Kenosha groups create umbrella Web site

Three economic development organizations in Kenosha County have joined together to create an umbrella Web site, www.kenoshaarea.com. "More and more, the Internet is the place to go for business leaders or individuals seeking information about a particular city or region," said Mary Galligan, president of the Kenosha Area Convention and Visitors Bureau. "At the same time, it’s getting more difficult for those people to find all the information in one place."

Based on input from an area economic summit, Galligan’s group approached the Kenosha Area Business Alliance (KABA) — responsible for economic assistance to businesses relocating or expanding in the area, and the Kenosha Area Chamber of Commerce with the idea of an umbrella site.
"We all knew that the idea was a good one," Galligan said, "then it was a matter of working together to make it happen."
The three key economic advancement groups formed committees that included human resource and marketing representatives from industry, education, heath care and government.
"When we took a look at other sites around the country, we quickly noticed that many of them contained old information," said John Bechler, KABA president. "Besides that, a number of them were geared exclusively toward business executives. We wanted our site to be the one place for business executives, individuals contemplating a move to Kenosha – even people thinking about visiting the area for pleasure or recreation."
The result of the community cooperation is KenoshaArea.Com, an umbrella site with links to just about every type of community information business executives, new residents or visitors could want.
"Regardless of who looks at the site, the common denominator is that we’re all people and we all have a deep interest in the quality of life a region will be able to provide," said Stephen Cascio, of Cascio Design in Kenosha. "The look of KenoshaArea.Com is first about people and the quality of life they’ll find in Kenosha. Then the main theme – Great Life, People, Opportunity – supports the visual identity."
Once the visual identity and theme were established, the next step was figuring out the "rules" for being linked to KenoshaArea.Com, the group determined.
"We wanted to make sure that wherever site visitors chose to go, they found current information," said Cory Ann St. Marie-Carls, executive director of the Kenosha Area Chamber of Commerce. "So while there is no charge to be linked to the site, businesses and organizations must agree to keep their sites current."
The challenge involved making sure the information on more than 40 different sites is up to date.
"The region has a tremendous resource in Carthage College and the University of Wisconsin-Parkside," Bechler said. "Representatives from UW-Parkside were involved in the planning process. Then when it came time to establish a team to monitor the integrity of the site, we brought in Carthage as well. The two schools are working together to figure out how students can review the linked sites on a regular basis.
"The key is not giving the job to a group of students as a project, but developing a process where monitoring can continue from semester to semester."
Dirk Baldwin, a professor in the UW-Parkside School of Business and Technology, and David Robinson, web master at Carthage, are charged with creating that process.
"Monitoring the sites associated with KenoshaArea.Com is something that both schools can integrate into curriculum of various business or Web-development classes," Baldwin said. "No doubt it will take us a little time to create a process that will work well over time, but David and I will get it done."
The final result of the project will be easier access to regional information for everyone, said Beth McGee, Web content coordinator at UW-Parkside.
"KenoshaArea.Com makes it convenient for people visiting our web site to get information about the region," she said. "In the past, we had to have three or four links from our site to the CVB, chamber of commerce, newspaper, etcetera. Now it’s one link and all of that information is right there – much easier."
According to Galligan, leaders of civic organizations in other communities have already contacted her about the site. "One question that always comes up, ‘How did you get it done?’ The answer is a lot of people worked well together," she said. "And in this business, that isn’t always the case. Fortunately for Kenosha, we made it happen."

Oct. 17, 2003 Small Business Times, Milwaukee

Port Washington bank will open branch in new Saukville store

Port Washington State Bank will open a branch inside the Pick ‘n Save grocery story under construction in Saukville, bank president and CEO Steve Schowalter said.
The new office will open in January and will be the bank’s sixth full-service branch and the second office to have opened in the last year.
"We’re very excited about being able to make banking more convenient for patrons of Pick ‘n Save, many of whom are already Port Washington State Bank customers" Schowalter said. "Given our market share lead in the new stores’ service area, it makes a lot of sense for us."
The new office will have extended hours, including Saturday and Sunday hours, and will offer a full array of personal and business banking products and services.
The branch will occupy 550 square feet of the store and will include three teller windows and a private office for the branch manager and personal banker, as well as an automated teller machine.
Amy M. Winter, currently a senior personal banker at Port Washington State Bank’s Grafton office,has been named branch manager for the new Saukville grocery store office. She has 10 years of banking experience and recently managed a supermarket bank branch for another financial institution.
The bank has locations in Port Washington, Saukville, Belgium, Fredonia and Grafton.

