Thinking Bigger Business—April2017

VOL. 26 // ISSUE 4 // APRIL 2017

UNCOMMON

BY DESIGN Chris Gorney, one of four owners at Second Life Studios, pushes the limits to generate fresh ideas for customers.

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CONTENTS

APR IL 2017 VOL. 26 // ISSUE 4

D E PA R T M E N T S

07 The Bigger Picture 08 Biz Bits 10 Legislative Briefs 11 25 Under 25® Updates 12 BIG | deals 14 At A Glance 35 BIG | shots 40 BIG | talk

OUTLOOK

16

KC FUTURES Midwest Hub

Could KC Become a Hub for Early-Stage Funding?

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

23

ENTREPRENEURIAL JOURNEY Joseph Pippins of Fishing Caddy

A lot of truth in this fishing tale

28

BIGGER | marketing Social Media Ownership

Can your company really claim its accounts?

30

BIGGER | tech BIG Data, Small Business

How to manage

24 K C E N T R E P R E N E U R

disruptive technology

31

BIGGER | law Records Management

Top 5 personnel file mistakes

32

BIGGER | hr Departing Employees

What to do when employees leave

34

BIGGER | growth What If?

Simple question, big results

4

THINKING BIGGER BUSINESS // April 2017

ON T COV HE ER

GIVING IDEAS

LIFE

Second Life Studios marries design and fabrication to turn customers’ vision into creative reality.

C O M PA N Y T O WAT C H

KC MADE IT

SCALEUP! KC

17 Paw Wash

18 Ocean & Sea

38 Juicing Up His Passion

Sixth-grade science project inspires Katie Perry’s business 14 years later.

Nautical clothing with a “Mid-Coast” twist

Chris Goode honors his passion for family and health with Ruby Jean’s Juicery.

SMART COMPANIES THINKING BIGGER®

5

CONTENTS

APR IL 2017

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

P.O. Box 754, Shawnee Mission, Kansas 66201-0754 (913) 432-6690 (888) 432-6444 FAX (913) 432-6676 editor@ithinkbigger.com sales@ithinkbigger.com iThinkBigger.com A WBENC-Certified Women’s Business Enterprise See our SRDS listing at www.SRDS.com FOR ARTICLE REPRINTS

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The information gathered and opinions expressed by the authors are

Aspire for More Chris Steinlage The Power of “Not Yet”

WhiteSpace Revenue Zone Elizabeth Usovicz Setting Sales Goals

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.

6

THINKING BIGGER BUSINESS // April 2017

THE BIGGER PICTURE

What’s Outlived Its Shelf Life in Your Business?

S

up to this point, said with a shrug, “Everything

pring is a time when a lot of people clean house and toss clutter.

has a shelf life.” Simple words, but they packed a

Business owners can benefit from

punch. Hearing them, my other friend’s perspective shifted. I could tell by the look on her face she

doing some spring cleaning of their own

realized that it was not only okay the employee had

from time to time.

I was reminded of that a few years ago while having lunch

moved on, it was right.

with a couple of business owner friends. One was still

As I replayed the conversation later, I got to thinking

wringing her hands over an employee situation that had

about other things in our businesses that become stale

ended months before. What started out as a promising

or moldy, clearly outliving their shelf life. Yet we hang

relationship that brought numerous advantages to the

onto them anyway, perhaps because we’re emotionally

employee, the owner and the company had unraveled shy

attached, or because we mistakenly believe we can tweak

of a year. Eventually, my friend and the employee agreed

this or change that and revive their freshness.

to part ways, but she was still beating herself up thinking

Sometimes, we need to face the hard reality and check

about the woulda, coulda, shoulda’s that might have

the expiration dates on people, processes and programs

preserved the relationship.

that may have served us well in the past but have

In the midst of my friend’s second guessing, the other

become a drain on the present. Sometimes, a tough and

business owner at our table, who had silently listened

thorough purging may ultimately extend the shelf life of the company itself.

Ke lly S can lon

// Publisher // kscanlon@iThinkBigger.com

SMART COMPANIES THINKING BIGGER®

7

BIZ BITS

Bloch Venture Hub Launches UMKC’s Henry W. Bloch School of Management and Country Club Bank hosted the grand opening of the new Bloch Venture Hub on March 23.

The Bloch Venture Hub is a partnership between the Henry W. Bloch School of Management and Country Club Bank, with support from the Ewing Marion Kauffman Foundation.

The city’s newest entrepreneurship incubator is housed in the three-story building that formerly served as Country Club Bank’s commercial and SBA lending division. One of the new programs offered in the incubator is EntreLab, a recent extension of the Bloch School’s Entrepreneurship Scholars program funded by the Kauffman Foundation.

LaunchKC Offers $100, 000 Grand Prize Grant LaunchKC, a global grants competition for tech entrepreneurs, is accepting applications for a $500,000 grant pool that this year features a $100,000 grand prize grant.

In the past, LaunchKC awarded $1 million to 20 entrepreneurs, as $50,000 grants.

Winners came from six states and three nations. This year’s competition will include a $100,000 grand prize grant along with eight $50,000 grant winners. This is its third year of awarding the annual grants.

Rachel Merlo, chair of the LaunchKC steering committee and Google Community Impact Manager–Kansas City, said the change in award amounts is designed to attract more national interest.

Applications are open through July 7. Visit http://launchkc2017.startupcompete.co/ for details.

Maker Faire Set for June, Seeks ‘Makers’ Kansas City’s 7th annual Maker Faire event is set for June 24-25 at Union Station.

It showcases innovation and inventions from a variety of people encompassing all age groups.

Strawberry Swing, recently recognized as one of the top 35 fairs of its kind in the world, will be part of the event. The application deadline for “makers” is May 14. More information is available at kansascity.makerfaire.com.

New Co-Working Space for Corrigan Station New York-based WeWork, a developer of co-working spaces worldwide, has signed a lease at Corrigan Station.

Named the WeWork Corrigan Station, the 40,000-square-foot space will occupy the third through the sixth floors of Corrigan Station at 1828 Walnut Street.

8

THINKING BIGGER BUSINESS // April 2017

The planned space will have enough room for a community of more than 750 members.

Turner Program Celebrates 20 Years The Turner School of Construction Management recently marked its 20 year anniversary of training programs to minority, women, disadvantaged and veteran-owned firms that subcontract with them in the Kansas City area.

Since 2004, Turner-Kansas City has awarded more than $500 million to MWDVBEs in the Kansas City area. More than 700 students have graduated from the Kansas City program.

“The Apprentice” Winner to Address Heartland Chamber Randal Pinkett, season four winner of “The Apprentice,” will be the featured speaker at The Heartland Black Chamber

of Commerce annual luncheon and Business with Heart Awards on April 26.

Awards will be presented to Marvin Carolina, Jr.; Kim Randolph; Chris Goode; Tahir Atwater; Nakisha Bausby and Dr. Andrea Hendricks. Mrs. Mary Ann Flunder will receive posthumously a lifetime achievement award.

Optimism in Small Business Small-business owners are more optimistic than they have been since before the Great Recession, according to the latest Wells Fargo/ Gallup Small Business Index conducted Feb. 6-10.

The overall index is now at 100, up 20 points since November and up 33 points from one year ago. This represents

the largest quarterly increase in three years.

U.S. small-business owners are the most optimistic than they have been since July 2007. It is nearly 70 points above its alltime low of -29 in the first quarter of 2010.

The future expectations score of 60 is up four points from last quarter.

Missouri Ranks 11th on Small Business Growth Index Missouri has been ranked 11th for small business growth in the recent release of The Paychex | IHS Small Business Jobs Index.

The Index is an indicator of the overall economy, providing a monthly, up-todate measure of change in small business employment. With an index of 100.64, Missouri surpasses other states in the top 20, including Pennsylvania, North Carolina and Massachusetts.

A strong ranking indicates that small businesses have room to thrive as the state’s economy grows, according to the Missouri Department of Economic Development.

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SMART COMPANIES THINKING BIGGER®

9

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

FEDERAL

be further developed, and the bill has come under question by both Democrats and some Republicans.

American Health Care Act to Repeal and Replace Obamacare

Congress Repeals Obama Administration “Blacklisting” Rule

On March 6, the House GOP unveiled its long-awaited plan to repeal and replace the Affordable Care Act (ACA).

The legislation, dubbed the American Health Care Act (AHCA), keeps several of the popular provisions of the ACA while leaving out many of the less lauded ones. For instance, the AHCA eliminates both the employer and individual mandates while both allowing young adults to stay on their parents plans until age 26 and continuing to protect people with pre-existing conditions.

The AHCA also provides tax-credit subsidies for those enrolled in a health plan.

Many of the details of the plan are likely to

In March, Congress used its important power under the Congressional Review Act to repeal President Obama’s so-called “blacklisting” rule.

The rule, which was implemented by the president in a 2014 executive order, required businesses to submit paperwork disclosing any violations, or alleged violations, of 14 federal labor laws and similar state provisions, when making bids on federal contracts.

In addition, the blacklisting rule required businesses to routinely update these disclosures every six months. Submittal of even an alleged violation subjected businesses to having their federal contracts cancelled

with little to no due process. President Trump is expected to sign the resolution.

MISSOURI Kansas City Mayor Sly James Calls for Statewide Vote to Raise Minimum Wage

Kansas City Mayor Sly James proposed a council resolution in March that would call for a statewide ballot initiative to raise the state’s minimum wage. James’ advocacy for a statewide vote follows legislation in the General Assembly to prevent municipalities from raising their minimum wage.

Further, James’ plea for a statewide increase comes shortly after the Kansas City Council voted to increase the city’s minimum wage to $13 an hour by 2023. Supporters of the initiative claim that an increased minimum wage is necessary to aid the working poor.

Opponents, including many state legislators, claim that a statewide increase would have an adverse effect on business and argue that both small businesses and employers outside of the major metropolitan areas would suffer.

Missouri Legislature Wraps Up Business Before Spring Break

So far this session, the Missouri legislature has advanced several bills that are aimed at boosting the state’s economy.

Missouri Republicans passed right to work legislation and have begun advancing several tort reform bills. Now both chambers are turning their efforts to budget issues and passing a REAL ID law to allow Missourians to continue to fly.

KANSAS

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THINKING BIGGER BUSINESS // April 2017

6 // JUNE

2016

Kansas Considering KanCare Expansion THE

The com LIMIT ing boom in Continuing a local legacy. commercial drones.

THINK

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AH Why manufacturing How to build EAD a business endures in KC. you can sell.

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VOL. 25 // ISSUE 7 // JULY 2016

» iThink

Bigge

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r.com

TRUE WIL SBREW UCCEL TO ED KC Bier Co. makes GermanWil l Shie ldsright style beer makhere. es the football jump legend from to entr epreneu r.

The Kansas Senate met on March 20, 2017, to discuss expanding the state’s privatized Medicaid program, KanCare. HB2044 proposes to expand insurance coverage to an estimated 150,000 people and bring federal tax dollars back to the state. Expanding KanCare could have a significant effect on the state’s budget, potentially bring $1.7 billion dollars back to the state, which is still attempting to fix its budget woes.

2 5 U N D E R 2 5 ® U P DAT E S

Dan Stalp (Class of 2003), president of

Sandler Training of Kansas City, was honored with the 2017 Gold Stevie Award in the Sales Training or Education Leader of the Year category. The award was presented at Caesars Palace in Las Vegas on Feb. 24.

