Upsize Minnesota March/April 2018 by Upsize Minnesota

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CONTENTS March • April 2018 • Vol. 17 No. 2 • www.upsizemag.com

PAGE 18

Cover story

Social media mania: Twitter, Facebook, Instagram, and other platforms can help your business grow. Business owners and marketing professionals discuss how to maximize their benefit. BY ANDREW TELLIJOHN

Cover photograph by Tom Dunn

PAGE 4

Bb BUSINESS BUILDERS

PAGE 16

Editor Beth Ewen talks about being a throwback in a high-tech, sometimes confusing new world.

PAGE 6

Dust off that business plan and make it work for you. by Tom Siders, L. Harris Partners

Staff list:

Take the necessary steps to make your consulting relationships work. by Tom Salonek, Intertech

PAGE 22

PAGE 10

A panel of experts talks about the challenges associated with running a fast-growth company.

From the editor:

Who’s who at Upsize magazine, and how to reach us.

Upsize Minnesota (USPS 024-029) is published bi-monthly for $20 by Upsize Minnesota, 3033 Excelsior Blvd, Suite 10, Minneapolis, MN 55416. Periodicals postage rates at Minneapolis, MN and additional mailing offices. Postmaster: Send address changes to Upsize Minnesota, 3033 Excelsior Blvd., Suite 10, Minneapolis, MN 55416

CONSULTING

FRANCHISING Use process mining to build efficiencies, add to your bottom line.

MANAGEMENT

WORKSHOP:

by Charles Modell, Larkin Hoffman Daly & Lindgren

PAGE 28

PAGE 14

Sandy Hansen-Wolff took over AgVenture under difficult circumstances, but 15 years later, the company is thriving.

HUMAN RESOURCES How to negotiate pay when hiring during times of low unemployment by Angela Lurie, Robert Half International

CATCHING UP: AgVenture Feed & Seed Inc.

Planning now means peace of mind later.

What happens if… THE ECONOMY WEAKENS

RETIREMENT LOOKS VERY TEMPTING…

A DIVORCE OCCURS IN THE FAMILY

YOU DESIRE A CHANGE IN LIFESTYLE

YOUR KID DOESN’T WANT TO RUN THE BUSINESS

THERE’S AN UNEXPECTED HEALTH ISSUE

YOUR BUSINESS PARTNER WANTS TO SELL

CK&Co. can help you proactively prepare your transition with our 4-step action plan. Visit us at lp.ckco-cpa.com/upsize to learn more.

Download our free Succession Planning Guide Online lp.ckco-cpa.com/upsize

tax • audit • accounting business consulting (952) 345-2500 www.ckco-cpa.com

Member of

Ice floes

EDITOR

Beth Ewen bewen@upsizemag.com

MANAGING EDITOR Andrew Tellijohn atellijohn@upsizemag.com

DESIGN DIRECTOR Jonathan Hankin jhankin@upsizemag.com

CIRCULATION MANAGER Georgene Bergstrom gbergstrom@upsizemag.com

PHOTOGRAPHER

Tom Dunn tom@tomdunnphoto.com

HOW TO REACH US To subscribe email Georgene Bergstrom, gbergstrom@upsizemag.com or visit www.upsizemag.com With story ideas email Andrew Tellijohn, atellijohn@upsizemag.com To advertise email Wes Bergstrom, wbergstrom@upsizemag.com To order reprints email Georgene Bergstrom, gbergstrom@upsizemag.com To order extra or back issues email Georgene Bergstrom, gbergstrom@upsizemag.com To suggest Web resource links, links@upsizemag.com

UPSIZE MINNESOTA INC. Lake Calhoun Center • Suite 10 3033 Excelsior Boulevard Minneapolis, MN 55416

UPSIZE MARCH • APRIL 2018

the shortest of four lines, only to be yelled at when I’m almost at the front that the line is actually on the other side, 20 people back. Amazon Prime, I wish I knew how to quit you. My favorite technological advancement right now is a throwback. It’s my smart TV with a single remote that has only four buttons: Netflix, Amazon, Hulu and something else. (Is there anything else?) It’s in my she shed, which is what my millennial staff members tell me is the current term for a cougar cave. I don’t tell them I need to use a dumb remote because I have to keep up my reputation as their sharp and scintillating editor, which I actually can do with some old-fashioned analog skills that I developed the hard way. I can work a source to get the perfect quote or write a story that will blow readers’ minds. What I can’t do is figure out which of three remotes turns on my husband’s TV. Which plays Showtime, which rents a movie, which turns up the sound bar … What to do? I’ll just go in the kitchen to listen to my favorite songs by Adele. “Hey Google,” I’ll say. “Play Pink.” Beth Ewen Editor and co-founder Upsize Minnesota bewen@upsizemag.com

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PHOTO BY JONATHAN HANKIN

PUBLISHER

Wes Bergstrom wbergstrom@upsizemag.com

I GOT A SMART SPEAKER for Christmas and soon learned about all the amazing things it can do, like sync all my light fixtures, turn up the thermostat, mix a cocktail and shovel snow — I think, although I lost interest quickly when it turned out a few of those items were off the table. I didn’t use it for any of those things, though, because I don’t care about them. Instead, day after day I would say: “Hey Google, play Adele,” and it would do so, or actually it would sometimes play Pink instead but I don’t know why. After about the fifth day of this, when I was dancing around the kitchen to Adele (or Pink) my son Clark, who was home from college for break, came up from the basement. He looked at me with such scorn that, for a moment, I knew exactly how the ancient Eskimo elders felt just before their children put them on an ice floe and shoved them out to sea. But he was helpful, too. I kept shouting things at the speaker, like, “Hey Google, could you please go ahead and turn down the music now because it’s a little too loud?” After a few tries and no results, Clark looked at the speaker and said in a regular voice: “Hey Google, stop.” And it did. Then he gave the ice floe a big push. It’s not that I don’t appreciate technological advancement. I do, just not necessarily things that seemingly many other people find groovy. I don’t care when I was in light sleep or deep because it’s apparent when I wake up haggard or fresh. I don’t care if there’s an LED sensor on the milk cooler by the espresso machine that shows when it’s empty, because if you lift it up that’s obvious, and it doesn’t cost $400 extra. Things I care deeply about, meanwhile, like vibrant bricks-and-mortar retail, seem to be stuck tragically in the past. At Target I wait for the cashier to Pick. Up. Each. Green. Pepper. To. Check. The. Price. At J.C.Penney (don’t ask why) I wait in what appears to be

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consulting

BUSINESS BUILDERS

How to cultivate winning clientconsultant relationships by Tom Salonek

TIPS 1. Start your search for a consultant by examining a firm’s long-term track record and the types of organizations on their client list. 2. Make sure you see a prospective consultant’s past work and meet with the people who will be involved with your project. 3. Once you’ve selected a consultant, commit to making the engagement successful by communicating regularly, about expectations, direction and feedback. 4. Share ownership of a project’s success by removing organizational roadblocks and ensuring they are working well with the company’s full-time employees. 5. Spend time on the front end of a project ensuring that consultants learn your business.

