Thinking Bigger Business Media—February 2018 by Thinking Bigger Business Magazine

VOL. 27 // ISSUE 2 // FEBRUARY 2018

UNEXPECTED ENTREPRENEURS Likarda is thriving with a new lab and big investment.

BIGGER LAW

You Registered An LLC— Now What?

BIGGER MARKETING Is Podcasting Right for Your Business?

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CONTENTS

F E BRUA RY 2018 VOL. 27 // ISSUE 2

IN FOCUS

44 Johnson County Mixed-use developments are creating an ecosystem where small businesses can thrive.

D E PA R T M E N T S

07 The Bigger Picture 08 Biz Bits 10 BIG | deals 13 25 Under 25 ® Updates 49 BIG | talk 50 BIG | shots

F E AT U R E

28 Tax Cuts The Tax Cuts and Jobs Act of 2017 is generally favorable to small businesses, experts say.

OUTLOOK

20 KC Futures A new program from Avis Budget Group creates a “mobility solution” for Midwesterners.

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

32 BIGGER | law 7 Things To Do After Starting an LLC

24 | KC ENTREPRENEURS HE ON T R E V CO

‘THE FUN OUTWEIGHS

THE RISKS’

34 BIGGER | hr Don’t End Up on the Wrong Side of the Law

36 BIGGER | growth

Two researchers unexpectedly found themselves becoming

Think Big to Grow Big

entrepreneurs—and the business is thriving.

39 BIGGER | marketing Should You Start a Podcast?

40 BIGGER | trade Expand Through Exporting 4

THINKING BIGGER BUSINESS // February 2018

B IG I N F LU E NC E

| 18

B IG S TA R T S

| 18

MADE TO LAST

Lindsey Ott, Ph.D., Director of Product Innovation, operates an automated liquid handling machine.

C O M PA N Y T O WAT C H

KC M A D E I T

ENTREPRENEURIAL JOURNEY

Just Play Sports Solutions

Alphapointe

Bo Lais, Lula

A digital platform helps coaches and players throw out the old playbook.

The organization offers a variety of services with a mission to create jobs for the visually impaired.

He‘s gone from small business ownership to leading a high-growth tech firm. SMART COMPANIES THINKING BIGGER®

CONTENTS

FE BRUA RY 2018

ON THE WEB // iTHINKBIGGER.COM Web Columnists

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Is it Right to Raise Prices When You Aren’t Adding Any Value?

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Hiring Tips for Business Owners

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Ruth Baum Bigus, Dawn Bormann, Chris Brown, Pete Dulin, Narbeli Galindo, Jeff Julian, Kate Leibsle, Jo McClure, David Mitchell, Margaret Reynolds

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THE BIGGER PICTURE

A Salute to Small Business

hinking Bigger Business Media

milestones and successes they’ve achieved

is dedicated to sharing the

since winning the award.

accomplishments of the

And don’t overlook this month‘s cover story

small to mid-size businesses that have

featuring Karthik Ramachandran and Lisa

historically been the foundation of Kansas

Stehno-Bittel, co-founders of Likarda. They

City‘s economy.

won the 25 Under 25 Award in 2015, and they’ve been

The first quarter is always a special time of year as we

going strong ever since. Neither co-founder had any

spotlight the 25 companies that make up each year‘s

business experience when they started the biotech

class of 25 Under 25 winners. These are 25 companies

company in 2012—they were a couple of academics.

with fewer than 25 employees—definitely small

Now, they not only have a marketable product, they are

companies—but you wouldn’t necessarily know it

profitable and received a $4 million investment in 2017.

based on all their accomplishments.

Kansas City is filled with small businesses with

Be sure to read the stories of the 25 Under 25 Class of

similar stories. Founders who are thinking bigger in

2018 in the special supplement that‘s included with

a multitude of ways—about how to create a better

this issue of your magazine. The Class of 2018 marks

future for themselves and their families, about how

the 17th group of companies we’ve honored—and

to change an industry, about how to improve lives . . .

you’ll discover how they’re thinking bigger about their

and on and on. While we are proud to spotlight the

companies and about Kansas City.

25 Under 25 companies this month, we also recognize

Then turn to pages 13-15 of this issue to catch up with

and salute the work of all big-minded small businesses

our 25 Under 25 alumni—you’ll find updates on the

in Kansas City!

Ke lly S can lon

// Publisher // kscanlon@iThinkBigger.com

SMART COMPANIES THINKING BIGGER®

BIZ BITS

Proposal Aims to Provide More Health Care Coverage Options

3 Companies Join Digital Sandbox KC

The U.S. Department of Labor in January proposed a rule that could help make health care more affordable for small businesses and the self-employed. The new rule would broaden the criteria for determining when employers may join together in an employer group or association to offer group health plans. This could allow small businesses to band together for group pricing. A comment period on the proposal is open through March 5. Those who would like to weigh in can do so at www.regulations.gov. Note that comments will be publicly viewable and should not contain private information.

Three new companies will flesh out their business plans with the help of Digital Sandbox KC. Digital Sandbox KC, launched in 2013, is a proof-of-concept program that moves early-stage entrepreneurs from concept to commercialization. The three companies chosen are “revolutionizing industries with innovative technologies,” a release said. These are the companies selected: » Hungry? is a mobile app with an algorithm that aims to simplify the decision of what and where to eat, and locate the fastest and cheapest dining options. » MusicSpoke is a global marketplace that allows musicians and educators to purchase sheet music directly from composers. » TradeLanes automates trade management for U.S. exporters using an online platform to lower costs and remove days from the supply chain.

ECJC Takes Lead Role In Entrepreneur Policy The Enterprise Center in Johnson County is going to spearhead a new effort to share entrepreneurs’ views with state officials. The Kauffman Foundation has awarded a grant to ECJC to launch the first Kauffman Foundation Entrepreneurs’ Policy Network. ECJC was one of only six organizations nationally to receive the grant. The ECJC-led network will be an alliance of groups that will let policymakers know how certain state rules or policies are affecting entrepreneurship.

GAME On: New Sessions Start This Month The Kansas Small Business Development Center at Johnson County Community College is offering another round of GAME programs, starting in February. GAME stands for Growing through Action, Measurement and Engagement. It is open to owners of companies that have been in business for three years, have employees and have more than $250,000 in sales. The sessions work on ongoing strategic planning. The cost is $99 for five sessions or $50 for one session. Learn more at bit.ly/2Dhbvvu. 8

THINKING BIGGER BUSINESS // February 2018

New Regional SBA Leader Tapped There’s a new administrator for the regional SBA district. Tom Salisbury has been appointed as the Regional Administrator for U.S. Small Business Administration’s Region VII, which includes Missouri, Kansas, Nebraska and Iowa. Salisbury’s experience fits with his new role. Previously, Salisbury was the small business liaison for U.S. Sen. Roy Blunt (R-Mo.). Prior to that, he spent the majority of his career in the lending industry.

Entrepreneur to Lead SBA Women’s Office The U.S. Small Business Administration’s Office of Women’s Business Ownership has a new leader. Kathleen McShane was named in January as assistant administrator for the office. She will manage a nationwide network of Women’s Business Centers that provide training, counseling and mentoring to entrepreneurs. Previously, McShane created Ladies Launch Club in 2006 to help women start or expand their businesses.

SCORE a Business Award

Local Restaurants Contribute to ‘Exciting Food’ Honor Kansas City’s food scene was named among Zagat’s “30 Most Exciting Food Cities in America 2017” in December, thanks in part to many independent local businesses. Zagat, a restaurant-rating site, ranked Kansas City at No. 28 on the list. The listing noted the density of James Beard award semifinalists and called out some impressive eateries, such as Manifesto, Bluestem and Port Fonda. “Noteworthy newcomers” listed by Zagat include the “epically swank” Monarch Cocktail Bar & Lounge, speakeasy Swordfish Tom’s, EJ’s Urban Eatery, and Corvino Supper Club & Tasting Room.

Do you run one of America’s best small businesses? SCORE is giving U.S. entrepreneurs two ways to compete for national glory. The organization, which provides free business mentoring to small businesses, is accepting entries now for two award programs that it hosts: » The SCORE Awards are open to small businesses that were SCORE clients in the past year. Eleven such companies will be recognized during the SCORE Awards Gala on Sept. 13 in Washington, D.C. » The American Small Business Championship will award $15,000 grand prizes to three small business owners at the gala. Apply at www.championship.score.org by 4 p.m. Feb. 7.

Hungry for Knowledge? Register for the next BIG Breakfast. Learn behind-the-scenes stories from business owners featured on the cover of Thinking Bigger Business magazine.

Thursday, March 22 // 7:30 -9 a.m. Kauffman Foundation Conference Center 4801 Rockhill Road, Kansas City, Mo.

» Erica Brune // Lever1 » Lisa Stehno-Bittel // Likarda » Mike Saxton // Orange EV RSVP TODAY AT ITHINKBIGGER.COM | (913) 432-6690 FOR SPONSORSHIP OPPORTUNITIES

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BIG | deals

WINNERS AWARDS & RECOGNITION

Business Owner Earns National Honor Stephanie Sage, owner of Sage Restoration LLC, was selected by Enterprising Women Magazine as a 2018 Enterprising Women of the Year Award honoree. She will receive her national award in March at the Enterprising Women Conference and Celebration in Miami. To be selected, nominees must demonstrate that they have a fast-growing businesses, they mentor or actively support other women and girls, they are involved in entrepreneurship and they are leaders in their communities. Sage Restoration, based in Overland Park, does post-disaster cleanup for homes and businesses, including fire and smoke damage, water damage, and mold remediation. Tonganoxie Clothier Gets Hat-tip from Duchess Tonganoxie’s Peruvian Connection received a Christmas present of worldwide recognition when a member of the British royal family wore one of its toppers. The company announced on Instagram that Kate, Duchess of Cambridge, wore its Vallnord alpaca fur hat to a Christmas church service. Peruvian Connection has a retail location in London. NEW PRODUCTS Fishtech Group Introduces AI Service, New CISO Fishtech Group has unveiled a new cybersecurity solution and welcomed a new chief information security officer to oversee it. 10

THINKING BIGGER BUSINESS // February 2018

A WINNER

Eric Foster, previously of Netsmart and RiskIQ, will take responsibility for CYDERES, Fishtech Group’s new machine-learningpowered security-as-a-service offering. As chief information security officer, Foster also will oversee Fishtech Group’s security, governance and compliance efforts. The CYDERES platform gathers information from all the different IT security tools a company might be using and puts that information into a single place, making it easier for human analysts to take action.

