(00:00:00) There are a lot of people who would like to be their own boss start their own business boy. If I only had the money hear it all the time. Well our guest today did start her own business 14 years ago Arlene to Candy essentially turned in Alfalfa field into the river would conference center today 14 years later Riverwood is the largest privately held Conference Center in the United States in Arlene to Candia is been a Minnesota's 1993 small business person of the year. She'll be officially receiving her award this Friday as I understand it and then it's off to Washington for ceremonies at the White House, right? That's correct. Thanks for joining us here in midday today and we would like those of you listening to join our conversation today about small business concerns how to start your your own business women in business all kinds of interesting issues that we'll be talking about Arlene. First of all. Congratulations on the award. Thank you very much now how It that you decided to start your own (00:01:02) business. Well, like so many other people who start their own business. It's usually because of something isn't going right in their life and many people want to start their own business to create Financial Independence to help support themselves to help support their children. I myself had just finished a great degree at the University of Minnesota and had my first job and was promptly fired and so I was feeling very unemployable. So I thought well, why was it that I was fired and I found out that the things that I was fired for the reasons that I was fired really made me much more qualified to own my own company than to work for someone else like what pitbull determination Independence creativity wanting a degree of autonomy wanting to make choices for myself. I Want To Be Your Own Boss. I wanted to be my own boss and I and and I find a lot of other entrepreneurs have the same attitude and so really from the dust and from the tears. And come a new beginning and so for me, I did some soul-searching out in the Alfalfa field on the Mississippi River that I owned and later turned into Riverwood and I came up with an idea that (00:02:10) worked. Now, I would think a lot of people aren't many people anyway would be in the same circumstance. But of course they immediately but up against the fact they don't have any money. How did you clear that (00:02:22) hurdle? Well, I was very lucky and I began a very long-term partnership with but Holton of the First National Bank of Elk River. He's the chair of that bank and I went to him with a very well-thought-out business plan and he had never heard of a conference center before that was way back in 1978 79, but he was so impressed with the thoroughness of the plan with my enthusiasm my determination to make it work that he said I believe in you and we're going to fund you and I never let him down. And I think that there are other avenues that small business people can take the SBA for instance when funding for Riverwood became too extensive for the bank to handle individually. He introduced me to donwell agofsky a senior loan officer with the SBA and they were able to put together a loan package a guaranteed loan package for (00:03:22) me. Now did did you have to scale back your dream initially because because of the financial situation or were you planning to start small (00:03:31) anyway, well, I had no idea that it would grow the way it did. I started very small I baby stepped my way forward and I've had 11 loan since 1979. And so it was a very slow methodical growth. It wasn't something that we just borrowed huge amounts of money and then built this large facility. If I had done that I wouldn't be in business today (00:03:58) our guest today is Arlene dick. Andrea who is Minnesota's small business person of the year, and we got a caller on the line. Hi. Hi. I would like to congratulate our lie and tell her that that conference center is absolutely beautiful, and I was wondering if she would talk a little bit about the sorts of planning that she had to do to make it accessible for handicapped people. Thank you. (00:04:23) Thank you for the lovely comment my Director of Finance and administration Michelle labyrinths. She is very concerned about issues as well as I for the handicapped and we've had many handicapped groups come out specifically because Riverwood it is so accessible and Michelle has done was look at all the state guidelines all the new ones and made sure that we complied and then we went a little further. We probably have one of the most artistic wonderful handicap ramps in any building. My former husband Stewart turned Chris was an artist and he made that not only accessible to handicapped but a delight to go up and down (00:04:59) now our regulations and laws and rules like the Ada act do they cause a lot of problems for small business people in general though. (00:05:10) They can if they're over-regulated and if they're inappropriate government has to realize a small business people don't have the resources of a General Motors or an IV IBM and They have to be appropriate. We need the rules. We need the regulations but we need the balance. (00:05:27) How is the balance right now? Do you think on in (00:05:30) general? I think that it's becoming difficult for small business to keep up with the ever expanding regulations that are placed on them. And that's what I'm hearing from other business owners right now. I'm able to comply and still be profitable. But I know other small businesses who have not been able to be to be able to reinvest their money in their business because the cost of regulations were so expensive or let's just say you want to start a small business, you know, this country was founded on the cottage industry and where you could start your business in your garage or your home that isn't possible anymore to a large degree. They want you because of zoning to start your business in an industrial park. Well, they are you can see where the overhead would be almost