5th Anniversary Milestone

Spotlight (Class of 2015), an analyst relations

RESULTS Technology Recognized

HR Help Desk Launches

Phoenix Names Chief Operating Officer

Phoenix Renovation and Restoration (Class of 2004), a provider of residential and commercial insurance restoration and remodeling in Kansas and Missouri, has appointed Eric Hugunin as chief operating officer. Hugunin will oversee Phoenix’s day-to-day business strategy, execution and finance.

The HR Help Desk has launched in Kansas City to help business owners get real-time solutions and guidance for their HR challenges. The el

B

firm, is celebrating its fifth anniversary—and some growth milestones. The company saw 250 percent revenue growth in 2016 and doubled its staff from 11 to 22. In 2017, Spotlight has already signed more clients in the first quarter than they did through the first half of 2016.

to build an affordable duplex project in the Waldo Business District in Kansas City.

The project, located at 7509 Pennsylvania, is expected to be completed this summer.

brainchild of People People

er

Stevie Award Winner

to its 2017 Managed Service Provider 500 list in the Pioneer 250 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services.

in da Waggon

(Class of 2013) founder Belinda Waggoner, The HR Help Desk is a

Waldo Area Duplex Project Taps Two Alum

subscription-based platform that will be manned by People People’s HR advisors

RESULTS Technology (Class of 2014), a man-

Botwin Commercial Development (Class of 2010) and el dorado (Class of 2007) have

aged computer services company, was named

by CRN®, a brand of The Channel Company,

teamed up with Kansas State University’s School of Architecture and Studio Build

“It’s amazing how much the Library can do to help people like me who don’t know where to turn, and don’t have the funds to go to professionals.”

to help subscribers with their specific personnel challenges.

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

“You don’t have to go to see them.

They come to see you!”

A Square One Success Story It was 5:30 a.m. again. This restaurant owner was driving around from grocery store to grocery store, trying to get her hot sauce stocked on the shelves. It was an uphill battle.

She needed help, but the solution she needed wasn’t in any book. After meeting with one of Mid-Continent Public LIbrary’s Square One Small Business specialists who connected her with the resources she needed, she was on track to attaining her goals.

Marisa is just one of the more than 45 Kansas City-area business people that MCPL’s Square One Small Business Services team has helped over the past two years.

Can we help you?

Visit us at Marisa Wiruhayarn, Owner of Tasty Thai Restaurant

mymcpl.org/SquareOne to find out more.

SMART COMPANIES THINKING BIGGER®

11

BIG | deals

Davyeon Ross, Clint Kahler, Bruce Ianni

AWARDS/RECOGNITION

FUNDING

StinkBOSS Named Finalist Mid-America Angels Invest in in IHA Global Innovation Awards Medical Device Startup Voxello StinkBOSS has been selected as Fairway, Kan.-based Mid-America a finalist for the New Product Angels (MAA) investment network Showcase/IHA Global has made a $287,000 investment Innovation Awards at the in Voxello, an Iowa-based medical International Home & device company. The company’s Housewares Show. The primary product, the noddle, is a company placed as one of pioneering solution that detects Hi n lar five finalists in the cleanvoluntary gestures in hospitalized y Philgree patients who would otherwise be ing category for its shoe and unable to communicate. The U.S. Food sports gear deodorizer, drier and Drug Administration (FDA) has given and sanitizer.

510(k) clearance of the noddle.

The company was one of 500 entries and 65 finalists for product design.

Hilary Philgreen was inspired to create ON THE MOVE the device after a day of carpooling kids with Velo Garage and Tap sweaty soccer gear and basketball shoes.

House Finds New Home Philgreen worked with engineers and develVeloWagon owners Kiley Sutter and opers who are co-workers at the company Steve Borden have found a permanent where she is employed to come up with the home at 1403 Swift, North Kansas City, for StinkBOSS concept.

Velo Garage and Tap House, the new incarnaMarksNelson Growing Fast MarksNelson has been named the 17th fastestgrowing accounting firm in the country, according to Accounting Today. The firm achieved 22.35 percent growth in 2016.

NEW BUSINESS Legal Marketing Veteran Launches New Agency Legal marketing veteran Katherine Hollar Barnard has opened Firesign, a new virtual agency. Firesign’s approach of “enlightened legal marketing” will help law firms and legal industry clients with firm strategy, brand and identity, business development, client programs, online marketing, and crisis and change.

12

THINKING BIGGER BUSINESS // April 2017

tion of their mobile bike repair service and taproom. For the past 18 months, VeloWagon operated out of a converted Volkswagen bus equipped with four beer taps. Sutter and Borden have subleased Th n e Ve a section of their 3,000 loWago square-foot space to Vince Rodriguez, owner of Velo + bicycle repair shop, who wanted to expand to another location.

Velo Garage and Tap House will have a bike repair shop on site and sell new bikes as well. Tools and resources are on hand for DIY bike repairs and instruction. VeloWagon will continue to operate as a mobile repair

unit and delivery vehicle. The Tap House will have 10 rotating local and regional beers on tap, plus a selection of canned and bottled beer.

BBQ Relocates Hawg Jaws has moved from Riverside to North Kansas City. The new location is at 900 North Swift. The barbecue is owned

by Silvio’s Foods and operated by Sam and Nick Silvio.

Fry Orthodontic Office to Change Locations Fry Orthodontic Specialists is moving their Gladstone office to a new location in the Northland in April. The new office is located at 8413 N. Madison Ave. in Kansas City, Mo. Joining the new Northland location is Dr. Heather Green, a Kansas City native, who completed dental school training at Howard University and is a member of the American Dental Association and the American Association of Orthodontists.

Colonial Gardens Brings Bean Counter Groundbreaking ceremonies are planned for the Bean Counter Café, the first of several construction phases for Colonial Gardens that will culminate in an innovative nursery and agri-tourism destination in Blue Springs. Colonial Gardens covers about 40 acres.

Bean Counter Café will relocate from its current location in Blue Springs to Colonial Gardens. The new Bean Counter Café will cover approximately 1,700 square feet of the Colonial Gardens space. The farm-to-table café will serve breakfast and lunch seven

OTHER BUSINESS ShotTracker Makes History ShotTracker, the provider of automatic real-time performance data for basketball

Ianni

ru ce

Second Location for Frontier Justice Frontier Justice, a firearms training facility, broke ground on a second location in the Kansas City area on March 29. The new location is at 1700 N. 100th Terrace in Kansas, Kan. The company launched in Lee’s Summit in January 2015. The Kansas location was designed locally by Slaggie Architects. The grand opening is expected for November 2017.

teams, and Keemotion, a leader spirit each quarter. In addition to the gin, in automated video producthe series will include alternative styles tion, put their technoloof gins, whiskeys, liqueurs and collabogies on national display rations with some of the region’s for the 80th National craft breweries.

Association of InterTrabon Group Names New CEO collegiate Athletics The Trabon Group has appointed (NAIA) Division I CFO Shawn Nicholas as its new er Men’s National Cham,D ,B s avy s CEO, replacing owner Tim Trabon. eon Ro pionship Basketball TourTrabon has held the CEO title for nament. The technologies more than 50 years and will remain as provided automatic real-time chairman of the Kansas City company. The data and analysis to coaches, players firm offers marketing, custom software and fans through FOX Sports GO. development, printing, fulfillment and Tom’s Town Launches The distribution services to more than 10,000 Pendergast Machine Series restaurants across the country. Trabon took Tom’s Town Distilling Co. has released a over the company in 1968 on the death of new line of craft spirits called The Penderhis father, Michael, the founder. He grew gast Machine. The first release in the it from a printing-centric operation to its series is an antique barrel-aged gin. current makeup.

Tom’s Town plans to release one new l ah Clint K

days a week, as well as provide catering and carry-out services. Many of the menu items will incorporate herbs and produce grown on site at Colonial Gardens. Bean Counter Café will house interactive events in the future, including cooking demonstrations and wine pairing dinners.

Everyone’s a fan of something. At Missouri Employers Mutual, we’re fans of keeping people safe. When workplaces are safe, businesses prosper. If you want to win at eliminating injuries and reducing claims costs, create a game plan with the Safety Fanatics at MEM.

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All rights reserved.

SAFETYFANATICS.COM SMART COMPANIES THINKING BIGGER®

13

AT A G L A N C E

BY THE NUMBERS | GROWTH

Healthy Growth in Kansas City

( by Pete Dulin )

The Kansas City area ranked first for business growth in a nationwide survey of businesses conducted by The Wendover Corporation. The study surveyed more than 600,000 businesses across the country in third-quarter 2016. On the Growth Index Comparison chart, Kansas City ranked first in both 2015 and 2016, outpacing Dallas, San Jose, New York and Phoenix among the top five cities experiencing growth in 2016.

companies. Companies in the region have continued to increase their rates of growth, and more fast-growing companies have also been attracted to the city.

Kansas City saw an increase in growth of 23.8 percent from 2015 to 2016, outpacing the national average increase of 10 percent.

Health services represented the largest industry increase in Kansas City relocation activity this year, accounting for a 26 percent increase over the previous base year. Large scale medical projects such as the $93 million expansion of three HCA Midwest Health Centers and the new $100 million University of Kansas Hospital building played key roles in this surge. These projects demonstrate the effort to keep pace with a growing population in the Kansas City area.

The Index considers factors such as business relocations, expansion into additional space and new location openings.

According to the report, Kansas City’s growth index score increase reflected that it is not just home to high-growth

Specifically, Kansas City exceeds national industry trends for relocation activity in the areas of health, legal, educational, social services and real estate.

1

st

14

Kansas City’s Rank in Business Growth,

Kansas City Growth Percentage Between

2015 and 2016

2015 and 2016 // 24%

Percentage Change in Kansas City’s Health Services

Percentage Change in National Health Services

Relocation Activity // 26% Increase

Relocation Activity // 2% Decrease

THINKING BIGGER BUSINESS // April 2017

THINKING BIGGER EVENTS

Save the Date!

BIG STARTS | POSH RESTORATION FACILITIES

Company Name // Posh Restoration Facilities Entrepreneur // Christina Williams What They Do // Provide all natural noninvasive treatment and

solutions for hair loss, scalp and skin conditions

The BIG Breakfast

The Inspiration // After starting Posh Restoration Facilities in August

A quarterly entrepreneurial panel sharing insights and advice you can put to work in your business.

Plus, a delicious breakfast to start your day right!

Williams had introduced natural ingredients to restore loss and bring balance to hair. She implemented the same approach to skin care.

More details and registration available at www.ithinkbigger. com/events/big-breakfast-series

» 2nd Quarter Breakfast Thursday, June 22, 2017

» 3rd Quarter Breakfast Thursday, Sept. 21, 2017

2015 to service clients with hair loss, Williams began to receive inquiries from the same clients about skin problems and conditions.

The Differentiator // PRF Restoration Facilities has a restoration bar that offers more than 100 natural-based ingredients, including powders and essential oils that help bring balance to the hair, scalp and skin.

Specific formulas are created from the restoration bar ingredients to treat individual problems.

What’s Next? // Williams would like to develop systems that will allow her to expand the company’s reach through various distribution channels, online solutions and franchise development opportunities. She is also launching on-the-go solutions in Spring 2017 that will allow clients to purchase natural-based treatments for at-home use.

Visit www.prffacilities.com or call (816) 541-5084 to find out more.

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

Brew :30 Drink local, network and meet some of KC’s up and coming businesses at this quarterly happy hour. Meet new business owners, make valuable connections and discover some of KC’s local wineries, breweries and distilleries.

More details and registration available at www.ithinkbigger.com/ events/brew30

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

Amigoni Winery | 5:30 p.m.

