Thinking Bigger Business—Oct. 2017

VOL. 26 // ISSUE 10 // OCTOBER 2017

BRANCHING OUT Phil Lopez and Arboles Tree Trimming really do believe that money grows on trees.

BIGGER SALES Taking Marketing Along for the Ride

BIGGER HR

Intergenerational Decision-Making Tips » iThinkBigger.com

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CONTENTS

OCTOB ER 2017 VOL. 26 // ISSUE 10

SPECIAL FOCUS

42 KC Health & Wellness Companies

Local businesses have carved out a number of niches in this industry.

D E PA R T M E N T S

07 The Bigger Picture 08 Legislative Briefs 10 Biz Bits 11 BIG | deals 15 25 Under 25 ® Updates 50 BIG | shots OUTLOOK

20 KC Futures The Living Lab: A data resource for entrepreneurs

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

28 BIGGER | growth Advice on direction, speed and avoiding pitfalls

30 BIGGER | contracting What to do if your certification is denied

24 | KC ENTREPRENEURS

32 BIGGER | finance Planning for wage increases

36 BIGGER | sales A simple sales strategy that gives your marketing a lift

HE ON T R E V O C

BRANCHING

OUT

38 BIGGER | hr How to harness multiple perspectives among generations

Arboles Tree Trimming has sawed, chipped and trimmed its way to profitability 16 4

THINKING BIGGER BUSINESS // October 2017

B IG I N F LU E NC E

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B IG S TA R T S

| 18

MADE TO LAST

17

C O M PA N Y T O WAT C H

19

KC M A D E I T

22

ENTREPRENEURIAL JOURNEY

MusicSpoke

Moon Marble

Jeff Morgan and Stella Crewse

Jennifer Rosenblatt and Kurt Knecht give composers a voice.

Bruce Breslow and Lynda Sproules make marbles.

Long-time employee fuels founder’s succession plan.

SMART COMPANIES THINKING BIGGER®

5

CONTENTS

O CTO B ER 2017

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THE BIGGER PICTURE

It’s Time to Cross the Finish Line

S

ometimes when I’m driving

investors and family—along for the ride.

around town with cars

Every day we plan and we forecast and

whizzing past in the opposite

we do all the things we think will keep the business moving forward. Most days,

direction, I realize the only thing

even while going full throttle, we’re running to

separating me from a head-on collision is a thin stripe on the payment. Veering just a few

catch up. At any time, market changes, a misgui-

inches over it can have devastating consequences.

ded decision, inattentiveness, a bad decision or a

When it comes right down to it, much of our life is a delicate balance, success and failure separated only by a thin line. So often, were buzzing along, foot firmly planted on the accelerator, headed

host of other challenges can disrupt, or even end, the journey. Knowing this, we keep it in high gear anyway. We must. If we don’t, our competitors will either pass us or smash us from behind.

We’re now in the final leg of this road trip called

down a certain road, and something happens that sends us sliding out of our lane. But usually, despite the bumps and detours, we arrive safely at our destination.

2017. We have one final quarter to arrive at the place we set out for when we began the year. Make a quick pit stop to assess where your business could use some servicing. Refuel, change the tires

So it is with our businesses. We map out a route

and make any mechanical adjustments needed

that we think will lead to success, and we head

to ensure your company reaches the destination

out. We even dare to bring others—employees,

you envisioned.

Ke lly S can lon

// Publisher // kscanlon@iThinkBigger.com

SMART COMPANIES THINKING BIGGER®

7

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

FEDERAL Obamacare Repeal Effort Once Again in the Works

Republican Senators Lindsey Graham and Bill Cassidy have introduced an amendment to H.R. 1628 that would greatly alter the current state of the Affordable Care Act (ACA). If passed, the bill would change the framework of the current law, transferring money to the states and providing for greater state flexibility. For instance, the bill halts Medicaid expansion and the current system of subsidies and allows states to determine which consumer protection provisions to adopt in their individual marketplaces. Additionally it would transfer more than $1 trillion in

future spending from the federal government to the states in the form of block grants, which would give individual states flexibility in choosing how the funds are distributed.

Tax Reform Fight Continues In September, the Senate announced a potential deal to create a $1.5 trillion dollar tax cut as part of the latest budget resolution.

Senate Finance Committee Meets to Address Business Taxes Additionally, the Senate Finance Committee has met to discuss reforming the business tax code. While much attention has been paid to individual tax reform, the Committee was focused particularly on the challenges facing small business.

There were several arguments before the Committee to promote not only a rate reduction for C corporations but also firms that utilize pass-through taxation such as partnerships, S corporations and LLCs.

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THINKING BIGGER BUSINESS // October 2017

STATE Missouri and Kansas Business Incentives Likely to Play Large Role Amazon has asked cities across the United States to submit applications for consideration for Amazon’s second world headquarters. The project, which would bring $5 billion in investment and around 50,000 jobs, is substantial and has many cities competing to win Amazon’s attention.

Amazon has requested that cities “identify incentive programs available for the project at state/province and local levels.”

In addition, the request for applications has mentioned tax structure and business environment as being a priority. Between Missouri and Kansas, an old rivalry once again is at the forefront. It is projected that both states will likely vie for the chance to bring Amazon to the Midwest.

Missouri Right to Work Law to Face Referendum Missouri’s Right to Work Law will likely face a statewide referendum vote. Pro labor union interest groups have managed to collect enough signatures to challenge the state law, which was set to take effect in August. The measure, which would have allowed workers who wished to opt-out and not join a union or pay dues, has been viewed as the crowning legislative achievement of Governor Eric Greitens’ first year in office. The latest effort to put a stop to the legislation will go to a vote of the people, unless the Missouri Supreme Court approves transfer of a lawsuit challenging the sufficiency of the language of the initiative petition. A circuit court decision had determined that the language of the initiative petition was insufficient, unfair and did not adequately inform voters of the consequences of their votes. However, the Missouri Court of Appeals overturned the circuit court’s decision, finding the language adequate. If the Supreme Court grants transfer, the initiative petition’s future will be decided by the high court. The Supreme Court is expected to grant or deny transfer of the lawsuit sometime in the coming month.

We challenge you to challenge us.

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BIZ BITS

Missouri, Kansas Win STEP Grants Kansas and Missouri will each get a share of the latest round of federal STEP grants, which help small businesses compete as exporters. The Kansas Department of Commerce will receive $380,000, while Missouri’s Division of Business & Community Services has been awarded $400,000. The SBA awards grants to individual states, usually to their departments of commerce or economic development. The states then help small businesses pay for a range of exporting-related efforts.

Pipeline Opens Applications for 2018 Regional Class Pipeline is accepting applications for its 2018 Entrepreneurial Fellowship. Entrepreneurs who are selected will learn from entrepreneurial leaders from

around the world. Entrepreneurs who enter the program are typically ready for growth.

As part of the program, entrepreneurs have access to a renowned national network of business experts.

Applications close on October 19.

To learn more about applying to Pipeline visit www.pipelineentrepreneurs.com.

New Online Resource Promotes Kansas Entrepreneurship NetWork Kansas, in collaboration with Sourcelink, has launched a website designed to advance entrepreneurship in Kansas.

The portal at www.networkkansas.com connects companies with resources and features streamlined navigation, mobile responsiveness and a modern design. The site also offers an easy-to-search database of resources, a calendar of business events and a blogging platform.

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Artist INC Moves to Mid-America Arts Alliance, Expands Footprint Artist INC—which delivers entrepreneurship and career training to the region’s artists— has spun out of the University of Missouri-Kansas City’s Innovation Center.

Moving forward, Artist Inc will be under the umbrella of the Mid-America Arts Alliance, a KC-based nonprofit that supports arts programs in six states. Artist INC is now housed in M-AAA’s offices at 2018 Baltimore.

KS Department of Commerce Awards Several Kansas City companies were honored at this year’s Kansas Minority and Women Business Awards Luncheon on Oct. 5.

Local minority-owned business winners at this year’s MED Week include Recyclable Materials Relocation LLC (Construction); LaborMax Staffing KC Metro (Professional Services), Paleterias Tropicanas (Retail); and SARIN Energy Solutions (Supplier/ Distributor). Women-owned business winners from the Kansas City area are MySmartPlans (Construction); FSC Inc. (Professional Services); Sage Restoration LLC (Service Industry); International Express Trucking Inc. (Supplier/Distributor).

Plus, Sandra Olivas of the Bank of Labor has been named the Minority Business Advocate of the Year. Debra Kunz of the Center for Deliberate Growth is the 2017 Women Business Advocate of the Year. Paul Kaster of Crooked Branch Studio is the Young Entrepreneur of the Year.

SourceLink Wins International Award

342 N Water St, Liberty, MO www.SaintJamesEvents.com

10

THINKING BIGGER BUSINESS // October 2017

SourceLink is earning international recognition for its work. During a recent conference in Toronto, the International Economic Development Council presented SourceLink with a Gold Excellence in Economic Development Award. It won in the annual report category for “KCSourceLink Annual Report: We Create KC.” “We Create KC” is a regular series of updates on Kansas City’s progress as a hub of entrepreneurship.

BIG | deals

AWARDS/RECOGNITIONS Cambrian Tech Wins 100K at LaunchKC Cambrian Tech was the top winner in the 2017 LaunchKC grant competition. It took home $100,000 from Techweek Kansas City. The company created Home Harmony, an augmented-reality app that lets users instantly see what their homes would look like with different paint or flooring.

Eight other companies were each awarded grants of $50,000 during a ceremony on Sept. 15: H3 Enterprises, HerdDogg, iShare Medical, Music Spoke, PlanIT Impact, Sickweather, TradeLanes and Zitches.

In addition to the grants, winners are provided free office space for a year, mentoring and other support.

Tom’s Town Gin One of “50 Best Gins” in U.S.

Startups Compete at Pure Pitch Rally Local startup Pennez was the top finisher at the second annual Pure Pitch Rally, a showcase for Kansas City’s most promising companies. Rebecca Dove and her team have developed Read2Think, an AI-based app that gauges how well children read. Pennez took home $8,000, along with a year’s worth of space at Plexpod and credits for Amazon Web Services.

Dominique Davison and PlanIT Impact received $6,000. PlanIT Impact is a new tool for modeling the impact that an architectural and engineering design can have in its proposed neighborhood.

Susan Tyrell’s company, Premier Elder Solutions, which helps family caregivers

coordinate their efforts and store their loved one’s essential data in a safe but accessible place, received $5,000.

NEW BUSINESS Waffle Bar Opens on the Plaza Rayan Awad and Marwa Noaman opened the Waffle Bar at 4745 Central St. in early September. The store serves bubble waffles and waffle pops dipped in icing or topped with ice cream and a selection of 18 toppings.

‘Scoreboard Bingo’ App Debuts for MLB Playoffs Entertainment to Go, a company that provides DJ services, event lighting and party continued

When you want to hire the BEST,

Call the BEST!

Tom’s Town Distilling Co.’s Corruption Gin

has earned the title of one of the 50 Best Gins in America by The Fifty Best, which rates the world’s finest in wines and spirits.

Redivus Health Recognized Redivus Health received an honorable mention in Fast Company’s Innovation by Design Awards. The company also recently won Best in Show honors in the Fierce Innovation Awards, a national healthcare awards competition. Locally, Redivus was named one of the 20 finalists in the LaunchKC global grants competition.

