Upsize Minnesota September/October 2021 by Upsize Minnesota

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DOES IT STAY?

COVID-19 drove significant technology enhancements. Are they here to stay?

ALSO:

Cybersecurity suggestions from the experts

Robotics-driven production line mitigates labor challenges at Citrus Systems Tom Boehland, president

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Kam Talebi Owner, Brit’s Pub, Kaskaid Hospitality

Jeff Wessels President/COO, Crown Bank

“What is great about Crown is that I truly consider them a partner in my business.”

A few months after purchasing Brit’s they were forced to shut down due to the pandemic. Through the difficult months that followed, Crown Bank was there, thinking outside the box to support their client and ensure they came back stronger than ever. If you have a business eager to grow, give us a call. See more stories like this at crown-bank.com. What can we make possible for your business? EDINA • 6600 FRANCE AVENUE S • 952-285-5800 | CROWN-BANK.COM MEMBER FDIC

EQUAL HOUSING LENDER

CONTENTS September • October 2021 • Vol. 20 No. 4 • www.upsizemag.com

PAGE 14

Cover story

Technological advancements exploded during COVID-19. Will the changes the pandemic brought about stick around? Take a look at how changes necessitated by a point in time moved companies permanently forward. BY ANDREW TELLIJOHN Cover photograph by Tom Dunn

PAGE 4

Founder’s Forum:

Bb BUSINESS BUILDERS

Upsize Founding Editor Beth Ewen pays PAGE 6 homage to several entrepreneurs who INSURANCE faced down fears and started new ventures Figure out how to determine what health during the pandemic insurance plan might be right for your small business

PAGE 4

Staff list:

by Andrew Marshall, Medica

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

PAGE 8

Upsize Minnesota (USPS 024-029) is published bi-monthly by Broad Axe Media, 2908 W 71 1/2 St., Richfield, MN 55423. Periodicals postage paid at St. Paul, MN and additional mailing offices. Postmaster: Send address changes to Upsize Minnesota, PO Box 23238, Richfield, MN 55423-0238

MANAGEMENT Take into account how the pandemic has changed your people to ignite their passion going forward by Robert Sicora, Sicora Consulting

PAGE 10

PHILANTHROPY Fight off pessimism, better yourself and better your company through giving back by Kirk Hoaglund, Clientek

PAGE 12

TECHNOLOGY Cut your network bills and keep up with changes in internet and telecom service by Cheryl O’Brien, Technology Management Corp.

COLUMNS PAGE 18

FEATURE:

Small business owners continue their denial about being a target for cybersecurity scams. Experts talk about simple, inexpensive steps companies can take to stay safe

PAGE 22

CATCHING UP:

Cindy Koebele, president and CEO of TitleSmart, talks about starting and growing her business and about building a management team that is allowing her to step back and enjoy other passions

PAGE 28

BACK PAGE The U.S. Small Business Administration tweaked its Economic Injury Disaster Loan program. Minnesota District Office Director Brian McDonald shares some thoughts on the changes and incentives for small businesses to apply

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Feel the fear and do it anyway

FOUNDING PUBLISHER Wes Bergstrom

EDITOR AND PUBLISHER Andrew Tellijohn atellijohn@upsizemag.com

FOUNDING EDITOR Beth Ewen bewen@upsizemag.com

DESIGN DIRECTOR Jonathan Hankin jhankin@upsizemag.com

CHIEF FINANCIAL OFFICER Dan O’Connell dano@upsizemag.com

PHOTOGRAPHER

Tom Dunn tom@tomdunnphoto.com

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admired the gorgeous Art Deco style at the newly refurbished Rand Tower Hotel in downtown Minneapolis during a visit in June. But more so, I marveled at the bravery of its developers, including Nicholas Peterson of Maven Real Estate Partners. He opened the hotel in December 2020 as COVID-19 raged. Yes, he was “panicked and terrified” but also “hopeful,” he told the Star Tribune at the time. He’s not the only brave entrepreneur who’s inspiring me these days, those who are fighting the fear the pandemic is still spreading yet venturing forth anyway. Steele Smiley is top of the list. The founder of Steele Fitness, he sold it to Snap Fitness back in 2013 and became an executive at its parent company Lift Brands. Then he left his comfy corporate job and the fitness industry he knew so well and launched two restaurant chains, the latest in April 2021, using his own money with local restaurant owner and friend Ryan Burnet as minority partner. “I don’t feel the need to have fear in my day-to-day operations when I’m using my own capital to build the companies,” Smiley said when I caught up with him in August. “You’re gambling with your own chips.” Crisp & Green started in Minnesota in 2016 and now has 90 locations in 12 states, the bulk of those franchise deals signed since COVID-19 crashed the party. Stalk & Spade sells plant-based burgers and chicken sandwiches and such and opened on Earth Day this year. “We opened with 6-, 700 people in line,” he said about Stalk & Spade, and the lines keep coming. How does he find the courage to grow through troubled times? “It’s what I do. I’ve been doing it for 20 years, and I just don’t carry that with me. You’ll have headwind or tailwind depending on what happens in the world. We can’t control that,” he said.

UPSIZE SEPTEMBER • OCTOBER 2021

“But one thing you can control is who you choose to surround yourself with.” If those are people “who can uplift you and make you better, you have a chance to succeed.” I’ve been traveling the country as a business reporter since June 2020, amazed at the wide range of pandemic responses but inspired by the courageous. Anthony Milton, owner of Tune Up, a men’s grooming concept, sued the state of Texas over pandemic shutdown orders in June 2020. Stratis Morfogen, a restaurateur in New York City, opened his first Brooklyn Dumpling Shop in June 2021, plus inked a sweet deal for a 25,000-square-foot restaurant in Times Square. I could go on. Upsize salutes these and so many other business owners who choose to act boldly whatever the times. We’ll keep rooting for — and in these pages, contributing to — your chance to succeed. —Beth Ewen founding editor bewen@upsizemag.com

CORRECTION Dan Cohen’s Soltec Sleep Management System costs $1,249. An article in the July/August issue misstated the price.

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insurance

BUSINESS BUILDERS

Health insurance offerings: what’s right for your business? by Andrew Marshall

TIPS 1. Eligibility for a small business health insurance plan requires at least one person on the payroll besides the business owner and can include up to 49. 2. Small business owners are required to pay at least 50 percent of the monthly employee health insurance premiums. 3. A variety of plans exist that differentiate in upfront costs, risk, size of provider network and other factors. Educate yourself upfront on these plans or work with a broker in order to make the right choice for your business. 4. Providing health insurance can be a tremendous recruiting and retention tool for your business.

Owners of small businesses increasingly recognize that benefits packages are important tools for recruitment and employee retention. This has been magnified in recent months. As recently as August, the U.S. Department of Labor reported that there are about 8.7 million people looking for work. Meanwhile, job placement site Indeed estimated in July there are about 10 million job vacancies. Next to wages, health insurance may be the most important part of an employment package. Fortunately for small business owners, options abound. With a little planning and research, health insurance can offer an attractive incentive to potential employees. Some basics As a small business owner interested in offering health insurance, there are a few key things to keep in mind. • To be eligible for a small business health insurance plan, you must have at least one person on your payroll. This means that, counting yourself, the minimum size of your group is two people. In Minnesota, small group coverage can include up to 49 people. • Laws require small busi-

UPSIZE SEPTEMBER • OCTOBER 2021

ness owners to pay at least 50 percent of the monthly health insurance premiums for employees. • You are guaranteed coverage. You and your employees and dependents cannot be denied coverage because of pre-existing medical conditions. Shopping for coverage Shopping for coverage is simple. The simplest way to shop for coverage is to work with a health insurance broker or agent. These experts can help you sort through the options outlined below. And the good news is they don’t charge you for their services since their fees are paid by health insurers. Also, you can always work directly with a health insurer. Most health insurers have information about plans available to small groups on their websites, along with contact information or a way to request that someone contact you. Health plan options Health insurance comes in a range of options. These options are designed to help you find a plan that meets your financial needs and goals for providing coverage. • Funding. Health insurance can be funded through one of two

