DOUGLAS COUNTY

Economic
September 2009

IN S I G H T
THE ENTREPRENEURIAL SPIRIT
“At any point in time, about 10% of the population is thinking about or starting up a
new business.” ~ E. J. Reedy, Kauffman Foundation
One of the key strengths of the Alexandria regional community is the entrepreneurial
spirit of our residents. According to the MN Department of Employment &
Economic Development (DEED) there are over 1,200 businesses located in Douglas
County, the vast majority of which employ five people or less. While there is no
doubt that our large employers are key building blocks to our region’s success, our
small businesses are also critical to our solid economic base.

While the possibilities of entrepreneurial success can be very attractive, starting a

business is a very challenging undertaking. Each step towards sustainability and
success requires careful consideration and planning. Questions faced along the way
can include:
- What should my business specialize in to assure success?
INSIDE - What should the name be?
- Should I buy, build, or lease a facility?
- Where should I locate?
- How do I hire employees?
- How can I get the best return for my marketing dollars?
The list can become very overwhelming. Fortunately, there are a variety of resources
LETTER FROM THE available to assist entrepreneurs and business owners with successfully starting up
DIRECTOR and growing their businesses.
...2
Programs and services of the AAEDC include: Business planning assistance, site
selection assistance, commercial financial assistance, demographics & statistical
information and analysis, business incentives, and business startup advising. In
AAEDC BOARD OF addition, the AAEDC partners with the Customized Training Center of the Alexandria
DIRECTORS & STAFF Technical College to offer an Entrepreneur Boot Camp program twice a year to
...2 provides attendees with training and information on many facets of successfully
starting and growing a business.

ENTREPRENEURIAL The process of starting and growing a business is challenging in the best of times.
To help manage the start-up and growth process, the AAEDC strongly encourages
RESOURCES. . . 3
entrepreneurs to create and maintain an active business plan. Business planning
materials and assistance are available cost-free and confidentially through the
AAEDC to all residents and businesses of Douglas County.
2009 BIAD EVENT
...4 The AAEDC and other organizations strive to provide assistance to entrepreneurs
and business owners throughout the region. For assistance and resource information,
contact the AAEDC at (320) 763-4545.
 LETTER FROM THE DIRECTOR
As you have read in this newsletter, our focus
for this quarter is on entrepreneurship and our
efforts as an economic development organization
to support the entrepreneurial climate for this
region.
In our current economic state, many people seize AAEDC BOARD OF DIRECTORS
AND REPRESENTATION
this time to explore their entrepreneurial desires.
Many will see a job loss, cut in pay, or cut in David Kjos, President
responsibilities with their current position as that Alexandria Township
push to start their own venture. Entrepreneurship
tends to thrive in economic downturns, but one must be careful to avoid Rick Paulsen, Vice-President
the common pitfalls during these times. City of Alexandria

It is imperative that a person aspiring to start or grow their business take Corliss Stark, Secretary/Treasurer
time to evaluate their business and marketing plans. With the loss of a City of Alexandria
job or change in employment, one may rush to replace the income lost
Deena Steffl
by the change. Too often the short term focus and urgency to replace LaGrand Township
income overtake the desire to create a sound plan. Take your time, work
with the service providers, and launch a plan based on business trends, Kevin Gorghuber
not emotions. Carlos Township
In these changing banking and financial times, entrepreneurs find it Mary New
far too easy to access credit card debt as a financing plan for their Hudson Township
businesses. Credit card debt generally provides a good short-term
financing plan for a business, but it can be very expensive, and often, Mark Grandgenett
very difficult to find a bank willing to assist in the payoff of the Lake Mary Township
unsecured debt. I try to convince and direct entrepreneurs to the more Dr. Kevin Kopischke
traditional financing routes, but if you must use credit cards to start City of Alexandria
your business, make sure to monitor your monthly balances, focus
on principal reduction to limit your exposure to long payments, and AAEDC STAFF
continue to work with your local lender to secure traditional financing.
Jason Murray
I hate to be blunt with bad news, but don’t expect a grant or a stimulus Executive Director
payment to start your business. Grants for for-profit businesses are (320) 763-4545
nonexistent and a myth. Don’t believe the promoters that offer grant Patrick Kalina
lists or books that promise to guide you to free money. Some small Marketing & Communication
educational grants may be available, but it certainly will not be for cash Coordinator
flow or operations for your business. (320) 763-4545
I urge you to explore and work with those service providers highlighted Sarah Willhite
in the newsletter. There are some excellent resources throughout the Administrative Assistant
region to assist you with starting and growing your business. (320) 763-4545
ECONOMIC INSIGHT is edited and
OUR MISSION published by Patrick Kalina at the
The mission of the Alexandria Area Economic Development Commission is Alexandria Area Economic Development
to drive the economic wealth and stability of our communities. Commission, 610 Fillmore St., Suite 1,
Alexandria MN 56308.

