Upsize Minnesota September/October 2024 by Upsize Minnesota

“Focus on your core business. When looking at new systems, create a list of non-negotiable functions as well as dream features and compare programs side-by-side.”

— Heidi Andermack co-founder of Chowgirls

Tech stack on track

ALSO: ROBOTS ARE NOT THE ENEMY — UNDERSTANDING AND LEARNING FROM ARTIFICIAL INTELLIGENCE

HOW TO PROTECT IP AND WHY IT’S IMPORTANT CATCHING UP WITH PING YEH, CEO OF VOCXI HEALTH

ON ON AP APT T q TIME TO UPSIZE

TUESDAY, OCTOBER 15

Upsize Minnesota has been publishing content in magazine and online form for more than 20 years aimed at helping small businesses grow. Now, it’s time for “Upsize On Tap,” a series of small business educational and networking events that will be held at the Summit Brewery in St. Paul.

Our first such event will talk about exits. What has the M&A market presented in 2024 and what does our panel of experts think it will look like in 2025? And, let’s be honest, we’re all hoping to make a big exit someday — what does it take to get there? What are common mistakes companies make and how can business owners avoid them?

Cost: $20 in advance, $25 at the door, which includes the program and two drink tickets.

Location: Summit Brewery, 910 Montreal Circle, St. Paul

Space is limited! Register now at upsizemag.com/upsize-on-tap or scan the QR code.

Questions: contact Andy Tellijohn at atellijohn@upsizemag.com

3–3:30 networking

3:30–4:30 panel discussion

4:30–5 p.m. even more networking

SCAN TO REGISTER!

In business there are two types of ownership, the actual owning of a business, and the sense of responsibility one feels when working with that business. At Crown Bank we feel that same sense of ownership. That’s why we never take your successes, your future, your possibilities, or opportunities for granted. What can we make possible for your business?

September • October 2024 • Vol. 23 No. 5 • www.upsizemag.com

Cover story

Building the right tech stack can be a time-consuming, arduous process. But taking the time to pick tools that will function well in your industry and grow with your company can make a ton of difference in allowing you to focus on your core business rather than dealing with ongoing issues.

BY ANDREW TELLIJOHN

Cover photograph by Tom Dunn

BUSINESS BUILDERS

PAGE 4

Founder’s Forum:

MyWeels Founder Elam Baer chats with Upsize Founding Editor Beth Ewen about being able to jump in quickly when an opportunity arose in the rideshare market

PAGE 4

Staff list:

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

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

PAGE 6

COMPENSATION

Companies are shifting their compensation model to long-term incentive plans by Dyanne Ross-Hanson, Exit Planning Strategies

PAGE 8

INTELLECTUAL PROPERTY

How to protect your intellectual property and why it’s important by Wynne Reece, Bassford Remele

PAGE 10 LAW

Follow these tips to reduce your risk of ending up in litigation by Joseph Wetch, Lommen Abdo

PAGE 12 NETWORKING

Maximizing networking opportunities in a postCOVID world by Patrick Klinger, Agile Marketing Partners

PAGE 14

TECHNOLOGY

How to live with and learn from artificial intelligence by Nancy Lyons, Clockwork

COLUMNS

PAGE 22

CATCHING UP

StemoniX co-founder Ping Yeh was coming off several wins, including a Minnesota Cup victory, when Upsize met him. He’s now leading Vocxi Health, which is working on technology using human breath to detect disease

Activate your purchasing power with a business credit card that optimizes your cash flow. With the right card program, you’ll have the tools you need to purchase equipment, hire that new employee or take on the building expansion you’ve been dreaming about.

Maximize your earnings –and your time.

Scan the QR code or visit businessbanking.usbank.com to schedule your spend analysis.

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

HOW TO REACH US

To subscribe visit www.upsizemag.com/subscribe

With story ideas

email Andrew Tellijohn, atellijohn@upsizemag.com

To advertise email Andrew Tellijohn, advertising@upsizemag.com

To order reprints backissues@upsizemag.com

To order extra or back issues email backissues@upsizemag.com

To suggest Web resource links, info@upsizemag.com

BROAD AXE MEDIA

P.O. Box 23238 Richfield, MN 55423 Main: 612.827.5290 www.upsizemag.com

MyWeels founder on catching a fast-moving ride

Elam Baer faced a big problem when Uber and Lyft threatened to leave town over a Minneapolis City Council ordinance dictating pay for drivers this spring. What he did next—create a rival rideshare service in just weeks called MyWeels—is an impressive example of leaping before you look.

Baer has epilepsy and depends on rideshare services for his 20-minute daily commute to work. “So, to me, it really struck home. At a professional level, I had just sold the largest company that I owned (Corporate Technologies),” he said. “So, I personally had some time to put against it myself.”

“I decided to make a run for it. And run is the right word. We had to move really, really fast to get ready to launch,” he said. “We had our app developed in really four weeks, so by the middle of April. We had some drivers we actually paid to get test drives. We had on May 1st, we got regulatory approval in Minneapolis to provide service and we launched right away.”

plant that has machinery that breaks shell eggs and sells tanker loads of liquid eggs. And I’ve got a business that manufactures large-scale industrial wood saws. That is a very, very assetheavy and engineering-heavy business,” he said.

His startup MyWeels is different— born in a hurry from Lyft and Uber’s threatened pullout and attracting multiple other would-be competitors. The Minnesota Legislature ultimately passed a compromise that placated the giant rideshare services. But Baer believes MyWeels has something better to offer drivers: a “favorite driver” program that allows them to build their own customer base.

Baer’s main company is North Central Equity in Eden Prairie, which for three decades has invested in some 20 companies. “We deal in what, to put it nicely, are distressed companies. Many of them are on the verge of bankruptcy and we buy them and try to fix them up,” Baer said.

Corporate Technologies “was on the verge of going under at the time we got it,” 16 or 17 years ago, he said. “We kept growing it, and we just treated it as though we were never going to sell it. And in the end, a private equity firm that likes to buy nice businesses” made a handsome offer, the terms of which he declined to specify.

Other businesses he owns are unusual. “We have an egg-processing

“Our difference is that we are not taking Uber and Lyft on in a head-on way. What we are doing is building a platform where individual drivers can build their own business on top of it,” he said. “You get 50, 75, 100 people who have named you as their favorite driver, and you’re kind of a mini-rideshare driver unto yourself.” He figures MyWeels will turn profitable by the end of next year.

“I’ve been thinking about this for years in my mind. So, when I got the chance to do it, it required an incredible amount of focus to do it fast enough to be relevant,” Baer said. “I’m uniquely able to do that because I’m able to command resources that other people in the company can’t.”

Ride on, MyWeels, and all the other entrepreneurs ready to jump when needs arise.

—Beth Ewen founding editor bewen@upsizemag.com

BUILDERS banking

The pandemic provided business owners with a unique opportunity for strategic contemplation, allowing them to consider how to emerge stronger and how to prepare the company for their ultimate departure.

ing it, they understand how reward is earned. And the more they help create, the more they share in what they produce. They become “growth-partners.”

Manage your cash flow in a few simple steps

The new paradigm in key employee retention plans

Both scenarios require a focus on operational efficiencies, value enhancement and the training and recruitment of key talent. The last is particularly crucial, as key talent plays a vital role in driving improvements, efficiencies and growth initiatives.

Craig Veurink

by Dyanne Ross-Hanson

TIPS

1. Business owners looking to retain, motivate and recruit key talent need to focus on innovative longterm incentive plans.

1. Set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future

2. The move toward recruiting talent to perform a role such as integrator has shifted pay away from a behavior focus and toward compensation based on achieving a targeted outcome, away from incentivizing and toward value sharing.

2. Put cash flow before profits. It might seem counterintuitive, but if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix

3. Incentive plans must be easy to understand and, for longterm plans based on annual performance, should be tied toward profit, which aligns everyone’s efforts toward growth and enterprise value.

