Thinking Bigger Business–Nov. 2016

VOL. 25 // ISSUE 11 // NOVEMBER 2016

BY THE BOOK

Tune up your employee handbook.

MYCROFT A.I.

Artificial intelligence from KC.

» iThinkBigger.com

GAME CHANGERS Basketball’s biggest names want to join ShotTracker’s team.

dream We’ll provide the tools, strategies

BIG

and connections so you can make your dreams come true.

TO L E A R N M O RE TO DAY, PL EASE CAL L (913) 432-6 6 9 0 O R V I SI T WWW.I TH I N KB I GGER .C O M

Think Bigger.

Take Flight.

1 6 t h

a n n ua l

2 5

u n d e r

2 5® a w a r d s

“A mile of highway will take you a mile.

A mile of runway will take you anywhere.”

-Unknown

Nomination Sponsor

Band Sponsor

Red Carpet Sponsor

VIP Reception Sponsor

Entrepreneurial patron sponsors

Burns & McDonnell CBIZ

Crema hr-haven

Alumni Reunion Sponsor

Print Sponsor

Alumni Leader Sponsors

HSMC Orizon Martin Pringle Law Firm

Principal Financial Group Staffing Kansas City

Heartland Seating Inc. LeaderFuel

technology group solutions llc Crema

CONTENTS

NOV E M B ER 2016 VOL. 25 // ISSUE 11

D E PA R T M E N T S

07 08 09 10 14 14 16 49 50

The Bigger Picture Biz Bits Legislative Briefs Calendar 25 Under 25® Updates BIG | deals At A Glance BIG | shots BIG | talk

OUTLOOK

20

KC MADE IT Easy as Pie?

A lot of hard work goes into Tippin’s pies.

21

KC FUTURES Take ‘Em to School

A $79 million investment in KC’s college education.

44

BUILDING KC Transportation and Logistics

Why we’re great at freight.

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

31

BIGGER | finance 5 Tax Tips for Year-End

Smart moves to make.

32

BIGGER | planning

26 ALL-STAR TEAM

ShotTracker’s founders made a point of hiring the best, including a CTO who did work for Los Alamos, a Notre Dame hoops star and a woman who brought AXE body spray to market.

Ready for Setbacks?

What you should do now.

34

BIGGER | law

KC ENTREPRENEUR

Contractor Agreements

Five must-haves.

36

BIGGER | hr Employee Handbooks

The importance of updates.

38

BIGGER | tech The Right CRM for You

Boost your sales and customer loyalty.

40

BIGGER | sales A Dangerous Question

Don’t ask “If I could ...”

41

BIGGER | marketing Why Over What

Lessons from a rebranding.

4

THINKING BIGGER BUSINESS // November 2016

ON T COV HE ER

A Slam-Dunk

IDEA

ShotTracker—what started as a “Fitbit for basketball”— is bringing real-time analytics to the game of hoops.

C O M PA N Y T O WAT C H

F E AT U R E

SCALEUP! KC

19 Mycroft’s Mission

22 The Vanishing Startup

42 A Fairer Deal for Coffee

Artificial intelligence’s next big thing could come from KC.

Is U.S. entrepreneurship on the decline?

Revocup’s Habte Mesfin wants to change how the world buys coffee.

SMART COMPANIES THINKING BIGGER®

5

CONTENTS

NOVE MB ER 2016

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Megan Scanlon Operations and Events Manager EDITORIAL

PRODUCED BY THINKING

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BIGGER BUSINESS MEDIA INC.

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James Hart Managing Editor

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valuable strategy articles!

SALES + MARKETING

Smart Companies Radio is on

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Go to iThinkBigger.com and subscribe to iThinkBigger.com Extra. You’ll get weekly updates about news, events and information that will help you grow your business.

Mary McKenna Business Development PRODUCTION & GRAPHICS

Carolyn Addington Production and Traffic Manager Jen Ross Graphic Designer Kevin Fullerton Design Consultant Dan Videtich Photography Photographer

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opportunities, classes and workshops.

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ARTICLE ARCHIVES // Did you miss an issue? Search our archives for thousands of articles.

SMART COMPANIES B L O G // Written by publisher Kelly Scanlon, you’ll get updates

on people, events and news impacting entrepreneurs.

25 UNDER 25 ® AWARDS // Learn more about the 25 Under 25® Awards

Program for businesses with fewer than 25 employees. www.25Under25.com

Dawn Bormann, Chris Brown, Deb Calvert, Marvin Carolina Jr., Bret Curtis, Mark Dryer, Karen Hughey P.O. Box 754, Shawnee Mission, Kansas 66201-0754 (913) 432-6690 // (888) 432-6444 // FAX (913) 432-6676 // editor@ithinkbigger.com sales@ithinkbigger.com // iThinkBigger.com A WBENC-Certified Women’s Business Enterprise See our SRDS listing at www.SRDS.com

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strategies from our exclusive Web columnists.

Aspire for More Shawn Kinkade How the FBI Can Help You Sell More Effectively WhiteSpace Revenue Zone Elizabeth Usovicz What’s Your Plan B?

6

THINKING BIGGER BUSINESS // November 2016

HEMP Mentor Maxims Jim Weir Getting Mistakes Right

FOR ARTICLE REPRINTS

Contact ReprintPros // Jeremy Ellis (949) 702-5390 or www.reprintpros.com Copyright © 2016, Thinking Bigger Business Media, Inc. All rights reserved. The information gathered and opinions expressed by the authors are intended to communicate information and are not necessarily the views of this publication.

The intent of this publication is to provide business professionals with informative and interesting articles and news. These articles, and any opinions expressed in them, are for general information only and are not intended to provide specific advice or recommendations for any individual or business. Appropriate legal, accounting, financial or medical advice or other expert assistance should always be sought from a competent professional. We are not responsible for the content of any paid advertisements. Reproduction or use, without permission, of editorial or graphic content, in any manner is prohibited. Thinking Bigger Business(ISSN 1068-2422) is published 12 times a year by Thinking Bigger Business Media, Inc. Subscriptions are $24.99 per year. This amount includes varying sales taxes, which are contingent upon the location in which the publication is sold.

Standard Mail Postage Paid at Shawnee Mission, KS.

THE BIGGER PICTURE

The Power of US

A

mid the growing rancor of the pres-

us vs. them, collaboration can get us further faster, advancing goals and fostering a

idential election, the American

healthier workplace culture.

Psychological Association has

released the preliminary results of a “Stress in

As we head into Global Entrepreneurship

America” survey showing the 2016 campaign has

Week here in Kansas City, for example, I’m

taken a toll on Americans.

reminded of how our community’s willingness to

Nearly half of those surveyed, from both parties, reported

work together around a common goal of making Kansas

feeling stressed by the divisive tenor of the campaign.

City America’s most entrepreneurial city is showing

Social media and the 24/7 news cycle have amplified the bitterness to a level that’s hard to escape. You can almost physically feel the cloud of negativity that has settled upon us.

results. National entrepreneurial programs like LaunchKC and ScaleUP! have chosen Kansas City as their launch pad. Locally, organizations and individuals are working together on programs to nurture entrepreneurship. Just recently, for example, the nascent KCRise Fund an-

Reading about the survey got me to thinking about

nounced its first two investments. These are just a few

how an us-versus-them mentality tends to pervade

examples of many.

other areas of our lives on a regular basis, even in our businesses: owner vs. employees, department vs. department, company vs. customers—the list goes on.

Yet in each of those instances, and in most instances of

Ke lly S can lon

When we work together, whether as a nation, a local community or a business, we bring out the best in each other, we leverage our potential and we get things done.

That’s the Power of US.

// Publisher // kscanlon@iThinkBigger.com

SMART COMPANIES THINKING BIGGER®

7

BIZ BITS

Apply Now for Next Spring’s InvestMidwest Applications are now being accepted for next spring’s InvestMidwest Venture Capital Forum. It’ll be held March 28-29 at the Sheraton Kansas City. The event showcases emerging companies that expect to hit $20 million in revenue within five years.

The early application deadline is Nov. 11 while the late deadline is Jan. 13. (Early applications tend to get preferential treatment.) For more information or to apply, visit www.investmidwestforum.com.

Microgrants Available for Small KC Exporters The KC Global Cities Initiative is offering microgrants worth up to $5,000 each for

small businesses that need help with exporting expenses. The money can be used to defray the cost of international marketing, translation services, market research and other expenses. Applicants must be based in the 14-county Kansas City Metropolitan Statistical Area and have fewer than 500 employees. For more information, visit www.bit.ly/2dtbFEU.

Nov. 16 Deadline for Missouri TechLaunch The Missouri Technology Corporation is taking applications through Nov. 16 for its Missouri TechLaunch funding program. It’s for startups that are commercializing research developed at Missouri universities or research institutions. Applicants can seek up to $100,000 in equity or con-

Thinking Bigger?

vertible debt for prototyping, competitive analysis and other activities. A complete list of requirements and an application form are available at www.bit.ly/2d8uxtb.

KS, MO Win Federal Exporting Funding Missouri and Kansas have been awarded fed- eral funds to help small businesses expand their exporting efforts. It’s all part of the U.S. Small Business Administration’s State Trade Expansion Program, which is paying out a total of $18.85 million in grants. Missouri’s share is $634,134, while Kansas will receive $383,000. The money will help companies pay for trade missions, translation services and other exporting-related expenses.

Techstars KC to Open Next Year

Let’s Talk.

Techstars, the nationally known accelerator program, is launching Techstars Kansas City.

It will start taking applications in January, and the class itself will begin meeting next July.

Ten startups will be chosen. Lesa Mitchell, the former vice president of innovation of networks at the Kauffman Foundation, will serve as managing director. The Techstars team ran the first three classes at the Sprint Accelerator.

Expanding your fleet? Adding square footage to your warehouse? Squeezing more out of your manufacturing line?

Keeping subcontractors in-line, ontime, every time?

If you’re thinking bigger for your business, we should talk.

EY Seeks Entrepreneur of the Year Nominees

816.753.2166 Commenco.com/ThinkingBig 8

THINKING BIGGER BUSINESS // November 2016

Radio Solutions Channel Partner

Nominations for EY’s Entrepreneur of the Year awards program will start on Dec. 1.

Nominees must own or be the primary manager of a public or private company, and they need to have been an active member of the company’s leadership for two or more years. For more information or to apply, visit www.ey.com/eoy.

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

FEDERAL Veto Threat Over Overtime Delay President Obama is promising to veto any legislation that would delay a new overtime rule from taking effect on Dec. 1.

Under the new rule, employees would be eligible for overtime if they make less than $47,476 per year, even if they would otherwise be exempt because of their job duties. Several members of Congress and groups like the National Federation of Independent Business want the implementation date to be pushed back to this coming June.

Help Young Founders by Reducing College Debt?

The Supporting America’s Young Entrepreneurs Act of 2016 (H.R. 6197) would allow for interest-free deferment of school loans and, in some cases, cancellation of part of those loans for startup founders and their employees.

Updating SBIR and STTR Programs The Commercializing on Small Business Innovation Act of 2016 (H.R. 4783) would update the federal government’s SBIR and STTR programs by indexing the award amounts to inflation. Federal agencies with SBIR programs would be required to create commercialization assistance pilot programs, unless they already offered something similar.

KANSAS Senate Republicans Unveil Plan for BETTER Kansas The Kansas Republican Senatorial Committee has introduced the BETTER Kansas plan, a slate of ideas for economic, education and regulatory reform.

The plan would create a legislative oversight committee that would meet at least quarterly and “ensure income projections are meeting balanced budget requirements.” The plan also calls for fully funding the state’s Rainy Day Fund and introducing a “no budget, no pay” rule: If the legislature doesn’t pass a budget in the first 70 days of the session, legislators would have to give up their salaries.

GROWING YOUR BUSINESS STARTS WITH STRONG ROOTS. At Central Bank, we understand that when it comes to business, time is money. So we don’t waste either of yours. All of our lending decisions are made locally, so we can be more flexible with your terms and get you through the process faster. Whether you’re just setting up shop or financing a multi-million dollar expansion, stop by any Central Bank of the Midwest location to start your loan today or visit centralbankbusiness.net.

MISSOURI Updates to Missouri Liquor and Alcohol Rules S.B. 994 will give the Missouri Wine and Grape Board the power to provide professional and legal services related to the distribution of wine. It also allows arenas and stadiums to sell alcohol to attendees who order via mobile apps.

Member FDIC l 816-525-5300 SMART COMPANIES THINKING BIGGER®

9

K C CA L E N DA R N OVE M B E R

10-22

08 Liberty Chamber After Hours

Global Entrepreneurship Week

Priority Care, 1540 N.E. 96th St., Liberty.

5–6:30 p.m. Free.

Several Kansas City groups are planning events for this international celebration of entrep-

INFORMATION/REGISTRATION »

Check out the official online listing for the complete slate.

(816) 781-5200 or info@libertychamber.com or www.libertychamber.com

reneurs. (There are so many events, in fact, they won’t all fit into a seven-day window!)

INFORMATION/REGISTRATION »

www.kcsourcelink.com/gew

JCCC Business Basics: Creating Financial Projections You Can Take to the Bank Learn how to develop projections that will help you run your business and convince bankers to lend you money.

Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 6–8 p.m. $20.

INFORMATION/REGISTRATION »

(913) 469-3878 or ceregistration@jccc.edu

ECJC Foundation Series: Idea to App Kunjan Shah of Quark Studios will talk about the process of creating a minimum viable product for new digital projects. Enterprise Center in Johnson County, 4220 Shawnee Mission Parkway, Suite 350B, Fairway.

10:30 a.m.– noon. $15 in person, $10 to stream.

INFORMATION/REGISTRATION »

www.bit.ly/1Q0yCx8 or (913) 438-2282

09 JCCC Business Basics in a Day This daylong program will help you vet your business idea, develop a business plan, choose a legal entity and more. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 8 a.m.–4 p.m. $69.

(913) 469-3878 or ceregistration@jccc.edu

INFORMATION/REGISTRATION »

Manage Your Financials, Don’t Let Them Manage You Learn how to interpret your company’s financial documents so you can make better business decisions. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 5:30-8:30 p.m. $199, scholarships available.

INFORMATION/REGISTRATION »

info.umkc.edu/sbtdc or (816) 235-6063

10 7 Tips for Writing Awesome Marketing Content That Gets a Response This daylong workshop will show you how to produce compelling content quickly. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 8 a.m.– 5 p.m. $199.

INFORMATION/REGISTRATION »

(913) 469-3878 or ceregistration@jccc.edu 10

THINKING BIGGER BUSINESS // November 2016

UMKC Bloch School Entrepreneur of the Year Gala Help recognize some of the city’s most respected business leaders at this year’s dinner and awards program. Kansas City Convention Center, Great Hall, 301 W. 13th St., Kansas City, Mo. 5:30–9 p.m. $300.

(816) 235-2791 or hilljonnae@umkcfoundation.org

INFORMATION/REGISTRATION »

12 Simple Steps to Starting Your Business: Startup Basics What skills do you need to start and run a business? What are the pros and cons of being a business owner? This workshop will help you find the answers. This is the first of a three-part series. SCORE, 4747 Troost Ave., Kansas City, Mo. 10 a.m.–Noon. (Check-in is at 9:45 a.m.) Free.

many companies from achieving growth and success. Kauffman Foundation, 4801 Rockhill Road, Kansas City, Mo. 9 a.m.–Noon. Free.

INFORMATION/REGISTRATION »

(816) 589-4136 or mleonida@usapolaris.com

The First Steps to Starting a Business Want to start your own company? This workshop will cover the strengths and weaknesses of business ownership, how to plan and more. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 9 a.m.–Noon. $75, scholarships available.

INFORMATION/REGISTRATION »

info.umkc.edu/sbtdc or (816) 235-6063

sign

The Basics of Writing a Business here Plan

In this workshop, you’ll learn how to build one of the most powerful guides for growing a small company: the mighty business plan! UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 1–4 p.m. $75, scholarships available.

INFORMATION/REGISTRATION »

info.umkc.edu/sbtdc or (816) 235-6063

JCCC Business Basics: Mastering the Business Plan Discover how to successfully write a business plan. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 6–8 p.m. $20.

INFORMATION/REGISTRATION »

(913) 469-3878 or ceregistration@jccc.edu

INFORMATION/REGISTRATION »

kansascity.score.org or (816) 235-6675

15 Scaling Up: How a Few Companies Make It … And Why the Rest Don’t Verne Harnish, founder of the Entrepreneurs’ Organization, will talk about what prevents so

16 Competing for Government Contracts: Basic Training The Kansas Procurement Technical Assistance Center will show you how to get started in government contracts, from local to state to federal opportunities. Kansas Small Business

Development Center, JCCC, 12345 College Blvd., Overland Park. 9:30 a.m.–Noon. Free.

INFORMATION/REGISTRATION »

(913) 469-3878 or ceregistration@jccc.edu

Independence Chamber Monthly Member Luncheon Lamar Hunt Jr. will be the featured speaker at this month’s event. Stoney Creek Hotel and Conference Center, 18011 Bass Pro Drive, Independence. 11:30 a.m.–1 p.m. $23.

INFORMATION/REGISTRATION »

(816) 252-4745 or amy@ichamber.biz or www.ichamber.biz

Lenexa Chamber Luncheon Ronnie Burt, president and CEO of Visit KC, is scheduled to speak. Overland Park Marriott, 10800 Metcalf Ave., Overland Park. 11:30 a.m.– 1 p.m. $25 for members, $30 for nonmembers.

Nonmembers are asked to call to register.

INFORMATION/REGISTRATION »

913-888-1414 or staff@lenexa.org

Funding Options for Your New Business Mid-Continent Public Library and Platte Valley Bank will present this panel discussion on how you can find financing for your new company. Platte Valley Bank-Parkville Branch, 8401 N.W. 45 Highway. 11:30 a.m.–1 p.m. Free.

Registration required.

INFORMATION/REGISTRATION »

www.mymcpl.org/squareone

Winning Federal Research Grants: SBIR/STTR Workshop If you’re a small business developing innovative technology, the federal government has grants that could help fund your work. Learn how to apply for them at this workshop. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 11:30 a.m.–2 p.m. $35.

30

HEMP’s Kansas City Business Mentoring Awards Celebrate the mentors who help Kansas City’s entrepreneurs thrive. John Mackey, co-founder of Whole Foods, will deliver the keynote. Presented by Thinking Bigger Business Media. Sheraton Overland Park, 6100 College Blvd. 11 a.m.–1 p.m. $75.

(913) 432-6690 or www.kcmentoringawards.com

INFORMATION/REGISTRATION »

INFORMATION/REGISTRATION »

info.umkc.edu/sbtdc or (816) 235-6063

Command Your Cash Develop a better understanding of your financial statements—and your business! UMKC SBTDC,

4747 Troost Ave., Kansas City, Mo. 5:308:30 p.m. $199.

INFORMATION/REGISTRATION »

info.umkc.edu/sbtdc or (816) 235-6063

Square One Small Business Services at Mid-Continent Public Library local entrepreneurs through access to free information, programs, and opportunity. Our Business Specialists will help you find what you need to compete in an ever-changing market!

Square One Small Business Programs This Fall

Square One Small-Business Services at Mid-Continent Public Library is funded in part by

Entrepreneurial Sales Workshop: How to Get Deals Done Friday, November 4 8:30 a.m. at Woodneath Library Center Step up your sales game with help from experienced entrepreneurs, sales trainers, and Library professionals.

Business of Micro-Distilleries with author Pete Dulin Friday, November 18 7:00 p.m. at Woodneath Library Center Explore KC's micro-distillery culture with panelists from J. Rieger & Company, S.D. Strong Distilling, Union Horse Distillery, Tom's Town Distilling, Lifted Spirits Distillery and Restless Spirits Distillery.

Business Basics: Doing Business in the Cloud Funding Options for Your New Business Business Basics: Non-Traditional Advertising for Small Businesses

Access Small Business

Visit mymcpl.org/squareone for dates of locations of programs at a branch near you! Programs are free to all, but require registration.

SMART COMPANIES THINKING BIGGER®

11

K C CA L E N DA R NOVE M B E R

17

18-20

IRS Small Business Tax Workshop

Startup Weekend

Learn the basics of complying with the IRS rules for small companies. Kansas Small Business Development Center, 12345 College Blvd., Overland Park. 1–5 p.m. $45.

INFORMATION/REGISTRATION »

Teams of strangers will compete to build a startup in a single weekend. This is a great opportunity for would-be entrepreneurs to get their feet wet. Sprint Accelerator, 210 W. 19th Terrace, Kansas City, Mo. Starts at 6:30 p.m. Nov. 18, wraps up Sunday afternoon. $99 for participants, $15 to attend Demo Day.

(913) 469-3878 or ceregistration@jccc.edu

INFORMATION/REGISTRATION »

www.up.co/communities/usa/kansas-city/ startup-weekend/8771

sign here

18

The Business of Micro-Distilleries Pete Dulin, author of “KC Ale Trail,” will lead a panel that includes distilling experts from several KC businesses. Mid-Continent Public Library-Woodneath Library Center, 8900 N.E. Flintlock Road, Kansas City, Mo. 7–10 p.m. Free.

Registration required.

INFORMATION/REGISTRATION »

www.mymcpl.org/squareone

INFORMATION/REGISTRATION »

kansascity.score.org or (816) 235-6675

Northeast Johnson County Chamber Annual Gala Celebrate the accomplishments of business owners and community leaders with an evening of dinner, dancing and auctions.

Overland Park Marriott, 10800 Metcalf Ave. 5:30–11 p.m. Tickets start at $100. www.nejcchamber.com or (913) 262-2141 or lvaughan@nejcchamber.com INFORMATION/REGISTRATION »

29 Doing Business in the Cloud

19 LinkedIn Profile Optimization Are you using LinkedIn to generate leads and find potential clients? This workshop will show you how. First of a two-part series. Next session is Dec. 3. SCORE, 4747 Troost Ave., Kansas City, Mo. 10 a.m.–Noon. (Check-in is at 9:45 a.m.) Free.

This workshop will provide an overview of cloud-based services and how they can help your company. You’ll also learn about the potential security issues involved with cloud services. Mid-Continent Public Library-Antioch Branch, 6060 N. Chestnut Ave., Gladstone.

6:30–8 p.m. Free. Registration required.

INFORMATION/REGISTRATION »

www.mymcpl.org/squareone

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913-663-JOBS (5627) | www.staffingkc.com 12

THINKING BIGGER BUSINESS // November 2016

816-842-7023 www.markone.com

Hungry for Knowledge?

Then you need to register for the next BIG Breakfast.

Learn behind-the-scenes stories from business owners featured on the cover of Thinking Bigger Business magazine.

Thursday, Dec. 15 // 7:30 -9 a.m.

Grand Street Cafe, 4740 Grand Ave., Kansas City, Mo.

RSVP TODAY AT ITHINKBIGGER.COM | (913) 432-6690 FOR SPONSORSHIP OPPORTUNITIES

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C L A S S U P D A T E S // 25Under25.com

20 04

Fulfillment Plus Owner Wins K-State Award

Davy Hartman Campbell, the founder of Fulfillment

RiskGenius Tapped for Silicon Valley Program RiskGenius has been selected for Plug and Play Insurance, a 12-week, Silicon Valley-based program that connects promising startups with Farmers Insurance, Munich Re, Travelers and some of the world’s largest insurance companies.

Plus, was named Kansas State University’s Phil Howe

Entrepreneur Alumnus of the Year for 2016.

20 06

Saepio Merges With Chicago Firm Saepio is now part of Brandmuscle, a Chicago-based

company. The Saepio team will continue to be located in Kansas City. Saepio’s CEO, Mark Hunter, is now executive vice president of operations for Brandmuscle.

20 07

National Recognition for El Dorado El Dorado made Architect

Magazine’s most recent list of the top 50 design firms in the United States. El Dorado was ranked No. 11.

20 07

New Sales Director at SoftVu

G. Sean Cassidy has joined SoftVu as sales director.

Cassidy was a regional director of sales and marketing at Blue Harbor Senior Living and a regional sales manager at A Place for Mom.

20 12

InnovaPrep Participates in Homeland Security Project InnovaPrep has received a Phase

II subcontract award through ENSCO Inc., the prime contractor on an aerosol-detection sensor project for the U.S. Department of Homeland Security’s Science and Technology Directorate.

20 10

New Vision for Former OGGI Building

Andrew Homoly of Homoly Construction is part of a project to turn the former OGGI Furniture building, 600 Central in downtown Kansas City, Missouri, into apartments.

20 04

Schloegel Adds Painting Unit Schloegel Design Remodel

has created a new in-house painting division. It’s headed up by Perry Holloway, who’ll work with brothers Vernon and Chris Belcher, all formerly of Titan Interiors.

14

THINKING BIGGER BUSINESS // November 2016

AWARDS/RECOGNITION KC Firms Win KS Minority, Women Business Awards Several KC entrepreneurs were among the winners of this year’s Kansas Minority and Women Business Awards. Among womenowned companies, the Culinary Center of Kansas City was the Service Industry Firm of the Year, while International Express Trucking was Supplier/Distributor of the Year. Seal Green-ReUse Concrete Sealing Specialists was the minority Supplier/Distributor of the Year. Christal Watson of the Heartland Black Chamber was the Minority Business Advocate of the Year. Jayne Siemens of Venice Communications was named Women Business Advocate.

4 Local Startups Enter the Sandbox Digital Sandbox KC has picked four more startups to receive help with their proof of concept: the Agreeable Company, B2G Data, PreScreend and Windsor Trucking Solutions.

FINANCING $5 Million in Investment for Site 1001 Site 1001, a cloud-based platform for facilities management and maintenance, has raised $5 million in Series A funding from JE Dunn, Flyover Capital, Tifec and Ward Ventures.

KCRise Invests in 2 Local Companies The KCRise Fund has made its first two investments, both of them in KC-based companies: SpiderOak and Innara Health.

SpiderOak will use the funding on its new Semaphor secure messaging service. Innara is known for its neonatal medical products, including the NTrainer System.

