tv Your Business MSNBC December 10, 2011 2:30am-3:00am PST
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she wanted her clothes to be made in the usa but had to find the right factory to manufacture them. we'll have that, plus how to get your business brand booming. that's all coming up next on "your business." >> small businesses are revitalizing the economy, and american express open is here to help. that's why we are proud to present "your business" on msnbc.
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hi there, everyone. i'm j.j. ramberg. and welcome to "your business" where we give you tips and advice to help your business grow. the holiday shopping season is well under way and it looks like small businesses have already gotten a boost this year. business owners are calling small business saturday a success. after millions of shoppers descended on local retailers around the country. this was the second year for the nationwide initiative that falls between black friday and cyber monday. president obama even showed his support by shopping at a washington, d.c. bookstore with his daughters. the white house, and the sba's karen mills have been encouraging shoppers to go local this year. we heard from some of you on our facebook page. here's what you had to say about small business saturday. carolyn was excited to tell us that baltimore city council president bernard c. "jack"
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young introduced a city council resolution, encouraging residents to shop small, spend big, with our small businesses. heidi said, we're supporting it with our nonprofit store with 170 small, ohio vendors products. and anya was pretty excited about small business saturday saying it's really a big thing here in phoenix. i'm so happy to see my favorite local merchants today. with such a focus on buying local this holiday season, we wanted to introduce you to an entrepreneur who is now manufacturing locally. at first, this small business owner had her products made overseas. but now, she's brought her production stateside. the shift wasn't an easy one, especially when it came to finding a factory. >> i, being from north carolina, loved the idea of trying to do something local. so, we decided to come back home. >> it may have taken a few years, but rachel weeks can
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proudly say that her entire line of high-end collegiate apparel is now made in the usa. >> right now we have about a 12-piece line. which is very women's focused. we do everything from fitted t-shirts to tailored hoodies, yoga pants, a cute lounge set that's women's underwear and tank tops. a varsity cardigan which was one of the first real fashion items we introduced to the college market. >> but the founder and ceo of durham, north carolina based school house admits that fulfilling her mission to bring production stateside hasn't been easy. >> a lot of the factories that are here are not what they were 20 years ago. a lot of the technology that's here is in some ways behind the technology that i encountered in sri lanka. >> that's where school house used to manufacture all its clothing, at a living wage gar meant factory. in the end, the distance proved to be too much. and that's why weeks and her chief operations officer, susan williams, decided to find and
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partner with local factories. >> i was part of the generation that took it away from this country. and didn't know what that would do, really, to our economy. and here i am now, 20 years later, having an opportunity to bring it back. >> weeks, who counts schools like duke, yale, the university of nebraska, and the university of cincinnati among her 100 clients, says she's done plenty of legwork. finding a factory partner is extraordinarily difficult. it was a lot of getting in the car, and getting on the phone. we've been traveling across the state of north carolina, uncovering these cut and sew facilities, and meeting with fabric vendors, and finding cardboard box manufacturers who are still here. >> since so many north carolina textile factories shut down, the search was intense. >> reviving an industry that was booming 20 years ago, and it really took a nap. and so, with school house, we are taking them out of kind of the rip van winkle stage of the nap, and bringing them back to