StinkBOSS Wins Big on FUNDERDOME StinkBOSS won $100,000 from Steve Harvey’s FUNDERDOME competition on ABC. Created by Hillary Philgreen, the StinkBOSS is an all-in-one dryer, sanitizer and deodorizer for smelly shoes and sports gear.

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11

BIG | deals

planning, has debuted a new app called Scoreboard Bingo to help sports bars keeps customers engaged. Owner Mike Shortino came up with the idea of turning watching baseball into bingo while doing a music bingo show with his son. The Shortinos worked with Webb Technology Group to build the app.

service to complement their snow removal service for commercial customers.

EXPANSION Farm Data Company Offers Enhanced Subscription Service Farmobile has launched a new subscription service for farmers called Farmobile Pro. Farmobile helps farmers collect and own their agronomic and machine data.

More Than Snow Removal Grandview, Mo.-based Snowmen Inc. has launched a year-round property maintenance

MarksNelson Introduces Entrepreneurial Services Practice Local accounting and business advisory firm MarksNelson has launched a new national practice targeted to small and medium-size businesses. The firm’s Entrepreneurial Services for small enterprises will offer cloud-based technology and outsourced accounting help.

MERGERS & ACQUISITIONS Trozzolo Acquires Proventus Proventus Consulting—a marketing, PR and business development consultancy serving the legal field—is now part of Trozzolo Communications Group. Proventus will retain its name and be housed in Trozzolo’s headquarters in downtown Kansas City.

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|

THINKING BIGGER BUSINESS // October 2017

105 S. JEFFERSON

|

816.635.2479

Home Care Companies Merge Hearts at Home In-Home Care of Overland Park and Cornerstone Assisted Home Care of Lenexa have

merged their agencies. They will operate under the Hearts at Home name.

ON THE MOVE Sign Company Moves to New Location Image360 Kansas City Midtown, a company that provides signage and other graphic services, recently held a ribbon cutting and open house for its new location at 1140 W. Cambridge Circle Drive.

A Big Dose of “New” Steppin’ Out the Studio, a dance studio in

Lee’s Summit, has a new leader, new name and new location. Founder Phyllis Balagna, who is retiring after 28 years, has turned the studio over to her daughter Jennifer Balagna.

The studio will now be called the Kansas City Dance Company, and its new home is at 838 S.W. Blue Parkway in Lee’s Summit.

The Sundry Relocates, Forms Alliance with Plexpod The Sundry has moved from its Crossroads location to Plexpod Westport Commons.

Plexpod is negotiating with Cultivate KC to create an onsite urban farm in its green spaces. That would allow The Sundry to offer the farm’s products in its kitchen and market. Owner Ryan Wing is also in the early stages of developing a culinary makerspace called The Sundry Food Lab for product development and collaboration.

The move is the first step in what Wing sees as a potential national expansion opportunity. Next steps include the launch of a quick service, grab-and-go concept at Plexpod’s Lenexa location. That endeavor will be called The Sundry Essentials. Plans are in the works to open a full-service Sundry with Plexpod in the Commerce Tower at 911 Main by early 2018.

Affinity Venture Partners is a family of companies within the larger Affinity Worldwide organization, focusing primarily on support and service to the residential real estate investment sector. Supported by a capable team of talented industry professionals, these companies represent the very best in their individual industry verticals.

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Hickory Global General Contractors is a Kansas Cityarea operation specializing in residential new construction, remodeling and tenant finish and commercial remodeling, taking projects from design concept to completion.

We are currently hiring skilled tradespersons for residential builds.

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Parkway Property Management takes much of the headache out of owning and managing rental properties by assuring quick rent payments– within 10 days of our receipt. We also perform weekly property inspections when vacant.

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2 5 U N D E R 2 5 ® U P DAT E S

Alight Snags Memphis Grizzlies New Marketing Solution J. Schmid & Associates (Class of 2002) and Boston-based QuickPivot have introduced a

new marketing solution for multi-channel retailers. The cloud-based product brings multiple data platforms together and is designed to help mid-market retailers link their direct mail and digital marketing efforts.

Wrenn Acquires CBG Mike Wrenn, owner of Wrenn Insurance (Class of 2005) and Affinity Group Management (Class of 2011), has acquired Community Buying Group, a membership program that connects real estate investors, contractors and property managers to members-only savings at dozens of retailers.

The acquisition was made by Think Realty, another company that Wrenn owns.

The Memphis Grizzlies have selected Alight Analytics (Class of 2014) to deliver advanced analysis and measurement of the team’s marketing performance. Alight’s Insight Analytics Group will be helping the Grizzlies measure and analyze their marketing campaigns for ticket sales and delivering metrics on campaigns, content and promotions.

Shatto Milk Takes Best of Show Shatto Milk Company (Class of 2006)

racked up several honors at the 2017 Missouri State Fair, including Best of Show for their garlic butter.

a new unit called Barkley Health & Finance.

Meers’ CEO Sam Meers is the executive vice president of Barkley Health & Finance.

The Meers staff relocated to Barkley headquarters as part of the deal.

Biotech Lab Relocates Likarda (Class of 2015) has relocated from

its incubator on the KU Medical Center campus to a facility near the former Marion Laboratories campus in south Kansas City.

The move more than doubles Likarda’s square footage. The company plans to hire an additional 16 employees.

Trademark Registration Granted Freedom Bank (Class of 2011) has been

granted a registered trademark on the term Guest Plaza, the name of its unique retail banking delivery model.

Meers Advertising Joins Barkley Barkley has acquired Meers Advertising

(Class of 2002), which will become part of

Tradeshow Booths Museum Exhibits Corporate Displays

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816.474.5333 sales@exhibitassociates.com SMART COMPANIES THINKING BIGGER®

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BIG INFLUENCE | SOFT VU

Kansas City SCORE

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

SoftVu’s Firm Commitment to Community Service Summer event raises $15K for a string of charitable projects.

The team at SoftVu stays busy creating automated marketing campaigns for their clients in the mortgage banking and senior living sectors. But they still find time to make a difference in the community.

This summer, for example, SoftVu helped raise $15,000 at its annual Mortgage Innovation Summit, which showcases the newest, brightest ideas from industry leaders. This year’s attendees donated three times what was raised last year.

That money will go to the nonprofit Mortgage Professionals Providing Hope. The funds will be used to build a play place for preschoolers in Guatemala, support 12 children in rural India for a year and help five homeless American families find permanent housing.

“Being a positive role model every day isn’t just for athletes and clergy,” said Tim Donnelly, SoftVu’s president and CEO. “Everyone in a leadership position has the responsibility to be a positive and ethical example to those around them because it has a ripple effect—good begets good.”

Closer to home, SoftVu employees have contributed to fundraisers and charity drives for groups such as Giving the Basics, Big Brothers Big Sisters of Greater Kansas City, Harvesters and the Don Bosco Center.

Donnelly‘s motto is: “Work to live, live to serve for the Greater Good.”

Giving back has become such a part of SoftVu’s culture that its community service team has its own nickname. They’re the VuGooders.

“When we can put our team focus, if even for an afternoon, on someone in need, that elevates our community—locally, nationally and globally,” said Donnelly.

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THINKING BIGGER BUSINESS // October 2017

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

MUSIC SPOKE

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

A Louder Voice for Sheet-Music Composers (Photo courtesy of Austin Walsh Studios)

MUSICSPOKE PROVIDES MARKETPLACE FOR SELF-PUBLISHED MUSIC. he global music publishing market is worth more than $11 billion, and choral sheet music makes up about $1 billion of that.

MusicSpoke, an online marketplace for selfpublished sheet music, provides a platform for composers to tap into that sizable market.

Jennifer Rosenblatt and her husband, Kurt Knecht, a music composer, conductor and educator, established MusicSpoke to address a widespread problem in the sheet music publishing industry.

Traditionally, composers earn royalties of 4 to 10 percent from music publishers. They also must sign over copyright, relinquishing their intellectual property.

“The composer makes the least amount of money and has the least amount of power,” Rosenblatt said.

Knecht and Rosenblatt realized this inequity 20 years ago after he published several works and earned nominal royalties.

Fast-forward to the advent of the internet, digital self-publishing and e-commerce. The couple’s online research revealed that no centralized, searchable database or online marketplace for self-published choral sheet music existed.

Further, too many composers’ websites weren’t set up so music educators and other potential customers could easily buy from them.

“We developed the idea in 2013 when Kurt went to a conference,” Rosenblatt said. “At a seminar on self-publishing, there was a backlash from composers that didn’t want to give up so much money.”

T

ENTREPRENEURS

Jennifer Rosenblatt and Kurt Knecht C O M PA N Y I N F O R M AT I O N

MusicSpoke 210 W. 19th Terrace, Ste. 200 Kansas City, MO 64108 (844) 687-7653 www.musicspoke.com TYPE OF BUSINESS

Digital marketplace for self-published choral music YEAR FOUNDED

2014

MusicSpoke was designed to be a hub that connects buyers and sellers, while delivering a consistent, user-friendly experience.

Rosenblatt and Knecht formed a startup within the Lincoln, Nebraska, accelerator NMotion and set to work validating their business model.

MusicSpoke would not act as a publisher that issued royalties. Rather, composers upload work to MusicSpoke’s site, reach a network of buyers, sell digital downloads, retain copyright and earn more with a 70-30 split of sales with MusicSpoke.

As an add-on service, MusicSpoke fulfills and ships printed sheet music orders for composers.

“We have two sets of customers: composers and buyers,” said Rosenblatt, who relocated to Kansas City with Knecht in July 2016. “Composers can earn income and focus on making art. Buyers are able to have a simple, consistent experience.”

Today, MusicSpoke features 130 composers, 1,100 scores and 11,000 buyers with a waiting list of composers seeking to join the platform.

“When we launched, we thought the market would be wide open and democratic,” Rosenblatt said. “We morphed into a standard of quality for self-published music. We have an editorial board that curates our composers as we build a reputation for quality on the platform.”

MusicSpoke recently won a $50,000 grant at the 2017 LaunchKC competition.

Pete Dulin is a freelance writer based in Kansas City, Mo. // www.petedulin.com SMART COMPANIES THINKING BIGGER®

17

AT A G L A N C E K C

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

BIG STARTS | ZOHR

MADE TO LAST | O’MALLEY’S PUB

O’Malley’s Pub Thrives as an Underground Attraction Childhood friends and homebrewers Michael Coakley and Corey Weinfurt became the owners of O’Malley’s Pub, Weston Brewing and American Bowman Restaurant in 2005.

Tired of the Tire Shop?

Meet Zohr COMPANY // Zohr ENTREPRENEURS // Brothers Komal Choong and Anoop Choong WHAT THEY DO // With local startup Zohr, you don’t have to waste

half your Saturday waiting at the tire shop. Just go online, schedule an appointment and Zohr will come to you. It uses the most advanced equipment available to put new tires on your car—whether you happen to be at home, at work or stuck on the side of the road.

THE INSPIRATION // “We’re car enthusiasts and have never

enjoyed visiting the tire shop,” Komal said. “We always felt a serious lack of trust at traditional shops that makes the current industry experience mediocre at best. … We chose to build the business on a completely different set of values, including convenience, honesty and transparency.”

