Thinking Bigger Business Magazine-Sept. 2016

VOL. 25 // ISSUE 9 // SEPTEMBER 2016

GO FOR LAUNCH How to roll out new products.

KAUFFMAN’S 100TH Mr. K’s surprising small business legacy.

MERRILL COMPANIES Meet the people behind Prairiefire.

» iThinkBigger.com

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CONTENTS

SE PTE M B ER 2016 VOL. 25 // ISSUE 9

D E PA R T M E N T S

07 08 10 11 14 14 16 49 50

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

OUTLOOK

20

KC MADE IT Leap of Faith

Etch sells Christian products across the U.S.

22

KC FUTURES Why Interns Are Boss

The effort to recruit our future workforce.

42

BUILDING KC Tech Powers KC

But are we keeping up with the Joneses?

28 AN IDEA AS BIG AS A T. REX S M A R T S T R AT E G I E S

33

BIGGER | contracting Big New Opportunity

SBA opens up its mentor-protégé program.

34

BIGGER | growth Before You Launch

Three questions to ask before introducing a new product.

36

BIGGER | tech MIA on EMV

Why retailers are avoiding new credit-card tech.

38

BIGGER | sales How to Make Buyers Love You

10 ways to make clients feel special.

4

Prairiefire has something that most developments don’t: the Museum at Prairiefire, which hosts exhibits from the American Museum of Natural History.

THINKING BIGGER BUSINESS // September 2016

KC ENTREPRENEUR

ON T COV HE ER

An Exhibition of

INGENUITY The team behind Merrill Companies explains how they found a one-of-a-kind solution for Prairiefire.

C O M PA N Y T O WAT C H

F E AT U R E

SCALEUP! KC

19 Virtutecture’s Vision

24 The Descendants

40 Cass County Choppers

The virtual-reality startup brings building designs to life.

Ewing Kauffman and Marion Labs inspired a wave of other businesses.

Its motorcycle conversion kits have sold around the world.

SMART COMPANIES THINKING BIGGER®

5

CONTENTS

SE PTE M B ER 2016

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Megan Scanlon Operations and Events Manager EDITORIAL

James Hart Managing Editor SALES + MARKETING

Mary McKenna Business Development PRODUCTION & GRAPHICS

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

ON THE WEB // ITHINKBIGGER.COM

RADIO

BUSINESS CALENDAR // Find out about hundreds of business events, networking

opportunities, classes and workshops.

Mary McKenna Executive Producer GUEST WRITERS

ARTICLE ARCHIVES // Did you miss an issue? Search our archives for thousands of articles.

SMART COMPANIES B L O G // Written by publisher Kelly Scanlon, you’ll get updates on people, events and news impacting entrepreneurs.

25 UNDER 25 ® AWARDS // Learn more about the 25 Under 25® Awards

Program for businesses with fewer than 25 employees. www.25Under25.com

Ruth Baum Bigus, Dawn Bormann, Deb Calvert, Chris Conti, Pete Dulin, Michael K. Higgins P.O. Box 754, Shawnee Mission, Kansas 66201-0754 (913) 432-6690 // (888) 432-6444 // FAX (913) 432-6676 // editor@ithinkbigger.com sales@ithinkbigger.com // iThinkBigger.com A WBENC-Certified Women’s Business Enterprise See our SRDS listing at www.SRDS.com FOR ARTICLE REPRINTS

WEB COLUMNISTS // Visit www.iThinkBigger.com for articles full of insights and

strategies from our exclusive Web columnists.

Aspire for More Shawn Kinkade No More Drama

WhiteSpace Revenue Zone Elizabeth Usovicz Stay on Task, Motivate on Purpose

6

THINKING BIGGER BUSINESS // September 2016

Strategic Leadership Margaret Reynolds Where’s Your Blind Side?

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

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

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

Standard Mail Postage Paid at Shawnee Mission, KS.

THE BIGGER PICTURE

Living Leadership

W

hat is leadership? Is it innate,

you ask them to do, but for other reasons, not

or is it learned? Does having a

because they respect you as a leader, if you

certain title in the workplace or

strike them as a phony.

the community automatically create a leader,

Although leadership books and programs

or simply confer power and authority?

have a place, they aren’t a substitute for dis-

We probably all know people who are assigned to lead-

covering what you’re really made of. Those revelations

ership roles, through promotion or election, for example,

come in the quiet hours when a tough decision that will

but fall short as leaders. Even many people we know who

affect others rests squarely on your shoulders, or in a

are good leaders will freely admit they were surprised at

chaotic public moment when everyone is looking at you

some of the early leadership lessons they learned, despite

for direction.

previous preparation or study.

Real leaders aren’t necessarily demonstrative and showy.

That may seem surprising, given all the books and

Many of the best leaders are quiet individuals who lead

seminars available on how to become a good leader.

by example, who day in and day out earn, rather than de-

I don’t find it odd at all. Leadership is more than a

mand, respect and loyalty. Leaders are able to rally others

learning experience; it’s a living experience.

to personally own and believe in common goals, and then

Effective leadership starts with being comfortable with

achieve them even when resources are limited.

who you are. Your own words and actions and how you

Understanding leadership principles and actually being

lead your life have to be congruent with the expectations

a leader are two very different things. Principles can be

you have of and the requests you make of others. People

learned in a Lunch & Learn session; whether you are really

can spot insincerity easily. They may end up doing what

a leader is ultimately decided by those you lead.

Ke lly S can lon

// Publisher // kscanlon@iThinkBigger.com

SMART COMPANIES THINKING BIGGER®

7

BIZ BITS

Expect Accept the Unexpected.

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8

New Signs of Entrepreneurial Life, But Concerns Remain

The UMKC Small Business & Technology Development Center is offering scholarships for a series of classes offered this month through its Urban Business Growth Initiative. The program helps small businesses in KC’s urban core. The courses—the Icehouse Entrepreneurship Program, FastTrac TechVenture and FastTrac GrowthVenture—normally cost $795. With the scholarship, the cost is $75. The classes are open to everyone. Only those who live or work in Kansas City, Mo., are eligible for scholarships. For more information, www.bit.ly/2bv3EgM.

Americans are becoming entrepreneurs at a faster rate, but the nation’s “startup density”—the number of new businesses compared to existing employer companies— is still less than what it was before the Great Recession. That’s according to the recently released Startup Activity Index from the Kauffman Foundation. Roughly 330 U.S. adults out of every 100,000 became entrepreneurs, compared to 280 a couple of years ago. You can read the full report at www.bit.ly/2ar8B8o.

Digital Sandbox KC Releases Report Card In the three years since it launched, Digital Sandbox KC has funded 65 proofof-concept projects with local startups. And those companies have introduced 55 new products, created 339 jobs paying more than $9 million and logged total sales worth about $16.7 million. These numbers were included in a recent report card on the program.

Sandbox clients have also gone on to win more than $28 million in follow on funding.

Sept. 30 Deadline for Startup Open Contest

Katheigh Degen and Raleigh Lang are registered representatives of and offer securities, investment advisory and financial planning services through MML Investors Services, LLC. Member SIPC. Supervisory Office: 4801 Gallardia Parkway, Ste. 250, Oklahoma City, OK 73142. Phone (405) 486-1400.

Twin Financial is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies.

BCC4042e_6_Lang 215

Scholarships Available for Small Business Courses

CRN201701-189654

THINKING BIGGER BUSINESS // September 2016

The Startup Open is taking entries now through Sept. 30 for this year’s pitch competition. It’s open to any company that’s been incorporated less than 18 months, so long as it hasn’t accepted any capital from angel investors, venture capitalists or seed funding. The winner will receive a trip to the Global Entrepreneurship Congress next spring in South Africa. To apply, visit startupopen2016.startupcompete.co/.

Applications Open for Pipeline 2017 The Pipeline Entrepreneurial Fellowship will be taking applications for its 2017 cohort through Oct. 19. The Kansas City-based program takes high-potential executives from Kansas, Nebraska and Missouri and exposes them to a year’s worth of training, coaching and connections.

For more information about the program, visit www.pipelineentrepreneurs.com.

SBA Website Offers Help With Certification The U.S. Small Business Administration has rolled out a new website, certify.sba.gov, to assist entrepreneurs who want to compete for government contracts. The site can help smaller companies get certified as a WomenOwned Small Business. In time, the site will offer similar service for HUBZone, 8(a) and other contracting programs. Be sure to check out the “Am I Eligible?” tool, which can tell business owners quickly if they might qualify for certification.

DISCOVER WHAT THE JE DUNN MCBD PROGRAM CAN DO FOR YOUR BUSINESS! J E D U N N G R A D U AT ES T E L L T H E S T O R Y B ES T . . .

MARCUS WILLIAMS

BRANDY MCCOMBS

ALEX GONZALEZ

Triple 777 Construction LLC www.triple777construction.org

International Builders & Consultants Inc. (IBC) | www.ibcinc.biz

Gonzalez Construction www.gonzalez-kc.com

Marcus Williams, founder of Triple 777 Construction, applied for the JE Dunn MCBD program to learn a more innovative strategy for commercial contracting. The company, which services a 10-county area, provides commercial flat roofing such as TPO, EPDM and PVC roofing systems.

IBC is a local union-based Certified DBE/WBE commercial contractor specializing in interior tenant finishes. The company’s special road/ highway division provides turnkey traffic control rental services.

Alex Gonzalez is the owner of Gonzalez Construction, a company that specializes in plastering, interior insolation, doors and hardware installation.

His decision to participate in the program paid off, he said, noting that it “gave me better insight into the construction world, bidding, estimating, negotiating contracts and understanding the commercial climate of the industry and standard pricing of each county.”

For others interested in the program he gives pointed advice: “Arrive early, sit at the front of the class, listen, take notes and sharpen your pencil.” He also advises to clear your schedule to focus on the class and to be ready to learn.

He credits the program and program leaders Marvin Carolina and Nakisha Bausby for helping him take his company to the next level.

Owner Brandy McCombs said she applied for the program to better understand how to run her company and to meet other women and minority contractors in Kansas City.

The program opened her eyes as to what general contractors face every day that, as a subcontractor, she had not considered before.

Specifically, the course taught her to be more detailed and to get scope letters out days in advance to make sure when bid date comes all I’s are dotted and all T’s are crossed.

Her advice to those considering the program?

Make sure you are dedicated to this program.

You will get out of it what you put into it. She also encourages business owners taking the course to invite someone in their company that needs more insight on how the “Big Picture” works.

I N T E R ES T E D I N M O R E I N FO R M AT I O N ?

The Minority Contractor Business Development (MCBD) Program was launched in 2005 in Kansas City and is currently being implemented at a number of JE Dunn locations across the country. This program is comprised of MBE and WBE contractor companies that are selected through an application and interview process. Selection criteria include industry experience, size of company and current conditions.

He decided to apply for the program because of the mentorship opportunities and the chance to build a strong long-term relationship with numerous organizations.

The program surpassed his expectations, as it helped the company on many levels. “As an entrepreneur, it’s important to have a mentor to highlight the areas that many business owners miss. This program gave me another perspective that helped me realize every small detail is important and should not be overlooked.” The program helped him build long-term relationships with JE Dunn’s professional staff, instructor Kay Saunders and classmates. It also positioned him to become a strong competitor in the construction industry.

