Thinking Bigger Business Magazine - August 2016

VOL. 25 // ISSUE 8 // AUGUST 2016

ANIMAL HEALTH Why KC leads the world.

SAVE THOSE SALES Keep your clients from jumping ship.

CITY GYM

The fitness center’s clients lift weights—and their spirits.

» iThinkBigger.com

L E A P B O L D LY

Playing it safe never leads to success. If you want to be successful you have to take chances. Scary chances.

Crap-your-pants chances.

You can’t wade into opportunity.

You have to leap boldly. springboardcreative.biz

CONTENTS

AUGUS T 201 6 VOL. 25 // ISSUE 8

D E PA R T M E N T S

07 08 09 10 14 14 16 49 50

The Bigger Picture Biz Bits Legislative Briefs Calendar 25 Under 25® Updates BIG | deals At A Glance BIG | shots BIG | talk

OUTLOOK

20

KC MADE IT Lucky Elixir

Bringing kombucha to KC.

22

KC FUTURES Training for the Future

Full Employment Council wins national grants for new initiative.

44

BUILDING KC Animal Health

Why the world looks to Kansas City.

S M A R T S T R AT E G I E S

33

ENTREPRENEURIAL JOURNEY

28 JOIN IN George Palomares does lateral raises at City Gym. The Waldo-based fitness center has built a loyal membership thanks partly to a no-contract policy and its onboarding programs.

Reminders That Work

Stop forgetting to remember.

34

BIGGER | growth Innovation Is for Everyone

You don’t need an R&D department to innovate.

36

BIGGER | sales Client Retention

3 signs your customers are ready to split.

38

5 ways to prepare for tighter times.

BIGGER | law New Overtime Rules

What you need to do now.

4

ON T COV HE ER

‘Our Culture Is Our Product’

BIGGER | finance Ready for a Downswing?

40

KC ENTREPRENEUR

THINKING BIGGER BUSINESS // August 2016

City Gym isn’t just a fitness center—it’s also a community.

Learn how Hailee Bland-Walsh has built a healthy business.

C O M PA N Y T O WAT C H

F E AT U R E

SCALEUP! KC

19 A Match Made in KC

24 Make It Work

42 Friend That Cooks

Vino Pair shows subscribers how to pair wine and food.

Meet the entrepreneurs building KC’s fashion and textile sector.

A part-time gig turned into a multicity business for Brandon O’Dell.

SMART COMPANIES THINKING BIGGER®

5

CONTENTS

AUGUST 2016

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See the weekly lineup on p. 23

valuable strategy articles!

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James Hart Managing Editor SALES + MARKETING

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Carolyn Addington Production and Traffic Manager Jen Ross Graphic Designer Kevin Fullerton Design Consultant Dan Videtich Photography Photographer

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Greg Ballew, Dawn Bormann, Marvin Carolina Jr., Pete Dulin, Tim Sernett, Nicole Tackett P.O. Box 754, Shawnee Mission, Kansas 66201-0754 (913) 432-6690 // (888) 432-6444 // FAX (913) 432-6676 // editor@ithinkbigger.com sales@ithinkbigger.com // iThinkBigger.com A WBENC-Certified Women’s Business Enterprise See our SRDS listing at www.SRDS.com FOR ARTICLE REPRINTS

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6

Aspire for More Shawn Kinkade 3 Things You Need From Others

Strategic Leadership Margaret Reynolds 3 Silver Bullets for Top Performance

WhiteSpace Revenue Zone Elizabeth Usovicz How to Prevent Past Due Receivables

HEMP Mentor Maxims Jim Huntington From Someone Who’s Been in Your Shoes

THINKING BIGGER BUSINESS // August 2016

Contact ReprintPros // Jeremy Ellis (949) 702-5390 or www.reprintpros.com

Copyright © 2016, Thinking Bigger Business Media, Inc. All rights reserved. The information gathered and opinions expressed by the authors are intended to communicate information and are not necessarily the views of this publication.

The intent of this publication is to provide business professionals with informative and interesting articles and news. These articles, and any opinions expressed in them, are for general information only and are not intended to provide specific advice or recommendations for any individual or business. Appropriate legal, accounting, financial or medical advice or other expert assistance should always be sought from a competent professional. We are not responsible for the content of any paid advertisements. Reproduction or use, without permission, of editorial or graphic content, in any manner is prohibited. Thinking Bigger Business(ISSN 1068-2422) is published 12 times a year by Thinking Bigger Business Media, Inc. Subscriptions are $24.99 per year. This amount includes varying sales taxes, which are contingent upon the location in which the publication is sold.

Standard Mail Postage Paid at Shawnee Mission, KS.

THE BIGGER PICTURE

Finding a Straight Path to Finish 2016

A

ny grade-schooler can tell you that

So, what’s the point of all this?

the shortest distance between

What business owner among us hasn’t at

two points is a straight line.

one time or another felt like they were going

But humans have a natural tendency to walk

in circles? We think we are going in a new direction that will take us to a better place or

in circles. A writer in a recent issue of “The New Yorker” talked about his experience of getting lost in

outcome, only to arrive back at nearly the same place

the woods and looping aimlessly. Once he finally made it

we started. We’ve all experienced it, perhaps more than

home, he investigated the concept of “circular trails” and

once. And our failure to meet our goal probably wasn’t

discovered it is prevalent in nature, not just with humans

due to some single major mistake; it was likely due to

but also with various mammals, ants and caterpillars.

accumulated missteps that gradually led us off course.

For nearly a century, researchers attempted to attribute

Where is your business at the midpoint of 2016? If it’s

this phenomenon to a circling instinct in the brain or

wandering in circles, the key is to find the real path back

to biological explanations. In the last decade, however,

before darkness descends and freezing nighttime tem-

a researcher named Jan Souman concluded that this

peratures set in, or before customers flee and cash dries

tendency is not due to a circling instinct. Instead, he

up. Pull out a compass and set a straight path. There are

proffered, our propensity to wander in circles is due to a

plenty of resources in Kansas City—business develop-

series of small navigational errors that, when compounded,

ment organizations, other entrepreneurs, and mentors

result in drastic course deviations that cause us to loop

and advisers of all types—that can help you chart a direct

back on ourselves.

and prosperous course.

Ke lly S ca n l o n

// Publisher // kscanlon@iThinkBigger.com

SMART COMPANIES THINKING BIGGER®

7

BIZ BITS

Aug. 8 Deadline for KC Business Mentoring Awards

K-State Students to Offer Free Business Consulting Help

There’s still a little time left to nominate someone for the Kansas City Business Mentoring Awards, presented by the Helzberg Entrepreneurial Mentoring Program and Thinking Bigger Business Media. Just visit www.bit.ly/29uijJZ

by Aug. 8 and use the form there to suggest a worthy mentor. Winners in three categories will be recognized during a luncheon on Nov. 30 at the Sheraton Overland Park. Get more information at www.kcmentoringawards.com.

Kansas State University is looking for companies willing to let its students help them with real-life business problems.

To earn an entrepreneurship degree, each student must complete one of these projects. K-State is seeking companies that would work with students during the fall semester on a business problem that could be solved by Dec. 1. Email cjackson@ k-state.edu for more information.

Aug. 24 Deadline for MO Idea Funds The Missouri Technology Corporation is taking applications through Aug. 24 for the next round of Missouri IDEA Funds. The

Thinking Bigger?

Let’s Talk.

If you’re thinking bigger for your business, we should talk.

8

THINKING BIGGER BUSINESS // August 2016

$250K Up for Grabs in Contest for Women-Led Companies If your company is a high-potential, woman-led consumer business, you could be eligible to compete in the new Babson Breakaway Challenge, a national contest that will award $250,000 in funding and other prizes next month. The application deadline is Sept. 10. Semifinalists will be announced on Sept. 15 and will present at a Demo Day on Sept. 23. Finalists will compete on Sept. 30. To enter, visit www.babsonbreakaway.com/apply.

Why We Aren’t Starting More New Businesses

Expanding your fleet? Adding square footage to your warehouse? Squeezing more out of your manufacturing line?

Keeping subcontractors in-line, ontime, every time?

816.753.2166 Commenco.com/ThinkingBig

program provides awards to young companies at a variety of levels, from pre-seed to seed to venture capital and beyond. The funding is available on a co-investment basis—that is, applicants must already have private investment lined up, too. For more information, contact Dan Kaemmerer at (573) 522-0200 or daniel.kaemmerer@ded.mo.gov.

Radio Solutions Channel Partner

The United States isn’t creating new businesses at the rate it did before the Great Recession, and an anticompetitive environment is part of the problem, the Kauffman Foundation argues. Its researchers are recommending a handful of policy changes, including new limits on the scope of noncompete agreements, more accountability for licensing boards and a rework of economic development programs, which tend to favor larger companies. You can read the full report at www.bit.ly/29JyaEU.

L E G I S L AT I V E B R I E F S

FEDERAL Higher Fees Coming for Debit Card Transactions?

The Financial CHOICE Act of 2016 takes aim at the Dodd-Frank Act, but it also includes a measure that could affect small retailers. Right now, the nation’s largest banks—those with more than $10 billion in assets—can’t charge a “swipe fee” much higher than 22 cents per debit card transaction. The CHOICE Act would do away with the cap. The larger banks say it’s only fair because small lenders don’t have to comply with the cap. The National Retail Federation, however, says the proposal could raise costs for many small merchants.

A Plan to Soften New Overtime Rules A new bill would modify overtime rules that are set to take effect in December. Under a rule finalized this summer, the threshold

for overtime pay would go from $23,660 per year to $47,476—a sudden increase for many small employers. The Overtime Reform and Enhancement Act would raise the threshold to $35,984 this December, then gradually raise it to $47,476 in 2019. (Read more about the overtime changes on p. 40 of this issue.)

MISSOURI New Incentive for Prodigal Companies The Bring Jobs Home Act is designed to persuade companies that left Missouri for other states to come back. The legislation, which Gov. Jay Nixon signed in July, creates a tax deduction worth up to 50 percent of the relocation costs for returning to the Show Me State. Companies that receive the deduction must stay in Missouri

for at least 10 years. The program is capped at $5 million in deductions per year.

New Program to Attract Conventions The Meet Me in Missouri Act (H.B. 1698) creates a new grant program that will help convention and visitors bureaus to attract major events to their cities. The program would provide grants of up to $1 million per convention, with a program cap of $3 million per year.

Gov. Nixon signed it into law last month.

Governor Vetoes E-Verify Workaround Gov. Nixon vetoed H.B. 1870, which would have allowed businesses that receive government contracts or tax incentives to opt out of enrolling in E-Verify. (State law requires those companies to participate in E-Verify.) The bill’s sponsor, Rep. Denny Hoskins of Warrensburg, argued that employees already have to provide ID and fill out tax paperwork. Hoskins said he’ll seek an override of the veto.

SMART COMPANIES THINKING BIGGER®

9

K C CA L E N DA R AUGUST

09 +11 QuickBooks Fundamentals This two-day, beginner-level course will show you how to use the popular accounting software to run your business. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 12:30–4:30 p.m. $189.

INFORMATION/REGISTRATION »

(913) 469-3878 or ceregistration@jccc.edu

12

The Business of T-Shirts With Jonathan Bender Get an inside look at Kansas City’s booming T-shirt businesses via this panel led by Recommended Daily’s Jonathan Bender. Mid-Continent Public Library-Woodneath Library Center, 8900 N.E. Flintlock Road, Kansas City, Mo. 7-8:30 p.m. Free, but registration is required.

INFORMATION/REGISTRATION »

www.mymcpl.org

09 NEJC Chamber Second Tuesday After Hours Join the Northeast Johnson County Chamber for a laidback, after-hours networking session. Blue Moose Bar & Grill, 4160 W. 71st St., Prairie Village. 4:30–6 p.m.

INFORMATION/REGISTRATION »

(913) 262-2141 or www.nejcchamber.com

17

11 QuickBooks: How to Track Jobs, Time and Mileage If you’re a contractor or a service-based business, this workshop will show you how to use QuickBooks to make sure your company is profitable. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 9:30–11:30 a.m. $59.

INFORMATION/REGISTRATION »

10 OP Chamber Wednesday Wake-Up Join the Overland Park Chamber and other local business leaders for a networking session at Arvest Bank, 7401 W. 135th St., Overland Park. 8–9 a.m. Free for members, $10 for nonmembers.

INFORMATION/REGISTRATION »

opcc@opchamber.org or (913) 491-3600

PCI and GLBA Compliance Training This course—which includes training on the Payment Card Industry (PCI) Data Security Standard and the Gramm-Leach-Bliley Act (GLBA)—will help you reduce the risk of theft and credit card fraud in your business. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 8–10 a.m. $79.