That approach is working: The company has more than 500 fivestar reviews.

Last year, the Choomgs were selected for the Y Combinator’s fellowship program, which allowed them access to the organization’s vast resources and network while staying in Kansas City.

WHAT’S NEXT? // Zohr has three vans in its fleet, but it’s planning

to add vehicles, staff and—sometime in 2018—other cities. Tire service might just be the start of what the company offers. While they’re changing your tires, they might someday change your battery or oil, too.

HOW TO CONTACT // (844) 438-9647, info@zohr.com, zohr.com 18

THINKING BIGGER BUSINESS // October 2017

In doing so, they became part of a story that stretches back 175 years.

The Irish pub and live music venue operates in one of five stone cellars. Established in 1842, the original Weston Brewing Company stored and chilled lager beer in oaken tanks in the cellars.

“Patrick and Barbara O’Malley opened the restaurant in 1977,” Weinfurt said. “They cleaned and rented the cellars for wine storage in the early ‘80s.”

The cellars were also used for dinners and live music on weekends.

The lower cellar was opened to the public for Irish Fest in 2000 and later started opening on weekends.

“The restaurant and pub have endured in part because of the [cellar’s] unique structure,” Weinfurt said. “The brewery has been more a matter of stubbornness.”

Weinfurt and Coakley learned how to build their business by “studying failures.” Weinfurt said, “It’s always inspiring to read a feel-good story. Knowing what can knock you out and dodging it is also a great feeling.”

Weinfurt considered the long-term, dedicated staff as the company’s greatest achievement.

“We started with the two of us, one full-time employee and maybe 10 part-timers,” he said. “We are now more than 70 people. Working with people you like to make your living and build things together is really rewarding.” https://westonirish.com/brewery-history

KC MADE IT K C

MOON MARBLE

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

For All the Marbles BONNER SPRINGS’ MOON MARBLE COMPANY CELEBRATES 20 YEARS IN BUSINESS. usiness partners Bruce Breslow and Lynda Sproules consider themselves lucky—every day, they go to work doing what they love. And after two decades in business together, they haven’t lost their marbles!

The two of them own Moon Marble Company, located in Bonner Springs near the intersection of Kansas 32 and Kansas 7.

The company, which is celebrating its 20th year in business, carries hundreds of marbles as well as handmade wooden games and toys for kids of all ages.

But they do more than just sell marbles: Every year, thousands of students and other customers visit the shop to see how marbles are made.

“Marbles took over our lives,” said Sproules with a laugh. “We carry peewees and shooters, toebreakers, pearlies and boulders—up to 100 different designs …. We also exhibit and sell the work of several dozen prominent glassworkers from across the country.”

B

KANSAS-MADE MARBLES

Breslow and Sproules got into marbles out of necessity.

“I worked with Bruce in his woodworking business, and there were all kind of things including toys,” Sproules said.

The pair sold board games at the Kansas City Renaissance Festival, and the games

needed marbles to go with them. Breslow searched for marbles similar to the ones he played with as a child and found a U.S. manufacturer. He ordered a case of every style and color.

After those 85,000 marbles were delivered, word got out about Breslow’s supply, and people started coming to the workshop to buy directly from him. The front of the shop soon became the marble display and retail operation.

Then after Breslow hosted his sons’ Cub Scout den at the workshop and taught them how to play marbles, other organizations started asking if they could come visit.

Breslow and Sproules officially opened Moon Marble in 1997. Sproules said most of the store’s marble inventory comes from other places, such as Mexico, England and West Virginia, home of the only remaining U.S. manufacturer. Orders arrive from around the globe, from as far away as Germany, Australia and New Zealand.

But Breslow also makes his own marbles during free demonstrations that are open to the public.

He learned the craft after his wife gave him a MAPP gas torch and some pieces of Moretti soft glass from a local store. Breslow researched the process and contacted a Colorado glass distributor, who walked him through the process.

Breslow used his own finely honed skills as a woodworker to craft his own marble molds.

Depending on the marble’s complexity, the production process can take anywhere from 20 minutes to several hours.

‘RUN THE BUSINESS LIKE WE’RE THROWING A PARTY’

Moon Marble isn’t just a store. It’s also an experience.

The shop hosts an annual art show and participates in a yearly outdoor festival revolving around traditional play and marbles.

Over the years, Moon Marble has received numerous awards, including the Rand McNally Top 20 Best of the Road award.

The Kansas Sampler Foundation, which is dedicated to preserving rural culture, has recognized the company as one of the top Eight Wonders of Kansas in the area of commerce.

Residing in Bonner Springs has been the perfect location for Breslow and Sproules to grow Moon Marble.

“It is great, because of its vicinity to Kansas City and a large population of people and schools to attend our field trip program,” Breslow said. “It is in the heart of America, and we receive travelers from all over the country and all over the world.”

With the start of school and the Kansas City Renaissance Festival, fall is a busy season for Moon Marble. Longtime participants at the annual festival, Moon Marble sells swords and shields at the event.

“We run the business like we’re throwing a party, always trying to think of ways to make an experience that is fun and interesting,” Breslow said.

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

SMART COMPANIES THINKING BIGGER®

19

KC FUTURES

( by Kate Leibsle)

Data Under Your Feet, At Your Fingertips KC’S LIVING LAB COULD REVEAL KEY INSIGHTS FOR ENTREPRENEURS.

1. The streetcard kiosks (right) are one of the sources of data. The data is subsequently collated and shared with potential entrepreneurs in the Living Lab.

2 . The streetcar helps define the zone where the smart city sensors are focused. The kiosk in the lower

ob Bennett is ready and five or 10 years ago,” Bennett said.

B willing to share. The With the data being collected, chief innovation officer for you can figure out how to park the City of Kansas City, Mo., your food truck at the right is very eager to give away places at the right time to the data being gathered by catch potential customers— sensors along the downtown some you may not have ever streetcar route. reached otherwise.

The data—which reveals a The information could Bob Bennett wealth of insights about downtown be leveraged to solve problems life—is a big piece of the next stage in on a global scale, too. To that end, the city’s Smart City strategy: The Living Lab the Department of Energy’s National is a partnership with Think Big Partners to Laboratories have requested use of the data. get data to those who can use it for study and The Living Lab’s data can be accessed via commerce. The lab allows virtually anyone an application process that can be started access to the data being collected by the by contacting Think Big Partners or by sensors, which were installed underground going to kclivinglab.org. The team at Think when the streetcar was built.

Big is housing the data on its servers and The potential uses for the information are can mentor and consult with entrepreneurs really only limited by those who are using it, as they work with the numbers.

Bennett said. The data will show a great deal LOOKING AHEAD about the biorhythms of the city, at different The Living Lab is just the next step in the times of day and in some places that haven’t city’s overall effort to expand our connectbeen studied or monitored before. edness and use technology and data to HOW DOES IT WORK? make our lives easier and better. Already, Here’s a simple example: Let’s say you are the sensors and kiosks are giving the public a food truck entrepreneur, and you have been real-time information about parking, traffic wanting to test out a new location. It’s easy flow and pedestrian hotspots, as well as the to figure out that having a location along location of the streetcars. the streetcar route is a good idea, but what Bennett is assisting the city of St. Louis about just a block or two away? That takes a and some groups in Austin, Texas, as they bit more customer knowledge and foresight. tackle Smart City projects.

Hiring a person or a firm to do a report As for the progress Kansas City has already on pedestrian and vehicle traffic patterns made, he is optimistic that the success will probably isn’t practical nor feasible. continue as his focus shifts to the East Side But hooking into free, reliable data someand he works on improving Wi-Fi connections one else has collected? That’s a no-brainer and data collection there. for anyone, no matter what size business you “I look forward to what develops,” he said. currently operate.

“We have put the project in the oven. We Thanks to the streetcar and the changes followed the recipe, we heard it tastes good, in downtown living, working and recreation and now we are ready for dinnertime.” patterns over the last few years, there are “probably footpaths there that were not there Kate Leibsle is a freelance writer in the Kansas City area.

20 THINKING BIGGER BUSINESS // October 2017

right of the photo collects data. The WWI Museum and Memorial will be part of the streetcar expansion plans and WiFi zone that will proceed on Main Street past the Memorial. 3. The Innovation District, where the Living Lab is located, is the home to Kansas City’s burgeoning startup community. 4. A typical First Friday on the streetcar—lots of data to collect. (Photos courtesy of the City of Kansas City, Mo.)

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SMART COMPANIES THINKING BIGGERÂŽ

21

ENTREPRENEURIAL JOURNEY K C

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

At Morgan Miller Plumbing’s 20th anniversary celebration earlier this year, employees presented founder Jeff Morgan with a quilt made of the company’s t-shirts from over the years.

Moving Down the Line Jeff Morgan started plumbing for his successor from his first day in business. He’s found that person in Stella Crewse.

J

eff Morgan is blunt about his inspiration for starting Morgan Miller Plumbing.

“I started because of the way I was being treated, in combination with I felt like I was

22

THINKING BIGGER BUSINESS // October 2017

getting older and if I didn’t do something soon, I was never going to do anything and I just couldn’t live with myself. I couldn’t take it anymore,” he said.

So, he gave his resignation the second week of January 1997. “My first day in my new company was February 1, 1997. I got on the phone and stayed on the phone until I had enough work for the next day. That was my business plan,” Morgan said.

The son of a son of a plumber, Morgan started his own career in plumbing in May

1978 when he joined his brothers in the family firm. Still, he wasn’t happy with himself. “I’d been in and out of trouble as a teenager, and I was mad about not giving myself a better opportunity,” he said.

Even as his career progressed, he didn’t forget that. It’s what drove him.

When he finally did decide to strike out on his own, he was determined to build something that would outlast him—that would give someone else an opportunity.

“One of the very first things I thought about when I started this gig is that I wanted to build something that lasted longer than me—that when I closed those doors for the last time, the business still carried on,” Morgan said.

Morgan found that person in Stella Crewse, someone he didn’t have on his radar to be his successor when he hired her 14 years ago.

Taking over the company wasn’t exactly on Crewse’s front burner either.

“I took the job because I was looking for a way out of corporate America, it was close to home and it gave me freedom from wearing pantyhose every day,” Crewse said.

Little did she know that she had joined the company in the midst of a transformation.

Morgan had just let half the employees go, and a stack of bills piled high on her desk greeted her when she arrived for her first day. Morgan had taken on new projects that weren’t providing the margins needed.

“I put a high water mark up and asked, ‘Can we make this stack go down?’” Crewse said.

On Fridays, Morgan would go around and collect money from different contractors.

When he returned, he and Crewse would dance around the office and say “‘Hey, we’re still in business.’ We had fun with it. We take our jobs seriously, but we don’t take ourselves seriously,” Morgan said.

Crewse’s role grew over the years as Morgan gave her more and more responsibility.

“Eventually I had done everything but hop in a truck to do the plumbing,” she said.

Now, as the company celebrates 20 years, Crewse is part owner and CEO of Morgan Miller Plumbing. She and Morgan are exploring options for her to take 100 percent ownership eventually.

“One of the very first things I thought about when I started this gig is that I wanted to build something that lasted longer than me—that when I closed those doors for the last time, the business still carried on.”

Jeff Morgan

Morgan and Crewse have learned a lot about running a business over the years. Here are just a few: Do what it takes to keep good employees.

