Thinking Bigger Business—July 2018

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VOL. 27 // ISSUE 7 // JULY 2018

CREMA OF THE CROP ‘Say yes’ attitude lands firm increasingly large clients.

WORKFORCE DEVELOPMENT

Companies Integrate Current and Former Inmates

ABC’S OF CERTIFICATION

How Special Designations Can Help Your Business » iThinkBigger.com


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CONTENTS

JU LY 2018 VOL. 27 // ISSUE 7

IN FOCUS

44 The ABC’s of Certification Small business owners walk through the how and why of pursuing specialized designations.

D E PA R T M E N T S

07 The Bigger Picture 08 Legislative Briefs 09 Biz Bits 12 BIG | deals 15 25 Under 25 Updates 50 BIG | shots

F E AT U R E

28 More Than Second Chances

Four local organizations share their roles in affecting change for current and former inmates.

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

33 BIGGER | strategy Bringing Experience to the Table

34 BIGGER | sales The Psychology of Price

24 | KC ENTREPRENEURS HE ON T R E V CO

36 BIGGER | management How Trust Leads to Business Success

38 BIGGER | marketing We are All in E-Commerce

Crema’s willingness to learn along the way

40 BIGGER | hr

has helped drive the company’s growth.

Hiring? Marketing Makes it Rain Resumes

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THINKING BIGGER BUSINESS // July 2018

‘SAY YES AND FIGURE IT OUT’

B IG I N F LU E NC E

| 19

B IG S TA R T S

| 19

MADE TO LAST


Mandy Tadros, far left, application developer apprentice, works on a new project with Scotty Moon, mobile developer. Meanwhile, Evan Smith, center, marketing intern concentrates on other project details.

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C O M PA N Y T O WAT C H

21

KC M A D E I T

22

ENTREPRENEURIAL JOURNEY

Stratex Solutions

Hammerpress

Thinking Even Bigger

The cloud-based facilitates execution of strategic planning.

Old-school is new again at letterpress printing and design firm.

She'll remain a champion of small business, but Kelly Scanlon is ready for new ventures. SMART COMPANIES THINKING BIGGERÂŽ

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CONTENTS

JULY 2018

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THE BIGGER PICTURE

Many Small Business Stories Yet to Come

R

ecently, someone approached

companies that are thinking bigger and

me at an event. He paid Thinking

telling their stories.

Bigger a compliment but left

We also sell advertising. That’s another way

me dumbfounded.

to connect readers to businesses that offer a

“I love your magazine!” he said. “I want to be on

product or service they may need.

the cover, no matter what it costs. Here’s my card.”

I’m excited when people tell me they like Thinking Bigger

I love to hear that people appreciate our magazine.

and want to be in the magazine. Here’s how to do it:

This is not the first time someone has asked how much

Option A // Call, email or invite me to coffee to tell me

it costs to be featured, but it keeps surprising me.

how your business is thinking bigger. Tell me what’s

Media outlets have various business models. To people

new. If you’ve been featured in the past, keep in touch—

outside the industry, it’s confusing. It’s become a

we run updates on the following pages and on our

muddy playing field when even regular people you’ve

website, iThinkBigger.com.

followed on Instagram are suddenly posting #ads for

Option B // Transact with us. Contact our new sales

lipstick or diet drinks. Especially to a business person,

manager, Lisa Rockett, to find out what type of

it seems natural that you should be able to pay for

advertising can give you the biggest bang for your buck.

a service you want provided, such as having a story

(Read more about Lisa on page 11.)

written about your company.

As long as there are stories to tell about cool small

Some outlets operate with that pay-for-play model. The

businesses, Thinking Bigger will continue to operate on

Thinking Bigger issue you’re reading right now does not.

an editorially based model of coverage. And from what

Our goal is to help connect small business owners to

I’ve seen in the short time I’ve been here, we have many,

others who can share advice, lessons learned and

many more great stories to tell.

potentially business. We do that by seeking out

Katie Be an

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

SMART COMPANIES THINKING BIGGER®

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

FEDERAL Supreme Court rules on online sales tax collection The U.S. Supreme Court in June ruled that states can require online sellers to collect taxes on remote sales. The ruling in the case South Dakota v. Wayfair was made by 5-4 decision and reversed earlier precedents. Justices in the majority said states should have broad leeway to collect taxes without interference by federal courts.

Rule change on association health plan announced The Trump administration announced in June a rule change that would allow association health plans to be regulated in the same way as large employer policies. Association health plans can help small

businesses and the self-employed buy insurance through a location-based or industrybased group plan. This allows the groups to sidestep some Affordable Care Act rules, which could mean cheaper plans; however, there may also be less coverage provided than the ACA required.

Bill to enhance SBA 7(a) loan program becomes law In June, U.S. President Donald Trump signed into law a bill intended to strengthen the Small Business Administration’s oversight of its loan programs and increase the maximum lending authority. The bill enhances the SBA’s lender oversight review process and clarifies factors that must be considered under the “credit elsewhere” test that lenders perform before applying for 7(a) financing.

LETTER TO THE EDITOR

Women Innovators Can Take Kansas City to the Next Level For four straight years, SmartAsset has ranked Kansas City the second-best U.S. city for women in tech, with more than a quarter of our tech jobs filled by women and an impressive tech gender pay gap of 102. This is a smart investment—McKinsey and Co. found companies with more gender diversity experience higher returns on equity, higher operating results and strong stock price growth. Women business owners also see outstanding results. Over the past 20 years, the number of women-owned businesses increased by 114 percent and saw an employment growth rate of 27 percent. As employees and business owners, women are essential to innovation and growth, so we need to continue fostering an environment that encourages women in all industries to start and grow businesses. In 2016, the Women’s Business Development Center (WBDC) opened a Kansas City office to more closely support Kansas City businesses. As the Midwest’s regional

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THINKING BIGGER BUSINESS // July 2018

partner for the Women’s Business Enterprise National Council, the country’s largest third-party certifier of women business enterprises (WBEs), we help local women business owners compete for contracts through WBE certification. We also work with other local organizations to help women entrepreneurs grow their businesses and enhance their leadership abilities. Through WBE certification, relationships within the WBDC network and regional events, business owners in KC are accessing essential tools to take their business to the next level. I’ve worked with local women business owners for years, so I know the best way for our city to reach national recognition is to harness the power of our female workforce and invest in women entrepreneurs. They have what it takes to push us to the next level. Ann DeAngelo, WBDC’s Associate Director of WBE Certification for Kansas City & WBENC Certification Officer


BIZ BITS

1 Million Cups Relocates Entrepreneurial showcase 1 Million Cups Kansas City will have a new home come August. The weekly program that features two pitches and plenty of networking—and coffee—will relocate to Plexpod Westport Commons, 300 E. 39th St., Kansas City. “This move is an excellent opportunity to breathe fresh air into the program and integrate ourselves even more deeply into Kansas City’s entrepreneurial community,” said Courtney Windholz, Lead Organizer at 1MCKC and COO at Proof Positioning.

The program ended its six-year run at the Ewing Marion Kauffman Foundation conference center on June 27 and will take a break during July. 1MCKC will return at 9 a.m. Aug. 1 at its new location. Plexpod Westport Commons has a link to Kauffman Foundation founder Ewing Kauffman. The coworking space is housed in the former Westport Junior High school building, which Kauffman attended. “We look forward to hosting 1MCKC each Wednesday morning,” said Gerald

Smith, founder and CEO of Plexpod, which currently has three locations around the metro and is expanding. “Our mission to grow and nurture entrepreneurship in Kansas City exactly aligns with 1MCKC. Together we can continue to support Kansas City entrepreneurs in even more exciting and robust ways.” 1 Million Cups, which started in Kansas City, has spread to 180 communities nationwide.

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SMART COMPANIES THINKING BIGGER®

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BIZ BITS

ScaleUP! seeks applicants for eighth cohort ScaleUP! Kansas City is now accepting applications for the eighth installment of its intensive four-month course that empowers entrepreneurs to transition from running their business to growing it. Up to 15 area entrepreneurs will be admitted into the course, providing education on forecasting revenue and expenses, maintaining and growing their teams, and scaling their business. Additionally, expert business coaches will provide insight from their own start-up experiences. Eligible applicants must meet the following criteria: » Lead a company that has been in business for at least 2 years and has at least 2 employees » Generate annual sales in excess of $200K » Have a strong market that can generate more than $1 million in sales » Strive to drive their business to greater heights ScaleUP! KC is funded by a grant from the Ewing Marion Kauffman Foundation and administered by the University of MissouriKansas City Innovation Center. Applications can be found at www.scaleupkc.com and will be accepted through July 8. The eighth cohort will launch in August.

The first cohort will begin Oct. 1 and last 75 days. For more information or to apply, visit FountainCityFintech.com.

Federal government spends $105B with small business Agency offers funding for innovative ideas The U.S. Commerce Department is searching for innovative ideas to benefit minority-owned business, and it plans to deploy up to $11.65 million in grants to fund and implement projects. The Minority Business Development Agency is soliciting proposals that will positively impact minority-owned businesses and the communities they serve. Ideas could range from projects to increase access to capital to resources for increased disaster preparedness. The MBDA’s Broad Agency announcement is open to for-profit entities, nonprofit organizations, institutions of higher education, commercial organizations, individuals, state and local government entities, or American Indian tribal governments. Visit MBDA.gov for key priorities and application information. Applications must be submitted by July 11.

MAMTC taps new CEO NBKC announces fintech accelerator NBKC Bank in June announced a new accelerator program for early-stage financial technology startups worldwide. Fountain City Fintech will choose five companies for its inaugural class. Each company will receive at least $50,000 in investment and will receive mentorship and capital through the accelerator. 10

THINKING BIGGER BUSINESS // July 2018

is a subsidiary of the Kansas Department of Commerce. Stovall has served with MAMTC for over eight years. In her new role, Stovall plans to grow MAMTC’s presence and influence in the Kansas manufacturing industry. Stovall hopes to expand MAMTC’s membership and partnerships to accommodate the more than 3,100 small to medium-sized manufacturers throughout the state.

The Mid-America Manufacturing Technology Center, based in Overland Park, has named Tiffany Stovall as its new CEO. MAMTC’s role is to ensure that manufacturers in Kansas have the ability to grow and be competitive in the local and global economy. It

The U.S. Small Business Administration announced in May that the federal government met its small business federal contracting goal for the fifth consecutive year. In fiscal year 2017, it awarded 23.88 percent in federal contract dollars to small businesses totaling $105.7 billion, an increase of $5 billion. This marks the first time more than $100 billion in prime contracts has been awarded to small businesses. “Every contract that gets in the hands of a small business owner is a win-win for the business, creating jobs in their communities, and boosting the nation’s economy,” said SBA Administrator Linda McMahon.

Independence entrepreneur remembered Entrepreneur Luva Vaughn, known to many as Lu, died in May at Park Rehabilitation and Health Care Center in Independence. He was 85. In 1964, he founded Mid-America Cinema Corp. Its first theater was the I-70 Drive-In; over 22 years, the business grew to 70 movie theatres in Missouri, Kansas, Ohio and Colorado. He later managed fast-food restaurants and served as a delegate to the White House Conference on Small Business. He was a founding member of the Midwest Enterprises Investment Club.


Development group changes name In June, Swope Community Builders announced that it would merge with Blue Hills Community Services and changed its name to Community Builders of Kansas City.

Bank launches community investment campaign Central Bank of Kansas City has created a campaign to fund local community development projects. The CD for KC campaign allows businesses or individuals to invest in a certificate of deposit that is used to finance development projects in distressed areas of Kansas City. Central Bank of Kansas City is certified as a Community Development Financial Institution. It funds development projects and provides affordable financial products, services and education.

