VOL. 26 // ISSUE 1 // JANUARY 2017
INFUSION EXPRESS Making life better for people with chronic medical conditions.
2017 FORECAST
How will politics affect small business this year?
DEFUSING SALES BOMBS
Deliver tough news to buyers.
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Congratulations to the 2017 Class of 25 Under 25 ÂŽ Artisitic Concrete Surfaces LLC
Hitch Fit
SARIN Energy Solutions
BioStar Lighting
International Express Trucking Inc.
Sphere3
Brown Button Estate Sale Services
J. Rieger & Co.
Certified Radon
Kansas City Bier Company
STRATA Architecture & Preservation
DuBois Consultants Inc.
Lever1
Superior Disposal Service
ER Marketing
MindLift
Towner Communications
Fortiviti
Plasterkraft LLC
Treadwell
Generator Studio
Safe Defend
Hartline Construction
Sage Communications
Worldwide Innovations & Technologies
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We wish you continued success as you think bigger!
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CONTENTS
JANUA RY 2017 VOL. 26 // ISSUE 1
D E PA R T M E N T S
07 08 09 10 14 14 16 49 50
The Bigger Picture Biz Bits Legislative Briefs Calendar 25 Under 25® Updates BIG | deals At A Glance BIG | shots BIG | talk
OUTLOOK
20
KC MADE IT KC Canning Co.
Pickling, preserving and preparing for growth.
21
KC FUTURES Venture for America
Recruiting for KC startups.
44
BUILDING KC Historic Redevelopment
New life for old buildings. S M A R T S T R AT E G I E S
31
BIGGER | health Reviving the HRA
Another option for small employers.
32
BIGGER | finance Taking Stock
Is an ESOP right for you?
34
BIGGER | hr
26 GROWTH INFUSION Billing specialist Marissa Ritterhoff, operations VP Janet Ink and office manager Erin Gash are part of the growing team at Infusion Express. The company is expanding from three to eight locations.
KC ENTREPRENEUR
Your New Right Hand
How to hire a COO.
36 BIGGER | growth Bulletproof Your Strategy
How to practice corporate resilience.
38
BIGGER | sales Defusing Sales Bombs
How to share bad news.
40
BIGGER | tech That ‘Oh No’ Moment
Recover lost files.
41
BIGGER | marketing Subscription Models
Why they make sense. 4
THINKING BIGGER BUSINESS // January 2017
ON T COV HE ER
Infusion EXPRESS By 2019, the company expects to operate IV therapy centers in every major city in the United States.
C O M PA N Y T O WAT C H
F E AT U R E
SCALEUP! KC
19 Deep Background
22 2017 Policy Outlook
42 Divide and Conquer
PreScreend is moving background screening forward.
What can we expect from federal and state officials?
To grow her business, Fortiviti’s Shauna Huntington cut it in half. SMART COMPANIES THINKING BIGGER®
5
CONTENTS
JANUA RY 2017
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Aspire for More Shawn Kinkade Hurts So Good
WhiteSpace Revenue Zone Elizabeth Usovicz A Text From Your Future: 3 Priorities for 2017
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6
THINKING BIGGER BUSINESS // January 2017
THE BIGGER PICTURE
Is Your Doorbell Ringing In New Opportunities for 2017?
S
everal years ago at a conference
To be honest, I don’t remember how he went on to
I attended, the keynote speaker
connect that question with the rest of his talk.
asked us to raise our hands if
But the anecdote stuck with me because it got me to thinking about entrepreneurs and how
we owned a dog.
they must be the most optimistic people of all.
Along with many others in the room, I raised
We see opportunity when others think we’re barking
my hand. The speaker then said: “Your dog probably
up the wrong tree. We don’t see doors as obstacles but
has the most optimistic outlook in your household.”
as something to open. We hear the “doorbell” of an idea,
Acknowledging a roomful of puzzled faces, he continued:
and our entrepreneurial curiosity leads us to go open it.
“Think about it. Every time the doorbell rings, what does
As we begin 2017, resolve not only to take advantage of
the dog do? The dog races madly to the door, barking
the opportunities that come your way but also to create
loudly, tail wagging. Has the door ever been for the dog?
your own opportunities by opening doors that you might
No. But the next time the doorbell rings, the dog will once
not necessarily think are for you. Many times our best
again race wildly to the door, eagerly welcoming your
opportunities come when we’re not expecting them.
next visitor—who once again won’t be for the dog. Now
On behalf of all of us at Thinking Bigger Business Media,
if that’s not optimism, I don’t know what is.”
have a prosperous and profitable New Year!
Ke lly S can lon
// Publisher // kscanlon@iThinkBigger.com
SMART COMPANIES THINKING BIGGER®
7
BIZ BITS
U.S. Department of Energy to Host Small Biz Expo in KC
SBA Rebrands Its 7(a), 504 Loan Programs
Last Call for This Year’s InvestMidwest Applications
The U.S. Department of Energy will present its annual Small Business Forum & Expo on May 16-18 at the Sheraton Kansas City. The event is expected to draw more than 1,000 attendees. Small businesses can learn more about the DOE’s procurement process and meet with federal procurement officers and prime contractors looking to do business with them. For more information, visit www.smallbusiness.energy.gov.
The U.S. Small Business Administration is giving its 7(a) and 504 loans new names. Going forward, 7(a) loans will be called SBA Advantage loans, while the 504 product will be known as the SBA Grow loan. The names are the only thing changing. SBA Grow loans will be used for real estate, equipment and other capital investments, while Advantage will be primarily for working capital.
Jan. 13 is the deadline for applying to present at this spring’s InvestMidwest Venture Capital Forum, which will be held March 28-29 at the Sheraton Kansas City. The event is designed for up-and-coming companies that expect to hit $20 million in revenue within five years. About 40 companies will be picked to participate in three tracks: life sciences; technology; and ag, food and bioenergy. For more information, visit www.investmidwestforum.com.
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There’s still time to nominate a company for the SBA’s National Small Business Week Awards, which will be announced this spring. Several awards will be presented, including the Small Business Person of the Year. Nomination forms must be mailed or hand-delivered by 2 p.m. Jan. 10 to the SBA’s Kansas City District Office, 1000 Walnut St., Ste. 500, Kansas City, MO 64106. For more information, visit www.sba.gov/nsbw or call (816) 426-4900.
816.753.2166 Commenco.com/Rental Untitled-1 1 THINKING BIGGER BUSINESS // January 2017
Online loan marketplace LendingTree will give $50,000 to the winner of its Small Business Grant Contest. The application deadline is 4 p.m. Jan. 15. Entrants must answer a series of questions, including why their company deserves the grant and how the money would be used. LendingTree is looking for small businesses that have growth potential but are struggling to find funding. To apply, visit www.lendingtree.com/about/business-grant.
National Small Business Week Awards Deadline Is Jan. 10
Call us and ask for Jeff in Rental.
8
$50K Grant Up for Grabs in LendingTree Contest
11/18/16 4:52 PM
L E G I S L AT I V E B R I E F S
FEDERAL New Law Aims to Protect Customer Reviews The Consumer Review Fairness Act of 2016 (H.R. 5111) has been signed into law. It voids certain clauses in form contracts if they restrict or prohibit people from creating reviews of a seller’s services, products or conduct. The law is a response to businesses whose terms of service included threats of fines or lawsuits against customers who make a negative comment about the business online.
KANSAS New Plan for Solving KS Budget Shortfall Rise Up Kansas, a coalition of advocacy groups, has unveiled its agenda for the new legislative session, including a plan to create an income bracket for Kansans making more than $40,000 per year, or $80,000 per year for couples. People in this bracket would be charged a rate of 6.45 percent, compared to the 4.6 percent rate they pay now. The group also wants to increase the gas tax by 11 cents to 35 cents per gallon. The coalition’s plan would do away with the “LLC loophole” and reduce the sales tax on food.
Waiving Business Filing Fees for Vets, Spouses
of residents have incomes below 80 percent of the state’s median income and where the unemployment rate is at least 1.5 times the state’s. Companies must create at least two jobs to qualify, and the average wage of the new payroll must either exceed or be equal to 80 percent of the county’s average wage.
New Incentive Proposed for Manufacturers
S.B. 18, filed by State Sen. Will Kraus of Excelsior Springs, would waive business fees for military veterans and their spouses in connection with companies where they’re a partner, officer, director, organizer or majority shareholder.
H.B. 146, introduced by State Rep. T.J. Berry of Kearney, would create the Manufacturing Infrastructure Investment Act, an incentive program to reward manufacturers that create good-paying jobs, make capital investments, introduce new products or expand the production of existing goods. Participating companies would be able to retain some or all of the withholding taxes on certain full-time jobs. The program would be capped at $15 million per year and would sunset in six years.
Bill Would Introduce MO Angel Tax Credits S.B. 78 would create a tax credit program for angel investors who put money into qualified Missouri businesses. An investor could receive a credit worth 50 percent of his or her investment. Investors would be limited to $50,000 in tax credits per business per year, or $250,000 in tax credits total if they invest in multiple businesses. The Missouri Technology Corporation would be in charge of approving companies for the tax credit program.
Staffing Kansas City Wishes You a Happy and Prosperous New Year! We look forward to another great year of providing Kansas City companies with “Top Performers!” Start the New Year off right and call your employment partners Marie, Shelley, Michelle, Ashley and Roses
MISSOURI
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ENTY-FIV
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UNDER
W
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S.B. 10 would update the Missouri Works incentive program by letting companies retain the withholding tax from new jobs they create in an “area of distress”: an area of “pervasive poverty, unemployment and general distress” where at least 65 percent
∙T
Incentivizing Job Creation in Distressed Areas
TY-FI
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V
Class of 2016
913-663-JOBS (5627) www.staffingkc.com SMART COMPANIES THINKING BIGGER®
9
K C CA L E N DA R JAN UARY
09 Winning at Sales This sales-focused roundtable will keep you accountable to your sales goals and help you connect with other small business owners. Meets Jan. 9, Jan. 30, Feb. 20 and March 13. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 11 a.m.–12:30 p.m. $90 for the first quarter, or $150 for first and second quarters. INFORMATION/REGISTRATION »
info.umkc.edu/sbtdc or (816) 235-6063
10
19
Brew :30 Sign up today for Thinking Bigger Business Media’s quarterly Happy Hour event. Network with other business owners and enjoy an after-work drink at Lifted Spirits, 1734 Cherry St., Kansas City, Mo. 5:30–7:30 p.m. $25. INFORMATION/REGISTRATION »
(913) 432-6690 or www.ithinkbigger.com
to winning federal, state and local contracts. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 9:30 a.m.–Noon. Free.
Sharpen the communication skills that you need in your daily life as a business owner, including delegating, coaching and giving feedback. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 8 a.m.–Noon. $154. INFORMATION/REGISTRATION »
(913) 469-3878 or ceregistration@jccc.edu
The First Steps to Starting a Business Increase your chances for success in small business by attending this how-to seminar. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 9 a.m–Noon. $75, scholarships available. INFORMATION/REGISTRATION »
info.umkc.edu/sbtdc or (816) 235-6063
(913) 469-3878 or ceregistration@jccc.edu
14 Simple Steps to Starting Your Business: Startup Basics Interested in becoming a business owner, but aren’t sure where to start? This workshop will assist you with the most important questions you need to answer. This is the first of a three-part series. SCORE, 4747 Troost Ave., Kansas City, Mo. 10 a.m.–Noon. (Check-in starts at sign 9:45 a.m.) Free. INFORMATION/REGISTRATION »
The Basics of Writing a Business Plan In this workshop, you’ll learn how to build one of the most powerful guides for growing a small company: the mighty business plan! UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 1–4 p.m. $75, scholarships available. INFORMATION/REGISTRATION »
info.umkc.edu/sbtdc or (816) 235-6063
11 Competing for Government Contracts: Basic Training The Kansas Procurement Technical Assistance Center will walk you through the first steps 10
THINKING BIGGER BUSINESS // January 2017
INFORMATION/REGISTRATION »
info.umkc.edu/sbtdc or (816) 235-6063
INFORMATION/REGISTRATION »
Communicating for Leadership Success
business. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 5:30–8:30 p.m. $645, scholarships available.
here kansascity.score.org
17 FastTrac NewVenture This intensive five-week workshop will cover the basics of what you need to start and survive as a small business owner. Offered one day a week for five weeks. Application and payment are due by noon Jan. 7. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 9 a.m.–4 p.m. $649, scholarships are available. INFORMATION/REGISTRATION »
info.umkc.edu/sbtdc or (816) 235-6063
Construction Business Management This eight-week course is designed for existing construction companies that want to refine their operations and grow their
Doing Business in the Cloud This workshop will demonstrate how cloudbased services can improve your small business’s operations—and will explore potential security concerns. Presented by Square One Small Business Services with support from the Kauffman Foundation. MidContinent Public Library-Parkville Branch, 8815 Tom Watson Parkway, Parkville. 6:30– 8 p.m. Free, but registration is required. INFORMATION/REGISTRATION »
www.mymcpl.org/squareone
18 Small Business Smithville: A Forum to Discuss Community Support for Local Business This networking lunch will feature a talk on ways you can encourage customers to shop at local businesses. Presented by Square One Small Business Services, Platte Valley Bank and Clay County EDC. Platte Valley BankSmithville South Branch, 1603 S. 169 Highway, Smithville. 11:30 a.m.1 p.m. Free, but registration is required. INFORMATION/REGISTRATION »
www.mymcpl.org/squareone
Winning Federal Research Grants: SBIR/STTR Workshop This workshop will show you how to access the federal government’s grant programs for small businesses developing innovative new
technologies. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 11:30 a.m.–2 p.m. $35. INFORMATION/REGISTRATION »
info.umkc.edu/sbtdc or (816) 235-6063
19 Business Basics in a Day This daylong workshop will teach new and aspiring business owners how to choose a legal entity, form financial projections, develop marketing and handle other important tasks. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 8 a.m.– 4 p.m. $69. (Box lunch provided.) INFORMATION/REGISTRATION »
(913) 469-3878 or ceregistration@jccc.edu
Pitching to Investors Michele Weigand, managing partner of Focused Perspective, will talk about what investors want to see in up-and-coming companies. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 5:30–8 p.m. $35.