UPSIZE MARCH • APRIL 2018

NO MATTER WHETHER you’re the client or the consultant, core principles apply to making consulting relationships work. Much like members of Congress must “reach across the aisle” to forge effective political partnerships, effective client-consultant relationships work best when both parties communicate, participate, treat each other with respect and share responsibility for outcomes. Unfortunately, as frequent legislative failures demonstrate, people do not always play by common-sense rules. When they do, however, the results can be impressive. As the owner and CEO of a consulting company that works with hundreds of organizations to build software, I can attest that great work happens when we partner with clients who share these values. In fact, our people will go far beyond what is reasonably expected when a client follows these simple principles: Seek a good fit Not surprisingly, client-consultant relationships work best when both organizations share common values. If both companies believe, for example, in the importance of teamwork, honesty, communication and exceptional outcomes, it’s highly likely that an exceptional outcome will result. How do you find a consultant that will be a good fit? Start by examining a firm’s long-term track record and the types of organizations on their client list. Ask how long, on average, they’ve been working with their clients and how many represent repeat engagements. It’s also telling to look at the stability of the consulting firm’s employee base. A consulting firm with frequent employee turnover may not be able to complete your project

without a lot of people churn. This also raises questions about their culture. When comparing services, make sure it’s a fair comparison. Ask questions about what’s truly covered by a bid, what’s outside the scope, and how inevitable project scope changes will be handled. Once you’ve prepared a short list of consulting firm candidates, get ready to drill down for more information with final interviews. Work the interview process Much like the employee interview hiring process, engaging a consultant takes time and preparation. When interviewing prospective consultants, be sure to see their past work and meet with the actual people who will be involved in your project (i.e., avoid being the victim of the old “bait and switch” strategy employed by some firms with a shallow talent pool). Think about the following questions during the interview: • Do they ask questions? • Do they seem “too good to be true?” • Do they pay attention to details? • Does their work culture seem similar to yours? • Do they follow up appropriately? Communicate, listen, and pay attention to details. Once you select a new consultant, make a commitment to making the engagement successful. New relationships, no matter whether personal or professional, get off to the best start when the people involved communicate their expectations and listen to the expectations of others. Likewise, I’ve seen new business rela-

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Thursday, May 24th

A Luncheon Workshop at the Minneapolis Club

GROW OR GO

Growth is essential to a company’s success, not easy to achieve and even more difficult to sustain. The likelihood of continued growth is a key consideration when deciding to build or sell a business. This workshop will help entrepreneurs prepare for the grow of go decision, and introduce experts who can help. Who should attend: Entrepreneurs, CEOs, presidents, small-business owners and executive managers. Questions from the audience will be encouraged. Cost: $34.00, which includes the program, lunch and parking during the event.

Location: The workshop will be held at the Minneapolis Club: 729 Second Ave. So. — in downtown Minneapolis — at the corner of 8th Street (one way headed east) and 2nd Ave. Enter the parking ramp from the 8th Street side, on the south side of the building.

SPACE IS LIMITED! REGISTER NOW, go to bit.ly/2CX6Bn7 For questions, please contact the Front Desk team of The Minneapolis Club 612.332.2292 or concierge@mplsclub.org

SCHEDULE: 11:00 – 11:30 — Registration & Networking | 11:30 – 1:00 — Introductions, Lunch & Workshop | After 1:00 — Networking

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MARCH • APRIL 2018 UPSIZE

tionships wither because the players involved communicated poorly. Good clients clearly communicate expectations and priorities, provide clear direction and give feedback on a regular basis. They also choose a central point of contact for both the consultant and within the company, and then share this information with everyone on their staff. Consultants share at least half the communication burden and must speak up early and often to avoid molehills from becoming proverbial mountains. They also should pay careful attention, take notes, ask questions and respectfully offer their honest professional perspective, even if it conflicts with the client’s point of view. In other words, great consultants bring their “A” game every day by paying attention to details and caring deeply about outcomes. Share responsibility While consultants bear the responsibility of “going the extra mile” to make engagements successful, clients who share ownership along the way tend to get the best results (which enhances their own reputation with colleagues and higher ups of course!). Often this means taking the initiative in quickly removing organizational roadblocks so consultants can move ahead, such as proactively working to diminish political boundaries between consultants and full-time employees. Leaders who make clear that consultants are working to help staff members meet common goals, and not supplant staff, can go a long way in setting a positive tone. Great clients also understand that spending a reasonable amount of time on the front end to help consultants learn their business is a smart investment. They also acknowledge when a project’s parameters have changed, adjusting contracts and expectations accordingly. Finally, reasonable clients understand that minor setbacks occasionally occur and do not overact when

they do. Likewise, great consultants share their expertise in an open and professionally respectful manner so employees can successfully maintain or expand the consultant’s contributions after the contract ends. Weak consultants seek to become virtual staff members by hoarding expertise in the hopes of continuously extending their contracts. Take time to get it right Once you’ve selected a partner, communicated your expectations, gotten your consultants onboarded and defined who has responsibility for keeping everyone in the loop, consider these tips to help ensure overall project success: • Clearly define — in writing — what’s in and what’s out of the project. • When project additions crop up, expect give-and-take: add more time to the deadline, along with reasonable budget adjustments, or get ready to pick what you will exchange for the new additions. • Define key milestones to keep the project or engagement moving smoothly ahead and on schedule. The bottom line Finding a great vendor is like winning the lottery: what really matters is how you manage your good fortune. Many lottery winners squander their new-found riches within a few short years, leaving themselves worse off than before they won. Smart winners, however, nurture their fortune and cultivate it for the long-term. Likewise, when top-notch consultants are treated as trusted and valued partners, they will practically walk through fire to deliver results you’re proud to own. When this happens, consulting relationships may continue to serve both parties for years to come.

“When top-notch consultants are treated as trusted and valued partners, they will practically walk through fire to deliver results you’re proud to own.” Tom Salonek, Intertech

Tom Salonek is founder and CEO the software consultancy Intertech and author of “The 100: Building Blocks for Business Leadership”: 651.288.7000; tsalonek@intertech.com; www.intertech.com.

UPSIZE MARCH • APRIL 2018

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CUSTOM APPLICATION DEVELOPMENT A finished project isn’t the end. It’s the beginning of a better team building smarter technology. With our unique consulting and training methodology, Intertech has been helping business grow with strategic, custom application development since 1991.

www.intertech.com

Build

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Discover your value in the capital arena

Sell

Invest

Moving you one step closer to success Rick Brimacomb empowers business leaders in refining strategies, assembling resources and securing funding.

In partnership with

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MARCH • APRIL 2018 UPSIZE

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franchising

BUSINESS BUILDERS

Determining the viability of franchising your business by Charles Modell

TIPS 1. Franchisors must have a “secret sauce” that franchisees cannot live without to ensure they stay with the system. 2. Franchisees should not be the testing centers for your concept. The likelihood that they follow your system increases if you can show them a successful prototype. 3. Put your standards and procedures in writing so franchisees know what they need to do to improve their chances for success. 4. Have a trademark attorney search for other users of your business name. Assuming no conflicts, register your trademark with the U.S. Patent and Trademark Office. 5. Make sure you follow laws regarding disclosure documents to prevent problems registering when you are ready to do so.