impossible for a startup company. (00:06:17) So there are a lot of hurdles that maybe aren't (00:06:20) necessary there. There may be some unwarranted. And I'm hoping that what I'd love to see is more of a partnership between government and business neither. We don't we don't want them as close Partners nor do we want them as enemies, but we want more of a symbiotic relationship where both are imbalance and neither draw the life blood out of the other and both benefit from from a wonderful balance. And Harmony. (00:06:45) Is it true that small businesses create most of the jobs in this country? (00:06:50) Oh, yes disappointing statistic is that 4.1 million jobs were lost from Fortune 500 companies in the 80s, but American small businesses have created 1.5 million and are creating more every day seventy percent of those jobs were in businesses of less than 20 employees. And for the first time in history, 1992 women-owned businesses employed more people than all the Fortune 500 companies combined. Hmm But we need to remember that small business depends on large business as some of their key client-based. So again, it's as good relationship between large business small business and government. That's what we're looking for (00:07:35) talk a little bit more about the about this business now, they create all the jobs. But then of course a lot of small businesses go out of business almost immediately do they not I mean, the failure rate is pretty (00:07:44) high. It's pretty high but hopefully with more of the education that small business people are receiving for instance a score program and through the SBA where we can get help the National Association of women business owners, which tries to educate women business owners to to survive and to prosper. Yes, the survival rate is getting higher so and I do encourage people to go into business for (00:08:11) themselves. Did you have any special problems as a woman going to business that you could identify? (00:08:17) Actually I've never noticed that I was so focused on what it is that I wanted to accomplish. That I never noticed that there was any sort of handicap because I was a woman I know other women who have had problems. I have not my banking my attorney my accounting everything has been very supportive and I've never noticed it for my clients either (00:08:43) Our Guest today is Arlene to Candia who is the founder and CEO of the river would companies which operates the river would Conference Center in the northwest suburbs lots of callers on the line. Let's take another caller how you're in Minnesota Public Radio. Yes. Hello. I'm wondering if Arlene could comment on the pluses and minuses of operating a small business out of one's home in particular a service type business. I'm thinking of doing that and I'm wondering when I might be getting into if it's a beneficial move to make or not. I'll hang up and listen. Thank you. (00:09:16) Well join them altitudes because that seems to be the trend in American business today. That companies in their quest to be lean and mean and profitable are keeping their organizations as small as possible and and they're employing outside consultants and out cut sides or suppliers. So you so I think it's a good idea and yes, there will be some restrictions. There's going to be restrictions in terms of how many cars you can have parked on your residential street how often deliveries can be made to your house but for goodness sakes it's wonderful idea. You can keep your your overhead down. The last thing you want is is an employee and so because that really creates a lot of paperwork and so I think it's a wonderful idea and what I'm hoping is going to happen is that as a byproduct of more Americans starting businesses small businesses in their home to be financially independent be their own boss that we're going to turn some of these bedroom communities into places where people actually live and work during the day. (00:10:23) Let's go to another caller how you're on Minnesota Public Radio. Hi. I'm wondering when Arlene thinks about the business climate in Minnesota and the continued efforts by the state legislature to raise income taxes. And if she thinks that's a detriment to Growing jobs in the state. (00:10:37) Well as an employer, I'm always very concerned about our state and our and its economy. And another tax increase of any kind is nothing to encourage job growth in this (00:10:46) state. Income taxes included. I mean for people who are making quite a bit of money. That's that's the thing that's currently under consideration. The argument on the one hand is that they made out pretty well during the 80s and and there they could afford to pay a little bit extra. The other argument is that it would drive business out of the state what he (00:11:05) well, please understand. I'm not a tax expert I can only talk from personal experience and what I'm hearing is I'm and also remember that I started on welfare when I began a long time ago. So I've been able to work my way up so I can relate to a lot of sides of this issue. But I think the issue here is that the people of Minnesota just don't want any more increases in taxes not for the so-called rich not for anybody. What they want is for the government to do what we have to do as homeowners as the citizens of the state and as business people and that is to substitute creativity Sweat Equity hard work for Capital and not buy our way out of problems. And and make ourselves more efficient as we possibly can. (00:11:54) Do you think this health care plan that they're talking about both at the state level and the national level. Is that going to help a business at all by reducing the amount of the health care costs that employers have to bear or is it just another add on another (00:12:10) cost? Well, I can't speak for myself. I know that we provide Health Care to our 90 employees and I I know what it's the effect that it's having however is to make small businesses and large businesses scared scared that it's going to be