Blooom Offers ‘Suspicious Activity Alert’ Texts Leawood’s blooom is adding a new security feature to its “robo-adviser” platform for 401(k)s: automated Suspicious Activity Alerts. If blooom spots a withdrawal or loan from a user’s retirement account, the system will send a text message to that person. The Suspicious Activity Alerts are part of blooom’s $10 per-month subscription, if users opt in to text messaging. Blooom automatically monitors and optimizes a customer’s employer-sponsored retirement account for them, ensuring that funds are invested properly without unnecessary fees. Compliance Software Gets Boost Craig Safety Technologies, based in Kansas City, Mo., has a new partner to help expand the reach of its compliance software. In January, Compliance Safety Manager software and consulting services, launched on the Geotab Marketplace. Geotab provides its subscribers with access to companies that can help with fleet management requirements.

Branding

Design

Digital

New Features Help Manage Prescriptions Rx Savings Solutions rolled out a set of new features that should help its users keep up with their meds and save money. The Overland Park company has created a platform that helps customers identify lower-cost alternatives for their prescriptions. More than 2 million people have access to Rx Savings Solutions. And now they’ll have access to Medicine Cabinet, a new feature that helps users organize information about all their medications (and their kids’) in a single location. Medicine Cabinet will output a full list of a user’s meds, which can then be shared with a doctor or pharmacist. Medication Reminders, another feature, sends email or text reminders to users so they take their meds at the right time. EXPANSION Summit Grill to Open Third and Largest Location Summit Grill plans to open its third location in Gladstone. The new location is expected to open in late summer of 2018 and will be the largest, seating up to 300 guests. It will be at 601 NE 70th St. in the Heights at Linden Square mixed-use development. Summit Grill first opened in 2012 in Lee’s Summit and added a Waldo location in 2014. The restaurants are led by Andy Lock and Domhnall Molloy, who were named as Restaurateurs of the Year in 2017 by the Greater Kansas City Restaurant Association.

MERGERS & ACQUISITIONS

MarksNelson Acquire Lenexa Consulting Firm Local accounting and business advisory firm MarksNelson is building up its expertise in tech by acquiring Blue Ocean Consulting, a Lenexa firm. Blue Ocean offers a range of technology consulting services, including custom software development, data analytics, help with the Industrial Internet of Things and more. MarksNelson and Blue Ocean Consulting serve similar kinds of customers, including small and medium-sized businesses and clients in construction, economic development and manufacturing. Blue Ocean will operate under its current name until this summer, when its team relocates to MarksNelson’s offices in Kansas City. KC Entrepreneurs Now Own The Pitch Two local entrepreneurs are the new owners of The Pitch, a longtime alternative publication in Kansas City. Stephanie Carey and her husband, Adam Carey, are the new owners. They created Carey Media LLC as the new ownership entity of the publication. Stephanie Carey will serve as CEO of Carey Media and publisher of The Pitch, overseeing strategy and day-to-day business. Adam Carey is COO of Carey Media and will provide operational support. The couple’s purchase returns The Pitch to local ownership for the first time in nearly two decades. Carey Media purchased the publication’s assets from SouthComm Inc., the second-largest publisher of alt weeklies, in a deal that closed Dec. 31. NEW BUSINESS New Marketing Firm Helps Businesses Zag First The former president of Engage Mobile Solutions is branching out with ZAG FIRST

Digital Marketing, a new company serving

small and midsize businesses. Matthew Barksdale launched ZAG FIRST on Jan. 1 after selling his interest in Engage Mobile. The new company will offer help with content and video creation, web development, email marketing search engine optimization, social media marketing and other services.

Northland Coworking Space Opens A new coworking space has opened in the Northland. Eastbrook Collaborative offers 32 private office spaces available at 1508 NW Vivion Road, Suite 300, Kansas City. The spaces can accommodate one person, or they are flexible to allow for up to an eight-person team. Tenants have access to shared conference rooms, a pingpong table and a meditation room. Conference and training rooms can be rented by the hour, half day or full day. Mediterranean Deli Opens in Mission A new shop offering a taste of the Mediterranean opened in December in downtown Mission. Oregano & Thyme Mediterranean Market & Deli, 6116 Johnson Drive, offers soup,

sandwiches and other specialty items for lunch, along with fresh-baked cookies and bread. The shop sells Mediterranean goods including dry pasta and oils. It also offers recipe cards for the ingredients sold there. The owners are Daisy Rodriguez and Ted Gavalas. Brookside Restaurant Offers Southern Flair A chef who lives in Brookside aims to reconnect with his southern roots through his new restaurant.

Chef Charles D’Ablaing planned to open Brookside Poultry Co., 408 E. 63rd St.,

Kansas City, in January. D’Ablaing, who grew up in Atlanta, has served as executive chef at Chaz on the Plaza and Webster House. The family-friendly restaurant will focus on locally sourced poultry, including chicken, duck and turkey from Barham Cattle Co. & Family Farm in Kearney. The restaurant will serve fried chicken, cheddar biscuits, shrimp and grits, and fried green tomatoes.

Hawaiian Concept Says Aloha to Belton A Hawaiian-themed restaurant concept will say aloha to Belton in February. Hawaiian Bros Island Grill is a spinoff of Oregon restaurant chain Hawaiian Time. Brothers Cameron and Tyler McNie grew the Oregon restaurants and wanted to add new touches for the Midwest concept. Hawaiian Bros will be at 1112 E. North Ave. The signature offering is Huli Huli Chicken, a teriyaki chicken dish. The McNies already are scouting a second area location. ON THE MOVE Financial Planning Firm Taps Former Lockton CEO Prime Capital Investment Advisors, a financial planning firm based in Overland Park, is shaking up its leadership team. Glenn Spencer has joined the firm as CEO. Scott Colangelo, who was CEO, will become managing director, chairman; President Tim Hakes will take the title managing director, vice chairman. Spencer will run day-to-day operations of the firm and will work with senior leadership to develop and execute the firm’s continued SMART COMPANIES THINKING BIGGER®

BIG | deals

strategic plans. He will report to the managing directors. Spencer most recently was CEO at Lockton Cos. CFP Board Chairman Leads New Financial Planning Office A nationally recognized financial planning professional will bring his experience and clout to lead a new local office. Richard Salmen has been named as president of financial planning services at St. Joseph-based Family Investment Center, which opened a Lenexa office Jan. 1. Family Investment Center is a fee-only financial planning and investment firm serving clients nationwide. Salmen is 2018 chairman of the Certified Financial Planner Board of Standards’ board of directors and a past national president of the Financial Planning Association.

THINKING BIGGER BUSINESS // February 2018

Before joining Family Investment Center, Salmen spent 16 years overseeing the financial planning practice at BOK Financial Corp/GTrust.

Niall Moves to Park Place Luxury watch retailer Niall has moved to a new location in Leawood’s Park Place from its previous home at Kansas City’s Country Club Plaza. Its grand opening is Feb. 3. Ripple Glass Offers Commercial Collection Kansas City recycling company Ripple Glass has announced a new commercial collection service. Ripple is enrolling businesses in River Market, Downtown Kansas City, the Crossroads Arts District and Westport in a

program to collect glass. Ripple recycles it into bottles and fiberglass insulation. Businesses can sign up at www.rippleglass.com/business-signup or at (816) 221-4527. The service is expected to begin in April. New President Takes a Shine to LaborMax LaborMax Staffing, based in Kearney, has a new president. Tony Shine took over the role in January. Shine will run the company’s 85 branches in 24 states nationwide, which employs about 350 people. He takes over the leadership reins from Mike Ingham, who has stepped out of the CEO role after 18 years. Ingham plans to focus on growing the company.

2 5 U N D E R 2 5 ® U P DAT E S

Adams Dairy Bank Set to Grow Adams Dairy Bank (Class of 2018), based in

Blue Springs, will become part of a larger banking network. Adams Dairy Bank agreed in December to join the Wichita-based Equity Bancshares Inc. network. The deal is expected to close in spring of 2018. The acquisition makes it part of a bank with about $3 billion in assets and will give Adams Dairy Bank a higher lending limit.

Mission Road Diet Earns Engineering Award Affinis Corp (Class

of 2012), a civil engineering firm, earned an Engineering Excellence Award in the 2018 American Council of Engineering Companies of Kansas competition for its work on the Mission road diet project in Prairie Village. The competition recognizes engineering firms for projects demonstrating innovation, achievement and value. The award-winning project, which took place along Mission Road from 71st Street to 75th Street, reduced the street from four driving lanes to one each way, plus a center turn lane. This allowed additional room for sidewalks, improving the walkability of the area.

Two KC Companies Named to Entrepreneur 360 List Two small businesses with Kansas City offices were among the “best entrepreneurial companies in America.” Alight Analytics (Class of 2014) and ej4 (Class of 2015) were named to the Entrepreneur 360 by Entrepreneur magazine. Honorees were identified based on the results from a comprehensive study of independently owned companies, using a proprietary algorithm and other advanced analytics. The algorithm was built on a balanced scorecard designed to measure four metrics reflecting major pillars of entrepreneurship—innovation, growth, leadership and impact.

Ej4, which also has a St. Louis office, was No. 193 on the list. The company produces e-learning videos on various business topics. Alight Analytics was No. 204. Alight is a full-service provider of marketing analytics to advertising agencies and brands.

Culinary Center Has New Lead Chef The Culinary Center of Kansas City (Class of 2006) has a new lead chef. Molly Flynn took over the role in January. She began teaching classes at CCKC, located in Downtown Overland Park, in 2017. Flynn attended Seattle Central Culinary Academy. She will manage kitchen operations, teach cooking classes and design new teambuilding and cooking party concepts.