» 3rd Quarter Brew :30 Thursday, July 20, 2017

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

SMART COMPANIES THINKING BIGGER®

15

KC FUTURES

( by Terry Wooten )

KANSAS CITY HAS THE ELEMENTS TO BRING STARTUPS, FINANCIAL FIRMS TOGETHER.

A Midwest Hub for Early-Stage Funding? ansas City has gained a reputation for entrepreneurship, but could it also become a Midwest hub to link aspiring business owners and investors seeking projects to fund?

According to KCSourceLink, the answer is “maybe.” Small business has been thriving locally, and there has been a notable increase in the amount of identified funds available to startups here, according to KCSourceLink’s Kate Hodel.

K

take to increase grants, loans and equity to Kansas City entrepreneurs.

The fourth We Create KC report tracks progress toward a community goal of Kansas City becoming the country’s most entrepreneurial city. As part of the metrics it tracks, the latest report, released March 24, provides an update on capital, showing marked improvement in the pool of capital available for early-stage entrepreneurs since 2013.

Hodel said when KCSourceLink first started tracking investment in 2013, they could only identify about $193 million available to early-stage companies. The pools grew to $752 million in 2016, an increase of 290 percent.

HEALTHY CLIMATE

The increase in investments and other factors point to a healthy climate for Kansas City becoming known as the Midwest hub for financing small business startups.

SOURCE // KCSourceLink, from various public sources and private databases Financing comes in different forms, including loans, grants and equity. These include both KC-based and outside funds and ASSESSING CAPITAL NEEDS financial institutions. Grant programs include KCSourceLink’s initial assessment showed Digital Sandbox KC, LaunchKC and federal network access to capital was weak, said Small Business Innovation Research grants.

Hodel. “Entrepreneurs said there was Some of the angel groups are Mid-America no money, and investors said there were Angels, Women’s Capital Connection and no big deals,” she said. KCSourceLink Northland Angel Investor Network. looked at the factors involved, eventually KC-based funds include Flyover Capital, producing a 72-page report that showed Firebrand Ventures and KCRise Fund. Firms the gaps, what the pool of capital looked from outside Kansas City investing here are like, who was getting investments and at Lewis & Clark Venture Capital of St. Louis, what stage. Published in 2015 as a spin off Omaha-based Dundee Venture Capital and to KCSourceLink’s annual We Create KC Drive Capital out of Columbus, Ohio. Royal report, We Create Capital provided a deep Street Ventures, a Utah firm, also has an dive into Kansas City’s capital continuum office in Kansas City. and mapped actions the community could 16

THINKING BIGGER BUSINESS // April 2017

Digital Sandbox KC, for example, has invested in PlanIT Impact and HCI Energy.

LaunchKC has awarded grant dollars to SuperDispatch and FEWDM. Ansera Analytics and HylaPharm have received SBIR funding.

Mid-America Angels has helped fund Job Shakers, and Northland Angel Investment Network has invested in Mycroft.

One of the KC-based funds, Flyover Capital, has provided startup money for ClaimKit, and the KCRise Fund has worked with SpiderOak and PEQ. Royal Street Ventures, the Utah firm, has invested in PayIt. PERFECTLY POSITIONED

Earning recognition as the Midwest Hub for funding entrepreneurship would help put Kansas City and the “flyover” region on the map, said Maria Meyers, founder of SourceLink and the executive director of the Innovation Center at the University of Missouri–Kansas City.

Kansas City is in a good position in the Midwest, within driving distances of St. Louis, Wichita, Des Moines, Omaha and other cities.

Such a symbolic designation could put Kansas City on the map for a large region, letting entreprenuers know that “Kansas City is a good place to find funding,” said Meyers.

Being known as a hub for entrepreneurship and as a place where there are funding opportunities could attract more talent from the region and around the country to Kansas City. Creating a density of talent in the area is important to fuel startups and encourage their growth.

What’s the next step? As the report indicates, organizations are already rallying around the common goal to improve access to capital for entrepreneurs. Kansas City also already hosts numerous conferences, like the InvestMidwest Capital Forum and the Animal Health Investment Forum, to connect entrepreneurs with investors. KCSourceLink has also launched KCInvestED to help further educate area investors.

“It will take time, collaboration, commitment, but most importantly action,” adds Meyers.

“Networking capital and identifying what’s available is just the first step. Our next step is to match entrepreneurs with the right investors and opportunities to increase deal flow.”

Terry Wooten is content development manager for Thinking Bigger Business Media.

C O M PA N Y T O WAT C H

T H E PAW WA S H L LC

Paw Wash Keeps Dogs’ Tracks Off Floors atie Petty turned to science for an easy way to keep her dog Sadie’s dirty tracks off the floors. Her invention ended up launching a business she is still running 14 years later.

“It was my 6th grade science fair project,” said Petty, who grew up in Louisburg, Kan. “I had to always clean Sadie’s paws.”

Rather than using a hose, Petty came up with the idea of putting the pup’s paw into something to pull the dirt off without hurting the animal.

Trial and error resulted in using a PVC pipe with water creating a suction effect. It worked.

Michael Mulich, Katie’s father, created a limited liability corporation a year later for the The Paw Wash, and father and daughter entered into business together. They received a patent for the the Paw Wash in February 2006.

The Paw Wash is an hourglass cylinder-shaped, polycarbonate product that is placed on a dog’s paws to clean them. It comes in both small and large sizes.

“It is easy to use,” Petty said. “You fill it up with water, add a few drops of pet shampoo or soap, place the dog’s paw into it and pump it up and down a few times to create suction that pulls the dirt off. A squeegee on it keeps the dirt and water inside.”

A microfiber mitt is used to dry the pet’s feet after washing.

K

ENTREPRENEUR

The Paw Wash, LLC COMPANY INFORMATION

2012 W. 104th St., Leawood, KS (913) 963-4236 www.thepawwash.com

As the Paw Wash entered the market place, Petty continued her education at the University of Kansas, majoring in film and media with a minor in business. After graduation, she took a full-time job as a video producer but worked on the Paw Wash on the side. Petty left the video field in July 2016 to concentrate fulltime on Paw Wash.

The Paw Wash is sold online through Petty’s website as well as in retail stores across the country. Paw Wash has even gone global, making it to stores as far away as Russia and Japan. While Petty sells The Paw Wash and mitt as a set for $28.95, retailers carry the products separately.

Sales of The Paw Wash continue to grow, especially in the fall and winter months when it tends to be muddy outside. The product also has found a new market.

“Veterinarians are using it when a dog gets burns or hurt to clean wounds and help treat,” Petty said.

Petty’s next move is to participate in ScaleUP!, a 16-week program for select entrepreneurs through the Kauffman Foundation.

“I am working on a pet line of products to go along with it and will create them as I get those funds,” she said.

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

SMART COMPANIES THINKING BIGGER®

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KC MADE IT

OCEAN & SEA

Sailing on the Prairie OCEAN & SEA MAKES NAUTICAL CLOTHING WITH A ‘MID-COAST TWIST’

K

ansas City’s lack of a large body of water hasn’t stopped Brendan O’Shaughnessy from launching Ocean & Sea, a nautical clothing company with what he calls a “mid-coast twist.”

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THINKING BIGGER BUSINESS // April 2017

O’Shaughnessy describes Ocean & Sea as a clothing and lifestyle brand replete with everything from what you wear on your back to artwork that adorns your walls. There are more than 100 products in its line, ranging in price from $2 to $62.

Brendan and his wife Amanda formed the company in 2013, with the first product hitting store shelves in May 2014. The signature motif in Ocean & Sea’s line is the sailboat, but there are numerous designs reflecting the interests and inspirations of the O’Shaughnessys.

“The fun thing about the sailboat is we actually created a life-size sailboat through

in 2009, he concentrated on exhibitions of his work before going to work as a graphic artist.

Amanda also attended UMKC, earning a studio art degree. She currently teaches classes at The Nelson-Atkins Museum of Art and The Barstow School. Although she will continue teaching art full time this fall in the Blue Valley School District, she is an integral part of Ocean & Sea. “She’s like a compass for us,” Brendan said.

HOW THEY’RE MADE AND SOLD

For production, Ocean & Sea partners with local screen printing company Seen Merch. Ocean & Sea works with about 10 manufacturers for the company’s other products. The company’s inventory and fulfillment operations take place from its Mission, Kan., office.

“I feel like made in the USA is important to control quality,” Brendan said. “We want to stimulate our local economy, and that’s why most of our manufacturers are in Kansas City. We are very committed to supporting our direct community.”

Ocean & Sea is carried in approximately a dozen Kansas City area stores. Ocean & Sea participates in pop-up shops at First Fridays and other locations across the city.

Its products can also be found in boutiques, art galleries and coffee shops. About half of its business comes through the company’s website.

WHAT’S NEXT?

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Kickstarter funding,” Brendan said. ”It was a way to be fun and inclusive.”

“I am mostly on the design side and Amanda is on the illustration side,” Brendan said. “We kick around ideas and whoever is the best to execute will do the design.”

Brendan said Ocean & Sea’s designs are whimsical and curated at the same time.

Ocean & Sea occasionally will collaborate with other artists in the area as well as across the country.

“I want to be relevant to someone who has been sailing as well as someone who has never been near sailing,” he said. “I find it is a challenge.”

Ocean & Sea has experienced continuous growth since launching in 2014. The couple wants to get its merchandise into SAILING TO SUCCESS stores in other cities, including Brendan is no stranger to the Chicago, in 2017. O’Shaughnessy design and sailing world. An plans to hire an employee artist as a child, he had been to help out. One major involved in designing clothstep is on the horizon: “I ing since he was 17. He also definitely see a storefront grew up sailing in Michigan in Kansas City for retail,” with both backgrounds evihe y O’S dent in his current designs.

O’Shaughnessy said. He enviss haughne Brendan made his way to the sions opening stores in other University of Missouri-Kansas City to cities in three years or so, but he study art, continuing his journey to find his ruled out franchising. artistic voice. He learned photography, taught himself screen printing and then moved into Ruth Baum Bigus Is a freelance writer in the Kansas graphic design. Earning a studio art degree City area.

SMART COMPANIES THINKING BIGGER®

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BRANDED KC

Small businesses are capitalizing on Kansas City pride.

by Pete Dulin

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20 THINKING BIGGER BUSINESS // April 2017

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Why is Kansas City’s current brand equity so hot?

The appeal of the KC brand is driven by more than local pride. There’s plenty of achievement to back it up.

KC PRIDE: Kansas City has made strides 21ST CENTURY STYLE as a 21st century hub for entreYes, Kansas City area preneurship, technology and residents and businesses transportation. Investment in exude hometown pride, the arts and entertainment but the rest of the has also burnished the city’s nation has discovered a image. Infrastructure and not-so-well-kept secret so economic development has nof Atk too. Kansas City is not propelled the city’s growth and ins Museum flyover country. Kansas City desirability as a place to live, visit is the place to be. The positive and conduct business. vibes about the city are catching As just one example, Google chose on elsewhere, contributing to tourism and Kansas City in 2011 for the first trial in the driving economic growth. Local business world of its high-speed Internet access serowners have discovered that Kansas City is vice fiber. Google Fiber has been an indisa brand they can sell not just to locals but to pensable source for tech entrepreneurs and visitors too. other small businesses in Kansas City.

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embraced various identities, including as a frontier trail town offering a gateway to the West, a Cowtown with bustling stockyards, the hotbed of jazz and, of course, the birthplace of the world’s best barbecue.