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life. >> if there was a door to knock on, school house was there. >> at least 120 doors to narrow it down to five. it's been a real hunt. >> as a small business owner, weeks learned that face-to-face meetings were a must. >> one of the first things that we look for when we're talking not only to management, but to actual employees of factories are people with an open mind. and people with passion and drive. >> once factories saw school house's designs, weeks and williams get a sense pretty quickly as to whether or not a relationship will work. >> when you walk into a factory that has been doing the same box t-shirts for the past 20 years, and the management has, you know, no interest in doing anything else, you know that's not a fit for school house. >> our goods are full of craftsmanship. they're very detailed. they're not just a basic t-shirt. so you have to have a desire to do something different. >> meeting with factory owners
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and managers was only the first step. williams is all about getting a feel for the place. >> i'm looking at equipment, i'm looking at speed. i'm looking at the detail work. the pride the team takes within their work. i talked to some of the operators to see what they like about working in that particular factory. >> those operators are key to the equation. their insight plays a crucial role in a final decision. >> you know, the old saying, the secretary knows it all. in an office building. it's true in a factory that the operator knows it all. >> in the course of any negotiations, school house makes it clear that they expect more than just production out of a factory. they want a partnership. >> the best kind of factory to come to is a factory that not only we bring things to, but they also bring ideas to the table. that's one of the reasons why mitt's nitts works very well for us. >> they are a factory owned by tyler and corey. >> when we had our first meeting with tyler and cory there was an eagerness there. there was a willingness and fire to want to take on something new. >> they came to us and said we
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have a line of garments, we would like for you guys to look at producing any or all of those that you can. and more importantly, we want to provide you with a consistent line. we sewed up a couple prototypes and were able to come up with a ballpark cost that fell in line with what school house needed. >> bennett was glad to learn about school house's long-term commitment to this company. that's part of the reason why the factory updated its equipment and adapted its workload. it's a partnership that will continue to evolve as long as it's a good fit for both. >> eventually that will transition over to where we're going to do a full package for them. which i think is a perk for them. they want us to be able to handle the manufacturing entirely. >> the manufacturer is our production arm. and we're their sales and marketing arm. and so i think that the relationships that we have started to develop that are like that, like the one that we have with mitt's nitts are going to be the relationships that truly take our business to school. >> as school house grows,
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inevitably, weeks and williams will have to find additional factories. >> you always need a few factories in your bag of tricks. you want to even out their production and meet the need of your production. >> not every factory visit results in a partnership but weeks is committed to products made in the usa. she wants local manufacturers to know that they'll be knocking, and that they should be ready and willing to listen. >> we're looking for creativity, and partnership and flexibility. and that's all it takes. this sort of new generation of leadership that sees what we're trying to do, wants to be a part of it, and is willing to make changes and dust off old machinery, and make it happen. >> actually met rachel earlier this year when she won an award from the score foundation and she's truly an amazing woman, and such an interesting company. let's turn to this week's board of directors to talk more about
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the issue of manufacturing here at home. and finding a factory. melinda emerson is the host of the weekly web cast called small biz chat. and she's also author of the book "become your own boss in 12 months." and nina kauffman is an attorney and the founder of askthebusinesslawyer.com. great to see both of you. >> thank you. >> the thing that stuck out to me the most in that piece is when they said we go to the factories and we talk to people who work there. and i saw you shook your head when you heard that also. what struck you about that? >> what struck me about that is really getting that sense of what's going on on the ground. that, the employees are really have their fingers on the pulse of how the company is doing, whether they truly know it or not. if you have a happy workforce, you're going to have a productive workforce. and that's what prevents problems from arising, and interruptions -- >> they're not going to tell you, necessarily when they're selling to you. i also think this company prides themselves on putting love into their garments.
