June 2018—Thinking Bigger Business by Thinking Bigger Business Magazine

VOL. 27 // ISSUE 6 // JUNE 2018

WATERSHED MOMENT DuBois Consultants found profitability in a narrowed strategic focus.

METRO DEVELOPMENT Big Projects Build Up Small Businesses

BIGGER FINANCE Â» iThinkBigger.com

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CONTENTS

JU NE 2018 VOL. 27 // ISSUE 6

IN FOCUS

46 Big Projects Build Up Small Businesses

Kansas City’s large development projects have a lasting impact on area small businesses—and not just those in construction.

D E PA R T M E N T S

07 The Bigger Picture 08 Legislative Briefs 09 Biz Bits 12 BIG | deals 14 25 Under 25 ® Updates 50 BIG | shots

F E AT U R E

24 KC Rising Aims Higher

Metro-wide initiatives offer opportunities for small businesses.

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

38 BIGGER | strategy

20 | KC ENTREPRENEURS

An Unconventional Hybrid

40 BIGGER | hr Why Employees’ Personal Safety is Important to Your Business

HE ON T R E V CO

41 BIGGER | customer service Better Hires Lead to Better Customer Service

Ajamu Webster learned that his company

41 BIGGER | finance Find the Right Funding for Your Business

couldn’t be all things to all clients. A strategic focus was a watershed decision. 15

THINKING BIGGER BUSINESS // June 2018

SOUL-SEARCHING PAYS OFF

B IG I N F LU E NC E

| 16

B IG S TA R T S

| 16

MADE TO LAST

Structural engineer Sosena Teklemariam looks over project plan details.

C O M PA N Y T O WAT C H

KC M A D E I T

B IG G E R | S T R AT E G Y

Command.App

WomenSpirit

TygerWorks

Multimedia platform delivers solution for complex product presentations.

Seamstress stiches a niche in custom clerical vestments.

Two companies combine forces to offer an unexpected new service. SMART COMPANIES THINKING BIGGERÂŽ

CONTENTS

JU N E 2018

ON THE WEB // iTHINKBIGGER.COM Web Columnists

PRODUCED BY

Visit www.iThinkBigger.com for articles full of insights and strategies from our exclusive Web columnists.

Thinking Bigger Business Media Inc. ADMINISTRATIVE

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

Kelly Scanlon Business Development PRODUCTION & GRAPHICS

Carolyn Addington Production and Traffic Manager

aspire for more Shawn Kinkade

Look Out— Your Technician is Showing

modern mindfulness for busy people Gail Spangler

The Secret Sauce in Today's VUCA Workplace

whitespace revenue zone Elizabeth Usovicz

To Build Your Pipeline, Follow Through on Your Follow Up

Kevin Fullerton Design Consultant Dan Videtich Photographer CONTRIBUTING WRITERS

Ruth Baum Bigus, Dawn Bormann, Pete Dulin, Narbeli Galindo, Tracey Hawkins, Julius Karash, Kate Leibsle, David Mitchell, Aaron Reese

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THINKING BIGGER BUSINESS // June 2018

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THE BIGGER PICTURE

Let's Start at the Very Beginning

he very beginning is a very good

enjoy the ride, but you may take a wrong

place to start, according to one

turn or hit a banana peel or two while you’re

singing nun.

looking around—and you probably won’t be a top competitor. But when you go in

It’s also where Valerie Vaughn of Apex Business Advisors recommends putting an exit strategy into place for your business—at the outset. Many entrepreneurs start a business because they like

with the goal to be a top racer, you’re focused and looking at what’s ahead. (This can be roughly extrapolated to chess, albeit without the banana peels.)

what they do, so it makes sense that in the excitement

It’s the same theory in your business: With the goal in

of a new venture, selling that brand-new business is the

mind of selling, you’re more likely to focus on building

furthest thing from their mind.

value without getting distracted by less lucrative

But what Vaughn says makes sense: When you decide to sell your business, you look at it with the perspective of what value it has to an outside party. If you create that

opportunities that present themselves. And you’re more likely to meet a target valuation if you’ve set a goal and steered toward it all along.

mindset at inception, you’ll make business decisions

Exiting your small business can be a complicated and

with the end goal in mind.

even emotional milestone, and we know that. Read up

Think of any game you might play, be it chess or Scrabble or Mario Kart. If you start a Mario Kart race just to see how it goes and check out the scenery, you’ll

Katie Be an

on the subject in our special section on page 29, and join us at our upcoming panel June 27 to start working on your game plan.

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

SMART COMPANIES THINKING BIGGER®

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

MISSOURI Missouri Legislature Opens Special Session Missouri legislators convened a special session on May 18 following the end of the lawmakers’ regular session. The aim of the monthlong session is to consider “disciplinary actions” against Gov. Eric Greitens based on allegations of misconduct. Hours before the special session began, Cole County Prosecutor Mark Richardson announced he would not file charges against Greitens on allegations that the governor’s campaign used a charity donor list for campaign fundraising.

A few days earlier, prosecutors also dropped a charge of felony invasion of privacy. Greitens was accused of taking and transmitting a picture of an at least partially nude woman with whom he had an affair without the woman’s permission.

Decision on Medical Marijuana Goes to Voters Though state legislators considered the issue this session, Missouri voters will decide in November whether to legalize medical marijuana. Lawmakers could not come to agreement on an amendment that would have made Missouri the 30th state to legalize medical marijuana. Multiple groups submitted petitions to the Missouri Secretary of State asking to put medical marijuana on the ballot this fall.

Cleaver Honored with Good Neighbor Award U.S. Rep. Emanuel Cleaver, D-Mo., received the Truman Good Neighbor Award in May. The award is given to someone the Truman Foundation believes holds similar characteristics to U.S. President Harry Truman, a native of Independence.

FEDERAL Farm Bill Rejected A federal farm bill was defeated in May by a vote in the U.S. House of Representatives. The bill aimed to include work requirements for food stamp recipients, which proved to be a sticking point for Republicans and Democrats alike.

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THINKING BIGGER BUSINESS // June 2018

BIZ BITS

Lee’s Summit Chamber President Resigns The president of Lee’s Summit Chamber of Commerce intends to step down this month. Tim Arbeiter submitted his resignation, effective June 15. Arbeiter will become president of the Missouri Economic Development Council, a statewide nonprofit organization. The chamber has begun a search for a new president.

1 Million Cups Turns 6 In April, 1 Million Cups celebrated its sixth anniversary. The program that gives entrepreneurs the opportunity to pitch their new ventures was launched by the Ewing Marion Kauffman Foundation.

Since its founding in Kansas City, the program has spread to 185 communities. In 2018, there have already been more than 1,365 entrepreneur presentations nationwide.

Grant Will Help Missouri Small Business Exporters The Missouri Department of Economic Development received a $400,000 grant through its STEP program to help small businesses enter and navigate international markets. The funding from the U.S. Small Business Administration will support eligible small businesses in exporting to key markets and marketing.

SBA, VA Announce Partnership to Boost Veteran Self-Employment The U.S. Small Business Administration T:7.5” announced in May that it will partner

with Veterans Affairs’ Vocational Rehabilitation and Employment (VR&E) program to provide valuable assistance to veterans careers futures in selfemployment. Assistance will be provided by the SBA, which supports entrepreneurs and small business owners through resources to help their business grow, as well as its resource partners and the U.S. Export Assistance Centers. Veterans, service-disabled veterans and service members all will have access to networking events, job-seeking skills, coaching and entrepreneurship training under the partnership. The two agencies will educate current staff on the services available through the partnership and individual agencies; they also will continued

T:4.625”

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SMART COMPANIES THINKING BIGGER®

BIZ BITS

facilitate national, regional and local referrals for veterans as part of the assistance.

Hack Midwest Returns in July Hack Midwest, a 24-hour coding competition for software engineers and computer science students, is set for July 21-22. Dubbed Kansas City’s largest coding competition, the event is expected to welcome 300 developers within 50 teams vying for a chance to win prizes and recognition for their work. Teams will be tasked with building problem-solving applications for industries such as fintech, health care, sports, media, manufacturing and transportation. Applications can be web-based or mobile. New this year is the Company Challenge category, squaring off teams from the region’s

leading firms to create an additional element of competition and camaraderie. Winning teams will walk away with bragging rights and a 3D-printed Hack Midwest trophy. The competition, presented by Rubrik, will take place at the Merriam headquarters of ShotTracker, a local tech company specializing in real-time statistical and performance analytics for entire sports teams. Registration is open at HackMidwest.com. The entry fee for corporate or startup teams interested in the Company Challenge is $500; individual teams or single person entry is $50.

MU Research Finds Investor Gender Bias

The study, “Do women CEOs face greater threat of shareholder activism compared to male CEOs? A role congruity prespective,” was published in the Journal of Applied Psychology. “Our results are quite disconcerting,” said Daniel Turban, a professor of management and the Emma S. Hibbs/Harry Gunnison Brown Chair of Business and Economics at the Robert J. Trulaske, Sr. College of Business. “Shareholders who buy 5 percent or more of a publicly-traded firm with the intent of changing the direction of that firm must register with the Securities and Exchange Commission as activists, which makes activist investing a very public act. If gender bias is present in such public actions, we have to wonder what other challenges these women are facing that are less public.”

Research from the University of Missouri found that businesses led by female CEOs are more likely to be targeted by activist investors who buy shares of a company intending to direct management decisions.

Survey Shows Record-High Optimism A survey from the National Federation of Independent Businesses indicated a record level of small businesses are experiencing profit growth. The Small Business Optimism Index reached 104.8 in April, the highest level in 45 years of the NFIB Small Business Economic Trends Survey. April was the 17th consecutive month of historically high readings. The frequency of positive profit trends went up three points in April due to gains in operating productivity and stronger sales as well as the newly implemented tax law. Reports of capital outlays rose three points this month to 61 percent, indicating that small businesses are confident and strong enough to make investments. In addition, more small businesses are planning capital outlays in the next few months, increasing three points to 29 percent. 10

THINKING BIGGER BUSINESS // June 2018

Difficulty finding qualified workers continues to be a major obstacle for small businesses, with 22 percent citing it as their single most important business problem (up one point).

