VOL. 27 // ISSUE 10 // OCTOBER 2018
GROWTH BY DESIGN Firm helps organizations find freedom in work spaces.
CHAMPIONS FOR WOMEN
How female entrepreneurs rallied in 1988 to smooth the path to business ownership.
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CONTENTS
OCTOB ER 2018 VOL. 27 // ISSUE 10
IN FOCUS
44 Patient-centered care Small businesses engage with patients for better results.
D E PA R T M E N T S
07 The Bigger Picture 08 Legislative Briefs 09 Biz Bits 12 BIG | deals 15 25 Under 25 Updates 50 BIG | shots
F E AT U R E
29 Champions for women entrepreneurs
The Women’s Business Ownership Act, signed in 1988, was a game-changer for female entrepreneurs. Learn how the legislation came to be.
S M A R T S T R AT E G I E S
32 BIGGER | strategy Torn Label Brewing Co. concocts collaborations with other local businesses.
34 BIGGER | marketing The truth about direct mail
36 BIGGER | law How small businesses can compete with the big guys in court
38 BIGGER | hr Small business guide to pay equity
24 | KC ENTREPRENEURS HE ON T R E V CO
WORKSPACES THAT WORK Freedom Interiors has a new space to show off its interior design and has increased staff to keep up with new clients.
40 BIGGER | tech Choose content over ‘cool’ factor
16 25 UNDER 25 ALUMNI SPOTLIGHT 4
THINKING BIGGER BUSINESS // October 2018
|
19 BIG STARTS
|
19 MADE TO LAST
Craig Johnson, a project lead in education for Freedom Interiors, takes advantage of workspace in the firm’s showroom at its new Westport office.
17
C O M PA N Y T O WAT C H
21
KC M A D E I T
22
ENTREPRENEURIAL JOURNEY
Healthy Plus
ABCreative
Ampersand Design Co.
The medical services firm is on the cusp of huge expansion.
Playground design company celebrates 25 years of creating fun.
Graphic design duo has grown into entrepreneurship. SMART COMPANIES THINKING BIGGER®
5
CONTENTS
O CTO B ER 2018
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THE BIGGER PICTURE
The Strides We’ve Made for Women in Business
I
n my career, I’ve been lucky to
30 years ago. They helped put together
meet many impressive women
the Women’s Business Ownership Act,
business owners. As with any
also known by its legislative code, HR 5050.
business owner, they’ve overcome a
Along with eliminating the blanket
gauntlet of challenges.
requirement for a male co-signer, it established
Only recently did I realize how much progress has been
resources for women business owners and changed
made to smooth the path for women to own businesses
the Census Bureau’s criteria to more accurately count
— within my lifetime.
women-owned firms. It was signed by President Ronald
I’ve ready plenty of Jane Austen, so I know how far we’ve
Reagan on Oct. 25, 1988. (Read the story on page 29 to
come from considering women incapable of owning
get much more background on how HR 5050
property. But I didn’t know that before 1988, women
came about.)
were routinely required to have a male co-signer on
When you’re a millennial, and you grow up in the
a business loan, regardless of whether that man was
U.S., people tell you that you can do anything you
involved in the business.
put your mind to. The reason that is true is because
Business leaders and members of the National
of women and men who have come before us to fight
Association of Women Business Owners shed light on
for changes that level the playing field, like the
this issue and asked that it be stopped in 1988 — a mere
women who put into motion HR 5050.
Katie Be an
// Edi tor and Managing D irec to r // kbean@iThinkBigger.com
SMART COMPANIES THINKING BIGGER®
7
L E G I S L AT I V E B R I E F S
Key positions up for grabs in Kansas, Missouri elections Midterm elections are coming up Nov. 6. Kansas and Missouri both have hotly contested races. In Kansas, all eyes are on the three-way gubernatorial contest, but there are also two U.S. House seats up for grabs. Missouri voters are watching the U.S. Senate race — no Democrat has won a statewide office in Missouri since 2012, when incumbent U.S. Sen. Claire McCaskill was elected.
KANSAS Voter registration deadline: Oct. 16
Governor Kansas Secretary of State Kris Kobach defeated incumbent Gov. Jeff Colyer by a handful of votes in the August Republican primary. Kobach faces two challengers: state Sen. Laura Kelly, a Democrat, and Greg Orman, founder of a private equity firm who’s running as an independent. Orman last ran for office in 2014, when he attempted to unseat Sen. Pat Roberts, a Republican.
U.S. House District 3 U.S. Rep. Kevin Yoder, a Republican, seeks re-election in the district that covers most of Kansas City’s western suburbs. He faces Democrat Sharice Davids, an attorney and economic adviser, who defeated several contenders in the primary. Libertarian Chris Clemmons is also on the ballot. Yoder, who was first elected to represent the district in 2010, won by a 10-point margin in 2016. 8
THINKING BIGGER BUSINESS // October 2018
U.S. House District 2 U.S. Rep Lynn Jenkins, a Republican, announced early this year that she would not run for re-election. Competing to take her seat are Democrat Paul Davis, a former state House Minority Leader and 2014 gubernatorial candidate; Republican Steve Watkins, an Army veteran and engineer; and Libertarian Kelly Standley. The district, which covers Lawrence, Topeka and Northeast Kansas, stood with Davis when he challenged Gov. Sam Brownback in 2014.
Other races » In addition to choosing a new governor, Kansas also will vote on other state leadership positions: Secretary of State, Attorney General, State Treasurer and Commissioner of Insurance.
MISSOURI Voter registration deadline: Oct. 10
U.S. Senate Incumbent Sen. Claire McCaskill, a Democrat, faces a strong challenger in Missouri Attorney General Josh Hawley, a Republican. President Donald Trump has appeared at a Hawley fundraising rally. Every seat counts in this election — both parties are attempting to flip seats to gain control of the Senate. Green Party candidate Jo Crain, Libertarian Japheth Campbell and independent Craig O’Dear are also on the ballot.
U.S. House District 5 Congressional district 5 includes Jackson
County and other counties east of Kansas City. Longtime incumbent Emanuel Cleaver, a Democrat, faces Republican Jacob Turk, a U.S. Marine Corps veteran and small business owner, and a handful of other competitors: E. C. Fredland of the Constitution Party, Maurice Copeland of the Green Party and Libertarian Alexander Howell.
U.S. District 6 Republican Sam Graves is the incumbent for the district covering Clay and Platte counties. He faces Democrat Henry Martin and Libertarian Dan Hogan.
U.S. District 4 In the district encompassing Cass County, incumbent Vicky Hartzler, a Republican, faces Democrat Renee Hoagenson and Libertarian Mark Bliss.
Other races » Jackson County voters will choose a new sheriff to replace Mike Sharp, who resigned in April. Interim sheriff Daryl Forté, a Democrat and retired chief of Kansas City Police Department, faces Republican David J. Bernal, a former FBI special agent and KCPD officer. » Jackson County also will decide whether to re-elect Frank White Jr. as county executive or choose his challenger, Nathan Kline of the Green Party. » Missouri voters will be asked whether to legalize medical marijuana and whether to raise the minimum wage to $8.60 per hour with additional increases culminating in a minimum wage of $12 per hour in 2023.
BIZ BITS
The Innovators will move to Omaha Pipeline Entrepreneurial Fellowship made two big announcements in September. Applications for its next cohort are open through Oct. 22. The program is open to entrepreneurs whose company is entering a growth stage. Pipeline brings together high-performing entrepreneurs in the Midwest and grants them access to a national network of experts. Pipeline takes zero equity in member companies. The program also revealed that its annual gala, The Innovators, will take place in Omaha next year. The awards program will be Jan. 25. Since its founding, Pipeline has worked with more than 120 entrepreneurs who employ over 2,300 people in Kansas, Missouri and Nebraska, and have raised more than $513 million in outside capital since joining Pipeline.
LaunchKC names pitch competition finalists LaunchKC, a pitch competition with $500,000 in grants at stake, announced 20 finalists who will compete for a share of funding. The group includes 14 metro-area companies and two — AgVoice and Ripe.io — that have been through Kansas City’s Sprint Accelerator. Finalists listed below will present Oct. 12 at LaunchKC Pitch Day, the grand finale of the Techweek Kansas City conference.
LaunchKC finalists • AgVoice, Atlanta • Bluepoint2, Leawood • Boddle Learning, Kansas City • Bungii, Overland Park • Case Helper, Kansas City • Digs, Chicago • Erkios Systems, Kansas City • Just Play Sports Solutions, Lawrence • Listing LLC, Kansas City • MindSport, Overland Park T:7.5”
• Motega Health, Lawrence • OpenCities, Kansas City • PlaBook, Kansas City • Project Ray, Yokneam, Israel • Realquantum, Overland Park • Ripe.io, San Francisco • SaRA Health, Kansas City • SmartBridge, Bethesda, Maryland • Strayos, St. Louis • Venture360, Lee’s Summit
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SMART COMPANIES THINKING BIGGER®
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BIZ BITS
Conference spotlights highs and lows of business ownership A daylong event will bring together entrepreneurs to talk about the good, the bad and the ugly of owning a business. “Own it! The good, the bad and the ugly every entrepreneur needs to know” will feature four panels of entrepreneurs and other speakers, along with networking time. The event will take place 9 a.m.-4 p.m. Oct. 13 at Plexpod Westport Commons, 300 E. 39th St., Kansas City, Mo. Tickets are $50 and include breakfast and lunch catered by Central Exchange. Register at www.cultivate.network. Crosby Kemper III, executive director of the Kansas City Public Library and chairman of the Show-Me Institute, is keynote speaker. Additional speakers include Courtney Thomas, CEO of Central Exchange; Tyler Van Winkle, partner at Rivet and CMIO of Affinity Worldwide; and Rob Reiman, executive director of Giving Grove. Panel topics include “Real talk, no nonsense,” “Marriage and business mix—Saying ‘I do’ to a business partnership,” “Women entrepreneurs — Shattering ceilings” and “Leveraging opportunity — regardless of age or experience.”
Influential business owner will speak at NAWBO summit A champion of women’s equality is the headliner for the Women in Business Summit this month, put on by the Kansas City chapter of the National Association of Women Business Owners. Virginia Littlejohn will be keynote speaker at the event Oct. 18 at Lidia’s Kansas City. The summit brings together women entrepreneurs in Missouri, Kansas, Iowa and Nebraska for a day of education, ideation and networking. Littlejohn, president of Quantum Leaps, a 10
THINKING BIGGER BUSINESS // October 2018
global accelerator for women’s entrepreneurship, was one of three primary architects of HR 5050, the Women’s Business Ownership Act signed on Oct. 25, 1988. The law eliminated discriminatory lending practices against women business owners. The event lasts from 9 a.m.-4:30 p.m. Tickets are $150 for NAWBO members and $175 for nonmembers. Register at NAWBOKC.org/women-in-business-summit.
of Wyandotte County and Kansas City, Kan., will take over Oct. 8. Port KC aims to grow the economy of Kansas City’s port district through transportation, global commerce and development. It also has power to grant development incentives.
SBA decreases surety bond fees AltCap offers real estate development workshop AltCap, a Kansas City community development financial institution, will host a one-day small-scale development workshop to promote neighborhood development for communities and those working in economic development on Oct. 15. The workshop will be facilitated by Minnesota-based Incremental Development Alliance, an organization that promotes the small-scale development through education for entrepreneurs on how to build value in neighborhoods. Outcomes of the workshop will include information on analyzing what makes a good project, how a building makes money and how small developers interact with the broader ecosystem of professionals in the built environment. The workshop will be from 8 a.m. to 5 p.m. at Kansas City Public Library’s Central Library branch. Register at IncrementalDevelopment.org.