Bark to Basics Sells In January, President Terry Garberg announced her company Bark to Basics (Class of 2011) had been acquired by Animal Supply of Irving, Texas. Garberg’s Olathe company is a wholesale distributor of natural pet foods and treats. She said Animal Supply planned to retain her company’s 30 employees. Financial details were not disclosed.

EAG Adds 6 Clients EAG Advertising & Marketing (Class of

2007) announced the addition of six new businesses to its client roster. The agency’s latest clients include: » Cross Manufacturing of Overland Park produces hydraulic components for customers around the world. continued

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SMART COMPANIES THINKING BIGGER®

2 5 U N D E R 2 5 ® U P DAT E S

» Overland Park’s First Capital Group

delivers wealth, investment and tax services to its clients. » Genzada Pharmaceuticals is a Sterling, Kansas-based company that specializes in drug discovery and development. » Hyatt Life Sciences, also of Sterling, is a developer of plant-based nutraceuticals. » Kansas City’s Kenton Brothers Security is the region’s leader in security systems for commercial clients. » Pain University of Overland Park has created an online curriculum that helps individuals dealing with chronic pain.

Solar Company Earns Elite Status Good Energy Solutions Inc. (Class of 2018)

has earned a major kudo from one of its biggest business partners. SunPower Corp. has named the Lawrencebased solar installation business—which

THINKING BIGGER BUSINESS // February 2018

sells, installs and maintains SunPower products—a SunPower Elite Dealer. Good Energy qualified for Elite Dealer recognition because it has recorded a customer satisfaction score higher than 90 percent and because it passed two advanced certification courses.

Custom Engineering Promotes Marketing Coordinator Custom Engineering

(Class of 2002) has a new marketing coordinator. Erin Decker was promoted to the role in January. Decker has been with the v company since 2013 and was previously a project assistant. She will maintain the company’s website and social media accounts, and work on client engagement initiatives.

MSP to Manage New Softball Team A new women’s professional softball team is coming to the Midwest, and it will be overseen by Shawnee company Midwest Sports Productions (Class of 2018). Aussie Spirit will join National Pro Fastpitch league for the 2018 season. Aussie Spirit is operated by Softball Australia, the nation’s softball governing body. The team will compete in Nebraska, Iowa, Kansas and Missouri. MSP and owner Jeremy McDowell will manage the team’s day-to-day operations, scheduling and special events involving Spirit team members. MSP manages youth fastpitch softball and baseball tournaments across the Midwest. Aussie Spirit games will be coordinated to coincide with large regional youth tournaments.

Bier Here: Topeka Kansas City Bier Co. (Class of

2017) is expanding to a new market. Starting in February, it will be available in Topeka. The brewery only distributes within 100 miles of its Waldo location. Topeka joins Lawrence and Pittsburg as the only cities in Kansas where you can find KC Bier.

ER Marketing Named As Agency of the Year Kansas City’s ER Marketing (Class of 2017) has even more proof that its work for construction-related businesses is among the very best in the nation. For the second year in a row, the Construction Marketing Association has presented its Agency of the Year Award to ER Marketing as part of the association’s annual STAR Awards. ER clients such as Midwest Wholesale Hardware, Overhead Door Company, SPX Cooling and Huttig Building Products won 10 STAR Awards. The STAR Awards highlight excellence in advertising, website design, publicity, trade shows and other marketing functions.

Leopold Gallery Named Among Visitors’ Favorites The Leopold Gallery (Class of 2016) in

Kansas City, Mo., in January was honored as Favorite Art Gallery in the Visit KC Visitors’ Choice Awards. The 2017 voting campaign garnered thousands of votes, with visitors weighing in on their top picks for the best experiences of the region, including drinking & dining, arts & entertainment, sports, shopping and more.

Interior Design Firm Finds Freedom in New Space Freedom Interiors (Class of 2018) has out-

Incubator in Kansas City, Mo. Now, the corporate interior design firm is embarking on the next big stage of its evolution with the purchase of a 7,000-square-foot historic post office building in Westport. Staff moved to the new space in December. The company has transformed the building into its own working showroom, including collaboration, focus, social, learning and rejuvenation spaces, as well as an Education Center showcasing the latest in K-12 and higher-ed furnishings.

Cosmetics Company Acquires New Brand A Kansas City cosmetics company has added another brand to its portfolio. The Lano Co. (Class of 2013), which already has two brands—Pure Lano and Pure Cosmetics—purchased Mirabella, which offers mineral-based cosmetics. Miranda Coggins, president and owner of The Lano Co., said the acquisition “felt like a natural extension of The Lano Co.” Coggins and her husband, Layne, say they hope the addition will help all three brands with economies of scale in production of the cosmetics. They plan to roll out new shades of Mirabella products with an emphasis on keeping the cosmetics talc-free, dye-free and gluten-free.

Bioscience Company Enters Global Licensing Agreement Orbis Biosciences Inc. (Class of 2012) has

signed an exclusive licensing agreement with the company behind Mucinex, Calgon, Woolite and other well-known brands. Lenexa-based Orbis specializes in pharmaceutical manufacturing. Under its new, global license agreement, Orbis will work with Reckitt Benckiser to develop new technologies for consumer, over-thecounter health care. The deal’s financial terms weren’t disclosed. Orbis Biosciences has developed “Precision Particle Fabrication” technology that allows medicine, whether it’s injected or taken orally, to be released into the body over time instead of all at once.

grown its space at the Blue Hills Contractor SMART COMPANIES THINKING BIGGER®

BIG INFLUENCE | APPLE PIE PAINTING

Mission to Spread Creativity Drives Philanthropic Philosophy For Joey and April Kramer, owners of Apple Pie Painting, their passion for business is intertwined with their desire to give back. “We believe that without creativity, we would live in a world where there would be no dreamers or innovators, no writers or musicians. Our ability to help play a tiny role in fostering this inspiration is our passion and our mission,” Joey Kramer said. Their company fosters creativity through the painting parties it facilitates. One way the Kramers are able to help others is through fundraising parties, which they’ve structured so that 30 percent of the proceeds can go to the designated charity. The Kramers also have a special affinity for Children’s Mercy and donate a painting party each quarter for teen inpatients, whom they say are “overlooked.” “We truly love these events, as the children are always so grateful for the opportunity to escape the realities of what it is they are going through, even if only for an hour,” Joey Kramer said. Their connection to Children’s Mercy is personal. “With our youngest child having spent many nights, and sometimes weeks, in and out of Children’s Mercy for medical issues

THINKING BIGGER BUSINESS // February 2018

early on in his life, we have a special place in our hearts for the hospital, the doctors and the staff,” Joey Kramer said. “Giving this experience to these patients allows us to bring a little joy and inspiration to them as they struggle through the most challenging obstacle of their lives.” Apple Pie Painting also partners with the Dreaming Zebra Foundation of Portland, Ore., which donates new and used art supplies to impoverished children all over the world, including in the U.S. The Kramers aim to donate 1 million paint brushes to the program; so far, they’ve sent about 2,000. To help meet the goal, the Kramers began offering #1MillionBrushes In-Home Painting Party Kits in November. For each kit purchased or video downloaded, the company donates five new paintbrushes. “So far, thanks to our donations, we’ve been told that children as far away as Africa, Indonesia and Haiti, and even closer to home at an autism school in Kansas, have used our donated brushes to help inspire them to create art, build confidence, and enjoy a simple thing that most of us would usually take for granted,” Joey Kramer said.

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

J U S T P L AY S P O R T S S O L U T I O N S

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

Throw Out the Old Playbook

(Photo courtesy of Austin Walsh Studios)

A UNIQUE LEARNING PLATFORM HELPS COACHES AND PLAYERS BETTER CONNECT. ENTREPRENEURS

Austin Barone and Andy Wachter C O M PA N Y I N F O R M AT I O N

Just Play Sports Solutions 2233 Rodeo Drive Lawrence, KS 66047 785-764-9620 www.justplaysolutions.com TYPE OF BUSINESS

Developer of digital coaching tools YEAR FOUNDED

2016 E M P L OY E E S

hen he played football at the University of Kansas, Austin Barone saw firsthand how most coaches prepare their teams for games. They either filled whiteboards with hand-drawn diagrams, or they passed out thick three-ring binders brimming with plays to study. But Barone noticed something: When they had the choice, most players were glued to their smartphones. So, he thought, why not build a platform that helps coaches communicate more effectively with younger, internet-native players—in a way that makes sense for them? Barone recruited Andy Wachter, a longtime friend, Division I athlete and former senior web developer for Sony Pictures Entertainment. Together, they developed Just Play Sports Solutions, a digital platform that enables coaches and players to more easily connect. “College coaches grow older, but they communicate strategy to 18- to 23-year-old athletes,” Barone said. Each year’s rotation of young athletes readily adapts to the “new wave of technology that has penetrated the classroom and our lives,” Barone said. “Just Play helps coaches and players to bridge the gap.” Just Play allows coaches to quickly prepare digital playbooks, game plans and scouting reports. Statistical databases, analytics, videos and photos all can be integrated seamlessly with Just Play.

“There are 2,000 statistics available that can be integrated with one click and automated in the platform,” Barone said. “You can get stats on an opponent or player from a game and run a report.” Just Play’s apps for players are built for personalized learning. Coaches can monitor players’ activity to keep them accountable and stay informed on their preparation. Just Play’s teaching component includes a diagram tool. Coaches can easily animate the play and add video side-by-side for illustration. They can create quizzes to test players’ progress, too. “The insights tool provides data so coaches know what players are looking at, what players know and how to better prepare them,” Barone said. Just Play Sports Solutions is currently used by 350 college and professional football, basketball and lacrosse programs. The platform also can be used at the high school level. And this year, Just Play Sports Solutions plans to launch its platform for soccer and hockey programs. Just Play distinguishes itself from competitors by “focusing on preparation with the intent of player learning,” Barone explained. “Content creation is intuitive and easy. Quizzing unlocks insights for coaches.” By making preparation smarter and easier, the Just Play team wants to help its clients achieve even greater results when game time arrives. “Preparation is so important,” Barone said. “Learning happens through reinforcement and feedback. There needed to be a better way to connect.” Pete Dulin is a freelance writer based in Kansas City, Mo. www.petedulin.com SMART COMPANIES THINKING BIGGER®

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 | RIVER WATCH BEEF

MADE TO LAST | TRAPP AND COMPANY

Trapp and Company’s Leadership Creates a Legacy Bob Trapp’s passion for his work, backed by a strong team, has enabled the company to thrive.