Morgan said that Crewse nearly quit after 90 days because she couldn’t afford health insurance. Knowing he couldn’t afford to lose her, Morgan decided to pay the insurance himself. “You’ve got to be aware of these little signals that come in when these people are really trying to help you carry on your vision.

You’ve got to acknowledge it and do what you can to help the person out.”

1

Give people room to grow.

“That guiding light helped me to try to attract the right people,” Morgan said. “I failed numerous times bringing partners in and people I thought could elevate this company.

So, if you’re afraid of failure, you’re going to be in big trouble. You’ve got to be willing to fail brilliantly.”

2

Don’t be afraid to let yourself change.

Sitting on the sidelines, Crewse watched Morgan make a lot of mistakes and work through them. About five years ago was a big turning point. Morgan said that’s when he and Crewse started developing a five-year plan “to get me out and let her run the place.” He said no one else really knew it at the time. “We were just kind of practicing,” he said. “Seeing how it went. After three-and-a-half years, she asked me to leave.”

With Crewse running more and more of the company, Morgan would unintentionally

3

cause problems. He wasn’t always fully aware of the issues and would get in the middle of things.

When Crewse asked him to step back, that created “a whole new set of magic,” Morgan said. “It elevated roles for everyone, and it allowed me to do something I’d always dreamed of. It allowed me to go overseas and help in a third world nation do some plumbing.”

Communication is key.

Both agree they don’t always agree on everything. But they’ve always had an easy dialogue. Morgan said, “We don’t get along 100 percent all the time, but that’s where we really grew.”

By talking candidly with each other, they learned to create efficiencies and develop strategies.

“He’s still my mentor,” Crewse said.

Morgan’s advice to business owners thinking about hanging up their cleats, but who haven’t fully embraced it: “Allow yourself to find your Stella. Allow the people who show the aptitude—and who give you the ideas—the opportunity to implement those ideas. If you implement an idea of an associate, they’ll come up with a half dozen more. All of a sudden you’ve got a different associate, someone who feels ownership. One thing I always say: ‘Act like you own this place, whether you do or not, and I’ll treat you like you do.’”

Crewse added, “Don’t feel threatened by strong employees with ideas. Surround yourself with great people who have great ideas.

They’re only going to make you better.”

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SMART COMPANIES THINKING BIGGER®

23

DIVERSIFYING ACCOUNTS Although Arboles serves residential clients, commercial and government work now makes up about 80 percent of the business.

24 THINKING BIGGER BUSINESS // October 2017

KC ENTREPRENEURS

Branching Out Money doesn’t grow on trees. But Phil Lopez and Arboles Tree Trimming are finding a way to turn them into major revenue.

ENTREPRENEUR

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

Arboles Tree Trimming 5530 Inland Drive Kansas City, KS 66106 (913) 207-9303 www.arbolestt.com TYPE OF BUSINESS

Full-service tree trimming and removal YEAR FOUNDED

2006 E M P L OY E E S

22 KEYS TO SUCCESS

“I’ve always liked doing hard work.”

left // Phil Lopez, founder and

president. inset // Miguel Aguilar, climber.

(Photo courtesy of Kelly McGregor Photography)

I

f there’s just one lesson you take away from Phil Lopez’s story, it’s this: Hard work works.

Hard work is what’s allowed his company, Arboles Tree Trimming Inc., to win over marquee clients like the U.S. Postal Service, the Kansas City Chiefs and others across a six-state region. Hard work also helped Lopez and his team overcome a series of challenges that almost closed the company.

Over the past two years, Arboles—the KC Hispanic Chamber’s 2015 Hispanic Business of the Year—has experienced a surge in growth.

Whether the work involves routine trimming, clearing large stretches of land or responding after a severe storm levels the massive oak in your back yard, clients trust Arboles to do the tough jobs right.

“I like it,” Lopez said.

“I’ve always liked doing hard work.”

Case in point, Arboles was competing for a massive project a few years ago: A client needed to have 4,000 trees removed.

Most of the other tree companies submitted their bids after making a quick survey of the property with Google Earth. Lopez was the only one to actually walk the property.

And so he was the only one to notice that many of the trees were walnut, which he could salvage and sell for a very nice return.

The other guys asked for upwards of $100,000 for their services. Lopez bid about $5,000, got the job—and earned exponentially more selling the wood.

‘ALWAYS TREES THAT NEED TO BE TRIMMED’

Arboles’ crews roam all over, but home base is a lot in the Turner area of Kansas City, Kansas, just south of Kansas Avenue. Lopez modified an old shipping container that he uses as an office.

The company got its start back in 2006, when Lopez was working as an electrical lineman, picking up tree-trimming jobs in his spare time.

Like a lot of entrepreneurs, Lopez had always wanted to own his own business—but he wasn’t sure exactly what he wanted to do.

Growing up, he was close friends with the Nigro family, the operators of the long-running Nigro’s Western Store.

“Grandpa Nigro always told me if you want to go into business, get into something that’s in demand—that’s always in demand,” Lopez said.

“So I started doing a little tree trimming at a time.”

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

25

He didn’t have a ton of resources back then—just his F-350 pickup and a 20-foot trailer, which he borrowed until he could put together the $700 to buy it outright.

Lopez ordered some plain-Jane business cards and left them at a neighborhood café, in the Argentine library, at a friend’s gym in Parkville. He placed an ad in the Star, followed by some Craigslist posts that generated a lot of business.

Lopez’s first client was a woman going to school to become a massage therapist. He removed a big tree from her property for $600, but because she was a student, she only had enough cash to make installment payments—$250 at first, then $100 the next week, and so on.

“Every week, she’d call me and say, ‘OK, I’ve got a check for you,’” he said.

But more customers came calling because Lopez made a point of delivering superb service. Arboles’ cleanup is always top-notch, and if Lopez notices a client needs a little extra beyond the original scope of work, he won’t charge them. His team will just do it. His chipper can eat a 20-inch log— throwing a pile of brush into it isn’t a huge ask.

“I don’t like nickel-and-diming people,” he said. “And I don’t like being nickel-and-dimed.”

It isn’t only a question of being a good guy.

“It’s the work that we do, that’s what sells the next job,” Lopez said. “Anytime you do a phenomenal job for anybody, they’re going to tell five people. You do a horrible job, and they’re going to tell 200 people.”

Through it all, though, Lopez has never wanted for work, not even during the financial crisis.

“That didn’t faze me. At all,” he said. “Because I’m in demand.

There’s always storms. There’s always trees that need to be trimmed.”

‘I STUCK IT OUT’

A few years ago, Arboles started picking up more commercial and government business from clients like Roeland Park and the Unified Government of Wyandotte County and Kansas City, Kansas.

The railroads are a strong source of work. So are local utilities—Lopez and his team recently wrapped up a job where they removed several trees to make way for a big new sewer line.

26 THINKING BIGGER BUSINESS // October 2017

Today, commercial and government projects account for about 80 percent of Arboles’ business.

Arboles still serves residential customers, including those who need help after bad weather, but Lopez likes the commercial and government jobs because they’re a little more predictable.

But the growth presented a problem, too. To keep up with demand, Lopez decided to make a major investment in equipment a few years ago.

“Things got tight for me where I made some mistakes by jumping

the gun and spending a lot of capital for equipment,” he said.

And naturally, that’s when one client declared bankruptcy— without paying $50,000 owed to Arboles.

That was a tough time. Lopez fell six to seven months behind on his mortgage and nearly lost his house.

“A lot of guys probably would’ve just turned up and said, ‘I’m out,’” he recalled. “But I stuck it out, stuck it out, stuck it out. Shoot, I worked—I did some serious long, long days.”

“It’s the work that we do, that’s what sells the next job. Anytime you do a phenomenal job for anybody, they’re going to tell five people. You do a horrible job, and they’re going to tell 200 people.”

Phil Lopez // Founder and president

into a savings account,” he said.

“And that’s my line of credit.”

He knows there’ll be other rough spots—they’re inevitable. But he’s got justified reason for optimism.

“I’m on the other side of the worst part of the growing pains,” Lopez said. “I know there’s more growing pains ahead of me. But I think I’m past a lot of the real hard stuff.”

‘IF I CAN GET THERE, I WILL’

inset // Roman Aguilar, climber. (Photo

courtesy of Kelly McGregor Photography)

When his equipment broke, he didn’t have the money to pay for repairs. So he’d go to the junkyard to find replacement parts and make the fixes himself.

He drew inspiration from his grandfather, a Mexican immigrant who served in World War II, and his dad, a Navy veteran who became a KCK police officer.

They never gave up, so neither would he.

It took time, but eventually, Lopez’s hard work put Arboles back onto solid ground.

“I got back on top and overcame it and learned—you can do it,” he said.

The experience also taught him the importance of stockpiling cash for tough times.

“All my deposits that go in every day, every other day, whatever, 15 percent off the top goes

In the past year and a half, Arboles has gone on a hiring spree, increasing from five or six employees to 22—enough for four teams that can tackle projects across a larger area.

Not all of the new help is in the field.

“I’ve got a really, really good guy running the show for me,” Lopez said. “And I have two admins, and then I also have an accounting service working for me now, too. So I can kind of just relax a little bit.”

That gives him a little more time for the things he enjoys, like hunting and fishing. He used to do rodeo when he was younger, and he’d like to get back into that.

“But there are still times, I mean, I’ll work all through the night—36 hours, 48 hours straight—because something’s broke,” Lopez said.

Arboles has the money now to pay for repair work. When Lopez gets pressed into duty as a

mechanic these days, it’s because his team needs a broken piece of machinery back into the field ASAP. Typically, he spends more of time in meeting with clients, pursuing new business, but he also keeps his climbing gear in his truck in case he’s ever needed on a jobsite.

“Every now and then, if I have to, I’ll just throw it on and run up a tree real fast, get things moving,” he said.

As a result, he has walked into more than a few meetings with a little sawdust on his shoulders.

“Sorry,” he’ll tell people, “I just got out of a tree.”

So where does Lopez want to take Arboles next?

He tells a story about how, last year, the Powerball jackpot climbed to $1.6 billion.

“I said if I won that, I would buy every major tree service I could. I’d buy them all,” he said.

His friends and family didn’t believe him. “And everybody was like, why, when you could just go retire?”

He enjoys the work too much to just give it up. And in a few years, he can picture a larger Arboles, one with a team of regional managers covering a much larger geography.

“And one day,” Lopez said, “if I can get there, I will.”

James Hart is a freelance writer based in Kansas City.

SMART COMPANIES THINKING BIGGER®

27

BIGGER | growth S M A R T

( by Elizabeth McCormick )

S T R AT E G I E S

On a Fast Train to the Wrong Destination?

Good advice on direction, speed and avoiding leadership pitfalls.

H

ave you ever had a day where your wheels spin a bit slower? Have you noticed your team not putting in the usual miles at the office? Could it be burnout? The need for a vacation? Or is there something more underlying the malaise?

Your team may be dragging because—even though you gave them clear orders for your latest project and they took off flying at full speed—you plotted a course in the opposite direction of your desired goal.