CBKC is a 501(c)(3) community development corporation focused on mission-based development. Since 1991, it has developed more than $225 million in Kansas City urban renewal projects. Merging with Blue Hills provides collaboration opportunities, said CBKC CEO Art Chaudry.

WELCOME TO THINKING BIGGER The Thinking Bigger Business Media team is excited to welcome our new sales manager, Lisa Rockett. She’s an experienced saleswoman in both print and digital advertising, and she looks forward to getting to know Kansas City’s small businesses. Contact Lisa: lrockett@ithinkbigger.com // (913) 432-6690

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BIG | deals

AWARDS & RECOGNITION Lead Bank earns 2018 Mr. K Award A local bank took the lead in the 2018 Small Business Celebration from the Greater Kansas City Area Chamber of Commerce. Lead Bank was named as Small Business of the Year. CEO Josh Rowland accepted the Mr. K Award, named for Kansas City entrepreneur Ewing Kauffman. The criteria for the award is based on Kauffman’s philosophy: grow the business, reward employees, give back to the community. Founded 90 years ago, Lead Bank has branches in Lee’s Summit, the Crossroads Arts District of Kansas City, Mo., and Garden City, Kan. The bank differentiates itself from peers by providing credit to startups and venture capital firms.

Agency earns 2 Silver Anvils Two earned media supervisors at Leawood advertising agency MBB+ were recognized for their work with Silver Anvil Awards of Excellence, considered a top award for communications professionals. Emily Leeper and Leslie Godlewski picked up the hardware in June in New York City. The winning campaigns were Niagara Spray Starch’s 2017 #PressOnNiagara influencer campaign and Chinet Brand’s 2017 Integrated Communications Campaign. CEO named as industry influencer The leader of a Lenexa company has been named as an industry influencer. Tradewind Energy CEO Rob Freeman was recognized by

the industry intelligence service A Word About Wind as No. 9 on its list of the most influential individuals

Area Businesses Take Kansas Honors Several regional businesses earned recognition from the Kansas Department of Commerce’s Business Appreciation Month awards, which were distributed June 5. The top award, the 2018 Governor’s Award of Excellence, went to McFarlane Aviation Inc. of Baldwin City. McFarlane Aviation is a family-owned company that distributes general aviation products and accessories and manufactures replacement parts for a variety of small aircraft brands.

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Kansas City, Kan., company Schroer Manufacturing Co., commonly known as Shor-Line, earned the 2018 Governor’s Exporter of the Year Award. Other area finalists for the exporting award included McFarlane Aviation and Knit-Rite of Kansas City, Kan. Another 20 companies earned regional awards of excellence. Local winners included MindLift, an Overland Park consulting firm that helps firms adopt tech-based solutions, and Torched Goodness, a food truck based in Eudora.

in the wind industry, according to its Wind Industry Report: North American Power List 2018. The report is the first U.S.-specific independent and impartial wind industry influencer report Freeman was recognized for the success of Tradewind Energy under his leadership. He was a founding member of the company in 2003, overseeing the formation of a partnership with Enel Green Power North America. Tradewind has since completed over $5 billion in U.S. wind and solar projects. EXPANSION Built constructs second location Built Interior Construction, based in the Crossroads Arts District, opened a second location in St. Louis in June. The firm specializes in custom, premanufactured interior construction. “The transition from conventional build to premanufactured is underway, and we are ecstatic to be at the forefront of such a movement. All of this momentum is why we couldn’t help but continue to push a premanufactured message across Missouri I-70 to St. Louis,” partner Mark Brandmeyer wrote on LinkedIn. Brewery begins distribution in Kansas Kansas fans of Cinder Block Brewery can now drink those brews at home. The North Kansas City brewery’s beers are available through Kansas distributors. Gladstone home to second iWerx location iWerx coworking space will open a second location this fall in Gladstone. iWerx Gladstone will be a coworking space and business incubator, and it will be co-located with Clay County Economic Development Council, Midwest Small


Business Finance and Northland Angel Investor Network at 7001 N. Locust St. in the city’s downtown. Partner Bob Martin said the Gladstone location will offer more individual offices. “One thing we’ve learned is that there’s a real thirst for lower-priced office space,” Martin said. M&A Acquisition expands company footprint SKC Communication Products LLC, which designs, builds and manages technology for business collaboration using video, voice and AV solutions, acquired GBH Communications, a provider of unified communication and collaboration solutions. The deal was effective June 4. GBH, a Los Angeles-area firm, specializes in video conferencing, audio conferencing, unified communications, headsets and collaboration solutions. The GBH acquisition comes on the heels of another deal in 2017, when SKC purchased TSG. Both deals allow SKC to expand its footprint nationwide. Following the most recent acquisition, SKC, which is based in Shawnee, has more than 310 employees nationwide serving its enterprise and education clients.

NEW BUSINESS

Doob is a photo-to-3D technology that captures an individual, group or animal and 3D prints it into a figurine. Local co-owners Nick Nikkhah and Malik James discovered Doob USA and became enamored with the technology. “About 14 months ago, I ran across this, and I was giddy like a little kid,” Nikkhah said. “I reached out to them in every which way you can and let them know that I have to be a part of this. So here we are, and now we’re partners with them, and we’re looking to expand from the heart of the country out.” The Doob KC store is located in The Fountains shopping center at 6511 W. 119th St., Overland Park. Dermatologist launches UV-sensing wearable Dr. Brian Matthys, founder and chief medical officer of Sunflower Dermatology and Medical Day Spa in North Kansas City, has launched Eclipse Rx, a solar-powered personal UV sun monitor and activity tracker. The Eclipse Rx is worn on the wrist, like many activity trackers, to track sun exposure with sensors that record ultraviolet light (both UVA and UVB radiation) as well as the UV index. The waterresistant band will vibrate to alert its

wearer when to reapply sunscreen or move out of the sun. Eclipse Rx also syncs with its own iPhone application; by registering your skin type and choice of SPF and sunscreen, the band and app monitor and report UV exposure, providing alerts when exposure is too high. Brewery opens in Blue Springs Blue Springs got its first craft brewery in June with the opening of East Forty Brewing. The brewery, 1201 W. Main St., is named after nearby Highway 40 and 40 acres of land around it. East Forty houses a brewery, taproom and kitchen in a 5,000-square-foot former print shop. It also has a patio and stage for live music. There are 30 taps, six of which will serve East Forty brews: wheat, pale ale, red ale, IPA, porter and saison. The brewery does not plan to distribute and will only serve its beers at the taproom. ON THE MOVE New director moves into ‘head coach’ role AdamsGabbert has hired Dave Templeman as director of staffing and recruiting. Templeman said he was “ready to move into the head coaching seat” after being an “assistant coach” at RiverPoint for 18 years. AG focuses on recruiting and staffing, consulting, Microsoft Office 365 and payroll services.

3D printed figurines available in Overland Park The wait is over for Kansas Citians to create lifelike 3D models of themselves or family. The region’s very own Doob studio opened in Overland Park on June 15. SMART COMPANIES THINKING BIGGER®

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BIG | deals

McCownGordon brings on marketing VP McCownGordon Construction created a new role of vice president of marketing, which will be filled by Sheri Johnson. She will lead marketing strategy and implementation for the Kansas City, Mo., general contractor. Previously, Johnson was president at Morningstar Communications.

OTHER NEWS Coffee shop quickly recovers from flooding After a setback in June, Monarch Coffee is back in business. The coffee shop at 3550 Broadway Blvd., Kansas City, Mo., was damaged June 14 by sprinkler flooding on the floor above it in the Ambassador Building. Water damage affected the ceiling, drywall, lighting, equipment and furniture. Friends of the business set up a Go Fund Me campaign, which raised more than $5,000, to help get through the undetermined business closure period. But on June 21, the shop announced good news on its Instagram account: “FRIENDS: We are dried, repainted, cleaned and ready to see you all again — TOMORROW. What we expected to be a month of demo and rebuild turned into one best-case scenario after another (thanks for those prayers & good juju).” Clock stops for Niall Luxury watchmaker Niall closed in May after six years in business, just a few months after opening its new flagship store at Leawood’s Park Place. Though Niall reported a strong year in 2017 with a 128 percent increase in revenue compared with 2016, CEO Michael Wilson said that the cost of running the business was high and that he was not able to secure Series A funding of about $5 million that the company would need to grow. 14

THINKING BIGGER BUSINESS // July 2018

PARTNERSHIPS FSI partners with investment firm In June, Facility Systems Inc. announced a new five-year partnership with Charrette Venture Group, an investment firm specializing in the architectural and design industries. For more than 30 years, FSI has provided consulting services on space planning, commercial interior design, furniture specification, facility design management, architectural products and construction management for companies across the U.S. from its Overland Park office. CVG provides consulting in areas of marketing, finance, operations, organizational structure, leadership and human resources support to small-to-mid-sized firms seeking growth in the architectural industry. CVG collects a percentage of quarterly revenue in exchange for services. The CVG partnership provides FSI with a specialized team of experts that will focus on helping FSI grow. That includes providing marketing, HR support and strategic planning assistance as well as general sales, business development and firm leadership training. Bank signs on with Prairie Village fintech firm Lead Bank has entered a loan program agreement with Hyphen Funding of Prairie Village. Small businesses can search and apply for loans on HyphenFunding.com. Potential borrowers complete a three-step process, and if approved, can receive funding within 24 hours. Hyphen’s technology automates and speeds the underwriting process.

Lenexa company scores 2 Chiefs deals In June, Lenexa’s Executive AirShare announced two touchdown deals.

The company became the exclusive official private aircraft services provider to the Kansas City Chiefs football team. It also signed a multiyear partnership agreement with Chiefs quarterback Patrick Mahomes. The fractional aircraft provider will offer the Chiefs coaching and personnel departments transportation for scouting and draft preparation. It also will sponsor select Chiefs events and provide flights for attendees. Mahomes will appear in marketing for Executive AirShare, and in return, the company will fly his family from Tyler, Texas, to Kansas City for each Chiefs home game. Mahomes will have access to additional flights as well. Expanded Offerings with Acendas Travel Acendas Travel, a travel technology company, in June announced a new partnership to expand its offerings to companies and meeting planners. Acendas has partnered with meeting solutions provider Groupize to offer a self-service, online hotel sourcing tool. This will allow access to inventories of meeting space and housing for “simple” meetings that don’t need accommodations beyond room space, food and beverage, and audio visual. “This addresses an aspect of meeting planning that has long frustrated professionals — the lack of timely information and unwieldy processes,” said Stephanie Clifton, Acendas director of meetings and incentives. Acendas has co-headquarters in Mission and Eden Prairie, Minn.


2 5 U N D E R 2 5 ® U P DAT E S

Principal honored as industry 40 Under 40 honoree

AlphaGraphics KC earns printing awards AlphaGraphics KC (Class of 2016) earned six awards at the 2018 Printing & Imaging Association of Mid-America’s Graphex Awards in April, which took place at Arrowhead Stadium in Kansas City, Mo. The commercial printer earned two awards for art installations on downtown streetcar shelters, including Best of Category for Wide Format Printing Exterior Scapes and for Wide Format Printing Specialty Installation. AlphaGraphics KC also won Best of Category in Binding & Finishing Techniques for exposed-spine books, a Broadside Printing award for a map brochure, an Award of Excellence in Greeting Cards for tri-folded holiday cards and a Wide Format Interior Scapes award for a 226-square-foot mural installation at Oakhill Day School in Gladstone.