Raising Cattle With Higher Standards River Watch Beef ships all-natural meat to customers across the country. COMPANY NAME // River Watch Beef LLC ENTREPRENEUR // Chris Kovac, founder WHAT THEY DO // Family-owned River Watch Beef delivers

premium Angus beef direct from the producer to consumers in Kansas City and across the nation. Kovac partnered with a USDA-inspected processor to dry-age, butcher and package the beef, which is raised in pastures in Colorado and Kansas to River Watch’s strict specifications. “Our free-range animals are fed native grasses and are raised 100 percent natural like nature intended,” Kovac said. “To ensure the highest quality standards, we manage the entire process from pasture to fork. Our beef is dry-aged 21 days for a deep color, tender texture and robust ‘beefy’ flavor.”

Trapp and Company, the floral and interior design firm, turns 50 next year. Ask Bob Trapp, the company’s founder and president, how they did it, and he’ll point to his team members, some of whom have worked for him for decades. Vice president and event director Ken Sherman has been with Trapp and Company for 40 years. Other mainstays include retail sales manager Steven Chester and head of interior design Daniel Houk. “These three men will inherit the business,” Trapp said. “Without them, there wouldn’t be anything to inherit.” This core team, along with comptroller Jeff Dobbie and more than two dozen other employees, have become family, Trapp said. “It’s important to surround yourself with people that appreciate you, understand your goals and support you.”

and neighbors, Kovac learned that all beef is not the same.

At a company driven by creativity, Trapp learned to heed this advice: “Keep good business people around you. Make sure you take care of the business part.”

“There is confusion in the marketplace,” Kovac said. “Our goal is to help educate folks on the benefits of eating natural, grass-fed beef. It’s healthier because it has less fat, more antioxidant vitamins and lower cholesterol compared to most retail beef. We believe if you eat well, you’ll be well.”

The staff’s dedication to design, personal care and service has enabled the company to endure industry changes and succeed. Retaining knowledgeable long-term employees strengthens Trapp and Company’s customer service. They deliver attentive service specific to the needs and tastes of customers.

WHAT’S NEXT // In 2018, customers will be able to order bone-in,

After nearly five decades, Trapp still enjoys his work. “To last, the business has to be a passion. I love coming to work and enjoy the people that work with me.”

THE INSPIRATION // After working the family’s cattle with friends

rib-eye steaks and customized boxes of beef from River Watch. Beef jerky products are planned for a mid-year launch. HOW TO CONTACT // 1 (800) 373-5210 or

www.riverwatchbeef.com 18

THINKING BIGGER BUSINESS // February 2018

KC MADE IT K C

ALPHAPOINTE

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

Production With a Purpose ALPHAPOINTE MANUFACTURES PENS, TOURNIQUETS, MILITARY UNIFORMS—AND JOBS FOR THE VISUALLY IMPAIRED unique Kansas City organization offers goods and services running the gamut from manufacturing prescription bottles to sewing military uniforms to providing a call center—all with a focus on employing the visually impaired. Alphapointe is the third-largest single employer of the visually impaired in the U.S.. Head-quartered at 7501 Prospect Ave., Kansas City, Mo., it is a nonprofit agency with the mission of empowering those with vision loss to achieve their goals and aspiration— which includes employment. It also provides rehabilitation, education and advocacy for those with vision loss. Despite its nonprofit status, Alphapointe’s various operations brought in $50 million in revenue in 2017. Founded in 1911, today Alphapointe employs more than 400 people in nine locations in different states.

PRODUCING OPPORTUNITIES

Alphapointe CEO Reinhard Mabry said Alphapointe’s business operations support its core purpose. Nearly one-half of one percent of the U.S. population is legally blind, and 70 percent of that population is unemployed. “Everything that we do is focused on our mission of creating jobs and building the skills for those to live independently,”

Mabry said. “We have a variety of different enterprises under one company, and they are intended to provide a wealth of job options.” Alphapointe manufactures various products and provides a number of services. The U.S. government is its biggest client. Since 1968, Alphapointe has fabricated writing instruments for the government— up to 12 million pieces annually. When the Department of Veterans Affairs started a mail-order pharmacy, Alphapointe got the contract to manufacture prescription bottles, producing about 50 million annually. It also provides 13 million bottles for ExpressScripts. In its New York City location, Alphapointe produces janitorial supplies including brooms, mops and brushes. A sewing division produces military uniforms. The organization also develops new products for the U.S. military. “We co-designed and developed the next generation of tourniquet for the Army,” Mabry said. “For our employees working on this, it is a way for them to serve and give back to their country.” Call center services are another spoke in Alphapointe’s wheel. “It is headquartered in Kansas City, but we have remote employees who work from New York City to Sacramento, Calif., or from their homes elsewhere. They can log into our system and service our customers,” Mabry said. Alphapointe runs two military supply retail operations—one in mid-Missouri at Fort Leonard Wood and the other at Little Rock Air Force Base.

‘WE WANT TO CREATE MORE JOBS’

In the last few years, Mabry said, Alphapointe added more white-collar jobs and jobs in the teleservice space. “It has given people who are blind more avenues of work beyond industry and manufacturing,” Mabry said. “Some of those jobs require technical skills, background checks, and some require degrees and certifications. … What that means is Alphapointe has a breadth of job opportunities. We are not catering to one unique population but serving people from all walks of life and with all kinds of aspirations.” Mabry is confident Alphapointe will continue to grow, serving more people with visual impairment while producing goods and services that are in demand. “I want to extend our reach and serve a lot more folks and serve a national audience,” Mabry said. “We want to create more jobs and have those jobs be aspirational careers. The development of the tourniquet has opened new opportunities for us.” Kansas City provides a great place for Alphapointe to grow, Mabry said. “Kansas City has a very giving heart and compassionate attitude about people in need, and we are sincerely grateful for the community’s support of our mission,” he said.

Ruth Baum Bigus is a freelance writer in the Kansas City area. SMART COMPANIES THINKING BIGGER®

KC FUTURES

( by Kate Leibsle )

The Future of Rental Cars Debuts in Kansas City AVIS BUDGET GROUP TAPS KC FOR A FIRST-OF-ITS-KIND PROJECT.

magine a world where you could drive a rental car away from the airport without ever standing in a line or talking to a rental agent—no need to even pick up a key. With Avis Budget Group’s Mobility Lab, a program that recently launched here in Kansas City, that’s possible now. Avis Car Rental customers throughout the metropolitan area can now completely control their rental experience from their phones, from making reservations to extending rentals to unlocking the car. For Bob Bennett, chief innovation officer for Kansas City, Missouri, it’s another sign of KC’s progress toward becoming the nation’s premier Smart City.

20 THINKING BIGGER BUSINESS // February 2018

“This is a mobility solution,” he And last, but certainly not least, said. “Not a rental car solution.” the company was impressed Arthur Orduña, Avis with Kansas City’s already Budget Group’s executive established leadership vice president and chief position in connectivity innovation officer, said and technology. there are a number of Avis Budget Group’s reasons the Midwest is the commitment to technology perfect place to launch the is long-standing, said Katie Mobility Lab. For starters, the McCall, the company’s vice Art hur Orduña existing Avis Budget team in president of global public relations. Kansas City is superlative. It was the first rental car company Then there’s the size of the company’s with a mobile application, and it is working presence here. With the airport, the 20 to transform a significant portion of its U.S. Avis locations in the Kansas City metro fleet to being fully connected early this year. area, and the Nebraska markets of Lincoln Avis Budget has announced plans to have a and Omaha, which also are included in the fully connected global fleet in 2020. program, the regional fleet includes 5,000 When the new Mobility Lab project was vehicles. The Kansas City-Omaha-Lincoln announced, Larry De Shon, CEO of Avis triangle offers a wide array of information Budget Group, was complimentary of Kansas collection possibilities. City’s technology efforts.

Want to

GIVE BACK Looking for something to do? Bring your talents to SCORE and volunteer. You will share your skills and expertise helping small businesses achieve success. Come work with other enthusiastic professionals. Join us at KansasCity.Score.org

Photo courtesy of Avis Budget Rental

“Our Mobility Lab in the greater Kansas City area extends our next-generation mobility initiatives,” he said in a statement. “The steps we’re taking with connected car and smart technologies will increase customer satisfaction as well as reduce operational costs in the near term, while also preparing us to meet the evolving needs of consumers, entrepreneurs, corporations and governments like the City of Kansas City, a recognized global leader for its Smart City advancements.” Bennett is excited about the type of data that will be collected from the Mobility Lab’s connected vehicles—covering everything from street conditions and travel patterns to where Kansas City’s visitors come from. Further, Bennett said he hopes a new Kansas City International Airport terminal can be built to leverage such programs and enhance connectivity across the board. The first set of data from the Mobility Lab will be available later this spring, Bennett said. He plans to share it with colleagues at the Smart Cities Connect Conference & Expo, which is set for March in Kansas City. “This is the first project like this in the world,” Bennett said. “We are at the leading edge.”