INFORMATION/REGISTRATION »

(913) 469-3878 or ceregistration@jccc.edu

(913) 469-3878 or ceregistration@jccc.edu

www.bit.ly/28L10CN or (913) 438-2282

13 Here’s the Pitch: Techniques That Sell Your Ideas Learn the basics to delivering the perfect presentation to clients, co-workers and other important stakeholders. This workshop will cover the “4-A Way to Communicating.” MidContinent Public Library-Blue Ridge Branch, 9253 Blue Ridge Blvd., Kansas City, Mo. 9:30 a.m. Free, but registration is required. sign INFORMATION/REGISTRATION »

here www.mymcpl.org

Simple Steps to Starting Your Business: Startup Basics

This workshop will help you stay compliant with tax regulations. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 1–5 p.m. $45.

INFORMATION/REGISTRATION »

INFORMATION/REGISTRATION »

(913) 469-3878 or ceregistration@jccc.edu

kansascity.score.org or (816) 235-6675

10

THINKING BIGGER BUSINESS // August 2016

Kevin Pike of Rank Fuse Interactive will show you how to use Google Analytics to support your company’s marketing plan. Presented by the Sprint Accelerator and the Enterprise Center of Johnson County.

Sprint Accelerator, 210 W. 19th Terrace, Kansas City, Mo. 11 a.m.–12:30 p.m. $15.

INFORMATION/REGISTRATION »

Learn how to test your business idea, and get up to speed on the factors that’ll influence your company’s success. This is the first of a three-part series from SCORE. SCORE, 4747 Troost Ave., Kansas City, Mo. 10 a.m.–Noon.

(Check-in begins at 9:45 a.m.) Free.

IRS Small Business Tax Workshop

ECJC’s Marketing Series: Google Analytics in the Real World

Business Basics: The Dirty Truth About Social Media Get the facts about creating an online marketing strategy for your small business.

Presented by the Mid-Continent Public Library and Platte Valley Bank, with support from the Kauffman Foundation. Platte Valley BankLiberty Branch, 102 S. State Route 291, Liberty.

4:30 p.m. Free, but registration is required.

INFORMATION/REGISTRATION »

www.mymcpl.org

18 Olathe Chamber Coffee Join the Olathe Chamber and other local business leaders for a morning networking session at Canyon Stone, 550 E. Highway 56, Ste. B, Olathe. 9–11 a.m.

INFORMATION/REGISTRATION »

(913) 764-1050 or www.olathe.org

First Steps to Starting a Small Business If you’re thinking about starting your own company, this workshop will show you the

critical first steps you should take. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 9 a.m.–Noon. $75, scholarships available.

a small company: the mighty business plan!

UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 1–4 p.m. $75, scholarships available.

INFORMATION/REGISTRATION »

INFORMATION/REGISTRATION »

info.umkc.edu/sbtdc or (816) 235-6063

info.umkc.edu/sbtdc or (816) 235-6063

ECJC’s Capital Series: Reading Term Sheets and Structuring a Deal

Business 101: Legal Considerations in Starting a Business

Rick Vaughn, managing director of Mid-America Angels, will cover the nitty-gritty details of what angel investors want when dealing with young businesses.

Enterprise Center of Johnson County, 4220 Shawnee Mission Parkway, Ste. 350B, Fairway. 11 a.m.–1 p.m. $35 to attend in person (includes lunch) or $15 to livestream.

Get a better understanding of limited liability, business organization and other key legal concepts for aspiring entrepreneurs. UMKC Entrepreneurial Legal Services Clinic, 4747 Troost Ave., Ste. 213, Kansas City, Mo. 5–6 p.m. Free.

INFORMATION/REGISTRATION »

www.bit.ly/28Mqzpe or (913) 438-2282

The Basics of Writing a Business Plan In this workshop, you’ll learn how to build one of the most powerful guides for growing

30

KC Animal Health Investment Forum Some of the country’s best early-stage companies in the animal health field will present their ideas to an audience of potential investors. KC Convention Center, Grand Ballroom, 301 W. 13th St., Kansas City, Mo. 7:30 a.m.–5 p.m. $500.

INFORMATION/REGISTRATION »

kcanimalhealth.thinkkc.com

INFORMATION/REGISTRATION »

(816) 235-6341 or elsclinic@umkc.edu

19 Lee’s Summit Chamber Member Luncheon Joel Sealer, a special agent with the FBI, will talk about the bureau’s top priorities

and how it interacts with the community.

Adams Pointe Conference Center, 1400 N.E. Coronado Drive, Blue Springs. 11:30 a.m.– 1 p.m. $20 for members, $25 for nonmembers.

INFORMATION/REGISTRATION »

(816) 524-2424 or www.lschamber.com

Why do premier candidates utilize for employment opportunities?

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Commercial . Industrial Data/Comm Design Build Utility . Prime MO: 909 Troost, KCMO 64106 KS: 3236 N. 7th St, KCKS 66115

816-842-7023 www.markone.com

The next time you are in need of hiring assistance or employment, look to the staffing professionals.

Roses, Michelle, Shelley, Ashley and Marie are here for you!

And your consult is free!

913-663-JOBS (5627) • www.staffingkc.com SMART COMPANIES THINKING BIGGER®

11

K C CA L E N DA R AUGUST

22 Marketing Your Event Online Courtney Cole, executive director of the Excelsior Springs Area Chamber of Commerce, will show you how to use Facebook, email and other tools to spread the word about your company’s events.

Mid-Continent Public LibraryExcelsior Springs Branch, 1460 Kearney Road. 6 p.m. Free, but registration is required.

INFORMATION/REGISTRATION »

www.mymcpl.org

23 Liberty Chamber Member Luncheon Jeff Pinkerton of the Mid-America Regional Council will talk about the metro’s aging population and what business owners

should do to prepare. Liberty Community Center, 1600 S. Withers Road. Noon to 1 p.m. $15 for members, $17 for nonmembers.

INFORMATION/REGISTRATION »

(816) 781-5200 or info@libertychamber.com or www.libertychamber.com

Starting a Business: Success Right From the Start If you’re thinking about starting a business, this workshop will cover the essentials: evaluating your idea, researching your market, developing a plan and more.

Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park.

6–9:30 p.m. $35.

Tom Morse-Brown of morse brown creative will talk about creating a brand that’s true to your company’s vision. Presented by the Sprint Accelerator and the Enterprise Center of Johnson County. Sprint Accelerator, 210 W. 19th Terrace, Kansas City, Mo. 11 a.m.–12:30 p.m. $15.

INFORMATION/REGISTRATION »

www.bit.ly/28MrdTH or (913) 438-2282

Manage Your Financials, Don’t Let Them Manage You Learn how to read your income statements and balance sheets and use them to better manage your business. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 5:30–8:30 p.m. $199, scholarships available.

INFORMATION/REGISTRATION »

(913) 469-3878 or ceregistration@jccc.edu

info.umkc.edu/sbtdc or (816) 235-6063

skylineE3.com

THINKING BIGGER BUSINESS // August 2016

ECJC’s Marketing Series: Brand Resiliency

INFORMATION/REGISTRATION »

913.599.4787

12

31

Hungry for Knowledge?

Then you need to register for the next BIG Breakfast.

Learn behind-the-scenes stories from business owners featured on the cover of Thinking Bigger Business magazine. » Steve Holle, Kansas City Bier Company » Hailee Bland-Walsh, City Gym » Fred L. Merrill Jr., Merrill Companies

Friday, Sept.16 // 7:30 -9 a.m.

Kauffman Foundation Event Center, 4801 Rockhill Road, Kansas City, Mo.

RSVP TODAY AT ITHINKBIGGER.COM | (913) 432-6690 FOR SPONSORSHIP OPPORTUNITIES

sponsored by

BIG | deals

C L A S S U P D A T E S // 25Under25.com

20 06

Gregg, AnswerPro Win Industry Awards AnswerPro Limited has won the Silver Award of

Excellence from the Association of TeleServices International (ATSI) for the third year in a row.

Doug Gregg, AnswerPro Limited’s president and general manager, received ATSI’s Learning By Association Sharing Award, which salutes members who make important contributions to the industry.

20 15

DRAW Develops Art Project in Merriam DRAW Architecture + Urban Design

was part of a public art project in a pocket park at Johnson and Merriam drives in Merriam. The project, “Still Time,” features a tower that houses a wind chime.

20 04

It’s Official: Colleen Ellis Rocks

Minority Business Entrepreneur Magazine has presented its WBEs Who Rock Award to Colleen Ellis, the president of J.M. Neil & Associates. Ellis received the award during the Women’s Business Enterprise National Council (WBENC) national conference in Orlando.

20 12

Grocery Store Group Hires Moblico Moblico Solutions has won a major new client: Alliance Retail Group, which provides marketing and sales services to independent grocers. Moblico will be helping the operators of about 700 stores in the southeastern United States to develop their digital marketing.

20 15

JNA Wins Agency of the Year JNA Advertising was named the agency of the year at the Kansas City Media Mix Awards.

20 05

Google Spotlights Prairiebrooke Arts Prairiebrooke Arts was featured in Google’s report on

the tech company’s economic impact on the Kansas economy. The report highlighted how Prairiebrooke has used Google tools to promote itself. You can check it out at www.bit.ly/29qsyxk.

20 14

Cerner Taps LMG for Plumbing Work LMG Construction is part of the plumbing team for

Cerner’s new campus in south Kansas City.

14

THINKING BIGGER BUSINESS // August 2016

Roll On Announces Major Hiring Plan Roll On Industries of Parkville will add 60 new positions to the team of 70 it currently employs. The company, which specializes in logistics and transportation, has been approved for state incentives worth about $129,000 if it hits its hiring goals.

AWARDS/RECOGNITION UMKC Names Entrepreneurs of the Year Dave and Demi Kiersznowski, founders of DEMDACO and RedRock Traditions, are the winners of this year’s UMKC International Entrepreneur of the Year Award, which will be presented during a Nov. 10 gala.

Other honorees include: Ewing Marion Kauffman, honorary International Entrepreneur of the Year; Gary Fish of Fishtech Labs, Regional Entrepreneur of the Year; and Joseph and Judy Roetheli, co-founders of S&M NuTec and the Lil’ Red Foundation, recipients of the Kreamer Award for Social Entrepreneurship.

Clara Earns a Spot in K-State LAB Clara Diagnostics of Olathe was one of four startups chosen for the Launch A Business (LAB) program at Kansas State University. LAB exposes young companies to K-State training, research teams and other connections.

Source Inc. Wins Partner of the Year Shawnee’s Source Inc., a local IT provider dedicated to wireless solutions, has won a Partner of the Year Award from Cradlepoint, which offers 4G LTE networking solutions. Source Inc. was among Cradlepoint’s top 20 partners nationally, achieving 90 percent year-to-year growth.

FINANCING Local Companies Win MO IDEA Funds The Missouri Technology Corporation has approved co-investment awards to three Kansas City companies via its IDEA Funds.

PopBookings

will receive $300,000 while Moblico Solutions was approved for $75,000. VideoFizz has been awarded $150,000.

Mr. Davis’ Successful Kickstarter Local fashion brand Mr. Davis has raised more than $75,000 through Kickstarter for its latest product, the Continuum Bag. It’s a light, customizable carry-on bag.

NEW BUSINESS NKC Welcomes Chicken N Pickle Chicken N Pickle is actually two businesses: a pickleball facility combined with an eatery at 18th and Burlington in North Kansas City.

Amelia’s Bloomers Launches Amelia’s Bloomers is a new women’s boutique located at 6015 Johnson Drive in Mission. The shop sells women’s fashion, accessories, furnishings and jewelry.

The Oliver Replaces Republicá Bread & Butter Concepts has launched a new restaurant, The Oliver, at 4807 Jefferson St. on the Country Club Plaza. It is operating in the former Republicá space.

Think big. Act big. Be big.

Branding Design Digital

25 Under 25® Class of 2007

EAG14-041 TBBM Ad v2.indd 1

12/17/14 10:15 AM

iWerx Debuts in North Kansas City North Kansas City’s first business incubator, iWerx, is based at 1501 Burlington, occupying one end of an 89,000-squarefoot warehouse that Kroger once used as a regional headquarters.

Third Street Social Opens in Lee’s Summit Third Street Social is a new restaurant at 123 S.E. Third St. in downtown Lee’s Summit.

It occupies the Arnold Hall building, where President Truman launched his career in

Square One Small-Business Services at Mid-Continent Public Library is funded by

politics. Third Street Social is co-owned

by Andy Lock and Domhnall Molloy.

Calibration Brewery Opens Calibration Brewery is up and running at 119 Armour Road in North Kansas City. Its location includes a taproom with a full kitchen. The owner is Glen Stinson.

ON THE MOVE New Home for Snow & Co. Snow & Co. plans to close its location in the Crossroads Arts District and reopen in September in Westport.

OTHER NEWS Smallcakes Expands to NY Kansas City-based Smallcakes has partnered with a franchisee for its first-ever store in New York state. The shop will be in Scarsdale. Smallcakes and its franchisees operate more than 150 locations.

Patent Win for Synetic Kansas City’s Synetic Technologies has been granted a U.S. patent for its Virtual Data Annihilator platform, which sorts, tracks and certifies erasure of data storage equipment.