24 Time Management Take control of your business by taking back your schedule. This workshop will share strategies for better managing your time. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 8 a.m.–Noon. $129.
21
Northland Regional Chamber Annual Banquet The chamber will announce the Northlander of the Year
INFORMATION/REGISTRATION »
and other award winners.
(913) 469-3878 or ceregistration@jccc.edu
Evening attire. Argosy Casino
Advanced QuickBooks
Hotel & Spa, 777 N.W. Argosy
Mastered the basics of QuickBooks, but looking to up your game? This daylong program will show you how to customize receipts and invoices, add custom fields and more. MU Extension Jackson County–Blue Springs, 1600 N.E. Coronado, Blue Springs. 9 a.m.– 4 p.m. $99.
Parkway, Riverside. 5:30–
INFORMATION/REGISTRATION »
9 p.m. $85 per seat or $950 per table. $1,500 for 25th anniversary tables featuring priority seating and two bottles of wine. (816) 455-9911 or www.northlandchamber.com
INFORMATION/REGISTRATION »
info.umkc.edu/sbtdc or (816) 252-5051 or samborskij@missouri.edu
INFORMATION/REGISTRATION »
info.umkc.edu/sbtdc or (816) 235-6063
20 Lenexa Chamber Annual Dinner This year’s event, “Home Sweet Home,” will feature dinner from Grand Street Café, raffle items, sweets and more. Hyatt Place Hotel & Convention Center, 8741 Ryckert St., Lenexa. 6–10 p.m. $90 for individuals, $675 for tables of eight. INFORMATION/REGISTRATION »
www.lenexa.org or (913) 888-1414
21 Simple Steps to Starting Your Business: Business Concept and Marketing Learn how to develop your business concept, research your customers and competitors, and create a marketing plan. Second of a threepart series. SCORE, 4747 Troost Ave., Kansas City, Mo. 9 a.m.–3 p.m. (Check-in starts at 8:45 a.m.) Free. INFORMATION/REGISTRATION »
kansascity.score.org SMART COMPANIES THINKING BIGGER®
11
K C CA L E N DA R JA N UARY
26 Nontraditional Advertising for Small Businesses Find low-cost alternatives for promoting your company. Presented by Square One Small Business Services with support from the Kauffman Foundation. Mid-Continent Public Library-Riverside Branch, 2700 N.W. Vivion Road, Riverside. 6:30–8 p.m. Free, but registration is required. INFORMATION/REGISTRATION »
www.mymcpl.org/squareone
27 Olathe Chamber Annual Meeting Celebrate the achievements of Olathe residents and businesses at this luncheon. Embassy
Suites Hotel-Olathe Conference Center, 10401 S. Ridgeview Road, Olathe. 11:15 a.m.– 1 p.m. $65 for members, $75 for nonmembers and guests. INFORMATION/REGISTRATION »
www.olathe.org or (913) 764-1050
28
(913) 469-3878 or ceregistration@jccc.edu
Simple Steps to Starting Your Business: Startup Basics Interested in starting your own company, but aren’t sure where to start? This two-hour workshop will help you address the most important questions. Enterprise Bank, 444 E. Santa Fe, Olathe. 10 a.m.– Noon. (Check-in starts at 9:45 a.m.) Free. INFORMATION/REGISTRATION »
ReprintPros, a full-service custom reprint supplier, is Thinking Bigger Business magazine’s authorized reprint service.
products, including digital reprints and commemorative plaques. Get a free, no-obligation quote from ReprintPros today.
Jeremy Ellis // (949) 702-5390 // www.ReprintPros.com
S AV E T H E DAT E
25 Under 25® Awards Dinner & Gala March 4, 2017 // Downtown Marriott Individual tickets and tables are available. Visit 25Under25.com for more information.
kansascity.score.org
VOL. 25
// ISSUE
6 // JUNE
2016
VOL. 25 // ISSUE 7 // JULY 2016
SKY’S
FASHION FORWARD
THE LIM
The com ing boom in Continuing a local legacy. commercial drones.
THINK
WE MADE IT
IT
AH
Why manufacturing How to build EAD a business endures in KC. you can sell.
In addition to high-quality printed reprints, ReprintPros provides related
THINKING BIGGER BUSINESS // January 2017
Delegating With Purpose Learn how to get more done by enlisting team members to tackle new tasks. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 1–5 p.m. $154. INFORMATION/REGISTRATION »
Has your company been featured in Thinking Bigger Business magazine?
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TRUE WIL SBREW UCCEL TO ED KC Bier Co. makes GermanWil l Shie ldsright style beer makhere. es the football jump legend from to entr epreneu r.
Commercial . Industrial Data/Comm Design Build Utility . Prime MO: 909 Troost, KCMO 64106 KS: 3236 N. 7th St, KCKS 66115
816-842-7023 www.markone.com
Join Us! Introducing Brew :30, a quarterly Happy Hour event where you can meet new business owners, make valuable connections and discover some of Kansas City’s local wineries, breweries and distilleries!
Details Thurs., Jan. 19, 2017 // 5:30-7:30 p.m. $25, includes two drink tickets, heavy hors d’oeuvres Lifted Spirits Distillery, 1734 Cherry St. Kansas City, Mo.
sponsored by
R S V P T O D AY AT W W W. I T H I N K B I G G E R . C O M | ( 9 1 3 ) 4 3 2 - 6 6 9 0 F O R S P O N S O R S H I P O P P O R T U N I T I E S
BIG | deals
C L A S S U P D A T E S // 25Under25.com
20 10
AI Accelerator Taps Calibrate Calibrate Education Inc. was one of 50 startups picked for TechCode’s Global AI+ Accelerator, a program for young companies that incorporate artificial intelligence into their work.
Travois Lands $50 Million in Tax Credits Travois New Markets has received a $50 million
allocation of New Markets Tax Credits from the U.S. Department of the Treasury. Travois will use those credits to raise private investor capital for housing and economic development initiatives that help American Indian, Alaska Native and Native Hawaiian communities. 20 15
City Gym Expands to Downtown KCMO
Waldo’s City Gym is opening a second location in downtown Kansas City, Missouri. The new gym will be based in the East 9 at Pickwick Plaza apartment building. Katie Roder, manager at the original location, will oversee a 6,000-square-foot open gym, a spin studio and a group exercise studio.
20 14
RESULTS Wins Marketing Award RESULTS Technology and its marketing campaign,
“5 Reasons You Do NOT Need RESULTS Technology,” recently won an MSP Marketing Masters Award from security and data services company Intronis. 20 08
New Designer at Tevis Architects
20 13
Updated Name, Brand for A/R Allegiance
20 13
Alpha Energy and Electric Assists Cerner
Chris Schupp has joined Tevis Architects as a designer, after previously working for Black & Veatch. A/R Allegiance Group has rebranded as the Allegiance Group.
Alpha Energy and Electric Inc. has been selected to
work on Cerner’s new $4.5 billion Trails Campus in south Kansas City. 20 04
Silver and Gold for Schloegel Schloegel Design Remodel won gold and silver medals
at this year’s Kansas City REMY Awards in the over-$150,000 category for a Prairie Village kitchen remodel and in the $100,000-to-$150,000 category for a Mission Hills kitchen remodel.
14
THINKING BIGGER BUSINESS // January 2017
AWARDS/RECOGNITION Forbes Highlights C2FO C2FO was recently included on Forbes’ Fintech 50 List, which rounds up technology companies that are changing the landscape of the financial industry. This was C2FO’s second year on the list. It was the only Kansas company included, and one of the very few that isn’t based in California or New York. Twisted Sisters, Nothing Bundt Cakes Take Home NEJC Chamber Awards Twisted Sisters Coffee Shop was named the Northeast Johnson County Chamber’s Small Business of the Year, while Nothing Bundt Cakes in Mission was the New Business of the Year. Other winners include: First National Bank, Corporate Business of the Year; Kevin Wright of Google Fiber, Ambassador of the Year; and Jennifer Pantoja of Hampton Inn & Suites in Merriam, Volunteer of the Year. FINANCING Idle Smart Lands $125K Investment Idle Smart won $125,000 in investment as part of its participation in the Energy: US 2016 venture development program. The startup was the top vote-getter among the companies in the program’s cohort. MO Technology Corp. Backs SquareOffs Local startup SquareOffs has been approved for $225,000 in
funding through the Missouri Technology Corporation’s IDEA Fund. SquareOffs was one of 10 to share in the $2.6 million in awards, and the only one from Kansas City. M&A Royal Loyal Acquired Local startup Royal Loyal, the developer of a customer loyalty platform, has been bought by PrairieFire Coffee. DCA Outdoor Moves Into Indianapolis DCA Outdoor Inc.—a Kansas City company that owns several gardening, nursery and landscaping businesses—has just acquired Brehob Nursery Inc. of Indianapolis. This will double DCA Outdoor’s sales and distribution and allow it to grow to a third metro area. NEW BUSINESS Antler Room Launches on Hospital Hill The Antler Room is a new restaurant and bar located at 2506 Holmes on Hospital Hill in Kansas City, Missouri. The owners are Leslie and Nick Goellner. Thai Restaurant Opens on 39th Street Aep Thai specializes in northern Thai street foods. It’s located at 1815 W. 39th St. in Kansas City, Missouri. The restaurant is operated by chef Jakob Polaco and Adam Northcraft.
EAG16-043_TBBM_SMALL_ADS.pdf
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12/16/16
9:48 AM
WINNERS
A WINNER
KC’s Newest Steakhouse Debuts Stock Hill, a new steakhouse from Bread & Butter Concepts, is now open at 4800 Main St., just south of the Country Club Plaza.
Second Location for Plowboys Barbeque Plowboys Barbeque has opened a restaurant at 12th and Main streets in downtown Kansas City, Missouri.
ON THE MOVE Unforked Expands to Crown Center Sheridan’s Unforked has opened a second location in the Crown Center Shops. Unforked will continue to operate its original restaurant on 119th Street in Overland Park.
OTHER NEWS
New CEO at mySidewalk Stephen Hardy, who had served as COO at local startup mySidewalk, is now the CEO. Nick Bowden, his predecessor, will continue as an adviser on the company board.
Khurana Joins Cavern Technologies Sean Khurana is the new president and COO of Cavern Technologies, which develops and operates underground wholesale data centers in the Kansas City area.
Big Distribution News for Farmobile Ag-data startup Farmobile will distribute its devices through the dealerships of AGCO, one of the world’s leading manufacturers of farming equipment. The deal
Branding
Design
Digital
is U.S.-based to start, but could expand worldwide by year’s end. Rx Savings Wins Major New Customer Rx Savings Solutions will offer its cost-saving service to the 220,000 members of the State of West Virginia’s Public Employees Insurance Agency. New Client for ARJ Infusion ARJ Infusion Services has signed
a huge new client: MedTrakRx, a pharmacy benefit manager with a national reach.
Thinking BIGGER? Take your growth-minded small business to the next level of success with Thinking Bigger Business magazine. VOL. 26 // ISSUE 1 // JANUARY 2017
» $24.99 // one year » $36.99 // two years » $49.99 // three years
INFUSION EXPRESS Making life better for people with chronic medical conditions.
2017 FORECAST
How will politics affect small business this year?
DEFUSING SALES BOMBS
Deliver tough news to buyers.