Alex encourages business owners considering the program to participate, engage, build relationships with JE Dunn’s professional personnel and classmates. “Don’t hesitate to ask questions!” he said.

The program’s purpose is to build business development skills so that M/WBE contractors can compete with non-minority contractors in the construction industry. During the 6-month program, participants attend monthly classes facilitated by JE Dunn, with a curriculum of topics ranging from estimating to policies and procedures. Another program goal is to provide participating companies with the tools to participate on JE Dunn projects. The MCBD Program is free of charge.

For more information: Marvin Carolina, Vice President of Diversity | diversity@jedunn.com

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

FEDERAL

KANSAS

Lawsuit Over Corporate Inversion Rules The U.S. Chamber of Commerce and the Texas Association of Business are suing over federal regulations, introduced earlier this year, that are designed to block corporate inversions. That’s a process where a company moves its legal headquarters to a country with a lower tax rate, while keeping many of its other operations in the United States. The plaintiffs argue the Treasury Department overstepped its powers in instituting the new rules.

Banks Decide to Back Shell Company Legislation The Clearing House Association—a group that represents some of the nation’s biggest banks—is supporting the Incorporation Transparency and Law Enforcement Assistance Act. Unveiled earlier this year, the bill is designed to combat money laundering by requiring disclosure of a shell corporation’s ultimate owners when the entity is incorporated with the state.

Thinking Bigger?

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

Keeping subcontractors in-line, ontime, every time?

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

10

THINKING BIGGER BUSINESS // September 2016

Moderate Republicans beat several conservatives in last month’s primaries, which could foretell a big shift in legislative priorities next year. For starters, that could mean a re-do of the state’s system for funding public schools. Gov. Sam Brownback’s recent tax cuts could also be in danger.

MISSOURI MO Implements State Review of ACA Rate Increases The Missouri Health Insurance Rate Transparency Act (S.B. 865) went into effect late last month. Under the law, health insurers can’t increase rates for Affordable Care Act plans unless they get a review from a state agency first. Technically, the state can’t reject an increase outright, but it can ask for a change and make its ruling on “reasonableness” public.

State Supreme Court Blocks Unemployment Reform Bill

Let’s Talk.

816.753.2166 Commenco.com/ThinkingBig

Moderates Gain Momentum During Primaries

Radio Solutions Channel Partner

The Missouri Supreme Court has stopped a bill that would change how the state’s unemployment benefits work, and the Missouri Chamber of Commerce is vowing to resurrect the item next year.

H.B. 150 would, among other things, use the unemployment rate to calculate how many weeks of benefits an outof-work employee could receive. The bill was passed in 2015, was vetoed by the governor during the legislative session and was passed again on an override vote during the veto session. But the court, citing the state constitution, said the window for an override had passed.

K C CA L E N DA R SE PTE M B E R

08

07 JCCC Business Basics in a Day A team of experts will cover the nitty-gritty details of starting a business, including writing a business plan, choosing a legal entity and more. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 8 a.m.–4 p.m. $69.

INFORMATION/REGISTRATION »

sign here

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

Social Media Secrets and Strategies for Business Anne Cull of ThinkViral will show you what a real social media strategy looks like. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 5:308:30 p.m. $199, scholarships available.

INFORMATION/REGISTRATION »

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

08 OP Chamber Golf Tournament Enjoy a day of fun and networking, including great food, prizes and more. Deer Creek Golf Club, 7000 W. 133rd St., Overland Park. 11 a.m.– 6 p.m. $225 per person, $900 for a team of four.

(913) 491-3600 or opcc@opchamber.org or www.opchamber.org INFORMATION/REGISTRATION »

Central Exchange CEO Series: Danny O’Neill of The Roasterie The founder of one of Kansas City’s best-loved businesses shares stories and advice from his career. Central Exchange, 1020 Central, Kansas City, Mo. 11:30 a.m.–1 p.m. Free for members, $40 for nonmembers.

INFORMATION/REGISTRATION »

brenda@centralexchange.org or www.centralexchange.org or (816) 471-7560

14 ECJC’s Marketing Series: Content Marketing Strategies Natalie Stezovsky of Influence & Co. will show you how to brainstorm, plan and execute a content marketing campaign.

Presented by the Enterprise Center of Johnson County and the Sprint Accelerator.

Sprint Accelerator, 210 W. 19th Terrace, Kansas City, Mo. 11 a.m.–12:30 p.m. $15. www.bit.ly/2ajwF2t or (913) 438-2282 or www.ecjc.com INFORMATION/REGISTRATION »

Winning Federal Research Grants: SBIR and STTR Workshop Get expert advice on winning federal SBIR and STTR awards to fuel your technology-based business. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 11:30 a.m.–2 p.m. $35.

INFORMATION/REGISTRATION »

Pitching to Investors

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

Michele Weigand, managing partner of Focused Perspective, will explain exactly what investors want to see before they put money into your startup. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 5:30–8 p.m. $35.

Command Your Cash

INFORMATION/REGISTRATION »

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

Your company’s financial reports allow you to diagnose problems and identify opportunities, and this three-hour workshop will show you how to read those reports.

UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 5:30–8:30 p.m. $199.

INFORMATION/REGISTRATION »

10 The Riddle of Exporting This daylong workshop will help you get started in international sales. Kansas Small Business Development Center, JCCC, Regnier Center, Room 145, 12345 College Blvd., Ovlerand Park.

8 a.m.–5 p.m. $199, includes box lunch. www.bit.ly/2a52DvF or jaddessi@jccc.edu or (913) 469-3922 INFORMATION/REGISTRATION »

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

15 JCCC Business Basics: Creating Financial Projections You Can Take to the Bank In this workshop, you’ll learn how to “run the numbers”—develop a startup budget, project your financials and determine a break-even point. Kansas Small Business Development

Center, JCCC, 12345 College Blvd., Overland Park. 6–8 p.m. $20.

INFORMATION/REGISTRATION »

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

17 A Taste of Leawood Sample great eats from more than 30 local restaurants, courtesy of the Leawood Chamber of Commerce.

Town Center Plaza (North Side), 5000 W. 119th St., Leawood.

7–10:30 p.m. $55.

INFORMATION/REGISTRATION »

deannag@leawoodchamber.org or (913) 498-1514, ext. 4, or www.bit.ly/2aCDQif

19 The Benefits of a Personal Brand Courtney Cole will talk about the importance of branding and how to put it to work in your small business. Mid-Continent Public Library-Excelsior Springs Branch, 1460 Kearney Road.

6 p.m. Free, but registration is required.

INFORMATION/REGISTRATION »

www.mymcpl.org/squareone

20 The First Steps to Starting a Business Want to start your own company?

This workshop will cover the basics of business ownership, planning and more.

UMKC SBTDC, 4747 Troost Ave., Kansas SMART COMPANIES THINKING BIGGER®

11

K C CA L E N DA R SE PTE M B E R

City, Mo. 9 a.m.–Noon. $75, scholarships available.

12-18

Techweek Kansas City

INFORMATION/REGISTRATION »

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

The Basics of Writing a Business Plan In this workshop, you’ll learn how to build one of the most powerful guides for growing a small company: the mighty business plan!

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

INFORMATION/REGISTRATION »

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

The weeklong celebration of technology and entrepreneurship will feature big-name speakers, informative workshops and the second annual LaunchKC grant competition.

INFORMATION/REGISTRATION »

www.techweek.com/kansascity/

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

INFORMATION/REGISTRATION »

www.bit.ly/2ajvxM2 or (913) 438-2282 or www.ecjc.com

21 ECJC Marketing Series: Growth Hacking 101

Funding Options for Your Business

Doug Allen, CIO of the Nelson-Atkins Museum of Art, explains how companies like Dropbox and Airbnb exploded thanks to growth hacking—and how you can, too. Presented by the Enterprise Center of Johnson County and the Sprint Accelerator. Sprint

A panel of experts will talk about the best options for funding your business ideas. Presented by Mid-Continent Public Library and Platte Valley Bank, through a grant from the Kauffman Foundation. Platte

What’s Better Than Football Season?

Kicking It Off with a Winning Team!

Valley Bank-Parkville Branch, 8401 N.W. 45 Highway, Parkville. 11:30 a.m. Free, but registration is required.

INFORMATION/REGISTRATION »

www.mymcpl.org/squareone

22 Asian American Chamber Golf Tournament Deer Creek Golf Club, 7000 W. 133rd St., Overland Park.

Registration and breakfast at 7 a.m. Shotgun start at 8 a.m. Lunch program at noon.

Individual tickets start at $125.

INFORMATION/REGISTRATION »

(913) 338-0774 or www.asianchamberkc.com or sook_park@asianchamberkc.com

Here’s the Pitch: Techniques That Sell Your Ideas Learn the basics of delivering the perfect presentation to clients, co-workers and other important stakeholders. This workshop will cover the “4-A Way to Communicating.”

Mid-Continent Public LibrarySouth Independence Branch, 13700 E. 35th St. South, Independence. 7 p.m. Free, but registration is required.

Call for ALL Your Office Support MVP’s Our clients are ALWAYS #1!!

INFORMATION/REGISTRATION »

sign here “Personnel Services with a Personal Touch” For ALL Your Staffing Needs!

Call the Staffing Kansas City Team— Marie, Shelley, Michelle, Ashley or Roses

913-663-JOBS (5627) www.staffingkc.com 12

THINKING BIGGER BUSINESS // September 2016

www.mymcpl.org/squareone

27 Communicating for Leadership Success Learn the behaviors you need in order to coach, delegate and drive change in your business. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 8 a.m.- Noon. $154.

(913) 469-3878 or ceregistration@jccc.edu INFORMATION/REGISTRATION »

Trademark and Copyright Basics for the Small Business Owner This workshop will show you how to protect your business name, logo, content and creative works while respecting others’ rights, too. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 3–5 p.m. $30.

INFORMATION/REGISTRATION »

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

29

Angels. ECJC, 4220 Shawnee Mission Parkway, Suite 350B, Fairway. 11 a.m.–1 p.m. $35 to attend in person (includes lunch) or $15 to livestream.

INFORMATION/REGISTRATION »

(913) 438-2282 or www.ecjc.com

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

INFORMATION/REGISTRATION »

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

ECJC’s Capital Series: The ABCs of Angel Investment Rick Vaughn, managing director of the Mid-America Angels, explains the ins and outs of the angel investing process. This workshop is presented by the Enterprise Center of Johnson County, the Women’s Capital Connection and the Mid-America

JCCC Business Basics: Mastering the Business Plan Get an overview of what every successful business plan should include. An attorney also will talk about the legal structures for small businesses. Kansas Small Business Development Center, JCCC,

16

BIG Breakfast Nourish your body and your business at Thinking Bigger Business Media’s quarterly breakfast. Panelists will include Steve Holle of KC Bier Co., Hailee Bland-Walsh of City Gym and Fred L. Merrill Jr. of Merrill Companies. Kauffman Foundation Conference Center, 4801 Rockhill Road, Kansas City, Mo. 7:30–9 a.m. $25.

