Thinking Bigger Business—March 2017

VOL. 26 // ISSUE 3 // MARCH 2017

SUCCESS THAT SHINES Shamerrific Shine founders Christina Scott and Kevin Neighley have patented a chamois that has sparked company growth.

DISTILLING RETURNS TO KANSAS CITY… In high spirits!

5 HOLES THAT SINK GROWING BUSINESSES

Has your business sprung a leak?

» iThinkBigger.com

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CONTENTS

MAR CH 2017 VOL. 26 // ISSUE 3

D E PA R T M E N T S

07 08 10 11 12 14 46 58

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

OUTLOOK

20

KC FUTURES Industrial Space

Keeping KC competitive

52

BUILDING KANSAS CITY Goin’ to Kansas City

Small business helps shape local tourism industry

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

34

ENTREPRENEURIAL JOURNEY Carol Dobies of Dobies Healthcare Group

Authenticity key to business success

35

BIGGER | finance Your Business Worth

30 PERFECTING THE DETAILS … Shamerrific Shine has patented a chamois and honed a process that allows them to clean vehicles in 60 seconds with just 1.5 gallons of water.

5 things you need to know

36

BIGGER | hr

KC ENTREPRENEUR

Finding the Right Employee

Remember, unicorns don’t exist!

38

BIGGER | growth Is Your Business Sinking?

When scaling for growth springs a leak

40

BIGGER | contracting Getting in the Contracting Game

Teaming to win contracts

42

BIGGER | sales Generating Leads

How to get more referrals

44

BIGGER | marketing Content Marketing

Does search play a role?

4

THINKING BIGGER BUSINESS // March 2017

ON T COV HE ER

Shining Up

PROFITS Shamerrific Shine owners Christina Scott and Kevin Neighley spent years perfecting services and processes.

C O M PA N Y T O WAT C H

KC MADE IT

F E AT U R E

17 Safe Gatherings

18 Culinary Center of Kansas City

24 KC’s Modern Craft Distillers

Assisting organizations that work with vulnerable populations

Licensing a line of kitchen products

Spirits are running high among new local distillers SMART COMPANIES THINKING BIGGER®

5

CONTENTS

MAR CH 2017

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6

THINKING BIGGER BUSINESS // March 2017

THE BIGGER PICTURE

Do Your Customers See You Making Sausage?

H

ave you ever watched

Yes, the occasional gaffe occurs, but

sausage being made?

trained performers pick up and carry

Most of us probably

on seamlessly, and how they handle

haven’t, and from what I’ve heard,

the blunder often endears them to their

that’s a good thing.

audiences (think Adele).

Yet, too often, that’s what our customers see when they do business with us. Sausage being made.

And it’s not pretty.

Granted, no company is perfect. No matter how many times we refresh our processes, train employees, perform quality checks and survey customers, mistakes

The only reason they can perform so effortlessly, though, and can recover when something does go wrong, is because they practice so diligently behind the scenes. We don’t see all the hours of training and practice. We don’t see the sausage

happen. But how many times have we dealt with

being made.

companies that make mistakes over and over again, as

Our customers shouldn’t see our processes being built.

if live interaction with customers is a dress rehearsal?

Keep your sausage-making private, and deliver the

We’ve all watched musicians, actors and others

“wow” experience that results from your behind-the-

deliver flawless performances before live audiences.

scenes efforts.

Ke lly S can lon

// Publisher // kscanlon@iThinkBigger.com

SMART COMPANIES THINKING BIGGER®

7

BIZ BITS

Top 10 SBA Lenders to Be Recognized The Kansas City district office of the U.S. Small Business Administration recognized the 10 Top 2016 SBA Lenders on Feb. 22.

growth from a handful of employees to more than 800.

As the SBA administrator, McMahon will be a member of President Trump’s cabinet. She will oversee an agency that has delivered millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses.

The lenders that were honored, in order of the number of loans they made to small businesses in the last fiscal year, were: 1

U.S. Bank

2

Alterra Bank

3

Simmons First Bank

4

Arvest Bank

5

The Bank of Missouri

6

OakStar Bank

7

Guaranty Bank

8

Crossfirst Bank

9

RMI, Inc.

10

Wells Fargo Bank

Esther George Appointed to Kauffman Foundation Board of Trustees

The Ewing Marion Kauffman Foundation has appointed Esther George to its board of trustees. George is president and COO of the Federal Reserve Bank of Kansas City and is a member of the Federal Open Market Committee.

Home Builders Association Announces New Vice President

The Home Builders Association of Greater Kansas City has added Josh Clark as the organization’s new executive vice president.

Among Clark’s responsibilities will be to further the HBA’s advocacy efforts with local and state government officials.

SBA Names Wayne Bell as Acting Region 7 Administrator

Micro-Grant Program Accepting Applications The Kansas City GCI Micro-grant program is accepting applications from small and medium-sized Kansas City area exporters who are eligible for reimbursement of exportrelated expenses. The program will reimburse companies up to $5,000 for expenses related to improving the applicant’s ability to access global markets. Applications will be accepted on a rolling basis until all funds are exhausted, but the submission deadline is June 30.

8

THINKING BIGGER BUSINESS // March 2017

Learn more about eligibility, use of funds and other details at http://wtc-kc.com/ World-Trade-Center/Micro-Grants.aspx.

SBA Gets New Administrator In a bipartisan 81-19 vote, the Senate confirmed Linda McMahon as the new administrator of the U.S. Small Business Administration (SBA).

McMahon is a former wrestling entertainment executive who co-founded World Wrestling Entertainment and as CEO oversaw its

The U.S. Small Business Administration has designated Wayne Bell as acting regional administrator of SBA Region 7, a four-state area that includes Kansas, Nebraska, Iowa and Missouri.

Bell, a St. Louis native, has served as the SBA’s Wichita, Kan., district SBA director since 2008. He will continue with that role in addition to his administrator duties.

Bell has more than 22 years of management experience in both the public and private sectors.

As acting regional administrator, Bell oversees regional delivery of SBA programs and services and regional coordination. The position includes responsibility for the district’s Small Business Development Centers, SCORE

chapters, a Veteran’s Business Development Center and Women’s Business Centers.

Kansas City Kansas Chamber Appoints Board Chair

The Kansas City Kansas Area Chamber of Commerce appointed Randy Nyp as chair of its 2017 board of directors. Nyp is the chief executive officer of Providence Medical Center, Saint John Hospital and St. Joseph Medical Center.

Valerie Mussett, the general manager of Design Mechanical, is the outgoing chair.

Kansas City Connector Project to Connect Change-Makers in Education and Entrepreneurship

Ewing Kauffman’s belief in what the common man can accomplish is legendary. Now, the Kansas City Connector Project, a new

initiative of the Ewing Marion Kauffman Foundation, aims to identify often unrecognized individuals and traditional leaders who are creating and influencing change in education and entrepreneurship. The goal is to match people, opportunities and resources that are furthering youth education and new business development.

Nominations are being accepted through March 31.

Anyone in the Kansas City area can nominate for the Kansas City Connector Project from within their personal and professional networks. In June, those identified as key connectors will be recognized at the Kauffman Foundation and be provided opportunities to design additional innovative ways to accelerate positive changes.

You can find additional information about the Kansas City Connector Project and the nomination process at https://kc-connector.kauffman.org.

Kansas State University President Richard Meyers Joins TechAccel Board of Directors TechAccel, an Overland Park-based technology and venture development company, added Richard B. Myers, president of Kansas State University and the former Chairman of Ri cha rs rd B. Mye the Joint Chiefs of Staff, to its board of directors.

The addition strengthens TechAccel’s focus on agriculture and animal health sectors. The company, which sources, invests in and acquires early-stage innovations, was founded in 2014 by Kansas State University with Helmstetter and the Bicknell Family Holding Company.

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

FEDERAL House Passes HALOS Act On January 10, the United States House of Representatives passed H.R. 79, the Help Angels Lead Our Startups Act or the HALOS Act. The Act directs the Security and Exchange Commission to revise regulation D, which currently prohibits general solicitation or general advertising with respect to certain offerings. If passed, this prohibition would no longer apply to specific kinds of sponsors, including “angel investor groups” that are unconnected to broker-dealers or investment advisers. Further, H.R. 79 clarifies rules about “demo days” hosted by universities, governments, accelerators and other business entities. This is critical as such events help entrepreneurs expand their businesses and seek out funding.

House Passes Regulatory Accountably Act On Jan. 11, the United States House of Representatives passed H.R. 5, the Regulatory Accountability Act of 2017 by a vote of 238183. The Act is comprised of six earlier bills that failed to pass in the Senate during prior Congressional sessions. It aims to benefit both entrepreneurs and consumers by reducing deference to administrative agencies, require agencies to use the least costly regulation, allow for Congressional review of regulations and require agencies to explain how proposed rules would affect small business.

MISSOURI Historic Tax Credit Program May Be in Jeopardy SB 6, introduced by Senate President Pro Tem Ron Richard, would cap the state historic tax credit at $120 million to fund renovations of the Capitol. A second bill, SB 126, introduced in the Senate by Sen. Andrew Koenig, would prohibit the transfer, sale or assignment of many historic state tax credits. Both bills could affect entrepreneurs. Historic tax credits are cited by many as spurring growth and development while preserving historic buildings. While Koenig’s bill is still in committee, SB 6 is being considered for perfection in the Senate. If passed in both the Senate and House, SB 6 would go to a vote of the people via referendum.

MISSOURI Missouri Passes Right-to-Work On Feb. 6, Missouri Governor Eric Greitens signed SB 19 into law.

Missouri is now the 28th state to pass right-to-work legislation. The legislation ends the requirement that workers in a unionized workplace join a union. Basically, those workers who do not wish to join a union can opt out of paying union dues. Critics say that this will effectively allow non-union workers to reap the benefit of collective bargaining and

other measures without contributing their fair share of union dues. Proponents rebut that right-to-work will allow greater economic freedom and prosperity.

While Missouri is currently a right-to-work state, petitions have already been filed by AFL-CIO president Mike Louis to force a referendum vote. Organizers will have until August 28 to collect the approximately 90,000 signatures to force a referendum vote. If petitioners are unsuccessful, the legislation goes into effect the same day.

KANSAS Repeal of Tax Plan Fails On Feb. 17, the Kansas legislature passed HB 2178, a bill that would abandon many of the tax policies advocated by Governor Sam Brownback in 2012. HB 2178 would end a tax exemption for more than 330,000 farmers and business owners as well as raise the state’s personal income tax. The bill aimed to chip away at the state’s $1.1 billion budget shortfall. Gov. Brownback quickly vetoed the bill. On Feb. 22, the House overrode the veto; however, the Kansas Senate’s override vote fell short of the twothirds majority required, preserving the Governor’s plan.

10

THINKING BIGGER BUSINESS // March 2017

2 5 U N D E R 2 5 ® U P DAT E S

Jowler Creek Winery Now Shipping Jowler Creek Winery (Class of 2016) is now

shipping their wines to more than 30 states across the country. You can find more details at https://vinoshipper.com/wine/winery/1172.

Big Changes at Krueger & James Krueger & James Insurance Company (Class of 2014) and Cowell Insurance Group have announced their merger. The merged firm is called Cowell James Forge Insurance Group.

LaDeena James purchased Krueger & James Insurance Company in 2013 and served as its president. She will act as president and chief operating officer under the merged company. She named Jason Forge as a partner in 2016. As part of the merger, Forge will serve as executive vice president and chief sales officer.

Schloegel Receives Recognitions The National Association of the Remodeling Industry selected Schloegel (Class of 2004) for this year’s Peter H. Johnson Award for its Big Splash Custom Bath Giveaway projects.

In addition, Debby Allmon, a designer at the company, has been elected president of the Waldo Area Business Association. Allmon has been on the board of the organization for five years, and Schloegel has been a WABA member for over 20 years.

Eagle Animal Hospital Welcomes New Vet Dr. Kurt Fredrickson joined Eagle Animal Hospital (Class of 2016) in January. He’ll

The Roasterie Launches New Mobile App

The Roasterie recently released a mobile app

that allows on-the-go customers to choose a café, browse menu items and favorites, order and pre-pay. Customers can shop The Roasterie store, access a tailored brewing guide and earn rewards with a loyalty card.

The Roasterie founder and owner Danny O’Neill was the 2011 Entrepreneurial Legacy Award winner.

On the Move

ER Marketing (Class of 2017) has moved to

new offices at 908 Broadway, Ste. 200, in Kansas City, Mo.

out event for marketers on Feb. 23 in New York. He presented insights into data-driven marketing along with Elissa Fink, the chief marketing officer of Tableau Software, an industry leader in business intelligence.

EAG Hires Big Brand CMO

Jeff Randolph has joined EAG Advertising & Marketing (Class of 2007) as vice president, director of client services.

Randolph is the former chief marketing officer for ARMA International and Camp Fire National Headquarters. In both positions, he set the strategic marketing direction and led initiatives to achieve brand awareness as well as revenue and membership goals.

Occu-Tec Opens Two New Offices Hertig Tapped for Exclusive Presentation in NYC Matt Hertig, CEO of Alight Analytics (Class of 2014), spoke at a first-of-its-kind, sold-

OCCU-TEC (Class of 2006) has opened two

satellite offices to better serve the growing list of major clients in the upper Midwest.

The offices are located in Detroit, Mich., and Gary, Ind.

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see patients at the hospital and also head up Eagle Animal Hospital’s mobile division.

Twentyseven Global Builds New App for Area Events

Twentyseven Global (Class of 2014) has

built and launched an events-based mobile application platform for Kansas City-based startup Ziyak. The custom mobile app shows users events that are happening around their city or in cities where they may be traveling.

Class of 2016

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

11

BIG | deals

AWARDS/RECOGNITION

» Morningstar Youth & Family Life Center

New Hyde Park Coffee Shop Mother Earth Coffee Shop opened in a 2,000-square-foot space in the International at 3504 Gilham. This is the brand’s first standalone retail location outside of a hospital. The new space will offer multiple seating arrangements for more than 60 people and amenities such as Wi-Fi, a community room and fireplace.

