additional investment from our businesses and citizens, to bring a significant amount of additional money into our local economy — more than $6 million. An additional $6.2 million would mean more jobs and a nicer place for us all to live. Just $10 per week could make that much difference. Makes you think, doesn’t it? Do your part — patronize local businesses when purchasing products and services for your home, shop or office. Just a little extra spent locally makes a big difference. We invite you to come to our Business Expo from 9 a.m. to 1 p.m. Saturday, April 13, at the Litchfield Civic Arena and check out the local businesses there. All of our exhibitors are eager to do business with you.

Hutchinson Chamber

‘Feed forward’ approach lets employees offer input in positive way By Mary Hodson PRESIDENT OF HUTCHINSON AREA CHAMBER OF COMMERCE AND TOURISM

Have you ever asked a question you didn’t really want the answer to? In the work place, we have discussions on many occasions about work performance: what worked well, what didn’t, why not, who forgot the flip chart, who ordered the lunch no one ate, why isn’t that team pulling their weight, etc. Many times we will ask for feedback, which can be awkward and sometimes embarrassing for either the employee or manager. Recently, at the January session of the Hutchinson Leadership Institute, Don Jones of Don Jones Consulting suggested trying “feed forward.” The idea of “feed forward” is to ask questions in a different manner. When we ask for feedback, the answers might feel negative or critical, not to mention the focus is on the past, and we cannot change the past. “Feed forward” can provide insight and ideas for the future, while employees will feel valued for their opinion, and will appreciate being part of the process. Here are two ways to use feed forward: I Choose one thing you would like to improve or change. An example might be that your staff meetings feel stagnant, no one engages in conversation, and staff has that look of boredom. Write down your question like this: “What are two things you would do to make our next staff meeting more engaging and interesting for our team?” Ask several people the question. Write down their answers. Each time the question is answered, say “thank you” and nothing else. No rebuttals or arguments. You’ve now asked

for input, given someone the opportunity to have their say, and saying thank you will show you value that opinion. You’ll have a number of answers and perhaps be able to track patterns, as well. Using these ideas, it’s hoped you will be able to make some adjustments to your meetings, which will make the team feel better about your meetings, and demonstrate your interest in their involvement. I This also can be adapted for a group setting, where everyone in the room determines what they might like to improve. The group can ask their questions one-on-one with the other group members. You can do this for several minutes, or ask each person to get a certain number of answers. Again, each person now has a set of ideas personalized to their question. “Feed forward” is a great way to be positive, looking forward, not backward. This is beneficial for everyone and does not have to be aggressive, critical or uncomfortable. Go forth and ask the questions you do want the answers to.

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Cover story

PHOTOS BY BRENT SCHACHERER

Teal and Brittany Johnson opened The Cake House in August in Glencoe. Mother and daughter are using their creativity and big dreams to lay the groundwork for a business they hope goes beyond their specialty of cake making and decorating.

Johnsons enjoy sweet success as cake business grows By Brent Schacherer PUBLISHER

hen Teal Johnson and her family decided to return to her childhood roots in McLeod County four years ago, she saw an opportunity to, well, have her cake and eat it, too. She parlayed decades spent learning and perfecting the art of cake making and decorating, along with running her own business in the metro area,

CROW RIVER BUSINESS | APRIL 2013

Teal Johnson returns to her roots in McLeod County and opens The Cake House into a home-based business that, late last summer, became a bricks-andmortar location just off Glencoe’s main street. The Cake House opened in

August at 917 12th St. “There was no place around this area at all,” Johnson said of the decision, made with plenty of family input, to start a cake decorating business in the area. “This is what I’d done for a long time.” In fact, Johnson and her husband, Dave, owned and operated their own cake business for about five years in Maple Grove, Minn. The business, Mrs. T’s Cake & Candy, specialized in cakes but expanded into candies and

Cover story

“

...(W)hat really tipped us off was we went to the Hutchinson bridal fair two years ago and people just fell in love with our cakes because we have unique flavors.

DAVE JOHNSON, who owns and operates The Cake House in Glencoe with his wife, Teal, and their daughter, Brittany

other baked goods. Eager to share her knowledge of and passion for the craft, Teal also taught cake-decorating classes. Though they built a successful business in the bustling suburbs, the Johnsons found themselves looking homeward a few years ago, as Teal, who was born and raised in Hutchinson, sought to move closer to family. With Teal’s mother living in Glencoe and sister, Lori, an employee of the

Glencoe-Silver Lake School District, they chose the small town as their new home. “And we found out there was no true bakery left here for sweets,” said Dave, who Teal said is the Cake House’s marketing and public relations expert. “The local grocery stores and things like that, they all have wonderful products and do really well, but there’s nothing that you could or were able to come to. So we decided we would try and open up the business.”