PRINT

Marc Shaffer, principal at Searcy Financial Services Inc. (Class of 2009), was recognized as a 40 Under 40 Honoree by industry publication InvestmentNews. Schaffer, 35, was chosen from among 1,000 nominees. The publication said winners are chosen based on accomplishments, leadership and contributions to the industry. Read more about Schaffer’s accomplishments at InvestmentNews.com.

Evolytics named as a Top Analytics Agency Evolytics (Class of 2015), a Parkville digital analytics firm, was recognized as Top Analytics Agency in the small to mid-size category by the Digital Analytics Association at its Quanties Award Gala in Las Vegas in June.

MARKETING

In addition to its accolade as Top Agency, Evolytics was named as a finalist in three other categories: Top Analytics Team, Difference Maker and Top New Practitioner for Evan Vermilyea, analytics engineer.

TGS expands into 2 new markets Technology Group Solutions (Class of 2010) has announced new locations in Wichita and Omaha as part of its rapid growth in the IT services sector. The technology services firm specializes in IT consulting, cloud services, office cabling, VoIP, data center design and web development.

DESIGN

SIGNS

AlphaGraphics 1717 Oak St | Kansas City, MO 64108 | 816.842.4200 alphagraphicskc.com | us190@alphagraphics.com | /alphagraphicskc

SMART COMPANIES THINKING BIGGER®

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AT A G L A N C E K C

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

BIG INFLUENCE | KANSAS CITY FOOT AND ANKLE

Company Goes Above and Beyond for Community, Employees Dr. Mark Green said it’s always been his company’s goal to go above and beyond. Kansas City Foot & Ankle did exactly that last year when employees participated in an event called Challenge Air. The team volunteered at the Kansas City Downtown Airport, where pilots took children with special needs on flights around the city. The kids even got an opportunity to co-pilot.

“Businesses are part of the community. They can’t be separated. I believe that businesses are only as strong as the communities in which they serve,” he said. “It’s really satisfying to step outside of your day-to-day business mindset and do some good for nothing more than the sake of doing good. And if we can help one of our team members with an important cause in their lives, that’s doubly satisfying.”

“This fosters confidence and leaves them with an experience that will last a lifetime,” Green said. KC Foot & Ankle has also volunteered with Harvesters and Catholic Charities of Kansas City in the past year. Green said an important aspect of his company’s philanthropic philosophy is personal connection. “By focusing on causes that are important to our team members personally, we are fostering a healthier workplace environment through our compassion and commitment to each other,” he said. Green said companies contribute to the community not only through providing business services but through acts of service as well.

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1 The team from Kansas City Foot and Ankle volunteers at Harvesters. 2 , 3 & 4 Dr. Mark Green volunteers along with his team members at the Challenge Air event. (Photos courtesy of Dr. Mark Green)


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

S T R AT E X S O LU T I O N S

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

Enhanced Strategic Planning

(Photo courtesy of Austin Walsh Studios)

CLOUD-BASED TOOL OFFERS COST-SAVINGS, ACCOUNTABILITY AND COMPANYWIDE CONNECTEDNESS. ENTREPRENEUR

Raina Knox, CEO and co-founder C O M PA N Y I N F O R M AT I O N

Stratex Solutions (913) 486-8736 www.Stratex.Solutions TYPE OF BUSINESS

Cloud-based strategic planning software built on Malcolm Baldrige criteria with a dynamic dashboard and tools to execute strategic and tactical plans. YEAR FOUNDED

2015 E M P L OY E E S

5

tratex Solutions founder and CEO Raina Knox spent many years developing her strategic expertise as a consultant and working at Sprint, H&R Block and as president of the Excellence in Missouri Foundation. Over time, Knox recognized that a technology-based solution could aid organizations that “used spreadsheets as information collectors” and help manage implementation of strategic plans. Knox partnered with Stratex co-founder Courtney Cole to co-develop a solution. Originally, the software was meant to increase consulting capacity by automating manual tasks. “When a client asked to purchase the tool for their own use, Stratex Solutions was launched,” Knox said. The cloud-based software provides a workflow to support best practice outcomes in strategic planning and addresses common failure points for developing and implementing strategic plans. “Strategy is easy—execution is hard,” Knox said. “Countless strategic plans fail when it comes to implementing the plan and engaging the workforce in execution. Stratex software gets the entire organization focused on effectively and efficiently executing the strategic plan.” Strategic planning, organizational performance assessment and innovation are integrated and packaged in a suite of technology-based tools that keep participants on track and accountable. “It eliminates the typical silo-based approach to organizational leadership, planning and measure-

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ment, resulting in sustainable improvement in organizational results,” Knox said. “Most of our competitors provide software as a service. We provide technology tools and support for the development of the plan content.” Stratex Solutions cut its teeth in BetaBlox business incubator and accelerator before moving to the Sprint Accelerator Mentor program, then to Kansas City, Mo.’s Innovation Partnership Program and to ScaleUP! Knox was one of 18 entrepreneurs in the seventh cohort of the ScaleUP! KC business program. ScaleUP! involved “hard analysis” and making “hard decisions needed to build a sustainable business,” Knox said. “The support we have received is so far beyond what we knew to expect when entering the program,” she said. Launching Stratex Solutions and marketing its software involved educating clients about what strategic planning entails and how it is successfully executed. “Strategic planning is haphazardly executed at most companies. They don’t realize tools are available to help,” Knox said. “Conducting strategic planning frequently brings to mind thoughts of endless meetings about vision statements and SWOT analysis, resulting in pretty binders gathering dust on a shelf. There is a better way, and Stratex provides the process and the tools. Technology-based strategic planning is a young space without many competitors, so we’re a bit unexpected.” Stratex Solutions’ client roster includes Midwest Transplant Network, City of Kansas City, Mo., and University of Miami Healthcare systems. Pete Dulin is a freelance writer in the Kansas City area. SMART COMPANIES THINKING BIGGER®

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AT A G L A N C E K C

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

BIG STARTS | BOOMN

Agency systemizes customer acquisition COMPANY // Boomn ENTREPRENEUR //

Ryan O'Connell, co-founder and managing partner WHAT THEY DO // Boomn, an

ROI-focused growth marketing agency, builds “highly systematic, out-of-the-box customer acquisition models driven by data and creativity,” O'Connell said. “We only work with companies and people who make us ‘Hell Yes!’ excited about the brand and what we can do for them.” THE INSPIRATION // “There are more than enough agencies in

the world, but next to none focus on customer acquisition funnels and true company advisory to help grow revenue and brands,” O'Connell said. “We decided to create an agency to service them instead of having to refer them to someone else.”

MADE TO LAST | LCC POWERSPORTS

LCC Powersports puts on an open house celebration for its 50th anniversary. The celebration included $100 giveaways by founder Bill Heishman. (Photos courtesy of LCC Powersports) top //

inset //

Passion drives continued success Founded by Bill Heishman and his late wife, Janey, in 1968, LCC Powersports sells Yamaha, Kawasaki, Suzuki and KTM brands of motorcycles and products. Son Jeff Heishman, president and owner, has seen the original 400-square-foot store expand to a 16,000-square-foot building. Jeff Heishman attributes the company’s longevity to one primary goal: “Taking care of our customers and living up to our slogan of ‘the dealer who cares,’” he said. “We strive to make every customer happy.” Heishman worked at the store through high school and college. His lifelong love of motorcycles also drives his passion for work. “How many people get to have a career in their passion?” he said. “Once you have it, the love of motorcycling never goes away. There are so many days I walk into my store and realize just how lucky I am.”

WHAT'S NEXT // Boomn plans to remain small and nimble to

Pride in the family business and honoring its roots is evident.

control its service quality. The company will target larger brands and expand its team from 9 to 15 employees over the next year.

“The Janey's Ride that I started in memory of my mother is probably one of the things we do here that I'm most proud of. This is the 21st year of the ride,” Heishman said. “The Veterans Community Project is our charity for this year’s ride.”

“Our service model will evolve based on market needs and specific client needs,” O’Connell said. “Because our agency is nimble, we constantly look at new and existing platforms to get the most out of our clients' budgets. If it will help us acquire more customers for our clients, we're exploring it.” HOW TO CONTACT // Boomn // 117 W. 20th St., Suite 202, Kansas

City, MO 64108 // (314) 705-0660 // boomn.com

Heishman offers this advice to fellow business owners: “Remember you and your associates work for your customers. If you don't, they will find somewhere else to go. “We realize that a customer is not just one sale. We need their repeat business and their referrals.” SMART COMPANIES THINKING BIGGER®

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KC MADE IT K C

HAMMERPRESS

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

Ahead of Its Time Studio capitalizes on resurgence of old-style printing.

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rowing up near Oklahoma City, a young Brady Vest shared his passion for drawing with his grandfather, sketching horses and other Midwestern scenes. Years later, after graduating from the Kansas City Art Institute, Vest parlayed that passion into another artistic endeavor: In 1994, he founded Hammerpress, a letterpress printing and design firm. Hammerpress offers a variety of products from handcrafted wedding invitations and business stationary to cards, desk supplies, home goods and personal accessories. Hammerpress is on Southwest Boulevard in Kansas City’s Crossroads Arts District and features a studio as well as a retail shop. Vest leads a staff of seven in designing and making products sold online and in shops around country and Canada. “We do an older form of printing that went out of relevant use with the invention of offset and digital printing,” Vest said. “It was literally art. … In the last 20 years, there has been a slow re-introduction of letterpress printing with the whole maker movement. It’s gained a lot of popularity.” ‘A SLOW EVOLUTION’

Vest fell in love with printmaking while at KCAI and saw a niche in the marketplace. “It is a very process-oriented art form … (and) it is meant to be out into the world,” he said. The process involves using metal or wood type that is first inked, then pressed against paper.

Vest modeled his company after a business KCAI upperclassmen had created. Vest described himself as a bit naïve when first diving into the business world. “I tried to find this equipment and, back then, it was more of an endeavor. We didn’t have eBay to find things,” Vest said. “I would go into old print shops and through trade magazines to find equipment.” He opened a studio and was a solo operation for some time until business began to pick up. “It was a long time trying to figure out what I was doing. … Then I started meeting other people,” Vest said. “It was a slow evolution of me figuring out what to do.” FINDING A NICHE

Hammerpress keeps a number of presses in rotation for production; there are 700 hundred drawers of lead type and “a pretty good collection of wood type” as part of the studio, Vest said. In recent years, technology has helped to speed up what has been a laborious art form. “I don’t do everything completely by hand now,” Vest said. “Over the years, we have evolved to where you can take a digital file and put it on a printing plate. It is still all letterpress-printed, but it’s faster now.” Fifteen years ago, Hammerpress got into wholesale production, developing a large line of postcards and greeting cards, posters and notebooks. Vest also introduced a few other designers’ work. The company’s business is now an even split among retail, wholesale and custom work. Today, Hammerpress has approximately 800 wholesale accounts throughout the U.S.,

Canada and the United Kingdom. Locally, clients have included Boulevard Brewing Co. and VisitKC. Three and a half years ago, Hammerpress moved into its current location in the Crossroads, providing more space for its offices, production and order fulfillment. Vest said there is more competition today in the marketplace than when Hammerpress started in 1994. “You have to find your niche, and I think our niche has evolved into design and producing our own wholesale line (that) we still do the job printing,” Vest said. “What sets us apart is our design approach, which tends to be pretty referential to our collection. It is kind of a modern tweak to traditional type and forms.” Hammerpress has been recognized for its work in several graphic design annuals, printmaking, poster design and typography books. The company has won several AIGA and ADDY awards for its work. PRESSING PROJECTS

Vest likes Kansas City’s Midwestern vibe, and it’s been good for his business. “It’s an easy and approachable place to start a business,” he said. “People are always interested in what those businesses are doing.” Looking ahead, Vest plans to have Hammerpress keep doing what it been successful with—hand-designed paper goods. “This year, we will put a little more focus on being proactive on certain projects and build new relationships with folks in town and outside of the city as well as re-evaluating our storefront to orient it to our custom design work,” he said. Ruth Baum Bigus is a freelance writer in the Kansas City area. SMART COMPANIES THINKING BIGGER®

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ENTREPRENEURIAL JOURNEY K C

( by Kate Liebsle)

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

Looking back at the evolution of both the 25 Under 25 program and Thinking Bigger Business Media as a whole makes Scanlon particularly proud. “The launch of the 25 Under 25 program and the successful rebrand from Kansas City Small Business Monthly to Thinking Bigger Business Media rank high on the list. Because we were so small, many well-intentioned people told me we didn’t have the means to pull either of them off successfully. But we were ‘thinking bigger’ and we were determined.”