PortKC hires new CEO In September, PortKC announced a new CEO, ending an eightmonth search by choosing a local economic development official. Jon Stephens, who previously served as director of economic development for the Unified Government
In fiscal year 2019, small businesses have access to lower surety bond rates through the U.S. Small Business Administration’s Surety Bond Guarantee (SBG) program. Surety bonds allow small businesses to bid contracts that are bonded to assure future work is completed. The SBA’s program guarantees bid, performance and payment bonds issued by certain surety companies for small contractors who are otherwise unable to secure bonds. Effective Oct. 1, the surety fee under the SBG will decrease from 26 to 20 percent for small businesses utilizing the program on all approved bonds; additionally, the contractor fee per $1,000 will drop from $7.29 to $6.00. The fee decreases are the first in 12 years.
Business owners report record-high optimism The National Federation of Independent Businesses announced a new record in small business optimism, according to an August survey. The NFIB Optimism Index soard to 108.8, a new record in the survey’s 45-year history; it surpassed the previous high mark of 108 in July 1983. In addition, surveyed small business owners said it’s a good time to expand. Job creation plans — as well as unfilled job openings — set new records. Inventory investment plans were the strongest since 2005, and capital spending plans were the highest since 2007. v
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BIG | deals
AWARDS & RECOGNITION Kansas honors outstanding MBEs, WBEs The Kansas Department of Commerce Office of Minority and Women Business Development has announced its 34th Annual Minority and Women Business Awards as part of 2018 Kansas Minority Enterprise Development Week. The awards, given each fall, highlight minority- and women-owned businesses that “exhibit outstanding achievements in their
respective industries.” Businesses will be recognized at a luncheon Oct. 11 at the Capital Plaza Hotel in Topeka. Kansas City-area award recipients of minority-owned businesses include MASS Medical Storage LLC, Lenexa; The AGA Group LLC, Overland Park; Leeway Franks LLC, Lawrence; Veracity Consulting Inc., Overland Park; and Mi Rancho Tequila, Kansas City, Kan. Local award recipients of women-owned businesses include Sorella Group Inc., Lenexa; Mid Star Lab Inc., Tonganoxie;
New app connects small businesses with community A successful business career hinges on three things being right: timing, relationships and opportunity. For Reggie Gray, those three elements are coming together with Black Privilege. Gray is the executive director of the nonprofit, which launched its app in the Kansas City market three months ago. Gray said via email the Black Privilege app is “basically a mixture of Yelp, Facebook and LinkedIn but for black-owned businesses and the community.” “The reality is out of the $1.2 trillion in black spending power, only 2 percent of this gets reinvested back into our business and communities,” he said. The app has been operational for about four months, with 6,000 downloads and 3,000 active users. Owners can set up their own profiles and communicate with customers and other businesses. The app also has a resources section. 12
THINKING BIGGER BUSINESS // October 2018
Photo courtesy of Startland News
Gray said Black Privilege aims to “prove the concept” here in Kansas City, with the hopes of going national next year. Gray emphasizes that Black Privilege isn’t an “only buy black” idea. The nonprofit is particularly excited that about 10 percent of the users aren’t African-American. “Our goal has always been to be welcoming to all people, and Kansas City is proving to have pockets of non-black people who ‘get it’ and believe in the movement,” Gray said.
A.S.K. Associates Inc., Lawrence; Candle Queen Candles, Leavenworth; Exterior Lifestyles by Design LLC, Overland Park; and International Express Trucking Inc.,
Kansas City, Kan. Cathy Weaver of Miracles With Water in Mission will be recognized as the Women Business Advocate of the Year, and Samuel Garcia of Larkin & Garcia Funeral Care in Kansas City, Kan., will receive the Young Entrepreneur of the Year Award. Travel agent named as one of world’s best Kathy Sudeikis, vice president of corporate relations for Acendas Travel, was named as one of the World’s Top Travel Agents for 2018 by Travel + Leisure Magazine. The magazine identified 117 agents as “A-List” selections who “provide incredible insight and unparalleled access that gives you value you couldn’t get any other way.” Sudeikis was recognized for her expertise in family and multigenerational travel. The list was published in the September 2018 edition of Travel + Leisure. EXPANSION
DivvyHQ expands potential footprint A Kansas City company has forged a strategic partnership with a leader in global content management that will broaden its footprint and help brands worldwide. DivvyHQ has partnered with SDL to help
BIG | deals
global brands centrally plan, create, translate and deliver marketing content. DivvyHQ provides a content planning and production workflow tool for high-volume content teams. Its tool is built to help marketers and content producers stay organized and successfully execute demanding and complicated content marketing and social media marketing. Hickory Global launches services for home sellers Hickory Global, a residential general contractor, has launched a new service called Ready to Show. The service caters to real estate agents, brokers and homeowners who are selling a home. When a seller needs to make repairs or renovations before going on the market or post-inspection, Ready to Show offers a “one-call solution” — it can schedule all types of contractors, such as electrician, handyman, roofer, window installer, etc. Executive AirShare expands fleet Executive AirShare, based in Lenexa, has become the nation’s first fractional provider to add the Embraer Phenom 300E light jet to its fleet. The addition of this new aircraft makes Executive AirShare the first commercial operator for all the Embraer Phenom aircraft. Tech repair chain expands National tech repair company uBreakiFix opened two new locations in the Kansas City metro area in September. Ward Parkway uBreakiFix is at 8440 Ward Parkway, Kansas City, Mo., and the Liberty location is at 107 S. Stewart Road. UBreakiFix currently operates nine locations in Kansas City following the May 2018 partnership with Phone Medic, a locally-owned tech repair company led by Mike and Paul Kushnir and Christine Ricci.
GROWTH
Danny Humphrey of Grape Marketing, to bring
Blooom reaches $3B in AUM Robo-adviser Blooom, which focuses on 401(k) management, announced in September that it reached $3 billion in assets under management. It reached $1 billion in AUM just last year. Blooom has more than 22,000 clients nationwide and is led by CEO Matt Burgener. M&A Unravel increases digital marketing services through merger Unravel, a Kansas City digital marketing agency, joined forces with Grape Marketing this summer. The 10-year old Unravel expanded SEO and data services through the merger. Scott Schaper of Unravel credits a client referral with introducing him to
about the opportunity. Digital marketing services include content creation for digital and print, website management, SEO, graphic design, Google Adwords, pay-per-click advertising, social media campaigns and more. The agency is headquartered in Lenexa’s Plexpod co-working space. Law firm acquisition adds small business services Rouse Frets Gentile Rhodes LLC, which has offices in Leawood and Kansas City, Mo., acquired StartMeUp KC, a group created to provide accessible legal services for startup companies and small businesses. StartMeUp KC founders Sarah Meyer and Analisa Cox will work in the firm’s new contract review, license agreements and vendor management group. Meyer and Cox will help clients create business entities and review, draft and negotiate contracts and legal documents, including commercial leases, service agreements, vendor contracts, employment
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THINKING BIGGER BUSINESS // October 2018
Logistics company drives growth with acquisition A fast-growing Shawnee logistics company is accelerating growth with the acquisition of a local company. Tallgrass Freight Co. announced that it acquired Westport Business Group, which was founded in 2010. Principals Jeremy Hill and Scott Ragan join Tallgrass Freight as directors of truckload operations and bring their book of business. Tallgrass Freight, founded in 2012, offers a wide range of transportation and logistics services to small and mid-sized companies, including less than truckload (LTL) shipping, full truckload (FTL) shipping, flatbed services, intermodal services and more. NEW BUSINESS Business aims to tap $42B animal health market There’s a pressing need to fill R&D gaps in the animal health market. TechAccel and Reliance Animal Health Partners thinks Covenant Animal Health Partners can help meet that need. The Overland Park-based animal health investment company announced the formation of the new subsidiary during Global Animal Health Week. Covenant is based out of TechAccel’s headquarters, with a staff distributed throughout the country. Covenant’s purpose will be to provide “revenue-ready” animal health products, meaning products that have been fully developed, tested and awarded the proper regulatory certifications and ready for sell. Firm aims to shepherd businesses through certification process Connectus Worldwide is a new consulting firm that aides minority-, women-, disadvantaged-, veteran- and LGBTQ-owned companies seeking corporate and governmental certification. It was founded by Mary Shannon, who retired from a Fortune 500 company earlier this year. Through the use of project management software, Connectus Worldwide has developed an automated, secure client
portal where businesses can gather and submit required documentation in a confidential and encrypted space. The software also tracks the submission of documentation and notifies clients of filing status with the certifying agency. ON THE MOVE Constructors move into shared headquarters Three local companies have moved into one new home: the McQueeny Lock building in Kansas City’s Crossroads Arts District. The 50,000-square-foot building at 520 W. Pennway is now headquarters to Centric, a commercial and residential construction firm; Superior Bowen, one of the Midwest’s largest asphalt paving and construction companies; and Inspired Homes, a residential builder and developer. The building, now called 520 Penn, is listed on the National Register of Historic Places. 2 local eateries to open in downtown Overland Park Coffee lovers and health-conscious eaters looking for paleo meals soon will be at home at The Vue in Overland Park. Parisi Café and Evolve Juicery & Kitchen will lease 4,135 square feet of retail space at The Vue, the mixed-use redevelopment project on West 80th Street between Marty and Floyd Streets in Downtown Overland Park. Evolve is expected to open this month, and Parisi plans an early 2019 opening.
2 5 U N D E R 2 5 ® U P DAT E S
K12itc A managed IT company is expanding into a new vertical. K12itc (Class of 2014), which serves schools, has launched Civic ITC to provide IT infrastructure management, connectivity and maintenance for municipal and county governments, chambers of commerce and other civic organizations. With the expansion, founder Brad Sandt announced the establishment of Menlo Inc., a holding company for both K12itc and Civic ITC. Sandt serves as president of all three entities.
Kansas City T-Bones Baseball Club Kansas City once again has a winning baseball team. This year, it’s the Kansas City T-Bones Baseball Club (Class of 2007),
•
which won the 2018 American Association Championship on Sept. 15 at T-Bones Stadium at The Legends in Kansas City, Kan. The T-Bones won 5-3 over the St. Paul Saints in Game 4 of a best-of-five series. It’s the team’s first title in the league; it previously won two championships in the Northern League, most recently in 2008.
Kenton Brothers Systems for Security A local woman-owned business helped the Westport entertainment district implement recent security measures. Kenton Brothers Systems for Security (Class of 2006) created a metal detection technology package at the request of the Westport Regional Business League. The self-contained, packaged system includes Garrett metal detectors with battery packs and casters so they can be deployed at four main entrances to the outdoor district. Each
MARKETING
•
entrance also includes a handheld wand metal detector.
3 Women and an Oven After 16 years in business, 3 Women and an Oven (Class of 2009) announced on Facebook that it would close at the end of October. The bakery offered cakes and sweet treats wholesale, as well as catering special events. It was run by owners Jayne Torline and Stacey Webb. “We always said ‘God, family and work.’ God has been with us and now it is time for us to focus on our families,” Torline told the Kansas City Star. “Our children were teenagers when we started, but now we are grandparents. Our parents are elderly. We can’t say ‘no’ to our families. We really want to be there for them.”
DESIGN
•
SIGNS
AlphaGraphics 1717 Oak St | Kansas City, MO 64108 | 816.842.4200 alphagraphicskc.com | us190@alphagraphics.com | /alphagraphicskc
SMART COMPANIES THINKING BIGGER®
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AT A G L A N C E K C
( by Mike Plunkett)
E N T R E P R E N E U R S
25 UNDER 25 ALUMNI SPOTLIGHT | J. RIEGER & CO.
CLASS OF 2017
Distillery expansion a ‘catalyst for change’ J
acob Rieger’s West Bottoms distillery plant was shut down by Prohibition in 1919.
