Thinking Bigger Business—October 2016

VOL. 25 // ISSUE 10 // OCTOBER 2016

WORLD OF FUNDS

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SB2B10815

CONTENTS

OCTOB ER 2016 VOL. 25 // ISSUE 10

D E PA R T M E N T S

07 08 10 11 14 14 16 57 58

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 Creative Candles

Oprah and Ralph Lauren both love this KC company.

21

KC FUTURES KC’s Smart City Hopes

Plans for Prospect Avenue.

52

BUILDING KC Prescription for Better Care

Small business delivers new solutions for health care.

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

41

ENTREPRENEURIAL JOURNEY Defeating Your Worst Enemy

Advice from EyeVerify’s Toby Rush.

42

BIGGER | growth

36 CLEAR THINKING

Brenda Zaragoza, brand ambassador at MindLift, jots down ideas during a meeting. One of the firm’s specialties is omnichannel customer experience, using technology to make clients’ customers happier.

KC ENTREPRENEUR

Awaken the Giant on Your Advisory Board

How Creative Planning recruited Tony Robbins.

44

BIGGER | hr Combining Teams

Lead your people through a merger.

46

BIGGER | sales Hunting Fortune 500 Clients

The key? Be very, very patient.

48

BIGGER | marketing 2 New Shifts in Mobile

Make the most of Google’s latest changes.

4

THINKING BIGGER BUSINESS // October 2016

ON T COV HE ER

MindLift’s SOLUTION The up-and-coming consulting company solves business problems for some of the world’s biggest corporations.

C O M PA N Y T O WAT C H

F E AT U R E

SCALEUP! KC

19 The Not-So-Sweet Smell of Success

22 New Wave of Investment

50 Mackech Jewelry

StinkBOSS zaps the stench of sneakers.

Several new funds want to put money into KC’s emerging companies.

Georgina Herrera talks about her company’s skyrocketing growth.

SMART COMPANIES THINKING BIGGER®

5

CONTENTS

O CTO B ER 2016

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Kelly Scanlon Publisher

S M A R T C O M PA N I E S R A D I O

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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.

Megan Scanlon Operations and Events Manager EDITORIAL

James Hart Managing Editor SALES + MARKETING

Mary McKenna Business Development PRODUCTION & GRAPHICS

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

ON THE WEB // ITHINKBIGGER.COM

RADIO

BUSINESS CALENDAR // Find out about hundreds of business events, networking

opportunities, classes and workshops.

Mary McKenna Executive Producer GUEST WRITERS

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

Ruth Baum Bigus, Dawn Bormann, Toby Rush, Cat Vaughn 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 FOR ARTICLE REPRINTS

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

Aspire for More Chris Steinlage What the Survey Says

6

THINKING BIGGER BUSINESS // October 2016

WhiteSpace Revenue Zone Elizabeth Usovicz Power Your Business With This Door-Opening Question

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

Telling Kansas City’s Small Business Story

T

his month we celebrate 25 years

Every business has a story to tell. But one

of telling the stories of Kansas

of the things that’s changed over the last

City’s small businesses. This

25 years is that everyone can help tell it.

issue of the magazine includes a separate

Technology has made that possible.

piece that features some highlights of those

Today, all of us play a role in the storytelling—

25 years, as well as stories about and messages

from traditional and online media, to resource providers

from other local businesses that are celebrating

who produce monthly newsletters, to corporations

milestone anniversaries.

Thinking Bigger Business Media (previously Kansas City Small Business Monthly) was incorporated in Fall 1991.

The first issue published in February 1992.

who publicly acknowledge the successes of their small business vendors. And each of you who attend business events also plays a role, as you post to social media and share the stories as they unfold in real time.

The common thread through our history has been you and your stories. We tell them so that businesses can learn from each other, so that we can bring visibility to the great

We are proud to continue telling those stories, so tell us your story—any part of it. We want to hear from you. And

things Kansas City small businesses are accomplishing,

look for some fun new ways we’re introducing on social

and to shine a spotlight on Kansas City itself and the won-

media to tell your story.

derful opportunities it affords small businesses.

More to come …

Ke lly S can lon

// Publisher // kscanlon@iThinkBigger.com

SMART COMPANIES THINKING BIGGER®

7

BIZ BITS

New Pitch Competition for Women-Led Firms Fueling the Growth is a new pitch contest that will award $120,000 in grants to women-led, tech-based companies in Kansas City and a handful of other cities. But early-round presenters won’t be standing on a stage.

They’ll deliver their presentation during an Uber ride. (Uber is a sponsor, along with the Kauffman Foundation and The Refinery business accelerator.) The deadline for applying is Oct. 20, with local presentations on Oct. 26.

Semifinalists and finalists will compete at

a live event on Nov. 16 in Stamford, Conn.

Visit www.therefineryct.com/fuelingthegrowth/uberpitch/ for details.

Independent Business has filed a separate lawsuit against the rule change. It’s also petitioning the federal government to delay the rule’s implementation date to next June.

Legal Challenge to Overtime Change

Make48 Set to Appear on TV

Attorneys general for Kansas and 20 other states have filed suit over a change in overtime rules that’s scheduled to take effect on Dec. 1. Employees will become eligible for overtime if they make less than $47,476 per year, even if their job duties would otherwise make them exempt. (The previous threshold was $23,660.) The National Federation of

Let’s Talk.

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

Keeping subcontractors in-line, ontime, every time?

SBA Seeks National Small Business Week Noms

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

8

THINKING BIGGER BUSINESS // October 2016

$100K Grant for Bunker Labs KC Bunker Labs Kansas City, a business incubator serving military veterans, has secured a $100,000 grant from JPMorgan Chase. The money will support Bunker Labs’ programming and training here. It’s part of a larger national partnership between JPMorgan Chase and Bunker organizations in other cities.

Thinking Bigger?

816.753.2166 Commenco.com/ThinkingBig

Make48, the Kansas City-based invention competition, has signed a deal that will turn the contest into a TV show, one that could be broadcast on public TV stations across the country. Video crews will be recording during Make48’s Oct. 28-30 event at the Kansas City Art Institute. Organizers say the show should air about six months from now.

Radio Solutions Channel Partner

Nominations are now open for the U.S. Small Business Administration’s National Small Business Week Awards. Winners will be selected at both the state and national level in several categories, and honorees will be announced next spring.

The nomination deadline is 2 p.m. Jan. 10.

For more information, visit www.sba.gov/ nsbw/awards or call Barbara Caldwell at (816) 426-4902.

WE THINK SMART BANKING STARTS WITH SMART LISTENING. At Bank of the West, we specialize in truly getting to know you and your business–beyond what’s on the balance sheet. We listen closely, then partner with you to craft the kinds of smart, personalized banking solutions that help bring your plans to life. And we back them with special, limited-time1 offers like: • Owner-Occupied Commercial Real Estate Loans with a 10-year fixed term and 30-year amortization2 on loans of up to $2.5 million, giving you lower monthly payments to free up cash for other uses • Up to $3,000 in closing cost savings3, 4 for owner-occupied commercial real estate loans up to $2.5 million or up to $10,000 savings for SBA 5 loans up to $15 million3, 6 • Prime +0.0% on a Secured Business Line of Credit7 Bank of the West is here in your community, with local business banking expertise that’s more personal. Let’s start a conversation.

Larry Walsh 816-347-7113 Bob Bendon 816-347-7159 For more special offers, visit: bankofthewest.com/businessoffers

Offers valid for applications received and completed between September 10, 2016 through October 28, 2016. Loans and lines are subject to credit approval and for business purposes only.

Conditions, fees and restrictions may apply. Offers available for new Bank of the West loans and lines of credit. Offers require automatic payments from a Bank of the West Business Checking account. Rates and terms are subject to change at any time without prior notice.

2 Offer not available for special purpose, residential or agricultural properties.

3 The closing costs credit will be applied on the settlement statement as credit towards third-party fees such as appraisal, title policy and environmental fees incurred during the loan process.

If the actual third-party costs incurred are less than the advertised credit amount, no additional credit will be given. The fee credit cannot be combined with other loan offers.

4 A credit up to $1,000 will be applied for loans between $150,000 and $500,000. A credit up to $2,000 will be applied for loans between $500,001 and $1,000,000. A credit up to $3,000 will be applied for loans between $1,000,001 and $2,500,000.

5 SBA loans from Bank of the West are in participation with the US Small Business Administration. Loans are subject to approval in accordance with both Bank of the West and SBA eligibility and lending guidelines.

6 A good faith deposit will be required upon accepting Bank of the West approval. If applicant withdraws the loan request after issuance and acceptance of Bank of the West’s Commitment Letter, all third-party costs incurred must be paid by the borrower. A credit up to $3,000 will be applied for SBA loans between $150,001 and $1,000,000. A credit up to $5,000 will be applied for SBA loans between $1,000,001 and $5,000,000. A credit up to $10,000 will be applied for SBA loans between $5,000,001 and $15,000,000.

7 Bank of the West Prime is 3.50% as of August 10, 2016. The rate is for select Business Lines of Credit greater than $26,000 and up to $750,000. After 12 months a minimum rate of 4% applies.

Member FDIC. Equal Housing Lender. ©2016 Bank of the West.

1

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

SBA Loans for Reshoring?

FEDERAL Helping Small Ventures Raise Capital The U.S. House has passed the Accelerating Access to Capital Act (H.R. 2357), a measure that could make it easier for small firms to raise capital. If approved by the Senate, the act would create an exemption for offerings of $500,000 or less involving up to 35 investors, if those investors already have a substantive relationship with the business. It also would protect companies from new rules the SEC has proposed for Regulation D offerings.

The Bring the Jobs Home Loan Act, a recently introduced piece of legislation, would task the U.S. Small Business Administration with creating a loan program to encourage reshoring of manufacturing. The SBA would have discretion over the program’s exact details, such as how large the loans could be and who could qualify.

MISSOURI Override Fails for E-Verify, Small Business Incentive Missouri legislators failed to override Gov. Jay Nixon’s veto of a bill exempting some companies from E-Verify. State law requires businesses to use E-Verify if they receive tax breaks, government grants or government contracts. The vetoed bill would have let them opt out if compliance

would be too expensive. The failure to override also dooms another part of the bill, an incentive for small businesses: Companies with fewer than 50 employees would have received a $10,000 deduction for each new job they created that paid more than the county average.

No More Sales Tax for Dance Classes Thanks to a veto override, Missouri will now exempt dance and karate lessons, along with other “instructional classes,” from having to charge sales tax. The governor says it will lead to a loss of at least $8 million in state tax revenue.

MO Tax Break for Employee Ownership The legislature resurrected another proposed tax break. Missouri businesses can get an income tax deduction equal to 50 percent of their net capital gain if they switch to employee ownership. It applies in cases where employees own 30 percent or more of a company’s securities. This deduction will go away in 2023.

KANSAS More Delays for KS Pension Fund?

Some Kansas legislators are worried the state won’t be able to make up a $100 million payment to the state pension fund. When the state experienced a budget shortfall last fiscal year, the payment was delayed until no later than 2018, when it would be repaid with interest. Members of the Joint Committee on Pensions and Investments told the Topeka Capital-Journal that Kansas still might not have the money available.

10

THINKING BIGGER BUSINESS // October 2016

K C CA L E N DA R O CTOB E R

07 KCK Chamber First Friday Focus Great Wolf Lodge, 10401 Cabela Drive, Kansas City, Kan. 11:30 a.m.–1 p.m. $25 for members, $30 for nonmembers.

INFORMATION/REGISTRATION »

(913) 371-3070 or gabrielle@kckchamber.com or www.kckchamber.com

13

Brew :30 Sign up today for Thinking Bigger Business Media’s quarterly Happy Hour event. Network with other business owners and enjoy an after-work drink at Cinder Block Brewery, 110 E. 18th St., North Kansas City. 5:30–7:30 p.m. $25.

INFORMATION/REGISTRATION »

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

Olathe Chamber Vine & Dine This fundraiser for the Olathe Chamber Foundation Fund will include wine pairings, live music, auctions and more.

KC Wine Co., 13875 Gardner Road, Olathe.

7–10 p.m. Individual admission costs $80.

INFORMATION/REGISTRATION »

www.olathe.org

08

analysis, SEO research and more. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 2:30–5 p.m. on Oct. 11 and 13. $50.

INFORMATION/REGISTRATION »

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

11

Simple Steps to Starting a Business: Startup Basics

kansascity.score.org

10 Business 101: Legal Considerations in Starting a Business This workshop will cover important legal concepts like limited liability, LLCs and subchapter S corporations. UMKC Entrepreneurial Legal Services Clinic, 4747 Troost Ave., Ste. 213, Kansas City, Mo. 5–6 p.m. Free.

INFORMATION/REGISTRATION »

(816) 235-6341 or elsclinic@umkc.edu

11 + 13 Small Business Marketing Basics This two-day workshop will show you how to market your company using websites, online ads, social media and other digital tools. That includes time in the computer lab for keyword

Building a Social Media Plan for Your Business Courtney Cole will give you advice on generating social content, scheduling your posts and more.

Mid-Continent Public Library-Excelsior Springs Branch, 1460 Kearney Road. 6 p.m. Free.

INFORMATION/REGISTRATION »

Liberty Chamber After Hours Network with other local business leaders. Restoration 1894, 1 E. Kansas St., Liberty. 5–6:30 p.m.

SCORE will host this free workshop for people interested in starting a business. What are the pros and cons? What factors allow a company to succeed? This is the first of a three-part series. SCORE Office, 4747 Troost Ave., Kansas City, Mo. 10 a.m.–Noon. (Checkin starts at 9:45 a.m.) Free.

INFORMATION/REGISTRATION »

17

INFORMATION/REGISTRATION »

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

12 Intermediate QuickBooks If you’ve mastered the basics of QuickBooks, this workshop will take you to the next level.

Even better, you’ll cover topics customized to your business. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 9 a.m.–Noon. $79.

INFORMATION/REGISTRATION »

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

www.mymcpl.org/squareone

18 JCCC Game: C’Crets of Networking Learn how to increase your business through networking. This is part of JCCC’s Growth through Action, Measurement and Engagement (GAME) series. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 7:30–10 a.m. $50 for the class, $99 to register for a package of four GAME classes.