UPSIZE MARCH • APRIL 2018

MANY SUCCESSFUL storefront business owners receive inquiries about selling a franchise to someone wanting to operate a similar business across town or in another city. There are many success stories in franchising. Some Minnesota franchise companies, like Dairy Queen and National Car Rental, have been around for decades. Others, like Buffalo Wild Wings, grew from zero to several hundred in just a few years. Anytime Fitness became a worldwide brand with more than 3,000 locations in 15 years. Should you franchise your business? Franchising is not for everyone. Ask yourself the following questions before deciding to franchise your business. If the answer is “no” to any question, you should think twice about embarking on a franchise program. 1. Can your business be replicated? While your current business may be successful, can others succeed in that business? If you are successful primarily because of your personality, a unique set of skills, or a unique location, the answer is probably “no.” 2. Is there enough profit in the business? As interesting or exciting as your business might be, people go into business to make money, or at least earn a living. If there is not enough profit in the business for your franchisees to pay you a royalty that justifies you getting into the franchise business, and for them to earn a decent living and repay their initial investment, you should not be franchising. 3. Will your franchisees need

you two years from now? Once you have taught your business to someone, why will they keep paying you royalties? Having a well-written binding agreement is a start, but to be a successful franchise, you need something that franchisees cannot live without — a “secret sauce” — that keeps them in the system. For large companies, the secret sauce may be a multimillion-dollar monthly advertising budget or nationwide customer loyalty program that locks customers into the system. For smaller businesses, the answer often starts with a catchy name, but once the franchisee has built up its own customers, you need something more. Some franchisors have unique suppliers available to their franchisees or supplier discounts that exceed the royalty paid by franchisees. Others have a strong and loyal customer base, built through extensive public relations and social media. For companies in the food business, the answer might literally be a secret sauce that makes their menu items unique. Before you embark on a franchise program, be certain you have a “secret sauce” that will keep franchisees loyal to the system after they think they know it all. 4. Do you have a successful prototype? Your franchisees should not be the testing centers for your concept. Although there is no rule that requires it, the likelihood that your franchisees will follow your system improve dramatically when you can show them a successful prototype.

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Chuck Modell cmodell@larkinhoffman.com

• 2018 Minneapolis Franchise Lawyer of the Year, U.S. News® and BestLawyers® • Ninth person to be recognized with lifetime achievement award by American Bar Association Franchise Forum • Nationally recognized in franchising by Chambers USA® since 2008

Joe Fittante jfittante@larkinhoffman.com

• Past Chair, American Bar Association Franchise Forum • 20 years of experience in franchise law • Nationally recognized in franchising by Chambers USA® since 2009

FRANCHISING YOUR BUSINESS TAKES EXPERIENCE – BORROW SOME FROM US larkinhoffman.com • 952.835.3800 • @larkinlawfirm

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MARCH • APRIL 2018 UPSIZE

Steps to Take to Franchise Your Business. Assuming you answered “yes” to all the above questions, your business could be successful as a franchise. Here are the next steps you should take to ready your business for franchising. 1. Protect your name — Have a trademark attorney run a trademark search to determine if there are other users of your business’ name, and if there are, whether they have senior rights that will prevent you from expanding under that name. If the search uncovers no conflicts, register your trademark with the United States Patent and Trademark Office. You can offer franchises before the trademark has achieved registration, but you should begin the process immediately because it can take 15 months or more to obtain the registration. 2. Start creating manuals for your business — You need to systematize your operations, but you also need to put your standards and procedures in writing. One prominent multi-unit franchisee referred to the manual as the “coloring book” that he gives to his employees. Your franchisees should be successful as long as they “color within the lines,” but you need to draw the lines for them. 3. Solidify your relationships with vendors — You likely have unique relationships with vendors, whether they are product vendors for retail stores, ingredient vendors for a food-related business, or equipment vendors. Can these vendors service multiple franchisees in multiple markets? If not, think about how franchisees in other markets will obtain the benefits that you purport to offer them. If your vendors can handle

this additional business, lock down your sources of supply with long-term contracts. 4. Raise money — It takes less capital to help 50 people open 50 businesses than it does to open 50 businesses yourself. However, it still takes significant capital to train and assist 50 franchisees. It also takes time and money to structure your franchise offering and to sell franchises. Funding these initial costs from your current cash flow can be difficult and may put you in arrears with your suppliers and vendors. 5. Comply with franchise laws — Federal law requires you to prepare and deliver to prospective franchisees an extensive disclosure document before they pay you any money or sign any agreements with you. Minnesota and a dozen other states have laws requiring you to register that document before offering franchises. If you even advertise the availability of franchises before complying with these laws, you may have trouble registering when you are ready to do so. If you fail to comply with these laws, your franchisees may also have rights against you if they decide they no longer want to be part of your franchise system. Thus, before taking the next step, consult with an attorney well versed in franchise law. Conclusion Franchising is not right for every business. And the road to success in franchising is filled with potholes. However, if you plan ahead, understand the new business you are embarking upon, and have knowledgeable people assisting you, you could be the next success story in franchising.

“The road to success in franchising is filled with potholes. However, if you plan ahead, understand the new business you are embarking upon, and have knowledgeable people assisting you, you could be the next success story in franchising.” Charles Modell, Larkin Hoffman Daly & Lindgren

Charles (Chuck) Modell is an attorney with the Twin Cities law firm Larkin Hoffman Daly & Lindgren: 952.896.3341, cmodell@larkinhoffman.com, www.larkinhoffman.com.

UPSIZE MARCH • APRIL 2018

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human resources

BUSINESS BUILDERS

Negotiating salaries in times of low unemployment by Angela Lurie

TIPS 1. Be as prepared as your interviewee. Study salary ranges before posting the position so you understand the going rates for a job title. 2. While negotiations are about compromise, determine a salary ceiling so you don’t risk wrecking your budget. 3. Consider offering non-recurring incentives, such as a signing bonus. 4. Your top choices could be weighing two or more offers, so you don’t want to risk alienating the candidate with a lowball offer. 5. If you can’t compete on salary alone, consider offering perks that provide work-life balance, such as telecommuting or flexible scheduling.

UPSIZE MARCH • APRIL 2018

MINNESOTA IS A JOB candidate’s market, and it’s been that way for the past few years. In fact, the state’s current 3.1 percent unemployment rate hasn’t been this low since July 2000. Good news for job seekers is bad news for business owners and managers, who know all too well how difficult it is to fill open positions — especially in the growth areas of IT, finance and healthcare. Today’s employers must make an extra effort to woo job candidates and that includes negotiating salaries. But the compensation conversation requires delicate skills. At this stage in the hiring process, you’ve already invested a significant amount of time sifting through applications and interviewing short-listed candidates. You don’t want your top pick to get away, yet you also can’t blow your budget. Meanwhile, job seekers may not settle for the first salary figure you present them. A recent Robert Half survey of U.S. workers found that among respondents in Minneapolis, 26 percent asked for a higher starting salary. Are you prepared to have this conversation with job finalists? If not, you need to be ready. Here are five tips for winning the salary-negotiation game: 1. Be as prepared as your interviewee. Most of your top candidates will have thoroughly looked into your company and its workplace culture. They will also have the most recent compensation ranges for an organization of your size. You should have the same salary data. Before you even post the position, have a good understanding of the going rates for that job title. Use resources such as the Robert Half 2018 Salary Guides to find out what you’re

expected to offer if you want to entice top talent. Our Salary Calculator customizes the results for your Minnesota city. Thorough research into current salaries will help you feel confident that your offer is competitive. 2. Set a ceiling. Negotiations are all about concessions and compromises so that, at the end, both you and your candidate will have gotten most of what they want. At the same time, you need to establish a hard limit so you don’t risk wrecking your budget. To determine what that salary ceiling should be, ask yourself these questions:

• How much financial flexibility

do you have when filling this particular role? In other words: Is your budget strict or can it be stretched a bit? • Is this position relatively easy or difficult to fill? Candidates for niche programming jobs are typically harder to come by than, say, entry-level marketing coordinators. • How will a high salary ceiling affect your team? For example, if you offer 15 percent more than you originally planned, how would that impact existing staff’s merit raises? • What sorts of non-recurring incentives could you offer? For instance, could you offer a signing bonus? 3. Make a strong initial proposal. You may be tempted to lowball the first offer so you’ll have plenty of room to go up, but that

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may not be your best strategy. Why? Your top choice could be weighing two or more offers — a distinct possibility in this hot job market — and you don’t want to risk alienating the candidate with an insulting salary figure. At the same time, you shouldn’t play your best hand right off the bat. Skilled workers are confident. They know what their abilities are worth, so consider starting at around the 75th to 85th percentile of the position’s salary ceiling. That way you capture the candidate’s interest while leaving some space to negotiate. 4. Be candid and firm. Candidates often presume employers have more bargaining room than they actually do. After a round or two of negotiations, be upfront and let them know you simply cannot go any higher. There’s no need to apologize or make excuses for a fair salary. Chances are good that if you’ve gone up from the first number and negotiated in good faith, they’ll accept the compensation package. If they insist on more money than what you can give, it may be time to cut bait and let them go. 5. Sweeten the deal with perks. If yours is a small or midsize business, you likely can’t afford the sky-high salaries that tech giants and multinational corporations offer. But you can compete in other areas. Work-life balance, for example, is a major attraction. Employees are drawn to organizations that allow them to juggle professional and personal responsibilities. Candidates may be willing to accept a slightly smaller paycheck in exchange for greater flexibility. Here are some workplace perks that could help you close the deal:

• Telecommuting. Allow

responsible, self-motivated new hires to work remotely a few days a week. To make the offer even more attractive, reimburse them for the cost of setting up a home office. • Extra paid time off. Throw in a few more vacation days, including time off on their birthday and/or work anniversary. • Flexible scheduling. Allow people to come in early and leave early, or come in late and leave late — whatever works for them, as long as the job gets done. • Alternative scheduling. Whether they use extra hours to pursue hobbies or spend time with the kids, employees appreciate having large chunks of personal time. Let job finalists know you’re open to a 36-hour week, a compressed workweek (four 10-hour days), job sharing or other such arrangements. The beauty of these non-salary benefits is that, in the scheme of things, they don’t cost much money but are extremely attractive to today’s workforce. While not all jobs are appropriate for telecommuting and flextime (such as those in manufacturing, hospitality, childcare or K-12 education), just like retail, more and more jobs are moving away from the brick-and-mortar model to the online sphere. Employers need to adapt or risk not having enough of the workers they need. With Minnesota’s incredibly tight job market, employers need to rethink all aspects of hiring — from smarter branding and recruiting to sweeter compensation packages. Master the art of the salary negotiation and you improve your chances of landing the employees you need to grow your business.

“Master the art of the salary negotiation, and you improve your chances of landing the employees you need to grow your business.” Angela Lurie, Robert Half

Angela Lurie is a Minneapolis-based senior regional vice president at Robert Half International: 612.337.5446; angela.lurie@roberthalf.com; www.roberthalf.com. www.upsizemag.com

MARCH • APRIL 2018 UPSIZE

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management

BUSINESS BUILDERS

It’s spring: Time to breathe life into your business plan by Tom Siders

TIPS 1. Communicate your plan to the team so they know the goals and can shoot for them too. 2. Be willing to adjust the plan if someone has a better idea than you. 3. Don’t set unrealistic goals that will deflate your team in the short- and long-term. 4. Keep it short. Business plans should have fewer goals that are all achievable. 5. Check back with the plan regularly to be accountable and measure results.

UPSIZE MARCH • APRIL 2018

“Setting a goal is not the main thing. It is deciding how you will go about achieving it and staying with that plan.” —Tom Landry, former coach, Dallas Cowboys IF YOU ARE LIKE many closely held businesses, you start the year with a plan. It may just be a budget or financial forecast, or a list of desired accomplishments; it could also be a full annual business plan or an updated long-term strategy document. It may be written or may be just in your mind. Regardless of the format, or the intended use, the majority of plans are thoughtfully created and then completely ignored. The demands of day-to-day business consume you and your grand plan for the year sits idly on the shelf or in a drawer, only to be dusted off and rewritten early next year. Why bother taking the time to create a plan that you never execute? It is not the quality of a business plan that matters, rather it is the execution of it. Studies reveal that companies with poorly designed business plans that are fully executed are more successful than companies with brilliant business plans that are not implemented. In our work with a broad spectrum of clients, across all industries, we find common flaws that lead to the failure to execute on the business plan. Each is discussed below: The Plan is not communicated. Unless you are a one-piece orchestra, you rely on key team members and the plan must be communicated. As an analogy, why is there is a huddle in football? It is not for discussing plans about the weekend. The intent is to call the play and set the snap count. The

players need to know what is expected, especially their responsibilities, when you break huddle and get set at the line of scrimmage. Imagine the for the success of a football play when only the quarterback knows what it is and when the snap is coming. Your plan should also be documented in writing. No conductor can effectively lead an orchestra if the members don’t have the sheet music. So, to breathe life into your business plan, get it down on paper now, and share it with your team. It is spring, and 25 percent of the calendar has already passed. The Plan has no buy-in. The consequences to sharing the written business plan with your team is they may not agree with it. This actually creates an opportunity to collaborate and gain buy in. The business plan with the best odds of execution is the business plan with buy in from your top management team. After all, you do need them to help execute the plan. So, bring your management team into the process and be willing to adjust. It is your business, but you don’t own the market on good ideas. As mentioned above, companies with poorly designed business plans that are fully executed are more successful than companies with brilliant business plans that are not implemented. So, breathe some life into your business plan, now, by sharing the plan with your team and gaining buy-in. The Plan is unrealistic or too complex. An unrealistic business plan is a surefire recipe for disappointment and can lead to future resistance to engage in meaningful business planning. For example, if you have not exceeded 9 percent revenue growth in the past 10

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EXHIBIT 1 MISSION: What business we are in VISION: How we want to be perceived by our customers and the market OBJECTIVES

GOALS

STRATEGIES

MEASURES

Where we’re going, what we’ll do Qualitative

Where we’re going, what we’ll do Quantitative

How we’ll do it & who is responsible Qualitative

How we’ll know we’re there Quantitative

Answer the questions above for each of the categories listed below People • Customers/Clients • Products/Services • Financial • Strategic

years, why would you fool yourself and deflate your team by pushing a goal of 20 percent growth? If your plan sets unrealistic targets and includes no investments to change the status quo, why bother? Every business plan should have some “stretch,” but also must include time or money for your team to achieve those stretch goals. Another failure of business planning is excessive complexity. Your business plan should not be as lengthy as one of the Bible’s gospels. A good business plan should have fewer goals, and achievable ones. We tell our clients that their objectives for the year should be fewer in number and impactful, and team members should be able to recite them every morning while looking in the mirror to shave or apply make-up. The Plan lacks metrics to measure success. Did you ever play HORSE on a playground basketball court? If you did, you knew who won because you kept score. In business planning, if there are no measurable goals, how do you or your team know if you’ve achieved success? Putting a goal in your plan to improve market share, without a specific target, the necessary investments to achieve it or a means to measure it, makes it a totally useless goal. Quite like setting a goal to lose weight, but the not the number of pounds or the changes in diet and

exercise necessary to measure success. So, breathe some life into your business plan by dusting it off and adding metrics, so you can monitor progress. The Plan lacks accountability Speaking of monitoring, this may be the biggest downfall of plan execution. You plan your work, but you don’t work your plan. If you haven’t looked at your plan since it was created three months ago and conducted team meetings hold each accountable, you have wasted valuable time. A well-crafted plan focuses on four or five specific areas and includes an objective (what), accompanied by goals (quantitative), strategies (how and who), and measurements (defining success). Those areas of focus should include customers, employees, products/services and financial. A fifth objective may be this year’s progress toward a multi-year long term strategic initiative. (See exhibit 1). By using this format, or something similar, and showing the discipline to devote quality time monitoring progress, as a team, each month, can allow your business plan to become an institutionalized proven process, rather than a dusty document in a desk drawer. It’s spring, so take some time now to breathe some life into your business plan.