Almost 100 years later, J. Rieger & Co. will open its new, 60,000-square-foot production facility on the other side of town. The distillery announced it will expand its current 15,000-square-foot facility at 2700 Guinotte Ave. into the adjoining Heim Brewery bottling house in the East Bottoms. When completed, the new factory will accommodate up to 100,000 visitors annually. “This project is a true catalyst for change at our distillery and for the once-vibrant Electric Park neighborhood,” Andy Rieger, co-founder of J. Rieger & Co., and the great-great-great-grandson of the original distillery owner, said in a news release. “Our expansion allows us to continue to meet increased production demands, while also hosting the many spirits lovers in our community and beyond who want to participate in our brand story.” This announcement continues a spirited rise for the distillery and co-owners Rieger and Ryan Maybee. J. Rieger, a 2017 25 Under 25 Award winner, has increased distribution of its spirits into 20 states and now ranks in the top 10 percent of distilleries in the country. With its facility expansion, the company will quintuple its average daily production. The new distillery and hospitality center also will celebrate the history of Jacob Rieger, Electric Park and Kansas City, which is important to the owners. Rieger said in a 2017 interview with Thinking Bigger Business that opening the distillery “was a combination of keeping the Rieger family legacy alive and reviving a distillery that was such a major player in Kansas City’s history.” The hospitality center will host factory tours, tastings and classes on making spirits. In addition, plans are set to house multiple bars and lounges, as well as space for private events. The former Heim Brewery bottling house, one of the largest breweries in the Midwest before Prohibition, is listed on the National Register of Historic Places. The Electric Park neighborhood is named after one of the country’s first fully illuminated amusement parks, which dated back to 1899.
Mike Plunkett is a freelance writer in the Kansas City area. 16
THINKING BIGGER BUSINESS // October 2018
C O M PA N Y T O WAT C H K C
H E A LT H Y P L U S
E N T R E P R E N E U R S
Growth by prevention
(Photo courtesy of Austin Walsh Studios)
MEDICAL SERVICES FIRM ON VERGE OF HUGE EXPANSION ENTREPRENEUR
Sean Bledsoe C O M PA N Y I N F O R M AT I O N
Healthy Plus LLC 3445 S. 291 Highway, Independence 816-944-7505 HealthyPlus1.com TYPE OF BUSINESS
Medical services company that contracts with physician offices to schedule appointments, track patient data and augment patient care.
ean Bledsoe‘s roster is about to get a lot bigger. The basketball-coach-turned-entrepreneur launched his medical services company in April and had 16 employees by late August. He expects to employ more than 100 workers by spring. “Every day we have potential new clients calling,”said Bledsoe, CEO of Healthy Plus LLC, based in Independence. “We’re adding three to five new clients a month, and for every two to four clients we add another call center employee.” Healthy Plus works with physician offices to maximize the benefits of the Medicare annual wellness visit, an in-depth appointment with a primary care doctor to create or update a personalized prevention plan. The visits are 100 percent covered by Medicare. Healthy Plus calls Medicare beneficiaries to schedule appointments and uses automated reporting software to calculate patients’ risk factors.
S
AN OUNCE OF PREVENTION
“Prevention in health care is what everyone is trying to do,” Bledsoe said. “We took what Medicare is trying to do and we put it in a system. We have unique tools to gather patient data. Doctors can only spend about 15 minutes in a room with a patient because of scheduling obligations. We pull all that data back to the provider. The software does a lot of the work for the physician.”
Bledsoe said 16 clients with 68 doctors who care for 38,000 patients are using the Healthy Plus system. He expects that to grow rapidly based on an agreement with Athenahealth Inc., which has a network of more than 100,000 physicians. Bledsoe said his call center employees have medical training, including certified medical assistants and nurses. The company already has expanded to include chronic care management. Employees communicate each month with patients and update patients’ primary care physicians via electronic health records systems. Employees also offer educational information related to topics like nutrition and exercise. Bledsoe said Healthy Plus also is partnering with a diabetes management company to provide a wearable device and an app that monitors patients’ hemoglobin A1c. “We‘ve become a resource,” he said. PERSONAL MOTIVATION
Bledsoe spent nearly two decades in college basketball, with assistant coaching jobs at Bowling Green, Cleveland State, University of MissouriKansas City and Urbana, and a head coaching stint at Wilberforce University. He said he left the sport to spend more time with his growing family. He saw his parents struggle to navigate the health care system. “When they would go to their providers, they really have a hard time getting their questions answered,” he said. David Mitchell is a freelance writer in the Kansas City area. SMART COMPANIES THINKING BIGGER®
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Celebrating 2018 Global Entrepreneurship Week
BUSINESS RESOURCE FAIR
GLOBAL Come meet resources to help you start and grow your business. ENTREPRENEURSHIP
WEEK
Build your entrepreneurship network. Meet resources that can help you: S
Turn your idea or innovation into a business.
S
Find the right funding for your business stage.
Conduct market research to find your ideal customers or new markets.
Tuesday, Nov. 13
Move your business from startup to scaleup.
4 – 7:30 p.m.
Plexpod Westport Commons, 1923 Room 300 E 39th St, Kansas City, MO 64111 • Free and open to the public
Register and find 150+ more #GEWKC events at gewkc.org Brought to you by: GLOBAL ENTREPRENEURSHIP WEEK KANSAS CITY
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 | WALSTON DOOR CO.
MADE TO LAST | WESTPRO
1 inch opened door to growing business COMPANY //
Walston Door Co. ENTREPRENEUR //
Co-founders Caleb and Jessica Walston WHAT THEY DO //
The Walstons build and sell custom doors. “Many customers choose from our existing designs on display, some from Pinterest, and we’ve even had clients come in and sketch out their own unique design,” Caleb Walston said. INSPIRATION // Jessica Walston wanted a barn-style, sliding door
for a basement closet. When Caleb couldn’t find any locally, and online prices were exorbitant, he made his own. Jessica loved the door, but Caleb thought it had one flaw: He built a 40-inch door for a 39-inch opening, but the casings could be seen from an angle. Caleb listed the door on Craigslist and sold it the same day. The next week he built two doors — one slightly larger door for the basement and another that sold quickly online. “A few weeks later, Jessica listed a fourth door … on Facebook marketplace, and we sold it and placed six more orders for the exact same door that day,” he said. “At that point, we wondered if we were on to something.” Two years later, the business has moved from the couple’s garage to a West Bottoms showroom. It has three employees, installations in eight states and is on pace to double 2017 revenue. WHAT’S NEXT // Walston has expanded its offerings to include
custom entry doors. CONTACT // WalstonDoorCompany.com // (816) 726-3841
New name reflects company’s evolution When Western Fireproofing opened in the 1930s, its name indicated exactly what the business offered, using plaster and gypsum blocks to make buildings safer. After World War II, the company got out of the fireproofing business and expanded into other subcontracting services, such as building roof decks and floor underlayments and installing glue-laminated timbers and folding wall partitions. Despite its evolution, its name remained the same until recently. “It didn’t seem to matter because a lot of our sales and marketing was done face-to-face,” said president Gary Davenport. He was the company’s vice president of sales in the 1980s, returned in a similar role in 2003 and bought the company with partner Mark Van Doren in 2014. “What changed is that the modern contractor and architect aren’t doing face-to-face meetings. They are searching for what they want online. They would see fireproofing in our name and skip right over us.” The company changed its name to WestPro Construction Solutions earlier this year, Davenport said, because it “needed to be broader in how we are perceived.” WestPro moved from Kansas City, Mo., to Kansas City, Kan., in April. The change nearly tripled the company’s warehouse space to 100,000 square feet and increased its office space from 4,000 square feet to 7,000. And if you are looking for fireproofing, WestPro has added that service back to its lineup. SMART COMPANIES THINKING BIGGER®
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»Thursday, Oct. 25 // 4:30-6:30 p.m. Stone Pillar Winery 11000 S. Woodland St. Olathe, KS 66061
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KC MADE IT K C
A B C R E AT I V E
E N T R E P R E N E U R S
Combining play with learning Playground designer celebrates 25 years
D esigning the perfect playground for its customers is based on one very important element for ABCreative — listening to its customers and meeting their needs. “A lot of companies focus just on selling equipment as cheap as they can get it,” said ABCreative President Karen Herren. “We always consult our customer and look at what they want. We look at what they have and don’t have and design from there. We create enjoyable community spaces.” ‘UNDERSERVED’ MARKET
Based in De Soto, Kan., ABCreative has been designing outdoor play spaces for 25 years. Herren started in the industry working part-time for another company. “From there I got the idea of what was possible and what I could do with it,” Herren said. She started out on her own because “I thought the market was underserved.” Herren worked with various vendors to obtain the equipment and brought on some staff to help. By her own admission, Herren said she struggled a bit to run things. Nine years ago, Herren’s husband, Tim McNamara, joined the company. “I needed help,” she said. “I had tried to expand, but my hires didn’t work out. At that point he had his own small business and was able to sell it and join me. Right after that we started growing.” With its mantra of consult, create and construct, today ABCreative has a team of seven with consultants working in Kansas City, St. Louis and De Moines. In the last five years, Herren said ABCreative has doubled
in sales and continues to win awards as a top seller for its various vendors. ELEMENTS OF PLAY
Whether designing an elementary school playground or a municipal play space, ABCreative looks to produce a unique design for its clients’ projects to meet their needs. “We start with a foundation of the seven elements of play and create from there,” Herren said. Those elements are swinging, climbing, brachiating (alternating rhythmic arms movements when using things like monkey bars), balancing, sliding, sensory and spinning. “This helps the kids develop appropriately,” she said. “If kids aren’t active, they can’t learn.” In designing the play area, ABCreative also considers the age groups that will use the equipment, fitness levels and a sense of adventure and challenge that can be incorporated. “What we are able to create depends on the design, budget and what needs we need to meet,” she said. Once the design is in place, ABCreative works with its vendors to purchase the necessary equipment and play elements, and puts it all together. A few years ago, the couple bought another company, Foreverlawn KC, that creates artificial turf. Today, it is one of ABCreative’s vendors. While scope varies, the average project takes about six months from start to finish. Among ABCreative’s local projects are elements of the Leawoof Dog Park, Karnes Playground in Roanoke Park, Olathe’s Frisco Lake playground, nine elementary school playgrounds for the Kansas City Kansas School District and six playgrounds for the Fort Osage School District.
ENGAGING ALL AGES
Through the years, Herren has seen elements change from the asphalt and monkey bars that were her childhood playground experience. For a while, Herren said playground equipment went through a modular phase “to the point that it became boring.” “Finally, in the last five years, there is starting to be a shift to making equipment that is more of a challenge, and kids learn with it,” she said. Rope play has become popular — “it really engages the children,” Herren said. Playgrounds also are incorporating the surrounding terrain by adding berms, tunnels and more. Fitness-oriented equipment is another popular option. “More people are requesting things for teens and adults to do,” Herren said. “Communities are looking for all ages to come together. … It is a type of entertainment in an active way. They want to engage everybody.” TRANSITION AHEAD
While marking its 25th anniversary, ABCreative is embarking on some change. Herren and McNamara are looking to move into another location within De Soto. In addition, Herren has a plan in place to ultimately hand the company over to the couple’s son, Tanner McNamara, when he leaves the U.S. Marine Corps. “He will be joining us late in the fall, and it will help us start our exit strategy,” she said. Herren plans to step away in a year while her husband will continue to work with their son for a while. Ruth Baum Bigus is a former managing editor of a weekly newspaper and a longtime freelance writer. SMART COMPANIES THINKING BIGGER®
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ENTREPRENEURIAL JOURNEY K C
( by Katie Bean )
E N T R E P R E N E U R S
took the plunge and went full-time with Ampersand. Kiefer and Georgie shared details of their entrepreneurial journey and advice. Talk about Ampersand—what you do and your artistic vision. In terms of media, we work with paint, pen and ink, cut paper and anything else we can get our hands on. We are most known for combining graphic and handmade marks to create bold patterns. Our design aesthetic is modern and artful, geometric yet organic. It’s frequently simple, bold and full of unexpected color! We like to say that Ampersand is where color and pattern come to play, and that’s what we really hope comes across—a feeling of playfulness. We know it can sound a little cheesy, but we want our work to make people happy, whether it’s a child waking up on our rainbow sheets or an adult who purchases one of our platters for entertaining. Although it’s a ton of work, we love what we do and never take for granted that we’re living a dream. Carrie Kiefer, left, and Morgan Georgie started Ampersand Design Co. in 2009 after starting their careers at Hallmark Cards Inc. (Photos courtesy of Ampersand Design Co.)