Every business has a story, and Mid-Continent Public Library's Square One Small Business Services are giving them a place to tell it in an innovative series that shines the light on new Kansas City business trends. Join us for a look at Kansas City's booming t-shirt business with host Jonathan Bender from Recommended Daily and panelists from Decaf Tees, RAYGUNshirts, Normal Human and others followed by a reception.

Friday, August 12 | 7 p.m.

Woodneath Library Center 8900 NE Flintlock Rd. • Kansas City, Mo 64157

Access Small Business

Register: mymcpl.org/squareone

SMART COMPANIES THINKING BIGGER®

15

AT A G L A N C E

BY THE NUMBERS | STARTUP FUNDING

The No. 1 Funding Source for New Business Is ...

Look in the mirror.

57%

of startup entrepreneurs’ funding comes from their own pockets

36%

of entrepreneurs got funding via banks, the second most common source

$17,500 How much money the median U.S. startup launches with

$20,000

$10,000

How much male founders needed

How much women started with

MADE TO LAST | MIZE HOUSER

The Accounting Firm With a Technology Edge Mize Houser & Co. celebrates six decades.

IT’S SO EZ

A lot of accounting firms talk about their technology edge, but Mize Houser & Co. has been living that philosophy for decades. It’s one reason why the business has endured for 60 years.

Mize Houser created EZAccess, a cloud-based payroll and accounting app that it markets to restaurants. More than 1,500 franchisees across the country work with the firm, and EZAccess is a major draw.

The firm’s founders, Bob Mize and Ralph Houser, made early investments in data processing centers. That eventually led to Mize Houser offering 24-7 access to clients who need backroom support for realtime financial and payroll information.

“We were doing cloud computing before it was cloud computing,” shareholder Tim Goodger said.

16

THINKING BIGGER BUSINESS // August 2016

HOW THEY’RE CELEBRATING

The firm has planned a birthday party for itself, but it’s giving gifts to other people. With Mize Houser’s Spirit Summer program, employees are volunteering on behalf of several charities. And under its Gifts of 60 initiative, each Mize Houser office will donate 60 items to a local nonprofit like Ronald McDonald House Charities.

RESOURCE CONNECTION

Building a Bigger Sandbox Digital Sandbox KC has announced two new initiatives to nurture up-and-coming companies.

The Sandbox offers coaching as well as funding for market validation, prototyping, legal fees and other costs.

ENERGY SANDBOX

This program will give proof-of-concept help to startups in the energy sector. It’s thanks to a partnership with GXP Investments, Great Plains Energy’s nonregulated investment affiliate.

LEARN MORE // www.digitalsandboxkc.com/energy-sandbox

INDEPENDENCE

Digital Sandbox KC will now assist Independence-based startups, and the Ennovation Center will provide those companies with office space.

Source // Global Entrepreneurship Monitor—United States Report

LEARN MORE // www.digitalsandboxkc.com

BIG STARTS | ROUTINE SUCCESS

A Memorable Idea for a Startup Routine Success helps kids with ADHD and autism remember their daily routines.

STARTUP // Routine Success ENTREPRENEUR // Matt Gunter HOW IT WORKS

Routine Success helps kids with ADHD and autism spectrum disorders stay on task during their day. Parents can create timed reminders (or “routines”) that will pop up on a Pebble smartwatch worn by their child.

THE INSPIRATION

Gunter’s child, who has ADHD. “We just struggled with a lot of homework not coming home, hats and gloves getting lost,” said Gunter, an executive

at SelectQuote. “What we found was he did really well when we gave him fairly prescriptive, structured instructions.”

THE ADVANTAGE

There are a handful of reminder apps for kids in this situation.

But most of those run on tablets or phones—devices not always welcome in the classroom. Routine Success’s reminders come with a gentle, unobtrusive vibration.

WHAT’S NEXT

Routine Success has just been approved for help from Digital Sandbox KC. Gunter is shooting for a full commercial launch early next year. Interested in becoming a beta tester? Sign up at the startup’s website, www.routinesuccess.net.

SMART COMPANIES THINKING BIGGER®

17

AT A G L A N C E

RESEARCH + TRENDS

SOMETHING TO CHEW ON

The Robot on Your Payroll

The Oliver

ACCORDING TO FORRESTER RESEARCH ...

» 7 percent of U.S. jobs could be replaced by robots, automation or artificial intelligence by 2015. » About 16 percent of current jobs will be gone, but another 9 percent will be created. » New jobs could include data scientists, automation specialists and robot monitors.

14807 Jefferson St. Kansas City, MO 64112 (816) 384-2500 www.theoliverkc.com

Lunch or Dinner

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The Oliver is the latest restaurant from the team at Bread & Butter Concepts. (You can find it in the former Republicá space on the Country Club Plaza.)

BOOK REPORT

Ego Is the Enemy // PORTFOLIO // RYAN HOLIDAY In a world where self-promotion is a cardinal virtue, Ryan Holiday’s latest book delivers a counterintuitive message: You’re not that important. And the sooner that you can accept that fact, the faster you’ll be able to achieve true greatness.

GET IT STARTED

You won’t go wrong with the pork nuggets, stuffed with confit pork, spicy jalapeño and smoked mozzarella.

THE MAIN EVENT

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THINKING BIGGER BUSINESS // August 2016

editor@ithinkbigger.com.

C O M PA N Y T O WAT C H

V I N O PA I R

er

Vino Pair Serves Up Gourmet Food and Wine Expertise The company is located in a cave, but operates in the cloud.

ENTREPRENEURS

Michael and Mindy Kearns COMPANY INFORMATION

Vino Pair 8500 N.W. River Park Drive, Ste. 239 Parkville, MO 1-888-859-5944 www.vinopair.com TYPE OF BUSINESS

Subscription service for food and wine pairings YEAR FOUNDED

2015

P

roperly pairing food and wine at home is daunting even for foodies, especially if the right ingredients are not on hand. Based in Parkville’s commercial caves, Vino Pair founders Michael and Mindy Kearns make pairings painless through their subscription-based specialty food and wine business.

“When we started Vino Pair, it was hard to find perfect items to combine and pair,” said Mindy.

Michael added, “We wanted to make it simpler and frictionless for people.”

Monthly subscribers and single-order customers receive a refrigerated package shipped free via two-day air. Each shipment contains four to five ingredients, a printed appetizer guide and a bottle of wine.

Vino Pair’s packages of upscale wine and hand-selected gourmet foods are based on recommendations from Kansas City chefs. Each chef samples a featured wine, develops tasting notes and then creates a “perfect bite” by selecting from 2,000 products available from an online database.

Once sourced, the Kearnses and the chef assemble the pairing, taste it and finalize the offering before listing it on the website.

For example, one curated option includes a jar of The Bacon Jam’s bacon spread, fresh chives, a log of Vermont Creamery goat cheese, Carr’s table water crackers and one bottle of King Estate Pinot Noir. The printed guide explains how to assem-

ble the appetizers with the proper proportions to maximize flavor.

Mindy and Mike first met in 1992 when they worked at Rembrandt’s and later worked together at Californos. Mindy worked at Research Medical Center for a decade as a labor and delivery nurse.

Meanwhile, Michael became the chief technical officer and director of e-commerce for Pro Athlete.

Seeking a career change, they turned to food and wine.

In order to concentrate on product development, sales and order fulfillment, Michael applied his e-commerce expertise to Vino Pair’s back office systems.

Vino Pair uses “software as a service” (SaaS) systems and cloud-based applications that integrate with e-commerce platform Shopify.

MailChimp’s email-based communication and ZenDesk’s customer service platform make interaction a snap. RingCentral provides a voice-over-Internet protocol (VOIP) solution for toll-free service.

“Having a 1-888 number is still important for instilling confidence in customers,” said Michael.

“When no one’s available, a call-forwarded tree can be created so personal cell phone and home phone numbers can be dialed.”

These hassle-free solutions make the online retail and back office experience simple and seamless, creating time for the Kearnses to focus on growing subscribers and enjoying the finer tastes in life.

Pete Dulin is a freelance writer based in Kansas City, Mo. www.petedulin.com SMART COMPANIES THINKING BIGGER®

19

KC MADE IT

( by James Hart )

Goldman wanted to offer a fermented drink, too, and she hit on the idea of selling kombucha. A friend taught her how to make it.

“By the end of the summer,” Goldman said, “we realized there was an untapped market for kombucha in Kansas City.”

So last fall, The Brewkery duo decided to go all-in on kombucha. They consulted with a kombucha brewer in Portland and rented space at Flavor Trade. It took about six months of research and development to perfect the recipes.

They’ve been working on it full time since January.

“We decided it was time to dive in headfirst and make this our full-time job,” Goldman said.

HOW IS KOMBUCHA MADE?

THE DUO BEHIND THE BREWKERY INTRODUCES ITS LUCKY ELIXIR IN LOCAL STORES.

Kombucha in KC very Saturday, you can find Amy Goldman and Sean Galloway at the Merriam Farmers’ Market, where they sell growlers full of their new Lucky Elixir kombucha.

If you can’t make it out to Merriam, don’t worry. Back in April, the couple—who do business as The Brewkery—started selling bottles of Lucky Elixir through more than 20 stores across the metro. You can also buy

E

ENTREPRENEURS

Amy Goldman and Sean Galloway COMPANY

The Brewkery www.brewkery.com TYPE OF BUSINESS

Producers of kombucha, a type of flavored, fermented tea 20 THINKING BIGGER BUSINESS // August 2016

it at Flavor Trade, the shared commercial kitchen where Galloway and Goldman brew it.

Never heard of kombucha? You’re in good company locally, at least. About half the people Goldman encounters at the farmers’ market haven’t either. But the drink—a type of fermented, flavored tea— is very popular in other cities.

“On the West Coast, it’s so popular,” Goldman said. “In the Midwest, it hasn’t hit yet, and we want to be on the forefront when it happens.”

That could happen sooner than you might expect. Every weekend at the farmers’ market, more people give Lucky Elixir a try— and come back for more the next Saturday.

HOW DID THEY GET STARTED?

Kombucha wasn’t the plan when The Brewkery launched. Galloway and Goldman wanted to focus on their passions: artisanal sourdough bread and craft beer.

They started selling their bread at the farmers’ market, but the beer wasn’t allowed.

Galloway and Goldman ferment sweet tea using “a symbiotic culture of bacteria and yeast”—what’s known in the industry as SCOBY. It’s a two-week process, followed by two days in a keg.

“Once it’s fermented, it eats all the sugar,” Goldman said. “We’re left with a product that is very low in sugar—about 4 grams of carbohydrates per serving.” It’s tangy, earthy and slightly sweet.

The Brewkery started out selling four flavors of kombucha: ginger lime, aroniaberry, citrus hop and spiced. (The spiced is out of rotation and will return in the fall.)

“Now that we have our system down, it’s pretty streamlined,” Goldman said. “I would say the most difficult thing is it’s a live product and can be unpredictable.”

The SCOBY doesn’t always operate on a strict timetable. Sometimes it needs an extra day or two, depending on temperature. “If it’s not ready,” Goldman said, “we have to wait.”

WHAT’S NEXT FOR THE BREWKERY?

The Brewkery has started to get attention from stores in St. Louis and other cities interested in carrying Lucky Elixir. Goldman and Galloway are looking for ways to scale up their production process.

They also want to roll out another flavor later this year. So, this summer, they’re auditioning a series of new tastes at the Merriam Farmers’ Market. Contenders include mango cilantro, tart cherry, blueberry and peach among others. Look for the winner on store shelves this fall.

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KC FUTURES

( by James Hart )

Under TechHire, the federal government set aside $150 million in grants for programs that provide “next generation” training for younger adults, veterans, former convicts, people with disabilities and others.

FEC’s accelerated training builds on Reboot U, a pilot project that McQueen and his team launched last year for IT and health-care workers.

In Reboot U, clients participated in “Shark Tank”-style interviews, worked paid internships and received general IT training, as well as classes customized to the specific sector where they were going to work.

THE CONTINUING NEED FOR CONTINUING ED

The Full Employment Council’s new training will be geared to those between the ages of 17 and 29. That’s important because that generation suffers from higher unemTHE FULL EMPLOYMENT COUNCIL PLANS TO ployment rates and has fewer resources, McQueen said.

OFFER ACCELERATED, NONTRADITIONAL TRAINING. And frankly, the workforce is going to need them as Baby Boomers age into retirement.

You can already see that in the manufacturing sector. In 2000, the median age of a U.S. manufacturing worker was 40.1 years.

By 2012, it was 44.7, about 2.4 years older than the average nonfarm worker.

