Northwest Minnesota Foundation ~ Developing Community Assets ~ Serving 12 CountiesSPRING 2009 • Number 49

Igniting Innovation: Starting, Sustaining and Growing Businesses

The American heartland has a chance to “get the most out of its nickels” in an economic turnaround, according to Rich Karlgaard, publisher of Forbes magazine.

Karlgaard was the keynote speaker at the NMF Regional Summit: Igniting Innovation, held in the University of Minnesota Crookston’s Bede Ballroom.

The Bismarck, ND native said the heartland doesn’t boom or bust as much in an economic bubble as urban areas do. He said leading companies have a one in three chance to falling out of favor with consumers, allowing entrepreneurs and small businesses to offer better value propositions.

“Urban coasts are really in bad shape,” Karlgaard said, “Housing prices

cannot come down enough.” In comparing the heartland to the

urban coasts, Karlgaard said the cost of living gap has broadened at a time when markets and information are readily available on the internet. He said the heartland’s more favorable economy creates opportunity because consumers want to start spending again.

“I think consumers will be more prudent and really look for value,” Karlgaard said. “Trust is really low and they want value for their money. It wouldn’t be bad to become greater savers.”

Karlgaard said he believes there will be inflation, but he added that usually helps farmers and rural economies. He said he expects economic growth in the second half of the year, and once the gross domestic product reaches 2 percent, the Federal Reserve could withdraw money from the trillion dollars it has printed since September, easing inflation.

He said there’s a place for green energy, including ethanol and wind, but it’s tough to plan for because it competes with the fluctuating price of oil.

Karlgaard said he believes government bailouts are coming to an end, plus the stock market and housing market have bottomed out, and the

(Continued on page 3)Panelist Pete Birkeland, NMF Chair Eric Bergeson, NMF VP for Programs Marty Sieve

Rich Karlgaard

Heartland Entrepreneurship - Keynote by Rich Karlgaard

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The NorthwestMinnesotaFoundation

investsresources,

createsopportunitiesand promotes

philanthropy tomake the region

a better placeto live and work.

BOARD OFDIRECTORS

Eric BergesonChairFertile

Mark HewittVice-Chair

Park Rapids

Gary PurathSecretary

Red Lake Falls

Dean JohnsonTreasurer

Mahnomen

Terri AndersonOgema

David BergmanThief River Falls

Roger MalmHallock

Kim WilsonFosston

Robert HagerGreenbush

Laurie WilsonCrookston

Jody HorntvedtBaudette

Judy RoyRedby

Nancy VyskocilA Message from the President

While spring has crept in slowly in

Northwest Minnesota, activities at the foundation have bounded in like the proverbial lion. Our May 12th summit focusing on innovation was kicked off by Eric Bergerson, chair of the NMF board. He set the stage with a brief and very enlightening history of the changing economic climate and population shifts within the region.

Keynote speaker Rich Karlgaard, a native of Bismarck, ND, the publisher of Forbes magazine and a best-selling author, put the current economic conditions in perspective with a look at economic highs and lows in the U.S. during the past century. Rich stressed that there is no better time than now for talented entrepreneurs to pursue business startups. The best and brightest are not finding tailor-made jobs and are more likely to go out on their own. Rich firmly believes that in this new economy, the heartland will benefit. As the high cost of living and economic strain of growing populations push more people away from the East and West coasts, increased access to broadband has removed many barriers from conducting business in the middle of the country.

Summit participants enjoyed two strong panel discussions. The first panel talked about business innovations. Andy Wells, President and founder of Wells Technology, energized the summit with his passion for innovation. Just days later, Andy was honored as a small business owner of the year by President Obama. Jeff Stamp led the group through the Stamp Unified Theory of Entrepreneurial Expectations. There was no “after lunch slump” as Jeff’s vitality and flood of ideas kept everyone on the edge of their chairs. Bill Payne started off the final panel

on angel investors by leading the summit participants through a variety of investor options. Bill was an early angel investor and shared many success stories.

We are very grateful to all of partners, presenters and participants for helping to make the summit so successful. Thank you.

May 12th was also the culmination of months of hard work on the IDEA competition. Four great ideas were selected out of the dozens of submitted projects. Winners and photos can be found in this newsletter. And go to www.ideacompetition.com to learn more or enter next year’s competition.