Residents and businesses alike have found ways to celebrate all these elements of our heritage. Today’s local small businesses are no different. They too have discovered a niche in offering products that celebrate the KC brand and all the city has to offer here and now.

“We’ve tapped into KC pride by building on what already makes Kansas City great.

The legendary stories and heroes of the past, the love for our BBQ, our sports teams and music. We are taking the favorite memories of your childhood and your father’s childhood and bringing

them back to life, so you can create new memories while paying homage to what you love,” said Charlie Hustle founder Chase McAnulty.

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Change is embedded in the DNA of Kansas City. Throughout the years, Kansas City has

“Not only did it add us to an exclusive group of gigabit-connected U.S. cities, but it also created a nice boost of energy to the then-nascent startup ecosystem in Kansas City,” said Matthew Marcus, executive director of the Kansas City Startup Foundation.

The KC Streetcar, Sprint Center and Kauffman Center for the Performing Arts are among the major projects during the past decade that have reinvigorated the vitality of Downtown and created excitement in Kansas City overall. The streetcar, for example, logged nearly 1.4 million trips in 2016. Sprint Center hosts an average of 108 events each year, and it attracted 5.6 million visitors between 2007 and 2012.

The Kauffman Center for the Performing Arts has raised the profile of Kansas City internationally. Ranked “as one of the World’s 15 Most Beautiful Concert Halls,” the Center is a cultural anchor and magnet for growth. The Center was also featured in curbed.com as one of “The 21 Most Spectacular Theaters in the U.S.” “Since its grand opening in 2011, the Kauffman Center for the Performing Arts has welcomed more than 2.3 million visitors to enjoy more than 300 performances held on its stages annually, and has contributed to the growing level of activity of the Crossroads Arts District,” said Kauffman Center for the Performing Arts President and CEO Paul Schofer.

A strong arts environment boosts Kansas City’s cool factor and cultural enrichment.

Ranking fourth on Travel + Leisure’s 2015 list, “These Are America’s 20 Most Cultured Cities,” the magazine recognized many of greater Kansas City’s arts institutions. The

Nelson-Atkins Museum of Art, Kemper Museum of Contemporary Art, Nerman Museum of Contemporary Art, the Lyric Opera at the iconic Kauffman Center, and the Blue Room inside the American Jazz Museum were all name-checked.

Time magazine ranked the Nelson-Atkins Museum of Art’s 2007 addition of the Bloch Building number one on its list of “The 10 Best (New and Upcoming) Architectural Marvels.” The building was part of $200 million in renovations at the museum.

“Kansas City is a secret that is out of the bag; more and more people are flocking here,” said Julián Zugazagoitia, CEO and director of the Nelson-Atkins Museum of Art. “At the Nelson-Atkins, we are looking forward to the opening in March of the Bloch Galleries.”

And, of course, a look at Kansas City’s value as a brand wouldn’t be complete

without acknowledging its prominent role in the Midwest as a diehard sports town.

The top-caliber mix of professional and college sports events, such as March Madness, makes Kansas City a regional powerhouse for tourism and economic activity.

For example, the Kansas City Royals won the 2014 American League Championship Series and 2015 World Series. Both major league baseball seasons were a homerun for Kansas City, drawing invaluable publicity, visitors and worldwide media attention.

In 2013, Sporting Kansas City claimed the club’s second MLS Cup championship, and in 2015 the club advanced to its fifth straight postseason appearance. Similarly, the Kansas City Chiefs have reached postseason in 2010, 2013, 2015 and 2016.

FLYING PIG LOCAL MERCANTILE

“We are both lifelong Kansas Citians and love Kansas City,” said Wooldridge, co-owner. “The newfound pride in our city has been inspiring. As makers ourselves, we have seen a rise in local artisans making all kinds of amazing things.”

Adam Nelson and Katie Wooldridge opened Flying Pig Local Mercantile in Downtown Kansas City “to provide a venue for local makers … to put their creations to be offered to the public.” They carry apparel, art, gifts and housewares that represent the brand of Kansas City through handcrafted goods. Flying Pig is a frequent stop for local shoppers and tourists seeking souvenirs tied to Kansas City.

KANSAS CITY CANNING CO.

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Chef Tim Tuohy, originally from “Much to our elated surprise, we were welcomed into the New Jersey, and his wife community with open Laura Beckloff Tuohy, a arms. Our business native Kansas Citian, took off in ways moved from New we could not have York to Kansas City anticipated,” said four years ago. They Tim Tuohy. launched Kansas le at dG m City Canning Co. reen To Over time, Kansas two-and-a-half years City Canning Co. ago with the intention of became much more growing slowly and organically. than just a name.

continued on page 22 »

“Showcasing them has been a rewarding experience. They create great things and are also an amazing group of people,” added Nelson. “We decided early on that items in our store would only be from local Kansas City makers.

Our customers know that anytime they shop in our store, they are supporting someone local.”

“Being able to identify with Kansas City and the pride that people have here has given the name much more gravity,” said Tim Tuohy.

“Now, there’s a sense of responsibility to the community and it has made me feel that there is weight to what we do. It’s become less a job and more a vocation.”

That commitment to community carries over to the company’s relationships with its sources and customer base.

“After developing relationships with local vendors, farmers and customers, we feel it’s especially important to support other local businesses in any way that we can,” said Tim Tuohy. “Furthermore, we strive to highlight all of the great produce that is grown in and around the metro area. In hindsight, I feel lucky to be a part of the community. If anything, it makes me feel like Kansas City has adopted me and it’s important to take care of your own.”

SMART COMPANIES THINKING BIGGER®

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metropolis on the plains anything but plain. From CIVIC SHOWCASE Cowtown to chic center of Visit KC, a nonprofit tech and innovation, arts responsible for promotand culture, business and ing the region as a topsports, Kansas City occupies a of-mind travel destination prominent and proud place in Ce rm n te fo for the leisure, convention the middle of the map. r for the Pre and group tour audiences, And all of this adds up to opporhas achieved notable feats in tunity for many Kansas City busipromoting Kansas City. nesses who are turning pride into profits.

In 2016, Visit KC executed an inteThey have stepped up to define and promote grated marketing campaign with Kansas Kansas City as a brand through apparel, City-based MMGY Global that generated art, gifts and more. Apparel companies 164,000 incremental hotel room nights such as MADE, Charlie Hustle, Flying Pig and $60.6 million in economic impact.

Local Mercantile, and Normal Human have The campaign reached 2.7 million housecreated product lines built in part on Kansas holds in five states, earning a return on City’s appeal a brand. investment of $93 for each dollar spent.

“Charlie Hustle was created with a vision Visit KC’s work also generated 294 bookto be a strong competitor in the collegiate ings and 362,305 room nights for future apparel realm. When the company launched years. This translates into more than $268 in 2012, the first collection consisted of 16 million in future economic impact. designs, one of them being the “KC Heart.”

Its efforts have also generated more than The KC Heart has since become an icon of the city and of our brand. It helped us see 600 articles about Kansas City through public how strong the KC pride is to those that relations, accumulating an estimated 181 have roots in Kansas City and helped us million PR impressions in publications. And want to build on that while continuing to Visit KC’s innovative marketing campaign, grow our collegiate collections.”

“How We Do Kansas City,” showcased the city’s culinary, arts, spirits and tourism appeal Pete Dulin is a freelance writer based in Kansas City, by targeting consumers, meeting planners Mo. He is also the author of Kansas City Beer: A History of and media in Chicago and New York.

Brewing in the Heartland, KC Ale Trail, Last Bite: 100 ReciAt home and across the nation, Kansas pes from Kansas City’s Best Chefs and Cooks, and ExpediCity has shaped its identity and built its tion of Thirst: Exploring Breweries, Wineries and Distilleries brand into an asset that makes this thriving in Central Kansas and Missouri. // www.petedulin.com » continued from page 21

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MADE IN KANSAS CITY Made in Kansas City draws attention to and celebrates the city’s identity and its makers. The retail shop launched its first location in Prairiefire in Spring 2015. It has since opened stores in Briarcliff Village and Prairie Village and has product within Hallmark in Crown Center, on the Plaza and in Lee’s Summit.

Local pride is palpable to Keith Bradley, one of the store’s three owners and founders.

attention over the last several years, but also of our coffee, breweries, restaurants, art and apparel,” he said. “For the longest time in our country, the Midwest came second to the coasts. I think there has been a shift nationally to look inward.

I think enough people have tried and become weary of life in the big cities and have realized that we have all the great cultural aspects of a major metropolitan area and virtually none of the drawbacks.”

“Not only are we proud of our sports teams that have received national

Made in Kansas City carries foods, candles, art, jewelry, books and

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THINKING BIGGER BUSINESS // April 2017

NORMAL HUMAN Dan Mahaney and Pat Egger co-founded Normal Human in 2012 as a retail screen printing shop that sells Kansas City-centric apparel and goods online and at its Crossroads store.

The “Kansas City craze” had not hit yet when they opened.

“We didn’t really anticipate the degree to which city pride would eventually inform our product design,” said Mahaney.

“We had a couple local-centric designs when we started, but much of what we were doing at the time was abstract, pattern, or illustrative design. Since we design and print our own items, we’re able to react pretty quickly to our customers’ wants and needs.

When the wave of pride came crashing ashore, we began designing and printing more of that and also doing small batches of non-locally focused designs.”

other products made in the area or share a Kansas City theme. A connection to Kansas City adds value to the gifts.

“Customers are looking for something that exudes Kansas City,” said Bradley. “Often, it is not for themselves, but for someone who lives outside KC. It is really fun to be a part of and to facilitate that connection.”

Made in Kansas City’s roster of makers take pride in their wares and representation of the city.

“Our makers in the food and coffee categories have showcased their products and skills in national competitions,” said Bradley. “They are proud and shameless to represent their Kansas City-made and even Kansas City-branded products against products from around the country. The response they get is overwhelmingly positive about not only their product, but also all the good things coming out of KC.”

ENTREPRENEURIAL JOURNEY

( by Kyle J. Smith )

Joseph Pippins

A Fishing Tale Joseph Pippins, owner of the Fishing Caddy, offers advice about building a business, even when you’re not getting many bites.

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oseph Pippins grew up in Kansas City, Kan. A restless kid, he spent many afternoons grounded and confined to his bedroom, unable to get his hands on essential childhood goodies. That is, until he started selling toys out of his window, creating a marketplace and filling his coffers with baseball cards, ice cream, video games and an entrepreneurial spirit to boot.

This knack for solving problems and hunger for success sunk its hook deep into Pippins’ life. Entrepreneurship helped him raise himself out of poverty and drove him to push against the current. He created an adult goodie, the Fishing Caddy, that does a whole lot more than make fishing easier.

It brings families together and helps create childhood memories full of love and the thrills of reeling in a big catch.

What Is the Fishing Caddy?

The inspiration for the Fishing Caddy came one day when Pippins was trout fishing at Heritage Park in Olathe. He noticed how much gear fishermen needed to have a successful day. He was sitting in a bad spot with his folding lawn chair, bucket, tackle box, flashlight fishing poles and bait. He hadn’t caught a single fish.

That’s when the lightbulb went off. All of Pippins’ gear was preventing him from moving to a better spot. He dreaded packing it all up to find where the fish were biting.

Pippins began testing the first version of the Fishing Caddy, just a rod holder attached to a bucket. After hundreds of hours of testing, it developed into a full fishing system that takes a lot of hassle out of the sport.

