Thinking Bigger Business—April 2018

VOL. 27 // ISSUE 4 // APRIL 2018

STAYING AGILE

Phone Medic heeds the call of local businesses looking for a technology repair partner.

BIGGER SALES

Relying on Referrals: Are You Doing It Right?

BIGGER HR

Set Policies to Avoid #MeToo » iThinkBigger.com

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Crap-your-pants chances.

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CONTENTS

APR IL 2018 VOL. 27 // ISSUE 4

IN FOCUS

46 Residential Real Estate Trends Local experts break down current trends in the market.

D E PA R T M E N T S

07 The Bigger Picture 08 Legislative Briefs 09 Biz Bits 11 BIG | deals 15 25 Under 25 ® Updates 50 BIG | shots

F E AT U R E

26 Looking Beyond

the Bottom Line

There are plenty of ways small businesses can give back to the community— and as many reasons for them to do so.

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

35 BIGGER | strategy Follow the Customer

36 BIGGER | hr IHow to Avoid the Blurred Lines of Harassment

38 BIGGER | law

22 | KC ENTREPRENEURS HE ON T R E V CO

Don’t Gamble With Your Venture

40 BIGGER | sales 3 Things You’re Doing Wrong With Referrals

42 BIGGER | customer service How Contractors Can Avoid Customer Service Complaints

Phone Medic stays agile to follow changes in technology.

16 4

THINKING BIGGER BUSINESS // April 2018

CHARGING UP FOR GROWTH B IG I N F LU E NC E

| 18

B IG S TA R T S

| 18

MADE TO LAST

Phone Medic employees, from left, district manager Andrew Garrett, project and training manager Brandon Smith and manager Zachary Richardson man the front counter and repair area of the Olathe location.

17

C O M PA N Y T O WAT C H

19

KC M A D E I T

20

ENTREPRENEURIAL JOURNEY

Professional Chats

Splashtacular

Trozzolo Communications Group

This fast-growing company capitalized on a technology trend.

The largest waterslide producer in the U.S. is based in Paola.

What started as a family business has grown into a collection of entrepreneurs.

SMART COMPANIES THINKING BIGGERÂŽ

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CONTENTS

APR IL 2018

ON THE WEB // iTHINKBIGGER.COM Web Columnists

PRODUCED BY

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Thinking Bigger Business Media Inc. ADMINISTRATIVE

Katie Bean President and Editor Megan Scanlon Operations and Events Manager SALES + MARKETING

Kelly Scanlon Business Development PRODUCTION & GRAPHICS

Carolyn Addington Production and Traffic Manager Kevin Fullerton Design Consultant

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Business Calendar

Dan Videtich Photographer CONTRIBUTING WRITERS

Ruth Baum Bigus, Dawn Bormann, Pete Dulin, Kat Hungerford, Julius Karash, Kate Leibsle, Sarah Stork Meyer, David Mitchell, Aaron Reese, Belinda Waggoner

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25 Under 25 � Awards

Learn more about the 25 Under 25® Awards Program for businesses with fewer than 25 employees. www.25Under25.com Quarterly Brew :30

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The information gathered and opinions expressed by the authors are intended to communicate information and are not necessarily the views of this publication. The intent of this

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prohibited. Thinking Bigger Business(ISSN 1068-2422) is published 12 times a year by Thinking Bigger Business Media, Inc. Subscriptions are $24.99 per year. This amount includes varying sales taxes, which are contingent upon the location in which the publication is sold. Standard Mail Postage Paid at Shawnee Mission, KS.

THE BIGGER PICTURE

Taking a Fresh Look at Thinking Bigger

I

t’s spring—a season that, for gardeners,

entrepreneurs. We’ll have events where

means planting and blooming. For

members of the business community can

others, it’s a time of fresh starts.

network and learn from one another. And, of course, we’ll recognize outstanding small

It’s fitting that Thinking Bigger Business

businesses with our 25 Under 25 Awards.

Media is making some changes this season.

(Read about the company’s acquisition on page 11.)

(Nominations begin Aug. 1!)

Kelly Scanlon has been at the helm of Thinking Bigger

Not only will we continue to what we’ve been doing,

for 25 years, cultivating a space where small businesses

we hope to grow in all of these areas—we are Thinking

can learn from each other and be recognized for their

Bigger, after all!

accomplishments. She’s been an invaluable contributor

I welcome hearing from our readers and event guests

to the entrepreneurial ecosystem in Kansas City.

to find out what you’d like to see more of (and perhaps

This spring, I’m here as a new caretaker for that biome.

what you’d like to prune). Thinking Bigger is a resource

What Kelly has carefully tended over the years, I plan to

for the small business community, so it should be

continue to water and grow.

tailored to the wants and needs of that audience.

That means we’ll keep telling the stories of forward-

I’m excited to be at Thinking Bigger as president and

thinking and growth-minded small businesses. We’ll

editor, and I look forward to growing as a resource for

find experts who can share business strategies with

the incredible entrepreneurial community in Kansas City.

Katie Be an

// President and Edito r // kbean@iThinkBigger.com

SMART COMPANIES THINKING BIGGER®

7

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

FEDERAL Tariffs, Exclusion Process Announced

In March, President Donald Trump imposed tariffs on most imported stee and aluminum.

The new rule imposes a 25 percent tariff on steel imports and a 10 percent tariff on imported aluminum, except those products imported from Canada and Mexico. Customs and Border Protection began collecting the tariffs March 23.

The U.S. Department of Commerce also instituted procedures that will allow domestic organizations to submit requests to be excluded from the tariffs.

According to the department, U.S. Commerce Secretary Wilbur Ross “will

consider whether a product is produced in the United States of a satisfactory quality or in a sufficient and reasonably available amount. A single response to each exclusion request will be posted on Regulations.gov.”

Business owners can direct questions about the exclusion process to the Commerce Department’s Bureau of Industry and Security: » Steel: steel232@bis.doc.gov or 202-482-5642 » Aluminum: aluminum232@bis.doc.gov or 202-482-4757

Truck Drivers’ Organization Seeks Regulation Change The Owner-Operator Independent Drivers Association, a national organization representing professional and small-business truckers based in Grain Valley, Mo., has petitioned the Federal Motor Carrier Safety Administration to amend federal hoursof-service regulations.

At issue is a 30-minute rest break requirement, which OOIDA says is impractical.

PRINT

•

MARKETING

•

The organization has asked FMCSA to eliminate the requirement and instead allow a rest period of up to three hours on any 14-hour shift.

JOHNSON COUNTY Transit Service Improves Access to Jobsites In February, the Johnson County Board of County Commissioners voted to establish transit routes that will help improve transportation access for workers.

The board authorized reverse commute service to southwest Johnson County and expansion of jobs-focused paratransit service.

The new reverse commute service will include six morning trips—three from Kansas City, Mo., and three from Kansas City, Kan.—and seven evening trips—four to Missouri and three to Kansas. Route and stop planning will be flexible in the early stages to respond to employer needs.

DESIGN

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SIGNS

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THINKING BIGGER BUSINESS // April 2018

BIZ BITS

Central Exchange to Move to Plexpod Westport Commons Central Exchange will leave its Downtown Kansas City and Johnson County locations in May, consolidating operations at Plexpod Westport Commons, 300 E. 39th St., Kansas City, Mo. The organization, which connects and empowers women in business, will have a members’ suite on the first level with small meeting space. Programming will take place in other areas of the Westport Commons building, as well as at Plexpod Lenexa.

Rockhurst University Business School Earns High Rankings Helzberg School of Management at Rockhurst University offerings were listed among the top programs in the nation,

according to U.S. News and World Report’s 2019 Best Graduate Schools list, released in March.

The Helzberg School’s rankings improved in three categories on the new list: » The MBA concentration in management is now ranked No. 12 in the nation, up from last year’s ranking of No. 16. It’s the sixth straight year the program has been recognized among the top 25 in the country. » The Helzberg School improved its ranking in the category of information systems specialties for the MBA concentration in data analytics and business intelligence, from No. 19 in 2018 to No. 13 this year. » The part-time MBA program is now ranked No. 92, among the top 100 of all such programs in the United States, up from No. 133 the previous year.

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Independence Chamber, EDC Merge Two Independence business-development organizations have merged.

The Independence Chamber of Commerce and the Independence Council for Economic Development entered a management agreement resulting in a shared president to oversee operations at both organizations. The chamber and EDC expect joining forces will provide efficiencies.

As of March 1, Tom Lesnak, who was president of the EDC, is now president of both organizations.

Pilot Program Trains Ex-Offenders in Homebuilding Trades Three Kansas City metro association have joined forces to launch a pilot program for ex-offenders who will be entering the workforce. continued

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BIZ BITS

The Associated Builders and Contractors Heart of America Chapter, the Home Builders Association of Greater Kansas City (HBA) and Workforce Partnership have developed a six-week training program to assist in placing workers into the homebuilding industry.

The program is backed by a $200,000 grant from the Kansas Department of Commerce, which will fund the program through spring 2020.

Available to ex-offenders currently living in the Johnson County Department of Corrections Adult Residential Center, the training will focus on proficiencies needed to become a skilled laborer. Trainees will graduate with 10 hours of certification in Occupational Safety and Health Administration (OSHA), as well as certification from the National Center for Construction Education & Research for Carpentry Level 1.

The program comes at a critical time in the construction industry as a labor shortage has deepened in the metro. According to a 2017 HBA workforce study, 57 percent of respondents expressed a large or serious shortage within the carpentry trade.

State of Entrepreneurship: Business Owners Optimistic Entrepreneurs are optimistic about succeeding but say the government could do more to help small businesses, according to a report from the Ewing Marion Kauffman Foundation.

The Kauffman Foundation presented the 2018 State of Entrepreneurship address Feb. 28 in Washington, D.C. CEO Wendy Guillies said the foundation would continue its efforts to remove barriers to business creation, based on the results of a survey of 2,165 entrepreneurs nationwide.

The majority of entrepreneurs surveyed were very optimistic about business performance in 2018. However, results were tempered when asked about the current business environment.

Guillies highlighted three areas where entrepreneurs said they struggle: licensing 10

THINKING BIGGER BUSINESS // April 2018

and taxes, benefits for employees and networking with other entrepreneurs.

During the address, the Kauffman Foundation announced initiatives to help entrepreneurs grow. It plans to expand its weekly 1 Million Cups networking event to hundreds of new cities across the country.

In addition, the foundation is creating an online platform for entrepreneurs to connect with each other and mentors.

Women’s networks, compared with men’s, have fewer viable economic resources; additionally, these networks have fewer relationships with financial capital—of those that have relationships, they are less beneficial than those in a men’s network.

When compared with men, women business owners raise smaller amounts of capital and tend to be more dependent on personal sources of financing.

Techweek Returns in October Techweek will return to Kansas City Oct. 8-12.

The conference will include tracks about big data, health care technology, venture capital, IoT, virtual reality and augmented reality, public policy in tech, cryptocurrency/ blockchain and more.

There also will be more opportunities to showcase entrepreneurs. LaunchKC, BetaBlox and Techstars KC all will have events during Techweek.

Women-Owned Businesses Face Challenges Accessing Capital The National Women’s Business Council released in March the first of four reports to better understand literature conducted on women’s entrepreneurship and capital.

The report, titled “Understanding the Landscape: Access to Capital for Women Entrepreneurs,” illustrates the areas of future focus and gaps in literature for researchers.

The report finds that while womenowned businesses are making significant contributions to the economy, they remain hindered for growth by challenges in obtaining capital.

Some key findings include societal perceptions such as an unconscious association that women in business have less credibility and lack legitimacy, or that female venture capitalists demonstrate a bias toward male business owners, suggesting that more female investors wouldn’t close the gender gap.

Dates Announced for National Small Business Week The U.S. Small Business Administration announced the dates for National Small Business Week. It will take place April 29-May 5.

The event was created in 1963 to highlight the impact of outstanding entrepreneurs, small business owners and others nationwide.

KC in Top 10 Best Cities for Working Women Kansas City scored recognition as one of the Best Cities for Working Women in 2018, according to a report by Magnify Money.

Kansas City ranked No. 10 on the list — just behind St. Louis at No. 9. It scored 56.5 out of 100.

About one-third of metro area businesses are women-owned —33.2 percent—which was higher than the national average of 31.2 percent.

The unemployment rate for women was low at 4.3 percent, and about 40.8 percent of managers in the metro are women. Missouri also has a high percentage of women in the state legislature at 32.8 percent, which contributed to KC’s high score.