3. Secure credit ahead of time. Most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected

Given the critical role of key talent, owners must carefully consider how to best compensate them. Salary, bonuses and benefits are obviously important. They must be competitive. More than that, key talent’s compensation package must be compelling and elicit an owner “mentality” to achieve desired results.

No longer paid for a job title, key talent is often looking to participate financially in results achieved. As such, owners looking to retain, motivate and recruit key talent need to focus on innovative long-term incentive plans.

A new paradigm

Small businesses are usually founded by entrepreneurs who have a unique vision and a passion that drives them to work late hours, take chances and believe in what they’re doing. But, just as Thomas Edison once said that genius is 1 percent inspiration and 99 percent perspiration, successfully running a small business requires rolling up your sleeves and putting in significant time on more mundane, day-today matters.

The new approach to long-term incentive plan design requires a shift in perspective and focus.

1. Focus on value-creation

You can be driven, impassioned and have a great idea to fill a niche or serve customers in new ways, but if you don’t attend to the details of the business, you can create for yourself a heap of problems.

They develop a sense of stewardship about protecting shareholder interests and apply an ownership mindset toward decision making. It’s a mindset shift that creates a unified financial vision for growing the company, thereby negating the familiar “entitlement” mentality that often accompanies ill-designed incentive plans.

2. Simplicity is a must

“When do I start to turn a profit?” Rather than wonder, set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future.

2. Put cash-flow management before profits

The incentive plan must be easy to understand first and foremost. For long-term plans, which are paid based on annual performance, rewards should be primarily tied to profit. This is the measurement that not only aligns everyone’s efforts toward the only variable that fuels growth, but also has a direct link to enterprise value.

4. Today’s marketplace indicates that incentive award potential must reach at least 25 percent of a key performer’s salary, with 50 percentplus being commonplace, after a fair return on shareholder capital.

4. Consider using a payroll service. Having the professionals take care of collecting payroll taxes saves them an enormous amount of time, helps streamline their cash flow

Here, we’ll look at one of the most important of these business details: managing cash flow. Especially for early startups, knowing how much cash is coming in and going out, and accurately forecasting sales and expenses, is key to maintaining your company’s health.

5. These new philosophies recognize the importance of shifting operational responsibility away from owners in order to increase the likelihood of a successful ownership transition in the future.

5. Schedule your payments. Don’t go delinquent but do divide your payments into categories such as “must pay,” “important to pay” and “flexible payment terms.” This can help keep sufficient cash on hand.

No matter where you are in your business, keep these things top of mind:

Instead of hiring key talent to fill a position, they are now being recruited to perform a role, such as an “integrator.” As such, they are not being paid for their behavior (time spent, duties fulfilled, actions accomplished); rather they are being paid for achieving a desired result—for producing a targeted outcome. This has led to a shift away from the idea of “incentivizing” toward a philosophy of “valuesharing.”

1. Know when you will break even

Every small business owner keeps at the front of their mind the question:

Value-sharing is directly linked to value creation. Once key performers understand how value creation is defined for the business and what their role is in creating and sustain-

This might seem counterintuitive, since profits are how you survive. However, if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix. Keep things organized and well managed so you can be ready for whatever success comes your way.

There are nine different incentive plan types that owners can employ to reward long-term value creation. Three of them are ways to share equity, three are different types of phantom stock plans and three are reward approaches that are tied to other financial measures (which impact business value).

3. Secure credit ahead of time

Many organizations need help determining which type of plan is suitable for their companies. This is the role of an independent consultant hired to direct the process and see it through implementation. And to keep plan construction simple.

3. Meaningful and deferred payout

Incentive awards must be meaningful and compelling. When it comes to value-sharing opportunities, owners need to adjust their thinking if they expect to attract/ retain great talent and treat them

Too often, small business owners wait until they need it to secure credit. This can cause a lot of unnecessary stress, or worse. Talk to experienced business owners in your area and industry ahead of time to know how much revenue you’ll need up front. Take a realistic look at the situation and plan. You might have sufficient cash reserves or a rich uncle who is only a call away, but most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected.

like partners.

Today’s marketplace indicates that incentive award potential must reach at least 25 percent of a key performers’ salary, with 50 percentplus being commonplace, after a fair return on shareholders capital. Less than these thresholds are more consistent with discretionary or periodic cash bonuses, which eludes the “growth partner” mentality necessary to influence behavior and/or recruit key performers.

The goal is to create a mentality where owner and key performers are working in sync toward a shared financial vision, and as partners, apply an ownership mindset toward all their decision-making.

Ideally, your key performer’s compensation package is made up of both short-term and long-term incentive-based pay. Both are tied to the attainment of predetermined financial benchmarks that reflect metrics an owner wants to focus on. Those benchmarks may even be identical, with a portion of the annual award paid in cash (shortterm) and the balance (a majority in this author’s opinion) at some point in the future, determined by the owner.

Time for a reality check. If given the choice, most key performers would prefer cash to a future promise of compensation. Here is where an owner must share a compelling vision for the company’s future. As a retention tool, long-term incentive plans looking out four-plus years are critical. This element often gets overlooked.

4. Communication

As important as previous design elements are, this one is even more so. How an owner communicates

both the purpose of their incentive plan as well as the mechanics cannot be underestimated. If plan benchmarks and performance expectations are not clear or believable, the plan will fail. All the modeling in the world will not make any difference if key performers do not believe the results can be achieved, including their financial participation in that journey.

Final thoughts

As owners (and their advisory teams) contemplate the challenges and opportunities in today’s quest for key talent, they are reevaluating business strategy and their own value proposition. Owners are recognizing the importance of shifting operational responsibility away from themselves to increase enterprise value in order to increase the likelihood of a successful ownership transition. At the same time, they are being cognizant of the need for prudent cost-containment measures that do not hinder their ability to move forward with confidence.

Long-term incentive plans, rooted in value-creation, offer a “self-financed” solution. They benefit shareholders by creating a unified financial vision, reinforcing roles, outcomes, strategic priorities and ultimately value creation. They benefit key performers by putting them in control of their earnings while simultaneously sharing in the value that they help create.

During a time when competition for top talent is at a zenith, creative pay structure must not only be compelling, it must be irresistible. Therefore, shifting from traditional incentives to value-sharing models is not only logical but also strategically imperative in the current competitive landscape.

Contact: Dyanne Ross-Hanson is president of Exit Planning Strategies LLC: 651.426.0848; drh@exitplanstrategies.com; www.exitplanstrategies.com; in/dyannerosshanson

“Shifting from traditional incentives to value-sharing models is not only logical but also strategically imperative in the current competitive landscape.”

intellectual property

Manage your cash flow in a few simple steps

by Craig Veurink

Inspiration or infringement: Protecting your intellectual property portfolio

by Wynne Reece

TIPS

1. Set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future

1. Thoroughly examine your branding elements, digital platforms, digital content and assets, products, processes, software and anything else that may qualify for protection, and decide which forms of IP protection are appropriate for each.

2. Put cash flow before profits. It might seem counterintuitive, but if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix

In today’s rapidly evolving business landscape, intellectual property (IP) is a vital asset for, dare I say, all businesses, offering a strategic edge and fueling growth.

Entrepreneurs spend years of ideating, envisioning and collaborating with trusted friends and family, thousands of hours, and exorbitant financial resources to bring an idea to life. When the public sees or experiences some bit of it, this enormous investment is rarely what they see; rather they are often just left inspired by the experience that investment has meant for them. In comes the issue of protecting your IP portfolio in a time where inspiration is too commonly wielded to justify infringement.

It is hard to imagine that one could feel so entitled to take for themselves what someone else built, or worse, to do so knowingly and in recognition that others respect and value it. But to every ideator, entrepreneur and creative mind’s dismay, self-justification appears exceedingly common, and thus we must understand and protect.