another burden on them. You have to remember that whenever you take money away from a small business that's taking money away for us to reinvest in our company to either enlarge it expand it to create a new profit Center and but most of all to create employment. We were able to do that with Riverwood. We were able to go out to a relatively rural area and create employment where none existed and that's why you want I can't speak about the technicalities of Taxation and health care, but I can tell you we need as much money as we can in profits to reinvest in our small companies (00:13:09) take another caller. Hi, you're on Minnesota Public Radio. Good afternoon. My name is Jeff backer and what I'm part owner of a mail-order company and we Market our product. Nationally. We're only a three year old company and our number one thing as company is your customer and getting them to know that you're around about your products and service instead of the normal advertising Publications TV or other things. What ideas do you have Arlene with getting your idea out promoting your idea to help grow your company? (00:13:44) Well, I think the old word networking is very important. And that you you know belong to as many organizations as you possibly can who may have customers in as members that that you would like to meet and relate to and you have to know that every transaction really begins with a relationship and so as many relationships as you can form and then of course great public relations does not hurt to volunteer your time to take leadership positions. You can be helping your community and helping your company at the same time. That's very rewarding try to get some editorial about your company something interesting or knew that you're doing in your company that others would find interesting and be a mentor and find a man or be a mentee any way to promote your company to let people know what it is. You have to offer them (00:14:43) Our Guest today is Arlene to Candia and our subject is small business. For a person to start their own business. They have to be a real risk taker Gambler. (00:14:52) Yes and a tad bit nuts. (00:14:57) Why do you say (00:14:57) that? Well, I think you have to you have to be willing to put everything you own on the line and I didn't want to have a lot of limited partners. I wanted to be 100% owner. I didn't want to have a lot of bosses. And so yes, you have to take tremendous risk. I can remember my mother telling me over and over Arlene. Don't do it my gosh. You've pledged your land. You pledged your house your refrigerator your car. It's going to be so humiliating when you fail and I said mother I'm just nuts enough to go ahead and also build it and they will come (00:15:30) now. So you would be personally liable though. If it does that is that a typical of a person starting a small business that they they could lose everything literally (00:15:39) everything. I have danced in my index finger from signing pledges to Banks (00:15:46) and yet A lot of people do this. (00:15:48) Yes, they do because (00:15:49) people start of any idea of top of your head are many new businesses are started Minnesota. (00:15:54) No, I don't I don't know but we're a great state to start businesses. And the reason is we have a fantastic Financial community that tends to find ways to encourage and help small businesses to grow and to start as a good state to start a business owned. But yes, you have to be willing to dive in and take a lot of risks if you're going to do so make sure that you're prepared that you've done your homework that you've talked to people who have started businesses like the one that you're thinking about starting and there's nothing like talking to someone who's successful at doing what it is you want to do to find out and then take copious notes write a wonderful. Thank you letter pay attention to detail and put together a business plan and Away, you go (00:16:44) sounds scary. (00:16:45) It is scary, but the their risks are well worth the rewards (00:16:50) take another caller how you're on Minnesota Public Radio. Yes, my name is Jerry Thomas and I've been a dreamer for a long time starting my own businesses. I just want to to congratulate. Mr. Candia for success and recognition. I like to know is starting a small business isn't for everyone and if if so or if not with first thing should we start with? (00:17:16) I didn't get the last part of your question, but I do want to thank you for your comment starting a business isn't for everyone you have to be willing to do whatever it takes to have Pitbull determination to sacrifice a lot of your life in order to get that business started. I worked about 90 hours a week for five years including the holidays when I first started Riverwood because I had to do everything I was that I cooked and I cleaned and I clip the lawn and I and I catered and I and I called on the phone and I did everything it took to save money. So I and and to bring clients in and you have to be willing to put that that time in but you know what from my perspective I wanted to provide Financial Independence for myself. I didn't want to depend on anybody else for my livelihood and I wanted to give my children some of the opportunities that I had had and so I I knew I could depend on myself. And so you do have to do a self-assessment. You might even want to contact an industrial psychologist, but you can you ask yourself this question. Can you depend on yourself? You know, that's what you really have to look at not can you depend on others first of all, but Kenny depend on yourself. Will you be there when the going gets tough and pull yourself off the floor when you're discouraged and move on and keep doing whatever it takes. (00:18:39) Is it true that at least a fair number of people after putting in that initial burst of energy. They start to make a little bit of money and suddenly they're driving the fancy car and they're hiring a lot of people to kind of do all the work for them. And then they go out of