By making the sport more convenient and more fun, Pippins hoped that more kids would set down their electronics and head out to the lake to spend time with their dads, for grandparents to pass on the fishing tradition with ease and pride, and for everyone to see that if you’re willing to put in the time and effort, anyone can catch a fish and become a fisherman—or even an entrepreneur.

Big Fish in a Broke Pond Pippins says he’s been an entrepreneur for a long time. His phone is full of ideas he’s recorded to solve everyday problems he encounters.

His desire to make life easier and better existed even in middle school, when he was known as the “candy man.” “Like any kid,”

he said, “I wanted Nikes, comic books and, of course, more candy, but my retired grandmother couldn’t afford those things.”

So he struck out on his own and sold candy until one of his employees went rogue. “Yeah, I had a crew!” he said. Soon after, he began selling cheat codes to the video game Mortal Combat and quickly forgot about the small margins he was making selling candy.

Pippins said that a book called “The Power of Broke” by Daymond John, the founder of FUBU, recently empowered him to embrace that growing up poor gave him an advantage over his wealthier peers.

He said he no longer considers his lack of resources early on as a crutch, but as a badge of honor.

“I’ve experienced a lot of tragedies—losing siblings to gun violence, days without nutritious meals and being homeless several times in my life,” he said. “Yet, like most of my peers in the inner city, I stayed hungry for success because the sting of poverty was so strong. Every day, I feel its cold touch breathing down my neck. When I want to give up, I think about how far I have come and those who depend on me, and keep on going.”

Catch and Release Pippins big dream for the Fishing Caddy is to be this generation’s fishing and camping staple.

“It’s the most amazing thing in the world to bring a product or business out of your mind and into a physical form,” said Pippins.

“The fact that fishermen on the other side of the country log onto thefishingcaddy.com and part with their money to purchase my idea made real is humbling and exciting at the same time.”

But even more importantly, he said, success is about giving back. Pippins hopes to start a foundation to give back to the inner cities where he grew up. “I want to reach those kids who were like me, whose mind wanders in class and gets reprimanded often. It’s these kids, who with the right guidance and mentorship, can become our next generation of leaders. These are the kids with big visions and hustle. I want to encourage them to stay dreaming, and help them with the resources to bring those dreams to life.”

Kyle J. Smith is a senior communications coordinator at KCSourceLink. // smithk@kcsourcelink.com SMART COMPANIES THINKING BIGGER®

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Co-owners Chris Gorney (creative director) and Mitch Trumpp (fabrication director)

24 THINKING BIGGER BUSINESS // April 2017

KC ENTREPRENEUR

Second Life’s design and fabrication expertise turns vision to creative reality.

MAKING IDEAS

COME TO LIFE

ENTREPRENEURS

Chris Gorney, creative director; Mitch Trumpp, fabrication director; Barry Lakey, managing director; Dylan Tucker, chief financial officer C O M PA N Y I N F O R M AT I O N

Second Life Studios 2734 Cherry St. Kansas City, MO 64108 (816) 533-4942 http://secondlifestudios.com TYPE OF BUSINESS

Architectural fabrication firm YEAR FOUNDED

2012 E M P L OY E E S

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

Hire people who can do your job better than you. Nobody owes you a paycheck. Until we actually deliver something, the only product we’re selling is ourselves and our service.

S

econd Life Studios could easily be divided into two separate areas inside its offices: fabrication and design. Or the shop vs. the desk jockeys.

That will never happen. The small firm has carved out a niche by avoiding such division and creating a team of skilled employees who work together to push the limits and to generate fresh ideas for customers.

Their interior designs have set the tone for several local bars and restaurants, and the business is gaining momentum on a national level.

Second Life Studios designs and builds the interior of public gathering spaces, ranging from high-end bars and restaurants to boutique or five-star hotels. Creative director Chris Gorney, one of four owners, calls the firm a high-hospitality architectural fabrication company.

“We are a fabrication company run by creatives,” Gorney said.

That’s a key description because it allows the Kansas City firm to stand out from others who might specialize in design but don’t understand fabrication. Second Life uses design definitively to set a business apart from its competitors. The

small but mighty firm of 20 full-time employees has a strong relationship with many national hotels and restaurants.

In Kansas City, its presence stands out. It’s hard to miss the intricate design details at the Crossroads bar and restaurant Rockhill Grille.

The firm’s fabrication work there and at places like the Summit Grill turn the bar design into artwork that creates the tone for the entire space.

Second Life’s work was on the national stage this winter when the interactive secret agent restaurant called SafeHouse opened to considerable media fanfare in Chicago. Second Life helped design many of the restaurant’s interactive twists that entertain guests. It includes hidden doors, a glass dance floor and the featured “cone of silence” table, which is modeled after the Get Smart comedy show.

There are many other unique contraptions and gags that Gorney can’t disclose without ruining the experience. Designers laid out their wildest ideas on paper and left it to the Second Life team to make the dreams a reality.

The firm has fabricated the impressive wood wine racks at Underdog Wine, which create a

by Dawn Bormann // photography by Dan Videtich SMART COMPANIES THINKING BIGGER®

25

much different experience from the typical liquor store. Second Life also created the elegant bars within the Kauffman Center for the Performing Arts and worked on the store design at Charlie Hustle’s Plaza location.

INNOVATIVE VISION

Even more impressive, Second Life designed and fabricated the eye-catching Ocean & Sea nautical pop-up clothing shop that doubles as a pull-behind mobile trailer with storage. It’s an example that the company’s success locally and nationally isn’t just luck. The expertise is there to meet the challenges.

When Brendan O’Shaughnessy, owner of Ocean & Sea, wanted to grow his apparel business, he sat down with Gorney to talk about a mobile pop-up shop.

O’Shaughnessy wasn’t sure where to start. Gorney knew exactly what to do.

“He’s really good at casting vision and that’s his role in the company,” O’Shaughnessy said. “It’s up to others to actually execute these crazy ideas he comes up with.”

Gorney felt the unusual Ocean & Sea concept—a nautical branded company based in landlocked Kansas City—must play a role. He suggested playing off the company’s quirky branding by crafting a wind wagon, sometimes called a sailboat wagon. The idea evoked an image of the 1800s when settlers in Kansas territory hoisted sails to wheeled-trailers to move with wind power.

Gorney accomplished that innovation by building a sailboat atop a 30-foot long and 8.5 foot wide trailer that could be pulled behind the company van. The pop-up shop would have room for storage—and it would be impossible for customers to miss.

“As soon as I heard him say it out loud, I knew right then and there I was going to do it,” O’Shaughnessy said. “The idea of a vessel being pushed on wheels on land was the perfect correlation.”

26 THINKING BIGGER BUSINESS // April 2017

Lead fabricator Matthew Gregory at work on a project.

O’Shaughnessy knew it was what he needed to build on his brand and to stand out from competitors. When Gorney first proposed the goofy idea, O’Shaughnessy had only a few key competitors. Just a few years later, he has about 30 apparel and print competitors. The pop-up shop provides a uniqueness to Ocean & Sea. That’s what Second Life strives to do for every client.

ESPRIT DE CORPS ON DISPLAY

A recent tour of Second Life Studios provided a meaningful glimpse into the company’s success. Designer Siegfried Flores leaves his office to show off the cavernous shop. Flores talks comfortably as a mill saw hums in

the woodshop and welders meld steel in the metal shop.

He points to meticulous piles of century-old reclaimed wood, piles of castors and carefullyplaced clamps that sit at the ready for the next project. Inside the metal shop he calls attention to a steel structure that will become the mobile back bar for the Rockhill Grille’s new event space. He and the welders show off another piece that is headed to Chicago soon.

Flores emphasizes that the Second Life team is anything but cloistered in their respective work areas. They all work together and think creatively.

The esprit de corps was on full display in January when an

employee stopped a Saturday shipment just as it should have been on a truck headed to Chicago to meet an urgent deadline.

“It was actually done and it was built how we designed it,” Gorney said. “But our shop fabrication designer said we needed to take one more look at it, and they changed a few small things and added a few small things just to make it stronger.”

They missed the truck, but that was no problem for Second Life and its creative team. They rented a box truck and two employees canceled their weekend plans, jumped in the truck cab and embarked on a lively road trip that is sure to go down in Second Life

owner’s job is to support them,” he said. “To just clear a path for them and let them roll.”

The team was not assembled haphazardly. The firm has hired employees strategically not only for their skills, but also because they match the culture at Second Life Studios.

“The wrong employee can be really toxic,” Gorney said. “You need people who are on board for the mission of the company. You need those who are on board for the vision of the company.”

Gorney said the firm must have people who want to dig in and get their hands dirty.

“You need people who are willing to get on the boat and help row. We don’t need someone standing at the back of the room telling us how to row better,” he said. “We need people who are willing to help us fix it as we go.

And that’s everyone who is here.”

DESIGNING THE FUTURE

Gorney knows many are dismissive of having even one business partner, let alone a team of four owners. But he said Second Life has been so successful because the four of them

Studios lore. They were back to work

by Monday, sharing the adventure.

“It was just one piece, but it was really important,” Gorney said. “Better to delay and deliver quality than to rush and not deliver what you say.”

Gorney said it is a classic reminder that the Second Life Studios staff is the essential ingredient to maintaining impeccable quality. Their effort allows the company to not only hit the bottom line, but also to grow.

Gorney, a constant learner, said he strives to get out of the way and let the staff do their job.

“If you hire people who can achieve at a high level, then the

he passed down to his grandfather. His father owned an investment firm, and his mom owned an interior design business.

Trumpp and his brother started a woodworking company.

Tucker and Lakey both had a natural entrepreneurial spirit that has helped shape the business. Some of the entrepreneurs collaborated as contractors on projects before taking the leap together to open Second Life Studios. “Without these three guys, I think none of us would want to do this anymore,” Gorney said.

Each brings a unique background to Second Life, including Trumpp’s work as a Christian missionary and Gorney’s work in disaster relief and travel. Their work before Second Life adds a unique artistic feel and a utilitarian aspect to their design.

That spirit has served the firm well so far during its growth. The revenue grew 200 percent from 2015 to 2016 and they’re on track to do the same in 2017.

To reach those goals, they’re focused on the national market, which already represents their biggest growth area. The firm

“If you hire people who can achieve at a high level, then the owner’s job is to support them. Just to clear a path for them and let them roll.”

Chris Gorney // co-owner, Second Life Studios

have different skills and expertise and don’t get caught up in egos.

Gorney is the creative director, while co-owner Mitch Trumpp is fabrication director. Barry Lakey is the managing director, and Dylan Tucker is the chief financial officer. They all know their strengths, Gorney said.

Some of the owners have an entrepreneurial spirit in their blood. Gorney’s great-grandfather owned a masonry company that

hit a major milestone this year when it hired the first employee not based in Kansas City. The project developer will work out of Chicago, conducting sales for Second Life. It’s a big step for a firm that had an office staff of two just three years ago.

The business is also moving to a larger space at Roanoke and 32nd Street in Kansas City later this year. It’s the third move in four years. Gorney said the

space is large enough to account for growth and to help secure their future.

CULTURE CHANGES

While every small business must think constantly about the bottom line, the owners at Second Life Studios must also consider how to maintain the firm’s culture and identity as they continue to expand and add employees.

“One of the biggest advantages we have is that our shop and design team know each other,” Gorney said.

The shop—skilled wood workers and welders and other highly trained professionals—can sit down and easily hammer out plans with the firm’s designers.

It happens organically, he said, because they’ve chosen wisely when hiring each employee.