When inspiration crosses into infringement, it’s your right and, in some instances, your responsibility, to fiercely defend your IP. As a guardian of originality, you not only protect your legacy but also champion the integrity of innovation itself.

protection for different types of IP and can serve as a shield against competitors, creating a pathway to prevent or shut down the replication of proprietary technologies and designs. It also is an asset that can hold significant value, which in turn can create real damages when infringed upon, as an IP portfolio is recognized by investors and traditional funding sources as value in driving business success.

How to build your IP portfolio

“When do I start to turn a profit?”

If you are reading this, chances are you have already begun building your IP portfolio, given the immediate and common law rights that can attach to developed IP assets, even before you formally register them. Papering your IP portfolio will help you identify what these various assets are.

Rather than wonder, set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future.

2. Put cash-flow management before profits

To build a robust IP portfolio, many begin by conducting an IP audit to identify their existing and potential IP assets. “Audit” is a buzzy word that causes many to recoil, but in this instance, it can manifest as more of a think tank, in which you (and perhaps your core team, along with legal) thoroughly examine your branding elements, digital platforms, digital content, digital assets, products, processes, software and anything else that may qualify for protection. Once identified, the next step is to decide which forms of IP protection are appropriate for each asset.

2. Building an IP portfolio is not a one-time activity but an ongoing process that requires regular monitoring and updating to reflect changes in the business and technological landscape.

3. Secure credit ahead of time. Most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected

3. When defending your IP, legal action can range from ceaseand-desist letters to litigation, depending on the severity of the infringement, and should be strategically considered with your legal counsel.

Consider using a payroll service. Having the professionals take care of collecting payroll taxes saves them an enormous amount of time, helps streamline their cash flow

What it means: Building an IP portfolio

3. Secure credit ahead of time

No matter where you are in your business, keep these things top of mind:

4. Entrepreneurs should seek legal counsel to assess potential infringement cases and ensure their IP rights are upheld.

Building an IP portfolio involves systematically ideating, developing, identifying, acquiring and managing IP rights that align with a company’s business goals. For many entrepreneurs, this means not only protecting their innovations and brand identity as it is traditionally thought of (e.g. name, logo, slogan), but also using their IP portfolio as a tool for market differentiation, revenue generation, strategic partnerships and other growth opportunities.

Patents: Protect inventions and processes that offer new and useful functionalities. Entrepreneurs should consider filing for patents early in the development process to safeguard their innovations.

1. Know when you will break even

An appropriately managed IP portfolio contemplates various measures of

Every small business owner keeps at the front of their mind the question:

Trademarks: Protect brand names, logos and slogans that distinguish a company’s goods or services. Registering trademarks ensures exclusive rights to use these identifiers in the marketplace.

Copyrights: Protect original works of authorship, such as software code, designs, and marketing content. Copyright registration provides legal backing against unauthorized use or reproduction.

Trade Dress: Protect your product, service or brand’s overall commercial image, including its look and feel, through strategic registrations and implementing strict confidentiality agreements and security measures.

Trade Secrets: Protect confidential business information that provides a competitive edge, such as proprietary algorithms or manufacturing processes. Maintaining trade secrets involves implementing strict confidentiality agreements and security measures.

Building an IP portfolio is not a onetime activity but an ongoing process that requires regular monitoring and updating to reflect changes in the business and technological landscape, but when done well can be an asset in waiting for whenever an opportunity presents itself or is found.

Policing intellectual property: Inspiration vs. infringement

Policing intellectual property is a critical responsibility for entrepreneurs, ensuring that their IP assets are not infringed upon by others. However, distinguishing between inspiration and infringement can be challenging in our fast-paced business economy, where ideas are constantly evolving and intersecting. And, when infringement is clear, the choice in how and when one chooses to police it can also call for critical analysis: Who is the infringing party? What can you decipher about their personality? What are they infringing on? Is there consumer confusion? Are they aware of it? Are they innocent (potentially unknowing)? Are they unapologetically infringing? Have they used your personal name? The list goes on. Legal action can range from cease-and-desist letters to litigation, depending on the severity of the infringement, and should be strategically considered with your legal counsel.

When inspiration becomes infringement

While inspiration is a natural part of

the innovation process, it crosses into infringement when an individual or company unlawfully replicates or exploits another’s protected IP without permission, and even more so when the two uses are for a same or similar business, good or service.

This includes, but is not limited to, copying patented technologies, imitating trademarks, replicating or using close modifications of brand colors, brand feel, brand design, digital design, slogan or reproducing copyrighted content. And the kicker that is most often overlooked is that the standard does not require exact replication. Rather it contemplates if consumers are confused by the similarity to a point that they may think that the two uses are related. If consumers are confused as to the origin of two uses or two brands, there is a strong footing to assess the existence and level of infringement and the damages that the infringed upon party is entitled to.

Entrepreneurs should seek legal counsel to assess potential infringement cases and ensure their IP rights are upheld.

The imperative of building and protecting your IP

Building an IP portfolio is not merely a defensive strategy but a proactive approach to driving business success and innovation. For businesses of all sizes, a well-managed IP portfolio serves as a foundation for growth, offering protection, revenue opportunities and a competitive edge in a crowded market. As the pace of technological advancement accelerates, which can fuel the entitlement to ‘be inspired’ by others, the importance of securing and policing intellectual property cannot be overstated. By investing in the development and protection of their IP assets, businesses are committing to ongoing excellence, creativity and strategic foresight, ensuring that a startup’s most valuable assets are both protected and leveraged to their fullest potential.

Contact: Wynne Reece is a shareholder at Bassford Remele: 612.376.1606; wreece@bassford.com; www.bassfordremele.com; in/wynnecsreece

“Building an intellectual property portfolio is not merely a defensive strategy but a proactive approach to driving business success and innovation.”

Wynne Reece Bassford Remele

BUSINESS BUILDERS banking

Strategies for minimizing litigation risk

by Joseph Wetch

Manage your cash flow in a few simple steps

by Craig Veurink

TIPS

Litigation can be a costly and time-consuming process that can significantly impact a business’s financial health, reputation and overall operations. Therefore, it is crucial for businesses to proactively manage litigation risk to minimize the potential negative consequences. This article provides practical tips businesses can use to manage litigation risk and navigate complex legal disputes.

Litigation risks can arise from various sources, including contract disputes, employment matters, intellectual property issues and more. Businesses of all sizes and industries are susceptible to litigation risk and the consequences can be severe, including financial losses, reputational damage, disruption of operations and diversion of management resources.

qualified attorneys who specialize in relevant areas of law and have experience in handling litigation matters.

Legal counsel can provide guidance on contract drafting and negotiation, compliance with applicable laws and regulations, dispute resolution strategies and risk assessment.

Maintain quality records

Maintaining accurate and organized records is critical for businesses to defend themselves in litigation. Businesses should keep comprehensive records of all relevant transactions, communications and activities, including contracts, emails, letters, meeting minutes, financials and other relevant documents.

“When do I start to turn a profit?”

Address potential legal issues promptly

1. Set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future

Effective litigation risk management involves taking proactive steps to identify, assess and mitigate potential litigation risks. Here are some practical tips for helping you do so.

1. Develop clear and comprehensive policies and procedures that can be communicated to all stakeholders to ensure they understand their roles and responsibilities.

2. Put cash flow before profits. It might seem counterintuitive, but if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix

2. These issues are complex and ever-changing. Obtaining qualified legal counsel can provide guidance on contract drafting and negotiation, compliance with applicable laws and regulations, risk assessment and more.

3. Secure credit ahead of time. Most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected

3. Keep comprehensive records of all relevant transactions, communications and activities, including contracts, emails, letters, meeting minutes, financial records and other relevant documents.

4. Consider using a payroll service. Having the professionals take care of collecting payroll taxes saves them an enormous amount of time, helps streamline their cash flow

4. Being proactive in identifying and addressing potential legal issues can help prevent them from escalating into litigation.

Sound policies and procedures

Rather than wonder, set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future.

5. Train employees on legal compliance, risk identification and early reporting of potential legal issues to ensure they are aware of the need to mitigate risk.