business all of us. Is that is that a fairly common phenomena? (00:18:56) I don't know how common it is, but I seen it I've seen it happen and I think that too many people when they start a business the two or three years and they start making a little bit of money and then they start to see themselves as fat cats and driving the big cars and living the lavish lifestyle. That's not for me and that's not for a People who are successful in business what they want to do in that businesses pay their Banker first reinvest in their businesses create more jobs pay themselves last and if you start rocking on your laurels early on you just may not ever get where you could have been if you would have kept focused and really done a good job instead of jump off too early and leading a life. That isn't going to get anybody anywhere. (00:19:38) And what point was there a point when you woke up one day and said, well the wolf isn't at the door anymore and I made it. I mean the thing is a success. I've got some money coming in and I'm kind of a big shot. Did you ever get to that (00:19:56) point? Well, I'm never tall enough to be a big shot, but I'm a little shot. But no, you know people say, how do you how do you do you do feel successful? And I've said I don't think in those terms I think in terms of coming out to Riverwood and looking at the beautiful grounds and my employees and the flowers and the Happy clients. And you know, we are only as successful as our last customer says we are and we have to know that success is is not a goal. It's a process every day and some days it's harder than others and some days were more successful than others and I did start to feel however about a year ago that she maybe I won't go out of business after all maybe (00:20:44) this is after 13 years and after having won a number of awards and all the rest of (00:20:49) it. I'm starting to feel like Riverwood is somewhat of a tradition now in this community and we survived the onslaught of 400 percent increase in competition. We survived many recessions going in business is like a roller coaster ride, and I know there's going to be some ups and I know there's going to be some downs, but I'm hoping that maybe the ups and the Downs are going to just start to level off a little bit (00:21:11) Our Guest today is Arlene D Candia who started the river would Conference Center and it is now grown into the largest privately-owned Conference Center in the United States. She has been named Minnesota's 1993 small business person of the year. They'll be a ceremony this Friday. I believe at the decathlon Club to honor our lane and then it's off to the White House for a White House ceremony. Now the callers on the line. Hi, hi, I'm a software developer and I been working as an independent, you know a one-person shop for about a year and doing strictly Word of Mouth advertising know, you know formal advertising or anything like that and I got to the point where I had more work than I could handle. So I got a cut brought a couple more programmers on board and now we triple the workforce and the word of mouth is growing the same rate. It was before which is to say there's not enough work to go around so I'm kind of curious about business networking. I've heard that there are like actual formal business networks. You can join to exchange leads and I want to know what you think about that. And also what do you think about conventional advertising for a service business like mine and also, where would I go? To find a mentor because the business aspect of the business is growing and I'm not really, you know schooled in business. I'm a programmer. So what do I (00:22:24) do? Well, I think the first thing you should do is take a look at our community pick out somebody that you admire greatly and whom you would like to be like and call that person up and ask if he or she would Mentor you and that person can lead you to the answers to many of your next questions. But I do know that that networking is is a wonderful way to continue to increase your business and I applaud you for starting your business and I applaud you for hiring people. It's great that you're now employing people (00:22:58) tough, toe to lay them off. I would think is it not well, isn't that one of the harder Parts about being a business (00:23:03) owner? It's the worst. It's the very worst. We've never had to lay anybody off. We've had to let a few people go and I will never forget the first time I let someone go I didn't sleep for two nights. I Cry. Through the whole process the person kept looking at me and all I could do was just say I'm just so sorry. I would just just didn't work out but at Riverwood it is so important and for other small businesses who are in the service industry or any any business for that matter that your employees are the heart and soul of your company and that Riverwood. We don't necessarily hire people because they have outstanding impressive credentials and degrees and experience. We hire people because of their character and their personalities and their attitudes about life and we know that we can count on these people to make the right decisions when when I'm not there because we operate 24 hours a day 7 days a week you have to be able to count on your employees to to make decisions that you know, the company would be proud of and you don't need you can of a policy and procedure for every single situation. So that's why it's really important to hire great people and when you hire great people you probably don't have to let too many people Go and in fact, we've had very little turnover in our management staff. Most of these people have been with me for years upon years and I still have my original employee. (00:24:25) Do you get the sense though that business in general is moving more and more away from hiring full-time people and hiring a lot more part-time people at more attempts to avoid paying benefits and all the (00:24:37) rest. I don't get that sense. I get a sense that small business is trying to