Oct. 17, 2003 Small Business Times, Milwaukee

Businesses taking charge on health care
Forums, best-practice sharing are among health-care initiatives

By Andrew Weiland, of SBT

As southeastern Wisconsin employers face the prospect of another year of double-digit increases in health care costs, business leaders in the area are more aggressively tacking the problem, pressing for more discussion and sharing of ideas to hold down costs.
The coming weeks will bring a variety of health care forums for some of that discussion, while a monthly e-mail service has been launched to further share ideas on cost containment.
Health care costs "just becomes a bigger and bigger share of the pie and you watch your profits go down," said Dave Kliber, president and CEO of S-F Analytical Laboratories Inc. of West Allis and a member of the Metropolitan Milwaukee Association of Commerce Blueprint Health Care Team. "It becomes like a cancer growing within your income statement."
The Blueprint Health Care Team is asking the 350 members of the CEO Roundtable, part of the MMAC’s Council of Small Business Executives (COSBE), to submit best practices for reducing health care costs. Summaries of those practices are being e-mailed to CEO Roundtable members on the first Tuesday of each month.
The first batch of best practices was sent out Oct. 7, and included having employees pay a higher share of the cost, and joining a professional employer organization (PEO) to save health insurance costs. PEOs allow small businesses to band together and gain greater leverage in negotiating lower health care costs than they can on their own.
"Health care is becoming one of the No. 1 issues for both large and small businesses," said Mary Ellen Powers, executive vice president of the MMAC. "For larger companies, it affects their decision to locate here or somewhere else (where health care costs are lower). For smaller companies it’s having a tremendous effect on their ability to add jobs."

In addition, the Wisconsin Collaborative for Healthcare Quality will release its first performance and progress report this month. The report is an attempt to eliminate some of the mystery about the quality of care given by health care providers, and the actual cost of various services.
The report will be presented during the first annual healthcare quality summit hosted by the collaborative and Wisconsin Manufacturers and Commerce from 10 a.m. to 5 p.m. on Tuesday, Oct. 21, at the Milwaukee Athletic Club, 758 N. Broadway. Admission costs $75. Business leaders and public officials will be invited to attend. Reservations can be made by contacting Kim Bautz, at 608-661-6942.
"The issue of health care costs is a very important one to Wisconsin businesses as they attempt to grow in this state," said R.J. Pirlot, director of legislative relations for WMC. "When our members talk to us about what impacts their ability to create new jobs and maintain jobs they point to three factors: high taxes, the regulatory burden in this state and high health care costs."
"Part of the focus (of the collaborative) is teaching business leaders how to use quality information when making health care decisions. We’re excited about the collaborative’s effort to gather information on the quality of services to help our members make purchasing decisions."
The collaborative is made up of health care providers, businesses and union organizations from throughout the state. Members of the collaborative include Froedtert Memorial Lutheran Hospital, the Medical College of Wisconsin, Dean Health System in Madison, ThedaCare in Appleton, Bellin Health in Green Bay, Marshfield Clinic, Gunderson Lutheran in La Crosse, St. Mary’s Hospital Medical Center in Madison and St. Joseph’s Hospital in Marshfield.
The health care providers in the collaborative are sharing information about the quality of their services. The progress report will provide a comparison of the quality of health care services by those providers and the cost of some services.
Collaborative members say their initiative will benefit customers and encourage each other to provide better services at a lower cost.
"This is the only way we’re going to get more boats to rise in the state," said John Toussaint, chairman of the collaborative and president and CEO of ThedaCare. "What we’re finding is nobody is great at everything. We all have our strengths and weaknesses."
"That begins the discussion," Toussaint said. "Why are these different? There’s a lot of variation, not only in performance, but also in price. Who is doing it best and let’s all try to get to that level."
Collaborative members hope business leaders who receive health care services from providers that are not in the collaborative will pressure those providers also to disclose information about the quality of their care.

On Oct. 29, Harvard Business School economist Regina Herzlinger will speak at an event titled, "A Solution of Healthcare Costs: A Consumer-Driven Focused Approach." Business leaders and elected officials are expected to attend. Admission to the event is free and will be held from noon to 2 p.m., also at the Milwaukee Athletic Club. To reserve a seat contact Margaret Kealty, 271-7753.

On Nov. 5, Partnerships for a Healthy Milwaukee will present "Narrowing the Gap: Mobilizing Resources in the Greater Milwaukee Community to Address and Eliminate Health Disparities." The course, which will focus on mobilizing resources in the area to reduce health care disparities, will run from 7:30 am. to 4:30 p.m. More information on the conference can be found at www.healthymilwaukee.org.

In addition, a series of forums on health care issues is being held by the Milwaukee Turners from noon to 1:30 p.m. each Thursday through Nov. 6, at Turner Hall, 1034 N. 4th St., Milwaukee. Admission is free. Each forum, part of the 4th Street Forum programming, will be broadcast on Channel 10 at 10 p.m. on the following Friday and on Channel 36 at 3 p.m. on the following Sunday.
The Oct. 23 session will look at national health care systems while the Oct. 30 session will look at Wisconsin’s future.
"Because of all the news coverage of the problems with health care, we felt it needed to be discussed in public so people could explore solutions," said Deidre A. Martin, program director of the 4th Street Forums.