INFORMATION/REGISTRATION »

(913) 469-3878 or www.bit.ly/GAMEAPPLY

Improve Your Company’s Profitability: Understanding Your Financial Statements

Learn how to create a payroll schedule, print payroll tax returns and more. Participants need to have a working knowledge of QuickBooks, as well as the payroll laws and filing dates for their company. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park. 1–3 p.m. $59.

Your financial reports are your guide to analyzing your company’s strengths and weaknesses. And this workshop will show you to truly understand these reports. Kansas Small Business Development Center, JCCC, 12345 College Blvd., Overland Park.

1:30–4:30 p.m. $35.

INFORMATION/REGISTRATION »

INFORMATION/REGISTRATION »

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

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

QuickBooks Payroll

SMART COMPANIES THINKING BIGGER®

11

K C CA L E N DA R OCTO B E R

4747 Troost Ave., Kansas City, Mo. 9 a.m.– Noon. $75, scholarships available.

19 Marketing, Advertising and Branding for Small Business

INFORMATION/REGISTRATION »

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

ECJC’s Foundation Series: Protecting Your Intellectual Property

Marketing expert Bob Martin will give you tips for promoting your company in this workshop from Mid-Continent Public Library and Platte Valley Bank.

Platte Valley Bank-Liberty Branch, 102 S. State Route 291, Liberty. 11:30 a.m. Free.

Learn how you can protect your company’s ideas. Enterprise Center in Johnson County, 4220 Shawnee Mission Parkway, Ste. 350B, Fairway. 10:30 a.m.–Noon. $15 to attend in person, $10 to livestream. www.bit.ly/2b1Nqf2 or (913) 438-2282 or www.ecjc.com

Entrepreneur Storytime with Matt Shatto of Shatto Milk Get the inside story of the family-run dairy and the new Shatto Home Delivery service. MidContinent Public Library-Woodneath Library Center, 8900 N.E. Flintlock Road, Kansas City, Mo. 7 p.m. Free.

INFORMATION/REGISTRATION »

www.mymcpl.org/squareone

INFORMATION/REGISTRATION »

INFORMATION/REGISTRATION »

www.mymcpl.org/squareone

20

21

sign here

The Basics of Writing a Business Plan

The First Steps to Starting a Business Want to start your own company? This workshop will cover the basics of business ownership, planning and more. UMKC SBTDC,

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

22 The Business of Food Trucks Workshop Learn how to create a successful foodtruck operation, including nitty-gritty details like health department regulations, truck build-out and more. Mid-Continent Public Library-Woodneath Library Center,

When you want to hire the BEST,

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“Personnel Services with a Personal Touch” Call Marie, Shelley, Michelle, Ashley or Roses for ALL your staffing needs!

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

THINKING BIGGER BUSINESS // October 2016

Commercial . Industrial Data/Comm Design Build Utility . Prime MO: 909 Troost, KCMO 64106 KS: 3236 N. 7th St, KCKS 66115

816-842-7023 www.markone.com

8900 N.E. Flintlock Road, Kansas City, Mo. 9 a.m.–2 p.m. Free.

INFORMATION/REGISTRATION »

www.mymcpl.org/squareone

Simple Steps to Starting a Business: Business Concept and Marketing Strategy SCORE will show you how to identify target markets, develop a marketing strategy and more. This is the second of a three-part series. SCORE Office, 4747 Troost Ave., Kansas City, Mo. 9 a.m.–3 p.m. (Check-in starts at 8:45 a.m.) Free.

INFORMATION/REGISTRATION »

26 Competing for Government Contracts: Basic Training The Kansas Procurement Technical Assistance Center will show you the basic steps you can take to compete for government contracts at all sign levels. Kansas Small Business here Development Center, JCCC, 12345 College Blvd., Overland Park. 9:30–Noon. Free.

INFORMATION/REGISTRATION »

kansascity.score.org

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

Search Engine Optimization Learn the basics of search engine optimization (SEO) during this interactive seminar. MidContinent Public Library-Raytown Branch, 6131 Raytown Road. 10 a.m. Free.

INFORMATION/REGISTRATION »

www.mymcpl.org/squareone

27 Pitching to Investors Michele Weigand, managing partner of Focused Perspective, will explain exactly what investors want to see before they

put money into your startup. UMKC SBTDC, 4747 Troost Ave., Kansas City, Mo. 5:30– 8 p.m. $35.

INFORMATION/REGISTRATION »

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

29 Simple Steps to Starting a Small Business: Financial Projections and Funding If you’re a new or aspiring entrepreneur, this workshop will help you to understand key financial concepts and develop a plan for funding your company. This is the third of a three-part series. SCORE Office, 4747 Troost Ave., Kansas City, Mo. 9 a.m.– 3 p.m. (Check-in is at 8:45 a.m.) Free.

INFORMATION/REGISTRATION »

kansascity.score.org

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 by

Entrepreneur Storytime: Matt Shatto - Shatto Milk Company Friday, October 21 7:00 p.m. at Woodneath Library Center Building a Social Media Plan for Your Business Marketing, Advertising and Branding for Small Business Hiring and Dealing with Attorneys The Business of Food Trucks Workshop Simple Steps to Starting Your Business with SCORE of Kansas City Business Basics: Doing Business in the Cloud Visit mymcpl.org/squareone for dates of locations of programs at a branch

Access Small Business

near you! Programs are free and open to the public, but require registration.

SMART COMPANIES THINKING BIGGER®

13

BIG | deals

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

20 03

Prenger Wins Central Exchange STEM Award

Jeanette Prenger, CEO of ECCO Select, was named the 2016 Enterprising Innovator at this year’s Central Exchange STEMMy Awards. The event saluted those who have helped advance women in the science, technology, engineering, math and medical fields.

20 09

Promotion and a New Hire at Skyline E3 Skyline E3 announced the promotion of Justin

Dean to vice president of operations. He joined the company in 2006 and had been director of operations since 2012. In other news, Konni Duncan was hired as a project coordinator.

20 02

New Controller at Harmon Construction

David Clark has joined Harmon Construction as its new controller. He’ll oversee financial reporting, accounting, human resources and payroll.

20 16

Dobies Adds New Account Coordinator

Alexandria Fenske is the new account coordinator at Dobies Healthcare Group.

20 13

Ebert Joins EPIC as Event Producer EPIC Innovative Events has hired Melissa Ebert as a

new event producer. She has more than 15 years of experience in planning events and conferences for the legal, health care and pharmaceutical industries.

20 13

Mersoft’s New Move

Mersoft has introduced its new Mersoft move product, which will stream live video from security cameras to set-top TV boxes, tablets and other devices.

3 New Owners at Boyer & Corporon

20 11

Boyer & Corporon Wealth Management has added three

principals to its ownership team: Laura Carley, Eric Clark and Brian Hackleman.

20 09

Momentum Grows for Campus Eye

Mobile Media Technologies—the team behind 25 Under 25® alumnus TextCaster—is earning national attention for Campus Eye. The app helps students and staff at 30 colleges to report crimes.

14

THINKING BIGGER BUSINESS // October 2016

EyeVerify Sells to Chinese Ownership Biometric security company EyeVerify has been purchased by Ant Financial Group, an affiliate of Chinese e-commerce company Alibaba Group Holding. EyeVerify will continue to be based here in Kansas City.

AWARDS/RECOGNITION J.M. Neil Wins Statewide Award J.M. Neil & Associates won the

Missouri Governor’s WomenOwned Small Business of the Year Award at the 2016 Governor’s Conference on Economic Development.

10 Companies Win LaunchKC Grants LaunchKC has announced the winners of this year’s national grant competition. Each will receive $50,000, free office space and other help. The winners are Big Bang, BLITAB, ConsultUS, FEWDM, Forest Devices, LaborChart, Mobility Designed, Mycroft AI, PerfectCube and Super Dispatch.

M&A KC Firms Form National Marketing Agency Two West and the McCormick Company are joining with three out-of-town firms to form Sandbox, a national integrated communications agency. Two West and McCormick, which are both based here, plan to merge offices in the next several months.

NEW BUSINESS Brown & Loe Debuts in River Market Brown & Loe is now open for business at 429 Walnut St. in Kansas City’s River Market neighborhood.

The bistro is the brainchild of Kate McGlaughlin and Harry Murphy, the daughter-father team behind Harry’s Country Club.

ON THE MOVE

KC Startups Win X-PORT Challenge Mobility Designed took first place in the Midwest X-PORT Challenge, winning $25,000 in legal, shipping and research services.

Another Kansas City company, 17°73° Innovation Co., was the runner-up and received $8,000 in services.

Emfluence Heads to Denver Digital marketing firm emfluence has just launched a presence in Denver. The founding member of the branch office is Fritz Stahmer, who will serve as senior digital strategist.

DivvyHQ’s Solution Wins Industry Award DivvyHQ and its content planning tool recently won the Content Marketing Institute’s Audience Choice Award.

The award was presented at CMI’s Content Marketing World convention in Cleveland.

has relocated to 10571 Mission Road in Leawood’s Mission Farms development.

Kincaid Moves to Leawood Kincaid Antiques and Interiors

Underdog Wine Co. to Open Second Store Underdog Wine Co. will add a store in Union Hill. The shop, opening in November, will be in the McGee loft building on Gillham Road near 29th Street.

small. Bigger.

EAG14-041 TBBM Ad v2.indd 3

OTHER NEWS

VideoFizz to Help Fight Breast Cancer With Viral Videos This month, VideoFizz is teaming up with the American Breast Cancer Foundation on a viral video campaign to raise funds and awareness. Users can make free “Cancer Sucks” videos on the startup’s app and donate money to help ABCF and breast-cancer patients.

New CEO at Phone Medic Christine Ricci is the new CEO at Phone Medic, an Overland Park company that oper-

BEST. ates a chain of stores offering smartphone repairs, sales of pre-owned devices and other services.

Major New Client for Balance Innovations Balance Innovations has landed a new client: The United Family, a Texas-based chain of 73 grocery stores in 37 communities.

FDA Approval for New Aratana Product Aratana Therapeutics has won FDA approval for Nocita, a local anesthetic that can be

Branding Design Digital

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

used after dogs exit cranial cruciate ligament surgery.

KC Parks Board Hires Sage Marketing agency Sage is now the agency of record for the Kansas City, Missouri, Board of Parks and Recreation Commissioners. Sage will handle that body’s public relations, marketing and branding.

New Name for OMNI OMNI Employment Management Services is changing its name to OMNI Human Resource Management. The new name better reflects

OMNI’s expanded suite of services.

SPONSORED CONTENT

ENERGY CO. PARTNERS

Why It’s Time to Start Saving Money on Electricity ne area many business owners overlook that could save them thousands of dollars is an energy audit.

Here are four questions to ask about your business electricity bills:

O

JAMES FREESE, CEO JFREESE@ ENERGYCOPARTNERS.COM 816-945-2130

WHY SHOULD I GET AN ENERGY AUDIT OR LIGHTING ANALYSES? In the past, many companies have considered utilities “a cost of doing business.” By running an inefficient building, you are overpaying your utility for energy.

A good building energy audit/lighting analyses point out how to reduce your energy costs by 10 to 40 percent. That could mean the difference between staying afloat and going under.

WHAT ARE THE MAIN BENEFITS FOR SWITCHING TO LEDS? If you’re still using incandescent bulbs, fluorescent tubes, or even CFLs, you’re paying more than you should. LEDs are far more efficient, providing as much light as an incandescent bulb or a CFL with a mere 9 watts on average. If you’re currently relying on outdated incandescent bulbs, you’re paying nearly seven times more than if you used LEDs.

WHERE SHOULD I FOCUS FIRST? Substitute your old lighting with LEDs. But a drastic shift doesn’t always fit the company budget. Consider which lights you use most often, and switch those first. For example, exterior lights that you leave on at night should be your first priority. Transitioning over to LEDs on a bulb-by-bulb basis is an easy way to switch over without worrying about spending too much money up front.

WILL SWITCHING TO LEDS LOWER MY YEARLY MAINTENANCE COSTS? Yes. We’re not saying you’ll absolutely never have to touch your lighting system, and we’re not saying it’s 100 percent maintenance-free.

We are saying that a lot of quality LED products–bulbs and fixtures– are coming to market with warranties of five or even 10 years. That says something about the anticipated longevity of these products. How much would you save if you didn’t have to replace a bulb or fixture for 5 years or longer?

Making the investment in energy efficient lighting may seem like the last way your business can save money, but numbers don’t lie. By changing over to LED or CFL bulbs, you’ll save thousands of dollars for your business. That’s a lot of money you can reinvest into other profitgenerating activities. Evaluate your business’s lighting needs today to see how you can switch and save.

Give us a call at EnergyCo Partners to assist with your audit.

SMART COMPANIES THINKING BIGGER®

15

AT A G L A N C E

RESEARCH + TRENDS | FINANCE

Mobile Payments Gain Momentum Worldwide THE NUMBER OF PEOPLE USING SMARTPHONES TO MAKE IN-STORE PURCHASES HAS “AT LEAST DOUBLED” IN EVERY COUNTRY DELOITTE STUDIED.

47% of people in developing markets have used a mobile phone to make an in-store payment

20% of customers in the U.S. and other developed markets have made a mobile payment

In China, there was a 66% increase in mobile payments for in-store purchases

40% of all users still say mobile payments aren’t secure enough

BY THE NUMBERS

KC Startups Lag on Job Creation

1.7%

2.1%

3%

of KC employment came from startups less than a year old in 2014

the national average

the national average in 2006, before the Great Recession

2.5 million 16

THINKING BIGGER BUSINESS // October 2016

12th KC’s rank for highest increase in the rate of business formation

U.S. jobs created by new businesses in 2014

OTHER FINDINGS

» The human race checks its smartphones more than 80 billion times a day.

» For the average user, that’s 40 check-ins per day.

» About 10 percent of global consumers own a wearable computer, about double from the previous year.

SOURCE // Deloitte Global, “Global Mobile Consumer Trends”

BOOK REPORT

SOMETHING TO CHEW ON

How to Make a Spaceship: A Band of Renegades, an Epic Race, and the Birth of Private Spaceflight

The Rockhill Grille

PENGUIN PRESS

// JULIAN GUTHRIE

If a human being ever sets foot on Mars, don’t be surprised if entrepreneurship made it possible.

Private companies are taking the lead in manned space exploration, and “How to Make a Spaceship” tells the story of visionaries like Peter Diamandis, Burt Rutan, Richard Branson and others who are pushing humanity’s frontiers beyond our orbit.