On May 12th and again on May 21st the foundation presented other awards. When we all are exposed to so much negative news, we can lose sight of the great things and wonderful people around us. NMF is privileged to celebrate individuals and organizations making a positive difference, including Jorge Prince of the SBDC, the LifeCare Health Care Funds, Edgar Hetteen and Ideal Aerosmith. All are taking part in the NMF mission to enhance the quality of place in Northwest Minnesota.

Attending the summit were (left to right) NMF board member Kim Wilson,Louella Fraser of Midwest Bank, NMF board members Terri Anderson and Bob Hager

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talent pool wants to move away from urban areas and into the heartland.

Following a question and answer session with Karlgaard, panelists Andy Wells, Lonnie Rogers, Karen White and Steve Eickman were led in The Business of Innovation discussion by Bruce Brorson, a business professor from UMC. They shared stories about their successes and bumps in the road. Common themes emerged about the need for innovation, risk taking, persistence and creative thinking, along with using teamwork and asking the right questions.

Jeff Stamp, the inventor, creator, and brand manager of “Baked Lays” for Frito-Lay and UND professor of entrepreneurship, presented his keynote based on Bold Thinking!! It was a perfect segue into the afternoon session, letting loose Jeff’s energy, style and flair for presentation. His experiences have led to some basic truths for entrepreneurs. These are seemingly simple things necessary for success: the ability to make decisions, knowing when to ask for help, and being comfortable with a degree of risk.

The same is true to an extent for angel investors and venture capitalists. To cap off the summit, angel investor Bill Payne delivered

a keynote speech based on his experience as a consultant with dozens of companies and Angel Groups all over the world. He is a regular speaker at investment conferences across the country. He led the second panel discussion with Michelle Landsverk, Pete Birkeland, Tom Kenville, Mark Rheault, and James Bergum, covering the spectrum from angel investors to private equity funding.

The group discussed how the angel investment works, what angels are looking for, and how beneficial it can be to secure funding. In most cases, the groups of angels who lead the loan pool have business expertise and share advice with the startups they help to fund. For more information about angel investment, visit www.billpayne.com.

Following his visit to Crookston, Karlgaard wrote in his blog: Risk capital is now figuring out how to invest in heartland start-ups, and thus entrepreneurs feel they have license to try ventures that could work--or might fail. Before the arrival of angel capital networks such as Rain Source Funds, small-town entrepreneurs typically borrowed capital from friends and family. If the start-up went bust, the entrepreneur often felt so ashamed that he left town rather than face the town’s scorn. Angel capital puts some healthy psychological distance between the entrepreneur and the funds. At the same time, the entrepreneur feels less isolated thanks to expert advice provided by the angel network.

The last 90 years have been tough on America’s heartland and rural communities. But that could change with new networks of knowledge, innovation and capital meeting the older values of work ethic, trust and modestly priced living standards. We could see a renaissance in heartland entrepreneurship.

Portions of this article from the Grand Forks Herald and Digital Rules Blog, Forbes.com

l-r: Lonnie Rogers, Andy Wells, Steve Eickman, Karen White

Jeff Stamp

(Continued from page 1)

l-r Pete Birkeland, Tom Kenville, James Bergum, Mark Rheault, Michelle Landsverk, Bill Payne in front

“I think consumers

will be more prudent and

really look for value. Trust is really low and

they want value for their money. It wouldn’t be

bad to become greater savers.”

RIch KaRlGaaRd

Igniting Innovation

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During the summit lunch break, the IDEA (Innovation Drives Entrepreneur Acceleration) awards were celebrated. In the words of Dr. Charles Casey, UMC Chancellor, “This is a celebration in which there were no losers.”

IDEA is a project designed to assist the most promising local entrepreneurs in the commercialization of innovative products, processes and deliveries by connecting them to the best resources available, along with access to the capital it takes to launch a successful venture.

With 61 initial entries, and through three rounds of judging, four finalists were selected to receive $10,000 each, a commemorative plaque, and access to technical assistance as their projects take off. Receiving honorable mention were 3-Line Music and Lakewood Energy.