M&A Acendas Travel Expands in Minnesota Mission’s Acendas Travel has acquired Edina Travel, a Minnesota-based company, the latest in a series of acquisitions in the Twin Cities.

NEW BUSINESS New Pizza Place Heads to Crossroads HomeSlice Pizza & Pints

is preparing for a December opening at 1501 Grand Blvd. in Kansas City, Missouri.

On the GRID GRID Collaborative Workspaces

is a new coworking studio at 12022 Blue Valley Parkway in Overland Park. It also includes event space, a catering kitchen and photography studios.

Photo-Moments KC Develops Photo-Moments KC

(www.photomomentskc.com) is a new photography business owned by Mary Schulte. The company provides a range of editorial services, but one focus is professional photography for small businesses and nonprofits.

ON THE MOVE Unruh Heads to Midtown KC Unruh Furniture has relocated from Grandview to a former church at 3600 Walnut in

Too BIG to Fail (Is that a bad thing?)

EAG14-041 TBBM Ad v2.indd 4

Branding Design Digital

25 Under 25® Class of 2007 12/17/14 10:18 AM

midtown Kansas City, Missouri. The renovated space includes Unruh’s workshop and showroom.

Kansas. It’s open from 7 a.m. to 3 p.m.

Mondays through Fridays.

to a behavioral health therapist through StartTalking’s secure app.

Hufft Expands to Arkansas Local design firm Hufft Projects has opened an office in Bentonville, Arkansas, its first expansion outside the metro. Hufft is already working on several projects in the region, including a renovation of a former Tyson Foods processing plant.

OTHER NEWS InReturn Expands Leadership Team InReturn Strategies, a local startup that helps employers recruit job applicants with disabilities, has brought two new executives on board: Roy Owens, president and COO, and Wes Hedrick, chief product officer.

KC Bier Launches Retail Distribution KC Bier Co. (Thinking Bigger Business cover story, July 2016) is now selling bottles of its beer on local store shelves. Previously, customers had to order KC Bier on tap at a local bar or restaurant or visit the brewery’s tasting room.

KC Cupcake Co. Heads to Strawberry Hill Kansas City Cupcake Co. has opened a second location at 719 N. Sixth St. in Kansas City,

StartTalking Partners With QuikTrip StartTalking is part of pilot project with QuikTrip. About 3,000 QuikTrip employees in the Kansas City area will have access

2 New Clients for Blue Ocean The Golf Course Superintendents Association of America and local startup MemberJets have hired Blue Ocean Consulting to build their websites.

SMART COMPANIES THINKING BIGGER®

15

AT A G L A N C E

BY THE NUMBERS | EMPLOYMENT

MADE TO LAST | JESS & JIM’S

Where the Jobs Are (and Aren’t)

‘I Do Whatever It Takes’

Which KC industries saw the biggest gain in jobs between July 2015 and July 2016? According to MARC and the Bureau of Labor Statistics …

A hardy work ethic drives

GROWING

the family behind Jess & Jim’s.

Jess & Jim’s Steakhouse has been a Martin City favorite ever since 1938. Not even the tornado of ‘57—which destroyed its first building— could kill the nationally recognized restaurant.

2.7%

3.4%

5,100 jobs Professional business services

3,700 jobs Leisure and hospitality DECLINING

-9.1% 1,900 jobs Information

-0.1% 200 jobs Trade, transportation and utilities

RESEARCH + TRENDS | HEALTH INSURANCE

The Shift Toward High Deductibles More employees are being covered under high-deductible plans, according to Kaiser Family Foundation and Health Research & Educational Trust.

2014

2016

» 20% of workers were in

» 29% of employees are covered

» 58% were in Preferred Provider

» 48% are in PPO plans

high-deductible plans

Organization (PPO) plans

16

THINKING BIGGER BUSINESS // November 2016

by high deductibles

One of the secrets of Jess & Jim’s longevity? Good business is a family tradition.

Mike Van Noy and his brother, David, are the third generation to own Jess & Jim’s.

Mike and his wife, Debbie, run the restaurant while David operates another Martin City fixture, RC’s Chicken.

Debbie oversees the front of the house while Mike is the boss of pretty much everything else at Jess & Jim’s.

He still makes a point of literally being hands-on.

“He cuts every piece of meat that comes through this restaurant by himself,” Debbie said. (The two of them met when they were working at RC’s—she was a busgirl, he was a dishwasher.)

It all goes back to the work ethic that Van Noy’s dad instilled in him and his brother—the same one that he and Debbie taught their kids, two of whom still work in the restaurant.

“My dad taught us not to ask anybody to do anything you wouldn’t do yourself,” Van Noy said. “I do whatever it takes.” www.jessandjims.com

BIG STARTS | WORKVIEW

SOMETHING TO CHEW ON

A Better Way to Manage Your Work

Brown & Loe Restaurant

WorkView puts the emphasis on people, not projects.

429 Walnut Kansas City, MO (816) 472-0622 www.brownandloe.com

STARTUP // WorkView ENTREPRENEUR // Mark Williams HOW IT WORKS

Hours: 11 a.m.–10 p.m. Monday through Friday; 10 a.m.–10 p.m.

Saturday; 10 a.m.–8 p.m. Sunday

WorkView’s enterprise work management solution enables managers to lead people, not projects.

Typical project management solutions only show you what people are working on for a particular job: Jane’s doing mockups, Bob’s on marketing, Pete’s handling quality assurance.

However, they won’t warn you that Pete’s swamped with 10 other assignments. Or that Bob is sandbagging.

Lunch or Dinner

The team behind Harry’s Country Club introduces a new bistro to River Market.

GET IT STARTED

You won’t go wrong with a pierogi fixed with sharp cheddar, apple butter, crispy shallot and sour cream.

Ma

rk Williams

WorkView switches your perspective so you can view everything your team is working on in one place. It also allows for continuous performance feedback and real-time dashboards, analytics and operational insights.

And if Bob quits? WorkView has a feature that lets you see everything on his plate and seamlessly transition those tasks to someone else.

THE INSPIRATION

Williams needed something like WorkView in his old job, leading a $2.2 billion tech company here in town. He couldn’t find anything like it on the market. So he created a startup to build it.

Williams went from a team of 1,800 to eight. “It is absolutely a big culture shift, but it’s also extremely energizing and fun,” he said. “We have an amazing team and are excited to show everyone what we have been working on.”

THE MAIN EVENT

Be sure to check out the blue corn trout, served with creamed sweet corn, arugula, sunflower seeds and peppadew jam.

TRY THIS

Wrap up your visit with the Dixie pie, made with bourbon chocolate ganache, toasted pecans, vanilla bean ice cream and bourbon cherry compote.

WHO’S IT FOR?

Middle-market and enterprise-level companies in pretty much any industry.

WHAT’S NEXT?

WorkView will go on sale this month. Visit www.workview.com for more.

What’s your favorite restaurant for business meetings and client lunches? Email us at editor@ithinkbigger.com.

SMART COMPANIES THINKING BIGGER®

17

AT A G L A N C E

BIG INFLUENCE

Paul Dorrell Sees the Bigger Picture near what’s needed. Unfortunately, budget cuts have hit arts education particularly hard.

The Leopold Gallery’s founder helps raise funds for art education.

Paul Dorrell, the owner of the Leopold Gallery, doesn’t just represent some of the Midwest’s best working artists. He’s also helping the next generation develop their voices, too.

“These teachers can barely function with a budget like that,” said Dorrell, who also mentors Sumner and Paseo students.

His Leopold Gallery Educational Foundation donates about $10,000 per year to both Paseo Academy in Kansas City, Missouri, and Sumner Academy in Kansas City, Kansas.

Every kid who takes an art class probably won’t grow up to be a professional painter or sculptor. But they will become smarter, more well-rounded citizens, Dorrell said.

The money pays for art supplies, books and field trips—“all the same things that kids in the Johnson County districts have,” Dorrell said.

He’s passionate about the good that art can accomplish— and the harm caused by underfunding art education.

“It is killing our schools and our educational system,” Dorrell said. “So people like me have to wade in and make a difference where we can.”

Without the foundation’s help, those schools’ art departments would have only a few thousand dollars per year. That’s nowhere

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THINKING BIGGER BUSINESS // November 2016

Pau l Dorrell

In his latest book, local beer expert (and Thinking Bigger Business contributor) Pete Dulin takes you on a grand tour of Kansas City’s brewing history.

“Kansas City Beer” also shows how our local brews both influenced and reflected U.S. history.

C O M PA N Y T O WAT C H

MYCROFT

A Real Opportunity in Artificial Intelligence KC startup Mycroft creates “AI for everyone.”

ENTREPRENEUR

Joshua Montgomery COMPANY INFORMATION

Mycroft Kansas City, MO (785) 251-0563 www.mycroft.ai TYPE OF BUSINESS

Open-source artificial intelligence YEAR FOUNDED

2015

L

ocal startup Mycroft is tackling a huge challenge with an even bigger potential upside: It’s building an artificial intelligence that you could have a conversation with.

Some of the most respected names in technology have already developed voice-enabled software. Apple has Siri, Amazon has Alexa and Microsoft has Cortana.

One reason why Mycroft is different from those projects? It’s open source. That is, anyone can use or modify Mycroft’s code for free.

“We want to break it open and democratize it and make it open to the masses,” CEO Joshua Montgomery said. The startup’s tagline sums it up: “AI for everyone.”

It’s an idea that people are eager to support.

Mycroft recently raised $335,000 from the Northland Angel Investor Network, Star Power Partners and local angels. Last month, it won a $50,000 LaunchKC grant.

That’s on top of Mycroft’s successful Kickstarter campaign last year. It attracted more than $178,000 in donations—and caught the eye of Techstars at the Sprint Accelerator.

“The whole idea of Techstars completely took it to a new level,” said Kris Adair, Montgomery’s wife and Mycroft’s social media director.

Techstars has introduced Montgomery to a national network of blue-chip corporations.

Why are these companies interested in opensource AI? More and more consumers want connected, Internet of Things-style devices. Your company might be the world’s leading producer of waffle irons, but your team probably doesn’t have the time, money or expertise to build its own AI. Without an open-source alternative, corporations are left with the option of licensing AI from the big tech companies. In the process, they sacrifice control over their product. Sort of like how Apple dictated terms to record labels during the heyday of iTunes.

“One of the things that alarms these companies is getting sucked into somebody else’s ecosystem and suddenly you’re a pawn in a chess game being played by Google,” Montgomery said.

By using an open-source solution like Mycroft, the blue-chip companies retain independence without paying a ton of money. (Mycroft generates revenue by charging a small fee for extra features.)

This month, Mycroft will ship 1,000 copies of its first-ever physical device, also named Mycroft, to its Kickstarter backers. If you’ve seen the movie “Wall-E,” Mycroft the device looks like Wall-E and EVE had a baby.

“I like to say we’re about a year away from a technology that’s really mind-blowing when you interact with it,” Montgomery said, “and four or five years from where I want to be with your daily interaction with tech.”

James Hart is managing editor of Thinking Bigger Business Media.

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

19

KC MADE IT

( by James Hart )

HERE’S WHAT IT TAKES TO MAKE YOUR TIPPIN’S PIE.

The Root of Pie our neighborhood grocery store is just starting to buzz with shoppers planning their holiday meals. For Mark Boyer, though, Thanksgiving started a while ago.

Boyer is the president of local food company Tippin’s, whose pies have become a tradition for many Kansas City families.

The company will sell about 600,000 pumpkin pies during 2016. The bulk of them will be produced during the fourth quarter, just in time to land on Grandma’s dinner table.

“During this time of year, we’re making pumpkin pies all day long,” Boyer said.

(Apple and French silk—the company’s leaders on a unit and dollar basis—are in high demand during the holidays, too.)

Y

20 THINKING BIGGER BUSINESS // November 2016

On a typical day, the Tippin’s production facility ships 8,000 to 10,000 pies to customers across the Midwest. The company accomplishes this with a team of about 60 bakers. While there’s some machinery involved, a surprising amount of the work is hands-on, Boyer said.

Which, of course, is one reason why the pies are so popular: “They all look homemade, handmade.”

‘WE BABY THE CRUST’

What’s the secret to making a Tippin’s pie?

It starts with a delicious, but relatively simple recipe. Most of the ingredients are

items you could find at your local grocery store, Boyer said. What makes the difference is how they’re put together.

Tippin’s pampers its crust. The average person, armed with a rolling pin, places the pie dough under far more pressure than Tippin’s does. All that rolling “is what destroys a great pie crust,” Boyer said. Tippin’s process is gentler, which creates a lighter and flakier final product.

“If you had a microscope, you’d find layer and layer and layer of crust,” Boyer said.

“We baby the crust.”

Tippin’s also takes its time. The filling for the pumpkin pies is aged about two years.

The company has already purchased the pumpkin for the 2018 season. The apple pie filling, which doesn’t take as long, still rests overnight. So does the dough.

“A lot of it is having the patience to let the dough rest overnight,” Boyer said.

Tippin’s might be known best for its pies, but it makes a surprising array of other baked goods: bagels, croissants, cheesecakes, tea breads and a few cakes. Wander into the deli section, and you’ll find soups and salad dressings that Tippin’s prepared.

Ultimately, it all comes back to the pies.