The Cake House, as the name implies, makes cakes for all occasions, but also bakes a wide variety of specialty items, Dave said, including “everything from muffins to bars to sweets, any kind of sweet. Some of the best pies you’ll ever have.” “And everything from scratch,” Teal interjected. “Just like Grandma used to do.” The Cake House staff is small — Teal and Dave, along with daughter Brittany, a co-owner. They also receive

APRIL 2013 | CROW RIVER BUSINESS

Cover story some assistance with the bookkeeping from sister Lori, and Teal’s mother is a regular visitor/assistant. But it is busy. When they first moved to Glencoe, the Johnsons focused on cakes, using a professional baking facility in town to create special-occasion — especially wedding — cakes. That experience and the reception they got when they attended a bridal fair two years ago prompted them to think bigger. “When we came out to Glencoe, we had gone to several stores and talked to a lot of people about, ‘where do you get your wedding cake, or where do you get your birthday cake?’” Dave Johnson said. “And we heard the same stories over and over — a grocery store. And like I said before, they have wonderful products, but nothing that would compare, really, to us.” The Cake House puts a focus on fresh, homemade cakes and sweets, Teal Johnson explained. In a day when price is often a driving factor in consumers’ purchasing decisions, she said, freshness is something people don’t mind paying a little more for. “It matters a lot. We have even young kids come in and try our cupcakes, or buy a roll, they’ll take a bite and they’ll be talking to you when they take a bite, and they’ll shut up,” Teal said with a smile. “You’ll be like, ‘OK, what’s up?’ And they’ll just say, ‘Oh my goodness I haven’t tasted anything like this. “I was brought up, everything was homemade,” she added. “Between Grandma and Mom, they made everything from scratch. That’s important to me, and it makes a big difference to (customers), too.” The “fresh approach” and their bakers’ creativity really were appreciated when the Johnsons set up at bridal shows after moving to the area four years ago. “And so what really tipped us off was we went to the Hutchinson bridal fair two years ago and people just fell in love with our cakes, because we have unique flavors,” Dave Johnson continued. “We showed the brides some of the different flavors and they just went, ‘Are you kidding me?’ They were just amazed that there was more out there than just the normal white,

CROW RIVER BUSINESS | APRIL 2013

A stuffed animal is wrapped in a blanket of frosting on one of the display cakes at The Cake House in Glencoe. Co-owner Teal Johnson says cake decorating is limited only by the imagination.

chocolate and marble.” There was much more, as it turns out. The flavor palette at The Cake House stands at 80, including such adventurous tastes as champagne, piña colada, strawberry daiquiri, root beer and tutti frutti. And along with flavors, Teal and Brittany, who learned cake decorating as a child from her mother, know how to put the icing on top. Creative frosting techniques, the use of fondant — frosting with a modeling-clay like consistency — and an open mind allow Teal to create a myriad of different looks for cakes. She also has used various cake pans, molds and sculpting to create threedimensional cakes for customers. One memorable creation was a zombieshaped cake complete with oozing eyeballs. As the business grew, the Johnsons knew they needed to find a more permanent home for it. So, even though it was “scary,” Teal said, they signed a lease for the building on 12th Street in Glencoe. Before that, though, the family carefully laid out their business plan, which helped lessen some of the anxiety over investing in the building. “It got to the point we were too

busy,” Dave Johnson said. “Too many cakes and too many opportunities and we started looking for a spot that we could move into and this one came available, and the numbers jived. They just worked out. We said we have to make so much a month and so many cakes and so many other things, and the town of Glencoe has just been very, very supportive.” Along with providing more space for creating cakes of all kinds, the building has allowed The Cake House to become more of a bakery, with a small area with tables for locals to gather and enjoy a cookie, caramel roll or pie and coffee. The white board with daily baked-goods offerings is changing regularly, though pies and The Cake House’s “famous stuffed caramel rolls” are certain to be listed every day. About the only thing the bakers avoid in the area of sweets is anything fried, such as donuts. The Johnsons also have an eye on expanding in the future. First on the list is to begin stocking supplies for home bakers. “I’ve had a lot of people come up to me and say, ‘Can you get this for me? Can you get that for me?’” Teal said. “I used to carry the supplies (at Mrs. T’s) also, and the pans and the cookie cut-

Cover story ters and everything you could think of. And there’s really only one other store in the state that carries supplies for the home … and she’s in the northern suburbs.” Sharing what she has learned is something Teal Johnson has done most of her professional career. While in the Twin Cities, she taught baking and decorating classes to students at Park Center High School in Brooklyn Park, which she described as “really interesting.” “The kids … I showed them how to do it, I helped them out,” she said. “I told them the sky’s the limit; you can do whatever you want. They came back, and they made toilets, they made bathtubs, they made animals. It’s just phenomenal. And some of those kids, they weren’t excited about anything, school or anything. And the teacher came back and she showed pictures of what they did, and she said ‘I’ve never seen those kids so into anything,’ which is kind of nice.”