Oct. 17, 2003 Small Business Times, Milwaukee

Increased demand fueling expansion at South Milwaukee nursing home

Willowcrest Care Center in South Milwaukee is adding a 20-bed, $2.3 million, sub-acute and rehabilitation wing to its 91-bed nursing home. The addition is needed to meet the growing demands for elderly rehabilitation services, Willowcrest officials said.
The nursing home, located at 3821 S. Chicago Ave., currently has 44 beds for sub-acute and rehabilitation care.
"Those beds are constantly filled," said Bill Andrews, admissions director for the nursing home. "We’ve been running at capacity for the last several years."
The addition will serve elderly people staying at the nursing home for a short time, usually a few weeks, to recover from an illness or injury. Those residents typically are recovering after being in the hospital.
"It’s a kind of stopping-off place between the hospital and home," said Elaine Dyer, executive director and administrator for the nursing home.
The increased demand for those services at Willowcrest is driven by the growing elderly population in the southern portion of metropolitan Milwaukee, the aging of the baby boom generation, the closing of the Lincoln Lutheran Care Center in Racine and government incentives to keep elderly people living at home longer, Dyer said.
The new addition also will include two bariatric suites with larger rooms, doorways and beds for residents who weigh more than 400 pounds and have difficulty moving around.
Willowcrest Care Center is owned by Extendicare Health Services, based in Milwaukee. Extendicare operates 277 long-term care facilities in the United States and Canada, including 35 in Wisconsin. Extendicare’s facilities have a combined capacity for 29,175 residents.
Construction of the Willowcrest addition started in June and is expected to be completed April 1, 2004.
The addition will provide about 12,000 square feet of new space for the 20 beds and another 12,000 square feet of basement space for storage and mechanical rooms. The existing nursing home has about 38,000 square feet of space.
PDC Midwest Inc., based in Hartland, is the general contractor and architect for the project. PDC Midwest also built an addition to the nursing home and a separate assisted living facility on the property in 1997.
"Extendicare is a long-time client of ours," said Bob Gummer, president of PDC Midwest, which specializes in the development of senior care facilities. "We’ve done a number of buildings for them."
Willowcrest Care Center was built in 1970 with 47 beds to provide long-term care.
About 20 additional employees will be hired to provide adequate staffing for the new acute and rehabilitation wing, Andrews said. The new employees will include nurses, certified nursing assistants, dietary aides, cooks, a social worker and housekeeping staff.
The addition will provide a private room for each bed. Each room will be equipped with a walk-in shower, telephone, cable television and either a VCR or DVD player, Dyer said. The new wing also will include a separate dining room.
The building addition is designed to comfort residents and will include homey touches such as warm interior colors, Gummer said.
"It will have a residential character, as opposed to the institutional character people tend to associate with a nursing home," he said.
The nursing home’s residents are primarily from South Milwaukee, Oak Creek, Cudahy, St. Francis, Racine and the south side of Milwaukee.
Willowcreek has been forced to refer some patients to other Extendicare facilites for acute and rehabilitation services because the nursing home is not large enough to accommodate them all, Dyer said.
The addition will help Willowcreek keep more residents near their homes, where they can enjoy frequent visits from nearby family members and friends, Dyer said.
"I think that’s what helps the healing process," she said.

Oct. 17. 2003 Small Business Times, Milwaukee

More businesses pass insurance hikes to employees
By Andrew Weiland, of SBT
Most area businesses are coping with rising health care costs by increasing employee contributions, according to a new survey of 432 employers in the metropolitan Milwaukee area by Human Resources Services Inc.
Of the businesses responding to the survey, 75% indicated they are increasing employee contributions for health care costs.
Just over half, 52%, of the businesses surveyed said they are reducing benefit levels for their employees. Only 6% of the businesses surveyed said they are absorbing the entire increase of health insurance costs and are making no changes to benefits.
Rising cost is only one reason why many employers are reducing their contributions for health insurance premiums, said Jessica Ollenburg, president and chief executive officer of Human Resources Services, based in Greenfield.
During the economic boom of the 1990s, many employers increased their contributions to health care costs, boosting employee benefits in an attempt to attract quality workers in a tight labor market, Ollenburg said. Today, many employers are reducing their contributions toward health care costs, not only to combat increasing costs but also to adjust from the increased employer contributions during the previous decade, she said.
“You turn from an employee’s market to an employer’s market, combined with the massive increases in health care costs,” Ollenburg said.
Ollenburg said recent discussions Human Resource Services employees have had with area business executives indicate most of the companies that are absorbing all of the increases in health care costs currently contribute 70% or less.
Human Resources Services provides resources for human relations professionals and executives including assessment, recruitment and team development.
The survey was conducted between July and September of this year. The employers surveyed include small, mid-size and large companies, with facilities within 90 miles of metropolitan Milwaukee.
Human Resources Services also surveyed 912 employees and job-seekers who live within 90 miles of metro Milwaukee. Those employees were evenly split on three choices for how their employers should cope with rising health care costs. About one third of the survey respondents chose each of the three options: less physician and medical facility choices; increased employee contribution to premiums; or increased out-of-pocket expenses for each medical visit.
The employees surveyed earned between $20,000 and $60,000 annually and work in a variety of job fields, including manufacturing, administrative, trades and customer service.
Almost half of the employees surveyed said job security is the most important factor to them in their jobs. Only 8% said benefits and perks are the most important aspects of their job.
About 14% said pay is the most important factor. Another 15% said training and positive feedback is the most important, and another 15% said career advancement potential is the most important aspect of their job.
Almost 75% of employees surveyed said their immediate supervisor has become more difficult, unreasonable and unpleasant to work for in the last year.
“What we’re trying to do here (with the survey) is give employers some information about what other employers are doing and what are the goals and expectations of employees,” Ollenburg said.
Oct. 17, 2003 Small Business Times, Milwaukee