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

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Jeremy Ellis // (914) 702-5390 // www.reprintpros.com SMART COMPANIES THINKING BIGGER®

ENTREPRENEURIAL JOURNEY K C

( by Katie Bean )

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

Bo Knows Entrepreneurship Lula’s founder has gone from small business ownership to raising funds for the new high-growth tech startup.

o Lais can relate to almost any entrepreneur, from the small business owner to the CEO leading a high-growth tech firm. That’s because he’s experienced business at both ends of the spectrum. He started a successful web design firm in college. One fateful day, a client visited his office and eventually hired Lais for his startup. And when key team members joined and leadership roles stabilized, Lais had the urge to strike out on his own. Lais’ journey has taught him lessons that translate to any business, and some that he could only learn through specific situations. Building a Business Lais began his career in 1999 as a self-taught web designer. He attended the University of Arkansas and had a friend there from Dallas. Through his friend’s connections, they began hosting and designing websites for Dallas nightclubs. As they built up the business, they expanded to serve other clients. When Lais moved to Olathe, he brought the company with him. The firm, Brazen Web Design, grew to employ eight people. The company was in a great place in 2008 when Michael Rea paid a visit. He explained to Lais that he was in need of help to create a platform for his business, Rx Savings Solutions. The Startup Trajectory Brazen built the first platform for Rx Savings Solutions. At the time, the company was marketing itself to consumers as a way to help them save money on prescriptions. 22

THINKING BIGGER BUSINESS // February 2018

For nearly three years, Lais and Brazen managed the tech needs for Rea’s company— until a couple of big breaks necessitated a full-time CTO. First, Mutual of Omaha approached Rea. The experience opened his eyes to a different type of client—health insurance and selfinsured companies. It also showed Rea that his platform would need to grow much bigger, much faster if it were to take on clients with thousands of users. Following that lead, Rx Savings Solutions landed a contract with the State of Kansas. Rea needed more help. Lais was asked to join the team, but he was torn on whether to give up his profitable— and safe—small business. “I thought perhaps I could maybe do both. You can’t,” Lais said. “I learned very quickly that you can’t—you have to have to have focus. … I sit here today and say I’m glad I did, but it was a very scary process.” The State of Kansas contract and bringing on its first employees catapulted Rx Savings Solutions. It grew, taking on investments, clients and more employees. In 2015, “it seemed like things were just moving up and up” at the company, Lais said. He’d been CTO there for four years. “It started to get to a point where it almost didn’t seem like a startup anymore,” he said. Again, the company was in a great place when the opportunity to try something new and scary came into Lais’ life. “It was a tough decision getting into Rx Savings, and then it was maybe even tougher leaving. It was hard leaving a job when you’re

getting paid well, you’re a shareholder and you have great health benefits—especially when you have a wife and two kids at home,” he said. “Maybe I’m just a glutton for punishment, I don’t know,” Lais joked. A New Venture A frustrating experience as a new homeowner sparked Lais’ new idea. Just before a planned housewarming gathering, he discovered the air conditioner was blowing hot air. He started searching and calling for HVAC repair. Companies didn’t answer or didn’t call back. If they did, they couldn’t come out that day or offered convoluted pricing. Lais decided there must be a better way to find household service technicians—and that led him to found his own tech startup. “The real decision was a financial decision at this point—that’s scary,” he said. “It’s really tough getting a startup off the ground—it’s emotional, it’s expensive.” His new venture is Lula, an app that instantly connects homeowners with

qualified professionals who are available to come within four hours or less and complete the work requested. The Lula app uses the homeowners’ unique property data along with proprietary algorithms to deliver upfront pricing for all the services offered through the platform. Though the company’s official launch was last fall, Lais had been working behind the scenes for two years doing market research, architecting the app, creating partnerships and securing funding. In November, Lula closed on a seed round of $420,000. Learning by Doing Each stage of his career has had its own challenges and lessons to be learned. As a small business owner, Lais said, he had no one to answer to when it was time to make big decisions. At Lula, there are other partners involved. “I want everyone’s feedback,” he said. “Ultimately I have final say, but I’m not

I don’t know what’s going to happen with Lula yet, but I’m going to give it everything I can.

someone who thinks I have the right answer all the time.” The success of any venture depends on the quality of the team, Lais said. “It has to do with team you put around you,” he said. “Early on, you need go-getters. You need some hustlers and bustlers that can do a lot of things well.” But running a high-growth tech startup “is a completely different world” from running a small business, Lais said. “With a small business, you have to be profitable, for starters. Things don’t move quite as fast, for sure,” he said. “With a lot of small businesses, a lot of it comes down to being great at customer service and good at

what you do because there are a lot of options out there.” Startups, on the other hand, often are trying to solve an acute need for a large market, he said—and they have to move fast before competitors overtake them. “With most startups, you have to get quite a bit of funding because you have to scale quickly.” And although he witnessed Rx Savings Solution grow from its very early days, Lais said being the front man at Lula has been a whole new learning experience for him. He’s had to perfect his pitch and learn how investors value companies. In the end, Lais knows it’s hard work that will set up Lula for success. “I don’t know what’s going to happen with Lula yet, but I’m going to give it everything I can,” he said. Katie Bean is the Executive Vice President at Thinking Bigger Business Media. (913) 432-6690 // kbean@ithinkbigger.com

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SMART COMPANIES THINKING BIGGER®

Karthik Ramachandran and Lisa Stehno-Bittel had no business experience when they founded Likarda in 2012. Still, the biotech company became profitable early on and received a $4 million investment last year.

24 THINKING BIGGER BUSINESS // February 2018

KC ENTREPRENEURS

Doing Their Research When two academics found themselves with a marketable product, they sought help to cover their blind spots and start a business. ENTREPRENEURS

Lisa Stehno-Bittel, Karthik Ramachandran C O M PA N Y I N F O R M AT I O N

Likarda LLC Hickman Mills Drive Kansas City, Mo. (816) 605-6440 Likarda.com TYPE OF BUSINESS

Biotech research laboratory YEAR FOUNDED

2012 E M P L OY E E S

7 KEYS TO SUCCESS

“Support networks exist. You don’t necessarily need to have it all in-house, but you need to be willing to take advice.”

left // Karthik Ramachandran,

Ph.D., vice president of strategic growth and co-founder with Lisa Stehno-Bittel, Ph.D., president and founder. inset // An insulin-producing islet transplanted into the fat of a diabetic animal. (Photo courtesy of Likarda.)

isa Stehno-Bittel apparently has a pretty good poker face. During the first year of running Likarda, the biotech startup she co-founded, a new employee eyed the company’s president and offered a blunt assessment of the academic turned entrepreneur. “I know what’s different about you,” the employee told her. “You’re fearless.” Stehno-Bittel was amused. “I was full of fear,” she said. “I wasn’t sleeping. I was asking myself, ‘What am I doing? I have no business background.’” Roughly six years later, Likarda is lucrative, growing and bringing innovative new products to market. It is set to begin clinical trials that could drastically change the way diabetes is treated in dogs and is flush with cash from a seven-figure investment. Yet the fears still linger. “I am fearful, constantly worrying about what might trip us up,” Stehno-Bittel said. “But I’m not risk-averse. It’s exhilarating and mortifying at the same time.” FEAR OF FAILURE

Stehno-Bittel was full-time faculty at the University of Kansas Medical Center for 20 years, but when the opportunity presented itself to move to the business world in 2012, her biggest concern

wasn’t about her own career. She was more worried about her protégé. Karthik Ramachandran, Likarda’s vice president and co-founder, had come to Stehno-Bittel as a doctoral student five years earlier. Stehno-Bittel had never had an engineer work in her lab, but Ramachandran said that in his search for a mentor, he liked Stehno-Bittel and her lab, and he was intrigued by her research because of his own family history of diabetes. “He has a PhD in bioengineering, which is a very marketable talent and skill,” Stehno-Bittel said. “I wasn’t looking to build a career, but his was just taking off. If we failed, what would that do to him? I had to convince myself it wouldn’t negatively impact his career.” In the process of doing their due diligence, the partners realized that failing in a startup is different than failing in many other professional pursuits. “It’s badge of honor for some people,” StehnoBittel said. “The perception is, ‘At least you tried. You can learn and succeed next time.’” But Stehno-Bittel and Ramachandran might not need a second chance. Ramachandran, like his partner, had no business experience, but he had no qualms about going into business with StehnoBittel, who had served as chair of KU’s Department of Physical Therapy and Rehabilitation Science for two decades.

by David Mitchell // photography by Dan Videtich SMART COMPANIES THINKING BIGGER®

“If you are enthusiastic, passionate and talented, your life will be a stream of opportunities, and you have to pick which ones and when.” Lisa Stehno-Bittel// president and founder

“Leading people is a lot of what goes into a business,” he said. “She had experience leading people and built a successful program— one of the top 10 programs in the country.” Ramachandran said the researchers understood their blind spots and hired legal and financial firms to help. They also had help building a business plan from the Bioscience & Technology Business Center at KU Med after an administrator surmised that the work Stehno-Bittel and Ramachandran were doing “looked more like a business than academic research.” “Where we needed consultants, we brought them on board,” Ramachandran said. “Support networks exist. You don’t necessarily need to have it all in-house, but you need to be willing to take advice.” GAME-CHANGING INNOVATION

It was Ramachandran’s graduate research that led him and Stehno-Bittel into business in the first place. Cell cultures typically are grown in a single layer in a plastic petri dish. The problem, Stehno-Bittel said, is that cells developed in this fashion attach themselves to the plastic. This can change the proteins cells produce and affect their size, shape and other attributes. In short, such cells don’t necessarily behave like normal cells. Thus, cells that look promising in a lab don’t always react the same way inside the body.

Ramachandran designed and created a different kind of device—one that develops 3-D cell clusters—that could be a game-changer for researchers. “Our cells don’t attach to the bottom of the dish,” StehnoBittel said. “They attach to each other, which is how cells behave in the body.” At one time, Likarda was relying on “homemade” versions of Ramachandran’s plates produced at KU Med. Now, a multinational manufacturer is producing plates not only for Likarda’s in-house research but also for Likarda to sell to customers. “To see it go from concept and initial design to fully manufactured product with a label is really exciting,” Ramachandran said. The market for the product could be “very large,” StehnoBittel added. HOPE FOR DIABETIC DOGS

The new product means a new revenue stream for a company that became profitable in its second year by offering contract research services to others. That service helped fund Stehno-Bittel’s own research, which is focused on treating diabetes in dogs. Likarda still offers contract research but will be less reliant on it after receiving $4 million in funding from Werth Family Investment Associates in August.