INFORMATION/REGISTRATION »

(913) 432-6690 or www.ithinkbigger.com

12345 College Blvd., Overland Park.

6–8 p.m. $20.

INFORMATION/REGISTRATION »

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

Square One Small Business Services at Mid-Continent Public Library local entrepreneurs through access to free information, programs, and opportunity. Our Business Specialists will help you find what you need to compete in an ever-changing market!

Square One Small Business Classes This Fall Small Business Bootcamp: Marketing, Advertising, and Branding Square One Small-Business Services at Mid-Continent Public Library is funded by

Business Basics: Funding Options for Your New Business Building a Social Media Plan for Business Building a Solid Foundation for Opening a Restaurant The Business of Food Trucks Workshop Here's the Pitch: Techniques that Sell Your ideas Business Basics: The Dirty Truth about Social Media Marketing Your Event Online Visit mymcpl.org/squareone for dates of locations of classes at a branch near

Access Small Business

you! All classes are free and open to the public, but require registration.

SMART COMPANIES THINKING BIGGER®

13

BIG | deals

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

20 13

National Praise for TK Architects TK Architects International Inc. earned a spot on Build-

ing Design & Construction magazine’s list of the top 80 architecture and engineering firms in the United States.

The magazine also included TK Architects on a separate list of innovative firms, citing TK’s partnership to design cinemas in the Caribbean and Latin America.

20 15

Sunlite Shines at KU Sunlite Science & Technology Inc. contributed some of

its LED fixtures to the new School of Business Building at the University of Kansas.

20 14

RESULTS Ranks Among Best MSPs RESULTS Technology has received a top ranking on a

new list of the nation’s best vertical-market managed service providers (MSPs). The list, which was published

by After Nines Inc.’s Channel E2E, put RESULTS Technology at No. 1 among Kansas MSPs and No. 2 among Missouri providers. RESULTS was spotlighted for its skill in assisting the banking industry.

20 12

2 Workplace Honors for Affinis Affinis Corp. recently achieved two

honors related to how the company treats its team. The company was included on the Zweig Group’s 2016 Best Firms to Work For list. And it won the When Work Works Award, which recognizes effective, flexible workplaces.

20 02

American Century Taps Meers Meers Advertising has landed a major deal with American

Century Investments. Meers will serve as the asset management firm’s agency partner for brand advertising, which will cover client marketing, strategy, creative, channel services and more.

20 12

New Greek Distribution for InnovaPrep InnovaPrep has signed a distribution partnership with

Malva S.A., which will represent InnovaPrep’s products in Greece.

Malva provides equipment for analytical and qualitycontrol laboratories.

14

THINKING BIGGER BUSINESS // September 2016

Big Boost for Rx Savings Solutions Blue Cross and Blue Shield of Kansas City is now working with Rx Savings Solutions (Thinking Bigger Business cover story, February 2015) to make the young company’s service available to its members. Rx Savings Solutions helps users find the lowest price for their prescriptions.

AWARDS/RECOGNITION Ventana Café, Restoration 1894 Win Downtown Awards Several local companies and groups won Downtown Revitalization Awards from Missouri Main Street Connection. Ventana Café of Excelsior Springs was named the Business of the Year while Liberty’s Restoration 1894 took home Best Façade Rehabilitation. Blue Springs Downtown Alive!, Kearney Downtown Revitalization Group and Donna Furr of Downtown Lee’s Summit Main Street also were recognized.

FINANCING Cox Invests in Unite Private Networks Kansas City’s Unite Private Networks has received a strategic investment from Cox Communications. The size of the investment wasn’t disclosed, but industry media describe it as being large. Unite provides fiber-based communication networks to hospitals, enterprise businesses, schools and other clients.

Fishtech Invests in OP’s Foresite Foresite, an Overland Park IT company specializing in security and compliance solutions, has scored a $3 million investment from local technology accelerator Fishtech Labs. Fishtech’s CEO, Gary Fish, and his co-founder, Dan Thormodsgaard, will join Foresite’s board.

M&A New Owner for InStore Design Display, Clear Impact Edge Capital Holdings has acquired InStore Design Display and Clear Impact Acrylics. Randy Edge, who owns Edge Capital and is the former CEO of Citizens Bank, will now become the president and CEO of the two companies, which will be consolidated.

ON THE MOVE Room to Grow for Nature’s Own, Structurflex Nature’s Own Heath Market is opening a second location, this one in River Market. It’s going to be part of a redevelopment project at 414 Oak St. by Iconic Development. The mixed-use project will feature Structurflex as its lead office tenant.

Shelby Herrick Headed to Westwood Shelby Herrick Salon is planning to relocate from Fairway to Woodside Village in Westwood. The move should take place early next year.

Second Location for Premier Learning Premier Learning Early Childhood Education has opened a second

location at 72nd and Metcalf in Overland Park. It continues to operate its original location at 91st and Mission Road in Prairie Village.

NEW BUSINESS Crown Point Tavern Opens for Business Crown Point Tavern is a new restaurant serving craft food

When I grow up I want to be

Branding

.

EAG14-041 TBBM Ad v2.indd 2

Design Digital

25 Under 25® Class of 2007 12/17/14 10:17 AM

and craft beer in Kansas City’s Northland.

It’s located at 2631 N.E. Vivion Road.

OTHER BUSINESS Doughnut Lounge, Filling Station Team Up The Filling Station will now sell Doughnut Lounge doughnuts at all its locations here in Kansas City. The Doughnut Lounge is also collaborating with Messenger Coffee Company, which owns The Filling Station, on a house espresso blend for the doughnut shop’s customers.

Vikings Hire Crawford Architects Crawford Architects has been tapped to design a new training facility and headquarters for

the Minnesota Vikings. The project will be built just south of St. Paul. It will include a 6,000-seat stadium, indoor and outdoor practice fields, administrative offices, meeting rooms and a broadcast studio.

Construction should be completed in the next 20 months.

ER Hits 15-Year Point, Announces Big Moves ER Marketing is celebrating its 15th anniversary by adding four new employees, expanding its office space and creating a new team for PR and content strategy.

Kate O’Neill Rauber is joining the firm as a vice president.

U.S. Olympic Committee Hires Athlete Network Lenexa startup Athlete Network—which offers an online networking platform for athletes—has just signed a three-year contract with the U.S. Olympic Committee’s Athlete and Career Education Program.

KC Crew Courts Volleyball, Kickball Players KC Crew, the organizer of several recreation leagues, has partnered with Port KC to create sand volleyball courts and kickball fields along the downtown riverfront.

skylineE3.com 913.599.4787

SMART COMPANIES THINKING BIGGER®

15

AT A G L A N C E

RESEARCH + TRENDS | THE ‘I’ IN DIET

BOOK REPORT

Mini-Pies, Maximum Results

Great Teams: 16 Things High Performing Organizations Do Differently

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// DON YAEGER

Why do some organizations consistently outperform the competition? Don Yaeger—the New York Times bestselling author of “Greatness: The 16 Characteristics of Greatness”—looks at the habits of top-performing sports teams and businesses. Step one? They understand their “why.”

desserts as a way to court customers who need greater control over what and how much they eat. Sales volume for mini-pies alone grew 54.8 percent last year. » It’s part of a larger trend toward personalization. Stores are doing better with “value-added” fruits and vegetables (pre-washed, pre-cut, seasoned items) than plain old produce.

BY THE NUMBERS | PUBLIC OPINION

Prestige Factor

90% doctor

65%

74%

PRESTIGE VALUE OF OTHER CAREERS

A MAJORITY RESPECTS THE WORK ENTREPRENEURS DO.

83% scientist

65% teacher

32% real estate broker or agent

of American adults see being an entrepreneur as prestigious

would encourage a child to become an entrepreneur

31% PR consultant SOURCE // The Harris Poll

16

THINKING BIGGER BUSINESS // September 2016

MADE TO LAST | EAGLE PRODUCTS

BIG STARTS | GIGABOOK

Eagle Products Soars With Souvenirs

A Calendar That Can Think for Itself

The KCK company produces printed apparel for the entire nation.

Local startup GigaBook helps automate booking for businesses.

Did you buy a souvenir T-shirt during your summer vacation?

There’s a better-than-decent chance it came from Kansas City, Kan. For 50 years, Eagle Products has produced shirts, caps and other printed apparel for gift shops, resorts and other tourist-based retailers across the country.

STARTUP // GigaBook

EAGLE’S ORIGIN

Jack Carduff and his family started Eagle back in 1966.

Originally, it was a franchisee of the Colorado-based Spoofer Shops. The franchise died one month after Carduff opened for business.

So he did what any good entrepreneur would: He hustled.

He found new vendors. He hit up new clients (pretty much every fraternity and sorority in Kansas and Missouri) and developed new products. T-shirts with the peace sign, flower power and other “hippie designs” were hot sellers.

EAGLE’S FUTURE

David Rockey bought Eagle Products from Jack’s kids about two years ago. He’s made a major investment in equipment and moved Eagle from the Crossroads to Armourdale.

Rockey, who previously owned a Wichita-based transportation company, was looking for a new business, and what the Carduffs had built fit the bill. “It had a good brand in the industry, good people in place, long-term customers.”

Eagle endures because it executes at a high level. “The pillars of success are customer service, design, quality prints, sharp pricing and doing it in a timely fashion,” said Rockey.

ENTREPRENEUR //

Matt DeCoursey HOW IT WORKS

GigaBook lets customers visit their favorite company’s website to schedule appointments—without anyone at the business having to dig out a calendar to confirm.

It’s all automatic.

GigaBook has other useful features, too, including to-do lists, automated reminders and more.

THE INSPIRATION

A few years ago, DeCoursey needed to take the family dog to the groomer, but couldn’t reach anybody on the phone. “I kept thinking, ‘Why can’t I book this online?’”

A lot of small business owners hate scheduling, aren’t good at it and (in some cases) might be elbow-deep in a dog grooming tub, DeCoursey said. “And here’s the phone ringing. This person just can’t get there.”

WHO’S IT FOR?

Small and medium-size businesses, especially service-based companies. Clients range from baseball academies to home inspectors, from art schools to colon hydrotherapists.

THE ADVANTAGE

As a serial entrepreneur, DeCoursey actually understands the hassles of running a small business. He roots out inefficiencies and time sucks that other software developers miss. Customers say they save 10 to 15 hours a week.

WHAT’S NEXT

GigaBook’s team is adding more integrations, so their software will talk to QuickBooks, Uber and other services.

SMART COMPANIES THINKING BIGGER®

17

AT A G L A N C E

BIG INFLUENCE | YOU!

SOMETHING TO CHEW ON

From College Educations to Pet Adoptions, You’re Making a Difference Usually, the Big Influence column looks at a specific entrepreneur who’s made an impact through philanthropy or a professional organization. But this month, we’re celebrating the difference that you—yes, you!—make by simply operating your company.

Lead Bank has created a new online calculator that shows how many mortgages, college educations and even pet adoptions your company supports. You might be surprised how wide your influence is.

Just visit www.lead.bank/growhome. You’ll be asked a few basic questions about your company’s size and location, and you can sign up to receive a more detailed report on your impact.