respond to the need for balance and people's lives and the need for all different kinds of job jobs. For instance. We do a lot of job sharing we do a lot of part-time employment and you know, I think that there's there's much more sensitivity to to those sorts of issues in today's business place that there are many many different ways to attract good employees, but you need to be flexible and give Hours and and the work life's situation that that will make them want to stay with you because it is true good people can go anywhere. And so you want them to stay with you. (00:25:27) Now, there was a lot of hand wringing a course over this parental leave issue about whether or not that should be required. It was that ever an issue in your because you actually started as a working mother yourself and you've got employees now, is that a (00:25:44) well it wasn't an issue for me for one thing. The law didn't say we had to pay them when they left and I've had my three children and I know what it's like to try to balance family life and your business quite frankly. I look at the women who work for me who have young children and I just shake my head in amazement that they can do as well as they cannot work get all the work. They need done go out and have a child come back in six weeks and and pick it up again. I mean I am for that that Just latian (00:26:16) take another caller. Hi, you're on Minnesota Public Radio. Yes. And I'm thinking of expanding. Process of writing a business plan and I'm having a problem with doing the projections out of sales and goals things like that and the business has been in existence for approximately 15 months. Do you know of a place where I can go to sit down and talk to somebody and get some help or some consultation on (00:26:51) projections? Absolutely go to the SBA they have people there who can help you now when I did my projections, I always did worst-case scenarios. And and and I think that would be a good way for you to do it too. And I you know in a in a business plan you want to do your situation analysis and then you want to your financing and of it your product analysis and your personnel analysis and the SBA can help you with all of those issues. Good luck and remember that your projections argh estimates. (00:27:24) I'm not really I like sure. (00:27:27) X you're not going to get them what's going to coast of business. All you can do is try to get as close to the mark as you can get and if I remember being kind of cranky when I had to do all those projections and think how am I going to know what things cost but I'll tell you what I learned so much from projections. It made you think about every aspect of your business and what it would really cost and what kind of revenues you really could bring in and and what kind of marketing you would have to do to bring those revenues in and so it puts us through a lot of Hoops that we should be going through. Anyway, I wish you a lot of (00:28:01) luck. What is a business plan. Is that a formal document? You always hear about those or is it just somebody's what is a business (00:28:11) plan? Well, it's really a blueprint on how you see your business evolving. It gives all it outlines all aspects of the business. First of all the situation analysis who your Market is what niche in the market you might Have who your customer is that sort of thing so it and then then it goes on to look at financing. Where you going to get the money from how you going to pay it back. Are you going to need partners? Are you going to need investors and studies show that this financing part is very important that more people go out of business because of poor management and inadequate financing. So you really want to make sure that you have enough money to finance the first two or three years of your business and another part of that business plan again, is your product analysis at who needs it and why and what's what the prep what is the price and is there a convenience to your product that others don't have and then of course the last thing is Personnel who's going to work for you? Can you afford the talent and then take a look at yourself art? Do you really have what it takes to lead that company and if you don't then maybe you want to be the technical end of the company and hire somebody who can do the marketing and It can do the operations and set you free to do what you know, very very well (00:29:31) our most people that honest with themselves though. (00:29:34) Well, I'll tell you what I would hope so when it comes to starting a business particularly, if you're putting everything you own on the line. If you haven't been honest with yourself, you're going to find out sooner than you (00:29:44) like is it is financing the biggest problem. You mentioned that in terms of people getting into trouble that they just are basically undercapitalized and they run out of dough before their product catches on is (00:29:55) that I think that is a that is one of the major reasons. It's undercapitalized and poor management. Those are the two reasons most companies go out of business. (00:30:06) And what do you mean by poor management? They (00:30:09) don't you need an organization to create a product and a service you need to be able to to have everybody singing the same song off the same page and have and have a vision for that company that everybody shares that not only are you able to Create the problem, but you can create energy and enthusiasm within your organization. You need to be able to make payroll. And so you need to know a lot about accounting and the day-to-day operations of a business. It just can't be a wild-eyed entrepreneur. You have to know that it is that you need to create an organization to make those dreams come true and to keep them coming true for all for yourself and for your (00:30:53) employees. Now. How did you know you how did you pick up all this fundamental basic knowledge? You said you you basically it had a job and he got fired and decided to start your own business and