Having clear and comprehensive policies and procedures in place can help prevent litigation and ensure that employees, contractors and other stakeholders understand their roles and responsibilities. Businesses should establish policies and procedures related to contract formation, performance and termination; employment practices, including hiring, firing and workplace conduct; intellectual property protection, including patents, trademarks and copyrights, among others.

These policies and procedures should be documented, communicated and reviewed periodically to ensure their effectiveness and compliance with applicable laws and regulations.

No matter where you are in your business, keep these things top of mind:

Seek legal advice and review contracts carefully

1. Know when you will break even

Obtaining legal advice is crucial for businesses to identify and address potential legal issues before they escalate. Businesses should work closely with

Every small business owner keeps at the front of their mind the question:

Being proactive in identifying and addressing potential legal issues can help prevent them from escalating into litigation. Regular monitoring and assessment of potential legal risks can enable businesses to identify early warning signs of potential disputes and take prompt action to mitigate them.

2. Put cash-flow management before profits

This can include conducting regular audits, risk assessments and compliance reviews to identify areas of concern. Additionally, promptly addressing any legal issues that arise can help prevent them from becoming more significant.

Strong document, information management practices

3. Secure credit ahead of time

Having robust document and information management practices can be critical in managing litigation risk. Businesses should establish protocols for the creation, storage, retention and disposal of documents and information in compliance with relevant laws and regulations. This includes properly documenting all business transactions, communications and activities, as well as implementing appropriate data privacy and cybersecurity measures to protect sensitive information from unauthorized access or breaches.

Alternative dispute resolution methods

Alternative dispute resolution (ADR) methods, such as mediation or arbitration, can be effective means of resolving disputes outside of the traditional court system. ADR can be less time-consuming, less costly and less formal than litigation, and can allow businesses to have more control over the outcome of the dispute. Therefore, businesses should consider including ADR clauses in their contracts, which can require parties to attempt to resolve disputes through mediation or arbitration before pursuing litigation.

Maintain insurance coverage

Insurance can be essential in managing litigation risk. Businesses should regularly review their insurance policies and ensure that they have adequate coverage to protect against potential legal liabilities. This may include general liability insurance, professional liability insurance, directors and officers (D&O) liability insurance, product liability insurance and other specialized coverages depending on the nature of the business.

Maintain a strong legal team

Having a strong legal team can be a critical asset in managing litigation risk. This may include in-house counsel, outside counsel or both, depending on the needs of the business. Building a strong legal team involves selecting qualified attorneys with expertise in relevant areas of law and a track record of successful litigation management.

Early assessment, strategic planning

Early case assessment and strategic planning are essential steps in managing litigation risk. When a business becomes aware of a potential legal issue or dispute, it is crucial to engage in early case assessment and strategic planning to effectively manage the situation. This involves carefully evaluating the facts and circumstances of the case, assess-

ing the potential risks and liabilities and developing a strategic plan to address the situation proactively.

Good business relationships

Building and maintaining good business relationships can also play a significant role in managing litigation risk. Businesses that have positive relationships with their customers, vendors, partners and other stakeholders are more likely to resolve disputes amicably and avoid litigation. Good communication, transparency and professionalism in business relationships can help prevent misunderstandings or disagreements from escalating into legal disputes.

Legal and regulatory changes

Laws and regulations are constantly evolving and businesses need to stay informed of any changes that may affect their potential litigation risk. This includes keeping current with relevant laws and regulations in their industry and changes in case law and legal precedents that may impact their liabilities.

Employee training

Employees play a crucial role in managing litigation risk and businesses should provide adequate training and education to their employees on such matters. This includes educating employees on the importance of legal compliance, risk identification and early reporting of potential legal issues. Employees should be trained on company policies and procedures, document management, confidentiality requirements and the handling of legal matters.

Conclusion

Litigation risk is an ever-present concern for all businesses. It is crucial to be proactive in managing litigation risk to protect assets, reputation and bottom line. By following these steps, businesses can minimize their exposure to legal disputes.

Contact: Joseph Wetch, 612.336.9335; jwetch@lommen.com; www.lommen.com; in/josephwetch

www.upsizemag.com

“It is crucial for businesses to be proactive in managing litigation risk to protect assets, reputation and bottom line.”

Joseph Wetch Lommen Abdo

BUSINESS BUILDERS banking

“You

know everybody!”

BUSINESS BUILDERS

Networking in a post-COVID world

by Patrick Klinger

Manage your cash flow in a few simple steps

by Craig Veurink

TIPS

It’s a refrain I often hear from friends and business associates because of the expansive network I’ve established. With nearly 8 billion people on the planet, I still have plenty of good souls to meet — a process delayed by a worldwide pandemic that canceled events and sent us all home to work. But now the world has mostly returned to normal and even for seasoned networkers it’s time to start rebuilding our networking muscles.

have to be challenging if we remember that each of us has value and is worth getting to know.

If you’re looking to expand your network, here are a few tips that will help you connect with anybody:

1. Set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future

When I was a young man attending college at Winona State University, I arrived in the Twin Cities for a summer internship knowing exactly no one. Raised in a working-class family in rural Winona, I had visited Minneapolis-St. Paul only once on a sixth-grade field trip. Navigating the one-way streets of downtown Minneapolis for a kid who grew up on gravel roads was hard enough. Establishing relationships with people who all seemed smarter and connected was downright terrifying. I was completely out of my element, ready to head back to a smaller community where the people and surroundings were familiar.

1. Say yes whenever you can. Accept invitations that come your way. They may lead to big projects.

2. Put cash flow before profits. It might seem counterintuitive, but if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix

2. Be authentic. The most meaningful connections are those that are genuine and connect on a deeper level. Stay present in the moment. Ask questions. Stay engaged with the person with whom you’re chatting.

3. Secure credit ahead of time. Most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected

3. Networking doesn’t have to be transactional. Offer your time, knowledge, advice, skills or expertise to others generously and without an expectation of anything in return.

4. Consider using a payroll service. Having the professionals take care of collecting payroll taxes saves them an enormous amount of time, helps streamline their cash flow

4. From Capital Club to rotary clubs and chambers of commerce, find groups where like-minded people meet and make connections.

1. Be willing to invest your time. Time is a precious commodity to a small business owner who is CEO, COO and CCBW (chief cook and bottle washer). Remember that individual connections can be more valuable than any marketing campaign. Every client I’ve had since establishing my company in 2013 has been a result of my network. My relationships have also allowed me to receive benefits, media coverage, access to premium events and unique experiences for clients that likely wouldn’t have been otherwise possible.

2. Put cash-flow management before profits

5. Once you’ve made a connection, follow up with a personal email, text or even a handwritten note. Express your appreciation for time you spent together.

Stepping out of my comfort zone felt daunting and overwhelming but I decided to tag along with my boss whenever presented with an opportunity to meet new people. I was clumsy in conversation, intimidated by the older and successful professionals I met. Whether out of pity or because they, too, had once been awkward young people trying to find their place, many showed unexpected kindness. Some were even willing to share their wisdom and experiences over lunch or a beer. Those early meetings were the start of a network that has been tremendously important to both my life and career.

No matter where you are in your business, keep these things top of mind:

1. Know when you will break even

Every small business owner keeps at the front of their mind the question:

We all know those who walk into a room with the grace of a ballet dancer. They seem to always have the right look and words for every occasion. Unfortunately, most of us aren’t quite so polished. Business is hard enough without adding small talk with a room full of strangers. While it’s easier to stay with the familiar, creating a network doesn’t

But connections don’t happen in a bubble. Start by inviting someone to coffee or lunch. Accept an invitation when it comes your way. One of the biggest projects in my career arrived after a coffee meeting with a former colleague that held no expectation of any business. Many business experts encourage us to say “no” more often. I encourage us to say “yes” whenever possible because it may open a door for something new, exciting and beneficial to happen.