» iThinkBigger.com
Digital Subscription Only: » $9.95 // one year
TO S UBS CRIBE OR REN EW TODAY, CAL L (913) 4 3 2 - 6 6 9 0 O R V I SI T WWW.I TH I N KB I GGER .C O M SMART COMPANIES THINKING BIGGER®
15
AT A G L A N C E
RESOURCE CONNECTION
Boosting Entrepreneurs in the Heart of KC The Urban Business Growth Initiative offers training and other support to small business owners in the heart of Kansas City, Missouri. HOW IT WORKS
Selected applicants can receive scholarships to attend FastTrac, Construction Management or Ice House Entrepreneurship courses for as low as $75. Workshops on social media, government contracts and finance could even be free. Participants can also receive coaching from the University of Missouri-Kansas City Small Business & Technology Development Center, the Women’s Business Center, Missouri PTACand Justine PETERSEN.
Does It Matter How Companies Treat Workers?
53%
BUT
67%
of U.S. adults say it’s important
would like to support those
to support companies that treat
companies, but can’t jus-
employees well.
tify paying a higher cost.
PART OF THE PROBLEM?
Most shoppers don’t know who treats their workers well.
» 38% say that info is hard to find » 23% say it’s easy to get » 38% aren’t sure or have never tried to find out SOURCE // PEW RESEARCH CENTER
BOOK REPORT
Other partners include KCSourceLink and KCBizCare, which help with outreach. The City of Kansas City, Missouri, and the U.S. Small Business Administration support UBGI financially.
The Undoing Project: A Friendship That Changed Our Minds
WHO IT’S FOR
W.W. Norton & Company // Michael Lewis
Anyone who lives in or owns a business in Kansas City, Missouri. HOW TO GET CONNECTED
Visit the program’s online presence at www.bit.ly/1MzFfUj or email umkcsbtdc@ umkc.edu 16
RESEARCH + TRENDS
THINKING BIGGER BUSINESS // January 2017
Michael Lewis (“Moneyball, “The Blind Side”) writes about Israeli psychologists Daniel Kahneman and Amos Tversky, the founders of behavioral economics. Their research challenged traditional views on the decision-making process—including the idea that human beings tend to choose based on logic.
FINANCE
BY THE NUMBERS
Why Your New Business Probably Won’t Get V.C. Investment Receiving venture capital from investors is extremely rare for most new businesses. According to Census figures ...
Devoted to Loyalty Programs
65% of North American shoppers say they’re more likely to buy from retailers with customer loyalty programs
vs.
0.6%
10.3%
70% say loyalty programs are a big reason why they keep going back
use venture capital to
who rely on their personal
start their business
credit cards
66% of global customers belong to at least one loyalty program
CROWDFUNDING ISN’T EASY EITHER
0.1% SOURCE // The Kauffman Foundation
The percentage of KC companies that hit their crowdfunding goals, among the lowest in the nation. But even cities doing a good job have a success rate of only 0.3 percent.
78% of customers in Asia-Pacific countries say loyalty programs are a deciding factor SOURCE // Nielsen’s Global Loyalty-Sentiment Survey SMART COMPANIES THINKING BIGGER®
17
AT A G L A N C E
BIG STARTS | LIBERTY CANDLE CO.
Lighting the Way for Warriors The bright idea behind Liberty Candle Co.
STARTUP // Liberty Candle Co. ENTREPRENEURS // James and Emily Dressler WHAT THEY DO // Liberty Candle Co. makes patriotic-themed
candles and donates 10 percent of its gross revenues to organizations that assist military veterans. One of its first beneficiaries is War Horses for Veterans, a Stilwell-based nonprofit offering equine therapy to vets. James Dressler, an Air Force veteran, hopes his family’s candles will inspire people to pray for and help the service members,
veterans and military families in their own backyards. His big, hairy audacious goal: to sell 1 million candles in all 50 states in the next five years. HOW THEY GOT STARTED // James got into candle-
making years ago when he was in the service. He got really good at it—to the point that he could make and sell his creations. A few months ago, Emily suggested they revive that sideline. Their basement is their production facility, and their kids and mothers pitch in. Liberty Candle Co. started selling online (www.liberty-candle.com) in October. WHAT’S NEXT // Liberty Candle Co. plans to
move into retail, especially on military bases, sometime early this year. It’s also looking for larger organizations interested in co-branded, sponsored runs of its candles.
MADE TO LAST | ANTHONY PLUMBING, HEATING & COOLING
‘Don’t Lose the Personal Touch’ How Anthony Plumbing, Heating & Cooling balances strong growth and excellent service.
Anthony Plumbing, Heating & Cooling has been serving Kansas City homeowners for 65 years and counting. But the last decade has arguably been its most eventful.
the last several years. “But those are very small compared to organic growth,” he said. As it’s gotten bigger, the company has preserved what customers love about smaller plumbing and HVAC businesses: their personal touch. Burbridge and his team have set up standardized processes for handling calls, which has allowed them to scale up efficiently. “You employ more people,” he said, “but you’re still providing that great, small, personalized service.”
Steve Burbridge acquired the company in February 2007 from founder Anthony D’Agostino’s son, Paul. Starting with a team of four, Anthony PHC has since grown to more than 120 employees.
Burbridge is no stranger to growing a service business. He and his father, Ralph, grew Neal Harris Heating, Air Conditioning and Plumbing from a one-truck operation to a public company.
That’s partly due to Burbridge’s strategy of acquiring and “tucking in” 11 other mom-and-pop service businesses in
The key, Burbridge said, is to always remember the customer. “Don’t lose the personal touch.”
18
THINKING BIGGER BUSINESS // January 2017
C O M PA N Y T O WAT C H
PRESCREEND
Background Screening Moves Forward PreScreend helps clients check out others before meeting.
ENTREPRENEURS
Dustin Abercrombie, Kerry Baker, David McAllister COMPANY INFORMATION
PreScreend 22052 W. 66th St., Ste. 226 Shawnee, KS 1-855-623-3652 www.prescreend.me TYPE OF BUSINESS
Predictive analytics screening YEAR FOUNDED
2015
D
ustin Abercrombie and Kerry Baker have always known how important personal security is. As law enforcement officers, the two spent years ensuring the public’s safety. However, it was an incident with a good friend that motivated the duo—along with partner David McAllister—to create PreScreend, an online provider of background screening. “Marti nearly lost her life at the hands of a contractor she hired to do some remodeling work,” Abercrombie said. “If Marti had had PreScreend, she would have known that her contractor had over 60 previous contacts with law enforcement officers and he was arrested for domestic violence on several occasions. It doesn’t mean she wouldn’t have hired him, but she would have been much more aware.” PreScreend offers a complete suite of solutions that allows the user to mitigate risk and make a more informed decision. The platform allows individuals and businesses a way to authenticate and verify someone’s real identity through an opt-in process. Abercrombie said unlike other services that provide public record information without someone’s permission, PreScreend focuses on first-party consent.
“This allows individuals to be the gatekeeper of their information and share their profile with other individuals as they see fit,” he said. “PreScreend’s model is a first of its kind, allowing users to proactively establish trust by adding a layer of personal safety and security.” Abercrombie said the system allows the consumer a measure of safety before meeting a stranger for the first time. Its reports draw on nearly a zettabyte of data that includes criminal, social and business records, along with other sources. Currently, PreScreend is used by volunteers in more than 70 schools in Kansas, Missouri, Oklahoma, Texas and Arizona. PreScreend was recently approved for support from Digital Sandbox KC, which provides startups access to experts in technology, business and marketing and funding for early-stage market validation, prototyping and beta-testing services. Abercrombie’s advice for other startup founders? Have a good support system, and remember to persevere. “If it wasn’t for our wives allowing us to follow our dream, we would have never had the opportunity to take the gamble,” Abercrombie said. “One of my mentors (David Brain) said, before becoming a startup founder, you should really ask yourself if you’re Rocky or rickety. Can you take a punch? Because there’s a lot of them. If you can, then you have a great shot at success.” Ruth Baum Bigus is a freelance writer based in Kansas City. SMART COMPANIES THINKING BIGGER®
19
KC MADE IT
( by Pete Dulin )
CHEF TIM TUOHY PICKLES, PRESERVES AND PREPARES FOR GROWTH.
Kansas City Canning Company Makes Award-Winning Foods Since KC Canning launched, the company has gained distribution through several channels. “We sell wholesale to specialty food stores in New York, San Francisco, Los Angeles and Kansas City,” Tuohy said. In addition to his online store, he sells products direct to a limited number of customers and via Shatto Milk’s home delivery program. Boulevard Brewing’s Beer Hall features KC Canning’s unfiltered Hoppy Pickles and Bloody Mary Mix on its menu. WHAT’S NEXT?
ithin a former diner turned production space in the East Bottoms, Kansas City Canning Company co-founder Tim Tuohy finished sealing jars filled with Clementine Thyme Marmalade. His mother-in-law, Kathy Beckloff, and aunt-in-law Sharon Ostermann were helping complete the day’s production. The family moved closely in the 600-squarefoot space to fill orders. “One-third of our business happens between Thanksgiving and Christmas,” Tuohy said. The marmalade is one of nine staple and eight seasonal small-batch products made by KC Canning. Tuohy and his wife, Laura, launched the specialty food company in November 2014.
W
SPACE TO PRESERVE, ROOM TO GROW
The product line resembles the contents of a grandmother’s farm pantry. Except the flavors of these pickled and preserved goods have been jazzed up by a chef with an adventurous palate. For example, KC Canning makes products like 7-Pepper Jelly and Rosemary Fig 20 THINKING BIGGER BUSINESS // January 2017
Spread, as well as shrubs, a type of flavored, vinegar-based concoction used in cocktails and nonalcoholic beverages. “I also make a Harvest Series,” said Tuohy. “I work with local farmers and buy excess produce. These items are sold online in limited runs from spring through fall.” For example, Tuohy acquired 300 pounds of baby beets last May and made Spiced Pickled Beets and a Beet Tarragon Shrub. The arrangement helps farmers when excess produce would otherwise become compost. Tuohy transforms fresh food into edible eats by preserving it. Tuohy, a former restaurant chef, and his wife come from families with a history of canning and preserving foods. He created the original small-plate menu at Tom’s Town Distilling Company for the distillery’s opening. Now Tuohy focuses on managing production for KC Canning’s in-demand goods and growing the fledgling company. “After a year and a half, I moved production from a shared commercial kitchen to the East Bottoms,” he said. “It was time to find our own space.”
KC Canning’s building sits on a half-acre lot with ample potential for use. “Next spring, we’ll start doing events in the lot by the building. Maybe a night market like those found in Vietnam,” Tuohy said. “We’re talking about a community garden.” Tuohy aims to sell bigger quantities of select products to large retail accounts. He also plans to work directly with more small shops in Kansas City and develop stronger relationships with local farmers as a source for his produce. “Kansas City will also be a testing ground for new products,” he said. Tuohy opened a small jar of pickled ground cherries, a fruit he didn’t know existed until a farmer introduced it. The cherry tasted like mango. Tuohy suggested that the cherries would make a novel cocktail garnish, and the tangy liquid could double as a mixer. KC Canning Company, winner of a 2016 Good Food Award for its Apple Caraway Shrub in the spirits category, also earned a 2017 Good Food finalist nomination for its Pickled Ground Cherries and Beet Tarragon Shrub. The announcement of winners will take place on January 20. Pete Dulin is a freelance writer based in Kansas City. www.petedulin.com
KC FUTURES
( by James Hart )
THE FELLOWSHIP PROGRAM CONNECTS RECENT GRADS WITH UP-AND-COMING COMPANIES.