BIG | deals

AWARDS Lead Bank Leader is One of Banking’s Most Innovative CEOs The leader of a Kansas City bank is also a leader in industry innovation.

Josh Rowland, CEO of Lead Bank, recently landed on Bank Innovation’s 2018 list of 10 Most Innovative CEOs in banking.

In early March, Rowland spoke at the Bank Innovation conference in San Francisco.

His message at the conference was that banks must rethink what the banking landscape looks like. Rowland maintains that there is a misguided belief that innovation can only exist at the big-bank level.

Lead Bank has partnered with INV Fintech, a startup accelerator seeking to fund companies that can work within the community banking industry. Through that, it has led four fintech pilot programs.

EXPANSION

Allen Press Acquires State-of-the-Art Equipment Lawrence’s Allen Press Inc. now can offer unmatched printing options.

The company purchased a Brausse 1050SFi automatic diecutter and foil stamping machine. When the equipment arrives in May, Allen Press will be the only North American company to own the Brausse 1050SFi. The addition will allow the company to offer expanded product types, including publication printing, direct mail and

commercial printing including calendars, posters, hologram stamping and more.

Allen Press also purchased a Moll folder gluer to enhance publication and commercial printing.

New Boutique Movie Theatre Opens in Lee’s Summit B&B Theatres is set to open its second Lee’s Summit movie theatre, an upscale boutiquestyle theatre with modern and luxurious amenities.

The state-of-the-art, seven-screen theater in Lee’s Summit’s New Longview development features B&B Theatres Grand Screen, a four-story tall, wall-to-wall curved screen— one of the largest in the nation. Each

reserved-seating auditorium features fully reclining leather seats as well as the dive lighting system.

In addition to new technology, the theatre boasts the Marquee Bar, a fullservice bar, lounge and patio open before and after screenings.

This is the second B&B Theatre to open in Lee’s Summit. The first was a remodeled 16-screen theater.

Brick House Adds Nanobrewery Brick House, a burger bar in Kansas City, Mo.’s Union Hill neighborhood, will add a nanobrewery in partnership with local brewers Luke and Clint Ebert of Ebert Brothers Brewing Co. continued

THINKING BIGGER BUSINESS MEDIA ACQUIRED Mike Wrenn, chairman of Affinity Worldwide, and Becky Cole, its CFO, have purchased Thinking Bigger Business Media from Kelly Scanlon.

Terms of the deal, which closed March 1, were not disclosed.

Katie Bean has been named as president and editor. Bean joined Thinking Bigger Business Media Inc. in October 2017. Scanlon will stay on in a business development and customer relations role, in addition to pursuing other entrepreneurial endeavors.

“Mike and Becky are true advocates of the entrepreneurial community in Kansas City,” said Scanlon. “They have not only invested in Thinking Bigger during the last few years, but in several other companies and entrepreneurial assistance organizations. I’m very happy that Thinking Bigger’s future will be under the leadership and guidance of indi-

viduals who have such passion for Kansas City and its entrepreneurs.”

In August, Wrenn and Cole gifted the Center for Entrepreneurial Ecosystem Development (CEED), a company they founded, to the Kansas City Startup Foundation and pledged $1 million to it over the next five years.

“Kansas City’s thriving small business community has benefited from Thinking Bigger’s products, services and reporting. We look forward to building upon Thinking Bigger’s strong foundation, expanding its reach and impact on the business community,” said Wrenn. “I’m pleased to complete this acquisition after over 40 years of working with small businesses as an independent insurance agent.”

Thinking Bigger Business Media will continue its mission to connect and recognize area small businesses.

SMART COMPANIES THINKING BIGGER®

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BIG | deals

The restaurant is remodeling its third floor to house the nanobrewery. Ebert Brothers specializes in fresh, unfiltered fermentations.

Crane Brewing Doubles Capacity Crane Brewing Co., based in Raytown, will nearly double its capacity with the addition of six new fermentation tanks.

Last year, the brewery added a bottling line. The new tanks will help Crane to be able to increase production of some of its most popular beers and increase distribution.

Fishtech Breaks Ground on Second Building Fishtech Group has broken ground on its second building in Martin City. The new 20,000-square-foot building will be north of the company’s current office at 13333 Holmes Road.

The new structure will house the Fishtech Cyber Defense Center. It is designed by BRR Architecture and will be constructed

by A.L. Huber, which also built Fishtech’s first building.

Keefe Cravat Partners with Gown Gallery Keefe Cravat and the Gown Gallery in downtown Kansas City, Mo., entered a year-long partnership in March.

Jordan D. Williams, owner and designer of Keefe Cravat, says the 3.11 Collection signifies the date of the launch. It will be comprised of several bow tie and pocket round samples.

Williams’ goal is to dominate the formalwear market. Since founding Keefe Cravat in 2013, the brand marketed itself to young professionals.

Stockyards Brewing Expands Distribution Stockyards Brewing Co., based in Kansas City’s West Bottoms, has expanded its distribution into Kansas. The brewery is owned by Greg Bland and Micah Weichart.

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THINKING BIGGER BUSINESS // April 2018

FINANCING C2FO Raises $100M Financial tech firm C2FO raised $100 million in capital, which is the largest reported venture-backed funding round in Kansas City history.

The Leawood company, founded by CEO Sandy Kemper, created an online marketplace where suppliers can negotiate with buyers for quicker payments. Corporations including Amazon, Costco and Nordstrom use the service.

With the capital infusion, C2FO can continue its global expansion.

Metactive Closes Series A Round Metactive Medical Inc., a medical device company developing innovative products for the treatment of neurovascular, peripheral vascular and structural heart diseases, announced in March it closed an additional $1.2 million in Series A financing from a group of investors, including Mid-America Angels and Serra Ventures, bringing the total funding raised to date more than $10 million.

In addition, the National Heart, Lung and Blood Institute of the National Institutes of Health recently awarded the company a $1.5 million Phase 2 SBIR grant to commercialize its over-the-wire Blockstent Microcatheter.

Metactive, a Fairway company led by CEO Dr. Nick Franano, develops innovative medical devices for the treatment of neurovascular, peripheral vascular and structural heart diseases.

Mycroft continues to raise funds for its Mark II with an Indiegogo campaign. Its crowdfunding success follows its seed funding round of $1.75 million in January.

The company plans to hire developers and salespeople this year, CEO Joshua Montgomery said.

NEW BUSINESS Menswear retailer opens in Crossroads A St. Louis menswear retailer has opened a second location in Kansas City’s Crossroads Arts District. East + West opened in March at 1828 Grand Blvd.

The shop features brands manufactured in the U.S., Canada and Europe. It has its own line of button-down shirts and offers denim repair and hemming.

Selfie Boutique Pops Up Downtown The Selfie Boutique, a pop-up art gallery imagined by Alex Altomare, is currently on exhibit at 1827 McGee St. in Kansas City’s Crossroads Arts District.

Altomare, a managing partner of The Collective Funds, a venture capital fund based in Kansas City, Mo., decided to fund an exhibit in January 2018 that collaborated with local artists. The concept is now operating its second pop-up with new artists.

No end date has been set for the McGee Street pop-up. See selfies and stay in the know by following the gallery’s Instagram account @theselfieboutique.

ON THE MOVE

Mycroft AI Wins Big

in Crowdfunding Campaign Kansas City startup Mycroft AI exceeded its crowdfunding goals for its new product, Mark II. The campaign closed in February with $394,572, almost eight times its goal of $50,000.

The Mark II is a voice assistant similar to Google Home or Amazon Alexa; however, Mark II uses open-source software and doesn’t store users’ data.

New CEO Takes Reins at Affinity Worldwide The founder of Affinity Worldwide is handing over the reins of day-to-day leadership. Mike Wrenn, who led the diverse group of companies, has transitioned to chairman and will maintain an active role in the company’s insurance operations.

Reducing Your Employer Health Insurance Cost in 2018 Eddie Wilson, who has been president of Affinity Worldwide since 2015, is now CEO. Affinity Worldwide, based in the Northland, is a family of companies spanning a broad spectrum of industries, with the empowerment and support of residential real estate investors at its core.

Mindy Corporon Steps Down at Wealth Management Firm Boyer & Corporon Wealth Management has announced a change in leadership.

Richard Boyer has taken over as CEO from Mindy Corporon. In addition, he will maintain his role as chief investment officer.

Corporon will focus her efforts as president of the Faith Always Wins Foundation, a 501(c)3 organization she founded in 2015 a year after her father, son and another woman were gunned down at the Jewish Community Center in Overland Park.

Corporon said she remains an “interested shareholder” and ambassador for the firm she and Boyer founded in 2007.

Digital Strategy Firm Adds Key Executives JSMM+VBM, a digital strategy firm, has added key hires to its leadership team.

Mark Mazzarese is the company’s new COO. His experience includes 20 years of sales development and management experience while running his family business.

Simon Kuo is the firm’s new senior vice president executive creative director. He will lead the visual creative direction for the agency by providing clients with original photography and videos that produce authentic and meaningful content.

Mann Conroy Expands Practice Areas Mann Conroy, a boutique law firm in the West Bottoms, has brought on two attorneys that expand the scope of work the company can take on.

Jason Gorden is an IP attorney who specializes in patents; he also has experience as a software developer. Christopher Dumm focuses on estate planning, trusts and business succession needs.

Kyle Conroy, one of the managing partners, said the firm represents businesses, particularly small businesses, and the new additions will allow it to help clients with a broader range of needs.

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2 5 U N D E R 2 5 ® U P DAT E S

AnswerPro Earns Customer Service Awards Mission company AnswerPro Ltd. (Class of 2006) earned two national Stevie Awards for sales and customer service in the business services industries category, said Doug Gregg, AnswerPro president and general manager.

AnswerPro received the 2018 Silver Award for Contact Center of the Year (up to 100 seats) and the 2018 Bronze Award for FrontLine Customer Service Team of the Year.

The Stevie Awards for Sales and Customer Service is one of the premier business awards program in the U.S.A. The awards honorees were announced Feb. 23 in Las Vegas.

New Product a Slam Dunk for Alight Analytics Alight Analytics (Class of 2014), a marketing analytics firm based in Kansas City, launched a new product to serve professional sports teams, leagues and other organizations.

Sports Marketing Analytics Solution, currently deployed by the NBA and the Memphis Grizzlies basketball franchise, is built on Alight’s exclusive ChannelMix data aggregation platform.

The company also welcomed another big client: Infinity Marketing, an award-winning full-service agency based in Greenville, South Carolina.

Rieger’s Monogram Whiskey Released J. Rieger & Co. (Class of 2017) announced the 2018 release of its annual Rieger’s Monogram Whiskey.

Rieger’s 2018 Monogram Oloroso Bota is finished for up to 30 months in century-old Spanish Sherry Botas.

Only 1,200 bottles of Rieger’s Monogram Whiskey 2018 Oloroso Bota are available in

select retailers nationally, retailing for about $100 each.

The East Bottoms distillery also expanded its distribution. Its products will be available in 19 U.S. markets, the newest being California and Arkansas.

Biers Earn Medals; Oktoberfest Will Move KC Bier Co. (Class of 2017) announced in February that it earned three medals at the 21st Annual Great International Beer, Cider, Mead & Sake Competition.

The event was in November 2017, but judging took place over several months.

Its award winners included the Doppelbock, gold in Bock Beer category; Festbier, silver in Vienna/ Oktoberfest Lager; and Hefeweizen, bronze in German Wheat Ale. The 2017 competition marked the fourth consecutive year the brewery medaled at the competition.

The brewery is releasing its fourth yearround bottled beer, Pils, this spring. In June, it will release bottled seasonal beers.

KC Bier also announced that it will move its annual KC Oktoberfest celebration to Crown Center. It will take place Oct. 5-6.

Previously, the event was staged at KC Bier’s brewery in Waldo.

Art Gallery Plays Small Role in ‘Black Panther’ Brookside’s Leopold Gallery (Class of 2016) President Paul Dorrell confirmed that two sculptures by artist Arlie Regier are used in the box-office hit “Black Panther.”

Both sculptures were on display in a scene filmed at the High Museum of Art in Atlanta.

The film contacted Dorrell with the request to incorporate the sculptures. Dorrell then contacted the clients, who agreed before negotiating the terms of the artwork’s lease.

Likarda Partners With Science Exchange Likarda LLC, contract research organization, (Class of 2015), a Kansas City, Mo., has partnered with a marketplace to more widely distribute its services.

Science Exchange is a platform for outsourced research and development services that will allow Likarda to offer online access to its 3D compound screening and assay development services.