Local Financial Literacy Program Unveiled A new financial literacy program can help employers improve productivity while giving employees tools to manage stressful situations. Overland Park-based Resource Investment Advisors Inc., a national co-op of independent financial advisers, has launched Financial Elements, a financial literacy and wellness program aimed at employees. The program simplifies financial concepts for employees to increase their financial literacy and reduce associated stress through education and behavior coaching. Following a private online assessment of employees, the program identifies the financial health of all team members. Mentors are then deployed to assist employees in personal budgeting, retirement planning, debt and investment counseling. Active check-ins and evaluation of goals are reviewed with mentors, providing employees with accountability. Financial Elements mentors are financial professionals who have experience in developing comfortable and innovative means for alleviating financial anxiety. Interested employers can learn more at Financial-Elements.com.

Lead Bank Partners with KCI Developer Kansas City’s Lead Bank will help Edgemoor Infrastructure & Real Estate LLC meet its ambitious goals for disadvantaged business participation in construction of the new terminal at Kansas City International Airport. Edgemoor, the lead developer on the KCI project, selected Lead Bank as the financing source for local diverse and disadvantaged businesses working on KCI. Lead Bank will implement a low-interest working capital loan program for businesses seeking to perform project-related services on the new terminal.

“This is an exclusive opportunity to deliver affordable financing to women, minority and disadvantaged businesses, a first of its kind,” said Greg Bynum, Lead Bank president.

Central Exchange Offers Catering The Central Exchange has introduced Central Catering Co. Executive Chef Peter

Beffa and his staff now cater events at the Central Exchange or at clients’ homes, offices or event sites. Central Catering offers hot meals, boxed lunches or individual fresh or frozen meals. Visit CentralExchange.org for details.

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BIG | deals

AWARDS & RECOGNITION

EXPANSION

M&A

Local Business Owners Among EY Heartland Finalists Heartland finalists for Ernst & Young LLP’s 2018 Entrepreneur of the Year Award include several Kansas City-area business leaders. The program recognizes entrepreneurs who excel in areas such as innovation, financial performance and personal commitment to their businesses and communities. The finalists were selected by a panel of independent judges. Award winners will be announced at a gala June 14 in Minneapolis. Metro-area finalists include: » Dustin Doll, Accord Group // Lee’s Summit » Gary Fish, Fishtech Group LLC // Kansas City, Mo. » Erica Brune, Lever1 // Kansas City, Mo. » Augustus “Gus” Griffin, Cloud “Bud” Cray Jr. and Karen Seaberg, MGP Ingredients Inc. // Atchison » David Dehaemers Jr., Tallgrass Energy Partners LP // Leawood

Phone Medic to Become Franchisee of uBreakiFix Phone Medic, a locally owned electronics repair retailer, has announced a partnership to accelerate growth. Phone Medic will become a franchisee of uBreakiFix, a nationwide industry leader in walk-in repairs. Based in Overland Park, Phone Medic was established in 2014 and services devices from smartphones to drones. Over the next two months, it will transition to the uBreakiFix brand. The partnership allows the stores access to exclusive partnership deals with brands including Google and Samsung.

MEP Firm Engineers Strategic Merger

Venice Communications Wins Fountain Awards Venice Communications Inc., partnering with Reactor LLC and K2Media, won three BMA Fountain Awards, including Best in Show for its Berkley Riverfront integrated PR and brand campaign. The campaign aimed to build awareness of Berkley Riverfront as a destination and build interest from the public, investors and developers.

AACC Names 2018 Entrepreneur of the Year The Asian American Chamber of Commerce of Kansas City honored a local businessman in May as its 2018 Entrepreneur of the Year. Mukesh Goel is president of Food & Fuel Expresso and Star Transport.

THINKING BIGGER BUSINESS // June 2018

Brewing Operation Seeks Investors Kansas City Breweries Co. LLC is selling shares of stock in an effort to increase production of its signature beer brands. The company is seeking $100,000 to develop a local production facility and begin large-scale volume production. KCBC launched as microbrewery doing business as a distributor so the company could distribute its own products during proof of concept. FINANCING Startup Launches Equity Crowdfunding Campaign Wise Power announced the launch of an equity crowdfunding campaign. The startup offers intelligent energy storage and Internet of Things-enabled lifestyle management. Led by CEO Kevin Williams, it has offices in Kansas City, Mo., and Santa Monica, Calif. Wise Power is raising capital through StartEngine, an equity crowdfunding platform.

Malone Finkle Eckhardt & Collins Inc.

consulting engineers announced a strategic merger with RTM Engineering Consultants as an opportunity to expand services for clients and opportunities for team members through its partnership. The Overland Park-based firm specializes in mechanical, electrical and plumbing engineering (MEP) for health care facilities, schools and hotels. The merger positions Malone Finkle Eckhardt & Collins to offer additional service in fire protection and civil engineering. Prior to the merger, MFEC served a threeto four-state region with 40 employees; it now has 260 employees and reaches a nineto 10-state region. New Stakeholder Bolsters Real Estate Investment Business Kansas City-based Affinity Worldwide has made an equity investment in OwnAmerica, a platform that operates a national marketplace for single-family rental portfolios. Terms of the investment were not disclosed. Affinity Worldwide is a family of companies spanning a broad spectrum of industries. Its entities include Think Realty and National Real Estate Investment Group. The investment connects Think Realty members with OwnAmerica’s online tools to help them find and secure properties and scale portfolios according to their personal investing goals. NREIG is now the preferred insurance program of OwnAmerica. Heritage Tractor Doubles Footprint with Acquisition Heritage Tractor announced its acquisition of Larson Farm and Lawn. Heritage Tractor, a Midwest dealer of John Deere products headquartered in Baldwin City, Kan., adds Larson’s John Deere service center to its network.

Glenn Larson, CEO of Larson Farm and Lawn, desired to focus efforts on his semitrailer business, said Jessi Royer, marketing manager at Heritage Tractor. Heritage Tractor, which had been looking to expand its footprint, seized the opportunity. The company had nine locations prior to the acquisition, as did Larson. Of those 18 locations, one community merged stores for a total of 17 locations across Missouri, Kansas and Arkansas. ON THE MOVE ProPharma Group Founder Steps Down as CEO Overland Park’s ProPharma Group announced a new CEO. Dawn Sherman succeeded founder and CEO Jeff Hargroves in May. Hargroves will remain on the company’s board.

ProPharma Group offers comprehensive compliance services for pharmaceuticals, biologics and devices. Sherman comes to ProPharma Group from EnvisionRxOptions, a subsidiary of RiteAid, where she was president. Previously, she was COO for Teva Pharmaceuticals Europe BV and COO of Medco International BV. Bliss Associates Names New President Brian Reardon has been named as president and owner of Bliss Associates, an 83-year-old firm specializing in appraisal of real estate property throughout the Midwest. Reardon takes over the role of president from Gregory Nitschke. Reardon was a vice president and partner at the firm since 2012; since that time, the firm’s revenue has grown 21 percent. Bliss, headquartered in Kansas City, Mo., has more than 25 employees, principals and associates.

SBA Lending Team Expands Landmark National Bank has made two hires for its new small business banking team in Overland Park. Tim Barron has joined as senior vice president and Kyle Knoth as vice president. The new lending team will specialize in U.S. Small Business Administration loans. REBRANDING Renovation Company Rebrands SGF Contracting Services Inc., a national provider of rehab and renovation services for real estate investors, asset managers, property management companies and REITs, has rebranded as Radius Renovation Group. The company, founded in 2014, is based in Springfield, Mo., and has offices in Kansas City, Mo., and Mooresville, N.C. It serves clients in 26 states.

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2 5 U N D E R 2 5 ® U P DAT E S

Big Momma’s Bakery-Café Returns Joyce Brown announced a plan to reopen Big Momma’s Bakery-Café (Class of 2012)

at 4707 E. Bannister Road, Kansas City, Mo. The bakery most recently had been located in Crown Center and closed in 2014.

EAG Earns 20 Marketing Awards EAG Advertising & Marketing (Class of 2007)

earned 16 Fountain Awards and four Certificates of Merit at the Business Marketing Association and American Marketing Association Fountain Awards in May. Fountain Award projects are judged on creative, production, objective/strategy and results. It won awards in categories ranging from a single promotional email to a new or redesigned website over $50,000.

•

Distillery Founder Aims to Rejuvenate East Bottoms Andy Rieger, co-founder of J. Rieger & Co. distillery (Class of 2017), is pursuing a $11.3 million redevelopment project near the distillery in Kansas City’s East Bottoms. The proposal describes a vacant, threestory building at 507 Montgall Ave. being redeveloped into offices, retail and distillery space.

Fire Destroys Office Building Fire destroyed a North Kansas City building May 8 that was home to Key Cos. (Class of 2012) and a dozen other businesses. Fire officials said the fire resulted from a cigarette butt swept by winds from an outdoor patio into the building, which did not have sprinklers.

MARKETING

•

Towner Communications Makes Acquisition Towner Communications (Class of 2017), based in Mission, recently announced its acquisition of a local telecommunications provider. The deal was completed in early March. The purchase of ITalk Telecontracting Inc. came after Towner received intel in 2017 of Toshiba selling its business phone division— a specialty of ITalk. Towner, an enterprise-level business, increased from 10 to 15 employees through the acquisition. “With us making tweaks to their business and, of course, with the natural growth of what Towner was before, we will probably triple in revenue,” said Julie Towner, CEO of Towner Communications.

DESIGN

•

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

THINKING BIGGER BUSINESS // June 2018

SIGNS

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 | MIDWEST SPORTS PRODUCTIONS

Giving Back is a Team Effort The team at Midwest Sports Productions has a love of giving back that rivals its love of the game. The company organizes regional tournaments for youth baseball and fastpitch softball, some of which involve more than 500 teams. But it also partners with charities including Alex’s Lemonade Stand Foundation, JDRF, House of Hope, Angels for Autism and others. “The need to serve tends to come with having a team of people on your staff that lead with their hearts and are filled up by serving others,” said Alexa DiSpirito, director of communications for MSP.