For high-skill manufacturing workers, the typical age is closer to 56. hanks to nearly $10 million in new calendar. They won’t always be offered There’s another thing the Full EmployT grants, the Full Employment Council for credit, reducing the cost. ment Council will be doing differently with The Full Employment Council also is launching a program that will prepare this new training initiative: It’s going to plans to survey local companies freworkers faster for some of the city’s most emphasize the need for workers quently to make sure the training in-demand jobs. to continue building their skills covers the exact skills that This fall, the council will begin to offer and keep up their certificaemployees really need. The accelerated, nontraditional training for four tions. It’ll be possible for council is partnering with industries: technology, health care, advanced clients to come back and “industry intermediaries,” ormanufacturing and financial services. continue to receive training. ganizations that have existing The goal isn’t just to help people find great “We will not be relationships with employers. jobs, though that is a priority. In fact, the exiting them from the council aims to assist at least 2,000 people Clyde McQueen program automatically, TECHHIRE AND REBOOT U over the next five years. But officials also want but will encourage ongoing About half the money for to create a more responsive, more organic pursuit of career-building activithe training is coming from the system for training and retraining workers. ties,” McQueen said. renewal of an earlier Health and Human “We have to be able to create a system The Full Employment Council assists Services grant. that responds to that demand in a timely employees who live on the Missouri side The U.S. Department of Labor is providfashion,” said Clyde McQueen, the council’s of the metro. But it’s open to working with ing the other half of the funding, through president and CEO. employers across the region. The University its TechHire initiative. Deputy Labor The new training will take less time— of Kansas Medical Center, for example, has Secretary Christopher Lu traveled here last three months instead of six. While partners been an active partner, McQueen said. month to announce that Kansas City was like the University of Central Missouri Interested in hiring workers through one of 39 communities to win a TechHire and Metropolitan Community College will the Full Employment Council? Contact grant. The $5 million award is one of the help deliver the training, courses won’t Raqayyah Harvey at (816) 471-2330 or largest that FEC has received in recent necessarily be tied to a traditional semester rharvey@feckc.org. years, McQueen said.

A New Way of Training KC’s Workers

22

THINKING BIGGER BUSINESS // August 2016

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REFASHIONING A LEGACY

24 THINKING BIGGER BUSINESS // August 2016

(photo courtesy of Samantha Levi Photography)

D O ES KC H AV E W H AT I T TA K ES T O R EC L A I M I T S L E G A C Y I N FA S H I O N A N D T E X T I L E S ?

( by James Hart )

A FEW YEARS AGO, after she earned a psychology

degree and did time in the 9-to-5 world, Ami Beck took a leap of faith and pursued her real dream: fashion design.

The Kansas City native enrolled at Stephens College in Columbia, Mo., home to one of the world’s top fashion programs. After Beck graduated in late 2013, she bought a heavyduty sewing machine and a supply of leather so she could start producing her own line of luxury handbags.

Today Beck’s handbags have become a fullfledged company, Dolyn. She recently hired her first employee, a seamstress, to assist with production because Beck is so busy creating new designs, developing her marketing and just running the business.

Dolyn might be a young company, but Beck is following in the steps of a long and storied legacy.

From the 1920s to the 1960s, Kansas City was a national leader in fashion and apparel. In fact, the Donnelly Garment Co.—a.k.a. Nelly Don— was the world’s largest producer of women’s clothing by the early 1950s. Apparel was the No. 2 employer in the city.

Things have changed, obviously. U.S. apparel manufacturing has shrunk to a shadow of itself as companies shifted production overseas.

According to the Bureau of Labor Statistics, about 900,000 Americans were employed in apparel manufacturing in 1990. By 2011, that number had dwindled to 150,000.

But there are textile companies and designers still standing in our area. A growing number of entrepreneurs and community leaders believe Kansas City has the potential for more.

“I think it’s just a natural fit to put some energy around this,” said Brande Stitt, program director at the Women’s Business Center. “We have roots in the garment space. We have roots in the entrepreneurial space.”

After all, Kansas City produced Kate Valentine, the designer behind the world-famous Kate Spade label and the new Frances Valentine line, which she unveiled this spring at Halls in Crown Center. Meanwhile, local entrepreneur Matt Baldwin has earned a national reputation for his denim, with magazine covers and celebrity customers like Jay-Z and Jason Sudeikis.

Even today, the region is home to nearly 170 designers who create $5 million worth of product, said Jennifer Lapka Pfeifer, the founder of Rightfully Sewn. The Kansas City nonprofit is working to create two-year residencies that will give up-and-coming designers access to business training, industry connections and professional production equipment.

Rightfully Sewn and other programs like Stitching Change and the brand new Sewing Labs are also offering seamstress training for at-risk women. That way, they’ll be able to find jobs with local designers or create their own businesses.

The pieces for a renaissance are out there.

They just have to be stitched together.

AN INCUBATOR FOR DESIGNERS

Jennifer Lapka Pfeifer is not a designer, but she is a longtime fan and friend of the city’s community of fashion designers. Lapka Pfeifer met many of them through the annual West 18th Street Fashion Show, where she was the co-executive director.

“Kansas City’s fashion designers are incredibly talented, and I want to help keep them in our community,” Lapka Pfeifer said.

So she started Rightfully Sewn about three years ago, with a goal of being for fashion designers what the Charlotte Street Foundation is for fine artists. Lapka Pfeifer and her board are working to launch Rightfully Sewn’s residency program next year, and plans are being made for a formal capital campaign.

SMART COMPANIES THINKING BIGGER®

25

“We see a tremendous opportunity to provide local designers with an incubator space,” Lapka Pfeifer said. Part of the vision is to offer a digital fabric printer, a pattern grading system and other equipment. Right now, many local designers have to send their projects to Chicago, Los Angeles and other cities for production because they don’t have access to the latest technology here.

Lapka Pfeifer has started a handful of other initiatives, like a jobs board and live events. And this spring, Rightfully Sewn approved scholarships for five local designers to take Kauffman FastTrac NewVenture classes at the Women’s Business Center in Fairway. Ami Beck was one of them.

“The timing of it was perfect,” Beck said.

She was preparing to approach lenders for a bank loan—never an easy task for a young company—and the FastTrac training showed her how to polish her business plan.

One of the biggest things that Kansas City’s fashion entrepreneurs need is help developing a sales and marketing strategy, said Tom Paolini, owner of Prairie Village’s Paolini Garment Company, which sells custom-made suits and shirts for men and women. His clientele includes executives and players for Sporting KC, the Royals, the Chiefs, the Blues and other teams.

Sales wasn’t a roadblock for Paolini—he came to fashion after working in business development for Fortune 500 companies.

But a lot of young fashion entrepreneurs dislike sales, even though their future hinges on the ability to generate revenue.

“Something the Kansas City community needs is sales support for those designers,” Paolini said.

REVIVING A DISAPPEARING SKILL

It’s one thing to encourage Kansas City’s fashion designers. To have a thriving industry, though, the metro also needs people who can help physically create the products. We need seamstresses.

Unfortunately, for many Americans, sewing is almost a lost skill, according to Lonnie Vanderslice, co-founder of Weave Gotcha Covered. The successful Kansas City company makes custom drapery, shades, pillows and related window products.

“People don’t take 4-H,” Vanderslice said.

“Schools have removed sewing classes.”

To raise Kansas City’s sewing IQ, Vanderslice and her wife and co-founder, Kelly Wilson, have created The Sewing Labs, a 26 THINKING BIGGER BUSINESS // August 2016

nonprofit that will teach disadvantaged through Amethyst Place’s 100 Jobs for women how to sew, so they can pro100 Moms. That nonprofit program vide for their families. offers job training and placement The program is based in the to disadvantaged women.

While some Sewing Labs gradeast end of Weave Gotcha uates might find jobs working Covered’s building at 27th for someone else, it’s possible and Charlotte. It will open its they could create their own doors this fall. Students will microbusinesses, too. Someone train on donated equipment has donated a long-arm quilting and fabric left over from Weave Lonnie machine to The Sewing Labs. It Gotcha Covered’s operations.

Vanderslice could be rented out to people who It’s a dream Vanderslice and want to make and sell quilts.

Wilson have been nurturing for a The Sewing Labs will do more than just while now. “We’ve been saving fabric build skills. It’ll also build up students’ for 10 years,” said Vanderslice, who serves social capital—the connections and relaas The Sewing Labs’ executive director tionships that provide individuals with the and who sits on Rightfully Sewn’s advisory information, advice and help they need to board for its seamstress program. get ahead.

They know the model will work because There are a few similar programs in it’s not too different from what they’ve Kansas City, like Stitching Change, which done with Weave Gotcha Covered. Many offers free sewing programs to women, of their current employees were recruited

primarily those who have refugee status and are still learning English. Stitching Change helps them develop skills they can use to support themselves.

For example, participants make reusable grocery bags that groceries and markets sell to their customers.

“I think most of us come to this country expecting that work will be easily available for everyone, and we can become more creative and smarter and make a living, not realizing that if we don’t have the desired skills then it will be hard to find a good-paying job,” said Rakmila Shaiza, Stitching Change’s founder.

CAN WE BUILD IT HERE?

You might be thinking: This all sounds nice. But there’s a reason why so much cloth-

ing is made overseas. Their costs are lower, so U.S.-made goods can’t compete. Right?

The Bureau of Labor Statistics made a map of the nation’s surviving clothing companies, and they’re sprinkled across the country. They’re small businesses. Most

employ 50 people or fewer. Only two metros—Los Angeles and New York—have more than 500 businesses that make apparel.

The point is: There are still companies out there surviving in this sector.

And more U.S. consumers are waking up to the hidden price of low-cost clothing.

Namely, the conditions in some foreign factories can range from unpleasant to horrifying. Instead of buying a new shirt for $15 every season, some buyers are choosing to spend $30 for a better-made, responsibly sourced product.

“People are really thinking about it because Millennials are bringing it back to the surface,” said Linnca Stevens, the operating manager for both Weave Gotcha Covered and The Sewing Labs.

And there are things that Kansas Citians can do to boost our fashion culture, Paolini said.

Basically, we need to “dress for success.”

“You need the right people in town dressing up and taking more of an interest and even taking more risks to then influence the people around them,” he said.

Kansas City, Mo., Mayor Sly James is a great example, Paolini added. Don’t underestimate the influence that James has had by rocking a bowtie every day at work.

Rightfully Sewn’s Lapka Pfeifer can envision Kansas City and the surrounding area becoming “a farm-to-fashion sartorial system.” The region’s farms could produce cotton, nonnarcotic hemp and wool from llamas and sheep, which would then be processed into fabric for Kansas City’s growing population of fashion companies.

They create jobs for seamstresses who graduate from programs like Rightfully Sewn, Stitching Change and The Sewing Labs. And those new hires would give the city’s fashion and textile businesses the human talent they need to scale up.

It’d be a big change from today … but not too far from where things stood decades ago. “I like to say the pendulum swings,” said Lapka Pfeifer.

James Hart is the managing editor of Thinking Bigger Business Media. (913) 432-6690 // jhart@ithinkbigger.com

ABOVE // Rightfully Sewn has hosted a series of events, including a screening of a film about designer Jeremy Scott and a professional development seminar. (photos above courtesy of

Samantha Levi Photography, Hartzell Gray and Samantha Levi Photography) ABOVE RIGHT // Rightfully Sewn founder Jennifer Lapka Pfeifer (photo courtesy of Samantha Levi Photography) SMART COMPANIES THINKING BIGGER®

27

A REP FOR EXCELLENCE City Gym has won a string of local awards, including the 25 Under 25®. And last year, the business was featured in a national Google commercial for its fitness program for transgender men.

28 THINKING BIGGER BUSINESS // August 2016

KC ENTREPRENEUR

The Waldo-based fitness center builds strength through community.

Getting Fit and Fitting In at

CITY GYM ENTREPRENEUR

Hailee Bland-Walsh C O M PA N Y I N F O R M AT I O N

City Gym 7416 Wornall Road Kansas City, MO 64114 (816) 326-8790 www.citygymkc.com TYPE OF BUSINESS

Fitness center with a focus on community YEAR FOUNDED

2011 E M P L OY E E S

13 on staff, plus more than four dozen individual contractors K E YS T O S U C C E S S

Create culture as a product to set the company apart from competitors.

LEFT // General manager Katie Roder;

owner Hailee Bland-Walsh; marketing manager Tiffany Walsh; Kristin Smith, membership experience representative

A

s a Division One college athlete for the University of Minnesota and a professional soccer player for the Carolina Courage, Hailee Bland-Walsh raced down soccer fields in peak physical condition.

When she left the world of competitive sport, Bland-Walsh gravitated toward personal training as a career.

She worked as a trainer and manager at gyms in San Francisco for six years. Bland-Walsh gradually learned the business skills to operate a gym— and started envisioning more creative approaches to running a personal training business.

“I conceptualized my own place,” Bland-Walsh said. Her sister encouraged her to move to Kansas City and start a gym of her own. “A week later, I thought about the idea and started researching gyms. Six months later, I moved back and lived in my parent’s basement until I bought a house.”

Bland-Walsh founded City Gym five years ago as a destination that emphasizes inclusivity, whether members were professional athletes or individuals seeking a healthier lifestyle.

The front signage of the building facing Wornall Road offers the first indication of how this gym differs from competitors. Large letters declare: BE FIT. BE WELL. BELONG. That last six-letter word is the key to the philosophy behind the 11,600-square-foot facility.