26 THINKING BIGGER BUSINESS // February 2018

Stehno-Bittel said the investment will help scale and accelerate research. That could be good news for pet owners. Diabetes affects 1 in 100 dogs, and the standard treatment is twicedaily insulin injections. “We already know families using insulin spend quite a lot of money,” Stehno-Bittel said. “Even if they do everything right, their pets often don’t thrive. It’s not a good long-term solution.” Stehno-Bittel said half of pet owners chose euthanasia soon after diagnosis. Of those that try insulin treatment, half choose euthanasia within a year because they see their pets struggle with kidney failure, blindness and other problems.

Stehno-Bittel said Likarda’s solution will be more expensive than insulin treatment initially, but eventually it will be less costly in addition to being more effective. The process involves transplanting microencapsulated islets (insulinproducing cells), which ends the need for insulin injections. Ramachandran said clinical trials could begin by the second quarter. The initial phase of the trials will involve transplanting tissue from donor animals. A second phase will utilize stem cells rather than donor tissue. Veterinarians at nearly a dozen universities are expected to participate. Transplanted cells must be protected from a dog’s own immune system. Likarda holds a patent related to that process, and the

above // Francis Karanu, Ph.D., director of animal health, and Janette Williams, lab

manager, discuss the results of release testing for the cell therapy. inset circle // An islet (insulin-producing cell) stained green to show the insulin produced. (Photo courtesy of Likarda) inset // Stephen Harrington, Ph.D., senior scientist, views cell cultures grown on Likards’a patented CC Microplates.

initial phase will help answer critical questions related to dosing and duration, Stehno-Bittel said. NEW LAB

Likarda doubled its space in August when it moved from the Bioscience & Technology Business Center to a space near the former Marion Labs campus in south

Kansas City, Mo. The new facility has a separate manufacturing space with proper air handling capability and infrastructure needed for cell therapy manufacturing. The expansion also will allow the company, which has seven employees, room to grow. Despite the expanded space, Stehno-Bittel and Ramachandran

chose to share an office, just as they had for the past six years. When Likarda started in 2012, they had two desks in the corner of a 700-square-foot lab. StehnoBittel was only there part time when she wasn’t teaching. When she started devoting more time to the company, they continued to share space. “We have to talk to each other and bounce ideas off each other,” said Ramachandran, who still considers his partner a mentor. “It makes it easy to look over and say, ‘Hey, Lisa, I have a question.’” ‘I WAS PERFECTLY HAPPY’

Ramachandran isn’t the only one who looks to Stehno-Bittel for advice. During its first year, Likarda was named as one of the world’s 50 most promising

startups during Global Entrepreneurship Week. Several other awards have followed for the founders. Stehno-Bittel said women frequently seek her out for mentoring. What advice does she offer? “If you are enthusiastic, passionate and talented, your life will be a stream of opportunities,” she said, “and you have to pick which ones and when.” The timing of her own business venture was critical. Stehno-Bittel is married with two kids, but she said both kids are “launched,” and her husband, Kansas City University of Medicine and Biosciences faculty Doug Bittel, has a good job that could support them if Likarda struggled. “I don’t make as much money as I did when I was working full time at the university, and I may never catch up,” she said. “I was perfectly happy in my career. I never dreamed I’d own a business, but opportunities occurred.” It’s also important, she said, to know when to say no. “I saw many female physicians burn out at KU Med because they couldn’t say no,” she said. “Not every committee assignment is an honor. Some are a time sink.” Ramachandran has few regrets. If he hadn’t gone into business with Stehno-Bittel, he said he likely would be working for a pharmaceutical company or a medical device company and “probably getting more sleep.” “I’ve got a great business partner in Lisa,” he said. “Now someone is investing and putting their faith in me. I feel responsible. This is an appropriate fit for me and aligns with what I had in mind going into grad school. The fun aspects outweigh any risks.”

David Mitchell is a freelancer based in Kansas City. SMART COMPANIES THINKING BIGGER®

THE GOOD, THE BAD,

THE UGLY 28 THINKING BIGGER BUSINESS // February 2018

NEW TAX POLICY HAS FAVORABLE ELEMENTS FOR SMALL BUSINESSES BUT ADDS COMPLEXITY TO COMPLIANCE. ( by Katie Bean )

BRET CURTIS HAS A MIXED SUMMARY FOR THE TAX CUTS AND JOBS ACT OF 2017: THE GOOD, THE BAD AND THE UGLY. Curtis, a tax shareholder at Mize Houser, said overall, the act is “generally favorable” to small business owners, who will benefit from a number of provisions in the bill passed by Congress and signed by President Donald Trump in December. But there are some parts of the legislation he’s not crazy about. “There’s good stuff in this bill, there’s bad stuff in the bill, and then there’s some new complexity that’s just plain ugly, just because of the

ways they were trying to write rules and get them through the legislative process,” Curtis said. Karen Kerrigan, CEO of the Small Business & Entrepreneurship Council, agreed with Curtis’ assessment. “Overall, the big picture from our perspective is that the new law, in general, is going to be really solid for the economy in terms of generating growth, in generating new investment and new opportunities for small businesses and entrepreneurs to grow their firms. More capital flow in the economy is going to be very helpful for capital

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INDIVIDUAL INCOME formation and a more dynamic important part of this bill. It was intended TAX BRACKETS to sort of bring the rate reduction for floweconomy in general,” The tax bill changed the through business much closer to the decrease Kerrigan said. “There’s just income tax brackets for in the rates that we saw for C-corps.” going to be a lot more individuals. It widened Kerrigan said the new deduction will capital and resources the income levels over boost businesses. going back to businesses which individual rates “That 20 percent deduction that they’ll be in general.” are applicable, Curtis able to use for qualified business income is However, she’s said. This is important going to provide all small businesses at least concerned that many for any small business some amount of relief and more capital that of the provisions in the Ka n r a organized as a pass-through e they can put into their businesses,” she said. g n Ke rr i new bill expire after 2025. entity—this applies to There’s a big caveat to this rule, though. Kerrigan said the sunset aspect S-corporations, LLCs, partnerships It doesn’t apply to “specialized service makes the changes less powerful and sole proprietorships. businesses,” which include those in health because businesses can’t plan as far into The very top tax bracket now applies care, law, accounting, consulting, financial the future. services, brokerage services and some other Here’s a look at the good, bad and ugly effects to those earning more than $600,000 (for married taxpayers filing jointly). excluded industries. In these service the new tax law will have on small businesses. The tax rate at this level is businesses, owners may CORPORATE TAX RATE 37 percent. Previously, the top only treat their income as tax bracket was triggered at The bill lowers the corporate tax rate qualified business income income of $470,700 (for from 35 percent to 21 percent, with no if their taxable income married taxpayers filing sunset provision. is less than $315,000 jointly), and the rate was Kerrigan is a big fan of this provision for (for married taxpayers 39.6 percent. C-corporations. filing jointly). This is a favorable “There’s a heck of a lot of small businesses Curtis explained the change for most small that are also C-corps,” she said. The new tax reasoning for the exceptions. businesses, Curtis said. rate “is really going to help them be more “If you had a very serviceBret C rtis However, the reduced rates competitive and obviously give them a lot more oriented business, it is u resources to plow back into their businesses.” sunset after 2025. harder to separate what is a reasonable wage from what is a Some of the investments she listed included return on your investment,” he said. offering higher wages or better benefits, which DEDUCTION FOR QUALIFIED BUSINESS INCOME Hood said the QBI deduction creates could give small businesses a competitive edge. One of the biggest changes to tax code, some gray areas that will have to get hashed Curtis said the large cut will reinvigorate Hood said, is the new deduction for qualified out by the IRS. the debate of whether it’s better for small business income. “There doesn’t seem to be any clear, businesses to organize as a C-corp or a pass“What’s interesting about this is the deduc- definitive answers on a lot of these things through entity. tion is not what we call an above-the-line that are left open. So the IRS is going to have “I think the lower C-corp rate has created deduction, it’s not an itemized deduction, it’s to regulate a lot, and the question is how some envying the Johnsons, so to speak,” a deduction taken from taxable income itself. that’s going to please Congress,” he said. he said. So it’s a unique provision that we’ve never But, he pointed out, C-corp earnings are had in the code before,” he said. CAPITAL EXPENDITURES still subject to double taxation—the business Here’s how it works: For businesses that The bill changes how businesses can is taxed, and then shareholders are taxed on opt for a pass-through arrangement, the depreciate the cost of property other than payouts from the company. owner can take a 20 percent deduction on real estate. Intangible property won’t be subject Edwin Hood, a tax attorney at Hood the net income from the business before to immediate expensing. Law Group and Professor Emeritus at the calculating taxable income. Now, businesses can elect to immediately University of Missouri-Kansas City School of Curtis gave an example of a retailer that expense any amount of tangible equipment Law, said a C-corp arrangement might make makes $1 million in profit. Before putting under bonus depreciation rules, up to a cost sense for companies that do a lot of internathat income on a personal tax return, the of $1 million, Curtis said. tional business. He said there is a deduction owner can take a $200,000 deduction— A new wrinkle in this tax code is that it available for cross-border transactions, called subject to certain limitations—and is taxed at now allows “qualified real property additions” the Foreign-Derived Intangible Income to be immediately expensed, Curtis said. That the federal level only on $800,000. deduction, that could lower a company’s tax means interior renovations of an existing, “That sort of revs up this rate reduction,” effective rate to as low as 13.125%. nonresidential building would qualify. he said. “That’s a pretty exciting and pretty 30 THINKING BIGGER BUSINESS // February 2018

LIKE-KIND EXCHANGES

Another change that’s important for small business owners is the new like-kind exchange policy. Curtis used the example of a business trading in a used, fully depreciated truck for a new truck. In the past, the trade-in value wasn’t considered a gain for tax purposes; now, there will be a recognized gain in that same situation. “They’ve eliminated those like-kind exchanges for everything except real estate,” Curtis said. “It’s a fairly significant thing to a lot of business owners who did like-kind exchanges because they were able to defer a lot of tax.” However, Curtis said this might be a wash when combined with the immediate depreciation of capital expenditures, at least for tangible property. ESTATE TAX