If you account for all the different flavors, sizes and sugar vs. no-sugar added options, Tippin’s has more than 100 stock-keeping units (SKUs) for its pies.

“That’s what’s core to us,” Boyer said.

“That’s what we’re really good at.”

WHAT’S NEXT FOR TIPPIN’S?

Historically, Tippin’s has been a Midwestern brand. Now, though, the company is expanding into new markets in California, Texas, Arizona and New York. (The pie-maker’s market penetration is so strong locally that it pretty much had to look at other markets as a way to grow.)

Tippin’s is also working to create a gluten-free pumpkin pie for the holidays. It’s a challenge, but they’ve made real progress. However, Boyer said, the company will only put a gluten-free product on store shelves if it’s the same level of quality as its signature pumpkin pie.

“When our taste testers say, ‘I can’t tell the difference,’ then we know it’s ready.”

KC FUTURES

( by James Hart )

a four-to-one match, so long as it doesn’t go over $5,000. Students who hit certain milestones could earn another $2,000.

KC Scholars is open to applicants from both low- and modest-income backgrounds.

The scholarships and savings funds can be used at 17 schools in the region.

Plus, KC Scholars’ partner organizations will offer support services to help students stick with their schooling and complete their degrees.

“We are not aware of anything like this across the nation,” Tankersley-Bankhead said. “We believe this will be a national best practice.”

‘MR. KAUFFMAN WOULD HAVE BEEN DELIGHTED’

The Kauffman Foundation is no stranger to the world of scholarships. Thanks to its Project Choice and Kauffman Scholars programs, thousands of Kansas Citians were able to pursue college educations.

“The Kauffman Foundation—and Mr. Kauffman himself personally—has KC SCHOLARS AIMS TO BOOST KC’S always been dedicated to postsecondary completion,” Tankersley-Bankhead said.

POPULATION OF WORKERS WITH COLLEGE DEGREES. KC Scholars grew out of a yearlong series of meetings and conversations with 70 community partners who helped generate ideas for the initiative.

The foundation is dedicating considerable resources to KC Scholars, but officials he Ewing Marion Kauffman Founda$10,000 per year and renewable up to T tion recently announced a massive hope other individuals and organizations five years. KC Scholars will award 250 will contribute money to the project. The investment in Kansas City’s higher educaof these scholarships each year. goal is to make KC Scholars a long-running, tion: Over the next 10 years, it will devote » Adult learners—those who are community-sustained effort. $79 million to college scholarships and at least 24 years old and have Donors can create a named savings programs. earned at least 12 college scholarship by giving $2,500 The new initiative, KC Scholars, could be credits but didn’t receive a per year for five years, Jacob a big win not only for the scholarship recipipostsecondary degree— said, though smaller donaents, but for the regional economy, too. are eligible for scholartions are welcome, too.

By 2020, two out of every three jobs will ships worth up to $5,000 The application window require some kind of postsecondary degree per year, renewable up to for the 2017 scholarships or certification, said Larry Jacob, vice presTa kh five years. Each year, 200 nk will open on Jan. 2. In recent ident of public affairs and communications ersley-Ban of these scholarships will weeks, KC Scholars personnel at the Kauffman Foundation. be awarded. have been meeting with communiUnless something changes, Kansas City Here in the metro, there are ty groups and high schools to publicize might not have enough workers with postsecroughly 281,000 people age 25 or older the program. ondary education to meet its workforce needs. with some college credits but no degree.

“Every one of them remarks this is a That’s about a quarter of the population, HOW KC SCHOLARS WORKS game-changer for the community, for the said Beth Tankersley-Bankhead, director KC Scholars is addressing the need for region, for families,” Tankersley-Bankhead said. of KC Scholars. a better educated workforce with a threeShe recalled what one person told her tiered program: » A 529 college savings plan will award $25 after a presentation about KC Scholars: each to up to 1,000 local ninth-graders.

“Mr. Kauffman would have been so delighted » High school students in the 11th grade Fifty of those students will be selected for to see this program and the impact.” can apply for scholarships worth up to th Be

ea d

A Matter of Degrees

SMART COMPANIES THINKING BIGGER®

21

B Y

J A M E S

H A R T

THE VANISHING STARTUP The U.S. is experiencing a decades-long decline in a key measure of entrepreneurship.

»

Entrepreneurs have always been a rare breed. Unfortu-

But if you look at new businesses that employ someone other

nately, experts are worried they’re becoming even rarer.

than the owner—the companies that tend to have the great-

By one measure, more Americans appear to be starting busi-

est economic impact—they make up a shrinking share of the

nesses. Last year, in a typical month, 330 adults out of every

nation’s businesses.

100,000 launched their own businesses.

In 2013, out of every 1,000 companies, about 80 were less

That’s an improvement over 2013, when the rate of new

than a year old and employed someone other than the owner.

entrepreneurs was 0.28 percent, according to the Ewing Marion

That measure, “startup density,” is 20 percent lower than what

Kauffman Foundation. The foundation studies new business

it was before the Great Recession, and has been declining over

creation through its annual Kauffman Index of Startup Activity.

the last few decades.

SMART COMPANIES THINKING BIGGER®

23

like overly restrictive noncompete agreements, Morelix said. While noncompetes help small businesses protect themselves, overly restrictive agreements can throttle innovation.

Meanwhile, several states have expanded their professional licensing requirements— maybe beyond what makes sense. In some places, you need the government’s blessing to braid hair or recycle scrap metal for a living.

Licensing has a larger impact on entrepreneurs in low-income fields. Kauffman and the Institute for Justice found that states that license more than 50 percent of their low-income jobs had, on average, an entrepreneurship rate 11 percent under the national average.

Supporters say the rules are there to protect the public. Opponents argue they mostly benefit established businesses at the expense of newcomers.

Bradley suspects would-be entrepreneurs are staying on the sidelines because they don’t want to deal with these and other regulatory hassles.

He points to a recent study from the Heritage Foundation: In the past 15 years, the federal government has instituted 47,661 regulations with a price tag of $176 billion.

WHERE THINGS STAND IN KANSAS CITY This is bad news because new businesses help drive the larger economy.

In the 1990s, new companies regularly created more than 4 million jobs per year, the Bureau of Labor Statistics reports.

Last year, they generated about 3 million.

“This is a major concern at the local and national level,” said Steve Bradley, the head of Baylor University’s Baugh Center for Entrepreneurship & Free Enterprise, one of the country’s leading entrepreneurship programs.

“Small businesses create the majority of new jobs in the U.S.,” Bradley said.

“New businesses also bring many innovations to the market, challenging larger competitors, leading to lower costs for consumers.”

Put simply, fewer new businesses could lead to serious repercussions for all of us.

24 THINKING BIGGER BUSINESS // November 2016

WHAT’S BEHIND THE DECLINE? Nobody has a definitive explanation for the drop-off.

“There’s some research that indicates what could be behind it, but we don’t fully know,” said Arnobio Morelix, senior research analyst at the Kauffman Foundation.

It’s possible the United States is experiencing a natural trend toward fewer, larger companies—a Walmartization effect, he said.

Or technology could be taking over jobs that new small businesses would otherwise do. Tax-prep and accounting software might reduce the need for new accounting or bookkeeping firms, for example.

The Kauffman Foundation has also warned about artificial obstacles

When Kauffman released its most recent report on startup activity, Kansas City was ranked 18th among the country’s largest metro areas, up from 29th place in the previous year. It was one of the biggest jumps for any city.

One of the reasons for the change: In 2015, about 0.32 percent of Kansas City adults became entrepreneurs in a typical month. A year earlier, that rate was 0.23 percent.

“I think we’re seeing a steady flow of people with the desire to start new businesses,” said Maria Meyers, the director of the University of Missouri-Kansas City Innovation Center.

Meyers is also the founder of KCSourceLink, which connects wouldbe entrepreneurs with free or low-cost business help. During the Great Recession, KCSourceLink’s hotline had a surge in calls

“When personal finances are confrom “opportunity entrepreneurs”—those strained,” Meyers said, “it’s going to be who had lost their jobs and, as a result, harder for people to start businesses.” decided to go into business for themselves.

When the unemployment rate is high, KCSourceLink tends to get more calls THE WAY FORWARD for help. But as the economy has picked So what can we as a country do to reverse up, interest has stayed high, Meyers said. the decline in U.S. entrepreneurship?

Part of that might be due to the increased “We need to expand the ‘window of public focus on making Kansas City opportunity,’” Baylor’s Bradley said. “The “America’s most entrepreneurial city.” threshold to entry should be as low as John Addessi is a business consultant at possible so those with a good idea are the Kansas Small Business Development willing to try.”

Center at Johnson County Community ColHere are a few ideas from the experts: lege. If there’s been a drop-off in business creation locally, he hasn’t seen any sign of REIN IN NONCOMPETE AGREEMENTS :: it. The center still gets a lot of requests for Kauffman has recommended limiting assistance from aspiring entrepreneurs. the scope of noncompete agreements “We haven’t seen any decline and restricting them to one year whatsoever,” he said. in length.

That’s not to say there Employers should also be aren’t obstacles for new required to tell new hires business owners. about noncompete agreeComplying with regulaments earlier, Kauffman has tions can be a challenge, suggested. Some employees Addessi noted. There are learn they must sign a nonAr a range of state and federal ix nob io Morel compete on the first day they rules that apply to everything show up for work—after it’s too from producing your own cosmetlate for them to back out. ics to selling food to importing clothing from other countries.

REFORM STATE LICENSING PROGRAMS :: Another hurdle for many young busiThere are a range of steps that state nesses? A lack of cash. legislatures could take, including lowering Addessi recently assisted a client who the fees and educational requirements for plans to open an event business. Everycertain licenses, limiting the number of thing about the concept looks perfect, licensed practitioners that sit on licensing from the business plan on down. But boards and even reconsidering whether the startup cost, like it would be for any licensing is necessary for certain industries. brick-and-mortar operation, is steep—at Instead of licensing programs, states least $300,000. could switch to a certification system.

Another client plans to just rent room Under a certification regime, anyone can for a dog boarding operation. Building out operate in a particular field. But those the space will still cost about $80,000, who meet certain standards can qualify Addessi said. for certification, which signals a higher Even the expense of setting up an LLC level of quality to customers. for a home-based business can run a couple thousand dollars, Meyers said.

That might not sound like a lot of money, but if you’re a young person just starting out, or even a mid-career professional whose assets took a hit during the Great Recession, every dollar matters.

Research has found that most new entrepreneurs rely on their personal savings as their business’s primary funding source, Meyers said.

CONTINUE TO ENCOURAGE INNOVATIVE FORMS OF FUNDING :: Peer-to-peer lend-

ing and crowdfunding (including equitybased crowdfunding) create other ways for young companies to find the money they need to start and grow.

OFFER A SAFETY NET FOR STARTUP FOUNDERS :: It might be worth offer-

ing some form of social insurance to

people who launch their own businesses, Kauffman’s Morelix said.

France introduced something similar in 2002. People were allowed to keep the unemployment benefits from their old jobs for three years—if those people started their own business. The business creation rate increased by 24 percent.

Offering a basic safety net—or programs like subsidized daycare—could make it possible for middle-class or low-income entrepreneurs to take the risk of going into business for themselves.

DON’T PENALIZE ENTREPRENEURS :: “We

need to minimize taxes that reduce incentives for business initiation,” Bradley said.

Starting a business demands a significant investment of effort and resources.

Historically, entrepreneurs have made the leap anyway because of the opportunity to achieve a higher income. If taxes wipe out that advantage, some would-be business owners may decide it makes more sense to remain an employee.

“We are increasingly penalizing rather than rewarding success,” Bradley said.

CREATE A DEDICATED, PERMANENT STARTUP VISA PROGRAM :: Immigrants tend to launch

businesses at a higher rate than the general population. In fact, some of the United States’ biggest technology firms count immigrants or immigrants’ children among their founders.

But right now, these entrepreneurs often have to be sponsored by an employer in order to win an H-1B visa—meaning they can’t really focus on creating their own company. There’s also the EB-5, but it comes with a financial requirement that’s beyond the reach of many startup founders.

The good news in all this is more policymakers are paying attention to the decline in entrepreneurial activity, Morelix said.

They realize that a drop-off in new businesses could ripple out and cause bigger problems for the U.S. economy and society at large.

“I think this is something that should be of concern,” Morelix said. “This is something we should pay attention to.”

James Hart is managing editor of Thinking Bigger Business Media. (913) 432-6690 // jhart@ithinkbigger.com SMART COMPANIES THINKING BIGGER®

25

KC ENTREPRENEUR

Some of the biggest names in sports have their eye on ShotTracker.

Its tech could change the game of basketball … and beyond.

THE GAME

CHANGERS ENTREPRENEURS

Bruce Ianni and Davyeon Ross C O M PA N Y I N F O R M AT I O N

ShotTracker 7220 W. Frontage Road Merriam, KS 66203 844-385-1073 www.shottracker.com TYPE OF BUSINESS

Sports analytics YEAR FOUNDED

2013 E M P L OY E E S

15 K E YS T O S U C C E S S

“You can’t score if you don’t shoot.”