In keeping with the brand’s mission of sustainability, the interior is decorated with all-natural products. In an effort to leave a minimal environmental impact, the coffee shop will offer three bins for recycling, glass and compost.

The Mother Earth Coffee brand is owned

by Paris Brothers Specialty Foods, Inc.

Member Inspiration // Tim Donnelly,

» MULTIVAC

FUNDING

president and CEO of SoftVu Innovator of the Year // Michelle Faits,

» National Association of Construction Contractors Cooperative

president of Pro-Arc Diagnostics in St. Louis

» Oak Point Duplexes

» Sandlot Goods

Incurator Launches Kickstarter Campaign for Zipper Bag Hanger Kansas City-based product development firm Incurator aims to solve refrigerator clutter with its Zipper Bag Hanger that hangs vertically from a mounted bracket with six slots. The company is seeking crowdsourced funds through a Kickstarter campaign to refine the device and put it into production.

» Startland News

ON THE MOVE

Pipeline Announces Entrepreneur Award Winners, Class of 2017 Pipeline, an entrepreneurial fellowship program, celebrated its 10-year anniversary at its annual gala, The Innovators, on Jan. 26. As part of the celebration, the organization announced its 2016 award winners and unveiled its 2017 class of Pipeline Fellows.

» CP Lofts » Corrigan Station » Courtyard & Residence Inn Kansas City Downtown/Convention Center » EPEC & The Grooming Project » Fishtech Labs » HMBC Logistics 1 at Hunt Midwest Business Center » Hotel Phillips Kansas City » Curio Collection by Hilton

Awards were presented in four categories.

» k12itc

Entrepreneurial Leadership // Michael Beckloff, chief development officer at Silvergate Pharmaceuticals in Kansas City

» Kansas City University Administration Building

Member Growth // Toby Rush, CEO and

founder of EyeVerify and Jeff Hargroves, president of ProPharma Group (tie)

EDC Announces 2017 Cornerstone Award Finalists The Economic Development Corporation of Kansas City has announced the finalists for the 2017 Cornerstone Awards.

The program recognizes companies, organizations, development projects and individuals who have contributed significantly to the growth of Kansas City, Mo.’s economy.

The EDC Marketing and Cornerstone Awards Committee will select 10 award winners from among the finalists.

The 10 winners will be announced in April.

Winners will be recognized at the EDC Cornerstone Awards Reception on May 9 at Union Station.

This year’s finalists include: » 63rd Street Corridor » Academy for Integrated Arts » Argyle on 12th » Boulevard Brewing Tours & Recreation Center

12

THINKING BIGGER BUSINESS // March 2017

» Kansas City Sausage Co. » MMC Contractors

» PayIt » PinSight Media » Power & Light Apartments » Red Bridge Shopping Center

» Tom’s Town Distilling Co. » TREKK Design Group » Virgin Mobile NEW BUSINESS New HR Services Company KR-HR, a human resources company targeting small businesses, has opened in Overland Park.

Karen Hughey founded the firm to help small business owners with a variety of human resource issues, including compliance issues, employee engagement and workplace satisfaction.

Smallcakes Makes Big Gains in Franchise Growth Sales at the Kansas City-based Smallcakes Cupcakery franchisor topped $110 million in 2016 and nearly doubled its $60 million in sales during 2015. Launched in 2008 by former Atlanta chef Jeff Martin and his wife Brandy, Smallcakes has experienced success as franchises with 200 locations across the U.S. and overseas. In 2016, Smallcakes opened new stores in California, Minnesota and New York. Internationally, it has stores in the United Arab Emirates and Saudi Arabia.

MILESTONES Financial Firm Celebrates 10 Years Friedline Financial, a financial planning firm, is celebrating its 10th anniversary. It was founded in 2007 by Lyall Friedline.

Willoughby Design Announces Executive Promotions and Ownership Change Willoughby Design Inc., a Kansas City-based global brand strategy and design firm founded

by Ann Willoughby in 1978, announced three executive promotions resulting from an ownership change. Current company partners Megan Stephens, Zack Shubkagel and Nicole Satterwhite purchased the firm from Willoughby.

Stephens will assume the managing principal role, and all three partners will share equal ownership stakes in the company.

Willoughby Design has a long history of designing brand identity systems, communications and retail experiences for national brands and entrepreneurial startups. Established in 1978, it is the oldest, continuously operating design firm founded by a woman in the United States.

Willoughby will continue serving as a consultant and ambassador for the business moving forward in her role as founder and chief creative officer.

The fifth ScaleUP! Kansas City cohort includes: » J Brown, Structural Modeling & Analysis » Shanita Bryant, Magnolia’s » Jessica Corbett, Hitched Planning + Floral

» Katie Petty, The Paw Wash » Steve Pope, R2FACT Product Development » Dawn Potts, H20 Window Cleaning, LLC

» Chris Goode, Ruby Jean’s Juicery

» Jorge Salazar, Salazar General C ontractor, Inc.

» Reggie Gray, H3Enterprises

» Heather Spalding, Cambrian

» Gretchen Henry, ConsultUS Technology » Marco Listrom, Valdes & Moreno, Inc.

» Travis Thonen, Midwest Comfort Homes LLC

» Delbert Olesen, Gold and More Jewelers

» Marisa Wiruhayarn, M-Power Enterprises, LLC

OTHER BUSINESS Fifth Cohort of ScaleUp! Companies Announced The ScaleUP! Kansas City program has announced the 15 growth-oriented small businesses that will be part of its fifth cohort.

For four months, participants will be immersed in intensive training that connects them with subject matter experts and mentors who help them with the strategic perspective necessary to position their businesses for growth.

SMART COMPANIES THINKING BIGGER®

13

AT A G L A N C E

THINKING BIGGER EVENTS

Save the Date!

The BIG Breakfast A quarterly entrepreneurial panel sharing insights and advice you can put to work in your business. Plus, a delicious breakfast to start your day right! More details and tickets available at www. ithinkbigger.com/events/ big-breakfast-series

BY THE NUMBERS

The On-Demand Economy Americans are getting used to having their services delivered quickly, at the time they want them. From Uber, Lyft, HomeAdvisor—and now even Grab a Gardener—companies are changing existing business models or creating new ones so they can cash in on consumers who want their services on demand.

The numbers below are for the consumer/household market; they do not include the market for on-demand services targeted at businesses.

» 1st Quarter Breakfast Thursday, March 23, 2017

» 2nd Quarter Breakfast Thursday, June 22, 2017

Kauffman Foundation Conference Center | 7:30-9 a.m.

Brew :30 Drink local, network and meet some of KC’s up and coming businesses at this quarterly happy hour. More details and tickets available at www.ithinkbigger.com/ events/brew30

» 2nd Quarter Brew :30 Thursday, April 20, 2017

Amigoni Winery | 5:30 p.m.

» 3rd Quarter Brew :30

$34

$57

Revenue Generated by U.S.

Revenue Forecast for U.S.

On-Demand Economy in 2016

On-Demand Economy in 2017

BILLION

$758 BILLION

Thursday, July 20, 2017

Stockyards Brewing Co. | 5:30 p.m.

THINKING BIGGER BUSINESS // March 2017

93% Percentage of Untapped Potential On-Demand Market

Potential of On-Demand consumer market in 2017

14

BILLION

SOURCE // Research firm BIA/Kelsey

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CITY FOCUS: LEXINGTON, MISSOURI he leaders of Lexington, Mo., a historic community 45 minutes east of Kansas City, are determined to compete in the 21st century economy.

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All will determine whether or not small rural communities like Lexington survive and compete.

At the center of planning the community’s economic development and growth is Mark Rounds, Lexington’s city administrator. Rounds’ focus, in any position he has held, has been on entrepreneurs and entrepreneurship. As a city manager in Oklahoma, for example, Rounds organized many projects on behalf of the city that tapped entrepreneurs. One was a partnership between the city, a local bank and an entrepreneur who was a contractor for a multimillion dollar project.

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Rounds is working to change all that in Lexington by taking a proactive approach to economic development and job growth. Last year, he led the mayor and members of the Lexington City Council to neighboring Kansas City to tour Kansas City Startup Village (KCSV). KCSV is an entrepreneurial micro-community that helps to grow and support entrepreneurship and Kansas City’s startup ecosystem.

The mission of those involved in KCSV is to foster the education of entrepreneurs and increase the number of opportunities for startups to succeed.

They do this through programming, recruitment and knowledge sharing.

Part of the vision of KCSV is to serve as an example and resource for other startup communities. And that meshes just fine with Rounds’ goals of harnessing the power of entrepreneurship to grow Lexington’s economic and job base.

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CITY FOCUS: GRANDVIEW, MISSOURI randview, Missouri is a city on the move. No first-tier suburb is experiencing a renaissance quite like it. The new $76 million Truman’s Marketplace renovation, for example, was a recent winner of the 2017 Capstone Awards. And, the nearly $300 million Gateway Village Sports Complex, located on 150 Highway between Byars Road and Kelley Road, broke ground less than a year ago.

G

The Gateway economic development project, led by Kansas City Chiefs Hall of Famer Deron Cherry, along with Kurt Pycior and Shane Hackett, is a CITY HALL first-of-its-kind development and is LEONARD JONES, MAYOR expected to have a major impact not CORY SMITH, CITY MANAGER 1200 MAIN STREET only on the City of Grandview but also on GRANDVIEW, MO 64030 the State of Missouri. When complete, (816) 316-4800 the complex will consist of 14 soccer WWW.GRANDVIEW.ORG fields; more than 7 million square feet of retail, hotel, restaurants, residential (300 apartments and 40 single-family homes) and entertainment; and an indoor sports fieldhouse.

With projects like these, Grandview is positioned to leave its mark on the Kansas City metropolitan area.

Like most cities, the City of Grandview has a thriving entrepreneurial class, and has some of the most significant businesses in the metro. Companies such as Peterson Manufacturing, WestRock, Sika Corporation, US Toy, The Cartwright Companies, Butler Manufacturing, Ruskin Manufacturing, North American Savings, and Burger & Brown Engineering, as well as the new National Oceanographic and Atmospheric Administration regional facility call Grandview home.

Under the leadership of Mayor Leonard Jones, the city’s first AfricanAmerican mayor, and a progressive group of aldermen, the City of Grandview is poised for even greater growth. At the helm, is City Administrator Cory Smith, who has quietly guided the renaissance on behalf of the Mayor and the Board of Aldermen. Smith, who became city administrator in 1991, credits stable leadership and fiscal restraint as keys to Grandview’s renaissance.

As uncertainty continues to permeate much of the world today, Grandview, Missouri, once written off as a declining first-tier suburb, is leading the way and creating what many are calling the “Grandview Model”—a model based on strong, pragmatic leadership and steady progress.

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C O M PA N Y T O WAT C H

S A F E G AT H E R I N G S

Safe Gatherings Assists Those Working With Vulnerable Populations Online training and screening help protect children, youth and vulnerable adults.

ENTREPRENEURS

Sharon Holt

COMPANY INFORMATION

9200 Glenwood St. Overland Park, KS 66212 888-241-8258 www.safegatherings.com TYPE OF BUSINESS

Background and reference checks for people who volunteer or are employed by organizations that work with vulnerable populations

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e’re all familiar with the headlines—respected church and youth leaders being investigated for abuse.

And the churches, schools and nonprofits that work with children, youth and vulnerable adults are well aware of their responsibility to protect these at-risk populations from that abuse.

The due diligence can be overwhelming for the organizations, which often don’t have the resources for the required records documentation, training and procedures.

Safe Gatherings, a company founded by Sharon Holt, has developed an online system that assists these organizations. The system streamlines abuse prevention training, background and reference checks, and approval tracking.

Holt said that Safe Gatherings’ abuse prevention initiative began as a project in 2012 to help churches track training and paperwork of clergy, staff and volunteers.

“The Kansas East United Methodist Church Conference wanted to take the paper- and time-intensive process of background checks and abuse prevention training and move it online. We built a platform from scratch in four months and rolled it out to the group of 300 churches.”

The churches immediately put the system to use, and Holt worked with the Conference to make improvements over the next year. The system is now available to multiple denominations and organizations.

“We now work with 3,600 churches across the U.S.,” said Holt.

HOW IT WORKS

Prospective employees and volunteers complete a quick application via Safe Gatherings’ website for a $35 fee. Safe Gatherings facilitates electronic reference checks and background checks. Applicants also complete online abuse prevention training as part of the program.

The entire approval process is tracked by the online system. The system reduces paperwork, saves time and provides a documentation trail designed to protect the organization, applicant and at-risk populations.

“The online training program presents best practices and what signs of abuse to look for,” Holt said.

Some of the training module topics cover the types of abuse and inappropriate behaviors, respecting boundaries, responding to and reporting abuse and bullying.

Employees and volunteers renew applications every two years.

Pete Dulin is a freelance writer based in Kansas City, Mo. He is also the author of Kansas City Beer: A History of Brewing in the Heartland, KC Ale Trail, Last Bite: 100 Recipes from Kansas City’s Best Chefs and Cooks, and Expedition of Thirst: Exploring Breweries, Wineries and Distilleries in Central Kansas and Missouri. www.petedulin.com SMART COMPANIES THINKING BIGGER®

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KC MADE IT

CULINARY CENTER OF KANSAS CITY

Culinary Center of Kansas City: Now Serving Up Boa LAURA LAIBEN’S CREATIVITY HAS EXPANDED FROM RECIPES TO KITCHEN PRODUCTS. ashion in the kitchen? You bet, as long as the cook’s wearing the Kitchen Boa, the creation of Laura Laiben, founder and owner of the Culinary Center of Kansas City. Located in Downtown Overland Park, the Culinary Center offers cooking classes, hosts team building events and private functions, and houses a retail shop that also offers grab-and-go meals.

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THINKING BIGGER BUSINESS // March 2017

Now Laiben’s creativity in the kitchen has literally spilled over into designing and making wearables for cooks and other kitchen items. Her first product is the Kitchen Boa. The Kitchen Boa, which resembles a scarf, starts with a fashionable piece of material that hangs around the cook’s neck and has dishtowels at both ends.

It currently retails for $18.95.