The Intersection of Art & Business Designer duo has grown into entrepreneurship.
C
arrie Kiefer and Morgan Georgie met as graphic design students at the University of Kansas. Today, they run Ampersand Design Co., which creates designs that appear on products ranging from textiles to stationery to home décor to fashion for companies such as Crate & Barrel, West Elm, Target and Chatbooks. 22
THINKING BIGGER BUSINESS // October 2018
Ampersand also has its own line of products sold online and in shops across the world, including the company’s first brick-and-mortar space, which opened this year in the Made in KC Marketplace at Country Club Plaza. Kiefer and Georgie worked at Hallmark Cards Inc. for nearly a decade, where they learned about product design, collection creation and sourcing materials. They toyed with striking out on their own for years and freelanced at night while testing the waters. Finally, when Kiefer was laid off and Georgie had her first child, the women
Tell us about the beginning of your careers at Hallmark. Hallmark taught us a LOT! It was an endless learning experience to work there. … We spent the majority of our time at Hallmark working on gift wrap, which is where we really learned the art of repeating patterns. We had both loved surface pattern design without truly knowing how it worked before our time at Hallmark. Hallmark is also a mecca for trend research and a wealth of resources for inspiration. We learned how to stay current on trends in the fashion and interiors industries, spending many hours poring over design magazines and books there as well as getting to travel for research. In many ways, it was a dream job, almost like a grad school experience. When were you bitten by the entrepreneurial bug, and what sparked the idea to go out on your own (together)? Although our careers at Hallmark were successful and fulfilling, together, we had always dreamed of paving our own path and making
mean: very little. We learned a ton of lessons the hard way in those days, but that time was a game-changer for us. … We met clients at coffee shops and listened to their needs, estimated our expenses (inaccurately at times), and on a small scale, learned to run a business. It’s kind of funny to think that we still had a drive to own a business after making so little money and spending so much time in addition to our full-time jobs, but we did. We wanted to create patterns and products. That was our shared goal.
years. We had a financial safety net of our fulltime jobs while we made (lots of) mistakes. That being said, there’s no perfect time to leap. If we had waited for ideal circumstances, we never would have gone for it. … As with any new business, there are many aspects you aren’t going to know how to do at the beginning. Our advice would be to go for it anyway. … Jump into it wholeheartedly. Give it your all! We try to remind ourselves every day, and this goes for all of us, there’s just this one life, and we are all living our adventure as we speak. So make it a good one!
What advice would you give to other entrepreneurs? We feel that we really benefitted from working freelance on the side for several
Katie Bean is editor and managing director of Thinking Bigger Business Media.
First impressions begin with “hello.” our own unique mark in the world. After dreaming, scheming and many late nights of freelancing in addition to our full-time careers, in 2009, we finally followed a long-time dream to start a business creating patterns and artwork for modern, everyday living. Truth be told, it wasn’t quite as easy of a decision as we are making it sound. It was actually a really difficult and drawn out decision that we debated for literally YEARS. In fact, it was close to eight years! … Our freelance graphic design became somewhat of a legit business on the side. Legit in the fact that we had actual clients and were bringing in a little money. We were also learning about the basics of running a business while we had the safety net of our well-paying day job — and good thing for that safety net because when we say we brought in a little money, that is truly what we
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SMART COMPANIES THINKING BIGGER®
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Freedom Interiors employs a team of 10 — not counting Ginger, the very social Shepherd mix who was adopted from KC Pet Project to be the office dog.
24 THINKING BIGGER BUSINESS // October 2018
KC ENTREPRENEURS
Workspaces That Work Armed with a new showroom and a bigger team, Freedom Interiors aims to prove you can enjoy going to the office. ENTREPRENEURS
Carol Espinosa C O M PA N Y I N F O R M AT I O N
Freedom Interiors 4000 Washington St. Kansas City, MO 64111 (816) 265-1110 Fre3dom.net TYPE OF BUSINESS
Commercial interior design and furnishings solutions YEAR FOUNDED
2011 E M P L OY E E S
10 KEYS TO SUCCESS
“We help bring customer vision to reality through workplace design: We orchestrate vision, design and execution to create tailored workspace solutions that are right for your needs.” — Carol Espinosa, principal and founder
F
reedom Interiors creates the kind of workspaces that make people excited for Monday morning. The company figures out exactly how clients want their offices to feel and function, then translates that vision into reality. For the longest time, though, Carol Espinosa and her team couldn’t do the same thing for themselves. As a young, growing company, Freedom rented space in other people’s buildings. That changed late last year, when Freedom moved into its new home at 4000 Washington St. in Kansas City. The 7,000-square-foot brick structure — at one point, home to Westport’s old post office — has been completely transformed into a showroom for Freedom’s interior design and the furnishings the company sells. “We really didn’t have a good avenue to show people what we can do,” said Espinosa, who launched Freedom in 2011. “We were in need of a space where we could bring people over and say, ‘Do you like this? Here’s what we can do.’” Under the barrel roof, there are stylish desks and cubicles, as well as couches and booths and even a bar in the corner. On the other side of the building, you’ll find brightly colored, munchkin-sized chairs and tables for classrooms. Freedom can source from over 100 furniture lines they sell. Espinosa doesn’t have to rely strictly on photos and catalogs when selling. Now, prospective clients can touch and sit on the furniture.
GROWTH SPURT
The showroom is only one big change for Freedom Interiors. In six months, the company’s head count doubled from five people to 10. Most of Freedom’s business comes from the public sector. Government agencies and K-12 school districts are loyal customers, but the company is winning more business from corporate clients and local architecture and design firms, too, now that Espinosa and her team have an easy way to show people exactly what they can do. They don’t just rely on the showroom. Freedom Interiors uses up-to-the-minute technology to complete its projects — much of it put in service by Garold Sokolenko, Espinosa’s husband, who owned an IT company in the past and who now works in the business as a project lead. The Freedom team employs a 3-D laser scanner to create a perfect digital copy of the client’s space, down to the inch, and then uses that as a canvas for its interior design. Customers can wear VR goggles to “walk through” their reimagined offices before a single piece of furniture is ordered. NEW TOOLS, OLD-SCHOOL METHODS
While the technology is important, Freedom’s most important tools are much older: the ability to ask questions and sift the answers for what clients really need. That’s where each project starts, Espinosa said. “What we want to know is not what you want
left // Freedom Interior’s
exective team includes, from left, Carol Espinosa, principal and founder; Garold Sokolenko, chief innovation officer; and dog; Ginger.
by James Hart // photography by Dan Videtich SMART COMPANIES THINKING BIGGER®
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The old Westport post office has been transformed into a 7,000-square-foot showcase of the firm’s work. It includes a meeting room where clients can see a virtual reality version of their redesigned spaces.
the space to look like,” she said, “but what do you want the space to feel like, what do you want the space to do?” An accounting firm, for example, might need quiet spaces so staffers can easily stay focused. An advertising agency? They probably desire a design that encourages employees to talk and collaborate — or even overhear others’ conversations, so they can pipe up with another idea. “Usually, you spend more time at your office, at your workplace, than you do at home,” Espinosa said, “and it’s incredible what the interior space can do for you, both positive and negative.” FROM PROJECT MANAGER TO PRINCIPAL
Despite starting and running
her own successful company, Espinosa still doesn’t think of herself as a businesswoman. Not a natural-born one, at least. At heart, she’s a project manager. Pulling together a million different details into a finished project, one that really makes a difference for people — that’s what she thrives on, and it’s what she did before starting Freedom Interiors. Back then, she worked for another office-furniture company in Kansas City, where she learned the ins and outs of federal contracts after her employer started selling office furniture to different agencies. Those contracts often required participation from woman- or minority-owned businesses, so Espinosa’s previous company
26 THINKING BIGGER BUSINESS // October 2018
“It’s incredible what the interior space can do for you, both positive and negative.’” Carol Espinosa // Principal and Founder
would partner with smaller firms on those projects. Espinosa, who grew up in Rio de Janeiro and became a U.S. citizen after attending the University of Kansas, realized that she was already doing the same kind of work as those other companies. So why not go into business for herself? Plus, Espinosa already had experience managing the process that comes with government jobs. It’s a Freedom strength: “We’re not afraid of paperwork and forms and submissions,” she said.
At first, the company was just Espinosa and a laptop. But she quickly made gains. She pursued and won certification through the U.S. Small Business Administration’s 8(a) Business Development Program, which trains small, disadvantaged companies to be federal contractors. Then, a few years ago, Freedom Interiors earned a spot in the Blue Hills Contractor Incubator, a launchpad for small construction firms — and Espinosa’s landlord until last year.
COLLABORATIVE FOCUS
On a recent afternoon, Espinosa sat in her conference room and leaned over her computer, clicking through a 3-D tour of her building from before the renovations began. The structure used to house a hair salon and the studio of photographer Ben Weddle. (A triptych that hangs next to the bar — a portrait of a jazz saxophonist, lit in blue — is a Weddle work that Espinosa loved so much, she had him include it in their contract.) The renovation was extensive, but Espinosa wanted to pay tribute to the building’s history. The wooden doors, original to the building when it was still a post office, have been repurposed as architectural features. Three are suspended over the bar, and two
were converted into hanging barn doors leading into the kitchen. Transforming 4000 Washington St. was an exciting process, though there were some challenging moments — like when they removed the drop plaster ceiling and one of the walls threatened to collapse. Luckily, Freedom Interiors had expert support from JE Dunn. Espinosa has had a relationship with the construction company ever since completing its training program for minority entrepreneurs. Much of the work on the building was subcontracted to other friends of Freedom, businesses the company met during its time at the Blue Hills Contractor Incubator.
Espinosa wanted this to be a showcase not just for Freedom, but for fellow businesses, too. And she wasn’t disappointed. Her friends came up with ideas that consistently wowed her, like a feature wall made from LED lights and reclaimed Missouri barn wood. “They so took ownership of this project,” Espinosa said. “They just wanted to blow us away.” JP Welding, a custom fabricator that’s certified as a service-disabled veteran-owned business, made several connections while working on Freedom Interiors’ building. As a result, JP Welding did more business in the first three months of the year than what had been expected for all of 2018, Espinosa said.
Espinosa was inspired to create opportunities for other contractors because she remembers all the help and encouragement she received while starting Freedom Interiors. She sought out training from programs like the UMKC Small Business & Technology Development Center and the Missouri Procurement Technical Assistance Center. Last year, she was able to take graduate-level business classes at Stanford University as part of the Stanford Latino Entrepreneurship Initiative. In addition to its 8(a) status, Freedom Interiors holds certifications with the State of Missouri and Kansas City, Mo., as well as the General SMART COMPANIES THINKING BIGGER®
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Services Administration. Certification has helped the business win jobs, but it’s not magic. “They’re helpful to get in the door,” Espinosa said. “Once we’re in the door, we still need to do a good job, and we still need to be price-competitive. But they definitely help start the conversation.” HEADED FOR 25-25-25
Freedom Interiors has completed projects in all 50 states and overseas, too. “We did a job on an island in the middle of the Pacific, 8,000 miles west of us,” Espinosa said. “Tiny island, and we had to share with those end-users what their workspace was going to look like.” Freedom built 3-D visualizations so detailed that National
Weather Service employees on Palau, a Micronesian island, could not only see the furniture and the design finishes, but look out the “window” at a virtual beach. Teams in Hawaii and Australia carried out the legwork and installed all the furnishings. While government contracting has been profitable, Espinosa already has a major new goal in mind for Freedom Interiors. “The goal is 25-25-25, which is 25 employees with $25 million in annual revenue for 2025,” Espinosa said. “I have it broken down by year, so every year, we know what we need.” To accomplish that, the company will need to continue expanding into new markets like higher education, health care and beyond.
