employees working for free? that is exactly what one group of workers did to help their company stay in business. and our elevator picture has the solution to those embarrassing hospital gowns. see what the small business doctors orded up. that's coming up on "your business."

hi, there everyone. i'm j.j. ramberg. welcome to "your business" where we give tips and advice to help your business grow. the world lost a visionary whose work impacts millions of people, including small business owners. steve jobs. he inspired the world. he died at the age of 56. from the earliest apple computers to ipods and iphones to pixar animation. he was a template for those with big and small ideas. we were just talking that it was so sad and it's amazing, these

times when you have never met somebody and yet they have impacted your life so much you feel so sad when this happens. >> i worked with steve investing in a company building software back in 1990. i can tell you, he is -- we have lost something so huge. there was so few people that combine vision with this intense will and this complete inability to compromise that vision. >> you were telling us a story about something you showed him and it wasn't right. >> i got thrown out of his office. he said i never want to see this guy again. i loaded software. he thought it wasn't going to be ready to ship. then the head of sales says steve wants to see you tomorrow. i thought he was going to apologize. he said no, he's going to shoot you a couple times. he said look, we have to ship this on time. i said steve, it's going to

ship. he said fine. now we need to change the interface. wait you just said it needs to ship. he goes i don't care. i want you to fly the development team here tomorrow. i'm going to sit with them. he did that. they went in a bunker and i actually had to get a team member out of the psych ward it was so crazy. >> everything we have heard and heard about him. for small business owners he's a real inspiration because of what you were talking about. he's so passionate. he cared so much. he saw what nobody else saw and made it happen. it's what entrepreneurs do. >> you used the term tireless innovation. i's a great phrase. it's something small business owners can take from steve jobs. he was tireless. he always wanted to improve his products. it's not just create a product

and you are done. >> if small business people would do what he did fearlessly, become so committed to their vision they won't let the world change it. that was key to steve. that's what made him so great. cash is the life blood of any business. what do you do when you don't have enough of it? some may call it quits. one entrepreneur made a decision that could have sent him and his company over the edge. when he was strapped for cash, he turned to his employees and asked them to work for free. >> the idea of going from not paying anyone to today really has been remarkable. for me, it was heart wrenching to do that. >> rick knows all too well what it's like to be a business owner on the verge of shutting his doors. >> i watched our company

struggle at different times. we could have gone out of business so many times. >> based on mobile medical's recent success, you would never know this award winning business had such problems. >> that time, we maybe had four or five employees. i know for sure we lost one. >> those challenges made this company what it is today. at one point, things were so rough that cochran asked the employees at his vermont company to work for free. >> what i intended to do is pay everyone else and not myself. i did that as long as i could. it reached a point we needed more support. >> the builder of mobile units hit hard times in the first few years of business. >> the sale cycle on the units are very long. finding the right use, being a small company, especially in the

early days, we had limited ability to get the message out. >> while spending money on attracting customers, cochran found his company at a cross roads. >> there were hard times. there were lean times. we said we are going to have a hiatus. can we go a few weeks without pay. >> he says he refused to sugar coat the situation. >> i'm straight with my people. it's something they have come to know. if they ask something, they are going to know the truth. >> janet and colleen are two employees who worked without pay. he says employees trusted him and his vision. >> rick was very, very honest about what was going on. it was not something you could easily hide in such a small company, anyway. he didn't just spring it on us and say you are not going to be

paid. we knew it was a possibility and certain things had to occur to meet those obligations to us. >> she says her future with the company wasn't set in stone after hearing what cochran had to say. >> i considered taking another job. i interviewed me for it. i was told they would hire me on the spot. if rick had been less passionate for what he was doing and trying to accomplish and less honest individual about what the actual true circumstances were going to be, i'm not sure i could have stayed. >> she says her boss kept her motivated. >> when it came to rough spots in the business or anybody thinking that maybe the doors would be closed, we didn't want to do it. i didn't ever think of not coming into work or looking for another job. >> that wasn't the case for everyone. knowing the seriousness of the situation, not every employee