( by Ruth Baum Bigus )

“The Kitchen Boa is a stylish reinvention of the tea towel,” Laiben said. “It was something that was designed because I grew up with my mom throwing her kitchen towel over her shoulder. I had seen something similar to it, but I took the concept and redesigned it.”

Laiben came up with the idea about five years ago and started fabricating the Kitchen Boa locally. She tapped into local

sewing talent—her boyfriend’s 84-yearold mother—to make them.

“She’s a beautiful seamstress,” Laiben said.

The Culinary Center carries dozens of designs and makes them in styles for women, men and children.

The Kitchen Boa took a big step forward during the last 12 months when Demdaco, a national giftware and home décor company based in Leawood, Kan., made a deal with Laiben to license them.

Laiben said that Demdaco had been doing team building with the Culinary Center, and the relationship took off from there. “Their director of product development asked me where we sourced the Kitchen Boa, and one thing led to another,” Laiben said.

Demdaco has the licensing rights to 16 designs of the Kitchen Boa, and Laiben gets a royalty on sales. The deal takes the product into hundreds of stores across the country and Canada. Laiben retains the exclusive right to sell the Kitchen Boa in the metro, except for Kansas City Hallmark stores.

The Kitchen Boas can be purchased at The Culinary Center or through kcculinary.com or at Kansas City area Hallmark stores.

The Kitchen Boa licensing deal with Demdaco includes a second product—hooks with magnets that can be used in the kitchen for hanging the Kitchen Boa—or, really, any number of items such as leashes, keys, jackets and towels. The hooks have the same stylish and fun feel as the Kitchen Boa. Presales started in September, and the first shipment went out to stores in mid-January.

Laiben has several other concepts in the pipeline as well.

Laiben recently attended AmericasMart annual gift show in Atlanta as a guest artist for Demdaco.

“This has been an amazing experience for me. Taking an idea to international sales is amazing. It is a lesson in being open to things that come along and identifying opportunities and acting on them,” she said. “People don’t always have the confidence to do that. The experience has spurred me to think of other things I can invent.”

And Laiben continues to build the Culinary Center’s core business—teaching others about the joys of cooking. The Center offers more than 600 classes each year and is adding new ones all the time in addition to 200-250 private events and culinary teambuildings. The Center is bringing back foodie field trips, Pop Up lunches and expanding its retail shop, especially its Dinners on Demand chef-prepared frozen dishes. The moves are all timed to coincide with redevelopment efforts going on in the Downtown Overland Park area that will bring hundreds of residential units into mixed-use projects.

BIG STARTS

Your Garden’s Brand New Hero STARTUP // Compost Hero ENTREPRENEUR // Jeff Petersen HOW IT WORKS // Compost Hero is a special leaf-composting wrap.

Put your leaves, grass clippings and garden waste on its tarp. Then add water and fold it all up like a burrito.

Once you’ve secured the wrap with Compost Hero’s straps, you can easily roll it over to turn your compost.

THE INSPIRATION // Not to oversell it, but properly mulched leaves are basically magic pixie dust for your garden. “It is the best thing you can do for your soil,” said Petersen, the Spring Hill designer and web developer who created Compost Hero.

Unfortunately, the existing options for mulching are kind of a pain. You can put your leaves in a big, unwieldy pile, but the stuff at the bottom won’t get the air and water necessary to fully decompose. Some companies sell a giant rotating drum for mulched leaves—if you have room for a giant 55-gallon drum.

WHERE YOU CAN BUY // You can purchase Compost Hero (which has a patent pending) at its official website, www.composthero.com.

Ruth Baum Bigus is a freelance writer in the Kansas City area.

SMART COMPANIES THINKING BIGGER®

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KC FUTURES

I N D U S T R I A L S PA C E

Industrial Space Gives Kansas City Competitive Advantage KANSAS CITY OFFERED A RECORD AMOUNT OF SPEC INDUSTRIAL SPACE LAST YEAR—AND THERE’S MORE TO COME IN 2017. he availability of Kansas City’s industrial space kept pace with strong demand in 2016, and interest in additional space shows no signs of abating this year.

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20 THINKING BIGGER BUSINESS // March 2017

( by Pete Dulin )

Greater Kansas City delivered a record 9 million square feet of speculative industrial space in 2016 and is anticipated to deliver an additional 7 million square feet in 2017.

“In 2016, that 9 million square feet of industrial space was all over the region and included mostly big box distribution space,” said Gutierrez, who oversees a territory across 18 counties in Kansas and Missouri.

Most of the industrial space was built on speculation.

Excel Industries, a manufacturer of consumer and commercial mowing

Ongoing plans for adding more industrial space suggest a robust economic outlook in 2017 for Greater Kansas City.

“Supply has met demand,” said Gutierrez.

“More industrial space is under construction this year. It gets leased even before the buildings are finished.”

Existing industrial space with more in the pipeline bodes well for the local economy.

“It gives Kansas City an advantage over other cities such as Indianapolis, Columbus, Memphis and Dallas,” said Gutierrez.

“Kansas City also has the transportation infrastructure and workforce to support these distribution companies. We have a great Midwest work ethic. Nearly 85 percent of the U.S. population can be reached by truck from Kansas City within two days. The city has four modes of transportation for distribution: interstate, rail, air and barge.”

APPEALING MIX

Rendering of the new Spectrum Brands building, which was recently announced.

Below //An aerial view of the Logistics Park in Edgerton, Kan., from a drone flight in March 2016. There has been more development since this image.

equipment, announced in 2015 that it would open a facility at Logistics Park Kansas City, a 1,700-acre master-planned distribution and warehouse development located in the south Johnson County city of Edgarton. The company’s worksite includes warehousing and distribution space, and there are plans to manufacture an existing product line.

Other manufacturers took additional “build to suit” space that was on the market and customized it to meet specific manufacturing needs. Spectrum Brands Hardware and Home Improvement, for

example, will consolidate its distribution facilities in North Carolina and California, bringing operations to a 927,000-square-foot distribution building at Logistics Park.

“Lee’s Summit is on the verge of putting up industrial space on spec built by developers,” said Gutierrez.

“Developers are taking a risk to build.”

ADVANTAGE KANSAS CITY

The calculated risk appears to be weighted in the developers’ favor with healthy demand in the marketplace.

Kansas City’s reputation as a transportation hub and capable workforce isn’t its only asset.

“Kansas City has a competitive business climate and diverse economy,” said Gutierrez. “We’re not subject to the ups and downs of the coasts. Our economy includes auto manufacturing, warehouse distribution and other manufacturing.”

As companies across the U.S. make critical decisions on where to allot resources and establish distribution, Kansas City’s existing and upcoming industrial space inventory offers muchneeded capacity. The combination of space, transportation and capable workforce improves the prospects for firms to select Kansas City for its distribution and warehouse operations.

“More than 7 million square feet of industrial space is planned for 2017 with room to grow in 2018 and 2019,” said Gutierrez. “There are commitments by developers to put more buildings because tenants need space.”

Pete Dulin is a freelance writer based in Kansas City, Mo. He is also the author of Kansas City Beer: A History of Brewing in the Heartland, KC Ale Trail, Last Bite: 100 Recipes from Kansas City’s Best Chefs and Cooks, and Expedition of Thirst: Exploring Breweries, Wineries and Distilleries in Central Kansas and Missouri. www.petedulin.com SMART COMPANIES THINKING BIGGER®

21

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THINKING BIGGER BUSINESS // March 2017

BIG INFLUENCE

WEAVE GOTCHA COVERED!

The Sewing Labs Is Rebuilding Lives a Stitch at a Time Kansas City’s most vulnerable and marginalized populations—those affected by addicby teaching traditional sewing skills. tion, incarceration and poverty.

That workforce development network, called KC Works Together, includes improving the lives of The Sewing eave Gotcha Covered!, a company The Sewing Labs, the Culinary W that specializes in fabricating and Labs’ participants: Cornerstones Training Program, installing custom window treatments » Provide job skills trainThe Grooming Project and and fabric furnishings, has launched The ing leading to economic Cultivate Hope.

Sewing Labs, a community learning center self-sufficiency “Through this collabospecializing in job skills training of legacy rative effort, we will help » Foster formation of safe, sewing skills. individuals living in poverty supportive, nurturing comFor more than 10 years, Kelly Wilson and Ke enter the workforce and move n l o ly Wils munities of women Lonnie Vanderslice, the owners of Weave toward economic sustainability,” Gotcha Covered!, have had a goal to help » Perpetuate the American legacy Wilson said. “Each of these organimarginalized women find a better way of of sewing, fabric and fiber arts zations addresses employment barriers that life by teaching them sewing skills. After individuals who are trapped in patterns of Participants will receive certification in desspending the last year developing the congenerational poverty, addiction and incarignated fabric-related skill sets, and curriculum cept, the duo launched The Sewing Labs, ceration face. We’ll provide industry-specific will focus on teaching skills sets that can lead a non-profit that began offering its first to employment. vocational training programs and collabclasses on Jan. 12.

The Sewing Labs is partnering with other orate to share knowledge, networks and Wilson said that The Sewing Labs has vocational training programs in the Kansas resources so we can deliver client services three goals that serve as the foundation for City area that work to develop the skills of more efficiently.”

Kelly Wilson and Lonnie Vanderslice are helping build job skills

SMART COMPANIES THINKING BIGGER®

23

1

THE SPIRITED RETURN OF

DISTILLING IN KANSAS CITY

24 THINKING BIGGER BUSINESS // March 2017

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KANSAS CITY’S RICH DISTILLING HISTORY INFLUENCES ITS MODERN CRAFT DISTILLERS. ( by Pete Dulin )

Kansas City’s rich history of distilling began more than a century ago, but it evaporated after Prohibition was enacted in 1922. In fact, buying a bottle of gin, whiskey or vodka made in Kansas City was impossible until a few years ago. With the arrival of J. Rieger & Company, Tom’s Town Distilling Company, Restless Spirits Distilling Company, and several other distilleries, locally-made spirits are flowing in and out 4

of Kansas City once again.

STATE OF DISTILLING

A brief review of regional history reveals why distillers originally located in or near Kansas City, Mo. History also factors into the stories of new local distilleries in this fast-growing industry.

Throughout the mid- to late-1800s, the alcohol-intolerant Temperance movement in Kansas created a hostile business climate for distillers, brewers and winemakers. A constitutional amendment was ratified on January 1, 1881 that prohibited “the manufacture and sale of intoxicating liquors” in the state. Kansas also passed “Bone Dry” laws in February 1917–five years before national Prohibition – “prohibiting the importation or manufacture or possession of intoxicating liquors for any purpose except in use in churches.”

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SMART COMPANIES THINKING BIGGER®

25

That intolerance led to opportunity in Missouri. For example, Jacob Rieger opened a bottling operation, mail order warehouse and distillery in 1887 in Kansas City’s West Bottoms. The business sold more than 100 alcohol products. Other alcohol manufacturers also operated on the Missouri side of the Kansas-Missouri state line.

Thirsty Kansans crossed the state line to join Missourians in West Bottoms saloons near these distilleries and breweries.

After Prohibition, Missouri’s stance toward alcohol remained more permissive than Kansas well into the 20th century. Yet, distilleries wouldn’t appear again in Kansas City for another 95 years.

CRAFT SPIRITS ON THE RISE

According to a 2016 American Craft Spirits Association (ACSA) report, 1,315 craft distilleries operated in the U.S. as of August last year compared to 560 craft distilleries active in 2010.

Generally, craft is associated with distinctive spirits produced locally in small batches, unlike mass-market brands produced in massive volumes. The ACSA reports that 91.7 percent of U.S. craft producers are classified as small producers of spirits up to 10,000 proof gallons.

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1. Restless Spirits shot glass samples. 2. Tom’s Town barrel room with Royal Gold Bourbon. 3. The bottling line at J. Rieger & Co. packages 600 bottles an hour. 4. J. Rieger & Co. operates two distillation systems: a 750-gallon copper pot still and a 120-gallon gin still. The copper pot still runs a whiskey distillation five days a week. 5. Tom’s Town exterior view of the tasting room. 6. Tom’s Town products: StrongArm Vodka, Royal Gold Bourbon and Corruption Gin. 7. Restless Spirits Distilling Darby O’Still. 8. Restless Spirits Distilling tasting room with Irish coffee and cocktails. 9. Tom’s Town tasting room. 10. Restless Spirits exterior view. (Photos courtesy of Tom’s Town Distilling Company, Samantha Levi for J. Rieger & Co. and Studio 8183 for Restless Spirits Distilling Company.)

26 THINKING BIGGER BUSINESS // March 2017

Sales volume of craft spirits is still a drop in the barrel, comprising less than 3 percent of spirit sales in the U.S. Even so, consumer demand for craft spirits has driven growth in this segment of the distilling industry.

The local chapter of the U.S. Bartender’s Guild, top-notch bartending professionals, and annual events like the Paris of the Plains Cocktail Festival have promoted Kansas City’s cocktail culture, enhanced customer knowledge about spirits and primed the market for premium spirits.

Mindful of this growth and market, local distilleries have emerged with varying business models. Their brand identity is also tied to Kansas City history, but not limited by that association.

REVIVING A LEGACY

Ryan Maybee and Andy Rieger, great-great-great grandson of Jacob Rieger, co-founded J. Rieger & Company in 2014.

Relaunching Kansas City’s first distillery since Prohibition was no simple undertaking as they navigated city regulations.

“There was no environment for starting a distillery when we got started,” said Maybee. “It took eight months of working closely with the city to help them determine how to permit and regulate the city’s first distillery in almost 100 years.

I’d imagine the city now makes it relatively easy on hopeful new distillery operators.”

The motivation to open the distillery was personal and pragmatic.

“A lot of people see a business opportunity to capitalize on a major national trend, but a lot of people are also just passionate about spirits. Their distillery operates more like a passion project,” said Rieger. “For us, it was a combination of keeping the Rieger family legacy alive and reviving a distillery that was such a major player in Kansas City’s history.”

That history made Kansas City a natural platform for J. Rieger & Co.; however, the co-founders sought to build distribution beyond the local market. Rather than open a tasting room or event space to cultivate local customers, they opted for another strategy.

Maybee said, “We focus 100 percent of all human and monetary capital toward production and distribution-based sales.”