bull your way (00:31:05) through. Well, I was fired because I should have probably run the place. I was fired from maybe I don't know but because I wanted things to be more organized more accountable. I wanted people to to be much more reliable and I made it a few waves. And so I thought well heck I'll start my own business then but you know, I was a homemaker. And for many many years and raised three children, I could tell you that a lot of the skills that I gleaned as a homemaker became very very useful and running my business organization attention to detail hard work determination. And so I came into the business with a lot of those skills intact, but if you know, you don't have some of those skills then by all means either learn them or hire someone who does I try to hire people who complement me and not necessarily are not clones of me, but just simply compliment my skills to their (00:32:05) skills. Take another caller. Hi, you're on Minnesota Public Radio. Yes. Go ahead. First of all, I'd like to congratulate our lean on what story (00:32:17) Thank you. (00:32:20) It sounds to me like you're actually going to have an opportunity to speak with mr. Clinton. And if you do what's the most important thing on your agenda to impress upon him about small businesses and the needs of small business. (00:32:33) Well, I don't know if I'll actually get to talk to mr. Clinton or to Hillary but I want big business. I want government to know that we need them and that they need us and that need we need to create in this country the greatest partnership between business and government of any free nation in this world and that small business is the foundation of the free enterprise system. It fuels our piece. It fuels our prosperity and I would like to see that attitude enacted and appreciated in this country more than it is. (00:33:12) Do you think that most politicians actually have any real understanding? Standing of what it means to operate a business. (00:33:19) Well, some politicians come from the business sector many many do not and that's why I think Partnerships are based on understanding and communication and the more that we can get government and business people to talk and to lock arms into creating the greatest Prosperity that we've ever known in this country. We're going to have a chance and so it's not to go separate and to do two different camps. It's to come together to get to know one another to redefine what success can be for this country and to make it happen together. We can't do it alone. And so I will not take an adversarial position against government because they've helped me when I needed it many times but I wanted them to get closer to the whole idea of what it takes to run a profitable business in this country and I'm willing to talk to any politician who will sit down with me. (00:34:09) Do you when you go to your meetings with your with your peers and a matter of fact is your conference is to hear a lot of people grow. Sing about government. Yes, I do. And what's the biggest (00:34:20) complaint workers comp property taxes and come taxes for the company. I've seen it's been pretty sad for me to see businesses that have tried very hard to sustain themselves and do a good job go out of business because they just couldn't afford to anymore. They they had to pay so much and income tax that they couldn't reinvest in their companies, you know profit is a funny thing profit means that it shows that you have money in cash to pay taxes income tax. But a lot of times you've actually taken that cash and reinvest it in the long-term growth of your company. And so so that doesn't leave you the money to pay the income taxes with and so I know we need to pay taxes. I want to pay taxes. We just need to get more That's (00:35:17) why do you suppose so many people are so suspicious of business owners a business people you were saying that you know people who actually have gone out of business because they couldn't afford the taxes or workers comp so on so forth and yet when pro-business forces if you will try to make that argument it gets pooh-poohed a lot. (00:35:41) Well, you can come up with any study you want but the truth of the matter is that we've seen businesses come off my mailing list because they've left the state they can't afford to do business here. They've had to go to a state that is less restrictive or has have fewer taxes and that that have fewer lower income taxes so that they can attract Executives to their business. I've seen it happen firsthand and there's a little difference between I think maybe that some of the public is against big business that they've seen Has been cold and ruthless sometimes but the small business person is an entirely different breed. We're scratching and clawing our way for survival. Just like any other average citizen. Our differences is that we are our organization as a little bigger than they have a CH family. (00:36:35) Our guest today is Arlene to Candia who is the founder and CEO of Riverwood companies, which operates the river would Conference Center in the Northwestern suburbs of Minneapolis. Lots of callers on the line with questions higher. I'm going to sort of public radio. Hello. (00:36:50) Hi Arlene. Yes, I just want to say congratulations. Thank you very much. It's people like you women like that you (00:36:57) that, you know will make this country very strong and I commend you for the work that you've done Arlene you talk today about the importance of networking and about mentoring with other business people have you in your career in your successful career? Have you had an opportunity? Ready to become involved with your local Chamber of (00:37:20) Commerce. Yes, we're involved with all the Chambers of Commerce has the Monticello the Elk River the twin West we have a new one out in our city of Otsego that we've just become involved with Minneapolis Chamber the Minnesota Chamber all of them and they all benefit us. Okay, (00:37:41) let's take another caller. Hi. I'm going to set up