28 THINKING BIGGER BUSINESS // October 2018
‘THE BEST OF THE BEST’
And Espinosa knows that she needs to keep growing, too, so she works with a leadership coach, Ted Davis of Grace Strategic Services, who’s encouraged her to step out of her comfort zone when necessary. Case in point: Espinosa had a tendency to hire other introverts. She realized that she needed other types of viewpoints and energy. When she hired her first extrovert, they actually went through their personality tests together, so they each understood how the other communicated. Today, Freedom team members take three personality tests, including StrengthsFinder. Everyone knows everyone else’s top five strengths. That way, if someone gets stuck with a
problem, they know which co-worker might be able to help them. “When I say it out loud, it sounds like I’m overdoing it,” Espinosa said, laughing. “But when you get a group of people together, it is so important that the dynamic is a good one.” Ultimately, that’s what Freedom Interiors is about — creating places where people have the freedom and opportunity to do their best possible work. And for Espinosa, that absolutely includes her team. “If we’re going to do the best of the best for our customers,” Espinosa said, “why not do the best of the best for us?” James Hart is a freelance writer based in the Kansas City area.
CHAMPIONS FOR WOMEN ENTREPRENEURS ‘TRANSFORMATIONAL’ LEGISLATION SMOOTHED PATH FOR FUTURE BUSINESS OWNERS
early 10 million American women own businesses. According to the National Association of Women Business Owners, these entrepreneurs pay more than $264 billion in wages to more than 8 million employees, and their companies contribute more than $1.4 trillion in sales to the U.S. economy. Such staggering numbers would have been hard for some to imagine a generation ago, when women often couldn’t get a business loan without a male co-signer. “We’ve built an ecosystem for women entrepreneurs in the United States,” said Virginia Littlejohn, co-founder and president for Arlington, Va.-based Quantum Leaps Inc., which provides strategy, research and advocacy to accelerate the development of women-owned businesses. “We have incredible champions for for women’s entrepreneurship, and we’ve been role models for other countries. We have so much potential, if we work together, to
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make an extraordinary impact on the U.S. and global economies.” Littlejohn was one of the architects of the legislation that changed the landscape for women in business. The Women’s Business Ownership Act, or HR 5050, marks its 30th anniversary this month. President Ronald Reagan signed the landmark bill on Oct. 25, 1988. “It was the big bang for women entrepreneurs,” Littlejohn said. “It was transformational.” CONGRESSIONAL HEARINGS
NAWBO leaders knew from previous experience that presidential election years were an opportune time to orchestrate “our biggest, boldest initiatives,” Littlejohn said. At a reception for the House Small Business Committee in 1988, NAWBO leaders asked chair John LaFalce, D-N.Y., if he would be willing to hold substantive hearings regarding the challenges facing women entrepreneurs. LaFalce said he would but
acknowledged that the Committee lacked deep staffing and expertise on the issue. “NAWBO was ready to fill the gap,” Littlejohn said. “We worked flat out on this. About 10 of us put their own businesses on hold while we orchestrated the hearings.” At a March “strategic slumber party” at a cabin in Virginia, five NAWBO leaders huddled to plot strategy, identify issues and start to think of witnesses. Founding NAWBO president Susan Hager and then-NAWBO president Gillian Rudd were public relations professionals, and two days of NAWBO hearings in April generated extensive media coverage. NAWBO’s witness list included Emmy Award-winning actress, singer and writer Polly Bergen — who also happened to be a business owner — and her appearance on the first day of the hearings ensured full attendance of the committee and the attention of the press. Committee members were dumbfounded by the testimony of Lillian Lincoln Lambert, a Harvard Business School graduate who was able to secure a business loan only after her 17-year-old son was added as a co-signer. “It was amazing testimony,” Littlejohn said. “That just astounds people these days, but many states had that requirement then.” With the support of LaFalce and his chief of staff Don Terry, Hope Eastman, NAWBO’s vice president of public policy, drafted the legislation. The bill was introduced by LaFalce on July 14 and was passed by the House and Senate in early October. From its introduction in July to Reagan’s signing in late October, it took just 103 days for the bill to become law — lightning speed by Washington standards. “One of the remarkable things about it is that we managed to get this accomplished in a SMART COMPANIES THINKING BIGGER®
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“ When I was starting out, I didn’t really know what they went through so that I could live the life I imagined. There are still struggles, but they built a landscape so that we could have opportunities now. I’m proud of them and work they have done on behalf of all women.” —JEN EARLE // NAWBO CEO
few months,” Littlejohn said. In addition to eliminating the need in many states for male co-signers on business loans, HR 5050 took other important steps to help women: » It established women’s business centers, and today there are more than 100 in 48 states and Puerto Rico. The centers, which operate under the umbrella of the Small Business Administration, have helped more than 2 million women start or expand a business. » It required the Census Bureau to include C-corporations — not just self-employed women — in data related to women-owned firms. Doing so created a more accurate picture of what women-owned businesses contribute to the economy and the workforce. » It created the National Women’s Business Council, a nonpartisan, independent adviser to the president, Congress and the U.S. Small Business Administration on economic issues of importance to women-owned businesses. WOMEN’S BUSINESS CENTERS
Eleven years after HR 5050 became law, Kansas City still didn’t have a women‘s business center. In fact, there were none in Kansas, and the only one in Missouri was in St. Louis. “There was a real gap of support for women entrepreneurs in Kansas City,” said Sandy Bartow, who was teaching business classes through Wayne State University and 30 THINKING BIGGER BUSINESS // October 2018
owned a Kansas City company that offered business consulting and strategic planning at the time. Launching at the Enterprise Center of Johnson County (ECJC), with matching funds from the Ewing Marion Kauffman Foundation and the SBA, Joe Kessinger, ECJC president, and Bartow co-founded the Kansas Women’s Business Center in 2000. Bartow served as its executive director until 2004. She then started another women’s business center in Jacksonville, Fla. “Research has proven that women’s business centers are accomplishing their mission of supporting women in business and helping their companies grow,” said Bartow, who resumed her consulting business in Kansas City last year after retiring as president of the Jacksonville Chamber Foundation Inc. “Having a women’s business center in Kansas City for 18 years has moved the dial.” Bartow said women‘s business centers have been effective in identifying what women need to be successful and developing gender-specific learning and mentoring programs. She surveyed businesses each year while working in Kansas City and Jacksonville and found companies that participated in women‘s business center programs had “markedly different increases in the number of jobs created and gross revenues” than women-owned business that did not participate. Similarly, NAWBO said in its white paper on HR 5050 that 80 percent of business owners who receive education and assistance are still in business after five years, compared with 50 percent of businesses who don’t receive such services.
“We provided much-needed training and mentoring programs to support companies’ growth,” Bartow said. “Women had access to entrepreneurial education that didn’t exist prior to the women’s business center.” Littlejohn said the creation of the women’s business centers in the 1980s was important because at the time, small business development councils and the Service Corps of Retired Executives (SCORE) were often run by men who “thought women shouldn’t be in business. Our jobs were to be homemakers and mothers.” There also was a misperception, she said, that women-owned businesses were mostly “women making candles or macramé at their kitchen tables, and earning only $10,000 a year.” Women’s business centers also provide access to capital, which is one area where women entrepreneurs still face challenges. “It’s important to look at how things are, dream of how things could be and work to close the gap,” Bartow said. “The Kansas Women’s Business Center did that and continues to.” INEQUALITY PERSISTS
According to the U.S. Department of Commerce, the number of women-owned companies grew 44 percent from 1997 to 2007, twice as fast as men-owned businesses. During the same time, women-owned firms added nearly 500,000 jobs to the workforce, while other privately-held companies lost jobs. Today, Littlejohn said, nearly 40 percent of U.S. business are women-owned, and they are growing four times faster than men-owned business. Nearly 4 million of
BY THE NUMBERS // 10 MILLION
WOMEN-OWNED BUSINESSES IN THE U.S.
3.8 MILLION
U.S. BUSINESSES OWNED BY WOMEN OF COLOR
8 MILLION
PEOPLE EMPLOYED BY U.S. WOMEN-OWNED BUSINESSES
$264 BILLION
WAGES PAID BY U.S. WOMEN-OWNED BUSINESSES
$1.4 TRILLION
IMPACT TO THE U.S. ECONOMY OF WOMEN-OWNED BUSINESSES
SOURCE: NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS
the roughly 10 million women entrepreneurs are minorities. Despite their rapid growth, women in business still face unequal footing. For example, 80 percent of Fortune 500 board seats are occupied by men. That inequity doesn’t help the way women entrepreneurs are perceived. “Unconscious bias still exists,” Littlejohn said. “People still don’t understand.” According to NAWBO, women receive just 4 percent of funds allocated via commercial loans and only 2 percent of venture capital. Jen Earle, NAWBO president and CEO, said the organization offers programming to help women with skills including confidence and public speaking. “Women business owners sometimes aren’t as prepared as they could be,” she said. “They get turned down (for loans) and they don’t go back. It goes back to confidence. We offer a community of support so women business owners don‘t feel like they’re going through it alone. We give them the confidence to go back if it doesn’t go right the first time.” Earle also said NAWBO is working with banks to identify institutions that are supportive of women-owned businesses. Littlejohn said one way to address
unequal access to capital would be for more women to become angel investors. That, she said, requires education and training related to how to be an effective angel investor. Progress is being made to support women entrepreneurs. The SBA increased its 7(a) lending to women-owned business by almost $300 million in 2016, and it increased its 504 lending by more than $275 million. ROOM FOR IMPROVEMENT
Public procurement is another place NAWBO would like to see women make headway. The topic originally was to be addressed by HR 5050, but Littlejohn said the issue was a dealbreaker for too many lawmakers at the time. “It was controversial, and we knew it would cost us the bill, so we dropped it,” she said. “We thought we would be able to do that by regulation or legislation later, through the National Women’s Business Council, but it actually took many years.” The federal government, which represents a more than $400 billion market, set a goal in 1994 for 5 percent of federal contracts to go to women-owned business, but no programs were established to ensure that goal was met. Congress passed the Women’s Equity in Contracting Act in
2000, but programs were not established to support it until 2010. To date, the federal government has met the 5 percent goal only once, in 2015. “Much more needs to happen with public procurement,” Littlejohn said. “I’d like to see it closer to 10 percent as we continue to build the capacity and expertise of women-owned businesses.” Some small, women-owned businesses are hesitant to take on federal contracts because of capacity issues, Earle said. LAYING THE FOUNDATION
Earle owned a music company before becoming NAWBO’s chief executive three and a half years ago. She said she never felt hindered by being a woman in business and expressed gratitude to those who came before her. “I tear up when I speak to women like Virginia Littlejohn,” she said. “When I was starting out, I didn’t really know what they went through so that I could live the life I imagined. There are still struggles, but they built a landscape so that we could have opportunities now. I’m proud of them and work they have done on behalf of all women.” David Mitchell is a freelance writer in the Kansas City area. SMART COMPANIES THINKING BIGGER®
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BIGGER | strategy S M A R T
( by Kate Leibsle )
S T R AT E G I E S
Concocting Collaborations Partnering with local businesses boosts everyone involved.