“We partner with distributors in each market that approaches us to carry our product, not the traditional other way around,” explained Rieger. “Each distributor comes to us with a different strategy for how they feel is the best way to sell our products in their market.”

The strategy is paying off. Within two years, J. Rieger & Co. has grown larger than 92 percent of distilleries in the craft space in terms of case volume. By the end of first quarter 2017, the distillery’s products will be available in 17 states. But even as the company expands distribution, Maybee and Rieger respect their roots.

“We love Kansas City and are proud to have revived our distillery in the city. We are also extremely proud to showcase our city

Liquid Assets: Distilleries and Breweries Tap Into Local Demand Greater Kansas City has been awash with new businesses over the past decade in two of the world’s oldest industries – distilling and brewing. Entrepreneurs have built viable small businesses based on national consumer trends that prefer craft options and the appeal of their liquid assets.

1989

> Boulevard Brewing Company, Kansas City

1997

> McCoy’s Public House, Kansas City

2005

> Weston Brewing Company (Under current owners.)

2010

> Union Horse Distilling Company, Lenexa

2012

> Green Room Burgers and Beer, Kansas City > SD Strong Distilling Company, Parkville

2013

> > > >

2014

> > > >

2015

> > > >

2016

> Restless Spirits Distilling Company, North Kansas City > Lifted Spirits Distilling, Kansas City > Holladay Distillery, Weston > Calibration Brewing Company, North Kansas City > Brewery Emperial, Kansas City > Rock and Run Brewery and Taproom, Kearney > Grinders High Noon, Leavenworth > Miami Creek Brewing Company, Drexel, Mo.

The Big Rip Brewing Company, North Kansas City Cinder Block Brewery, North Kansas City Kansas City Bier Company, Kansas City Rock and Run Brewery and Pub, Liberty

J. Rieger & Company, Kansas City Border Brewing Company, Kansas City Crane Brewing Company, Raytown Martin City Brewing Company, Kansas City (Company est. 2011, brewery opened 2014) > Torn Label Brewing Company, Kansas City Tom’s Town Distilling, Kansas City Red Crow Brewing Company, Spring Hill, Kan. Double Shift Brewing Company, Kansas City Stockyards Brewing Company, Kansas City

SMART COMPANIES THINKING BIGGER®

27

through our products on a national scale,” said Maybee. “Having Kansas Citians take social media pictures of our products on cocktail menus in other cities while describing their hometown pride makes us happier than any other moment in this business.”

TOASTING COCKTAIL CULTURE

Co-founded in 2015 by David Epstein and Steve Revare, Tom’s Town Distilling is named after former Kansas City political boss Tom Pendergast. During 1930s Prohibition, Pendergast and his corrupt political machine overlooked illegal distribution, sale and consumption of alcohol.

Relatives of Epstein and Revare have direct ties to Pendergast’s legacy. The co-founders drew on family history and Pendergast’s legacy to infuse authenticity into the distillery’s brand. That

brand—which references a specific time, person and setting in Kansas City—can’t be genuinely replicated elsewhere.

That history “wasn’t just the ‘point of view’ of our brand,” said Epstein. “The power of that story grounds our spirits and ties us to the people of Kansas City.”

Consumer interest in craft distilling mirrors similar trends for artisan food, local craft brewing and specialty coffee roasters. Customers are eager to know the origin story behind local goods and producers.

9 “Locally-made spirits represent an extension of the local food movement,” said Revare. “But local means nothing unless it offers the essential element to any brand — high-quality products. Consumers reward distilleries that combine authenticity and quality.”

And the award goes to…

Distilleries in Kansas City and around the region have earned numerous industry awards for their spirits.

J. Rieger & Co.

Tom’s Town Distilling Company

Kansas City Whiskey: “Excellent” rating (92 points), Ultimate

Eli’s StrongArm Vodka: Awarded most gold medals of any

Spirits Challenge; ranked Top 4 for “Best New Product or

American vodka in 2016, including gold at the American

Ingredient, International” at the 2015 Tales of the Cocktail

Craft Spirits Association, San Francisco World Spirits

Spirited Awards.

Competition, and at The Fifty Best; silver medal at the

Midwestern Premium Vodka: Awarded 2015 Washington Cup Gold Medal.

Midwestern Dry Gin: “Excellent” rating, Ultimate Spirits Challenge; ranked Top 10 for “Best New Product or Ingredient,

American Distilling Institute.

McElroy’s Corruption Gin: Silver medal, American Craft Spirits Association; bronze medal, American Distilling Institute.

Restless Spirits Distilling Company

International” at the 2016 Tales of the Cocktail Spirited Awards; one of four spirits products GQ Magazine 2016 Best Stuff of the

Builders Botanical Gin: 2016 gold medal, 7th Annual New

Year (1 of only 4 spirits products), 91 points Wine Enthusiast.

York International Spirits Competition; silver medal, 2016 International Spirits Competition in San Diego.

Caffè Amaro: 95 Points Wine Enthusiast, Imbibe Magazine’s international list of “75 People, Places and Flavors that will

2016 Missouri Distillery of the Year: 7th Annual New York

Shape the Way You Drink in 2017.”

International Spirits Competition.

28 THINKING BIGGER BUSINESS // March 2017

Tom’s Town has a local story that is rich with lore.

“Kansas City has a great history of supporting all things local,” said Epstein. “It’s the perfect launchpad for a distillery that draws on Kansas City’s boozy past.”

Besides its production distillery, Tom’s Town showcases a bar, restaurant and event space. The venue’s look and feel is inspired

by Art Deco, the Pendergast era, and glamour evoked in F. Scott Fitzgerald’s 1925 novel “The Great Gatsby.”

“This allows us to provide an experience to match the labels and feel of the brand, a Gatsby-esque world where glamour, rebellion and excellent spirits go hand-in-hand,” said Revare. “We welcome customers to a tasting room where you might expect to see Jay Gatsby, Duke Ellington and Tom Pendergast rubbing elbows at the bar.”

“Our goal is to carry on the Kansas City tradition of creating irreverent spirits and cocktails,” said Epstein.

SD Strong Distilling

Pillar 136 Gin took gold at the 2015 and 2016 Washington Cup competition and earned bronze at the prestigious 2015 San Francisco World Spirits Competition. SD Strong Vodka earned silver at the 2016 Washington Cup, a one-of-a-kind competition exclusively for American-made spirits and liqueurs. The Washington Cup Spirits Competition is the only competition of its kind to exclusively assess and judge American-made spirits and liqueurs.

Union Horse Distilling Company

Its Reserve Straight Bourbon Whiskey earned a 92 rating by Wine Enthusiast, noting the spirits as “excellent” and “highly recommended.” The Tasting Panel magazine gave Reunion Straight Rye Whiskey a 92 rating.

MGP Ingredients

Till American Wheat Vodka, first released in early 2016, quickly accrued acclaim. The spirit earned a silver medal each at the Sommelier Challenge International Wine and Spirits Competition in San Diego, San Diego Spirits Festival, the 2016 New York World Wine and Spirits Competition, and San Francisco World Spirits Competition.

LOCAL HERITAGE

Last year, Michael Shannon, president, and Benay Shannon, vice-president and head distiller, opened Restless Spirits Distilling Company in North Kansas City. The production distillery offers samples of its Irish-American spirits to the public at its tasting room.

“We offer a destination experience for tours, tastings and experiencing Irish-style distilling techniques in action,” said Michael Shannon.

Restless Spirits opened in Northtown for several reasons.

“The city welcomed us with open arms,” said Michael. “They truly engaged our plan and were supportive at every step in the process. Entrepreneurial business is a key component of the North 10 Kansas City strategic plan and it shows.”

The location near Burlington St. also makes it “visible from a key commuter route connecting north suburbs to downtown business districts,” said Benay Shannon.

Restless Spirits’ brand is steeped in Kansas City’s IrishAmerican history. That history is meant to appeal to consumers nationwide, but is purposely tied to a sense of place and heritage.

“Through our products, we can show consumers a side of immigration that is more positive than what we have seen in recent events. Our Irish heritage was instrumental to the development and growth of our city,” said Michael. “This makes a relevant and legitimate connection for the consumer to Kansas City history. It’s our reason to exist.”

Stone Breaker, a blend of Irish and American whiskey, pays tribute to that cultural mix. The spirit’s name and label references Irish stoneworkers that literally broke ground through Kansas City’s limestone bluffs to construct avenues and buildings.

Despite its local pride, Restless Spirits sidestepped being too hyperlocal.

“We had to be sensitive to a story that can be too binding to an area or region and can box your products in, making them only relevant to your region,” said Michael. “We wanted that story to resonate beyond KC, as our goal is national distribution.”

These craft distillers and others keep customers in Kansas City and other markets in good spirits (see sidebar). Beyond location, a distinctive brand and memorable story, quality ultimately matters to effectively compete.

“Product branding must be superior and unique. Product quality [must be] equally superior or better,” said Michael.

“The brand gets the first sale. The product gets all the rest.”

Pete Dulin is a freelance writer based in Kansas City, Mo. He is also the author of Kansas City Beer: A History of Brewing in the Heartland, KC Ale Trail, Last Bite: 100 Recipes from Kansas City’s Best Chefs and Cooks, and Expedition of Thirst: Exploring Breweries, Wineries and Distilleries in Central Kansas and Missouri. www.petedulin.com SMART COMPANIES THINKING BIGGER®

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KC ENTREPRENEUR

Shamerrific Shine’s patented chamois has put a sparkle in the company’s growth.

Success That Shines ENTREPRENEUR

Christina Scott Kevin Neighley C O M PA N Y I N F O R M AT I O N

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Shamerrific Shine 7801 Shawnee Mission Parkway Overland Park, KS 66202 TYPE OF BUSINESS

Auto detailing and car cleaning YEAR FOUNDED

2007 E M P L OY E E S

6-12, depending on season K E YS T O S U C C E S S

Focus on being great at a few things, not just good at everything.

The more you perfect your craft and talents, the more of a valuable solution and partner you become.

hen the recession hit, many auto detailing businesses didn’t survive. But Shamerrific Shine managed to thrive.

A CHAMOIS THAT’S TERRIFIC

Owners Christina Scott and Kevin Neighley spent years working to perfect the services at their Overland Park detailing and hand car washing business— then called K&C Solutions. The company performs many specialized services such as full interior and exterior detailing, cigarette and mold removal, bumper blends, paint touch up, multi-stage buffing and sap removal.

But they actually grew their business by exploring a new market. The married couple came up with a microfiber chamois, dubbed the Shamerrific, that allows them to make more money by using less water. The patented product also saves time and eliminates the need for cleaning product, making it eco-friendly to boot.

Scott and Neighley were aware of the Clean Water Act and the dangers of putting chemicals

and soaps down drains. They wanted to differentiate themselves in the car washing and detailing market, abide by the rules and still have their customers’ vehicles look top notch.

That’s when the Shamerrific was born. Neighley and Scott spent countless hours brainstorming ways to speed up their process without sacrificing quality. Although Neighley is one of the best and fastest auto detailers in the business, even he could leave water streaks with a regular chamois. A regular cloth didn’t work because it wore out too fast for commercial use.

“There has to be a better way,” Scott said.

A lightbulb went off as she looked down at the microfiber towel she used to wipe sweat during her workouts.

“What if we attached a microfiber to a chamois?” she asked Neighley.

It worked perfectly. The microfiber glides across the vehicle without leaving a streak.

The best part, Neighley said, is that microfiber works like soap, eliminating the need for more chemicals on the exterior. The two tried it out and immediately knew they had a hot product on their hands.

by Dawn Bormann // photography by Dan Videtich 30 THINKING BIGGER BUSINESS // March 2017

Christina Scott (left) and Kevin Neighley (right) are the inventors of the Shameriffic, a microfiber chamois.

SMART COMPANIES THINKING BIGGER®

31

They started sewing the Shamerrific out of their basement, made their first prototype and began the testing process.

Through countless hours of trial and error, they developed the fastest way to wash a car with just a gallon and a half of water and the Shamerrific.

They’ve used the Shamerrific to wash almost two million cars in Kansas City already. The Shamerrific allows the staff to clean each vehicle in 60 seconds.

To get an idea of how that works for auto dealerships, Shamerrific Shine has perfected a system that allows two team members to wash more than 300 cars a day at dealerships. The speed and quality have allowed them to outpace competitors.

“Time is money, but quality and results have to be there,” Scott said. “If you spend five minutes or a minute and five seconds on the car, you still get the same amount per vehicle.”

The Shamerrific quickly became an essential tool for efficient and reliable work at dealerships and elsewhere.

The product also captured the attention of a veteran Kansas City entrepreneur. “They found a way to make a better mousetrap for that business,” said Joe Roetheli, who co-founded the dog treat company Greenies. After hearing an enthusiastic presentation by Scott, Roetheli approached her and offered to serve as a mentor for Shamerrific Shine. He had an immediate gut feeling that Scott and Neighley had the passion and determination it takes to succeed.

Shamerrific Shine has been growing by leaps and bounds. The company employs six to 12 people depending on the season, and the detailing side of the business has grown by more than 63 percent since 2013. It boasts an enviable list of

with most of their dealerships for more than 10 years. The company also has a growing list of commercial and residential customers that come to their Overland Park business for detailing.

The chamois was so different that they went to the Linda Hall Library on the UMKC campus to

“Time is money, but quality and results have to be there.”

Christina Scott // co-owner, Shamerrific Shine

PATENTS AND GROWTH

Neighley and Scott never stop thinking about how to grow their business and improve its operations. They officially changed the name of their company to Shamerrific Shine in 2014.

customers, including several commercial accounts with car dealerships, where Shamerrific Shine employees travel onsite to clean vehicles. The owners have worked

32 THINKING BIGGER BUSINESS // March 2017

research patents. They couldn’t find anything similar and filed their own provisional patent by using the basic tools on their computer. They saved about $10,000

by filing the initial paperwork on their own before turning to a lawyer to complete the patent.

Their lawyers have helped them file four patents since then, including the latest version of Shamerrific, which has pockets for the user’s hands. The pockets make it easier to glide the chamois across a car.