Sometimes that connection is lost at similar firms where each person is caught up in his or her own world. Second Life Studios has avoided that in part because the owners are part of each workforce where there could be division.

That teamwork is responsible for the high-quality work and customer service that has driven sales. As they grow, Gorney said, the owners will have to double-down on their hiring process.

“The larger we get, the harder it is to care for clients on the level that we want to,” he said. “I heard someone say that the larger you get, the smaller you have to act.”

Gorney knows Second Life can accomplish this by using some of the same precision that they’ve utilized to get where they are now. No matter how large they grow, Gorney said the mission and focus of Second Life Studios will remain the same.

“Our goal is to work with other people in the design-and-build world to help make their ideas come to life,” he said.

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

SMART COMPANIES THINKING BIGGER®

27

BIGGER | marketing S M A R T

( by Anne Cull )

S T R AT E G I E S

Who Owns Your Company’s Social Media Accounts?

Establishing a definitive policy can protect your assets.

I

f you haven’t thought about how your social media accounts operate and about who owns them, it’s time to wake up before you have a nightmare.

According to one of several court rulings, the owner is the person whose name appears as the administrator on the account. EEK! That’s scary. Does your company have anything in writing that says otherwise? Do you know whose name (or names) is listed as the administrator on your company’s social media accounts?

Your social networks should be viewed as company assets. If you have employees managing them without a signed

28 THINKING BIGGER BUSINESS // April 2017

ownership policy, your organization could be in danger.

How can you protect your business?

Create a social media ownership policy, and include the following fundamental elements. Always be sure to consult with an attorney or HR professional when creating compay policies.

Ownership of Social Media Usernames This is a no-brainer. Your company’s name is part of your brand. It should not be used in any other way by anyone who is not part of, or affiliated with, your company.

Your ownership policy should specifically outline all your company’s usernames, and state clearly that you own the rights to each name. It should also say that no new company usernames may be created at any time without express permission from company leadership.

Ownership of Social Media Content Employees should agree that any content they create and post on your company’s social networking sites is under a work for hire agreement and is the sole property of your company. Work for hire means the content employees create is part of their job. Even if they have not specifically signed a work-for-hire agreement, work for hire is automatically implemented when someone becomes an employee of your company.

Also include language about content an employee may not consider to be work for hire. This is to cover yourself if there is any disagreement. Employees must agree to assign your company all rights, titles and interests to the content that is not deemed to be work for hire.

What happens if an employee who creates and posts social media content leaves?

You’ll need an extra line item in your policy.

It should say that any content the employee created on or for your company’s social networking sites, or that relates in any way to your company, may not be used under any circumstance after employment.

Ownership Rights to Access and Control Company Social Media Accounts Any employees given administrative rights to company social media accounts must agree to provide access to all passwords and usernames. They must agree to provide access to any online groups they create under your company’s name. And they must transfer all management rights and authorizations of those groups to the company upon request, or at termination.

All company social media accounts should be registered using a company email address, if possible, to avoid confusion.

(not the same as LinkedIn fans following your LinkedIn company page) and personal Twitter account followers. The same is true of other personal accounts belonging to Ownership of Company’s your employees that are not affiliated with Social Media Fans and Followers your company and were not set up under a Your company owns the rights to the work-for-hire agreement. fans and followers of all social media Just because a prospective employee has accounts it has established. This includes scores of great connections doesn’t mean Facebook, LinkedIn, they suddenly belong to your company Twitter company when you hire that Your social networks account followers, person. You own your comshould be viewed Instagram account pany accounts; employees followers and others. own their personal accounts. as company assets.

Your company also Once you’ve created your owns the rights to any social media ownership contact lists, Twitter policy, it’s important for all lists, Facebook custom audience lists and employees to review it and have the opporall other fan and follower lists employees tunity to ask questions. Ownership of your created while they were an employee or company’s social media accounts should under a specific work-for-hire agreement. not be negotiable. If you get pushback from Don’t overstep the boundaries, however. someone on any of the four policy elements Your company does not own your employoutlined here, that’s a good indication that ees’ personal account logins. This includes person shouldn’t be managing a social Facebook friends, LinkedIn connections media business account.

Include Consultants and Outside Agencies in the Policy Don’t forget consultants and agencies who are hired to manage your social media on an outsourced basis. They often take over administrative rights, which means they could kick you off your own social networks at any time. It’s critical to have a signed contract that says your company owns everything, regardless of the work these consultants do on your behalf.

The last thing you want is a contractor running off with full control of your company’s Facebook page after you’ve worked so hard to earn a good reputation and a lot of supportive fans. It’s your responsibility to protect those fans, as well as your company’s reputation.

Social media ownership policies and contracts give you more power and could possibly save you the hassle and expense of a lawsuit.

Anne Cull is the president of ThinkViral LLC, a business development firm that helps companies use social media to accomplish sales goals.

(816) 479-5498 // www.thinkviral.com // @ThinkViralKC

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816.474.5333 sales@exhibitassociates.com SMART COMPANIES THINKING BIGGER®

29

BIGGER | tech S M A R T

( by Elizabeth Usovicz )

S T R AT E G I E S

Big Data and Small Business Your guide to managing disruptive technology.

I

n films like “The Matrix” and “Blade Runner,” disruptive technology takes the form of rogue androids longing to be human or suffering from a Big Data glitch in their algorithms. Technology may not be as life-threatening as Hollywood portrays, but innovation is often disruptive. Consider the impact of email on direct mail marketers or of the internet on travel agents.

What emerges is a cautionary tale that technology breakthroughs can be hazardous to your business.

Clayton Christianson, Harvard Business School professor, first used the term “disruptive technology” in his 1997 book “The Innovator’s Dilemma” to describe the advantages of innovations and the perils of ignoring them. The next big disruptor you can’t ignore is Big Data.

The looming impact of Big Data can be similar to a tsunami waiting to happen.

Don’t wait for the tidal wave. Your business has options for managing technology disruptions if you choose to be proactive.

Defining Big Data Big Data describes data volumes too large for traditional data processing. The term also is used for predictive analytics, as well as other methods of capturing value from data.

Big Data’s growth is fueled by the explosion of devices and sensors capturing that data. According to IBM, 90 percent of the world’s total data has been created just within the past two years. There are no signs of a slowdown in this data generation

30 THINKING BIGGER BUSINESS // April 2017

or its business impact. Fortunately, Big Data’s proliferation has also created a fast track for the development of applications that capture and analyze data.

Here’s a guide to managing Big Data’s impact on your business.

Customer Relationship Management Companies that capture and analyze customer data to enhance loyalty and predict prospect behavior have a competitive advantage.

No matter how busy you are today, your future profitability depends on identifying sales opportunities faster than your competitors. If you haven’t invested in a Customer Relationship Management (CRM) system, now is the time.

Payments Transaction applications do more than speed up the payment process. Many apps also provide predictive marketing data, such as recency and frequency of purchases, as well as total and per purchase dollar volumes.

If your transaction processing application doesn’t support a range of digital payment options and analytics, it’s worth reviewing the current software landscape.

Two of many sources are PC Magazine’s Card Processing Index, which includes search criteria based on your business, and Small Business Trend’s list of digital payment options.

Digital Wallets The flip side of payment apps is the growing number of digital wallet options for consumers. As the smartphone becomes the device of choice for digital payments, supporting these options and incorporating mobile access to coupons and loyalty

programs will become increasingly important. Before you accept digital wallet applications, get familiar with the current players as this market emerges and consumer adoption increases.

Business Intelligence and Analytics Spreadsheets are a business basic.

However, in a Big Data environment they’re not enough to keep pace. Business intelligence tools enable you to see the big picture and the predictive view of your data in order to make better, faster decisions. Start by surveying the range of small business intelligence tools. PC Magazine’s review (http://www.pcmag.com/ article2/0,2817,2491954,00.asp) can be a helpful place to start. Once you have selected an app, test it within a defined activity or function and introduce it gradually into other areas of your business.

Security Make security a priority. Request and read the written security policy for all applications you introduce into your business. Your policy review should include the following, as well as other elements: » Customer and provider roles in data protection » Overview of security standards » Physical location and security of data facilities » Industry certifications » Service Level Agreement and downtime Big Data can help you turn bigger profits if you turn it to your advantage rather than letting it overwhelm and disrupt you.

Elizabeth Usovicz is principal of WhiteSpace Consulting®, specializing in top-line revenue and business strategies for high-growth companies, new ventures and business units within established companies; keynote speaking and strategy session facilitation.

(913) 638-8693 // elizabeth@whitespacerevenue.com

BIGGER | law S M A R T

( by Lora Jennings )

S T R AT E G I E S

Top 5 Mistakes When Maintaining Employee Personnel Files Keeping records requires an organized, thoughtful approach.

A

s you hire employees in your company, you will end up with a significant amount of information about them. It is important to know what information should be documented and retained—and how best to handle those records. If you don’t do it right, your company may be in danger of federal or state enforcement actions and civil suits.

Competent risk management also requires an organized and thoughtful approach to record-keeping. It’s easy, however, to let some record-keeping “musts” slip when you are running a small business.

Here are the top five mistakes small businesses make when it comes to maintaining employee personnel files.

Failing to Implement Documentation Practices Not every document belongs in a personnel file. Employee files should include the job description, application, resume, offer of employment and terms of employment.

The position and rate of pay, W-4 details, performance evaluations, disciplinary actions and termination documents also should be included.

Train your human resources manager or other designated employee on documentation practices. Supervisors and managers also should be trained on the importance of documenting relevant performance issues and discipline.

Keep employee files organized. Health information, workers compensation information and medical certifications should be kept separate from the general personnel file. Employers may want to keep payroll and compensation information separate as well, including any wage garnishments.

Finally, do not treat the employee personnel file as a “catch-all” file for any document referencing the employee. Instead,

5

the human resources manager or other designated employee should capture and retain documents relevant to the employee’s performance, compensation, performance, investigations, discipline and separation.

Lack of Training on Proper Documentation Employee files are company records, just like any other files. This means that documents in an employee file may become exhibits in a lawsuit years later. This makes it particularly important for supervisors and managers to prepare performance reviews and internal communications and complaints in a thorough, accurate and professional manner. You can save a lot of headaches (and possibly some money) if you train your managers on the right way to handle these matters.

4

Not Limiting Access to Employee Records Employers should limit access to personnel files. Personnel files contain information about employees’ addresses, job histories, health information and disciplinary actions. Employers should restrict access to personnel files to only those who truly need to see the information, such as the human resources manager and owner.

Employers can be held liable for failing to maintain the confidentiality of employees’ medical and health information. That makes it critical for employers to ensure that this information and documents are kept confidential, and only those with legitimate need for the information can access it.

3

Maintaining Health Records in Personnel Files Employers are required to maintain employee medical and health information in a separate file. Federal law allows employers

2

to require an employee to complete a medical examination after an offer of employment has been made and prior to the employee performing his or her duties. A company may make the results of the examination a condition of the offer of employment.

Federal law also requires, however, that information obtained about the employee’s or applicant’s medical condition or history be treated as confidential medical records. They must be maintained in separate forms and in separate medical files. Supervisors and managers may be informed about necessary restrictions on the work or duties of the employee and necessary accommodations.

Records pertaining to FMLA medical certifications, recertifications or medical histories are required to be maintained as confidential medical records in separate files/ records from the general personnel files.

1

Not Maintaining Personnel Files The biggest mistake employers can make regarding personnel files is not keeping them at all. A well-documented personnel file is key to protecting the employer in audits and lawsuits. Well-kept personnel files allow the employer to properly supervise and to review employees’ performance.