The four winners:

The forte Keyboard Company LLC, Bemidji, MNEric Thorsgard, Owner and PresidentThe forte Keyboard Company will be launching two new keyboard instruments – the forte and condensed keyboards. These keyboards will offer an alternative to people who want to play an instrument that is easier to learn than the piano. Although they can play anything written for the piano, they are completely new instruments, due to the innovative configuration of the keys. The company plans to manufacture and market these keyboards for the purpose of music education, enjoyment and performance.

IceHogger Industries, Bagley, MNTodd Hamm, Owner IceHogger Industries’ featured product is the Ice Auger Shroud System, created for the sport of ice fishing. The product is designed as an accessory for power ice augers. The purpose

of the Ice Auger Shroud System is to control ice chips, slush and water during the drilling process to minimize or eliminate clean-up after drilling. The result is a quicker set-up with less effort. The Shroud also provides the operator protection from rotating parts and flying debris during operation and acts as a protective barrier from the sharp drill flighting during transport.

Ultralight Soaring Aviation, Inc, Bemidji, MN David and Bonnie Ekstrom, OwnersUltralight Soaring Aviation is launching the StartStick,™ a cost effective, light weight, self-contained energy pack, which provides all the power needed to start 4-8 cylinder piston engine aircraft. The StartStick™ is designed to be plugged into the auxiliary power jack on aircraft, and will be available in several configurations, including 12VDC and 24VDC designs. The StartStick™ can be quickly recharged and is made from fully recyclable parts.

Xtreme DnA, East Grand Forks, MN Don and Adam Zejdlik, OwnersXtreme DnA has developed a snowboard system that focuses on the need for speed with control. Their system, called the “Missing Link” is designed to be placed onto a small snowboard, giving it a greater side cut, reducing cross-tortional flex, stiffening the board, and giving the rider more control. The innovative design allows snowboarders to reach speeds impossible

IDEA Competition Awards

IDEA presentation – Dr. Charles Casey

Pictured, left to right, are NMF President Nancy Vyskocil, Don and Adam Zejdlik of Xtreme DnA of East Grand Forks, Bremer Bank Crookston President Rob Jacobson, Karen White of the 360-degree Center for Manufacturing and Applied Engineering Center of Excellence at Bemidji State University, Rick Kezar and Eric Thorsgard of The forte Keyboard Company LLC of Bemidji, Todd Hamm of IceHogger Industries of Bagley, and David Ekstrom of Ultralight Soaring Aviation, Inc. of Bemidji.

“To have four winners of this

caliber are very rewarding

for those of us who have taken this

competition from concept

to reality.”

MIchelle landSveRK

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on a normal snowboard. The Missing Link also reduces the amount of effort it takes to control the snowboard, meaning the rider will not tire as quickly, and can spend more time out on the slopes.

Project Coordinator Michelle Landsverk was very pleased with the results of the competition. “To have four winners of this caliber is very rewarding to those of us who have taken this competition from concept to reality,” Landsverk said. “The 2009 competition may be over, but the 2010 competition opens in September of this year. We encourage Northwest Minnesota innovators to consider entering the next round of competition.” For more information, visit the IDEA website: www.ideacompetition.org.

At a reception following the summit, Edgar Hetteen was the first person to be inducted into the IDEA Hall of Fame. The declining health of Hetteen prevented his attendance. His son, Ronn and family accepted an original Al Belleveau sculpture trophy on his behalf.

Edgar Hetteen is more than an inventor. He is more than an entrepreneur. His is a special blend of genius, guts and luck that legends are made of. Entrepreneurs start businesses, but Edgar Hetteen founded an industry, and created a market for something that people never knew they needed – the snowmobile.

The economic impact he has had on northern Minnesota is hard to fathom. To measure that impact, you would have to add together tourism revenue, snowmobile sales, sales taxes revenues, and all the wages paid to people employed in the manufacturing of snowmobiles.

Edgar has always been a relentless “idea man,” continually searching for ways to promote and to improve the performance of the vehicle he helped create. His ideas have led to many important developments, which are standards of the sport today. Some of his breakthrough ideas are slide rail suspension, the

aluminum chassis, the forward-mounted engine and numerous innovations which continue to define the snowmobile to this day.