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mechanisms. Fully insured means you pay a premium to a health insurer and they cover the cost of care for your employees, minus any out-ofpocket costs. Another option is to self-insure. This means you cover the cost of care for your employees and pay a health insurer a fee to administer the plan. Fully insured plans cost more up front while self-insured plans carry more financial risks because the cost of care is unknown. Some carriers now offer a hybrid option called level funding that combines attractive features of both fully insured and self-insured options. Level funded plans allow you to pay a set premium amount and potentially receive surplus dollars at the end of the year dependent upon your claims performance. Not all employers will qualify for a level funded plan. • Consumer-directed plans: These plans combine a high deductible medical plan with a health savings account or health reimbursement account to help offset employees’ out-of-pocket costs. The employer contributes a set amount to each employees’ accounts and they manage their health care costs. • Out-of-pocket costs: Costs include premiums (the amount you pay for insurance each month) and out-of-pocket costs.

Out-of-pocket costs include copays or coinsurance and reflect how much you have to pay each time you see a doctor or get a prescription drug. Generally, plans with higher premiums have lower out-of-pocket costs. Small group plans offer a range of premium and out-of-pocket arrangements. • Network: You can choose from an open network that will give you broad access to the largest system of health care providers. Or, as in the case of Medica’s narrower network products, which are called Accountable Care Organizations (ACOs), providers are affiliated with a small number of hospitals and clinics that generally are located in a specific geographic area. An ACO can often save 10 percent to 20 percent in premium dollars vs. offering the same benefits on an Open Access network. Providing health insurance for your employees is a tremendous recruiting tool. With a little planning and forethought, you can find coverage that suits your business needs and goals.

“ Next to wages, health insurance may be the most important part of an employment package. Fortunately for small business owners, several options abound.” Andrew Marshall Medica

Andrew Marshall is vice president of commercial client retention and growth at Medica and oversees the health plan’s small group business portfolio: 833.424.4752, andrew.marshall@medica.com, www.medica.com.

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SEPTEMBER • OCTOBER 2021 UPSIZE

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management

BUSINESS BUILDERS

Reignite your team by navigating Covidchanged dynamics by Robert Sicora

TIPS 1. Don’t pretend the last 18 months never happened. Employees have dealt with things they’ve never faced before and it’s important to understand the impact. 2. Having had ample time to reflect and spend time with family, many employees may not be ready to go back to how things used to be. 3. Giving your team time to come together to share values and how the last year has changed them could empower them and build alignment around a shared purpose. 4. Have regular discussions around purpose, vision, values, and goals. Having a team that’s aligned will reduce friction and disengagement. 5. Despite eagerness to get back to normal, make sure you don’t overlook what’s changed and how it will affect the future of work.

As a leader, you have a lot on your plate right now. Toward the top of that list: planning for a transition. Whether your team is coming back to the office, continuing to work remotely indefinitely, or adopting a hybrid model, chances are, you’re navigating new waters. There are many things to consider, including technology, resources, productivity tracking, processes, and operations. But what about the people? How has your team shifted because of Covid-19? How have your employees changed in the last year, and how will those changes affect your team’s dynamic? We’ve worked with several organizations managing transitions, and what we’ve learned may help you navigate the post-Covid landscape. Taking the time to address the trauma associated with change (especially in the context of a pandemic), respecting the leadership within each team member, and considering how your team dynamics may have shifted can set the stage to reimagine, reengage, and reignite your team. Address the trauma of the last year Humans are built to move on, and quickly. However, as tempting as it may be to sweep the last year under the rug, that’s probably not the most productive strategy. Your team has likely had to deal with stresses – both personally and professionally – that they’ve never had before. It’s important to understand the impact of that new pressure and what individuals need to do to feel whole. Understandably, many individuals are looking at their purpose right now. They’ve had opportunities to reflect, spend time with family, maybe try

UPSIZE SEPTEMBER • OCTOBER 2021

new hobbies, and they might not be ready to go back to how things used to be. You may have heard about the “Great Resignation” threatening to void organizations of some of their top employees, who may be looking for clearer alignment between their own vision and values and those of their employer. Allowing your team the space to come together to share how they’ve changed, what they’re passionate about, and what they personally value can build trust, transparency and alignment around shared purpose and collective values. Respect the leadership within each team member Any time of great change has an impact on an individual, and the last year has been full of changes. The members of your team have learned and grown through the pandemic, and they likely have fresh perspectives they didn’t have before. This is an opportunity for the members of your team to understand each other on a human level. Who are your teammates, what motivates and inspires them and how can you best communicate with them? You can use an assessment to help your employees work through some of these insights, or you can offer time for self-reflection and discussion. Consider what each team member has to offer and how their strengths can contribute to the rest of the team. Consider your team dynamics (and how they might have shifted) Finally, it’s important to consider how the changes of the last year, the changes within individuals, and the changes to your policies may have

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shifted the dynamic of your team. How well your team works together impacts organizational effectiveness and customer experience, among other indicators of organizational effectiveness. It’s worth taking the time now to make sure the engine is running smoothly rather than to wait for troubles down the road. Not sure where to start? We recommend turning to the “8 Aspects of Team” model as a guide. This balanced systems approach ensures nothing is missed as you set the framework for an effective team. 8 Aspects of Team: • Shared Purpose — As you plan for the future of work after Covid, it’s time to recalibrate around a shared purpose. A team that works together toward a common vision is more likely to achieve it than one without clarity and focus. • Agility — If we’ve learned anything in the last year, it’s that employees want flexibility. The ability to adjust is vital to organizational survival. Take the time to determine with your team how to meet both the needs of individuals and the needs of the organization. • Collaboration — Once the team has a defined purpose and the resources necessary to work together effectively, collaboration can get the job done. Does everyone on the team have access to the tools and individuals they need to work together effectively? • Inclusion — Now more than ever, it’s important to be open to the different things people are going through. Be cognizant of team members’ experiences as you make organizational decisions. • Trust — Build a circle of trust

by encouraging open and honest communication. Give employees opportunities to share what they’re going through and what struggles they might be having. This is especially important in a remote or hybrid setting, where employees might feel pressured to only discuss business when speaking with one another. Encourage sharing and connection. • Alignment — Have regular discussions around purpose, vision, values and goals. Having a team that’s in alignment around these — and having individuals whose own values and purpose align with that of the team — can reduce friction, resentment, and disengagement. • Process — A consistent process promotes efficient and effective work, higher engagement, and improved customer satisfaction. Your processes likely need to adjust for the current reality you are in and any changes you may be making to where and how employees will do their work. • Continuous Improvement — All aspects of team come together to foster a culture of continuous improvement. Change might be scary, but it’s an opportunity to really focus on how your team can come together better. We’re all eager to get back on track after the uncertainty of the last year, but we can’t overlook what’s changed and how it will affect the future of work. Dedicating just one or two days out of the calendar year to charting that course together, and recalibrating as necessary along the way, will help you navigate through any rough waters that come your way.

“ As tempting as it may be to sweep the last year under the rug, that’s probably not the most productive strategy. Your team has likely had to deal with stresses — both personally and professionally — that they’ve never had before.” Robert Sicora Sicora Consulting

Robert Sicora is founder and CEO of Sicora Consulting and an expert in organization development: 888.724.5384; crew@sicoraconsulting.com; www.sicoraconsulting.com.