MSP can’t help but take advantage of its unique ability to reach thousands of young players, she said. “Whether it’s asking our teams to rally behind a cause during an event through donations or bringing supplies during a diaper drive, in our minds, we’ve been given the platform to do so much more than just put on youth fastpitch and baseball events, and it’d be extremely unfortunate if we never did anything else with it,” DiSpirito said. In April, MSP wrapped up the Alex Gordon Classic, in which teams were asked to participate in fundraising for the cause of fighting childhood cancer by putting on a lemonade stand or other event. More than 200 baseball teams participated, and the top three fundraisers earned prizes that included meeting Kansas City Royals left fielder Alex Gordon.

In the past four years of supporting Alex’s Lemonade Stand Foundation, MSP has helped raise $165,000. Another cause supported by the company hits close to home. The Josh Williams Memorial Scholarship Fund honors an employee who died unexpectedly. Since 2013, it has awarded more than $61,000 to Kansas City-area high school seniors. MSP’s staff also participates in community service, DiSpirito said. “We try hard to do one team bonding exercise each month that does something for others,” she said. “We’ve bagged rice for Something to Eat, donated snack bags to the Ronald McDonald House and many others.” To continue to capitalize on its platform, the company has allocated staff to its charitable arm, called MSP Love. “Truthfully, we do so much, but it never seems like enough,” DiSpirito said. “Recently we’ve dedicated a few individuals on our team to focus solely on the community aspect of our

1, 2 & 3 Alex Gordon Classic. 4 MSP packages meals for the Something to Eat charity. 5 Snack bags are packaged by MSP to provide to the Ronald McDonald House. 5 2018 Josh Williams Memorial Scholarship Fund awards class. (Photos courtesy of Midwest Sports Productions)

company and bring to fruition all plans we have had in our back pockets for community outreach projects and ways we truly want to give back.” SMART COMPANIES THINKING BIGGER®

AT A G L A N C E K C

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

BIG STARTS | INTREPID DIRECT INSURANCE

MADE TO LAST | PIONEER MUSIC COMPANY

Pioneer Music Co. was founded in 1869. Above is a check written to the original entrepreneur in 1879. inset // Dan Haight's great grandfather signing a contract with Philco to become a dealer, and featured on the dealer magazine cover in 1945. (Photos courtesy of Pioneer Music Co.) top //

Hidden Savings Firm targets busy business owners. COMPANY // Intrepid Direct Insurance ENTREPRENEURS // David Kramer, EVP, and Jeremy Marsch, CTO WHAT THEY DO // The Intrepid Direct Insurance team’s deep

industry knowledge saves franchise restaurant and auto aftermarket owners 15 percent on premiums, on average, with a 10-minute online application. “Intrepid Direct uses technology to eliminate the traditional insurance-buying process and delivers most quotes in 24 hours or less, faster than any competitor,” Marsch said. “A team of insurance and industry experts review proposals with clients and are available any time for personalized support.” THE INSPIRATION // As operating expenses rise for businesses,

Pioneers in Customer Service Founded nearly 150 years ago, Pioneer Music Co. transformed from a farm equipment and hardware retailer to a wholesale equipment supplier. Pioneer sells to companies that custom-install audio and visual equipment and systems in residential and commercial settings. “Each generation had a visionary owner to look at where you’re at, what you’re doing, and prepare for the future,” said Dan Haight, fifth-generation owner of Pioneer Music. “Don’t be complacent. Constantly look ahead.”

Intrepid Direct’s team identified insurance as a controllable yet hidden cost for most owners. Franchise restaurant and auto aftermarket owners have limited time. By operating online and leveraging proprietary industry data, Intrepid Direct’s team found time and cost efficiencies lost in the old insurance quoting system, while preserving high-level customer service.

Pioneer’s specialized niche serves installers that need a wide array of equipment on demand not easily available elsewhere. The company’s strategy sidestepped competition from big box retailers, such as Walmart, that put mom-and-pop electronics stores out of business, and online retailers that don’t carry Pioneer’s multiple lines of specialty products.

WHAT’S NEXT // “Intrepid Direct rolled out an advanced online

“We have a big product selection for custom integration jobs,” Haight said. “We’re a one-stop shop.”

insurance-quoting portal in early summer, getting quotes to customers even faster and requiring less information than any other quoting process in market for their industries,” Kramer said. “And with introducing coverage in California, Intrepid Direct now insures owners across 37 states.” HOW TO CONTACT // Intrepid Direct Insurance // 10851 Mastin Blvd.,

Suite 200 // Overland Park, KS 66210 // (877) 249-7181 // IntrepidDirect.com 16

THINKING BIGGER BUSINESS // June 2018

Customer focus also helps Pioneer Music succeed. “Customer service is underrated today,” Haight said. “People don’t want to push a prompt on a phone call or be treated like an account number. If you don’t build a customer base, you won’t last long." “We’re straightforward. We talk to and are involved with our customers. The reputation we’ve established is most important to me.”

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

COMMAND.APP

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

Command.App Presents

(Photo courtesy of Austin Walsh Studios)

ENTREPRENEUR

Brett Davis, CEO and founder C O M PA N Y I N F O R M AT I O N

Command.App 7900 Conser, Suite 80 Overland Park, KS 66204 (816) 842-7390 Command-App.com TYPE OF BUSINESS

Software that presents complex marketing materials and multimedia in a custom application for sales, marketing and training. YEAR FOUNDED

2015 E M P L OY E E S

MULTIMEDIA PLATFORM DELIVERS SOLUTION FOR COMPLEX PRODUCT PRESENTATIONS.

rett Davis founded Command.App when he realized that many companies faced similar issues when presenting complex product lines and services. “There was a gap between the people building the marketing material tools and the salespeople that used it,” Davis said. Too often, salespeople were not able to effectively use tools like PowerPoint and Dropbox. The proper materials didn’t download, or a customer’s query disrupted the linear flow of the presentation that sent the presenter hopscotching through slides. Command.App is a dynamic application that enables the presenter to answer situational questions about products and services via a tablet. The presenter can share complex marketing, sales or training materials through a nonlinear multi-media approach that fosters interactive, engaging conversation. Added digital tool sets can produce cost calculations, product comparisons and other data. Davis and his team built Command.App by drawing on a digital-media solution from his other firm, Barnstorming Media. “We took the situational navigation of DVDs and applied it to a user experience,” Davis said. With Command.App, Davis said, “Clients have better customer engagement experience and backend control of the content and messaging.” For example, Prairie Village-based WireCo WorldGroup manufactures wire, rope and cable

products that span 12 brands and numerous product lines. The company needed a flexible, simple means to present and discuss multiple products at a trade show, where each visitor’s needs and information requirements varied. “WireCo was one of our early adopters,” Davis said. “We built their initial app for a trade show to help them present their complex product line. We built on that success to expand their solution to sales apps for their field reps.” Command.App participated in ScaleUP! Kansas City’s seventh cohort. Davis found benefit in the intensive training and experience that led to strategic growth with his new venture. “ScaleUP! allowed us time to take Command. App to the next level,” Davis said. “We focused on processes to automate the app and build efficiency.” Davis and his team spent more than a year to develop and beta test Command.App’s initial version. “We focused on the enterprise-level app first and then added toolsets for various business types,” Davis said. “We’ve proven the market fit for the product and now look to further market penetration.” With version two, Command.App evolved from an iOS-only platform to include Surface, Android and iOS for tablets and phones. The backend portal enables clients to update custom apps and build derivative apps. “At its core, Command.App is a great user experience for presenting materials and as a situational sales tool,” Davis said. "Command.App allows hightech companies to present with technology that reflects the true nature of the company.” Pete Dulin is a freelance writer in the Kansas City area. SMART COMPANIES THINKING BIGGER®

KC MADE IT K C

WOMENSPIRIT

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

(Photos courtesy of Kim Golding, WomenSpirit)

WomenSpirit Clothes Female Clergy for More Than 20 Years he number of women serving in the clergy has continued to rise, and with it, so has the need to be appropriately attired. One Kansas City company has been around for more than two decades making sure women clergy have been dressed for success with garments made just for them. WomenSpirit, 1335 Swift St. in North Kansas City, designs and manufactures clerical robes, vestments and other garments designed to fit “body and spirit.” Today, owners Patty Fitzpatrick and Ann Suarez work with an all-female team producing more than 1,200 handmade robes plus clerical blouses, shirts, stoles and other accessories for women. Sales come from across the country and around the world; 80 percent of WomenSpirit’s business comes through its website. In 2009, a separate line for male clergy was launched under the label Abiding Spirit. The women-owned business was the brainchild of Fitzpatrick, who learned to sew from her grandmother. Fitzpatrick earned a degree in apparel marketing and merchandising from the University of Missouri. “I pretty much got my degree because I liked working with fabric and I liked making clothes,” said Fitzpatrick.

IN THE BEGINNING

In 1994, a friend asked Fitzpatrick to make a costume for a one-woman show about a female saint. Women clergy who saw the outfit asked if Fitzpatrick could create robes for them. “While more women were entering the clergy, robes weren’t made to fit women or 18

THINKING BIGGER BUSINESS // June 2018

have an image that women wanted in the ministry,” Fitzpatrick said. With her children in school, Fitzpatrick was ready to return to work and started making clerical robes out of her home. With a background in bookkeeping learned by helping in her parents’ businesses, Fitzpatrick was comfortable handling the business side. ‘I THINK WE NEED HELP’

However, when it came to manufacturing, Fitzpatrick felt a gap in her skill set. She took an entrepreneurial class at Avila College, and the instructor suggested she connect with someone in the clothing manufacturing business. Fitzpatrick reached out to Gretchen Van Horn and interned with her company, Gretchen Inc. “She had her own line of women’s clothing, and she became my mentor. … Honestly, that is the reason we became a success,” Fitzpatrick said. “Garment manufacturing is not a highprofit business. She had this wealth of manufacturing experience. … I learned how to make the patterns for manufacturing, which is totally different than home sewing. She gave me the idea to make the robes in sizes and cut them all at once where you can save time and money.” When Van Horn closed her business, Fitzpatrick bought all of her equipment and hired her main seamstress. In those early days, Fitzpatrick did all the cutting, and the seamstress did all the sewing. “After two months, she said, ‘I think we need help,’ and I started hiring,” Fitzpatrick said.