First impressions are deceiving. A quick glance inside of City Gym’s facilities reveals a weight room, Nautilus equipment and a room dedicated to a fleet of spin cycles.

Groups exercise in studios for barre, yoga, Pilates, spinning and approximately 50 classes, including pre- and post-natal. The gym houses an open turf area, private showers and other amenities.

Upbeat music streams through a well-lit space painted white and vibrant lime green. Personal trainers attend to individual clients as they proceed through weightlifting reps and exercises.

Beyond the quality and extent of its equipment and space, City Gym stands apart from its competition because of the character of the people under its roof. Bland-Walsh and her staff have established a place for nearly 1,200 members to belong as part of a community while they work on fitness. That difference manifests in daily interactions, company culture and business practices.

by Pete Dulin // photography by Dan Videtich SMART COMPANIES THINKING BIGGER®

29

“The best gyms create community where people feel part of something,” Bland-Walsh said.

PATH TO FITNESS

The front desk at City Gym sets the tone for a potential client’s first impression and experience. The host greets newcomers and regulars with a friendly welcome. The focus is on customer service rather than a sales-driven model with longterm commitments.

“We provide phenomenal customer service,” Bland-Walsh said. “It’s a personal approach.”

Bland-Walsh developed a Launch program for new and current City Gym members. A Launch coordinator is paired with an individual to ascertain how best to utilize the gym for a specific lifestyle and goals.

“Typically, people start going to a gym around January. They do what they’ve always done for a couple of weeks or months, don’t see results and stop,” BlandWalsh said. “There’s a drop-off in April. With Launch, we try to capture the people most likely to start and stop.”

Launch provides an initial coaching session with the client.

The session explores the client’s personality, time barriers, roadblocks and goals.

“It’s not a prescribed plan,” Bland-Walsh said. “Launch meets people where they are. They leave with a plan that’s flexible. We greet them and break down barriers.

We help them find their path, and there are many paths to fitness.”

Clients may sign up for monthly or annual memberships, but the gym has a “no contracts” policy.

Members aren’t locked into a long-term relationship. New clients can also sign up for a seven-day pass with no commitment.

They can exercise at the gym on a trial basis, meet others, overcome intimidation factors and determine what workout regimen and schedule suits them best.

City Gym’s digital app enables clients to easily manage their membership, sign a waiver, make payments, schedule or cancel classes and gather information.

With this approach, newcomers are more likely to become regular visitors. That’s good for the health of the client and City Gym. This approach reduces the continual need to spend funds on advertising and marketing and harp on membership sign-ups and renewals as a revenue model.

Instead, City Gym and its team focus on the fitness and wellness of its members.

30 THINKING BIGGER BUSINESS // August 2016

“ We are in a community with each other at City Gym in the way we treat our employees through support and structure.”

Hailee Bland-Walsh // owner, City Gym

City Gym also conducts Real 45, a 45-day lifestyle program for groups or individuals, several times each year. The program provides education, training and tools to members geared around comprehensive exercise and nutrition.

Real 45 includes a private Facebook page for participants.

“We answer common questions in the group and problem-solve in real time,” Bland-Walsh said. “It’s a virtual connection for community, accountability and addressing questions.”

just good salespeople. They must be good at training.”

Trainers focus on their expertise rather than high-pressure sales. City Gym’s staff and contractors aren’t seeking to boost company profits by selling supplements, memberships or gear.

Instead, the contractor works to best serve and retain the client.

From a management standpoint, Bland-Walsh prefers staffing contractors instead of a growing crew of employees.

“It’s a contractual relationship with a person that’s motivated versus an employee relationship,” she said. “Our contractors act like employees, though. It’s a team environment without gossip and infighting among trainers like at other gyms.”

EXERCISE IN GROWTH

SMART STAFFING

A sense of community and belonging extends to the employees and staff, and that aids retention. A revolving door of trainers wouldn’t retain clients and would create internal instability for the business.

“We are in a community with each other at City Gym,” BlandWalsh said, “in the way we treat our employees through support and structure.”

Most of the gym’s personal trainers and staff are independent contractors who pay a percentage of earnings to the

City Gym’s business practices have steadily evolved to best serve members as Bland-Walsh has gotten to know her customers. Her management style is to “manage energy versus time for big visions in life.” How that “big vision” translates into daily practice depends on leadership from Bland-Walsh and execution from her team.

“I’ve streamlined from a management perspective,” BlandWalsh said. “When the business grows, people get responsibilities that don’t align with their role. business. City Gym’s percentage I’ve streamlined job descriptions, of a contractor’s earnings is lower expectations and responsibilities than other gyms. Contractors set to get the right people on the bus.” their own rates and hours.

Along the way, Bland-Walsh “Trainers can work less and has learned many lessons that get paid more,” Bland-Walsh said. have made her a better business Because personal training is owner and strengthened City physically and mentally draining, Gym’s operation. This wisdom fewer hours per week and may apply to other entrepreneurs higher rates prevent burnout seeking to improve the health of among trainers. their business.

“This model also attracts “Work in the industry and motivated trainers that are busigain experience before you start ness savvy,” Bland-Walsh said. a business,” she said. “Industry “Personal training is a retention experience is invaluable.” tool to get people to stay at the For instance, Bland-Walsh gym. I don’t hire trainers that are learned the costs for new

equipment and maintenance early in her career. She built those ongoing expenses into her own business.

But, she said, “don’t mistake technical expertise for business expertise. They’re different skill sets. Have the knowledge to run a successful business or find someone who does.”

To face challenges from a position of strength, Bland-Walsh said, “Be pulled by your passion versus pushed by fear. They are different motivations. You make decisions from a different place.”

Bland-Walsh understands that City Gym is not a revolutionary business model. Still, a distinct difference exists from other gyms.

“The nuts and bolts are the same,” she said. “Our culture is our product.”

City Gym’s culture of inclusivity appeals to the human need for belonging. That’s important not only to Bland-Walsh, but also to her diverse membership from all walks of life. This culture is not easily replicated at a big box gym. Dynamic relationships are fostered by people, not policy and procedure.

Bland-Walsh mentions Caesar Blevins, City Gym’s cultural ambassador. Blevins exemplifies the gym’s spirit of welcoming and community by performing many roles when he’s not working at UPS or working out.

“Caesar was one of the first people in the door when we opened,” Bland-Walsh said. “He’s a greeter, [self-appointed] security guard, ambassador, member and friend. Caesar takes his role seriously. People are our culture, and he’s the epitome of community. He’s like family.”

For Blevins and 1,119 other members, City Gym is a place to fit in, get fit and belong.

Pete Dulin is a freelance writer based in Kansas City, Mo. www.petedulin.com SMART COMPANIES THINKING BIGGER®

31

DREAM

BIG

We’ll provide the tools, strategies and connections so you can make your dreams come true.

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Entrepreneurial Journey

( by James Hart )

An Elephant Remembers, and So Can You There’s an experiment that illustrates how this principle works.

Participants were asked to perform an hour-long task on a computer. And they were made an offer: The experiment’s organizers would donate $1 to a food bank—if the participant remembered to pick up a paper clip when they checked out and got paid.

Some of the participants were given a cue.

They were told an elephant statue would be sitting on the checkout desk. That was their reminder to pick up the paper clip.

The results were stark. About 74 percent of the people who got the elephant cue picked up a paper clip. Of those who weren’t given that reminder, only 42 percent did.

Why did this work? The cue—the elephant statue—presented itself exactly where and when the participant needed to act.

Finance writer Ramit Sethi used this principle to exercise more. He started laying out his workout clothes before he went to bed.

As soon as he woke up in the morning, it was a cue for him to head to the gym.

Your Post-it Notes Are Broken Keep forgetting to remember?

Turn things around with these two simple strategies.

I

f you’re like most business owners, you probably juggle dozens of priorities, chores, honey-dos and other tasks in a typical day.

It’s more than any person could reasonably be expected to keep in their head. So you write a to-do list, or you use an app like Wunderlist to keep things organized.

Maybe you stick a Post-it note at the corner of your screen.

But why—despite your best intentions and all that planning—do you still forget things?

A recent study in the journal Psychological Science took a look at the problem. Bottom line, your reminders aren’t memorable.

To get better results, you should try “reminders through association.”

“Our results suggest that people are more likely to follow through on their good intentions if they are reminded to follow through by noticeable cues that appear at the exact place and time in which follow-through can occur,” said one of the study’s authors, psychological scientist Todd Rogers of the Harvard Kennedy School.

Death to the Post-it Note Just as importantly, the elephant statue from the experiment was distinctive. It stood out compared to its surroundings.

Another experiment—this one online— made a similar offer to participants. If they answered a certain question in a certain way on a specific page in a survey, the experiment’s organizers would make a donation to a charity. The participants were even given cues, too.

But certain types of cues worked better. A picture of the aliens from “Toy Story” created a better response than simple text did.

That’s why your Postit notes might not work as well as they used to.

They’ve become part of the “background noise” of your life. Planting something unusual on your desk—a can of beans or a stuffed animal—could do a better job sticking out in your memory.

James Hart is the managing editor of Thinking Bigger Business Media. (913) 432-6690 // jhart@ithinkbigger.com SMART COMPANIES THINKING BIGGER®

33

BIGGER | growth S M A R T

( by Marvin Carolina Jr. )

S T R AT E G I E S

Why You Shouldn’t Wait to Innovate Small, nimble companies can create new ways of doing things, too.

B

usiness continues to evolve, and to succeed in the market, you have to evolve, too.

The key to success, for example, used to be working long, long hours. Times changed, and small business owners began focusing on working smart. In today’s ultracompetitive market, which is more crowded than ever, you have to innovate.

What Innovation Really Is Innovation and creativity are closely related. Creativity is an idea of how to do something differently while innovation is implementing that idea, thereby introducing something new. As it relates to business, innovation is providing your product or service in a new way that creates additional value for your customers while simultaneously lowering your cost.

Innovation is not specific to technology—you can innovate any segment of your business. If you create a way to reach more prospective customers in less time and at a lower cost, you have stumbled upon an innovation. An innovation does not require that you do something radically different: You can do the same thing in a different way.

The Benefits The right innovation can skyrocket your sales, increase your market share and cause your competitors to work feverishly to copy what you have created. Small business owners who innovate successfully tend to become successful as business owners because of their innovation. So, with so much to gain, why are so few business owners willing to innovate? Fear.

The new delivery process you implemented could wind up costing more—lots more—than you projected, and it might take months to recover from the financial hit. If you recover.

34 THINKING BIGGER BUSINESS // August 2016

Fear of failure affects small business owners and Fortune 500 CEOs alike. But risk is a part of business. A good business leader is daring enough to take sound risks.

Not Your Responsibility?

Most small business owners are content to wait for someone else to innovate their industry—yet these same owners complain about their shrinking market shares. Having an exceptional product or service or offering an unusually low price gives you a competitive advantage, but so does conducting business more effectively or more efficiently.

And innovating allows you to do both.

When you fail to look for ways to innovate and business grows stagnant, your competitors gain ground. I find it odd that small

business owners tend to wait for larger competitors to innovate the industry because small business owners, who know their customers personally, know exactly what their customers like and dislike.

Corporate executives get a wealth of information from customer surveys, but these surveys do not provide the depth or breadth of information that face-to-face conversations do.

Another advantage small businesses enjoy is, because they have fewer employees, they can change direction in a matter of days rather than weeks or months.

It is often assumed that an innovation revolutionizes the industry and makes its creator famous. In reality, lots of business innovations are only known by a relative few. Nearly every business

recycles, for example, but exactly who began the recycling craze in America?

Innovation Is Your Responsibility When consumers look at your business, do they see a business that evolves with the times and finds original ways to meet customers’ ever-changing demands? Or do they see a business that continues to do things the way it always has?

If you wait on a larger competitor to introduce innovations to your industry, you could just copy their ideas. That might even seem like a more effective and more efficient way of doing things. Unfortunately, you’re giving that competitor a head start, allowing it to capture a larger share of the market.

But if you innovate? Between the time you implement your innovation and the time others implement it in their businesses, you will have adjusted your position and created a competitive advantage until everyone else catches up with you.

Uber—which started as a small company competing with the giant Yellow Cab—is an excellent example of combining an innovative business model with innovative technology.

By using Uber’s app on your smartphone, you can find where the nearest driver is, see a photograph of the driver and be taken to your destination without needing cash. As a result, Uber has surpassed Yellow Cab because of its innovations and its ease of use.

Use Your Advantages to Create New Advantages As a small business owner, make use of your close relationships with your customers. Pursue them and ask what they like and dislike about your product or service.

Do not view negative responses as complaints. See them, instead, as areas of opportunity.

The stakes are high.

Just because big businesses tend to dictate what happens in the industry does not mean you should be content to allow them—or anyone else—to introduce innovations. Look at every practice, procedure and process you use, and find creative ways to do things better.

Marvin Carolina Jr. is vice president of corporate diversity at JE Dunn Construction, where he has spent the last 10 years helping business owners and entrepreneurs across America realize their business’s potential.