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SEPTEMBER • OCTOBER 2021 UPSIZE

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philanthropy

BUSINESS BUILDERS

Experiencing success means giving back by Kirk Hoaglund

TIPS 1. You did not succeed alone. Give back to show gratitude to the community that helped you succeed. 2. Seeking feedback from colleagues and employees on what causes to support demonstrates that you trust, value and respect them and want to join in their endeavors. 3. Donating time puts you in touch with new people who can become clients or provide new ideas or viewpoints. 4. Giving back shows leadership and dedication to a stronger mission than simply providing profitable growth.

I grew up as a part of a large family, living in a small Minnesota town. Everyone knew everyone else. You knew what car they drove, when they bought it and from whom. I was pulled over for speeding one night and the officer said “Kirk, slow it down. You don’t want me telling your Dad about this. Now get home.” You knew everyone and you lent a hand whenever it was needed. I am certain that I’m not the only one who has carried that ethos into adulthood and, then, into business. Not long after I started my first venture almost 40 years ago, I knew that I must weave giving-back into how I conducted myself and my businesses. Now, my companies pledge to donate 5 percent of net income every year and provide another 5 percent of equivalent value in pro bono services. A bit over two years ago, I started my own non-profit venture. After 40 years, I wondered if my skills and experience would translate into new opportunities to help others. Signs are good. Stay tuned. All because I dodged that speeding ticket in small-town Minnesota? That’s a part of it and does help keep the idea alive. But I think there are important, pragmatic reasons for business owners to consider formalizing a giving-back program. Here are three.

introduced to you by your friends. Your first customer was a friend or even a prior employer. Before deciding to start up, you discussed your ideas with family and friends. Maybe enough for them to grow impatient and push you to get started. Your community got you started and helped you keep going. Think back to some of the best advice you received and from whom. Who helped you get through mistakes or bad times? Who was there to celebrate your first big deal? You did not succeed alone. Your people are already giving back. Of the current organizations that I work with through charitable giving, just two of seven arrived through my own connections. The other five were brought forward by others on my team. People who had personal connections into worthy organizations. Organizations they were already supporting through donations and volunteerism. Showing that kind of respect and attention to people working for you says a lot about you and your company. There are few better ways to demonstrate that you trust, value and respect your people than to join them in their endeavors. You’ve already asked them to join you in yours. Isn’t it the right thing to do? After all, your people are already giving back.

You did not succeed alone You and your venture grew up within a community. A community that brought you some key elements. If you are like me, your first accountant, attorney, insurance broker, landlord, and banker were

You are a leader, now As you grow, you’ll gradually stop doing the things that got you started. Smart, hard-working people are taking on that work. You worked your network and found just the right people. Now you are leading a team.

UPSIZE SEPTEMBER • OCTOBER 2021

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How you do so is becoming a pivotal element of your continued success. If you’ve read Daniel Pink’s “Drive” you may have been convinced, as I have, that he is right about what motivates people: autonomy, mastery, and purpose. As a leader, your duty is to ensure that everyone has opportunities to achieve and experience each of these elements. You will delegate to help them with autonomy. You will mentor to contribute to mastery. You must demonstrate the meaningful elements of a mission in order to deliver purpose. Is “profitable growth” a meaningful purpose? Perhaps “profitable growth through stellar customer service” is better. The kind of smart person you want on your team will see through a hollow mission. You need to flesh out a compelling mission. Maybe “profitable growth through stellar customer and community service.” You are a leader, now. One more Let me add just one more key reason: you will meet new and wonderful people. You’ll love working with them. You will find new ideas, new points of view and an antidote to the pessimism that leaks into business minds. Start simply — with elbow grease I’ve always found it difficult, or perhaps, unrewarding to use cash as a primary problem-solving tool. I enjoy digging in, with a good team, to find core problems and working on solutions. That helps the team know where to put cash — where it will do the most good. For me, charitable giving is the same.

One of my first forays into business-giving-back was with a group that needed a website for their fledgling foundation. The project was interesting, the people were great to work with and it was something that my company had all the skills to execute. Their story was inspiring and their cause was important. We took that on, adding other kinds of IT help as their foundation matured. Eventually we would donate several hundred thousand to their cause, volunteer at countless events and even serve on their board. This year we are sponsoring their largest fund-raising event and we just finished a fourth remake of their website. This relationship is now more than 25 years old. It started with a simple website and a small investment. If your skills and offerings don’t fit neatly into the organization you wish to support, ask about their silent auction fund raiser. Contribute a set of free services to their auction. The winning bidder might become a new client. I’ve found a great deal of fulfilment through giving-back. It makes the kid who grew up in rural Minnesota feel proud to have carried what he learned, growing up, into the business world. I will be joining the 25th Annual Morton Cure Paralysis Fund Golf Tournament the week that I write this. It will be a great day of fun, companionship and volunteerism, all with people I otherwise would have never met. And it won’t even matter that I’m horrible at golf.

“ You will meet new and wonderful people. You’ll love working with them. You will find new ideas, new points of view and an antidote to the pessimism that leaks into business minds.” Kirk Hoaglund Clientek

Kirk Hoaglund is founder and CEO of Clientek and founder of Orpheus Music Project Inc.: 612.895.1859; kirk@clientek.com; www.clientek.com; www.orpheusmusicproject.org.

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SEPTEMBER • OCTOBER 2021 UPSIZE

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technology

BUSINESS BUILDERS

Keep up with telecom/ internet changes and conquer network bills by Cheryl O’Brien

TIPS 1. Review your carrier contracts to see if there are tweaks or upgrades to your plans that could result in substantial savings, expanded capacity and network resiliency. 2. Consider an independent audit of your systems to see if there might be less costly programs or more efficient services that could work for your company. 3. Small business owners often partner with a bunch of smaller vendors because they think it’s cheaper but end up with poor customer service and equipment that doesn’t function as it should. 4. Take cell phones, for example: Do the right people have them? Are they on the best plans? Make sure you know what you are paying for and reduce your expenses by getting rid of what you don’t need. 5. Surcharges, taxes and “other” charges are becoming a larger portion of bills. Vendors want them to remain a mystery, but business owners are entitled to know what they are buying. 12

Most people think poring over voice, data and internet phone bills looking for charges and errors is agony, but it’s getting more important. The telecom industry has changed a lot in 34 years. Most recently, the telco carriers such as AT&T, Lumen and Sprint/T-Mobile have announced plans to sunset their legacy T1, POTS and DSL service platforms by the end of 2021 or middle of 2022. This has left companies scrambling to identify all such services they still utilize and either upgrade or convert their existing network. These legacy services are more prevalent in applications that feed the Emergency Response Systems (such as E-911) so it is important to identify and handle these transitions before losing those legacy voice, data and internet services. Because of the aggressive sunsetting timelines, doing so will require immediate attention to allow for negotiating new contracts, installing and testing new systems and ensuring the operational integrity of new services. After this emergency is fully handled, it’s important that you review your overall carrier contracts to see if there are language, pricing and platforms requiring tweaks or upgrades that could result in substantial savings or expanded capacity and network resiliency for your overall network topology. You might, at the same time, consider reviewing cybersecurity for your

UPSIZE SEPTEMBER • OCTOBER 2021

newer IP networks. Here are some questions we are frequently asked regarding technology audits and staying ahead of the technology evolution: Question: Is there a growing need for companies to consider audits of their telecom and technology systems? Answer: The big needs generally are Internet, long distance, local, data and the growing cloud service contracts and services. There’s always been a need for independent audits, but about two years ago we observed increasing urgency. This type of practice with resellers is now rampant in two ways: • The sales team gets paid for what they sell and the sales rep enters the info. Billing errors occur, and they can be fixed. So, let’s say you’ve negotiated a discount of 55 percent, but the sales rep puts in 20 percent. The sales rep gets paid on the first three months, and it takes that long for you to discover the error. • Back to the sales team getting paid for what they sell. The sales team sells the cloud service and now is selling all associated services to allow the company’s network to reach the cloud services. This means there is a need to audit the actual cloud services and the network that allows the compa-