STRATEGY
Collaborating with other local businesses, including other breweries. COMPANY
Torn Label Brewing Co. 1708 Campbell St., Kansas City MO. 816-656-5459 TornLabel.com TYPE OF BUSINESS
Brewery FOUNDED
2014 EMPLOYEES
10, four full-time
H
aving the opportunity to combine three of his favorite things — beer, Kansas City and working with others — makes Rafi Chaudry’s job one of his dreams. As one of the founders of Torn Label Brewing Co. (his partners are Travis Moore, Carol Troutwine and Chad Troutwine), Chaudry works to not only to promote the brewery’s products, but also find partners the brewery can work with on developing others. “Craft beer is all about innovation,” Chaudry said. “Our fans enjoy seeing different beers.” Brewing up partnerships “Travis was a very talented homebrewer,” Chaudry said. “We spent a lot of time talking about working together and about beer.” The most visible partnership for the brewery so far has been with one of its neighbors, Thou Mayest Coffee Roasters. The two companies share geographic proximity and a similar outlook, he said. “We have a similar philosophy of business,” Chaudry said. Torn Label uses Thou Mayest cold press 32 THINKING BIGGER BUSINESS // October 2018
for its House Brew, one of the brewery’s three year-round beers. The collaboration came to life with a lot of trial and error, mixing beer and coffee until the perfect blend emerged. “We worked with them to talk through the whole process,” he said. “How we wanted the beer to be; how they wanted the coffee to be used, rather than just picking up the coffee and brewing. It was a real collaboration.” ‘Relationship-based’ collaborations Many of the other collaborations for the brewery come from its liquor distribution, bar and restaurant partners, and even other craft breweries. “Everything we do is really relationshipbased,” Chaudry said. “These guys sell our beer. They understand what we are doing, so we’re able to talk through concepts, promote them, etc..” As for working with competitors in the craft brewing industry, Chaudry says those projects are a fun way to showcase what’s going on in Kansas City with craft breweries. Torn Label has some exciting projects
coming up, including one with Eric Jones, who recently left Bier Station and is readying to start his own place. Getting to know Jones when he was a bartender at Bier Station (which serves Torn Label), Chaudry and his team are excited to help him with the new venture. The brewers also look forward to being back up to full capacity and more when it comes to production. A recently completed expansion will mean more beers on tap. “We had been running low,” Chaudry said. “While it’s a good problem to have, we are looking forward to being back on top of our inventory.” The brewery recently embarked on an expansion, which may lead to more collaborations. Right now, there are limitations to the amount of beer the brewery can produce, so the year-round flavors have to come first. “Sometimes we are limited by capacity,” Chaudry said. “We have very few empty days.” Kate Leibsle is a freelance writer in the Kansas City area.
SMART STRATEGIES Want to do more with your business? Get smart.
Torn Label Brewing Co. collaborates with other small businesses in Kansas City. The brewery worked closely with Thou Mayest to create its House Brew, a beer with cold press coffee. With a recent expansion, Torn Label hopes to increase partnerships with local companies. (Photo left courtesy of Blacktop Creative)
Our Smart Strategies articles offer advice from experts and experiences from other companies about what works—and what doesn’t. Whether it’s a learning opportunity or just a refresher, these guides offer a resource for owners to think bigger and do business better. Want to share your expertise with our audience? Contact editor@ithinkbigger.com with a topic and description of a proposed article.
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SMART COMPANIES THINKING BIGGER®
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BIGGER | marketing S M A R T
( by Julie Walter )
S T R AT E G I E S
The Truth About Direct Mail What your printer and post office don’t want you to know
A
s one of our oldest institutions, the mail process has surprisingly been able to maintain an air of mystery for many of us. How much will this cost to mail? How long will this take to get there? Will the packaging hold up? In a world reliant on ROI, these unknowns can quickly squash the soundest direct mail strategies—and that’s even before we’ve received pushback from our printer.* Unconventional ideas will always be challenged, as what’s standard and comfortable is usually cheaper and easier. Your printer and post office may challenge your big direct mail ideas, but we’re here to reassure you and share the truth about direct mail so that you can conceptualize with confidence. Size doesn’t matter. Whether you need an envelope enclosure or are thinking about a self-mailer, you don’t have to pick an off-the-shelf size. There are set, standard sizes for what is machinable by the U.S. Postal Service if you want to save money; however, the shape and size of your piece can be the difference between getting put on the top of the stack or tossed in the trash. It is also possible to stay within the size guidelines for ease and cost savings and still create uncommonly sized pieces, so don’t let these hold you back. Envelopes don’t stop at No. 10. Your printer may discourage you from creating an unusual or custom-sized piece as well in an attempt to help keep your costs down or to make you use what they have in stock. Occasionally a printer will even push back on a preformatted envelope request if the size is uncommon and one they’d have to order or make custom. 34 THINKING BIGGER BUSINESS // October 2018
If the unique size of your direct mail piece is important enough to your concept and to the success of the campaign, it is worth fighting for. You can mail anything. Sort of. Did you know you can mail a potato? No really, there are at least four different websites you can go to right now that will mail someone a potato for you. As long as you have the correct postage and are not mailing something that’s explicitly prohibited, then go for it. Last summer, we mailed a bunch of orange pool noodles, so we can vouch for this. There is more paper than what’s on the shelf. Next to the physical size of the direct mail piece, paper also plays an important role in
the first impression. Selecting the right paper can be an intimidating process, not to mention your printer might also be trying to nudge you toward something standard and off-the-shelf. Don’t be a paper pushover and settle for something that doesn’t fit your brand. There are a number of resources for specialty preformatted envelopes and seemly endless paper options to choose from for your mailer, so it is worth your time to work with your printer and get what you want. Don’t back down With all of these obstacles and perceived parameters to direct mail, it’s no wonder people turn to digital solutions to reach their audience. Although digital marketing can be highly effective and the best method in some instances, the inclusion of a print campaign could be the right move to break through
the clutter. Plagued by incessant pop-ups and overflowing inboxes, our audiences have all but tuned us out online. It’s a touchy subject among creatives, but we still believe physical, tactile print design is an important part of a balanced marketing strategy. *Note: All this being said, it may seem like we’re giving printers a hard time—and as a company that still does a decent amount of print work, the last thing we want to do is knock our printer friends. Not every printer will be inflexible and push back against out-of-the-box ideas. It’s important to have a print partner that you trust and that understands your goals and expectations. A great printer will not only welcome your ideas but will work closely with you to execute a successful direct mail campaign that meets your objectives and brings home a win. Julie Walter is a graphic designer, copywriter and above-average foosball player at Reactor .// reactorkc.com
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SMART COMPANIES THINKING BIGGER®
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BIGGER | law S M A R T
( by Norman Siegel )
S T R AT E G I E S
How David Can Beat Goliath Small business can compete with big guys in court.
E
ntrepreneurs take on a lot of risk to pursue their dreams. Financial risk, product risk and market risk are always at top of mind. But another important concern is legal risk. What if a business owner learns that his or her idea has been pirated or a big conglomerate shirks on a contract? Taking on a large corporate opponent is formidable enough — when you add in the potential cost, it can be downright frightening. Most attorneys charge an hourly rate for time spent on a case. According to Missouri Lawyers Weekly, the average rate in Kansas City is nearly $400 per hour. Highly specialized and experienced attorneys often charge twice that. 36 THINKING BIGGER BUSINESS // October 2018
For litigation that goes on for months, if not years, this cost can be significant enough to dissuade entrepreneurs from pursuing even a strong case against a well-financed opponent. Indeed, the typical hourly rate model puts all the financial risk of a case on the client. No matter the outcome of the case, the client is responsible for compensating the attorneys for their time. This can amount to hundreds of thousands of dollars, win, lose or draw. For small business owners with limited resources, this may not be feasible. What can they do? How Contingency Fees Work When entrepreneurs need to fight their own Goliaths, they shouldn’t have to worry about how they’re going to afford the battle. That’s where contingency-based arrangements can help. Under the contingency model, attorneys receive a percentage of any award collected; fees vary based on the result achieved for the client. If the attorney cannot successfully
negotiate a settlement or win a jury award, the client pays no fees to the attorney. There typically are no upfront fees, retainers or hourly billing. Although contingency fees are well-known for their use in personal injury cases, they can be effectively deployed in business litigation as well. Entrepreneurs can use the contingency model for many types of business disputes, among them: » Antitrust » Breach of contract » Breach of fiduciary duty/interference » Fraud and misrepresentation » Licensing, copyright and trademark
infringement » Patent infringement » Racketeering/RICO violations
Two examples of the contingency model in action for small businesses: » A franchisee was informed by the fran-
chisor that it planned to buy him out. The franchisee had operated his business for three decades and wanted to pass the
business to his daughter. Under the contingency model, the franchisee was able to stand up to the $4 billion franchisor and prevail after a long and contentious arbitration process. » A technology professor created software
that analyzed mutual funds. He discovered that his biggest potential customers — the country’s largest investment banking firms — were pirating his program and making it available to thousands of brokers without permission (or payment). Through the contingency model, the homegrown company took on several massive defendants and recovered more than $9 million. Why Contingency Fees Make Sense for Entrepreneurs Simply put, working on a contingency fee basis aligns the lawyer’s risk with the client. The attorney is only successful if the client is successful.
More importantly, this arrangement gives everyone access to the justice system. It ensures that those who have been wronged — even small and medium-sized companies — will have equal access to a lawyer and are able to protect their legal rights. David may have appeared to be the underdog in the fight with Goliath, but he was still given the chance to compete. And in the end he was successful. If you are facing your own giant, ask your lawyer for alternatives to the billable hour, or consult with a law firm that specializes in contingency fee business litigation. As a small business owner, remember that there is a way to fight and defend your rights — without draining your savings on billable hours.
Taking on a large corporate opponent is formidable enough — when you add in the potential cost, it can be downright frightening.
Norman Siegel is a partner at Stueve Siegel Hanson LLP, and has litigated on behalf of small businesses for more than 20 years. siegel@stuevesiegel.com // (816) 714-7112
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SMART COMPANIES THINKING BIGGER®
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BIGGER | hr S M A R T
( by Erica Brune)
S T R AT E G I E S
Small Business Guide to Pay Equality Be proactive to avoid discriminatory practices.
A
s a business owner, I have always believed in the philosophy of paying employees what I needed to hire the right person for the right job. I certainly could not afford to pay them more than they needed, or asked for, and every dollar saved would be reinvested into growing my business. This seemed like a win-win. If I placed a job opening for a receptionist and published that the job paid $40,000, would I be shooting myself in the foot if the ideal candidate would have taken the job for $35,000? In hindsight, this was the wrong approach. While every dollar saved and put to the bottom line is a rational and realistic way to grow and sustain a business, paying employees only what they request can, and will, lead to discriminatory hiring practices. Here’s why ‌ 38 THINKING BIGGER BUSINESS // October 2018
Pay Grades Many industries have published pay scales in place. For example, lawyers in medium-sized to large firms pay associates based on how many years they have been out of law school. First-years earn X while second-years earn Y. In many cases, educators also earn salaries based on years of experience equalized across the district. In a small or midsize business, it is much harder to have such regimented pay grades. Even with 75 employees, you may not have more than a few people doing the same job. And typically, those job responsibilities change frequently based on the growth of the business. In addition, the wide range of experience and skill may vary among those
in similar positions. Take an advertising agency for example: You may have two account managers who have similar job descriptions and do the same basic job functions each day, but one employee has 20 years of agency experience and another has five. Both employees are successful at their jobs, but should they really earn the same wage? Also, do you have to change their job titles to justify paying the more experienced employee more to dissuade discrimination? Thanks in part to public sentiment and media attention, some states are seeking to address these issues. Most recently, The Diane B. Allen Equal Pay Act went into effect July 1, 2018, for the state of New Jersey. The new law entitles employees to an
equal rate of pay and benefits for substantially similar work – defined as similar skill, effort and responsibility. An employer may scale pay if it can demonstrate that it is based on seniority, merit, or one or more bona fide legitimate factors. Be Proactive So how do you adopt equitable employment practices when you operate a small business?