stayed with mobile medical. >> one employee, her husband came in and he sat down and was like i can't believe you are doing this. he was insis tant she not stay with the company if we could not meet payroll. >> even the employees who did stay had to have serious conversations with their loved ones. >> it was hard. you hear flak from family members and people in the community but it was worth it. >> we made a leap of faith, my husband and i. i talked to him and he said you are not ready to leave. we'll do whatever it takes and get through this. >> paychecks were halted, but he left employee insurance in place. >> the one thing we did was support the health benefit side. i felt that was the bare minimum we could provide some support. >> he said he would do whatever he could to make us feel the

least amount of pain possible during this period and he did. >> he admits the sacrifices his employees were making went on longer than he thought. >> then a few weeks turned out to be a few months. >> working close to 24 hours a day and aggressively marketing, he landed a key order that allowed him to put money toward the employee payroll. >> maybe not full pay at first, but gradually, he paid what he could. >> in time, as business continued to grow, cochran was able to deliver on a promise. he kept his word and paid his employees all lost wages. >> it was a couple years into the cycle before that finally, where i felt like i had treated them properly and fearly and compensated them for, you know, everything they had gone through. >> the employees believe it's a lesson for other entrepreneurs. they say his dedication helped

save the company. >> if you believe in something and you have faith in what you are doing and you love what you are doing, that's what counts. stick with that. >> he was honest. he said when i can, i will take care of this and i will make you whole. and he did. it's not unusual for a struggling small business to ask employees to share in the sacrifices. how do you keep them motivated when there's no pay coming in at all? let's turn to the board of directors. colleen and phil are back with us. amazing story, right? >> that's an amazing story. >> how the one woman said i had another job offer and i said no. she took the risk with him. >> you know, a lot of times you heard about business owners not taking pay. i think that's almost a given sometimes. but you rarely hear that about

employees. i don't know that i have heard of this. i kind of wonder, i have a feeling this was a few years back. i don't know if employees would be so willing to do -- to take that leap of faith in this economy. if you are the owner of the company saying it's going to turn around, it's going to turn and. i don't know. >> i think the guy is a good leader. he's got these people committed to him. where he fails, actually, is he fails in his moral obligation to his employees here. he said he did everything he could do and he followed up and paid everybody up. but he didn't do everything he could do. this kind of thing fries me. i really don't like it. he asked them to become angel capitalists for him. they are in a very weak position. hey, if i go out in the world, maybe i don't get another job. he's in a position of power. i want you to work for nothing.

he's replacing angel capital he didn't or couldn't go get. >> going out and looking for money is very time consuming and hard. if you don't know a bunch of angels -- >> call it anything you want. he's taking money from these guys. they are investors. >> he was open and honest. he said look, here is the situation. k do this. you don't have to. >> one employee left. >> they all went home and talked it over. >> it sounded like they really love this job and like working for him. they didn't want it to change. >> no argument from me. >> what if he gave them a piece of the company? >> that's what he should have done. you are going to kick in a few hundred thousand dollars. you are going to be given a piece of this company. he's saying look -- >> if he's going to do that, go out and find an angel.

>> j.j. that has point. he didn't have the time or means. >> you are talking angels but what if he got a loan from them? >> it's not a loan. go to the bank and see if he could get a loan. a loan is where you have reasonable expectations. here, it's rolling the dice. it's an old story in venture capital. come to the top of the hill. see the beautiful farm down there. i want you to come to work for me. if you work your tail off for me, it will be mine. it's what he did to them. it's not right. >> we have a little more -- >> go. >> we can disagree. if there's take aways from this that other business owners can do, i will go back to saying how open and honest he was with employees. if you are a business owner and struggling, cash flow is right, talk to your employees. maybe some will be willing to take an unpaid leave, or hours.

>> they trusted him and in the end, he paid them back. running a small business can be stressful for entrepreneurs and employees alike. one small business owner who we met a few years back decided to take matters into his own hands. he's taking a proactive approach to health and fitness in the workplace. >> work hard, play hard, but we're very conscious about health and well being. >> that's the way john describes the environment at wheeler interest. it's a company he owns and operates in virginia beach, virginia. >> we are elise and management company. our focus is shopping centers. >> he employs between 32 and 34 associates at any given time and generates $15 million a year. buying and selling property is definitely priority number one