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nies to reach the cloud service in an efficient manner. Remember, the cloud is only good if the users can reach it. Most small business owners don’t know what they’re buying. You think you’re saving money by buying lower bandwidth but remember that because of tiered pricing, small bandwidth can be costly for carriers to step down. Also, integrated services that carry voice on top of data and internet are delivered various ways. So, consumers need to understand what they are paying for and ensure they don’t end up paying extra for services, troubleshooting and monitoring. Question: How often do you find that small companies are overpaying? Answer: They’re often being taken to the cleaners. One common situation occurs when small business owners partner with a bunch of tiny vendors. The technology won’t work like it’s supposed to and the customer service may be poor. The company doesn’t think it has the budget to go with a larger provider. But when you add all of these little services up, it turns out they would have the budget to have world class, highly redundant services. Question: So how can business owners get a handle on their technology? Answer: First, find out what you have and what you are paying for. Your accounting department can put in a folder anything that has to do with technology. Pay it, put it in the folder. When the month ends, divide the bills into sub folders for cell phones, data, local calls, etc. Take cell phones. How many

numbers do you have? Who do they belong to? What plan are they on? When people take that step, they are always shocked. It’s the lowhanging fruit. Research the right plan or find a partner to do so for you. Then get on the right plan. It’ll be rewarding and empowering when, for the first time, you receive your bill and you know about everything you are paying for. Question: What should they look at next? Answer: The surcharges, taxes and “other” charges are the next big wave of costs. These are getting to be a larger percentage of the overall cost and they show up on voice, data, internet, wireless and cloud. We have seen cases where these costs are larger than or equal to the actual service. Vendors want to keep these charges a mystery. But business owners are entitled to answers, just as they are when buying paper, pencils or any other version of technology. Question: What should business owners do? Answer: We want them to get educated. Be competent. Be willing to ask questions. Do the straightforward tasks yourselves, then bring in outside expertise if you need it. Stop assuming it’s okay to pay extra for all these services because that’s the way you’ve always done it.

“ Consumers need to understand what they are paying for and ensure they don’t end up paying extra for services, troubleshooting and monitoring.” Cheryl O’Brien Technology Management Corp.

Cheryl O’Brien is founder and president of Technology Management Corp., a technology and telecom consulting firm: 952.470.0217; info@tmc-1.com; www.tmc-1.com.

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SEPTEMBER • OCTOBER 2021 UPSIZE

CHAOS DRIVES PROGRESS Some COVID-driven technology enhancements now in place for good

OVID-19 created a plethora of problems for Hopkinsbased Citrus Systems, a 37-year-old juice processor that packs private label retail juices for dairies, food service, hospitality and other sectors. The institutional portion of the business comprising hospitality, schools and hospitals mostly shut down, slowing a significant portion of the company’s business. Supply chain issues also have, at times, created havoc. But the company’s retail side, led by grocery store sales going “through the roof” in early 2020 as experts predicted orange juice could help stave off the virus, were up more than sales were off in other sectors. And the company rolled out a national program with a new large convenience store partner that drove sales tremendously, says Tom Boehland, president. “We came through pretty well,” he says. “We were busy selling a lot of orange juice.”

Tweaking the business model

Over the last couple years Citrus Systems has improved its packaging and how products are boxed for distribution. The company switched to a different box erecting system that cut 30 percent of the corrugated material out of the box, a move that increased the company’s production speed. Then, late last year, as part of facilitating the growth in small bottle sales brought on in part by its new retail partnership, the company jettisoned one shaky segment of its institutional business.

Then Citrus Systems worked with capital equipment financier KLC Financial to finance the installation of a new bottling line to beef up production of these smaller juice bottles. That new bottling line, he says, runs 25 percent faster than its original small bottling line using robotics and, thus, three fewer people. “We went from five on the line to two,” says Boehland, adding that the original line will soon be upgraded to match the new one. “We just need a breather before we dive back in.” Boehland expects the small bottling line to continue growing. His new partner is growing and his company packs juice for many of the nation’s leading grocers and convenience stores. He doesn’t expect to need more technological enhancements in the near future. “With the two lines right now, we are able to do it,” he says. “We are running three shifts five days a week. At some point you may need to make the jump to seven days.” While the changes likely would have happened whether COVID happened or not, he’s glad to have made the moves. “With the addition of the line, we’re able to more than double the small bottle capacity with less than double the people,” Boehland says. “We have flexibility.”

Moving an industry forward

A new bottling line installed at Citrus Systems uses robotics to produce 25 percent more product with three fewer workers. Photo by Tom Dunn.

Citrus Systems wasn’t alone in using technology to make the last 18 months more productive. The auto repair industry isn’t known for being fast to adapt, but for one chain of repair shops, COVID-19 provided the push it needed to leap into us-

BY ANDREW TELLIJOHN 14

UPSIZE SEPTEMBER • OCTOBER 2021

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Citrus Systems’ small beverage bottling division grew fast in 2020 despite the pandemic, in part due to a new contract with a large retailer. Photo by Tom Dunn.

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ing 21st century web capabilities. “Some of the changes and advancements we made are not that significant in the world of technology, but in our industry, they were,” says David Mitchell, president of Heartland Tire. The company added texting through its software system, so customers could drop off their vehicles without going inside. That also allowed staff, if the customer desired, to text them updates on their service and send pictures showing them what problems they’ve found. A couple years ago, Heartland had added tire shopping and purchasing to its website and, Mitchell says, last year that functionality was increased to include service. “The biggest fear is ‘how much are you going to charge me,’” he says. “You’re almost afraid to ask someone.” Now, customers can go to the website and not only sign up for appointments, but also enter information about problems their vehicle is having. The system then serves them up a preliminary online diagnosis and estimated cost. On occasion, upon further inspection, the computer diagnoses end up not being correct, but it has still been a popular feature. “The feedback we’ve gotten from the customers has still been positive in the sense that ‘you told me it was probably going to cost me $250 and when I got there, I was already comfortable with that,’” he says. “The fact that it was something different, I still felt more comfortable bringing it in because I had an idea of what I was going to spend ahead of time.” Heartland Tire recently grew from 21 to 29 locations through an acquisition. Mitchell, by his own admission, is not a techie. But he’s glad the system was implemented. He intends to keep it permanently and eventually roll it out at the new loCOVID-19 drove Heartland cations because of the positive Tire to build its website’s feedback. capabilities to include mo“The reason we did it was for bile diagnoses and quotes, COVID,” he says. “That’s what as well as text check-in. our thinking was. We wanted Customer feedback necustomers to not have to have cessitated keeping those in-store, face-to-face commufunctions. nication. We’ll continue it for16

UPSIZE SEPTEMBER • OCTOBER 2021

Village Bank has accelerated plans to make all of its services available via its “Virtual Village.”

ever. Our customers are using it because they feel a sense of understanding and comfort before their car comes in.”