Thinking

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THINKING BIGGER BUSINESS // September 2016

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What’s your favorite restaurant for business meetings and client lunches? Email us at editor@ithinkbigger.com.

C O M PA N Y T O WAT C H

VIRTUTECTURE

Virtutecture’s Vision for Virtual Reality This KC startup brings building designs to life.

ENTREPRENEURS

Tracy Ford and Tanya Jana-Ford COMPANY INFORMATION

Virtutecture 3101 Mercier St. Kansas City, MO (816) 301-1909 www.virtutecturellc.com TYPE OF BUSINESS

Virtual-reality renderings for architects, engineers and real estate pros YEAR FOUNDED

2013

A

rchitects, engineers and designers are known for their creativity, but they’re often challenged on how to show their work to clients before it is built.

Tracy Ford has created a company that can do just that. Ford, an architect himself, started Virtutecture three years ago with his wife, Tanya Jana-Ford—also an architect—to provide others with a helpful tool.

“We make virtual-reality simulations for architecture, engineering and real estate, so people can walk through buildings before they are built,” Ford said. “We work directly with our clients, and we take their 3-D models into a realtime simulation using video game technology.”

Virtutecture was among the top 20 finalists for last year’s LaunchKC grant competition. The young business has landed a list of clients that includes Sprint, Commerce Bank, ACI Boland and Yaeger Architecture.

Ford has been into computer technology since his youth. During high school and college at Kansas State University, he ran a computer repair business while creating video games of his own and pursuing a master’s in architecture.

With Virtutecture, Ford said all his interests “merged together.” He decided to launch the business on his own right after college graduation.

“After three to four months, I discovered it was too early, so I actually started at an architecture firm to learn more about the business,” Ford said.

He is on the full-time staff of TK Architects, where he does 3-D aspect work.

“I am still at the firm during the day, and I do this in the evening,” Ford said. “They have been great about giving me time off to do presentations. … I never stopped working on this on the side.”

It takes less than a week to complete most projects, Ford said. As for cost, “it varies depending on the project—customization, size and complexity.”

Ford is particularly excited about Virtutecture’s application in the real estate arena, where he can do 3-D mapping of a home. It can generate a complete floor plan of a house in detail and allow buyers to see things as they actually are in reality without leaving a computer screen.

“The thought behind it is to speed up the looking process,” Ford said. “We were looking for a home last year, and here we are two architects, and we probably went through 100 homes. … If I had something like this, I could have weeded out lots of houses that I would never have bothered with.”

Ford is hopeful that by the end of 2016 he will be able to focus his efforts full time on Virtutecture.

“I would like to expand and be one of the main providers for this service,” Ford said. “I think it is going to be the future for architectural renderings.”

Ruth Baum Bigus is a freelance writer based in Kansas City.

SMART COMPANIES THINKING BIGGER®

19

KC MADE IT

( by James Hart )

group. She consulted Soper, who’d worked with her as a graphic designer for a church.

Together, they’ve produced framed art featuring Bible verses and note cards with encouraging messages on the front.

Christian apparel and décor isn’t a new market, but Etch approaches it with lighter, hipper designs. They feel less like something from your great-grandmother’s house and more like what you’d find in a young family’s home.

‘JUST DO IT’

ETCH, A CHRISTIAN LIFESTYLE BRAND FROM LIBERTY, REACHES THE ENTIRE COUNTRY.

Well Versed n the surface, what local lifestyle brand Etch does is pretty simple. The company designs and sells Christian-themed T-shirts, journals and other items.

But the founders have a much deeper vision: They want to help make Scripture a regular presence in their customers’ day.

“We’re more than just product,”co-founder Carrie Flener said. “We really bring God’s

O

ENTREPRENEUR

Kelsey Adams, Carrie Flener, Kimberly Reid and Terri Soper COMPANY

Etch Liberty, MO info@myetchedlife.com www.myetchedlife.com TYPE OF BUSINESS

Christian lifestyle brand

20 THINKING BIGGER BUSINESS // September 2016

word into every part of their lives.” Flener’s business partners include Terri Soper, Kimberly Reid and Kelsey Adams.

It’s been one year this month since they launched Etch, which is an acronym: Every Thing for the Christ-centered Heart.

Their coffee mugs, jewelry and other products are available nationally through retailers like LifeWay, Family Christian and Hallmark. Etch also sells through its website.

Even better, the majority of those items are produced by manufacturers right here in Kansas City.

HIP, HOPEFUL DESIGNS

The seed of Etch started with Adams.

She studied the Bible every day with her two daughters, but she didn’t want to compartmentalize their faith to a few minutes in the morning. What if she could create visual reminders that could inspire them throughout the day?

Adams started talking it over with Reid and Flener, who belonged to her Bible study

Besides their faith, the Etch founders had something else in common: a perfectionist streak. They spent months and months researching their business plan and sweating over the details.

It led up to a meeting with their husbands, who listened to their pitch. It was a fantastic idea, the men agreed. Their only question: Why haven’t you already launched? “They all sat there and looked us in the eyes and said, ‘Just do it,’” Flener recalled.

Adams and Soper concentrate on the design work while Flener and Reid focus on sales and distribution.

Etch’s founders are all equal partners in the company—something that most business experts don’t recommend. “A lot of people said, ‘How are going to make that work?’” Soper said.

Luckily, each had owned a business before Etch. Plus, their friendship and common faith have kept them all on the same page.

“That unity between the four of us helps us to make better business decisions,” Soper said.

WHAT’S NEXT FOR ETCH?

The founders plan to pursue more national retailers, Reid said. They also want to get their own physical space, and not just for office and inventory. They can see themselves hosting pop-up shops and community events, too.

Don’t expect it to stop there. “I think we were a little bit naïve that we could set a goal and we’d reach our goal and we’d be content,” Adams said.

She believes God has bigger things in mind for their business. “We’re never going to fully arrive.”

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KC FUTURES

( by James Hart )

Showing the Interns Who’s Boss THEY ARE—OR THEY SHOULD BE, IF WE WANT A STRONG KC ECONOMY. ummer is a fond, fading memory for Kansas City’s college interns, who’ve already returned to campus for the fall semester. But Jessica Nelson hopes they’ll remember KC when they eventually graduate and start looking for jobs.

Nelson is the managing director of TeamKC, an initiative of the Kansas City Area Development Council. Nelson and her team help companies across the metro attract talented employees to Kansas City.

This summer, that meant hosting a series of events and meetups for nearly 5,000 interns, including a night out at Children’s Mercy Park, a social at Leinenkuegl’s in the Power & Light District and a panel featuring young professionals on the benefits of building a career in Kansas City. About 60 employers participated in the summer-long campaign, nicknamed InternKC. Were the get-togethers fun? Yes. But a very serious purpose was driving InternKC. Kansas City, Nelson said, is “in a global race for talent.”

S

22

THINKING BIGGER BUSINESS // September 2016

THE COMPETITION FOR MILLENNIAL EMPLOYEES

Kansas City is highly livable, but local job recruiters say their No. 1 obstacle is candidates’ lack of familiarity with the city. “It’s a lack of perception,” Nelson said. “People don’t know about Kansas City.”

Even with a World Series win, too many out-of-town workers don’t know anything about the area. Recruiters have found that, if they can actually get someone to travel here and experience the city and its restaurants, clubs and other attractions, to have an “epiphany of the visit,” it’s more likely that candidate will say yes to a job offer.

InternKC represented something of a short-cut: The talent was already here.

TeamKC just needed to get the interns out into the community and showcase Kansas City’s best features.

The interns were mostly Millennials.

While this age group was hurt badly by the Great Recession, with above-average rates

of unemployment and mountains of college debt, they’re going to assume even greater importance to the economy.

You may have heard the factoid that, on average, about 10,000 Baby Boomers hit retirement age every day. Generation X alone isn’t big enough to fill the open positions—that demographic is 20 percent smaller than the Boomers.

The number varies a little depending on the source, but experts expect Millennials to constitute about half of the U.S. workforce by 2020.

Growing companies need people to staff their expansion efforts. Corporations won’t locate their headquarters in a metro unless it’s home to a deep talent pool.

The metros that fall behind on talent ultimately fall behind in other ways.

MAKING PEOPLE FEEL AT HOME

TeamKC has developed resources that local employers can use to help close the deal with potential hires.

TeamKC’s KC Career Network is a good example. Let’s say Company A has hired John Smith, but John’s spouse is going to need a job, too. KC Career Network will share the spouse’s resume and information with other employers.

TeamKC has developed a free Talent Toolkit for the KC Rising initiative that any employer can use to court potential employees. Check it out at www.kcrising.com/talent-toolkit.

Join Us! Introducing Brew :30, a quarterly Happy Hour event where you can meet new business owners, make valuable connections and discover some of Kansas City’s local wineries, breweries and distilleries!

Companies on Tap » FireBoard Labs // Ted Conrad and Steven Briggeman » Vino Pair // Michael and Mindy Kearns » Virtutecture // Tracy Ford and Tanya Jana-Ford

Details Thurs., Oct. 13, 2016 // 5:30-7:30 p.m. $25, includes two drink tickets, heavy hors d’oeuvres Cinder Block Brewery, 110 E. 18th Ave., North Kansas City, Mo.

sponsored by

R SV P TO DAY AT W WW.ITHIN K BIGGER.COM | (913 ) 4 3 2 - 6 6 9 0 FO R SP O N SO R SH I P O P P O R TUN I TI ES

The

Descendants Ewing Kauffman and Marion Labs inspired a generation of KC entrepreneurs.

BY JAMES HART PHOTOS COURTESY OF THE EWING MARION KAUFFMAN FOUNDATION

This month marks the 100th birthday of the late Ewing Marion Kauffman, one of the most influential business leaders that Kansas City has ever produced.

That legacy started with pharmaceutical giant Marion Labs, but grew to encompass the Kansas City Royals, the Kauffman Foundation and a wide range of philanthropic projects. Ewing Kauffman is Exhibit A for the positive impact that an entrepreneur can exert on a community.

24 THINKING BIGGER BUSINESS // September 2016

But there’s one facet of his story that doesn’t always receive as much attention: Many of Marion Labs’ associates would go on to create or staff other high-growth companies.

A few years ago, a researcher with the University of Bern in Switzerland, Heike Mayer, built a “genealogy” of Kansas City’s technology companies and the organizations that helped spawn them— organizations such as Cerner, Sprint, MRI Global and, yes, Marion Labs.

Compared to places like Boston and Silicon Valley, where most innovations can be traced back to their region’s research institutions, more Kansas City tech companies had their roots in the city’s large employers, Mayer found.

She discovered more than 20 companies, not counting the Kauffman Foundation and its programs, that had Marion ties. The only other company with as many offspring was Sprint.

Many of Marion’s descendants are pharmaceutical companies, naturally—that was Kauffman’s expertise. But his entrepreneurial heirs include technology companies, too, and marketing firms and consulting businesses and small manufacturers.

Case in point: TrippNT, a Northland business that makes carts for the world’s leading labs, was founded by Susan Tripp, a former Marion chemist. American Stair-Glide, an early Marion acquisition, produced electric SMART COMPANIES THINKING BIGGER®

25

chair lifts for the home. (It was later bought and eventually closed by ThyssenKrupp.)