1
Course correct the way you recruit. Identify the job need, the skills required and publish the pay scale. In my previous example, I could post a job for a receptionist with less than three years’ experience and say the salary range is $30,000 to $40,000 based on experience. The common reservation for doing this is that all candidates will ask for the full $40,000 regardless of experience and decline if they are only offered $30,000.
Pay equality is a hot topic, with new laws emerging to protect employees and high-profile companies making public changes to employment practices. in this same well-intended company. This is typically attributed to not publishing the salary scales by position and ensuring department hiring managers stick to them.
to address discrepancies head-on. Being proactive will help protect your business from possible exposure while fostering a healthy, productive work environment.
Protect Your Business Pay equality is a hot topic, with new laws emerging to protect employees and highprofile companies making public changes to employment practices. It’s important to understand how your organization stacks up against workforce pay equality. Consult with a payroll expert and a trusted human resource professional
Erica Brune is president of Lever1, a professional employer organization (PEO) in Kansas City. Lever1 offers services in risk management, human resources, payroll, employee benefits and compliance. www.Lever1.com // 816.994.1300 // info@lever1.com
2
Review your current workforce and compare titles and experience. In the above agency example, changing the title of the 20-year veteran to senior account manager and adding to their job description that they serve as mentor, trainer or other role that they are likely already doing will clearly define the pay grade difference. On the flip side, if the jobs are truly equal, take the time to evaluate why they should be paid differently. It is much harder to change the structure of current employees than new applicants. Putting an action plan in place to streamline the wages or job duties over a 12-month period will allow you to budget and plan for needed changes.
3
Continually monitor. Studies show that adjusting to equality can’t be a one-time fix. In 2015, Marc Benioff, CEO of Salesforce, announced that the company had investigated the wage gap within its organization and would spend millions of dollars to bring the salaries of female employees to match that of their male counterparts in the same position. However, a recent study revealed that once again, pay scales are completely out of balance
NAWBO KC
Oct 18 2018 WOMEN IN BUSINESS SUMMIT FEATURING VIRGINIA LITTLEJOHN MOTHER OF HR5050, LISA CHASTINE AS SEEN IN O MAGAZINE, AND MANY MORE
NAWBOKC.ORG
SMART COMPANIES THINKING BIGGER®
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BIGGER | customer service S M A R T
( by Chris Nastav )
S T R AT E G I E S
Choose Content Over ‘Cool’ Factor Let logic, not emotions, guide website design.
D
on’t change the look of your website just because you think a competitor’s website looks cooler, newer, fresher! That’s an interesting tip coming from a web design company that makes money when people rebuild their websites. You’d think I’d want you changing your site every couple of years. All I can say is, as a small business owner myself, don’t succumb to emotions with regards to your website redesign decisions. Of course, you should always pay attention to your website and what your competitors are doing. But if you’ve updated your website in the last two to three years, it’s not imperative that you change it again to give it that new “cool” home page. Don’t Let Emotions Drive You QUESTION // What do your customers want when they come to your home page? (No really, stop and take a moment and answer this question in your mind before reading further.) ANSWER // I absolutely guarantee you that the top thing on the mind of your customer is NOT how new and cool your website home 40 THINKING BIGGER BUSINESS // October 2018
page looks. The first thing on your customer’s mind is: “Does this company have what I need?” And they want that answer within five seconds or less. What is happening with the new “cool” website design strategy is to create longscrolling visual representations of your company. I’ve heard marketing companies describe it or defend the practice that you should build a company “experience.” As people scroll down the length of your home page, their positive experience builds piece by piece. First you have the brand, then a large image, then a video, then a testimonial section, then a contact form, then a section for each business service, then a section with awards or credibility icons, then a section for social media conversations, then a section for etc., etc., etc. If you make your potential customer scroll down through a long visual show of emotional website “coolness,” in reality they are going to be racing to the back button. Consider the User One of biggest mistakes I see business owners make is falling in love with the look of their competitor’s websites. I hear it from
owners all the time: “Their site is so cool. I want to make my website look like theirs.” Business owners, consider this: The top three groups you are making a website for are new customers, existing customers and Google. You do not see the owner of the company in this top three list. From a website design perspective, you should have at the top of your home page all questions answered for a potential customer. Don’t make them scroll down through a long website to get the quick answers they want. (What Google wants from your home page is text content. Lots of it.) Once you’ve satisfied a potential customer’s five-second need-to-know-it-now questions, then you can focus on the rest of your website’s presentation. The cooler you make a site’s home page, the longer you make the home page. The more visual sections you have on the home page, the harder it is to quickly answer a prospective customer’s questions. Focus on Answers So when deciding whether you should upgrade your website to that new, cool, fresh look that your competitor might have … STOP! Turn off your emotions. Look at your
From a website design perspective, you should have at the top of your home page all questions answered for a potential customer. current website, and ask yourself: In five seconds or less, does my website tell my potential customers what I do and how they can get a hold of me? If it doesn’t do that at the top of your site, then trust me — creating a new, cool, long-scrolling website with YouTube Videos, cool graphics, Twitter feeds and other social media feeds won’t keep them on your website. American consumers get bored very quickly, and they want their answers NOW. Give it to them first and foremost, then worry about the “coolness” of a new website later.
Chris Nastav is owner of KC Web Specialists, Kansas City’s web design, SEO and Google PPC Experts. 913-489-7866 // info@kcwebspecialists.com
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GIVE BACK Looking for something to do? Bring your talents to SCORE and volunteer. You will share your skills and expertise helping small businesses achieve success. Come work with other enthusiastic professionals. Join us at KansasCity.Score.org
(816) 235-6675 SMART COMPANIES THINKING BIGGER®
41
SCALEUP! KC
P O S H R E S T O R A T I O N FA C I L I T I E S
( by Dawn Bormann )
Stimulating Growth ADVISERS URGE SCALING BACK TO RAMP UP BUSINESS hristina Williams has spent years in the beauty industry styling and creating perfect hair for clients. She knows every product on the market to strengthen, revitalize and promote hair growth. But when she opened Posh Restoration Facilities in 2015, the cosmetologist knew she wanted to offer something different to clients. Williams became a certified hair loss practitioner through the U.S. Trichology Institute. Then she began creating all-natural products tailored to her clients’ needs for hair loss and skincare. She quickly gained a following from clients eager to hear her expertise and try her natural serums and masks. Williams heard from so many people quietly suffering from hair loss
C
42 THINKING BIGGER BUSINESS // October 2018
that she knew her Westport shop could be so much more. That’s why she turned to ScaleUP! Kansas City to help scale and plot her next move. ScaleUp! is a free program offered by the University of Missouri-Kansas City Innovation Center with support from the Ewing Marion Kauffman Foundation. The program includes classes, peer mentoring, professional guidance and more. It’s open to small businesses like Posh Restoration Facilities that operate in a market capable of supporting more than $1 million in annual sales and who want to rapidly grow their business. SCALING BACK TO FOCUS
The classes had an immediate impact on her business. ScaleUP! advisers urged Williams to think about what sets her company apart from competitors. What is she the best at? It was easy to identify. Williams’ No. 1
product has always been a growth serum. She already was selling it to select professionals, but ScaleUP! advisers pushed Williams to look for more ways to get the product to customers. The entrepreneur is working to place it health stores, including grocers and medical-related shops. Williams often has cancer patients seek her shop out after hair loss, so now she’s thinking about ways to proactively find them. Williams also listened when ScaleUP! advisers told her that in order to grow, she had to give up the plethora of traditional salon services she offered in order to focus on her natural hair and skin products and consultations. It was one of the most uncomfortable moves Williams has made in her career. She spent years filling her cosmetology chair with traditional hair clients. But ScaleUP! advisers showed her — using financial projections — why it was the right move and didn’t need to be scary.
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“It’s really hard to be purposeful when you’re doing 20 different things,” she says. “That was my biggest aha moment.” MAKING CHANGES
After ScaleUP!, Williams has focused almost entirely on consultation for hair and skin products at her Westport shop. She helps clients determine what’s causing their hair loss or problems. Then she creates a guided path forward. The consultation, ScaleUP! advisers reminded her, sets her apart. Clients already can order products online or at the store. In fact, many prefer to do that since many people don’t like to talk about hair loss. But Williams can use her experience to sit down and offer more answers to clients. ScaleUP! advisers convinced Williams that by focusing more on consultations, she can reach more customers. Williams said it’s already reaping benefits. She’s able to see more clients and help them
determine lifestyle changes, select natural products and understand what environmental problems could be affecting hair and skin growth. It also takes away the stigma of hair loss, she says. “Hair loss is one of those things that we cover up, we conceal,” she says. “I do feel like we’re in a time now where people are desperate for results. Really, there aren’t a lot of places you can go that can help you.” One of the biggest changes at Posh Restoration happened this year when Williams unveiled her restoration bar, featuring 100 different natural ingredients to help clients with skin and hair needs. Clients can come in for a consultation and leave with at-home hair and skin masks. The move is a direct response to ScaleUP! advisers who pushed her to think about the clients who don’t have time to sit in her salon while she applies a treatment for them. It’s another move she took after ScaleUP! showed her how to focus on finances in a new light. “I struggled with the idea of how do I project what I’m going to make. I either have it or I don’t,” she says. ScaleUP! experts helped her to project how much she has historically made. Then she can maneuver to do new, purposeful ideas without fear of financial ruin. The exercise showed her the importance of tracking finances regularly. MEASURED GROWTH
Longtime customers have responded well to Williams’ natural products and her guided help to get their hair, scalp and skin looking stronger and healthier. “It’s a little more expensive, but in the long run it’s cheaper because you’re not buying products that don’t work,” said Carol Fleming, a customer. Fleming doesn’t have hair loss but she is concerned about the damage done to her hair after working out five days a week. She goes to Posh for a steam treatment and mask that helps moisturize her hair. “My hair is a lot healthier. My scalp is a lot healthier,” she says “It’s growing.” Williams has big dreams of franchising and adding locations. ScaleUP! coaches quickly got behind that energy. But they also taught her a valuable lesson: Don’t scale until the
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Posh Restoration Facilities PRFFacilities.com Posh Restoration Facilities specializes in creating all-natural hair and skincare products that strengthen, revitalize and promote growth. ARE YOU READY TO SCALE UP?
ScaleUP! Kansas City – a free program for KC small businesses – is looking for companies that want to supercharge their growth. Learn more at ScaleUpKC.com
foundation is set. Her ScaleUP! coach actually urged Williams to slow down a bit. The coach advised caution when Williams opened a pop-up location on the Plaza in addition to her other facility. Williams wanted the bigger space to promote her product. She envisioned space for education and exercise classes that promote healthy skin or hair. “Slow down, you don’t need to scale yet,” her coach advised. “Until you bust out of those seams, you stay right where you are and use the heck out of the space.” In hindsight, Williams admits that the pop-up store did OK but she wasn’t ready to scale yet — her coach was right. It was a tough pill to swallow at first, but Williams agreed and shifted her focus back to her original facility. “A lot of times we do put gas on things that we need to put brakes on,” she says. Overall, Williams would recommend the ScaleUP! experience to any small business owner ready to think bigger. And, she adds, it was free. “To get 16 weeks of classes that’s going to help you take your business from just existing to driving,” she says, “you can’t put a number on that.” Dawn Bormann is a freelance writer in the Kansas City area. SMART COMPANIES THINKING BIGGER®
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SMART HEALTH CARE Sphere3 has created a health care analytics platform called Aperum that captures data about hospital patients’ experiences. (Photo courtesy of Sphere3)
44 THINKING BIGGER BUSINESS // October 2018
COMPANIES ENGAGE WITH PATIENTS FOR BETTER EXPERIENCE, RESULTS hen it comes to the health care industry in Kansas City, there are some big players— Cerner Corp., Blue Cross Blue Shield of Kansas City and several hospital systems. These organizations are often in the headlines. Yet some smaller companies are carving a niche for themselves by providing patient-centered care in their own way.