Venture for America Announces KC Expansion said Nathan Kurtz, senior program enture for America—a fellowship officer in entrepreneurship at the program that places recent graduates Kauffman Foundation. at young, emerging companies—is coming The foundation is providing a to Kansas City later this year. $225,000 grant to help VFA get VFA will help local startups recruit started in Kansas City. The talented employees while also program has officially made a building up the city’s pool of commitment to operate here potential entrepreneurs. Many for at least three years, but of the program’s graduates stay the expectation is VFA will be in their cities even after their here indefinitely, Kurtz said. fellowship ends. About Na than Kurtz “It’s almost certainly going to be 25 percent go on and create ongoing beyond that.” their own companies. A VFA fellowship lasts two years, “It’s part of a broader talent and seven to 10 graduates will be selected development strategy in Kansas City,”
V
for each class. Venture for America will host an intensive five-week training session for its fellows this summer, then place them with companies in August. Venture for America is looking for Kansas City companies that are interested in bringing its people aboard. It’s not free—a startup must commit to paying its fellow an annual salary of $38,000, plus benefits, for the two years. Employers are encouraged to offer equity to their fellows, too. VFA also charges the company a $5,000 placement fee. The benefit, though, is that VFA handles the recruiting, vetting and training of very qualified candidates. It has an acceptance rate of 10 percent, with fellows coming from more than 100 universities and colleges. Larger companies tend to have active recruitment programs and existing relationships with job-placement programs at colleges and universities, but for startups that are looking for great employees, “it’s hard to find ways in,” Kurtz said. VFA levels the playing field when it comes to hiring. Since 2011, VFA has placed more than 500 fellows at 200-plus companies in 17 cities. Those startups have in turn created more than 2,000 jobs. Generally, participating companies need to be financially stable enough to pay for a VFA fellow’s salary and benefits. Most are in the range of 3 to 10 years old, Kurtz said. But there’s no hard cap—a Boeing unit, for example, has hired Venture for America fellows. And participating companies aren’t required to be in a particular field or industry, Kurtz said. “Our goal at Venture for America is to put more of our young people in a position to contribute to economic development in American cities and communities,” said Andrew Yang, founder and CEO of Venture for America. “Kansas City is a natural choice for expansion as it has tremendous assets and entrepreneurs as well as exciting growth companies. We are thrilled to partner with the Kauffman Foundation to bring bright and talented college graduates to the City of Fountains.” Is your company interested in hiring a Venture for America fellow? Contact Tom Griffin at tom@ventureforamerica.org. SMART COMPANIES THINKING BIGGER®
21
FEATURE STORY
WHAT CAN WE
EXPECT 2017? FROM
22
THINKING BIGGER BUSINESS // January 2017
A Donald Trump might just be the most unpredictable president we’ve ever had. But here’s what the experts think we could see in small business policy. by James Hart
As a rule, business owners don’t like being surprised, especially when it comes to government regulation and public policy. So it should be interesting to see how the nation’s small businesses do under the most surprising, most unconventional president ever. Backed by a GOP-led Congress, incoming President Donald Trump could have the power to make big moves on health care, taxes, workplace rules and other areas that are critical to small businesses. Thinking Bigger Business spoke with the experts to see what kinds of issues are likely to emerge in the coming months. While there’s the opportunity for negative disruption, some of the shifts, if they happen, could be positive for small business owners. “I think there is a perception—whether it’s reality or not—that there will be a more business-friendly environment in place after 2016,” said Daniel Kjergaard, lead managing director at CBIZ MHM in Kansas City. Curious about what’s ahead? Here’s some of what we could see. TAX REFORM
There’s a good chance that U.S. corporate income tax rates—among the highest in the world—will be cut during the first half of 2017, according to Dan Heckman, a Kansas City-based national investment consultant with U.S. Bank. Some officials have floated a top rate of 15 percent, but it’s unlikely to fall that far, Heckman said. A top rate of 20 to 25 percent is more likely, and that’s still substantially lower than where things stand now. SMART COMPANIES THINKING BIGGER®
23
FEATURE STORY
“It does give the business community a great deal of confidence, including people who may have been holding back on expanding their business,” Heckman said. CBIZ’s Kjergaard said these reductions might also be applied to LLCs and S-corporations that are popular with small businesses. It’s possible an additional tax on cash distributed from the business could be imposed, though, said Sarah Schiltz, a manager at accounting firm MarksNelson. During the campaign, Trump argued for cuts in personal income tax rates, including shrinking the number of brackets. Heckman doubts this type of reform will happen in the near term. And when it does, any reduction could come at the cost of deductions and exemptions. “You may not get as much relief on your absolute tax bill,” he said. Kjergaard expects corporate, personal and Alternative Minimum Tax rates to go down, though, at this point, it appears unlikely there will be a reduction in taxes on capital gains. Kjergaard thinks there’s a good chance there will be some form of “amnesty” that allows U.S. companies to repatriate money they made and hold overseas to the United States and be taxed at a much lower tax rate than what is currently in place. U.S. SUPREME COURT
“Trump’s going to have at least one vacancy to fill immediately,” said attorney Jim Holland, regional managing partner for Fisher Phillips’ Kansas City office. “Assuming he fills it with one of the people from the list he has already provided, that will restore the conservative control of the court.” Looking ahead, Trump might have the opportunity to make more appointments during his first term. Three of the justices—Stephen Breyer, Ruth Bader Ginsburg and Anthony Kennedy—are all in their late 70s or early 80s. “All three of those judges are liberals or moderates, so if one of them steps down, either voluntarily or for health reasons, it’s very likely that Trump would appoint another conservative to take their spot,” Holland said. This matters because the thorniest legal issues for employers tend to end up before the Supreme Court. For example, look at arbitration agreements, which are coming under increasing legal 24 THINKING BIGGER BUSINESS // January 2017
attack, Holland said. These agreements can help prevent class-action suits and require workers to go through arbitration instead of seeking relief in the courts first. If or when the issue rises to the highest levels, a conservative-led Supreme Court would be more likely to back employers. HEALTH CARE
The Affordable Care Act is being considered for repeal. In fact, Senate Majority Leader Mitch McConnell said it would be Congress’ very first order of business. Some Republicans have suggested they might repeal the law, but leave it in place for the
next three years, until a replacement law can be passed. Many business owners won’t be sorry to see the ACA go, but the “dismount” could be dangerous. America’s Health Insurance Plans, an industry group, said its members could pull out of the state insurance exchanges as soon as they can, if the federal government cuts off support for low-income customers who buy coverage through the exchanges. Meanwhile, the American Hospital Association and the Federation of American Hospitals released a report showing their members could take a hit of at least
WHAT TO EXPECT IN KANSAS The Sunflower State’s continuing budget problems will take priority in the new legislative session. The state faces a budget shortfall of nearly $350 million for the current year, with a $600 million deficit forecast for the fiscal year beginning this summer. There’s growing talk of modifying or killing the law that essentially eliminated state income tax for many small business owners with LLCs. Public support of a repeal is growing, and the election of more Democrats and moderate Republicans to the statehouse could make it more likely. Resolving the state’s budget woes could free up money for programs that encourage startups and entrepreneurs, said Melissa Roberts, vice president of communications and outreach for the Enterprise Center in Johnson County. Case in point? Kansas has a lottery-funded Economic Development Initiatives Fund. It’s used for innovation support, rural economic development and other pro-business efforts. But right now, the bulk of its money is swept into the state’s general fund. If more funding were available, Roberts said, Kansas might be able to pay for, say, training that helps entrepreneurs compete for federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants. “Without that funding in the bank,” Roberts said, “you can’t even start the conversation around what other kind of support programs we could create or what kind of assistance we could provide.”
$165.8 billion if Congress repealed but failed to replace the health care law. Trump has said he wants to preserve the popular parts of the Affordable Care Act, such as the rule that prevents insurers from denying coverage to customers with preexisting conditions, or the ability of adult children to stay on their parents’ plans until turning 26. Nobody has explained how those measures could be supported without the individual mandate, which requires most Americans to buy insurance or pay a fine. And that’s not getting into possible reform or privatization of Medicare—a priority for
House Speaker Paul Ryan, but something that Trump argued against during the campaign. IMMIGRATION
Fighting illegal immigration was one of Trump’s signature issues during the election. That could lead the incoming president to order more workplace enforcement actions by immigration officials, something business owners traditionally aren’t enthusiastic to see, Holland said. Trump also ran on requiring employers to participate in the E-Verify system, which companies use to check a job applicant’s eligibility to work in the United States. “So that’s
something we’ll probably end up seeing,” Holland said. The White House could run into pushback from businesses specializing in technology, bioscience and other fields that rely on highskilled immigration. Advocates for entrepreneurship also argue it’s in the country’s long-term interest to make it easier for immigrants to start companies here. According to the National Foundation for American Policy, immigrants were founders or key members of half of the country’s billion-dollar startups. “There’s a lot of uncertainty on immigration policy,” said Melissa Roberts, vice president of communications and outreach for the Enterprise Center in Johnson County, “and that really impacts the entrepreneurial world.” WORKPLACE ISSUES
WHAT TO EXPECT IN MISSOURI 2017 might be the year that a right-to-work bill becomes law in Missouri. Opponents say right-to-work could cripple labor unions and ultimately hurt the earning power of working-class families. Supporters argue those fears are overblown. Unions that do a good job of training, supporting and serving their membership would still survive under right-towork, they say. “The big advantage to right-to-work is really in our ability to advertise Missouri as a right-to-work state,” said Ray McCarty, president and CEO of Associated Industries of Missouri, a leading business organization. Many manufacturers, he said, will only consider right-to-work states when they’re locating their plants. AIM and other business groups also plan to campaign for tort reform this year. Right now, plaintiffs prefer to sue employers in Missouri’s state courts because, unlike at the federal level, there are no caps on punitive damages. Several cases have ended in million-dollar judgments against business owners. Business leaders also want to change how workplace discrimination cases are tried. In Missouri state courts, plaintiffs need to prove that employers knew the employee was a member of a protected class and that fact was a “contributing” factor toward dismissal. The federal courts use a harder-to-meet standard; plaintiffs must prove discrimination was the “motivating” factor. “In state court,” McCarty said, “the standard of proof is so low.”
In August, in response to legislation passed by Congress, the Occupational Safety and Health Administration raised its maximum penalties for most violations from $7,000 to $12,471, an increase of 78 percent. The price for willful or repeated violations increased from $70,000 to $124,709. Starting in 2017, OSHA also will require employers to submit electronic reports on worker injuries and illnesses, which will become part of a publicly searchable database. Trump opposed both changes, Holland said, so it’s possible his administration would seek to reverse or delay them. There’s also the chance that the National Labor Relations Board, which was more active under President Obama, could pull back. But the seats on the board are fixed, and the more liberal members won’t exit until 2018 or 2019, Holland said. “Certainly, as people that represent employers, we are being cautiously optimistic,” he said. “If President Trump acts like Candidate Trump, then I think it will be a good day for employers over the next several years.” James Hart is managing editor of Thinking Bigger Business Media. (913) 432-6690 // jhart@ithinkbigger.com SMART COMPANIES THINKING BIGGER®
25
POISED FOR RAPID GROWTH CEO Don Peterson says Infusion Express could hit $25 million in revenue this year.
26 THINKING BIGGER BUSINESS // January 2017
KC ENTREPRENEUR
IV therapy provider Infusion Express has its sights set on national expansion.
IV, COVERED ENTREPRENEUR
Don Peterson C O M PA N Y I N F O R M AT I O N
Infusion Express 13340 Metcalf Ave. Overland Park, KS 66213 (913) 948-2020 www.infusionexpress.com TYPE OF BUSINESS
Infusion therapy centers YEAR FOUNDED
2012 E M P L OY E E S
30 K E YS T O S U C C E S S
“ We are building a lasting organization … and running it efficiently.” —CEO Don Peterson
left // Janet Ink, VP of operations;
Chris Ford, co-founder and board member; Don Peterson, founder and CEO; Audrey Masoner, VP of strategic business development
F
or those who suffer with chronic health issues that require infusion therapy, spending hours to receive treatment can be daunting. A patient might be stuck for hours in the sterile, cold environment of a hospital or a doctor’s office, stranded away from work or the comfort of home. Today, one Kansas City area company is offering another option, one that makes treatment a more pleasant experience. Infusion Express provides intravenous drug treatment for people dealing with such conditions as Crohn’s disease, lupus, multiple sclerosis, rheumatoid arthritis and other autoimmune diseases— but in a unique setting, CEO Don Peterson said. “We operate in a spa-like environment,” he said. “We’re more like a drive-up retail space than a hospital.” Therapy rooms are decorated in neutral, soothing colors with comfortable leather recliners for patients to use during treatment. Rooms have large flat-screen televisions that patients can watch, helping them relax during treatments that can take anywhere from two hours to all day to complete. For those patients who feel they
can’t be away from the office, Infusion Express has rooms with desks, chairs and printers so they can get work done during treatment. “We have a space where they can bring other family members with them during treatment, which is generally not allowed in the other settings,” Peterson said. “We try to make it possible to come later in the day or evening or on Saturday. People tend to go to a hospital or doctors’ offices for these infusions, and they are generally not open evenings or weekends.” Registered nurses staff Infusion Express, and nurse practitioners with physician supervisors are on hand to make sure the highest standards are followed during treatment. (Currently, the company does not provide chemotherapy.) In addition, Infusion Express works with every insurance company in the area. “We need to because the average charge for infusion is upwards of $5,000 a month,” Peterson said. Each week, Infusion Express’s three Kansas City area locations see about 100 patients combined. The company has five additional locations outside of Kansas City, including
by Ruth Baum Bigus // photography by Dan Videtich SMART COMPANIES THINKING BIGGER®
27
the San Francisco area, the Chicago metro and the suburbs of Philadelphia. The potential market is huge. According to Peterson, about 6 to 8 percent of the U.S. population have medical conditions like the ones that Infusion Express addresses. Of that group, about 25 to 33 percent need IV therapy. ‘I REALIZED THERE WAS A BIG GAP’
Peterson brings a wealth of business experience to Infusion Express. His resume includes time with AMD, one of the world’s leading producers of computer processors. He started his own company, DeskStation Technology, which made high-speed-graphics computers for the scientific and entertainment markets. It was later sold to Samsung. In 2012, Peterson teamed up with Chris Ford and Dr. Robert Newth to launch Infusion Express. Ford is the CEO of Physician Management Partners, which offers risk management and consulting services to independent physicians, and Newth is a radiologist with Alliance Radiology. Both men are also on the board of Spec*KC, a local network of independent specialty physicians. Newth is board chair. Peterson himself was no stranger to the health care field. He was chief operations officer for a nationwide cardiac imaging company for a few years, then consulted on imaging centers from 2009 to 2012. The idea for Infusion Express germinated while Peterson was working with a medical practice going through a merger. “They were doing some infusions for a few patients with Crohn’s disease … and for a large majority of their patients, the doctors didn’t know if and where they were going for their
infusions,” Peterson said. “I found that disconcerting that the doctors didn’t know whether the patients were getting treatments. Once I understood this situation, I realized there was a big gap.” In many cases, patients go to hospitals for infusions—treatments that can be quite costly. “We thought if we created a service at lower rates than hospitals, we could provide a service for those who didn’t think there
28 THINKING BIGGER BUSINESS // January 2017
“We want to have 40 locations by 2019. We expect to become the national brand leader in the next five years. We intend to be the category leader.” Don Peterson // owner, Infusion Express
was anywhere else to go but a hospital,” he said. Peterson and his partners discussed the idea, looked at the long-term prospects for success and decided to move forward.