New projects respond to hospice care demand

By Katherine Michalets, of SBT

When Ron Komas’ 56-year-old wife Kathy was dying of cancer, he wanted to care for her at home. However, her doctor warned against that and suggested a nursing home or hospice house.
After being turned down by numerous nursing homes because of the severity of Kathy’s cancer and after he was not able to find a hospice house in Washington County, Ron had to settle for hospice care in Milwaukee.
"I was flabbergasted that I couldn’t find one," said Komas on his search for a hospice in Washington County.
After Kathy died in June 2002, Ron decided he would try to build a hospice house in Washington County. Ron is working with SynergyHealth Inc., which is constructing a new facility for St. Joseph’s Hospital along Highway 45 and Pleasant Valley Road in the Town of Polk.
A piece of land from St. Joseph’s Hospital will be donated to Ron for the use of an eight-bed hospice house to be called Kathy’s Hospice.
Architects are still working on the final design of the hospice, but it will include large bedrooms with sofa beds, a great room, a kitchen, a children’s room and a patio, so beds can be rolled outside.
"Kathy’s Hospice will be the first of its kind in Washington County," said John Klocke, executive director of the SynergyHealth Foundation.
Ron has raised more than $500,000 for Kathy’s House. SynergyHealth Foundation is raising funds for the facility, which is estimated to cost $1.5 million.
They plan to break ground in the spring or summer 2004.
As plans are being made in Washington County for Kathy’s Hospice, ProHealth Care and Hospice Inc. and the Visiting Nurse Association of Wisconsin are also developing hospice houses.
ProHealth Care and Hospice Inc., based in Waukesha, broke ground June 6 in the Town of Oconomowoc for its initiative, AngelsGrace Hospice. The 25,000-square-foot, $5 million project has a proposed completion date of May 2004. The 15-bed facility will provide end-of-life care for all ages, from infants to the elderly.
The Visiting Nurses Association’s Center for Hospice Care, an affiliate of Aurora Health Care, plans to build a new hospice at 7620 Honey Creek Parkway in Wauwatosa.
The 31,000-square-foot, 18- to 24-bed facility will cost an approximate $7.5 million, the majority of which has been raised. Aurora has contributed $4 million, and another $3.5 million has been donated from outside contributors.
"We have seen a great need for respite care for both adults and pediatrics," said Mary Runge, director of hospice services for VNA.
Milwaukee Hospice Residence, an affiliate of the VNA, has an average of 10 to 14 people on its waiting list each week for its seven-bed facility.
Both AngelsGrace Hospice and Center for Hospice Care will provide patients with peaceful surroundings.
For example, the proposed location for Center for Hospice Care has 9-1/2 acres of woods and gardens. "Every room will have a view of the woods," Runge said.
Plans call for the Wauwatosa hospice grounds to include walking paths, gardens and fountains.
AngelsGrace Hospice in Oconomowoc will have similar surroundings that include a pond, trees and landscaping.
"We have tried to make it as comfortable as possible for the entire family," said Mary Jo O’Malley, director of ProHealth Care and Hospice Inc. and the future administrator of AngelsGrace Hospice.
The AngelsGrace Hospice plans include family rooms, a children’s play area, a library, a family dining room and a spa room with a specially designed bathing area. AngelsGrace will perform respite care for caregivers who need some time to rest.
"All social, spiritual and physical care will be provided," said O’Malley.
AngelsGrace Hospice will help to educate those entering the medical field, as well, as well as clergy and social workers in its training center, Runge said.
The VNA has partnered with Marquette University to provide instruction on end-of-life care.
Both hospices see great need in the region for their pediatric care facilities.
"There is nothing in the area for children like this right now," Runge said.
Hospices generally provide care for the terminally ill and their families, even if the patients chose to die at home or are placed in a nursing home.
"We do support people wherever they are, whether it is in a nursing home or in hospice care," Runge said. "It’s just a special place, and there is such a need for it. All the surrounding community will benefit."
"There is a great need for hospice care in Milwaukee," said Melanie Ramey, executive director of Hospice Organization and Palliative Experts (HOPE), an organization that provides educational programs, technical support and lobbying for the industry.
With 48 hospice care providers in Wisconsin that provide either in-patient or in-home care and sometimes both, more services are needed in the state, Ramey said. Only 10 to 11 of those hospice care providers have hospice houses, she said.
The market is beginning to respond to the growing demand for hospice care.
"The south side really had no options," said Debbie Jarosek, social worker for Ruth Hospice, which opened its 10-bed facility on 8300 Beloit Rd. in West Allis Aug. 6. The new facility joins the 5-year-old Ruth Hospice on 8526 Mill Rd. in Milwaukee, a 26-bed facility. Ruth Hospice is a member of Village at Manor Park Healthcare System, a senior healthcare system.
Last year, Ruth Hospice had 195 admissions, all of whom were age 55 or older. Occasionally, the Ruth Hospice facility in West Allis has to place people on a waiting list when the service is unable to meet the demand.
"As people learn about the philosophy, they want hospice care," Ramey said.