2000 Grand Blvd.

Kansas City, MO 64108 (816) 389-5800 www.therockhillgrille.com

Lunch or Dinner

Hours: 11 a.m. – 11 p.m.

Monday through Wednesday; 11 a.m. – Midnight Thursday through Saturday; Closed on Sunday

This American-style grill just opened in the heart of the Crossroads Arts District.

(It’s in the former Cashew space on Grand.) Need to meet your client for lunch?

Or maybe just drinks after work? Give the Rockhill Grille a try.

GET IT STARTED

The calamari steak is served with Kalamata olives, parmesan aioli, tomato jam and aged balsamic.

THE MAIN EVENT

The duck confit— served with brussel sprouts, hash browns, lardons and mustard vinaigrette—is available on the lunch and dinner menus. Or try the grilled salmon sandwich, featuring onion marmalade, arugula and caper aioli on ciabatta.

TRY THIS

The Rockhill Grille offers an extensive drink menu. Ask for the Local Water, a cocktail made with J. Rieger & Co. gin, Earl Gray tea, lemon and Fever-Tree Elderflower Tonic.

SOURCE // U.S. CENSUS BUREAU, KCECONOMY.ORG

SMART COMPANIES THINKING BIGGER®

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AT A G L A N C E

MADE TO LAST | KCAC AVIATION

BIG STARTS | BANDHACK

50 Years for KCAC Aviation

BandHack Boosts Independent Musicians

The Olathe company preps for expansion in 2017.

This KC startup gets the good kind of feedback.

KCAC Aviation hits the half-century mark this year, but the Olathe operation is still growing like a young company. Business has doubled over the past decade, and KCAC is preparing for a major expansion next year, said Angelo Fiataruolo, the company’s president and general manager.

Ah, the life of a touring musician! The wild and crazy nights of … tracking your expenses and submitting orders for more band merch? Ugh.

KCAC sells Piper and Pilatus aircraft—in fact, it’s won Dealer of the Year honors from Pilatus for three of the past five years.

MAKING BUSINESS POSSIBLE

But KCAC does more than sales. The company provides maintenance, charter and other fixed-base operator (FBO) services at Johnson County Executive Airport. KCAC staffers even arrange ground transport and hotel reservations for their clientele.

Many of KCAC’s clients are business owners who use private aircraft to visit their customers or field offices. They can zip to Cedar Rapids in the morning, hold a few meetings and return in time for dinner. “I defy you to leave in the morning and get home that night unless you’re using business aviation,” Fiataruolo said.

‘HERE FOR THE LONG HAUL’

KCAC relies on a highly skilled team, both in the air and on the ground, so it’s made a point of holding on to its people.

One employee just retired after 42 years with KCAC, “and that is not untypical,” Fiataruolo said.

“We’re here for the long haul,” he said. “It’s a company that’s very secure.”

18

THINKING BIGGER BUSINESS // October 2016

The music business, like every other line of work, suffers from its share of drudgery, but local startup BandHack aims to simplify things for independent performers.

Founders Justin Belfield, Jason Conley and Jody Hendrix have developed a suite of online solutions:

» MerchHack, which lets performers place orders for T-shirts and other merchandise—with no minimum orders. (That can be a major hurdle for smaller acts.) BandHack has partnered with a local company to fulfill those orders.

By bundling several performers’ orders together, they’re able to access better rates.

» DiscHack—like MerchHack, only for compact discs. » RoadHack, which will connect users with band-friendly mechanics, hotels, pizza joints and other service providers while they’re on the road.

BandHack emerged from Kansas City’s BetaBlox incubator, and it unveiled MerchHack and DiscHack at this spring’s Westport Roots Festival. Most of the early users have been involved in American and roots music. But the startup’s solutions will work for performers of any genre.

And that’s good news for DIY indie artists who don’t enjoy the backing of a record label.

“So far,” Conley said, “we’ve got really good feedback on it.”

C O M PA N Y T O WAT C H

STINKBOSS

The Not-So-Sweet Smell of Success StinkBOSS zaps the stench of sweaty sneakers.

ENTREPRENEUR

Hilary Philgreen COMPANY INFORMATION

StinkBOSS 5200 W. 110th St. Overland Park, KS 66211 www.stinkboss.com TYPE OF BUSINESS

Appliance that deodorizes shoes and other gear YEAR FOUNDED

2015

W

e’ve all been there. You walk in the house, and there it is—that pungent odor wafting from your kids’ athletic shoes. It seems impossible to get rid of the problem, short of throwing out the shoes.

However, now there is a solution to that smelly problem. It’s StinkBOSS, created by Hilary Philgreen.

StinkBOSS is a small box appliance that, once shoes or other gear are placed inside, generates a combination of heat and ozone to rid them of the stink. The time varies for this “odor eater” to do its job—anywhere from 30 minutes to an hour in most cases. If the smell is really potent, it can take up to 6 hours.

Philgreen, the mother of Luke and Lance, who are active in sports and Boy Scouts, came up with the idea a couple years ago.

“My kids stink,” she said with a laugh. “We were in the car a lot, and it smelled so bad that we had to roll the windows down, and I thought, ‘I have got to come up with a solution.’”

Her idea? Using ozone, which is how many hospitals destroy bacteria.

Luckily, she also had a team she could turn to.

Philgreen works full time for Hantover Inc. as its COO. Hantover is a Kansas City-based industrial distribution company with branches across the United States and Canada.

“I came up with the idea of StinkBOSS; I invented the brand,” Philgreen said. “Then I worked with engineers and product development.”

StinkBOSS, which retails for $149, hit the market in a soft launch a year ago.

“We didn’t do a lot of proactive marketing until we got units out there and made sure the consumer really liked it and it worked for them,” she said.

StinkBOSS is now sold online, through Bed Bath & Beyond, Sharper Image, Amazon and other retailers. Philgreen said StinkBOSS has sold out three times so far. “We’re in the thousands sold,” she said. “It seems to be doing well across the country, and we’ve had international interest as well.”

The product has even won some national coverage from the Discovery Channel and TV talk show “The Doctors.”

What’s the greatest challenge Philgreen’s faced since launching StinkBOSS? “People don’t know that such a product exists,” Philgreen said. So she’s had to invest in marketing, especially through events, social media and other advertising avenues. Active families, sports teams and athletes are target audiences.

In the meantime, Philgreen sees a bright future for her creation. She believes it could become a household name. There might be spinoff potential, too.

“We have had a lot of suggestions from consumers about things they would like to put into StinkBOSS and look to create products that address this,” said Philgreen.

Ruth Baum Bigus is a freelance writer based in Kansas City.

SMART COMPANIES THINKING BIGGER®

19

KC MADE IT

( by James Hart )

CREATIVE CANDLES’ ELEGANT PRODUCTS HAVE WON FRIENDS IN HIGH PLACES.

A Brilliant Past— and a Bright Future reative Candles’ products are made right here in Kansas City, but they’ve turned up in some very impressive places: the White House, the Waldorf Astoria, Martha Stewart’s magazine and even Oprah Winfrey’s 50th birthday celebration.

Ralph Lauren is a fan. So is Eddie Ross, a top editor at Better Homes & Gardens. Name a leading Kansas City designer or florist— folks like Dan Meiners, Chadwick Brooks or Michael Nolte—and you’ll find they’re probably a Creative Candles customer.

These clients all turned to the company because it simply produces a higher quality of candle.

Creative Candles makes votives, pillars and other types of candles, but it has won the most acclaim for its long, thin tapers.

Tapers are created by repeatedly handdipping a wick into Creative Candles’ proprietary blend of waxes and other ingredients over the course of six to eight hours.

(The exact mix is a secret—it’s a little like

C

the candle equivalent of the Colonel’s 11 herbs and spices.)

Instead of being formed into a single piece by a mold, the tapers consist of a series of paper-thin layers. The result is one remarkably stable candle. Creative Candles has sold a taper with a 7/8-inch diameter and standing 1 meter tall—about 39 inches high.

Compared to the competition, the company’s candles offer a slower, more even burn with fewer drips and less smoke.

Another thing that sets Creative Candles apart? A broad palette of vibrant colors that are consistent every time. A burgundy candle made today is going to be the same shade of burgundy as one produced last month.

“This is an art and a science, as temperature and humidity play an integral role in the hand-dipping process,” said co-owner Keith Espelien. “Our team in the workshop

is very good at color matching and color management. Our customers mention this consistently as something that is very much recognized and appreciated.”

UNDER NEW OWNERSHIP

Creative Candles, which was founded in 1961, has been under new ownership since June 1. Keith and Shelley Espelien, who had always worked in the corporate world, were looking for a company they could buy and run together. In a way, they’re upholding a Creative Candles tradition: The business was formed by a couple, Duane and Nancy Benton.

Like anyone would, the Espeliens did their due diligence before buying the business. That research included asking customers what they thought of Creative Candles.

“The response was pretty special,” Keith said. “There was 100 percent favorable response.

This was the best candle they’d ever had.”

The Espeliens’ confidence grew even more when they first toured Creative Candles’ workshop and met the artisans who make the candles.

The company employs eight people, not counting Shelley and Keith. The employees view their candle making as a matter of craftsmanship. Half the staff has been with the company 10 years or more.

“They are experts in their field,” Shelley said. “Now they are helping us learn what they know.”

WHAT’S NEXT FOR CREATIVE CANDLES?

Creative Candles’ previous ownership had already put solid systems in place, giving the Espeliens the freedom to focus on growing sales. They’re contracting with sales reps to expand their geographic reach, though don’t think they’re ignoring Kansas City: Creative Candles was recently featured in the floral department at the remodeled Hen House at 119th and Roe in Leawood.

“One of the areas that has been intriguing to me is the business that we do with ‘home curators,’” Keith said. “We just shipped 220 candles for a home in Barbados! We have shipments each week that go different places around the world: Australia, Brazil, all over Europe, etc., in addition to our friends closer to home in Canada and Mexico and across the United States.”

20 THINKING BIGGER BUSINESS // October 2016

KC FUTURES

( by James Hart )

If the Prospect Avenue project becomes a reality, homes within five to six blocks of the route could tap into a free Wi-Fi system. It’s similar to the free Wi-Fi offered along the downtown streetcar line. Only the signal would go farther on Prospect because there wouldn’t be as many massive buildings in the way of the signal, said Bennett, who previously was an operations executive and strategic planner for the U.S. Army.

He’s excited about Smart City technology’s potential to improve city operations.

Just think about what it could mean for water systems, for example.

Right now, most communities repair their pipes on a calendar basis—“It’s been six years since we did Sixth Street, so it’s their turn this year.” But new technology could make it possible for municipalities to find where leaks and breaks are most common and use their resources where they’re needed most, Bennett said. So if Sixth Street is still in good shape, repair crews could target some other section.

INNOVATION PARTNERSHIP PROGRAM

Bennett also oversees Kansas City’s Innovation Partnership Program (IPP). Under IPP, local startups allow city departments to try out their solutions for free for a few months. The city recently selected seven companies for a testing period that will run through February.

Those companies include Big Bang, Integrated Roadways, Pomerol Partners, Reality Technology, SORA, SpiderOak and Stratex Planning.

At a minimum, the IPP startups get The money would pay for a series of the opportunity to see how their product smart kiosks and other technology on performs for a large organization and get Prospect’s high-speed bus route, simfeedback they can use to improve. It ilar to what’s in place along the also doesn’t hurt to have a large downtown streetcar line. municipal government on your The project also could help client roster. the city address one of its If the solution performs toughest problems: a lack of well, the city may sign up as a high-speed internet connectivBob paying customer. That’s what Bennett ity in poorer neighborhoods. happened with RFP365, the develMany students on the city’s oper of software that streamlines the East Side are given laptop or tablet request-for-proposal process. computers they can take home from school, Another round of the IPP program is but they still have a hard time completing planned to run next spring through homework assignments because they don’t summer. For more information, visit have internet access at home. www.ippkc.org.

TALKING WITH BOB BENNETT, KCMO’S CHIEF INNOVATION OFFICER.

What’s Next for KC’s Smart City Hopes? ansas City, Missouri, came very, very close this year to winning a $50 million award that would have funded a set of Smart City technology upgrades. It was one of just seven communities that were selected as finalists in a national competition, but ultimately lost to Columbus, Ohio.

That hasn’t stopped Kansas City, though. It’s moving forward with a version of the project it proposed to the U.S. Department of Transportation as part of the Smart City Challenge.

According to Bob Bennett, the city’s chief innovation officer, Kansas City is waiting to hear if it will be granted federal money to fund Smart City upgrades along the Prospect Avenue corridor. A decision should be coming any day now.

K

SMART COMPANIES THINKING BIGGER®

21

WORLD OF FUNDS A new wave of investment funds wants to help KC’s emerging companies.

BY JAMES HART

D

In the past few years, Kansas City has made real progress

toward fixing one of the biggest problems facing its most promising companies: a lack of investment dollars.

Several investment funds are now looking to provide capital to the city’s emerging startups. Some are expanding from other cities, while others are homegrown. They all could be a vital resource for young ventures that need money to keep growing.

Who are these new players? » Leawood’s Flyover Capital has made a series of invest-

ments in EyeVerify, ClaimKit and other high-potential technology startups. » Firebrand Ventures—helmed by John Fein, the former

managing director for Techstars at the Sprint Accelerator—is raising a $7 million fund that will invest in startups from the greater Midwest. » The KCRise Fund—a spinoff of the KC Rising economic

development initiative—just announced that it has received $10 million in commitments from investors.

It will function as a “sidecar fund” that co-invests with larger venture capital funds.

KCRise is designed to make newer investors feel more comfortable putting money into local startups. Darcy Howe, a longtime angel investor, serves as the managing director. » The Collective Funds—whose founders have ties to

BetaBlox, the Angel Capital Group, the Sprint Accelerator and other groups—plans to invest $10 million in Kansas City startups.

KCSourceLink has been tracking the local funding scene as part of its annual We Create Capital report. This year’s study showed a growth in funds that was “way beyond any expectation that we had,” said Maria Meyers, who heads up KCSourceLink.

“We didn’t get there in a year. I wasn’t expecting to get there in a year,” Meyers said. “But boy, did we get pretty far down the path.”

WHY KC NEEDS MORE STARTUP INVESTORS

In the 2015 class, at least five startups expressed interest in relocating to Kansas City if they could raise $300,000 to $500,000.