—Davyeon Ross, co-founder

A

few years ago, Bruce Ianni was shooting hoops with his 10-year-old son when Ianni had an idea that might—and this is not an exaggeration—change the game of basketball.

“He said, Dad, ‘I really want to get better at this,’” Ianni recalled. “Well, you can’t improve what you don’t measure.”

That’s sound fatherly advice, but Ianni is a little different from other dads. He had recently sold his search-engine startup, Innovadex, a “Google for chemists.” It was a strong, successful exit—early investors walked away with an ROI about 42 times what they put in—and Ianni was looking for his next venture.

What if there were an easier way for basketball players to track their shot attempts and completions? Maybe even chart their position on the court, too. Kind of like a Fitbit for basketball.

Ianni immediately thought of Davyeon Ross, a friend and fellow entrepreneur he’d met through Pipeline, a Kansas City-based fellowship and network for high-growth entrepreneurs.

Ross, who played basketball for Benedictine College in Atchison, had sold his company,

right // Davyeon Ross, co-founder and COO; CTO Clint Kahler; Bruce Ianni, CEO and co-founder

26 THINKING BIGGER BUSINESS // November 2016

Digital Sports Ventures, to one of the country’s biggest networks for online video ads.

“Knowing I played basketball in college and had a computer science degree, Bruce reached out and pitched me the idea,” Ross said. “I asked him for a few days to do some market research.”

It didn’t take days. Ross called back about 7:30 the next morning. He had spent most of the night researching the market. Not only was a “Fitbit for basketball” a massive opportunity, the market was wide open.

Three years later, Ianni and Ross’ startup, ShotTracker, has raised about $10 million, including $5 million from a round that closed in October. Their investors are people like hoops legend Magic Johnson and former NBA commissioner David Stern.

The young company also is finishing up a stint in an accelerator the Dodgers run for sports-themed startups. (Some of the Dodgers’ owners are ShotTracker investors, too.)

Coaches and players love the technology.

ShotTracker produced a video featuring praise from Kansas basketball coach Bill Self and coaches from Michigan State, Notre Dame

by James Hart // photography by Dan Videtich

CREDIT FOR THE ASSIST ShotTracker has built national buzz through promotions with pro players. Golden State Warriors star Klay Thompson has hosted two “virtual basketball camps” with the startup.

SMART COMPANIES THINKING BIGGER®

27

and other schools. Stern pops up, too: “This technology is going to change our game.”

David Stern has decades of experience in the basketball business. He helped elevate the NBA to an international phenomenon.

He is not a man who is easily impressed.

“For him to state, ‘This is the future,’ it was probably one of the biggest pats on the back,” said Ross.

JUMP SHOTS ARE LIKE FINGERPRINTS

As tech guys, Ross and Ianni were well positioned to take on the challenge of ShotTracker.

“Everybody’s jump shot is as unique as a fingerprint,” Ross said. “We had to develop an algorithm and get the right data to be able to solve that problem.”

But ShotTracker is also a physical consumer product. Players wear a sensor on a wristband or shooting sleeve, which interacts with another sensor on the hoop’s net. Stats get fed to a smartphone app.

Neither Ross nor Ianni had developed hardware before, but that didn’t really slow them down. In a couple of months, they had a “Our team is amazing and incredible. They physical prototype. In nine, they were ready are the reason we have had the success we to go to market. They have had, and we are just skimming the surface.” were used to building softDavyeon Ross // co-founder, ShotTracker ware, which has faster deadlines.

“We’ve continually shocked people at how fast we’re getting to “They told us, hey, this is awe- companies like Fitbit and others them,” Ianni said. “But from our perspectives, it was taking forever.” some, but tweak this, or it would had already proven that the consumer wanted to get better. The The first batch of ShotTrackers be even better if you did this,” Ianni said. quantified self existed.” quickly sold out, just a couple The ShotTracker team incorweeks before Christmas 2014.

TEAM EFFORT “And then we stopped produc- porated those suggestions, then Early next year, right in time went back to production. That’s tion,” Ianni said. “After Christmas, we called all the customers. one reason why ShotTracker holds for March Madness, ShotTracker will roll out its new product: a 4.5 star rating on Amazon.

Now we didn’t reach them all, ShotTracker Team.

“I also think that timing has but we spoke to most of them.”

The concept for Team grew out been very helpful,” Ross said.

Literally hundreds of users of feedback from coaches. They “We entered the market when offered commentary.

28 THINKING BIGGER BUSINESS // November 2016

loved ShotTracker for off-season, single-player use. But they needed something for full-team practices.

So Ianni, Ross and their colleagues developed ShotTracker Team. Instead of monitoring a single player, it can provide analytics for 18 players using 18 balls at multiple hoops, all in real time. The system works off sensors in a gym’s rafters, on players’ shoes and in the ball itself. (Basketball manufacturer Spalding, a ShotTracker investor, is a partner in the project.)

Team counts shots, rebounds, turnovers, assists and every other metric that matters. Players can be emailed a performance report as soon as practice is over.

“The level of complexity was off the charts,” Ianni said, “but one of the reasons we were able to solve it was because we had an absolute genius in our midst.”

He was talking about Clint Kahler, the startup’s chief technology officer and a mechanical engineer who once did work for the Los Alamos National Lab. He figured out a lot of the math that runs ShotTracker. The system can simultaneously follow each player and the ball through the X, Y and Z axes of 3-D space, down to the centimeter.

Kahler’s a good example of a ShotTracker strength: The founders made a point of building an all-star team. Not all of those

Ianni said, is to make ShotTracker as commonplace as Wi-Fi in coffee shops.

Over the next few months, the company will open 12 to 20 demo centers around the country. Hundreds of organizations, including NBA teams, say they’re interested in becoming clients.

It’s not hard to see the potential.

ShotTracker could assist teams during practice, sure, but what if the technology were deployed during real games? Sports media, fantasy basketball leagues, video-game makers—all of them could be potential consumers of that information.

“We have unlocked a tremendous amount of data that was previously inaccessible,” Ianni said.

A lot of ShotTracker’s innovations could easily be applied to sports like football, volleyball or soccer, too. While ShotTracker is the name everybody knows, the company’s official name is DDSports, short for Data-Driven Sports, Ianni noted.

First, though, they want to establish their beachhead people are based here. Shotin basketball.

Tracker employs an electrical “We want the customer experiengineer in Austin and a project ence to be brilliant and selfmanager from San Francisco. The evident, like the iPod was when chief marketing officer—a woman it originally came out,” Ianni who helped Unilever bring AXE said. “No instructions necessary. body spray to market—lives And we’re very, very close.” in Chicago.

“Our team is amazing and ‘I’VE GOT HIS BACK ’TIL DEATH’ incredible,” Ross said. “They ShotTracker operates out of are the reason we have had the a former Andersen Windows & success we have had, and we Doors along Interstate 35 in Merare just skimming the surface.” riam. One of the location’s selling points was the 5,000-square-foot ‘WE’RE VERY, VERY CLOSE’ warehouse at the back of the The price of ShotTracker building, just the right size for a Team starts at $3,000. It’s afford- full-size basketball court. able enough that everyone from On a recent morning, the an NBA franchise to your local company’s business development YMCA could buy one. The goal, guy—Ryan Hoover, a former

Notre Dame guard who played in Europe for several years—was helping with product testing (shooting hoops). ShotTracker also has recruited a string of volunteers, including college and professional players, to come in and test their technology.

Ross oversees the technical side of the business, along with project management and networking relationships.

Ianni covers sales, investor relations and operations.

Working with a co-founder has been a new and extremely positive experience, Ross said. With his first startup, “I didn’t have that luxury.

That was a new thing for me. I don’t think I can go into future deals without a partner.”

The two men share a lot in common—they’re both tech entrepreneurs with a common faith and a passion for sports—but they’re also very different people.

“We disagree a lot,” Ross said, “but it’s so healthy because we disagree with respect.”

They force each other to sharpen their ideas, making the ultimate outcome stronger.

Both men also credit their faith as giving them a common ground, too.

“If Bruce says to me, ‘D, you gotta trust me on this one,’ I’ve got his back ’til death,” Ross said.

“And vice versa.”

“We’ve been so fortunate and so blessed,” Ianni said. “And it’s crazy how all the pieces have come together. Our success is inevitable if we don’t screw it up. We’ve been trusted with this opportunity to bring it to fruition. We have to use our God-given talents to make sure we do that.”

James Hart is the managing editor of Thinking Bigger Business Media.

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

29

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BIGGER | finance S M A R T

( by Bret Curtis )

S T R AT E G I E S

5 Tax-Saving Tips for Year’s End Save yourself some headaches by starting now.

I

f you find yourself scrambling at the end of the year to find tax-saving opportunities, here are five tips you can use right now.

Start Early // As a business owner, you’ll

save yourself future headaches if you communicate with your CPA now to understand what you’ll need to do before year-end.

Plus, the closer you get to year-end, the less time you have to put a plan in place to control your income tax liability.

Assess Your Needs for Capital Improvements //

Congress has enacted several provisions in recent years that incentivize capital improvements by advancing otherwise allowable deductions. If this is a big income year for

you, take advantage of those provisions if you have capital improvement needs.

employing individuals who receive government assistance? There is a credit for that.

Are you reporting tips received by your employees? There is a credit for that. Be mindful of the credits that are available and start tracking them.

Take Advantage of Accounting Method Options // Depending upon the

method of accounting that you use for federal income tax purposes, you may be able to shift income and expenses between years by prepaying some of your expenses, or waiting to receive some of your income. If that is the case, start now to slow down or speed up those income or deduction items to manage your overall net income level for the year.

Understand the Reporting Requirements for ACA //

Consider Credits // There are a number of available credit programs that can substantially decrease your overall tax burden. Are you doing research activities as part of your business? There is a credit for that. Are you

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That way, you can organize the necessary data now before the Jan. 31, 2016, deadline for the Affordable Care Act. Also, if you own a business with 50 to 99 employees, be prepared to offer health insurance to eligible employees or pay the mandated penalties.

Bret Curtis, CPA, JD, LLM, is a shareholder in the Mize Houser & Co. P.A. Overland Park location. www.mizehouser.com

every experience matters

SMART COMPANIES THINKING BIGGER®

31

BIGGER | planning S M A R T

( by Marvin Carolina Jr. )

S T R AT E G I E S

Find Backup Solutions Before You Need Them Don’t let setbacks derail your company’s growth.

I

owned a beverage distributing business in Atlanta for six years. When my business was still young and I only had one driver and one delivery truck, I faced a crippling setback: My driver had an accident. He was unscathed, but my truck was not, and since it was my sole source of income, I lost

money each minute it sat banged up and broken in my parking lot.

My driver had been in fender benders before, but after each one, my truck still ran. This time was different. To make matters worse, since my driver had been in so many accidents, my insurance agent

threatened to cancel my policy. I had to have a truck to deliver my products, so I scrambled to find a replacement and soon found a truck-rental company.

I learned a valuable lesson: Always keep an extra truck in the parking lot. Why did I not consider getting a second truck before my truck was out of commission, especially since my driver had been in accidents?

When I thought about getting a second truck, since I had so many tasks I had to complete now, I told myself I would figure it out later. And never did.

Make a Plan Losing my delivery truck taught me I needed a backup truck, so when I went to the truck-rental company, I rented two trucks. From then on, I always kept a backup truck. I also learned a second lesson: Plan. This accident did not ruin my business, but having to rent two trucks for a week put a financial strain on my business and an emotional strain on me.

I remember thinking afterwards I should have seen this coming—and should have prepared for it—so I promised myself I would not be surprised again by a setback.

I sat down and listed all of the major and minor setbacks that could happen to my business. Then I found a solution for each of them. If you have not done this yet for your business, you should.

Some of the questions you should consider: » What would happen if your building caught fire? Do your employees know the escape routes and where the fire extinguishers are? » Building on that, what would you do if your office wasn’t usable because of fire, flooding or some other unexpected disaster? Could your employees work remotely? How would you communicate with your clients? » What if your most valuable employee leaves or experiences a major illness? Do you have someone else on your team who could cover that person’s duties? Could you temporarily outsource? Do you have an operations manual that could be used to train the temporary help? » What would you do if you lost your single biggest client? Do you have a reserve fund to cover expenses or—even

32 THINKING BIGGER BUSINESS // November 2016

better—do you have systems in place to warn you from becoming too reliant on any one customer in the first place? » What if your online accounts were hacked? How would you respond? How could you prevent an intrusion? » What if a key piece of equipment went out of service at a critical moment? » What if you experienced an interruption in your inventory? Do you have other suppliers who could step in? » Kansas City is in Tornado Alley. Do your employees know where your tornado shelter is and what items are kept in the shelter?

Reacting Is Too Late When discussing setbacks, preparation is the key. If you have taken uninterrupted time to consider what to do in case of a setback, when one happens, it will not hit as hard because you will have a plan in place.

You and your employees will remain calm,

knowing you will overcome the setback by simply following the plan.

When a setback strikes and finds you without a plan, you panic. You need to find the right solution, and you need to find it quickly. If you do not, you may lose your business. This creates a mountain of pressure and fear, and you have to find the right course of action in the midst of all of this.

Facing a setback is bad, but facing a setback when you are unprepared is worse.