2015 Entrepreneurial Legacy Award winner, Sherry Turner and Kelly Scanlon.

Unafraid to Think Bigger After handing off media company, Kelly Scanlon focuses on new ventures.

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or more than 20 years, reading Thinking Bigger Business magazine each month has been like taking a walk through Kelly Scanlon’s mind—her ideas, her dreams and her goals. Through the years she has written about, met with and supported the small business community like no other, according to those who have worked with her. “There aren’t enough positive adjectives to describe Kelly,” said Pat Brown-Dixon, who met Scanlon more than 20 years ago at a General Services Administration networking breakfast. The two went on to form a lasting business and personal relationship. “She’s open, honest, positive, inclusive, brave, supportive, encouraging, caring, a risk-taker.” Now, she’s ready for the next step as an entrepreneur. In March, Scanlon sold Thinking Bigger Business Media to Mike Wrenn, chairman of Affinity Worldwide, and Becky Cole, Affinity’s CFO. 22

THINKING BIGGER BUSINESS // July 2018

Small business commitment From the start, Scanlon set her sights on immersing herself in the community she was both targeting and serving. That commitment has meant a lot, said Paul Weber, chief strategy officer of EAG Advertising & Marketing. He’s known Scanlon for more than 15 years, and her love of the small business community shines through, he said. One of the ways that Scanlon has shown her dedication to the small business community is through the 25 Under 25 Awards for outstanding businesses with fewer than 25 employees, which the company established in 2001. Weber’s company earned the award in 2007. “I have greatly appreciated Kelly’s undying commitment to the small business community,” he said. “There’s an irony here in that her audience, those seeking to get bigger, may eventually outgrow her publications and content if they are extremely successful. “Kelly and TBBM never tried to be anything other than the best content provider for small business. I have most appreciated her commitment to small business over the lifespan of her tenure with TBBM.”

‘She doesn’t succumb to limited thinking’ As the world changed, Scanlon pivoted the brand to keep up. She made the publication a glossy, four-color magazine with a dedicated subscription base. She changed the name of the company to Thinking Bigger Business Media and introduced radio shows, an online learning center, a digital version of the magazine, and a number of communityfocused events, including the 25 Under 25 Awards, BIG Breakfast panel discussions and Brew:30 Happy Hours. Scanlon’s mission never changed: to put small businesses in the spotlight, whether through her media company or in meeting rooms around the metro. That’s her biggest accomplishment, said Sherry Turner, president of the Women’s Employment Network. “She’s drawn the attention of the CEOs of corporations about the importance of small businesses,” Turner said. Scanlon’s influence in the small business community wasn't limited to Kansas City. In the late ’90s, she became a member of the National Association of Women Business Owners (NAWBO) and held several board positions in the Kansas City chapter. Her work with women business owners spread, and she was elected to the national NAWBO board, serving for five years, including as the national chair in 2010. Scanlon continues to support the organization and remains active in it nationally and locally. As Scanlon pivots once again and moves to her next adventure, Turner and Brown-Dixon are certain she will thrive. They point to the way she thinks and works with people as an indication of future success. “She’s very respected and knows how to drive the growth of a business,” Turner said.


Scanlon is proud of Thinking Bigger’s ability to create relationships with others in the community. “Being able to work with wonderful staff, supporters and others in the entrepreneurial and corporate community who believed in Thinking Bigger’s mission and provided time, counsel, financial support and encouragement,” she said. “No one succeeds on their own, and for these individuals and companies, I’ll be forever grateful.” Brown-Dixon points out how Scanlon is thoughtful and inclusive in what she does. “I learned to ‘think big quietly’ from Kelly,” she said. “She does things in a bigger and better manner, but she is strategic and thoughtful in the way she goes about accomplishing it. She reaches out and includes the ideas of those who would be impacted or who would benefit, and she doesn’t succumb to limited thinking.” New phase So, what’s next for Scanlon as she embarks on the next few acts of her life? As you might expect, she isn’t in slow-down mode.

“I’ve had many ideas I’ve wanted to pursue over the years,” she said. “Most immediately, I’ve started Interrobang Solutions, which offers outsourced writing, editing and publishing solutions. I have been picked up by the C-Suite Network out of New York and have rebranded my podcast. It is called ‘Talking Business Now’ and is national in scope.” She also is working this summer on her Wine & Spirits Education Trust certification through the Napa Valley Wine Academy in preparation for another business she is considering launching. And, as always, she will be a Kansas City entrepreneur cheerleader.

I will do whatever I can to continue to support Thinking Bigger Business and all the wonderful business owners in Kansas City. Kate Liebsle is a freelance writer in the Kansas City area.

top // Kelly Scanlon with Joe and Judy Roetheli, the 2018

Entrepreneurial Legacy Award winners. bottom // Kelly Scanlon and Barnett Helzberg at a 25 Under 25 Gala. (Photos courtesy of Thinking Bigger Business Media)

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Daniel Linhart, left, and George Brooks make time every week to get coffee and talk about the business. They “build space” for arguments and reconciling of ideas, Linhart said: “You just have to be real.”

24 THINKING BIGGER BUSINESS // July 2018


KC ENTREPRENEURS

‘Say Yes and Figure It Out’ Crema builds apps for the nation’s biggest companies and most promising startups. ENTREPRENEURS

George Brooks and Daniel Linhart C O M PA N Y I N F O R M AT I O N

Crema 1815 Central St. Kansas City, MO 64108 (816) 220-2141 www.crema.us TYPE OF BUSINESS

Digital product agency YEAR FOUNDED

2009 E M P L OY E E S

30 KEYS TO SUCCESS

“We’re so good at customer service and developing quality relationships that we immediately inspire confidence in our clients.” — Daniel Linhart, COO

left // Dan Linhart, left, co-founder

and COO at Crema, with founder and CEO George Brooks. inset // Senior business development strategist Nate Olson works on details of an upcoming project.

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eorge Brooks, Daniel Linhart and the team at Crema build digital products— web and mobile apps, as well as software for wearables and IoT devices. From its studio just south of the Kauffman Center for the Performing Arts, the agency based in Kansas City’s Crossroads Arts District serves startups and large businesses across the country. Clients come to Crema with an idea—sometimes just a basic concept—and the agency helps them develop, design and build the finished product. That could be a smartwatch app for Adidas. Or a new online portal for Kudelski Security, a Swiss cybersecurity firm. “We’re building solutions to a problem that our clients have,” said Linhart, Crema’s COO. “We’re really good at solving problems, and we’re even better at finding the right problems to solve.” Crema, formerly Cremalab, uses a “full stack” approach, with all work being done in-house. Unlike many of its competitors, nothing is outsourced to overseas contractors. As a result, clients see ideas translated into reality faster. Last year, the agency earned about $2.7 million and could end 2018 with revenues of $3.7 million to $4 million. Its team is growing, too—from 22 people at the end of 2017 to about 30 now. Crema also launched its first-ever satellite office last year near Indianapolis, it’s and is open to opening others.

“I do think we could be one of the top product agencies in the country,” said Brooks, Crema’s CEO. STRONG PARTNERSHIP

One thing that Crema doesn’t really do anymore: traditional websites that are mostly used for marketing or promotions. While many of their products live online and are delivered over the web, Crema’s work is software at heart. Crema helps clients communicate better or accomplish business objectives more efficiently at a greater scale. To build those products, Crema employs a full team of digital product designers, app developers, product strategists and agile project managers. Originally, it was just Brooks on his own, freelancing after he left his full-time job as a designer for a marketing agency. Because of health complications, his oldest daughter had to spend the first several months of her life in the hospital. Brooks would bring his laptop and work from her room. He began specializing in UX—user experience— and soon won a series of contracts. “I started to take on more clients and realized I had no idea how to run a business,” Brooks said. So he asked Linhart to grab a cup of coffee. The two had been friends since they attended Emporia High School together. Over the years, they’d toyed with the idea of starting a business a few times. Linhart was pursuing his MBA at Rockhurst University and was working at Blue Cross Blue

by James Hart // photography by Dan Videtich SMART COMPANIES THINKING BIGGER®

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“I don’t know anyone who’s had as good of a partnership as we’ve had. I’ve never seen anyone work together as well as we do.” George Brooks // Founder and CEO

Shield—in fact, he was in line for a very nice promotion. But he wasn’t sure he was on the right path. So, over coffee, Brooks asked Linhart if he would be interested in going into business with him. They took a couple of months to talk about what it would look like, but Linhart signed on. “I don’t know anyone who’s had as good of a partnership as we’ve had,” Brooks said. “I’ve never seen anyone work together as well as we do.” CHOOSING OPTION 5

At first, Crema mostly just handled design. It would create an interface for an app and then contract with a developer to build it. The company quickly earned a reputation for creating incredible user interface designs and managing large teams to get everything built. Eventually, Brooks and Linhart wondered what would happen if they had their own team of developers. “We always were headed down that road,” Linhart said. “At some point, we were going to build what we were designing.” So, about three years into the business, Crema added its first developer. Then another. In 2015, its first big year of growth, the company expanded from eight people to 16. The company started describing itself as a product agency. And it 26 THINKING BIGGER BUSINESS // July 2018

started saying yes to jobs that looked more complex than what it previously tackled. At Crema, they call this Option 5. It comes from the time the agency was presented with a big project and was trying to figure out, if it took the job, how the company would actually execute it. The team put ideas up on a whiteboard, but nothing clicked. While the first four ideas were organized and structured, they went with the fifth option: “Say yes and figure it out.” That spirit has helped Crema pursue—and win—ever-larger clients. Right now, enterprises make up about 70 percent of Crema’s clientele, but in the early days, startups accounted for most of its business. They were the ones who were willing to take a chance on an up-andcoming agency. (Even then, though, Crema always had a couple of big clients like the Ewing Marion Kauffman Foundation and Saint Luke’s Health System.) There are some differences between those types of clients. Startups tend to make decisions faster and with a bit more emotion because they’re smaller and have fewer stakeholders. Enterprises usually possess more knowledge about their business model and market because they’ve been in operation longer. Startups use Crema because they don’t have the people or expertise to easily build an app on

Video conferencing with a client about project details are, from left, technical director Matt Cole, quality asssurance analyst Ashley Holbrook and senior project manager Michael Luchen.

their own. Enterprises might have internal teams with the technical chops, but they’re usually too busy handling their regular workload. Plus, Crema can bring a fresh perspective to problems, its leaders said. “If you’re in a large organization, you probably have a business model that you’ve had for the last 20 to 25 years,” Linhart said. “It’s really hard to look at something new because all you know is what’s within your organization.” REALIZING SUCCESS