“None of them were able to do it in this region,” Fein said. “All of them left, and most of them raised money elsewhere.”

That represents a problem for Kansas City’s larger economy.

Tech-based startups might be small now, but if they survive, have the potential to grow big quickly. Kansas City can’t really recruit large corporations to move their world headquarters here. So if the metro wants another Garmin or Cerner 20 years from now, it must nurture its small, homeJohn Fein grown businesses today.

These new funds could help address a missing link in Kansas City entrepreneurship.

If you’re a relatively small startup and you need less than $100,000, Kansas City has several incubators and grant programs that can help, said Erik Wullschleger, managing partner at The Collective Funds.

There also are venture capitalists who are interested if you’ve been in business a few years, are generating revenue and need more than $1 million in capital.

The options are more limited for companies that need to raise $300,000 to $500,000—money that would allow them to hire key personnel, increase sales and keep expanding.

“There’s a huge gap in the middle,” Wullschleger said.

Why do startups have a harder time finding money at that stage? Young companies—especially tech-based ventures that need to pay for R&D—often can’t secure a traditional bank loan, Meyers said. Startups can help diversify an individual investor’s portfolio, but investors may be wary about the risk.

Fein saw the problem firsthand when he was overseeing the Techstars program at the Sprint Accelerator. The program attracted a string of high-quality ventures to the city. Many had started earning revenue, but it was nearly impossible for them to raise funds here.

24 THINKING BIGGER BUSINESS // October 2016

“We’re a fairly conservative town, and money has been made through fairly typical business models,” Wullschleger said.

Kansas City has its share of wealthy individuals with the means to invest in earlystage companies. But they can be harder to find because they don’t really show off their wealth, KCRise’s Howe said.

Even if young companies can locate an investor with the financial resources, it’s still challenging to find an investor who wants to put money into their particular industry.

Flyover Capital, for example, saw more than 250 companies last year. Since early 2015, it has invested in seven startups.

It’s incumbent on young companies to do as much research on investors as possible—does that person invest in your sector?—and craft a compelling story

“ It’s a great way to keep great entrepreneurs here, so they don’t go to San Francisco, Boston or New York. It’s a great financial opportunity because these are deals that are getting missed.”

John Fein // founder, Firebrand Ventures

Fein sees two big reasons why our area needs more investment funds like Firebrand.

“A, it’s a great way to keep great entrepreneurs here, so they don’t go to San Francisco, Boston or New York,” Fein said. “And, B, it’s a great financial opportunity because these are deals that are getting missed.”

WHAT’S HOLDING KC BACK

While it’s encouraging that Kansas City has these new funds, a little perspective is needed: We’re still running behind.

According to Wullschleger, peer cities like Denver or Austin have a level of startup investment that’s three or four times greater than what’s seen locally.

Why is it harder for young companies, even ones that are strong bets, to find investors in Kansas City? Part of the problem might be cultural.

about their solution that resonates with the audience, said Thad Langford, general partner at Flyover.

Another roadblock for young companies seeking funding?

Some investors take too long weighing opportunities that, at some level, they already know they’re not interested in.

It would be better for them to be up front and quickly pass, so the founders can pursue another investor.

“Quick nos are something that Kansas City needs to learn,” Howe said. “You’re not doing anyone any favors by being Kansas City nice in the pejorative sense.”

Culture isn’t the only hurdle. Sometimes regulations complicate things.

In many cases, investors in early-stage companies need to be accredited under SEC rules. That is, they need a net worth of $1 million or more, excluding the value of their primary residence, or they need

to have earned at least $200,000 annually for the past two years, with an expectation of making at least that much this year. (The income standard is $300,000 for married couples.)

With some exceptions, this is an arena for those with high net worth.

But there are exceptions, and The Collective Funds is capitalizing on one of them. Under Regulation D’s Rule 506, up to 35 nonaccredited investors can invest in an offering, if they have the financial and business knowledge to consider the pros and cons of the investment.

The Collective Funds is reaching out to lawyers, accountants and other up-andcoming professionals who might not have $1 million but are active in the startup community, Wullschleger said. They’ll be asked to not only invest, but serve as advisers to companies in the Collective portfolio.

“We really see ourselves as an active investment,” Wullschleger said.

‘OFF TO A STRONG START’

Nobody thinks all of Kansas City’s funding problems have been solved, but something has changed.

Howe credits a greater public awareness of the metro’s startup community.

Retired executives and other business leaders are seeing the potential in these smaller ventures.

These businesspeople don’t necessarily want to start their own businesses, but they do have personal contacts that younger companies could use to find customers or employees.

“There are people who say, you know, I want to know about that,” Howe said.

There’s also an increased focus on education and matchmaking between investors and startups. Howe, for example, has hosted a series of dinners at her house.

The guests include local startup leaders and executives from established businesses.

The Greater Kansas City Chamber of Commerce—which helped kick-start the push to make Kansas City the most entrepreneurial city in America—has organized

quarterly events devoted to emerging companies and invited people with high net worth to attend, Meyers said.

Several organizations and events, in fact, are working to boost Kansas City’s pool of investors: the new Northland Angel Investors Network, the Alternative Investment Forum, Mid-America Angels, Women’s Capital Connection, Angel Capital Connection and more.

“There’s been a real focus on entrepreneurship and a real focus on building an underlying support infrastructure,” Langford said.

That’s a strength that Kansas City can leverage. Investment is important, but young companies require other support, too, he said.

Flyover, for example, was formed by entrepreneurs from companies like ZaveNetworks, BlackOps Development, Balance Innovations, iModules and others.

Flyover strives to add value to its portfolio companies by offering strategic guidance and making connections to potential customers and service providers.

“We tend to invest in areas where we feel we can help accelerate the company’s path to success,” Langford said.

Larger venture capital firms love to see a community getting behind its startups, Howe said, and those VCs are more likely to spend time looking for deals in that market. (Omaha’s Dundee Venture Capital, Utah’s Royal Street Ventures and Lewis & Clark Ventures of St. Louis have all increased their presence in Kansas City.)

Kansas City needs to keep building on these efforts, Meyers said, so it can earn a reputation as a place where startups can get funded.

“It takes decades to build a thriving startup community, and we’re just at the very beginning,” Langford said. “But we’re off to a strong start.”

Kansas City SCORE

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

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

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

25

Join Us! Introducing Brew :30, a quarterly Happy Hour event where you can meet new business owners, make valuable connections and discover some of Kansas City’s local wineries, breweries and distilleries!

Companies on Tap » FireBoard Labs // Ted Conrad and Steven Briggeman » Vino Pair // Michael and Mindy Kearns » Virtutecture // Tracy Ford and Tanya Jana-Ford » Etch // Carrie Flener

Details Thurs., Oct. 13, 2016 // 5:30-7:30 p.m. $25, includes two drink tickets, heavy hors d’oeuvres Cinder Block Brewery, 110 E. 18th Ave., North Kansas City, Mo.

sponsored by

R S V P T O D AY AT W W W. I T H I N K B I G G E R . C O M | ( 9 1 3 ) 4 3 2 - 6 6 9 0 F O R S P O N S O R S H I P O P P O R T U N I T I E S

The Best of KCK and Wyandotte County

Showcasing Our Diverse and Collaborative Business Community

Nov. 02, 2016

Children’s Mercy Park

4:30-7:30

SMART COMPANIES THINKING BIGGER®

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The Best of KCK and Wyandotte County

The Best of KCK and Wyandotte County SHOWCASING OUR DIVERSE AND COLLABORATIVE BUSINESS COMMUNITY.

T

he KCK Chamber is having a great year thanks to the leadership of the Board of Directors, the hard work, dedication and passion of our staff, and most importantly, support from our partners and members. It is amazing to work alongside so many talented individuals striving to positively impact Kansas City, Kan.; Wyandotte County; and the Kansas City metropolitan region. Together, we are working towards a bustling, more inclusive, healthier, better-educated, workforce-ready community. When businesses thrive, neighborhoods flourish, and when A2 2016 KCK CHAMBER BUSINESS EXPO

people are gainfully employed, progress can be seen and felt.

VITAL RELATIONSHIPS

A thriving community doesn’t materialize overnight. It takes thoughtful leadership, inclusive planning, access, awareness and, most importantly, a belief that the best is yet to come! We are excited to be at the forefront of building a vibrant and prosperous community with an outstanding quality of life.

People and relationships drive progress.

This is why establishing and maintaining meaningful relationships is integral to the work that the KCK Chamber takes on every day as an advocate, a convener and a resource for business owners and community stakeholders. The KCK Chamber encourages businesses from across the metropolitan area to engage with us, and support the exciting developments occurring throughout the community. We continue to develop, nurture and sustain relationships with employers large and small, local business owners, corporations, elected

Showcasing Our Diverse and Collaborative Business Community

officials, educational institutions, healthcare providers and community stakeholders.

CATALYST FOR CHANGE

Sustaining relationships and driving economic progress is not a new concept for the KCK Chamber. Since its inception in 1898, the organization has set about to grow the community and has been an integral voice on behalf of local business.

The KCK Chamber has been involved in projects such as the Lewis & Clark viaduct and the former private Victory Hills Golf Course (now known as Painted Hills). The KCK Chamber has also assisted with selling

membership, we encourage businesses of all sizes to become active in the Legislative Committee and play a vital role in assisting with local, state and federal government affairs that directly affect the community.

THANK YOU TO OUR BEST OF KCK AND WYANDOTTE COUNTY SPONSORS! PRESENTING SPONSORS

BEST OF KCK AND WYANDOTTE COUNTY BUSINESS EXPO

We are excited to welcome you to the 2016 Best of KCK and Wyandotte County Business Expo taking place on Wednesday, November 2, from 4:30 to 7:30 p.m., at the beautiful, newly renamed, Children’s Mercy Park (Boulevard Members Club). Come and learn more about and meet our amazing

WHEN BUSINESSES THRIVE, NEIGHBORHOODS FLOURISH, AND WHEN PEOPLE ARE GAINFULLY EMPLOYED, PROGRESS CAN BE SEEN.

Security Bank Great Wolf Lodge Design Mechanical Inc. Healthcare Resort of Kansas City Kansas City Aviation Department Mark One Electric Company Inc.

the needed subscriptions to start the Kansas City Kansan newspaper in the 1920s.

In more recent years, the KCK Chamber has been heavily involved in changes to the local government, including the change in city government from a three-person commission to a mayor/city council form of government. The Chamber also advocated for the 1997 consolidation of city/county government, which started with a grassroots effort and was carried through to fruition with a fundraising campaign championed by the Chamber. In 2007, the Kansas City Kansas Chamber Foundation was established to assist in funding community and economic development activities in Wyandotte County.

The KCK Chamber continues to be an advocate for business and community issues, and leads these efforts through the organization’s Legislative Committee. The Chamber supports a transparent legislative process that follows the traditional committee format to ensure a fair hearing of all legislative issues facing the State of Kansas for the benefit of its citizens. With Chamber

KCK Chamber leadership and members, network with colleagues and friends, and join us in celebrating all the great businesses impacting KCK and Wyandotte County.

Guests will enjoy networking with local businesses of all sizes and categories that represent the diverse and collaborative community of Kansas City, Kan. and Wyandotte County. This is a great opportunity to sample the unique “flavor” of our business community and get to know the places and people that make “Here” a good place to be.

The KCK Chamber would like to extend a very special thank you to the Best of KCK and Wyandotte County Business Expo sponsors.

Their generous support allows us to provide a platform for our members to showcase their services, products and talents.

Nebraska Furniture Mart University of Kansas Hospital Greater Kansas City Building & Construction Trades Council McAnany Van Cleave & Phillips Candlewood Suites Kansas Speedway NECA/IBEW Power Partners AT&T Cintas Country Club Bank JR & Co. Roofing Contractors KU Medical Center Main Street Credit Union Neff Packaging NPB

Daniel Silva, president and CEO, Kansas City, Kansas Chamber of Commerce

For more information: www.kckchamber.com

Pipefitters Local 533 KCK Women’s Chamber of Commerce Kansas City Kansas Community College

2016 KCK CHAMBER BUSINESS EXPO

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1

KANSAS CITY KANSAS COMMUNITY COLLEGE

A WORKFORCE DEVELOPER Kansas City Kansas Community College is a public, urban, open-door and comprehensive community college committed to excellence in education.

Recently, the college opened the Dr. Thomas R. Burke Technical Education Center (TEC) at 65th and State Avenue that offers more than 20 high-demand career programs in a state-of-the-art, 130,000-square foot facility. The Center offers hands-on technical skills training programs that lead to certificates and employment in various high-demand fields, including computer technology, service and health occupations, and trade and industrial fields.

2

DESIGN MECHANICAL INC.

AN EMERGING ENTERPRISE

Design Mechanical Inc. started with two entrepreneurs who had a dream and came together

KANSAS CITY, KANSAS, IS KNOWN FOR ITS DIVERSITY.

1

offering services out of their car. In one year, the company generated $9 million in revenue and in five years grew to earn an astounding $20 million.

Since its inception in 2003, the company has grown substantially, employing more than 100 service

Not only is Kansas City, Kan., a melting pot

technicians, 150 employees and services more

of cultures, languages and traditions, but

metropolitan area. Design Mechanical Inc. is a

geographically and economically, the community is uniquely versatile. The Kansas City Kansas Chamber of Commerce is proud to serve this diverse, yet collaborative business community, and work as the convener for business owners, investors and community stakeholders. This map helps to demonstrate that diversity (geographically and by business role and impact) of our members and our community.

than 2,000 customers throughout the Kansas City mechanical construction/service company, providing HVAC solutions to the commercial and industrial market. Its headquarters is located in Kansas City, Kan., at I-35 and Cambridge Circle.

3

THE UNIVERSITY OF KANSAS HOSPITAL

AN ECONOMIC ENGINE The University of Kansas Hospital accounts for more than 10,000 jobs throughout the Kansas City metropolitan area, employing more than 5,000 people from Kansas alone. In 2015, $274 million in wages were paid to Kansas employees and $317.6 million went to services obtained from Kansas suppliers and entities. Not only is KU Med recognized for its impressive economic impact, but the hospital is consistently ranked for its quality and safety of care.