3. Secure credit ahead of time

2. Be authentic. Have you ever conversed with someone at an event and they’re looking over your shoulder the entire time in search of a more “important” person to speak with? Yep, happens to me, too. Dale Carnegie, the author of the renowned book “How to Win Friends and Influence People” once famously said, “You can do more business in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.” The most meaningful connections are those that are genuine and con-

nect on a deeper level. Stay present in the moment, listen intently, ask questions and stay engaged with the person with whom you’re chatting. You’ll be remembered for it.

3. Be willing to help others Networking doesn’t have to be transactional. Offer your time, knowledge, advice, skills or expertise to others generously. Do it without an expectation of anything in return. Chances are good things will come back your way. “The true measure of a man is how he treats someone who can do him absolutely no good” is the quote that has accompanied my email signature for a decade. Though I often fail to live up to it, the quote is a daily reminder that I have the power to make a positive difference.

4. Be willing to participate in groups designed to foster connections. I created the Capital Club in 2014 to bring together people who share a common interest in sports. The group meets monthly over breakfast to hear from notable sports and community leaders about topics that include how to build successful teams, inspire and motivate employees, persevere in difficult times and create a winning environment. While fraternal organizations may not be as ubiquitous as they once were, there are still ample opportunities with a local chamber of commerce, Rotary Club or a similar group where valuable connections with like-minded people can be made.

5. Be responsive and grateful. Once you’ve made a connection, follow up with a personal email, text or even a handwritten note. Express your appreciation for time you spent together. Send a LinkedIn request that will allow you to share updates about your

business and learn about theirs. My personal preference is to send a LinkedIn request only after feeling like I’ve established some sort of personal connection or have mutual connections that can be referenced.

6. Be prepared. Before meeting someone new, research their business, career and other information online. It shows that you care enough about the meeting to do some homework. It also helps you ask meaningful questions and have a plan for how you might help each other.

7. Be kind. Kindness may be the most underrated skill in business. I was that kid in elementary school looking for a place to sit at lunch. Many decades later, I still haven’t forgotten the simple act of another student I barely knew inviting me to join him. When you see someone who looks alone or a little uncomfortable at an event, take a chance and engage them in a conversation. Even if it leads nowhere, chances are you made someone feel good. And that feels good.

As a small business owner, your network can be incredibly important to growing your company and influence. A solid network allows you to learn about new opportunities, gain feedback, find suppliers, develop collaborations and establish credibility. These interactions can result in you learning, growing and performing at a higher level. You’ll also likely make valued friends. Now go meet someone new!

Contact: Patrick Klinger is president of Agile Marketing Partners: 612.366.0419; patrick@agilemarketingco.com; www.agilemarketingco.com; in/Patrick-klinger

“As a small business owner, your network can be incredibly important to growing your company and influence.”

Patrick Klinger Agile Marketing Partners

technology

BUSINESS BUILDERS

Don’t fear the robots

by Nancy Lyons

Manage your cash flow in a few simple steps

by Craig Veurink

TIPS

1. Set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future

1. Artificial intelligence falls short when it comes to replicating nuanced human skills, such as emotional intelligence, empathy, creativity and ethical discernment.

2. Instead of running in fear of AI, focus on how it can augment our abilities and reveal new opportunities.

2. Put cash flow before profits. It might seem counterintuitive, but if you aren’t organizing your cash flow, you’ll run into problems that a profitable quarter might not be able to fix

As artificial intelligence (AI) becomes increasingly pervasive, it’s natural to feel uneasy about its potential impact on our jobs and livelihoods. People are understandably nervous about AI. Headlines often scream about the impending robot takeover, stoking fears that AI will render human workers obsolete.

Customer service representatives worry that chatbots and automated systems will replace them. Manufacturing workers see robots assembling products faster and more accurately than humans. Even creative professionals like writers and designers feel the pressure as AI begins to generate content and artwork.

The concern isn’t just about losing jobs: it’s about losing purpose and value in a world where machines can perform tasks that once required human intellect and skill. A 2019 study by McKinsey & Company estimated that by 2030, up to 800 million jobs could be automated globally. This statistic alone can cause real anxiety.

should focus on how it can augment our abilities and reveal new opportunities because that’s more of a possibility than it replacing us altogether.

Here are a few ways AI can improve our professional lives:

“When do I start to turn a profit?”

Rather than wonder, set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future.

• Enhanced decision-making: AI can process and analyze data at lightning speeds, providing insights that help humans make better decisions. For example, in finance, AI algorithms can predict market trends, but strategic decisions still require human intuition, experience and market condition assessment.

2. Put cash-flow management before profits

3. AI can process and analyze data at lightning speeds, providing insights for better and faster decision making, though strategic decisions still need human intuition and experience.

3. Secure credit ahead of time. Most small business owners should secure as much credit as possible. This is the best way to be prepared for the unexpected

4. History has shown that technological advancements often create new job categories. Roles such as AI ethicists, data scientists and AI trainers are emerging that require a blend of technical and human-centric skills.

4. Consider using a payroll service. Having the professionals take care of collecting payroll taxes saves them an enormous amount of time, helps streamline their cash flow

5. Commit to lifelong learning: AI is evolving rapidly and so can we. Think of AI as your new nerdy best friend who’s always ahead of the curve.

Yet, the notion that AI will completely displace humans overlooks one really important truth: despite all it can do, AI can’t replicate our nuanced and deeply human skills. Emotional intelligence, empathy, creativity and ethical discernment are areas where humans naturally excel and AI falls short.

No matter where you are in your business, keep these things top of mind:

1. Know when you will break even

In healthcare, AI can analyze vast amounts of data and assist in diagnosing conditions more accurately than the human eye. However, it cannot replace the comforting presence of a compassionate nurse or the skillful assessment of an experienced doctor who considers not just the data but also patients’ emotional and psychological state.

Every small business owner keeps at the front of their mind the question:

Instead of running in fear of AI, we

• Efficiency and productivity: AI can handle repetitive and mundane tasks, freeing human workers to focus on more complex and creative aspects of their jobs. In marketing, AI tools can manage data analysis and campaign optimization, allowing marketers to concentrate on crafting compelling messages and content.

3. Secure credit ahead of time

• New job creation: History has shown that technological advancements often create new job categories. The rise of AI is no different. Roles such as AI ethicists, data scientists and AI trainers are emerging, requiring a blend of technical and human-centric skills.

Consider some real-world situations where AI has demonstrated its potential as a powerful tool for growth, hopefully diminishing fears along the way.

• Agriculture: Farmers have embraced AI-driven technologies like drones and automated tractors to

monitor crops, analyze soil conditions, and manage resources more efficiently. These magical tools help increase yields and reduce waste, ultimately supporting farmers in their core focus.

• Retail: In the retail sector, AIpowered recommendation systems enhance customer experiences by suggesting products based on individual preferences. This boosts sales and allows employees to provide more personalized service, focusing on customer relationships rather than just inventory management.

• Education: AI is transforming education by offering personalized learning experiences. Intelligent tutoring systems can adapt to each student’s learning pace, providing tailored support that complements the efforts of teachers, whose roles in guiding and inspiring students cannot be replaced.

Ultimately, we control the two primary ways to win in an AI-driven world: embracing adaptability and continuous learning. These human capabilities will determine our personal success and position us to lead in this evolutionary moment.

Here are some ways to learn and adapt with AI:

• Commit to lifelong learning: AI is evolving rapidly, and so can we. Think of AI as your new nerdy best friend who’s always ahead of the curve. How do you want to keep up? What new skill are you curious about? Machine learning, data analysis or maybe how to teach your AI to tell better jokes? Focus on an area that makes sense given your interests and work. Perhaps start with a hobby interest as your

entry point for AI research. It might feel less threatening.

• Merge tech and humanity: Our creativity, empathy and critical thinking are superpowers. AI can handle the grunt work, but it can’t replicate the quirky, heartfelt and downright brilliant ideas that come from the human brain. How are you combining these human qualities with AI in your work? Maybe you’re using AI to analyze customer feedback while you dream up the next big marketing campaign. Or perhaps AI handles the numbers while you focus on building meaningful client relationships. The possibilities are endless.