It is also an excellent way to make a horrible decision. One of the best ways to make a minor setback a major one, or a major setback a crisis, is being forced to make a quick decision.

When you plan ways to respond to setbacks, you will not only find creative solutions, perhaps more importantly, you will

also find ways to prevent those setbacks. Fire alarms and escape routes save lives in a fire, but sprinkler systems and fire extinguishers prevent blazes from starting.

We experience setbacks in business and in life.

Some are annoying and short-lived. Others are costly and devastating, and they leave painful lessons we never forget.

Regardless of its severity, a setback always teaches a lesson, but I learned the hard way it is far better to find a solution to a problem before you have the problem.

Marvin Carolina Jr. is vice president of corporate diversity at JE Dunn Construction, where he has spent the last 10 years helping business owners and entrepreneurs across America realize their businesses’ potential.

(816) 474-8600 // marvin.carolina@jedunn.com // www.jedunn.com

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33

BIGGER | law S M A R T

( by Chris Brown )

S T R AT E G I E S

5 Things You Need in Your Contractor Agreements How to build an agreement that works for you.

A

ccording to research by Intuit, more than 40 percent of U.S. workers will be independent contractors by 2020.

34 THINKING BIGGER BUSINESS // November 2016

Unlike employees, contractors decide when and where they work, what equipment they use and whether to use subcontractors. Further, while you probably don’t have employment contracts with most of your employees, it is critical that you have written contracts with your contractors because your ability to monitor their performance, terminate their services and

own the intellectual property they create, will largely be dictated by contract law, not employment regulations.

Perhaps the most practical approach for startups and small businesses is to utilize a master services agreement (MSA) with one or more attached statements of work (SOW). The MSA will outline the key legal terms that don’t change often while the

Here are five things your indepenSOW will outline the services and payment dent contractor agreement template terms that change from project to project should contain: and contractor to contractor. Each SOW is attached to and governed by the MSA. Term and Termination Since it is inevitable that you will find Make it clear how long the MSA will last yourself in a dispute with and how and when each a contractor at some point, party may terminate the Unlike employees, you should work with an MSA. It is common for attorney to reduce your contractors decide when MSAs to have an initial risk by creating a custerm of one to three and where they work. tomized, and thorough, years with some kind of contractor agreement temrenewal mechanism. For plate that aligns with your termination, make sure business operations. That you have a termination right in case you way, when the dispute arises, you’ll have no longer want or need the contractor’s a formal contract in place that can be used services, and always limit your contracto speed up the dispute resolution process. tor’s termination right to require 30 or 60 days’ notice to prevent a burden on your operations if the contractor walks away.

Alternatively, you can prevent them from terminating altogether.

Last, outline what happens upon termination—for example, describe how the final payment process will work and how long the contractor has to deliver the work product.

Services and Intellectual Property The contractor’s services will most often be outlined in individual SOWs. You should be explicit about what you expect the contractor to perform—include deadlines, key performance indicators, app functionality, etc. This is also a good place to include a provision regarding the use of subcontractors. Sometimes they are expressly prohibited. Other times they are allowed but only with your written consent.

Most importantly, always include a section in the MSA that unambiguously states that all work product and associated intellectual property created under the contract will be owned by you, not the contractor.

Without this language, the contractor will have a very strong argument that he or she owns all copyright associated with the work product they create.

Restrictive Covenants If confidential information is changing hands, make sure your MSA includes a section on confidentiality that prohibits your contractor from using or disclosing your confidential information. Further, if

your contractor will have direct contact with your clients or employees, you might include nonsolicitation terms to restrict the contractor from soliciting your clients or employees. In most situations, the nondisclosure obligation will survive the termination of the agreement for about five years, while the nonsolicitation obligation will survive for between one and three years.

Payment Terms While each SOW can include projectspecific payment terms, you should consider including default invoice and payment terms in the MSA itself. Most common is a requirement that the contractor submit invoices with net 30 payment terms.

If you change the default terms in a SOW, make sure you do so using unambiguous language. State when and how payments are to be made, whether payments are refundable deposits, whether they are dependent on the contractor hitting certain milestones, etc.

Contractor Status and Legal Terms Finally, be sure your contractor agreement explicitly states that the contractor is, in fact, an independent contractor. It should state that the contractor will be liable for his or her own tax obligations and insurance needs, and it should require the contractor to indemnify you for anything he or she does wrong, including failure to pay taxes. As with all contracts, it should also end with the “boilerplate” legal terms such as nonassignment, nonwaiver, governing law, etc.

Together with your lawyer, you should be able to create a reliable, and reusable, contractor agreement template to help your business grow.

This article is very general in nature and does not constitute legal advice. Readers with legal questions should consult with an attorney prior to making any legal decisions.

Chris Brown is the founder of Venture Legal, a Kansas City law firm serving the entrepreneurial community, and also the founder and president of b.Legal Marketing, a website development and hosting platform for small law firms. www.csb.me // @CSBCounsel SMART COMPANIES THINKING BIGGER®

35

BIGGER | hr S M A R T

( by Karen Hughey )

S T R AT E G I E S

Is Your Employee Handbook Out of Date?

Three recent changes mean you might need to refresh your policies.

T

here is no law requiring you to have an employee handbook, but it’s still a really good idea. In a single document, your handbook details your workplace’s rules and policies. It’s a way for you to spell out the behaviors you want to see— and the ones that, by law, your employees must avoid.

36 THINKING BIGGER BUSINESS // November 2016

The tricky thing is that employment law (and its interpretation) changes regularly. If you aren’t updating your handbook, your official rules may be out of line with federal regulations.

Here are a few frequently seen policy statements that may get you in trouble. » Social media continues to evolve. It impacts employers’ and employees’ responsibilities inside and outside the workplace. What is your social media policy? Do you currently prohibit employees from posting any information about your company on social media? If so, this could be unlawful under recent

decisions by the National Labor Relations Board. » Employers cannot discriminate in hiring and promoting based on protected categories. Are you keeping up with what is and what is not a protected category?

There can be confusion and misunderstanding around this. The handbook is a great place to provide clarification for employees and managers. » Do you still state that employee compensation is confidential and that disclosing compensation to others may result in discipline or termination? If so, this is now considered unlawful per the National Labor Relations Board.

Useful Policies for Your Handbook There are many policies you should include if you choose to create an employee handbook. A few are: » Be sure to have stand-alone at-will policies. The policies should explain what “at-will employment” means and should

» Note that nonexempt employees are prohibited from working overtime without prior approval. Clarify that if they work unauthorized overtime, they will be paid.

However, also note they are subject to discipline up to and including dismissal.

The handbook is not just about the rules.

Employees want to know what benefits the organization provides. Tell them about your paid holidays and PTO accrual. Promote your benefits and the reasons why you are a great employer.

»

» »

»

»

How to Update Your Handbook An employee handbook can provide your company with valuable legal protections, too. For example, an at-will policy can provide a defense against an employee claim of breach of contract.

Once a year, review the handbook and make appropriate policy updates. Then, communicate and distribute the handbook to your employees.

More employers are providing the handbook electronically. That is fine. Just make sure it is in an accessible place, such as an employee portal where all employees can reference the handbook. If employees don’t have computer access, provide a couple of printed copies that are available to them.

At the yearly update, have all employees note that it cannot be modified except sign a new acknowledgment of receipt. File with a written agreement, such as an each receipt in the employee’s personnel file. employment agreement.

Keep in mind that no one reads a Make it clear that the handbook is handbook from cover to cover. Employers not a contract and that the company shouldn’t ask employees to say they’ve read reserves the right to modify the handbook. the handbook. Instead, use verbiage such Define who is exempt and as, “I have received the what that means. handbook” or, better The tricky thing is yet, “I have received Include an Americans with and will reference the that employment law Disabilities policy if you handbook.” have 15 or more employees. changes regularly.

If your handbook Have an equal employment hasn’t been thoroughly opportunity policy on nonupdated in the last discrimination, not simply a year, it is probably outdated. A little handsexual harassment policy. Include book and policy work now can prevent a reporting procedure. misunderstandings, save time and avert If you are covered by the Family and possible legal headaches in the future.

Medical Leave Act, be sure to include the FMLA policy in your handbook.

» Provide a resource and contact information for employees to report improper payroll deductions. State when corrections will be made.

Kansas City SCORE

4747 Troost Ave., Suite 101 Kansas City, MO 64110 https://kansascity.score.org/ 816-235-6675

Karen Hughey is the founder and principal of Maren Human Resource Consulting and Coaching.

(913) 645-7129 // karen@marenconnect.com SMART COMPANIES THINKING BIGGER®

37

BIGGER | tech S M A R T

( by Mark Dryer )

S T R AT E G I E S

How to Choose the Right CRM for Your Small Business CRM can lead to stronger customer loyalty—and sales.

B

usiness owners are always looking for ways to increase their company’s productivity and efficiency, while also improv-

ing customer loyalty and sales. A Customer Relationship Management (CRM) solution can help you do both.

At its most basic, CRM is software that helps your company build and maintain relationships with clients. It’s a way to manage your customers’ contact info and track how and when you’re communicating with them. Most providers have incorporated a

series of other tools—sales, accounting, vendor information and more—so you can run a huge part of your business through a single interface.

Prices depend on the solution and your company’s size and needs. Your bill could be $10 a month or hundreds of dollars.

It’s a good idea for almost all businesses.

A survey by Tech News World showed that 67 percent of customers who interfaced with a business using a CRM solution reported better quality of service, and 58 percent reported a closer relationship and increased satisfaction during their interactions.

But choose the CRM that’s the best fit for your company. Get it right, and you’ll see improvements in your customer’s satisfaction, sales and team efficiency. Get it wrong, and you’ll be paying for a system no one uses.

One Size Does Not Fit All Since the system will be utilized by virtually every department within your company, a good CRM should first and foremost be easy for staff to use and understand. There are a few essential questions to ask when selecting a CRM. » What do you want the CRM to do for your company? » Will it be cloud-based or installed on the computers in your office? » What tools or features does your ideal CRM offer? » How difficult will it be to introduce your existing data into this new CRM? Is the system a good fit for your business? » Any other possible drawbacks or challenges?

It’s critical to carefully do your homework up front and pick an appropriate CRM. Failure rates for CRM implementation can be as high as 63 percent, according to Business2Community.

The Features You Need Your CRM should at least have these key features. » Is your CRM easy to use? Does it seamlessly integrate with your business and your other systems?

38 THINKING BIGGER BUSINESS // November 2016

Print Puts You Out in Front!

» Does your CRM have tools for automated email responses and fullfledged email campaigns? » Can data be entered from any location? A system you can only use at the office is not much of a solution. » Does your CRM track sales quotes and orders? Can it be used to generate invoices? » Can it help you calculate sales forecasts? » Can your CRM help your individual salespeople track their own progress and how close they are to meeting goals or quotas?

Analytics and data tracking should be properly set up so that you’re getting accurate and relevant insights.

And don’t forget to find out what customer support is offered. If it fits your price range, select a system that offers 24/7 customer support.

The Human Element When adopting a CRM solution into your business, don’t forget that the ultimate success of implementation will be determined by the individuals on your team. Is the CRM easy for them to use? Do they get value out of using it? Remember that for some of your staff, you may be asking them to change their habits and the way they keep track of things—no small thing.

Perhaps get a few key members of your staff involved in the selection process.

Then, once you’ve decided on a CRM, allow time for training to make sure that everyone knows how to use the system and where they can turn if there’s a problem or question. Assign one or more tech-savvy staff members to be the designated CRM guru within the company.

Selecting the correct CRM for your business is an important decision. Keep these tips, your own research and your employees’ feedback in mind when making your decision.

Mark Dryer is president of MDL Technology, a full-service IT company that provides comprehensive technology and security solutions for businesses.

1916 Clay Street N. Kansas City, MO 64116 816-421-0298 • www.proprintdigital.com

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39

BIGGER | sales S M A R T

( by Deb Calvert )

S T R AT E G I E S

a question to make a conditional commitment. Then the seller proceeds to deliver on the condition he or she set up for the buyer with an expectation the buyer will proceed.

In certain situations—when the sale is nearing the close or when the buyer raises a sales objection—“If I could” can be an effective tactic. But sellers should avoid slipping into this technique earlier in the sales process when their intent is to understand buyer needs. “If I could” questions do not reveal needs. They only reveal buyer responses to if-then scenarios.

Plus, there is a risk a buyer will feel manipulated at any stage of the sales process where this technique is used. It feels like a trap and may cause buyers to put up their defenses.

Sellers may wish to use a straightforward statement in these situations rather than setting up an if-then condition.

Examples of “If I could” questions include: » If I could save you time, you’d be interested, right? » What if I could show you how to get out of that contract? » If I could match the price, would you buy from me?

Why ‘If I Could’ Questions Are So Dangerous These kinds of sales techniques back your buyer into a corner.

J

ust don’t do it. Don’t ask questions that seem manipulative or “sales-y,” including the classic “If I could …”

Sellers often lapse into these kinds of questions when they forget they’re supposed to be focusing on the buyers’ needs.

It is apparent with those questions that the seller has become self-focused. Buyers describe these questions as low value, time-wasting, off-putting and offensive.