STEADY GROWTH

Today, Fitzpatrick still does all the design work, but her nine employees handle the rest, along with a cadre of home seamstresses whom WomenSpirit uses from time to time. “We have had a couple of men who did work for us —one did sewing and one worked in shipping and answering the phones, but it was a little strange to have this low voice answering ‘WomenSpirit,’” she said with a chuckle. “It just works out that we have all women.” WomenSpirit has grown steadily ever since. In 2000, Suarez came on as a partner, and the company moved from the Crossroads to its present location north of the river. “I would not be here today if it wasn’t for Ann helping to manage the business,” Fitzpatrick said. LOOKING TOWARD THE FUTURE

Not resting on its laurels, WomenSpirit continues to develop new product lines to stay ahead of its competition. “We want to serve our customers and expand their selection and alternatives to do their job,” Fitzpatrick said. That, in part, drove the decision to add the men’s line. “We also have a lot of pastor couples, so it was to have a product that could coordinate the male and female look,” she said. In March, WomenSpirit added a new line of dress, and plans are in the works to expand the men’s vestment line. “When we go to conferences, people who are not clergy see us there and ask about our lines, so it’s possible we might market and expand to them,” she said.

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

Hungry for Knowledge? Register for the next BIG Breakfast. Learn behind-the-scenes stories from business owners featured on the cover of Thinking Bigger Business magazine. Thursday, June 21 // 7:30 -9 a.m. Kauffman Foundation Conference Center 4801 Rockhill Road, Kansas City, Mo. » Christine Ricci // Phone Medic » Pat Phelan // Leap Hospitality » Ajamu Webster // DuBois Consultants » Kevin Williams // Wise Power Inc. RSVP TODAY AT ITHINKBIGGER.COM | (913) 432-6690 FOR SPONSORSHIP OPPORTUNITIES

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THE PURPLE GUYS

Simple Security 5 easy ways to keep your business safe online O

nline security is a major issue for businesses of all sizes. The good news is that there are IT tools that can give you peace of mind if a security threat arises. They can prevent and stop the threat quickly, providing a great return on investment for your managed IT Services.

Are You Safe?

Some recent famous security breaches you might be familiar with are Facebook, Equifax, eBay, Apple, Panera Bread, Target, Home Depot, Yahoo! and Blue Cross Blue Shield. These breaches resulted in exposing the private data of millions of people to hackers. Athough you may only hear about these breaches happening to larger companies, the risk is high for smaller businesses, too.

Who Is a Target?

The Verizon Data Breach Investigations Report revealed that 61 percent of cyber-attacks in 2017 were targeted at smaller businesses. Hackers can use a variety of tactics to gain access to a business’s private data or information. According to the study, more than 50 percent of breaches included malware, 81 percent of hackingrelated breaches were from leveraging stolen and/or weak passwords, and 43 percent were social attacks.

4 Create a backup. // Storing and protecting your data from unauthorized access is important and can prevent a longterm data loss disaster.

5 Educate all employees. // Phishing is the most common

form of email hacking and malware installation that can reveal personal and business information. It’s important to educate yourself and your employees from exposing private information to malicious cybercriminals.

To get a comprehensive breakdown of easy-to-implement IT essentials to protect your business from online threats, download The Purple Guys’ free resource, Simple Security— 5 Easy Ways at https://goo.gl/8m4n4e

The majority of malware was installed via malicious email attachments and were financially motivated. About 25 percent were related to espionage, discovered by third parties.

Can My Business Be Safe?

There are many easy and affordable steps a small business owner can and should take to lower the risk for online threats. Here are five of them:

1 Insist on complex and unique passwords // This is the easiest way to prevent your business from being hacked. Have all employees use secure passwords, update them every 90 days and secure them in a safe password keeper. (Learn more at https://goo.gl/fcgkbK)

2 Use anti-virus and email anti-spam // Anti-virus is

The Purple Guys is the highest-rated outsourced IT support department for small to midsized businesses in Kansas City and St. Louis, holding a 97.3 percent customer satisfaction rate. We’re on the front lines of managing our customers’ security through our

software designed to detect and destroy computer viruses. Anti-spam manages and filters unsafe emails from unwanted and blacklisted senders.

24/7 monitoring services, and we’d be happy to talk

3 Make sure you have a firewall. // A firewall helps secure

816-221-3900

and monitor traffic in and out of your network.

with you about your IT needs.

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BUILD VALUE IN YOUR BUSINESS NOW—

SO YOU CAN EXIT LATER Join a panel of experts who answer questions for business owners who want to build value in their business now in order to sell it more profitably later.

PANELISTS • Katheigh Degen // Twin Financial • Valerie Vaughn // Apex Business Advisors • Sheryl C. Nelson // On Point Business Administration Inc. • Steve Fleischaker // Bank of Blue Valley

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BUILD VALUE IN YOUR BUSINESS NOW— SO YOU CAN EXIT LATER Selling your business is an important decision for any business owner to make. But, if you adopt a sales mindset well before you plan to sell the business, you can take steps to maximize your business’s value while you’re still there to enjoy it—and reap even more profit when you finally do sell. Join a panel of experts who answer questions for business owners who want to build value in their business now, in order to sell it more profitably later.

Wednesday, June 27, 7:30 a.m.–9 a.m. Indian Hills Country Club, 6847 Tomahawk Road, Mission Hills, KS 66208 $25—Includes a panel presentation, Q & A, networking and continental breakfast RSVP to ExitYourBusiness.eventbrite.com

W hat You Will Learn • How preparing for a future sale, even if the sale is to family or employees, will increase the profitability and value of your company

• Options for selling a business— and keys to preparing for success no matter which option you choose

• What buyers look for

• Financing options

• 3 key factors that drive business value

• Who you need on your team to build value and ensure a successful transition

• Keys to shifting management and leadership responsibilities • How to prepare other stakeholders in the business for a sale

W ho Should Attend? • Owners of companies that have been in business at least three years and have more than one employee. • Business owners who want to know what they can do to increase the value of their company.

• Members of family-owned businesses • Key members of a business's management team

anelists • Katheigh Degen // Twin Financial • Valerie Vaughn // Apex Business Advisors • Sheryl C. Nelson // On Point Business Administration Inc. • Steve Fleischaker // Bank of Blue Valley

30 THINKING BIGGER BUSINESS // June 2018

BUI L DI NG VA L U E I N YO U R BU SINES S NOW — S O YOU CA N E X I T L AT E R

(By Valer ie Va ug hn)

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3 Tips for Building a Business You Can Sell MAKING THE DECISION TO SELL EARLY ON CAN HELP BUILD BUSINESS VALUE.

t’s rare for an entrepreneur to start a business with the goal of selling it. Most believe they can build a better widget or deliver a better service and plunge in without thinking about their eventual exit. But deciding early on to sell (someday) will help you build a valuable business that will be attractive to others when you are ready to exit. And, during the process, you’ll enjoy the benefits of a more profitable, productive, streamlined and efficiently managed business. Below are three tips to guide you as you build to sell.

FOCUS ON THE END GOAL

Once you make the decision to build your business to sell, you’ll think a little differently. Your mindset will shift, and you’ll act with intention to achieve a goal. Be sure to set a timeframe for achieving your goal to sell, then track the growth of your business, identify setbacks and course correct quickly.

MONITOR THE VALUE

DON’T GO IT ALONE

The decision that you’re building to sell will lead you to think about your business as an asset, one that you are grooming to sell for a specific dollar amount. To ensure your asset is growing in value at an acceptable rate, get a market-based valuation done early on. If there’s a gap between your target sale-price and the business’ current value, develop and implement a plan to close it. Many business owners wait until they are ready to sell to get a business valuation and are surprised when its less than they thought it would be. If you wait until you’re ready to sell to find out how the market sees your business, you won’t have time to implement the changes needed to increase value. Avoid this mistake by knowing how a buyer perceives business value. Educate yourself by attending seminars and talking to business sales and acquisition professionals.

Rely on advisors. There are many great resources available to Kansas City entrepreneurs to help build and scale businesses. Most will be able to provide some advice on the process of selling a business. To get the

most accurate information, work with a business intermediary (a business broker, mergers and acquisitions professional or investment banker). Business intermediaries can help you understand how the market will value your business, the process of selling and your most likely buyer. Specialists have fees, but if you choose the correct advisors, you’ll also avoid costly mistakes and net more from the sale of your business than if you go it alone. Building to sell will increase a business’ value if you do it well. It will take time and effort, yet the process can create a business that becomes more profitable, easier and more fun to own with each passing year. The bottom line is that you’ll have created an asset that is attractive to others, and you’ll be able to decide when to exit.

VALERIE L. VAUGHN is a certified business intermediary and a certified mergers and acquisitions professional with Apex Business Advisors, an Overland Park firm that assists with business sales, mergers and acquisitions. If you need assistance acquiring another business, or selling a business, contact Valerie. (913) 433-2315 // vvaughn@kcapex.com. SMART COMPANIES THINKING BIGGER®

BUI L DIN G VA L U E I N YOU R BU SINES S NOW â&#x20AC;&#x201D; S O YOU CA N E X I T L ATER

(By K atheig h D eg en)

Business Succession Planning THE KEY IS TO PICK THE BEST PLAN FOR YOUR CIRCUMSTANCES AND OBJECTIVES, AND TO SEEK HELP FROM FINANCIAL AND LEGAL ADVISORS TO CARRY OUT THIS PLAN. developing a succession plan for W hen your business, you must make many decisions. Should you sell your business or give it away? Should you structure your plan to go into effect during your lifetime or at your death? Should you transfer your ownership interest to family members, co-owners, employees, or an outside party? The key is to pick the best plan for your circumstances and objectives, and to seek help from financial and legal advisors to carry out this plan. SELLING YOUR BUSINESS Selling your business outright. You can sell

your business outright, choosing the right 32 THINKING BIGGER BUSINESS // June 2018

time to sellâ&#x20AC;&#x201D;now, at your retirement, at your death, or anytime in between. The sale proceeds can be used to maintain your lifestyle, or to pay estate taxes and other final expenses. As long as the price is at least equal to the full fair market value of the business, the sale will not be subject to gift taxes. But, if the sale occurs before your death, it may result in capital gains tax. Transferring your business with a buy-sell agreement. A buy-sell is a legally binding

contract that establishes when, to whom, and at what price you can sell your interest in a

business. A typical buy-sell allows the business itself or any co-owners the opportunity to purchase your interest in the business at a predetermined price. This can help avoid future adverse consequences, such as disruption of operations, entity dissolution, or business liquidation that might result in the event of your sudden incapacity or death. A buy-sell can also minimize the possibility that the business will fall into the hands of outsiders. The ability to fix the purchase price as the taxable value of your business interest makes a

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buy-sell agreement especially useful in estate planning. Agreeing to a purchase price can minimize the possibility of unfair treatment to your heirs. And, if your death is the triggering event, the IRS' acceptance of this price as the taxable value can help minimize estate taxes. Additionally, because funding for a buysell is typically arranged when the buy-sell is executed, you're able to ensure that funds will be available when needed, providing your estate with liquidity that may be needed for expenses and taxes.