(816) 474-8600 // marvin.carolina@jedunn.com // www.jedunn.com

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SMART COMPANIES THINKING BIGGER®

35

BIGGER | sales S M A R T

( by Nicole Tackett )

S T R AT E G I E S

sion-maker, her dissatisfaction with your service or company will resonate with the executives who do control your fate.

Maintain a consistent and respectful relationship with all your client contacts.

An easy way to measure when the temperature of your client declines is when the “small talk” or standard relationship activity alters in some form or another.

Not Following the Standard Chain of Command If clients are constantly going to the department manager or company owner instead of their designated contact, it most likely signifies they are dissatisfied with either the service or product results and want the decision-makers to know.

This opportunity allows managers and business owners to address the issues that caused this break in process and jump on whatever the client needs to continue with the company.

Sometimes it is a simple modification, or it can be a complete transition of service offering. The retention of the account is what matters. When clients are not being heard, they always want to jump the chain of command because they feel their needs are important—and they are.

Overall, dissatisfied customers will breed dissatisfied employees and deter future business as our society is saturated with the referral mentality. Make sure you understand the reason for a client’s behavior change. Speak to your client, either in person or over the phone, to make them feel heard. You will find it may not actually be about the product or service results, but more about a relationship that has suffered for one reason or another.

Delivering that “personal touch” will help shine a light on the true reason for a customer’s dissatisfaction. This is your opportunity to correct an issue before it potentially escalates to lost revenue.

By knowing these three warning signs, your company can be proactive and turn around a client before it’s too late.

NO. 3

3 Signs Your Clients Are Ready to Jump Ship Don’t miss their SOS— spot and save your dissatisfied customers.

M

ost companies boost their top line by focusing on new sales initiatives. But the core of a business is still its existing client base.

Unfortunately, retention is often overlooked because some businesses presume that a customer will always be a client.

In all reality, the competitive nature of business means your clients have multiple options. The best way to set yourself a part from the crowd is the customer service you provide.

In our companies, we have the goal of retaining 90 percent of the current clientele year-over-year. In order to do that, we proactively address the three following warning signs to spot any dissatisfied clients before they consider “jumping ship.”

Drilling Down to the Details If you are in a service organization, clients are paying for your expertise because NO. 1

36 THINKING BIGGER BUSINESS // August 2016

they know they need it. While being 100 percent transparent with customers is extremely encouraged, the moment clients drill in on details they have never focused on before should trigger a lightbulb to the possibility that you have lost their trust or they are searching for a reason to discredit your ability.

Let’s face it, not every dissatisfied client will “take their business elsewhere,” but they will be a negative impact on your business until they eventually leave.

Cutting Out the Small Talk Customers leave people, not just companies. It doesn’t matter if you are offering a top-of-the-line product, with all the bells and whistles, plus the best marketing around driving steady new business. If an existing client does not feel valued or heard, they will go to a competitor who will fill that void.

For example: Does Betty Sue sound annoyed every time you call or send an email? If she no longer chats about her weekend activities, her two Boston terriers and her love of knitting, then she is probably unhappy, but doesn’t want to tell you.

Although Betty Sue may not be the deciNO. 2

Nicole Tackett is vice president of Lever1, a professional employer organization that helps small businesses outsource HR, payroll and emoloyee benefits. ntackett@lever1.com // (816) 994-1300

BIGGER | finance S M A R T

( by Tim Sernett )

S T R AT E G I E S

5 Ways to Prepare Your Business for Downswings When lean times hit, you’ll be prepared to survive—and prosper.

profit. Gross profit is the result of your sales price less your direct costs—the cost of materials, products, labor, etc.

Every business should have gross profit targets for every single sale transaction, and have a system in place to accurately measure and monitor gross profit results.

Justify Your Operating Expenses Let’s start by understanding what we mean by operating expenses, which are sometimes referred to as overhead.

We’ve already established the importance of understanding gross profit— that is, the net result of sales price less your direct costs. Indirect costs, or operating expenses, are all the expenses that affect the company as a whole, not just the production of one particular product or service. These include marketing, facilities, general supplies, utility costs, professional fees and many others.

Take the time to analyze every operating expense line item on your income statement and justify the existence of each expense. How are expenses justified? Start by asking if the expense actually improves the experience of your customers or key team members.

2

R

ight now, the economy seems to be doing OK, at least compared to 2009 through 2011. However, with the Brexit and other events, there is a lot of uncertainty regarding the coming months.

Of course, if the economists’ worst fears never materialize, tough times can still overtake a small business even while the rest of the country is thriving. The great thing about running a small business is the opposite can be true as well: Your business can thrive even if the economy is struggling.

The key to surviving the swings is to keep your company lean at all times so you are prepared to make quick moves. To do this, you must maintain constant insight and foresight into your company’s finances.

Here are some basic steps to help you accomplish just that.

38 THINKING BIGGER BUSINESS // August 2016

Become Financially Literate About Your Small Business The ability to keep your company lean, profitable and in cash flow safety is dependent on your level of business financial literacy.

Understanding how to read financial statements is the key to making sure your company generates enough gross profit to cover overhead on every sale and enough net income to meet your cash flow needs.

Your statements also will show you what balance sheet accounts need to be managed to sustain positive cash flow. (This is easier said than done, and may require some coaching from your CFO or CPA.) You need to have a feel for your business’s most important key performance indicators (KPIs) and have a system in place to monitor those KPIs. For most small businesses, one of the most important KPIs is gross

1

Use a Business Financial Plan as Your Road Map Please do not think about business financial planning simply as preparing a budget—budgets are for households.

You’re running a business, and to have any real insight and impact on improving your operating results, a business requires a complete set of forecasted financial statements.

In my opinion, the most important result of financial planning is long-term cash flow management and improvement. While an income statement budget is important, it does not help you answer all the cash flow questions: How much cash will the busi-

3

ness need, when will the business need that cash, and where will it come from? The only way to do that is by forecasting out the income statement and the balance sheet and the cash flow statement.

Each of the three financial reports is tied to the other, and going through the forecasting process will help you understand how they are tied together and why managing cash flow is more difficult than simply managing expenses.

Comparing actual results to your budget should be done every month. Monitor how your business is performing compared to your plan. This will provide you the financial insight needed to keep your business afloat.

Have an Awareness of Weekly Cash Position and Cash Flow The financial plan mentioned above is more long term.

You also need a system in place to monitor and control cash flow on a weekly basis.

Your accounting department should be able to provide you with a weekly report that summarizes the following metrics.

That way, you can assess any actions that need to be taken in the short term. You’ll need:

4

A

Current cash bank balances, as well as availability on lines of credit

B

Accounts payable aging, highlighting required disbursements for the current week

BUIL DING KANSAS CITY

I

n 2016, Thinking Bigger Business Media celebrates its 25th anniversary of telling “the story of small business” in Kansas

City. Appropriately, we have themed our 25th anniversary year “The Story of Small Business.”

During the next year, we will tell the story of how small business

C

Accounts receivable, highlighting any past due accounts that need follow-up

has built Kansas City, industry by industry. You’ll learn about

D

Highlights of dollar amounts on any major cash flow swings in the next 10 days or so—for example, biweekly payroll, bank note payments, customer collections, sales events, etc.

some of the key small businesses in the industry.

Projecting ending cash position for the week factoring in A, B, C and D

light your particular industry. Are you a longtime Kansas City

E

If you are reviewing this information every week, you will get a feel for weekly cash flow management—and perhaps sleep a little better at night.

Build Up Cash Reserves Your financial plan in Step No. 3 should include establishing enough cash reserves to cover at least three to six months of operating overhead. This allows your business enough time to adjust to downturns in revenue. Conversely, when business is good, you’ve established a base line for excess cash reserves. Any cash you have above and beyond your six months of reserves are available to invest back into your business.

Here’s hoping your business never experiences any serious downswings. But if you do, following the steps above can help your business survive and be poised to take advantage of the good times.

5

the trends, opportunities and state of each industry, as well as

We invite your company to tell your own story as we highcompany that has played a pivotal role in building the metro?

A newcomer that is actively building it today? If so, help us tell the story of your company.

UPCOMING INDUSTRY SPOTLIGHTS

»

AUGUST //

»

SEPTEMBER //

»

OCTOBER //

»

NOVEMBER //

Transportation & Logistics

»

DECEMBER //

Engineering

Animal Health / Pet Care Technology / Innovation

Health Care / Health Insurance

Tim Sernett, CPA, is the founder of Timothy L. Sernett, CPA, PA. The firm’s flagship service is Virtual BeanCounters, which offers outsourced accounting and related services.

For more information, please contact Kelly Scanlon

www.thevirtualbeancounters.com

at (913) 432-6690 or kscanlon@ithinkbigger.com

SMART COMPANIES THINKING BIGGER®

39

BIGGER | finance S M A R T

( by Greg Ballew )

S T R AT E G I E S

How to Get Ready for the New Overtime Rules Four steps you need to take now.

D

epending on whether you ask the U.S. Department of Labor (DOL) or the Economic Policy Institute, you’ll hear that between 4.2 million and 12.5 million Americans who previously were considered to be exempt, “white collar” workers now may qualify for time-and-one-half overtime pay under Labor Department rules issued in mid-May. The new salary baseline goes into effect Dec. 1. The Obama administration estimates

40 THINKING BIGGER BUSINESS // August 2016

the change will cost employers between $240 million and $255 million per year in direct costs. Business groups say the administration’s assessment is far too low.

What we do know is that, for companies with any employees who are considered exempt, the DOL’s new regulations could mean radical changes in how those workers are paid.

The new rules, which fall under the Fair Labor Standards Act (FLSA), affect the DOL’s definitions of executive, administrative, professional and computer employees.

Previously, these employees generally were considered exempt from overtime pay if their salaries were at least $455 per week,

or $23,660 per year. The ruling more than doubles that minimum annual salary threshold, increasing it to $913 per week, or $47,476 per year. The DOL says this figure is set at the 40th percentile of data representing what it calls “earnings of fulltime salaried workers” in the lowest-wage Census region.

In addition, the total-annual-compensation threshold for the “highly compensated employee” exemption will increase from $100,000 to $134,004. This figure, according to the DOL, is set at the 90th percentile of data representing the earnings of full-time salaried workers nationally.

(If an individual is highly compensated,

VOLUNTEER that person only has to “customarily or regularly” perform exempt job duties to qualify for overtime-exempt status—a slightly looser standard.)

Employers will be able to satisfy up to 10 percent of the new standard salary test requirement through nondiscretionary bonuses and other incentive payments, including commissions, as long as the payments are made at least quarterly. This crediting does not apply to the salaries paid to exempt “highly compensated” employees.

Notably, the DOL did not change any of the exemptions’ “duties test” requirements—that is, the kinds or amounts of work necessary to sustain exempt status.

The DOL further added to the new regulations by announcing that it will “update” the salary floor—which means the amount likely will increase with each update—every three years, beginning Jan. 1, 2020. Employers will be given 150 days advance notice before the updates go into effect.

How the Change Affects Small Businesses Small businesses, in particular, may be affected by the ruling. Smaller companies often are staffed with at least a few managers or other employees whose salaries fall below the new threshold and who sometimes work more than 40 hours per week.

Whether or not these individuals now will become eligible for overtime pay has nothing to do with their job titles, but depends on their job duties, compensation level and how many hours they work each week. But, because the possibility exists that additional employees now may be eligible for overtime pay, small businesses could be faced with higher costs or forced to moderate workers’ hours or even reduce staff.

Some legislators are considering action aimed at stopping these changes, and it is possible that lawsuits will be filed with the same goal. One or more of these challenges may be successful, but until you know for sure, you should assume that the new requirements will take effect as scheduled and immediately take steps to ensure your company will be ready to comply.

The actions you need to take now are: » Analyze whether the requirements for the “white collar” exemptions you have been relying upon are met. » Once you clearly understand what duties meet the requirements for exemption, evaluate what you may need to change about one or more people’s jobs to make sure you can continue to classify those positions as exempt. » Consider the possible application of pay alternatives. For example, payment on a day rate, piece rate or commission basis—all of which are subject to specific regulations and do not remove the need to pay overtime, but might lessen overtime expense. Or look at alternative exemptions—such as the retail 7(i) exemption—based on the industry or specific job at issue. » Develop FLSA-compliant pay plans for employees who have been treated as exempt but who no longer will be.

The Risk of Noncompliance FLSA wage-and-hour lawsuits have soared in the last two years. They reached an all-time high in federal fiscal year ’14, only to escalate another 7.6 percent in FY15. The new overtime rules seem fraught with opportunity for further spikes in wage-and-hour claims.

If an employee were to assert that your business was not following the new overtime rules, you could expect a Department of Labor audit and perhaps an employee lawsuit. Therefore, the correct classification of employees and the accuracy of their time data is critical.

The DOL’s overtime pay changes could have dramatic implications for your small business. Plan now to make sure you’re ready to comply with the new rules when they take effect Dec. 1.