“Partnering with Science Exchange gives its global client base the fastest path to our novel technologies and services,” said Karthik Ramachandran, Likarda’s vice president and co-founder.

Shatto Creates New Milk Flavorizers Shatto Milk Co. (Class of 2006) has introduced a new product: Milk Flavorizer.

Similar to cocoa powder, the flavorizers can be added to any white milk for a different taste. Flavors include orange dream, vanilla, strawberry, blueberry and cinnamon roll.

The flavorizers are available in selected area grocery stores, at Shatto’s farm store, through Shatto Home Delivery and on Shatto’s website.

New Generation of Leadership at Valbridge Property Advisors Valbridge Property Advisors (Class of 2014), a commercial real estate valuation firm, has welcomed a new generation of leadership.

Daniel Kann and Jason Roos have been promoted to managing directors of the Overland Park office. Both joined the firm in 2007.

President Laird Goldsborough and founder Bernie Shaner will remain with the firm.

Valbridge provides property valuation and consulting services to clients in Missouri, Kansas, Nebraska and Iowa.

SMART COMPANIES THINKING BIGGER®

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AT A G L A N C E K C

E N T R E P R E N E U R S

BIG INFLUENCE | FURNISH OUT

Charitable business built from experience abroad When Carrie Paschke and her family moved to Beijing in 2011, they saw life a little differently than they had before.

“This was our first experience with life in another country—not visiting but living amongst people whose daily needs were far greater than our own,” Paschke says. “We never knew what it was like to not have hot water, or heat and A/C, or where our next meal was coming from—but some of our friends there did.

It challenged us and it changed us, and when we returned to the U.S., we knew we wanted to live our lives differently as a result.”

Now living in the Kansas City area, Paschke runs a business called Furnish Out. Her business model is unique: She travels

to China twice a year to purchase—“for a fair price,” she says—unique furniture and home accessories that are handmade or restored by local artisans. Then, twice a year, she holds a weekend pop-up sale. The sale proceeds go to a charity called China Hope Foundation, which cares for orphaned children.

“When the sale is over, I keep enough of the money to cover my costs of returning to China for the next round of goods so the business is sustainable, but I do not pay myself anything,” Paschke says. “My friends who run China Hope also do not take any administrative fees for their work, so 100 percent of our donations go directly to the children who need them the most.”

Furnish Out put on its first KC-area sale in March, and the next one likely will be in September, Paschke says. Previously, she held four sales in Iowa, netting $51,000 for China Hope, which she says funded necessary surgeries for children who would otherwise go without.

Paschke admits that while she can’t erase poverty, Furnish Out is what she can do to make a difference.

“We are blessed and feel this is one small way we can give back,” she says. “We can give back to the artisans who I became friends with while I lived there by paying them a fair price for their work. And we can give back to the orphaned children by hopefully increasing their quality of life and their chances of finding a forever family.”

For more information on the business and its featured artisans, visit FurnishOut.com.

Chinese artisans building and refinishing furniture. (Photos courtesy of John Wang, Beijing, China) 16

THINKING BIGGER BUSINESS // April 2018

Samples of furniture and accessories from previous sales. (Photos courtesy of Carrie Paschke)

C O M PA N Y T O WAT C H K C

P R O F ES S I O N A L C H AT S

E N T R E P R E N E U R S

(Photo courtesy of Austin Walsh Studios)

Chat Service Growth Balloons FAST-GROWING LEE’S SUMMIT COMPANY TAKES ADVANTAGE OF EMERGING TECHNOLOGY. ENTREPRENEURS

Trevor Flannigan and Scott Hansen C O M PA N Y I N F O R M AT I O N

Professional Chats 20 NE Colbern Road, Suite 200 Lee‘s Summit, Mo. 64086 www.ProfessionalChats.com (401) 992-4287 TYPE OF BUSINESS

Professionally managed online chat service for businesses and institutions YEAR FOUNDED

2016 E M P L OY E E S

65

W

hen Professional Chats moved from its original 400-square-foot office to a 5,000-square-foot space in June 2017, COO Trevor Flannigan thought the fledgling company had secured room for longterm growth.

The 2-year-old business—which saw its employee count soar from five to 65 in the past year—already has run out of space and recently leased 2,500 additional square feet in the same Lee’s Summit, Mo., building.

Flannigan said the company likely will need even more space within the next few months as the company continues to grow.

With rapid growth comes opportunity.

“Eighty percent of our team coaches, directors, sales people, etc., all started in the chat position,” Flannigan said. “I very much believe in developing people. If someone has the right attitude and has consistently exhibited our core values, I will teach them the skills to do any role.”

The company’s roots are tied to founder and CEO Scott Hansen’s experience as the manager of his family’s orthodontic practice. That business successfully launched an online chat service to attract new patients and improve customers service.

Hansen said he considered outsourcing the service, but existing companies either used overseas labor or contracted agents who worked from

home. Hansen forged his own path, hiring and training a chat specialist.

That was the beginning of Professional Chats, which since has launched lines of service for residential service companies, audiologists, dentists and chiropractors in addition to orthodontists.

“Our chat specialists are specifically trained to handle conversations in specific industries,” Hansen said. “Not only do we provide rigorous training to our chat specialists, but our quality standards are unmatched.”

Hansen said having staff work in a central office—rather than outsourcing labor or allowing people work from home—improves the quality of service. Chat specialists have weekly training sessions and one-on-ones with their managers.

Flannigan said Professional Chats can increase sales leads on a client’s website by up to 40 percent, and clients have told him that the return on investment is 10 to 40 times what they spend on the service.

Professional Chats is working with nearly 1,000 companies, and Hansen said it has “a presence in virtually every country worldwide with English as a first language.”

“We are always looking ahead,” Hansen said.

“The exciting part of our business is that there is virtually no ceiling. The market is always changing, and new markets are always being created. There is always going to be a demand for high-quality customer service and sales.”

David Mitchell is a freelance writer in the Kansas City area.

SMART COMPANIES THINKING BIGGER®

17

AT A G L A N C E K C

E N T R E P R E N E U R S

BIG STARTS | BUNGII

‘Friend With a Truck’ App Gains Traction

MADE TO LAST | FOGEL-ANDERSON CONSTRUCTION CO.

JoLynne Bartolotta, left, vice president of business services, is part of the fourth generation of the Anderson family. She is with her parents, Phil and Georgianna Bartolotta. Phil is past president of Fogel-Anderson Construction and a thirdgeneration Anderson.(Photo courtesy of Jodi Vander Woude)

COMPANY // Bungii

Construction Company Outlasts Wars, Recessions

ENTREPRENEURS // Co-founders Ben Jackson

Fourth generation continues diversification.

Bungii closed on $3.4M in funding this year.

and Harrison Proffitt WHAT THEY DO // Bungii, which launched in Kansas City in

November 2016, is an app that quickly connects users with a pickup truck and driver to help move, haul and deliver items.

The company has been compared to ride-sharing apps, but instead of moving passengers, it moves your stuff.

THE INSPIRATION // After Jackson got four requests in one day

from friends at Kansas State University who wanted to borrow his truck to move things, he and Proffitt developed the idea for Bungii during a business class.

WHAT’S NEXT // The partners had hoped to raise $2 million in

a funding round that closed in January. Bungii, which has been growing at more than 20 percent each month, instead closed with $3.4 million. That investment will help fuel an aggressive growth plan. By the start of 2019, Jackson said Bungii plans to quadruple the size of its staff and operate in 12 cities. Expansion started in January in Atlanta.

In more than 100 years of building in Kansas City, Fogel-Anderson Construction Co. has survived four ownership transitions and multiple economic cycles.

“I attribute our longevity to three primary factors—forwardthinking leaders; retaining dedicated, hardworking people; and loyal client relationships built over generations,” said JoLynne Bartolotta, a fourth-generation owner.

Having a diverse portfolio helps, too. Fogel-Anderson builds everything from grocery stores and other retail projects to churches, schools, office buildings, hotels and more.

But with tremendous changes in the industry over the life of the company, it has had to alter its service model.

“We’ve always adapted to change,” Bartolotta said. “We used to employ multiple tradesmen, which gave way to our current model of partnering with skilled subcontractors. This puts our focus where it belongs: managing the process, schedule, and budget.”

“We’re seeing excellent early traction and are exceeding the numbers we saw from our KC launch,” Jackson.

But what sets the company apart is its accountability for customer relationships.

Now that the funding round is closed, he said Bungii is “entirely focused on expanding as quickly and efficiently as possible.”

“We are not in the business of selling widgets—we are building relationships. Our clients have to trust us and know that we have their best interest in mind,” she said. “We do this by listening, finding out what is important to the client, and providing all the data a client needs to make informed decisions. We do not develop trusted relationships by over-promising and under-delivering.”

The company has pilot programs approved with Costco and Pottery Barn, two businesses where shoppers often have large loads to move.

CONTACT // bungii.com 18

THINKING BIGGER BUSINESS // April 2018

KC MADE IT K C

S P L A S H TA C U L A R

E N T R E P R E N E U R S

Splish, Splash: Waterslide Makers Have a Blast ‘WE SHOW UP WITH A CLIPBOARD, SWIM TRUNKS AND A HARD HAT’ sk Kodi Theilgaard his favorite part about his job, and it’s tough to pin him down.

As vice president of design for Paola-based Splashtacular, Theilgaard spends his days creating waterslides and aquatic attractions for a variety of clients across the country.

Splashtacular claims to be the largest producer of waterslides in the United States.

With more than 50 to 75 projects annually, Splashtacular projects may include multiple slides, play units, tipping buckets, spray features and more. Even its 3,000-square-foot office includes water features.

“We like to tinker with stuff,” Theilgaard said. “Our first open room with a high-top bar has a water slide that is backlit so it shows what the inside of a waterslide looks like when you go through it.”

Splashtacular clients include municipalities, hotels, resorts and commercial waterparks.

Local projects include water park elements for Blackbob Park and both the Olathe and Lenexa community centers.

President Alex Weidman leads the 24-year-old company. It includes 16 employees, 12 of whom live in and around the Kansas City metro area—the rest are scattered coast to coast. The Splashtacular team includes project managers, engineers and designers that turn stainless steel and fiberglass into twisting, turning and swirling waterworks of fun.

“We make the designs, do all the engineering, foundation details,” Theilgaard

A

said. “It is designed using software called Splashworxs­—it is our proprietary software.”

After the design process, a 3D model is made, and the engineers get involved. The process may also include a site visit and usually takes four to six months. All materials used are U.S.-sourced.

While all of the design work is done locally, Splashtacular has elements of its projects manufactured elsewhere.

“We have over 400 molds that are ours that sit in Hastings, Neb., where the largest fiberglass company, A-1 Fiberglass, is located,” Theilgaard said. “We dictate the process … every inch of our products we are particular with.”

Steel comes from Zephyr Products Inc. in Leavenworth. Each piece goes through powder coating and galvanization.

After assembly comes the part that Theilgaard looks forward to—on-site testing.

“We show up with a clipboard, swim trunks and a hard hat, and we ride the slide. … It is really fun,” he said. “We try to abuse it so that anyone can go down safely.”

Repetition is key for waterslide designers, Theilgaard said.

“The No.1 thing you have to do is go ride water slides,” he said. “And you have to think about it, fail a lot and try new things.”

Theilgaard said there are a number of attributes that make SplashTacular stand out from its competitors.

“Quality above all,” Theilgaard said. “We use the same manufacturer for everything.

It is all in the U.S. so we have more control over it and better standards.”

Splashtacular also insulates its waterslides in the factory so they are comfortable whether used inside or outside.

“We also do a lot of lights and sound in our units,” Theilgaard said. “Our sound guy has a Grammy. One of the coolest ones in the country is at the Liberty, Mo., Sleep Inn. It has lights all over it.”

Splashtacular has been recognized for its work as a winner of the World Waterpark Association’s Industry Innovation Award for Suppliers.

Although Splashtacular had no connection to Schlitterbahn’s Verruckt waterslide, “we did see the impact from it,” Theilgaard said.

In 2016, a 10-year-old died in an accident riding the slide.

“Since this incident, we’ve been involved with Kansas legislation to help improve the inspection of existing rides. … A tragedy like this makes customers more educated on what to put in their parks and who to buy from, (but) it doesn’t necessarily steer them away from the business itself.”

Splashtacular has its sights set on international expansion. This year, the company has launched endeavors in the United Kingdom, China and Australia. Its Australia Zoo project will open in early spring. It includes a specialty splash pad complete with crocodiles equipped with motion sensors and specialty lighting.