30 THINKING BIGGER BUSINESS // October 2016

4

KANSAS CITY KANSAS CHAMBER OF COMMERCE

5

A CONVENER The Kansas City, Kan., community has experienced exponential economic growth during the last five years, and the KCK Chamber is at the forefront of that success by enhancing and leveraging the talents and resources of its diverse members to sustain and catapult development opportunities throughout the metropolitan area. The Chamber is excited to serve as the convener and connector for local and regional businesses to collaborate on efforts that improve the

4

6

economic vitality and quality of life for our diverse region. This in turn creates opportunities in KCK/ Wyandotte County, which build a quality community in which to live, work and conduct business.

5

THE UNIFIED GOVERNMENT OF KCK/WYANDOTTE COUNTY

A BUSINESS-FRIENDLY ADMINISTRATOR The Unified Government of KCK and Wyandotte County has been recognized as one of the most business-friendly local governments in the region. The UG is home to numerous production facilities, warehouses and distribution centers that make it easier and more profitable to ship raw materials and finished goods. General Motors, Cerner Corp., and most recently, the Amazon Fulfillment Center are just a few of the companies that have chosen KCK and Wyandotte County as their home.

Whether by highway, rail or air, KCK offers excellent transportation and marketing advantages for businesses of all sizes.

6

EL CENTRO

A COMMUNITY ADVOCATE

2

3

El Centro is celebrating its 40th year strengthening communities and improving the lives of Kansans through educational, social and economic opportunities. Established in 1976, the organization has grown from a single location to three, serving more than 12,000 individuals and families per year. Programming for the organization has evolved to include The Academy for Children, workshops on money management and home ownership, health education and healthy living outreach.

SMART COMPANIES THINKING BIGGERÂŽ

31

Q & A With 2016 Chair of KCK Chamber of Commerce

Why is KCK/WyCo “A Good Place to Be”?

A Q&A WITH VALERIE MUSSETT, GENERAL MANAGER OF DESIGN MECHANICAL INC. AND 2016 CHAIR OF KCK CHAMBER OF COMMERCE. KCK CHAMBER

Tell us a little bit about

yourself, including your professional history and experience in Kansas City, Kan. VALERIE MUSSETT I’ve been in the HVAC business for almost 30 years. I’ve worked with Bill Iler, president of Design Mechanical, this entire time. We both worked for a previous HVAC contractor. In 2003, Bill Iler started DMI in 45 days! I began working with him Day 1, and it’s been one of the best decisions I’ve ever made. I’m blessed to have him as my mentor and to be able to work with him almost my entire adult career.

We considered many areas of the city for our headquarters. KCK kept coming to front of mind due to its location within the metropolitan area and ease in working with local government, the Wyandotte EDC, etc.

KCK has experienced tremendous economic growth and expansion over the past two

BOARD OF DIRECTORS 2016 | 2017 Rev. C.L. Bachus, Mount Zion Baptist Church

Dr. Doris Givens, KCK Community College

Melissa Clark, CE Distribution Inc.

Don Gray, KC Board of Public Utilities

Alan Deitrich, Sporting Kansas City

Earl Harrison Jr., HG Consult Inc. Engineers & Planners

Ryan Denk, McAnany Van Cleave & Phillips

Mayor Mark Holland, Unified Government of WyCo/KCK

Sarah Frost, TranSystems Corporation

Kevin Jones, ATMOS Energy

Craig Gaffney (Treasurer), Country Club Bank

John J. Jurcyk Jr., McAnany, Van Cleave & Phillips

Phil Gibbs Jr. Continental Consulting Engineers Inc.

Sidney King, Liberty Bank & Trust

Dr. Doug Girod, University of Kansas Medical Center

Dr. Cynthia Lane, KCK Public Schools

A6 2016 KCK CHAMBER BUSINESS EXPO

Showcasing Our Diverse and Collaborative Business Community

decades. Can you give us some professional insight into why the area has been so successful?

I would attribute the tremendous economic growth of any company, business or community to leadership. Without great leadership, there would be no growth or prosperity. So kudos to the KCK/Wyandotte County leaders who began this tremendous economic growth and to those who continue to strive to keep it going.

What makes Kansas City, Kan., an ideal place to own a business?

The ease of working with a local government and their ability to “think outside the box” when it comes to building a strong community and their forward thinking to maintain the growth. It’s refreshing to work with those who have the ability to make decisions that are fair and reasonable, that benefit the community.

In your professional opinion, what are some of the challenges that KCK faces over the next two decades in terms of economic development and business retention?

Many challenges come into play when you consider the explosive growth of any

WE CONSIDERED MANY AREAS OF THE CITY FOR OUR HEADQUARTERS. KCK KEPT COMING TO FRONT OF MIND DUE TO ITS LOCATION WITHIN THE METROPOLITAN AREA AND EASE IN WORKING WITH THE LOCAL GOVERNMENT.

community. And with the amazing advances in technology year after year, who knows what becomes of us in, say, five years? Many challenges are within your control, and many are not. My advice would be, that whatever challenges KCK faces, to consider those in our community as a whole, and don’t become those that divide. Our world revolves around what you believe in, and if you believe in success, then successful you will be.

than ever, helping all businesses in our community (both large and small) with being a voice of reason when it comes to local, state and federal legislative business agendas. The Chamber also uses their vast membership to help small businesses start, grow and succeed. The Chamber helps those larger businesses achieve their community support goals and efforts to help make a stronger community.

What role does the Kansas City Kansas

As a native and longtime business leader

Chamber of Commerce play in sustaining

of the community, can you tell us overall

and expanding the economic landscape of

why KCK/Wyandotte County is “a good place

the community?

to be”?

The KCK Chamber of Commerce plays a significant role in our community through many avenues and facets. The Chamber’s Legislative Committee is bigger and better

KCK is a GREAT place to be! I see the people of KCK/Wyandotte County who want to do business with like-minded people. That’s what makes it “a good place to be!”

Todd LaSala, Stinson Leonard Street LLP

Tony Privitera, Mark One Electric Company Inc.

Linda Lewis, Office Products Alliance

Kirk Sherman, Newmark Grubb Zimmer

Alise Martiny, Greater KC Building & Construction Trade Council

Daniel Silva (President & CEO), KCK Chamber

Valerie Mussett (Chair), Design Mechanical Inc.

Mike Smallwood, Smallwood Lock Supply

Barbara Newby, Women’s Chamber of Commerce of KCK

Norm Smith, NPB Companies Inc.

Randy Nyp (Chair-Elect), Providence Medical Center

Msgr. Stuart Swetland, Donnelly College

Joab Ortiz, Burns & McDonnell

Pat Warren, Kansas Speedway Corporation

Dan Peters, The University of Kansas Hospital

Kate Webb, Coreslab Structures Inc. 2016 KCK CHAMBER BUSINESS EXPO

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KCK Chamber Calendar of Events

NOVEMBER | 2016

Events, times and dates subject to change. Please visit KCKChamber.com for more info.

Wednesday 11.2

The Best of KCK & Wyandotte County

4:30 – 7:30 p.m.

Children’s Mercy Park

Friday 11.4

First Friday Focus

11:30 a.m. – 1:00 p.m.

Great Wolf Lodge

Tuesday 11.8

Resource Business Breakfast

7:30 – 9:00 a.m.

KCK Chamber

Thursday 11.10

Business After Hours

4:30 – 6:30 p.m.

BHC RHODES

Monday 11.14

Global Entrepreneurship Week Coffee Kickoff

7:30 – 9:00 a.m.

KC Cupcake Co. and A Cup on the Hill

Friday 11.18

Congressional Forum

11:30 a.m. – 1:00 p.m.

Reardon Center

DECEMBER | 2016

Events, times and dates subject to change. Please visit KCKChamber.com for more info.

Thursday 12.1

First Thursday Luncheon

11:30 a.m. – 1:00 p.m.

Federal Reserve Bank of Kansas City

Tuesday 12.6

KCSourceLink Traveling Office Hours

1:00 p.m. – 4:00 p.m.

KCK Chamber

Thursday 12.8

Board Chair Reception

4:30 – 7:00 p.m.

KCK Chamber

Tuesday 12.13

Resource Business Breakfast

7:30 – 9:00 a.m.

Granite City-Village West

Friday 12.16

Congressional Forum

11:30 a.m. – 1:00 p.m.

Reardon Center

Daniel Silva, President & CEO, daniel@kckchamber.com

Kate Kershaw, Director of Partnerships & Membership, kate@kckchamber.com

Nolan Dees, Director of Finance, nolan@kckchamber.com

Katelyn McInerney, Marketing & Events Manager, katelyn@kckchamber.com

A8 2016 KCK CHAMBER BUSINESS EXPO

Ga’Brielle Sauls, First Impressions Coordinator, gabrielle@kckchamber.com

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

Alumni Leader Sponsor

Entrepreneurial patron sponsors

Burns & McDonnell CBIZ

Crema hr-haven

technology group solutions llc Crema

HSMC Orizon Principal Financial Group

Heartland Seating Inc. LeaderFuel

Band Sponsor

Alumni Reunion Sponsor

Red Carpet Sponsor

VIP Reception Sponsor

ARVEST Bank

Country Club Bank

Lead Bank

Freedom Bank

AWARD-WINNING ENTREPRENEUR Erlinda Tjhai-Aydulun was named the 2016 Entrepreneur of the Year by the Asian American Chamber of Commerce of Kansas City.

36 THINKING BIGGER BUSINESS // October 2016

KC ENTREPRENEUR

MindLift helps corporations to seamlessly serve their customers, either face to face, via mobile devices or over internet.

TOP OF MIND ENTREPRENEURS

Erlinda Tjhai-Aydulun and Kaan Aydulun C O M PA N Y I N F O R M AT I O N

MindLift 8400 W. 110th St., Ste. 220 Overland Park, KS 66210 1-424-256-5226 www.themindlift.com TYPE OF BUSINESS

Management and enterprise IT consulting YEAR FOUNDED

2013 E M P L OY E E S

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

“Our teamwork, our partnership, the fact that we trust each other wholeheartedly.”

Erlinda Tjhai-Aydulun, president

right // Barry Dicker, MindLift’s vice president of commercial affairs; Erlinda Tjhai-Aydulun, president; Kaan Aydulun, director of customer relations

I

f you’re like most people, you’ve probably endured your share of time in Customer Service Hell.

Something starts glitching—it could be your cable TV or the enterprise software you use to run your business. So you call the 1-800 line and patiently wait for an operator to assist you.

When it happens again, you dial 1-800 once more and patiently explain for the second (or third or fourth or fifth) time what’s wrong.

Eventually, customers lose their patience. According to EY, U.S. companies miss out on more than $83 billion in sales each year because of poor customer experience.

Luckily, help is out there. MindLift is an Overland Park consulting firm that helps midsize and large enterprises adopt advanced tech-based solutions to solve real business problems, whether that means boosting security or harnessing massive amounts of data.

One of MindLift’s sweet spots is omnichannel customer experience. Erlinda Tjhai-Aydulun and Kaan Aydulun, the couple who founded MindLift, and their team help their clients to improve customer satisfaction at each contact point.

Doesn’t matter if you show up at a company’s brick-and-mortar location, send an email, call the help line or fire off a text message. Everybody you encounter will know who you. They’ll know what you discussed the last time you called.

And if you’d rather follow up via text message instead of phone, they’ll be flexible enough to accommodate you.

“When I call them, they know who I am,” Erlinda said. “Then they can text me to say my appointment time is such and such. I don’t need to explain my problems over and over and over again through five different levels of customer experience support.”

The result? Happier customers and healthier financial results.

MindLift has doubled its revenues every year since it was founded in 2013, winning over a series of major corporations as customers.

That’s one of the reasons why Erlinda was named the 2016 Entrepreneur of the Year by the Asian American Chamber of Commerce of Kansas City. Last fall, the Kansas Department of Commerce selected MindLift as its MinorityOwned Business Professional Services Firm of the Year.

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

37

‘OWNING YOUR OWN DESTINY’

Erlinda and Kaan have been married nine years and have two children, ages 3 and 6. The couple first met through salsa dancing—at the time, they hit the dance floor a few nights a week. With work and family, they’ve had to dial those outings back to once a year or so.

Kaan oversees the technology side of MindLift. Erlinda handles business development, hiring and pretty much everything else.

They had talked about starting their own company for a while, even back when they were dating.

It just made sense given their backgrounds. Not only does Erlinda have expertise in management consulting thanks to her time at Black & Veatch, she’s a serial entrepreneur. She co-founded TeaDrops in Kansas City and owned Indo Café, an Indonesian eatery in Lawrence. (Erlinda, who’s of Chinese descent, is originally from Indonesia.)

Kaan, meanwhile, spent nearly 10 years with Accenture. As an executive, he played a big role in the development of the professional-services firm’s tech architecture services.

“In America, living the American dream means owning your own house, owning your own business, owning your own destiny,” Erlinda said. “So when one day Kaan’s previous employer said, ‘I want to hire you for a job,’ we said absolutely, but we want to come in as a contractor.”

The couple formed an LLC. The name they chose, MindLift, sums up what the company does: Whatever’s weighing on a client’s mind, Erlinda, Kaan and their team help shoulder that burden. MindLift will investigate a problem and find advanced tech-based solutions to surgically

“In America, living the American dream means owning your own house, owning your own business, owning your own destiny.”

Erlinda Tjhai-Aydulun // owner, MindLift

improve the client company’s effectiveness and results.

“I guess another way of saying it is we supercharge their team,” Kaan said.

MindLift doesn’t actually build its own software. Rather, it partners with third-party innovators and tailors their products to the issues faced by MindLift’s clients.

One of MindLift’s favorites is Splunk, a solution that makes Big Data meaningful. In fact,

38 THINKING BIGGER BUSINESS // October 2016

last year the MindLift team sat on Splunk’s official partner advisory board, alongside a series of billion-dollar companies.

And MindLift is introducing innovations from around the globe to its clients—for example, by partnering with Almawave, a natural-language search pioneer from Europe.

MindLift tackles problems that might seem small, but can compound into crisis-level issues

when they’re multiplied across the scale of a major corporation.

Kaan remembers a client whose customers would log into its website and place an order every few months. The only problem? The password for their login had already expired, and they didn’t have an easy way to get a new one.

“Now the next time they want to order, they can’t order,” he said. “They have to call countless times to different people. It could take days and weeks to order products. Emotions get high … no one wins. This is the moment MindLift shines—we help to take the friction out and ease the way our clients operate.”