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FOCUS ON FUNCTIONAL MEDICINE
Since the early 1990s, functional medicine has come into the health care arena as a new way to help patients through a systems-biology approach. With functional medicine, patients and physicians work together to identify the root cause of disease and treat the whole system, not just symptoms. Two years ago, Dr. Michael Simmons formed Navitas Health Group, a health and wellness group that uses this approach. Now with four employees, Navitas serves the KC metro area, southeast Kansas and Northeast Oklahoma. Simmons, who is CEO and medical director, created Navitas after his own health crisis. “I suffered two strokes before age 40 Dr. Michael Simmons & Nikki Privitera and was in a wheelchair with traditional medicine giving me no hope to walk again,” Simmons said. “I was a busy physician and didn’t know there was another way to help people be healthy.” Simmons explored the root causes for his health issues, got treatment and adopted the approach. “I knew I had to share with and treat patients with this new SMART COMPANIES THINKING BIGGER®
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Navitas Health Group uses functional medicine and health coaches who work with patients to get to the root cause of their ailments.
“We utilize health coaches in developing a plan with accountability, and we partner with functional medicine to get to the root cause of disease to eliminate or at least mitigate chronic disease.” Dr. Michael Simmons // CEO, Navitas Health & Wellness
knowledge,” he said. Navitas goes beyond disease management. “We utilize a scientific-based education platform to re-educate people about what it means to be healthy and how,” Simmons said. “We utilize health coaches in developing a plan with accountability, and we partner with functional medicine to get to the root cause of disease to eliminate or at least mitigate chronic disease.” In the last six months, Navitas has experienced a 25 percent increase in business. Word of mouth has been key. The company also offers live seminars to educate potential 46 THINKING BIGGER BUSINESS // October 2018
patients. While there is competition, Navitas focuses on personalized care for each patient. “We are providing education for patients so they can impact not only themselves but others in their home and community,” Simmons said. COMBINING TECH, EDUCATION
More than 6 million people in the United States have been diagnosed with Autism Spectrum Disorder (ASD). iSocial is a Kansas City company laser focused on helping those on the spectrum develop social skills through a therapy curriculum.
Under the leadership of CEO Bob Etzel, iSocial uses high-tech tools to help those with autism, including a virtual reality gaming platform for children and a smartwatch application. Startup iSocial operates using the SaaS (software as a service) business model. Etzel’s 30-employee company partnered with the University of Missouri and the Thompson Center for Autism in Columbia that developed a specialized curriculum and tech tools. With $12 million in grants, the program took seven years to develop. “In the VLE (virtual learning environment) version, students and implementers appear as avatars where they interact with one another to develop social skills,” Etzel said. “Many children with ASD who won’t talk to others in person will speak when using an avatar to represent themselves.” The curriculum consists of five units with a total of 32 lessons that cover everything from recognizing facial expressions to taking turns in conversations. Sixty schools across the nation are using these lessons with success.
“Eight independent university research studies found that we ‘significantly’ improve social skills. In fact, 65 percent of the 500-plus students improved in all five social areas tested.” Bob Etzel is CEO of iSocial, a virtual reality platform for children with autism
Bob Etzel // CEO of iSocial
that helps them to learn social skills. (Photo and screenshot courtesy of iSocial)
“Eight independent university research studies found that we ‘significantly’ improve social skills,” Etzel said. “In fact, 65 percent of the 500-plus students improved in all five social areas tested.” Etzel said his company is poised for growth. iSocial has exclusive rights to commercialize the intellectual property and is working with an education firm with offices in London and Boston. “We have an exclusive agreement with Sandbox & Co to team with them in advancing our education brands,” he said. “Sandbox & Co brands reach about 20 million teachers,
parents and students globally every month.” IMPROVING HOSPITAL EXPERIENCE
Sphere3 has carved its own niche in the health care world. CEO Kourtney Govro works with a team of 10 employees that offer a health care analytics platform, Aperum, that helps improve patient experience and outcomes. “We work with hospitals to provide realtime patient experience analytics at the point of care,” Govro said. “This includes clinical alarm analytics from anything that rings, dings or buzzes and indicates a patient’s condition or need. The platform includes an enterprise
multifacility database that normalizes multiple vendors data into one visualization tool … and a patient-experience rounding tool.” Like Simmons of Navitas, Govro was motivated to create Sphere3 following an incident when her son was hospitalized. “I pushed the button for help and did not receive it for 30 minutes,” she said. “It wasn’t a life-threatening need, but it was one that caused a very high level of frustration with the hospital. It was also frustrating because I had grown up in the nurse-call industry … so I knew how they were supposed to work.” Following extensive research, Govro created a consulting firm. “We became the industry-leading experts in clinical alarm design very quickly in 2009,” she said. Sphere3’s software is patent pending. “It has won a lot of awards such as the Gartner Cool Vendor Award,” Govro said. Sphere3 also earned Thinking Bigger’s 25 Under 25 Award in 2017. Today, Sphere3 provides consulting services, deployment services and ongoing support for hospitals in technology transition. “We have two models — a subscription model where our services are baked into our pricing, but as we have grown we have identified that hospitals have patient experience managers and it’s better for them long-term to purchase the software and hire us for support as needed,” she said. SMART COMPANIES THINKING BIGGER®
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Sphere3 recently landed a deal to expand its platform to hospitals nationwide. (Photo courtesy of Sphere3)
Among Sphere3’s local clients are Cass Regional Medical Center and North Kansas City Hospital. Recently, Sphere3 signed a national distribution agreement to take its software across the country. “We have been hired by several hospitals and larger companies to supply consulting services for smartphone deployments at hospitals,” Govro said. “It’s a very unique niche — as hospitals switch to a new smartphone platform, they need a team that can help them navigate that and provide insights 48 THINKING BIGGER BUSINESS // October 2018
into measurements of adoption, adaptation of process and return on investment insights.” Sphere 3 has had great growth in the past three years, beating its revenue goals. “But more importantly, we have seen increase in our users using the product,” Govro said. “That’s what I measure as success — we monitor the adoption and use rates of each client every quarter, and it’s a big deal to our team.” Govro takes great satisfaction in her company’s growth, as well as seeing changes
in the day-to-day operations of hospitals. “The real change comes directly from the leadership’s ability to adopt new practices and integrate data into their everyday decision-making,” she said. “I have seen hospitals make huge improvements.”
Ruth Baum Bigus is a former managing editor of a weekly newspaper and a longtime freelance writer.
EQUITY BANK NAPKIN STORIES
K A N S A S C I T Y T R A N S P O R TAT I O N G R O U P
GOING PLACES BILL GEORGE HAS CARVED OUT A LANE IN THE ON-DEMAND TRANSPORTATION INDUSTRY—AND RIDDEN IT TO SUCCESS. ill George’s company helps people who are going places get to their destinations. “Going places” is an apt description of George’s company too.
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As the CEO of Kansas City Transportation Group (KCTG), George sets the strategic direction of the Midwest’s largest private passenger ground transportation company. KCTG has grown to include several well-known industry brands—SuperShuttle, Yellow Cab, 10/10 Taxi and Carey Black Car Service —operating in 19 cities.
usually messes it up.” Even though he and his father didn’t always agree, George credits his father with allowing him to develop his business savvy without fear of repercussion. Even though he and his father didn’t always agree— George credits his father with allowing him to develop his business savvy without fear of repercussion.
SHIFTING GEARS An observation George Bill George made while living in Johnson County led to an “aha” moment CHRYSLER TO CABS that accelerated KCTG’s growth: It George and his father landed in the was nearly unheard of to get a cab in soon-demand transportation industry by uthern Johnson County. “The reality was, accident. The elder George’s Chrysler there were no cabs out there because dealership sold cars to two cab there was no demand, and there was no companies that went bankrupt in the late demand because there was no supply,” 70s and early 80s. So, he and some parGeorge said. tners formed Metropolitan Transportation Based on the feedback George got from Services and bought the assets of the his neighbors, KCTG introduced 10/10 two bankrupt companies. Taxi, a service that charges $10 for up Bill George joined the company in 1985. to 5 miles with a cab arriving within 10 Together, the father-son duo expanded minutes.It started with five cars. Within 18 the company, eventually selling it to months, it exploded to 180 cars. Coach USA in 1997. Bill George stayed on “Ninety percent of that business was with the new company and expanded its net new,” said George. “We took a little bit portfolio, before buying back the Kansas of share from some others, but the City operations and renaming it Kansas majority was just brand-new business.” City Transportation Group. In 2007, George sold to French-based Transdev. From George anticipated the disruption that Kansas City, George oversees Transdev’s Uber and other ride-sharing companies portfolio of cab companies around would create. Instead of seeing them as the country. competitors, he credits them with “doing NAVIGATING THE GENERATIONS George spent weekends, summers and holiday breaks in his father’s business. Despite that firsthand experience of his youth, he’s never taken success for granted. “There’s the theory of thunder, wonder and blunder between the generations,” he said. “The founder comes in with the thunder and everything happening, the second generation just wonders and wants to hang on, and the third one
something we would never have been able to do”: change people’s behaviors.
He introduced zTrip, a Smartphone app that lets customers hail a car or a taxi for immediate pickup, for later in the day, or even later in the week.Uunlike popular ride-sharing services, zTrip’s drivers are professionally-licensed and insured. “We look at what customers want, how we can profitably take the pieces we want
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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, Arkansas and Oklahoma. 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
and put together a multi-faceted operation that serves both the back seat customer and the front seat driver.,” George said. FUELING THE BUSINESS KCTG has found the right financial partner in Equity Bank. “It’s nice because Equity has the resources to make the loans we need to buy equipment. More importantly, they believe in entrepreneurs and understand their business,” said George. George notes that his business is rather unique, but that hasn’t hindered Equity’s understanding of KCTG’s goals. “In a business like mine, they understand that I know the business, and they ask me good questions,” George said. WHERE’S KCTG HEADED? George estimates that in Kansas City alone, the market for on-demand transportation has increased 400 percent in the past 5 years. He cites the last study done at KCI airport: 91 percent of the passengers arriving at the airport did so by private passenger vehicle. “To bring that 91 percent down to 81 percent? We can double our market share. So, that’s where we’re focused: How do we get people out of their cars?” SMART COMPANIES THINKING BIGGER®
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BIG | shots
Thinking Bigger team members include, from left, Jennifer Gamble (right of post), operations and events manager; Katie Bean, editor and managing director; Lisa Rockett, sales manager; and Eddie Wilson, CEO of Affinity Worldwide, parent company of Thinking Bigger.
Thinking Bigger Business Media celebrates its new office in Kansas City’s River Market at a ribbon cutting with the Northland Regional Chamber of Commerce. The new office is at 116 W. Third St., Suite 203, Kansas City, Mo.
Riding for car seats “Bean Baron” Danny O’Neill, founder of The Roasterie, takes a solo motorcycle ride to Cabo San Lucas, Mexico, as a fundraiser for Children’s Mercy’s car seat program. He is accepting donations at give. childrensmercy.org/beanbaron. (Photo courtesy of The Roasterie)
Bronze Sales Award John Bodnar, outside sales professional at FastSigns of Kansas City North, a locally and independently owned business, receives the Bronze Sales Award at the 2018 FastSigns Outside Sales Summit in Arlington, Texas. Bodnar is pictured with FastSigns International Inc. CEO Catherine Monson. (Photo courtesy of FastSigns) 50 THINKING BIGGER BUSINESS // October 2018
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