Oct. 17, 2003 Small Business Times, Milwaukee

Kandziora focuses on banking needs of women

By KeleMarie Lyons, for SBT

For many years, Pat Kandziora has been on a mission to build a banking program focused entirely on the needs of women — all women — from all walks of life: single, married, professionals, entrepreneurs, stay-at-home moms and students.
Kandziora, a graduate of Mount Mary College with more than 25 years of banking and related experience, is the vice president of small business banking and banking for women at Associated Bank in Milwaukee.
Having built a solid clientele through community involvement, networking and relationships, Kandziora found that women are at a disadvantage when it comes to banking.
"Many women aren’t comfortable with numbers," Kandziora says. "Whether it’s an income statement, balance sheet or a statement of personal net worth."
Kandziora says her own experience, including the need to support her family, had a significant impact on her passion to bring attention to the specialized banking focus.
"People think I was born a vice president of a bank," says Kandziora.
Having started her career as a secretary, Kandziora was motivated to do more. She attended night school and graduated with honors from Mount Mary College.
"Education changed my life. I was always an assistant to a president, helping them succeed. Now it was time for me to make my own way," she says.
And she has made her own way. While at First Bank (now US Bank), she was promoted seven times in nine years. It was there, nearly 10 years ago, where she, David Baumgarten (former First Bank president) and Laura Strain (former First Bank senior vice president of marketing) first discussed the idea of putting a woman’s banking program in place.
"It simply didn’t work at that time, due to major changes in the organizational structure of First Bank," adds Kandziora.
Six years ago, Greg Larson, senior vice president of Associated Bank, recruited Kandziora to join the Associated team, which includes Baumgarten as president of the bank’s 54 southeastern locations.
Kandziora agreed to join the team to develop new business in the areas of private banking and small-business lending.
"This is somewhat unique. A banker usually does one or the other," she recalls.
It wasn’t until last year that Baumgarten walked into her office and said it was time to try it – a "banking for women" program.
"I think the timing is right," Baumgarten says. "Obviously, there are more women in business today than ever before. There’s a lot of potential."
Together, Baumgarten, senior vice president Michael Fleming and Kandziora laid the groundwork for the program. Kandziora framed a business plan to include regular workshops to educate women on financial issues, as well as bring them together to network and share challenges.
"There are statistics out there that show the tremendous growth of both women-owned businesses and women in business. This is a sizable opportunity," Fleming says. "Pat’s got the ties and experience that make it a natural fit."
The kickoff held in May was attended by 142 women.
The next workshop, "Planting Seeds for Your Financial Future," was held Oct. 9.
Kandziora has formed a focus group to help her identify and target the financial needs of women. The focus groups, together with the results of several surveys, have led to the identification of future workshop topics, including:
— Understanding financial statements.
— Tax secrets & importance of good record keeping.
— Networking opportunities.
— Credit issues & resolutions.
— Investments & the stock market.
— Building a business resource team.
— Access to capital – credit options.
— Women’s business certification programs.
— Managing cash flow.
— Planning for college.
— Retirement/financial planning.

"This program is important to the strategy of the company (Associated Bank)," says Baumgarten. " I will continue to be involved in whatever way I can to support Pat and provide resources."
Kandziora’s vision goes beyond the outreach need to educate women on the financial topics. It’s one that makes good business sense.
"It all goes back to building a profitable bank," she says. "Building the relationships that build a profitable women’s banking community will contribute to that end."

KeleMarie Lyons is the founder of Pinnacle XL, a management-consulting company with offices in Milwaukee and Chicago. She can be reached via e-mail at kelemarie@pinnaclexl.com.

Oct. 17, 2003 Small Business Times, Milwaukee

Banker Reinemann will help Jefferson Wells expand into key markets

Former First Business Bank President and CEO has joined Jefferson Wells International as vice president of industry marketing, a role that will help the company expand into key industry vertical markets including financial institutions and the government sector.
He served in a consulting capacity to Brookfield-based Jefferson Wells for most of 2003.
As a member of the Senior Executive Team, he will also be part of the overall management of the firm, which is owned by Glendale-based Manpower International.
Reinemann’s professional career began in 1981 at First Wisconsin National Bank, now U.S. Bank. In his 18 years with the bank, he held several senior management positions, including the head of its financial institutions group and the Wisconsin Middle Market Commercial Group.
From 1999 to 2002, he was president and CEO of First Business Bank in Brookfield. He has a bachelor’s degree in finance and an MBA, both from UW-Milwaukee.
Jefferson Wells provides outsourced accounting, serving more than half of the Fortune 500 companies in the areas of internal audit, accounting and finance, technology solutions, and taxes. It employs more than 1,300 people in 35 offices around the US.
It was started in downtown Milwaukee as Audit Force.