Success hasn’t been a straight line for Crema. While the agency grew a great deal in 2015, there was no growth the next year. It

was, in part, a matter of growing pains and learning how to manage a larger company, Linhart said. That was also the year that he and Brooks, at the advice of their mentors, made the decision to start replacing themselves in the business. They handed off more of their responsibilities to other team members so the founders can focus more on the Crema’s overall health and future. Today, there are some clients neither of them have met—which was both a relief and, at first, a little scary. “That’s success for us,” Brooks said, “because we’re not the bottleneck of the company.”


inset left: Crema worked with the

innovation team at Adidas and explored a Garmin Connect IQ watch app experience for Mi Coach. inset below: Through rapid prototyping and front-end development, Crema collaborated to craft a centralized tool for Kudelski Security to scale its managed security service offerings. (Photos courtesy of Crema)

‘YOU JUST HAVE TO BE REAL’

Every Friday, Linhart and Brooks get coffee and talk about the business. It’s a standing meeting and a key ingredient in their partnership. “Early on, it was like, all right, how’d I piss you off this week? How’d you piss me off this week?” Brooks said, laughing. “And that’s what the conversation was like because we were learning to work together.” It’s important for business partners to have those talks so they can call out any disagreements, the co-founders said. “You just have to be real,” Linhart said. “We have our days where we have our arguments, but we build space for that on

purpose because we know it’s going to happen.” CREATING ENDURING VALUE

Today, Linhart and Brooks can spend more time talking about the future of the business. They feel like they’re on the edge of another season of growth. Some of their bigger clients are growing, which means there likely will be more work for Crema, too. Right now, most of Crema’s business comes from referrals— a testament to the quality of the team’s work. Over the past six to eight months, though, Brooks and Linhart have been putting more emphasis on prospecting and marketing.

“We can’t get where we want to go just with referrals,” Linhart said. To meet increasing demand, Crema could hire another five employees this year, bringing the agency’s headcount to 35—and almost maxing out its space in the Crossroads. The leaders aren’t sure yet whether they’ll need to add a satellite office or move to a new location. They’re still exploring the idea of more outposts in other cities. A few years down the line, it’s possible that Crema could employ 100 people, Brooks said. It probably won’t be using the same programming languages or

frameworks—technology always continues to evolve. But Crema’s core value proposition will endure. “We will still be working together in cross-functional teams, developing solutions to key business problems that businesses have,” Linhart said. “That’s where we’re marching to. We always want to be doing that. “The technology will change, and the people here will change. Even our space at some point will need to change. But what we’re doing and why we’re doing it will remain the same.” James Hart is a freelance writer based in the Kansas City. SMART COMPANIES THINKING BIGGER®

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MORE THAN

Second Chances HOW FOUR KANSAS CITY COMPANIES AFFECT CHANGE FOR CURRENT AND FORMER INMATES ( BY KATY IBSEN)


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HE U.S. CRIMINAL SYSTEM HELD NEARLY 2.3 MILLION INDIVIDUALS IN PRISONS, CORRECTIONAL FACILITIES,

DETENTION CENTERS AND LOCAL JAILS IN MARCH 2018, ACCORDING TO THE PRISON POLICY INITIATIVE, A NONPROFIT, NONPARTISAN RESEARCH ORGANIZATION. As of 2016, Kansas held 18,000 people in prison, while Missouri held 50,000; and of that combined 68,000, 61 percent were in state prisons. The statics are astounding, but so are the efforts to increase workforce programs to assist returning citizens (individuals formerly incarcerated) and ultimately curb recidivism.

According to a survey by the Society for Human Resource Management and the Charles Koch Institute, “top reasons for hiring workers with criminal records include a desire to hire the best candidate for the job regardless of criminal history, making the community a better place, and giving individuals a second chance.” In fact, of the adult-age working population, nearly one-third has a criminal record, suggesting that re-entry into the workforce has improved for returning citizens over the last decade. Businesses and organizations in and around Kansas City provide proof of this trend, as several companies are either working with current inmates to prepare for re-entry or have developed training and support programs to ease the transition back into society.

SMART COMPANIES THINKING BIGGER®

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“Entrepreneurship crosses all boundaries, and entrepreneurship has a way of helping everyone in every situation from every background—it's such a powerful tool to build community. It’s also such a powerful tool to just helping people live and love better.” Kyle J. Smith // Determination Inc. founder

BE THE BOSS

K

yle J. Smith has a passion for entreprea Changemaker by the Midwest Center for Nonprofit Leadership at the Aaron L. Levitt neurism. From his two-year stint at the Social Entrepreneurship Challenge. entrepreneurial hub KCSourceLink, Under Determination Inc., he saw a gap in support for Smith launched Be the Boss, returning citizens. a business support group “I realized that there was that gathers every couple a lack of resources specific of weeks and currently to helping people who are works with 19 returning coming out of incarceracitizens. The gatherings tion start businesses, and feature local experts and there may be more need entrepreneurs who speak there than a lot of other candidly on starting a places because people are Kyl business, providing insight often barred from employe J . S mi t h for participants. Outside of ment. They’re not able to get jobs because of their background, group meetings, Smith meets so there's a potential solution there—if with individuals one-on-one to discuss you can't find a job, then create one,” Smith their entrepreneurial plans as well as their said. “So that’s what I set out to do, to start re-entry needs such as finding housing, local a nonprofit specific to helping people who resources, paying bills and more, for which are returning home from incarceration start Smith helps them develop connections for businesses through connections, education solving those needs. and support within the community.” Thus far, Smith has seen former participants Smith founded Determination Inc. in 2018— use their skills to develop businesses in landa nonprofit with the mission of assisting scaping, catering, janitorial services and returning citizens in developing an entreother areas. preneurial mindset through connections, “It’s awesome to work one-on-one with education and support within the commuthe people in my workshops because we can nity. The nonprofit recently was honored as use entrepreneurship as a way to realize a 30 THINKING BIGGER BUSINESS // July 2018

path toward a better future for themselves and their families and their communities,” said Smith. “When your ultimate goal is to run a successful business a year, five, 10 years from now, you can really align all the other activities in your life along that path to make things better for yourself right now.” Smith, an entrepreneur himself, doesn’t stop there. He is currently working with Goodwill on a program called Quest Bridge Academy, which will focus on personal and professional development, and job readiness. He also has launched an entrepreneurial mindset and business basics workshop at the Heartland Center for Behavioral Change. Smith believes there are many paths out of prison, which has inspired him to help others. From his experience at KCSourceLink, he is motivated to use entrepreneurism as an answer to recidivism. “Entrepreneurship crosses all boundaries, and entrepreneurship has a way of helping everyone in every situation from every background—it’s such a powerful tool to build community,” he said. “It’s also such a powerful tool to just helping people live and love better.”


THIRSTY COCONUT

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hirsty Coconut Inc., headquartered in Louisburg, is a multifaceted business that offers rentals of frozen drink machines, mobilizes a breakfast food truck in the metro and manages a wholesale sector selling drink machines to individuals and businesses. Working with schools, hospitals, nursing homes and large corporate-food-service-run facilities, wholesale makes up the largest portion of Thirsty Coconut. “We make it easy for (clients) to run a specialty beverage program. We provide the equipment, training, service, and we regularly distribute product to them, typically a healthier product,” President Luke Einsel said. Einsel eventually saw the need to protect the machines from tampering—there was too much risk for contamination by adding alcohol or something worse. To combat that, he developed a part to secure the machines. However, his options for manufacturing 500 pieces weren’t great. Being in the right place at the right time, Einsel discovered Kansas Correctional Industries (KCI), which ultimately produced the part for Thirsty Coconut. “I was looking to get this made, and I ran into the Bureau of Prisons for the state of Kansas. They’d said, ‘Hey, if you guys were looking to get something new manufactured, why don’t we try and partner on this so that you guys won't have the cost, and our inmates get a lot of real-time training?’” Einsel said. “Everybody wins, and it was an absolutely amazing experience.” KCI dates back to 1958 in partnering with private industries and businesses to manufacture products and provide inmates with a variety of benefits. According to the

Kansas Correctional Industries dates back to 1958 in partnering with private industries and businesses to manufacture products and provide inmates with a variety of benefits.

KCI website, those benefits include building valuable work habits and skills, earning at least federal minimum wage, meeting child

support obligations and receiving mandatory savings upon release. Einsel and his company have concluded their partnership with KCI but continue to promote its value and take pride in the fact that they have helped others. “You feel good because you’re helping some of our most vulnerable population,” he said. “They’re going to return to society at some point, and I loved the idea that they’re bringing some job skills with them back into the community that hopefully they can get their life back on track.”

Director of sales and marketing Paula Proud and president Luke Einsel of Thirsty Coconut display their locking lid top unit that was made with the help of Kansas Correctional Industries. (Photo courtesy of Luke Einsel) SMART COMPANIES THINKING BIGGER®

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CONSTRUCT KC

Construct KC students learn valuable skills to help them succeed in the construction industry. (Photo courtesy of Home Builders Association of Greater Kansas City)

NEW HORIZONS ENTERPRISES LLC

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ew Horizons Enterprises LLC is an enviNew Horizons has hired returning ronmental consulting firm specializing citizens for the past nine years. in demolition and environmental remediation such as the removal of asbestos, lead and mold. For CEO Stephanie Isaacson, it Based out of Kansas City and Lincoln, Neb., has always been about hiring the firm has hired returning citizens for the people that are skilled in labor, past nine years. “We strongly believe that people should regardless of their background. be given a chance and that their past should not define their future,” said Stephanie Isaacson, president and CEO. For Isaacson, it has always been create local jobs for unemployed about hiring people that are residents that are “affected by skilled in labor, regardless environmental pollution, of their background, economic disinvestment which eventually led to and brownfields to gain the firm’s participation the skills and certificain the federal Work tions needed to secure Opportunity Tax Credit local cleanup work in (WOTC) program. This their communities.” provides credits to employers Once trained, these St n ep who provide employment individuals receive a list of han i I saac s o e for individuals from target companies that hire from the groups who have faced chalprogram. New Horizons was one lenges in finding employment, such such company listed by Kansas City’s as ex-felons. Full Employment Council Inc., a recipient “The first time that it was brought to of grant funding from the EPA to promote my attention that there was a tax credit for workforce development and job training. hiring these individuals was through the EPA“People deserve second and sometimes a funded Brownfields Training Program, which third chance. We all could have been in the trains unemployed individuals in the environ- wrong place at the right time or raised by mental field,” Isaacson said. different families, and our situations would The EPA’s Brownfields Training Program have been different,” Isaacson said. “We have assists in building a “skilled workforce in great supervisors that have worked their way communities where EPA brownfields assessup and are leading changed lives because we ment and cleanup activities are taking place,” gave them a chance without judgement and according to the EPA. The purpose is to just believed that they could change.” 32 THINKING BIGGER BUSINESS // July 2018

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hile many Kansas and Missouri inmates have work-training programs such as KCI, the Home Builders Association of Greater Kansas City (HBA) has added its presence to positive re-entry efforts through a pilot program, Construct KC, launched in the spring. HBA, the Associated Builders and Contractors Inc., Heart of America Chapter (ABC) and Workforce Partnership created the six-week training program to develop tradesmen and women with the skills to enter the construction industry. Trainees live in the Johnson County Department of Corrections Adult Residential Center while working outside with the training program until they have completed their time. The program is financed by a $200,000 grant from the state of Kansas providing a total of four sessions; two occurred in spring 2018 and two more will be offered in spring 2019. “(Construct KC) is part of a multi-pronged approach the HBA is taking to ease the labor shortage in the homebuilding industry,” said Courtney Reyes, HBA workforce development manager. “Together, the three organizations are working to make men and women of all backgrounds aware of the many amazing opportunities this career path can open for (returning citizens).” Separating itself from other training programs, this partnership not only develops skills and trains in OSHA safety; it also hosts networking events and job fairs for trainees. This provides employers with direct access to trained labor, mitigating the time and costs associated with finding skilled employees. The program has seen a 100 percent graduation rate, Reyes said. Since March, a total of 16 students have gone through Construct KC, 15 of whom have been placed with companies in Kansas City. “We’re very pleased with the success of the program thus far and are exploring the idea of expanding it at some point,” Reyes said.