Building a “Virtual Village”

Mitchell was recently added to the board of directors at Village Bank, a community bank with several north metro branches. The bank had decided prior to the spread of COVID-19 that it intended to create a “Virtual Village” where customers could utilize online any service the bank offers. That was already underway because, for example, if a business owner lives in Minnesota but spends part of the year in Florida, Village still wants them banking with Village while they are out of town, says Aleesha Webb, president, adding that whether it’s the business owner nearing retirement or the next generation that might eventually acquire that company, she knows Village needs to have multiple ways to reach that customer. “They’re not going to be coming into our lobby all the time,” she says. “We want to have resources for them.” But COVID-19 accelerated that movement, Webb says, adding that the company is just under a year into a threeyear plan to make this overhaul. Right now, you can apply for a home mortgage through the Virtual Village. And for the second round of Paycheck Protection Program (PPP) applications last year, the bank had a lending platform online. Village has found a financial technology company to partner with on outsourcing some of these service enhancements. The company also brought onto its board some new members with background in building and operating technology systems. One is Michael Connly, whose background includes stops with Hewlett-Packard, The St. Paul Companies, UnitedHealth Group and Optum, where he was involved in efforts to fix initial problems with the Healthcare.gov insurance exchange. Webb and Connly both say customers will drive the

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PHOTO COURTESY OF VILLAGE BANK

PHOTOS COURTESY OF HEARTLAND TIRE

COVER STORY

Not giving up on physical space

While many companies are moving forward with their technological enhancements and some have announced plans to reduce or renounce their physical office space, one Twin Cities software technology company has gone the other way. To be clear, Nextek LLC is not jettisoning its technological focus. “Technology is more important than ever before in our industry,” says Senior Vice President Kristina Walch. And the company remains passionate about developing technological improvements for its financial services industry clients. The company just also believes doing so is easier when workers can get together in person. It recently moved to a new 20,000-square-foot office space that was designed for collaboration. There aren’t assigned spaces, so employees can utilize any available cube or office they want. The new space fits 200 people on rotation, so the head count could quadruple from the current 46 before size becomes an issue. Employees are only required to come in once a week to talk about strategy, new customers and questions that have arisen. Ironically, Walch says, the company did not believe in remote work prior to COVID. Now, management has instituted flexible policies. And staff — as well as some clients — let management know they wanted space to get together in person.

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Software developer Nextek LLC., which creates technological enhancements for financial services companies, says technology is more important than ever,. But after meeting virtually for more than a year, company employees suggested some of those discoveries are easier to find collaboratively in person.

“Our employees were craving a place to call home and a place to have that physical connection to be face-to-face when needed,” Walch says. “We designed this building to allow employees to come and go as they need.” Additionally, she says, they felt last year that they lost the ability to achieve some balance in their lives. “Creating that degree of separation between work and home life has really become more appreciated over the last year-and-a-half,” Walch says. “It’s not required, but it’s something that, when I want it and when I need it, it’s available. It’s a place they can identify as their home base for work that doesn’t allow work to bleed into their home life as much.”

CONTACT: TOM BOEHLAND is president of Citrus Systems Inc.: 952.935.0410; tombo@citrussystems.com; www.citrussystems.com MICHAEL CONNLY is a board member and ALEESHA WEBB is president and vice chair at Village Bank: 763.780.2100; marketing@villagebankonline.com; www.villagebankonline.com. DAVID MITCHELL is president of Heartland Tire: 763.572.2449; dmitchell@heartlandtire.com; www.heartlandtireservice.com. KRISTINA WALCH is senior vice president at Nextek LLC: 800.407.4137; kwalch@nextekdev.com; www.nextekdevelopment.com.

SEPTEMBER • OCTOBER 2021 UPSIZE

PHOTOS COURTESY OF NEXTEK LLC

changes. Village already makes regular efforts to keep in touch with them. And, as Connly says, adoption will take place at different paces for different entrepreneurs and their needs will not stay static. “One of the keys is to make sure you offer the services people want when they want them, especially as that evolves,” he says. “So, obviously, in any industry, the security and stability of what you do is critical. But being able to offer continuous improvement in what you can do digitally while seamlessly integrating it with the kind of care and service people expect from the Villagers is going to be absolutely critical for how the bank moves forward.” She suspects these are discussions taking place with every financial institution and probably every company that had to evolve through COVID-19. “Every bank is going through this now saying, holy moly, we just made a ton of money off of PPP fee income,” she says. “That’s not coming back or let’s hope it’s not coming back. We need to now understand how we’re going to grow other revenue lines. And any technology that was put in place or any efficiencies that we found through automation, etc., let’s make sure we keep doing that because that’s going to help on the expense side of the income statement.”

CYBER SAFETY Evading hacker attacks on small business

hen a company relocates or offers to relocate a new or current employee, they’re most likely not moving all those belongings themselves. They’re probably calling a company like Plus Relocation. The Minneapolis-based firm has offices here, in London and Hong Kong, and it’s helping employers and employees move in more than 150 countries, providing local support in each of them. Some of the company’s clients are large technology companies with workers in many offices in many states and countries all over the world. All of which is to say that Plus Relocation has a lot of people’s and businesses’ important private data in its possession and a significant incentive to make sure that data stays safe. The company meets regularly with Atomic Data, its managed service provider, to talk about security and compliance requirements, new best practices and other issues. “Our reputation is only as good as we maintain it,” says Andrew Kubitschek, chief information officer at Plus Relocation. “We haven’t had an issue, thankfully. But definitely, if we were compromised, it’d be a big deal. That’s what makes us a target of an attack.”

Tyler Olson, founder of Shyld Academy, helps train companies on what steps they can take to protect themselves from cyber hackers.

by Andrew Tellijohn

UPSIZE SEPTEMBER • OCTOBER 2021

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FEATURE

Training and communication help

Kubitscheck worked at Atomic Data before joining Plus Relocation. Atomic Data uses many strageies to help Plus Relocation know where it’s vulnerable, including the simulation of phishing attacks and sending of spoofing emails to test employees. Such actions provide instant feedback on issues where workers may need some additional training. The company also offers regular training on securely transmitting and destroying sensitive information in compliance with government rules. “For me, it’s a kind of continuous improvement,” Kubitschek says. “We can implement one thing and three months later, we have to find another, the next best thing to implement to continue to keep us safe.” Last year, with COVID-19 bringing about a largely remote workforce, the company faced further challenges ensuring its phone systems, meeting platforms and other technologies were secure. “Hackers are out there ahead of things, and it’s sort of a catch-up game, trying to implement anything and everything you can that will keep you as up to date or as secure as possible,” he says. “Obviously, they find ways that beat you to the punch, but that’s really been a significant focus.”

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Small businesses may not be able to afford all the best software and hardware associated with cybersecurity, but experts say they can’t afford to risk doing nothing at all.

Training starts with internal policies

Mark Gamm, director of technology, architecture and compliance at Atomic Data, agrees that one of the most valuable things a company can do is train its employees, because often times, the threats aren’t complex, sophisticated efforts to break into computers, but rather simply sending well-rehearsed emails asking for information that will gain them access. That takes some work internally, as well. Companies need to decide in advance what their policies will be on employees using their own devices or on what software can and can’t be installed on company machines. “Everybody wants to talk about what solutions do I need to buy,” Gamm says. “What tools do I need to buy. Before you can really do training, though, one of the things that most small businesses don’t take the time to do is policies, determining things like your incident response plans. … In order to really get to the training

SEPTEMBER • OCTOBER 2021 UPSIZE

FEATURE Unsuspecting targets

Atomic Data meets regularly with clients to go over vulnerabilities and discuss best practices.

Cybersecurity experts say one of the reasons small businesses need to worry is that they … don’t worry enough. Despite well publicized attacks on companies large and small, small businesses still let simple things slide that could help keep them significantly safer. “We’re seeing more and more small businesses being targeted with hacks and ransomware and various forms of data breaches,” says Tyler Olson, founder of Shyld Academy, which does training for businesses on what to watch for from hackers. He’s heard of businesses that have lost access to their operations when someone took control of their networks, listened as another client learned that all of his customers had been asked to send their payments elsewhere one month and agonized as yet another found out his entire staff ’s personal information was compromised. “For some small businesses this could put them out of business,” Olson says. “That can become devastating for small businesses especially.” “Small businesses are especially at risk for data breaches that are out there,” he says. “I feel bad because many people will reach out to me after they’ve had a data breach versus before. We can certainly help reduce the chances of that next data breach, but I want to protect from the first ones, as well.”