“Your plan should also be documented in writing. No conductor can effectively lead an orchestra if the members don’t have the sheet music. So, to breathe life into your business plan, get it down on paper now, and share it with your team.” Tom Siders, L. Harris Partners

Tom Siders is a partner with L. Harris Partners: 952.944.3303; tom.siders@lharrispartners.com; www.lharrispartners.com.

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MARCH • APRIL 2018 UPSIZE

SOCIAL MEDIA MANIA Making sure your online efforts work for and not against you

Joel Eshelman, founder of Apex Personal Training, spends time on social media every day

oel Eshelman, founder of Apex Personal Training, has been in the fitness industry for more than a decade. He founded his company in 2011 and now spends much of his days overseeing personalized group training sessions, one-on-one fitness training and nutrition counseling. But he finds time to take care of himself and his business. Part of that is a daily commitment to overseeing his social media presence. “I think people who don’t make social media a huge part of their business are completely short-sighted,” he says. “It’s pay to play now, but this is a free resource, especially for entrepreneurs who are just starting out so they can get their message out there, if they understand how to play the game.”

Between geo-tracking and tracking specific hashtags, Eshelman says he can post a discount offer and track how many people have looked at the promotion. “Social media strategy used to be just post a lot and hopefully it works,” he says. “You have to be strategic about how you post.” Eshelman says he is working on organizing and planning content so that he is three months ahead with relevant content strategically spaced for maximum effect. He says people should “take the time to create a vision around the strategy,” he says. “Just like they would if it were TV or radio.” As much as anything, whether you have a team of marketing and strategy people helping or you are coming up with a low-budget plan on your own, the most important thing is Just do it having a presence. “If you don’t know how to do it, hire someone who does,” Eshelman does some of his company’s social media work he says. “I’d rather throw a bunch of stuff at a wall doing himself. He partners with a local company, Skol Marketing, to something, because you are going to create some noise. The help manage some other accounts and to help keep him near worst thing you could do is do nothing at all.” the top with respect to searches conducted on Google. “I can’t do it all,” he says. He says in order to maximize one’s social media presence, Get some help it’s important that companies understand how each medium’s One of the people who helps Eshelman with his social mealgorithms work and how they can target niche audiences us- dia planning is Ben Theis, director and owner of Skol Maring various geo-tracking strategies. It’s also important to post keting. The biggest mistakes he sees companies make with consistently and to make the content relevant to the audience. respect to social media is that they don’t post enough and

by Andrew Tellijohn

PHOTOGRAPHS BY TOM DUNN

UPSIZE MARCH • APRIL 2018

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MARCH â&#x20AC;¢ APRIL 2018 UPSIZE

COVER STORY when they do they are always selling. There are different guidelines to follow, depending on the industry, when it comes to frequency, but business should not immediately jump into sales mode. “The last thing people want when they go on social media is just be sold. We’re sold non-stop here,” he says. “If all they do is go online and your organic posts all say ‘buy this from us, buy this from us,’ it can be kind of a turnoff. That doesn’t mean you shouldn’t ask. But you have to do it in as strategic manner and you have to pick your moments.” Social media also involves communicating with people, creating dialogues and showing yourself to be an industry expert or a resource. “Then when people need you, or if they find one of those pieces convincing enough, then they’ll be able to interact,” he says.

Other mistakes?

Adam Dince teaches social media at several universities and is director of digital experience at Collegis Education. He agrees that companies need to back off on the selling at first and try to establish relationships with the people to whom they are marketing. They often assume they have an audience willing and excited to hear from them, but often just the opposite is true. “A lot of businesses get in Facebook or Twitter and launch a page or group and they start putting out promotions and discounts,” he says. “The reality of it is people are so bombarded with marketing messages nonstop. The phone, the TV, the radio, everywhere you look there is a

CONTACT THE EXPERTS ADAM DINCE is director of digital experience at Collegis Education and teaches social media at several universities: adamdince@gmail.com; www.adamdince.com. JOEL ESHELMAN is founder of Apex Personal Training: 612.405.3002; joel@trainwithapex.com; www.trainwithapex.com. TANYA KORPI MACLEOD is founder and CEO of Macleod & Co.: 612.315.5200; tanya@macleodandco.com; www.macleodandco.com.

marketing message. It’s gotten to the point where people have gotten so frustrated with it.” It can be frustrating to small businesses just entering the social media world, but people don’t respond the same way to online promotions as they do bricks-and-mortar, Dince adds. Instead, Dince says, small businesses should spend some time being present, participating in conversations. Follow people, listen and respond. Eventually, he says, you’ll earn the right to promote to the groups. “It’s actually easier for small-business owners to do than it is for big enterprise companies like General Mills. Smallbusiness owners are the face of their brand. They’re real people who are able to talk and build relationships online.” Another mistake businesses make is treating their online presence differently from brick-and-mortar stores. Promotions online are fine but give people a sense of your personality and a reason to stay in touch. Once you build the community, Dince says, then you probably are safe going in for a sale. “Then you are romancing your customer in between purchases,” he says. Running advertisements online without learning the nuances of targeting is another downfall, as is not collecting email addresses for those who have visited their sites. Facebook, Instagram and Twitter all give you a way to send advertisements directly to those people. Facebook takes your email addresses and scours the net for similar demographics. “Social and email marketing go hand-in-hand,” he says. Finally, social media is just one marketing channel, Dince says. Business owners must realize it can be valuable, but it’s not the end-all-be-all. “It can be okay, but it is not going to be a top performer,” he says. “Social media is a great place to keep people aware, to earn media, if you will. When they leverage other channels together and they are building their brand together through email marketing and search marketing, and they are also doing social, when they are approaching digital holistically, they tend to find a lot more success that way than if they are just approaching a channel singularly.

How to do it right?