• Stay informed and curious, not alarmed: Understanding AI helps us use it as a powerful tool. What’s your favorite resource for keeping up with AI trends? Many people want to share their knowledge: everything from YouTube videos to podcasts can get you up to speed on terminology and advancements. Whether it’s tech blogs, online courses or a stack of good books, staying informed demystifies AI, making it less of a scary, looming presence and more of a cool, helpful sidekick.

AI is not the enemy. By focusing on our unique human skills and learning to be the drivers of AI, we can navigate this technological pivot point with confidence and curiosity rather than fear. The robots are here, but they’re not here to take over; they’re here to help us be better.

“Instead of running in fear of AI, we should focus on how it can augment our abilities and reveal new opportunities because that’s more of a possibility than it replacing us altogether.”

Nancy Lyons Clockwork

Contact: Nancy Lyons is CEO and co-founder of Clockwork and author of Work Like a Boss: A Kick-in-the-Pants Guide to Finding (and Using) Your Power at Work: 612.746.1850; nancy@clockwork.com; www.clockwork.com; in/nancylyons

Doingitright

Building the right tech stack takes time and patience, but done right, pays dividends

The catering company Chowgirls has about 50 full-time employees and another 150 who are seasonal. In its early days, the company functioned largely with an internally created technology system.

But as it has grown, its technology needs have become more complex — and necessary — as keeping track of everything from staffing events to logging customer feedback grew more difficult.

That’s caused some challenges in recent years, because early on, the company struggled to find a software that fit its specific needs for scheduling and timeclock.

“Some smart staff created a database system to help manage that,” says Heidi Andermack, co-founder and CEO of Chowgirls Catering. “It was really cool because we could customize it

to be exactly the way we wanted it to be. But eventually, as technologies grow — and having only one IT person to support that — it grew to be challenging.”

Growth supersedes risk

In addition to the solo IT person and increasing complexities, increasing issues associated with the need to protect employee and customer data pushed Chowgirls to start looking for a new product.

Staff has known the founders of Clockwork for many years and Chowgirls had gotten help from the staff there with an event management software several years earlier.

So, the companies began evaluating the existing database, discovering some shortcomings, “learning that we’re not in the business of software development,” Andermack says, citing as one

by Andrew Tellijohn photographs by Tom Dunn

Heidi Andermack, CEO and co-founder of Chowgirls, sought the assistance of a local digital agency to help rebuild its tech stack after it outgrew an internally created system that worked when the company was small

COVER STORY

“Think about it like the foundation of a building. The tech stack is the thing that holds everything together and keeps things running smoothly.”

NANCY LYONS, CLOCKWORK

specific example a scheduling system that was cumbersome to adjust once schedules had been made. “We were putting a lot of energy into maintaining this system that had some elements that were outdated.”

It’s been an ongoing process. Clockwork, in 2022, had helped guide the selection of a learning management system for a new training program. Clockwork staff interviewed Chowgirls on needs and found a handful of potential products that they tested.

“That was our introduction into a full, comprehensive way to evaluate what systems are appropriate,” she says. This year, Clockwork helped Chowgirls document its existing customized system, including evaluating the quality and security of data.

Clockwork, and its subsidiary Tempo that works with small businesses, helped research scheduling programs for catering companies — there were a few options out there specific to the industry — and, as that process played out, it provided the impetus to change to a multiple platform system. So, now, Chowgirls operates with QuickBooks, Google, Slack, which were already in the company’s repertoire, but also with a scheduling program that integrates with its payroll company and with its event management catering software (Total Party Planner).

“It’s streamlining our payroll process a bit and it also is making it very easy for our employees to communicate about their availability and for our scheduler, it makes her process a lot quicker to schedule people and change schedules,” Andermack says. “It has a communication platform with it, with staff texting capabilities. That was something we couldn’t do before.”

Defining a ‘tech stack’

A tech stack, says Nancy Lyons, CEO and co-founder of Clockwork, is a grouping of the tools and technologies a business uses to operate.

“Think about it like the foundation of a building,” she says. “The tech stack is the thing that holds everything together

and keeps things running smoothly.”

That typically can include hardware, such as computers, servers, smartphones; software, such as Microsoft Office or QuickBooks for accounting; platforms, the big systems used to customize functions of your business, like Shopify for commerce; and integrations, which are how those tools talk with each other.

Lyons has companies start by thinking about what they need in order to function well, identifying the must haves.

“What are the essential tools of your business,” Lyons says. “What do you need to put in place to work more efficiently? What tools will help you keep your promises to your customers and stay healthy? This includes everyday activities like customer management, accounting, communication, sales and marketing.”

She suggests prioritizing simple products that are easy to use and that will grow with your business. Try before you buy.

“You don’t need to be a software engineer and you don’t need to employ one,” she adds. “Look for tools that make your life easier, not more complicated.”

Do your research — talk to other business owners and others in your network, Lyons says, and look to the web for real product and experience reviews. Try out free versions or trial periods for software, as well, so you can get a sense for whether it delivers on its promises.

Common mistakes

Lyons and others say many businesses dive into purchases too quickly or they feel the need to buy every tool out there.

“They fall in love with overly complicated systems because they think that more tech means more productivity,” Lyons says. “I’ve seen this strategy backfire more often than I can share and it just leads to confusion and inefficiency.”

Business owners also often skip the training sessions that typically come with and are needed in putting new technology to use.

“Even the best solutions are useless if your team doesn’t

COVER STORY

know how to use them,” Lyons says. “It’s essential that you anticipate the energy and effort necessary to implement new tech. Work to put a plan in place for onboarding and training.”

Companies should also begin with the long-term in mind, says Garrio Harrison, founder of Forage, which operationalizes marketing and sales to drive growth. If you’re a small business or start-up but have significant growth in store, start your technology search with the idea of finding products that not only synch together well, but that will grow with you as your company — and with it your needs — expand.

“A couple mistakes that people make — and I made these mistakes myself — are buying solutions for where you are now without thinking about where you’re going to be,” he says.

Programs like LinkedIn Sales Navigator and Hubspot, for example, work well together. Then a generative artificial intelligence tool for content creation, such as Claude or Chat GPT, will help build marketing and sales plans. Many teams will want a project management tool like ClickUp or Asana. Something for communication like Slack, QuickBooks for finance and budgeting and an HR tool like Gusto. And he’s a fan of Loom for internal communications.

“If you’re getting started that would be what I would recommend,” he says.

Get help

A new and improved tech stack under construction at Chowgirls is allowing the company to spend more time on its core business and less overcoming outdated systems.

Those programs, Harrison says, not only work together well, but they are widely enough used that there are agencies outside the technology providers themselves available to educate users, if need be.

“Support and third-party consultants are there to help you,” he says.

While technology companies are aplenty, they’re all different. Make sure you seek references and make sure they have experience working with other small businesses — ideally in your industry, Lyons says, adding that pricing and timeline transparency are key, as well.

“Consider someone who understands the unique challenges of your business, not just technology in general,” Lyons says. “Ask for case studies and references from other small businesses or businesses with similar growth challenges.”

COVER STORY

Changing on the fly

Blaine-based Revolution Deck Systems had to change up its tech stack on the fly after company officials noticed a lack of labor available for deck construction companies who build custom decks.

That led Revolution Deck Systems to create an app that would make it easier for people who wanted decks but didn’t want to wait to do it themselves, says Brian Stanslaski, director of operations.

“We have to cut all the components because we can’t rely on a homeowner, someone who is not experienced, to cut

CONTACT:

HEIDI ANDERMACK is co-founder and CEO at Chowgirls Catering: 612.203.0786; info@chowgirls.net; www.chowgirls.net; in/heidiandermack

GARRIO HARRISON is founder of Forage: 612.423.1900; garrio@garrioharrison.com; in/garrioharrison

NANCY LYONS is CEO and co-founder of Clockwork: 612.746.1850; nancy@clockwork.com; www.clockwork.com; in/nancylyons

BRIAN STANSLASKI is director of operations at Revolution Deck Systems: brian@mydeckkit.com; www.revolutiondecksystems.com; in/brian-stanslaski-pmp-a-csm-98031071

Revolution Deck Systems used its existing technology suite, including Microsoft Excel, and the expertise of an app designer to build a tool allowing customers to create 3D deck designs using a smartphone.

things properly,” he says. “We set up some processes on the front end using our expertise to make life easier for them.”