“It has frogs that ribbit and a crocodile where we amped the sound, and after he makes the crack sound of his jaws, his nostrils have water features out of them that snorts air,” Theilgaard said. “We get to do some amazing things.”

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

SMART COMPANIES THINKING BIGGER®

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ENTREPRENEURIAL JOURNEY K C

( by Katie Bean )

E N T R E P R E N E U R S

He and his sisters followed suit, starting a magazine in their hometown of Chicago that covered concerts and events. “It never made any money, but we had a lot of fun,” Pasquale said.

He brought all of those experiences with him when he started Trozzolo Resources Inc. The business was 100 percent print products, and his writers had journalism backgrounds.

“For several years, we were a newsletteronly company,” he said, but happy clients were asking the company to do more, and he listened.

In the 1990s, Pasquale saw his son, Angelo, rising through the ranks at advertising firm Bernstein-Rein. He had resisted calling his company an advertising firm, but he could see that needed to change.

He hired Angelo in 1998, the company’s eighth employee.

How Trozzolo Became a Collage of Talent Bringing in outsiders has made the family business a ‘melting pot’ of ideas.

T

rozzolo Communications Group has grown like an art collection: It’s carefully curated, adding new pieces as the opportunity arises.

When it was founded in 1989, Pasquale Trozzolo created print newsletters that helped companies raise their profiles with customers and, in turn, increase sales.

Now, the company has expanded its offerings to include advertising, public relations, crisis communications and video production.

20 THINKING BIGGER BUSINESS // April 2018

At Trozzolo, they say they don’t hire people—they collect them. That’s also how the firm has added specialties over the years.

EVOLVING That hire was a big step in the firm’s evolution.

Its focus shifted from just creating products for clients to thinking strategically for them.

Angelo, who studied advertising in college, took on the task of determining how to shift the company’s focus and offerings. By the early 2000s, another trend was on the horizon —bringing advertising and public relations together under one roof.

Pasquale met Becky Blades, who owned PR firm Blades & Associates, through the Greater Kansas City Chamber of Commerce’s Top 10 Small Businesses program. They shared a similar problem, he said: a singular focus.

In 2003, Blades & Associates merged with Trozzolo, bringing new talent and clients.

That’s when the firm entered yet another phase, becoming a true consultancy.

“People pay us for ideas,” Pasquale said.

CURATING As time passed, Pasquale could see another change STARTING OUT coming—the demise of newsGrowing up, Pasquale letters. As technology evolved, watched his parents, Pa he realized that what was once first-generation Italian squ lo ale Trozzo the basis for his business would immigrants, hustle.

They had a grocery store, a candy give way to new forms of media. With store and a variety store. that in mind, he was open to the next step “They were always very self-starting and for Trozzolo. self-reliant and efficient, and I guess entrepreIn 2008, the firm went through two mergers, neurs—I didn’t know what that meant, bringing on Prairie Dog Healthcare Marketing but that’s what they were,” he said. and Corporate Communications Group Inc.

“These were booster rockets to us that helped us expand,” Pasquale said.

With those successes, Trozzolo has continued that model of collecting businesses and bringing them into the fold. In 2016, it merged with advertising agency Kuhn & Wittenborn, and in 2017, Trozzolo brought on Proventus Consulting, a law firm marketing company.

Mixing and matching the companies has made Trozzolo stronger, Angelo said. “We love learning from others, and change is an important thing around here,” he said.

“I think everyone you talk to says, ‘We have the greatest people!’” Pasquale said. “Because we’re curators of talent, that’s the only thing that can make the difference for us. … The thing that allows our talent to shine differently is who they’re sitting next to.”

‘MELTING POT’ In 2011, Angelo took over from his father as president and CEO. Pasquale remains with the company as An executive chairlo gelo Trozzo man. Other family members are involved at the company, as well. Pasquale’s wife, Joan, worked with him for years. His daughters, Jill and Sarah, both worked at the company— and their husbands, Ross Wuetherich and Josh Brewster, are part of the ownership and executive teams.

But Pasquale said the family isn’t concerned with building a “dynasty.”

“Because we’ve had these other companies around us, we are kind of the melting pot,” he said. “We’re a group of marketing immigrants—everybody started somewhere else.”

“And every single one of those has been a big catalyst for us,” Angelo added. “Each has brought something to us and changed the way we do something.”

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Join us at KansasCity.Score.org

(816) 235-6675

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21

Phone Medic, led by CEO Christine Ricci, is growing in profitability and headcount, due in part to offering new services and keeping abreast of emerging technologies.

22

THINKING BIGGER BUSINESS // April 2018

KC ENTREPRENEURS

Charging Up Phone Medic

New stores and services provide jolts of growth for the electronics repair company.

ENTREPRENEUR

CEO Christine Ricci C O M PA N Y I N F O R M AT I O N

Phone Medic 11200 W. 93rd St., Overland Park, KS 66214 (913) 933-9660 PhoneMedic.com TYPE OF BUSINESS

Electronics Repair YEAR FOUNDED

2014 E M P L OY E E S

50 KEYS TO SUCCESS

“You have to evolve as the technology evolves. You have to know how to always keep that customer connected to the technology, whatever that technology may be.”

left // Phone Medic’s management

team includes, from left, manager Kaheem Evans, district manager Andrew Garrett, CEO Christine Ricci and manager Krista Gabbard. inset // Delicate and precise electronics repairs are done at each of Phone Medic’s eight locations.

P

hone Medic, with CEO Christine Ricci at the helm, is soaring to new heights as it meets explosive demand for technological connectivity.

Launched in 2014, Phone Medic repairs devices such as cellphones, tablets, computers, game consoles and drones. It is plugged in to new technologies such as IoT (Internet of Things), Google Home and drones.

The locally owned company currently operates eight stores in the Kansas City area and Lawrence, and it plans to open three more in the first and second quarters of this year. A 12th store is a possibility for later this year.

“We’ve got opportunities not only to grow locally, but regionally and nationally,” Ricci said. “We’ll keep going after additional opportunities.”

Privately held Phone Medic experienced 109 percent profitability growth in 2016. Employee head count now stands at about 50, up from 40 when Ricci became CEO in 2016.

GROWTH THROUGH B2B

Much of the fuel for Phone Medic’s growth is coming from the business-to-business and educational spheres. Major customers include Lockton Cos., the Independence School District and the Kansas City Chiefs.

Providing service to the Chiefs is a recent touchdown for Phone Medic.

“That’s a very exciting account for us,” Ricci said.

When employees are separated from their technology, it means “lost productivity, down time and slowed-down communication,” Ricci said. “The tolerance for that is minimal. You really can’t have that in this day and age. More and more businesses are looking for a local player to be able to service their needs.”

And those kinds of needs are becoming just as important in the educational sphere, Ricci said.

“As education shifts toward each student having their own device and everything is technologybased, it’s critical for the students to stay connected.”

No matter what sphere the customer inhabits, serving that customer requires riding the wave of a rapidly changing industry.

“You have to evolve as the technology evolves,” Ricci said. “With the iPhone X that came out, you’ve got to know how to repair it. You have to know how to service it. You have to know how to always keep that customer connected to the technology, whatever that technology may be.”

THE PATH TO INSPIRATION

Ricci grew up in the Chicago area, where she and her five siblings worked to put themselves through private high school. She survived cancer when she was 16.

That experience gave her a passion for health care, which was her first career. Ricci served as a

by Julius Karash // photography by Dan Videtich SMART COMPANIES THINKING BIGGER®

23

registered nurse in intensive care units, including with burn patients.

After earning an MBA with an emphasis in management information systems, Ricci and her husband moved to the Kansas City area. In 1999, she landed a job with Cerner Corp., where she helped start that company’s consulting division.

At Cerner, she worked directly with the late Neal Patterson, the company’s co-founder and longtime CEO, who was a pioneer in the development of health information technology.

24 THINKING BIGGER BUSINESS // April 2018

“I gained a lot of learning from him,” Ricci said. “He was the most brilliant visionary I’ve ever met in my life.”

Ricci next worked at Sprint, where she learned the telecommunications industry. Her roles there included business development, product development and product management.

Ricci subsequently was drawn to the world of smaller, more entrepreneurial businesses. Between 2007 and 2016, she worked for B.E. Smith, a health care executive

recruiting firm, and ECCO Select, a recruiting and consulting company with an emphasis on information technology.

Ricci said her work with B.E. Smith and ECCO Select gave her a passion for helping businesses grow at an accelerated rate. In 2016, that passion led her to accept an offer to become the CEO of Phone Medic, which was founded by brothers Mike and Paul Kushnir in 2014.

“The fascination with me for small businesses is, you have to step in and figure out the fastest,

most economical path for high growth and high profitability,” she said. “So it was with Phone Medic. It was a matter of looking at a lot of different business opportunities in Kansas City.”

LAYING THE FOUNDATION

Ricci likens growing a business to building a house.

“If you go into business and you just start growing and you don’t have a foundation in place, you’re going to implode,” she said.

“You can’t just go straight to the

“You’ve got to build an infrastructure for agility. As the business changes, as technology changes, we need to be on the heels of it and be ready to go.”

Christine Ricci // CEO

above // Manager Zachary Richardson

repairs a drone. left // Project and training manager Brandon Smith, at left, works on a phone repair while manager Zachary Richardson repairs a gaming console.

building out our infrastructure.

You’ve got to build an infrastructure for agility. As the business changes, as technology changes, we need to be on the heels of it and be ready to go.”

Similar to what she experienced as a nurse, Ricci said a strong foundation is built on a work culture of selflessness.

“That means individuals who love serving others, whether it’s their teammates or the customer.

It’s building a culture of people that thrive on selflessness and thrive on serving others.” top floor—it will cave in. You’re going to have negative customer experiences and high turnover.

You’ve got to build out that foundation for it to be strong.”

The foundation Ricci refers to is the right people, processes, systems and tools. And while the foundation must be firm, it also must allow for adjustments to changing conditions.

“As time goes on, technology gets more and more complex and changes at a faster and faster rate,” Ricci said. “That’s part of

MAKING IT FUN

Ricci said one of the keys to building a successful work culture is enabling employees to have fun at work.

“If it’s not fun, you’re not going to be the high performer,” she said. “You’re not going to give it your all. It’s not going to be a joy to come to work every day. For this company, it’s really important that our employees enjoy what they do and have fun.”

So how can an employer make a workplace fun for employees?

“Find out what their passion is,” Ricci advises. “Find out what they love to do.”

For example, Ricci said, an employee may aspire to be a manager. “But they may get there and realize, ‘This is no longer fun’ or ‘This is not what I dreamed it would be.’”

If an employee’s aspiration changes, the company should support that and help the employee reach his or her new goal, Ricci said. “We’re a small enough company and a nimble enough business that we can adjust. It’s how they define success, not how I define success.”

But a fun culture is about more than helping employees reach their desired career milestones, Ricci said.

“We do a lot of celebrating of small successes. A small success may be a store reaching a certain goal that’s been set out for that store. Or companywide, it may be a surprise pizza party Saturday.

Pretty much all my employees work on Saturdays.”

Phone Medic doesn’t just take care of its employees—it also aims to take care of the community.

Ricci, who worked hard to overcome challenges in her youth, has a passion for giving back. For every repair done, Phone Medic donates money to Big Brothers Big Sisters of Greater Kansas City.

“They have such a major impact on youth and their development, and they give a lot of children a fair shot at life,” Ricci said.

GROW 2.0

Phone Medic is in the midst of a three-year growth plan that began in 2017. “What we are today will evolve dramatically,” Ricci said.

So what happens when the three years is up?

“We don’t have an exit plan,” Ricci said. “They say every entrepreneurial business should have an exit plan. We don’t have a defined exit plan, just a highgrowth plan right now.”

That high-growth plan includes “a multipronged approach” to reach customers, Ricci said. One new prong is a mail-in repair service that launched in February.

“The brick-and-mortar store serves consumers immediately.

But you can’t rely solely on brick and mortar,” she said. “You have to build out business relationships. You have to build out relationships with education systems. You have to be able to support mail-in repairs. You have to be able to do mobile repairs. If there’s a business that wants you to repair on site at their location, you’ve got to be able to do that.”

Ricci became an owner of Phone Medic on Jan. 1, but she said that won’t change how she does her job.

“To me it’s no different from how I was operating before because you’re still striving for profitability. You’re still striving to be cost-efficient. Even though on paper it’s an event, it’s a nonevent in terms of how I practice.”