Then, there are other times when a project is well underway and everything seems properly aligned, but there’s just no lift. Although tasks are getting completed and checked off the list, the project isn’t gaining altitude and accelerating. What’s happening? Your team

28 THINKING BIGGER BUSINESS // October 2017

might have started with a laser-focused goal, but everyone’s vulnerable to drifting off course if the proper guardrails and benchmarks aren’t in place to keep everyone on target.

There’s a world of advice on staying productive, but those activities don’t mean anything if your coordinates are off. And that may be one of the biggest wastes of time and energy you and your organization could experience.

Here are five tips to assure your leadership and team directives match the end result you envision.

Know Your Destination When you begin with the end in mind, you have a distinct vision of your desired direction and destination before instructing

1

your team to launch. It doesn’t matter how big or small your project is. If the direction, intention or desired outcome isn’t clear, it will be tough to fly your team to the dream.

Assume nothing, clarify everything and have it in writing. If some aspect is open to interpretation, close that loophole up. Or better yet, ask your team to contribute to the ownership of the project by being open to their quest for clarity.

Engage Your Team Once you have communicated the objectives to your team, start by having team members restate the goals and desired outcomes in their own words. This will quite naturally reveal any variance between what you intended and what they perceived.

You can also use this opportunity to start fleshing out the project, brainstorming with

2

the team and adding detail to your ideas.

This type of activity will help jump-start your team’s comradery and communication as you all begin working together toward a common goal.

Plan Your Work, Work Your Plan Once everyone is on board and the team is headed in the right direction, be sure you have established the proper “safety devices,” benchmarks and signposts to keep you and your team on track. That way, if there is any drifting off course, it will be recognized and realigned quickly without much time or effort wasted.

Ensure that work is broken down into manageable, measurable, short-term goals to aid in motivation and increase productivity. Work that is organized into logical segments also aids focus and self-management of direction.

Complex projects lend themselves to digressions and diversions. Spelling out where you should be and when keeps efforts centered on the essential goals originally intended.

Another way to encourage motivation and productivity is to take the time to get to know your “flight crew” and their strengths.

Don’t randomly dole out tasks; be strategic in aligning tasks with specific gifts and skills, allowing team members to take ownership of their part of the project.

3

Own Your Results As a leader, it’s your attitude, stamina, direction, commitment and work ethic that establish the environment and culture of your team—and, ultimately, the success of your project. If you are unclear of your destination, you can be sure your team will have a tough time understanding the purpose of the project and the directions you are trying to communicate.

One of the biggest reasons people drift is that the purpose of their task isn’t strong enough to keep them engaged. If this is happening, recognize it, take some time to clarify your purpose and your destination, and then let your team know you wish to communicate better as you share your vision more clearly and effectively with everyone involved.

Sometimes the best of plans just don’t deliver the intended results. It happens.

Maybe it was due to misinformation, miscommunication, not enough research, too many

agendas, a drastic change in the economy or an unexpected shift in trends.

Regardless of why it happened, own the results. Empower your team to help you assess what went wrong. Develop the proper benchmarks and guardrails to prevent that from happening again. And then map out a new flight plan to a better destination.

Collaborate, Share Your Progress It is important to communicate, collaborate and share your progress with the people that your project will affect most. That might be your staff, your clients or other stakeholders.

Your strategic plan very well could be a thing of beauty, worthy of a business textbook.

Your marketing department, however, may have new information that invalidates your project’s initial premise. If you tell them what you’re working on only after you’re done, you risk the success of your entire project.

Give progress updates to the people your plans will impact, so that changes can be

5

incorporated along the way. Sure, detours are inconvenient, but they’re better than a dead end.

Leadership on Course and at Full Speed If you embed a sense of direction into the planning of your new project—and if you include contingencies for changing conditions—your extra work will enhance your team’s productivity.

When the runway is clear, your direction is plotted and your flight plan is filed, you and your team can attain top speeds as you soar to success.

Elizabeth McCormick is a keynote speaker specializing in leadership, sales and safety presentations. She was recently named No. 4 on the list of Leadership Experts to Follow Online. A former U.S. Army Black Hawk pilot, and author of “The P.I.L.O.T. Method: The 5 Elemental Truths to Leading Yourself in Life,” Elizabeth teaches instantly applicable strategies to boost your employees’ confidence in their own leadership abilities. www.YourInspirationalSpeaker.com

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SMART COMPANIES THINKING BIGGER®

29

BIGGER | contracting S M A R T

( by Ann DeAngelo)

S T R AT E G I E S

How to Get–and Keep– Your WBE Status And what you should do if you’re denied.

W

omen’s Business Enterprise (WBE) certification is a powerful tool that has helped thousands of women entrepreneurs compete for contracts with the government and major corporations.

It’s important because, unfortunately, women-owned companies are still significantly underrepersented when it comes to those contracts, at negligible rates of 4 to 5 percent of male-owned businesses. Being WBE-certified helps level the playing field.

The Women’s Business Development Center (WBDC) is a regional partner for the Women’s Business Enterprise National Council (WBENC), the country’s largest third-party certifier of women-owned businesses.

We verify that companies really are womenowned and that WBE status only goes to the companies that actually deserve it.

Let’s talk about how your woman-owned company may qualify for WBE certification and avoid being denied or decertified.

What are the requirements?

WBENC certification requires that a company be 51 percent or more owned by a woman or women. Additionally, the female owner must also be able to manage and operate the business without control by or substantial dependence upon a male. She must have the knowledge and experience needed to run the business. She must be able to make critical decisions, such as the sale of assets, without veto authority from anyone else.

She must be in control of the company’s strategic decisions, as well as day-to-day operations. Certainly, she can delegate and rely upon employees to do their jobs, yet she must be able to control and manage them. In 30 THINKING BIGGER BUSINESS // October 2017

short, she must be the ultimate decision-maker.

To ensure that the companies that receive the WBE certification are, in fact, womanowned, -controlled, -operated and -managed, the application process is thorough. Applicants provide business and financial documents as part of their application.

These documents are reviewed by WBDC staff, and a site visit is made to every new applicant (as well as to renewing applicants on a less frequent basis).

Then a committee of trained corporate and WBE volunteers makes a recommendation whether to approve or deny the application for certification. WBE certification is valid for one year.

What May Trigger a Denial?

So far in 2017, fewer than 2 percent of the WBE applications received by the WBDC have been denied. We find that many denials are caused by outdated legal documents that no longer reflect the company’s managerial structure or operations.

For instance, let’s say a company that used to be owned by a father has been passed to his daughter. While the ownership documents were changed, the father still retains legal control due to bylaws that were never properly updated—and so that company would be denied WBE status. Such a denial could be avoided by ensuring that your company’s legal documents are current.

A change in ownership, control or operation can also be another common pitfall for

recertification denial. A woman owner’s involvement and percent of ownership must not fall below 51 percent.

These guidelines ensure WBENC certification maintains its value and certified WBEs continue to access quality corporations.

Can you appeal a denial of certification?

If your company is denied certification, you may appeal within 30 days by providing, in writing, your arguments and evidence as to why you are majority woman-owned, -controlled, -operated and -managed. Your appeal will be considered by a committee of trained volunteers, and if unsuccessful, you may then appeal to the national WBENC appeals committee. During the period of the appeal, your company will not be WBENC-certified.

If the denial is a result of a documentation issue that you are able to resolve, you can reapply after six months. However, the best way to avoid denial is to check your documents before application and reach out to us if you have questions.

If you have any questions about the certification process or whether you qualify, you can join the WBDC for its upcoming series, “Leveraging Certification,” on Oct. 25, or contact Ann DeAngelo at adeangelo@wbdc.org or (913) 971-1050.

Ann DeAngelo is the Women Business Development Center’s associate director of WBE certification for Kansas City. She delivers certification programs and services to enhance the sustainability and growth of local WBEs and helps drive bottom-line growth across various industries.

Join Us! Brew :30 is 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!

» Thur., Oct. 19, 2017 // 5:30-7:30 p.m.

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BIGGER | finance S M A R T

( by Jon Binder )

S T R AT E G I E S

Employers Face New Challenges as Wages Rise How to retain and reward your high-performing workers.

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fter a prolonged period of stagnant growth, wages are beginning to rise again in the labor market.

The Bureau of Labor Statistics (BLS) recently reported that the average hourly wage rose 10 cents in December 2016 and 2.9 percent year-over-year, which is the largest increase since 2009. In addition, OMNI Human Resource Management (OMNI) has observed that overall pay in the labor market has been growing by 2 to 3 percent annually depending on the type of job or function being performed.

Wages appear to be rising as unemployment is dropping and as many labor markets or geographic regions approach full employment.

However, wage growth still appears to lag the overall economic recovery, and forecasters 32 THINKING BIGGER BUSINESS // October 2017

still project slow wage growth for the foreseeable future.

Slow Recovery But even with average hourly earnings rising from 1.7 percent in 2014 to 2.9 percent at the end of 2016, critics argue that wages are still below par. With an inflation goal of 2 percent and productivity growth of 1.5 percent, experts suggest that average wages should be rising by 3.5 percent annually.

Economists also say that inflation-adjusted wage growth is still not where we saw it in the 1990s and early 2000s, and we have years of slow wage growth now to make up for.

Automation and globalization are key factors that have held wage growth down longer than in previous recessionary cycles.

Strong Growth Predicted However, a sea change may be upon us.

Experts are predicting that average wages will continue to increase at a faster rate.

They believe the labor market will continue to tighten and overall inflation will remain relatively modest.

These experts also argue that wages are a lagging indicator and that they have not fully reacted to the 2016 labor market. As such, workers in the highest-demand fields— engineering, high tech, health care—will benefit the most from increased wages at a faster rate than others.

So, what can we conclude? First, rising wages and full employment will make it harder for employers to retain and attract strong talent, increasing pressure on their bottom line. This may be even more true for certain in-demand skills, especially in sectors like technology, engineering and health care.

Second, pressure on annual merit or general pay increases is mounting, again bringing increased pressure on the bottom line.

Third, uncertainties around the Affordable Care Act place a greater burden on companies to be more creative with respect to compensation, benefits and all other rewards. Creativity in managing the mix of total rewards, along with other nontraditional elements of the employment offer, will be necessary to chart a financially viable course forward.

Employers Must Adapt There are several steps you can take to adapt to these changing circumstances.

First, consider raising compensation for consistent high performers and critical-skill employees. You could provide more aggressive base pay increases for high performers, or provide performance-based bonuses and incentive compensation payments, or a combination of both.

To fund these increases, consider reducing the amount of basepay increases to underperforming employees or those who are otherwise competitively paid for the value they deliver.

You might also consider incentive compensation payments in lieu of base-pay increases. This avoids the compounding growth of base-pay increases while still providing valuable reward opportunity for all employees and top performers, particularly if the incentive compensation payments are tied directly to employee performance—higher risk, higher potential reward.

In this scenario, high performers generate more aggressive rewards because of the value they create for the business, while underperforming employees naturally earn less because they have created less value. This approach works particularly well in environments that embrace high performance and clear lineof-sight employee goals.

Lastly, pay careful attention to non-compensation opportunities to retain and motivate key talent. These opportunities include, but are not limited to: » Career development and opportunities for employees to develop new skills or work on special projects. This enables engaged and proactive employees to enhance or expand their experience and capabilities, therefore enhancing their overall value. » Flex-time or remote work opportunities. This allows motivated and focused employees to create a more desirable work-life balance (and higher productivity) while strengthening their commitment to the organization. » Greater emphasis on total rewards—compensation, benefits, recognition—and adjusting the mix of these elements to address overall employee needs—medical benefits, retirement benefits, etc. » Philanthropic and community service opportunities that provide employees an opportunity to give back to the community while encouraging teamwork and enhancing the company’s overall image in the community.