Oct. 17, 2003 Small Business Times, Milwaukee

Effective collection policies can help keep your business in business

The grim reality is that as a business owner, sooner or later, you will need to deal with slow paying or nonpaying customers.
In fact, thriving small businesses can find themselves facing financial difficulties when fees for services or products are not collected on a timely basis.
To avoid this situation, the Wisconsin Institute of CPAs recommends that you have a plan in place for collecting and monitoring your accounts receivables and following up on unpaid invoices.
Start with a clear policy – It’s wise to firmly establish your company’s payment terms and put them in writing.
Before you take an order or start a project, let your prospective clients know when and how you expect payment.
Be clear about your acceptance of such things as personal checks, credit cards and the forms of identification required when using these.
Also, be sure your written policy includes deadlines for payments, along with penalty clauses for large amounts that remain unpaid.
To avoid having your cash flow disrupted by slow or nonpaying customers, ask for payment up front. Depending on the type of business and the product or service, this can be full or partial payment, deposit or retainer.
An advance payment may not only help your cash flow, but also secure the relationship between your company and the customer.
Check customers’ creditworthiness – If you sell high-priced items or services that will be paid over time, it’s especially important to check the customer’s creditworthiness.
Remember, when you provide an item or service to be paid at a later date, you are extending credit. It’s not unlike handing $1,000 over to a stranger and expecting to be paid back next month. You need to be sure that customers are creditworthy.
Credit application forms can be purchased at most office supply stores, but a better idea is to have an attorney draw one up.
In addition to providing you with basic contact information and bank account numbers, a good credit application gives you permission to order credit reports and check trade references.
Once the prospective customer has completed the application, be sure to verify the information supplied and call the references to check on their payment experiences.
Invoice promptly – Billing promptly and accurately is key to the timely collection of fees. Don’t wait until the end of the month to bill.
If there is a long time lag between completion of the work or shipment of the order and the date of the invoice, the message to your customer is that it’s OK to be slow.
Before sending out invoices, take the time to carefully check it and be sure the due date, description, amount and terms are clearly stated.
An error will compromise your image and slow down payment.
Another way to ensure prompt payment is to follow your customer’s invoicing instructions to the letter.
Many large companies have precise methods for invoicing. Whether that means sending the bill to one department and a copy to the person who requested the service or order, or including a special vendor identification number, adhering to the rules typically results in a more prompt payment.
Monitor and follow up on payments due – There are many accounting software packages available that will give you tools to monitor your accounts receivables. Basically, you need to know who owes what and for how long.
It is advisable to develop a timetable for handling overdue bills.
Mail a second invoice, with a notation or stamp that says "past due" or "second notice" and follow up with a phone call.
Send late payment reminders early and frequently. Typically, the longer a bill goes unpaid, the less likely you are to recover the funds.
Getting outside help – Sometimes having an attorney send a letter to the overdue account is enough to hasten payment. If that doesn’t work, you may need to resort to small claims court or a collection agency.
Keep in mind that, in most states, small claims courts typically cap the amount you can sue at a few thousand dollars and the process can be time consuming.
If you refer overdue accounts to a collection agency, be aware that the amount collected will be less than what you’re owed. This is because the collection agency may negotiate down the amount due and take a percentage as its fee.
It can pay to be flexible – Although it is vital that you have policies in place, from time to time, it’s wise to be flexible.
For example, if a customer who has made timely payments in the past suddenly experiences financial difficulties, consider working out a flexible payment plan.
Just be sure to collect some amount each month until the overdue amount is completely paid. CPAs point out that while payment in a timely matter is important, so, too, is maintaining good relationships with long-standing clients.

The above was provided by the Wisconsin Institute of CPAs, based in Brookfield, www.wicpa.org.

Oct. 17, 2003 Small Business Times, Milwaukee

Your work isn’t done when the contract is signed; follow up on delivery, set-up

By Marcia Gauger, for SBT

Question: I just had a big sale fall apart because the technical person delivering the product confused the order for my customer. I thought it was a done deal. Now, I find myself having to resell the entire solution. Do you have any suggestions for avoiding this in the future?

Answer:
This happens all too often and is as frustrating to the customer as it is to you. Here are some tips for ensuring that your deliveries are all that you promise.

Product delivery tips
There’s a lot more to delivering a product to a customer than "dropping it off." Delivering products or equipment should be thought of as another chance to impress the customer and another chance to build your relationship. Here are some tips for successful delivery:

— If you are not delivering the product yourself, make sure that your set-up or technical person has adequate information about the customer, the customer’s goals and how the company will use the equipment. Make sure that person understands that his or her job is not to sell the equipment. Rather, it is to ensure customer satisfaction.