40 THINKING BIGGER BUSINESS // November 2016

To differentiate yourself from those kinds of sellers, don’t ask questions that buyers will perceive in those negative ways.

We’ll tackle one of the most cringeworthy—“If I could”—because so many sellers ask it so often.

Why ‘If I Could’ Is a Bad Idea This commonly used technique is an obvious setup. The seller asks the buyer

A Better Alternative A straightforward statement might serve the seller better. Rather than asking a hypothetical “If I could” question, a seller can choose a statement like “I believe I can match that price and eliminate your concern about moving forward.” This conveys the seller’s intention and more efficiently moves the sale forward.

An assumptive statement like this is, in essence, what the seller who asks an “If I could” question is telling the buyer. The subtle difference is there is no pretense of a condition and no perceived attempt to back the buyer into a corner.

One buyer said it this way: “If you can, just say so.”

Deb Calvert is the author of the bestseller “DISCOVER Questions® Get You Connected,” president of People First Productivity Solutions and a UC-Berkeley instructor on sales development principles. deb.calvert@peoplefirstps.com // www.peoplefirstps.com

BIGGER | marketing S M A R T

( by James Hart )

S T R AT E G I E S

Why Are You Really in Business?

Jeff Stottle of Foo’s Fabulous Café shares advice from their rebranding.

E

verybody knows and loves Foo’s Fabulous Frozen Custard for its cool, creamy treats.

And that’s an unusual problem for Jeff Stottle, who owns and operates the Foo’s store at 9421 Mission Road in Leawood. His team has earned a reputation for exceptional custard, but they serve up a menu that also includes soups, sandwiches, pastries and more.

Unfortunately, not everybody knows that. Unless you already visit Foo’s, you might miss everything else they do.

So starting this month, just in time for its 10th anniversary, Stottle’s shop will be known as Foo’s Fabulous Café. The name change is part of a larger rebranding effort, one that will hopefully open Foo’s up to even more customers.

What’s in a Name?

There are two Foo’s stores in Kansas City. The original, located in Brookside,

is owned by Betty Bremser. (Going forward, the original Foo’s will still be known as Foo’s Fabulous Frozen Custard.)

Years back, Bremser created a company to franchise Foo’s. When Stottle approached her about becoming a franchisee, not only did he open up the Leawood store, he also became a part owner of the franchisor, too.

His shop was designed to serve as a prototype for future Foo’s franchisees.

Bremser and Stottle carried over the elements that make the original Foo’s so successful, including its fun, eclectic, family-friendly vibe.

To capture more business, the Leawood Foo’s started opening at 7 a.m. most days.

The store sells chocolates, pastries and coffee from iconic local favorites like Le Monde Bakery, The Roasterie, Christopher Elbow and Oddly Correct. Over the lunch hour, you can order sandwiches, wraps or soup.

“I guess we just thought customers would come in and pick up that we do a lot more than frozen custard,” Stottle said.

Changing the name to “Café” signals that Foo’s has a wider menu. It also conveys the shop’s reputation for being a neighborhood hangout, a place where study groups, soccer teams and PTA leaders can get together. Its new tagline says that Foo’s is a place to “Plan, Enjoy and Celebrate Life.”

“They’ve taken ownership of the shop,” Stottle said. “It’s a really fun thing to watch.”

Why Over What Stottle had been thinking about the rebrand since late last year and made it part of his official plan for 2016.

To prepare, he attended a branding workshop at the Enterprise Center in Johnson County. Grant Gooding of Proof Positioning led the session and asked questions that forced Stottle to focus on why customers choose Foo’s.

“Grant knew the answer,” Stottle said.

“But he challenged me to stretch my brain and figure out the answer on my own.”

Stottle also hired Westwork Content + Design to rework Foo’s logo, website, signage and other design elements. That includes product shots of the shop’s food, which will be displayed on a new digital menu board.

Stottle has advice for other business owners thinking about a rebranding.

First, you’ll need to marshal your resources so you can do it right. “It’s not going to be inexpensive,” he said.

It’s also wise to seek opinions from a range of people—experts, customers, other business owners—and listen without responding. Keep an open mind about what they tell you, Stottle said.

And finally, try to focus less on what you do and more on why you’re actually in business, why people come to your space.

Customers love Foo’s custard, and custard is core to the company, but people enjoy coming into the store because it’s a fun, family-friendly place to be.

“They’re here more for the why than the what,” Stottle said.

SMART COMPANIES THINKING BIGGER®

41

SCALEUP! KC

Changing How the World Buys Coffee REVOCUP’S HABTE MESFIN WANTS TO HELP FARMERS BY CUTTING OUT THE MIDDLEMEN. hen Habte Mesfin launched Revocup Coffee Roasters in 2008, he set out to change the world one cup of coffee at a time.

The native Ethiopian donates $1 from every pound he roasts and 10 cents from every cup he sells at his two popular coffee shops, Revocup and Revocup South in Overland Park. By 2017, the money will have paid for 38 libraries in Ethiopia, where many coffee

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42 THINKING BIGGER BUSINESS // November 2016

farmers live in poverty and go without clean water.

Mesfin often stops customers in their tracks when he explains that farmers make pitiful profits—if any—from their beans. A chain of outdated trading practices gobbles up much of their share.

Mesfin’s latest venture, Full Circle Coffee Trading, aims to revolutionize the

way coffee beans are bought and sold on the global market. It’s an online marketplace that will allow farmers to connect directly to buyers. Mesfin will ensure bean quality and make a small commission from the transactions.

As he prepared to launch Full Circle, Mesfin set aside time to attend ScaleUP! Kansas City, a program offered by the University of Missouri-

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easy for him to give up time at Revocup, but the ScaleUP! experts convinced him it’s the best way to succeed.

“Revocup is a small operation, and I wear many hats, but I have to find the time. I know the trading side of it is going to be huge,” he said.

ScaleUP! also connected Mesfin with a range of free or low-cost resources that will help him grow his businesses, including assistance from the federal departments of Commerce and State and a range of databases that can be used for market research.

He had done market research in the past, but these databases (and the trained staff at UMKC and local libraries) will allow him to understand Revocup’s customers in greater detail. “This really helps us expand our scope,” Mesfin said.

ScaleUP! also introduced him to two potential business partners. One is a major restaurant franchise, and the other is a nonprofit with an international presence.

‘I HAVE TO MAKE IT WORK’

Kansas City Innovation Center and the U.S. Small Business Administration.

The program helps entrepreneurs adopt best business practices and prepare for bigger growth—a perfect resource for Mesfin as he unveils his new venture.

“We benefited a great deal, obviously,” Mesfin said. “We learned a lot … and now you know, it’s just putting those things into practice.

HOW SCALEUP! HELPED

Before a business owner proceeds with an expansion effort, it’s wise to make sure the current business is running as smoothly as possible. For Mesfin to give Full Circle the attention it needs, he needs to make sure Revocup is in good hands.

On the advice of ScaleUP! consultants, Mesfin plans to hire a manager to take over his day-to-day duties at Revocup. It isn’t

Ensuring the success of Revocup and the marketplace isn’t simply about being personally successful for Mesfin. It’s about fair trade and sustainability for coffee farmers.

“This is my life mission, and I have to make it work,” Mesfin said.

The current coffee trade, Mesfin said, is a jumble of middlemen. In Ethiopia, small coffee bean farmers sell their crop to a local collector. That entrepreneur then sells it to a larger regional buyer, who sells to a processer. The beans go to a national auction, and exporters buy them.

Then importers buy the beans and sell to coffee roasters.

Eventually, a consumer purchases them.

Farmers often don’t know what price their product ultimately commands.

“This is a very long chain.

It needs to be reduced,” Mesfin said.

“Everybody defends their position. Only the farmers cannot defend.”

Full Circle will short-circuit the current way of doing things by letting farmers skip many of the middlemen. (After farmers list their coffee, they will send Mesfin five pounds of coffee so he can check quality.)

“There are nearly 20 billion pounds of coffee produced every year,” he said. “Can you imagine even saving a dollar per pound?”

‘READY TO TAKE A CHANCE’

The advisers at ScaleUP! have reminded Mesfin to focus more on social media and branding as he moves forward with Full Circle. Because of his commitment to fair trade, he can’t really compete on price like the coffee you buy in the grocery store.

ScaleUP! also encouraged him to organize Full Circle Trading as a separate legal entity to protect him legally and provide a sound long-term strategy. The approach is something Mesfin plans to consider as he brings on investors.

That prep work is essential because Mesfin won’t make many friends when he launches his marketplace. The middlemen may feel threatened by Full Circle.

“Now everybody is going to see the origin price, and that is going to create a huge uproar from the importer and the brokers,” Mesfin said. “This is a very disruptive approach. The farmers are ready to take a chance. They don’t have anything to lose.”

Dawn Bormann is a freelance writer based in the Kansas City area.

ENTREPRENEUR

Habte Mesfin COMPANY

Revocup 11030 Quivira Road Overland Park, KS (913) 663-3695

Revocup South 11822 W. 135th St. Overland Park, KS (913) 283-9232

ARE YOU READY TO SCALE UP?

ScaleUP! Kansas City is taking applications for its next cohort now through Dec. 2.

ScaleUP! is open to entrepreneurs whose companies …

» Have been in business at least two years » Generate $150,000 to $500,000 in annual revenue

» Are in markets capable of supporting $1 million or more in sales To apply, visit www.scaleupkc.com.

SMART COMPANIES THINKING BIGGER®

43

BUILDING KANSAS CITY

Transportation & Logistics

2016

WHAT DRIVES KC’S TRANSPORTATION AND LOGISTICS INDUSTRY?

Great at Freight hen it comes to Kansas City’s transportation and logistics sector, geography truly is destiny. The region’s position on the map gives it a significant competitive edge when it comes to attracting shipping business.

Thanks to Kansas City’s central location, distribution centers based here can reach 85 percent of the U.S. population within

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44 THINKING BIGGER BUSINESS // November 2016

two days, said Chris Gutierrez, the president of KC SmartPort, a nonprofit organization that works to bring freight-based businesses to the area.

The metro area is the country’s largest rail center by tonnage. Five of the nation’s seven Class I railroads serve Kansas City.

The region leads the country in highway lane miles per capita and sits at the inter-

section of more interstates than many other cities do, Gutierrez said.

Business is good most years, but 2016 has been one of the busiest ever for KC SmartPort and its members. Locally, about 9 million square feet of industrial buildings have been built or started in 2016, and that’s just the spec construction, Gutierrez said.

“The amount of spec industrial buildings over the last four or five years is just incredible,” he said.

Meanwhile Amazon is planning to build fulfillment centers in Kansas City, Kansas, and Edgerton, which each will create about 1,000 jobs. (As one industry group pointed out, Edgerton has more

‘THERE’S ALWAYS GOING TO BE A NEED’

jobs than residents thanks to BNSF’s intermodal facility and Logistics Park Kansas City.)

Dozens of auto parts suppliers have opened facilities in the Northland’s Automotive Alley to be closer to the Ford and General Motors plants.

Hunt Midwest Business Center recently put up HMBC Logistics I, a 200,000-squarefoot building at its surface business park near Interstate 435 and Parvin Road. And there are plans to construct two more just like it.

“Right now, demand is pretty consistent with the supply of all these buildings,” Gutierrez said.

While more distribution facilities are going up, several brokers and transportation companies said that competition is particularly fierce in their line of work. Add in a sluggish economy, and many reported just steady conditions over the past year.

“I think the economy is causing a lot of companies like us to pause,” said Matt Weiss, chief operations officer for Parkville’s eShipping, an “all-mode” transportation company that assists small and midsize companies.

But even in slower times, Kansas City’s business holds up. Just look at eShipping.

Its head count grew from 171 in January to about 230 in September. “We’ve actually opened up or acquired businesses to add five offices in the past 18 months,” Weiss said.

The long-term trends look positive: Overall U.S. freight tonnage is expected to grow by 35 percent between 2016 and 2027, according to a recent report by the American Trucking Associations.

Thanks to the U.S. energy sector, pipeline activity will see some of the biggest gains in market share, but shipping by truck will still grow by 27 percent. Less-thantruckload trucking and private carriers will perform better than average.

“There’s always going to be a need to move freight,” said Jerry Isenhower, vice president of Nationwide Transportation & Logistics Services in Shawnee. “So the longevity of this business is going to be here.”

Add all this together, and you can see The family-owned company has more why, in a recent report, commercial real than 20 years of experience in estate firm CBRE ranked Kansas City third-party logistics. “We manas one of the nation’s top 12 inland age each load from the time ports. Another national firm, it’s picked up to the time it’s JLL, included Kansas City on delivered,” he said. its list of the top 18 distribuIn a typical year, Nationtion markets. wide has seen the tonnage it “Rail connectivity helps handles increase by a rate of put Kansas City higher on our Ma tt Weiss 15 to 20 percent, Isenhower said. list,” the JLL report read. “While He’s confident about the future, it may not have the drive-time despite a slower 2016.

“Everything’s population or labor analytics of other cyclical,” he said. markets, it still proves to be the link of cross-border rail activity to Mexico and of continued on page 46 » interchanges with Canada.”