One vital factor in the success of a social media program is putting the right person in charge. Tanya Korpi Macleod, CEO of Macleod & Co., says companies often assume social BEN THEIS is director and owner of Skol Marketing: 612.787.7565; media is a thing for young people. info@skolmarketing.com; “So, they put their proverbial nephew in charge of things,” www.skolmarketing.com. she says. “Social media is social — it’s dealing with people. You don’t delegate that to someone who is, frankly, immaALLISON WASZ is agency director at Macleod & Co.: ture and doesn’t have the people skills and nurturing capac612.315.5206; allison@macleodandco.com; ity for your small business.” www.macleodandco.com. 20

UPSIZE MARCH • APRIL 2018

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COVER STORY

“This is a free resource, especially for entrepreneurs who are just starting out so they can get their message out there, if they understand how to play the game.” — Joel Eshelman, Apex Personal Training

Companies also need to recognize the need to proceed with caution and a plan. “If there is no strategy behind it you’re going to get yourself in trouble big time by having the token millennial in your life be in charge of managing it,” says Allison Wasz, agency director at Macleod & Co. There’s almost a crisis communications component to social media, she adds. “Once it’s out there you can’t take it back,” Wasz says. “You are putting yourself at risk from that PR standpoint and it can be very expensive to try and fix that.” Hashtags are popular right now, but they can be an example, Macleod says, of ideas gone horribly wrong. One large fast food chain, for example, posted a hashtag asking people to post about their memories of eating there, but it didn’t turn out as anticipated. “You throw those things out into the Internet, into the wild and people just go nuts with them,” she says. “People started piling on about finding rat droppings in French fries and stuff.” Korpi Macleod and Wasz aren’t suggesting, however, that companies stay away from social media. They just recommend having a strategy in mind before embarking on that road. “To have a strategy behind your social media is very similar to what you should have as a strategy behind your brand and who it is you and your company are to your prospects and your audience,” Macleod says. “Who are you? Who do you want to be interacting with? What do you want them to think of you? It’s those basic questions that inform the type of content, how often you post, how you want to interact with your audience.” And your efforts should be targeted, Wasz adds. She cited a live question-and-answer session on Facebook where,

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Sentera, maker of drones and supporting software, had audience members send questions for engineers to answer in real time. “In their social strategy, there’s a fair amount of education,” she says. “We sold drones out of that because people were connecting on the human element.” Figure out what you want to do and do it in a targeted manner. “You are a guest in somebody’s feed. If somebody invites you in you need to be providing them value, whether that value is a laugh or a smile or a fact they can repeat” she says. “The strategy comes in with what is our play here. Because if you try to be everything to everybody there is no traction.”

So, what is the right mix?

Typically, Theis says, companies will use a mix of outlets — some combination of Facebook, LinkedIn, Instagram and maybe Twitter. Google Plus and Snapchat sometimes factor in. New outlets pop up often. The mix depends on the demographics users are trying to reach. Facebook, he says, targets a rapidly aging demographic. Parents and grandparents are comfortable using it. Conversely, the number one pure social media outlet for millennials is Instagram. “Usually it’s part of an overall strategy,” Theis says. Options for digital advertising include using websites, search engine optimization, pay-per-click advertising with Google or Bing, and then social media management. “You can do any of those by themselves,” he says. “But they kind of cohesively go together, they feed off one another.”

MARCH • APRIL 2018 UPSIZE

WORKSHOP: Managing rapid growth

Managing rapid growth Keeping your fast-moving business on track

By Andrew Tellijohn

Photographs by Andrew Tellijohn

Managing a rapidly growing company is the dream of many an entrepreneur, but that’s not to say that it’s easy and without challenges. Whether it’s struggling through cash flow ups-and-downs or finding ways to maintain the company culture established when times were slower, leaders in such organizations often struggle to deal with those issues while keeping the business on track. Nurturing a supportive and collegial workplace, keeping an eye on the future while juggling the present and ensuring that human resources demands are covered were among the talking points at a workshop, cosponsored by Rick Brimacomb’s Club E and Upsize magazine at the Minneapolis Club in January, where four business professionals shared lessons they learned while either growing their own businesses or helping others do the same.

Supportive employee culture

When John Long was CEO of Avionté and the company was in growth mode, it made the Inc. 5000 growth list six consecutive years, but he says he’s more proud of the company’s “Best Places to Work” awards. “That is such a fun time when you are in the growth stage,” he says. “I encourage you to enjoy it. Part of what we did on the culture side is just embrace the speed. It’s fast.” As part of doing that, he says, the company adapted a “fail fast” mentality where employees were encouraged to make quick decisions they thought were in the best interest of the business and its clients. Sometimes they didn’t work out, but Long, now co-chairman, says “a lot of that is where you build trust with each other.” “If you get your team to start thinking in solutions mode, not just saying ‘hey, here’s the issue,’” he says, “If they are coming to you and saying ‘this is what I want to try,’ that’s great. If it doesn’t work, great. Support them. Those are 22

UPSIZE MARCH • APRIL 2018

Rick Brimacomb

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WORKSHOP: Managing rapid growth

“The business is bigger than you. It’s not going to be just you that is going to get you to $150 million or whatever. Empowering your people is absolutely imperative.” — John Long, Avionté

the keys to that culture side. We had energized, enthused people.” Business owners and advisers agree that maintaining a positive workplace for employees and maintaining as much of the existing culture through rapid growth times is vital toward maintaining success. Micah Thor, president of Tech Guru, says the company’s executive team was stressed out about how rapidly the business was changing in its first years of rapid growth. He and his business partner came across the Simon Sinek book “Start with the Why: How great leaders inspire everyone to take action.” From it, Tech Guru established a new tagline: “the caring technology company.” “We looked at ways we could create a culture of caring alongside the growth,” Thor says. “No matter what happens, our primary concern is the team. We are going to take care of the employees and we are going to take care of the clients.” Thor says once they made that commitment, Tech Guru’s started growing even faster. “In retrospect, it seems like a small shift for us to make but just being really deliberate about that and sticking to it has made a world of difference for us,” Thor says.

Human resources need attention upfront

And keeping employees happy, especially in times of low unemployment, is vital, says Kristen Baas, a certified business performance adviser at human resources consultancy Insperity. It’s important to create and maintain a culture where employees love their jobs and want to stay, she says, because they’re likely going to have opportunities elsewhere. To that end, one hiring mistake growth companies often make is bringing on family members or friends, many of whom sound just like the owner. “They talk like you, they’re your friend, they agree with you, you are hiring someone just like you, which is not good if you want to have somebody who has a different idea or an opposing opinion who can offer other ideas on where to take your business,” Baas says. Insperity works with a wide range of businesses. Emerging companies, says Baas, often fail to acknowledge the evolving human resources needs that arise with rapid growth. An outside voice can often lend an unbiased perspective that will protect the company in the long run. “Using outside resources that are not reading their

“If your business is not the one who Google is serving up to answer that question, your sales person is not going to get to answer that question.” — Brendon Dennewill, Denamico

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MARCH • APRIL 2018 UPSIZE

WORKSHOP: Managing rapid growth “They talk like you, they’re your friend, they agree with you, you are hiring someone just like you, which is not good if you want to have somebody who has a different idea or an opposing opinion who can offer other ideas on where to take your business.” — Kristen Baas, Insperity

own headlines or drinking their own Kool-Aid, you have someone else who is looking at it from a professional eye,” she says. Brendon Dennewill, the co-founder and CEO of sales and marketing consultancy Denamico, agrees with the importance of establishing a professional HR foundation. He says emerging companies often struggle with putting together a proven sales process, in part because they struggle to hire and onboard new sales and marketing employees “which is an HR deal,” he says. “The challenges we’ve typically seen in this drowning versus starving challenge that businesses have is it’s very much around not having a proper sales process and not having a proper onboarding process for sales and marketing people.”