Estate tax changes should be of particular interest to any family businesses hoping to pass the torch one day. The new tax bill raises the lifetime limit for passing on a gift or estate. The limit doubled to about $11.2 million per person, adjusted for inflation. This will allow more small businesses now to pass on their companies. However, the provision sunsets in 2025, so start succession planning now. “For a period of time here, we have a lot of flexibility for small biz owners—and actually, even mid- to larger biz owners could pass without concern of estate tax,” Curtis said. OTHER NOTABLE CHANGES

The experts pointed out a few other changes taxpayers should keep in mind: Net operating loss provision // Going forward,

net operating losses can be deductible for up to 80 percent of taxable income; they can be carried forward but not carried back. Hood said carrying back net operating losses was an averaging technique used to mitigate the annual reporting system. He called the new provision “bad policy.” Moving expenses // People moving for a

job can no longer write off their moving expenses, Hood said. Only members of the U.S. military retain this benefit. Stock options // Kerrigan said she is a fan

of a provision that hasn’t gotten much

Lenexa Firm Survives Close Call with Tax Reform Negotiations

ne area small business was keeping a close eye on recent negotiations leading to the Tax Cuts and Jobs Act of 2017. Some early versions of the bill drafted by Congress were “super problematic” for the wind and solar industries, said Rob Freeman, CEO of Tradewind Energy in Lenexa. The suggested changes revolved around diminishing the value of Production Tax Credits, the industry’s primary investment tool, or eliminating them immediately. Those changes would have been a big problem for Tradewind Energy, one of the largest wind and solar project development companies in the U.S. “The fact that the House would basically say, OK, well, we’re going to just shut that program down after we all agreed that there was going to be a steady ramp down over five years is just unbelievable,” he said. “These are the same people who always talk about importance to business of having a stable regulatory and policy environment so you can run your business. So it just flew in the face of all that.” In the end, the final bill resulted in no change to the previously negotiated phase out of the tax credits—those will still expire at the end of 2020. But other parts of the bill have the potential to negatively impact the wind and solar industry, Freeman said. The flagship provision of the bill, the reduction of corporate taxes from 35 percent

to 21 percent, damages the economics of wind Ro b Freeman projects, he said. An important aspect of the economics of these projects is the depreciation, Freeman said, which has less value under a lower corporate tax rate. In order to hold project returns, prices may have to increase. This is a tricky area that companies with pending transactions will have to navigate—for projects that are already bid or under construction, it may be difficult to decide what to do now that the return on investment won’t be the same as was expected. “That has been the most difficult thing for the industry to react to—what is the end effect of the pricing of wind power, and are there ways to mitigate that? So the industry’s sort of been in a scramble trying to figure that out,” Freeman said. But going forward, companies will know what to expect when planning a wind or solar project, Freeman said. And that will keep his company of 140 employees moving ahead. “We’ll keep trucking along. Both Production Tax Credits and Investment Tax Credits (for solar projects) are going to ramp down over the next few years, but the industry is planning on that. “Big picture, I think the industries will be OK.”

attention. It’s a change to how stock options are taxed, and she said it could have important ramifications for startups and high-growth businesses. Previously, if employees exercised stock options, they were required to pay taxes immediately—but they often lacked the ability to do so. That potentially presented a barrier for some qualified employees to join a startup. Now, she said, the taxes are due in five years or when the company becomes publicly tradeable. That will help startups attract and retain the employees they need to grow and scale, she said.

more complicated. That’s a big concern for Kerrigan and the SBE Council. “For the small business person, that simplicity piece really is a missed opportunity,” she said. Kerrigan said the SBE Council will continue to work with Congress on the Small Business Tax Code Simplification Act. She said the act provides opportunities to make technical changes and modernize certain aspects of the tax code that don’t “cost” anything to the Treasury but make the code less complex from a compliance standpoint.

SIMPLIFICATION

Katie Bean is the Executive Vice President at Thinking Bigger Business Media.

What all of the experts interviewed agree on is that the bill makes the tax code

(913) 432-6690 // kbean@ithinkbigger.com SMART COMPANIES THINKING BIGGER®

BIGGER | law S M A R T

( by Chris Brown )

S T R AT E G I E S

7 Things to Do After Starting an LLC Take early steps to set up your business for success. The excitement you experience when you form a new LLC can be exhilarating, but it also can be overwhelming. To help you maintain control, here are seven things you should consider doing after forming your LLC. 32 THINKING BIGGER BUSINESS // February 2018

Draft and Sign Your Operating Agreement An operating agreement sets out the rules and procedures that will govern the company and its owners. If your LLC has just one owner, your operating agreement can be short. If it has multiple owners, it likely will be longer and include issues like economic rights, voting rights, management rights, transfer restrictions and more.

for an EIN 2 Apply Employer identification numbers are issued by the IRS and can be obtained online

in just a few minutes. Even if you are not hiring employees, you likely still need an EIN—it’s a unique identifier for your business. Various parties will request your EIN, from your bank to government entities, and you likely will need it to complete your IRS Form W9. Obtain State and Local Licenses and Permits You should register with your state’s Department of Revenue and obtain all relevant business licenses and permits. At a minimum, your city likely will require you to have a business license. From there, you may need to obtain specialty licenses. For example, restaurants, liquor establishments, entertainment venues, construction companies and more all have unique licensing requirements.

Open a Bank Account and Set Up Your Accounting Software It is important that your LLC maintain its own bank account separate from your personal

accounts to avoid issues with commingled assets. In addition to your ID, you’ll need a copy of your Articles of Organization and a copy of your EIN letter in order to open an account. Some banks also will require all or portions of your operating agreement. This is also a good time to add additional signatories to your bank account if applicable. You should also purchase a subscription to a cloud-based accounting platform such as Xero or FreshBooks. They will make tracking income and expenses easier and will save you all kinds of headaches come tax season. Consider Purchasing Insurance Depending on the goods or services you provide, you may want to purchase insurance. Consider liability and property insurance and possibly auto, workers’ compensation, errors and omissions, and other specialty insurance policies, depending on your situation.

The excitement you experience when you form a new LLC can be exhilarating, but it also can be overwhelming.

Operate As An LLC You must operate as an LLC if you want to isolate your personal liability from the liability of the LLC. To do this, purchase assets in the name of the LLC (and when applicable, transfer existing assets to the LLC). Always sign contracts in the name of the LLC. Further, you should maintain a minute book that includes all of your important corporate documentation.

File Annual Reports Some states require you to file annual or biannual reports to remain an active LLC. At the time of this writing, Missouri does not, but Kansas does. These usually can be filed

online and usually are quick and painless. But if you forget to file, the consequences can be very negative. This article is general in nature and does not constitute legal advice. Readers with legal questions should consult with an attorney prior to making any legal decisions.

Chris Brown is the founder of Venture Legal, a Kansas City law firm serving the entrepreneurial community and Contract Canvas, a digital contract platform for creavite professionals. www.venturelegalkc.com // @CSBCounsel

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BIGGER | hr S M A R T

( by Jo McClure )

S T R AT E G I E S

Are You on the Wrong Side of the Law?

investigates misclassification complaints and also can fine or sue the company if it finds violations. Many states have their own wage and hour laws, some of which are more stringent than the FLSA’s. Small businesses must adhere to both the federal and applicable state regulations. Not paying employees for breaks // The federal

Two common mistakes employers make with time and wage rules.

n an effort to keep their companies lean and profitable, small business owners sometimes inadvertently break employment laws. And these mistakes can be costly. Some common ways small operations run afoul of employment laws are misclassification of employees, payment for breaks and payment for work performed outside the employee’s normal schedule. Misclassifying employees as exempt // Typically,

“exempt” employees are paid a salary and do 34 THINKING BIGGER BUSINESS // February 2018

not receive overtime pay if they work more than 40 hours per week. While it’s tempting to classify every employee as exempt, the classification may not align with the government’s definition of an exempt employee. If that is the case, the company would be required to pay overtime to some salaried workers under certain circumstances. To be classified as exempt, employees must meet both a functional requirement and be paid no less than $23,660 per year as defined by the Fair Labor Standards Act. Employees who don’t meet both the salary and functional requirements should be classified as nonexempt. Misclassified employees who have not received earned overtime pay can file suit with the U.S. Department of Labor. The DOL

government doesn’t require companies to offer meal or work breaks to employees. If a small business does decide to provide employees with short rest or snack breaks of up to 20 minutes, the breaks are considered hours worked. For nonexempt employees, short breaks must both be compensated and, for overtime calculations, be factored into the total number of hours worked during the workweek. Exempt workers are not entitled to be paid beyond their salaries for short breaks. Likewise, they cannot have their pay docked if they choose to take breaks. Under the FLSA, employers do not have to compensate any employees for meal breaks that last at least 30 minutes. Nonexempt employees who “work through lunch” must be

Wage and hour laws can be confusing. If needed, get help from a qualified adviser who can help you navigate these and other complex employment laws.

paid for the time worked. Because nonexempt employees could purposely skip meal breaks as a way to work more than 40 hours per week and thus gain overtime pay, many organizations require employees to take these breaks. Nonexempt employees who do not comply with the policy could be subject to discipline— but the employer still would have to pay the employees for the time worked over meal periods. As with employee classification, many states have additional, stricter break requirements that businesses in those states must follow. Overtime Is Tricky Where the overtime question gets even thornier is when employees’ roles require them to perform job duties beyond the traditional work hours. For example:

the employee’s working hours. An employee who is on call at home or engaging in his own activities is not considered to be working during the hours spent on call. What If Your Business Has Broken the Law? If you discover your company has unintentionally broken one of these employment laws, reclassify any misclassified employees and adjust payroll so nonexempt employees are set up to be paid overtime in the future. You also may determine the company owes nonexempt employees back pay for previously worked break periods or overtime hours. If

this is the case, make the payments quickly. It is far better to communicate the error with employees proactively than to have the violation discovered because a worker files a lawsuit or a state or federal agency decides to audit your business. Wage and hour laws can be confusing. You aren’t running a small business because you want to spend time tracking the employment laws affecting the company—but not following them can put you out of business. If needed, get help from a qualified adviser who can help you navigate these and other complex employment laws.