SMART COMPANIES THINKING BIGGER®

45

BUILDING KANSAS CITY

Transportation & Logistics

2016

A presence in the Central time zone is an advantage for Kansas City’s transportation companies, Bolan said. It’s less of a burden for workers here to stay in contact with clients on either coast, while a West Coast provider would have to deal with a threehour time difference for East Coast clients.

The local culture doesn’t hurt either.

“Our salespeople are great because Midwestern people tend to be pretty friendly,” Bolan said.

‘WE’RE A FREIGHT MARKET’

‘WE MOVE FREIGHT OF ALL KINDS’

While transportation and logistics are big industries, they’ve also made space for smaller companies to thrive.

Karen Duff is the CEO of International Express Trucking Inc. (IXT), which was recently recognized as a Woman-Owned Business of the Year by the Kansas Commerce Department. The firm has about two decades of experience, serving major brands like Harley-Davidson, Nebraska Furniture Mart, Brookstone, Hallmark and Bushnell.

“We move freight of all kinds,” Duff said.

IXT works with scores of drivers, all of them owner- operators. They own their own equipment, but work only for IXT. IXT also operates a chassis pool, maintaining and repairing the frames that can be used to haul shipping containers to or from intermodal facilities.

46 THINKING THINKING BIGGER BIGGER BUSINESS BUSINESS // // November June 2016 2016 46

What does Kansas City need to do to keep its transportation and logistics sector thriving?

According to Gutierrez, we’ll have to address a problem that’s challenging cities and industries across the country: a need for more workers. Fortunately, the industry is already increasing its recruitment efforts and emphasizing the opportunity it offers.

“Supply-chain jobs are career jobs,” Gutierrez said. “It is not what your parents or your grandparents thought of for manufacturing and distribution.”

The nation is suffering from a driver shortage, too, Duff said. IXT has been able to recruit great help by offering a leaseto-own program that helps drivers acquire their own trucks.

“We keep them happy, and then we don’t have a shortage,” she said.

“KC has a great future for intermodal Accessibility is another workforce transportation,” Duff said. “The new high concern. Many of the region’s distribution technology rail ramp in Edgerton has facilities are located in the outer brought new distribution centers suburbs, Gutierrez said. Their such as Amazon and Kubota, jobs could be out of reach for and I’m sure more are to come people who don’t have cars or as KC is centrally located for don’t have easy connections distribution around the U.S.” to public transportation.

If you’re a company that But Gutierrez is confident wants to operate only one Ch we’ll find a solution. He has z distribution facility, Kansas ris G ierre ut been with KC SmartPort for City just makes sense, said Ben 13 years, and one thing that he Bolan, co-founder and sales direcappreciates about Kansas City is how tor at logistics provider the community has owned its role as a shipSmartWay Transportation. ping and logistics hub—and has invested in In each of the past three years, Smartthat field.

Way has experienced revenue growth over “We’re a freight market,” Gutierrez said.

50 percent. Its team has expanded to “There’s a willingness and an aggressive30 people, with another 20 hires expected ness to go after those kinds of deals.” over the next year.

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INTERNATIONAL EXPRESS TRUCKING, INC.

Customer Focus Drives IXT Growth ince its launch in 1993 as a certified womanowned trucking company that provides international drayage services, International Express Trucking (IXT) has experienced double-digit growth year over year. Founder Karen Duff puts customer satisfaction at the top of the list when discussing the company’s key to that success.

S

KAREN DUFF | President & CEO International Express Trucking, Inc. 3359 Brinkerhoff Road Kansas City, KS 66115 913-621-1525 ixtkc.com

Not one to simply talk about doing something, Duff’s goal has been to demonstrate the company’s commitment to and care for customers. IXT does that through attention to detail and by providing quality, dependable service tailored for each client. The effort has produced a 99.5 percent customer retention rate.

“Above all, we remember that our own growth depends on that of our customers ... if we can help you grow through better services and rates, we will also grow,” Duff said.

“We aren’t satisfied until our customers are satisfied.”

SERVICES Located in the Fairfax District in Kansas City, Kan., IXT provides intermodal drayage services throughout the Midwest. Their specialty is transporting international goods over a short distance that is part of a longer transport. One way to think of it is in the relay race of getting the product from the manufacturer to the customer, IXT handles one leg of the race–from the rail to the customer.

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Among the services that IXT provides are:

Keep up with what's happening in

> Pick-up and Delivery

> Truck Brokerage Services

the KC small business community

> Container Drayage

> Driver Lease-to-Own Program

by connecting with us on Twitter,

> Customer Service

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Facebook and LinkedIn.

> MWCP Chassis Pool Depot

> Full Diesel Maintenance and Repair (M&R)

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other entrepreneurs, thought leaders

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Parking, Container, Chassis and Trailer Storage > Additional Special Projects as Requested

The company is fully insured and has won numerous road and workplace safety awards. Duff noted that technology has also played a key role in the growth of IXT. The company uses a web-based customer portal to ensure shipment visibility and transparency around the clock.

and small business supporters.

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Abiding by these core values has not only resulted in increased revenues and high customer retention, it has earned IXT a long list of industry and business awards, including the Kansas Department of Commerce’s 2015 and 2016 Kansas Minority Enterprise Development Business of the Year and several safety awards.

SMART COMPANIES THINKING BIGGER® SPONSORED CONTENT

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SPONSORED CONTENT

BIG VOICES

Napkin Stories AT EQUITY BANK, WE KNOW THAT MANY BUSINESS ORIGIN STORIES START WITH SCRIBBLES—AND WE HELP ENTREPRENEURS TURN THEM INTO SUCCESSFUL BUSINESSES.

WARRENSBURG COLLISION Casey Lund, entrepreneur and manager of Warrensburg Collision in Warrensburg, Mo., believes to be a successful company, preparation is crucial to execution. “Our company mantra is ‘slow down in order to speed up.’” This starts with the estimate, through parts ordering, and using communication and collaboration to ensure the company’s spirit is aligned around the customer. “Lots of eyes are better than one. Lots of minds are better than one.”

very business has an origin story. Many start as just inspired scribbles on a napkin. Like most entrepreneurs, we love a good business story about a dream, a vision and the tools and determination to make it real. Equity Bank was created and built by the leadership in place today, so we know a thing or two about starting up, growing and surviving and thriving in the face of challenges.

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Here are a few of the Napkin Stories we’d like to share.

Mark Parman, Kansas City Market President of Equity Bank, invites you to contact the bank and share your Napkin Story.

“We not only want to hear your origin story, we want to partner with you to help you continue to write the rest of your story,” he said.

M

Equity Bank is proud to work with the Rowe family to help Speedy’s continue to grow.

RITE PACK Fred Schneider, visionary entrepreneur and CEO of RitePack, knows that a successful entrepreneur begins with solving a problem for a customer. “Our ability to help our customers with product development and marketing strategy, logistics, warehousing, trucking—all these things are problems for our customers that we solve on a daily basis. As long as the company’s growing, we can continue.”

RitePack COO Cory Shue notes that working with the growth-minded professionals at Equity Bank has been vital to the company’s growth: “When you have a company that’s grown rapidly like ours, it’s good to have a bank that can grow along with it.”

Work with the growth-minded professionals at Equity Bank to take your idea to the next level. And take some advice from Casey: “As a healer, it’s not about me. I’m here to lead, and bring everyone together, so they can collaborate, and communicate. My job is to teach and train them to help us win.”

SHARE YOUR NAPKIN STORY

SPEEDY’S CONVENIENCE John Rowe, CEO of Speedy’s Convenience in St. Joseph, Mo., has worked with his family to build Speedy’s from one location to 10 stores. John says, “We’re small enough to be in each of our stores every day. And we’re also large enough to stay on top of the main trends inside the industry.”

Speedy’s Convenience has been a family-owned and -operated business for 3 generations. “Ever since I could walk, I’ve been in a convenience store, bagging ice and bagging popcorn,” said Margaret Bruce of Speedy’s. “Now I get to help build a future for Speedy’s.” Margaret’s “A-Ha” moment was envisioning and helping build the newest Speedy’s in Kansas City, Kan.

And Equity Bank is part of that team, offering extra eyes and minds.

Casey says: “Banking is still all about relationships. That’s why we choose to bank local, with a bank who can rally behind us. We’ve found that in Equity Bank.”

n ar k Parma

Equity Bank is a full-service community bank with offices in Kansas and Missouri. CEO Brad Elliott has grown the bank from its roots in Andover, Kan. The bank offers a full range of financial solutions, including commercial loans, consumer banking, mortgage loans, and treasury management services.

Our group of bankers is experienced with small businesses and what they need—and how those needs differ. We take the time to listen to your story and help you design the best personalized products and services that will benefit you and your business.

For more napkin stories, visit equitybank.com/napkin-stories.

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

Contact us at 888-733-5041, visit the website at www.equitybank.com, or stop by one of our Kansas City metro locations.

48 THINKING BIGGER BUSINESS // November 2016 SPONSORED CONTENT

BIG | shots

GRID The Overland Park Chamber of Commerce hosted a ribbon-cutting for GRID Collaborative Workspaces, a new coworking operation. (photo courtesy of the OP Chamber)

Brew :30 Mike Hayes of ProPrint Digital, Charley Vogt and Randy Johnson of Country Club Bank, and Doug Coleman of Hunt Midwest were among the attendees at last month’s Brew :30 at Cinder Block Brewery.

MECA Challenge Students listened as Christine Taylor-Butler, local children’s author and mentor for the Oct. 7 MECA Challenge at Rockhurst University, brainstormed with her team about the entrepreneurship challenge. (photo courtesy of Rockhurst)

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49

BIG | talk

» The BIG thinkers behind the BIG ideas. »

Mitch Russo In 1985, Mitch Russo co-founded Timeslips Corp., which became the largest time-tracking software company in the world. In 1994, Timeslips Corp was sold to Sage. While at Sage, Mitch was COO of Sage U.S. Later, Mitch joined Chet Holmes as president of Chet Holmes International.

Soon after Mitch, Chet and Tony Robbins created Business Breakthroughs International, a company serving thousands of businesses a year with coaching, consulting and training services. Mitch was the president and CEO for four years. Now, Mitch helps CEOs build “invisible organizations” using the principles in his book “The Invisible Organization.”

CEO Coach and Best-Selling Author KELLY » What is an invisible organization and its benefits?

MITCH » Let’s talk about Sam. Sam was the CEO of a small, but growing company. He sold products, like training programs and live events, to people who wanted to learn how to grow their companies. At first, he did pretty well, and the money started to roll in. But over time, Sam hired a bunch of people, and it added a lot of expenses. His profits were dropping because of what he was spending. Sam found the section in my book about how he could get rid of overhead and expenses, yet still make the money he needed. He did this just by doing one thing—by going invisible.

He sent his staff to work at home and no longer needed the real estate or the expenses connected with it.

The funny thing is, his staff worked harder and was much happier. They spent less money to go to work, which means they actually got a raise. So it was a total win-win.

The reality is actually the opposite. There was a Stanford University study titled “Does Working From Home Work?” that shows there was a 13 percent increase in productivity directly attributed to sending people home to work. And my experience is it’s actually higher.

Here’s another interesting statistic. The attrition rate drops, plummets like a stone, when people work from home.

Sick days go away. People don’t take time off when they’re sick because there’s no reason to.

KELLY » What are some of the CEO

mind-set shifts required to become an invisible organization?

MITCH » It’s not about what the CEO does, but how the CEO thinks. That’s the difference. So here’s an example. Some CEOs think that if they move employees out of the office, they won’t have control over staff, and employees won’t work as hard.

KELLY » Does becoming an invisible organization work for every company?

MITCH »

Well, let’s be realistic.

You can’t run a virtual dentist office. It’s just not practical.

You’re going to have cooks in kitchens, you’re going to have dentists, you’re going to have teachers. But it’s hard to imagine

50 THINKING BIGGER BUSINESS // November 2016

a company that can’t benefit from at least sending some of the folks that are occupying space every day, sending them home to work for you.

KELLY » In an invisible organization,

how are employees’ relationships with each other affected? Sometimes the teamwork and rapport they have with each other and the ability to share knowledge very quickly is what leads to productivity, too. How do you address that in a virtual situation?

MITCH »

In a virtual situation, it can actually be done faster and more efficiently than in a live situation. Today, we have tools like Google Hangouts and Slack that make communication easy and seamless. So, in a sense, we’re more together than we ever could be in a live situation.

I answer emails at 11 p.m. and nobody gives that a second thought. Our work is integrated

more into our lives in a virtual organization. Once a company goes invisible, the productivity goes through the roof because we have the freedom to communicate and operate when it best suits the company and us.

KELLY » Your website—theinvisibleorganization.com—contains a resource section, and you provide links to a lot of different tools and software that make it easier for the CEO, the business owner and the teams to work productively and to engage with each other in a virtual or invisible organization.

MITCH » When you buy the book, just type in your invoice number, and you get free unlimited lifetime access to the resource center.

To listen to the full interview, scan the QR code or visit theRadio Archives of www.iThinkBigger.com

WED., NOV. 30, 2016 Sheraton Overland Park Hotel 6100 College Blvd.

Overland Park, KS

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