2 ALEXANDRIA AREA ECONOMIC DEVELOPMENT COMMISSION

 ENTREPRENEURIAL RESOURCES
REGIONAL ENTREPRENEURIAL ASSISTANCE/SERVICES
AAEDC
The Alexandria Area Economic Development Commission provides
assistance to individuals, entrepreneurs, and businesses of all sizes
throughout the Douglas County area confidentially and free-of-charge.
Areas of service include: Business planning, site selection assistance,
financial packaging, commercial tax incentives, demographic
information, revolving loan funds, and general business counseling.
From working on business start-up and expansion projects and
company recruitment, to workforce and community development
initiatives, the AAEDC has been involved in the growth and
development of the businesses and communities of Douglas County
since 1990.
WEST CENTRAL INITIATIVE
West Central Initiative (WCI) has focused on supporting workers,
businesses and families in west central Minnesota since its inception
in 1986. The foundation provides flexible, accessible, purposeful
programs designed to have lasting impact, including several loan
programs available to assist individuals, businesses and communities
throughout our region.
WCI is considered a “gap” lender that can finance 10-40 percent of
qualifying projects. WCI does not compete with local lenders. Their
funds are available as a part of the total financing package and cannot
be utilized in projects that can be financed entirely by traditional
sources.
For more information about WCI’s loan programs, visit,
www.wcif.org, or contact Dale Umlauf, Vice President—Business
Development, at (800) 735-2239, or dale@wcif.org.
SMALL BUSINESS DEVELOPMENT CENTERS (SBDC)
Spread throughout 9 regions in Minnesota, the Small Business
Development Centers provide counseling and training services to
entrepreneurs and business owners. Focus areas include business
planning, financial analysis, marketing, and general advising in both
an individual and group workshop/seminar type setting.The Moorhead/Northwest regional SBDC provides
assistance to individuals and businesses in Becker, Clay, Douglas, Grant, Otter Tail, Pope, Stevens, Traverse, and
Wilkin counties and can be contacted by going to www.mnsbdc.com. Counseling to entrepreneurs and established
businesses is provided free of charge and workshops/seminar attendance is for a nominal fee.
ENTREPRENEUR
BOOT CAMP
The Customized Training Center of
Alexandria Technical College and the
AAEDC will be offering an Entrepreneur
Boot Camp program on Thursday &
Friday, October 1st & 2nd. Class will
run from 8:00 am to 4:30 pm both days
and will cover a wide variety of topics,
including:
The Need for a Business Plan, Business
Structure, Creating & Evaluating
Cash Flow Statements, Small Business
Financing, Business Insurance Basics,
Sales & Marketing, Internet Utilization,
Accounting 101, and others.
The Entrepreneur Boot Camp program is a
collaboration of the Alexandria Technical
College Customized Training Center and
AAEDC, and is specifically tailored to
address the needs of entrepreneurs and
small business owners throughout our
region.
For more information or to register, please
contact the AAEDC at (320) 763-4545 or
ATC Customized Training Center at
(320) 762-4510. Cost to attend is $40.00
per person, and includes all materials,
lunches, and refreshments for both days.

SCORE
The SCORE Association, headquartered in Washington, D.C., is a nonprofit association dedicated to entrepreneurial
education and the formation, growth and success of small businesses nationwide. Their public service mission is to
provide face-to-face and email business counseling to help small businesses evaluate plans, stabilize, grow, innovate
and succeed.
Minnesota’s SCORE counselors are retired business owners and leaders, and provide free and confidential
counseling. They also offer workshops (for a modest fee) to assist both start-up and established small business
owners.
To learn more about the business assistance programs of SCORE or to contact the St. Cloud Regional Chapter, go to
www.stcloudscore.org or call (320) 240-1332.
ECONOMIC INSIGHT 3
 Presorted
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Paid
Alexandria, MN
Permit No. 161
610 Fillmore St, Suite 1
Alexandria, MN 56308
Ph.: 320.763.4545
Fax: 320.763.4457
Email: aaedc@rea-alp.com
Web: www.alexmn.org

Contact Patrick Kalina to make address

corrections by phone at 320.763.4545 or
by email at pkalina@rea-alp.com.

The Alexandria Area Economic Development Commission is a local collaborative effort with funding provided by the City of
Alexandria, City of Garfield, Douglas County, and the Townships of Alexandria, Brandon, Carlos, Hudson, LaGrand, and Lake Mary.

2009 BUSINESS & INDUSTRIAL APPRECIATION DAY

The Aagard Group, LLC has been selected by the AAEDC & Alexandria Lakes Area Chamber of Commerce Boards
of Directors to receive the 2009 Business & Industrial Appreciation Day (BIAD) award due to the company’s
exceptional growth and commitment to the Alexandria regional community.

From its beginnings in 1997 in a 9,500 sq. ft. facility in Carlos, Aagard has grown exceptionally and today designs,
engineers, and manufactures automated packaging machinery in a 75,500 sq. ft. facility in Alexandria and sells to
customers throughout the United States. The leadership and team members at Aagard are committed to “Redefining
the Standard” in automated packaging machinery. To continue meeting customer demand in their manufacturing
niche, Aagard has increased its employment by more than 50% over the past year. Aagard currently employs over
100 people from throughout the region.

Recipients of the BIAD award are selected based upon the following criteria:
• Growth in number of employees; the impact of the business on the job market
• Increase in sales and/or unit volume; an indication of continued growth
• Capital Investment; an indication of commitment by the business to increase community capacity
• Community Contributions; evidence of the business’s investment in time, skills, and resources to assist in
community oriented projects.

This year’s BIAD luncheon honoring The Aagard Group will be taking place on Tuesday, October 27th from 11:30am
- 1:00pm at the Arrowwood Resort & Conference Center in Alexandria. For additional information on the event or
to purchase tickets, please contact the AAEDC at (320) 763-4545 or Chamber of Commerce at (320) 763-3161.
4 AAEDC/ECONOMIC INSIGHT