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they don't want any old sweat shop making t-shirts for them. this company has said hey, we're going to revitalize the american economy with just our business and hopefully we start a trend. so, these guys really took the time to find out if they, you know, their vision met with the vision of the owners of their manufacturer. and i think it sounds like they're going to be a magnificent partnership. >> that's the other thing, when she said, they're our production arm and we are the sales arm. so she thinks of them as one company. >> well, she has to. she has to. because without them she's got nothing in her bin to sell. so it is a full partnership. they are an extension of her company. >> that's why i was really impressed with that level of due diligence she did. usually people will say can you meet my order? what's the return rate? and things like that. but going to that depth to really see how can our companies work well together, shows another level of interest. >> and the commitment to them. >> yes. absolutely. >> so that manufacturing place had to update their -- all of their equipment, and build up
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their work force somewhat, and you know, it would take commitment from school house to get that to happen. >> oh, absolutely. but i also think it has to do with the long-term thinking of the owner of that business. hey, if you haven't updated the technology and materials and machinery being used in our factory, if you want to compete for their business and other business, you've got to have the latest and greatest out there so that you can, for instance, lower your costs by being able to produce even faster with the best equipment. >> i do think for all businesses, not just manufacturing, but in general there is a lesson there about thinking of your suppliers and your vendors as your partners, not your enemies. not somebody who you have a bad relationship with. not someone you keep secrets from. >> right. also the fact that both of them had a very strong made in the usa, how important it was to support local communities, support local people, that that is also part of their value system, that they both bring. and that's important as well. >> yeah, absolutely. all right, well great, thanks so much. santa's not the only one gearing up to his get merchandise out in time for the
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holidays. here now are five ways you can save money on your small business shipping, courtesy of entrepreneur magazine. number five, talk to your shipping service provider. work with the small business specialist to match carrier's fees and services with your business's needs. four, establish transportation cost policies. let customers know when they will pay for shipping and when your business will. for example, you may offer ground shipping for free, but charge more for expedited service. three, use a postage meter. this can eliminate the need to guess the weight of your package and buy additional postage just to be safe. two, know when to consolidate. consider working with a freight consolidation service, instead of a standard shipping service, with shipments weighing more than 150 pounds. and number one, track carrier performance. poll your customers who are receiving your shipments about their experience. that way, you'll know what's working and what needs to be changed.
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getting your demographic interested in your brand is key to any business, and, according to our guests, creating a brand strategy doesn't have to be a difficult task. she has some simple exercises you can do when you're both cash strapped and time strapped, but want to build buzz, attract fans and grow your business. maria ross is the founder of red slice, a consultancy that offers brand and messaging strategies and author of the book "branding basics for small business: how to create an irresistible brand on any budget." great to see you, maria. >> thanks for having me, j.j. >> i want to just dive right into the exercises that you have. the first thing you say is create a character profile. write a character profile. do you mean of your customers? >> yeah, absolutely. a lot of small business owners tend to think that everyone is their market. and that's simply just not the case. for example, we all buy shirts, but we buy them from different places. so, i recommend that small business owners not go after more than three particular market segments, because they just don't have the budget or
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time to do more effectively. >> and basically then write who that person is, like it's the fraternity kid who wears his cap backwards and drinks beer in the middle of the night, like that? >> exactly, exactly. for each segment you want to create a person, who is jane? where does she live? what does she do for work? what is her family life like? what groups does she belong to? you want to pretend it's like a screenplay and you're writing a character. >> so you've got your character and then you talk about listing being the emotions around your brand. do you ask others? >> your brand has to evoke something emotional and psychological. what are the attributes you want to communicate and that you can authentically deliver. do you want to be playful and whimsical? do you want to be stable and conservative? what is the image that you want to portray that will attract that ideal customer. >> okay. you have the customer, you have the emotions, then you list the benefits. this is probably the easiest part of these exercises. >> it's probably the hardest. a lot of small business owners talk about themselves and what they do and what they sell.
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but you have to think about it from a customer point of view. what do they get from using your products or services? try to come up with three, and then make sure you beat that drum across all of your marketing communications. your website. your elevator pitch. this way people will remember you, instead of a laundry list of benefits that they can't possibly recall. >> okay. so you have all the things. you know your customer. you know the emotion. and you know how you're helping that customer. now, what do you do with all that information? >> well, now this is where it gets juicy. so you pull it all together and now that you know who you're talking to, what you want to say, and how you want to say it, you can use it to inform which marketing activities you invest in, and more importantly, which ones you should avoid, because your ideal customer won't be there. you can use the personality to define your design look and feel. your visuals. your website. your logo. your colors. so that you can attract the ideal customer. and then finally, with your benefits, that's what you want to embed into all of your communications, over and over again. your home page. your about page.