Inexpensive ideas build relationships, drive growth

While pay, benefits and job satisfaction are important factors in keeping employees happy, panelists say there are a number of inexpensive perks that can help with retention. Thor’s business partner at Tech Guru toured Google, and upon his return, he declared that going forward there would be food in the office. It costs a few hundred dollars a week for pizzas, lunch meat and maybe some healthy snacks, but the return comes in the form of employees staying in the office over lunch and connecting on a personal level. “It’s done two things — its boosted productivity because a lot of times they’ll eat at their desks, but it’s also created this really great culture in the office in that people are spending more time with each other on breaks,” Thor says. “It’s turned into this really cool cultural thing but also given us a major productivity boost.” Long agrees with having food on premises, and adds that his company also provides employees with about 24

UPSIZE MARCH • APRIL 2018

$75 so each of them could pick a computer screen or keyboard that fits their workspace needs. “We got pretty good buzz on that,” he says. Another option for building relationships between employees is establishing mentoring programs, Baas says. They require a bit of time, but they don’t cost much money and they can be tailored in a number of ways, adds Baas. “People have made new friendships, they care more about their business,” she says. “It’s one of those things that help them when they come across the door every day.” At Denamico, Dennewill says when sales and marketing staff get a question from a prospective customer, they are encouraged to write up or record an answer and post it to the company’s website. “It’s so simple, but so effective and powerful,” he says. That online presence, he adds, is vital to a company’s ongoing growth. “Some 20 years ago, if a consumer had a question, they would call a sales person who would help them through the process.” Today, with Google and other search engines, “that customer is already 70 to 90 percent of the way through making their decision before they have ever spoken to the sales person,” he says. “If your business is not the one who Google is serving up to answer that question, your sales person is not going to get to answer that question.”

Keep some perspective

While there are challenges, Long reminds business owners to keep the long view. If they are showing substantial growth over a period of time, they are doing something right — even if they are experiencing struggles. “I would encourage you to keep that front and center in your mind,” Long says. “What are you doing that is right? That flows right to your customers. You keep your customers happy, you are not losing them. That is going to end up a long-term benefit. He acknowledges that when Avionté was growing, he

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WORKSHOP: Managing rapid growth

“Stay in tune with how people are doing. If you can create an environment where you are able to help people, they’ll help you back.” — Micah Thor, Tech Guru

got wrapped up in the short-term while forgetting to think about the medium-term. “I focused too much on the speed of what was today as opposed to … having your head up a little bit more,” he says, adding that having a long-term strategy, an understanding of your mission and knowing the company’s key performance indicators are important. “That’s where KPIs come into play,” he says. “If you can’t answer the question ‘what are the top five KPIs that you look at right now that actually do something,’ you’ve lost.”

Closing thoughts

When asked by Brimacomb for closing thoughts, Baas reinforced the benefits of addressing and investing in human resources upfront before problems arise rather than waiting until a reputation-damaging event occurs. “If you do that well on the front end, your odds of continuing the growth and success of your company are so much greater,” she says. Dennewill says business owners need to be cognizant

CONTACT THE EXPERTS JOHN LONG is founder and co-chair of Avionté: 651.556.2121; john.long@avionte.com; www.avionte.com. BRENDON DENNEWILL is the co-founder and CEO of Denamico: 612.605.3800; brendon.dennewill@denamico.com; www.denamico.com. KRISTEN BAAS is a certified business performance adviser at Insperity: 952.960.5360; kristen.baas@insperity.com; www.insperity.com.

of their online reputations and monitor reviews of their work or product. “Make sure you are getting all the good ones and you are addressing the bad ones,” he says. “Because that can really undo a lot of the good work you do. … If you aren’t engaging with your audience, that’s kind of where your whole online reputation can unravel pretty quickly.” On the negative side, Long says don’t get focused on one aspect of the business. Fast-growth company owners often latch on to the area in which they have a strength. They need to remain nimble and make sure they focus on all KPIs. “The more pressure that comes to you, the more likely you are going to be to get myopic on a certain area,” he says. “The faster that goes, the rest of it goes south.” On the positive side, he emphasized again that fast growth companies are doing something right and they need to embrace that and empower their workers. “The business is bigger than you,” he says. “It’s not going to be just you that is going to get you to $150 million or whatever. Empowering your people is absolutely imperative.” And so is treating them well, adds Thor. It’s easy to get focused on financials and forget to take are of “the people who actually make the thing work,” he says. Remember, they have challenges and problems outside work that you may be able to help with. “There is someone in your company right now who has something going on in their life that you can have a positive impact on,” he says, adding that if you can help them deal with a stressful situation, you may be repaid many times over. “Stay in tune with how people are doing. If you can create an environment where you are able to help people, they’ll help you back.”

MICAH THOR is president of Tech Guru: micah@techguruit.com; www.techguruit.com.

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MARCH • APRIL 2018 UPSIZE

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Lake Calhoun Center, Suite 10 3033 Excelsior Boulevard • Mpls, MN 55416 612/824-2100 • www.ackerberg.com Stuart Ackerberg • stuart@ackerberg.com

Thinking about buying or selling a business? Sunbelt is the world’s largest seller of private companies. We work with business owners to help them understand the current value of their business and how to maximize their net proceeds at the time of sale. Sunbelt will provide business owners with a completely confidential, no-obligation value range. www.sunbeltmidwest.com.

The Ackerberg Group creates vibrant neighborhoods in Minneapolis’ urban core by combining astute development, renovation, investment, management and brokerage services with passion for social and ecological sustainability and the arts. Since 1964, Ackerberg has created office, industrial, retail, residential and mixed-use projects that have transformed neighborhoods through the development of long-standing relationships with neighbors and tenants alike.

Founded in 1972, Risdall Marketing Group is the sixth largest and seventh oldest ad agency in Minnesota. With more Web Marketing Awards than any other agency on the planet in the last four years (not to mention the two Clios we just won), we are the world’s leading interactive agency, as well as the Minnesota leader in industrial, high technology, medical technology and business-tobusiness advertising.

UPSIZE MARCH • APRIL 2018

ADVERTISING SECTION

www.upsizemag.com

UPSIZE RESOURCE DIRECTORY computer consulting Intertech

law firm Winthrop & Weinstine, P.A.

SUCCESSION PLANNING Lommen Abdo

1575 Thomas Center Drive • Eagan, MN 55122 www.intertech.com • Ryan McCabe at rmccabe@intertech.com or 651.288.7001

Capella Tower, Suite 3500 225 S. Sixth St. • Minneapolis, MN 55402 Tel: 612.604.6400 • www.winthrop.com

Intertech consultants are leading software developers who focus on more than simply “heads down” programming. We provide comprehensive software services – consulting, project delivery and mentoring – for all leading technologies, most notably Java, .NET and mobile. Intertech consultants are highly experienced and among the IT industry’s top contributors at conferences, technology journals and user groups.

Winthrop & Weinstine has a long tradition of representing entrepreneurs and rapidly growing private and public companies across the Upper Midwest and the United States. Our mission is to help fuel the growth of great companies. We are committed to providing outstanding service, sound advice and strong execution. We offer flexible fee arrangements including fixed fees, “success” fees, hourly fees, blended fee arrangements and performance-based agreements.

1000 International Centre, 920 Second Avenue South Minneapolis, MN 55402 612-339-8131 | 800-752-4297 www.lommen.com | Contact: Cameron Kelly

insurance O’Rourke Agency, Inc.

mailing services Braemar Mailing Service Inc.

venture capital Brimacomb + Associates

41 North 10th Avenue Hopkins, MN 55343 952-932-7219 (phone) 952-932-2820 (fax) www.orourkeagency.com Tim O’Rourke

7379 Washington Ave S • Edina, MN 55439-2417 tel: 952-767-0300 fax: 952-767-0345 www.braemarmailing.com cu@braemarmailing.com

TCF Tower, Suite #1600, 121 South Eighth St., Minneapolis, MN 55402 612-803-3169 * www.brimacomb.com Rick Brimacomb, rick@brimacomb.com Chief Strategy and Relationship Officer

Our agency has provided personal and business insurance services for the past 30 years. We proudly represent a number of outstanding insurance carriers, including Chubb, Metropolitan, Progressive, Travelers and Kemper. Call us for all your insurance needs!