His accomplishments belie his humble origins. He was the son of first generation Swedish immigrants and grew up on his family’s 80-acre homestead south of Roseau, Minnesota. As a young farm boy he developed a lifelong infatuation with mechanical equipment.

After finishing the eighth grade, Edgar left school and started working in his uncle’s machine shop in Roseau. His bright mind and innovative spirit emerged early on. At the young age of 34, he co-founded Polaris Industries. The rest, as they say, is history – but history that forever changed the economy of Northwest Minnesota.

Here are some of the major events of his life:

• 1920 – Born in Roseau, Minnesota.• 1944 – Opens company that eventually

becomes Polaris Industries. • 1955 – Polaris begins building snowmobiles. • 1960 – Snowmobiles 1,200 miles across

Alaska to prove snowmobiles can work. Later that year, he leaves Polaris.

• 1961 – Founds Arctic Enterprises in Thief River Falls.

• 1962 – Designs Arctic Cat 100. • 1965 – Sells Arctic Enterprises. • 1967 – Returns to Arctic Enterprises as Vice

President. • 1983 – Founds ASV, Inc., in Marcell,

Minnesota. • 1998 – Forbes names ASV 14th-best small

company in America.

IDEA Hall of Fame Induction

Edgar Hetteen

Edgar has always been a relentless “idea man,” continually searching for ways to

promote and to improve the performance of the vehicle he helped create.

Hall of Fame trophy

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Quality of Place Awards The foundation’s recently completed 5-year

strategic plan for programs and development focuses on Quality of Place. Rural economies can no longer rely solely on their natural resource base for their future. To succeed, rural areas need to be able to attract and train knowledge workers. These people can choose to live almost anywhere these days. They will likely choose to live in attractive communities that offer the amenities they desire.

Following along these lines, the foundation created the Quality of Place award three years ago. The purpose is to recognize the foundation’s partners, grantees, training participants, and loan clients who have helped to develop community assets. Through their work, they enhance the quality of places in the region.

This year, two awards have been presented. The first, at the NMF Summit, was to recognize Jorge Prince, executive director of the NW Small Business Development Center.

The award recognizes Jorge as a partner who is working to find innovative ways to strengthen and diversify our economy through job creation, family income enhancement and business opportunities.

The mission of the Northwest SBDC is to provide business counseling services in the twelve county Northwest Minnesota Foundation area. In less than two years, Jorge has been effective in marshalling the right resources to meet this mission. He recruited consultants who have expertise in manufacturing, corporate and small business management, accounting, business training, advertising, marketing, and business finance.

The SBDC has teamed up with the NMF’s Entrepreneur Development Program to jointly hold business workshops. In 2008, Jorge implemented a new outreach program called “community days.” SBDC consultants now have more contact time with the residents and business owners in many communities in the region. A new satellite office in Crookston was also established. Also launched in 2008 were “Intro to Business” workshops, which are held every month in Bemidji and Crookston. In the coming year, these workshops will be expanded to three more communities.

In less than two years, there have been significant increases in consulting hours, the number of customers served, and financial capital secured. In fact, financial capital obtained for clients increased over 330%. More gratifying than the numbers, is the fact that customers are located in every single county and many communities in the large twelve county region.

Jorge has been very involved with the IDEA competition. He participated on the IDEA committee, then left the final judging group to transition to a new role. The SBDC, with Jorge as lead, will serve as the case manager coordinating all technical assistance for the four winners. During the application process the SBDC also provided counseling.

Along with a commemorative plaque, the award is accompanied by a $1,000 grant. Jorge has selected the Bemidji State University Honors Scholarship as his grant recipient.

A second award ceremony was held on May 21st at a reception held to recognize Ideal Aerosmith and LifeCare Health Care Fund, which was honored with the Community Philanthropy award.

Ideal Aerosmith, East Grand Forks, received the Quality of Place Award.

Jorge Prince, Executive Director of the NWSBDC was presented with the Quality of Place award

Quality of Place Award, Ideal Aerosmith – l-r John Mohr, Todd Johnson, Lonnie Rogers, Nancy Vyskocil

NMF recognizes partners, grantees, training

participants, and loan

clients who have helped to develop community

assets.