“

We would love to help pull business from the Cities out to this area.

BRITTANY JOHNSON, who owns and operates The Cake House in Glencoe with her parents, Teal and Dave Johnson

That rewarding experience is something that’s been incorporated into some of The Cake House’s offerings, as well. They have hosted birthday parties in which the entertainment was teaching kids how to decorate cookies,

cupcakes or cakes. For Mother’s Day, The Cake House will bake a cake and then let children come in and decorate it for their mother. As Dave Johnson puts it, “90 percent of a cake decorator is imagination and the willingness to experiment.” That seems to be the business philosophy at The Cake House, as both Teal and Brittany openly discuss their vision for growing the business. Their long-term goal is to expand to a larger facility that will offer even more room for the cake and sweets business, and to eventually create a kind of one-stop shop for bridal event planning, from cake to flowers to dining hall. It’s an aggressive goal, they admit, but one that would be good not just for their business but also for the area. “We would love to help pull business from the Cities out to this area,” Brittany said. “That would be phenomenal,” Teal agreed.

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Business news Cokato Museum, Historical Society creates display about businesses

Minnesota Inventors Congress plans annual show

The Cokato Museum and Historical Society is honoring the 135th birthday of Cokato with a temporary display, “Cokato Is Open for Business,” featuring a look at some of the many businesses that have called Cokato home during the past 130 years. Numerous collectibles, photographs and other items will highlight some of the more than 500 businesses that have been in Cokato. Some were open for decades; others only a couple of years. Regardless of tenure, all of them contributed to the vitality of Cokato’s economy. This display is an attempt to reflect that vitality and story. “Cokato is Open for Business” runs through Memorial Day at the museum, 175 Fourth St. S.W. For more information, call the museum at 320286-2427, or visit online at www.cokato.mn.us.

The Minnesota Inventors Congress is planning its annual Invention & Idea Show in April in Redwood Falls, Minn. The Minnesota Inventors Congress is dedicated to stimulating economic development by supporting innovation and inventors at all phases of the invention development process. As a nonprofit organization, the Minnesota Inventors Congress provides year-around access to information about how people can develop their idea at no cost. Since 1958, the MIC has hosted an invention show in Redwood Falls. Each year inventors from across the country come to Redwood Falls to exhibit and test market their newest products. The Minnesota Inventors Congress Invention & Idea Show 2013 will be April 19-20 at Redwood Area Community Center, 901 Cook St., Redwood Falls. The Expo Hall is open from 10 a.m. to 6 p.m. Admission is $5 for adults and free for those 16 and younger. For information, go online to www.minnesotainventorscongress.org.

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Minnesota Department of Revenue enhances e-Services system After months of gathering feedback, the Minnesota Department of Revenue is unveiling new, improved enhancements to its e-Services system. E-Services is the department’s online system (www.mndor.state.mn. us/tp/eservices/_/#1) that allows business taxpayers to file, pay, and review tax returns, access account information, and perform other tax related business electronically. The department had real users test the changes and give feedback. The department spent six months analyzing their responses and making changes. This feedback plays a crucial role in allowing taxpayers to conduct their business in a more effective and efficient manner. “We found that we needed to change the navigation, page layout and improve the experience for our users,” said Terri Steenblock, assistant commissioner for individual taxes. “We are thrilled to offer this updated service to our customers and we will continue gathering feedback to make even more enhancements.” The log-in screen will look different, but current eServices users will not need to change their user ID or password in order to access the system.