Private annuity. With a private annuity,

you transfer your ownership interest in the business to family members or another party (the buyer). The buyer in turn makes a promise to make periodic payments to you for the rest of your life (a single life annuity) or for your life and the life of a second person (a joint and survivor annuity). Again, because a private annuity is a sale and not a gift, it allows you to remove assets from your estate without incurring gift or estate taxes. Until 2006, exchanging property for an unsecured private annuity allowed you to spread out any gain realized, deferring capital gains tax. IRS regulations proposed that year have effectively eliminated this benefit for most exchanges, however. If you're considering a private annuity, be sure to talk to a tax professional.

COMMON BUSINESS SUCCESSION PLANNING OBJECTIVES • Ensure smooth, seamless transfer of ownership • Transfer business to next generation

• Ensure business continuity • Retire with income source • Minimize gift and estate taxes

Self-canceling installment note. A self-

Gifting your business using trusts. You can

canceling installment note (SCIN) allows you to transfer your interest in the business to a buyer in exchange for a promissory note. The buyer must make a series of payments to you under that note, and a provision in the note states that at your death, the remaining payments will be canceled. Like private annuities, SCINs provide for a lifetime income stream and they avoid gift and estate taxes. But unlike private annuities, SCINs give you a security interest in the transferred business.

make gifts outright or use a trust. You can even structure a trust so that you keep control of the business for as long as you want. You can establish a revocable trust, which will bypass probate and allow you to change your mind and end the trust, or an irrevocable trust, such as a grantor retained annuity trust (GRAT) or a grantor retained unitrust (GRUT) that can provide you with income for a specified period of time and move your business out of your estate at a discount.

GIFTING YOUR BUSINESS

Gifting your business using a family limited partnership. You can transfer your business

If you're like many business owners, you'd prefer to have your children inherit the result of all your years of hard work and success. Of course, you can bequeath your business in your will, but transferring your business during your lifetime has many additional personal and tax benefits. By gifting the business over time, you can hand over the reins gradually as your offspring become better able to control and manage the business on their own, and you can minimize gift and estate taxes. Gifting your business interests can minimize gift and estate taxes because: • It transfers the value of any future appreciation in the business out of your estate to your heirs. This can be especially valuable if business growth is expected. • Gifts of $14,000 (in 2016 and 2017) per recipient are tax free under the annual gift tax exclusion. • Aggregate gifts up to $5,490,000 (in 2017, $5,450,000 in 2016) are tax free under your lifetime exclusion. Partial interest gifts, as with GRATs, • GRUTs, and FLPs, may be valued at a discount for lack of marketability or restrictions on transferability.

interest using another entity, such as a family limited partnership (FLP). An FLP is a limited partnership formed to manage and control a family business. You (and your spouse) can be the general partners, retaining control of the business itself and receiving income from the business, while your children can be limited partners. By transferring the business to an FLP, you may be able to use valuation discounts and substantially reduce the value of the business for tax purposes by making annual gifts to the limited partners. KATHEIGH DEGEN is co-owner of Twin Financial Inc. and specializes in business continuation strategies. 9233 Ward Parkway, Ste. 324, Kansas City, MO 64114. (816) 333-2334 // kdegen@twinfinancial.com This material was prepared by Broadridge Investor Communication Solutions, Inc. This information is believed to be from reliable sources; however no representation is made as to its accuracy or completeness. This information does not constitute tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty, nor is it a solicitation or recommendation to purchase or sell any insurance or investment product or service, and readers should not rely upon it as such. Readers should seek such advice from their own tax or legal counsel or financial professional. SMART COMPANIES THINKING BIGGER®

BUI L DIN G VA L U E I N YOU R BU SINES S NOW — S O YOU CA N E X I T L ATER

Tools for Financing an Acquisition THERE ARE MANY MORE COMPONENTS TO ACQUISITION FINANCING, SO CONSULT WITH YOUR BANKER EARLY IN THE PROCESS.

here are many important aspects of a successful business transition. One of those is how to finance it. As a seller, the last thing you may be thinking about is the need for financing; however, without a good financing option, your buyer may not be able to complete their end of the deal. Financing for the purchase of a profitable business may seem simple, but there can be a lot of complexities involved, even for an experienced business borrower. These include whether the sale is of the business assets or the stock, what type of assets are being purchased (equipment, inventory, real estate), whether the buyer is going to retain the key leaders of the business and so on. Often, the financing of a business purchase involves using multiple financing products. TERM LOANS

The standard loan product for financing a business acquisition is a term loan that is structured so that the acquisition costs can be paid in full as quickly as the business cash flow will reasonably allow. A good banking partner 34 THINKING BIGGER BUSINESS // June 2018

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won’t stretch the business cash flow so thin that it harms the business. Still, it should be structured so that the buyer isn’t still repaying acquisition costs long after the purchase. Repayment terms on business acquisition loans typically range from three to seven years, but they can be longer, depending on the circumstances. The proper term will be determined by how much cash is left after all other business expenses have been paid. Most banks will require this amount to be not less than 1.2 times the amount of the loan payments. BLUE SKY FINANCING

One of the biggest challenges in financing a business purchase is the equity piece. A motivated seller will likely want to earn a nice profit from the transaction; therefore, the asking price is often some number greater than the value of the business assets. This is commonly referred to as Blue Sky or Goodwill, and it represents the future profit potential of the business. The hard part in financing Blue Sky is that it doesn’t exist at the time of the sale.

Whereas a piece of equipment or a building acquired in a business purchase has a defined market value that is predictable going forward, the Blue Sky piece is uncertain. Lenders can often mitigate some of the Blue Sky financing risk through a guaranty from the U.S. Small Business Administration. Another tool would be requiring the buyer to pledge other assets outside of the business to collateralize the loan. BUYER CASH

A buyer should be prepared to contribute a minimum of 20 percent cash toward the purchase price. That percentage can be higher based on the type of business. In addition, most lenders will require a buyer to have excess cash available to cover the working capital of the company, though this can also be accomplished with a line of credit loan that is separate from the term loan. SELLER CARRYBACK NOTE

A lot of business purchases also include what’s known as a seller carryback note. In this scenario, the seller agrees not to take the entire purchase price at closing but rather leave some of it in the form of a loan to the buyer that is repaid over time. A good banker will sit down with you to determine which financing tools make the most sense for your deal. The sooner that conversation takes place in the process, the better. STEVE FLEISCHAKER is a senior vice president at Bank of Blue Valley. (913) 234-2402 // sfleischaker@bankbv.com

BUI L DI NG VA L U E I N YO U R BU SINES S NOW — S O YOU CA N E X I T L AT E R

(By Sh er y l C. Nels on)

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Business Housekeeping Can Maximize Value REVIEWING AFFAIRS BEFORE A SALE WILL ALLOW THE DUE DILIGENCE TEAM TO IDENTIFY AND RESOLVE ISSUES BEFORE A PROSPECTIVE BUYER UNCOVERS THEM.

f you’re a business owner looking to sell now or in the future, you may be discouraged to hear that many sales fall apart during the due diligence phase. You have the ability to minimize the risk of this happening by being a diligent business owner before putting your business on the market. Due diligence may be the most critical stage in a sale transaction. During this process, the prospective buyer will do their best to learn the intimate details of your business. The objective will be to uncover as much as possible before buying the business to ensure the price is justified and to avoid unwelcome surprises after the closing. PRE-SALE DUE DILIGENCE

Most businesses are not perfect, so it’s a good idea for business owners who want to sell to perform “pre-sale due diligence” before going on the market. This will provide a feel for issues a prospective buyer may raise. It’s like conducting an inspection before listing your home—it gives you an idea of the repairs a buyer may want you to make or take a reduction in price for. It can also reveal items that may be so significant—such as a faulty foundation—that the buyer may just walk away altogether. This exercise in business self-awareness requires that the business owner dig into legal, financial, accounting, tax, operational, administrative and other matters that a prospective buyer might consider relevant to a purchasing decision. This may seem like a daunting task, especially for a business owner who is also trying to run the day-to-day

business operations. Professional advisors like lawyers, accountants, business brokers and experts in business administration can help at a reasonable cost. WHAT TO REVIEW—AND WHEN

To be in the best position for a successful sale, begin pre-sale due diligence one to three years before putting the business on the market. Gather documents based on a comprehensive due diligence checklist provided by a trusted resource, address issues or gaps to the extent feasible, and regularly keep the business in order and your records up-to-date from there on out. To save on cost, an initial review of the documents can be performed by an independent and experienced non-legal professional who can lead the pre-sale due diligence team, help identify areas where legal expertise is needed and manage the internal virtual data room where the documents could be archived and regularly updated. A careful review of business affairs ahead of a sale transaction will enable the pre-sale due diligence team to identify and resolve issues before the prospective buyer uncovers them. There may be some issues that can’t be remedied. For these, at least you will have had a chance to consider a response and potential resolutions before the prospective buyer asks about them, as opposed to appearing tentative, disorganized or as if you have something to hide. Issues that arise during a prospective buyer’s due diligence can cause delays in closing, reduce the price a buyer is willing to pay or kill the deal.