Katy Ibsen is a freelance writer and editor who enjoys the opportunity to share others' stories.


BIGGER | strategy S M A R T

( by Kate Liebsle)

S T R AT E G I E S

Bringing Experience to the Table Firm has specialties unusual for a small practice, but that sets it apart.

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“I’m a big believer in big firms,” he said. “But they aren’t structured to serve small to medium businesses. “We have smaller clients. Larger, blue chip clients can afford a larger firm. But we can still handle big business.” The firm values its experience but isn’t shy about telling a client or potential client that they need a bigger or different firm. “We have areas of deep experience,” Mann said. “But you need to know your limits. Sometimes it’s better to let go and refer the business out. If you work like that, the money will follow.”

elson Mann knows all about large, corporate law firms. He knows about providing services to large, corporate clients. He has nothing against large, corporate law firms or large, corporate clients. But, a few years ago, he decided that working in the large corporate world wasn’t for him any longer. When he and Kyle Conroy Nel son Mann set up shop at Mann Conroy, they Focusing on clients made a strategic decision to do things While practicing law is practicing law differently. Growth would come incrementally no matter where you do it, there are some and with attorneys who had specialty areas of decided differences at Mann Conroy from practice, not just general practitioners. That’s Mann’s last corporate gig. unusual for a small firm. The firm also is For starters, there are the offices. Gone is highly focused on entrepreneurs. the high-rise with private offices. Enter an “We have someone on corporate finance, open floor plan office in the West Bottoms. tech development/licensing, real estate “There are no walls in the building,” development, one who is full-time on Chapter Mann said. “We can just talk to each other. 11 bankruptcy and a patent attorney,” It’s a fun atmosphere.” Mann said. Being a smaller firm also affords Mann The firm’s focus is on adding value to its Conroy the opportunity to not focus just on clients, he said. Mann Conroy clients are with billable hours or quotas related to bringing in the firm for the personal touch a small firm clients or revenues. offers with a deep bench of experience. “We could be generalists, but that’s not what we wanted to be,” Mann said. Staying flexible Mann Conroy’s strategy has been a successful marketing tool. Most of the firm’s clients are smaller companies looking for attorneys with deep expertise in a specified area. Because of its size, the firm offers expertise at a lower fee than its larger counterparts and has the ability to make changes for clients as work progresses. Much like its entrepreneurial clients, the firm can be flexible and make decisions more quickly with less red tape than a big firm. The small strategy is not meant to be a slap in the face to large firms. Far from it, Mann said.

STRATEGY Hire specialists, not generalists. C O M PA N Y I N F O R M AT I O N

Mann Conroy 1316 Saint Louis Ave., Kansas City, Mo. (913) 219-1197 MannConroy.com TYPE OF BUSINESS

Specialty law firm FOUNDED

2016 AT T O R N E YS

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Don’t get the wrong impression, though. While Mann is happy with where the firm is now, he and Conroy are always looking for ways to expand, provided it’s thoughtful growth, he said. “We have some targets in mind,” he said. “We want the right person. Someone who fits in with our ethics and values and has the expertise we need for growth. “We’re not just adding bodies. We’re focusing on our clients.” Kate Liebsle is a freelance writer in the Kansas City area.

SMART STRATEGIES Want to do more with your business? Get smart. Our Smart Strategies articles offer advice from experts and experiences from other companies about what works—and what doesn’t. Whether it’s a learning opportunity or just a refresher, these guides offer a resource for owners to think bigger and do business better. Want to share your expertise with our audience? Contact editor@ithinkbigger.com with a topic and description of a proposed article.

Read on for more Smart Strategies SMART COMPANIES THINKING BIGGER®

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BIGGER | sales S M A R T

( by Ritchie Sayner)

S T R AT E G I E S

The Psychology of Price Assess strategies that resonate with consumers before relying on a tired formula.

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quick search on Google and you will find millions of entries on the topics of pricing psychology and pricing strategies. I have elected to recap strategies that, at the very least, most retailers should consider to determine price. In a practice still prevalent today, the retail price of an item is often determined by a buyer or receiving person applying a formula to the landed cost of an item in order to determine what it should sell for. Should cost really be the determining factor in what a customer is willing to pay? Does cost have anything at all to do with perceived value? Of course not, yet we see this all the time. I have questioned retailers about this topic for years and always get the same responses. Most typical are “double the cost and add $2 (supposedly to cover shipping),” or “multiply the cost by 2.2.” 34 THINKING BIGGER BUSINESS // July 2018

One strategy that I have used with buyers at market was to determine the selling price prior to knowing the cost. To do this effectively, a retail buyer must answer the question, “What will our customers be willing to pay for the item?” Once the cost is revealed, a determination can easily be made if the item fits within the company’s markup strategy or does not. Let’s discuss some additional strategies that you might consider as you determine price going forward. Remove the comma // Research has found that

removing commas may make the price seem lower. For example, $1,499 vs $1499. Round price // Round prices are more fluently

processed as opposed to non-rounded price points. Consumers can process a round price quickly. Non-round prices need more mental resources to process. Round prices are also more effective for emotional purchases, with this caveat: Try when possible to avoid price intervals like $100 or $500, as the assumption

may be that they are artificially high and plucked out of thin air. Use of a premium price to set an expectation of excellence // The iPhone X selling for between

$999-$1,149 is significantly higher than past models. Approaching or breaching the $1,000 threshold is noteworthy. Boosting prices into the four-digit realm crosses an important psychological barrier. Here’s another example that you may remember. In 1994, after a 14-year hiatus from their 1980 well-publicized breakup, The Eagles released a new album and embarked on a world tour. What was unique was that they were the first rock-and-roll band to break the $100 ceiling for concert prices. Eagles manager Irving Azoff stated that this had nothing to do with supply and demand, but rather a statement of quality. Fans would once again get to see and hear a great American rock-and-roll band, not a washed up “oldies” show. This was a fascinating use of price as it set a belief of excellence in the mind of the consumer. I saw this show … and it delivered!


Should cost really be the determining factor in what a customer is willing to pay? Does it have anything at all to do with perceived value? Of course not, yet we see this all the time.

Discount pricing // This is the high/low pricing

strategy. Was $70, now $35. You save $35. It is important when using this strategy to frame the sale around the savings versus the amount being spent.

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Reduce the pain of paying // Uber revolutionized

the taxi industry. With traditional taxi rides, you watch the meter increase with each minute stuck in traffic or each mile traveled. This evokes a painful sensation. With Uber, you know what the trip will cost before you start, and it’s billed right to your credit card. The perception of payment is also distorted by the use of gift cards and casino chips, two additional payment methods have that have created a separation between the customer’s money and the payment.

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Remove the $ // $$$ can remind some people

of financial pain. Ever notice that some restaurants are now pricing menu items without the $? The next time you are tempted to slap up the 25 percent off sign and call it good, remember that percentage-off pricing is irritating to the customer. It is tremendously overused and less profitable to the retailer. The psychology of pricing is a fascinating topic. I would encourage all retailers to experiment with a few of the points discussed in this article. You might discover a more profitable way of pricing your products.

Ritchie Sayner is the owner of Advanced Retail Strategies LLC. His company provides planning, analysis and consulting for independent retailers. He is the author of Retail RevelationsStrategies for Improving Sales, Margins and Turnover, available on Amazon. Volunteering for SCORE in his free time, Sayner strives to give back to the small business community. rmsayner@gmail.com

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SMART COMPANIES THINKING BIGGER®

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BIGGER | management S M A R T

( by Rob Adams )

S T R AT E G I E S

How Trust Leads to Business Success Increase retention, productivity and customer service by engaging with employees.

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s business leaders, we all want employees who are engaged, enjoy coming to work and truly want to make a difference. But how do we inspire employees around our mission, vision and values to ensure both happy employees and a successful business venture? The answer lies in forgetting the notion of “engaging” employees and instead focusing on fostering an environment built around trust. 36 THINKING BIGGER BUSINESS // July 2018

Why Trust Matters Employees want to be part of an organization and a team they truly trust. Those companies who are perceived by their employees as being a high-trust organization enjoy 50 percent higher employee retention rates, and their employees are 50 percent more productive while at work. Additionally, employees in high-trust organizations exhibit more energy and passion for their jobs, which translates into positive interactions with customers and, ultimately, improved sales. Conversely, if employees perceive their leaders to be untrustworthy, the consequences

are damaging. Employees simply will ignore leaders who they don’t trust. That’s not good for business. Trust matters, but how do you start building trust among your employees? Evaluating Your Culture It starts with your culture. First, start by evaluating your entire organization, top to bottom, to determine your culture. How do employees perceive you? How do they feel when they are at work? Do they talk positively about their work environment when the are away? Establishing a strong organizational culture is always a work in progress. Start by identifying opportunities to strengthen your culture and increase your employees sense of purpose within the organization. This will help you foster a trusting environment. When employees feel welcomed, listened to and supported, their productivity and enjoyment at work naturally increases.


Fostering trust among your employees is no longer an option. Instead, it’s a necessity for overall employee happiness, which leads to increased company performance.

Celebrating Employees Regularly gathering your employees is a powerful way to inspire, motivate and celebrate your team. But don’t just plan another meeting. As budgets tighten, you must be able to showcase how individual and company performance is improved as a result of your employee event. Furthermore, you have a unique opportunity to design incentive programs, sales meetings or all-employee celebrations in intentional ways, so these events foster a trusting relationship between your organization and its employees.

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At the culmination of your event, your employees should feel celebrated. They should feel cared about. They should leave the event with the understanding that they are part of an authentic relationship with their employer. All of these are attributes of trust and must be taken into consideration when planning your employee events.

For example, consider a baseline survey of your employees and their perception of your culture. Then survey them again after you’ve made strides to positively shift the culture of your organization. When planning key employee events, try measuring organizational trust levels before and after the event. This can identify specific behaviors by leaders that produce higher job satisfaction and less stress among employees. Fostering trust among your employees is no longer an option. Instead, it’s a necessity for overall employee happiness, which leads to increased company performance.

Measuring Trust There are a variety of ways to measure whether or not your employee engagement strategy is making an impact on your employees.

Rob Adams is president and CEO of Kansas City, Mo.-based BishopMcCann, an industry leader in producing meetings, incentive programs and events worldwide.

We’re SOCIAL … How About You? Keep up with what's happening in the KC small business community by connecting with us on Twitter, Facebook and LinkedIn. Join in discussions and network with other entrepreneurs, thought leaders and small business supporters. » Twitter: Follow @iThinkBigger » Facebook: Like Thinking Bigger Business Media » LinkedIn: Join the Thinking Bigger Business Media Group SMART COMPANIES THINKING BIGGER®

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BIGGER | marketing S M A R T

( by Kevin Oldham )

S T R AT E G I E S

We are All in E-Commerce Any company can find a way to transact with customers online.