Meeker County EDA

Organization offers funds to businesses for training new employees EXECUTIVE DIRECTOR OF MEEKER COUNTY ECONOMIC DEVELOPMENT AUTHORITY

Are you thinking of hiring employees but not quite certain when or how many? Central Minnesota Jobs and Training Services might be able to help you make the decision to hire now. Central Minnesota Jobs and Training Services, a non-profit employment, training and job placement services organization, has funds available through the Dislocated Worker On the Job Training program. Under the Dislocated Worker OJT program, your business can be reimbursed for the cost of training a new employee — up to 50 percent of the new employee’s wage for the length of the OJT contract. Central Minnesota Jobs and Training Services can make referrals to your business of quality candidates for you to hire. Or you can refer candidates to Central Minnesota Jobs and Training Services for OJT eligibility. But don’t wait too long, Central Minnesota Jobs and Training Services has funds available now and they must be used before June 30. Some guidelines for OJT eligibility are as follows: I Business provides the training and supervision for the new employee. OJT contracts can be written for: I Permanent, full-time jobs — at least 30 hours a week. (Seasonal or temporary jobs do not qualify for OJT contracts.) I Permanent, part-time positions — at least 20 hours a week — if the new employee is 55 or older, has a disability, or meets certain other criteria. I Trainee must meet OJT eligibility requirements. I Trainee will earn industry- recognized credential. I OJT eligibility must be determined prior to hiring the new employee For more information on this opportunity, contact Cathy Baumgartner at 612-325-8701 or email her at cbaumgartner@cmjts.org.

Learn to Lead workshops Meeker County EDA along with Litchfield Chamber of Commerce through Ridgewater Community College are offering Learn to Lead Workshops in Meeker County.

These courses provide training for emerging and established leaders to enhance your leadership skills. The courses are taught by Michael Kiefer, Ph.D. and his method of teaching has been well received by the participants who have attended the workshops. Don’t miss the last three workshops: I April 10: Self-motivation, Inspiration & Drive: How to Stay Fired Up! I May 15: Discovering Your Natural Talents and Skills I June 12: Running and Attending Highly Productive Meetings Register now at www.ridgewater.edu/customized or 800722-1151 ext. 8592.

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APRIL 2013 | CROW RIVER BUSINESS

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By Suzanne Hedtke

Business news With about 600 employees left at its Hutchinson campus, Hutchinson Technology received city permission to split its campus so it can sell off the 235,000-square-foot Development Center after operations taking place there are moved to the nearby headquarters building later this year.

PHOTO BY TERRY DAVIS

Hutchinson Technology Inc.’s plans to split off about 63 percent of its land, including the 235,000-square-foot development center, from the neighboring headquarters facility in Hutchinson. The lot split, encompassing 38.4 of the 61.2 acres the company owns east of Bluff Street Northeast, would allow HTI to sell the land and building constructed 22 years ago.

HTI plans to downsize, sell its Development Center in Hutchinson By Terry Davis CONTRIBUTING WRITER

utchinson Technology Inc.’s decision two years ago to eliminate all production activities at its home Hutchinson campus has turned its large development center building into excess space. As a result of a downsized work force at the local site, recently set at 600 employees by a company official, the company also is looking to downsize its real estate holdings. The Hutchinson Planning Commission gave a favorable recommendation to HTI’s request to split off about 63 percent of its land, including the 235,000-square-foot develop-

CROW RIVER BUSINESS | APRIL 2013

ment center, from the neighboring headquarters facility. The Hutchinson City Council followed up by also giving its approval in March. The lot split, encompassing 38.4 of the 61.2 acres the company owns east of Bluff Street Northeast, would allow HTI to sell the land and building constructed 22 years ago. HTI split off an 8.63-acre parcel near Bluff Street in 2009. A smaller building there was HTI’s former training center and housed New Century Academy charter school for a few years. Midwest Industrial Tool Grinding Inc. now occupies it. Before voting, Planning Commission members discussed conditions that city staff recommended including with their approval. One requires the company to run new sewer and

Business news water lines to the development center now served by lines from the headquarters building. City ordinances require the new lot to have its own utility services. “Can it wait until the building is sold?” asked Commission Member Christie Hantge. “I think it is a requirement of the lot split,” City Engineer Kent Exner said. Commissioner Dave Johnston asked who would be responsible for maintaining interior private driveways and roadways shared by all three lots. “That is a property owner issue,” Planning and Zoning Director Dan Jochum said. “That really is their issue. We are more concerned with access now with three different businesses there.” One required condition is that agreements covering access to all lots over those common roads be recorded with the property at the McLeod County Recorder’s Office within a year. When asked about the status of electrical service, company official Brandon Fraser said each building already has separate electrical service. A new meter, though, might be needed for the development center, he added. The development center houses such activities as engineering, design, tool room, labs, prototype production and some high volume manufacturing. Those functions are scheduled to move to HTI’s main building later this year.