Tackling your business housekeeping ahead of time should put you in a more favorable negotiating position and increase the likelihood of a successful sale at the highest possible price. It will also give you peace of mind as you continue operating your business until you’re ready to sell to a third party or hand over the baton to a family member or valued employee. SHERYL C. NELSON is co-founder and president of On Point Business Administration Inc., which serves as outsourced chief administrative officer for businesses that need help completing their business administration tasks. On Point collaborates with businesses to develop and implement a back office strategy that is tailored to their business strategy, culture and budget using the right blend of personnel and procedures. (816) 595-8620 // snelson@onpointtcb.com SMART COMPANIES THINKING BIGGER®

WE’RE THE COMMUNITY BANK THAT’S BETTER AT SAYING YES THAN NO. At Bank of Blue Valley, we offer the same things the big national banks do. We also have one important thing they don’t. We have our owner, Bob Regnier, sitting in the lobby. So whether you want to open an account, deposit a check, apply for a business loan or just wave at Bob, we’re here for Kansas City. And we’re keeping it local.

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S T R AT E G I E S

An Unconventional Hybrid Companies partner to offer allencompassing branding service.

hat happens when an unconventional architectural firm partners with an unconventional branding agency to create a new business centered on integrating architecture and branding? It’s not a trick question—the answer is the business plan of a new brand studio, TygerWorks. The company’s name is a combination of the Kansas City-based companies: architecture firm Clockwork and branding agency Tyger the Lion. ‘Fantastic Solution’ The idea for the company came when Tyger the Lion was hired to help RiskAnalytics, a cyber security company in Merriam, with its branding, collateral, etc. The company was also building a new space, and Clockwork was the perfect partner to bring the brand to life in the company’s new 24,000-square-foot corporate headquarters. The two teams shared information, ideas and concepts. At the completion of the project, “we saw a fantastic opportunity to make the partnership more formal and continue to push the boundaries of traditional architecture,” said Christian Arnold, Clockwork’s founding principal. Challenging the Status Quo In its 13 years, Clockwork has always “challenged the status quo,” he said. Combining the work of an architecture firm and a branding agency make sense in the Clockwork world, he said. But how do you explain to a building client that its logo, signage and branding can and should work in concert with the architecture and interior design of the building? Arnold acknowledges that it’s not the easiest sell. Right now, TygerWorks is working on a multi-sport complex soccer arena and is in the midst of rebranding one of Kansas City’s largest accounting firms. 38 THINKING BIGGER BUSINESS // June 2018

1, 2 & 3 Clockwork incorporated the new logo and overall brand into the entire RiskAnalytics space, including the

carpet floor tiles, the lighting design, the colors on the walls—even routing the Morse code brand message from their logo into a wood wall and on glazing film throughout the space. (Photos courtesy of Julie Legg Photography LLC, www.jleggphotography.com)

STRATEGY Sharing information, ideas and concepts on a project led to the formation of a new hybrid for a niche market. 3

C O M PA N Y I N F O R M AT I O N

“It can be hard to explain,” But the end goal is, of he said. “We are creating a course, bringing more clients new category. But when into the fold. He thinks those clients interact with our likely will be companies collaborative approach, it in the mid-cap range, the makes sense.” type that already are indicaArnold said that while ting interest. TygerWorks is creating a new “We’d love to see a model Ch ld ristia n Arno category here in Kansas City, where all of our projects get a there are a few firms around the dose of both,” he said. “We really just globe doing similar work—but it takes the want to align with clients who see the value right client to make the concept work. of this work.” “It is unusual for entrepreneurial groups (like ours) to think this way. But every day Kate Liebsle is a freelance writer in the Kansas City area. we’re finding more and more unique ways to work with clients, and it’s catching on faster than we thought it would.” Outside-the-Box Thinking Finding clients is one thing, but TygerWorks also is in hiring mode, and the hybrid nature of its work not only means clients have to be unique, but employees have to be, too. “Finding employees comes down to less of the formal training and more of a mindset,” Arnold said. “We have to get people out of their silos.” Neither firm wants to give up the specialties that got them this far. Both have clients who just want architecture or marketing, respectfully. And that’s just fine with Arnold and his partners.

Clockwork Architecture + Branding Agency 423 Delaware St. Kansas City, Mo. 64105 (816) 599-2350 Clockwork-AD.com TYPE OF BUSINESS

TygerWorks combines the architecture expertise of Clockwork Architecture and branding skills of Tyger the Lion to provide fully integrated branding solutions. E M P L OY E E S

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.

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BIGGER | hr S M A R T

( by Tracey Hawkins )

S T R AT E G I E S

Why Employees’ Personal Safety is Important to Your Business Training can save lives— and money.

es, it is a company’s business if an employee is a victim of crime when they are not at work. When employees are victimized, it directly impacts a company’s bottom line. According to a National Institute of Justice research report from the U.S. Department of Justice, businesses lose over $5 billion dollars a year when employees are victimized and miss time from work. Employers experience increased financial costs, primarily in health insurance bills. This excludes sick leave and disability insurance costs other than worker’s compensation insurance. It also does not include time off from work, counseling, sick time, medical leave, days to file reports and make insurance claims, court appearances, replacing and retraining employees, or replacing and repairing stolen and damaged property. Businesses gain when they offer safety education to employees. Statistics Victimization is costly to all involved. Personal crime is estimated to cost $105 billion in medical bills, lost earnings and public program costs related to victim assistance. According to RAINN, the Rape and Incest National Network, victims of sexual assault are: » 3 times more likely to suffer from depression. » 6 times more likely to suffer from post-traumatic stress disorder. » 13 times more likely to abuse alcohol. » 26 times more likely to abuse drugs. » 4 times more likely to contemplate suicide. Victims of robbery and burglary also are often traumatized and likely to seek counseling through their company’s EAP or on their own. Businesses and Crime Prevention When employees or members are raped, burglarized, robbed, assaulted or involved in 40 THINKING BIGGER BUSINESS // June 2018

auto accidents, employers are involved involuntarily. Employers can take an aggressive stance by offering proactive personal safety programs. Proper training can lower insurance costs; improve morale; and reduce time off, employee replacement and training costs. According to the Occupational Safety and Health Administration (OSHA), “Under federal law, you are entitled to a safe workplace. Your employer must provide a workplace free of known health and safety hazards.” However, there is no agency or program in place tasked with protecting employees, office staff and field employees when they aren’t at work. Therefore, employers who are willing to go above and beyond must take these tasks on themselves. Employers can choose to incorporate educational safety workshops for all employees. These can be presented as part of a wellness program or lunch-and-learn workshops, or they can be incorporated into regular personal development training programs or add-ons to OSHA training. Prevention Workshops Employers are embracing wellness programs, which traditionally include smoking cessation and weight control programs. Personal safety is a good fit that is often overlooked. A personal safety workshop can have lasting impact. The goal of the program should be to teach employees to stay safe while off the clock. The workshops should include all possible and preventable safety and security risks,

along with specific advice to prevent crimes. The following topics should be considered: » Personal safety techniques » Utilizing intuition to avoid danger » How awareness creates a more difficult target » Avoiding potentially dangerous situations » Escaping dangerous situations » Online, cyber, smartphone and social media safety » DIY home security tips » Fire safety in the home » Safety on the road » Creating a safety plan » Safety products: legalities, proper usage and availability A well-planned safety program can help companies prevent victimization and lower the costs associated with employees being victimized. Such training also shows employees that their employers care about their wellbeing, even off of the clock. A safe workforce is truly a win-win for all parties. Tracey “The Safety Lady” Hawkins is a national and nationally recognized subject matter safety expert. Hawkins is a professional speaker who has conducted safety workshops and training all over the country and is based in Kansas City, Mo. She has been featured on the Today Show, CNN.com, The Washington Post, Realtor Magazine, ABCNews.com and appears on local television news programs regularly as a safety expert. (816) 372-0939 // safetyandsecuritysource@gmail.com

BIGGER | customer service S M A R T

( by Aaron Reese)

S T R AT E G I E S

Better Hires Lead to Better Customer Service Job benchmarking takes bias out of selection process.

or many small businesses, an employee is the only point of contact a customer will ever have with a business. In industries such as moving and transportation, utilities and restaurants, business owners rely heavily on employees making good and lasting impressions on customers. Employees are tasked with broadcasting the business’s branded message and ensuring customers have accurate and actionable information about their products or services. When these ambassadors do not have proper communication skills to perform these tasks, customers start filing complaints with the BBB. The BBB of Greater Kansas City handled thousands of complaints in the past 12 months from customers who claimed a business representative told them something that the business could not or would not follow through on. In the 1,385 complaints that mentioned an employee, the vast majority complained about miscommunication. Eighty-eight complaints in the same timeframe mentioned that an employee had been fired. Most of those complaints claimed the employee made promises they had no business making and had since been terminated. Reducing customer complaints Employee training can remedy many of these problems, but the BBB explored ways that could further reduce the number of customer complaints caused by miscommunication between employees and customers. BBB tapped ThriveOn Concepts for its expertise. ThriveOn is a BBB-accredited leadership coaching organization that advises businesses on best practices for professional development. ThriveOn strongly recommends businesses adopt modern strategies that augment the traditional hiring process: 1. Listing a job opening 2. Reviewing applications 3. Interviewing candidates 4. Selecting a candidate

If employers do nothing more, they may be faced with problems: With the traditional hiring model, employers are more likely to cave in to their own subjectivity. Perhaps the candidate shares an alma mater with the employer, creating an instant connection that does not have anything to do with the job parameters. Perhaps the employer has had good luck with graduates from a particular college, or a trusted friend recommended someone for the job. Unfortunately, these influences do not guarantee the candidate possesses the skills required to perform well in the position. It can bias the employer into hiring an unqualified candidate, and the business continues to generate customer service complaints. Job benchmarking To eliminate these biases, ThiveOn recommends businesses implement a modern hiring strategy known as job benchmarking. Job benchmarking is the process of letting a position’s job parameters tell employers what is required for superior performance. This process allows employers to avoid relying on a candidate’s listed experience and education. An employer can see a candidate’s actual proficiencies and be proactive in protecting relationships with customers by hiring employees with an aptitude for positive customer interaction. The process has three prominent steps. Key Accountabilities Before employers make a hiring decision, they should ask themselves a series of questions: » Why does the job exist? » What does success in the job look like? » How does the job fit the company’s strategy?