“We put our money together for our first location and decided to see how we could do,” he said. “We soon realized the gap in the marketplace. It was much bigger, and so we opened the Overland
Park location” using $250,000 from angel investors to do so, Peterson said. By the middle of 2015, another angel investor came in with $1.2 million, which the partners earmarked for expansion outside of the Kansas City area. Raising funds locally has been an early challenge, Peterson said. “Let me say this first: I love KC and its people,” he said. “Raising our children here was the best decision we ever made. That said, KC is a very difficult place to start and grow a company. Although there are a growing number of
support services and prospective One shot in the arm for investors, as a city KC still lags the Infusion Express is its direct pronation in such support.” vider agreement with Cerner to deliver this kind of treatment for ‘WE EXPECT TO BE THE the corporation’s employees. NATIONAL BRAND LEADER’ It was Ford who connected Patients come to Infusion Infusion Express to Cerner. He Express primarily by physiwas talking to the company about cian referral. Spec*KC, and when Cerner rep“Our effort is calling on those resentatives mentioned they were prescribers,” Peterson said. also interested in ways to save on “Pharmaceutical reps have been very helpful in identifying patients, their pharmacy costs, it was natural to bring up Infusion Express. and insurance companies have “They saw the value in our offerbeen helpful because it helps contain costs. They have case man- ing and wanted it for their many agement staff who will help guide associates who would benefit from people in our direction.” our services,” Peterson said.
Infusion Express has reported strong gains since opening for business. Peterson said its growth rate month over month has been 11 percent and about 25 percent quarter over quarter. “Last quarter, we did $3 million in revenue … and we should finish 2016 over $10 million,” he said. There are more than 1,000 active patients in the Kansas City area alone. “(In 2017) we could top $25 million. And we are not stopping there,” Peterson said. “We want to have 40 locations by 2019 in every major city in the country…. We expect to become the national brand leader in the next five years. We intend to be the category leader. We anticipate 2020-2021 revenue will be over a half billion (dollars).” Peterson said one reason for this strong growth pattern is Infusion Express is filling a gap in the marketplace for the kind of service it provides. There are other reasons, as well. “We turn inventory fast, and we keep no more than nine days’ supply on hand,” Peterson said. “We file claims as patients leave the building and collect within 20 days.” Infusion Express is benefiting from lessons that Peterson gained from his earlier startup experiences. “I learned during the first one about some of the pitfalls,” he said. “We knew (with this) we had to operate very efficiently and run it unlike other health care practices are run.” Peterson has some advice for other entrepreneurs. “There is a big difference between an inventor and an innovator,” Peterson said. “What I see a lot of entrepreneurs focus on is the product, but it is more about building a sustainable business.” Ruth Baum Bigus is a freelance writer based in Kansas City. SMART COMPANIES THINKING BIGGER®
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30 WWW.SMARTCOMPANIESRADIO.COM THINKING BIGGER BUSINESS // January 2017
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BIGGER | health S M A R T
( by James Hart )
S T R AT E G I E S
Workers could go out and buy their own insurance, using the employer’s contribution to bring the cost down. Unfortunately, stand-alone HRAs became unsustainable for many employers as a result of the Affordable Care Act (ACA). If an HRA wasn’t paired with an ACA-compliant health plan, employers were subject to a $100-perday excise tax per participant—$36,500 per employee per year. But now? The 21st Century Cures Act does away with that tax for companies with fewer than 50 full-time employees or equivalents. If these smaller employers want to offer qualified small business HRAs, however, they must comply with a few guidelines. Among the most important rules: » The employer can’t offer any other health plan coverage to its employees. » Reimbursement is capped at $4,950 annually for individual employees or $10,000 for family coverage. Those amounts will be indexed to inflation. » If a company decides to offer a qualified HRA, the benefit must be open to all employees, except … • part-time or seasonal help • employees who have been with the business less than 90 days
Another Option for Small Business Health Coverage The 21st Century Cures Act makes stand-alone HRAs a possibility again for small businesses.
B
ecause of new legislation, the country’s smallest employers have another option for helping their workers pay for health insurance and medical expenses. It’s thanks to the 21st Century Cures Act, which Congress passed and President Obama signed last month. The omnibus bill dealt with several issues, but for small employers, the most important might be the federal government’s new
approach to health reimbursement arrangements (HRAs). Under an HRA, an employer can provide pretax dollars to reimburse employees for the cost of health insurance premiums and certain out-of-pocket medical expenses. “Stand-alone” HRAs used to be popular with smaller companies that couldn’t support a sponsored health plan, but still wanted to help employees pay for coverage.
• those younger than age 25 • union members » Generally, all full-time employees are offered the same level of reimbursement, though older employees or those with more family members on their coverage could receive more. » The HRAs are funded by the employer only, not through employee payroll deductions. It’s not clear how the new HRA rule will affect the health care market—which could be facing much bigger shifts if the new president and Congress follow through on their promise to repeal the Affordable Care Act. But, in its analysis, the Society for Human Resource Management quoted a professor who noted the new rules might incentivize small employers—more than half of which offer health plans—to end their company coverage and create standalone HRAs instead. SMART COMPANIES THINKING BIGGER®
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BIGGER | finance S M A R T
( by Sheila Seck )
S T R AT E G I E S
Is an ESOP Right for Your Company? These plans can reward employees and help owners prepare for an exit.
E
mployee Stock Ownership Plans, or ESOPs, are a popular way for business owners to transition the company’s ownership to its employees.
32 THINKING BIGGER BUSINESS // January 2017
An ESOP is also a retirement plan that allows employees to get tax benefits that are not available in other buy-sell structures. An ESOP … » lets employees participate in the company’s success » aligns employee and company goals » allows the business owner to transition out of the company without finding a third-party buyer
How an ESOP Operates An ESOP operates through a trust set up by the company that allows employees to use tax-deductible contributions from the company to purchase the company stock or the company can contribute new shares of stock on the employees’ behalf. The company stock is distributed to individual employee accounts within the trust. The contributions given to each employee are based on that employee’s salary, tenure and position in the company. Generally, all full-time employees over age 21 are eligible to participate in the plan, and contributions can vest over certain periods of time ranging from three to six years. Employees receive the vested portion of their accounts at either termination, disability, death or retirement.
An ESOP could be the exit strategy you need. It creates a benefit for employees and a market for your company’s stock.
not profitable, an ESOP may not make sense. 5
You want the tax benefits. Contributions to an ESOP can be tax-deductible, and some shareholders may be eligible for a tax-free rollover of the sale proceeds. Additionally, the company may reduce corporate income tax and increase cash flow by issuing stock into the ESOP.
ESOPs do have limitations. They are complicated and have compliance obligations. You can only use an ESOP in C- or S-corporations, not partnerships or most professional corporations. Also, because private companies must repurchase a departing employee’s shares, companies may face a major future expense if several employees quit or retire at the same time. Finally, setting up an ESOP is expensive even for a simple plan. ESOP First Steps If you decide an ESOP may be a good option for your company, you will want to consider the following steps: 1
Is an ESOP for You? An ESOP may be a great fit for your company if you have some or all of the following characteristics: 1
2 3
4
You want to sell to employees. Selling company stock to employees gives an owner an exit strategy that allows employees to own the business on the owner’s exit.
2
3
You want to reward your employees. You want to supplement the company’s 401(k) plan. The company is profitable. If your company is profitable, an ESOP will be advantageous from a tax perspective, because the company will reduce its taxable earnings by the amount used to fund the ESOP. If your company is
4
5
Determine if the company has a need for an ESOP. Do the owners want to transition ownership to employees? Do employees want to eventually succeed the current owners in management roles? Conduct a feasibility study and valuation. Work to determine the value of your company’s equity by either hiring a consultant or using internal resources. You will have to consider the financial impact of the required contributions you must make into the trust. Hire an ESOP adviser. This adviser or attorney will draft the ESOP plan to be submitted to the IRS. Obtain funding for the plan. The ESOP can fund the plan through company contributions, borrowed money or funds generated from other investments. Develop a process to operate the plan. You must appoint a trustee to oversee the plan. The trustee doesn’t have to be
a company employee. The trustee must communicate how the plan works to employees. ESOP Alternatives If an ESOP isn’t ideal for you, you can achieve your goals in other ways. If your goal is to incentivize employees, you can institute a profit-sharing plan, offer stock options or grant phantom stock. Alternatively, if your goal is to develop a succession plan, you can sell to key employees outside an ESOP, or you can sell to a third-party buyer when the time is right. The Bottom Line An ESOP can be the perfect exit strategy for your company. It creates a benefit for employees and a market for your company’s stock. An ESOP allows you to sell your business gradually, instead of exiting suddenly after selling to a third party. If you decide to establish an ESOP, you will need to hire a valuation expert, a trustee and an experienced attorney or consultant who can set up the ESOP in compliance with IRS rules and regulations. BY THE NUMBERS
7,000 ESOPs in operation in the United States
13.5 Million employees participate in ESOPs SOURCE // National Center for Employee Ownership
Attorney Sheila Seck is the managing partner at Seck & Associates, an Overland Park-based law firm that specializes in helping entrepreneurs navigate change. (913) 815-8481 // www.seckassociates.com SMART COMPANIES THINKING BIGGER®
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BIGGER | hr S M A R T
( by Belinda Waggoner )
S T R AT E G I E S
Are You Ready to Hire a COO? No pressure—it’s only your most important hire ever. How to get it right.
T
he process of hiring a chief operating officer has been written about a lot, but with all the information out there, we beg you not to blindly follow the herd. Every entrepreneur interprets his or her wants and needs differently. Following someone else’s protocol for hiring a COO can go terribly wrong. Make sure you find the right person for your company. First, Do You Need a COO? It’s a simple question with a lot of different answers. Some of the most common situations that we encounter: » You’re the visionary, but you may not know how to run a company well enough for growth, and the execution stuff bores you. » You’re about to scale up, and the operational expertise you need to be successful isn’t in your wheelhouse or that of your team. » You’re tired—that’s right, tired. At some point, the thrill of starting up is replaced with the day-in, day-out monotony of running the least favorite parts of your business. You’re craving the crack effect of building something new. You know who you are. What Do You Need? We often get calls from entrepreneurs who want help with placing a COO. We’ll ask them what COO means to them, and they’ll reply “someone to run my company.” That isn’t the wrong answer, but it isn’t enough of an answer. » You might be tired, but be realistic about walking away from your business. Even if you’re toast, in reality you can’t walk away from it. You shouldn’t step back until you’re sure your COO hire is truly your business whisperer.
34 THINKING BIGGER BUSINESS // January 2017
» What parts of the business do you want to continue to control? You probably have unique strengths, areas where you’re the go-to person for ideas. Those ideas could be the lifeblood of the business. » What operational areas of the business are you terrible at or, worse, hate to do? Be honest. You’re hurting the business if you aren’t. You’re hiring this role to not
only close the gap in your skills, but your ideal team also. And note the subtle way we use “ideal.” You need to know what skills each of your ideal leaders need to have to make sure you can get where you’re going. Don’t hire a COO who is strong in one area because you need them to cover for a weaker leader in another department. Take time to map it all out. A new COO is going
to want to know exactly what his or her areas of responsibility are. Get help if you need, but make sure both of you are on the same page before you hire.