NMF Regional Awards

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Funds are recognized for

their growth and support

and for working hard on

achieving their missions and

goals.

Established in 1938 and experiencing a healthy rebirth in 1995, Ideal manufactures inertial test equipment used in aircraft and instrument testing situations. They have become very active in the automatic test equipment field. Their main customers are involved in aerospace, defense, and automotive, petroleum, military and academic and research facilities worldwide.

The foundation has an ongoing relationship with Ideal going back to 1996. They have been an excellent partner and have greatly increased their asset base and added employees throughout the 11 year history with the business finance program.

Headquartered in East Grand Forks, Ideal also maintains three other facilities, including a well-equipped manufacturing, engineering and sales facility in Phoenix, Arizona; an engineering, manufacturing facility in Pittsburg, Pennsylvania; and a sales, service, engineering and manufacturing facility in Menlo Park, California.

Employees now number 114 nationally with 66 working in East Grand Forks. Keeping the company vital and expanding the workforce in our region adds immensely to the quality of places in our service area. The foundation is very pleased to continue to take part in their ongoing progress.

A nonprofit has been selected by Ideal Aerosmith as the recipient of the $1,000 grant that accompanies the award. It will be given to Northlands Rescue Mission, a nonprofit ministry that provides homeless men and women in 21 counties in North Dakota and Minnesota with shelter, meals, clothing, spiritual guidance and case management.

The Community Philanthropy Award has been created to recognize the Northwest Minnesota Foundation component or community fund that has helped to build and strengthen the culture of philanthropy in the region. Along with an original sculpture award for display, the fund’s endowment receives a $1,000 donation from NMF.

The fund receiving the award has shown substantial growth and support. The fund

advisory committee is a cohesive group that meets regularly, promotes the fund and the culture of philanthropy in their community. They have worked hard to achieve the mission and goals of the fund.

This year’s recipient is the LifeCare Health Care Fund serving the entire Roseau County area. The family of LifeCare funds began with a bequest from the Maggi Adams estate. It has grown into a family of eight funds that benefit programs and equipment for LifeCare Medical Center and also benefits organizations that engage in health-related activities. The funds include a general fund, hospice, medical equipment, diabetes and dialysis, parish nursing, breast cancer, and the Roseau and Greenbush Manor funds.

These funds have set the bar very high for what can be accomplished to raise money. To date, they have raised over $400,000 in total donations from nearly 550 donors. The advisory committee has worked hard holding events, such as the LifeCare Walk/Run, a “Pay-it-Forward” project, the Greenbush Rodeo Breakfast, and a golf tournament along with a variety of other special events. The highlight for the last three years has been the Partners for Health Event. This formal black tie dinner has raised over $20,000 in each of the three years through ticket sales, and silent and live auctions.

As a result of these efforts $40,790 in grants have been awarded for medical equipment, projects and activities that support the LifeCare Center, the senior living facilities, and for promoting health in the community.

Community Philanthropy Award

Community Philanthropy award – l-r Jan Wollin, Deb Haugen, Sue Grafstrom, Jane Evans, Caryl Turnow

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GrantsGrants Totaling $662,809 Were Made

From February through May 2009

Community Planning Total: $109,500

Community Development

Northwest Regional Development Commission ...................... $25,000For Northwest Minnesota Regional Trail Plan

Red Lake Band of Chippewa Indians ....... $25,000For Transportation and Land-Use Plan Development for the Red Lake Reservation

Economic & Community Development

City of Blackduck .................................... $10,500For Blackduck Business Development Strategy

Headwaters Regional Development Commission ...................... $14,000For Growing, Attracting and Retaining Talent in Beltrami County for Long-Term Prosperity

Kittson County Economic Development . $25,000For Jobs 2010

LOW County Office of Economic Development .......................... $10,000For Lake of the Woods Business and Talent Marketing Plan

Natural Resources Total: $71,800

Promotion & Preservation

Pembina Trail R C & D ............................ $25,000For Noxious & Invasive Species Project: A Pilot for Northwest Minnesota

New Technologies

Headwaters Regional Development Commission ...................... $21,800For Headwaters Region Collaborative Community Renewable Energy Plan

University of Minnesota Extension Service .................................... $25,000For Organic Fruit Production in High Tunnels in Zones 2 and 3