but they are taking an ambitious approach to the health and wellness. >> this is about creating an environment that is safe and comfortable, a place people enjoy coming to work and enjoy their time here. >> the program got plenty of attention. mens fitness magazine named them one of the fittest companies. among the biggest concerns? smoking. the no smoking policy is serious business. he makes the policy clear the moment they walk in the door. usually smokers aren't a protected class of people. they enforce no smoking through hiring. it doesn't mean they don't have smokers on staff. he's helping people like the vice president pay for their smoking cessation programs. aside from the financial benefit, he says the no smoking policy is making it easier for her to quit. >> when i come to work, i'm not going to feel the pressure of knowing anybody else is going on

a smoke break. i don't have to smell it or be around it. it's frowned upon. i know i'm going to get positive reinforcement at the office. >> free cholesterol checks and blood screenings are part of it. there are no sick days. employees can work a flexible schedule, if they like. it's up to them to decide whether or not they need to come to the office. >> we trust them and they trust us. we are professionals. you can go on vacation. we don't track you on a daily basis. if you are not well or feeling well and you are sick, stay home. they respect the process. i think they know if they took advantage of it, they wouldn't be here. >> a perk involved the 24-hour gym. atlantic performance training is steps from their front door. they pay a fee so associates can work out for free.

part of it is personal training from a former navy s.e.a.l. it's a benefit they haven't found anywhere else. >> i'm here a vast majority of the time. this is how i start my day. i walk up the stairs still sweating and it doesn't stop. i knew it was a different kind of company. i met john and everybody before i started. i was utterly impressed and totally surprised. had to be here. >> while some companies offer financial incentives to get fit, wheeler says it's not in the cards for his company. he believes it sends the wrong message. >> it's an environment, a culture. we want them to feel comfortable here. we are going to give you $250 to lose 50 pounds, you jurnd mine the process. >> benefits like free work outs and healthy lunches don't do

much for the company's bottom line. the wellness plan is an investment his company will keep on making. >> at the end of the day, yes, it costs you money. at the end of the day, it's not overly expensive. it's a great benefit for them and in turn for us. it's money that is extremely well spent. are you trying to reach out to potential customers a little closer to home? here are five tips to market your business locally curtesy of all business.com. learn your three-mile radius. make sure they know you and your brand. join your local chamber of commerce. meet other business owners who are potential clients or can refer you. get media attention. send relevant news and information about your business to local newspapers and tv stations.

be nosey. listen to your customers. find out where they shop and play. stay in the loop about local events, no matter how small. finally, give back. find a local organization, cause or school to give back time and money. today's customers look to support brands that do good. phil and colleen answer your small business questions, including one about the right time to scale your business. today's elevator picture has a solution to the awkward hospital gowns. shazi: seven years ago, i had this idea. to make baby food the way moms would. happybaby strives to make the best organic baby food. in a business like ours, personal connections are so important. we use our american express open gold card to further those connections.

last year we took dozens of trips using membership rewards points to meet with farmers that grow our sweet potatoes and merchants that sell our product. vo: get the card built for business spending. call 1-800-now-open to find out how the gold card can serve your business. keeping with today's medical theme, our elevator picture developed a product to protect patients health and backsides. >> dr. fine. dr. howard. >> my name is howard, owner and marketing director of a certified minority company located in south florida called a.c.t. solution. the model is wearing a pat epted hospital gown. the e.c.t. gown has clinical

values and benefits unlike any other gown. in a number of clinical evaluations, the gown improves patients satisfaction and nursing efficiency and patient safety issues. we have sold in the first three quarters of 2011 over 50,000 of these units. there are 34.7 million patients that will be admitted in the u.s. we feel if we can capture 10% of this market, the e.c.t. gown will bring us $22 million. we are currently seeking $350,000 for a stake in the company. >> all right. eric, thank you so much. your model is your beautiful doctor. thank you so much for modelling. okay, let's go to the panel and see how you did. phil, what did you think? >> that's the stuff i like to hear. you have me nodding right away. i'm hearing good numbers.

i'm not sure what the patents are. i would like to find out. you have me hooked. what's the relationship between the capital and the ownership. i'm glad you put it out there. it's not the most important thing we have to fix now. i think you are way off because i want more of it from what you are asking. but i am interested. i have been in one of these. theer breezy. >> i know, why do they need to be so open in the back. >> i want a surgical gown with a belt. >> you know, i thought it was great. one thing i would like to hear, this is the human interest part of it. i would like to hear if nurses were involved in the design and if they would like this. they are your secret target audience. they have to sign on and like this. i have known a lot of nurses and they sort of run the show quietly. >> it was designed by a nurse with over 30 years experience. >> i want to hear that.