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your elevator pitch. your ads. because the more that you can continue to hone in on those benefits for people, the more irresistible and memorable your brand will be. >> you know, maria, i think this is so important and great, because what it gives you is sort of a touchstone to go back to. because you might come up with a great marketing idea, and then you have to go back to your character profile and say, okay, but really, is it a good marketing idea for us? really, is this funny like we want -- like we want it to be. or -- >> exactly. >> so it's a great idea. because i think a lot of small businesses lose sight of what they're trying to be. >> yeah, they tend to do what i call random acts of marketing. and having your brand strategy in place will help keep you honest and true to your decision so you can make smarter investments. >> maria ross, thank you so much for coming on the program. we really appreciate it. >> thanks for having me. >> still to come, you can make the effort to manufacture your product here. but how do you convince customers to buy american? and tired of tripping over the kids' toys? today's elevator pitcher has
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just the pick me up. 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. as the mother of three kids i know all too well how tiring
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it can be to pick up after them. fortunately, today's elevator pitcher has come to the rescue to help beleaguered parents everywhere from tripping over toys. >> hi, we're adam and amy fazackerley the creators of lay-n-go. we have three great kids who love lego but we needed a better cleanup and storage solution than what we could find on the market. >> all right, boys, it's time to clean up. >> lay-n-go is washable, and it allows kids to play for hours but clean up in seconds. mom simply tightens up the cord lock and safely stows the cord in the front pocket. we also put a seat belt strap on the back so that you could hang it up or you could put it on your shoulder for hands-free carrying. the best part about lay-n-go is that it passes the shake test. turn it over, you don't lose a piece. we're currently selling lay-n-go at lay-n-go.com, at online retailers, and also at trade shows. we're looking to raise $500,000 and pay competitive rates on the investment. we are patent pending, and we also sell a lite version called
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layen go light. it's great for life on the go. if you have any other questions, let us know or check out lay be go.com. >> oh, my god, so i can't comment on the business, but the product itself, i just need one right now. i have legos all over my house. so, okay but this is not about me. it's about you guys. me and my messy house. okay, so what did you guys think of the pitch? melinda? >> i have to say, that's probably one of the best business pitches i've ever seen. i mean, complete with the models, and you know, demonstration. even though these are your own kids. >> you guys did a fantastic job. >> great job. great job. the only other thing i would have added was what percentage you guys maybe were willing to give away in exchange. because $500,000 investment is significant. so i would have wanted to hear a little bit more about, you know, competitive rates. okay, what is that to you? because i think -- >> we're open for discussion based on the investor. >> okay. >> all right. >> great. i also like the interactivity part of it. what i would have liked to have heard a little more about, i appreciate the need for you, but what does the rest of the market
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feel? have you done any kind of market testing and what kind of market reach is there really for a product like this? so i would have liked to have heard a little bit more about that as well as your revenues and distribution plans. >> i was thinking this is the kind of pitch that you want to go to an investor who has kids. i would think. >> yeah. >> they'll get it instantly. >> i got it. i find legos all over my house, i get it. all those "star wars" things. anyhow, would you take another meeting? >> i certainly want to know more about how many units have been sold to date. i definitely think this product has legs. >> i think you brought a personable style to it and made it real. i would take another meeting. >> thank you so much. >> thank you for your modelling. good luck with your company. we appreciate you coming on the show. thank you for your advice. if any of you have a product or service and you want feed back from our elevator pitch panel on your chances of getting
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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 want to raise. you never know, somebody out there watching may be interested in helping you. it's time to answer some of "your business" questions. the first one comes from logan. he said, our customers tend to look at the cheaper price tag and buy a pair of jeans made overseas. how do we, a company that makes products in the united states get them to buy a pair of jeans made in the usa before they look at the price. a theme in the show today. >> yeah. point of purchase display. he needs to have an amazing made in the usa display in front of his jeans. i think he needs to do something with the packaging on the jeans.