CHAMOIS CHALLENGES

Although the company has used the Shamerrific internally for several years, the path to retailers hasn’t been a smooth one. Scott and Neighley have spent years perfecting the product and preparing for mass manufacturing. The biggest challenge now will be to scale up and bring in earnings before the patent runs out.

He points out that the manufacturing hurdles they’ve faced would have caused many to retreat back to their core business.

“Those things are frustrating and suck the juice out of a lot people, but they kept pounding on,” he said. “They’re not going as fast as they sometimes would like, but they’re doing it smart, I think. They’re not going out risking everything.”

DETAILS MATTER

Roetheli gets calls when the couple confronts a challenge or needs an outside opinion.

“They’ve been very coachable,” he said.

He tells them what he thinks, but then encourages them to check it out for themselves.

“They will go out and do some research on it and decide if it’s for them,” Roetheli said. “I value people who are willing to go out and think and not just be spoonfed and think that’s the only way to get it done.”

Scott and Neighley said Roetheli’s advice has been critical as they’ve worked through some setbacks on the manufacturing side.

Scott said they hope to have the problems solved soon to take full advantage of the 20-year patent.

The two are in negotiations with

a company and plan to roll out the chamois by the end of 2017.

When that happens, Neighley believes the Shameriffic will be a big hit for both commercial and residential users.

Scott said their goal is to get the Shameriffic into an automotive supply retailer.

They know the product will resonate with busy consumers who don’t want to spend all day washing their car in the driveway.

Roetheli admires their grit.

“If you don’t love what you do, about the first time you hit a major hurdle, you throw in the white towel. If you’re really passionate about it, you will fight and get over, under, around or through,” Roetheli said. “They’ve hit a lot of hurdles where people would have quit.”

The two aren’t sitting idle while they work on manufacturers. Scott has participated in several entrepreneur programs, including ScaleUP! Kansas City and E-Scholars at UMKC, to hone her business savvy and gain more business insights.

Both programs offered essential resources and connections with other entrepreneurs.

“You can lean on people,” Scott said.

The classes have helped Scott and Neighley think about their next big push as well. The two expect to franchise their ecofriendly detailing and hand wash concept in other cities, opening wider markets to conquer.

First, Neighley and Scott said, they are perfecting their system in Overland Park by implementing the skills Scott learned through ScaleUP! and E-Scholars.

The classes have prompted them to make several changes, including writing out the business’s standing operating procedures.

Scott and Neighley used to store that information in their head. The programs showed her why that was a dangerous proposition, especially as the business grows and employees take on more roles.

These days Scott has laminated copies of operating procedures for nearly every category of customers–rental cars, dealerships, residential customers–throughout the wash bay.

Neighley jokes that she has a standard operating procedure for how to write a standard operating procedure.

If one of the owners has an unexpected emergency, the business keeps rolling.

“We don’t skip a beat,” Scott said.

They also spend considerable time building relationships with every customer. That means a lot of communication happens between them and commercial customers. On the residential side, the two conduct thorough walk-throughs and get to know their customers when they step inside the door. It’s an essential part of their brand that’s not going away regardless of how big they become down the road.

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

SMART COMPANIES THINKING BIGGER®

33

( by Carol Dobies )

ENTREPRENEURIAL JOURNEY

Living with Authenticity Being authentic is key not only to business success, but also to living a fulfilling life.

D

obies Healthcare Group started in 1992 with the goal of creating healthier brands for our clients. Twenty-five years later, we are proud to serve as a thought leader and trusted strategic consult in the ever-changing healthcare environment.

Over the years, I have identified attributes that have allowed our firm to succeed. These are integral not only to leading a successful business, but also to living a fulfilling life. As a business owner, I have found authenticity—that space where our words and actions intersect— to be indispensable. Following are five key attributes for leading and living with authenticity.

1 Be curious. Curiosity solves problems. It sparks our imagination and feeds our ingenuity.

Changes in the healthcare industry are occurring at a stunning pace. Key to staying abreast of developments and answering the most vexing questions is having deliberate and boundless curiosity. One of our most valuable business tools is the seemingly simply question: “Why?” Ask it again and again. It will help you identify the problems worth solving. Follow it with “So what?” What is the significance of what you learned? Did you identify a new strength or opportunity? Did you discover a differentiator? This is the compelling part of your story.

Step out of your comfort zone. Be bold.

Dare to ask the hard questions. You may unearth a hidden gem.

Be purposeful. Purpose provides you with a specific place to go and a way to get there.

2

34 THINKING BIGGER BUSINESS // March 2017

that is palpable and contagious. It feeds Our firm’s purpose is to make a differyour mission and gives you staying power. ence in how people think about health.

From the beginning, our purpose was to In 1992, my goal was to take healthcare deliver decisive results for our customers. marketing to the next level by delivering As our firm grew, it became evident that we creative work based on sound strategic were making an impact principles. Our work far beyond our original communicated our Curiosity solves problems. intentions. We were customers’ brand working for a greater promises and conveyed It sparks our imagination good—to help people authenticity. Leading and feeds our ingenuity. make better and more with strategy continues informed health decito be our purpose. It sions, leading to more differentiates us and fulfilling and producdrives our work. tive lives. The power of that realization was Discover your purpose. Articulate significant. This became our passion and it, make it your promise and pursue our mission. It motivates and inspires us it relentlessly. every day.

3 Be absolute. Conviction in your purpose Find your passion and evangelize it. Infuse keeps your batteries charged. It assures you it in your mission and make it the essence of are on the right path and your direction is true. your culture.

In a world of large, big-box consulting

houses and agencies, I used to be distracted by the fact that our firm was smaller than some of our competitors. I came to realize size does matter, but not in the way I expected. From the outset, I built a virtual network of exceptionally smart and talented professionals whose advice and counsel I respected. This virtual business model showed promise. I became confident that as a boutique firm we would have as much firepower—if not more—than our larger competitors. This has proven true. Our team of accomplished strategic and marketing professionals, coupled with a network of highly skilled independent associates, means we bring only A-team players to the table. We are agile and quick. We never lose sight of our mission; we live and breathe it every day. All of this translates to better results for our clients.

Lead with confidence. Be absolute in your convictions, and be confident in your direction.

Be passionate. Passion generates emotion and intensity. It creates energy 4

5 Be open to possibilities. #ToutEstPossible –it means everything is possible. At Dobies Healthcare Group, we believe this to be true.

As we embarked on our 25th year this month, we paused to affirm our business plans and strategies, to validate our direction and purpose. We challenged ourselves to think beyond what is plausible to what is possible. This created a stark moment of clarity. Our mindset shifted. We discovered that everything is possible because we are unwavering in our mission and certain in our strategies.

Be authentic in work and life. Lead and live with curiosity, conviction, passion and purpose, and everything is possible.

Ambitious goals are more achievable when others share your purpose and passion. I am thankful for the bright, enthusiastic and dedicated individuals—mentors, staff and clients—whose advice and support are a continuous source of inspiration.

Carol Dobies is the CEO and founder of Dobies Healthcare Group, where she has been bringing healthcare brands to life for more than 25 years.

(816) 595-6720 // cdobies@dobies.com

BIGGER | finance S M A R T

( by Terry Staley )

S T R AT E G I E S

5 Things You Need to Know About the Worth of Your Business Not knowing could lead to expensive mistakes.

I

f you haven’t taken the time to find out the fair market value of your business, you could end up selling it for less than it’s worth, or your heirs could pay more than the fair share of estate taxes upon inheritance.

To safeguard against preventable mistakes, here are several things to keep in mind when it comes to maximizing your company’s worth.

NO. 1

Establish Your Objectives As you consider your exit plan, keep in mind that there are several steps you’ll need to work through, based on certain objectives you establish. For example, you’ll need to factor in the date you wish to exit, the amount of cash you’ll need from the transfer or sale of the company and your choice of a successor (or who you will sell or transfer the business to). In the course of achieving these objectives, most owners want to receive full, fair market value for their companies or ownership interest in order to reach the finish line.

NO. 2

Test Your Objectives Once you establish your objectives, you’ll need to determine whether they are realistic. One of the first things you’ll need to do is evaluate how much money you will need to maintain your lifestyle into retirement.

The answer to this question, along with the timeframe until you wish to exit, is critical for deciding how to proceed. If the growth rate of your business is unrealistic

to achieve those objectives, you must either extend your timeline or lower your financial expectations. A business valuation specialist can help you through this process.

NO. 3

Know Your Basis for Tax Planning Understand that various exit paths (sale to third party or transfer to insiders) come with different tax implications. Without appropriate planning, your tax bill can take a huge bite out of sale proceeds. Given that tax mitigation strategies often take years to implement, it’s key that you start planning well before exiting. To do this, you’ll need an accurate estimate of value.

In a transfer to key employees, for example, a common transfer technique (designed to reduce the total tax liability between the owner and buyer) is to initially transfer a minority interest at a discounted value.

Using a “rule of thumb” valuation to support a minority discount simply will not work when the IRS asks you to justify the discount. You need the valuation of an independent valuation specialist who is able and willing to defend the valuation before the IRS. NO. 4

Understand Your Target Buyer It surprises many owners to learn that business value is relative and not fixed. It can vary based on your choice of successor as well as on the conditions under which the transfer is made.

If you are contemplating a sale to a third party, the business value is dependent not only on the intrinsic value, but on the

“external” condition of today’s mergers and acquisitions (M&A) market for that type of business in a particular geographic area. The M&A cycle is constantly changing based on a variety of factors, such as the cost of financing, the state of the stock market and the availability of capital. The market can dictate not only the EBITDA (earnings before interest, tax, depreciation and amortization) multiple, but also the terms of a possible third-party deal.

Value also fluctuates depending on how you plan to use the valuation. In co-owned companies, unless owners periodically update value established for the buy-sell agreement, one owner may receive too much or too little (upon death, disability or departure) while the other may pay too much or too little. Outdated valuations can result in litigation and loss of business value.

NO. 5

Create Incentive Plans An important part of any exit plan is to grow business value. Part of that value is wrapped up in your key employees. So, whether you are transferring your company to an insider group or contemplating an outside sale, you must retain those key employees.

Incentive programs can both motivate and “handcuff” key employees to your company. These plans are typically based on formulas, and the most successful (whether cash or stock based) use methods linking the size of an employee’s bonus to growth in business value.

Exiting from your company is likely the largest financial transaction of your life.

Start planning for it early, and be sure to consult a professional to move you toward your end goal.

Terry Staley CPA, MBA, CExP is a certified exit planner with the accounting firm of MarksNelson.

(816) 743-7700 // tstaley@marksnelsoncpa.com SMART COMPANIES THINKING BIGGER®

35

BIGGER | hr S M A R T

( by Nicole Tackett )

S T R AT E G I E S

Stop Hunting for Unicorns Set realistic expectations for recruiting and interviewing.

T

he next time you’re driving around town, take a close look at all the businesses with “Now Hiring” and “Help Wanted” signs on display. The number of jobs available seems greater than the pool of candidates who can fill them.

For businesses that need staffing, the process today involves more than just weeding

36 THINKING BIGGER BUSINESS // March 2017

through stacks and stacks of resumes until you find someone with the exact qualifications you want. It’s more about setting realistic expectations for the current job market and making the available candidates work for you. Don’t hold your breath for the mythical “unicorn” candidate, because this perfect recruit does not exist.

The concept is not to lower your standards, but to combine recruitment and training.

Be Flexible Be adaptable not just with your open job duties, but also with the candidates you will accept. For example, start with listing five requirements for a position. If a candidate has three of them, then you’re in good shape. Another employee in a different role can fill the other two needs.

You may also consider outsourcing to

an external provider or invest in internal training.

Identify the Attributes of Your Current Staff When an employee vacates a position, re-evaluate the strengths and weaknesses of your other team members, and reallocate workload accordingly. By doing so, you continue to grow your existing employee loyalty and their contribution to your organization. Define your open position based off the responsibilities that are left.

Consider Attitude, Not Just Skill Skill sets can be taught. Attitudes are harder to shape. If your company culture embraces self-starters, then a person who has experience in various industries might be a good fit because that person is dynamic and moldable and learns quickly.

Examples of the right traits could include being detail-oriented, working well under pressure, acting as an independent worker or being an out-of-the-box thinker.

If you can confirm that your candidate possesses those qualities, teaching that person how to operate your CRM system and other skills is doable. Confirming the culture fit with the company and the new hire’s direct co-workers is sometimes more important than the initial five requirements you listed.

People like to work with people they like.

Stop Exclusively Posting Online When companies rely solely on applicants applying to posted job positions on recruitment sites such as CareerBuilder, Monster and Craigslist, they are limiting themselves. Network in your industry’s circles to identify candidates prior to advertising open positions online. This will limit your competition for talent and allow you to be ahead of the curve as you find the candidates before they find you.

Balance Your Hiring Committee You may not get a full picture of the candidate’s potential contributions if the hiring manager is the sole interviewer.

With a second or even third interviewer in the room, the interpretation of answers varies to allow for an accurate assessment of aptitude. If an interviewer goes into an interview only wanting to hear one answer, you’ve already failed your company and sabotaged the candidate’s potential.

Read Between the Lines Interviews are not just about the interview itself, but the interactions throughout. Were the candidates pleasant to the receptionist when they came in the door?

Did they arrive early? Did they send thankyou notes as a follow-up? Did they ask for a timeline on the decision and then follow up according to that timeline? All of these are most likely better assessments of how candidates will be as an employee than stammering through an interview question.

Allow the Candidate to Ask Questions Interviews should not be one-sided.

Allowing candidates to ask their own questions enables you to assess if he or she researched the company or came prepared and invested in the opportunity. Candidates who come prepared demonstrate their commitment to be proactive and confirm the position is the right fit for them as well. Their questions indicate how seriously they treat certain topics and whether they would be fulfilled in the role and able to accomplish the job.

Kansas City SCORE

4747 Troost Ave., Suite 101 Kansas City, MO 64110 https://kansascity.score.org/ 816-235-6675

Perform Pre-Assessments Administering a questionnaire to candidates before an in-person interview could surprise you and challenge any assumptions you may have formed from reviewing their resumes. For starters, some candidates may not even respond. If they do not take the time to complete the questionnaire, they’ve already proven the amount of effort they would put into your position.