Greg Ballew is a partner with Fisher Phillips, a Kansas City, Missouri, labor and employment law firm.

Your skills, talents and business savvy are valuable resources which can be used to benefit emerging and existing small business owners through SCORE. Become a part of an extended team of volunteers representing all facets of the business community. Some of our volunteers have worked as top executives with large corporations.

Some have been small business owners. Others have valuable experience in universities, government or the military.

The Kansas City Chapter of SCORE was formed fifty years ago and remains the premier small business mentoring organization in the area. All mentoring is confidential and provided to our clients at no charge.

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41

SCALEUP! KC

( by Dawn Bormann )

BRANDON O’DELL JUST WANTED A LITTLE EXTRA INCOME. BUT FRIEND THAT COOKS HAS BECOME SOMETHING MUCH MORE.

A Personal Chef for Everyone any think of a personal chef as a luxury service—something only those living in mansions with live-in staff can afford.

But in 2007, Brandon O’Dell put a twist on the personal chef business when he founded Friend That Cooks for modern families. He’s created a way for customers to essentially split the cost of a personal chef between 10 families but still have meals every day. The chef comes into the home,

M

42 THINKING BIGGER BUSINESS // August 2016

does all the work and leaves enough meals for a whole family to eat the entire week.

Today, Friend That Cooks is a fast-growing business with 17 chefs serving customers in eight cities—soon to be 11. That success is part of the reason why O’Dell was among a premier group of entrepreneurs selected to participate in ScaleUP! Kansas City.

The program is offered by the University of Missouri-Kansas City Innovation Center and the U.S. Small Business Administration.

It’s open to entrepreneurs who have been in business at least two years, generate $150,000 to $500,000 in annual revenue and are in a market capable of supporting more than $1 million in sales.

The program comes at an ideal time for O’Dell because his business is growing at record speed.

“I think it’s an awesome thing to be done for businesses my size,” he said.

now a minority owner—took over the Wichita operation, and O’Dell built the KC operations from the ground up.

“Breaking into a new market was hard,” he admits.

But it taught him important lessons that have guided him as the business has expanded. Friend That Cooks has chefs in Kansas City, Chicago, St. Louis, Omaha, Des Moines, Milwaukee and Wichita. He’s hiring in Denver and will add Minneapolis, St. Paul and Indianapolis by 2017.

ENTREPRENEUR

Brandon O’Dell COMPANY

Friend That Cooks (913) 660-0790 www.friendthatcooks.com A MOVABLE FEAST

Friend That Cooks started in Wichita before founder Brandon O’Dell moved to KC. The company has a presence now in 10 metros, with two more coming online soon.

‘WE SELL A SERVICE’

8 CITIES AND COUNTING

Friend That Cooks was meant to be a parttime side job for O’Dell. It would give him financial stability while he built his restaurant consulting business. O’Dell had worked in the food industry for a long time and was offering his expertise on cost control, branding and other financial strategies to restaurant owners.

But the consulting work was feast or famine, so O’Dell hastily created a website and spent $250 on vinyl yard signs for Friend That Cooks.

“I put them all over town,” he said.

Two hours later, he landed his first customer.

“Next thing I knew, my schedule was full, and it was pretty obvious that Friend That Cooks was my full-time gig,” he said.

O’Dell eventually got married and moved to Kansas City. A trusted employee—who is

O’Dell recruits high-level cooks and, he said, pays them 50 percent more than what they would make at a restaurant.

“We sell a service. We sell the time of our chefs. So the most important thing that we do is to find and hire the right people,” he said. “The supervision becomes easy.”

One of the biggest obstacles O’Dell faces is convincing clients that hiring a personal chef isn’t a luxury expense. His customers range from single individuals to busy, dual-income families with kids in activities.

Many customers don’t get home until 6 p.m. or after and can’t fit in grocery shopping, prepping, cooking and cleaning up.

“By the time you’re done, it’s 9 or 10, and the night is gone,” he said. “People just don’t want to do that.”

The business charges a flat hourly rate—$37 in Kansas City—and can usually finish the work for a family of four in four to five hours.

O’Dell said his team has perfected techniques to make the food far superior to the storefront meal-prep businesses and the meal-in-a-box services gaining popularity.

Jeremy Huffman and his wife tried a mealin-a-box service before choosing a chef from Friend That Cooks. They have no intention of going back.

“What’s really nice is collaborating with the chef on what we want to eat that week and what we’re hungry for,” he said.

The couple enjoys cooking, but long working hours left little time. Their chef prepares 20 premium meals with healthy ingredients, and they cook on the weekend for pleasure.

Another benefit, he said, is that they save money by not eating out after a late workday.

“It forces you not to eat out as much,” he said.

ARE YOU READY TO SCALE UP?

ScaleUP! Kansas City—a free program for KC small businesses—is looking for companies that want to supercharge their growth. Learn more at www.scaleupkc.com.

‘IF IT’S NOT WRITTEN DOWN …’

Friend That Cooks’ service is gaining new customers all the time. It’s another reason why ScaleUP! Kansas City will be a pivotal part of its growth.

O’Dell said the program is already starting to provide him with the essential tools and resources he needs to move to the next level. It has also pointed him to other entrepreneurs and mentors who can provide some essential guidance. That’s important for someone like O’Dell, who didn’t grow up here.

ScaleUP! has also reminded him to step back and plan ahead.

“If it’s not written down, it’s not really a plan,” he said.

When O’Dell was a restaurant consultant, he would insist that customers complete a thorough business plan and let staff know how they were part of that success. Yet he’s been so busy building his business that he put off doing some of that same comprehensive work.

“There’s so much of it that I should have been doing—that I’ve done for other people,” he said.

Dawn Bormann is a freelance writer based in the Kansas City area.

SMART COMPANIES THINKING BIGGER®

43

BUILDING KANSAS CITY

Animal Health // Pet Care

2016

KC’S CRITICAL MASS OF RESOURCES ATTRACTS ANIMAL HEALTH COMPANIES TO THE REGION.

Animal Magnetism ome people get a little sensitive about Kansas City’s “Cowtown” nickname. But it’s hard not to feel a little proud of the moniker when you consider just how much the animal health industry has done for the region.

The Kansas City Animal Health Corridor—an industry group that stretches from Manhattan to St. Joseph to Columbia—encompasses more than 300 companies and organizations. The membership includes up-and-coming startups, as well as internationally known brands like Bayer, Hill’s Pet Nutrition and Cargill.

These ventures develop innovative products and support a highly skilled workforce that includes executives, researchers, sales professionals and more.

All told, “corridor companies” represent about 56 percent of all global animal health sales, said Kimberly Young, the president of the KC Animal Health Corridor.

The sector is growing, too. According to Brakke Consulting, the industry saw more than 5.1 percent growth last year.

Several companies with a KC presence outperformed that. Boehringer Ingelheim Vetmedica Inc. had a growth rate of 21 percent, according to industry news source Animal Pharm, while Ceva Animal Health grew by 12 percent and Bayer by 13 percent.

“These businesses and these technologies, they’re driving innovations to solve worldwide issues,” Young said.

Case in point: The increasing global demand for meat. As the world’s middle class grows, more people have the means to add poultry, pork and beef to their diet.

Ag producers need solutions that will keep their productivity high. That includes help battling avian flu and other diseases that can devastate livestock.

Of course, not every animal ends up on a plate. Spending on pets is expected to pass $60 billion this year, and the Kansas City area has nurtured several startups that are develop-

S

44 June 2016 44 THINKING THINKING BIGGER BIGGER BUSINESS BUSINESS // // August 2016

ing cures to protect and prolong the lives of companion animals.

In recent months, there has been a wave of growth: » Boehringer Ingelheim, whose U.S. headquarters is in St. Joseph, announced plans this summer to acquire Atlanta’s Merial from Sanofi. The deal stands to double Boehringer Ingelheim’s revenues and vastly expand its portfolio of products.

for poultry—in fact, it was one of two companies chosen to produce avian flu vaccines for the USDA stockpile.

Kimberly Young

» Ceva Animal Health is moving forward with a new effort to develop and sell custom vaccines for the swine industry.

Ceva already has a thriving business

» Aratana Therapeutics—which develops biopharmaceutical treatments for pets—could receive regulatory approval of its third product very soon, possibly this month. The company is planning to double its staff to nearly 100 people, including 25 sales representatives based around the country.

WHY KC IS A LEADER IN ANIMAL HEALTH

Kansas City’s strength in animal health is rooted in our agricultural past. But it is human talent that has allowed the industry to endure here over the long term.

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INTEGRATED ANIMAL HEALTH

Innovation That Matters The Kansas City Stockyards, which opened in the 1870s, were a fixture in the West Bottoms for 120 years. During the stockyards’ heyday, they were among the busiest in the nation, second only to Chicago.

While the stockyards were officially open until 1991, the historic flooding of 1951 devastated the West Bottoms and throttled business there. Packing plants and others were driven out of business.

Over the decades, though, the stockyards had attracted vaccine and feed companies to the area, and they stayed even after the stockyards went away.

To serve those companies, Kansas City grew a network of law firms, marketing agencies and other service providers that had special expertise serving the animal health industry. The region’s universities also produce the research and scientists necessary to develop new, innovative products.

“Regional partners understand our needs because so many companies have deep roots supplying and supporting animal health companies,” said Craig Wallace, Ceva Animal Health’s CEO and North America/Pacific Zone director.

“From warehouse support to building specifications, the Kansas City region has so many experts we can call upon to help us manage our growth. We don’t have to start at square one explaining regulations and compliance. They know what we need because they’ve done this work before.”

“We chose the Kansas City marketplace because of those things,” said Joe Young, chief operating officer at AGL, which grew out of research developed at Georgia Tech.

The company produces Vetrax, a new type of wearable sensor that tracks pets’ activity more accurately than other solutions. Veterinarians receive data that enables them to better treat their patients.

The corridor has continued to make strategic investments in programs that are useful to animal health companies. Examples include St. Joseph’s Innovation Stockyard business incubator at Missouri Western State University and the K-State Olathe Innovation

ntegrated Animal Health (IAH) is a new breed of animal health company.

IAH is an innovation engine, with one of the deepest pipelines in the industry today. Originally founded in Australia, they moved their global operations to Lawrence, Kansas, in the Animal Health Corridor in 2015.

I

As the animal pharmaceutical and pet food industries have grown and merged, innovation has slowed. Of the relatively few drugs approved by FDA last year, nearly half were antibiotics. IAH innovates faster and less expensively. They launched five new products in the past 12 months, all non-antibiotic, non-pesticide solutions, and each, truly, a transformative innovation.

IAH creates value by early identification of novel technologies. They then de-risk these innovations through testing, regulatory approval and commercialization, launching these products in big markets with unmet needs through licensing or global distribution. The product technologies are for production animals as well as pets and run the gamut from nutraceuticals to pharmaceuticals, novel pet foods and animal feeds to biologics.

Integrated Animal Health has commercially tested and available products already going into global distribution with 10 international territories signed in less than 12 months.

Their small team has many decades of experience working across two dozen countries and five continents. IAH products address significant and costly issues like an all-natural non-pesticide tick and fly control for feedlot cattle, deer, horses, dogs and cats (which has no equivalent market competitor); non-antibiotic, certified organic, all-natural solutions for dairy mastitis and calf scours (diarrhea); biotoxin control; cancer therapies; a nutraceutical treat line and much more. IAH currently has five trials ongoing with large, multinational corporations in dairy, swine and companion pets in either proof of concept or field studies. www.IAHglobal.com

IAH delivers innovation that matters.

continued on page 46 » SMART COMPANIES THINKING BIGGER® SPONSORED CONTENT

45

BUILDING KANSAS CITY

Animal Health // Pet Care

2016

Campus, which makes K-State expertise available to local businesses.

“That’s been a great way to attract some of these companies to the KC area,” said Steve Schram, president and CEO of AgriLabs. The company is responsible for marketing a range of products, including the VetGun, a paintball-style gun that lets users fire topical insecticide at cattle.

In Manhattan, construction is underway for the National Bio and Agro-Defense Facility (NBAF). It’ll serve as the nation’s premier researcher of animal disease, replacing the federal government’s facility on Plum Island, N.Y. Steve Schram There’s also the KC Animal Health Investment Forum, which has helped raise more than $170 million for scores of young companies. This year’s forum is scheduled for Aug. 30.

As the CEO of ELIAS Animal Health in Olathe, Tammie Wahaus was able to present at the forum in 2014 and 2015.

“That program, I would say, has been very helpful to us in getting our initial investor commitment, our first $2 million round,” Wahaus said.

By participating in the forum, she also met suppliers and contract manufacturers that will help ELIAS continue to grow.

WHAT’S ON THE HORIZON?

Boehringer Ingelheim’s acquisition of Merial is a sign of a larger trend in animal health: consolidation. Kansas City leaders want to make sure that, as the number of enterprise-level companies decreases nationally, the survivors retain a presence here.

Elected officials can help, said Aratana CEO Steven St. Peter, by getting to know the leaders of local animal health companies and making sure government policies help nurture the businesses here.