An employer often must demonstrate when, how and why an employee was disciplined or terminated. Employee turnover makes it likely that co-workers who had personal knowledge of events leading up to an employee’s discipline or termination may no longer be employed. The employer then must rely on documentation in the personnel file. That’s when employers of all sizes see clearly the value of properly maintained personnel files.

Lora Jennings is an attorney with Martin Pringle, serving in the firm’s Overland Park office. Her practice focuses on business and employment law litigation and consulting.

(913) 491-5500 // lmjennings@martinpringle.com

SMART COMPANIES THINKING BIGGER®

31

BIGGER | hr S M A R T

( by Belinda Waggoner )

S T R AT E G I E S

Involuntary Departure // It’s all pretty much

the same, except that many states require that the employee’s final pay be delivered on the separation date. A check will do unless there are other provisions such as a separation agreement that lays out a different schedule in exchange for a release.

Benefits

Voluntary Departure // If you offer benefits

The Dearly Departed What to do when an employee leaves you.

W

e get a lot of questions about how to handle employee departures, whether they’re voluntary or involuntary. It’s clear that entrepreneurs aren’t really sure of their responsibilities in this area. To ensure that you do all the right things, let’s go over the fundamentals so the next time it happens, you’ll know what to do.

The following points are high level and not unique to you, so it’s a good idea to develop a departure checklist to ensure you don’t miss something. Break your checklist down by voluntary versus involuntary, and be sure to include who is responsible for completing each piece.

Resignation Letter

Voluntary Departure // A verbal resignation is

okay for starters; that’s usual and expected.

But you do need to ask for a formal resignation letter for your personnel files or, at a minimum, a resignation email sent from the 32 THINKING BIGGER BUSINESS // April 2017

employee. Why? You wouldn’t believe how many former employees find their next gig doesn’t work out well, but they haven’t been there long enough to file for unemployment with the new company. They then decide to file for benefits, naming you as the last employer. No, really. That happens. If your file is backed up with a resignation letter, there’s no claim against you for unemployment.

Involuntary Departure // None needed (for

obvious reasons).

Final Paycheck

Voluntary Departure // When someone gives

notice, you generally pay the person through their termination date, plus anything else you owe, like accrued but unused PTO or vacation pay. Don’t want to pay out PTO or vacation? Be sure you know the rules around payment for time earned. Many courts view accrued but unused time as earned pay.

Make sure you know the rules; otherwise, you could easily end up with a complaint filed with the Department of Labor. Nobody has time for that and the hassles it causes.

As for voluntary departure, the final pay usually can be made on the next regular payroll.

such as health, dental, vision or life insurance, there are rules that specify the actions when someone leaves you. If you have more than 20 employees, COBRA takes effect.

That means you must offer an extension of those benefits, on the former employee’s dime of course, within a strict timeframe after separation from employment. That is usually 10 days after the final date of employment. Not doing so can land you in hot water. If your company has fewer than 20 employees, depending upon the state in which you do business, State Continuation takes effect. That means the insurance company is required to offer continuation of benefits timely to the departing employee.

Both of these mandates are governed by one thing—the employee’s termination date. This means that you have to report these departures timely to the correct entities to be sure your legal responsibilities are met under COBRA or State Continuation.

Involuntary Departure // The procedures

are mostly the same as a voluntary departure, unless the departure is for reasons of gross misconduct. If that is the situation, your obligation to provide continuation may be limited. It would be a good idea to talk to a human resources professional or a lawyer if that’s the case. But if gross misconduct is the issue, chances are you have already sought expert advice.

Asset Management

Voluntary Departure // Do you know what

company assets are in the possession of your employees? The big things are easy to remember, like laptops and cell phones.

But does the employee have office keys, key fobs, files, office materials or other information in his or her personal possession that belongs to you? Think about how you track it. There’s nothing worse than realizing, two weeks after a departure, that you’re missing something important or, worse, strictly confidential. This is incredibly important: If a former employee hasn’t returned something

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generally not productive if you have dismissed an employee. It’s probably best not to waste the time unless you like angry, hostile exchanges that could open the door to other things you don’t want to deal with.

Shut Them Down

Voluntary AND Involuntary Departures //

We’re often shocked that IT systems and access aren’t on the checklist for someone’s last day with you. Bad things can happen if your former employee has access to email, documents, your building or anything else they shouldn’t once they are no longer employed. That is true regardless of whether it’s a voluntary or involuntary departure.

Whether an employee is leaving of his or her own accord or not, be prepared for the situation. Have a plan, a checklist and a process to make sure you’re doing the right things. That may save you a lot of trouble and headaches in the future.

Belinda Waggoner is the president of People People, the company that helps entrepreneurs with the people in their business.

(913) 940-5391 // www.peoplepeopleus.com

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SMART COMPANIES THINKING BIGGER®

33

Fi

BIGGER | growth S M A R T

( by Michael Helmstetter )

S T R AT E G I E S

field and apply that concept to another, not necessarily related field. One recent example occurred with a partner who owned a proprietary technology that was able to tweak a plant’s natural growth to produce more of a certain type of enzyme. That resulted in a plant with more nutrition.

At first glance, this sounds great. But a “what if?” line of thinking could help you look for further uses: What if we could trigger this in other plants? What if this technique could trigger different results?

Looking for adjacent opportunities when moving a concept to market is something that we execute as a regular practice.

Unfortunately, “what if?” thinking doesn’t always go your way. Sometimes an idea just doesn’t work and you may have to spend time and money to realize that. The beauty, however, lies in framing that experience: You didn’t waste your investment; you just purchased additional knowledge with it.

Another way we use “what if?” thinking is in applying technology and innovations to completely new scenarios. To continue the example from above, maybe that enzyme in development isn’t nutritious but instead is applicable as a great dye. Perhaps it’s able to absorb another chemical, or maybe it has unique biomass properties.

This is how “what if” thinking can lead to new opportunities. Just as it works in science and technology, it also can work when dealing with the nuts and bolts of any business deal: What if we extended the term of the deal? What if we adjusted the royalty payment structure? on innovation in the agriculture, animal A willingness to explore and a nimble health and food sectors, I find that “what culture means that opportunities exist if you if?” is a foundational expression to our are willing to look. Applying this philosophy business model. These words invite an may take some getting used open mind, encourto, as learning how to share, age innovation, new These words invite listen, contribute, support, dig, insights and unseen research and evaluate is hard an open mind and connections—like work. But it is often rewarding. spark to kindling. encourage innovation.

If you’re willing to encourIn our business age imagination, free-spirited model, we acquire a conversation and a new depth product or technology, of engagement, go ahead and then undertake the research and developgive this line of thinking a shot. Why not? ment necessary to advance the science, to Ah, but that’s another pair of powerful “de-risk” it and push it closer to a marketwords for another day. able, commercially-viable product or service. We identify new ways of doing things and uncover and follow an executable path.

Dr. Michael Helmstetter is co-founder, president and chief executive officer of Technology Acceleration Partners It often is a “what if?” moment that leads (TechAccel LLC). michael@techaccel.net. us to take a technology that works in one

What If? These two words can be like spark to kindling when it comes to business growth.

T

wo of the most powerful words in the English language are usually uttered as a question that includes a moment of pause: “What if?”

These words signal a constant questioning that can capture hearts, minds and an attention or ability to think outside the box. The real source of their power is the permission they grant to imagine things differently.

As the CEO of TechAccel, a technology co-development partner with a focus

34 THINKING BIGGER BUSINESS // April 2017

THINK BIGGER. TAKE FLIGHT. ON MARCH 4, KANSAS CITY’S small business community filled the Downtown Marriott Count Basie Ballroom to pay tribute to this year’s winners of the 25 Under 25® Awards.

Hosted by Thinking Bigger Business Media, the awards recognize the top 25 companies in Kansas City with fewer than 25 employees.

In addition to the 25 companies being honored, the 25 Under 25® Awards also saluted Bob Regnier of the Regnier Family Foundations with the Entrepreneurial Legacy Award.

The brainchild of Thinking Bigger Business Media President Kelly Scanlon, the 25 Under 25 ® Awards were founded 16 years ago to honor Kansas City’s small businesses for the contributions they make to the economy and the community. This year’s 25 Under 25 ® winners were chosen from more “A mile of highway will take you a mile.

A mile of runway will take you anywhere.”

-Unknown

than 1,400 nominations.

The awards wouldn’t be possible without the generous support of our sponsors.

SMART COMPANIES THINKING BIGGER®

35

36 THINKING BIGGER BUSINESS // April 2017

THE 25 UNDER 25® CLASS OF 2017 Artistic Concrete Surfaces LLC

Hartline Construction

Sage

BioStar Lighting

Hitch Fit

SARIN Energy Solutions

Brown Button Estate Sale Services

International Express Trucking Inc.

Sphere3

J. Rieger & Co.

STRATA Architecture Inc.

Certified Radon

Kansas City Bier Company LLC

Superior Disposal Service Inc.

DuBois Consultants Inc.

Lever1

Towner Communications LLC

ER | Marketing

MindLift

Treadwell

Fortiviti

Plasterkraft LLC

Generator Studio

SafeDefend LLC

Worldwide Innovations & Technologies Inc.

SPONSORS

LeaderFuel technology group solutions llc

Nomination Sponsor EAG Advertising & Marketing Band Sponsor Arvest Bank Red Carpet Sponsor Lead Bank VIP Reception Sponsor Freedom Bank Alumni Reunion Sponsor Country Club Bank Print Sponsor Proprint Digital Entrepreneurial Advocate Sponsors BMO Harris Bank Exhibit Associates Media Sponsor The Heisenbergs Alumni Leader Sponsors Crema Heartland Seating Inc.

Entrepreneurial Patron Sponsors Blue Cross & Blue Shield of Kansas City Burns & McDonnell Bank of Blue Valley CBIZ_MHM Crema HEMP HSMC Orizon JE Dunn KCP&L Martin Pringle Law Firm People People Principal Financial Group Sprint Supplier Diversity Staffing Kansas City Social Media Sponsor Think Viral

2016 ADVISORY BOARD Jeanie Brewster :: JeanieB Inc. Joyce Christanio :: Sprint

Adrienne Haynes :: SEED Law LLC Daniel Linhart :: Crema Denise Mills :: LeaderFuel Kathy Peterson :: Heartland Seating Inc. Joe Valenciano :: BMO Harris Paul Weber :: EAG Advertising & Marketing Michelle Word :: Burns & McDonnell

PANEL OF JUDGES Alan Farris :: Landmark National Bank Katheigh Degen :: Twin Financial Darren Dupriest :: Validity Screening Solutions Michelle Word :: Burns & McDonnell Rachel Hack Merlo :: Google Fiber Daniel Kjergaard, CPA :: CBIZ_MHM

SMART COMPANIES THINKING BIGGER®

37

SCALEUP! KC

RUBY JEAN’S JUICERY

( by Terry Wooten )

A Juicy Passion for Family and Health STARTING RUBY JEAN’S JUICERY HONORED CHRIS GOODE’S GRANDMOTHER AND STOKED AN INNER FIRE.

C

hris Goode had a good job as a claims adjuster, but it didn’t ignite the fire inside him.

Goode wanted to be passionately involved in something, something that would help people and also keep alive the memory of his beloved grandmother. Ruby Jean’s Juicery has allowed him to achieve both.