Component Fund Total: $405,985

Backstrom Family Charitable Fund ........... $2,250Bemidji Food Shelf, North Country Health Services Foundation

Bagley Early Childhood Initiative Fund ........ $796Bagley School District, Discovery Place Child Care Center

Bemidji Area Arts Endowment & Project Fund ......................................... $3,465Bemidji Community Arts Council, Inc., Bemidji State University Department of Music, Bemidji State University Department of Visual Art, Paul Bunyan Playhouse

Bemidji Community Theater Fund .................. $500

Everett Wilimek Endowment for Orchestral String Studies ............................... $600

Frederick Marshall Fund ............................. $1,649

H.B. and Ina T. Roholt Family Fund for the Arts ................................ $761

North Star Arts Fund .................................. $2,113

Richard and Pam Nelson Family Fund for the Visual Arts ...................................... $1,000

Bemidji Area Community Fund ...................... $50Support Your Troops

Bemidji Area Early Childhood Initiative Fund ........................................... $1,875Bemidji Area Schools, Discovery Place Child Care Center, Headwaters Science Center

Bemidji Area Parks and Trails Fund ........... $1,000Bemidji Sculpture Walk Fund

Bemidji Curling Fund ................................ $1,500Bemidji Curling Club- Junior Committee

Component funds are established with the Northwest Minnesota Foundation for a specific purpose. A donor or group of donors helps to build a permanent endowment from which interest earnings are used to fund projects, programs or activities and/or scholarships that support the mission of the fund. In some cases, project funds are donated and used for immediate needs. A local fund advisory committee recommends distributions based on specific purposes and criteria. The NMF board, for purposes of IRS regulation, approves the advisory recommendations for grants, but the component funds are the source of the grant dollars.

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Bemidji Lumberjack Foundation Fund All School Reunion Fund ............................. $5,301

First National Bank Bonspiel Fund ................. $6,172

Security Bank USA Lumberjack Scramble .... $12,346

Clearwater Health Care Fund Clearwater County Emergency Services

Endowment and Project Fund ......................... $440

Clearwater Hospice Fund ............................ $1,400

Crookston Area Community Fund ......... $283,180Crookston Arena Fund

Crookston Early Childhood Initiative Fund ........................................... $3,090Crookston Early Childhood Initiative, Discovery Place Child Care Center, Tri-Valley Opportunity Council, Inc.,Washington Elementary

District #593 Education Foundation Fund .. $5,000Frances Drivold Special Education Endowment and Project Fund

Fertile-Beltrami Early Childhood Initiative Fund .............................................. $250Fertile-Beltrami Public School

Fosston Area Community Fund .................... $700Fosston School District, Magelssen Elementary School

Headwaters Unitarian Universalist Fellowship Fund ........................................... $500Headwaters Unitarian Universalist Fellowship

HRDC Leadership Fund ........................... $22,500HRDC Successful Communities Challenge Fund

Lake of the Woods Early Childhood Initiative Fund ........................................... $2,194Lake of the Woods Schools

Laporte Education Endowment and Project Fund .......................................... $228Tonia Johannsen Memorial Fund

Norman County East Early Childhood Initiative Fund ............................. $200

Park Rapids Early Childhood Initiative Fund .............................................. $300Discovery Place Child Care Center

Park Rapids Revolving Loan Fund ........... $10,000Hubbard Regional Economic Development

Red Lake Band of Chippewa Indians Community Fund ..................................... $23,849Red Lake Youth Initiative Fund

Ruth Edevold Endowment for Excellence .. $1,000Bemidji State University Honors Scholarship

Thief River Falls Early Childhood Initiative Fund .............................................. $300Discovery Place Child Care Center

Warren Senior Center Endowment Fund .... $2,773Warren Senior Citizens Club, Inc.