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want to challenge your thinking about what e-commerce is. Projections from almost all e-marketing researchers are predicting rapid worldwide e-commerce growth through 2018, with no signs of slowing down. In 2016, e-commerce estimates were around $1.6 trillion, and that’s expected to grow to upwards of $2.5 trillion by the end of 2018. E-commerce growth in the U.S. alone is expected to be between 11 and 16 percent from 2013 to 2018. Eighty percent of U.S. consumers have made a purchase online. Big e-commerce retailers like Amazon, eBay and Zappos have brought e-commerce to the mainstream, but you don’t have to be a huge conglomerate to take advantage of online shopping growth. Whether you’re an entrepreneur just starting with an idea, a well-established retailer, a service provider or a tech company … you are already in e-commerce. If you have a website, you are in e-commerce. While you may not conduct financial transactions online, you are trading something far more valuable: attention and time of your site visitors. Put simply: We are “selling” online. Given how much effort companies put into getting prospects to their website, a simple 38 THINKING BIGGER BUSINESS // July 2018

Whether you’re an entrepreneur just starting with an idea, a wellestablished retailer, a service provider or a tech company … you are already in e-commerce.

mindset shift on what they see when they get there, and what your goal as the business owner is, can result in business growth. With the mindset that you are “selling” online, here are some reasons you should consider leaning into e-commerce (the kind where you transact for money online). Expand your business model Think of one thing you can sell online for actual money. Do you have a service that you can productize and sell online? Make money anywhere and everywhere When you own a brick-and-mortar business, it’s all about location. In e-commerce, you can set up a storefront through your domain name and sell products and services anywhere in the world from a single “location.” Instead

of hanging a “Sorry, we’re closed” sign on the door every time you step out of the shop, you can be sitting at a ballgame or on a beach in the Bahamas conducting business from your phone. You have site visitors. Can you convert them into revenue? If you can’t sell something online for money, can you get your visitors to do what you want them to do? Improve your company’s image Savvy shoppers will be looking for an online presence from your company, whether you are currently selling or not. Without an actual e-commerce component, you are sending a message that you’re not the newest and most advanced company on the market, and that can be perceived negatively by potential customers, causing a loss of potential sales. An e-commerce component allows you to remain on the cutting edge of sales trends and customer expectations. Offer better customer support When you provide customers with an e-commerce option, you allow them to reach you on their time, on their terms. E-commerce offers ease of communication through electronic channels, and sellers can track the buying habits of customers to let them know of sales and promotions that might pertain to them. It’s easier to keep current customers than to find new ones, and an e-commerce platform allows your customers to have a direct line to your business any time they need it.


Ease of use and maintenance For most businesses, it’s far easier and cheaper to set up an e-commerce component to their company than to establish a brick-andmortar location. With the online platforms like Shopify designed explicitly for e-commerce, setting up an online presence is easier than ever. The best way to get started is to pick one thing you can sell online. Once you have a product/service description and price ready, post it on your site. Use Shopify’s “Buy Button” or a PayPal button to get paid. Once you have a live item(s), let your existing customers know about it. They are the most likely audience to buy from you again. Kevin Oldham is CEO of Diffactory.com. He spearheads Diffactory’s growth strategy and marketing strategy for Diffactory’s clients. Before founding Diffactory, Kevin was the co-founder and CMO of United Real Estate. He is the recipient of over 50 marketing awards from USA Today, is a KC Rising Star and TEDx Speaker. koldham@diffactory.com

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BIGGER | hr S M A R T

( by Jeff Randolph )

S T R AT E G I E S

Hiring? Marketing Makes It Rain Resumes Establishing an employer brand makes recruiting easier in a tight job market.

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n economic terms, an unemployment rate between 4 and 6.4 percent is considered full employment. By any standard of measure, our nation is at full employment. If you are trying to fill job vacancies at your company, then you know firsthand how challenging recruiting talented employees really is today. The Society of Human Resource Management (SHRM) puts hard numbers to the things most business owners will tell you anecdotally—it’s hard to recruit and retain new talent. The SHRM LINE Report says hiring rates across manufacturing and service sectors are expected to rise, while candidate sourcing becomes more difficult. If for no other reason than to find and recruit talent, many companies are engaging in more robust employer branding strategies. If you’re already there or heading in that direction, keep these best practices for employer branding and marketing in mind during these hard hiring times. Know Your Employer Brand You have an employer brand, even if it isn’t formally defined yet. Sites like Glassdoor give applicants a look into your interview process, pay structure and management style. But employees in any industry know the ups and downs of working for specific companies because the word on the street is out there.

40 THINKING BIGGER BUSINESS // July 2018

When a company actively takes charge of its employer brand, it puts forth a cohesive external image of its workplace culture that appeals to like-minded employees. Attracting the best match for your company means defining exactly who that match is and reaching those candidates with messages about how they will love working there. Not everyone is a great match for your company, and that’s OK. Begin Treating Applicants Like Customers Marketing professionals eliminate obstacles that could prevent customers from interacting with your company. Eliminating barriers, perceived or real, helps convert prospects to customers and customers into loyalists. You approach customers with a sense of urgency because you need sales. Recruiting applicants should be no different. Use your customer approach with applicants to get their attention and resumes. No More Forcing Candidates to Jump Through Application Hoops In times of full employment, and especially when working with younger demographics, employers no longer have the luxury of multistep, company-specific application processes that take hours for applicants to complete, only to get 20-second consideration from the hiring manager in return. Application processes need to be revamped. Barriers to entry have been knocked down when working with customers, and now the same must be done on the applicant side. You want applicants to give the least amount of information, in the easiest way possible, so

companies can make decisions about moving on to the next stage of the hiring process. You can always continue to gather more information from applicants as you move along, just as you do with customers. Catch the Eyes of Those Who Aren’t Looking Low unemployment means the best talent certainly already has gainful employment. They may even be happy in their current position. To win the labor war, companies have to get their open positions in front of talent who aren’t actively looking. That’s not easy for HR to accomplish in general. It’s the kind of thing headhunters specialize in, at a hefty cost. But it’s exactly what marketing does on a regular basis. Marketing professionals regularly find customers who don’t know they need a product, present a compelling brand message and convert people from prospects to customers. This may mean you start using tactics more often reserved for customer acquisition, like display advertising, paid social targeting, and even radio and billboards. Give Top Candidates the Information They Want According to Glassdoor, the five most important pieces of information job seekers want employers to provide are: 1 Salary/compensation 2 Benefits 3 Basic company information 4 What attributes make it an attractive

place to work 5 Company mission, vision and values

Simple enough. But employers usually leave out the first one, or weasel around it with


“commensurate with experience” and “please provide salary history and requirements.” If you were talking about a customer interaction instead of a prospective employee, would it be different? Would you withhold information, or would you be more willing to give ranges and minimums so customers could better self-identify as prospects? When you’re working with passive job talent, companies must put more cards on the

table or let your well-established employer brand lead the way. When you build that employer brand, people start knocking on your door, even when the labor market is as tight as it is today. A well-established employer brand can lead the charge—and save you money at the same time. According to a study from 2014, 64 percent of millennials would rather make $40,000 a year at a job they love than $100,000 a year at a job they find boring.

Marketing for Recruiting and Hiring Needn’t be Complicated Put yourself in job seekers’ shoes, apply marketing principles to both consumers and candidates, and actively control your employer brand. Let the resumes rain. Jeff Randolph is VP/Director of Client Services at EAG Advertising & Marketing. jrandolph@smallbusinessmiracles.com

SMART COMPANIES THINKING BIGGER®

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SCALEUP! KC

B R A D F O R D I N T E R I O R G R O U P ( by Dawn Bormann )

Diving into the Details REMODELERS LEARNED THE RIGHT METRICS TO MEASURE TO INCREASE PROFITABILITY.

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hen Bradford Interior Group landed a lucrative construction project last year, it was a dream come true. It was exactly the type of momentum and traction that the Raytown full-service restoration and remodeling business needed. But the dream quickly shifted when delays and hiccups caused payment delays that lingered for more than five months. 42 THINKING BIGGER BUSINESS // July 2018

“It almost took us under,” says co-owner Larry Carr. “But we lived. We lived, we learned, we moved on.” But it was hardly business as usual for Carr and co-owner Rondale Bradford. The two knew the company’s trade skills were sound, but they could use some help with business administration and overall management. They didn’t let their egos get in the way of growing their business. “When you don’t know something, you seek out your resources and find out the information,” Carr says. It led him to ScaleUP! Kansas City.

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

ScaleUP! quickly prompted the owners to make some hard choices about the scope of their business. For starters, ScaleUP! advisers asked them to review the cost versus the gain of every single job.


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“The first thing that we ScaleUP! experts even proquickly identified was that vided a sounding we were paying attention board when Carr expressed to all the wrong numbers. interest in purchasing a We really didn’t do a building. They connected deep dive into what was him with a previous profitable. We didn’t have ScaleUP! class member any idea which jobs were who had gone through a making us money and similar process and had which ones were losing several tips to share. Ro rd ndal o money,” Carr says. f “We were completely d e Bra Carr quickly learned that ignorant to the process,” Carr mold remediation—something that says. “We didn’t know how much seemed highly profitable on paper‚ was money we needed down.” costing the small business more money than One of the most surprising classes for it was making. Mold work added a hefty cost Carr came when ScaleUP! brought in banks to their insurance premium. It was eyeand financial institutions for a “speed-dating opening to Carr and Bradford. They didn’t style” question-andwaste time cutting mold remediation from answer session. Carr later connected with their business offerings. one of the commercial bankers, who The same exercise caused them to rethink ultimately changed the way that Bradford their strategy on mudding and drywall work. Interior Group ran its finances. The work had been their bread and butter for “We learned so much more about just what years, but it was a time drain on their highlygoes into the qualifications and approval,” he skilled employees who could be completing says. “We thought it was all about your credit more profitable work. The company still takes score. We learned there was so much more on small mudding and drywall projects. that goes into it.” Other times, it has found subcontracting the The banker shared a formula that takes cashwork to be more efficient for the bottom line. debt ratio, cash flow and more into account. Some of those changes might seem simple, For years, the construction company but it was hardly easy, Carr says. He knew operated without a bank loan and relied on several families’ livelihoods, including his personal credit cards, paid off monthly, to own, were riding on the decision. make purchases. “There are some scary moments when “That was one of those things where it’s you’re wondering if you made the right another learning process. In our infinite decision,” Carr says. wisdom, we thought it was always best for us Yet having the guidance from ScaleUP! to not have any kind of debt,” Carr says. “In the advisers and hearing experiences of fellow end, we actually ended up hurting ourselves.” entrepreneurs in the same ScaleUP! class The banker offered other valuable day-togave Carr and Bradford the confidence to day advice too, Bradford says, including how make the changes necessary. to operate leaner. “We learned,” Carr says. “We’re in the CURATING CONNECTIONS process of obtaining a business line of credit, The expert advice provided by ScaleUP! is as well as we opened some business credit reason alone to take the class, Carr says. The cards to boost our business profile.” program brought experts from several fields to share their expertise, but it also offered ‘WE’RE MORE PREPARED’ roundtable discussions with classmates— Another key aspect they learned from fellow entrepreneurs who could share common ScaleUP! was to start working on the longexperiences and trouble-shoot with Carr. term business strategy now rather than “That has been invaluable,” Carr says, scrambling later. That meant identifying milestones and key indicators, and planning pointing out that it was a safe place for small for how to handle those challenges and when business owners to open up about challenges to hire more employees. and not worry about competitors stealing ideas.

ENTREPRENEURS

Rondale Bradford and Larry Carr COMPANY

Bradford Interior Group www.BradfordInteriorGroup.net Bradford Interior Group is a full-service restoration and remodel company that specializes in insurance work on residential and commercial properties. ARE YOU READY TO SCALE UP?