Each of these opportunities, and others like them, provide opportunities to address important employee needs while balancing the overall financial investment in talent. Generally, employees appreciate their employer’s willingness and flexibility in engaging with them to address their concerns and interests, strengthening their emotional commitment to the organization.

Budget season is almost upon us. The time is now for employers to weigh these opportunities and to plan and budget for highleverage tactics that will attract and retain strong talent and deliver high return on their employee compensation investment.

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Jon Binder is senior consultant and compensation practice leader for OMNI Human Resource Management. jbinder@omnihrm.com SMART COMPANIES THINKING BIGGER®

33

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Roll It!

ADDING VIDEO TO YOUR MARKETING PLAN CAN BE A POWERFUL TOOL FOR MOVING YOUR COMPANY FORWARD. ideo popularity is surging: 78 percent of people watch videos online each week, and 55 percent watch them online every day. More video content is uploaded to the web in a month than television has created in the last 30 years.

V

That shouldn’t come as a surprise, considering that video is everywhere. It’s on YouTube, Facebook, a growing number of company websites, emails, social media and a host of other platforms.

So, the question is: Can your customers find your company through video?

If you’re not taking advantage of video, it’s time to consider adding it to your marketing plan. Here are the Top 6 reasons that more and more companies are incorporating a video strategy.

VIDEO BUILDS STRONGER EMOTIONAL CONNECTIONS. You know the adage: People buy from people they know, like and trust. Video involves more of our senses and creates greater emotional bonds— which are essential for building long-term, trusting relationships.

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VIDEO BUILDS HIGHER ENGAGEMENT. The Content Marketing Institute reports that audiences are about 10 times more likely to interact with—share, embed, and comment on—video than with other types of content. And, in a 2016 study released by Wyzowl, 76 percent of users said they would share a company’s video if it was entertaining.

SEARCH ENGINES LOVE VIDEO. Comscore, a company that measures and analyzes media, reports that adding a video to your website can increase your company’s chance of landing on the front pages of Google results by 53 times. Because sites with videos tend to keep people on the site longer, the search engines read that as a sign your site has good content—and you may be rewarded with a boost in the rankings. Of course, you also need to optimize the video with keywords and add appropriate links.

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VIDEOS ARE ACCESSIBLE. Tools for producing videos and platforms for viewing videos are becoming more accessible and affordable. Even SmartPhones can be used to produce videos that are suitable for certain purposes. And from an audience standpoint, the rise of SmartPhones has made video more accessible on mobile devices, delivering an even larger audience.

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VIDEOS ARE GREAT FOR CONVEYING A VARIETY OF MESSAGES. There’s a video format for most types of content you’re likely to need as a business: “explainer” videos, promotional videos, animated videos, videos that tell a story, interactive videos, video ads, videos for email and more. Each can help you accomplish specific goals.

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VIDEO CREATES MORE CUSTOMER CONVERSIONS. Not surprisingly, if you can establish a strong connection with your prospects and build trust (see #1!), you’ll likely see an increase in conversions. In fact, according to Hubspot, 90 percent of customers report that product videos help them make purchasing decisions, and 64 percent of customers are more likely to buy a product online after watching a video about it. Again, that’s not surprising since videos can help potential customers see your product in action. After all, if a picture is worth a thousand words, what kind of value can a moving picture bring?

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34 THINKING BIGGER BUSINESS // October 2017

If you’re ready to put the power of video to work in your marketing efforts, please give us a call at (913) 980-2649. Or, visit our web-

site at www.TheHeisenbergs.com.

We’re eager to begin co-creating!

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SMART COMPANIES THINKING BIGGER®

35

BIGGER | sales S M A R T

( by Colleen Stanley)

S T R AT E G I E S

Is It Time for Your Marketing Department to Ride With Sales Reps?

This best practice will produce three big benefits.

S

ales managers have long understood the power of going on ride-alongs with their salespeople. Riding together helps build relationships with the sales staff. And observing a sales call firsthand is the best opportunity to 36 THINKING BIGGER BUSINESS // October 2017

provide an immediate debrief of what worked or didn’t work in the prospect meeting.

Riding along isn’t just limited to cars. It also includes time invested on the selling floor, listening to calls and giving feedback in real time.

This all sounds good, but one important party is missing from the equation: the marketing department.

This is ironic, because the marketing department writes marketing copy for the

website and sales collateral. It is charged with creating marketing materials that speak to your potential customers.

Is it any wonder that your marketing and sales collateral doesn’t speak to customers?

It’s because marketing departments aren’t spending enough time in front of customers.

In some cases, it may have been years since their last visit.

CEOs, it’s time to quit talking about sales and marketing collaborating. Make it happen.

Establish KPIs that send your marketing team on ride-alongs with your sales team. This best practice will produce three big sales outcomes.

Elimination of Assumptions Your marketing department will hear the needs and wants of your prospects firsthand. No more playing the telephone game, where you end up with limited data about prospects’ needs because it’s provided through the filter of your sales team or surveys.

There’s hearing the main conversation. But also, it’s important to listen to the conversation between the conversation. You know, what’s not being said but needs to be heard. Both conversations will give you better clues about how to connect with prospects and clients.

1

Authentic Marketing Copy In the sales training world, we often call website copy and sales collateral “marketing

2

speak.” It is copy that is understood only if you work in marketing. Go to your website and ask yourself these questions: » Do my prospects speak this way? (No, not unless they’re all college professors.) » Does the copy talk about problems your organization solves or about what your organization does? (self-focused marketing copy rather than client-focused marketing copy?) » Does my website show empathy and understanding for a day in the life of my prospects? If your marketing director has never met your prospects, it’s pretty hard for your marketing materials to describe a day in their life.

3

Better Perspective Even the best salespeople can get tunnel vision. But when a marketing director shows up at a sales meeting, they bring a beginner’s mind. They aren’t bringing previous biases and

assumptions to the call because they haven’t logged hundreds of hours hearing similar challenges from prospects. This fresh perspective allows for new and more creative solutions for customers.

Marketing directors: It’s time to get in the car and pull up a chair. If you want to learn how to speak the language of your customers, you need to hear and observe sales conversations.

Colleen Stanley is the author of Emotional Intelligence For Sales Success” and “Growing Great Sales Teams.” She is an international sales keynote speaker and has been recognized as one of the Top 50 Sales Bloggers in the world for the last four years. She is the creator of the Ei Selling® System, a sales program that integrates emotional intelligence skills with consultative selling skills. Salesforce has named Colleen as one of the most influential sales figures of the 21st century. www.salesleadershipdevelopment.com

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SMART COMPANIES THINKING BIGGER®

37

BIGGER | hr S M A R T

( by Jill Johnson )

S T R AT E G I E S

4 Ways to Improve Intergenerational Decision-Making Here’s how to harness the power of multiple perspectives.

M

aking decisions is always difficult. It is hard enough when the decision needs to be made by a group of like-minded peers, but it gets even tougher when employees from different generations are involved in the process.

So what do you do? Bringing out the best among multiple generations of employees requires four critical approaches to ensure their decision-making involvement stays on track and helps produce a decision that matters.

Don’t Assume Everyone Has Enough Insight Careful consideration of all the available options is important. But don’t assume that everyone at the table has enough insight and information to participate effectively in the process. All too often they don’t.

1

38 THINKING BIGGER BUSINESS // October 2017

Established professionals can get locked into a black-or-white point of view that makes them hold fast to historical assessments of potential options. Younger participants may have a limited viewpoint about possible options and consequences, too. This is not because they are incapable of complex thought. It’s just that they often don’t have enough experience to engage in a more nuanced deliberation. » Make sure your intergenerational team has enough information so they can be more mindful in evaluating your options. Do they need to review any reading material in advance, such as an article about the critical issue you are going to address? » Write up a summary of the critical elements of the issue and why a decision needs to be made. » Set the stage at the outset by doing a comprehensive presentation at the first decision-making meeting.

Provide your team with clarity about why this decision is important to your business.

Don’t assume they already understand.

Clarify the Decision Parameters Keeping an intergenerational group focused is a challenge. They will careen from issue to issue unless you frame things clearly for them. Establish a framework of what must be considered and the boundaries for how far they can go when considering the different options.

If there are budget or staffing limitations, say so.

Make sure to clarify the boundaries of the group’s role in the decision-making process, too. Are they the decision-makers? Are they serving in an advisory function to others who will decide? Are they influencers with critical insight into key decision options? Put this in writing so no one can say later that they misunderstood or did not hear you say there were limits they needed to work within.

It is easy to defer to a group of enthusiastic young professionals, but unless you stay on top of them, they can go way beyond the appropriate parameters. This can result in very treacherous consequences, either in them going too far and in you dampening their enthusiasm for participating again.

Have tons of interim checkpoints and keep redirecting their discussion as needed.

It is also easy for younger team members to defer to older professionals, who are more seasoned and have more experience. But the older folks can also fall into the trap of only

2

Are Employees Entitled to View Their Personnel Files? thinking within a box of historical options, limiting consideration of new approaches to solving problems.

You need the insight of all generations at the table. But it has to be effectively channeled.

Unless your state has a regulation about granting employees access to their personnel files, you aren’t actually required to let an employee view their file. Generally, the personnel files are considered to be the property of the employer, not the employee, even though the file is all about them.

Manage the Decision Discussion Don’t abandon your team. You don’t have to be there for every work-group conversation, but you still need to manage the discussion. Most importantly, encourage candid dialogue. Clarify for everyone the stakes, the resources or information you need, and begin discussing the decision parameters.

Have your team walk through the potential outcomes of the options under consideration. Require them to discuss the pros and cons of each option. Encourage them to ask questions of each other to explore the consequences of the ideas being suggested.

Challenge them to ask if there is an element of this option that could be combined with something already reviewed to make a stronger option.

Approach this in a respectful manner. Carefully manage how the group communicates so those with strong voices do not drown out innovative ideas from more introverted participants who may lack the confidence to speak up.

If you get each of your participants deeply involved in the discussion, they will develop mutual respect and learn from each other. This enhances intergenerational communication and encourages a more collaborative decision dialogue.

But, there may be other occasions where you’re required to produce the personnel file. For example, you may be subpoenaed or be involved in a Department of Labor audit.

3

Manage Expectations With intergenerational teams, you should also manage their expectations about how much influence they will ultimately have on the decision-making process. It goes back to the role they play in the decision. Will they get a vote in the decision? Or will they be influencing how you decide? Carefully managing their expectations at the front end will help reduce angst at the back end if you are the final decider and go a different way than they recommend.

Make sure you develop feedback loops and mechanisms for follow-up. You will lose your younger team members if they don’t get periodic follow-up on the decision outcome. If possible, continue to involve the decision team in reviewing the progress of the decision implementation. Then they can help you adjust and adapt your decision strategy based on the evolving outcomes.

If you effectively manage your intergenerational decision-making efforts, you will create a team dynamic that is powerfully focused on resolving issues. At the same time, your team members will be building critical-thinking skills and learning how to work together for future decision-making.