Fuel” by Gino Wickman and Mark C. Winters is a great place to start.
» Really get to know your candidates, talk to them frequently, and build rapport before hiring them. We often ask entrepreneurs if they would have proposed to their spouses after visiting over one or two coffee interviews. Why’s this different?
How Not to Hire When we talk to entrepreneurs about their past hires, I often hear things like “they seemed like a nice person” or “they had all the right experience”— but that isn’t enough.
» Smart entrepreneurs make time to read about the traits of excellent hires—and we know you read. The book “Rocket
» Don’t hire someone because you like them. It feels ridiculous writing this, but it’s true.
» Don’t skimp on the salary. Incentive compensation is always a good idea in these situations, but not at the expense of a below-market base salary. If you can’t afford market-range salaries, you’re not ready to hire this critical role. » And this is huge: Don’t hire someone purely based on experience. Just because they were COO of the “Great Big XYZ Company” doesn’t mean they can do it for you. If you hire a seasoned corporate operations exec, make sure they speak the language of startup and scale-up, your personal language and the language of the culture you’re creating. If there’s one fail we see more often than not, it’s this—hiring corporate experience doesn’t work without fit. If you can’t figure it out, get help. Avoid Mistakes Bad hires are one of the biggest expenses a business faces, and a misfire at the COO level is one of the worst. Follow a few established protocols up front, and you’ll be headed for success in this new relationship. » Spend time teaching your new COO your philosophies. Help them learn how the business operates in its current state, and share your goals and ideas for the future so both of you have the same goals, expectations, beliefs and values. » Don’t micromanage. Making sure you’re there as a guiding and teaching hand is much different from undermining your new COO’s authority with the team. » Don’t pack your things and leave. You two need one another to make this thing work. Invest yourself in this relationship. It’s important even if you’ve had enough. The yin-and-yang relationship does exist, but you have to be intentional in executing a successful hire. If you get this hire right, maybe you can leave the boredom of business behind forever. Belinda Waggoner is the president and founder of People People, the company that helps entrepreneurs with the people in their business. (913) 940-5391 // www.peoplepeopleus.com SMART COMPANIES THINKING BIGGER®
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BIGGER | growth S M A R T
( by Kelly Tyler Byrnes )
S T R AT E G I E S
Renewal Notice It’s not enough to prepare for the worst. Resilient companies also know how to reinvent themselves.
U
sually, when business leaders think about corporate resilience, they think about operational resilience (OR)—the ability to respond to emergencies. OR is critically important, but it doesn’t really give them a sustainable competitive advantage. To continue growing, companies also need the second component of corporate resilience: strategic resilience (SR).
36 THINKING BIGGER BUSINESS // January 2017
Whereas OR is situational, SR is a continuous renewal sparked by opportunity, instead of by episodic turbulence. As changes accelerate in your industry or market, the evolution of your strategy should accelerate, too. As Gary Hamel, a world-renowned management educator, and his co-author, management professor Liisa Välikangas,
wrote in Harvard Business Review, “To thrive in turbulent times, companies must become as efficient at renewal as they are at producing their products and services.” How to Evolve Faster The ability to evolve at an accelerated pace comes from the five phases of strategic resilience: Awareness // It starts by taking a closer look at external and internal factors. Internally, you need an honest assessment of the underlying assumptions and biases that guide your strategic decisions and collaboration. Are you investing in product lines that you know have diminishing returns? Are you married to legacy strategies that no longer make sense? Externally, you need to seek out and recognize market disruptions early. If you rely
on clients to tell you what they want, you will miss opportunities. You can speed the time it takes to go from, “Oh no, that can’t be happening!” to “Let’s go!” by recognizing changed circumstances and strategic decay quickly.
Every year, you also should make time to assess how your OR and SR practices are working for you. Are you creating positive change for your company? Or are you wasting time on minutia and subjecting your team to a state of perpetual reorganization?
Strategic Alternatives // Come up with options before you need them. What kinds of new products, new pricing strategies or new marketing positions could you introduce? There are several different ways you can identify these alternatives: brainstorming sessions, innovation process audits or even a budget review. Preparing strategic options in advance will dramatically speed up your response time when “turbulence” eventually strikes. It’ll also have a positive impact on your leadership, engagement and morale.
Why It Matters Nokia’s sale of its smartphone division to Microsoft in 2013 perfectly illustrates why corporate resilience is so crucial. At the end of his speech announcing the sale, Nokia CEO Stephen Elop tearfully said, “We didn’t do anything wrong, but somehow, we lost.” After uttering those words, he and his management team shed tears. Although the CEO and his team were bewildered, others were able to see clearly what they did wrong: Nokia did not evolve as quickly as the market did. Prior to the first iPhone, half of the world’s mobile phones were from Nokia. Within a few
Resource Allocation // Once you identify
years, their share was less than 3 percent. The competitors changed quickly, and Nokia did not keep up. Nokia missed the changes happening, and by not changing itself, the division lost its chance to make big bucks and to survive at all. Big businesses like Nokia overlook changes because they get blinded by their size, as if their size means they are invincible. Small businesses get blinded by their success, as if it will self-perpetuate. No one is invincible, and success is not guaranteed. Clients are executing faster, expanding their knowledge faster and communicating faster. And so are your competitors. The companies that are best able to predict, observe and respond to changes will outperform their competitors. Kelly Tyler Byrnes leads the team at Voyage Consulting Group. She’ll present a Jan. 24 workshop on creating a systematic framework for growth at JCCC; learn more at www.kansassbdc.net/gameksbdc-game-dates. (816) 744-0701 // kellyb@voyagecg.com // www.voyagecg.com // @kellytyler
strategic alternatives, dedicate a responsible amount of money, time and talent to them. Do not invest only in new ventures. You should also devote resources to known opportunities that are still successful, so your company can keep up with and outperform competitors. A review of talent management practices can help ensure you have the right resources available for strategic changes. For example, how long does it take to reassign staff from one project to another? Does your hiring process support innovation? Governance // Small business leaders are used to working quickly—a trait that’s essential when evolving strategically. But you also should instill some governance practices to help ensure that your faster pace doesn’t cause a loss of focus, missed market changes or erroneous priorities. You could create an advisory board that consults on your strategy. (Or update how an existing board uses its time.) You could work with a consultant to establish an Enterprise Risk Management process or to audit your operations. Renewal // The purpose of strategic resilience is a continuous strategic response to trends.
Join us for our January Speaker Series Lunch
“Why Your Accountant Should Be Your Best Friend.” Guest Speaker - Amy Goode From Meridian Business Services
Tuesday, January 24, 2017
11:30 AM – 1:00 PM
McCormick & Schmick’s - Country Club Plaza FOR MORE INFORMATION VISIT:
NAWBO KC
NAWBOKC.ORG
SMART COMPANIES THINKING BIGGER®
37
BIGGER | sales S M A R T
( by Mike Montague )
S T R AT E G I E S
The Best Way to Get Rid of a Bomb Why it’s better to raise (and address) potential problems before a prospective buyer notices them.
H
ave you ever lost a sale because of a problem you could have and probably should have dealt with earlier in the sales
38 THINKING BIGGER BUSINESS // January 2017
process? Have you ever lost a customer because you waited too long to tell them about a delay or defect? If you know a
problem is going to blow up in your face, defuse it now. In sales, it is often better if you bring up the issue before the prospect does. It builds trust, saves time and relieves stress for both parties. Sometimes, salespeople stress themselves out by refusing to tell a prospect or client bad news. Other times, they are afraid to lose the sale by telling a prospect no to an unreasonable demand. Don’t let the fear of looking bad or losing momentum stop you from addressing the most important issues. The best way to deliver bad news is quickly and gently. Don’t make the problem worse by waiting for the bomb to blow up. Instead, simply ask in a nurturing tone if
Bringing the problem up yourself makes it easier for you to deal with the potential objections. Ignoring the issues is not going to make your delivery time any faster. However, because you raised the issues, you have the opportunity to find a solution. Maybe they don’t need your product on day one of the project, or maybe you can find a replacement part. Maybe walking away from the deal saves you both time and money. Once you get comfortable defusing bombs, you can apply this technique early in all your sales calls by following these steps: 1
you can share some unpleasant news. It might sound something like this. You: Jill, I looked into
the delivery times you wanted, and I have some bad news. Can we talk about it? Prospect: Sure. You: You mentioned
that you need the product by Feb. 1, and it looks like we can’t get it in until the 15th. Is that going to be a problem? Prospect: I am afraid it will. We have a project starting on the first of the month.
Think about the top three objections, problems or roadblocks that you encounter on a regular basis.
2
Develop questions to “test the waters” to see if these are important issues to each prospect and to assess the likelihood these bombs will explode.
3
Brainstorm with your team about potential solutions or workarounds for these situations.
Kansas City SCORE
4747 Troost Ave., Suite 101 Kansas City, MO 64110 https://kansascity.score.org/ 816-235-6675
When you take a step back and look at the situation objectively, you will see that you can’t lose anything you don’t have in the first place. If there is a potential deal breaker, it is in both parties’ best interest to get it out on the table. The sooner you qualify or disqualify the opportunity, the better. You will save time, money and energy in pursuing real opportunities instead of fictional pipe dreams. If financing, terms, inventory status or delivery times are going to kill the deal, and they are immovable roadblocks, then it is best to go ahead and disqualify the opportunity. Intentionally ending an opportunity can be tough, but so is pursuing an opportunity that you have no chance of winning. By learning how to defuse bombs before they blow up, you will gain more time, more trust and more sales.
You: Do you want to talk about possible solu-
Mike Montague is the director of content marketing for Sandler Systems Inc.
tions, or will we have to pass on this one?
mike.montague@sandler.com // www.sandler.com SMART COMPANIES THINKING BIGGER®
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BIGGER | tech S M A R T
( by Mike Jackson )
S T R AT E G I E S
whether you’re using a Windows operating system or a Mac. Either way, you could also just drag and drop the files onto your desktop. Alternatively, you may want to check other locations for the file. Is the file anywhere in your email? Did you save it to an external memory? Is it actually right where it’s supposed to be, but somehow you didn’t see it the first time? That last one happens to me all the time when I’m looking for the ketchup in my fridge. My eyes just skip right over it, I guess. Deleted Files Aren’t Immediately Erased From Your Hard Drive If your files were recently deleted, there’s still a great chance you can recover them. When Windows deletes a file from the hard drive, it doesn’t immediately erase the data. The Master File Table is simply altered so that the areas of the disk that were previously occupied by that file are now marked as reusable, and subsequent data may overwrite the deleted file. The deleted files may be excavated by digging into the Master File Table, as long as the data has not yet been overwritten.
How Do I Recover My Lost Data? Just had an “oh no” moment? Hope might not be lost.
W
e’ve all had that “oh no” moment before. You just added the finishing touches to a weeklong project, and you could have sworn you saved, but the file is nowhere to be found. Then you begin to sweat profusely, and hastily devise a backup plan to fake your own death to avoid repercussions.
40 THINKING BIGGER BUSINESS // January 2017
But before you freak out, know that there may be a way to get your data back. First, Look in the Recycle Bin Hypothetically, if the lost items were in the trash or recycle bin, you could simply highlight those items, right-click and hit “restore file” or “put back” depending on
So How Do I Find These Lost Files? Well, you could have a professional computer mage perform his arcane magicks to retrieve the lost data through a summoning ritual, but that usually requires a (financial) sacrifice. Or you could download data-finding software. We recommend a free program called DiskDigger to scan your hard drive for all files that can be recovered. DiskDigger requires no installation, and works swiftly to present a list of the data you can retrieve. You might be surprised at the amount of stuff you can still find on your computer, which is why DiskDigger allows you to filter your results by name or file type. If none of those options work, you might just be out of luck, and we weep for your loss. There’s still a chance your cat might have simply renamed your files by jumping on the keyboard while swatting at your mouse, though. Cats love mice. Mike Jackson is president and CEO of Pendello Solutions, a Kansas City based company providing business technology management to small and medium-sized businesses. (913) 677-6744 // mjackson@pendello.com // www.pendello.com
BIGGER | marketing S M A R T
( by Kevin Oldham )
S T R AT E G I E S
8 Reasons Your Business Should Offer Subscriptions This time-tested pricing model could lift your revenue and customer base.