A lot of customers want decks, but they typically have a hard time estimating, designing and getting the right materials ordered. They lack the time, the expertise and manpower to do it properly, Stanslaski says.

The app drew on existing software from Hover, a measurement software that allows people to take pictures of a house. It renders a wireframe of the building down to the 32nds of an inch, so Revolution Deck Systems can get all of its exterior house measurements, from roof to windows to siding, just through the use of the owner’s smart phone. The owner sends the photo to the app and then, with a finger, designs a three-dimensional aluminum frame deck.

From there, the customer has the option of receiving a kit with the parts or having a contractor build the deck. So, how did Revolution build the technology? It was a combination of off-the-shelf technology the company has used throughout its existence and some custom work done with an app developer.

It started with the estimator program, which is basically several different equations and widgets in a Microsoft Excel spreadsheet, Stanslaski says.

From there, he says, the company found an app development company, Bluestone Apps, in Tennessee, to program

the front and back ends of the app using Revolution Deck System’s estimator.

The product, two years in the works, is in a testing stage. The company provides the estimator tool to the contractors it works with and does classes training people on how to build decks and do carpentry work “so they can go and start their own construction company, their own deck building company,” he says. “Then we give them the tools, this worksheet, this app, so they can successfully estimate a project. It allows them a ton of flexibility and an opportunity they may have never had.”

Stanslaski thinks there will ultimately be additional revenue generating opportunities from this through ads from concrete, landscape and other professionals through the app. The company is considering an expansion into modular housing, as well, shipping out to people the materials pre-built in a factory so they can be built in a fraction of the time.

“We’re learning so much every day,” he says. “You’re more competitive this way, it looks more professional, especially when you can turn it around so quick. Everybody nowadays wants instant gratification. If you can be standing right in front of them and show them exactly what they’re going to

get and say this is the price, you don’t have to send them an estimate two weeks from now, when they’ve already forgotten about you and moved on to something else.”

Chowgirls still working on it

So, building the right tech stack takes the right team, some patience and time. Andermack at Chowgirls says the company’s technology upgrade isn’t complete yet. The company is still transferring to new systems and analyzing software options. But she knows it was the right decision to make this move because now the company can focus on what it does best.

“Focus on your core business,” she says. “When looking at new systems, create a list of non-negotiable functions as well as dream features and compare programs side-by-side in a grid chart.”

Narrow down to your top few choices, do interviews and demos and get a trial test period. And take your time. “Play with it vigorously,” she says. “We’re doing it in phases based on the highest need was to start with that scheduling software. … There’re pain points with any change you make, learning curves. At first it can be nerve wracking or frustrating, but that’s the case with any change in life really.”

catching up

by Andrew Tellijohn

StemoniX founder now heading up breath-using Vocxi Health

When Upsize talked to Ping Yeh in late 2019, he was on a winning streak. His company, StemoniX, was the defending Minnesota Cup champion and had also just been named one of five companies to win a MEDy Award, which recognizes companies creating new solutions to redefine health and medicine, from Singularity University’s Exponential Medicine.

He was the co-founder of StemoniX, the company whose idea was born from his own bout with cancer, when his initial treatments left him with long-term side effects he thought could have been alleviated

Ping Yeh co-founded StemoniX after his own bout with cancer in an effort to shift medical research away from animals and toward the company’s stem cell-created mini human brains.

with better testing of treatments.

Essentially, the Maple Grove-based company made tiny human brains from stem cells that could be used in testing medications instead of animals with the goal of providing better test results.

“We figured out how to produce, at scale, and manufacture small human brains about a half-a-millimeter in size,” he says. “And, so, at scale, we use that as a research platform to discover new medicines for various diseases.”

So, envision testing new meds for Parkinson’s disease, Alzheimer’s and more.

“We served half the top 25 pharma in the world and revenue started increasing,” he says. “We were focused on raising a Series B in late 2019, early 2020.”

Then COVID hit.

“We had to scramble big time,” he says. “No one wanted to risk their lives by going into the lab and interacting with somebody who might have COVID. So, all these pharma companies just shut down their labs and they went into scramble mode.”

Companies began focusing only on mission critical projects and, while StemoniX was on its way toward achieving success, it was a few years away. The company got a Paycheck Protection Program loan to keep staff and stay alive.

Play the hand you’re dealt

It worked. In March 2021, StemoniX merged with Cancer Genetics Inc. to form Vyant Bio. Yeh became chief innovation officer but left a year later. The StemoniX subsidiary

catching up

has since been acquired by AxoSim Inc., which develops and applies human biomimetic platforms for neurological diseases.

So, it wasn’t necessarily the exit Yeh dreamed about, but he also takes pride in having seen the company through its first rounds of growth and an unprecedented global pandemic that pushed many out of business. His employees retained their jobs and his investors did well.

In his eight years, he lived the birth, growth and transition of StemoniX, “which very few people get to experience,” he says, adding that the company is still helping move medical research away from animals and toward these micro brains made from skin and stem cells.

“One would always love to have an exit where it becomes a multi-

Vocxi Health

Description: Maker of patented diagnostic smart mask that measures disease via human breath

Headquarters: Arden Hills

Founded: 2022

CEO: Ping Yeh

Employees: 9 employees, 1 contractor Website: www.vocxihealth.com

billion-dollar company,” he says. “It doesn’t mean the core technology won’t eventually get there because it’s still going. What I was proud of was leading a team through the pandemic and caring enough about investors to not quit and take it to an exit.”

And Yeh landed alright, as well, and he acknowledges owing a lot of that success to StemoniX. He’s now CEO at Vocxi Health, an Arden Hillsbased spinoff of Boston Scientific with nine employees, a contractor and a technology that can measure chemicals from a person’s breath and diagnose diseases like COVID, Alzheimer’s, lung cancer and many more.

“I’m super grateful for the team, because it takes an incredible team to do something like that,” he says. “There’s no way I’d be sitting as CEO of a spinoff from Boston Scientific if I hadn’t had those 9, 10 years. There’s no way.”

Through the U of M

The opportunity at Vocxi came through connections at the University of Minnesota, which was looking for seasoned entrepreneurs to take a look at technologies they were working to get on the market. He got to interact with a half-dozen different teams, but with Vocxi, he got to

a pandemic-driven acquisition. He is now CEO of Vocxi Health , which uses human breath to measure for disease.

meet the founders and top executives at Boston Scientific — many of whom agreed to move into retirement or different roles if he’d take over.

“We had to have a lot of things come together, like the intellectual property and the team’s willingness to retire early,” Yeh says, adding that Boston Scientific threw in a bunch of equipment and office space. The company officially spun off into its current iteration in September 2022. “We didn’t have to buy a single chair,” he adds.

He’s thrilled with the move. The technology — using digitized breath captured on an array of 120 sensors to understand an individual’s health — is fascinating and has life-changing

potential.

“The old way of doing things is, if you had a million combinations or 10 million combinations of something you’d need 10 million sensors, because each sensor would be trying to measure its one thing,” he says. “That’s not efficient. … These are quantum mechanical-based sensors. The

Contact: Ping Yeh is CEO of Vocxi Health: info@vocxihealth.com; www.vocxihealth.com; in/ping-yeh-innovation

StemoniX co-founder Ping Yeh led that company through

breath interacting with our sensors is happening at quantum mechanical level.”

And it uses a circuit board the size of a credit card connected to a phone. People breathe into the encased plastic card-like machine and the data gets sent to the cloud, gets analyzed and can go to a physician.

Advice and other things

In addition to Vocxi, Yeh has also been advising other entrepreneurial tech companies. Advice he often passes along to them includes the need for creativity and thinking outside the box.