Several of these companies have changed hands over the years—often for highdollar sums. EPIQ Systems, a creator of legal software, is set to be acquired in a $1 billion deal announced this summer. Leawood-based Enturia and its ChloraPrep products sold for $490 million in 2008.

Many are still growing. Pharmaceutical marketing firm Intouch Solutions now employs a team of more than 650 people and regularly wins industry awards for its work.

Teva Neuroscience, whose solutions help fight multiple sclerosis, continues to employ hundreds of people locally.

MARION LABS’ DNA

Marion Labs didn’t just inspire the creation of new companies. Marion also affected how its former employees would operate their own businesses. Several Marion alums said they patterned their workplace culture on Kauffman’s.

“Ewing Kauffman had ways to really influence performance through culture, and that’s sort of lost in so many ways today,” said Jim Laufenberg, the president and CEO of IGXBio, a local company that is developing immunotherapy solutions to fight HIV. Laufenberg grew up at Marion Labs; he joined the company when he was just 23.

So when he left in the mid-1990s, he experienced a little culture shock when he realized that most organizations don’t function as well as Marion did.

At Marion Labs, there was a sense of trust and belonging— everybody was in it together.

“This culture was there,” Laufenberg said. “It influenced honesty and commitment and integrity.”

People trusted Kauffman because he practiced two basic leadership habits. One, treat others like you want to be treated—follow the Golden Rule, basically.

And two, those who produce the results should share in the rewards. Early on, Marion Labs instituted a profit-sharing plan that was very progressive for its time and industry.

When the company sold, more than 300 employees became millionaires.

Sharing the rewards doesn’t always mean money—it can also translate to giving others 26 THINKING BIGGER BUSINESS // September 2016

credit. Laufenberg remembers the time that Kauffman came up to him at an event and presented him to some other guests. “He introduced me: ‘This is Jim, and he helped me build this company.’”

Kauffman would send handwritten thankyou notes, said Barb Geiger, a former Marion Labs associate who would later start her own contract research organization, Worldwide Clinical Research.

Today, Geiger is an executive vice president with Clinipace Worldwide, which her company merged with about seven years ago.

Clinipace employs approximately 700 people around the globe.

Kauffman’s notes left a huge impression on Geiger: “This was the head of the company that took the time to do that.” She still makes a point of writing out her own thank-you notes.

Faruk Capan, the founder of Intouch Solutions, credits a lot of his company’s success to the leadership lessons he learned at Marion Labs. When he started Intouch from his home with a single employee, he knew he wanted to emulate Kauffman’s commitment to customer service.

“I fell in love with the culture of the company,” Capan said. “He was a really down-toearth person as a leader.”

Because of his Marion ties, “I’ve been helped many times in the business,” Capan said, “really helping me open doors or make introductions.” Case in point: Capan received training through the Helzberg Entrepreneurial Mentoring Program, which was founded by Barnett Helzberg Jr.—who was himself mentored by Ewing Kauffman.

WHY SMALL BUSINESSES NEED COMPANIES LIKE MARION

The success of the Marion Labs alumni isn’t just a feel-good story. The company is also a useful lesson for communities that want to encourage more startups and highgrowth businesses.

It’s one of the counterintuitive facts of entrepreneurial ecosystems: If you want to see more startup businesses in your community, it helps if you already have some big established firms (like Marion Labs) to be active players.

Peter Cohan, a lecturer on strategy at Babson College in Wellesley, Mass., refers to them as “pillar companies.” These are large, local companies, ones that are usually traded

publicly. They invest in early-stage startups, become their customers and, in some cases, end up acquiring them.

Just as important, pillar companies create a surplus of talent in a community, Cohan said. They hire and train people who help the pillar company grow—and who eventually go off to start businesses of their own.

“I think a key reason why so many pillar companies are effective is the kind of people they hire,” Cohan said. “They basically learn how to create businesses.” (All big employers aren’t automatically pillars, he added—a large employer that insists on overly restrictive noncompete agreements could essentially bottle up a region’s supply of potential founders.)

But, if you put enough talented, entrepreneurially minded people together, amazing things can happen.

“The social network is a critical asset in business creation,” said Randy Schwering, an associate professor at Rockhurst University’s Helzberg School of Management.

MARION LABS’ FAMILY TREE Several companies have or had ties to Marion Labs. Either their founders were Marion alums, or they worked in key roles. Other companies were Marion acquisitions. Here are a few:

ACCELERATION LABORATORY SERVICES // Contract services provider for pharma research, animal health and nutriceuticals. Based in Lee’s Summit.

ADVANCED RESPONSE MANAGEMENT // Offered medical information services to pharmaceutical and biotech companies. Became part of the ProPharma Group.

AIRPHARMA // Created treatments for asthma. Later became a subsidiary of Meldex International.

Just look at Cerner, said Jeffrey Hornsby, director of the Regnier Institute for Entrepreneurship and Innovation at the University of Missouri-Kansas City. The company’s founders started kicking around business ideas on walks during their work breaks from Arthur Andersen.

“When you hire people with an entrepreneurial mind-set, especially in this day and age, there’s a lot of synergy that happens,” Hornsby said.

Only a minority of entrepreneurs—maybe 25 percent—go directly from college to launching a startup, Hornsby noted. Most founders get 9-to-5 jobs with larger companies so they can pay off debt, save up money and learn how business works in the real world.

Of course, it’s possible for larger companies to hold onto many of these would-be founders by engaging them in “corporate entrepreneurship.” In those cases, the company has taken an idea or a piece of R&D and tried to build a business unit or even an entire company around it.

That’s how Laufenberg got one of his earliest tastes of startup life. He was part of a small team at Marion that launched an artificial-skin product. The team had to develop pitches and seek out resources from an investor—in this case, the parent company.

“The things that entrepreneurs do,” Laufenberg said, “we had to do within the company.”

When a region’s business environment is healthy, it looks a lot like a well-functioning ecosystem. Diversity and flexible connections keep the system resilient and adaptable to change and new opportunity. Big companies lead to the birth of new small businesses, a few of which will become major employers. Those lead to more new businesses, and the cycle continues.

“You’re not going to get the next large company unless you get the small company and the startup,” Hornsby said.

BECKLOFF ASSOCIATES // Created to help pharma companies bring their products to market faster. Acquired by Cardinal Health.

CYDEX PHARMACEUTICALS // Developers of Captisol, which boosts the solubility of certain drugs. Acquired

by Ligand Pharmaceuticals.

KALO LABORATORIES // Develops solutions for crops, golf courses and more. Acquired by Marion in 1968, became an independent company in 1981.

PHARMION // Developed cancer and hematology treatments. Acquired

by Celgene.

TRANSPARENT SOLUTIONS // Designs and builds Web applications.

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

27

KC ENTREPRENEUR

Fred L. Merrill Jr. and Merrill Companies are building one of KC’s most ambitious developments.

THE PEOPLE BEHIND

PRAIRIEFIRE ENTREPRENEUR

Fred L. Merrill Jr. C O M PA N Y I N F O R M AT I O N

Merrill Companies LLC 6240 W. 135th St. Overland Park, KS 66223 (913) 338-3800 www.merrillcompanies.com TYPE OF BUSINESS

Commercial investment and real estate services YEAR FOUNDED

2000 E M P L OY E E S

16 K E YS T O S U C C E S S

Think years ahead to stand out.

right // Senior VP Kim Cronan; VP Fred

C. Merrill; President Fred L. Merrill Jr.; Chris McIntyre, executive VP; principal Candy C. Merrill; CFO Diane Bolzan

B

lueprints and colorful poster-size images of buildings cover the walls of a conference room in Merrill Companies’ offices.

The pictures form a patchwork quilt of the commercial real estate firm’s projects, past and present. It has successfully managed developments in Dallas, Washington D.C., Phoenix and Scottsdale and, closer to home, in Mission, Leawood and Overland Park.

One of its biggest is Prairiefire. It’s been a decade since the mixeduse development won approval from city leaders. The project, which opened in 2014, has brought a lively mix of shops, restaurants, apartments and offices to Overland Park’s 135th Street corridor. Prairiefire’s final phase of construction is scheduled to be completed by the summer of 2018.

“We have been working on Prairiefire for 10 years,” said Fred L. Merrill Jr., the firm’s president. “It is an accumulation of ideas from projects in the Dallas, Phoenix, and Washington, D.C., markets.”

Merrill envisioned Prairiefire as a project tailored to Johnson County, one that could contribute to reshaping Kansas City’s identity as flyover country and become a regional draw. After devising a half-dozen prototypes, Merrill Companies arrived at a bold idea: The development would

28 THINKING BIGGER BUSINESS // September 2016

include the Museum at Prairiefire as the nation’s first location for hosting traveling exhibitions of New York’s American Museum of Natural History.

“I wanted a civic component,” Merrill said. “By bringing in the museum, we created a regional attraction that was also community-based.”

Prairiefire also meets a growing demand for denser developments that allow people to live, work and play in the same area. It’s the same approach that visionary developer J.C. Nichols used to guide the creation of the Country Club Plaza.

“Now, people want more efficient living,” said Merrill. “By working with city planners, we could bring those uses back together.”

THE MOST ADAPTIVE ENDURE

If there’s one thing Merrill has learned over the course of his career in commercial real estate, it’s this: Not everything always goes exactly to plan. Successful entrepreneurs learn to adapt.

Over the past two years, consumer buying patterns have changed. So this summer, Merrill Companies announced a revision to its development plan for Phase Two of Prairiefire. About 130,000 square feet of office, retail and apartment space was trimmed from the project.

But this wasn’t the first time that Merrill Companies has updated the Prairiefire plan to respond to market conditions.

by Pete Dulin // photography by Dan Videtich

RESTAURANTS, RETAIL AND MORE One of Prairiefire’s crowning jewels is the Museum at Prairiefire, the first place in America to host traveling exhibitions from the American Museum of Natural History.

SMART COMPANIES THINKING BIGGER®

29

“This is the fifth revision since we started the project 10 years ago,” said Merrill. “We want to finish the project so the original concept can be completed as closely as possible.”

To predict future demand, Merrill and his team have to analyze how fast tenants are signing leases for upcoming openings. “In addition to our pre-leasing, we must attempt to forecast what economic conditions will be in approximately two years when the project is complete,” he said.

Forecasting is one of the most vexing aspects of commercial real estate. Past performance doesn’t necessarily reflect what will happen next.

“The cyclical nature of real estate is what I like least in this

business,” said Merrill. “My dad was in flour milling, an inelastic business. Real estate can be good when demand and market conditions are there.”

Like anything, the more experience you acquire, the better you perform.

“It took me going through a couple of recessions to understand and to think years ahead,” said Merrill. “As you get older, you learn better ways, but the economy is always changing.”

TEAM MERRILL

Merrill is originally from Wichita. He graduated from Kansas State University and earned an MBA at Southern Methodist University in Dallas.

Young and full of energy, he launched a commercial real estate career in that bustling Texas city.

30 THINKING BIGGER BUSINESS // September 2016

Kansas City wasn’t as attractive back in the ’70s and ’80s—the city was a less dynamic real estate market—and Merrill remained in Dallas for 12 years.