Julius A. Karash is a freelance writer in the Kansas City area.

SMART COMPANIES THINKING BIGGER®

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Beyond the

Bottom Line CHARITABLE EFFORTS BENEFIT BUSINESSES AS WELL AS THE COMMUNITY. ( by David Mitchell )

MANUFACTURING AN INNOVATIVE PRODUCT OR OFFERING EXCELLENT SERVICES ARE GOOD STARTING POINTS FOR A BUSINESS, BUT IT LIKELY ISN’T ENOUGH. IN ADDITION TO DOING A GOOD JOB, COMPANIES SHOULD CONSIDER GOOD WORKS. Cone Communications, the Boston-based public relations and marketing agency, released a study last year that showed that the vast majority of U.S. consumers expect businesses to do more than just turn a profit.

Nearly 90 percent of respondents said companies have a responsibility to address social and environmental issues. And when companies take such steps, people are more likely to have a positive 26 THINKING BIGGER BUSINESS // April 2018

perception of that business (92 percent), trust it (87 percent) and be loyal customers (88 percent). Nearly 80 percent of respondents said they seek out products from companies that are socially or environmentally responsible.

Ninety percent of those surveyed expressed a willingness to switch brands to support a company associated with a good cause.

“Companies should go beyond the bottom line because society expects more than just making money,” said Mark O’Renick, co-founder of Will & Grail, the Kansas City, Mo.-based branding agency.

‘ACT WITH PURPOSE, ON PURPOSE’

It’s not enough to simply donate money to random causes. Will & Grail advises its clients to invest in “purpose-driven” initiatives, O’Renick said.

financial literacy or breaking the vicious cycle of payday lending. If you have an industrial warehouse company, invest in efforts to help nonprofits use space more efficiently to save money and provide greater benefit to their constituents.

“It’s connectedness of time, talent and treasure that is powerful. Build it into brand and business strategy, and you’ll have meaningful impact.”

The return on investment goes beyond consumer reaction. It also affects employee recruiting and retention. In 2016, Cone surveyed millennial employees and found that 64 percent of young workers won’t take a job with a company that doesn’t have strong corporate social responsibility practices (compared with 50 percent of U.S. workers overall).

Seventy-five percent of millennials said they would be willing to take a pay cut to work for a responsible company (compared with 55 percent of the overall workforce), and more than 80 percent said they would be more loyal to an employer that helps them contribute to social and environmental issues.

O’Renick said businesses—including small businesses—that are “committed to a purpose and generous in spirit” can make a difference.

“They aren’t making an impact the way a huge corporation might make through a foundation, but they’re making an impact every day in the lives of employees and customers and in neighborhoods where they work,” he said.

CREATING A CHARITABLE PROGRAM

“We encourage clients to act with purpose, on purpose,” he said. “Being charitable is part of that, but so is treating customers and employees with respect, balancing purpose and profits, and focusing on the tenets of brand believability—working every day toward making a profound, positive impact on lives, communities and the world.”

O’Renick said the alignment of those actions work best, and is more believable, when a company’s philanthropic efforts are connected to the company’s roots and identity.

“Donating to causes that tie into what you do as Ma a business has a deeper and rk O’Renick more meaningful impact,” he said. “If you’re a financial services firm, invest in organizations providing

So how does a business go about not only giving back but developing a plan to do so in a meaningful way? One question for small businesses to consider when starting charitable programs is whether to build something internally or to seek outside help.

The answer could depend, in part, on how much specialized knowledge is needed to accomplish its mission. When Kelly Wilson and Lonnie Vanderslice decided to start their own nonprofit, they knew they would have to go the do-it-yourself route.

“We found a niche, and we’re experts in that niche,” said Vanderslice, who co-founded Weave Gotcha Covered, a for-profit company in Kansas City, Mo., that specializes in the continued SMART COMPANIES THINKING BIGGER®

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fabrication and installation of As a business, we can’t find custom window treatments, seamstresses. Other people fabric furnishings and contact us and ask us, ‘Do upholstery. “There was no you know anybody who one else. If it was going can sew?’ to get done, we had to “There’s a need. do it.”

Dress shops, alterations, Wilson and Vanderslice dry cleaners, flag and encountered a problem banner manufacturthat threatens their busiLo ers—there are all kinds of nn ce ie Vandersli ness—a lack of seamstresses businesses that have a need in the job market—and they’re for this skill.” not alone.

In 2016, Vanderslice and “They aren’t teaching sewing in schools Wilson launched the Sewing Labs. The anymore,” Vanderslice said. “It’s a dying art. purpose, Vanderslice said, was three-fold—to produce workers with a skill missing from the workforce, to provide vocational training to women in need and to find new uses for old machines and materials.

Vanderslice said several retired seamstresses have donated used sewing machines, fabric and their time to the Sewing Labs, which teaches basic sewing, garments, quilting and more.

Vanderslice said more than 100 people took the Sewing Labs’ classes last year, and she hopes to triple that number this year. A 1 volunteer event earlier this year drew about 80 people.

PARTNERING FOR GOOD

Of course, not every business has the time and resources to be as hands-on in its philanthropy as Weave Gotcha Covered. In that case, external vendors can help.

“We find that small businesses we serve like us because we can handle all aspects of their giving,” said Brenda Chumley, senior vice president of foundation relations and operations for the Greater Kansas City Community Foundation. “That means they can focus on their jobs while we handle the administrative work associated with charitable programs. Essentially, we are their charitable foundation staff.”

The handoff of that function doesn’t mean the company can’t still be purpose-driven.

“We can help companies determine a strategic focus for their giving,” Chumley said, “and our team of philanthropic experts can provide research and guidance on charitable landscapes in Kansas City and across the country.”

In addition to consumer and employee loyalty, giving back can help companies increase their visibility in the community, Chumley said.

“We work with many companies who create signature programs that gain attention

1 A Sewing Labs community service project, pillowcases for nursing homes, with volunteers Brenda Daily, left, and Denise Mitchell. (Photo courtesy of Linnca Stevens) 2 Sewing Labs student Brittany Wolfe works on her certifications Phase 1, Sewing Basics. (Photo courtesy of Ali Lindemann) 3 Sewn goods for sale from sewing programs by The Sewing

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Labs, Stitching Change and Sew Creative at True Life Family Resource Center. These three organizations collaborate to bring goods to “pop-up shops” that are sewn in each of the programs for at-risk individuals. (Photos courtesy of Lonnie Vanderslice) 4 & 5 Fund and giving options provided to companies by the Greater Kansas City Community Foundation.

(Images courtesy of Greater Kansas City Community Foundation) 6 Employee recognition gift card options provided to companies by the Greater Kansas City Community Foundation use in recognizing employees’ donations of time and money. (Images courtesy of Greater Kansas City Community Foundation)

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Use your account to support your favorite charities.

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28 THINKING BIGGER BUSINESS // April 2018

Company sets up a corporate foundation fund and determines match guidelines.

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through media and community a minimum initial donation or outreach,” she said. “A local a minimum balance for the engineering firm does this fund,” Chumley said. through a competition for “The donor-advised students studying STEM. fund serves as a company’s The company provides charitable foundation. grants for STEM educaThe company adds money tion to winning schools to the fund—cash, stock through a donor-advised or other complex assets— fund they set up with us. and contributions are tax Br y end e l In addition to increasing deductible.

The company a Chum their visibility and goodwill, then uses the fund to support they are also cultivating any charity it chooses. There is no future employees.” minimum grant amount, so an employer Chumley said the foundation gives clients can send a check for $25 to support an a wide range of programs to choose from, employee’s personal fundraising efforts.” including charitable foundations, matching It’s also worth noting, she said, that assets gift programs, scholarship programs, giving in a donor-advised fund are invested, so a cards and more. company’s charitable dollars grow tax-free.

“Many companies use their charitable BUILDING A FOUNDATION foundation as an umbrella for all their giving Dimensional Innovations worked with initiatives and run more specific programs, GKCCF to develop a corporate giving program such as matching gifts, under that umbrella,” and launched the DI Foundation in 2015. she said.

Mary Wooldridge, director of the She said small businesses shouldn’t be Dimensional Innovations Foundation, said scared off by the cost of using a service GKCCF’s products, services and expertise like GKCCF. made it much easier for the company to oper“We can set up a donor-advised fund for as ate its own foundation. little as $250 per year, and we do not require

Wooldridge said that prior to launching its foundation, Dimensional Innovations and its employees participated in a United Way program. She said that although the United Way is important to the community, the company wanted to offer employees more ways to give back and the ability to assist any qualified charities that interest them.

The DI Foundation offers the company’s employees eight hours of paid time off each year, grants and a $200 annual matching gift program, and it pays for tickets and entry fees to participate in charity-supported community events. In addition, when a member of the DI Foundation makes a grant request, it becomes a priority over others.

Wooldridge said the Greater Kansas City Community Foundation has “guided and educated us, making the DI Foundation better so that we can focus and amplify our efforts to give back to the community that has given us so much over the years. To better not only that community but also ourselves in the process.”

“Bottom line, we trust them,” she said.

David Mitchell is a freelance writer in the Kansas City area.

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7 & 8 Dimensional Innovations supports and partners with the Veterans Community

Project and Spencer C. Duncan Make It Count Foundation by participating in the 5K event. They also design and make the awards presented to participants. 9 & 10 The DI Foundation partnered with the Jadon’s Hope Foundation to design and create five custom beds for families around the country. Jadon’s Hope Foundation is an organization created to fight spinal muscular atrophy. (Photos courtesy of Dimensional Innovations)

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SMART COMPANIES THINKING BIGGER®

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On February 24, Kansas City’s small business community filled the Downtown Mariott Muehlebach Tower 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 Joe and Judy Roetheli, Key Companies, with the Entrepreneurial Legacy Award.

The brainchild of entrepreneur Kelly Scanlon, the 25 Under 25 Awards were founded 17 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 than 1,400 nominations.

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

30 THINKING BIGGER BUSINESS // April 2018

THE 25 UNDER 25 CLASS OF 2018

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“BE SO GOOD THEY CAN’T IGNORE YOU” STEVE MARTIN

And, yes, they are that good!

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Midwest Sports Productions Morgan Miller Plumbing MTI Events Network Innovations notes to self PARTNERS N PROMOTION Pioneer Music Company Prineta SureHosting Internet Solutions Sydney’s Pet Spa Thirsty Coconut Wide Awake Films

Congratulations to MTI Events and the rest of the 2018 25 Under 25 Award Honorees

www.PinnacleResearchGroup.com SMART COMPANIES THINKING BIGGER®

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2018 SPONSORS Star Sponsor

Veracity

Entrepreneurial Patron Sponsors

The Heisenbergs

Affinity Guerrilla Marketing Bank of Blue Valley Bank Liberty Bank Midwest Blue Cross and Blue Shield of Kansas City CBIZ MHM Honeywell JE Dunn KCP&L People People Principal Financial Group Technology Group Solutions The Purple Guys

Band Sponsor

Alumni Congrats

ChampagneToast Sponsors

Burns & McDonnell Sprint Entrepreneurial Advocate Sponsor

BMO Harris Bank

Reception Napkin Sponsor

Equity Bank

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Lead Bank

Media Sponsor

Arvest Bank

VIP Reception Sponsor

The Gallery BASYS Processing Alumni Reunion Sponsor

Country Club Bank

Social Media Sponsor

Think Viral

Print Sponsors

Proprint Digital AlphaGraphics Kansas City 32 THINKING BIGGER BUSINESS // April 2018

AnswerPro ECCO Select Validity Screening Solutions Nationwide Transportation and Logistics Services Alumni After Party Hosts

Heartland Seating Inc. Kansas City Testing & Engineering Towner Communications

2018 PANEL OF JUDGES Katheigh Degen

Jeff Shackelford

Alan Farris

Christal Watson

Twin Financial

Landmark National Bank Daniel Kjergaard, CPA

CBIZ HMH

Digital Sandbox KC

Unified Government of Wyandotte County/KCK Michelle Word

Burns & McDonnell 2018 ADVISORY BOARD

Jeanie Brewster

Kathy Peterson

Joyce Christanio

Joe Valenciano

Joelsette Hernandez-Jones

Paul Webber

Consuella McCain

Michelle Word

Cindy Meyer

Mike Wrenn

CertifyNow.Biz Sprint

Pharos Partners

Turner Construction Company CertifyNow.Biz

Heartland Seating BMO Harris Bank

EAG Advertising & Marketing Burns & McDonnell Affinity Worldwide SMART COMPANIES THINKING BIGGER®

33

EQUITY BANK NAPKIN STORIES

ASSET MANAGEMENT GROUP

AMG Changing Property Management Game EMPHASIZING RELATIONSHIPS OVER TRANSACTIONS HAS FUELED ASSET MANAGEMENT GROUP’S GROWTH. ach Batson’s fascination with real estate started when he was a kid. He cut his teeth in the industry when he was in high school, working at one of Kansas City’s oldest commercial real estate firms. That experience only deepened his interest in the profession.