Jo McClure is director of payroll administration at Axcet HR Solutions. (913) 383-2999 // jmcclure@axcethr.com

Travel time // When an employee must travel

overnight for business, all time spent traveling during the hours corresponding to the employee’s normal working hours is counted as time worked. So, if an employee usually works weekdays from 9 a.m. to 6 p.m., but must leave at 3 p.m. to catch a plane on any day (weekends and holidays included), she would be entitled to three hours of pay. Time she spent traveling after 6 p.m. would not require payment. Getting to and from work does not count as hours worked under the FLSA, but time spent traveling during the employee’s regular workday—driving between jobsites, for example— must be counted as hours worked. Callbacks or emergencies // When employees

are called out at night after having completed their day’s work and must travel some distance to perform an emergency service on the employer’s behalf, all time spent on the job, including travel, must be counted as hours worked. On-call time // If an employee must stay on

the employer’s premises or so close by that he can’t use the time for his own purposes, the time spent “engaged to wait” is counted in

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BIGGER | growth S M A R T

( by Margaret Reynolds )

S T R AT E G I E S

Think Big to Grow Big Why exponential growth might be easier than you imagine.

rowing a company isn’t easy under the best of circumstances. Growing an established company by double digits is a rare feat, especially on a year-in, year-out basis. Ask yourself: What would it take for your business to grow by 10 percent this year? Likely, it would require a series of initiatives 36 THINKING BIGGER BUSINESS // February 2018

and investments. You might need to snag some top-notch talent, increase value and raise prices, and undertake an acquisition or two. Even then, the challenge may feel overwhelming. You would have to successfully execute multiple initiatives, secure adequate resources, overcome your competitors’

countermoves and get your entire organization moving forward in an aligned fashion. It is an incredible amount of work, if it can be done at all, and it is certainly not without risks. How About an Even Bigger Growth Challenge? Now, let’s make it interesting. What if your goal is to increase revenues not by 10 percent, but by a factor of 10? How would you approach that?

Would you be thinking about how to stretch your current business to get there … or would you have to envision a different company— maybe your current company on steroids? Your current core business might have to become one of several divisions. Maybe your local company goes global. Or maybe your products are sold across multiple markets rather than one. Would it be a lot of work? You betcha! Could it be done? Absolutely! Exponential growth is not without its challenges, but are those challenges necessarily harder than pursuing a smaller goal? Or are they just different? Once we push past the tendency to think in increments of growth (growing by 10 percent) and start thinking about pedal-to-the-metal growth (growing by 10x), we open up whole new possibilities to consider. We think about the potential of the business differently.

There is tremendous gold to be mined by stretching your growth goal past the obvious to the (at first) incomprehensible.

Improve or Transform? There are significant challenges in either growth scenario. The work will be hard, resources will be stretched, and the outcome will not be guaranteed. One choice may improve the company; the other may transform it. But if you are going to subject yourself, your colleagues and the employees to one of these options, which one gives the greatest rewards?

Under 15 Employees?

Want t

Margaret Reynolds is an author, speaker and principal of Breakthrough Masters Unlimited, a division of Reynolds Consulting LLC, specializing in dramatically accelerated growth of mid-market companies for more than 20 years. (816) 622-8843 // mreynolds@breakthroughmaster.com // www.breakthroughmaster.com

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The point is simply this: Thinking bigger isn’t necessarily harder. And in the process, thinking bigger often opens up new opportunities we never would have considered. Whether your stretch goal is 10 percent growth or 10x growth, challenge your team to go beyond the point that comes naturally, just simply tweaking what you already do. There is tremendous gold to be mined by stretching your growth goal past the obvious to the (at first) incomprehensible.

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BIGGER | marketing S M A R T

( by Jeff Julian)

S T R AT E G I E S

Should You Start a Podcast? It might be the best—but hardest—way to connect with customers.

very year, Edison Research creates a report called the Infinite Dial, covering the topic of podcasting. Since 2006, there has been a steady increase in awareness of the term—60 percent of those surveyed—and consumption of podcasts: 40 percent of survey respondents have listened to a podcast. In the modern business era, the most critical area of sales and marketing efforts to focus on is building an audience. Customers are moving away from wanting interaction with sales teams and toward self-served education for their purchase decisions. You need to capture their attention, and a podcast might be the best, hardest way to do that. In the research from Edison, only 24 percent of those surveyed listened to podcasts monthly, leaving me to conclude most businesses will struggle to reach an audience through podcasting. So should you start a podcast? The answer is probably no—podcasting is time-consuming, unforgiving and challenging to execute. But if you have a strong interest in it, here are businesses that could benefit from having a podcast:

Your customers and prospects listen to podcasts regularly.

» There are different groups of people who do listen to podcasts often. Fitness professionals, software developers, sales teams and many others in traditional B2B markets have very popular podcasts aimed at them. If your target market demonstrates a high consumption of this type of media, you are more likely to find a way to capture their attention and maybe even steal some of the audience from other podcasts. Your customers and prospects listen to their radio or wear headphones for an extended portion of their day.

» Do your customers travel a lot? Are they fitness fanatics? Do they sit at a desk in an open-concept office and need the ability to have peace? Are they sitting at home and enjoy consuming alternatives to primetime television? If so, you won’t have to construct a new habit for them by using audio as a way of entertainment or education. Your customers and prospects want to learn something to better their life or their career while also being entertained.

» For podcasting to be useful, you have to be able to capture and hold their attention. Because they desire results, whatever audio content you’re producing has to be considered valuable. Just like the price tag

you put on your products and services, the value to a customer needs to be measured because they are purchasing it with their most precious currency: time. Your customers and prospects can purchase something from you that is in line with the topic of your show.

» Having a plumbing business and a podcast about fitness is a long stretch for taking prospects from “lead” to “customer.” If you are a doctor but your podcast is about how to be a better magician, you likely will gain an audience that has no idea what type of physician you are and only the super-fanatics will reach out for your services. Your topic should go hand-inhand with what your business offers, and it should be content the majority of your customers would consume. Whatever you decide, remember this key fact: Content marketing needs to drive value to the audience. So dig in your heels and create marketing that matters.

Jeff Julian is CEO of Squared Digital and co-founder of EnterpriseMarketer.com. He is also the best-selling author of a book on SharePoint development and Jeff recently published a book titled, Agile Marketing: Building Endurance for your Content Marketing Teams. (913) 441-0717 // jeff@squareddigital.com SMART COMPANIES THINKING BIGGER®

BIGGER | trade S M A R T

( by Narbeli Galindo )

S T R AT E G I E S

Look Beyond the Border Local exporting resources assist companies that are ready to grow.

any companies still ask why they should start exporting. The answer is simple: to achieve growth and faster success, especially when there are so many available resources in Kansas City. The Kansas City metro area accounted for $8.3 billion of total merchandise exports from 2011 to 2013. On average, exports from the Kansas City area have increased by 1.7 percent annually over the past 10 years to $1 billion in 2016 and continue to grow. About 95 percent of the world’s consumers live outside the United States. There is huge potential for companies to grow— less than 1 percent of America’s 30 million companies export. Companies of any size can start exporting— especially companies that are looking to increase sales, job creation, profits and overall growth. Ready to get started? There are a wide array of resources in the Kansas City area that can assist businesses in learning how to trade or simply to continue to take advantage of business opportunities that help increase their bottom line sales and profits. The following organizations can help businesses that are ready to grow through exporting by offering education, connections and even funding. Economic Development Corporation of Kansas City, Missouri (EDCKC) edckc.com/international-business As a Kansas City 501(c)(4) nonprofit economic development agency, EDCKC provides export/import assistance for Kansas City, Mo., companies in public financing, real estate development support services, trade mission trips, trade advice and training, project opportunities and much more to increase their job creation and attraction. 40 THINKING BIGGER BUSINESS // February 2018

Missouri Department of Economic Development, International Trade & Investment Office exportmissouri.mo.gov The office provides expertise in areas such as agent and distributor search, business protocol, international trade shows, export due diligence, financing and more. Some of its funding sources include: Global Market Access Program (GMAP) // Cost-

sharing program to allow eligible Missouri companies to participate in specific events designed to create export sales. State Trade & Export Program (STEP) // Program

designed to increase the value of Missouri exports from small businesses through specific market expansion opportunities for existing exporters. World Trade CenterKansas City (WTC) wtc-kc.com WTC services include global market research, port-to-port import/export data, certificate of origin—eCertify, etc. WTC also offers funding to improve access to the world market such as the Kansas City Global Cities Initiatives (GCI) Microgrant Program and grants of up to $5,000 for reimbursement of export-related expenses to small and mediumsized enterprises. U.S. Commercial Service-Kansas City export.gov/missouri/kansascity Services include Gold Key Matching Service customized marketing and industry briefing, market research and more.

U.S. Department Of Agriculture (USDA)-Market Access Program fas.usda.gov/programs/ market-access-program-map USDA’s Market Access Program helps U.S. producers, exporters, private companies and trade organizations finance overseas marketing and promotional activities such as trade shows, market research, consumer promotions, technical assistance, trade servicing and educational seminars. The Emerging Markets Program (EMP) fas.usda.gov/programs/ emerging-markets-program-emp EMP provides funding for technical assistance activities to promote exports of U.S. agricultural commodities and products to emerging markets overseas. Missouri Department of Agriculture agriculture.mo.gov/abd/intmkt The Missouri Department of Agriculture’s International Marketing Program provides a variety of export services and has linked many Missouri producers to international buyers.

Narbeli Galindo is Director of International Affairs for Kansas City at the Economic Development Corp. of Kansas City, Mo. Galindo assists local companies in expanding globally through exports and imports by sharing her trade expertise. (816) 691-2139 // ngalindo@edckc.com

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