Limit to only three key accountabilities to be as clear and concise as possible. Assessment 2 After determining key accountabilities, an employer should assess the top 2-3 candidates’ proficiency in those areas. For instance,

a customer service representative should be able to adapt to an emotional response from a customer. Assessments exist for just about any skill, including emotional intelligence. Implement these assessments to get concrete data on a candidate’s ability to deal with the situation rather than rely on the candidate’s word that they can handle it. Gap Analysis Assessments give numerical values for any skills the employer decides to test on. Employers can use the assessments to measure aptitude in definitive terms. It allows them to conveniently compare proficiencies with other top candidates. The process reveals gaps in a candidate’s knowledge or skill set that an employer can address during subsequent interviews. ThriveOn advises against directly revealing these gaps in proficiency to the candidate. That way, an employer can devise an individual development plan for the employee’s growth in the position. Hiring the right person for the right job limits the likelihood of confusion between a manager and the employee and between the employee and customer. For employers using job benchmarking, employees are more likely to improve the customer experience.

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

SMART COMPANIES THINKING BIGGER®

BIGGER | finance S M A R T

( by Narbeli Galindo )

S T R AT E G I E S

Find the Right Funding For Your Business Resources for expanding companies are plentiful in Kansas City.

s business owners look for ways to grow, they may not realize there are local funding resources available for all types of companies and industries—not just high-growth startups. Whether a company hopes to expand locally or internationally, there are resources to help meet increased demand for products and services, increase inventory, hire personnel, participate in a trade mission trip, buy more equipment, translate collateral into another language, buy or lease land, and more. There are 28.8 million small businesses with 56.8 million employees in the United States, according to the U.S. Small Business Administration. Small businesses (defined as businesses with fewer than 500 employees) account for 99.7 percent of all business in the U.S. According to a U.S. Bank study, 82 percent of businesses that fail do so because of cash flow problems and lack of funding resources. However, Kansas City-area companies can avoid that fate by tapping into the metro’s plentiful resources. There are more than 20 organizations in the Kansas City area that offer funding. These are just a few funding resources that exist in our area: AltCap offers local entrepreneurs microloans

of up to $50,000 in debt capital to launch, operate or grow their microenterprise or small business. Borrowers can be from any industry and at any stage of the business life cycle. Its ARTcap microloans are available for amounts up to $50,000 to artists, artisans and makers as well as other established businesses in the creative industries in Kansas City, Mo. Alt-Cap.org/alternative-capital Alt-Cap.org/aux_artcap Angel Capital Association is the largest angel

professional development organization providing early-stage investment in the world. ACA provides an insider perspective to help make smart investment decisions. AngelCapitalAssociation.org 42 THINKING BIGGER BUSINESS // June 2018

C3 Capital Fund Management is based locally

and manages three funds (C3 Capital Partners LP, C3 Capital Partners II LP and C3 Capital Partners III LP) with approximately $460 million in assets that provide capital for businesses to finance later stage growth, strategic acquisitions, ownership transitions and recapitalizations. Targeted industries include chemicals, energy, business services, distribution and niche manufacturing. c3cap.com Digital Sandbox KC is a technology grant that

provides proof-of-concept resources including market validation, prototyping and beta testing support for development of digital technologies within new and existing businesses. DigitalSandboxKC.com Economic Development Corporation of Kansas City, Missouri has two types of financial

assistance programs. EDC Loan Corporation (EDCLC) is a nonprofit corporation specializing in the origination and underwriting of SBA 504 loans and revolving loan funds. Its mission is to help small business grow and expand through loan programs in an effort to attract, expand and retain jobs. EDCKC.com/agencies/ edc-loancorporation-edcl/ Hispanic Economic Development Corporation of Greater Kansas City’s IMPACTO program

offers microloans for small business owners. KCHEDC.org/hedc/ Justine Petersen Microloan Program offers

microloans targeting businesses that have been turned down for traditional financing. JustinePetersen.org KCRise Fund is a sidecar fund that co-invests

with institutional venture capital investors in early-stage companies based in the Kansas City area. They match local early stage companies with seasoned venture capital investors. KCRiseFund.com

KCSourcelink focuses on entrepreneurship

and helps fill resource gaps and bring national resources to the community through grants such as the i6 Challenge and the University Center grants from the Department of Commerce EDA. KCSourceLink.com LaunchKC, a partnership between the EDCKC

and Downtown Council, helps startups create jobs, attract talent, unlock value and engage follow-on investors. Eight $50,000 grants and one $100,000 grant are awarded annually. LaunchKC.org Missouri Department of Economic Development (MDED) has two export programs. Global

Market Access Program is for Missouri small businesses, primarily manufacturers, with 500 employees or fewer and with annual sales of $25 million or less. MDED will focus assistance to these small firms to access new geographic markets for increased sales opportunities. Missouri State Trade and Export Promotion Grant (STEP) makes grants to states to carry out export programs that assist eligible small businesses. The aim of the STEP Program is to increase the number of small businesses that are exporting and increase the value of the exports. ded.mo.gov/programs/business/gmap ExportMissouri.mo.gov/docs/defaultsource/ export_missouri/mostep-guidelines.pdf Women’s Business Center is an alternative

lending organization that offers loans and financial education to small business owners in the Kansas City metro area. Each loan

Want to

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

There are more than 20 organizations in the Kansas City area that offer funding.

(816) 235-6675

recipient receives structured technical assistance support in the development of their business and access to a financial coach. KansasWBC.com/resources/funding/we_lend World Trade Center Kansas City (WTCKC) has a

Global Cities Initiatives (GCI) microgrant program that offers reimbursement of export-related expenses to small and mediumsized businesses. Grant awards may total $5,000 and must be spent on improving the applicant’s ability to access world markets. WTC-KC.com/World-TradeCenter/MicroGrants.aspx

To learn about more resources available for your industry and type of business, contact the Economic Development Corporation of Kansas City at EDCKC.com, Missouri Department of Economic Development at ded.mo.gov or Kansas Department of Commerce at KansasCommerce.com for assistance navigating the various programs. Narbeli Galindo is Director of International Affairs for Kansas City at the Economic Development Corp. of Kansas City, Mo. Galindo assists local companies in expanding globally through exports and imports by sharing her trade expertise. (816) 691-2139 // ngalindo@edckc.com

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Join us for round-tables, speakers and networking events to gain powerful insight and support from some of KC’s most accomplished women. NAWBO KC

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SCALEUP! KC

A U T I S M F R O M T H E S T A R T ( by Dawn Bormann )

Renewing Her Dreams ADVICE GIVES FOUNDER FRESH PERSPECTIVE ON HER BUSINESS.

ediatric psychologist Michelle Macrorie spent years diagnosing children with autism, only to watch parents struggle with what steps to take next to prepare their child for kindergarten and beyond. By 2013, Macrorie decided she wouldn’t sit on the sidelines and watch this play out any longer. She knew how to help improve children’s lives. She launched Autism From The Start and began providing extensive therapy services in client’s homes. The need immediately outpaced her expectations, and by 2016, she opened a center near downtown Lenexa. After a slow start, 44 THINKING BIGGER BUSINESS // June 2018

the center is at capacity with 21 children registered for services and a healthy wait list. She employs 23 specialized staff members who play integral roles in improving the lives of children five and younger. And yet Macrorie felt overwhelmed and struggled to get over the hump of her amazing success. She was still trimming the landscape, hanging shelves, hiring staff, and serving as the business manager and billing clerk. It wasn’t a bad problem to have, but she quickly realized she needed help. “We did have such great success and growth that I could no longer keep up,” she said.

“Everything seemed to bottleneck at me.” It’s why she turned to ScaleUP! for advice. 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 Autism From The Start that operate in a market capable of supporting more than $1 million in annual sales and that want to rapidly grow their business. ‘IT RESET THE OLD DREAMER IN ME’

The class was nothing short of life-changing for Macrorie. She jokes that she squeezed every ounce of juice she could out of the classes. “I’m a super-fan of ScaleUP!,” she says. “I’m not just a little fan.” By the second class, the ScaleUP! experts

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energized Macrorie and reminded her of a long-forgotten dream to scale her business in several cities and states. She wanted children in every city to have the same opportunities as those at her center. “It reset my goals. It reset my vision. It reset the old dreamer in me that had gone away because I was in survival mode,” she says. FINE-TUNING SERVICES

Within weeks, the class experts gave her the confidence to make some pivotal changes. The ScaleUP! experts helped her define what her business should specialize in and what services it needed to stop in order to thrive. Macrorie thought she was already specialized. She offered autism services to children. But she realized she was offering too many separate services—music therapy, physical therapy, speech therapy and occupational therapy—to be successful. It was undermining her core product: applied behavior analysis (ABA). ABA therapy was the focal point of the center and represented about 80 percent of its work. It was what made her business stand out from competitors. The ABA work already integrated several tools, including speech and motor goals in the comprehensive approach that includes everything from learning to wash hands to expressive language, cognitive skills, fine motor development and more. ScaleUP! experts gave her the confidence to discontinue the other therapies. Initially, it was hard for some parents to digest because it felt like they were losing something. But Macrorie used that disappointment as a means to better explain how ABA already integrates all of those skills throughout each day of intervention. She and her team got better at describing the process to parents, and they responded positively. Until ScaleUP!, Macrorie was convinced that she couldn’t disappoint parents. She was used to pleasing everyone at every turn. But the ScaleUP! experts gave her confidence to create a plan that makes sense for her business. KNOWING THE CUSTOMER

Another major change at her business came when ScaleUP! experts urged her to get to know her target market better. Macrorie thought she already knew her customers. She spent hours talking one-on-one with families and their children. ScaleUP!

experts pointed out those were her clients, not her customers. “It took me to a much deeper understanding that it’s not just the clients who are at my door,” she says. “It’s the pediatricians, and the hospitals and the schools. And it’s other therapists. It’s how all of these avenues funnel people to my business.” The class forced her to think about primary, secondary and tertiary customers. It shifted her thinking. “I needed to think of them differently and to develop those value propositions that spoke to each but separate groups,” she says. “And then also how to develop a sales funnel for each one.” She wasted no time making the changes while the class was in progress. EMPOWERING THE TEAM

Macrorie made several other immediate changes at Autism From The Start thanks to ScaleUP! She started a professional development tract for employees. Knowing that many employees go back to receive their master’s degree, Macrorie offered them the ability to receive the necessary supervision hours required for the degree at her center. The benefit was two-fold. It helps employees build skills and maintains a steady workforce for Macrorie. ScaleUP! experts also pointed out that it will help as Macrorie scales her business. Perhaps those same employees will take a leadership role at her next center. Ultimately, Macrorie has renewed her dream to open more centers for children with autism. ScaleUP! experts helped her to plan her long-term strategy. In 2019, the center will move to a larger facility. By 2021, Macrorie hopes to open a second facility and replicate her success. Once that process is on track, she expects to open three more centers within three years. She’ll look at other cities and work to scale the processes she has created. The ScaleUP! class provided the bedrock for these changes. It taught her to think like a CEO. She started writing down every process that happens at her business and charting her financials to align with her long-term goals. All of this is mandatory for someone who wants to scale up without overspending.