public radio. Yes. I just like to ask your guests to hear the comment made so often that by business people generally that government should be run more like a business and yet it seems as though there really aren't all that many successful business people going into government and I was just wondering what your guest thinks the reason for that would be (00:38:06) no probably too busy running our businesses and creating employment. I know that that's one of the One of the things that gives you the greatest satisfaction is to create employment and people have asked me if I would be interested in serving in in politics and I'm just so busy and focused on doing what it is that I'm doing maybe someday when I'm a little older and have put a wrap on Riverwood and know that it would be safe if I left it for a few years, but I think small business people business people in general. They don't have the patience for politics and we want to get things done. Now we want to take a look at an issue. Look at the the the various possibilities for improving it move off dead center get it done get it done. Right and I personally would not have the patience to sit there and talk and talk and talk. I just have to see I just have to see results right away so I can only speak for myself plus many. Us just don't have thick enough skin. I cry too easily. I could never go into politics. Let's (00:39:21) take another caller. How you run Minnesota Public Radio? No. Hello Arlene. Hi there. I want to congratulate you not only on your success, but on how beautiful you have Incorporated the use of the land that your property is on. Thank you and how you've preserved so much of it the natural landscape. (00:39:46) So I want you to know the new ducks are just about (00:39:48) there. Well, I think that's at that to me is such a model of how business people can perform and I also am so pleased to hear what you have to say because I have felt for a long time that small businesses are the ones that should really have a chance and how the backbone of the country. (00:40:09) Thank you for your (00:40:09) comments. Now. My question has to do with Paul Hawkins book. Are you familiar? (00:40:14) You with him. I've read it (00:40:16) on growing how growing a business is or how to grow business. Yes, and and and he says something to the fact that many businesses fail because of over financing and I'm curious to know how this fits in with the the statement to meet about under financing. (00:40:38) Well, I read the book about two years ago. And and that's an interesting point. I think what he was saying is that these companies had the money and they overspent they got too big they got to Lavish they put to their fancy office equipment and and and spent too much on plush digs and not enough on making sure that you produce enough revenues commensurate with with your expenses and other words. They had too much money to spend and so that doesn't give you a sense of urgency and I think that's the point that Paul was trying to make (00:41:19) steak another caller. Hi. Hello? Yes. Go ahead. Yes. I just have a question. How can you find where and how can you find good information on government assistance grants or loans if you want to start your own (00:41:33) business the SBA is a very best place in the world to start. Let me tell you when many people think that federal government can be too big and too uncaring the SBA in the state of Minnesota shows that it can really find creative ways to help support you and encourage small businesses to grow. So contact your local SBA office now, (00:41:53) is there a specific State organization that helps to we got the the small business administration SBA at the federal level. Is there a state equivalent of (00:42:02) that? It's the SBA the state of nature. (00:42:06) Yes. Okay. Let's take another caller. Hi, you're a Minnesota Public Radio. Yes. Hi Arlene. You are such an inspiration for women here. Thank you. And My question has to do with when you do need to hire out to get still skilled expertise perhaps in the legal area. How do you know when you reach someone who's really going to follow through and do a job the way you would be doing a (00:42:29) job mean? How did I find my (00:42:31) attorney your attorney and any other expertise when you need to find perhaps a developer or something like that and you know that they're really going to do a solid job for you (00:42:41) too. I was lucky my dad when he left town when I started my business. He brought me to his attorney Paulk labor camp and he said I'm leaving town. This is my daughter. She's starting a business you take care of her and Paul Claver Camp of Oppenheimer wolf and Donnelly has taken good care of me over the years as well as our Negroes my accountant. Now what I what I've always done as a small business person is first figure out can I do this job myself and I our first inclination to say I can't do it. I don't have the expertise. I don't have the time but first see if there's any Area of it that you can do yourself so you can save the money again to reinvest in your company. And if you can't then go ahead and interview a number of people don't you know go a lot with your gut reaction in your intuition and see if there's a personality mix there. See if there's a that that your culture would be the right culture for this person. You might be too big you might be too small so start off by interviewing yourself and then ask people who have had luck with a kinds of Specialists that you're looking at do a lot of research first before you make that (00:43:50) decision. All right, great. Thank you. You're welcome. Thanks a lot for your call. Let's take another caller. Hi, you're on Minnesota Public Radio. Yes. Thank you. Very much. Congratulations are laying on all of your work and and the struggles to make Riverwood. So successful. I really want to compliment you on that. I have a comment in the form of a question two of them for you one Garriott asked you earlier about the general nature of impressions