“The biggest thing I see—and I know the city’s working on it and the region’s working on it—but funding for startups,” said Schram of AgriLabs.

46 THINKING BIGGER BUSINESS // August 2016

INVESTING IN THE NEXT GENERATION The KC Animal Health Investment Forum returns this month.

Some of the world’s biggest names in animal health will come to Kansas City later this month.

(The ones that don’t already live and work here, that is.)

They’ll be attending the KC Animal Health Investment Forum on Aug. 30 at the Kansas City Convention Center. Seventeen early- and mid-stage companies will present their solutions to an audience that will include approximately 46 funds and 117 animal health companies.

“Our event was the first forum, globally, specifically focused on animal health,” said Kimberly Young, president of the KC Animal Health Corridor, which hosts the forum.

In many cases, the presenters will be seeking funding. Since the forum launched in 2010, its featured companies have raised about $170 million in investment.

But they often walk away with other benefits.

“They can also pitch for industry partnerships,” Young said. “They can be pitching for a licensing deal. They can be pitching to be acquired.”

Among this year’s presenting companies, most come from outside the area. Three are based in other countries: Canada, Ireland and Israel. One is from the Kansas City area.

But that can be a good thing. If an out-of-town company connects with an established Kansas City business, that young company will be more likely to open an office here or even relocate to the region. It’s not too different from how Silicon Valley acts as a magnet for tech startups.

Those young ventures and their solutions could ultimately blossom into the major animal health companies of tomorrow.

“The industry is seeing a lot of innovation from these early-stage, entrepreneurial companies,” Young said.

She’s been heartened by the R&D costs a lot of money, announcement of several new and that can be a challenge KC-based investment funds. for early-stage companies in “That’s going to be critical the biosciences. for the region to sustain the To date, ELIAS Animal continued growth of these Health has raised nearly Steven St. Peter $2.7 million, Wahaus said. The animal health companies region’s angel investors have been and to retain those companies,” very supportive, but she knows that she said. she will have to raise larger rounds to commercialize ELIAS’ cancer immunotherapy James Hart is the managing editor of Thinking Bigger solutions for companion animals.

Business Media. (913) 432-6690 // jhart@ithinkbigger.com

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BIG VOICES

5 Questions You Should Always Ask a Prospective Lender oo often, business owners operate under the misconception that a bank is the only party that should be asking the questions during a meeting. A banker who will be a good partner for your business recognizes there are many questions the business owner should ask as well.

T

As you evaluate your current banking relationship or shop for a new bank, request a meeting and approach it as an interview. Here are five questions to ask that any banker should be willing to answer.

1

Why should I bank with you?

This question underlies all others. You need to be convinced the bank is right for you. The answer to this question should reveal how strong the bank is: how well it is capitalized, its liquidity position and how it compares to other banks.

A seasoned lender will know this about his or her bank. The banker should also offer information such as the bank’s legal lending limit, whether it can handle all of your banking needs, and even how it handled the recent financial crisis.

2

3

Do you understand my business and my reason for borrowing?

Have a frank conversation about what the bank considers its lending territory. Find out whether the bank stays local and whether it understands the local economy. Does it specialize in certain industries? Familiarity with an industry allows the bank a greater understanding of why you need money (startup vs. growth capital) and how much money the business needs. You don’t want to put yourself in a situation where you go into debt but you didn’t borrow enough to finance the growth opportunities that will allow you to pay back the debt.

Do you do SBA-guaranteed loans?

Banks with an SBA-guaranteed loan program may be more willing to lend to you. Be sure to have the lender explain the differences among SBA programs, and which one may be best for your needs. For example, 504 loans are more for real estate and 7(a) loans are for working capital and equipment needs.

If the bank does offer SBA loans, ask whether the bank is a Preferred Lender or a Certified Lender. That’s important because these lenders are familiar with SBA requirements and can therefore provide faster service and are usually able to expedite the approval process.

4

Can you help me understand any risks to repayment that I may not be aware of?

Entrepreneurs tend to be big thinkers and don’t always think

about or have time for the details. Be sure your banker is willing to help you understand your business’s current cash flow position, any gotchas that may be hidden in your financials and the impact of any current debt (including personal liabilities) that could impact your ability to repay the loan you’re asking for.

Ask for an explanation of Debt Coverage Ratio and how it is calculated. Find out whether you will need to provide “key man” life insurance. And, importantly, find out what happens if you can’t repay the loan. What is at risk?

5

Will you be accessible and responsive to me as a client?

Find out how the bank management is structured. Among the key answers you’ll be looking for here are whether the bank has a hunter/skinner mentality, which is common with a big bank that has salespeople who are “hunters” and relationship managers who are “skinners.” Is there a credit analyst who is responsible for the ongoing maintenance of the relationship?

Don’t hesitate to ask about the process the loan committee uses for approval, whether the decisions are made locally and the response time you can expect.

Drill down with specific questions like who will pick up the phone when you call.

A good bank is looking for a long-term relationship that is profitable for both you and the bank. The only way to establish that kind of relationship is when both parties ask the pointed questions necessary to find out whether they are a good match.

Mark Steinman is the vice president of commercial lending in Kansas City for Equity Bank. You can reach him at (913) 323-9317 or at msteinman@equitybank.com. You can also visit www.equitybank.com.

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WRITTEN BY PHIL SINGLETON

Google 360 Virtual Business Tours Increase Consumer Interest By 100% S

earch engine optimization, or SEO, relates to all the things you do for a website or company to show up on the first page of Google.

Google is important these days because it’s more than a search engine. “Googling” has become part of the modern purchase process.

Doubt that? Consider that consumer Google searches are soaring. In 2014, there were roughly 3.5 billion Google searches per day. “Search Engine Land” recently reported that for this year, by comparison, there are more than 5.5 billion Google searches per day. That’s approximately 65,000 Google searches per second.

Few consumers try or buy anything new without “googling it” first. People even follow up wordof-mouth referrals with an Internet search. If prospects can’t find your business quickly on Google, or if your website is dated or unprofessional, you might be losing more referral business than you realize.

For small businesses today, there is one universal truth: If you want to grow your business, you can’t ignore Google.

HOW TO GET MORE GOOGLE VISIBILITY AND LEADS FOR LOCAL BUSINESSES

With Google Search playing such an important role in small business growth, business owners and marketers are constantly looking for ways to get better visibility.

Fortunately, there is a powerful and affordable local SEO tactic that can significantly improve your Google-driven leads and sales. In fact, Google explicitly states that 360 Virtual Tours lead to a 100 percent increase in business listing interest. At our agency, we’ve seen this as high as 1,000 percent or more when coupled with a local SEO strategy.

For an example of a 360 tour, visit: www.kcseopro.com/google-360-street-view-virtual-tours/

HOW DO YOU GET A GOOGLE VIRTUAL TOUR? The “catch” is that in order to get a Google 360 Virtual Tour, you have to get one through a Google Trusted Photographer or Agency. Google only allows individuals and agencies enrolled in this program to upload these panoramic tours directly into Google Maps.

The only problem is that most photographers, even Google-certified photographers, are not SEO specialists. In order to get the most out of a Google 360 Virtual Business Tour, you should optimize your Google My Business/Google Maps listing so that you can get the best return for this investment.

By optimizing your Google My Business listing while adding a 360 Virtual Tour, you can substantially increase your visibility potential on local Google searches.

Kansas City SEO® is enrolled in the Google Trusted Photographer program. We have also invested in the Iris360 Immersive Reality Imaging System, a device that was developed jointly by NCTech and Google. This technology enables our agency to quickly and affordably shoot high-definition 360 images that meet the Google Street View quality guidelines.

> Restaurants

> Corporate offices

> Banks

> Storefront businesses

> Medical offices

> Retail businesses

Phil Singleton owns and operates Kansas City Web Design®, a WordPress web development agency, and Kansas City SEO®, a boutique Internet marketing company based in Overland Park, Kan. Phil’s team runs scores of SEO and PPC campaigns for companies of all sizes and geographic scope. Phil has co-written several Amazon best-selling books and eBooks, including “The Small Business Owner’s Guide to Local Lead Generation” and “Local SEO: Proven Tips & Strategies For Better Google Rankings.” For more advice and tips just like those above, connect with Phil Singleton on LinkedIn. He will send you a digital copy of one of his best-selling eBooks.

> Hotels

> Manufacturing facilities

(913) 735-9105 // phil@kcwebdesigner.com

> Car dealers

> Any business with a showroom

This new way to showcase your business online not only has the “wow factor” that buyers and business owners love, it also establishes trust immediately with Internet users, because they can see you are a real, credible business as soon as they click on your business listing.

WHAT KIND OF BUSINESSES BENEFIT FROM GOOGLE 360 VIRTUAL BUSINESS TOURS? Almost any business with a physical office space will benefit from a high-definition Google Virtual Tour:

48 THINKING BIGGER BUSINESS // August 2016 SPONSORED CONTENT

BIG | shots

Industrial Design Camp Gould Evans’ STEAM Studio and Shick Solutions recently hosted a youth camp on industrial design. Students were able to try everything from AutoCAD to welding. (photo courtesy of Shick Solutions)

Brew :30 Jenny Smitley and Sharon Auck of Fresh Approach Cleaning Professionals, Patrice Manuel of P/Strada and Becky Bieker of She’s A Pistol were among the networkers at last month’s Brew :30 at S.D. Strong Distilling.

AnswerPro Unlimited Jeffrey Zindel, past president of the Association of TeleServices International, presents the Learning By Association Sharing Award to Doug Gregg of AnswerPro Unlimited. (photo courtesy of ATSI)

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49

BIG | talk

» The BIG thinkers

behind the BIG ideas. »

Tim Berry Tim Berry has been called the Obi-Wan Kenobi of business planning. He’s the founder of Palo Alto Software and author of “Lean Business Planning” as well as several other books on business planning.

Learn more about Tim’s entrepreneurial endeavors, books and speaking topics at TimBerry.com.

Serial entrepreneur and business planning expert KELLY » How is lean business planning different from any other business planning?

TIM » All business owners can benefit from setting and reminding themselves of strategy, tactics, milestones, metrics and essential business numbers. But people will not plan because they think planning is hard. With the lean plan, you don’t need to do summaries and descriptions for outsiders. It’s not a big term paper. It’s simply lists and tables that you use to run your business.

Just like you don’t want to take a three-week trip to Europe without booking hotels and restaurants and flights, you don’t want to run a business without having priorities and milestones.

That’s real business planning. It’s steering the business. It’s setting for yourself what’s supposed to happen, knowing that it will change. But how can you manage change if you can’t recognize and define what’s changed?

KELLY » What’s the role of cash flow in a business plan?

TIM » Everybody needs to manage cash flow. It connects how the sales are going (how the money is coming in) and how the spending is going (how it’s going out). The best way to manage cash flow is to lay out what’s expected, track what changes and then adjust. A cash flow projection becomes like a dashboard that helps you see what you need to correct.

sumptions change? Did we plan too optimistically, or am I doing something wrong?” And you get together and solve the problem.

KELLY » How do strategy and tactics factor into the plan?

TIM » Without KELLY » You mentioned tracking milestones earlier. What do you mean by milestones?

TIM » It’s

about what comes next.

When is the next store going to open? When we change the menu? When we launch the new features on the app? Things like that, that you’re working towards.

For me, milestones are concrete.

What’s going to happen, dates, deadlines, how much will it cost, who is responsible. And if you don’t have budget for it, it’s not going to happen. Business is full of these interconnections, like the interrelationship between spending and sales, and the new product and the marketing for the new product, or the new store opening and the launch.

All of those interconnections in business work together through a planning process that sets up what’s supposed to happen, tracks the results and gives you the equivalent of a dashboard for making course corrections.

50 THINKING BIGGER BUSINESS // August 2016

KELLY » What role do metrics play in business planning?

TIM » When

I talk about metrics, I mean numbers. In a well-run business, there are lots of sets of numbers for different people who have different jobs. All individuals have some numbers that they run, that they work for so they can manage how they are doing.

So, metrics are part of the business plan because they pull everything together. When you have metrics in the plan, then people have a better sense of what they’re supposed to do and how well they’re doing. And the people whose numbers are good get to be happy and proud about it. And the people whose numbers are bad are uncomfortable and working to see how they can fix it. In a healthy environment, when the numbers are bad for one part of the business, it isn’t a matter of hiding them; it’s a matter of “Hey, let’s collaborate, what’s going on here? Did our as-

tactics, strategy is useless. Strategy is focus. How are we different? What market are we after? What is our business offering? How do those three ideas work together? That’s strategy.

Tactics are pricing, channels, distribution, social media, launch dates, all of that.

KELLY » If you had to focus on one of these more than the others, which one would it be?

TIM » If you run your essential numbers well, which means projecting your cash flow, that leads to a lot of the rest automatically.

So if you do the numbers, you’re really running your business better, even if you’re not doing the rest.

To listen to the full interview, scan the QR code or visit theRadio Archives of www.iThinkBigger.com

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Overland Park, KS

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