He moved to Kansas City in

1998 to help with his father’s business and established Merrill Companies here two years later.

“Kansas City has changed dramatically,” said Merrill. “Now the

“She and I discuss plans 24/7.

She’s driven like me,” Fred Merrill Jr. “Our relationship is synergistic.”

Prior to starting a design firm, Candy Merrill pursued a career in competitive synchronized swimming. She won a gold medal in the 1984 Los Angeles Olympics.

Since 2007, executive vice president Chris McIntyre has been the head of property management.

“He’s the best property management executive in the Kansas City area,” Fred Merrill Jr. said.

McIntyre gained much of his 35 years of experience working

cated and capable,” the elder Merrill said. “Because real estate is cyclical, it’s better to have a small group and hire outside services” rather than hire and fire a larger workforce.

BETTER THAN 50 PERCENT

Reflecting on Prairiefire and the commercial real estate market at large, Merrill stated, “It’s been the most challenging time for retail in my 35-year career.

The economy has been in a slow-growth

“ It took me going through a couple of recessions to understand and to think years ahead.”

Fred L. Merrill Jr. // owner, Merrill Companies

next wave is led by tech companies like Cerner and Fishtech Labs. Downtown growth has spread. It’s a progressive time in Kansas City.”

Merrill Companies has endured for 16 years in part because it offers a wide range of services. Those other lines of business have steadied the company during down economic cycles. Beyond development, the company has expertise in property and asset management, as well as investment and sales.

The other key to the company’s long-term success? Great personnel.

Merrill’s wife, Candy C. Merrill, is an essential partner who leads real estate marketing plans, event planning, corporate identity program development and special attractions at Prairiefire.

with Cohen-Esrey before Merrill recruited him. Now McIntyre manages the company’s own properties as well as those belonging to third parties.

With more than two decades of experience, senior vice president Kim Cronan joined the company in 2007 as a senior property manager. Previously, Cronan managed 600,000 square feet of office and retail properties in south Johnson County for clients such as RED Development, the Peterson Companies and others.

CFO Diane Bolzan, who splits time between offices in Phoenix and Kansas City, “brings tremendous experience in the real estate accounting field.”

Long-term relationships are a common thread between Merrill and his team. Merrill’s son, Fred C. Merrill, is also involved in the business, handling leasing and restaurant operations.

“We’re a close-knit group with an office staff that is incredibly dedi-

period. Traditional retail models are changing quickly.”

The shifting retail environment has affected sales at high-end luxury stores over the past five years. “It’s ushering in a new era of value-oriented retail purchases via the Internet and brick-andmortar stores,” Merrill said.

In response, developers have to be sensitive to the rapidly changing needs of retailers as they redesign for the future.

For mixed-used projects like Prairiefire, it’s key to involve investors, lenders, developers and city officials.

“Real estate is an elastic business,” said Merrill. “You have to think ahead to stand out.”

Because of the unpredictable nature of real estate, he advised that a developer must “be better than 50 percent right” in order to survive. Minimizing losses from external factors is important.

“You can be on time, on budget and financed properly,” Merrill said. When recession asserts itself, “sometimes you

can’t do anything in those markets but go into survival mode.

You try to protect investors and lenders, and wait and see. The market won’t go down forever.”

Merrill counts himself fortunate when faced with past downturns. “I try to structure deals to mitigate the downside and protect us at the same time,” he said.

“When it happens, it happens market-wide. Having visionary, quality investment partners is key.”

‘YOU HAVE TO HAVE THE COURAGE TO START’

As a mixed-use development, Prairiefire relied on a public-private partnership that involved the city of Overland Park. The city approved $13 million in bonds to support the project, which Prairiefire is paying back with a special 1 percent tax. The Museum at Prairiefire also qualified for nearly $80 million in Kansas STAR Bonds.

“In today’s retail and financial environment, if you want to do something special, then you have to do these partnerships,” said Merrill. “Building costs have risen.

If a project doesn’t have a special attraction (such as the Museum at Prairiefire), then the economics of the project can’t support them.”

Other projects, such as the Power & Light District in downtown Kansas City and the Kansas Speedway in Wyandotte County, “transformed those areas,” said Merrill. And that’s what is going to happen with Prairiefire, too.

“They bring new businesses and taxes to downtown and the suburbs,” Merrill said. “You have to have the courage to start them. A commitment is needed by government and developers for a true partnership to make these projects successful.”

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

31

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BIGGER | contracting S M A R T

( by James Hart )

S T R AT E G I E S

New Contracting Opportunity for Small Businesses All small businesses can now qualify for SBA’s mentor-protégé program.

A

new change in federal rules could create a huge opportunity for small businesses interested in federal contracts.

The U.S. Small Business Administration will now make its mentor-protégé program available to all small businesses.

It’s something that used to be open only to participants in the SBA’s 8(a) Business Development Program for socially and economically disadvantaged small businesses.

Thanks to the new rules, the SBA estimates that 2,000 small businesses could form mentor- protégé partnerships—and go on to land more than $2 billion in federal contracts.

Why Are Mentor-Protégé Partnerships Important?

When a small business and another company enter an official, SBA-sanctioned mentor-protégé arrangement, the “mentor” company will provide the small business with management assistance, training, loans, equity investment and other help.

The idea is to help small businesses increase their capacity for tackling bigger projects.

As a result of this partnership, mentors and protégés also have the ability to form joint ventures. Those joint ventures can then compete for any federal set-aside contracts the protégé small business would qualify for. The protégé company must perform at least 40 percent of the work under the contract.

The final rule change was published in the Federal Register in late July and took effect in late August. You can read it at www.bit.ly/2alDwph.

What Else Should Small Businesses Know?

The SBA’s Office of Business Development is creating a unit that will review proposals for mentor-protégé partnerships.

Not only does the SBA have to approve a mentor-protégé agreement, it also has to OK any joint ventures between a mentor and a protégé.

When the SBA sought public comment on the rule, several people were concerned about the agency’s ability to process the volume of applications.

To give itself some breathing room, the SBA will have the power to schedule “open” and “closed” periods for applications. The agency might accept proposals only during certain times of the year.

Joint ventures also must be formalized in writing—something that wasn’t a requirement in the past.

However, mentor and protégé companies don’t necessarily have to create a separate legal entity such as an LLC for a joint venture. A joint venture does have to be listed as a unique entity (complete with its own DUNS number) when registering with the government’s System for Award Management. The protégé also must file annual reports with the SBA. A mentor-protégé arrangement is designed to last three years, though it can be renewed for another three years. A small business can get permission to start mentor-protégé arrangements with two different mentors, so long as there’s no conflict or competition. Both those partnerships can be renewed for a second three-year term.

What Does This Mean for 8(a)?

The 8(a) mentor-protégé program will continue as a separate program for socioeconomically disadvantaged small businesses. Locally, Ken Surmeier with the SBA’s Kansas City District Office is a point of contact for companies interested in 8(a). You can reach him at kenneth. surmeier@sba.gov or (816) 426-4919.

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

33

BIGGER | growth S M A R T

( by Chris Conti )

S T R AT E G I E S

Go For Launch Dodge the most common mistakes when rolling out a new product.

Y

ou’ve got a new product. You’re excited.

You’ve worked out the operational kinks, and you know your costs, as well as your manufacturing and shipping dates.

You’re ready to start selling and profiting from all your work and preparation.

But have you taken all the steps necessary to optimize your potential for success?

Multiple research groups estimate that anywhere from 80 to 90 percent of new consumer products fail in the marketplace, even for companies that

34 THINKING BIGGER BUSINESS // September 2016

ket. But there are certain questions that must be answered before resources are spent on a new product. Most important of which is, “Who will buy it?”

This may seem obvious, but too often businesses are surprised by who their are experienced at launching products. consumer actually is.

How can this be?

Ask yourself what problem your product There are a few mistakes that are all-toosolves for your customer. Once you know often made when what the problem creating, producing is, you can begin to Following the right series of and launching a identify the kind of new product. But consumer who is most steps can maximize success. following the right likely to encounter this series of steps can problem. Start your maximize success focus on people. Is the by bringing to light what others may fail to likely consumer of your new product male see, or not even know to look for. or female? Affluent or middle class? Is the problem seasonal? Regional?

Who Is Your Customer?

For example, if your product is intended First and foremost, you must know your to be used for exercise or athletics, it may consumer target. The mistake a business be that the majority of users of your prodcan make here is its people get so excited uct are high school and college students. about a new concept or invention that they If this is the case, then it is likely not the dive into production assuming demand will student who is spending the money to be there when the new idea hits the marpurchase the product, but her mother.

Has your company been featured in Thinking Bigger Business magazine?

In this case, advertising, packaging and marketing efforts should not be focused on the user of the product, but her mother, who has different opinions, needs and values than the end user. Is the person who buys your product not the end user?

You must become, or find, an expert in consumer targeting.

Who Is Your Competition?

Another common mistake is not knowing who your competition is. A business must conduct a marketplace assessment to see if and how the problem the new product solves is already being solved by other products.

In which stores and websites are these products found? Which departments? And what prices do consumers pay for these items? Is your product worth more? Less?

How does the expected price point affect your margin?

Is Your Product Appealing?

Finally, your new product must be appealing to your newly identified consumer. It must solve the problem in a pleasing way.

Is your product relatively easy to use? Is it comfortable to handle? Is there a prestige factor to your new product? Does it feel high-end, or is it an economical solution compared to other products on the market?

As you tackle the challenge of appeal, you must realize that appeal is subjective.

Do some research with your new consumer, talk to her, ask her these questions and see what opinion trends emerge.

Answering all these questions is essential to the success of the launch of your new product. It will define your price point, your packaging, your advertising targets, your points of purchase, and it will more accurately estimate your sales. Let your consumer fine-tune your product for you, and you will find that the adjustments you make before you launch will create a product tailor-made to their needs. Give your new product the best possible chance to sell, and your business to grow.

Chris Conti is a writer who partners with SoLVE, a Kansas City-based business consulting firm. At SoLVE, Teddi Hernandez and Aviva Ajmera consult with local businesses of all sizes and budgets to help them grow their customer base, develop their brands, and create and implement strategies for all types of products and services.

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35

BIGGER | tech S M A R T

( by Michael K. Higgins )

S T R AT E G I E S

4 Reasons Why Businesses Aren’t Accepting EMV Cards The cards greatly reduce fraud risk, but only 40 percent of retailers welcome them.

D

espite a massive rollout last year, only about 40 percent of U.S. merchants have started using EMV credit card technology.

EMV cards are equipped with a computer chip, unlike old-style credit cards that only have a black magnetic stripe running down the back. As a result, EMV cards are harder for fraudsters to rip off.

Countries that use EMV technology have seen a significant decrease in counterfeit fraud. In the United Kingdom, for example, card fraud plummeted 70 percent between 2005 and 2013, according to Aite Group.

The U.S. credit card industry has decided to make EMV cards the standard

here in America, too. To date, more than 400 million EMV cards have been issued in the United States.

To make adopting EMV technology more appealing—or not adopting the technology more costly—the industry also has shifted the liability for fraudulent payments. Since October 2015, whichever entity—either the issuer of the card or the business accepting the card—has the lesser capability to use EMV chip cards will be liable for counterfeit fraud transactions.