of Large business or business in general and whether or not our pooh-poohing of the prophets and so forth. And I wonder if that hasn't been in large part due to the media that has created these kind of disinformation pieces and hasn't really look at we missed. I'm sorry we missed part of your part of your comment there when your phone went out of when out of I'm on my car phone, I'm getting deep down there and my comment was that isn't it part in part due to the disinformation about small business and business in general making profits due in large part to the fact that the media puts out a pretty a portion of this information on the issue and doesn't really look at business from the proper perspective sort of an opinionated perspective and the other point that I wanted to a question I wanted to make and I don't want to confuse the two although they're relevant to each other is the issue of you talked about being in politics. And you said that small business people generally want to get in there and get things done and and then get on with things I on the contrary having doubt Good deal with the legislature have a counter opinion. I think that's in part. Their problem is that they go in there. They don't do their due diligence. They don't know what they're doing and they don't often times get the amount of information that's visions. And so I'd like your comment on both of those. Thanks Eileen. (00:45:31) Congratulations. Thank you very much. Really good (00:45:33) questions. First one a media bias against business. You think that's true. (00:45:38) I think there has been some but again, I think that we need to try to create understanding between business and the media and I have seen both papers both the Minneapolis Star and the st. Paul Pioneer Press recently put people on staff who are very much Pro small business and who are covering our stories quite. Well. (00:45:59) What did you what do you perceive as an anti-business slant that that bugs you over the years what any examples come to mind at all (00:46:09) any generalization any generalization where? Business does this and business does that I mean there is a human factor to every story and not you know, if one big business makes a mistake then then they lump all other big business in with it. And so I think as as readers, it's our responsibility to read print and know and and to be able to decipher fact from fiction when we have some responsibility. We just can't always blame the media. Although they need to do more of their due diligence in finding out the facts also, but the readers have to not lump any group of people together because that's predicate (00:46:47) prejudicial and what about the other half of the gentleman's question that is that his concern is that it isn't that government is too slow to act he's concerned that they just rush in and make changes acting willy-nilly without appropriate (00:47:06) information. Well, I think what what he's detecting there is sometimes government wants to do what they want to do when they want to do it how they want to do it. And so It's not a matter that they maybe haven't done to their due diligence. Maybe they've got the done their due diligence on things to give them the information that they want to hear. And so I can't speak for that. I am not an expert on government. Like I said, I've been holed up in Monticello running a business for 14 years. (00:47:36) I think we have time for one more caller how you're in Minnesota Public Radio. Hi, I just like to jump back to the basics for a moment. Okay, very briefly prior to starting a business is very essential to write a good thorough business plan the community colleges offer this plan. And if you do go through your local Chamber of Commerce and get a reference from them, you will be sponsored. Your can't be sponsored by the Better Business Bureau at no cost. And I think it's important for everybody to check that out. Great point Thank you. Thank you. I love your show. Thank you for your call. You know, it says on your we're about out of time here. It says on your biography that we receive Darlene that quote you are an energetic entrepreneur. Six Active Civic leader mother of three and you write poetry and fiction in your spare time. Correct what spare (00:48:22) time I have a lot of spare time. I decided five years ago that I was going to sacrifice some of my so-called success for more private time. And so I decided to get a life and I wanted to have friends and I wanted to be with my family and I wanted to rest and I wanted to travel and I wanted to dream and I wanted to write poetry and I've done that (00:48:42) so you actually slowed up a (00:48:44) little bit. I slowed up a little bit and I was able to do that because my company was more mature and I hired wonderful people that I could count on to do the right thing when I wasn't there and so it's been great. By the way, we did change our name from Riverwood Conference Center to Riverwood the Metro business Resort because we have so many beautiful Resort amenities. I did want to let people know that we also have a restaurant that I opened a year ago today and it's important for businesses to keep creating profit centers that dovetail nicely into their existing businesses. And so now I have a Wonderful destination Resort, perfect for a drive in the company country called Timothy's. I love (00:49:19) it. And where are you located at? (00:49:21) Right past Rogers off Interstate 94 on the Mississippi River at the Albertville exit (00:49:26) and you get your state award Friday and then it's off to the White (00:49:29) House. Yes. I'm so excited and all my kids are coming with me. And thank you state of Minnesota. (00:49:35) Thank you for coming in today. Shiraishi. You're welcome. Our guest today is Arlene to Candy who is the founder and CEO of the river would companies which among other things operates the river would Conference Center. She has been named Minnesota's 1993 small business person of the year. Thanks so much for coming in.