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After earning degrees in economics and finance, he launched his professional real estate career, absorbing everything he could about the industry: accounting, property management, construction management, investment analysis and even deal syndication.

CRASHING IN ON OPPORTUNITY Then the Great Recession hit, and Batson saw an opportunity as the real estate market crashed.

“At the time,” he said, “there really were a lot of opportunities for good management, because as investments were getting dicey, as the market was getting more negative, people were looking for a solution.”

His solution was to launch Asset Management Group in 2008. The company syndicates and manages commercial real estate investments.

Now 10 years old, Asset Management Group provides full-service management to retail centers, office buildings, warehouses and multifamily apartment complexes. It has 4 million square feet of commercial real estate under management and 2,250 family units. The company is consistently named as one of the top commercial property management firms in Kansas City.

34 THINKING BIGGER BUSINESS // April 2018

“The goal is to make those investments as good as they can be, take good care of the people who put the money in and take good care of the people who rent space from us,” Batson said. “We’re going to take care of everything from collecting rent, to making sure the parking lot is salted and the windows are shiny, to taking care of the grass, making sure the property is insured and the taxes are paid—everything that surrounds that investment, our firm is going to take care of and you can relax knowing that someone is watching out for and taking care of your investment.”

INVESTING IN PEOPLE From his earliest days in real estate, Batson observed that more transparency was needed. When he started Asset Management Group, he wanted to create a company that was relationship-driven and emphasized open communication.

“It seemed to me there wasn’t a significant amount of transparency in the reporting and in the way the investments were managed,” Batson said. “. . . the thrust of getting started was to see if investors would change who they were using based on service delivery that includes transparency and open communication. I think we’ve proven that that’s viable.”

To achieve that kind of culture, Batson hires people with strong customer service skills and teaches them real estate.

“We’ve taken some risks on who we hire, how we put our teams together,” he said. “I think we’ve been smart about hiring people that we can train in real estate. They come

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in Day 1 and are just good people. People you’d want to go have a cup of coffee with and chat about their family. Those are the people we want to hire.”

PARTNERS IN GROWTH Batson attributes much of Asset Management’s Growth to their partnership with Equity Bank.

“We’ve worked with Equity Bank for almost 10 years now,” he said. “They provided tools early on that were geared toward companies much bigger than ours, and it allowed us to compete against some firms that at the time were significantly bigger than us. It was a little unusual that a firm our size had access to some of these tools.”

In addition, Batson said, Equity Bank understands the vision of Asset Management Group and has provided “great counsel, great advice.”

“We do business on a number of different levels,” he said. “We borrow money, they handle our treasury, and we’ve managed some real estate for them. They’re looking out for opportunities for us and, of course, we’re looking out for opportunities for them.

Those are the kinds of partners we like to have. This business is relationship-based for us, and Equity Bank has been one of those relationships that’s been very fruitful for us.”

SHARE YOUR NAPKIN STORY

Some of the most amazing business stories started as an idea scribbled on a napkin.

Mark Parman, Kansas City Market President of Equity Bank, invites you to share your Napkin Story. “We not only want to hear your origin story, we can help you continue to write the rest of your company’s story,” he said.

Equity Bank is a full-service community bank with offices in Kansas, Missouri, Arkansas and Oklahoma. Our group of bankers are experienced with businesses from small to large. We take the time to listen to your story and help you design the services that will benefit you and your business.

To share your napkin story, get in touch at marketing@equitybank.com or (913) 323-9300.

Visit: Equitybank.com/napkin-stories

BIGGER | strategy S M A R T

( by Kate Liebsle)

S T R AT E G I E S

Follow the Customer VideoFizz saw users take its app in an unexpected direction­—and capitalized.

label the app for their own business, she had a lightbulb moment.

“I thought, ‘They paid us actual money,’” Steward said. “’Maybe other businesses will.’”

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A Fortuitous Connection About the same time, Steward noticed that some customers were using the app in a way she hadn’t intended. Real estate agents were using the app to create video listings.

That alone wasn’t a game-changer—but then Steward had a conversation with Dan Duffy, the CEO of United Real Estate. The two had known each other as swim parents for years but had never talked business.

Duffy’s company is home to more than 8,000 real estate agents nationwide. He liked the idea of the app and of making it work for the agents.

Duffy didn’t say “yes” while poolside. He researched Steward and VideoFizz, and quickly discovered that Steward didn’t do anything “without her game face on. She’s got her act and her vision together.”

From November of last year until its recent launch, VideoFizz has been working with United and other real estate companies. It took minor changes to develop the app to meet their needs. Now, agents can use the video stitching and editing to easily create branded video listings, complete with their logos, property address and watermarking.

aura Steward was in that all-too-familiarto-other-entrepreneurs moment—that do-or-die time when you don’t know what’s coming next, but you keep moving forward.

She was presenting in Omaha, Neb., at the Inside/Outside Innovation Summit last fall, not really sure of where her business, VideoFizz, was going.

Steward founded VideoFizz in early 2015 as a phone app that collates videos from one or 100+ people into one file that can be sent as a video greeting.

Originally, Steward built the app to help people create group video greetings for birthdays or anniversaries or other goodwill greetings. And, at first, it did. Families, business groups and friend groups from around the world all used the app.

But the problem quickly became obvious: “Our customer acquisition cost was $39,” Steward said.

Steward heard from a lot of people who wanted to partner with VideoFizz, but 18 months in, nothing had come of the partnership interest.

So, in Omaha, when she was approached by a company that wanted to pay her to white

After a demonstration at the VideoFizz offices, Duffy was ready to sign on.

He thinks the app will be game-changing in several ways. First, he said, today’s videos are primarily loaded to You Tube, where agents can’t control the ads running before the video (which could be a competitor) or the video after (could be someone playing with a yo-yo).

Using VideoFizz allows agents to curate a message to their audience.

“You have worked so hard to get someone to your site,” he said. “You don’t want them to be sent to YouTube, where you can easily lose them.”

Duff also said the app is “super simple to use.”

“You can leave a client’s home and have the pictures and video ready to go before you get to the driveway,” he said.

Smart Growth Steward has employed a couple of key strategies, she said, in launching this new line of business.

“First was making sure the product is solid,” she said. “This was instigated by consumers.

We didn’t just do this because we thought it would be cool.”

Secondly, she stayed lean in ramping up.

“That’s really where the path to revenue is,” Steward said.

But now, Steward is gearing up in a big way.

Two years ago, she hired a chief technology officer, Eric Goeken, something she wishes she’d done earlier.

“I’m not qualified to be doing that job,” she said. “It cost us a lot of money to not have done it earlier.”

Her team also will expand in the next few months as additional businesses, school districts and more real estate companies are coming on board.

Steward’s strategy to ensure the future of VideoFizz has three parts: “First is keeping up with the volume. Second is focusing on the stability of the product, and, thirdly, to continue adding partnerships.”

As for Duffy, he can’t wait to see what happens next for Steward.

“It’s great to think about one of the fastestgrowing real estate businesses in the country and this boutique tech company in Kansas City, in tandem, changing the real estate world,” he said.

Kate Liebsle is a freelance writer in the Kansas City area.

SMART COMPANIES THINKING BIGGER®

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BIGGER | hr S M A R T

( by Belinda Waggoner )

S T R AT E G I E S

How to Avoid the Blurred Lines of Harassment The #MeToo movement put a spotlight on workplace interactions.

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he recent torrent of sexual harassment headlines has created significant uneasiness in workplaces across the country.

In February, the Lean In organization released a survey that showed that after #MeToo: » Male managers are twice as uncomfortable working alone with women. » Senior-ranking men are more than three times more likely to avoid a work dinner with a female colleague.

36 THINKING BIGGER BUSINESS // April 2018

» Senior-ranking men are five times more likely to avoid travel with a female colleague.

This uneasiness is understandable, but for most non-creeps, it’s really not necessary.

The #MeToo movement should not mean avoiding interactions with our coworkers.

Instead, it’s a good opportunity to re-evaluate our actions and work to build constructive, healthy working relationships with people of all genders.

Here are a few tips for non-creepily navigating the workplace.

How to Give a Compliment Genuine, polite compliments are essential at work. They encourage employees to continue positive actions, and they improve morale.

Focus on professional achievements, hard work or intelligence. Some examples: » “You made my job easier.” » “You made the company money.” » “You acted like an owner.”

Steer clear of superficial topics like body, weight, clothing or anything appearancerelated. They can be open to misinterpretation

and, depending on delivery, may border on the creepy.

How to Have Appropriate Physical Contact Just like compliments, friendly touch can communicate feelings of trust and cooperation.

When that touch is appropriate and wanted, it acts as social glue.

Handshakes, high fives and fist bumps are usually fine. As with any interaction, pay attention to how the other person responds.

Some people are less comfortable with physical touch than others—respect that. For some, casual hugs may be welcome; let your relationship evolve to that comfort level.

When in doubt, keep your hands to yourself.

How to Travel with Colleagues Many client interactions and significant projects happen on business trips, but travel isn’t without risks—alcohol, hotel rooms and late nights among them. To avoid even the appearance of impropriety: Avoid spending time in any coworker’s hotel room // Meet in common spaces instead.

This is a good opportunity to re-evaluate our actions and work to build constructive, healthy working relationships with people of all genders.

Drink in moderation // Late nights are not only

fertile ground for inappropriate behavior, they may also impede your ability to work the next day. Don’t be afraid to turn in early.

Use your emotional intelligence // Evaluate your

travel teams for obvious power imbalances or tricky pairings. If adding a third member to a travel team mitigates potential discomfort (or potential claims), it’s well worth the expense.

Set the standard // Make sure employees

know there’s no “code of the road.” You may be out of the office, but you’re still at work— and inappropriate actions will be investigated and addressed.

How to Manage Consensual Relationships A whopping 37 percent of workers have dated a coworker, according to a CareerBuilder survey. Because dating someone at work is

gnarly business—even when the relationship is healthy and welcome—it’s helpful to have a policy that articulates what is appropriate.

It’s hard to forbid all workplace dating, but it’s prudent to prohibit fraternization between supervisors and direct reports.

Allowing managers to date their reports risks, at a minimum, the appearance of favoritism or special treatment.

When breakups occur, enforce your standard for civility and professionalism. Ideally, maturity will prevail, and the erstwhile lovers can behave at the coffee pot or the copy machine.

If not, observe and document bad behavior and promptly address any squabbling.

Belinda Waggoner is the CEO of People People, which provides cultural development and support, organizational scaling, recruiting, traditional HR services and business consulting for entrepreneurs. belinda@peoplepeople.us SMART COMPANIES THINKING BIGGER®

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BIGGER | law S M A R T

( by Sarah Stork Meyer)

S T R AT E G I E S

Don’t Gamble With Your Venture Business can be a minefield, but legal counsel can offer protection.

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ou’ve lived in the same house for three years.

It’s been great. You’ve been comfortable, nothing has gone wrong, and you envision thriving there for years to come.

But what if you knew your house was situated on a minefield? Would you get help?

38 THINKING BIGGER BUSINESS // April 2018

Or would you assume that because nothing had gone wrong, nothing ever would?

There’s all sorts of advice out there—good and bad—bombarding entrepreneurs. And they have plenty on their plates already. But one of the biggest mistakes entrepreneurs can make is to postpone or forego seeking legal advice.

Some assume they’ll be fine; others are intimidated by the potential price tag. But the long-term risk dwarfs any short-term gain.

There are so many potential landmines out

there, and what entrepreneurs are gambling can be far greater than they may imagine.

So let’s start with the risks, then follow up with some simple—and affordable—ways entrepreneurs can protect themselves and their innovations.

Risking It All Most entrepreneurs don’t realize that if something goes wrong and they don’t have the proper legal protections, they could lose their ideas, their innovations, their profits—even

As your venture grows, you may need help with things like a lease review, client or vendor contracts, or a master services agreement.

Or you may need to seek out specialized services for a patent, trademark or copyright.

their homes, retirement savings, or other personal assets. It only takes one lawsuit, one mistake—intentional or not—to harm your brand, tarnish your image, or potentially destroy what you’ve worked so hard to build.