Macrorie doesn’t trim the landscape anymore. She created an organizational chart to delegate the work. “If I don’t behave like a CEO, not only will my company not scale, but I will never truly empower my team,” she says. “I thought I was burdening my team by asking them to do things.” Her staff sees this change and how it impacts children. “ScaleUP! has really helped Michelle become laser-focused on how we can best meet the needs of children who are currently accessing or will access our services in the future,” says Amy Sanner, a behavior analyst at Autism From the Start. “She's engaged in standardizing processes on the administrative end to ensure a smooth transition for families into therapy, during therapy and transitioning out of therapy when appropriate.” It all comes back to ScaleUP!, Macrorie says. The experts gave her confidence to make changes and not look back. “They have literally set me up in a position where I don’t think I can fail if I just listen to them.” Dawn Bormann is a freelance writer in the Kansas City area.

ENTREPRENEUR

Michelle Macrorie COMPANY

Autism From The Start AutismFromTheStart.com Autism From The Start treats children 5 and younger with autism. Its team of autism therapists provide applied behavior analysis along with parent coaching and support for the entire family delivered within a comprehensive plan of care.

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. Learn more at www.scaleupkc.com

SMART COMPANIES THINKING BIGGER®

IN FOCUS

Commercial Real Estate & Development ( by Katie Bean )

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2018

Streetcar line near 19th and Main Street. (Photo courtesy of VisitKC)

LARGE DEVELOPMENTS HAVE LONG-TERM PAYOFFS.

Big Projects Build Up Small Business evelopment is booming in Kansas City. Big projects currently under way include construction of a new downtown convention center hotel, redevelopment of Kemper Arena in the West Bottoms and construction of a single-terminal facility at Kansas City International Airport.

46 THINKING BIGGER BUSINESS // June 2018

These projects and more offer opportunities for small businesses to build up the metro area. But such developments also help small businesses lay the runway for growth. A FOOT IN THE DOOR

International Building Consultants is a woman-owned business that, a few years ago, was solely focused on interior trim carpentry. In 2014, president and owner Brandy McCombs attended a meeting that would change her firm’s trajectory.

She found herself at a meeting of Women Construction Owners and Executives, where the Kansas City Streetcar Constructors—a joint venture of Herzog Contracting Corp. and Stacy & Witbeck—made a presentation about scopes of work open for bid. Some scopes of work weren’t getting much traction, including traffic control. Because roads downtown would be torn up to install rails along the 2.2-mile route, the general contractor sought a subcontractor to provide

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2014, 2015, 2016

the traffic management, including the orange cones and signage. Although this work was completely outside the realm of services her company offered at the time, McCombs thought, “Why not?” She won the bid. Because IBC didn’t have the equipment, the general contractor worked out a deal—it bought the equipment, and IBC provided the labor. At the time, McCombs said, she had nothing to lose by striking out into a new vertical. She had industry experience and stable cash flow from being in business since 2009. “That was a very good foot in the door. From there, they helped promote me—letting the other contractors they were working with on that specific project know about IBC and helped us get the word out,” McCombs said. “Within the next year, I had MarkOne as my first contract outside of (the streetcar).” Now, IBC’s traffic control division is set to overtake interior construction in revenue within the next year, McCombs said. It took the interior construction division six years to make just over $1 million in revenue, she said. For traffic control, the streetcar project alone was a $1 million job—and the division’s revenue has doubled every year since. Now, IBC is looking to expand outside of the KC area. Tackling a big project provided a springboard for IBC’s new division—the company received coaching, and just as importantly, someone in its corner. “You have to have a cheerleader. Everybody has to have somebody’s who’s there to support them and push them and believe in them, and I’ve always had that,” McCombs said. MASTERING THE LEARNING CURVE

For BIC Design Co., a North Kansas City MWBE fire protection design firm, “big projects are our sweet spot,” said Kumar Sheth, vice president and founder. The company works on projects all over the U.S., including large and complex projects such as power plants and U.S. Army and Air Force bases. BIC has also completed fire protection designs for large local developments, including area GM and Ford plants, Nebraska Furniture Mart, the Kemper Arena redevelopment, and both One Light and Two Light apartment high rises in downtown Kansas City, Mo. continued SMART COMPANIES THINKING BIGGER®

IN FOCUS

Commercial Real Estate & Development ( by Katie Bean )

2018

With each large-scale project BIC works on, Sheth said, the company becomes better equipped to handle other similar projects. For example, he said, some government projects have special requirements that, once learned, become routine for future projects. “We learned a lot because those projects don’t come around very often. We are set up to do it again when there are other (similar projects),” he said. BEYOND CONSTRUCTION

As McCombs and Sheth have seen, large projects can get the ball rolling for a small

company’s growth. The effects of development last beyond a building’s construction. Mike Burke is the developer for the Loews convention center hotel in downtown Kansas City, Mo. He’s seen how building up Kansas City builds local businesses. The new hotel, set to open in 2020, will have 800 rooms. It will cater to convention visitors, of course, but Burke said he also wants to offer packages that promote Kansas City’s arts and museums. Its location near the Kauffman Center for the Performing Arts and Crossroads Arts District’s galleries and many local restaurants will make that an attractive option, he said.

3 1 KC Convention Hotel rendering looking south on Baltimore. 2 Outdoor terrace rendering of the Convention Hotel that will overlook downtown. 3 KC Convention Hotel lobby bar rendering with 40 foot windows that will look out over downtown. (Renderings courtesy of Cooper Cary Architects) 48 THINKING BIGGER BUSINESS // June 2018

Many local small businesses are contributing to the construction of the new hotel, Burke said, but when it is complete, the positive effects will spread. Hundreds of visitors each day will spend money with area businesses, he said. “First of all, it’s bringing more money into town. The average visitor spends $200 a day in meals, trips, entertainment. That’s visitor dollars in the community,” he said. “Every place from coffee shops to restaurants to taxis and Uber, gift shops and especially entertainment, I think you’ll see a tremendous impact that will help entire community.” ‘THERE’S NO STUPID QUESTIONS’

Sheth and McCombs agreed that large jobs require a certain savvy on the part of small business that hope to take part in them. Government and public-sector work involves a lot of paperwork and special reporting, McCombs said. Getting to know the entity along with its processes and procedures upfront can help alleviate headaches down the road. Seek out contacts who can help with any issues that come up, she advised. “Be proactive upfront, not reactive. Ask the right questions—and you might not know the right questions to ask. But there’s no stupid questions because don’t know what you don’t know.” For example, McCombs said, “there are a lot of times—and I’ve been there—your money does get held up because you didn’t turn something in that you were supposed to but didn’t know about. So making those connections are key.” IBC often works with the city of Kansas City, Mo.; a good place to learn about the city’s requirements, McCombs said, is the human resources department. Much of the training in these processes and procedures is obtained just by doing it, McCombs said. That’s why it’s helpful to have someone to ask questions. “Once you get the procedure down, it’s simple, but unfortunately it takes a while to understand. If you’ve never done it, I’m not going to lie—it’s brutal. … But once you know it, as with anything, it’s repetitious.” Another hurdle small businesses may have to clear in order to work on large projects is financing. However, McCombs said there

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are more options now for financing than were available in 2009 when she started IBC. She pointed to Lead Bank’s For Change Initiative that works with small businesses to provide the working capital needed to bid on large projects. Every company has to take a risk at some point when it comes to taking on a new project. But the business must be ready, Sheth said. “You just have to have good enough experience to be able to handle it. You have to know what you are doing,” he said. “It’s not somebody walking down the street that can jump in and say, ‘I can learn by the book.’ That doesn't work.” 1

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

1 Traffic control work by IBC along 11th Street in downtown Kansas City. 2 KCI Airport traffic control systems by IBC. (Photos courtesy of IBC)

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

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CEOs of the Top 10 Small Businesses, honored by the Greater Kansas City Area Chamber of Commerce, shared lessons learned at a breakfast event May 3. The event’s Mr. K Award winner was announced on May 24, after Thinking Bigger’s press deadline. Check iThinkBigger.com for updates on the awards and other small business news.

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Penguins Are Here Penguins from the 21c Museum Hotels visit Hufft in Kansas City, Mo. Hufft is the local architect for Kansas City’s new 21c hotel, which will open this summer in the renovated Savoy Hotel and Grill space downtown. Each 21c hotel has a specific color of penguin, and KC awaited the reveal of its color. (Photo courtesy of Jesse Hufft)

Silver Medal Win KC Bier Co. earned a silver medal for its Winterbock lager at the 2018 World Beer Cup, the industry’s most prestigious beer competition. KC Bier competed against 2,515 breweries from 66 countries; there were 8,234 entries in 101 categories. Winterbock competed in the German-style Doppelbock category at the event May 3 in Nashville, Tenn. (Photo courtesy of KC Bier Co.) 50 THINKING BIGGER BUSINESS // June 2018

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»Thursday, July 26 // 4:30-6:30 p.m. Eastbrook Collaborative 1508 NW Vivion Road, Suite 300 Kansas City, Mo. 64118 »Featuring local drinks from Torn Label Brewery and Jowler Creek Winery