William A. and Eloise E. Nelson Fund ....... $2,500Headwaters Unitarian Universalist Fellowship

Scholarship Awards Total: .....$75,525Bagley Education Endowment and Project Fund Bagley General Scholarship Fund (6) ............. $4,000

Bemidji Lumberjack Foundation Fund

Buck Robbins Scholarship Fund (1) .................. $150

Bun & Alvera Fortier Scholarship Fund (1) ........ $500

Des Sagedahl Scholarship Fund (1) .................. $500

General Scholarship Fund (8) ....................... $5,000

Heidi Bitzer McClure Memorial Scholars (1) ... $1,000

K.E. “Red” Wilson Athletic Fund (1) .................. $750

Pat Campbell String Fund (1) .......................... $300

John F. Breen Scholarship Fund (3) ............... $3,000

Ray F. Breen Scholarship (10) .................... $10,000

Blackduck Area Community Fund Academic and Character Scholarship Fund (1) .. $500

East Polk County Fair Scholarship Fund (2) ................................. $2,000

Fosston Area Community Fund Fosston Education Foundation Endowment and Project Fund (1) .................. $1,500

Jim Miller Memorial Math Scholarship Fund (1) ..................................... $500

Terry Stout Memorial Scholarship Fund (1) .................................. $1,000

Vikan Scholarship Fund (1) ............................. $500

Julie Holmquist Memorial Scholarship Fund (2) .................................... $500

Keith and Ellen Kapphahn Family Scholarship Fund (2) .................................... $500

Laporte Education Endowment and Project Fund (4) .................................. $2,250

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northwest Minnesota Foundation Offers core Four

® Business Workshop Series

The Northwest Minnesota Foundation will sponsor the CORE FOUR® series of workshops designed to develop businesses in the region. The CORE FOUR® Business Planning Course will teach an aspiring or existing business owner the information and skills needed in four fundamental or ‘core’ elements of business planning: success planning, market planning, cash flow planning and operations planning. Starting with a business idea, participants will use CORE FOUR® to plan a business in real time. What will be gained is a clear understanding of the marketplace and how it works, how to manage cash, how to get things done as well as do things, and how to stay focused on a clear set of personal and business goals. Learning by doing, the business idea will evolve by building in the details. While some individuals have been successful without a business plan, experience demonstrates that a strong, well-researched business plan increases the likelihood of success. Time and money is saved by making mistakes up front and on paper. Skills learned in business planning pay off in other areas as well.

Core I – Success Planning presents tools for: self-assessment, financial goal setting, boundary setting, communication skills, selling skills, and contingency planning. You will prepare your “business owner” resume and personal financial plan. Success Planning is also threaded throughout the course with instruction and exercises for teaching you about due diligence, raising your self-awareness about your wants and needs, the business wants and needs, your role in the business, business ethics, and business legitimacy. Core II – Market Planning presents tools and strategies for transforming your dream into a reality of a market-driven business including: identifying customers, analyzing competition and industry, identifying a market niche and position, options for distributing products and services, identifying features and benefits of products and services, image and packaging decisions, promotional planning, pricing, selling, and contingency planning. Market planning stresses the importance

WHAT ARE THE FOUR CORES?

Business development activityBusiness LoansTwo loans were recently made from the Revolving Loan Fund totaling $342,847

Northland Kilns, Inc., Bagley To purchase equipment

Headwaters Housing Development Corporation, BemidjiTo fund housing construction

One loan was recently made from the Lake of the Woods Loan Fund totaling $60,000

Co-op Service, Inc. of BaudetteTo purchase a semi truck and trailer for fuel transit

Microloans

(Continued Next Page)

Technical AssistanceFive businesses from Baudette, Hallock and Bemidji received $3,640 in outside consulting for management and technical assistance.

Business counseling and loans are available to help entrepreneurs develop small business and self-employment opportunities.

Three loans were recently made totaling $56,150

Leon Osmundson Services, Bemidji

Trandem Custom Upholstery, Thief River Falls

Hot Shots Tanning & Video, Roseau

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of focusing on matching the business owner’s dream with the needs and wants of customers, and interacting in a competitive marketplace. Core III – Cash Flow Planning presents detailed strategies for preparing a cash flow projection, projecting sales, setting goals, and contingency planning. It focuses on help with understanding that the business and the person are separate economic entities. Cash Flow Planning help clarify personal financial needs from the financial needs of the business. Core IV – Operations Planning presents key issues and strategies for having a legitimate business, compliance with all legal requirements, and effective business operations. It helps identify what work must be done, how all of the work will be done, and who will do the work. Operations Planning helps you identify the various “hats” you, the business owner, must wear and how to stay focused.