— Good delivery begins before delivery. Always check out the equipment before you take it to the customer. Are all systems operating correctly? Are all the options or settings requested by the customer correct? Is the equipment clean, and does it look good? As the old saying goes, "You only get one chance to make a good first impression." It may be helpful to create a checklist for your delivery personnel to follow.

— Walk the customer through the operator’s manual. You (and the customer) may not have the time to review how every control works, but be sure the customer knows where to find information when it is needed.

— Answer any questions the customer may have, and listen carefully. The questions asked will tell you what issues are important to this customer and will guide you in determining what additional information the customer may want.

— Be sure to cover safety issues and any operational issues, which, if not known to the customer, might be dangerous or damage-causing. Use the owner’s manual as a guide.

— Enhance your value to the customer by giving operational tips that improve performance or reduce cost of operation. When you provide valuable advice, you transition from "salesperson" to "valued consultant" in the eyes of the customer.

— Re-enforce the wise purchase decision this customer has made. Point out additional features that you did not cover during your sales presentations. Review the productivity improvement this product brings to the customer. Adding value to the product also adds value to you, in the eyes of the customer.

— Position your company as the complete support organization for this customer. Be sure to provide phone numbers and names for service and parts personnel. Make yourself readily available for any further questions on operation or use of the equipment. Remember, each customer contact is a chance for you to further build rapport.

Customer follow-up tips
Good customer follow-up is key to building your customer relationships. A week or so after delivery, make contact with your customer. Have an agenda prepared for the discussion.
Your goal is not just to check on the recent purchase but also to position yourself for additional sales.
Here are some tips for successful follow-up.

— The first and most important point is to make sure the customer is happy with the equipment. Ask about performance and operation. Are there any questions? Does the equipment meet expectations? Follow up on issues that may have surfaced during delivery. Be sure any commitments that were made have been honored.

— Again, answer any questions the customer may have, and listen carefully. The questions asked will tell you what issues are important to this customer and will guide you in determining what to discuss. If necessary, review the features and performance factors that first interested this customer in the product.

— If the customer is happy, use the situation to prospect for future business. Ask about other potential business. Ask if the customer will give you referrals and/or testimonials. Remember that a satisfied customer can be an extension of your sales efforts. If the customer is happy with you and the equipment, now is also the opportunity to sell the rest of your services.

— Remember that each customer is different. Some will want little or no contact with you until they feel the need. Others will want significant handholding as they use new equipment and get acquainted with it. Having a "standard" follow-up procedure can offend people at either end of the spectrum, so adjust your approach accordingly.

— Whatever additional commitments are made during follow-up, act with speed. Many businesses offend their customers by slow response to an issue that might be very important to the customer. Act quickly. And at least communicate often on an issue where you have little control over time.

— Always follow up on commitments made by others within your company. Become a customer advocate, and you build relationships. Remember that good follow-up practices tell your customers that you are grateful for their business and help set you up for future business.

Marcia Gauger is the president of Impact Sales, a performance improvement and training company with offices in Wisconsin, Florida and Arkansas. You can contact her at 262-642-9610 or marciag@makinganimpact.com. Her column appears in every other issue of SBT.