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Business achievements New Ulm Telecom reports first-quarter dividend, pays shareholders in March The board of directors of New Ulm Telecom Inc. recently approved a first-quarter dividend payment of 8 1/4 cents per share. The dividend will be paid to shareholders of record at the close of business on March 8, and will be payable on March 15. NU-Telecom is a publicly held communications company providing voice, Digital TV, Internet, managed services, TechTrends Wireless, computer sales and computer repair services. Headquartered in New Ulm, NU-Telecom serves customers in the Minnesota cities of Glencoe, Goodhue, Hutchinson, Litchfield, Redwood Falls, Sleepy Eye and Springfield, as well as Aurelia, Iowa. NU-Telecom also operates TechTrends, a technology retail store in New Ulm. For information on the company, visit www.nutelecom.net. PHOTO COURTESY OF SWIF

Teri Jensen started her Watertown art business, Red Rose Fine Art & Text, with the help of a loan from the Southwest Initiative Foundation’s Microenterprise Loan Program.

SWIF offers loan assistance to Red Rose Fine Art & Text

outhwest Initiative Foundation recently provided loan assistance to Teri Jensen through its Microenterprise Loan Program to start up her Watertown art business — Red Rose Fine Art & Text. Jensen is a self-taught artist whose work includes paints, watercolors, colored pencil and charcoal drawings. Subjects include landscape, nature and individual portraits. Jensen creates and sells custom art prints as frameable art or note cards and stationery, through local venues, as well as at art and craft shows. A unique niche for Jensen is she takes portraits or heirloom photos and create them in an artistic print that customers can then use as they wish. She also is a writer with stories, poems, and motivational and wellness materials for sale. Jensen will be the featured new artist in the Hutchinson Center for the Art’s show in April. Her artwork also will be on display in downtown Watertown through the Historical Society. “Teri is a talented, artistic person, and SWIF is pleased to be able to assist her in pursuit of her life’s dream,” said SWIF Program Coordinator Berny Berger. Proceeds from the SWIF loan were used for equipment, art supplies and working capital. Jensen can be reached at 952-955-2025 to inquire about her artwork. SWIF’s Microenterprise Loan Program offers loans of up to $50,000 for starting or expanding for-profit small businesses located within the 18 counties of southwest Minnesota, as well as Carver, Stearns and Wright counties.

CROW RIVER BUSINESS | APRIL 2013

PHOTO BY TERRY DAVIS

Ryan Rogers is in charge of Dynamic Detailing, a part of Hutchinson Auto Sales, which opened at 885 State Highway 7 W. Rogers also does light automotive repairs, such as brakes and tune-ups.

Bradford opens Hutchinson Auto Sales, Rogers operates Dynamic Detailing Hutchinson Auto Sales opened before Christmas at 885 State Highway 7 W., the former site of Kingston Auto Sales and originally Emans Auto Sales. Owner Bart Bradford specializes in vehicles, such as passenger cars, mini vans, SUVs and pickups priced from $2,000 to $9,000. The other part of the business is Dynamic Detailing, where Ryan Rogers provides anything from a simple wash and vacuum job to a full, professional detailing job, inside and outside. But for both men, the highlight of Hutchinson Auto Sales and Dynamic Detailing is its new concept for light mechanical repairs — a bonded and insured labor-only shop.

Business achievements Schiroo relocates his repair shop

American Bankers Association appoints Daeges to second term on government relations committee

Bryan Schiroo, owner of Double O Auto & Truck Repair, moved his repair shop from 755 State Highway 7 W. about two miles east to 1130 State Highway 7 E., the former Barclay Automotive shop in late January. While Schiroo liked his former location, being on a hill was getting to be difficult. He performs inspections on semis and trucks for the Department of Transportation, and it was hard sometimes dealing with the hill. While the new location has the same number of stalls for Shiroo and his technician to work, there is more room in the shop overall, he said, and more room outside for customer parking. Shiroo started Double O in March 2010.

The American Bankers Association appointed David Daeges, president and chief executive officer of Center National Bank in Litchfield, to serve as Minnesota’s representative on its Government Relations Council Administrative Committee. The committee typically consists of one representative from each state serving a one-year term. Daeges is serving his second term. The Government Relations Council Administrative Committee, which met in December in Washington, D.C., plays a critical role as the American Bankers Association develops recommendations for the association’s board of directors on positions and priorities relating to legislative and regulatory issues facing the banking industry. The committee also works to identify emerging issues the ABA should address. Daeges and other members of the Government Relations Council

Administrative Committee serve as advocates of the ABA’s policy positions before members of the legislative and executive branches and related agencies, media and fellow bankers. “It is a great honor to serve on this important committee,” Daeges said. “I look forward to contributing and helping fur- Dave Daeges ther the critical role our nation’s banks play in the broader economy.” Center National Bank is a community bank with total resources in excess of $190 million. The bank has offices in Litchfield and Plymouth where 43 employees serve their markets. Daeges has been the executive officer of the bank for the past 16 years.

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