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Connection Member Profiles INSIDE THIS ISSUE: Thought Leadership in 2015 ....................... 1-2 THE Snapshot: Pancheros ........................................2 Legislative Update ............................................3 Connection Member Profiles ...............................................4 Minnesota Marketplace ............................... 5-6 MSCA President’s Letter ..................................7 NEW! CREDC teams with MSCA .............................8 Click on article STARRSM Awards Recap .............................9-12 title to link direct Calendar of Events .........................................13 to that page! MSCA Leadership ..........................................13 JANUARY 2015 FEATURE ARTICLE Thought Leadership in 2015 Adapted from July 24, 2014 blog by Doug Stephens, RETAIL PROPHET At last month’s STARR Awards, make. In fact, Wall Street Journal loss of sales, fight your customer’s If you would incoming president Tony Barranco, tech columnist Geoffrey Fowler right to share, or find a way to like to read challenged MSCA members to wrote that owning a 3D printer participate and benefit from this the full be thought leaders. With ongoing was like having an “infinite dollar new economic sector. blog post shifts in demographics, economics store on your desktop.” Frustrating from Doug and technology, there are plenty news if you’re a dollar store but OPPORTUNITY: Facilitate THE SHARING Stephens, of ways to reimagine, reinvent and equally discouraging if you sell retail OF What YOU SELL. Outdoor clothing follow this reinvigorate how we do business. household items, home décor, toys manufacturer Patagonia recently link: Several months ago, Retail Prophet or replacement parts. The bottom shocked industry analysts when http://www. Doug Stephens created a short-list line is that this new consumer it not only ran an ad campaign retailprophet. of pivotal issues facing the industry, capability represents a category five encouraging consumers to re-use, com/blog/5- along with related suggestions on hurricane for retailers of all kinds. repair and resell their existing coming- how to address them head-on: Patagonia clothing, but also created crises-in- OPPORTUNITY: REINVENT YOUR an online marketplace to facilitate the-retail- CHALLENGE #1: You will replace your BUSINESS MODEL. Consider that the sale of used clothing between market/ staff with technology. Academics Carl while the record industry was customers. Did it adversely impact Frey and Michael Osborne predict suing teenagers for copyright sales? No, just the opposite; sales that up to 47% of jobs in the United infringement, Apple was building of new Patagonia merchandise States will be replaced by technology iTunes, and in the process forever increased by 16% following the within the next two decades. Bottom altered how music was bought and campaign. It would appear that the line, retailers will substantially sold. So, while 3D printing may brand’s willingness to lose sales in reduce the number of people they threaten a percentage of your sales, order to respond to market demands T employ. it may also represent an opportunity ultimately paid off. for you to innovate a new business OPPORTUNITY: IDENTIFY WHICH model for the products you sell. CHALLENGE #4: There is a new level of ROUTINE, data-HEAVY OR REPETITIVE transparency. Recently, food blogger TASKS ARE BETTER PERFORMED BY CHALLENGE #3: People will share what Vani Hari (A.K.A. Food Babe) made TECHNOLOGY. Then, pinpoint areas you sell. In 2013, revenues within the headlines when she posted an article where outstanding people add a new sharing economy were estimated to revealing that because beer is not level of rapport, empathy, humanity be $3.5 billion and growing at 25% overseen by the Food and Drug and delight to the customer each year. So, whether you’re a car Administration, brewing companies experience. Plan accordingly. rental company, hotel brand, hard are consequently exempt from goods retailer or anyone else trying having to publish the ingredients CHALLENGE #2: People will 3D print to sell something that can otherwise in their beer. She went further to what you make. Depending on what be shared, you’re going to face a suggest that some of the chemicals you sell, customers may soon be able choice, as the level of collaborative and additives that could legally be THOUGH LEADERSHIP to download and print what you consumption increases: accept a – continued on page 2 january | 2015 FEATURE ARTICLE CONTINUED: Thought Leadership in 2015 used in beer are, let’s just say, less to being proactively transparent beliefs. Some will use their energy than appetizing. Within a couple of on such issues. Examine your to defend the past, while others days of Hari’s post, both Anheuser- organizational