On the other hand, if they put in more than what you requested, you know they will deliver similar results in their actual job.

Recruitment is difficult. Companies need workers to facilitate growth and to provide products and services. So, finding the right fit is mandatory.

Defining the right fit is where most companies falter because they are under the false impression that unicorns exist. They don’t. Get comfortable with broadening your “wish list” and identifying successful employees through a variety of means rather than simply checking boxes.

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

37

BIGGER | growth S M A R T

( by Chris Steinlage )

S T R AT E G I E S

5 Holes That Could Sink Your Scaling Business Does your business need some patching in these critical areas?

W

hat sinks a small fishing boat isn’t always a gaping rupture in the side but a number of smaller, less obvious holes left unchecked. As single holes they have little impact, but combined it is more than the boat can handle to stay afloat. For

businesses trying to scale, a similar progression can occur when issues are left unaddressed, and the result on the business could be the same unfortunate demise as the boat.

It is the failure to recognize these smaller holes that that can often be most detrimental.

With that in mind, here are five issues that can often challenge businesses trying to scale. Just like the small holes in a boat, they are not always easy to see. You may not have all of them, but failing to address even one may be sinking your business.

Hole in Core Values Many businesses do a great job defining their values early on, but fail to breathe them into the business on a daily basis.

Instead of becoming part of the fabric of the business, they get lost in the growth. Every employee should know the core values that will guide the business into perpetuity.

A business that is scaling should hire, fire and review with a focus on core value alignment. It will fuel your company culture. Sometimes, the actions you’ll have

1

to take to plug this hole will be difficult. For example, you may need to let some long-term staff go if they aren’t on board with the changes that growth brings.

Hole in Management Team When a business is first getting started, often there’s an “all hands on deck” approach to getting things done.

But as your business scales, no one will be clear about who is accountable for what if you continue to operate that way.

Organizational charts with names in boxes are great for setting an overall structure of a business, but they do little to set the stage for the autonomy often required in a high-growth business. Consider dumping the traditional organization chart for an “accountability chart.” Every major function

2

doesn’t mean the world will. It is a cruel gets a box and one name and that person reality. For a product or service to successfully takes ownership for that role. Don’t sweat scale, it first needs to be something that lots of it if some names are in multiple boxes. As people really want and are you grow and scale, willing to pay for. There are you can simply It is the failure to recognize three ingredients that are replace names in very indicative of a prodboxes with new these smaller holes that can uct’s or service’s potential members of your to scale. Is it teachable, team. A caveat here: often be most detrimental. valuable and repeatable?

The people you If you answered “no” to hired initially may any one of those, you may have a hole in what not be the best choices to fill the manageyou’re trying to scale. ment positions your growing company requires. Don’t make the mistake of proHole in the Systems moting someone simply because of loyalty and Processes or longevity.

When there are too many functions being Hole in Product or Service completed on brain power alone, you’re at Just because you love the new idea risk. It is fine as long as the brain power is you’ve come up with to grow your company there 24/7 and you can clone it every time you add a new location or increase capacity.

But that isn’t reality. Workers can’t read your mind and automatically know what to do.

Ray Kroc didn’t invent the hamburger; he just scaled a process that made sure it was the same no matter where customers bought it. If your processes are not documented, there is no way you can scale your business.

4

3

Hole in Finances and Projections Make sure you have a handle on your finances and projections. Cash flow planning is paramount for a business that is scaling up. This dragon has a lot of heads.

You must understand your numbers enough to know how financially sound your business is and if your results are meeting your projections. Also, companies in high-growth mode track different metrics. For example, a business in growth mode should be more concerned about the ratio of new customers to existing each month, not the actual number of new customers per month.

These are only a handful of the many holes that can sink a business trying to scale. But, they can sink a company regardless of its industry. If you’re trying to scale and having issues navigating the waters to the next level, take a closer look under the deck to see if one of these five holes is letting water in your boat.

5

Chris Steinlage is a certified professional business coach with Aspire Business Development.

(913) 424-7637 // csteinlage@aspirekc.com SMART COMPANIES THINKING BIGGER®

39

BIGGER | contracting S M A R T

( by Michelle Cunningham )

S T R AT E G I E S

Teaming Up for Contracting Opportunities Make sure you understand the rules before you start playing the game.

T

he federal government spends close to $450 billion each year in goods and services. Small businesses can get in the game in any of three ways: 1

Through a direct contract with the government

2

As a subcontractor

3

Through a teaming arrangement

If your small business lacks the experience to be the prime on a contract,

consider teaming with another company to help you compete.

Teaming Relationships A teaming relationship can take different forms: » Prime-subcontractor » Joint venture » Mentor-protégé Here’s a snapshot for understanding the differences among the relationships.

Prime-subcontractor // When a company wants to bid on a contract with partners, a teaming agreement may be established as part of the offer. If the contract is awarded, a prime-subcontractor relationship will result. It’s important to note that only the

prime has the contractual relationship with the government. Further, the subcontractor’s past performance is not always considered. If the prime has no past performance, a “neutral” rating may be given, essentially opening the door for a competitor to win the contract.

Joint venture // In a joint venture, two or more businesses form a third company, and each are considered “primes” in performance of the contract. Joint ventures are limited agreements for the specific purpose of bidding on projects, and past performance of all parties will be considered. To compete on small business set-asides, all parties to the joint venture must be considered small in the industry identified in the bid. When forming a separate legal entity, businesses that want to use their certified status must be the majority owner/managing venturer of the joint venture and perform 40 percent of the work performed by the joint venture.

In some federal socio-economic programs, the joint venture also must be certified to compete on these set-asides.

Mentor-protégé // Mentor-protégé agreements are limited agreements in which a “mentor” agrees to provide business development assistance to a “protégé.” The mentor may be large or small, and the past performance of both parties will be considered. A joint venture agreement will be established once the mentor-protégé agreement is approved by the appropriate agency. Other rules also apply, so be sure to do your research, especially with U.S. Small Business Administration and Department of Defense programs.

Subcontracting Limitations If you consider teaming as an option, it’s important to understand additional rules, such as subcontracting limitations and affiliation.

To open up opportunity for small businesses, the federal government will “set-aside” procurements among certain socio-economic groups and small businesses.

These small businesses might opt to subcontract out a portion of the contract. The percentage of work the small business must self-perform on the contract depends on the type of product or service. An abbreviated summary of the subcontracting limitation rule states that in order to be awarded a small business set-aside contract of more than $150,000, the small business must agree to the following, as stated in 13 CFR 125.6: » In the case of a contract for services (except construction), it will not pay more than 40 THINKING BIGGER BUSINESS // March 2017

50 percent of the amount paid by the government to it to firms that are not similarly situated. » In the case of a contract for supplies or products (other than from a nonmanufacturer of such supplies), it will not pay more than 50 percent of the amount paid by the government to it to firms that are not similarly situated. » In the case of a contract for general construction, it will not pay more than 85 percent of the amount paid by the government to it to firms that are not similarly situated. » In the case of a contract for special trade contractors, no more than 75 percent of the amount paid by the government to the prime may be paid to firms that are not similarly situated.

“Similarly situated” means of the same size or certification status. Subcontracting limitations apply to joint ventures as well.

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41

BIGGER | sales S M A R T

( by Darryl Mattox )

S T R AT E G I E S

6 Simple Strategies for Generating Business Referrals Get in the habit of developing new leads using these referral tips.

A

s business leaders we have often been taught that our best source for new business is referrals from happy customers

42 THINKING BIGGER BUSINESS // March 2017

and clients. There is no better lead than one that has been sent your way through a strong referral. The challenge has always been how to get satisfied customers to actively promote your business.

Here are the six simple strategies for generating referrals that every smart business should consider implementing.

1 Have a plan. The old saying “if you fail to plan, you plan to fail� is true in life, and

it’s also true when it comes to generating referrals. Referrals are not automatic. Some just happen, but most occur because you do something to trigger it. A well thought-out plan for reaching customers at the right time, with the right message, generates the types of referrals that will help your business grow.

Some business owners assume that a great product or terrific customer service will generate referrals by default. Not so.

3

Involve your employees in the process.

Help your employees understand the value of a referral. Explain how each referral can help the company grow and become stronger. Teach them when and how to ask.

For example, when a customer provides positive feedback, it is the perfect time to request a referral.

If you regularly survey your customers on performance and delivery, take that opportunity to encourage happy customers to refer you to another customer. One of the best ways is to follow-up a sale with a personal call within 72 hours. If the feedback is positive, it is the right time to ask for the referral. If not, it is a great opportunity to address any issues and build the relationship for a future referral.

4 Remind them to refer you. You should be talking to current and past customers regularly. Many would be happy to refer you, but often they do not know how to present you and your service to others.

The best time to ask is immediately after delivering excellent service. The worst time to ask for a referral is at the cash register or when you present a bill. Look for opportunities earlier, or later, in the process when customers are more receptive.

You have to learn to ask and make sure employees are on board as well.

2 Ask for the referral. Most customers are open to being asked for referrals. Some even appreciate the opportunity to tell friends, family and associates about something good they’ve discovered.

It seems simple, but too many businesses either forget or are afraid to ask their customers for a referral. If you are doing a good job for your customers, and you are delivering on what you’ve promised, then you should always assume your clients would be happy to refer you, so ask them to.

5 Make it really easy. Happy customers want to help, but they don’t want to be inconvenienced. The first step is to let them know you welcome (even encourage) referrals. If you offer any incentives, make sure your clients know. Put slips in with newsletters, or provide them when you are delivering your products. Another opportunity to simplify the process is to include a form on your website and social media pages where customers can provide you with a name and email (or standard) address.

Don’t forget to stay compliant with the CAN-SPAM Act in your marketing to these referrals. Always be 100 percent transparent when it comes to the purpose of your message and honor optout requests promptly.

6 Finally, always say “thank you.” Saying thank you may seem simple, but doing so is important and powerful. In many

businesses, expressing thanks may be limited by law to a verbal “thank you.” In other situations, though, you can offer financial incentives. If you do want to offer a reward for a business referral, keep it simple. Any reward or incentive should be inexpensive and relevant to the size and number of referrals. The reward needs to be about your business and the customer’s experience, not about the gift they receive. Remember, most referrers are motivated to help you because you helped them, not because they expect a reward.

Generating referrals is not rocket science, but make sure it is a part of every touchpoint you have with your customers. Soon, it will become second nature.

Darryl Mattox is President and COO of Gragg Advertising, a full-service direct response marketing agency and Premier Google Partner. dmattox@graggadv.com // 877.GRAGGADV

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 SMART COMPANIES THINKING BIGGER®

43

BIGGER | marketing S M A R T

( by Alex Boyer )

S T R AT E G I E S

What Google Doesn’t Know Can Change Your Content Marketing Here’s how you can take advantage of it.

I

t’s easy to think that your favorite search engine knows everything. It’s our go-to source for new information, after all. You “Google” everything you don’t know, and Google always has an answer.

But there is one critical thing that search engines don’t know, and it can completely change the way content marketers think about content creation.

Search engines still don’t know what you are going to search for.

It may seem like Google is reading your mind when you begin to fill in your search bar, but the truth is we are still constantly surprising Google, despite all of the data at the search engine’s disposal. Fifteen percent of all searches each day are brand new, meaning searchers are asking for things, or asking in ways, Google has never seen before.

While 15 percent may not seem like a lot, this results in 525 million neverbefore-seen searches every day.

This number is only going to increase.

Although search engines are actively improving and will continue to improve, searchers are also becoming far more sophisticated in their search habits.

When was the last time you didn’t find the information you wanted on the first search? I’d guess it’s been a while. Whether we realize it or not, that daily practice of searching has trained us to find exactly the information we want. This has led to the rise in long-tail keyword searches—keywords so specific and precise that they are difficult for Google to anticipate.

And this doesn’t even account for the continued rise of mobile and voice searches.

Voice search now makes up 10 percent of all

44 THINKING BIGGER BUSINESS // March 2017

Google searches, and voice searchers have Customer-Focused vastly different search habits than tradiContent is Anticipatory tional searchers. Instead of typing “happy If we accept the fact that the search engines hour,” users are now asking their phone don’t know everything, the strategy of creating “where is the content becomes more about anticipating your best happy hour When was the last time you customers’ needs rather near me?” But than trying to take few websites are didn’t find the information advantage of keywords. taking advantage This strategy also you wanted on the first search? of content made begins with an audit for voice search. of existing content, This simple but this time rather conceit that than using the keywords as the primary search engines don’t know everything can metric of comparison, you instead examine completely change the way we think about how customers interact with your business content creation. and where every piece of content fits into that interaction. Your goal is to identify Keyword-Focused where content can improve that interaction, Content is Reactionary and if there are any pain points that you can Traditionally, the content creation proaddress with new or revised content. cess for businesses and agencies has been With this mindset, you can create content all about improving rankings. Competitor to address questions before your customers X is ranking higher than us in search term even ask them. And you will even be able to Y, so we need to create more content with anticipate how they may ask these questions, that search term to improve. A content even over voice search. audit is conducted to see what content is That’s not to say you should ignore ranking and where keywords can be added. traditional keyword research. The inforWe add a page or two, write a few blog mation you find doing keyword research posts, add a landing page, re-write some can give you some insight to questions to of the existing content to increase keyword answer. There are several tools out there that take conventional keywords and compile density and maybe we can move back up questions relating to that keyword to help the rankings. guide you. One such tool, for example, is This strategy is inherently reactionStorybase. It provides content-based search ary; you are reacting to changes in your terms in bulk, allowing your marketing team landscape. While this may be valid for to sort by questions, phrases, related terms businesses and clients that already have and even audience demographics average for great-performing websites that they are the search term you selected. looking to optimize, it won’t be as producGoogle may not know exactly what your tive for most businesses and marketing customers are going to search before they goals like acquiring new customers or search, but if you think like your customer improving conversions. and anticipate their needs with quality The reason why it doesn’t necessarily content, you may be able to. work? When you focus on keywords and improving your rankings, you are simply Alex Boyer is the Digital Content Coordinator at emfluence Digital Marketing in Kansas City, Mo. marketing to the search algorithm, not the people actually doing the searching.