If you have an idea that you’re going to put all your time and effort into pursuing, the one thing you absolutely should do is try to protect it.

Building on Secure Ground When should you seek out legal help, and what basic help do you actually need?

Obviously, you won’t call up a lawyer every time you doodle a business idea on a napkin.

The time to do so is when things start getting serious and you move toward taking external steps: consider setting up a business entity, talk to a bank about a loan or consult a vendor to see if your idea would actually work.

Just a couple of steps can set up a business on a solid legal footing.

First of all, make sure you form the right type of business entity—partnership, corporation or LLC, just to name a few—which can provide the correct level of protection from liability. Your choice depends on the purpose of your business, its financial needs, and the ability or desire to grow. And you’ll want to talk to an accountant about the tax implications of each option.

Secondly, a simple nondisclosure or confidentiality agreement drafted specifically for your company offers protection when you present your idea to a potential investor, partner or vendor. Just one unprotected conversation leaves open the door for someone to take that idea as his own.

If you’re worried about unpredictable hourly rates, ask an attorney to provide a quote for a flat fee.

Looking to the Future As your venture grows, you may need help with things like a lease review, client or vendor contracts, or a master services agreement. Or you may need to seek out specialized services for a patent, trademark or copyright.

Small business owners can sign unwise contracts without negotiating simply because they’re so eager to do business or because they think they have no room to

negotiate. That’s not true. In contract negotiations, you always can ask for things. You may not always get them, but you never know until you ask.

Complications also come into play if you have a handshake agreement with a vendor or client, then realize that the two of you have very different recollections of the specifics.

Without anything in writing, there’s no way to know.

So take a little advice from people familiar with both sides of legal agreements: Don’t build your business on a minefield.

Seek basic legal help up front—before things get explosive.

Sarah Stork Meyer is an attorney and cofounder of StartMeUp KC, which provides legal services for startups and small businesses. StartMeUp KC was created to help entrepreneurs achieve smart growth through smart contracts. smeyer@startmeupkc.com

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SMART COMPANIES THINKING BIGGER®

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BIGGER | sales S M A R T

( by Kat Hungerford )

S T R AT E G I E S

3 Things You’re Doing Wrong With Referrals Use your network to your advantage by avoiding common pitfalls.

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eferral networking—where people band together to help each other generate business through word-of-mouth and referrals— is all the rage. What’s not to love about other people keeping an eye out for opportunities to send you leads—for FREE? It’s especially popular because your customers trust recommendations from people they know more than any other kind of marketing. Word of mouth is the top factor in 20 to 50 percent of all purchasing decisions and increases the effectiveness of your paid marketing by a whopping 54 percent.

While the rewards of a thriving referral network are lucrative, building and maintaining one requires real work. The task becomes more arduous with the following missteps.

You View Every Networking Contact as a Referral Source In a perfect world, everyone sends leads to each other. In practice, attempting such an

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40 THINKING BIGGER BUSINESS // April 2018

endeavor is a great way to burn out on the idea of ever sending a referral again.

Trying to keep everyone’s business top-ofmind is exhausting and overwhelming. And with referrals being a two-way street, if you can’t do it, your fellow networking companions likely can’t either.

Try This Find three or four people with whom you can create a referral partnership. They should operate businesses complimentary—but not competitive—to yours. (Example: Foundation repair and mold remediation go hand-in-hand.)

Also look for people whose approach to business is similar to yours; your customers know you and will expect a comparable level of service from anyone you recommend (and you should, too).

Focusing your referral efforts in this manner can have a snowball effect: Frequent contact through frequent referrals leads to a

greater level of trust in and knowledge of each other, enabling you to send—and receive— better referrals.

Keep in mind that greater familiarity can also lead you to the following referral-ruiner.

You View Your Referral Partners as Your Sales Team You’ve identified your referral partners.

You’ve learned a lot about each other’s business and have a solid relationship based on mutual care for your customers, and the referrals are flowing—in many ways, it feels like they’re an extension of your team.

Your partners are already in front of your potential customer talking about you—what if they knew to just mention this product?

Or that price point? Then the eventual conversation would be so much easier!

Asking for or expecting this of your referral partner hurts you twice over. First, even if your referral partner is willing to talk up your product, they will never know your business as well as you do. Second, the sales team expectation can strain your partnership as

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While a referral partnership rarely operates equally, you should have a sense of the value it adds to your business to know if it’s time well spent.

you hit the inevitable missed opportunity, misstatement or accidental broken promise.

Try This Within your partnership, set clear expectations of where a referral starts and ends. The person referring should gauge the potential customer’s interest or need, ask if they want to be referred and then provide contact information to both parties. The referrer should not make promises, do any scheduling or provide more than a cursory overview of the referred company.

The customer is getting the benefit of a referral to a trusted company. The true benefit

of a referral partnership is not that it sells products, but that it sells reputation.

But how do you know for sure that you aren’t sending your clients to someone who operates on an “all talk, no action” motto? If you wait until a very angry customer asks why you recommended the world’s worst whatever to them, see the next point.

You Don’t Follow Up on Your Referrals In the example above, you’re lucky your customer tracked you down. Many will file the experience away, especially if it was just disappointing rather than disastrous. But now, they’ve mentally linked you with dissatisfaction— at best—and you don’t know to fix it.

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Try This When you make a recommendation, let both parties know you’ll follow up. This creates an understanding that you care about its conclusion. Checking back with

your customer then cements that conscientiousness, even if the referral ended poorly.

They may also tell you something they haven’t told your referral partner—whether negative or positive—that you can then pass on to help them build a better business.

Even after you know without a doubt that your partner is referral-worthy, make it a practice to follow up on each referral. This furthers your relationship with both your customer and your partner while helping you gauge the overall success of the affiliation.

While a referral partnership rarely operates equally, you should have a sense of the value it adds to your business to know if it’s time well spent.

Kat Hungerford is program manager for Cultivate Referral Network, a local professional development and networking group for vendors who provide services to residential and commercial real estate. kat@cultivatereferralnetwork.com

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

816-842-7023 www.markone.com

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BIGGER | customer service S M A R T

( by Aaron Reese)

S T R AT E G I E S

How Contractors Can Avoid Customer Service Complaints Don’t add to your client’s stress.

S

olid workmanship is key to customer satisfaction. Everyone knows that. But it might surprise contractors to learn how many 42 THINKING BIGGER BUSINESS // April 2018

complaints they can avoid with excellent customer service.

Referencing complaints in just Missouri and Kansas, of the nearly 500 filed with the BBB in 2017 against home improvement contractors, the most common issues centered on

customer service. Compared with complaints about warranty issues (12.7 percent) or repair issues (5.4 percent), customer service complaints outnumbered both combined (20.1 percent). Why is that?

Understand the customer When a customer contacts a home improvement contractor, something has already gone wrong—a leaky roof, rotten siding, broken windows, hail-damaged gutters or any number of problems. Unlike customers who buy products and expect them to work properly, customers hiring contractors want what they already have to be fixed or replaced.

Contractors enter transactions with customers who never wanted to contact them in the first place.

Customers searching for contractors are stressed out. Their daily lives have been

temporarily upended, and they’re looking for someone to help get their lives back on track as painlessly as possible. This is where contractors will want to focus if they are to avoid customer service issues.

No business is perfect. Problems arise, and sometimes customer complaints are unavoidable. Customers know this. They don’t expect every business to be flawless. It’s easy for businesses to more vividly remember irate customers than mundane ones, but irate customers are actually rare.

Even so, contractors have less wiggle room with mistakes they make because they so often deal with people who are stressed to start with. That is why contractors need to be on top of their customer service game.

Communication breakdown An irate customer is frequently created by communication breakdown by the business.

Customers report frustrations like “no one called me back,” that they were “unable to contact” the business, and they got messages of “full voicemail” when they called the business.

Worst is when the customer schedules an appointment and the company is a “no-show.”

No matter how many issues the business is juggling, the customer probably has just as many. Combine that with the customer’s focus on just one issue (their own), as well as the need to take days off work, make appointments on their lunch breaks, amend their budget and reschedule other life events to accommodate a repair, it is easy to understand why they’re intolerant of no-shows. There is no more efficient way to turn a disgruntled customer into an outright enemy. Customers rely on contractors to return them to their routines, not make the repair more trouble than it’s worth.

It may be irritating for a business to hear from an angry customer every day—but, guaranteed, the customer is no happier calling all the time. Even if a business has conflicting schedules or family emergencies, it needs to keep the customer in the loop, especially if it has to cancel.

Being responsive to customers who call, especially if the call concerns a mistake, will eliminate most customer service issues. If a customer calls to have a mistake rectified, they may not even be upset yet. Again, customers understand that sometimes problems come

up. However, if a business lets customers twist in the wind, the customer will get upset. By responding quickly, businesses have an opportunity to look impressive and fast-acting.

Act quickly The customer expects a business to respond in a reasonable time, but businesses can cut off possible problems by calling back quickly.

If the customer sounds upset, the best plan of action is for the business to call back immediately. Sure, some customers may demand an unreasonable resolution to make them happy, but for the most part, customers just don’t want the hassle. They want the havoc caused to their daily lives to cease. Businesses best serve themselves by acting quickly, decisively and professionally. Making the customer know that their satisfaction is of the utmost importance gives them comfort and confidence that a solution will be forthcoming.

Call back, call quickly and keep in touch.

Keeping just these few things in mind when dealing with customers will cause customer

service-related complaints against contractors to plummet.

BBB of Greater Kansas City has been helping to create trust between consumers and businesses since 1916. Aaron Reese not only educates the public about consumer and business matters, he is also an investigator for BBB.

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43

SCALEUP! KC

KC SHAVE CO.

( by Dawn Bormann )

Sharpening Their Business Acumen MENTORS HELP GIVE KC SHAVE CO. THE EDGE ON FUTURE GROWTH.

W

hen Mike Knopke co-founded KC Shave Co. in March 2016, it was the serial entrepreneur’s third business.

And he immediately knew this one was different from his other successful businesses.

“It has potential to be bigger than anything I’ve ever done,” Knopke says.

As he and business partner Joe Henderson listed the obstacles ahead of them, they realized it was time to get involved in the entrepreneurial community and ask for help.

The entrepreneurs sell craft shaving supplies including single-blade razors, brushes, specialty soaps, beard oils and more. They had already spent time researching the market but needed to know how to scale the business.

44 THINKING BIGGER BUSINESS // April 2018

A mentor suggested ScaleUP! Kansas City.

ScaleUp! is a free program offered by the University of Missouri-Kansas City Innovation Center with support from the Ewing Marion Kauffman Foundation. The program includes classes, peer mentoring, professional guidance and more. It’s open to small businesses like KC Shave Co. that operate in a market capable of supporting more than $1 million in annual sales and that want to rapidly grow their business.

RETHINKING STRATEGIES

After selling two successful companies— an HVAC business and a junk hauling and recycling company—some might think

Knopke didn’t need the ScaleUP! advice. They would be wrong.

“The teachers and the coaches, they’re all fantastic,” Knopke says.

ScaleUP! has helped Knopke focus the business and prepare for the growth.

By the end of his first class, Knopke started rethinking several strategies. For instance, Knopke says he’s always set long-term business goals. But ScaleUP! taught him to take a few extra steps each week and drill down to think about exactly how to get to a three-year goal.

Knopke has gone from thinking like a technician working in a business to a CEO who is developing and creating strategy. While taking the ScaleUP! courses, Knopke set a three-year goal and began working backward to figure out how to accomplish that plan.

SPONSORED CONTENT

Knopke and Henderson sat down and refigured their cost to make sure they were setting the right foundation for their business.

They didn’t look back.

Mike Knopke

COST-CONSCIOUS

One of the first changes Knopke made as a result of ScaleUP! was to adjust his pricing strategy. Knopke knows what he needs to charge today in order to make a profit. For now, overhead is a mere two people: Knopke and Henderson. But the company is on a growth trajectory. ScaleUP! experts urged him to consider all the variables of scaling when setting a price.

“You’ve got to make sure that you’re covered in your cost for future growth,” he says. “I can’t just all of a sudden in three years double my price because now I’ve got salespeople.”

That particular piece of advice from ScaleUP! came at a crucial juncture. It happened about a week before the business partners were gearing up for a critical tradeshow in Las Vegas where they were marketing their products to wholesale buyers for retailers across the country.

Pricing had to be precise.

includes 60 stores in 11 states, as of early March. The appeal, Knopke says, is diverse.