// MindLift consultant Tom Sunaryo. left // Perry Henry, director of customer success, and Beth Jacobson, head of talent acquisition.

above

UP AGAINST THE BIG GUYS

If MindLift’s clients are huge, so is its competition. At one presentation, Erlinda and Kaan were up against a professionalservices firm that, in total, employs around 250,000 people.

And MindLift beat them.

“We won against somebody who bills (the client) over $100 million a year,” Kaan said.

“They’re embedded. They know the client inside and out. They have resources that far exceed governments in some countries.

And we won against them.”

How does MindLift do it?

Well, they deliver. MindLift’s team members are experts at what they do. More importantly, they’re able to smoothly integrate

into a client’s operations and diagnose what’s wrong.

They’re careful to propose solutions that, while they resolve an issue, won’t be massively disruptive. After all, a solution isn’t really a solution if it creates more problems.

“You can’t just bring in the tools without knowing exactly what to do and how it fits in the greater picture,” Erlinda said.

Because it’s so important to mesh with clients, the MindLift duo has been cautious when adding new employees. They hire as much for personality and cultural fit as they do for technical skill.

That desire for like-minded people extends to MindLift’s business development. Instead

of investing time and money in marketing, most of the company’s new business has come through referrals. New clients tend to be people who already see the value in their work.

MindLift also is certified as a Women’s Business Enterprise (WBE) and Minority Business Enterprise (MBE), and they have been useful marketing tools, Erlinda said. The company has made valuable connections by attending local events for diverse suppliers and meeting procurement officers.

Having WBE and MBE status is not a magic cure-all, Erlinda said. Ultimately, you’re going to be hired based on your skills and judged by your performance against your promise.

LIVE AND BREATHE YOUR BUSINESS

While MindLift has enjoyed a lot of success, Kaan and Erlinda are the first to acknowledge there have been a few twists and turns along the way. They’ve had to drop service offerings that weren’t really a good fit. They’ve had projects that came within a day of going to contract and then suddenly evaporated.

“When that happens, you don’t go home and sit in your corner,” Erlinda said. “You ask what else can I do, what do we need to modify.”

That’s one of the biggest lessons she took from her earlier businesses: “You have to be personally involved in your business,” she said. You can’t just log the hours. You’ve got to really live and breathe your vision.

Luckily, she and Kaan have each other. After they put the kids to bed, or when the two of them are driving places, they’ll talk about how things are going at MindLift, what they need to do next. Their relationship has given them a foundation that’s allowed them to do meaningful things together.

“When you own your own business and develop an environment where like-minded people share similar passion,” Kaan said, “you can innovate and solve real problems at an accelerated pace.”

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

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

39

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Entrepreneurial Journey

( by Toby Rush )

APPLY NOW FOR PIPELINE

Pipeline is taking applications now through Oct. 19 for its 2017 class. Pipeline is a fellowship of high-performing entrepreneurs who call the Midwest home. Participants are able to access Pipeline’s national network of experts. For more information, visit www.pipelineentrepreneurs.com/apply.

Toby Rush

The Problem Ten years ago, I was

shown a major problem in my business. Me.

S

ome 10 years ago, when I was a fellow in the Pipeline program, we had an adviser from Chicago named Tom Churchwell. He was one of those guys that was intense, intimidating and spoke his mind … loudly.

Sometimes Tom literally made people cry when they were doing their company presentation. His questions were direct and pointed, and if you weren’t making sense, he told you that straight out. And asked how you could ever expect to raise money, build a team, attract customers, much less get acquired, if that was the best you could do.

I had escaped most of his more pointed critiques the first half of the year. But in the third module, my luck ran out … or maybe I was in luck. We did an exercise where we were supposed to map out a vision that could get us to scale “really big.” I started to present my “big vision,” and it had us getting to $20 million or $30 million in revenue. Tom slapped his hand on the table and said, “Toby, we said big vision. What is this puny $20 million and $30 million?!”

He went on to grill me about what it would take to get to $100 million in revenue. I said we could build or buy something or other (don’t remember exactly what). He said that we didn’t have all century, so assume we were going to buy. How much would it cost? What would that get us to? What new markets could we address? Who else could we buy? What

were the other big problems in our space that we could address?

At the end of the exercise, he kind of smiled and said, “Why aren’t you doing that?” I made the mistake of actually answering him … by saying sheepishly that we’d have to go raise a “s*** ton of money” and that wasn’t realistic.

He just about blew up. His angry eyes bored holes into me, and he said, “Toby, I figured out the problem.” Then he pointed his finger at me and said, “YOU, you are the problem! You can’t get your small-minded thinking out of the way long enough to see the potential staring you straight in the face. The problem is not capital. The problem is not where you are located. The problem is YOU.” I was angry and almost opened my mouth again. (I learn quick and realized that was a really dumb thing to do.) After I sat down, his words started to really sink in. Was the limitation really my own small-minded thinking?

Was my lack of a bold vision the thing holding the company back from becoming great?

Then, a piercing question struck me: Does the vision of the entrepreneur limit the potential of a company? The answer is self-evident. If I think my company is only worth $20 million, why would my investors or employees or customer or eventual acquirer think I am worth more than that?

If I’m not willing to cast a bold vision that stretches the imagination, why would I expect anything magical to happen?

That afternoon at that Pipeline module some 10 years ago, I was shown a major problem in my business. Me. And with that new understanding, I set out to fix it.

Toby Rush is the founder of EyeVerify, which recently was acquired by Ant Financial, an affiliate of Alibaba. He is a member of Pipeline. www.eyeverify.com // www.pipelineentrepreneurs.com SMART COMPANIES THINKING BIGGER®

41

BIGGER | growth S M A R T

( by James Hart )

S T R AT E G I E S

who has penned a popular series of “Money Guides” » Christopher Cox, the former chairman

of the Securities and Exchange Commission, who will join in January “If you look at these guys, they’re all so unique,” Mallouk said. “Chris Cox was with the SEC … To have somebody that was the head of the SEC as a part of the team and all his insights on how to approach things is very powerful.”

Peter Mallouk

Investing in an Advisory Board Thanks to its board, Creative Planning has a new brain trust and nationally known advocates, including Tony Robbins and a former SEC chair.

P

eter Mallouk, the head of Leawood’s Creative Planning, is tapping into a new strategy to grow his business: He has started an advisory board that includes experts with national reputations.

And that could mean even bigger things for the wealth management firm,

42 THINKING BIGGER BUSINESS // October 2016

which has more than $20 billion in assets under management.

Those new advisers include: » Performance coach Tony Robbins, the

author of “Money: Master the Game” » Financial writer Jonathan Clements, a

former Wall Street Journal columnist

How the Advisory Boards Helps “We wanted to have a board of people that could really help us raise our profile nationally and be a great resource for our clients, as well as a great personal resource,” Mallouk said.

Each adviser adds value in a different way. Robbins, for example, has given talks to Creative Planning’s team of financial advisers, and he’ll appear at an event for the company’s clients next year.

Clements has written special content for Creative Planning clients and spoke at an event last month for Creative clients in Kansas City.

“Then they also do private calls with me and other executives in the firm, in terms of their thoughts and advice,” Mallouk said. “So they’re truly advising me and others in the firm.”

How did Creative Planning convince these experts to join its advisory board?

In Robbins’ case, there was an existing relationship. As part of his latest book on finance, Robbins created a platform where readers could be referred to preapproved advisers like Creative Planning.

But Mallouk later asked to pull out.

The platform wasn’t performing like he’d hoped. Robbins requested a sit-down.

“It was a great in-person meeting,” Mallouk said. “And a week later, Tony called and said, ‘I like what I’ve heard, and I’d really like to work with you personally.’”

Robbins decided to do away with his existing referral platform and instead direct leads to Creative Planning. He became a client, and his own adviser, Ajay Gupta, joined Mallouk’s practice.

When the paperback version of “Money: Master the Game” went on sale earlier this year, it included material fea-

Has your company been featured in Thinking Bigger Business magazine? turing Mallouk. And Robbins, who serves as Creative Planning’s chief of investor psychology, has highlighted the firm during interviews on “Good Morning America,” “The Today Show,” author Tim Ferriss’ podcast and other media.

“It’s about the public having various ways to hear our story from people other than me,” Mallouk said. “Before all this, I was the sole spokesperson.”

Why It Works One key to Creative Planning’s advisory board: Its members are all a good cultural fit.

Mallouk didn’t know Cox or Clements personally before his team approached them. But Creative Planning had a strong selling point. It refuses to use a practice called dual registration, which allows financial advisers to function simultaneously as registered investment advisers (RIAs) and broker-dealers.

RIAs are bound by a fiduciary duty.

Meaning, by law, they must always act in clients’ best interests. Broker-dealers are held to a less stringent standard. Critics have argued that dual registration leads to conflicts of interest and less transparency for investors.

Creative’s advisory board members are “principled people, and I think they’re looking for philosophical alignment,” Mallouk said.

Because of the advisory board, Creative Planning is also adjusting how it operates.

The firm traditionally focused on clients with high net worth, and Clements and Robbins urged Mallouk to be more accessible to those with less than $500,000 to invest.

“So we have advisers that work specifically with that group,” Mallouk said.

It’s too early to say exactly how much the advisory board will impact Creative Planning, which was already enjoying strong organic growth. The company’s head count has climbed to 300, up from approximately 250 a year ago. The firm has added 10 physical offices over the last several months.

“Thus far, it’s not dramatically changed things,” Mallouk said. “But we’re just getting started.”

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

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

VOL. 25

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6 // JUNE

2016

VOL. 25 // ISSUE 7 // JULY 2016

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WWW.NAWBOKC.ORG SMART COMPANIES THINKING BIGGER®

43

BIGGER | hr S M A R T

( by James Hart )

S T R AT E G I E S

Managing the Human Element in a Merger Two KC design firms share advice from their recent merger.

W

hen two companies execute a merger, they aren’t just combining balance sheets and office space. They’re also uniting their teams. There’s a human element that must be addressed for a deal to be successful.

Just ask Helix Architecture + Design and Blackbird Design Studio, which recently announced their own merger.

It all started with a lunch, and the notion that Blackbird and Helix might team up to pursue a new client together.

“We started talking about partnerships,” said Erika Moody, one of Blackbird’s two founders. “We started talking in terms of our collective skills.”

But Helix, which is celebrating 25 years in business, also wondered if Blackbird might be a good long-term partner, too.

Blackbird’s founders had worked on major projects for H&R Block, AMC, Black & Veatch and other clients.

“That was not the first time that thought had crossed Helix’s mind,” said Reeves Wiedeman, one of Helix’s founding principals. “You’re always looking at the talent out there.”

44 THINKING BIGGER BUSINESS // October 2016

With time, and the help of some outside advisers, the two firms decided they’d be stronger together.

Thinking about a merger of your own? Here’s some advice from Moody and Wiedeman.

When to Break the News Once the possibility of a merger gained momentum, leadership at both Helix and Blackbird needed to talk to their teams.

While discretion is important in M&A deals, business owners often find their employees have an inkling that something is in the works. (Especially if the owner makes requests for detailed financial reports and other information.)

Blackbird is a team of six people. When the owners left for hours at a stretch for off-site meetings, it was harder to keep the merger secret. So Moody and her Blackbird co-founder, Trevor Hoiland, met with each employee individually over lunch or drinks, giving them a chance to ask questions about how they might be affected.

“There were good follow-up questions from each one,” Moody said.

Helix did something similar. It hosted a company happy hour where team members could ask questions.

One thing most experts agree on: Never lie to an employee about the possibility of a merger. You might have to tell them you can’t say anything at the moment, especially if you’re operating under a nondisclosure agreement. But if you categorically tell a staff member that a deal isn’t in the works, and then it goes through, you’ve ruined that person’s trust in you.

Bringing Everyone Together It took about six months for Blackbird and Helix to finalize the details of the merger.

After it was official, the firms hosted a big group meeting where everybody could meet each other.

They blocked out half a day at a fun, offsite location—Boulevard Brewing Co.’s new visitors center, which Helix designed—and talked about each firm’s history. Everybody hit it off.

“I think that’s because everybody admires everybody,” Wiedeman said.

Helix and Blackbird are fortunate in a couple of other respects, too. For starters, each firm’s current ownership will maintain leadership roles within the merged company. Sometimes employees will leave if they think their boss is exiting.

And the two companies don’t have any overlapping staffing. No employees are going to lose their jobs as a result of the merger.

The combined firm—which will be known as Helix—will be managed by a team of principals (which is how Helix has always operated) instead of making a single person the sole lead.

To foster communication, the leadership won’t have private offices. They’ll be seated together in an open-office environment with staff. “It’s a great way for us to communicate on a lot of things,” Wiedeman said.

Though the newly expanded Helix is still just a few months old, clients have already cheered the merger.

“At Helix, we are always striving to be the best. This merger allows us to offer our clients even greater talent and resources,” Wiedeman said. “We’re excited to watch our teams come together and create great work for our clients and our community.”

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(913) 432-6690 | www.iThinkBigger.com SMART COMPANIES THINKING BIGGER®

45

BIGGER | sales S M A R T

( by James Hart )

S T R AT E G I E S

How to Win Your Biggest Client Ever Spotlight shares strategies for pursuing Fortune 500 customers.

L

anding a Fortune 500 client can be a huge win for a small business, and not simply because it means more money coming in the door. You can use it to show other big clients that you’ve got the capacity to meet their needs, too.

Just ask Spotlight Analyst Relations. It recently added one of the world’s largest corporations to its client roster.

The River Market-based agency is going to be working with GE Digital, helping it build better relationships with industry analysts around the globe. (It’s an important job: Industry analysts can influence the buying decisions of major customers, especially in the world of enterprise software, where Spotlight operates.)

So how did they do it? Rick Nash, Spotlight managing partner, talked about how his firm landed one of its biggest clients.

Find an Advocate Spotlight represents Silicon Valley startups and large companies like Accenture and VMware. Nash and his co-founder, Andrew Hsu, have made a point of going after big customers since Spotlight’s earliest days.

“When we started Spotlight, we identified a short list of companies we wanted to work with and add to our client portfolio, companies we knew we could create outcome for,” Nash said.

One of those companies was eBay. The Spotlight founders spent two years courting a contact there to see if the e-commerce site would hire their firm. (The initial connection was a cold call.)

Nothing happened … until that person moved to GE Digital.