For example, if a store is not set up with EMV equipment and an EMV chip card is

presented for a sale, the business accepting the card is assuming the risk of the counterfeit transaction, not the card issuer.

So with all those incentives, why aren’t more businesses adopting EMV? Here are the four main reasons.

Cost The National Retail Federation estimates that implementing EMV costs retailers an average of $2,000—or $35 billion nationwide. That figure includes the equipment, software and training expenses that come with the new technology. In some cases, businesses have simply deferred the cost if they don’t believe they have exposure to fraud.

Fully compliant EMV stand-alone terminals range in cost from $300 to $350. Businesses should avoid sales groups trying to scare them into adopting higher-priced equipment.

1

Implementation Even at businesses that have invested in chip-enabled terminals, consumers may still be swiping. That’s because those merchants are using point-of-sale software that hasn’t been updated to support EMV. Most software providers should have certified EMV solutions available this year. Even better, in many cases, these will likely include additional security features such as Point-to-Point Encryption (P2PE) and use of tokenization methods.

Businesses should inquire with their software providers to confirm timing of certified EMV solutions and costs.

2

Speed of Checkout Longer transaction times have been a drawback of chip cards. Customers must insert the card into a reader and keep it

3

36 THINKING BIGGER BUSINESS // September 2016

What does EMV stand for?

Europay, MasterCard and Visa—the three entities that came up with the global specifications for EMV technology.

$16 Billion

400 Million +

The worldwide total for debit and credit card fraud in 2014

EMV cards issued in the United States

38% of those losses were incurred by merchants

675,000 U.S. merchants accept EMV cards

SOURCE // The Nilson Report

there until the transaction is complete. It often takes twice as long as swiping the card would. That’s a big problem for many retailers, who need to offer speedy checkouts.

Visa announced in April the launch of Quick Chip for EMV, a technology enhancement that optimizes EMV chip card processing and speeds up checkout times.

The upgrade streamlines the processing of chip card transactions to enable customers to dip and remove their EMV chip card from the terminal, typically in two seconds or less, without waiting for the transaction to be finalized. MasterCard also has announced plans to speed up transactions.

If businesses are experiencing long transaction times, they also should check their network configurations to make sure their systems aren’t part of the problem.

Effectiveness No credit card has proved to be 100 percent secure yet. Still, the chips are a great improvement over magnetic stripes in safeguarding confidential information. MasterCard reported a 27 percent decline in counterfeit fraud at a group of large EMV-enabled retailers.

An even stronger type of chip card is the chip-and-PIN version. Not only do customers have to present a chip card during a transaction, they have to provide a PIN number.

4

SOURCE // Smart Card Alliance

Kansas City SCORE

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

Although these cards are widely used throughout the world, most EMV cards in the United States haven’t required a PIN. For example, Visa lets customers provide a signature instead of a PIN number because the company wants to keep transaction times down.

This has spurred much debate between large retailers and Visa, with retailers noting that PIN-based verification would be more secure and effective. In fact, Walmart recently filed a lawsuit against Visa for allowing signatures rather than requiring PIN. The Future Is Now While there are situations where businesses may argue they have limited to no exposure to retail fraud, most retail business should give serious consideration to adoption.

For one thing, retailers must understand that, as EMV adoption increases, fraudsters will avoid businesses that have adopted EMV—and target those that have not.

With the industry clearly moving toward full-scale adoption of EMV, and with liability for fraud shifting to the merchant, the future of chip-enabled cards is now.

Michael K. Higgins is a founding partner of MSP Consulting. He has more than 30 years of business consulting experience helping clients increase performance and has extensive experience working with businesses to optimize their noncash payments across many industries. mikeh@msp-consulting.net // www.msp-consulting.net SMART COMPANIES THINKING BIGGER®

37

BIGGER | sales S M A R T

( by Deb Calvert )

S T R AT E G I E S

10 Ways to Make Buyers Feel Special Think about what you prefer when you’re a buyer.

W

hy spend time thinking about how to make buyers feel special? Because we all buy from sellers who respect our time, the ones who don’t waste a single minute on irrelevant pitches, mundane questions or rework. We appreciate when sellers

are efficient, coming to meetings on time, prepared and fully engaged.

This doesn’t mean buyers expect sellers to race through the agenda or to “take just a minute of your time” as so many sellers promise when they book an appointment.

What buyers want is to invest the right amount of time to get the value they need.

If, within the allotted time, a seller also creates more value, the buyer feels the return on the time invested is even greater. Sellers

make buyers feel special when they respect their time and work to create value in the time they spend together.

Creating value could be succinctly defined as taking the extra steps needed to let a buyer know he or she is appreciated.

Some specific ways cited by buyers include: 1

The seller took an extra measure of care to check a detail, make a call or follow through on something I was concerned about.

2

The seller anticipated my needs, responding with ideas or asking questions I hadn’t even thought of yet.

3

The seller asked me about when and how to communicate with me and abides by the preferences I outlined.

4

The seller took the time to explain how I could use her products and taught me about best practices in businesses like mine.

5

The seller gave me advance notice about deadlines so I wouldn’t have to make decisions at the last minute.

6

The seller booked meetings directly on my Outlook calendar for me, which was a big help because I was in between assistants.

7

The seller tracked data and ran analysis for me so we could adjust order volume based on the early trend lines.

8

The seller introduced me to someone and networked on my behalf to help me get a firmer foothold in the industry.

9

The seller spoke my language and understood my business. We talked about what mattered most to me.

10

The seller sent me articles and information pertinent to my business.

None of these examples takes much time. And each one creates new value in the buyer’s mind, building trust and loyalty. Just ask quality questions, so you can pinpoint buyer priorities and can create value.

Deb Calvert is the author of the bestseller “DISCOVER Questions® Get You Connected,” from which this article is excerpted, and president of People First Productivity Solutions. deb.calvert@peoplefirstps.com // www.peoplefirstps.com 38 THINKING BIGGER BUSINESS // September 2016

SCALEUP! KC

CASS COUNTY CHOPPERS

Cass County Choppers Hits the Accelerator THIS LOCAL BUSINESS IS REVVED UP FOR EXPANSION, THANKS TO HELP FROM SCALEUP! KANSAS CITY. on Mirick has always tinkered with motorcycles and choppers for fun and work. But it wasn’t until about 10 years ago that his side business—Cass County Choppers—found a niche market converting bikes from two wheels to three.

Mirick’s company sells trike conversion kits for motorcycle owners across the globe.

R

40 THINKING BIGGER BUSINESS // September 2016

The niche has been boosted by aging baby boomers hoping to keep riding the bikes they love, as well as disabled bikers and many others who don’t want to spend $40,000 or more buying a new trike.

Instead, they can convert their own for about $6,000 and up with Mirick’s kit.

Mirick practically stumbled into the market when his dad bought a trike conversion kit for his motorcycle. It wasn’t exactly turnkey. Nothing fit.

“If we didn’t have a machine shop, I don’t know how we would have made it work,” said Mirick, a machinist by training. “We started looking at it and decided we could do better than that.”

PUTTING GOOD IDEAS TO WORK

ScaleUP! Kansas City is offered by the University of Missouri-Kansas City Innovation Center and the U.S. Small Business Administration. It’s available to entrepreneurs who have been in business at least two years, generate $150,000 to $500,000 in revenue and are in a market capable of supporting more than $1 million in sales.

“We thought ScaleUP! would help us to redirect and repath some of the things that we were doing to help our business grow,” Mirick said.

From Day One, he started incorporating the ideas he got from ScaleUP! For him, it meant hiring three employees, including an inventory manager. It immediately freed up Mirick.

“The inventory (was) in my head,” he admitted.

The shop manufactures all the parts for the trike kit, so Mirick spent considerable time just packaging the kit, which is specific to each motorcycle model. It killed half a day.

The ScaleUP! presenters reminded Mirick how desperately he needed to streamline operations and focus on growth.

“My time would have been much more well spent on other things for the overall growth of the company,” he said.

He also hired a production manager and a salesman, who started using social media to expand their reach and stay in touch with existing customers. He considers customers family. It’s crucial that customers sense that feeling, too.

That was 2007, and the business near Pleasant Hill has grown exponentially since.

Now Mirick is turning to ScaleUP! Kansas City to move to the next level. The free program provides classes, peer mentoring, professional guidance and other services to growth businesses.

Mirick, who runs the company with his wife, Gigi, has been assembling and disassembling machines since he was 13 years old at his dad’s business. He knows the trade inside and out. But he isn’t too proud to learn new skills. When he heard about ScaleUP! classes, he knew it was the help he needed as Cass County Choppers faced a major expansion.

“I’m getting wise enough now to know that I don’t know everything,” he said.

‘PROBABLY THE BEST BOSS I’VE EVER HAD’

Most customers receive the conversion kits—which have gone as far as Russia and Australia—by mail and then convert their bikes themselves.

However, others trek across the country to let Cass County Choppers complete the full installation.

Mirick said his success hinges largely on those customer connections but also the teamwork of his employees. He considers his staff part of his family.

“Ron’s probably the best boss I’ve ever had,” said Taylor Riffe, the machinist manager. “He’s a really, really good guy.”

Riffe said Mirick looks for the best employees for the team and explains how everyone fits into the company’s overall success.

“Ron makes it very clear that what we do in the shop is part of the team,” Riffe said.

Business is booming, Riffe said, but employees aren’t complaining about extra hours. They’re revved up.

“It’s getting really fun,” Riffe said. “I love the work that we do.”

WHAT’S NEXT FOR CASS COUNTY CHOPPERS?

ScaleUP! Kansas City also reminded Mirick to stay focused on finances.

Mirick used to get his accountant’s report and file it away. He gave it little to no thought until a ScaleUP! presenter said, “You have to actually look at them.” These days Mirick is closely reviewing his financial statements to make adjustments and reach his goals.

It will be helpful especially in the next few years as Cass County Choppers grows.

These days the business employs seven people, not including the Miricks. They nearly doubled their manufacturing capability this summer by adding new machinery and will launch a night shift within a year. It won’t be long, Mirick expects, before they outgrow their space and take the next big leap.

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

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41

BUILDING KANSAS CITY

Technology

2016

ally, tech jobs are 5.7 percent of privatesector employment.

The region added 1,236 tech positions from 2014 to 2015, a 1.9 percent increase.

Demand was higher for certain types of positions. Hiring for app developers and systems analysts increased by 5 percent or more.

EXPANSION AT ALL LEVELS

FACT: KC IS A TECH-DRIVEN TOWN. IF WE’RE GOING TO STAY ONE, A FEW THINGS NEED TO CHANGE.

Tech Support here’s a question Ryan Weber likes to ask people: What is Kansas City’s biggest industry?

How about transportation and logistics?

Finance? Manufacturing? Maybe animal health?

“Nobody ever says technology, and until that changes, it’s going to be hard to prove to the rest of the country that we are the tech hub of the Midwest,” said Weber, who

T

42 THINKING BIGGER BUSINESS // September 2016

heads up the KC Tech Council, a nonprofit that supports the metro’s tech sector.

In reality, technology is one of the largest employers locally, said Weber, whose organization helps promote Kansas City to IT professionals thinking about moving here.