Do something

While they may not have internal IT staffs or massive budgets for all the latest software or hardware fixes, security experts agree that small business owners should at least do something. One option for familiarizing themaspect, you have to start with policy, so you know what selves with the risks and solutions is attend one of the you’re training about.” cybersecurity forums available in the Twin Cities. CyberNINES President Scott Singer agrees. He says Among them: ransomware is one of the chief threats to small businesses right now. He worked with one financial firm in the • Cybser Security Summit, which has a small busiMidwest that got a legitimate-looking request to change ness track, coming up October 25-27 a direct deposit account. • Government IT Symposium, with its cybersecurity “Instead of having a policy or procedure in place, a component, November 15-18 work process that says you verify this by a phone call or • Secure 360, next scheduled for May 10-11, 2022 some other process, they just changed it and that client lost some money,” he says. While small businesses may not have all the resources, The ransomware emails and, now, gift card scams, are they also often can’t afford the costs associated with not not sophisticated. They’re higher in quality than they doing anytihng and then trying to fix the problem when used to be — usually with all the words actually spelled they get hacked. If they can’t afford a lot of software and correctly — and they are sent to large quantities of peo- hardware, there are many less expensive steps they can ple in hopes of landing a few unsuspecting respondents. take to mitigate risk, Gamm says, including regularly “It’s really a numbers game,” Gamm says. “If I send scheduled backups of their data, “One of the first things that small businesses tend to out a million emails and I get two people to click, maybe not think about or ignore is backups,” he says. “If you get it’s worthwhile. Maybe I get something from it.” 20

UPSIZE SEPTEMBER • OCTOBER 2021

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FEATURE

Training employees is one of the best — and least expensive — solutions for keeping a company safe from ransomware and phishing emails.

compromised, the first thing you are going to want to be able to do is restore your backups. A lot of small businesses say ‘yeah, we’ve got backups,’ but when is the last time you actually tested the restart process? When was the last time you actually went through and made sure you can actually recover from a backup? It’s a really easy first step.” Gamm and others also recommended multi-factor authentication, or requiring more than just a single password, for accessing logging in to key systems. “It’s becoming more and more prevalent that people are getting passwords that are compromised,” Gamm says. “Multi-factor authentication gives that second assurance that you’re protected.” Nearly 95 percent of data breaches are caused by an employee doing basic “cyber-hygiene” poorly, says Olson, who suggests that unique passwords on all accounts, multi-factor authentication on as many accounts as possible and simple training are low-cost ways of protecting businesses from attacks. Olson suggests business owners interview some potential partners to find someone, preferably local, to help deal with these issues. He, for example, works with a lot of companies spcifically on training of employees on cybersecurity issues and has partners he can put clients in touch with if they desire more detailed software or hardware solutions. Singer, from CyberNINES, also is used to working with other companies in tandem. He often partners with managed service providers hired by small businesses to run their information technology departments. Those partners generally do fine with most general technology, but often don’t have cybersecurity backgrounds, he says.

Compliance required for contracts

On a side note, if companies won’t guard against being

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hacked for their own well-being, they sometimes have to anyway in order to land certain deals like government contracts. The U.S. Department of Defense, for example, has highly complex security requirements with which it is often difficult for small business owners to comply. Singer works primarily right now with small manufacturing companies in Minnesota and Wisconsin and with some financial services and medical firms to help in that area. He spent 30 years in the Navy and he’s familiar with such requirements. “Small businesses don’t have purchasing departments, they don’t have regulatory departments, they don’t have compliance people, they haven’t gone to classes on government contracting,” he says, “They’re really at a disadvantage when it comes to this. We’re trying to help all these businesses meet those requirements.”

CONTACT: MARK GAMM is director of technology, architecture and compliance at Atomic Data: 612.466.2000; info@atomicdata.com; www.atomicdata.com. ANDREW KUBITSCHEK is chief information officer at Plus Relocation: 888.251.2825; akubitscheck@plusrelocation.com; www.plusrelocation.com. TYLER OLSON is founder of Shyld Academy: 651.603.4567; tolson@shyld.academy; www.shyld.academy. SCOTT SINGER is president of CyberNINES: 608.512.1010; inquiry@cybernines.com; www.cybernines.com.

SEPTEMBER • OCTOBER 2021 UPSIZE

catching up by Andrew Tellijohn

TitleSmart still growing quickly via focus on customers

ix Januarys ago, TitleSmart Inc. was one of five finalists for the Upsize Business Builder of the Year award. Renter’s Warehouse eventually won the prize that year, but TitleSmart and its founder have proven worthy participants for that title in the years since. By early 2015, Cindy Koebele, president and CEO had tapped into her parents for backing twice, for a total of $60,000, to start and built the closing company. At the time TitleSmart had 43 staff members in eight locations, with revenues topping $3.8 million. Now the business has 131 employees and it generated $24 million in revenue in 2020, outgrowing the 100-employee threshold Upsize uses to quantify a “small business.” It was an idea built around treating people differently, baking chocolate chip cookies and including in some locations a fireplace to improve the mood of those people who came in to close their loans. “We wanted to offer this different experience,” she told Upsize at the time. Not bad. “We’ve had a lot of growth since then,” Koebele says now. Ups and downs Growing a company is a constant learning process. Though 22

In addition to starting TitleSmart Inc., Cindy Koebele wrote a book sharing lessons learned during the creation and expansion of her company.

TitleSmart has consistently shown growth over the last half-dozen years, Koebele acknowledges some decisions have gone well and others have been less successful. One strategy that has worked is her decision to hire during downturns. “That way I never get slammed when things start picking up,” she says, adding that doing so during a slow 2020 caused by the global pandemic aided greatly in being able to restart faster while competitors were, instead, look-

UPSIZE SEPTEMBER • OCTOBER 2021

ing for workers. “That’s a great way to do it and I continue to do that. I think it sets us apart from the competition.” On the downside, Koebele says, she’s occasionally made the mistake of not trusting her gut instincts. For example, early on she opened several satellite offices located inside real estate offices or lenders’ offices. “They always said ‘oh, you’re here, we’ll work with you, it’ll be great.’ And I find that they just don’t pay off.” She mostly shelved that idea early www.upsizemag.com

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Small Business Virtual Seminar Cyber security is the biggest threat to small businesses. Unfortunately, too many small businesses think they are too small to be a target. Attack bots are deployed online 24/7 looking for cracks in your company security, regardless of company size. Join us as we cover recent attack examples that have taken down companies, insurance coverage, technical protection, cost-effective safeguards, free assessment services offered by the government, recommendations on what to look at for managed service providers and cyber practices to position your company for growth. The cyber threat has never been more real for small businesses. Sign-up today for an afternoon of complimentary resources designed to protect against ransomware, phishing attacks and how to respond when an incident happens.

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SEPTEMBER • OCTOBER 2021 UPSIZE

on, but has, on occasion, broken that rule, usually against her better judgement. As recently as two years ago she opened a satellite location in Monticello that closed shortly thereafter. “I knew I shouldn’t do it and I still did it,” she says. “I guess I’m still working on that lesson. I think the best lesson is listen to my gut because I know those don’t work.” Growing through transitions While the company is growing and Koebele is still committed to it, she has taken ownership of another business for which she has a great deal of passion. And she wants to spend time building that, as well. In her mid-50s, she has no plans to retire. But she has decided to delegate more and take a step back. She has, over the years, hired several managers she trusts. A few years ago she decided to start teaching them different aspects of the business. “They’re very smart,” she says. “I trust them. … Over the last few years, I’ve been really pushing things that I normally do to them and then watching them get better and better at it. So, it’s been a very nice handoff.” She still handles budgets, oversees finances, recruits for high-level positions and handles bigger problems such as litigation or fixing mistakes that arise. “I am going to start cutting back