“The first thing she did was call and reach out to see if we could help them,” Nash said.

46 THINKING BIGGER BUSINESS // October 2016

Not only did Spotlight’s advocate point out the opportunity at GE Digital, she also shared valuable information about GE Digital’s process for choosing vendors. That’s no small thing when you’re pursuing a global company.

“They’re a complex, matrixed organization,” Nash said. “So without being on the inside, it’s hard to understand, both the buying process and the decision-making process. Who’s in charge of what?”

Find Even More Advocates While it’s good to have one advocate, it’s even better to win over multiple people inside your prospect’s organization.

The GE Digital contact made the initial call to Spotlight, but it was still important to sell to other decision-makers there.

“In any large organization like a GE,” Nash said, “there’s always more than one buyer.”

Again, their initial advocate helped them out. She made introductions to the right people in multiple departments.

There’s a real benefit to this strategy.

If any contacts leave the organization or move to a different unit, you still have other avenues.

Focus on Educating, Not Closing Over the next several months, Spotlight regularly engaged key people at GE Digital.

Spotlight wasn’t angling to close the deal as fast as possible. Rather, the company shared information about itself and addressed any concerns that GE Digital might have about hiring a smaller firm.

Spotlight highlighted its projects with other international clients, and it talked up its investments in enterprise software, analytics and systems—proof that it could handle a GE Digital-size workload.

“We laugh about it. We call it systematic patience,” Nash said. “We know that in a large organization it’s going to take a long time to make any decision, whether it’s a big one or little one.”

You might be wondering what systematic patience looks like in practice.

Here’s an example: After an introduction from their advocate, Nash or someone else at Spotlight might schedule a call with a key person at GE Digital.

A day or two later, Spotlight would send a thank-you note.

Two or three weeks after that, Spotlight would send a warm email, offering a highlevel overview of Spotlight’s services and

Andrew Hsu, Rick Nash

While it’s important to have one advocate, it’s even better to win over multiple people inside your prospect’s organization.

strengths, in case the recipient wanted to share that with his or her colleagues.

Then, two or three weeks after that, the GE Digital contact would be pinged via LinkedIn. These touchpoints all built up a kind of “muscle memory” that helped GE Digital remember Spotlight.

Worried about pestering your potential client? Check with your advocate. That person can help you gauge if you’re overdoing things.

Be Patient It took about a year for GE Digital to officially hire Spotlight.

“We had probably three different start dates, where, yep, we’re doing it, paperwork’s with legal, we’re going to start in three weeks,” Nash said. “And then a week later, there was a reorg.

Everything got started over.”

But they were prepared for that. And they knew that if they persevered, good things could happen.

Spotlight is adding staff right now, including a new office in Chicago, but that’s not necessarily due to GE Digital.

Rather, the firm has experienced growth because it’s tapping into a larger need in the market.

Still, having GE on the client roster doesn’t hurt.

“Where it does help us is for the next big company,” Nash said. “The fact that Spotlight is managing GE globally, it just sounds impressive to the next Fortune 500 client.”

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

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

47

BIGGER | marketing S M A R T

( by Cat Vaughn )

S T R AT E G I E S

Dominate Your Mobile Marketing Google is changing how it serves up ads to mobile audiences.

T

hanks to the evolution of digital marketing, companies can generate leads for highly specific audiences faster and more cost-effectively. The only catch is this landscape is constantly changing. Mar-

up ads on mobile devices. As a result, brands could capture more customers and sales if they adjust their marketing to take advantage of these changes.

Companies need to pay attention because mobile marketing isn’t a tiny niche anymore. In fact, mobile search queries surpass those from desktop machines.

And 30 percent of all mobile searches are related to location.

What’s Changing

keters have to understand not only where digital marketing is today, but where it’s headed tomorrow.

Mobile is a good example. Google recently announced two big shifts in how it will serve

Expanded text ads // Google has expanded the character limits of its mobile text ads, from one headline of 25 characters to two headlines of 35 characters and modified the description line from two lines of 35 characters to one 80-character length line. It turns out the longer ads convert at a higher rate. (Possibly because consumers view them less as ads and more as organic listings, thereby increasing their credibility.)

Responsive, mobile-friendly display ads // Google’s display ads—those that can feature a mix of imagery, text, video or other elements—will be automatically resized and reformatted to fit various ad sizes, placements and devices across the entire Google Display Network.

This is a huge benefit to all parties (advertisers, publishers and users) as the primary focus is on the ease of use and user experience. For marketers, it means greater control of their messaging and branding across a range of platforms.

What You Should Do Next Unsure of how to make the most of these changes? Let’s examine some strategies that will help you dominate your mobile marketing strategy and enhance your lead generation results.

Responsive ad design // Advertisements

can now be automatically formatted to match the tone and feel of any given website, creating a seamless experience for users. On average, responsive display ads lead to an increase of 20 percent in clickthrough rates, Google found. Our tips: » Focus copy on your unique selling point and your call to action. More 48 THINKING BIGGER BUSINESS // October 2016

space allows for more control of the brand message, and automatic responsive design means you don’t have to worry about resizing issues. » Be sure to conduct A/B tests between previous standard ads and extended text ads to gauge the responsiveness of your targeted audience.

» Use quality images that are relevant to your target audience and brand. The first image users see can encourage engagement, resulting in a lead— or throw users off, resulting in a closed window.

Landing page optimization

Image optimization // Google will no longer automatically select images from a marketer’s site to populate richer text ads (that is, text ads that are supplemented with an image). Instead, advertisers can upload custom images, again allowing for more control of the brand message. Our tips:

// Landing pages continue to be among the most important elements in lead generation—thanks to their sign-up forms, which help capture valuable visitor information. It takes users only a few seconds to decide to engage with your page or leave. Our tips:

» Populate ads with higher-resolution images that align with your branding, though those files shouldn’t exceed 1 MB in size. PNG-24 file types are best for images with a heavy mix of colors, while PNG-8 is best for simple color palettes.

» Be specific for your audience. Most people come to a landing page via an ad, so your landing pages need to deliver information on exactly what the ad promised.

If the ad featured the newest jacket sold by your apparel company, the landing

page should focus on that jacket, not your entire line. » Remember, speed is king in generating leads. Studies show users won’t bother to stick around if full-page load time is longer than three seconds.

Digital marketing is constantly changing. If your marketing strategy isn’t evolving too, then you will undoubtedly set your brand up for failure. With a grasp of these concepts, marketers will be able to leverage recent Google updates and keep ahead of the competition.

Cat Vaughn is the vice president of data strategy and analytics at Gragg Advertising, a Premier Google Partner. www.graggadv.com // 1-877-GRAGG-ADV

skylineE3.com 913.599.4787

SMART COMPANIES THINKING BIGGER®

49

SCALEUP! KC

MACKECH JEWELRY

‘Life Is Amazing’ JEWELRY ENTREPRENEUR GEORGINA HERRERA IS TAKING HER BUSINESS TO A WHOLE NEW LEVEL. eorgina Herrera has achieved an uncommon degree of success in the decade since she launched her company, Mackech Jewelry LLC. Herrera has introduced the popular Mackech jewelry brand, which originated in Mexico, to consumers in the United

G

50 THINKING BIGGER BUSINESS // October 2016

States. In 2011, she became an official supplier to Sam’s Club stores across the country, leading to strong sales for her business.

Mackech Jewelry LLC grew so fast that Herrera realized she needed an adviser to guide her growth.

Fortunately, earlier this year, Herrera received an email from ScaleUP! Kansas City.

Herrera was one of the entrepreneurs who landed a coveted spot in the program, which is offered by the University of Missouri-Kansas City Innovation Center and the U.S. Small Business Administration.

It’s open to entrepreneurs who have been in business at least two years, generate $150,000 to $500,000 in annual revenue and are in a market capable of supporting more than $1 million in sales. The program offers free training, coaching and peer-topeer roundtables.

“Life is amazing,” Herrera said. “I have the opportunity to build my business stronger and correct everything I was doing wrong.”

HOW SCALEUP! HELPED HER

Herrera, who is originally from Mexico, started Mackech Jewelry LLC in Kansas City after her husband was transferred here as part of a job promotion.

Georgina already had significant business experience, having worked in international sales.

Still, joining ScaleUP! led her to make several changes to position her company for long-term success.

For example, her ScaleUP! classmates and instructors urged her to broaden her reach. For years, Herrera had focused her business on her most important client.

“Then I realized that you never know how the market can change or the conditions for your clients can change,” Herrera said.

And so she has put even more energy into pursuing additional clients.

Fortunately, Herrera’s business has already received several fine-jewelry certifications and gone through vetting processes that normally delay newcomers to the high-end jewelry market. Having those in place has allowed Herrera to expand more efficiently than other competitors might.

That, combined with her experience and her strong designs, helped Herrera earn an invite to sell fine jewelry through Amazon, a company that also sets a high bar for fine jewelers, she said.

ScaleUP! helped her create a long-term business plan so she knows how to align daily decisions with those goals. It means regularly reviewing her financial statements to make adjustments.

Before ScaleUP! Kansas City, Herrera admits, she rarely viewed those reports until the end of the year when completing her taxes. She was more focused on design and products.

WHAT’S NEXT FOR HERRERA?

Herrera has also developed her own line of jewelry, named Georgina Herrera. If you’re attending Kansas City Fashion Week S/S this month, you can see the line in person.

Herrera hasn’t been afraid to try new things, but she always keeps her long-term goals in mind.

For example, in 2014, Herrera decided to promote her brand another way: She signed a one-year lease for a store in Park Place. It exposed more customers to the brand, but

the storefront was never intended to be long term.

“It’s not my business,” she said. “My business is to be wholesale. But I needed to push my brand so people know it.”

Herrera quickly formed a relationship with high-end fashion retailer Feng, which was located nearby. She closed her store as expected. Feng now sells to her local customers.

Thanks to her time in ScaleUP! Kansas City, Herrera is optimistic about expanding her company’s reach even further.

“It has been amazing,” Herrera said.

“I cannot tell you how happy I am.”

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

ENTREPRENEUR

Georgina Herrera COMPANY

Mackech Jewelry LLC Overland Park, KS (913) 906-9122 www.mckbrands.com Herrera is a wholesaler of fine jewelry. In 2015, Mackech Jewelry LLC was named the Kansas Minority-Owned Business of the Year (Retail).

ARE YOU READY TO SCALE UP?

ScaleUP! Kansas City is taking applications now through Dec. 2 for its fifth class, which will start meeting in January.

The free four-month program gives local business owners the tools they need to increase their revenues.

Applicants must lead a company that’s been in business at least two years and that currently generates revenues of $150,000 to $500,000.

For more information, visit www.scaleupkc.com.

SMART COMPANIES THINKING BIGGER®

51

BUILDING KANSAS CITY

Health Care

2016

TODAY’S BIGGEST HEALTH CARE TRENDS CREATE OPPORTUNITIES FOR KC SMALL BUSINESSES.

A Prescription for Better Care verybody knows health care is The Affordable Care Act is at the top of important. The men and women the list, obviously. While the law has allowed who work in this field literally save lives. more Americans to receive health insurBut that fact sometimes obscures the ance, individuals are shouldering a greater industry’s economic impact on the greater portion of the costs as high-deductible plans Kansas City region. Because, despite its become more common. humanitarian mission, health care is also The ACA has also inspired a wave of a business.

M&A activity among hospitals, medical According to the Mid-America Regional practices and health insurers, according Council, health care and social assistance to the Pwc Health Research Institute. Just accounted for nearly 140,000 area jobs in last year, St. Joseph and St. Mary’s medical 2014, second only to government employcenters changed ownership. ment. Over the course of 10 years, it But these shifts—even as they lead created more than 30,000 positions, to larger and larger organizations—have outperforming any other sector, even also created opportunities for Kansas during the Great Recession.

City startups and small businesses to The demand for service has led to several introduce products and services that construction projects, too, creating work not only reduce costs, but improve care for the region’s construction, engineering for the average patient. and architecture firms.

‘PRACTICING MEDICINE In many cases, these are not small LIKE I WANTED TO PRACTICE’ projects. The University of Kansas Nationally, more physicians are Hospital is building a $280 milstarting practices under a direct lion tower in Kansas City, Kan., primary care model. Instead and a new $100 million of sending a patient’s bill to building in south Overland their insurer or collecting Park. North Kansas City a co-pay, these practices Hospital is planning a charge a monthly memberfive-building medical office ship fee. There’s no other park near Kansas City cost for most care that can International Airport.

Dr. Kylie Vannaman be delivered in the office.

Along with the growth, there’s also disruption on a level Because the practice doesn’t that few industries are undergoing spend as much time submitting right now. The $3.2 trillion sector is facing a forms to the insurance company, it doesn’t wave of trends—financial, political, technoneed as much office staff, reducing the cost logical—that are transforming how care is of overhead. It also has the nice side benedelivered in the United States. fit of allowing the doctors to spend more

E

52 THINKING BIGGER BUSINESS // October 2016

time with patients, making them better advisers and advocates.

“This is really a way for me to get back to practicing medicine like I wanted to practice,” said Dr. Kylie Vannaman, who last year co-founded Health Suite 110, a direct primary care practice in Overland Park.

Vannaman and her business partner, Dr. Haseeb Ahmed, are able to consult with patients how they see fit. Sometimes that means a phone call, a text message, a videoconference or an old-fashioned house call. Many insurers only reimburse for care provided inside a doctor’s office.

GIVING GREATER PRIORITY TO QUALITY

“We’re accessible,” Ahmed said. “We’re personally a text message away.”

The Health Suite 110 team doesn’t discourage private insurance. In fact, they recommend it. They say services like theirs are a good complement to high-deductible plans. A monthly membership fee may be more manageable than trying to meet a high annual deductible.

Dr. Shelley Alexander, the owner of New You Health Studio, operates a specialty practice that focuses more on anti-aging, hormone replacement therapy and other services. Despite requiring payment

The Affordable Care Act is also changing how Medicare reimburses health care providers for visits. Under the old rules, doctors and hospitals would bill on a feefor-service basis. Under the ACA, though, a greater percentage of reimbursement hinges on “quality of care” measures.

PatientsVoices, a young company from Kansas City, Kan., has developed a proprietary system for analyzing and reporting patients’ feedback on their quality of care, which can affect Medicare reimbursement.