People who have taken this course in the past have done so either because they wanted to start a business, or because they wanted to operate an existing business in a better way. Participants need a desire to learn how to create a comprehensive and realistic business plan and to apply this knowledge to a real business project in real time.

Instruction will be provided by NMF Entrepreneur Development staff and the Small Business Development Center.

Bemidji, NMF Conference Room, 9:00 am - 4:00 pmCORE I Success Planning& CORE II Market Planning ..................June 20Core III Cash Flow Planning & Core IV Operations Planning ............June 26CORE I Success Planning & CORE II Market Planning ................... July 10CORE III Cash Flow Planning & CORE IV Operations Planning ........... July 31CORE I Success Planning & CORE II Market Planning ...............August 14Core III Cash Flow Planning & Core IV Operations Planning .........August 28CORE I Success Planning & CORE II Market Planning ........ September 11

CORE III Cash Flow Planning & Core IV Operations Planning .. September 25CORE I Success Planning & CORE II Market Planning ...............October 9Core III Cash Flow Planning & Core IV Operations Planning .......October 23

Fosston, American Federal Bank, 9:00 am - 4:00 pmCORE I Success Planning & CORE II Market Planning ................... July 30CORE III Cash Flow Planning & CORE IV Operations Planning .........August 6

Thief River Falls, Public Library, 9:30 am – 4:30 pmCORE I Success Planning & CORE II Market Planning ..............August 18CORE III Cash Flow Planning & CORE IV Operations Planning .......August 25

Fosston, First Care, 6:00 pm - 9:00 pmCORE I Success Planning ................October 14CORE II Market Planning .................October 21CORE III Cash Flow Planning ..........October 28CORE IV Operations Planning .......November 4

Crookston, Valley Technology Park, 6:00 pm – 9:00 pmCORE I Success Planning ....................August 5CORE II Market Planning ...................August 12CORE III Cash Flow Planning ............August 19CORE IV Operations Planning ...........August 26

The courses held in at the NMF office, Bemidji, the American Federal Bank, Fosston and Thief River Falls will be delivered in two 6-hour workshops. Registration fee for the workshop series will be $150. The courses held at First Care in Fosston and the Crookston courses are 3 hours and may be taken separately for a fee of $50 each, or all for $150. Scholarships are available in some cases. For more information or to register, contact Diane Morey, NMF Business Development Specialist at 218-759-2057 / toll-free 800-659-7859 or e-mail dianem@nwmf.org.

Times and locations for Roseau and Warroad sessions, to be held in the fall, will be announced soon. Please check the Events & Workshops page at www.nwmf.org for forms and updates.

COURSE SCHEDULE:

4225 Technology Drive NWBemidji, MN 56601

NONPROFIT ORG.U.S. Postage

PAIDBemidji, MN

56601Permit No. 36

RETURN SERVICE REQUESTED

cOntact uS: 218-759-2057 • 800-659-7859 • nwmf@nwmf.org

NMF LeaderImpact -for more information go to www.nmfleaderimpact.com

NOTE: Participants commit to both sessions

Session I: October 21, 22 & 23(11:30 a.m. start time on the 21st through 4:30 p.m. on the 23rd)

Session II: January 27, 28 & 29th(Starts with dinner on the 27th)

Location: Swenson House, Thief River Falls

Become A Great Leader. Make An Impact On Your Business.Success starts with your leadership, and NMF LeaderImpact will help you to become better at what you do. Through two transformational leadership retreats and twelve weeks

upcoming eventsof integrated Action Learning Lab, you’ll arm yourself with critical leadership skills and strategies to improve the efficiency of your business.

NMF LeaderImpact is a one-of-a-kind training program.Whether you measure success in profits, membership or success stories, your team will benefit from the improved leadership that you will display. Learn to lead, and you’ll find success in business, community and life.

Contact Jane McKelvy (218-759-2057 – e-mail janem@nwmf.org) for more information

IDEA Competition - The IDEA website www.ideacompetition.org has been updated and will be ready for round one applications on September 1st. Deadline is November 30, 2009.

Visit our Websitewww.nwmf.org