TitleSmart Inc. Description: Title insurance company providing clients with title, escrow and real estate closing solutions Headquarters: White Bear Lake Founded: 2007 Founders: Cindy Koebele and Angela Shackle Employees: 131 Website: www.title-smart.com

a little bit. It’s been great,” she says. “Even though I am running the day to day, I am able to step away a little bit more. And things still run.” Keeping otherwise busy When Koebele isn’t selling title insurance she’s found plenty of other ways to keep her busy. She staked her claim to an EY Entrepreneur of the Year award for the Upper Midwest Region in 2015 for the Insurance Services category. “It was probably one of the most fun things I’ve ever done,” she says of the two-day process filled with interviews and auditions. She recently was able to participate again as a judge in the contest, reviewing financial records and helping whittle down candidates. “I learned a lot,” she says. In 2018, she wrote a book: “Obsess to Success: How Building Relationships and Focusing on the Customer Experience Will Change the Course of Your Business.” The quick read discusses the lessons learned as she grew TitleSmart from start-up to market leader and offers advice on building relationships. It was her third book. She has, as a hobby, also written two children’s books. And now, as part of her transition away from handling everything at TitleSmart, she recently bought the sixcabin Hay Creek Ranch Horse Camp in the Black Hills of South Dakota. Koebele likes spending time out there and, while there, she likes to roll up her sleeves and work. A few weeks ago, she carried water buckets and cleaned cabins, “demonstrating to other people that no job is too small.” That’s the side gig calling her to take some time away from TitleSmart. “I love to ride horses and I love going out there,” she says. “It’s great. We have thousands of miles of Black Hills that we can ride through and people love doing that.”

“ Over the last few years, I’ve been really pushing things that I normally do to them and then watching them get better and better at it. So, it’s been a very nice handoff.” — Cindy Koebele,

TitleSmart

Contact: Cindy Koebele, TitleSmart: 651.779.3075; info@title-smart.com; www.title-smart.com. 24

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UPSIZE RESOURCE DIRECTORY BANK

computer consulting Intertech

FINANCIAL SERVICES Goff Investment Group

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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.

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Today’s entrepreneur brings creativity, passion, and flexibility to the task of achieving success. Flagship Bank can help because these are precisely the qualities that we bring to each customer of our bank, and their community. With six convenient locations and a staff of experts, we are ready to offer our support. Let’s talk today. Member FDIC. Equal Housing Lender.

BANK Highland Bank Rick Wall, CEO | 952.858.4753 Troy Rosenbrook, President | 952.858.4810 952.858.4888 | www.highland.bank Founded in 1943, Highland Bank is focused on business lending and is an SBA “Preferred” Lender, making us uniquely qualified to help your business obtain the financing it needs expeditiously. Work directly with the decision-makers who will treat you like a business partner. Member FDIC.

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At People Spark Consulting, we help companies implement the right HR practices to meet and exceed business goals. Our simple, practical HR processes help boost your bottom line and increase your profits and margin. We can help you create and streamline your HR processes so you can play to win.

Securities offered through LPL Financial, member FINRA/SIPC

Winthrop & Weinstine is a business with a deliberate culture of enterprise and fresh thinking. Our clients have big ideas, and our lawyers help turn those ideas into successful businesses. We represent clients in the early stages of their business in matters such as entity formation, capital raising, employment matters, vendor and customer agreements, and others. We provide counseling as your business grows, and work closely with clients to smooth the path to success.

Offering IT development work for less. For a limited time Nova Horizons is offering a group of no more than four small businesses an IT development collaboration opportunity for on-going development work. This is an opportunity for a few small businesses to get the expert IT development resources they need to navigate the digital age; getting more of their development projects completed on time and for far less money. “Small businesses with big development projects need outside development expertise at below market rates.”

John Thwing The SBA Guy

With over 30 years in the industry, John Thwing, SVP Head of Lending, locally known as the “The SBA Guy” is a recognized Twin Cities lender that entrepreneurs know and trust.

Specializing in: Owner-occupied Commercial Real Estate Business Acquisition Expansion Partner Buyout Franchise Construction Financing 612-505-9751 sbaguy@21stcb.com 43 Main St. SE Suite 144 Minneapolis, MN 55414

jonny@novahorizons.io www.novahorizons.io 952.888.7541

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SEPTEMBER • OCTOBER 2021 UPSIZE

UPSIZE RESOURCE DIRECTORY LEADERSHIP DEVELOPMENT Prouty Project

MERGERS & ACQUISITIONS Lingate Financial Group

SBA LENDER Highland Bank

6385 Old Shady Oak Road, Suite 260 Eden Prairie, MN 55344 952.942.2922 | www.proutyproject.com Kari Baltzer | stretch@proutyproject.com

7575 Golden Valley Road, Suite 100 Minneapolis, MN 55427 763-546-8201 www.Lingate.com Greg Loeschke — Managing Principal

Troy Rosenbrook, President | 952.858.4810 Kim Storey, SBA Lending Manager | 952.858.4590 952.858.4888 | www.highland.bank

Our leadership development engagements and cohort-based leadership programs – Prouty L3 and Prouty i•will – link behavior to team performance in your workplace through the lenses of Leading Self, Leading Others and Leading the Business. We focus on STRETCHing participants to lead business within internal and international divisions. Give us a call or stop by.

Founded in 1945, Lingate Financial Group is a leading provider of lower middle market merger & acquisition advisory services, representing privately held businesses of all types with revenues of $5 – 50 million. Lingate helps business owners with market-based valuations, business sales, mergers, acquisitions, recapitalizations, and internal transitions among family members, partners and management. We get deals done.

MARKETING & PRINT SOLUTIONS OFFICE FURNITURE Allegra — Marketing • Print •Mail All Around Office Installation STRATEGIC Greater Twin Cities Area 1064 Gervais Ave Maplewood, MN 55109 SOLUTIONS FOR&YOUR Your local marketing print consultant Office # 651-340-4729 SUCCESS Cell # 651-239-6470 Arden Hills – 651.484.5000 Whether you need help developing a new marketing campaign, ideas to improve the Blaine –of763.780.0792 effectiveness an existing project or you just want to save time and money, we can help. Allegra is the Eagan – designed 651.645.1224 single source to assist organizations just like yours with: Eden Prairie – 952.835.2720 • Printing Services Minneapolis/Downtown – 612.332.8669 • Signs, Banners, and Posters • Complete Mailing Services St. Paul/Downtown – 651.222.8004 Design Center • Creative • Full Bindery Services Full service marketing & print communication expert. • Web-to-Print Solutions and Trade Show Graphics • Display A one-stop shop, to help you with a high quality project, Promotional Products • more... • Much, much,on delivered time & on budget.

We are a white-glove, COVID-friendly, fullservice installation company. We install all brands of commercial office furniture, including bathroom partitions, cabinets and counter tops. We also offer carrier services, decommission disposals, relocation services, warehouse storage, brand new installs and reconfigurations.

Founded in 1943, Highland Bank is focused on small business lending and is an SBA “Preferred” Lender, making us uniquely qualified to help your business obtain the financing it needs expeditiously. Work directly with the decision-makers who will treat you like a business partner. Member FDIC.

SBA LENDER 21st Century Bank 2335 Highway 36 W Suite 202 Roseville, MN 55113 612-372-2178 • www.21stcb.com At 21st Century Bank, we know what it takes for businesses to survive, grow, and prosper in today’s market. For over 100 years, we have been your community partner. A family-owned bank, with expertise in all SBA and conventional lending programs covering all stages of your business. We tailor solutions that respond to your unique business and banking needs.

FOR QUALITY AND SERVICE YOU CAN TRUST, CONTACT YOUR LOCAL ALLEGRA TODAY! Arden Hills Blaine Eagan

MARKETING

651.484.5000 763.780.0792 651.645.1224

MAIL

Eden Prairie 952.835.2720 Minneapolis/Downtown 612.332.8669 St. Paul/Downtown 651.222.8004

DESIGN

WEB

SIGNS

APPAREL

PROMOTIONAL

MOBILE

GROW OR DIE Move your business forward with investment capital generation, deep-level network connections and strategic refinement consultation from Brimacomb and Associates. We partner with emerging companies and professional services firms to offer unparalleled access to professional resources, executive suites and financing sources.

www.brimacomb.com 612.803.3169 • rick@brimacomb.com

UPSIZE SEPTEMBER • OCTOBER 2021

ADVERTISING SECTION

TIME TO SELL?