(816) 472-4455 // aboyer@emfluence.com

dream We’ll provide the tools, strategies

BIG

and connections so you can make your dreams come true.

TO L E ARN M O RE TO DAY, PLEASE CALL (913) 432- 6 6 9 0 O R V I SI T WWW.I TH I N KB I GGER .CSMART O M COMPANIES THINKING BIGGER

®

45

46 THINKING BIGGER BUSINESS // March 2017

THINK BIGGER. TAKE FLIGHT. The 25 Under 25 ® Awards Gala is one of the biggest nights of the year for small business owners. This year, Thinking Bigger Business celebrated with the 2017 class of honorees at a VIP Reception.

A BIG thanks to Freedom Bank for hosting the event on Feb. 15.

“A mile of highway will take you a mile.

A mile of runway will take you anywhere.”

-Unknown

SMART COMPANIES THINKING BIGGER®

47

SCALEUP! KC

THE SUNDRY

Putting a Modern Twist on the Traditional Local Grocery RYAN WING LOOKS TO EXPAND THE SUNDRY—THE MODERN EXPRESSION OF A LOCAL MARKET AND KITCHEN. hen Ryan Wing opened The Sundry in the heart of The Crossroads in 2014, he knew the business would need to adapt to customer demands.

His vision was to open a grocery, deli, restaurant and specialty food shop that harkened back to another era when the neighborhood grocery was a full-service shop with local products and sustainable food. A place where customers could expect consistent quality and friendly service.

After opening the initial store, Wing’s long-term goal was to replicate The Sundry and reach more consumers

W

48 THINKING BIGGER BUSINESS // March 2017

in an effort to change an industry and to improve people’s lives. But to get there, he needed more storefronts, a growth plan and resources.

It’s why Wing turned to ScaleUP! Kansas City.

ScaleUP! is a program of 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 timing was ideal for The Sundry to enter the program. Wing already knew he wanted to make changes at the business.

ScaleUP! classes gave Wing a rare chance to take a step back and think about what to focus on and what to give up. ScaleUP! experts pointed out to Wing how critical it is for small business owners to review and think deeply about their long-term goals so they can adjust their strategy.

CUTTING BACK . . .

Wing originally envisioned The Sundry as a market that carried all the grocery staples.

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The store also featured a long community table for customers who wanted to eat from the in-house kitchen. But Wing already knew his initial plan needed refinement. He had to add more tables when more customers started showing up for the kitchen.

Wing also took advantage of ScaleUp! experts to help him with determing the store’s identity. In particular, Wing wrestled with whether the business would truly be a grocery if he decided not to carry national brand staple products, especially since he had always envisioned the business as being more than a restaurant. ScaleUP! experts helped him with the decision to define the business as a craft food company and how to communicate that to customers.

“Most people were coming to us for things like meat, cheese and bread,” he said.

Wing also knew customers loved the specialty items available at The Sundry such as foods from KC Canning Co., the craft foods industry and local makers, including items from The Sundry’s own kitchen.

Wing said ScaleUP! helped him to zero in on the things that offer the most value to consumers and that allow The Sundry to achieve its long-term goals.

“It actually has been very freeing to make these decisions and to have a sense of clarity,” he said.

Although he has cut back on “staples,” some have praised Wing’s efforts to offer sustainable, local products to consumers.

“Of course you can stock your pantry at home, but you also learn so much about geography of the region. You learn what’s growing in Manhattan, Lawrence and Wichita,” said Alicia Ellingsworth, KC Healthy Kids farm-to-institution manager.

The Sundry expands, he knows he will need to broaden those efforts.

“There are different stages in business as we grow. We can’t keep the same strategy the whole time,” he said.

Wing also relished the chance that ScaleUP! provided to talk with other entrepreneurs about their experiences and business challenges. “One thing that is not well understood in the general public, I think, is that starting a company can be a really lonely thing at times,” he said. “And it can feel like you’re on an island.”

He expects the relationships he formed at ScaleUP! to continue for the long-term.

… AND GEARING UP

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

Ellingsworth has worked with Wing for years and knows he has the skill, drive and personality to make the business thrive.

Wing has already launched several efforts that should come to fruition by the end of the year. The Sundry will undergo construction changes this winter to better accommodate the additional tables. And work is underway on a plan to bottle and sell The Sundry’s cane sugar sodas to other retailers.

Wing knows they have created something special with customer favorites like basil mint ginger ale.

The Sundry is also working on plans to market meat. Wing envisions selling The Sundry branded bacon, ham, corned beef, pastrami and an entire line of charcuteries.

“The goal is to sell beyond the physical walls of The Sundry,” Wing said.

He’s also begun talks on a second Kansas City location.

“Our goal is to have two or three in Kansas City, and should we be fortunate enough to get to that point, then we would try to make the leap to other cities as well,” he said.

SHORT-TERM CHANGES, LONG-TERM GROWTH

ScaleUP! helped Wing focus on his expansion plans even as he makes shortterm changes at the original location. The ScaleUP! experts also helped him to see that he will need to change his marketing focus as the company grows. To date, Wing has relied on social and earned media to tell the company’s story and raise awareness. As

ENTREPRENEUR

Ryan White

COMPANY

The Sundry 1706 Baltimore Ave. Kansas City, MO 64108 (816) 844-7878 www.TheSundry.com The Sundry is a sustainable market and kitchen that offers local produce and meats, freshbaked breads, spices and seasonings, prepared foods and handcrafted products.

ARE YOU READY TO SCALE UP?

Want to take your small business to new heights?

Then check out ScaleUP! Kansas City, an elite program from the University of Missouri-Kansas City Innovation Center and the U.S. Small Business Administration.

ScaleUP! offers training, mentoring and other help to get your revenues over the $1 million mark.

For more information, visit www.scaleupkc.com.

SMART COMPANIES THINKING BIGGER®

49

SCALEUP! KC

CAMBRIAN

Cambrian Helps Customers See Colorful Change at Home MOBILE APP HELPS CONSUMERS VISUALIZE DESIGN CHOICES VIRTUALLY. rying to find the right paint color for a room is a struggle. The process typically involves at least one trip to the hardware store to gather paint swatches and perhaps paint a sample on the wall before deciding.

Computer software firm Cambrian Tech developed Home Harmony, an app that uses augmented reality and artificial

T

50 THINKING BIGGER BUSINESS // March 2017

intelligence, to change the way consumers see color before a drop of paint is applied.

VISUALIZE POSSIBILITIES

The app helps people to realistically visualize paint colors on the wall by selecting a color and touching the place to be painted.

“Personally, I’ve used it in every room of our home that we’ve painted. It helped me

select a deck stain by being able to visualize the stains before buying them,” said Heather Spalding, who co-founded Cambrian with her husband Joel Teply.

Cambrian is working on another feature that enables people to visualize both flooring and paint colors with Home Harmony.

Founded in 2011, Cambrian is poised for growth as its app attracts companies interested in licensing its software development kit (SDK). The company’s proprietary home interior augmented reality

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SEE HOW IT WORKS

Cambrian’s founders set out to create Home Harmony as “the most realistic augmented reality software in the space of home improvement.” The app has grown exceedingly popular with consumers and companies that incorporate the SDK into their own technology.

Spalding said, “We also want it to be as simple as possible for the user.”

The app works by first using a mobile device camera to “see” the room. When a user taps on the wall, the app knows what is supposed to get painted and what is not. Then it uses augmented reality to execute the visualization component. The app’s underlying software runs extremely complex segmentation algorithms and artificial intelligence.

“Augmented reality basically refers to the overlay that you see. It’s something added to your real world,” explained Spalding. “For example, we can change our carpet to a hardwood floor and walk around our space and see how it would look, or even change the matboard around a painting to see how it looks in the room or complements the painting. We are beginning to branch into other areas of augmented reality as well— anything you might want to visualize.”

IDEAS IN DEVELOPMENT

software is designed for mobile, web and embedded systems.

Cambrian was chosen to participate in the fifth cohort of ScaleUP! Kansas City, a selective program designed for growthoriented businesses. It offers classes, peer mentoring, professional guidance and more.

“It will address a lot of the questions we have moving forward over the next few years,” Spalding said about ScaleUP! “It’s exactly what we need right now, as we’re hoping to begin scaling over this next year.”

ScaleUP! Kansas City, which is offered by the UMKC Innovation Center and the U.S. Small Business Administration, is available to those who have been in business for at least two years, generate at least $150,000 to $500,000 and are in a market capable of supporting more than $1 million in sales.

Prior to launching Cambrian in 2011, Spalding worked as a lab tech at KU Med in molecular neuropharmacology and molecular and integrative physiology. Teply worked as a software developer at EyeVerify. While employed full-time, the couple spent several years working on Cambrian part-time, developing apps and starting a family.

Teply began developing color visualization technology in 2010 and app prototypes that eventually led to Home Harmony.

Spalding’s knowledge of receptive fields in the retina were integrated into algorithms that helped an app execute the desired visual effect of projecting color onto a wall.

Spalding and Teply launched the app Wall Painter in October 2010. By the following day, thousands of people had downloaded the app. With Video Painter, launched in 2012, users could paint their wall and see it through their mobile device as they walked through their space in real time.

Overall, Cambrian has developed 10 apps, mostly to test new technology, and have found success with most of them.

“Collectively, we’ve had millions of users worldwide,” said Spalding. “We maintain only one app now, Home Harmony, which will be a showcase of everything we’ve learned so far.”

ScaleUP! will help Cambrian prepare for its next stage of growth, which is licensing its SDK. “The people in my cohort come from different backgrounds and have completely different businesses, but are facing the same issues and questions,” said Spalding.

“They are such a great resource for advice.

It’s really easy to get caught up in working in the business and not working on the business. ScaleUP! pushes us to think about really hard questions facing our business and addressing how to overcome them to get to the next level.”

Pete Dulin is a freelance writer based in Kansas City, Mo. He is also the author of Kansas City Beer: A History of Brewing in the Heartland, KC Ale Trail, Last Bite: 100 Recipes from Kansas City’s Best Chefs and Cooks, and Expedition of Thirst: Exploring Breweries, Wineries and Distilleries in Central Kansas and Missouri. www.petedulin.com

ENTREPRENEUR

Heather Spalding, Joel Teply COMPANY

Cambrian 4436 State Line Rd. Kansas City, MO 66103 www.cambrian.io Cambrian provides apps that allow you to see your space redesigned.

ARE YOU READY TO SCALE UP?

Want to take your small business to new heights?

Then check out ScaleUP! Kansas City, an elite program from the University of Missouri-Kansas City Innovation Center and the U.S. Small Business Administration.

ScaleUP! offers training, mentoring and other help to get your revenues over the $1 million mark.

For more information, visit www.scaleupkc.com.

SMART COMPANIES THINKING BIGGER®

51

BUILDING KANSAS CITY

Tourism & Travel

2017

Goin’ to Kansas City Means Big Business KANSAS CITY OPENED ITS DOORS—AND 24 MILLION PEOPLE CAME TO VISIT.

K

ansas City hosted a record 24 million visitors in 2014,

86 percent of day trips and 80 percent of overnight trips, affect the

surpassing the pre-recession high seen in 2008. What’s the

bottom line for small businesses and related industries.

worth of those guests coming to town?

How did visitors devote their time here? Top activities included shopping

According to a 2014 economic impact study, tourism generated

(36 percent), fine dining (19 percent), casino, swimming, historic sites,

$5.1 billion in economic impact that year for the Kansas City region,

museums, and nightlife followed by theme parks and pro/college sports.

including indirect and induced impact. Clearly, travel and tourism represents a significant portion of Kansas City’s economy.

Certainly some of Kansas City’s major attractions are what capture the attention of residents and tourists alike. And when Kansas City’s

In fact, visitor spending grew to $3.1 billion in 2014, increasing 12

small businesses and lesser-known cultural attractions extend the

percent in two years. Leisure travel and tourism, which accounts for

welcome mat for visitors, the local economy reaps even more benefit.

IRRESISTIBLE ATTRACTIONS

THE HISTORIC GARMENT DISTRICT MUSEUM

This museum’s free exhibit provides insight into the city’s economic past. More than 300 Kansas City-made garments and accessories are displayed on a rotating basis from the donated collection of museum founders Ann Brownfield 1 and Harvey Fried. At any one time, 35-40 items will be on exhibit. During the 1940s, the area employed more than 4,000 people in the garment industry. Manufacturing of garments was the second largest employer of any industry in Kansas City, Mo. “The appeal of the city’s garment district is curiosity about a long-time industry that 52 THINKING BIGGER BUSINESS // March 2017

is no longer around,” said Denise Morrison, director of collections and curatorial services at the Kansas City Museum. “To think about how many people it employed, what roles they played and what garments were made here is fascinating to tourists and people who have lived here all their lives. The story appeals to the museum because it is such a unique Kansas City story.”

THE NATIONAL MUSEUM OF TOYS AND MINIATURES

The 33,000 square-foot museum features the collections of Mary Harris Francis and Barbara Marshall. It now contains more than 72,000 objects. It is the world’s largest

fine-scale miniature collection and one of the nation’s largest antique toy collections on public display.

“Our fine scale miniature collection features very tiny, precise art. It gives you an incredible appreciation for a relatively unknown art form,” said Jamie Berry, executive director of the museum. “Our toy collection spans decades and has both depth and breadth. It’s a great glimpse into our past. While times may change, the toys children play with have always taught us about our world and how we live in it.”

In the first year after reopening in August 2015, museum attendance doubled to 40,000 visitors. The membership program also grew 300 percent.

NATIONAL WORLD WAR I MUSEUM AND MEMORIAL

As America’s leading institution dedicated to remembering, interpreting and understanding the Great War and

its enduring global impact, the Museum holds the most comprehensive collection of World War I objects and documents in the world. The Museum has been ranked by both TripAdvisor and Yelp as one of the 25 best museums in the U.S. The exterior features the Liberty Memorial Tower, which rises 217 feet above the courtyard, with four 40-foot tall Guardian Spirits carved by famous sculptor Robert Aitken.