that's what i want to hear. >> that's a big hook. >> you got me by saying you got the patent and all the sales. >> seriously, it's a good pitch. >> thank you. >> congratulations. thank you for being a model. good luck with your company. thank you for your advice with eric. >> if you have a product or service and you want feedback chances of getting interested investors send us an e-mail. the address is yourbusiness@msnbc.com. include a short summery of what you do, how much money you are trying to raise and what you intend to do with the money. somebody may be interested in helping you. it's time to answer some of your business questions. phil and colleen are here to answer them. the first comes from an e-mail to keisha. i have an in-home agency helping seniors and people with special

needs. i'm having a hard time attracting clients. elderly and disabled clients are not on the internet. how do i get my name out there and attract clients in an inexpensive way. >> they are on the internet. they are people like me, the sons of the elderly client. i'm not elderly, yet. >> i was like wow. >> elderliness has not approached me yet. >> you are right. >> we were looking for a place for my mom and we were all over the internet. her market is just like that, i'm sure. she should be looking for what her competitors are doing on the internet and start doing it. >> i think that's a great idea. you know, first of all, this is a great, great area to be in. so many baby boomers are retiring. i interviewed two sisters who started a similar company in north carolina. they have been very successful. the way they got their name out, they went to churches, they met

with nonprofits. they did free clinics. >> doctors offices. >> yeah. old fashioned word of mouth. this is an industry where you need to have referrals, build people's trust and people refer you to someone else. i think doing the old fashioned approach. you mentioned the special needs population. a lot of businesses shy away from people with special needs, so i think it's a great niche to be in if you want to serve that community. it's a tight knit community. if you are good to them, they will tell everyone they know. how do you scale your business appropriately with -- without going outside of what your company is possible to do? >> you know what i think is interesting about this? we deal with this all the time in my company. we have so many ideas, right? we can take this company this way, this way and this way. we want to do it all at once.

how do you focus yourself and keep within your means? >> if you are richard branson, you don't. you go with it. if you are a genius and lucky, you pull it off. otherwise, you have to watch a couple critical things. just from the business, pure business side of this, watch your cash like a hawk. if it starts to go down, you are spreading it too thin and going to get burned. watch your investment returns. when you start putting money into something, a new store, a new idea, make sure the return is coming back quickly. it's called return on equity. it's what warren buffett is looking for. >> yeah. >> give yourself a time limit, too. if you say you are going to launch this, this is when we want to see money coming in. if not, re-evaluate. >> decide if you want to do it. just asking him ask this question, i'm not hearing a lot

of fire. some people don't want to expand. >> we have so much money coming in, it's blowing my mind. i don't know what to do. >> maybe he does want to expand. if he does want to expand and doesn't know how to do it, i would recommend he get a board of advisers. volunteers, retired executives, professionals in other industries who want to do it for networking and help another business out. people out there really do like good help. >> success for yourself, it's fun. >> the score organization, tons of retired executives do this stuff. >> i would reckmented he talk to score. >> if you have a question for our experts, go to our website. the address is openforum.com/yourbusiness. click the ask the show link to submit a question. it's openforum.com/yourbusiness.

the address is "your business"@msnbc.com. are you looking for a small business loan but don't know where to start? check out our we. targeted lenders. borrowers complete a loan application and are matched with lenders. they choose the best lender for their needs based on loan proposals. the site is free for those borrowing money but lenders are charged a fee for services. to learn more, click on our website, openforum.com/yourbusiness. you'll find all of today's segments with more information to help your business grow. don't forget to become a fan of us on facebook. we love your feedback. you can follow us on twitter. next week, the business is doing

great, but you aren't. is it time to find someone else to run it for you? >> it really just was overwhelming. there was a lot going on in my personal life. a lot going on with the company. i decided the best thing to do was back away. >> we'll tell you why you may need to find a ceo and what to look for in choosing one. until then, i'm j.j. ramberg. remember, we make your business, our business. sam: i'm sam chernin. owner of sammy's fish box. i opened the first sammy's back in 1966. my employees are like family. and, i want people that work for me to feel that they're sharing in my success. we purchase as much as we can on the american express open gold card. so we can accumulate as many points as possible. i pass on these points to my employees to go on trips with their families.