ScaleUP! Kansas City—a free program for KC small businesses—is looking for companies that want to supercharge their growth. Applications for the program's eighth cohort are due July 8. Learn more at www.scaleupkc.com

For now, Carr and Bradford have learned that it’s OK to hand off some responsibility to employees while they look at the big picture. They don’t have to answer every phone call and email. It also meant writing down all of their processes and procedures so new employees can be easily trained and onboarded quickly. Several other details stood out about ScaleUP! for Carr and Bradford, especially as it relates to construction accounting, which must take into account that invoices aren’t immediately paid and can get hung up when projects hit roadblocks. The owners expect their relationship with ScaleUP! advisers to continue for years. It’s another perk of the class that they don’t intend to overlook. ScaleUP!, they agree, has been incredibly valuable to Bradford Interior Group. “I think we’re more prepared to deal with a large-scale body of work,” Bradford says. The ScaleUP! advisers have seen it all, he says, and they know how to help you avoid headaches. “They kind of see into your future,” Bradford says, urging other entrepreneurs to apply to the course. Dawn Bormann is a freelance writer in the Kansas City area. SMART COMPANIES THINKING BIGGER®

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IN FOCUS

MBE/WBE Certification: KCI Goal ( by David Mitchell )

2018

The ABC’s of

Certification

44 THINKING BIGGER BUSINESS // July 2018


OWNERS WALK THROUGH THE HOW AND WHY OF PURSUING SPECIALIZED DESIGNATIONS. Rendering of new gates and waiting area at KCI. (Rendering courtesy of FlyKCI.com)

ustom Engineering Inc. is a small company, but the Independence firm is going to play a big role in the new single-terminal project at Kansas City International Airport.

C

On the air-side civil engineering portion of the project, Custom Engineering will be involved with runways and taxiways, and on the civil land side, it will work on roads and utilities. It also will be responsible for a central utility plan assessment. CEO Joe Davis said the mechanical and electrical engineering firm’s certifications related to being a minority-owned company helped land it such a major role in one of the city’s largest public infrastructure initiatives. Joe Davis “It’s highly unlikely we would be involved without certification,” Davis said. “Without it, large firms would most likely get all the work.” Edgemoor Infrastructure & Real Estate, the Maryland developer leading the $1 billion project, has pledged to meet SMART COMPANIES THINKING BIGGER®

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IN FOCUS

MBE/WBE Certification: KCI Goal ( by David Mitchell )

2018

35 percent participation rate for minorityof business. MWBE goals are important to leveling the playing field and equalizing opporand women-owned firms. tunities. Minority- and women-owned Kansas City, Mo., Councilman small business should be included Jermaine Reed said the city’s in civic and public projects Minority, Women and to allow them to build their Disadvantaged Business Enterprise program has capacity, enhance their been in place since the skills and invest in their city authorized its first workforce.” MWDBE disparity study Davis added that a in 1996. The program project of this magnitude is designed to ensure also allows small businesses minority and women to build new relationships business owners in the and enhance their resumes. Jer ma ine Re ed area have an equal oppor“And you can take that to tunity to compete for city other cities and states nationcontracts and services. wide,” he said. “This project will have a lasting effect on WHY CERTIFY? the city and its residents,” Reed said of the Davis said Custom Engineering has been airport. “Therefore, it is imperative that the certified as minority-owned through the wealth of the project is spread among all levels

city since the 1990s, and the majority of the company’s work comes through its MWDBE program. The city has a directory that companies can search when they are trying to fill MWDBE requirements. “It assures them that you’re certified,” Davis said. “It also provides descriptions of the work you perform and general information about your company.” The process, he said, has led to repeat business for Custom Engineering, which has more than a dozen certifications. “Certifications have been essential to our success in getting access to clients and contracts,” he said. “It’s not a guarantee, but it helps get your foot in the door.” Whether a minority- or woman-owned business should pursue certification depends a lot on who its target clients are, said Angela Hurt, founder and CEO of Veracity Consulting Inc. in Prairie Village.

Rendering of new single-terminal at KCI. (Rendering courtesy of FlyKCI.com) 46 THINKING BIGGER BUSINESS // July 2018


HELPING THEM GROW

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he large companies leading the airport project are working to help smaller partners make the most of the opportunity. Edgemoor is partnering with Lead Bank, a local institution that will provide low-interest loans to minority- and woman-owned businesses involved in the project. Lead Bank also will serve as a partner helping Edgemoor facilitate its Pay Without Delay program, which helps ensure that MBE, WBE, SLBE and veteran-owned subcontractors are paid within 14 business days of submitting a properly documented request for payment. Meanwhile, the Kansas City Strategic Partnership Program is providing small business owners and leaders with the business fundamentals and core project management skills to advance their operational goals and prepare them for sustainable growth.

design-builder Clark | Weitz | Clarkson and local industry experts. The six-month project covers project management fundamentals, estimating, purchasing, basic accounting and financial reporting, bonding and insurance requirements, and how to read and understand contracts, as well as other business skills, such as how to develop an effective presentation. The course is supplemented by seminars from outside experts. The class, which launched in April, has 35 participants, including minority, women and disadvantaged business owners and leaders from the metro area, Stricker said. Classes continue through early September. The Edgemoor Team is committed to offering the program throughout the design and construction of the new terminal, and another session is expected to be offered starting in the fall, he said.

Geoff Stricker, managing director for Edgemoor, said completing the course does not guarantee participants a contract on the new terminal, but it does position them to take on larger, more complex opportunities. The MBA-style course includes a curriculum of weekly classes taught by representatives from the Edgemoor Team

1

2 1 Strategic Partnership Program courses are led by Edgemoor Team builder Clark | Weitz | Clarkson and outside industry experts. Dr. Leonard Greenhalgh, a professor at Dartmouth College and renowned small business guru, delivered the keynote address during the kick-off class. 2 KSCPP partipants include a wide range of small business owners and leaders from across Kansas City. (Photos courtesy of Clark | Weitz | Clarkson, A Joint Venture)

SMART COMPANIES THINKING BIGGERÂŽ

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IN FOCUS

MBE/WBE Certification: KCI Goal ( by David Mitchell )

2018

BY THE NUMBERS: MINORITY-OWNED BUSINESSES he Minority Business Development Agency within the U.S. Department of Commerce has a state-by-state breakdown of minority-owned firms, based on 2012 survey data.

T

NATIONWIDE

8 Million All minority-owned firms

KANSAS

2,978

18,249 All minority-owned firms

OWNERSHIP

5,763 5,643

Hispanic

Black/AfricanAmerican

MISSOURI

42,744

4,833 2,227

Asian

American Indian & Alaska Native

7,165

All minority-owned firms

OWNERSHIP

6,178 24,685 9,752

With employees

Hispanic

Black/AfricanAmerican Asian

48 THINKING BIGGER BUSINESS // July 2018

With employees

2,895 323

American Indian & Alaska Native Native Hawaiian & Pacific Islander

Source: MBDA.gov minority-owned business data by state

Veracity is not part of the KCI terminal project, but it does work with government entities. “A company should first know its customer,” Hurt said. “The No. 1 question I always ask myself is this, ‘Does this organization have a supplier diversity initiative, and would a certification even matter?’ If I only work with small businesses, they usually wouldn’t have that requirement. Some states— such as Kansas—don’t have a supplier diversity initiative/spend goal.” Hurt noticed the rising demand for certifications more than a decade ago before she started her own business. An g ela Hurt “The company I worked for started losing opportunities that we were well-qualified for because they were now being earmarked for a diverse supplier,” she said. “While there were many woman- or minority-owned and certified companies in Kansas City that did IT staffing work, there were no true IT solutions providers and I saw that as an opportunity so that my clients didn't have to select woman- or minorityowned firms from New York to partner with. My initial goal was to be their local diverse consulting partner.” Once you figure out whether certification matters, Hurt said, you then have to understand which certification a prospective client recognizes because different sectors require different certifications. “If you work with corporations, and you are woman-owned, you would want to get a WBE from Women’s Business Enterprise National Council,” she said. “If you are a minority, you could get an MBE certification from National Minority Supplier Development Council (NMSDC), but there is usually a regional certifying agency. In the Kansas City area, Mountain Plains Minority Supplier Development Council is the certifying agency for NMSDC.” Working with state, federal and local governments can also require certifications, but not necessarily the same ones. “State government agencies recognize the certification offered by that state,” Hurt said.


“For example, Kansas doesn’t have a WBE, they have a DBE (disadvantaged business enterprise). In my experience, each state and local government that has a diversity supplier initiative requires you to be certified by that state or local government. The federal government has certifications that they also recognize, but some of those are reciprocal to national certifications you may hold. Again, they can all be significant or not significant at all. It’s all about knowing your customer.” HOW TO GET STARTED

Hurt said a company’s first certification likely will be its most time-consuming. “It is often a daunting task to people, but the process is actually quite simple,” she said. “Every certification is a checklist of the things required for that certification. I recommend collecting the information once, creating a hard copy folder or an electronic folder of everything required.” That list could include a business’s articles of incorporation, signature cards for banking, an owner's birth certificate and driver’s license, personal and corporate tax information, etc. “The good news is that once you have it in one place, it drastically speeds up the application process for other certifications you may want to go after,” Hurt said. Hurt said fees for certifications range anywhere from $300 to $1,200 and many require an annual renewal fee. “If you hold multiple certifications,” she said, “this can get to be expensive and a time suck.” Davis said some public certifications don’t require a fee. Regardless of which certification pursued, Davis emphasized filling out the paperwork accurately. “It’s important to get all the information right the first time because if you don’t answer correctly, or if your answers are incomplete, your application is going to the bottom of the pile,” he said. “And they move on to the next one.” That’s important, he said, because the process can take 60 to 90 days.

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

LGBTBE CERTIFICATION

L

GBT Business Enterprise certification is offered by the National LGBT Chamber of Commerce. It verifies that eligible businesses are majority-owned by LGBT individuals and in some cases counts toward diversity supplier initiatives. Veracity Consulting CEO Angela Hurt initially was hesitant to pursue the certification. “I didn't feel it was necessary due to the fact that we already had a long list of certifications. And quite frankly, I didn't know if it would help or hurt business,” she said. It was around 2011, when the federal government repealed the U.S. military’s policy of Don’t Ask Don’t Tell, that Hurt decided “it was time that we stand up and be proud of this aspect that makes up our ownership.” After consideration, Hurt concluded that it wouldn’t hinder Veracity—but she didn’t expect it to help, either. “In the past 18 months, I have seen other corporations start talking about LGBTBE as part of their inclusion, and while many in town still have not started adding it to their actual Diversity Supplier Initiative, there are many that have,” she said. SMART COMPANIES THINKING BIGGER®

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BIG | shots

Seamstress Training by Rightfully Sewn Godance Bulongo, right, a seamstress in training at Rightfully Sewn, threads a machine with the help of her interpreter, Papi Kasindi, right, and instructor Pamela Clark, center. Rightfully Sewn opened its new atelier in June at 1800 Wyandotte, Kansas City, Mo., in the Crossroads Arts District. The organization provides seamstress training and a fashion designer residency. There will be a job fair for the current seamstresses at the end of their session in July.

Production Overseas for OYO OYO COO Graham Ripple, right, meets with Rong-Fa Lin, the plastic manufacturer for OYO’s products. Ripple visited Taiwan in May to oversee the pilot production run of the DoubleFlex Black PRO and Personal Gym PRO, which will be available in August. (Photo courtesy of Graham Ripple)

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