Since 1985 business mailers who value personal service and meticulous attention to detail have found one company rich in both. We are postal experts and list brokers who offer a full service lettershop and data management services. Your mailing, unique or ordinary, in large quantities or small, receives Braemar-style attention to detail. We are proud of the work we do and the customer service we provide.

it managed services Tech Guru — The Caring Technology Company

SBA LENDER Highland Bank

612.235.4895 - www.techguru.mn

Rick Wall, CEO | 952.858.4753 Jay Hammond, President | 952.858.4810 952-858-4888 | highlandbanks.com

Tech Guru’s Caring Technology Services offering is built for businesses and non-profits with 25-250 employees that want consistent uptime. By being responsive, collaborative, and security-minded, Tech Guru helps organizations maximize returns on IT investments, minimize technology risk, and achieve their strategic visions.

You owe it to yourself, your family, your co–owners and your employees to have a business succession plan in place in the event of incapacity or death. Every business and every family is unique and your succession plan needs to fit your goals for your business and your family. Contact us to design a plan that meets your goals.

Results-oriented advisory firm with unparalleled access to executive suites and financing sources. Emerging companies and established professional services firms rely on our depth of knowledge and deep-network connections to grow client lists, assemble project resources and secure new sources of funding.

LAW FIRM Lommen Abdo

STRATEGY & SUCCESSION L. Harris Partners

1000 International Centre, 920 Second Avenue South Minneapolis, MN 55402 612-339-8131 | 800-752-4297 www.lommen.com | Contact: Jesse Beier

6900 Shady Oak Road, Suite 210 Eden Prairie, MN 55344 952-944-3303 www.lharrispartners.com

Looking for a business lawyer who speaks plain English and not legalese? Contact Lommen Abdo where we focus on small, medium-sized, family and closely held businesses. Our attorneys operate like your outside general counsel – providing you effective legal advice and sound business strategies. We are upfront about our costs and will work with you to budget legal expenses.

We help business owners develop and implement strategies that improve financial results. Our holistic approach to consulting involves strengthening value drivers; this leads to enhanced enterprise value, minimized taxes, and maximized net proceeds upon transition out of the business.

www.upsizemag.com

ADVERTISING SECTION

MARCH • APRIL 2018 UPSIZE

catching up by Andrew Tellijohn

Triumph over tragedy:

AgVenture Feed & Seed owner plowing forward after tough start TIPS 1. Take your time and be patient. Sometimes you have to go through seasons feeling very uncomfortable in order to reach break-even numbers of positive cash flow. There are times we become so impatient that we don’t trust the process. 2. Rely on your network. Gather resources and good people around you to create a dynamic business rather than trying to go alone. 3. Remember to think about how you can best serve your customers. That’s a question AgVenture asks itself every day. 4. Run your business as though it is for sale every day. 5. Life is not just about work. It’s about other things too. It’s undetermined what the future may be. 28

UPSIZE MARCH • APRIL 2018

andy Hansen-Wolff grew up on a farm, but she was, by her own admission, not prepared when she took over AgVenture Feed & Seed in 2003, after her first husband passed away at 33 from cancer. She had been working in insurance sales, but she inherited a struggling company that had sales in the low seven figures, but debt that put it on the brink of bankruptcy. Early on, she spoke with her accountant, who gave her the green light to spend a short period of time lamenting the company’s struggles, then told her it was time to move forward, thinking of nothing more than what it was going to take to turn around the provider of feed and other agricultural services to farms across much of Central Minnesota. They then continued monthly meetings she now describes as agonizing as they worked through what it would take to turn the business around. “That was a pivotal meeting,” she says. By the time Hansen-Wolff participated in the Upsize Growth Challenge in 2012, AgVenture’s picture had improved immensely. And, while she doesn’t reveal financials, she indicated that for the last several years AgVenture has regularly experienced double-digit annual growth, with a few years of more significant increases due to winning one-off contracts that provided spikes.

The business has changed significantly over the years, she says. The industry is struggling through the fourth year of depressed milk prices, so it’s frequently in the midst of looking for new solutions. “We’ve expanded our vendor networks to provide a wider range of product availability,” she says. “That’s a big one — getting more professionals on our team and more access to professionals. That’s something that is ongoing.” The company also has been paying attention to consumer-driven decisions in agribusiness. Consumers, she says, are becoming more savvy and demanding to know where their food comes from. That’s a positive thing and the industry is having to respond accordingly by bringing new products to market or working more closely with consumers. “It’s a whole new approach to traditional agribusiness. We see that a lot on the specialty seed side,” Hansen-Wolff says. So far it has primarily affected hobby farms, but likely it will trickle into mainstream farming going forward, as well, she says. “It has presented new products to bring to market,” she says. “I always believe in collaboration. Instead of working against what consumers are asking for, what can we do to respond and how does that make for a collaborative effort. What we do traditionwww.upsizemag.com

AgVenture Feed & Seed Inc. Description: Provider of feed, supplies and animal management to farms in central Minnesota Owner: Sandy Hansen-Wolff Headquarters: Watkins, MN Revenue: Undisclosed Web: www.agventurefeeds.com

ally will keep being good for this area — this is good beef and dairy country. However, this new market is interesting and one we can easily respond to with products and services that make our business more dynamic.” Having been through struggles herself, she empathizes with the challenges faced by farmers right now. She’s seen a number exit the industry. “If you have any level of compassion, we feel it for them and with them, as well,” she says. AgVenture has four full-time employees and four part-time employees. It also works with several contract workers, a strategy born of necessity in the early years when the company was struggling. She’s not averse to hiring when it makes sense, but she continues to work with contractors when possible because it worked out well during the turnaround. That’s just one of the lessons

she’s learned in steering AgVenture to solid and steady ground. “You kind of take what’s dealt sometimes,” she says. “Sometimes when you are put in a situation the best you can do is just survive day by day. I really didn’t feel like I had a choice but to figure out a path. The situation we were in kind of presented itself. It was either figure it out or be left with a lot of debt if it didn’t work. Both were stressful options. I chose to stay in it and see if I could make a go of it.” Beyond AgVenture, Hansen-Wolff has built a small-but-growing executive coaching and motivational speaking side business. It started out with her being invited to speak as a cancer survivor and has grown into talking about a variety of business issues in leadership and entrepreneurial circles. She gives keynotes or leads workshops around five to 10 times a year, adds in a couple of pro bono presentations and facilitates a peer group discussion every month. She also remarried four years ago. So, Hansen-Wolff is in a pretty good place — though life isn’t without its stressors. “Every owner, no matter how good or bad things are going, has those sleepless nights,” she says, “where you are concerned about how do you make the next big thing happen to stay relevant or to stay in business for the next five years.”

“You kind of take what’s dealt sometimes. Sometimes when you are put in a situation, the best you can do is just survive day by day.” — SANDY HANSEN-WOLFF Owner of AgVenture Feed & Seed

Sandy Hansen-Wolff is owner of AgVenture Feed & Seed Inc. and SandyHansenWolff.com: 320.241.9910 sandy@sandyhansenwolff.com; www.sandyhansenwolff.com. www.upsizemag.com

APRIL • MARCH 2018 UPSIZE

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