Sphere3 has developed Aperum, a real-time analytics software that helps hospitals to reduce patient falls, improve response times and otherwise improve patient satisfaction. Doing that in real time is the key. Previously, feedback from patients was received well after the care provider’s ability to help them.

“We translate that into behaviors at the point of care so the hospital has the ability to fix problems before you’re discharged,” said Kourtney Govro, Sphere3’s founder and CEO. One benefit to being based in Kansas City, she said, is local health care providers are often more willing to try out emergent technologies. Centerpoint Medical Center in Independence helped pilot Aperum—and saw real improvement in patient experience.

Another quality-of-care measure is readmission rates. Many large health systems are looking for help in this area, and that’s opened the door for another local startup, CareConnext.

The company has come up with a set of tools and support systems that assist people with heart failure. CareConnext helps them make (and stick with) lifestyle changes that will improve their quality of life and keep them out of the hospital. directly from patients, her practice It can be tough for patients to is thriving. handle on their own because a Why don’t more doctors diagnosis of heart failure can feel go into business for “overwhelming,” said Elizabeth themselves?

Blanchard Hills, CareConnext’s “We’ve more or less founder. One in five patients been trained to be an dies within five years, but for employee,” Alexanmany, lifestyle changes can der said. In medical make a major difference.

“They assume they’re dying Dr. Haseeb school, “there aren’t Ahmed when they’re not,” Blanchard any business classes.

Hills said.

There’s not really any of that learning the business aspect continued on page 54 » of medicine.”

SMART COMPANIES THINKING BIGGER®

53

BUILDING KANSAS CITY

Health Care

2016

While these kinds of interventions are important for individual patients, the entire health care system has a lot at stake. Heart failure, diabetes, obesity, cancer and other chronic diseases represent a large and growing problem—one that could only become more expensive as the population ages.

“They’re going to bankrupt the system unless we change the way we manage and care for these patients,” Blanchard Hills said.

‘NEXT GENERATION OF HEALTH CARE MANAGEMENT’

Another major trend affecting health care?

Technology is making it easier for everyone

to get the health data they need when they need it.

You can see it in the growth of Cerner, a world leader in electronic health records.

Last year, the company reported revenue of $4.43 billion.

But smaller Kansas City businesses are succeeding with their solutions, too: » Rx Savings Solutions allows customers to find the best possible prices on their medications.

The young company has signed up major clients like Blue Cross Blue Shield of Kansas City and American Century.

Matt Condon

» Local startup iShare Medical has created a system for “cradle to grave” medical records that patients can seamlessly share with all their health care providers. The company has won a major federal contract.

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» Bardavon Health Innovations has developed a cloud-based solution that lets employers better analyze and manage their workers’ compensation programs. Bardavon’s analytics allow companies to see which occupational and physical therapists deliver the best results for their workers.

“I really believe it is the next generation of health care management and evaluation,” said founder Matt Condon, who launched Bardavon after starting another successful health-based business in Kansas City, ARC Physical Therapy+.

Condon’s new company is growing, too.

Last year, Bardavon employed about 10 people. Now, it’s closer to 50.

In the last few years, Condon said, he’s definitely noticed an increase in the number of Kansas City companies bringing tech and health together. In fact, sometimes there’s a little friendly competition for talent.

Even that’s ultimately for the best. Job candidates from the coasts will be more likely to move to Kansas City if they see several healthy businesses where they might work.

“We’re rooting for each other,” Condon said. “We need those companies to grow and be successful.”

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Leadership Rounding Shouldn’t Be a Box of Chocolates Kind of Experience SPHERE3’S APERUM® TECHNOLOGY IMPROVES PATIENTS’ HOSPITAL EXPERIENCE, AT THE POINT OF CARE. or decades, hospitals have sought feedback from patients through post-visit surveys, but the lag between patient stay, survey administration and final report did not provide the patient-centered reaction that hospitals wanted.

F

In an effort to identify patient experience and react to it before patients left the hospital, many hospitals implemented a practice called “leadership rounding.” This involved having unit directors, managers and charge nurses visit patients on a regular basis to identify areas of improvement.

When one health care executive was asked to describe “leadership rounding,” he likened it to a Forrest Gump box of chocolates experience. He did not know what he would get when he walked into a patient’s room. Would it be the dreaded hard candy or the dark chocolate with the soft caramel center?

This is the case for all leader rounds done on paper or with a traditional survey tool. They lack the collaborative ability to show real-time feedback from the patient alongside the behaviors the patient is exhibiting and how caregivers are engaging with patients.

Sphere3’s Aperum® technology takes the guesswork out of rounding by automating the process on mobile tablets and aligning patient EMR and nurse call light data so that adjustments in care can be made prior to disharge from the hospital. This collaborative approach enables a more positive patient experience, in a safe and quality environment, by empowering care teams with meaningful information at the point of care.

FACILITATING PATIENT CARE AND LEADERSHIP COLLABORATION Here’s how Aperum® works. Data is pulled directly into the rounding tool, so caregivers and leadership can see both verbal feedback from patients and their behavioral activity as tracked by the nurse call light, smart bed, real-time location sensors and cardiac monitoring.

The patient’s perception of their care, collected during leadership rounds, is compared to their behavior activity in the call light such as how often they are getting out of bed unassisted, how many times have they used their call light for water, or whether they had a critical event. Additionally, the Aperum® platform is used to analyze

caregiver interaction rates balanced with variable workload from patient-generated alarms. This allows the hospital to reallocate resources as needed to enable faster response.

Rod Corn, FACHE, vice president of strategic initiatives for Sphere3, uses the word “trans-care-ency” to describe the process. “We give transparency to the care being provided by the care team and the perception of that care of the patient. The caregiver team and the leadership team are all operating on the same set of metrics,” he said.

MAKING A POSITIVE DIFFERENCE Aperum® creates a range of benefits for the hospitals—and the patients— that use it: increased efficiency, lower costs, greater accountability and more. Among others, the following outcomes have been observed: > Increased efficiency—60% reduction in the amount of time spent managing rounds > More satisfied patients—Improvement in patient experience scores by 18 percent.

The scores for nurse communication and patients’ willingness to recommend the facility ticked up too. > More Collaborative Environment— Leadership reported improved communication. Less time is wasted on phone calls and tracking down co-workers because all the information staffers needed is available on their tablets. > More responsive care—Armed with more information about each patient, nursing staff is able to customize the plan of care for patients who might have an altered mental status or other special challenges. Not only does this help prevent problems, it increases trust with patients’ family members. > Faster response times—Response to call light time decreased as a result of better understanding of patients’ needs. > Stronger, smarter teams—Because Aperum® can track individual employees’ performance, it is easier for leaders to recognize excellent work and offer coaching when necessary.

Beyond the data and innovation, it’s important to remember the most important outcome that Sphere3 and Aperum® help produce—an environment where nurses are able to spend less time on paperwork and devote more of their shift to their primary mission: serving patients.

Sphere3® www.Sphere3Consulting.com 913-227-4478

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DOBIES HEALTHCARE GROUP

Navigating Market Changes in Healthcare WHERE STRATEGY MATTERS MOST DURING INDUSTRY CHANGE AND DISRUPTION. ealthcare is changing at a magnitude and pace we’ve never seen before. In an industry long known for moving at glacial speed, we now find ourselves in the midst of rapid, macro-level evolution that is fundamentally changing the shape and scope of U.S. healthcare.

H

It is a prime example of industry disruption—large-scale change driven by government intervention, technological innovation, shifting consumer demands, big data and more. Born from the premise that comprehensive health management must focus on prevention as well as treatment, healthcare is now actively transforming into lifecare.

To build sustainability and secure a meaningful position in the new care model, healthcare leaders should focus on strategy in three core areas: 1

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Leadership The right leadership personalities engaged at various stages of growth is essential. When leaders come together on strategy but assume complementary roles in the process of bringing it to life— for example, one who excels at generating ideas, another who excels at managing execution—the result is a future-focused leadership dynamic capable of moving the dial across the organization.

By defining these roles and delegating responsibilities according to individual strengths, healthcare companies can avoid common leadership-based obstacles that interfere with strategic objectives.

consumer demographics, competitive market positioning, opportunities for strategic public-private partnerships, and service lines poised for growth (to name just a few). Successful leaders will look at strategy to inform specific tactics, but the goal is relatively universal: integrating healthcare with healthy living so seamlessly that it becomes pervasive in people’s lives.

LOOKING TO THE FUTURE Advice to all healthcare executives and boards: Take time to understand the market transformation and how best to adapt, and consult with experts outside your team if needed. Use that knowledge to drive results-oriented change and bring the new health model to life.

Successfully navigating the new healthcare world requires vision, strategy, flexibility and organization-wide commitment. Learn more at dobies.com/navigate.

Carol Dobies is the CEO and Founder of Dobies Healthcare Group. 816.753.3336 • @caroldobies

Strategic Marketing + Creative Communication = Healthier Brands They make it look easy, but there is nothing simple about what they do. As healthcare marketing and branding experts, the team at Dobies Healthcare Group navigates a complex and rapidly changing industry to produce measurable results.

Since 1992, Dobies Healthcare Group has offered highly specialized expertise in healthcare marketing strategy,

Organizational Culture Generally speaking, employees in healthcare are

branding and creative communications. The Kansas City-based company serves the entire healthcare

motivated by the good they can do to improve patient experience and influence informed decisions. That purposeful mission is a powerful ally for healthcare organizations because internal culture is closely connected to the external brand.

Healthcare companies should consider embracing corporate social engagement as a strategy for building brands, strengthening culture, fostering loyalty, and enhancing employee recruitment and retention.

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industry, from hospitals, health systems and payers to medical device manufacturers, distributors, associations and certifying boards.

At its core, the firm’s philosophy can be summed up in two words: strategy first.

Carol Dobies CEO and Founder

Expanding Care Models Today’s visionary healthcare leaders are looking beyond the

age-old “sick care” model to establish a fully integrated, consumer-centric model of health and life services. Organizations must pivot to offering community-based services that encourage consumers to adopt new, healthy lifestyles.

“When you combine strategic marketing with creative communication, you create healthier brands,” said Carol Dobies, CEO and Founder. “To elevate market position and increase market share,

you need a solid strategic plan in place first and foremost. Strategy brings clarity along the path to brand authenticity—creative campaigns alone won’t do that.” dobies.com • @DobiesGroup

What does a health-life care model look like? That depends on a variety of localized factors—such as community health needs, 56 THINKING BIGGER BUSINESS // October 2016 SPONSORED CONTENT

BIG | shots

Building Up KC’s Construction Workforce The Builders’ Association has cut the ribbon on its new Advancement Center, which will offer the latest technology for training workers. (photo courtesy of the Builders’ Association)

BIG Breakfast Alan and Stephanie Sage of Sage Restoration and Valerie Vaughn of Apex Business Advisors were among the attendees at last month’s BIG Breakfast.

Diverse Entrepreneurs Nearly 30 diverse KC entrepreneurs took part in a two-anda-half-day course presented

by Dartmouth’s Tuck Executive Education program. Sponsors included Burns & McDonnell, Sprint, KCP&L, DST, Hallmark and the City of Kansas City, Mo. (photo courtesy of Burns & McDonnell)

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BIG | talk

» The BIG thinkers behind the BIG ideas. »

John Hewitt John Hewitt is the founder and CEO of Liberty Tax Service.

A nationally recognized name in the tax return preparation and accounting world, Hewitt is also founder of Jackson Hewitt and a former H&R Block regional director.

Accounting Today magazine has named Hewitt one of the accounting profession’s Top 100 most influential people 15 times.

Hewitt is also the co-founder of Stop Hunger Now and Run for Food International. He recently published “iCompete: How My Extraordinary Strategy for Winning Can Be Yours.”

Founder of Liberty Tax Service KELLY » How did you get started in the tax preparation business?

JOHN » I

was attending the University of Buffalo and studying to be a mathematician. And then my dad did something that was life-changing for me. He called H&R Block and said we would like to buy a franchise in our suburb of Buffalo. They said they didn’t sell franchises in that area but were going to put a company store there. They asked my dad if his son would like to take their course and work there. I started working while I was going to school, and in my second season, they asked if I would leave college and run 10 stores. Ten years later I was the youngest regional director in the country, managing 250 stores.

Then my dad interceded again.

He was one of the first people to buy an Apple computer. He said, “Let’s computerize taxes.” I told him the computer couldn’t even beat me at chess, so how was I going to put complicated tax code into it? He said he was going to do it, and he left his job as a CFO and started writing code. A few months later I joined him. In 1981, we built the first tax software for an Apple computer.

KELLY » One of the major themes in

“iCompete” is monitoring results, not activities. What do you mean by that?

JOHN » Yes, that’s one of our principles. Too many people

Giving loyalty is the only way to get loyalty. You’re not going to get someone that’s loyal to you until you’re loyal to them. You’ve got to lead by example. look at what you are supposed to do. Think about this: Pretend there are four second basemen in the major leagues. One gets 30 hits per 100 times at bat, one gets 28 hits, another gets 26 and another gets 24. They’re all going to the same number of practices, they all do the same workouts. But one guy gets 30 hits, and he’s a Hall of Famer. It doesn’t matter how many hours you practice, how many hours you watch films, how many hours you run. What matters is the results you achieve.

What sets the people who are getting the 30 out of 100 hits apart from the people who are getting 24 hits, if it’s not the activities?

KELLY »

JOHN » Some

of it is blessings for extra skill that others don’t have.

58 THINKING BIGGER BUSINESS // October 2016

I think some of it is preparation.

It’s not what you did today; it’s what you did since you were 10 years old. Preparation separates the winners from the losers.

And you have to have confidence. I don’t think you can achieve great things unless you’re self-confident. If you can’t see a vision of a brighter future, how are you going to get to a brighter future?

KELLY » Liberty is a well-known brand with raving fans. How have you been able to create and sustain the raving fans you’ve had over the years?

JOHN » One of our principles is give loyalty and get loyalty. You don’t just get respect and loyalty automatically. You have to earn it. And you earn it by proving it.

KELLY » What advice would you give to entrepreneurs?

JOHN » Success in anything doesn’t depend on how smart or hard-working you are. The only requirement to massive success is perseverance. Everyone gets down. Winners get up and keep going. It’s not an easy thing— one of the most difficult things to do is to get up and keep going.

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

KEYNOTE SPEAKER John Mackey, Co-Founder, Whole Foods

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