Oct. 17, 2003 Small Business Times, Milwaukee

State credit unions expand SBA lending

By Elizabeth Geldermann, of SBT

Since the US Small Business Administration (SBA) passed a regulation in February to allow all stable credit unions with sufficient funds to become certified lenders of SBA loans, southeastern Wisconsin banks have been keeping a suspicious eye on their credit union counterparts.
SBA loans are guaranteed up to an average of 75% through SBA funds to support small business growth.
Credit unions had been able to provide loans through the SBA prior to the new regulation, but depending on the experience of the credit union and the stability of the lender, loans were difficult to approve.
Currently, only 30 of the 300 credit unions in Wisconsin participate in SBA business lending, but that number may soon rise as more credit unions tap into the market with the new, relaxed restrictions.
The SBA extended the lending program to eligible credit unions in hopes of enhancing the small business community, but the decision brought protests from the American Bankers Association (ABA).
By participating in the business loan program, credit unions are violating their original mission, according to a statement on the ABA’s Web site (www.aba.org).
Expansions, increased financial services and competition against banks are not in accordance with the original concept of credit unions as small groups of people pooling money to help each other, the ABA contends.
As credit unions begin to act more like banks with branch locations, extended membership to anyone living or working within a given radius and nearly full financial service capabilities, credit unions pose unfair competition for the same customers banks target, the organization states.
The ABA argues that credit unions now consist of unrelated groups and that some have grown to serve entire states.
Charlotte Birch of the ABA said banks don’t mind the competition; they just want it to be a fair fight. Banks are subject to more stringent regulations, she said.
Credit unions, as tax-free enterprises, are not required to adhere to regulations such as the Community Reinvestment Act, which mandates a yearly quota of community service, sponsorship or investments banks must contribute to their service area.
"Credit unions have different regulations under state, federal and tax laws, which per bank give the credit unions a distinct advantage over other lenders product cost wise," said John Mirenda, chief of finance for the SBA. "The banks will argue that they are subjected to higher costs of doing business vs. a credit union."
Brett Thompson, president and chief executive officer of the Wisconsin Credit Union League, said that although credit unions are expanding, all additions to services and locations are the result of the members’ demands and stem from the credit unions’ original mission: to serve members. Thompson said the ABA’s attacks on credit unions are self-serving and illogical.
"A credit union is exempt from tax because of its form – member-owned and non-profit. Not because of the services it provides," said Thompson. "It is a classic case of supply and demand. The membership asked for small business loans, and that is why we are trying to supply them."
Thompson said that many credit unions in Wisconsin could be eligible to provide SBA type lending. However, most are too small to meet the requirements in a way that is financially viable, he said.
Thompson said credit unions are viable alternatives to banks.
"Unions are better known for service and the best deals," Thompson said. "Because our whole focus is not profit, ultimately you will see more folks that need loans for their small businesses going to credit unions, because it is a better deal and ultimately they receive better service."
Wisconsin credit unions are growing and stacking up to banks, but still focus on consumer lending, Thompson said.
According to Thompson, short-term loans are still the bread and butter of credit unions.
Landmark Credit Union is the largest in the state with 100,000 members, 11 locations in nine counties, and $698 million in assets. Landmark approved its first business loan in August in response to a member inquiry.
Jay Magulski, vice president of Landmark, said the credit union has always aggressively pursued opportunities to help small businesses, and joining with the SBA was one answer.
In the past, potential customers had asked about small business loans, but the credit union could not always help them, Magulski said.
"Our goal as an organization is clearly to be a one-stop financial provider and solution provider for our members," said Magulski. "We want (our members) to realize this and view Landmark as a financial provider for all of their needs."
Landmark had not yet advertised its new partnership with SBA when Marji Fagan inquired about a $150,000 loan toward an addition to Hair Decisions & Nail Salon, her business in New Berlin.
Fagan said she originally went to her local bank but was given "the runaround," although her business was already running and successful.
"In a lease situation, when you lease and build an expansion, your assets are your business and your equipment," said Fagan. "But the bank wanted me to take a home equity loan out instead, which I did not want to do. They said that an SBA loan was too much paperwork."
Fagan called Landmark because the credit union had previously helped her with a car loan. Fagan said she could not be happier with her decision.
"The lenders were on top of everything and worked very hard to keep the interest rate low," said Fagan. "They contacted us if they needed more information, instead of us having to find them, and the closing costs were lower than anticipated."
John Mirenda, chief of finance for the SBA, said most credit unions want to participate in SBA lending in an effort to become a full-service financial institution for their members, beyond savings accounts and home loans. According to Mirenda, SBA loans have gained popularity as credit unions expand their markets.
"(Credit unions) realized that over the years they were losing a part or sometimes all of their customer accounts to banks because they couldn’t or wouldn’t offer other services," said Mirenda.
Birch claims that credit unions are still double-dipping by acting like banks, without having to comply with the same regulations.
McCollum suspects credit unions are using extra money from tax exemptions for advertising and developing better facilities.
Ultimately, customers such as small-business owners are the benefactors of the ongoing competition between banks and credit unions, Magulski said.
"The competition is a good thing, and the best thing for the customer," said Magulski. "I think people would find that they are very pleased that this has happened, that now they have harder decisions to make."

Oct. 17, 2003 Small Business Times, Milwaukee

Legacy Bank gets more than $1 million in US funds for banking in distressed areas

The U.S. Treasury Department has awarded Legacy Bank of Milwaukee $1,097,538 for increasing its financing and service activities in economically distressed areas in Milwaukee.
Legacy Bank received the largest award among Community Development Financial Institutions (CDFI) and the third-largest award overall, competing with other major financial institutions.
According to the award notification document, "The Bank Enterprise Awards Program was enacted to provide an incentive to FDIC-insured banks and thrifts to increase their level of support to certified CDFIs; increase their provision of loans, investments and financial services in distressed communities; or both."
Legacy Bank was notified by U.S. Rep. Jerry D. Kleczka’s office of the award.
"Whether it’s providing new savings accounts, home mortgage loans, investing in local businesses like the new Citgo in Metcalfe Park, or providing other services, Legacy Bank has quickly developed a reputation of bringing positive change to distressed areas in the city," said Kleczka. "By strengthening its financing and services, the grant money will help ensure this trend continues."
Deloris Sims, president of Legacy Bank, said, "We are proud that Legacy Bank is recognized by the U.S. Treasury Department as a cornerstone of financial strength and soundness for our customers. The BEA Award will enable the bank to continue fostering economic growth and development through the provision of much-needed capital in some of our most distressed communities."
Legacy Bank was chartered by the Wisconsin Department of Financial Institutions in July of 1999 with total assets of $5 million dollars. Currently, Legacy Bank has more than $77 million in assets.
Legacy Bank is the only bank in Wisconsin to have received the U.S. Treasury Department’s CDFI designation. Its holding company, Legacy Bancorp, is the first bank holding company in the nation organized by African-American women. The bank is at the intersection of Fond du Lac and North avenues.

Oct. 17, 2003 Small Business Times, Milwaukee