S
ubscription business models have been around for 460 years, dating back to 1556 when the government of Venice first published the monthly Notizie Scritte. This monthly publication cost one gazetta (a small coin) and customers have been attracted to the “pay as you use it” model ever since. Today, subscriptions and memberships surround us. Here are a few examples you may interact with daily: » Memberships: gyms and clubs » Subscriptions: magazines » Auto-renewal subscriptions: software companies » Installment hard contracts: mobile phones » Sunk money subscriptions: Bloomberg Terminals and Amazon Prime » Sunk money consumables: razor blades, Keurig refills What if you could be on the other side of the transaction? Mailbox money, or recurring revenue, in the form of subscription payments makes owning and managing a business so much more enjoyable. Here are eight reasons your business should offer a subscription or membership component:
Eliminate Marketing Investment Waste //
Many marketing campaigns can be costly and drive little value. Instead of wasting time and money on tactics that don’t work, focus on quantifiable marketing and member-subscriber engagement. Take what you know about your best customers and
embrace that knowledge when developing new offerings. Your market research will be easier, and marketing transforms into a math equation for clinical decision-making, not dart-throwing. Safeguard Against Flight Risks // It costs
two to 10 times more to acquire a new customer than it does to retain an existing one. Lock your customers in by delivering an insane value exchange that will keep them happy and part of your membership base. Ultimately, you want them to be your biggest source of referrals. Happy customers = organic growth. Even Out Demand // Would you like
to own a company with lumpy demand for your products and services—or would you rather have a nice, smooth demand curve? Playing mailbox roulette to see if checks have arrived is enough to send the most seasoned entrepreneur into a panic attack when cash flow tightens. Managing cash flow is easier with a less volatile, smooth demand curve. Expand Core Offering in Adjacent Product and Service Areas // Engaged customers
naturally become more involved in your business, which typically means an interest in other products and services that tie to their core membership. Use this to your advantage by upselling and cross-selling to your existing members. Automate Recurring Sales // Your members
are busy and don’t have time to keep track of every account that needs to be renewed. Don’t let them forget about you. Make it easy by automating your sales and renewal process. Your sales forecasting and tracking will be simplified as a result. Just don’t make it hard for them to cancel, please.
Increase Lifetime Value (LTV) // One of the
toughest business achievements is taking a customer from $0 to $25. But what if every year, you doubled that? That’s a huge achievement and one that will take your business to the next level. Set Your Company Up for Long-Term Success in Any Economic Environment //
Customers who see value in their subscription are inclined to remain loyal no matter the economic environment. The trickle-down result is business protection for you in any market. The lower installment payments your customers make to your company help keep you on their household budget or company P&L. Increase Your Company’s Value // You company’s value will be greatly increased by having repeat sales from loyal customers. Your recurring revenue line(s) allow investors or an acquirer to reduce risk in the transaction. Reduced risk warrants a higher valuation or sale price. Next Steps // Take a quick look at your bank
or credit card statement. Notice all of the following recurring payments you make every month: utilities, housing, transportation, tuition, entertainment, technology, communication, health and fitness … the list is endless. Is your company showing up regularly on customer bank statements? If not, write down two to three ideas right now that you can implement in the next four weeks. Kevin Oldham is the founder of Diffactory, a marketing and growth consultancy focused on e-commerce, licensing and subscriptions. (816) 287 -2010 // koldham@diffactory.com // www.diffactory.com SMART COMPANIES THINKING BIGGER®
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SCALEUP! KC
FORTIVITI
How Fortiviti Moved Forward SHAUNA HUNTINGTON LED HER COMPANY TO BIGGER GROWTH … BY CUTTING IT IN HALF. bout four years ago, Shauna Huntington made a bold choice: She decided to cut her business in half. Known today as Fortiviti, her company offers a suite of accounting and back-office functions to other small businesses. When Shauna started her business as a certified public accountant, she also provided assistance with taxes and other professional services. Huntington loves freeing clients from the chores they can’t stand, so they can pursue the work they love. “We handle all of the business side of doing business—the compliance and
A
42 THINKING BIGGER BUSINESS // January 2017
paperwork and accounting needed to run a business, so our clients can focus on growth,” she said. Eventually, Huntington realized she needed to take her own advice. Her tax practice was profitable—it supplied about half her revenue—but she disliked working on those jobs. So she chose to sell that side of the business. “It was a little scary the day after we signed the agreement,” she said. But her bet paid off. Her team is able to drill down on what they do best. By the end of 2014, Fortiviti had regained any ground it
lost in the sale, and revenues have continued to grow quickly ever since. The company’s employee head count roughly doubled in 2016. While the gains have been welcome, “it’s been very challenging,” Huntington said. “This year has been our most significant growth year from the standpoint of revenue and clients brought on board and team (members added).” Fortunately, Huntington isn’t doing it alone. Earlier this year, the Fortiviti founder was chosen for ScaleUP! Kansas City, an elite training program offered by the University of MissouriKansas City Innovation Center and the U.S. Small Business Administration.
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people who not only have the right technical skills, but who can also do account management—that is, be a consultant, not just an accountant. “I knew we needed to work on those areas,” she said, “but the Triage helped me to see that hiring and training were contributing to other pain points in our processes.” She’s now developing consistent, formal processes for hiring new employees and, once they’re on board, training them in Fortiviti’s core values and philosophy—teaching them the “why” behind the company. Traditional accountants often keep their heads down and focus strictly on the work in front of them. Fortiviti likes to hire people who also can “think like a business owner” and solve problems with clients—and possibly uncover issues the clients didn’t know they had. Finding great hires is “not usually about the skill,” Huntington said. “It’s about the culture and the attitude and the understanding of why we do it. We’re here to take care of the client, No. 1. That’s our ultimate goal.” MAKING THE CONNECTIONS
Over the course of four months, ScaleUP! participants are exposed to training, mentoring and roundtable sessions that push them to the next stage of business growth. “It’s a great program,” Huntington said, “especially for companies that are ready for that next level … but are really struggling to understand what they need.” ‘WE NEEDED TO WORK ON THOSE AREAS’
ScaleUP! Kansas City shows small businesses how they can increase their growth by resolving unaddressed issues in their operations. Entrepreneurs who participate in ScaleUP! Kansas City go through an exercise called Process Triage. Developed by local consultant Joseph Rosenberger, Process Triage helps identify inefficiencies that are hamstringing companies. For Huntington, the exercise highlighted the need to make sure she’s hiring terrific
When you’re running a company, it can be hard to get out of the office and network with your fellow entrepreneurs. For Huntington, one of the best things about ScaleUP! Kansas City was the opportunity to connect with other small business owners and learn from them. Her cohort included entrepreneurs who specialized in everything from coffee cakes to HVAC systems. On the surface, those businesses don’t sound like they have much in common. In reality, though, most of them had faced and overcome similar problems. The ScaleUP! participants were able to feel a little reassurance (“I’m not alone!”) while also getting ideas for solving those problems. A fellow entrepreneur, for example, told Huntington how he’s able to use Google AdWords to attract a huge number of customer leads. In addition, ScaleUP! Kansas City introduced Huntington to an array of free local entrepreneurship resources and other business connections. She met several area bankers, and she’s worked with them to help her clients with refinancing and other needs. Armed with the lessons and advice she gained from ScaleUP! Kansas City, Huntington is excited about the coming year—and thrilled to help her clients grow.
“We’re doing accounting because we know it needs to be done and we’re helping our clients, but we’re businesspeople first,” she said. “We’re a fresh approach to accounting.”
ENTREPRENEUR
Shauna Huntington COMPANY
Fortiviti 11249 Strang Line Road Lenexa, KS 66215 (913) 956-1207 info@fortiviti.com www.fortiviti.com WHAT’S IN A NAME
Fortiviti is a mashup of “fortitude” and “productivity.”
HOW SHE GOT STARTED
Huntington was working as a controller for a local staffing company when some friends were starting up an optometry practice. In her offhours, she assisted them with their accounting and other needs. “I realized there were probably a lot more people like them out there.” Less than six months later, Huntington’s sideline had become a full-fledged business.
NOT HER FIRST RODEO
Fortiviti isn’t Huntington’s first business. She started a dance studio in college.
ARE YOU READY TO SCALE UP?
ScaleUP! Kansas City is a free training program for growing small businesses. It helps companies that want to increase their annual revenue to more than $1 million. ScaleUP! is open to entrepreneurs whose companies …
» Have been in business at least two years » Generate $150,000 to $500,000 in annual revenue
» Are in markets capable of supporting $1 million or more in sales
SMART COMPANIES THINKING BIGGER®
43
BUILDING KANSAS CITY
Real Estate/Redevelopment
2017
SMALL, NIMBLE COMPANIES ARE REIMAGINING KC’S OLDEST STRUCTURES—AND MAKING NEW ECONOMIC GROWTH POSSIBLE.
The Innovation in Preservation y preserving its architectural past, find profitable new uses for older structhe Kansas City region is also creattures, Rosin said. ing a brighter economic future. Nationally, the Federal Historic Tax Just consider downtown Kansas City, Credit program—one of the biggest supports Missouri. Since 2003, more than $6.5 billion for historic restoration and redevelophas been reinvested in its infrastructure and ment—has led to more than $120.8 billion its buildings—including its older structures, in economic activity and helped create more many of which have been repurposed as than 2.4 million jobs since 1978, according in-demand apartments, thriving to researchers at Rutgers University. storefronts and office space. In Missouri, about As a result, downtown $211 million in rehab work feels more alive than it and 3,622 jobs were suphas in decades. ported by the federal tax “When you look credit during FY 2015. at downtown Kansas As far as rehab costs go, that’s about even with City today versus Illinois and only $20 15 years ago, everybody million behind California, recognizes it feels like a both of which have much very different place,” said E l iz abe t h R o s i n larger populations. Elizabeth Rosin, owner of In Kansas during that fiscal Rosin Preservation, a consultyear, there was $36.5 million in ing firm that specializes in rehab work supported by the federal tax historic preservation. credit, along with 662 jobs. The redevelopment activity extends beyond downtown, as entrepreneurs WHAT SMALL BUSINESSES have turned former school buildings into BRING TO THE TABLE coworking spaces (including Plexpod’s As so often happens, small businesses— Westport Commons project, one of the including architects, developers, preserlargest of its kind in the world) and apartvationists, contractors and others—have ments (such as Foutch Brothers’ work on served a central role in the redevelopment the West-Switzer school buildings on the of the United States’ older buildings. West Side). The Urban Land Institute, one of the A number of Kansas City’s suburbs are country’s leading voices in urban planning reinvesting in their older buildings, too. In and development, highlighted smaller, Lee’s Summit, Overland Park, Blue Springs more entrepreneurial developers in its and even small towns in outstate Missouri most recent “Emerging Trends in Real and Kansas, property owners continue to Estate” report.
B
44 THINKING BIGGER BUSINESS // January 2017
About 86.5 of all firms in the commercial property building industry have fewer than 20 employees. Among firms specializing in multifamily properties, small businesses make up 91 percent of that population. Smaller developers sometimes have a harder time accessing capital, but they’re more likely to spot smaller, more manageable “infill” opportunities. “Bigger is not always better,” the report stated. “Nimbleness and local knowledge are not commodities, and several factors
Helix Exterior // after
Helix Interior // before
Helix Exterior // before
Helix Interior // after
suggest that small and midsized developers have an increasingly significant role in the industry.” You can see the benefits of small business expertise right here in Kansas City. For example, Rosin and her team have helped developers secure historic tax credits that reduced the cost of refurbishing several older structures. With federal and state incentives, the discount can be as high as 45 percent, said Jay Tomlinson, principal and owner at Helix Architecture + Design.
And that’s good because these types of projects can be tricky. “Around the year 2000, we redoubled our efforts to focus on the urban core and have done about 60 renovations or adaptive-reuse projects in the downtown and Crossroads neighborhoods,” Tomlinson said. Helix has helped adapt older structures to new uses such as office, retail and dining. A prime example is Webster House, an 1885 school that now offers shopping and dining. Multifamily is another popular use:
Helix Architecture + Design has worked on several redevelopment projects in downtown KCMO and the Crossroads, and that includes its own HQ. (photos courtesy of Helix)
Helix worked on Gold Crown Properties’ recently opened East 9 at Pickwick Plaza, an apartment building that will house a new City Gym location. (Ages ago, the Pickwick was a hotel and bus terminal.) Redevelopment and adaptive-reuse projects are “never easy,” but the difficulty level varies from project to project, Tomlinson said. Part of the challenge is these buildings were constructed in a different era, continued on page 46 »
SMART COMPANIES THINKING BIGGER®
45
BUILDING KANSAS CITY
Real Estate/Redevelopment
2017
Webster House // before
Webster House // after
and often for a different purpose. Engaging experienced professionals to evaluate the building and devise a plan for reuse is critical to the success of historic renovations. “We’ve worked on buildings that were brought back from the jaws of death, to be a little dramatic,” Tomlinson said. Sunflower Development Group has a little experience with seemingly doomed buildings, too. A few years ago, Jason Swords and his team took on the former Cosby Hotel, one of downtown’s oldest buildings. The structure, originally built in the 1880s, was bound for demolition until Sunflower intervened. The restored 46 THINKING BIGGER BUSINESS // January 2017
structure is now home to the Milwaukee Delicatessen Co., Sasha’s Baking Co. and office suites. If it weren’t for the entrepreneurs who tackle these types of projects, Swords said, “you would see vacant blocks of downtown Kansas City right now.” ‘A VITAL PLACE AGAIN’
Redevelopers have taken buildings that were nearing the end of their economic life and made them productive again— potentially extending their usefulness for another 100 years, said Sean O’Byrne, vice president of business development at the Downtown Council.