Tech jobs make up 8 percent of Kansas City’s private-sector workforce, according to industry association CompTIA. Nation-

Part of that growth is coming from the metro area’s most prominent companies, many of which happen to be tech-focused.

Cerner’s new campus in south Kansas City will have room for 16,000 employees by the time it’s finished. Garmin is expanding its Olathe headquarters, which could create room for another 2,700 workers.

But there’s been noticeable growth among smaller and medium-size tech firms, too.

Take k12itc, for example. The Northland company offers IT services to school districts in seven states. In six years, it’s gone from three employees to 35, with annual revenues north of $7.5 million last year.

This spring, it was named the 2016 Small Business of the Year by the Greater Kansas City Chamber.

Veracity Consulting, an IT consultancy based in Lenexa, rocketed from around 30 workers in 2011 to nearly 90 today. Another Lenexa firm, Technology Group Solutions, was rated one of the fastest-growing women-owned companies in the nation by the Women Presidents’ Organization.

“Kansas City is a great location for technology,” said Krista Sandt, k12itc’s director of sales. “The technology community here is extremely supportive, and being a part of a network that promotes entrepreneurial growth, innovation and strategic partnerships is what continues to grow both the city and our company.”

And you can’t escape the string of local tech startups that have won national attention, including EyeVerify, blooom and Farmobile, an ag-data company that closed a $5.5 million Series A round late last year and has been covered by the Wall Street Journal, TechCrunch and Fortune.

Lawrence’s Mycroft will soon begin shipping its voice-controlled AI devices for the home—like Amazon’s Echo, only open source. The startup has raised about $500,000 through various methods, including a successful seed round and the single largest Kickstarter campaign in Kansas history.

Ryan Sipes, Mycroft’s chief technology officer, said it’s still challenging for tech companies to secure local funding, but “I think that the Midwest and specifically Kansas City is really coming into its own when it comes to technology startups.”

Mycroft was part of the most recent Techstars class at Kansas City’s Sprint Accelerator. Sipes’ team sharpened their concept and got firsthand advice from executives at Amazon, Sprint, Cerner, VML and other major corporations.

“This past six months has been a transformation from a fun project into a true business,” he said.

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article or have conversations about various The KC Tech Council created a tech companies in different phases of national website, www.ChuteKC.com, their growth. I also see local to publicize Kansas City tech corporations growing their jobs and the companies offertechnology, which requires ing them. While the major growing their teams.” employers have a presence Kansas City offers on Chute, about 75 percent advantages that make it of those represented a good place to locate a are smaller companies, tech-based company. For Weber said. starters, the city has access Ryan Weber “In our experience, the tech to several carrier lines, ensursector is growing regularly,” said ing solid Internet connections.

Monica McAtee, local branch director It’s known as an attractive place for of The Nerdery, a Minneapolis firm that families, and the cost of living is lower, expanded to Kansas City in late 2014. which is nice.

The company specializes in custom softBut there’s a big problem that Kansas ware design and development.

City needs to confront, Weber said. The “The growth is coming from new startcity might be home to a higher percentage ups and midsize companies choosing KC as their city of choice,” McAtee said. “I don’t continued on page 44 » think a day goes by where I don’t read an

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43

BUILDING KANSAS CITY

Technology

2016

of tech jobs than the national average.

Unfortunately, it’s not keeping up with the national rate of growth in tech.

Remember how Kansas City saw tech employment increase by 1.9 percent from 2014 to 2015? During the same period, the United States as a whole experienced tech growth of 3 percent.

True, Kansas City grew, Weber said, “but it’s certainly nothing to clap about.” Many of the region’s peer cities are experiencing bigger gains in tech hiring.

It’s not because those cities have more opportunities, he said. They’re just better at filling their positions.

THE NEED FOR SENIOR STAFF

The demand is greatest for people who can serve in mid-career and senior-level roles. Programs like LaunchCode can help newcomers acquire entry-level skills, but most of Kansas City’s open positions tend to be further up the career ladder.

Too many out-of-town job-seekers don’t know anything about Kansas City beyond our barbecue and baseball, Weber said.

They aren’t aware of the different companies based here.

That’s an important piece of information for people who are uprooting their lives and moving to a new city. Even if they accept a job with a Kansas City firm, they want to know there are other opportunities available here in case that first job doesn’t work out.

Mike Talbot is a program director with Veracity Consulting, heading up its data services unit.

Kansas City needs to stay focused on building up its tech infrastructure and getting more of the local youth interested in tech, Talbot said. But he added that Kansas City already is home to a wealth of fantastic resources, whether its great food and sports or tech-based meetups and conferences.

“So when you add all that up, why would I go to the West Coast, why I would go to the other traditional tech hubs, when I can have all KC has to offer, including low cost of living, and still be on the cutting edge?”

James Hart is the managing editor of Thinking Bigger Business Media. (913) 432-6690 // jhart@ithinkbigger.com 44 THINKING THINKING BIGGER BIGGER BUSINESS BUSINESS // // September June 2016 2016 44

TECHWEEK KC RETURNS For the second year, Kansas City will host its own version of Techweek, a national festival dedicated to entrepreneurship and tech. This year’s event will run Sept. 12-18.

THE HEADLINER

BIG DATA SUMMIT

LAUNCHKC

Jeff Hoffman, the co-

The three-day event

The grant competition will

founder of Priceline,

will be presented in

present $50,000 grants to 10

will be the featured speaker

conjunction with Tech-

startups. Winners will be an-

at this year’s Techweek.

week, on Sept. 14-16.

nounced at 3 p.m. Sept. 16.

BY THE NUMBERS TECH JOBS

TECH WAGES

67,900

$87,442

tech industry jobs in the Greater Kansas City region

the average wage in Kansas City’s tech industry

6.7

$49,900

MILLION tech industry jobs nationally

the average wage for KC’s private sector

$708

$105,351

BILLION U.S. tech industry payroll

the average national wage for the tech industry SOURCE // CompTIA + KC Tech Council

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That’s, in part, because they recognize that cloud services offer many of the common tools and applications that fit most business’ needs. For example, many popular customer relationship management (CRM) platforms, enterprise resource planning tools, and even QuickBooks are now available through the cloud.

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n 2016, Thinking Bigger Business Media celebrates its 25th anniversary of telling “the story of small business” in Kansas City. Appropriately, we have themed our 25th anniversary year “The Story of Small Business.”

BUIL DING KANSAS CITY

During the next year, we will tell the story of how small business has built Kansas City, industry by industry. You’ll learn about the trends, opportunities and state of each industry, as well as some of the key small businesses in the industry.

We invite your company to tell your own story as we highlight your particular industry. Are you a longtime Kansas City company that has played a pivotal role in building the metro? A newcomer that is actively building it today? If so, help us tell the story of your company.

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For more information, please contact Kelly Scanlon

»

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48 THINKING BIGGER BUSINESS // September 2016

Health Care / Health Insurance

BIG | shots

Barefoot Beach Bums Barefoot Beach Bums celebrated the opening of its newest location, 5228 W. 119th St. in Leawood, with a ribboncutting ceremony hosted by the Leawood Chamber. (photo courtesy of the Leawood Chamber of Commerce)

Top Hat Winery The team at Top Hat Winery cuts the ribbon for its space at 120 S. Main in Independence, during a ceremony hosted by the Independence Chamber. (photo courtesy of Alex Colley, Independence Chamber)

Parasker Wins Firehouse Award Neelima Parasker, CEO of SnapIT Consulting (center), receives Central Exchange’s Firehouse Award from the group’s CEO, CiCi Rojas, and its chief membership officer, Rebecca Johnson. (photo courtesy of Central Exchange)

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BIG | talk

» The BIG thinkers

behind the BIG ideas. »

Donna Kelley Donna Kelley is a professor of entrepreneurship at Babson College and holds the Frederic C. Hamilton Chair of Free Enterprise. She frequently speaks on global entrepreneurship for executive, policy and academic audiences around the world. She is a board member of the Global Entrepreneurship Research Association (GERA) and leader of the GEM U.S. team.

The 2016 report is available at www.gemconsortium.org.

Leader of the U.S. Global Entrepreneurship Monitor team KELLY » What is the Global

Entrepreneurship Monitor?

DR. KELLEY » We

look at attitudes in society about entrepreneurship.

And then we go deeper into those that identify as entrepreneurs to look at demographics, their motivations for entering business, ambitions to grow, industry participation and other factors so we can get a full understanding of entrepreneurship and how it changes over time, as well as how it compares with other countries.

We started with 10 countries, and we’ve grown to around 70 countries that we assess every year.

KELLY » The 2016 report for the

United States revealed that 57 percent of startups are self-funded. Do you see selffunding as a barrier to entry?

DR. KELLEY » We

may hear about somebody inventing something and raising $5 million and going out and implementing it, but the reality is that people start with few resources and build the opportunity and value with what they have available.

KELLY » According to the report,

for the first time in a few years, startup activity was down in 2015.

What do you attribute that to?

DR. KELLEY » We

found the drop is entirely related to opportunitymotivated entrepreneurs rather than necessity entrepreneurs— those that are starting a business because they have no better

sources of income. Opportunitymotivated entrepreneurs start the business primarily to pursue an opportunity. They’re essentially choosing to get into business.

Another indicator we might look at is the drop in societal attitudes about the presence of good entrepreneurial opportunities. That dropped as well after reaching the highest point in the 2014 survey.

KELLY » What trends are you see-

ing with social entrepreneurship?

DR. KELLEY » About

12 percent of Americans are leading or are trying to start a social enterprise. They are led almost half by women and half by men, whereas there are about six or seven women for every 10 men entrepreneurs in our total entrepreneurial activity measure.

KELLY » Entrepreneurial activity

among women has dropped a bit this year. Why? DR. KELLEY » Women

have more of a gender gap with men in the

50 THINKING BIGGER BUSINESS // September 2016

younger and older age ranges. But in the 35- to 44-year-old group, we see that entrepreneurial activity is up. This could be due to the fact that at that age, women have accumulated connections, access to resources, credibility, experience that they’re now leveraging into their businesses and perhaps entrepreneurship is a much more viable career option than working for somebody. I think it also speaks to a need to inspire younger women to try their hand at entrepreneurship at the start of their careers.

KELLY » Are there any demographic

groups showing more activity?

DR. KELLEY » When

we look at who makes up entrepreneurs, we have an entrepreneurship rate of around 12 percent for whites.

But when we look into different race and ethnicity groups, among African Americans, the rate is actually higher. It’s 14 percent. But when you start looking at mature business activity among African Americans,

the rate is much lower. So we should question why African Americans are starting at a higher rate but have fewer sustainable businesses. When policy makers, practitioners and anybody thinks about promoting entrepreneurship, we need to focus on promoting sustainable businesses, not just starting them.

KELLY » How does U.S.

startup activity compare to other countries?

DR. KELLEY » We

have a high entrepreneurship rate. We tend to be at the top in terms of the developed economies. We have a relatively high entrepreneurial employee rate. And the United States tends to score higher in terms of the percentage of entrepreneurs that operate in the knowledge intensive and service sector, which is really a hallmark of developed economies.

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

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