“Ultimately, the Museum inspires thought, dialogue and learning to make the experiences of the Great War era meaningful and relevant for present and future generations,” said Dr. Matthew Naylor, president and CEO of the Museum.

The National World War I Museum and Memorial is one of many local attractions that distinguish Kansas City.

“A robust slate of appealing tourismrelated opportunities is essential to the well-being of any city. We’re fortunate to have that in spades in Kansas City,” said

Naylor. “In the Museum’s case, we’re the only one of this kind in the entire country.

Our nation’s official World War I Museum isn’t in Washington, D.C. or New York or Los Angeles – it’s here in Kansas City.

To be able to say that is special and something Kansas Citians should feel a tremendous sense of pride about.”

The Museum broke its annual attendance record for the third consecutive year in 2016 with more than 200,000 visitors.

Additionally, more than 3 500,000 people participated in events held on the Museum grounds throughout the year.

From an economic impact standpoint, based on attendance in 2015, visitors living outside of the Kansas City metro region generated $18.3 million in 2015, with that spending supporting 184 jobs in the region (67 direct and 117 indirect).

2

KANSAS CITY T-BONES BASEBALL CLUB

Game attendance for the T-Bones at CommunityAmerica Ballpark in Village West ranks in the top five percent of independent professional baseball teams.

“It’s a friendly atmosphere with 3,500 here on a Tuesday night, and it’s absolutely electric with 8,000 here for a Saturday night,” said Adam Ehlert, president of the Kansas City T-Bones.

The team’s fans are primarily metro-area families from Johnson, Jackson and Wyandotte County, plus north of the river. Area hotels, restaurants and the Convention and Visitors Bureau also promote minorleague baseball as an amenity to regional summer vacationers.

“We are here in the heart of Kansas’ most popular tourism area,” said Ehlert. “We hear regularly from area merchants how much our games impact their businesses.

Our product really is affordable, familyfriendly entertainment that happens to be professional baseball.”

Spending at ballgames is redirected into the local economy.

“Of about a five-million dollar annual budget, more than 95 percent is spent locally,” said Ehlert. “Just within our control, that is thousands of hotel rooms, restaurant meals, and hundreds of wellpaying summer jobs for students, retirees and everyone in between.”

Ehlert believes the minor-league ballpark helped to bolster growth in Wyandotte County.

“We were one of the first small businesses to take the leap into Village West,” said Ehlert. “I do think we played a significant part in its full build-out as a destination.”

continued on page 54 »

1. Exhibit at The National Museum of Toys and Miniatures. (Photo courtesy of The National Museum of Toys and Miniatures.) 2. National World War I Museum and Memorial.

3. Kansas City T-Bones stadium. (Photos courtesy of Visit KC.) SMART COMPANIES THINKING BIGGER®

53

BUILDING KANSAS CITY

Tourism & Travel

2017

FOOD AND WINE NOURISH TOURISM

GRAPE PERFORMANCE

According to an Economic Impact of Missouri Wine and Wine Grapes 2013 study, the state each year attracts 950,000 wine- related tourists that spend $220 million in wine-related tourism.

They generate $52 million in retail sales of Missouri wine. Greater Kansas City claims its fair share of 4 those tourism dollars.

Numerous wineries operate in and around Kansas City. They crosspromote each other via designated wine trails. Fence Stile Vineyards and Winery in Excelsior Springs, Mo., is part of the Northwest Missouri Wine Trail, one of 10 wine trails in the state.

“When one of us succeeds, we all succeed. An organized wine trail allows us to share resources, promote tourism by showcasing the area as a destination, and provide guests a more complete experience by guiding them to other venues on the trail,” said Shriti Hallberg Plimpton, owner of Fence Stile. “Organized events, such as a mulled wine weekend, give guests a reason to plan return visits and experience each winery’s unique take on a particular theme, further enriching their experience.”

Fence Stile offers tourism-friendly experiences, such as harvest parties, tours, food pairing events and live entertainment. The winery also partners with area businesses on sip-n-shop nights, wine dinners and festivals. As an event venue for wedding, showers and corporate events, the winery supports other event-driven businesses like catering.

Proximity to The Elms Hotel and Spa and bed and breakfast businesses proves mutually beneficial.

“The winery gives their guests a venue to extend their experience and participate in various events at the winery to create new memories,” said Plimpton. “Groups hosting 54 THINKING BIGGER BUSINESS // March 2017

an event at The Elms will often need additional activities for their guests. We are happy to partner with them to customize experiences to match their needs.”

HERE FOR BEER

Boulevard Brewing Company opened its Visitor Center in July 2016 to solve an ongoing challenge. Demand for tours and its tasting room had outgrown its capacity. In 2015, Boulevard hosted almost 60,000 visitors on some 2,300 tours, turning away thousands more due to lack of space.

“Our new Tours & Recreation Center has given us the opportunity to entertain thousands of brewery guests that we were not able to accommodate in our old digs,”

said Amber Ayres, Boulevard’s Director of Tours & Recreation. “We are grateful for Kansas Citians and tourists embracing our new home.”

The expanded Visitor Center attracts guests nationwide for daily 60-minute tours, educational exhibits, gift shopping and the 10,000-square-foot second-floor Beer Hall. Thousands more guests now visit Kansas City and spend money locally.

DINING DESTINATION

Local restaurants have earned national acclaim that raises the profile of their business and Kansas City cuisine, whetting the appetite for visitors eager to chow.

Joe’s KC is known nationwide for its barbecue and famed Z-Man sandwich. The barbecue restaurant has been featured on the Travel Channel, Food Network, and twice in USA Today for ‘America’s Tastiest Ribs’ and ‘Best Southern BBQ.’

5

“Some high-profile television personalities and national news organizations have sought us out for stories,” said Doug Worgul, director of marketing for Joe’s KC. “We’ve been featured in 2012 when the MLB All-Star game was here, and then in 2014 and 2015 when the Royals were in the World Series. Lots of national media were in town. Most came to our original gas station location to shoot video and interview our crew and customers. That has increased awareness of our brand outside of Kansas City. We see out-of-town visitors every day. We’re grateful and love the opportunity to show out-of-towners that Kansas City is the Barbecue Capital of The World.”

Based in Smithville, Mo., Justus Drugstore has received accolades and press mention in Bon Appétit, Travel and Leisure, NY Time and Food & Wine. That press has expanded the restaurant’s client base.

“We have regular customers from Lincoln, Tulsa, Ames, Des Moines and

Local restaurants have earned national acclaim that raises the profile of their business and Kansas City cuisine, whetting the appetite for visitors eager to chow.

other cities,” said Jonathan Justus, executive chef and co-owner. “Some of those guests stay in Smithville or Kansas City for the weekend. That spending has an impact on the local economy.”

Rye and Bluestem, owned by chefs Megan and Colby Garrelts, have also earned national press, and, in turn, drawn customers from across the country.

“When guests travel to Kansas City, they want to experience our entire city from baseball to barbecue and everything between. Local chefs and restaurateurs contribute greatly to the culinary landscape that we call home,” said Megan

Garrelts. “Bluestem, a nationally-acclaimed restaurant, has been published in countless publications and is the recipient of Best Chef Midwest by the James Beard Foundation in 2012. These accolades contribute to tourists’ decisions on where to dine and which cities in the middle of the country to stop and enjoy. The ‘fly over’ mentality of the Midwest is quickly going away. Many award-winning and talented chefs focus their cuisine around the regionalism of Midwest cooking and hospitality traditions that can only be found in Kansas City.”

ELEVATED EXPERIENCE

Hotel Phillips has undergone a $20 million transformation that restores its 1930s era elegance and enhances its food and beverage offerings. Managed by NVN Hotels, Hotel Phillips’ renovation blends historic charm with modern comforts in a way that’s expressly local. The update highlights the hotel’s Art Deco lobby, elaborate bronze and nickel metalwork, walnut paneling, stylized light fixtures and 6 gleaming marble walls.

“The hotel has a unique history familiar to people that grew up in Kansas City,” said Sheenal Patel, CEO of NVN Hotels.

“We wanted the hotel to be more than a place to eat and sleep. We also wanted people to feel like they could spend all day here.”

New restaurant and bar concepts increase the hotel’s on-premise appeal. The installation of Tavernonna Italian Kitchen brings a modern Italian restaurant to Downtown. Kilo Charlie, the military call sign for Kansas City, reinvents the hotel coffee bar experience.

P.S., a Prohibition erastyle speakeasy, offers hand-crafted cocktails, a late-night menu and weekend performances from local jazz musicians.

The net result wholly transcends expectations of what hospitality looks and feels like in Kansas City.

“Tourists are looking for something a little familiar, but also what a city has to offer,” said Patel. “Hotel Phillips feels local

and authentic. It’s not a big box hotel. It feels like you’re in KC. Getting coffee at Kilo Charlie, for example, is not like being at Starbucks anywhere. We’re trying to elevate the overall experience for hotels in Kansas City. Tourists can come to Kansas City and have a world-class experience.”

The sum is greater than its parts in Kansas City. These attractions, neighborhoods, small businesses and service-driven attitudes by owners translate into a feeling in Kansas City that’s hard to pin down and even harder to emulate. It feels good to stay here, and to eat, drink, shop, play and explore. It’s exactly what small businesses and the community want tourists and visitors to experience, especially when they choose Kansas City as a place to spend time and money. continued on page 56 »

4. Z-Man sandwich from Joe’s KC. (Photo courtesy of Joe’s KC.) 5. Boulevard Brewing Company’s Tours and Beer Hall building. (Photo courtesy of Boulevard Brewing Company.)

6. Hotel Phillips model guest room, post-renovation. (Photo courtesy of Hotel Phillips.)

SMART COMPANIES THINKING BIGGER®

55

BUILDING KANSAS CITY

Tourism & Travel

2017

OH, THE PLACES YOU’LL GO!

Greater Kansas City is filled with destinations unlike any other place that attracts tourists interested in local flair and memorable experiences.

MUSEUM AT PRAIRIEFIRE

Located in Overland Park, the museum collaborates with the American Museum of Natural History to present world-class exhibitions on dinosaurs and other programming. The building’s colorful exterior is the only one in the U.S. to feature dichroic glass developed by NASA.

A N S W E R I N G S E RV I C E S

SHATTO MILK COMPANY

This innovative dairy farm produces dairy products with retro-based packaging and branding. The Shatto family extends its brand with interactive farm tours that enable customers to see how food is produced, meet calves, milk a cow, tour the processing plant, enjoy samples, and more.

THE RABBIT HOLE

As the world’s first Explor-a-Storium to launch in 2017, this nonprofit will be “a radically immersive, ever-evolving, museum

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Pete Dulin is a freelance writer based in Kansas City, Mo. He is also the author of Kansas City Beer: A History of Brewing in the Heartland, KC Ale Trail, Last Bite: 100 Recipes from Kansas City’s Best Chefs and Cooks, and Expedition of Thirst: Exploring Breweries, Wineries and Distilleries in Central Kansas and Missouri. // www.petedulin.com

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experience” built around children’s books through events, workshops, and programming. The Rabbit Hole will host LitFestKC, its first annual downtown literature festival, in partnership with the Kansas City Public Library on April 28-29. The event will draw children’s literature lovers to meet the first National Ambassador for Young People’s Literature and three Caldecott Medal winning authors.

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» The BIG thinkers behind the BIG ideas. »

Corey Poirier Corey Poirier is an award-winning keynote speaker and the host of the “Conversations with PASSION” radio show. In addition to being a columnist with Entrepreneur magazine, he has written hundreds of other articles and has made numerous television appearances. He is also an international best-selling author with 10 books to his credit, and he has presented TEDx and MoMonday’s talks.

Author and speaker KELLY » What are some of the common traits of influential leaders?

COREY » I’m going to talk about three traits. I’ve discovered they don’t necessarily relate to your background or your financial standing. You can literally start to develop them tomorrow. In some cases, you can actually be practicing them tomorrow.

They don’t have to be innate talents. A lot of people think you either have to be born with certain traits to be a leader, but you don’t.

KELLY » What is the first trait?

COREY » Enlightened

super achievers understand the power of saying “no” so they can say “yes.”

I was taught that you should say “yes” to everything and then figure out how to do it later. Then I started interviewing these top achievers, and I discovered that one of the things they did really well was say “no.” That allowed them to stand out from the rest because they were willing to be brave enough to say “no” when most people struggle with it.

KELLY » Why is saying “no”

important?

COREY » Because these people took the time to identify the few yesses that will move the needle forward, and then say no to everything else. What that allows them to do is really focus in on

that they don’t get lost in the maze of information out there that doesn’t help them move the needle.

their genius areas that will move the needle.

KELLY » A lot of people think that

if they say “no” to something that’s a sign of weakness. There’s this pervasive thought of the superman or the superwoman who can do everything, and if you say “no,” then you’re not living up to that ideal. You’re saying just the opposite—to get very clear about what your great traits are and play to them. Everything else is just a distraction.

COREY » Interestingly, I was taught that you should focus on your weaknesses because you’re not strong in those areas and need to develop them, but to ignore your strengths because they come easily to you. I’ve learned since that top achievers hire for their weaknesses so they can focus on their strengths.

58 THINKING BIGGER BUSINESS // March 2017

KELLY » What’s the second trait?

COREY » Lifelong

learners are leaders. Zig Zigler had an amazing quote that sums this up really well: “You can finish school, and even make it easy — but you never finish your education, and it’s seldom easy.” What he meant by that is school might be over, but the learning’s just begun.

Leaders understand that you need to keep feeding your mind, and they find ways to effectively and efficiently feed their mind. In a world where we’re information heavy and wisdom light, they find a way to ignore the body of information that’s consuming everybody these days and they get right to the wisdom that’s going to make them stronger and help them survive. They are dedicated to continuously feeding their mind but they also know how to do it efficiently so

I recommend people develop a learning plan. It can be simple.

My girlfriend and I have a thing we call Ted Tuesday. We watch a TEDx Talk and then discuss it.

KELLY » Now, what we’ve all

been waiting for—that number one trait.

COREY » Top leaders have all discovered their passion and they are living on purpose. I call it “Fueled by Vitamin P.” You can’t buy it at the store, but it’s probably the most important vitamin you could ever take.

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

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