communications will dedicate time and resources to Pioneer the Busch and Miller-Coors both practices with respect to how you pioneering the future. Let’s consider future by publicly posted the ingredients receive and respond to inquiries, adopting the second approach as we looking for in some of their most popular complaints, and criticism, and look for ways to lead in 2015. n new ways to products, much to the amazement how these instances might be lead in 2015. of analysts. Information about better handled to improve existing what you make, how you make it, customer satisfaction and even who you hire and how you treat draw new customers to your brand. employees is readily available via a Inventory your organizational skills host of online sites and mobile apps. at communicating quickly and openly in social channels. OPPORTUNITY: TURN TRANSPARENCY While the current onslaught of INTO A COMPETITIVE ADVantage. change provides plenty to be Explore aspects of your product, concerned about, it also brings company or industry that have enormous opportunity for retailers traditionally been held from public with the courage to challenge view. Consider the potential upside industry, category and corporate SNAPSHOT: PANCHEROS MEXICAN GRILL DESCRIPTION: Fast, casual Mexican restaurant / franchise LOCATIONS: 1 in Golden Valley, 1 in Bloomington GROWTH PLANS: 15 units in greater Twin Cities area total/TYPICAL SF: 2400 square feet TYPICAL SITE CHARACTERISTICS: End cap or freestanding buildings REAL estate REP: Tom Baker, KW Commercial 651-262-1100 ADD’L INFO: Looking for sites in power centers with a high daytime population, large traffic counts and incomes of $55,000+ WEBSITE: www.pancheros.com/realestate 2015 MSCA ADVERTISING AND SPONSORSHIP OPPORTUNITIES The 2015 Advertising AND Sponsorship menu is now available on our website. Please be aware of this when creating your 2015 budgets! Please consider taking advantage of these great opportunities. LIKE US ON FACEBOOK FOR great updates AND INFORMation! WWW.MSCA-ONLINE.COM HTTPS://WWW.FACEBOOK.COM/MSCAONLINE.COM 2 january | 2015 FORECAST Legislative Update by Rich Forschler & Sonnie Elliott, FAEGRE BAKER DANIELS The November 2014 election saw taxes including the repair and MSCA’s priorities for the 2015 the re-election of DFL Governor maintenance of business equipment, session include continued vigilance Mark Dayton and new Republican telecommunications equipment to any proposed increases in majority of the House. The Senate purchases and warehousing and property taxes or expanded local was not up for election and thus storage services. They also passed government authority for financing remains in DFL control. Twenty an increase in the minimum wage transportation projects. MSCA will six new legislators were elected and and the Women’s Economic Security join other business organizations there will be new faces and new Act (WESA), which broadly impacts that support additional funding MSCA’s dynamics with divided government Minnesota businesses. for transportation. We will also priorities once again. work with other business coalitions for the 2015 The 2015 legislative session regarding changes to the estate tax session The November budget forecast begins on January 6th and and to provide more transparency include showed a revised projected surplus transportation funding will be with regard to local government continued of $556 million for the current taking center stage. Legislative budgeting. n vigilance... biennium. Based on existing law, leaders and the Governor have $183 million of those funds must identified funding transportation be allocated to the state’s budget as a priority issue. There may also reserve, leaving a final budgetary be changes proposed to various balance of $373 million for 2014- taxes, and further conforming of 2015. The 2016-2017 biennium the state tax code to the federal. The forecast showed projected surplus of Governor has also indicated that he $1.037 billion. would like to see additional funding The 2014 legislature repealed for early education scholarships and three business-to-business the child-care tax credits. 3 january | 2015 MEMBER PROFILES KELLE LANG STAATS JOEL PETERS JOB TITLE: Director of Marketing JOB TITLE: Project Manager AREA OF FOCUS: Marcomm/PR/Business AREA OF FOCUS: Retail and Multi-Family Development YEAR JOINED MSCA: 2014 YEAR JOINED MSCA: 2014 GUARANTY COMMERCIAL TITLE, INC. FENDLER PATTERSON CONSTRUCTION, INC. FIRST JOB IN THIS INDUstry AND FOR HOW LONG? This is actually my FIRST JOB IN THIS INDUstry AND FOR HOW LONG? Project Engineer. first venture in the commercial real estate industry, but I have 18 months enjoyed 25 years as a marketer in a related field: residential new WHat KEEPS YOU IN THIS BUSINESS? First, the people
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