38 THINKING BIGGER BUSINESS // April 2017

Goode named the business Ruby Jean’s for his grandmother, both to keep her memory alive and because he thought she might not have died as early if she had been raised on a healthier diet. His grandmother, who was born in Oklahoma and later moved to Kansas City, was raised on a diet of fried foods, heavily-sweetened desserts and

buttered cornbread. She fed her family that way too.

THE CONVERSION

A former football player at Missouri State University, Goode became a convert to juicing after visiting Los Angeles. A couple of friends there were juicing disciples. Although leery

SPONSORED CONTENT

The business has not only thrived, but is expanding. He has been honored by how the community and the city has received the Juicery, and he said he’s even received feedback from around the country.

TIME TO SCALE UP

Photography by Travis Young, Austin Walsh Studio

at first, Goode changed his mind, in part after they showed him the documentary “Fat, Sick and Nearly Dead.”

He then took a 10-day juicing cleanse and was captivated by the process. He started visiting juice bars around the country and learning all he could about the process.

“I landed on my passion,” he said.

Goode opened Ruby Jean’s Juicery on July 25, 2015, in the Westport area. Ruby Jean’s featured cleanses are designed to eliminate toxins from the body and refuel it with vitamins and nutrients.

Goode is not content to rest on his laurels, however, and wants to continue to sharpen his business skills. He was enrolled in the FastTrac program sponsored by the Ewing Marion Kaufman Foundation to help budding entrepreneurs when he learned about ScaleUP!, a program that provides small business and technology firms with training, analysis and guidance.

ScaleUP! works with firms that have been in business for two years and helps them move upward. They must have sales of $150,000 to $500,000 with potential to move to $1 million. Goode said the Juicery is still in that range, but he hopes expansion will help him breach the $1 million mark.

Ruby Jean’s has 12 employees, and Goode foresees adding more with expansion.

Goode said he benefited from the program in a number of ways. ScaleUP! brings in entrepreneurs to talk to the participants about business operations. There is a lot of camaraderie and many of the stories you hear are transferable from one business to another, Goode said.

“The mentorship is a huge component,” he said. “We have an advisor we work with, and they are big on accountability,” he said.

“They want to see actual changes made as they are needed. That has been valuable.”

As a result of ScaleUP! mentorship, Goode has made changes in packaging and a “deep dive on cost points,” he said.

ScaleUP! also provided Goode with financing connections and knowledge. “There are some collusions with lending sources that have come directly from ScaleUP!,” he said.

Although Goode already had expansion on his mind when he started ScaleUP!, the experience has him thinking even bigger. He opened a second store in Springfield, Mo., in March and has a third planned for downtown Kansas City in late spring 2017.

Goode said the firm has another facility in the works in midtown Kansas City. It will house offices and the factory as well as a Ruby Jean’s Kitchen and Juicery, which will focus more on healthy foods. He also has a food and juice truck about ready to roll.

JUICY ADVICE

Goode’s advice to other entrepreneurs is to keep everything in perspective and be willing to sacrifice. “Don t underestimate the challenge,” he said. “We often like to under budget, to under prepare. But you want to go above and beyond. We’re typically visionaries, and we go in with an unrealistic set of expectations. Just keep it more realistic.”

Goode found his passion in Ruby Jean’s Juicery in that he can honor his grandmother and provide a beneficial service to other people. “It is a blessing to see all of these walks of life gathered together on a premise of health,” he said.

Terry Wooten is a content development manager for Thinking Bigger Business Media.

ENTREPRENEUR

Chris Goode COMPANY

Ruby Jean’s Juicery 4001 Broadway, Kansas City, MO 64111 (816) 399-2596 www.rubyjeansjuicery.com

ARE YOU READY TO SCALE UP?

Want to take your small business to new heights?

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

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

For more information, visit www.scaleupkc.com.

SMART COMPANIES THINKING BIGGER®

39

BIG | talk

» The BIG thinkers behind the BIG ideas. »

Pat Williams Pat Williams, the co-founder of the Orlando Magic, is a motivational speaker and senior vice president of the NBA’s Orlando Magic.

He began his career as a minor league baseball player. In the late 1960s he moved into basketball.

He was the general manager of the 1983 world champion Philadelphia 76ers, managed both the Chicago Bulls and the Atlantic Hawks, and was a partner in the creation of the Orlando Magic. He’s written more than 100 books, including his latest, “The Success Intersection.”

Co-founder of Orlando Magic, motivational speaker and author KELLY » In “The Success

Intersection,” you say you can teach us how to find the secret ingredient for success.

Tell us about that.

PAT » Here’s

what I’ve discovered. When your greatest talent intersects with your strongest passion, that’s the sweet spot in your life. That’s where you’re going to have success because your talent is merged with your passion, and that’s a dynamite combination. The younger you can figure that out, the better.

I was seven years old when I fell in love with baseball. And I knew at age seven exactly what I wanted to do with my life—I wanted to be a ball player. And I was for quite a period of time.

And that transitioned over into the executive end of sports. I had some talent there, and an enormous amount of passion. So, I’ve been living in that sweet spot my entire life. That’s what I’m encouraging people to analyze and evaluate in their own lives and the lives of the young people they are overseeing.

KELLY » How do we discover

what our true talents are?

PAT » That’s

where mentors come in, or teachers or life coaches, who can evaluate and speak openly to us, particularly when we’re young. We need people around spotting talent and talking to us about it. When I was a young baseball executive,

40 THINKING BIGGER BUSINESS // April 2017

I didn’t know whether I was any good or not. But the man I was working for at the Miami Marlins, Bill Durney, signed a picture for me of him. The meat of what he signed was, “Pat Williams—a man with a great present, but a much brighter future in sports.” Signing that picture gave me hope that I was going to be good in this particular area. I was 24, and I still have that picture from over 50 years ago.

KELLY » We are mentors every

day to people, and we don’t even know it sometimes. Your story is a powerful lesson of that.

PAT » You’re

spot on there. Often, young people don’t know whether they’re doing a good job or not, whether they show signs of real ability. There’s a burden on adults working with youngsters to give them hope and, above all, encouraging a career path where they have an ability to make their living and do well.

KELLY » You talk about being

a “successful failure.” What does that mean?

PAT » We’re

going to have setbacks and disappointments. Don’t waste those periods of struggle. Learn from them, benefit from them, grow from them, take advantage of where you stub your toes because when we do land flat, we are teachable. When we’re doing well, we tend to become very self-sufficient, a little arrogant even. But when tough times hit, oh boy, are we teachable.

For example, Coach John Wooden ran summer basketball camps for many years, touching thousands of youngsters. You talk about a legacy, not just as a great basketball coach but as a great impacter of youngsters.

Wow. But I’ll tell you this.

Coach Wooden wasn’t going through every day thinking about his legacy. Coach Wooden lived by this every day, “Make each day your masterpiece.”

That little quote probably should be taped up on our shaving mirrors and our computer screens, thumb tacked up in the lunch room. Make each day your masterpiece. That’s a good way to go about life.

KELLY » How does all of this relate

to our legacy?

PAT » I

don’t worry a whole lot about my legacy. I just go about my business, which is helping to run an NBA team and speaking, writing and mentoring. Just go out and do the very best you can, enjoy what you’re doing, reach as many people as you can. Legacy will take care of itself.

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

Business Bits. Growing your business bit by bit.

As an entrepreneur, you’ve done it; sending invoices after the kids are in bed, paying bills on Saturday, putting off creating that contact list because it just takes too much time. But what are the options? Other than the obvious answer of cloning, your options are to hire staff or outsource work. Depending on where your company is in its growth, this can be a tough decision. Hiring staff means you have enough work that you’ve been doing in your own spare time to fill someone else’s day for 20, 30 or 40 hours each week. But if you have less than 20 hours a week of work, outsourcing can be a very viable option.

Business Bits provides outsourced back office staff to support your growth, bit by bit and at bite sized rates. Employing user-friendly office tools such as QuickBooks and SharePoint, Business Bits can help you manage your growth in an accessible environment, where you are not limited by office hours. Pick one bit or two, pay by the hour, and grow your business bit by bit.

SERVICES OFFERED: ACCOUNTING BITS Detailed entry of information, job costing and specialty reporting. u Accounts Payable u Accounts Receivable u Payroll Time Entry u Bank Account Reconciliation u Credit Card Reconciliation u Certified Payroll Reporting

ADMINISTRATIVE BITS Schedule meetings, clean up email, manage contacts, data entry and more.

HUMAN RESOURCE BITS Set up new employees in QuickBooks and put together new hire packets.

And there’s a few things that Business Bits won’t do, because we’re not experts in everything.

We won’t sign your checks. But we will print them, match up the invoices, and get them ready for you to sign. We won’t submit your payroll for processing or file payroll tax payments and reports.

But we will do your time entry and generate reports for you to review before you process the payroll. We won’t do your taxes. But we will work with your tax accountant and help them with information and data.

Call or email Business Bits today to schedule your bits of business!

913.579.3603 or info@mybusinessbits.com

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43

Meet The New Mobank!

WE’RE GROWING – WITH MORE LOCATIONS… MORE CAPACITY… MORE WAYS TO HELP YOU MEET YOUR FINANCIAL GOALS You may know us as Bank of Kansas City, which was formed as a division of BOK Financial in 2006. Or you may know us as Mobank, a local bank with four locations, a reputation for world class personal service and more than a century of staying power. In 2016, BOK Financial acquired Mobank, and on February 20, 2017, our two Bank of Kansas City locations became Mobank banking centers, giving us a total of six locations in the Kansas City area.

Brookside

•

Crossroads

•

Downtown

•

Lee’s Summit

•

Overland Park

•

Prairie Village

WE LIVE, WORK AND PLAY WHERE YOU DO BOK Financial employs more than 300 people in the Kansas City metro area. Community is important to us – because we’re a part of it. Between our banking centers, our online mortgage company (HomeDirect), and our broker dealer operations, we have hundreds of loyal employees who are as committed to this area as you are.

WE BRING THE A-TEAM BOK Financial’s Treasury Service Customers have ranked our service “A+” in the most recent Phoenix-Hecht Survey.* See for yourself what “A+” rated service is all about. With clients from coast to coast, state of the art technology and customized solutions, we can help you improve cash flow, prevent fraud and streamline your business operations.

WE HAVE THE CAPACITY TO LEND WITH A FULL SUITE OF PRODUCTS That’s what you get from a top 25 U.S.-based bank.** Financial services to cover all your needs, including business loans, treasury services, investment management services, mortgage and wealth management. And, of course, everyday banking – in person, online or on the go. BOK Financial is a $33 billion, publicly-traded financial services company based in Tulsa, Oklahoma (NASDAQ: BOKF). We provide banking services throughout the southwest at regional banking locations.

WE VALUE THE COMMUNITIES WE SERVE BOK Financial continually gives back to the many communities it serves, including $5.2 million in contributions to more than 780 non-profit organizations in 2015. In addition, our employees pledged more than $2.2 million to support local United Way agencies. Combined with the corporate BOK Financial donation, our total United Way commitment was $3.2 million in 2015.

816-881-8220 | www.mobank.com

© 2017 BOK Financial Corporation. Banking services provided by Mobank, a division of BOKF, NA, Member FDIC, Equal Housing Lender. BOKF,NA is the banking subsidiary of BOK Financial Corporation. *Results are from the 2017 Phoenix-Hecht Cash Management Monitor Survey, which monitors both public and private U.S. corporations with sales of $40 million and greater. It ranks corporations in three performance categories: product performance, bank perception and relationship management.**BOK Financial is among the top 25 largest U.S.-based commercial bank holding companies in the U.S., based on total assets, according to SNL Financial as of 6/30/16.