What are the ways you can strengthen your company’s intergenerational decision-making to get better results?

4

Jill Johnson is the president and founder of Johnson Consulting Services, an accomplished speaker, award-winning management consultant and author of the forthcoming Bold Questions series. Jill helps her clients make critical business decisions and develop market-based strategic plans for turnarounds or growth.

Make sure all your personnel files are in order. The last thing you need are fines and penalties because your filing system is out of order. Several regulations govern employee recordkeeping. One is the Americans with Disabilities Act or ADA. You should keep medical records separate from other personnel records to avoid breaching the privacy of any employee on the basis of a medical condition. Remember, the file contents may have to be disclosed in the case of a legal proceeding, audit or in the normal course of business (i.e. review by the employee’s supervisor).

So, what goes in a file?

A number of items: employee resume, employment application, background check consent form, background check results, reference check record, copy of the employee’s new hire letter of confirmation of employment, federal and state W-4 Forms once processed (keep all copies), direct deposit authorization form, a signed copy of the employee’s position description, emergency contact, handbook acknowledgements, any internal memos regarding the employee, any disciplinary notes, any progressive discipline documents, payroll change confirmations, resignation letters and termination notes.

And what doesn’t belong?

Keep I-9 Verification Forms in a separate binder. Likewise, any medical information such as benefit enrollments, doctors’ notes, workers’ compensation information and anything else containing personal health information should be housed in a separate “Employee Medical Information” file.

And, remember to keep those under lock and key. You’re responsible if private information is breached.

Call us if you need help!

When you have an employee issue, you need a professional answer right away. The HR Help Desk is ready 24/7 to answer your tough HR questions.

Give us a call at (855) 474-2836 to find out how to subscribe to get real-time solutions and guidance for your HR challenges.

855.474.2836 | thehrhelpdesk.com

www.jcs-usa.com SMART COMPANIES THINKING BIGGER®

39

SCALEUP! KC

SARA NOBLE DESIGNS

( by Dawn Bormann )

A Bigger Business, By Design LEARN HOW NOBLE DESIGNS IS PREPARING FOR FUTURE GROWTH WITH SCALEUP’S GUIDANCE.

W

hen Sara Noble started Noble Designs 15 years ago, it was a part-time, onewoman show.

These days Noble’s business has a wait list full of customers clamoring to have the interior design firm give their homes a custom look. Noble Designs’ work has been featured in magazines and newspapers, and she now employs two full-time and six parttime employees.

The business has expanded rapidly over the past five years. To keep growing, Noble knew she needed a sound strategic plan for the future.

It’s why she applied for ScaleUP! Kansas City. Noble was one of the entrepreneurs 40 THINKING BIGGER BUSINESS // October 2017

chosen to participate in the elite program designed for growth businesses. It offers specialized classes, peer mentoring, professional guidance and more.

ScaleUP! Kansas City is offered by the UMKC Innovation Center and the U.S. Small Business Administration. It’s available to those who have been in business at least two years, generate $150,000 to $750,000 in revenue and are in a market capable of supporting more than $1 million in sales.

ScaleUP! allowed Noble to step out of the day-to-day busywork of owning a small business and plan for the long term.

“Taking this time to take on a managerial role and a leadership role in it has been really

important,” she said. “Some of the stuff is not necessarily rocket science, but you have to take the time to think about it, which I wasn’t necessarily doing before.”

A BETTER WAY TO RUN THE BUSINESS

Noble Designs is a full-service interior design business focused mainly on residences.

Noble describes her sense of style as classic with a twist of modern.

“We put together design plans that are custom for our client and reflect their family,” she said.

Noble also operates an online shop to sell her favorite pieces directly to clients. The store allows clients to get a better value on

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have pictures of a product in there with a description.”

The best part, Noble said, is that the program allows designers to make detailed notes about the order on the software program. That’s a small but significant detail given that no two orders are alike. Most furniture pieces are custom-ordered. Couch cushions are almost always upgraded, and fabrics are regularly swapped out based on the client’s tastes.

Keeping everything organized is essential in order to avoid costly mistakes that hurt the business’s bottom line and reputation. The software has been a huge help.

“It gives us one spot to hold everything,” Noble said. “And you literally push a button to create an order, push a button to create an invoice, and it’s all coming from one touch essentially.”

TEACHING THE HOUSE STYLE

several classic pieces while allowing Noble another way to make money,.

ScaleUP! has already had a dramatic effect on the daily operations at Noble Designs.

During a ScaleUP! classroom discussion, Noble learned about a software program developed specifically for interior designers.

It was the answer to several challenges her company was experiencing with accounting and project management.

“I’m not sure I would have searched out this tool if I wasn’t discussing these things in class,” she said.

The software allows a designer to use one computer system to order pieces and bill clients. Before, her team had to go back and forth between several systems to make sure the exact piece was ordered and billed correctly. The old way worked when the business was smaller, but Noble and her team had outgrown it.

“It’s going to be a better tool for our clients, too,” Noble said. “The invoices will

ScaleUP! has led to several other “aha!” moments. For example, Noble came up with her own manual for hiring designers after ScaleUP! experts urged her and her classmates to document critical processes in their businesses. That way, everything doesn’t fall apart should something happen to the owner.

This advice has been especially helpful to Noble as she hires more designers who need to blend their creative instincts with the Noble Designs look and feel. It prompted Noble to create what she’s called her designer boot camp program and manual.

“I’m really excited about (our boot camp) and would not have come up with it without ScaleUP!” she said.

After Noble carefully selects designers to join her business, they will go through the boot camp to see how Noble designers operate. They will learn everything from best practices when it comes to serving clients to the best blogs to follow and preferred brands.

The new hires will also be trained to create a plan for a client that fits within the standards of Noble Designs.

“I do think there is a look to Noble Designs. Even though it’s specific to each home, I think a lot of times you can look at a space and not be surprised when you find out that we did it,” Noble said. “I want to make sure that we’re able to pass that on as

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Sara Noble COMPANY

Noble Designs (913) 732-2403 www.saranobledesigns.com Noble Designs is an award-winning interior design firm serving residential customers.

ARE YOU READY TO SCALE UP?

ScaleUP! Kansas City—an elite program for KC small businesses—is looking for companies that want to supercharge their growth.

Learn more at www.scaleupkc.com

we continue to grow. And do that in a very organized, systematic way.”

‘I WANT IT TO HAVE A LOOK’

Most importantly, the boot camp will teach designers how to make decisions on their own without Noble’s input at every turn. It will allow her to focus on growth rather than overseeing the minute details of projects.

“I’m not a micromanager. I don’t enjoy that,” she said. “But I want it to have a look.

They’re coming to us because of what we’ve done.”

That ScaleUP! advice has already allowed Noble to get out and talk more with Realtors, residential developers and others to explore new markets for the business.

Noble plans to stay in touch with classmates who have proven to be valuable sounding boards.

“It’s been really interesting to hear their feedback and just have somebody who has taken a vested interest in my business for a moment but isn’t so tied in to the people or the politics,” she said.

It’s one of many hidden benefits of ScaleUP! that will continue long after the course is complete.

“I had no idea,” she said, “what a benefit (ScaleUP!) was going to be to me.”

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

SMART COMPANIES THINKING BIGGER®

41

BUILDING KANSAS CITY

Health Care

2017

Health Care Industry Offers Healthy Business Opportunities for Entrepreneurs ast year, the United States spent an estimated $3.35 trillion on health care— or more than $10,300 for every single American, according to the federal government.

And the numbers are only getting bigger. In 2016, health care spending increased by approximately 4.8 percent and is expected to grow, on average, by 5.6 percent each year through 2025.

L

For entrepreneurs, it represents a large, growing and constant demand—after all, everybody needs health care at some point.

And because there’s so much inefficiency in the system, business owners also have an opportunity to create products or services that enable better care to be delivered to more people more efficiently.

You can see it right here in Kansas City.

From Cerner, the world leader in electronic

health records, to the startups emerging from KU’s Bioscience and Technology Business Center, our local businesses are devising innovations that will allow patients to live longer, healthier lives.

The most promising health companies tend to draw on research and innovations developed

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by nearby institutions, and Kansas City has reason for optimism in that area, too.

Earlier this year, the KU Cancer Center won certification as a National Cancer Institute designee for another five years, along with an 11 percent bump in funding from the National Institutes of Health.

Children’s Mercy Hospital will also join a research partnership that includes KU and the Stowers Institute, a leader in biomedical research.

Meanwhile, K-State Olathe and the University of Missouri-Kansas City are collaborating on 1Data, which aggregates data on human and animal health—and could ultimately reduce the cost of developing new drugs.

And that’s not counting the work being done by groups like the Kansas City Area Life Sciences Institute on translational research, encouraging the commercialization of local institutions’ discoveries.

While many up-and-coming health companies will generate the jobs of the future, health care and related businesses already account for a sizable part of Kansas City’s workforce. According to the MidAmerica Regional Council, about 1 in 9 of the region’s workers are in the health care and social assistance sector, making it one of our area’s fastest-growing sources of jobs.

Nationally, between 2014 and 2024, health care employment will have increased by 19 percent and added 2.3 million positions, outpacing most other fields, the Bureau of Labor Statistics reports.

With the aging Baby Boomer population, the demand for health care workers and rising costs, our system is going to need every innovative treatment, product or service that entrepreneurs can bring to life.

The companies showcased on the following pages are operated by local entrepreneurs who have taken advantage of opportunities in the industry.

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Over the years, Insurance Pros has quietly been earning a reputation for helping business owners find a solution they may not have considered.

LEVEL-FUNDED PLANS When we started to look at our costs, we noticed that one of our largest areas of overhead was growing year after year.

That was the cost of our benefits. Fortunately, through close consultation with our broker, we were able to reduce our cost by 20 percent by going with something called a “level-funded” employer health plan. This allowed us to qualify for lower health insurance rates by simply going through an underwriting process. I appreciate our broker for explaining this idea and helping with the implementation. Now, we can sustain the offering of great benefits to our 36 employees and focus on offering artisan chocolates that surprise and please the palettes of people all over the world.

Christopher Elbow, President & CEO Christopher Elbow Chocolates, 1819 McGee, KCMO 64108 WHEN COBRA DOESN’T CUT IT When we decided to forge a partnership and start our own firm, our focus was on helping people who were adversely affected by the negligence of large companies. One of our last concerns was our own health insurance until I discovered that our COBRA was expiring. The options in the individual market were terrible, and Insurance Pros was able to help us find group coverage with Blue Cross Blue Shield of Kansas City even though my family was the

only one needing coverage at the time. Since then, we have added covered members and any time we need help, our brokerage firm is there to help. It is great to know that we don’t have to be in the health insurance business to have a plan and we can focus on our clients.

Todd Johnson, Partner VNJ Law, 9237 Ward Parkway, KCMO 64114 PAYING 100% EMPLOYEE PREMIUMS, BUT SAVING THOUSANDS We have been offering benefits to our company at 100 percent for over a decade now, and the premium increases associated with the Affordable Care Act have made this a challenge. Fortunately, with the help of our broker, we were able discover level-funded insurance options that reduce our cost. We qualified for these plans through an application process, and we are saving thousands of dollars from our old plan. This allows us to continue to pay all of the premium for our employees and their families, thus retaining valuable employees throughout the region. We couldn’t do this without Insurance Pros, who also helps us with the administration of our plan.

