Ariana Feygin Ariana and Nancy Dahl Nancy and HERE’S to the EMERGING VOICES, the EMERGING to HERE’S and PIONEERS INNOVATORS, INDUSTRY
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MINNESOTA BUSINESS MINNESOTA The Business of Healing Health care systems are adding paints and JANUARY/FEBRUARY 2018 canvases to cancer treatment strategies. 12 Chain Reaction Two veteran VOLUME 28 ISSUE 1 franchisors share how owning a franchise can ignite the entre- preneurial spirit. 16 ScaleUp! Your Business Ariana Feygin WomenVenture and and Nancy Dahl Women’s Business Circle join forces to help grow female- owned companies. 22 WOMEN WHO LEAD HERE’S TO THE EMERGING VOICES, INDUSTRY INNOVATORS, AND PIONEERS WHO ARE PAVING THE WAY 27 MINNESOTABUSINESS.COM GIVE YOURSELF A RAISE. 10 ADVERTISEMENT BIZ PROFILE A Path to Ownership For Perfection Heating and Air Conditioning, the right vehicle was an SBA loan ordan Hopkins always dreamt of owning his own company. In June 2017, that Jdream became a reality when he pur- chased his employer of the past 13 years — Perfection Heating & Air Conditioning, Inc. – a Maplewood-based heating, ventilation and air conditioning (HVAC) business. Hopkins bought the company with the help of a Small Business Administration (SBA) 7(a) loan. Guaranteed by the federal agency, an SBA finance,” says Thwing. “But for most lenders, that closing is a shared responsibility,” Thwing loan offers low-interest rates, as well as more it’s not. An SBA loan tends to help the bank says. “In other words, it’s not just the bank. flexible terms than a traditional loan. agree to lending when there’s very little col- Everyone has to do his or her part. Closing lateral and there is a lot of goodwill.” only moves as fast as the weakest link.” The Purchase For Hopkins, the entire process took ap- Hopkins chose the SBA loan after consult- The Partners proximately six months from his initial inquiry ing with John Thwing, a senior SBA business Hopkins had worked at Perfection Heating to final closing. lending officer at Anchor Bank, a division of for more than a decade and had known “The process was remarkably smooth. Old National Bank. For the past 15 years of the owner for more than two. Not only did It went much easier than I expected,” says his nearly 30-year banking career, Thwing Hopkins have a great partner to work with Hopkins. has focused solely on SBA loans, earning him in his former employer, but he also had an Six months into his new purchase, Hopkins the pseudonym “The SBA Guy.” SBA expert on his side in Thwing. Just like notes it’s been a learning experience, but was Thwing says that when securing a loan, anything, more times than not, when you’re absolutely the right move for him. many people go straight to discussing the dealing with an expert, you’re going to have “Thanks to the economy and market, it’s just financing, but he counsels buyers and sellers a better experience. exploded. Our workload is way up,” Hopkins to look at the fundamental health of the “If an SBA loan is a right fit for the situation, says. “I’ve substantially beat every single company first, including its sales trends, you should be partnering with an SBA profes- month of sales since I purchased the business.” profitability and cash flow. sional,” Thwing says. “They’re likely to tell you “When you go to the mechanic and ask if it’s not a fit and may give you different or the mechanic to fix your car, you describe better choices to fund the transaction.” ANCHOR BANK what’s wrong. You don’t tell the mechanic A division of Old National Bank which tools will fix it,” says Thwing. “Always The Process HEADQUARTERS: St. Paul, MN upfront, people want to talk about the loans. In these kinds of transactions, the buyer INCEPTION: 1967 I say ‘Wait a minute. That’s the tool. I need to typically needs working capital to help fund CONTACT: John Thwing, The SBA Guy know what we’re trying to fix.’ ” the business that is not part of the original EMAIL: [email protected] EMPLOYEES: 335 Unlike most business loans, one of the pri- purchase price. Thwing helped Hopkins WEB: anchorlink.com mary assets of an SBA loan used to purchase think through obtaining purchase money a business is goodwill, which is intangible and working capital as part of the funding and has no collateral value. So, for example, package from the bank by building it into a PERFECTION HEATING & if someone is paying a million dollars for a long-term SBA loan. AIR CONDITIONING, INC. company that only has $100,000 worth of Thwing tells clients to plan for 60 days from HEADQUARTERS: Maplewood, MN assets, that additional $900,000 is essen- the signed purchase to the closing. That sched- INCEPTION: 2002 tially goodwill in the business’s established ule can be shorter for highly motivated parties LEADERSHIP: Jordan Hopkins market share and current client base. or longer for more complex circumstances. EMPLOYEES: 15 “For me, goodwill is a normal thing to “The one thing I like to remind people is WEB: perfectionheating.com MEMBER FDIC JANUARY/FEBRUARY 2018 Publisher’s Note VOLUME 28 ISSUE 1 WOMEN WHO MEAN BUSINESS Providing alamity Jane (née Martha Jane Canary) once C remarked, “I figure if a girl wants to be a exceptional legend, she should just go ahead and be one.” This issue is dedicated to all of the women — the true originals, the forward-thinkers and the up-and-comers service to — who just decided to go ahead and be legendary. There are a lot of these amazing women who grew up, women-owned live and work in our state. This issue is proof positive of that. Take, for example, the five women we interviewed businesses as part of our “Women Who Lead” feature. One is an Em- my-award winner, another a world-renowned explorer. Three more dreamed up, created and now produce the weekly podcast Borrowed Interest, which explores the advertising industry and its portrayal of women and people of color. In addition to those five exceptional individuals, we’ve added 48 well-deserving businesswomen to our “Women Who Lead” alumni. In choosing the women to honor, it was important to us to not only concentrate on those who have been capturing headlines, but also those who quietly and persis- tently lead each day. Our choices were based not only on what they have achieved professionally, but also on how they have empowered others to succeed. They serve as inspirations for future legends — including my daughters Meredith (11) and my own calamity Jane (9). I am honored to help tell these women’s stories. Are you a woman, or do you know a woman, who wants to grow a business? Check out our feature on WomenVenture’s ScaleUp! initiative. You’ll also want to review our Q&As with some remarkable executives, including Liwanag Ojala, Leslie Frécon and Sara Criger. And for those of you who have included “be my own boss” on their lists of New Year’s resolutions, be sure to read our article on franchisors. It’s only appropriate that our Women Who Lead issue was helmed by women: Megan Effertz, Minnesota Business’s new executive editor; Teresa Kenney, our new managing editor; our award- winning art director, Sara Chars; our projects coordinator, Heidi Branes; and our production director, Dianne Talmage — not to mention our event manager, Kelsey Copeland who produced our Women Who Lead networking event to celebrate the businesswomen in this issue. We’re very excited about our new editorial team. It embraces Minnesota Business’s vision to pro- vide “inspiration for growing companies” and is committed to bringing thought-provoking stories to the business community. Teresa has a long and successful history in publishing, and Megan brings an executive perspective to the editorial team and is deeply engaged in Minnesota’s business community. We look forward to Minnesota Business continuing to evolve and thrive — online, in print, and through our networking and educational events — with our dynamic new team. Thank you for sharing your time with us. If you have any news to share or story ideas to offer, be sure to send us a note or news release at [email protected]. Publisher www.sdkcpa.com [email protected] 612.332.5500 MINNESOTABUSINESS.COM 01 CONTENTS This Issue JANUARY/FEBRUARY 2018 VOLUME 28 ISSUE 1 From left: Amalia Nicholson, Shareina Chandler and Leeya Jackson of Borrowed Interest On the Cover Ariana Feygin (standing), founder of Ariana’s Kitchen, and Nancy Dahl, president and COO of Tastefully Simple. 34 PHOTO BY JOEL SCHNELL STARTUPS FEATURES EXECUTIVE VISION 05 MADE IN MINNESOTA 22 WOMEN’S BUSINESS CIRCLE 54 CLOSE UP Super fabrics and smarter pill boxes. ScaleUp! initiative serves as an accelerator When it comes to real estate, JoAnna Hicks is in her Element. 06 CHAI NEWS & VIEWS for women-owned businesses. Freweini Sium’s inspiring story is told in the mural 27 WOMEN WHO LEAD 56 INSPIRING WOMEN adorning her building. Across industries, women are taking charge Sara Criger is a change-maker in health care. and empowering others. 60 NAVIGATING CHANGE Liwanag Ojala is helping to bridge the communication gap. BUSINESS MATTERS 62 INTERVIEW 09 IN THIS SECTION Investing in women is Leslie Frécon’s business. Franchises by the numbers, chilly introverts and making resolutions (should you or shouldn’t you?). 10 NEGOTIATIONS Executive editor Megan Effertz shares five SNAPSHOTS strategies for getting the raise you deserve. 44 64 WORK REDUX | CARE 12 BUSINESS OF HEALING Mindee Pollen kicks off its Work Redux series with a Medical centers are introducing the arts into Kastelic panel discussion about the intersection of career patient treatments and health care training.