For instance, utilitarian stores like Ace Hardware Stores carry the shaving line.

But it’s also found a home in several specialty GETTING ‘BETTER AND SMARTER’ men’s stores, including ULAH, a high-end Both business partners feel more confident, men’s clothing and lifestyle store in Westwood. thanks to ScaleUP! resources offering At ULAH, the owners had looked for a evidence-based help. high-end shaving product to add to their Henderson also noticed Knopke’s shelves before choosing on KC leadership approach has changed Shave Co. since ScaleUP!. Knopke clearly “Their price point is great. communicates his vision The quality is definitely these days. there,” said Joey Mendez, “It’s more big-picture,” a co-owner.

Henderson says. “Now, it’s The varied retailers are actionable steps: This is a reminder that the oldwhere we’re going. This is school shaving approach is how we’re going to do it.” enjoying resurgence.

But the entrepreneur also Joe It means there is much Henderson is more open to ideas and help, to prepare for as Knopke and Henderson says.

Henderson make plans to steady the “He’s recognized that there are things business for major growth. ScaleUP!, Knopke he doesn’t know, and he’s willing get better says, has allowed them to prepare for the and smarter to put the company first,” work ahead. It’s also given them a place to Henderson says. come back and regroup when they need That’s critical, given that KC Shave Co. is advice down the road. competing against massive companies that “I personally feel like we’re on the cusp of sell throwaway razors with multiple blades. something fairly large, so it’s exciting,” Knopke “We are bringing the shave world back to says. “And scary all at the same time.” the basics of shaving,” Knopke says. “What the big guys did is make you think that you Dawn Bormann is a freelance writer in the Kansas City area. need four or five blades to get a good shave.”

The co-founders started the business as several companies including the Dollar Shave ENTREPRENEURS Club were disrupting the shaving market Mike Knopke and Joe Henderson with old-school approaches to shaving.

KC Shave Co. is different still, they say.

COMPANY The Kansas City company offers a singleKC Shave Co. blade razor for an overall better shave. The (913) 544-5373 big companies claim that several blades will KCShaveCo.com give you a better shave, Knopke says.

Kansas City Shave Co. LLC offers a full line “The reason they did that was so they of craft shaving supplies including singlecould charge a ridiculous amount of money,” Knopke says. blade razors, brushes, specialty soaps, In addition to razors, KC Shave Co. sells beard oils and more. shave soaps, beard oils, brushes and other accessories. The specially formulated soaps ARE YOU READY TO SCALE UP? and beard oils don’t have harsh chemicals, ScaleUP! Kansas City—a free program for KC making them better for your face, Knopke says. small businesses—is looking for companies ‘WE’RE ON THE CUSP’

The company operates mainly by e-commerce for now. But it is growing retail sales, which

that want to supercharge their growth.

Learn more at www.scaleupkc.com

SMART COMPANIES THINKING BIGGER®

45

IN FOCUS

Residential Real Estate Trends ( by Katie Bean )

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Source: Your Future Address LLC

SELLERS, REMODELERS REAP BENEFITS

Hot, Hot Housing Market I

t’s been a cold winter in Kansas City, but the residential real

estate market is hot.

Professionals across the board say that although inventory is tight, plenty of buyers are looking to buy new and existing homes across the metro.

On the other hand, some are choosing to stay in place, opting to expand or remodel rather than jump into the fray of a seller’s market.

46 THINKING BIGGER BUSINESS // April 2018

Here’s a look at some of the trends in the current residential real estate market.

REAL ESTATE

Across the metro, and, to a large extent, across price ranges, demand is strong for existing homes.

“We are seeing a strong seller’s market across all

Kat

ie Yeager

price points in Kansas City. Homes below $200,000 are extremely popular with both first-time homebuyers and investors,” said Katie Yeager, a Realtor and CEO of Your Future Address LLC, a flat-fee real estate company based in Overland Park.

There’s no doubt it’s a seller’s market. When she started selling homes in 2009,

Yeager said, there was a grace period where buyers could find a home, think about it and then make a deal.

Now, she said, the window is so short it’s nearly instantaneous—buyers should expect to look at a house as soon as it hits the market because many homes garner multiple offers in the first day or two. She said she’s had some trusting clients buy a home based on a FaceTime walk-through. She’s even had investors buy homes sight-unseen because there’s no time to wait.

Buyers also can’t expect sellers to make fixes or concessions, she said.

Sellers have the luxury of being picky when it comes to financing, Yeager said.

“First-time home buyers are often times having to steer away from loan programs like FHA because sellers that have multiple offers on a home prefer cash or conventional financing,” she said.

In addition, she said buyers should be prepared to make an enticing deal, perhaps

2017 RESIDENTIAL HOUSING BUILDING PERMITS

685 682 737 827 954

Clay County—Kansas City

Jackson County—Kansas City

Jackson County—Lee’s Summit

Johnson County—Lenexa

Johnson County—Olathe

Source: Home Builders Association of Greater Kansas City

continued

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SMART COMPANIES THINKING BIGGER®

47

IN FOCUS

Residential Real Estate Trends ( by Katie Bean )

2018

including a clause that might allow them to win out among multiple offers.

“We are seeing a lot of escalation clauses saying that a buyer will pay $1,000 over the next highest bid up to a certain amount,” she said.

There are a few things sellers should know, too. First, Yeager said, it’s a great opportunity for those thinking about downsizing to sell because they’re likely to come out ahead, even if they pay a premium for a smaller home.

Yeager said she recommends that sellers list the house on Thursday and stay elsewhere until Sunday afternoon. With 30 or more showings in the first two to three days, “you can’t do life and have the house in show-ready condition” during that time, she said.

Houses also need to hit the market at just the right price, Yeager said. Buyers already expect to pay a premium and possibly more than the asking price, but they’ll balk if they think a home is overpriced.

“Buyers today, if they think the price is unreasonable, they won’t even make an offer,” she said.

One thing hasn’t changed from past housing markets—the homes need to be clean and staged for the buyers to see themselves there.

“Clean it from top to bottom, more than you’ve ever cleaned it before, and make sure

when someone walks into your home, it feels like their potential home,” Yeager said.

The market offers opportunities for current homeowners who want to stay put, as well.

Yeager said it’s a great opportunity for homeowners with private mortgage insurance to refinance.

Kerns said he expects to see similar demand in 2018. In fact, he said the constraint he’s worried about is the number of available lots in the Northland.

As interest rates remain low, Kerns doesn’t see demand slowing down in the near future—but he’s proceeding with caution.

NEW CONSTRUCTION “I’m probably a lot more Some buyers are getting cautious and a lot more out of the existing home conservative and paying a market and turning to whole lot more attention new construction. to it. I can tell you this “I think what’s statement: I told many driving people to new people back in the day— construction is low ’05, ’06, whenever it was inventory on the resale, going strong—that I don’t Ga r y Ker ns or the existing homes, see how this could ever go the market. They can’t find what other direction. And I just had they want,” said Gary Kerns, who is never experienced it, so I didn’t have a president of the Greater Kansas City Home clue as to how could this ever change. ...

Builders Association and owner of Gary “Is it going to happen again? Eventually.

Kerns Homebuilders, which primarily builds Maybe it will just be a little setback, a little north of Highway 152, in the Platte City and one- or two-year dip, not a 10-year dip.”

Smithville areas.

But for now, he’s continuing to give the In 2017, 6,218 single-family home permits people what they want. Some of the trends were issued in the metro area. That number he’s seen include barn doors and foregoing has been steadily growing since the Great the Whirlpool tub in favor of a larger walk-in Recession—it was the first time since 2007 shower. Bronze fixtures are being replaced by that permits surpassed 6,000. satin nickel and chrome, he said, and earth

T OP: Gary Kerns Homebuilders builds many homes that are a reverse story and a half.

Owner Gary Kerns said homebuyers are beginning to favor Cambria quartz countertops in the kitchens. They also like the open concept of having no walls between the kitchen, dining and living areas.

RIGHT: Some trends that Kerns said are popular in homes now are sliding barn doors and larger walk-in showers. (Photos courtesy of Gary Kerns Homebuilders)

48 THINKING BIGGER BUSINESS // April 2018

tones are out—many buyers are asking for a gray color scheme.

A kitchen and bathroom staple might also be phasing out.

“Granite countertops have been popular forever, and now quartz countertops are making their way into the market here,” Kerns said. Quartz prices have become competitive with granite, he said.

With new construction, buyers are able to choose what they want—but they’ll have to wait. For the price range that Kerns works in—about $280,000 to $400,000—there’s only about a one- to two-month supply of homes. It takes about eight months for Kerns to build, so buyers have to be patient.

Buyers looking for new single-family homes for less than about $200,000 are likely to be disappointed, though.

“I think it’s almost impossible right now with lot prices. Lot prices kind of dictate the end price of home,” Kerns said. He said developers likely would have to look toward the fringes of the metro area to find lots cheap enough to build lower-priced homes.

“If a guy could figure that out, it would pay big dividends, probably,” he said.

An alternative for those seeking housing at that price point would be the higher-density options, such as row homes rather than single-family.

Collection, a company based in Belvue, Kan., that makes customized prefabricated panels that are quicker to install than tile and are easier to clean. Some customers opt for heated floors in the bathroom, he said, and many now prefer clear glass shower doors.

Another contractor who also sees many bathroom remodels is Mike Dodd, CEO of Lifewise Renovations. He and his staff members have a certification called CAPS—Certified Aging-in-Place Specialist.

Lifewise Renovations specializes in helping homeowners with mobility issues. With a registered occupational therapist on staff to consult with the client, modifications are designed to address specific needs in order to keep the client comfortable and safe at home.

His company’s services are in demand with aging baby boomers, Dodd said.

Some of the most popular remodels Dodd sees are removing tubs in favor of barrier-free showers and roll-under vanities for wheelchair users. He stressed the importance of the modifications fitting the style of the house. “No one wants an institutional-looking bathroom. Ours are aesthetically pleasing and very elegant.”

The remodeling Dodd does adds value rather than diminishes it, he said.

“The real estate market is changing,” he said. “Incorporating universal design elements into a house is changing the way people perceive value in a home to the extent where it is becoming a selling point.”

Katie Bean is the president and editor at Thinking Bigger Business Media.

(913) 432-6690 // kbean@ithinkbigger.com

RENOVATION

Allen Deuschle works with homeowners who have opted out of selling and instead are looking to expand or refresh their current homes.

Deuschle is owner of Kansas City Remodel & Handyman Allen LLC, and he said he’s seen an increase in requests to add on to homes— often a bedroom, bathroom or both. With the right additions, he said, people may be able to grow in their homes for another 10 years.

Many of his clients are looking to spruce up homes that are 15 to 25 years old. A big part of his business is replacing decks in that age range, Deuschle said.

Customers also are looking for open floor plans, especially in the kitchen and living room—“walls are coming down to give it an open feel,” he said.

In bathrooms, Deuschle said he’s replacing carpet with tile, but on the walls, he sees many customers choosing products from The Onyx

T OP: Lifewise Renovations remodeled a bathroom that needed to be wheelchair-accessible. The bathroom and show entrances were widened to 48 inches. The shower is curbless with a built-in bench and handheld showerhead. The vanity has a granite top and is sloped below the sink so the client can access it.

LEF T: The curbless his-and-hers tile shower

by Lifewise Renovations includes frameless glass doors and a built-in bench. (Photos courtesy of Lifewise Renovations)

SMART COMPANIES THINKING BIGGER®

49

BIG | shots

Caffetteria Opens Jo Marie Scaglia, creator of The Mixx, has a new restaurant concept called Caffetteria. It is in The Shops of Prairie Village, in the same location as Bruce Smith Drugs. Caffetteria opened March 14. (Photo courtesy of Jenni Dold)

Breaking Ground Downtown McCownGordon’s Chris Hampton operated a jackhammer to break ground on the firm’s renovation of 850 Main in downtown Kansas City, Mo. When complete in early 2019, the building will house the growing construction management firm.

Looking on, from left, is City Manager Troy Schulte, KCEDC president Bob Langenkamp, McCownGordon CEO Ramin Cherafat, Jackson County Executive Frank White and McCownGordon chairman Brett Gordon. (Photo courtesy of

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

McCownGordon)

Big Breakfast A panel of entrepreneurs shared lessons learned at the latest Big Breakfast on March 22 at Kauffman Foundation Conference Center. Panelists were, from left, Erica Brune, Mike Saxton, Lisa Stehno-Bittel and Luke Einsel.

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