Laura Stolte, Manager MC Controls, Overland Park, Kansas

At Insurance Pros, we thrive on helping small businesses flourish by taking away the concerns associated with offering employee benefits.

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For more information, visit us at http://insuranceprosinc.com/smallbiz or call 913-944-4465.

SMART COMPANIES THINKING BIGGER®

43

BUILDING KANSAS CITY

Health Care

SPONSORED CONTENT

2017

Sphere3 Raises the Bar ®

The new release of Leadit!®, due out in early December, transforms expectations of how leadership rounding in hospitals can be performed.

The current market offers several survey-style tools that allow hospitals to mobilize their leader rounds using tablets. Sphere3® disrupted the market with their patented tool Leadit!® in 2015. The new release disrupts the market again by using patient alarm data to identify and prioritize patients’ risk and satisfaction.

Unlike a survey tool, LeadIt!® uses its patented process to

teams to collaborate effectively on which patients to round first.

connect rounding and call light

Kathleen Harmon, Chief Nurse

analysis so that clinical leaders

Executive (CNE) at Sphere3®,

can emotionally connect with

noted that Leadit!® is able to

patients. The tool not only

converge qualitative and

mobilizes the rounding questions

quantitative data in a

on a tablet, it provides visibility

meaningful way that provides

to care patterns and patient

actionable information at

behaviors. For example, it shows

the point of care. “This is a

patient call light utilization,

game-changer for enabling a

response time of staff and

care environment that empowers

even identification of bed exit

patients and caregivers—and

alarm rates.

springboards a culture of

The next version of LeadIt!® scheduled for a December 2017

ownership and accountability,” she said.

release, incorporates Sphere3®’s

Leadit!® is at the core of

believe their [Sphere3®’s] Aperum® software “ We will create more engagement opportunities with our patients, and we will better be able to analyze the workload of our staff and identify opportunities to optimize our care.

”

was instrumental in improving

Hawkins, Vice President and

patient experience by 18 percent,

Chief Nurse Executive at Shaw-

according to a 2016 research

nee Mission Health. “We believe

study. Their clients have reduced

their Aperum® software will cre-

call light usage, improved

ate more engagement opportu-

technology use for clinical communications and improved quality. Their industry

patent pending algorithm,

Sphere3®’s award-winning

leadership led to their most

called the “Hot List,” into Leadit!®

patient experience management

recent partnership with Shawnee

for a simple-to-use single view.

suite called Aperum®.

Mission Health, part of the

It prioritizes patients into

Aperum® has caught the

categories of safety, satisfaction,

attention of industry influencers

and workload, allowing care

and hospitals alike. Sphere3®

S P H E R E 3 | ( 9 1 3 ) 2 2 7 - 4 4 7 8 | W W W. S P H E R E 3 C O N S U LT I N G . C O M 44 THINKING BIGGER BUSINESS // October 2017

–Sheri Hawkins, Vice President and Chief Nurse Executive, Shawnee Mission Health

Adventist Health System in Kansas.

“We are excited to partner with Sphere3®,” said Sheri

nities with our patients, and we will better be able to analyze the workload of our staff and identify opportunities to optimize our care. Our Patient Experience strategy is to leverage realtime analytics to build a better understanding of how our clinicians use our patient communications platform.” •

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EQUITY BANK NAPKIN STORIES

COMPLETE HOME CONCEPTS

SPONSORED CONTENT

Family Builds Complete Home Concepts im Goodwin was tired of traveling six days a week, three weeks a month. So he started a part-time business.

His goal was to grow it so he could quit his job and spend more time with his family.

Little did he know that 40 years later, the business—Complete Home Concepts— would be thriving under his son and daughter and that a third generation would also be involved.

J

Jim’s son, Jeff Goodwin, said that his father’s side effort began with the purchase of a stone manufacturing company in 1976.

Not quite a year later, the elder Goodwin quit his traveling job to give his full effort to the new venture, then called Model Stone of Kansas City.

STRATEGIC ACQUISITION The company has grown by following a strategic acquisition plan. When the owners identify a need, they buy another company that can fill the gap in their product or service line. The goal is to be a one-stop shop for home construction and remodeling services. For example, when Jim Goodwin noticed that most of the stone he was making was being used on fireplaces, he purchased into a partnership and started selling pre-fab fireplaces.

Jim Goodwin bought that partner out in the early 1980s, and Jeff joined the business.

The Goodwins added mirrors and shower doors to their product line. Soon after, they acquired a marble company to solve a problem they were having with marble tops.

Next came wood stoves. They also bought a small guttering company.

In addition to their product lines, Complete Home Concepts offers an array of services, including chimney sweeping (yes, they bought a chimney sweep company), gutter and ventilated closet shelving installation and more.

As the company grew, so did their visibility throughout Kansas City. “We had a large 46 THINKING BIGGER BUSINESS // October 2017

retail presence in the 1990s and early 2000s with four showrooms around the city,” Jeff Goodwin said. But in 2008, when the recession hit their industry hard, they pulled back and consolidated at their current location in the Horizons District of Riverside, Missouri.

KEYS TO SUCCESS Jeff Goodwin can tick off a number of reasons Complete Home Concepts withstood the recession and other challenges.

First and foremost, they focus on the customer. “My dad always used to say ‘If the builder ever calls you and says he needs something, you’re doing something wrong,’” Goodwin said. ‘You need to know he needs it before he knows he needs it. Then the guy who’s out there competing against you doesn’t have a chance.’”

That focus on the customer is reflected in their selection of products and manufacturers too. “Our product choices have always been one step ahead of the competition. Nobody can match what we do,” Goodwin said, “because we don’t skimp on quality.”

Second, they aren’t afraid to go after what they need. They do what it takes to achieve success, whether that’s strategically acquiring more companies or even going back to school to earn an accounting degree—which is what Jeff did when the company needed help in that area.

Third, Jeff Goodwin said he and his sister Jenny Haughenberry and his nephews continue to follow his mother’s advice for keeping the peace in the family-run business. “My mother had a hard and fast rule.

When you came in the door, the business stayed on the porch. Mom was very clear: ‘We are here. We’re not the business. The business is over there, so keep it separate.’”

BANK PROVIDES BUYING POWER Complete Home Concepts is a long-time customer of Equity Bank. “We ask for something, and it’s done pretty quick,” Goodwin

said. “They ask a few questions and off we go. They know us pretty well. We talk to them on a regular basis. They see our financials on a regular basis, so they know what’s going on. They’re not overly involved in what we do, but if we have a question, they find a solution, including some major financing they’ve put together for us.”

SHARE YOUR NAPKIN STORY

Some of the most amazing business stories started as an idea scribbled on a napkin.

Mark Parman, Kansas City Market President of Equity Bank, invites you to share your Napkin Story. “We not only want to hear your origin story, we can help you continue to write the rest of your company’s story,” he said.

Equity Bank is a full-service community bank with offices in Kansas, Missouri and Arkansas. Our group of bankers are experienced with businesses from small to large.

We take the time to listen to your story and help you design the services that will benefit you and your business.

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

Visit: Equitybank.com/napkin-stories

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BIG | talk

» The BIG thinkers

behind the BIG ideas. »

Clive Hook Clive Hook is the author “Six Questions for Leading Achievers,” a book that explores the fundamental questions leaders should ask themselves at regular intervals.

Author, trainer, coach KELLY » How do you define

He is the co-founder of ClearWorth, a company that provides custom training, courses and workshops.

Clyde specializes in developing persuasion, influencing and negotiation skills. Having worked within a variety of industries and throughout 32 countries, he is an expert at how they are used within different cultures.

a “leading achiever”?

CLIVE » In

today’s organizations, we certainly need leadership, but it’s not vested in a single individual.

At all levels we need initiative, which is another way of talking about leadership. I try to target people who want to achieve something. That “achieving” could well be social responsibility as well as wanting to make money—people who feel a need to develop themselves but also want to help communities, families and other people grow too. To me, that’s an essential aspect of leadership.

So, is it somebody who is an achiever who’s in the lead, or is it somebody who leads other achievers? The answer is “yes” to both. In my experience, the people who practice leadership in the way we’ve described find themselves in charge of people who also want to achieve.

KELLY » Why six questions

rather than six answers?

CLIVE » My

favorite philosopher is a guy named Charles Brown, otherwise known as Charlie Brown. My favorite cartoon is him saying: “In the book of life, there are no answers in the back.”

That’s the book of business as well. There aren’t any answers if you’re dealing with real business issues—at least no single right answer. The thing that entertains, frustrates and infuriates in equal measure is that if it’s a real problem, even if you come up with an answer, you don’t know if it’s the right answer or not. You have to

constantly be adjusting as new situations happen, new markets develop, new things occur. My abiding belief is who cares about the answers? The issue is “Are you asking yourself the right questions?” and are you constantly asking yourself, “Is this working?”

KELLY » Give us a summary of

the six questions.

CLIVE » The

first is Who do you think you are? Step back and think about your role in the business.

You may think you are “whatever,” but what do your customers, what do your people look for from you in your leadership and management role?

What do you stand for? I’m a big believer in a values-driven approach.

What difference do you want to make in the world? What will you absolutely stand for, and therefore what you won’t stand for?

Why should they follow you? When I ask this question, people start to tell me about themselves and

their technical skills. That’s not what I’m after. Why should they follow you? Not what you think makes a good leader. If nobody follows you, then you are instantly not a leader any more.

What will be different? People need to know what will be different when the changes are done.

What will still exist? What won’t?

People need to know that clearly or morale and productivity go down. End of business.

Who’s on your side? You can’t do this alone. Building your network, or what we call your “work wide web” is vitally important. You’ve got to have people who can challenge your thinking and also support you.

Who listens when you speak?

Finding the way to say the most with the least words is so important.

What’s your core message, and how do you get it down to the fewest possible words with the greatest impact? You’ve got to stand out

from the crowd in some way and make sure your message is really clear. If it’s not, ask yourself, “Do I actually know who I am and what I stand for?” which takes us back to question 1.

KELLY » If you could give one piece

of advice to get started on right away, what would it be?

CLIVE » Don’t

just do something— sit there. Do some thinking. Do some reading and some thinking about yourself instead of running around like a headless chicken trying to make things work. I meet so many entrepreneurs that are so busy running around, and the ship’s sinking while they’re running around. Do some structured thinking and make conscious choices about what you want to do and how you want to do it.

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

SMART COMPANIES THINKING BIGGER®

49

BIG | shots

Cambrian Tech Wins Big at LaunchKC The Leawood startup is the top winner in this year’s LaunchKC grant competition, taking home $100,000.

Cambrian Tech is the team behind Home Harmony, an augmented-reality app that lets users instantly see what their homes would look like with different paint or flooring.

Hall Renamed for Metzler

DivvyHQ Snags Top Awards at Major Content Marketing Conference

The Folly Theater has renamed its performance hall to pay tribute to the late C. Stephen Metzler, the local businessman and philanthropist who helped revive the theater in the 1970s.

For the second year in a row, DivvyHQ’s content creation and workflow platform won the Audience Choice Award from the Content Marketing Institute. DivvyHQ was also recognized as the No. 1 overall content marketing software platform.

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