“Resourcefulness is always greater than resources,” he says, as is continuing to fine-tune your product. “Iterative improvement is really important.”

Small businesses, he adds, may lack resources, but they do not

lack the ability to be nimble. They should adapt more quickly to necessary changes — including the use of artificial intelligence.

“AI is going to touch every industry,” he says. “Just make sure you know you’re on top of the AI revolution.”

Master the simple stuff — culture, values, mission and vision. And, perhaps most importantly, never give up. “The game isn’t over,” he says. “I’ll call it the game. This journey isn’t over until there is no more energy left in it. Startups don’t die for lack of money, they die for lack of energy. If someone’s so passionate about it, people work for free and get it done.”

“Startups don’t die for lack of money, they die for lack of energy. If someone’s so passionate about it, people work for free and get it done.”

Ping Yeh, VocxiHealth

UPSIZE RESOURCE DIRECTORY

BANK

Crown Bank

6600 France Avenue South, Suite 125

Edina, Minnesota 55435

Ph: (952) 285-5800

www.crown-bank.com • Jeff Wessels, President & COO

At Crown Bank, we want to be partners in your possibilities. Because possibilities are what the future is made of. From something as personal as growing your savings, to something as big as growing your business, our bankers and staff have the expertise and energy to partner with you to make that happen.

BUSINESS BROKER

Sunbelt Business Advisors

Peggy DeMuse, pdemuse@sunbeltmidwest.com

651-288-1627

Lisa Meyer, lmeyer@sunbeltmidwest.com

612-361-4918

www.sunbeltmidwest.com

Carlson Partners

Tim Olsen, SIOR | (651) 558-1400

tolsen@carlsonpartnersllc.com www.carlsonpartnersllc.com

U.S. Bank

Allison Hinton

Email: allison.hinton@usbank.com

Phone: 619.341.4332

At U.S. Bank, we help you earn more without asking you to do more. That means more money, more purchasing power and more expertise, so you can focus on running your business. Let us find the best business credit card for you and turn your hard work into easy money.

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.

Carlson Partners, founded in 2011, is a private commercial real estate firm specializing in strategic planning for industrial, office, and retail clients. We offer expert guidance in lease negotiations, acquisitions, site selection, build-to-suit planning, and portfolio management across North America, aligning business goals with real estate solutions.

CFO SERVICES

Integrated Consulting

Craig Siiro

612-669-7703 (c)

craig.siiro@integrated-consulting.net www.integrated-consulting.net

Integrated Consulting delivers Chief Financial Officers to small businesses on a fractional basis. From projections to cash flow tools to assistance with all things financial. We provide 30 years of expertise on a small business budget.

Show Content

• Best Practices to Grow Enterprise Value

• Business Owners Share their Exit Stories

• Learn what it takes to exit on your terms!

• Guests share need-to-know advice for lucrative outcomes

• Episodes are all under 30 minutes

Subscribe on Apple, Spotify, Google, iHeart, Stitcher

Sponsorship Opportunities!

Download episodes and order the book! https://www.poisedforexit.com/

DIGITAL MARKETING

Aktion Interactive

Phone: 612-448-9670

Email: tony@aktioninteractive.com

Website: https://aktioninteractive.com

Aktion Interactive is a full-service digital marketing agency that partners with you to provide the assistance you need with every aspect of your digital strategy, from building a new website to driving more traffic & leads from your existing site to developing a custom app.

HR Solutions for Small Business

Get and keep the people you need to grow the business you want

Attracting and retaining the right people will fuel your growth Take the guesswork and headache out of the people side of your business with help from Optima HR Solutions

From people strategies to operations and tactics, we work along side you as an extension of your team Take the HR hat off your head and let us help you win with better results through people

w: optimaadvisoryllc.com

p: 612 547 5759

e: sschad@optimaadvisoryllc com

UPSIZE RESOURCE DIRECTORY

EXIT STRATEGIES

Exit Planning Institute

Twin Cities Metro Area chapter 763-208-9119

exit-planning-institute.org

Jessica Hawthorne, Administrator admin@e-officeconnection.com

LEADERSHIP DEVELOPMENT

Prouty Project

6385 Old Shady Oak Road, Suite 260

Eden Prairie, MN 55344

952.942.2922 | www.proutyproject.com

Bethany Krueger | stretch@proutyproject.com

MERGERS & ACQUISITIONS

Lingate Financial Group

7575 Golden Valley Road, Suite 100 Minneapolis, MN 55427

763-546-8201 www.Lingate.com

Greg Loeschke — Managing Principal

Through the Certified Exit Planning Advisor (CEPA) credential, the Exit Planning Institute provides professional advisors with the content, tools, and training needed to gain more access to business owners, strengthen relationships, and become the most valued advisor.

Bassford Remele

100 South 5th Street, Suite 1500 Minneapolis, MN 55402 www.bassford.com

612.333.3000

Bassford Remele is in the business of meeting legal challenges. Our trial lawyers solve disputes for corporate clients in Minnesota and across the nation and we have a depth of experience in many industry areas. When businesses seek solutions, from the conference room to the courtroom, they seek Bassford Remele.

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

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.

MEDIA

KYMN Radio

Rich Larson, General Manager rich@kymnradio.net

507-645-5695

For nearly 60 years, KYMN Radio has been a friend to Northfield, Rice County and Southern Minnesota. Our listeners count on us for news, weather, community based programming on local arts, local politics, the Twins, basic frivolity, and an eclectic music playlist that goes on for days. Listen FM 95.1, AM 1080 and at kymnradio.net.

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 marketbased valuations, business sales, mergers, acquisitions, recapitalizations, and internal transitions among family members, partners and management.

MERGERS & ACQUISITIONS

True North M&A

Lisa Meyer, lmeyer@sunbeltmidwest.com; 612-361-4918 Peggy DeMuse, pdemuse@tnma.com; 651-288-1627; www.tnma.com

We help business owners achieve their exit goals. True North Mergers and Acquisitions serves companies with $5 million to $150 million in revenue and their strategic advisors. We specialize in business owner exits, business valuations, and acquisition services in the lower middle market. If you are considering exiting your company, contact our team today.

UPSIZE RESOURCE DIRECTORY

NETWORKING CLUB

The Capital Club

www.capitalclubmn.com

The Capital Club (CAPS) is a sports-centered, business-networking group designed for established and emerging leaders in the Twin Cities. Members gather monthly over breakfast to hear from notable sports figures and accomplished individuals who share their journeys, stories and strategies for success. For more information, contact Patrick Klinger at patrick@ agilemarketing.com.

PEER GROUP

Coalition9

PO Box 834

Lester Prairie, MN 55354-7832 www.coalition9.com

Aaron Eggert | aaron@coalition9.com

Leadership is lonely. We build your tribe. Coalition9 memberships provide peer advisory groups with an emphasis on personal and professional growth. As a member, you will experience interactive learning while connecting to the resources and people that will help you be your best. Our vision: Changing business nine leaders at a time™

STRATEGIC PLANNING

Prouty Project

6385 Old Shady Oak Road, Suite 260

Eden Prairie, MN 55344

952.942.2922 | www.proutyproject.com

Bethany Krueger | stretch@proutyproject.com

VENTURE CAPITAL

Brimacomb + Associates

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

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.

KeyeStrategies

Minneapolis, MN

Keyestrategies.com 763-350-5563

Julie Keyes, Founder/CEPA

“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.”

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.

WEALTH MANAGEMENT

JNBA Financial Advisors

8500 Normandale Lake Blvd., Suite 450 Minneapolis, MN 55437

952.844.0995 www.jnba.com

Cärin Viertel, Director of Client Services

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.

Business Broker

Cell: 612-801-2299

Direct number: 612-361-4918

Email: lmeyer@sunbeltmidwest.com

Business B roker

Cell: 612-730 - 8921

Direct number: 651-288 -1627

Email: pdemuse@sunbeltmidwest.com