Year after year our closing record is 100% above the industry average Increase your odds of selling your business with Transitions In Business

Contact Sam Thompson, CBI, M&AMI 29 years as business owner and 9 years selling businesses sthompson@transitionsib.com • www.transitionsib.com 952-405-8470

www.upsizemag.com

UPSIZE RESOURCE DIRECTORY SBA LENDER Sunrise Banks

TRANSITION PLANNING KeyeStrategies

WEALTH MANAGEMENT JNBA Financial Advisors

David Reiling, CEO Phone: 651.265.5600 www.sunrisebanks.com Sunrise is headquartered in St. Paul, MN, and has four retail banking branches located in the urban core of Minneapolis and St. Paul. Its primary business lines include: Commercial Lending and Leasing, Relationship Banking, Treasury Management, Prepaid Cards, Fintech Partnerships, New Markets Tax Credits, and Small Business Administration Lending.

Minneapolis, MN Keyestrategies.com 763-350-5563 Julie Keyes, Founder/CEPA

8500 Normandale Lake Blvd., Suite 450 Minneapolis, MN 55437 952.844.0995 www.jnba.com Cärin Viertel, Director of Client Services

“KeyeStrategies LLC advises business owners in Transition and Exit Planning. Julie Keyes is both a Certified Exit Planning Adviser (CEPA) and Value Growth Adviser. She is also a faculty member for the Exit Planning Institute’s Global organization and President of its local Chapter.”

Being a small business we understand the needs of small business owners. And with 40+ years of experience in providing conflict-free advice, our proactive and integrated approach allows our multi-generational teams to put clients first when delivering customized financial life planning and investment strategies to help maximize their resources.

Member FDIC

STRATEGIC PLANNING Prouty Project

venture capital Brimacomb + Associates

WORKPLACE WELLBEING R3 Continuum

6385 Old Shady Oak Road, Suite 260 Eden Prairie, MN 55344 952.942.2922 | www.proutyproject.com Kari Baltzer | stretch@proutyproject.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

7825 Washington Ave. S., Suite 500 Bloomington, MN 55439 R3c.com 866-927-0184 toll free

We start with a blank sheet of paper to elevate your clarity on vision and purpose, create alignment in your strategy to achieve your vision and gain commitment to execute. What are your “market, product/service, people, and financial” strategies over the next 1-5 years? Can you articulate your strategic plan on one page? Join us in our Creative Think Tank to stretch your thinking and ignite your creativity.

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.

R3 Continuum (R3c) is a global leader in workplace behavioral health, crisis, and security solutions. We help enhance workplace behavioral health and performance, speed recovery from disruption, and maintain safety and security on all levels, with our best-practice, human-centered, and technology-enabled continuum of solutions.

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UPSIZE MINNESOTA is your source for the advice you need to help grow your business. By signing up for your FREE DIGITAL SUBSCRIPTION to Upsize, you will receive how-to advice six times a year in a full-page, easy-to-read format, complete with active links to relevant service providers and experts.

Follow this link to receive your FREE DIGITAL SUBSCRIPTION: bit.ly/3tBoCAV www.upsizemag.com

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SEPTEMBER • OCTOBER 2021 UPSIZE

BACK PAGE SBA tweaks EIDL program

he U.S. Small Business Administration (SBA) in September announced several tweaks to its Economic Injury Disaster Loan (EIDL) program aimed at helping small businesses and communities still suffering due to the effects of COVID-19. The biggest changes increase the loan limit from $500,000 to $2 million and offer two full years of deferred payments. The funds can be used for working capital or paying down debt. SBA officials also have ramped up outreach efforts to ensure the organization is connecting with the smallest business and those located in low-income communities potentially eligible for other lending programs, as well. Brian McDonald, district director for the SBA’s Minnesota District Office, shared some thoughts on the importance of the program and its changes. The conversation was edited for length.

Tellijohn: What do business owners need to know about the program and these changes? McDonald: Six policy changes went into effect September 8th. The big one increased the maximum loan. It had moved earlier this year from $150,000 to $500,000 and we still have money available. The program has been extended through the end of 2021 or until funds are depleted. Tellijohn: How does a company know if they qualify for these loans? McDonald: I think these policy changes simplify it. The changes give some flexibility for particular industries. There is a list of around 20 industry codes where, as long as they have fewer than 500 employees per physical location in fewer than 20 locations, they might be eligible for 28

this COVID EIDL program. Otherwise, as of the date of the application, if you’re a business, including an agriculture cooperative, aquaculture enterprise nursery, or property that is, that is considered small under the SBA size standards, you can be a sole proprietor with, or without employees and independent contractor. And there’s no size standard for a non-profit or faithbased organization of any size. It’s kind of a case-by-case situation. Tellijohn: Why were these changes made? McDonald: We’re just making sure we’re meeting the needs of small businesses. Now that the Paycheck Protection Program has pretty much ended, beyond working on forgiveness provisions, this is really the only available program. Right now, this is the agency’s area of focus, and the priority is to make sure businesses know about this COVID EIDL program and know that more businesses have access to it. More than 40,000 Minnesota-based businesses have received the COVID EIDL loan. And we have 530,000 small businesses here. So, less than 10 percent have accessed funds so far. Tellijohn: How does one apply? McDonald: You do apply directly through the SBA. If you’re new, you’re going to do it online on the sba.gov

UPSIZE SEPTEMBER • OCTOBER 2021

website. If it is your first time, then you complete the EIDL intake form at sba. gov/eidl. If you’re asking for an increase, you go back into your SBA portal and submit a loan modification through your existing portal. And there are different thresholds. If you need something immediate, seek less than $500,000. We’re not going to start processing applications for more than $500,000 until October 8th. There is no collateral needed for anything under $25,000 and no personal guarantee under $200,000. Tellijohn: Where can people go to learn more? McDonald: A great place to go would be sba.gov/MN where people can sign up for our newsletter. All of our contact information is on our district website there. Brian McDonald is district director for the Minnesota District of the SBA: 612.370.2324; minnesota@sba.gov; www.sba.gov/mn.

Brian McDonald www.upsizemag.com

A business law team that caters to the unique needs of small and mid-size business owners THE SCHINDEL SEGAL TEAM Jon Schindel

Leonard B. Segal

• Purchase and Sale of Businesses • Corporate Governance • Family Succession Planning • Estate Planning • Commercial Real Estate

• Compliance with Employment Laws • Non-Compete & Confidentiality Agreements • Anti-Harassment & Discrimination Policies • Employment Litigation

jschindel@schindelsegal.com

lsegal@schindelsegal.com

Kyle Moen

Sarah Porter

• Purchase and Sale of Businesses • Real Estate • Compliance and Risk Management • Corporate Governance • Succession Planning

• Corporate Governance • Mergers, Acquisitions, and Divestiture • Technology and Licensing Agreements • Residential and Commercial Real Estate

kmoen@schindelsegal.com C O NTA C T U S A D D R E S S : SchindelSegal, PLLC 5901 Cedar Lake Road Minneapolis, MN 55416

sporter@schindelsegal.com P H O N E : 952-358-7400

EMAIL:

info@schindelsegal.com

Investing in you.

Building Together Keeping a business growing requires creativity, passion, and hard work to achieve success. We want to partner with you on your journey. Our experts offer more than just banking services, we share our knowledge to help you build a stronger and more profitable future. Call, visit us online, or stop into any of our six convenient locations to learn more.

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