Webster House // before
One of the biggest trends in downtown has been the repurposing of older, Class C office space into residential property. In 2003, approximately 2,000 people lived downtown, O’Byrne said. Today, the population is about 24,000. The goal is to attract another 20,000 people in the next 10 years. “We’re well on our way to that 40,000-resident mark,” he said. The Downtown Council has played a critical role in downtown’s resurgence. In 2003, for example, it created the Downtown Community Improvement District, whose teams of “ambassadors” give directions to visitors, pick up litter
The Cosby Hotel
The Cosby Hotel, one of KC’s oldest buildings, was revived by Sunflower Development Group with help from Rosin Preservation. (photo courtesy of Brad Finch, f-stop Photography)
and generally make the area “safe, clean and green,” O’Byrne said. Those services help reassure the average person that downtown is a good place to work, visit and live. The Downtown CID and other investments are building off larger trends in where people choose to live. Nationally, Millennials and Baby Boomers have shown an increasing desire to live in downtown neighborhoods where they can easily walk to work, stores and restaurants. Having a residential base downtown creates demand for retail, restaurant and service businesses, O’Byrne said. When employers are deciding where to locate new offices, it helps to have a talent pool in the neighborhood, too. While redevelopment is often praised for what it brings to a neighborhood, what it removes is almost just as important. “Usually, these buildings are a main contributor to a blight situation in the neighborhood, so restoring these buildings is very advantageous for it, as well as the surrounding area,” said Steve Foutch, CEO of Foutch Brothers. Rosin echoed that. “Rather than have this dead presence on your street,” she said, “all of a sudden you have a vital place again.” Plus, in an era when sustainability is taking on increasing importance, redevelopment just makes sense.
shouldn’t,” Tomlinson said. “Paris didn’t get to look like Paris by keeping every building they ever had.” There has to be room for new construction, too.) The last two years have been very busy for Rosin Preservation. Since it was founded, the firm has assisted clients not just in Missouri and Kansas, but in Tulsa, Little Rock, Indianapolis and other cities across the country. It’s easy to understand why so many communities are devoting time and effort to holding onto their older structures. Sure, in many cases, there’s an economic opportunity. But these buildings, in addition to just being beautiful, are history made concrete. Once they’re gone, something unique is lost. “They represent our collective history,” Rosin said, “our shared history, our collective memory about a place and how it came to be.”
“The greenest building you can work with,” Rosin said, “is the one that already exists.” WHAT’S AHEAD?
There’s been so much redevelopment in downtown that it’s fair to ask: Is the neighborhood running out of older buildings that need to be restored? “There are fewer historic buildings to choose from,” Foutch said, “and historic credits and real estate tax abatement incentives are drying up, so the window is slowly closing.” Foutch Brothers is diversifying into new construction and consulting work. Still, Foutch has some larger projects coming up and should stay busy for the foreseeable future. Sunflower’s Swords said that, yes, the supply is dwindling a bit. Even so, his company has one project underway now and two more set to start soon. Of course, older buildings are still being “created.” To earn a spot on the National Park Service’s register of historic places—one of the prerequisites to qualifying for preservation tax credits—a building must be at least 50 years old. Each year, more buildings age into that category, Helix’s Tomlinson said. (Not that every single existing structure has to be preserved. “Because we
Use our expertise to make an impact • Any project • Any building • Any state Tax credits National Register of Historic Places
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47
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New Year, Newfound Resolve: Let the Library Kick-Start Your 2017 Business Resolutions t’s that time of year again—the time to pause for reflection and to establish resolutions that, if accomplished, promise to make the following year the most successful and gratifying yet. For many folks, New Year’s resolutions are a way to light the fuse on dreams that have perhaps laid dormant due to impediments in time, funding, expertise—or all three.
I
That’s where Mid-Continent Public Library comes in—from business specialists that act as resolution rudders, steering entrepreneurs and small business owners toward many of the most effective resources, to innumerable free programs, books, and online databases, which contain insights that can take a venture to the next level. Just by applying for a Library card, entrepreneurs can unlock a treasure trove of business biofuel. SQUARE ONE SMALL BUSINESS SERVICES Funded in part by a grant from the Ewing Marion Kauffman Foundation, MCPL’s Square One Small Business Services was created as an initiative to support Kansas City’s entrepreneurs and to inject a shot of energy into the local economy. The program helps businesspeople obtain the tools they need to build strong, viable enterprises. To date, the Library’s Square One initiative has helped launch or improve the operations of more than 45 local businesses.
> Utilize the online database LawDepot to draft legal documents—personalized to your location and situation— and create a business plan. 2 Prioritize professional development.
> Trade expensive professional development courses for engaging, top-quality online tutorials through online databases like lynda.com—available for free with your Library card. Subjects range from business, software training, and technology to marketing, photography, and more. > Attend a free Square One program taught by local experts on a variety of subjects, such as: · Building a Solid Foundation for Opening a Restaurant (January 10) · Business Basics: Doing Business in the Cloud (January 17) · Business Basics: Non-Traditional Advertising for Small Businesses (January 26) · Social Media Content Creation: How to Engage Your Online Followers (February 15) 3 Take a page from industry experts. Check out the latest tips and advice from industry professionals in these recommended reads:
Square One’s repertoire of services includes one-on-one meetings with business specialists who assess an entreprenuer’s goals and provide customized prescriptions to propel them toward those goals. Sometimes this means introducing them to the Library’s free online databases like ReferenceUSA and DemographicsNow, which can be used to create competitive or market analyses. Other times it means recommending one of Square One’s free in-branch courses on topics like evaluating funding options or utilizing low-cost marketing tactics. “The services that MCPL offers through their business specialists are unexpected and amazing,” said Mat Maynor, co-owner of Big Vision Media Group. “It is a big value for small business. My one-on-one with the business specialist even led to starting another venture due to the market research.” LIBRARY BENEFITS FOR YOUR BUSINESS Whatever the resolution, the Library and its Square One team have the resources to help cross it off your list. So, grab your Library card, and discover how the Library can help tackle some of those top resolutions for 2017: 1 Minimize expenses.
> Keep current on the local and national business landscape with free access to publications like The Wall Street Journal and Entrepreneur. > Looking for a makerspace to work or conduct meetings? Reserve a meeting room for free at a local MCPL branch— complete with free high-speed Wi-Fi and without the noise and distraction of a coffee shop.
Apply for a Mid-Continent Public Library card online at mymcpl.org/newcard. See the full list of upcoming Square One programs, and sign up for an appointment with a Square One business specialist, at mymcpl.org/squareone.
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Clay Co. EDC Salutes iWerx As part of this year’s Keystone Awards, the Clay County EDC presented a special Economic Impact Award to the team from iWerx, an enterprise and entrepreneurial development center in North Kansas City. (photo courtesy of Clay County EDC)
Corporon Wins OP Award Mindy Corporon, CEO of Boyer Corporon Wealth Management, received the OP Award for her work with SevenDays, an annual celebration that promotes kindness and interfaith dialogue. SevenDays is a response to the 2014 shootings at the Jewish Community Campus, when Corporon lost her father and son. (photo courtesy of the Overland Park Chamber)
Smart Companies to Watch Party Special guests included Joe Beveridge of Russell-Hampton Co. and Diana Chaloux-LaCerte and Micah LaCerte of Hitch Fit. Both companies were featured in this year’s Smart Companies to Watch publication.
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SMART COMPANIES THINKING BIGGER®
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BIG | talk
» The BIG thinkers behind the BIG ideas. »
Ruth King Ruth King is a serial entrepreneur who has owned eight businesses during the past 25 years. Currently, she operates Profitability Revolution Paradigm, an Internet broadcasting network with programming geared toward helping small businesses excel in finance, operations and management.
Serial entrepreneur, author of “The Courage to Be Profitable” KELLY » One of your books is “The
Courage to Be Profitable.” Why do you use the word “courage”? RUTH » You have to have the courage to make the really good decisions and the really tough decisions. We started the book with two stories: one business owner who was able to make the tough decisions and one who wasn’t. The one who wasn’t grew his business from $750,000 to over $15 million. And when the economy hit, he watched the business go down, and he wouldn’t fire people. His comment was, “I didn’t want to let everybody go.” He didn’t have the courage to be profitable and make the tough decisions.
She is also the author of “The Ugly Truth About Small Business” and the Amazon.com No. 1 best-seller “The Courage to Be Profitable.”
And the little voice in the back of my head was my dad saying to me to pick myself up and keep going. It was in that moment that I said, “OK, this is really lousy, but let’s figure out what we can do.” be going off in your head even if your bank account is flush. KELLY » What are some other situ-
KELLY » Talk to us about the
relationship between growth and cash. RUTH » Here’s a good rule of thumb. If you want to grow your business by $100,000 next year, you need $10,000 in cash to make that happen. It doesn’t work in all industries, but for a lot of them it does. If you know what you want to grow by, then know how much cash you’ll need to do it. The worst thing that happens to small business owners is they get flush with cash and then go out and spend it. The key is to do a weekly cash flow report and actually look at how much cash is coming in versus going out every week, so you can see what the trends are. If you have more cash going out than coming in, warning signs should
ations that challenge small business owners to have courage? RUTH » A
lot of it relates to growth and management. The people who get you to a certain point are probably not the people who are going to take you to the next level. A lot of people think they can’t fire somebody or put them in another position. You’re harming the business when you fear firing somebody who really needs to go. I call it a career readjustment program. If they’re not right for your business, they’re probably not really happy either any more. And you may have loyalty to them because they’re a friend or they got you to where you are. But guess what? They haven’t put their name on the dotted line. They haven’t signed their life away
50 THINKING BIGGER BUSINESS // January 2017
for bank loans. You’re the only one who has done that. If you want the business to survive to the next level, the person probably has to go. So I think management issues are a big thing. Another is not understanding financial statements. I had a client who grew his business from zero to $2 million, but he didn’t have profitable growth. At $2 million, revenue stalled and he started having problems paying his bills. He was losing a nickel for every dollar that came in the door. KELLY » What are some of
the ways to deal with the tough times? RUTH » I lost a $1.6 million contract, with an $800,000 investment riding on it. So, if I can survive that, you can survive. When that phone call came, I went out behind the office, sat on the curb and cried my eyes out.
KELLY » What are some of
the steps that you can take to plow through? RUTH » Start making a list. Write down where you want to go and what you need to do to get there. Write everything down, and start brainstorming who can help you. You cannot be emotional and rational at the same time. As quickly as you can, get over the emotion and get into a rational state of mind. Then you can figure out who can help you and how. Start making phone calls or sending emails.
To listen to the full interview, scan the QR code or visit theRadio Archives of www.iThinkBigger.com
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Business Bits. Growing your business bit by bit. As an entrepreneur, you’ve done it; sending invoices after the kids are in bed, paying bills on Saturday, putting off creating that contact list because it just takes too much time. But what are the options? Other than the obvious answer of cloning, your options are to hire staff or outsource work. Depending on where your company is in its growth, this can be a tough decision. Hiring staff means you have enough work that you’ve been doing in your own spare time to fill someone else’s day for 20, 30 or 40 hours each week. But if you have less than 20 hours a week of work, outsourcing can be a very viable option. Business Bits provides outsourced back office staff to support your growth, bit by bit and at bite sized rates. Employing user-friendly office tools such as QuickBooks and SharePoint, Business Bits can help you manage your growth in an accessible environment, where you are not limited by office hours. Pick one bit or two, pay by the hour, and grow your business bit by bit.
SERVICES OFFERED: ACCOUNTING BITS Detailed entry of information, job costing and specialty reporting. u Accounts Payable u Accounts Receivable u Payroll Time Entry u Bank Account Reconciliation u Credit Card Reconciliation u Certified Payroll Reporting
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And there’s a few things that Business Bits won’t do, because we’re not experts in everything. We won’t sign your checks. But we will print them, match up the invoices, and get them ready for you to sign. We won’t submit your payroll for processing or file payroll tax payments and reports. But we will do your time entry and generate reports for you to review before you process the payroll. We won’t do your taxes. But we will work with your tax accountant and help them with information and data.
Call or email Business Bits today to schedule your bits of business! 913.579.3603 or info@mybusinessbits.com