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most have the plastic covering. he needs to have made in the usa all over that stuff. come up with a t-shirt line that hangs above the jeans. make it the focal point for his jean line and he won't have a problem. i think everybody in this country now, if they can buy made in the usa, they'll buy that first. i really think so. >> per happens to partner with companies who are also in that made in the usa space. he's not necessarily doing it on his own. he knows he's playing in the traffic where they are coming for whom that is an important value proposition. >> you are marketing to the same people. good idea. >> the next is from jacqueline. what is the best way to wisely add to your board of directors? the key point being wisely add. >> i think there are two things. you have a board of directors. they are the management people. you have a board of advisers.
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it may be what she's talking about. you reach out to experts in the field to give you the 360 feedback that you need to move your company forward. wise ways to do it, look for people who have expertise that you don't. the last thing you want is a rubber stamp. don't look for high flying names that aren't going to contribute. be clear about the commitment you want and what they can expect in return. >> to be clear about that up front. i want the kind of person i can call at 3:00 in the morning or the person to come to a meeting twice a year. be clear so everyone is on board with that. >> absolutely. >> strategically recruit. look for what you need. i like to tell entrepreneurs they need a kitchen cabinet for all businesses. number one, a person already in business. the second person should be someone who can give you business or has done business with you. the third business should be a mentor, someone unofficially
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mentoring you. make it official. add them to your board of advisers. the fourth and fifth person should be a lawyer, a cpa or accounta accountant. you need someone you can bounce questions off so you can get advice without necessarily getting a big. >> someone told me good advice when you put together a board of directors, think of a business party. you want people who think it's a good idea to be around the other people there so they are getting something out of it as well. >> great point. >> this is an e-mail from bob. i provide locations, prices and availability for advertising. oftentimes they get my proposal with a price for services and go straight to the vendor for reduced costs. i am left out of the sale. how do i solve this issue? >> i think there are a couple things. how much information is he putting in the proposal? how much detail? do you need to disclose the venn tors you are working with? it's a part of your advantage.
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if you are giving a lot of business to the same vendors, perhaps go to them and say look, if people are going to come to you, i can give you a list of names of people i have given to you, i want a piece of that action to have it come back from the vendor. both parties are accountable. >> it sounds like he's being an unpaid sales force for the people who sell the actual outdoor advertising or whatever it is. he needs to go and see if he can get in on a piece of that action. otherwise, he doesn't have a business. he's got a glorified hobby, you haven'tly. >> what other added value does he have if he is simply giving prices what's the point. >> he's on the wrong side of the supply chain, of course. >> this is a question from kyle. if a job requires training from a group outside the company, does the employer have to pay for it? >> absolutely. what is he thinking? i want you to work for me and
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have these skills but you have to pay for them. no, it doesn't work like that. you have to invest in them. it makes them loyal to you and stay with you longer. you have to spend money to make money. >> i would also say for perspective employees, don't come to a job expecting to be trained. if you are brought in as the bookkeeper, you need to know quick books. you need the basics of the job you are hired for. >> be careful who you hire unless you love them and are willing to invest in the training. >> you don't want to go there. >> i have issues with that. >> all right. thank you so much for all of this advice. very much appreciated. if any of you have a question for our experts go to our website. the address is openforum.co openforum.com/yourbusiness. hit the ask the show link to submit a question for the panel. again, openf openforum.com/yourbusiness or e-mail your questions and
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comments. the address is yourbusiness@msnbc.com. melinda and dena has helpful advice about how to improve your business. let's get great ideas from small business owners like you. >> i believe our great success at the protocol school is mainly based in our ability to never say no. you never think no. you never act no. and you never talk no to a client. >> too oftentimes we grill too fast without servicing the niche market which started our business and is the key nugget we can grow from. if we focus on wowing that niche market you will see your business grow. >> a lot of people find themselves with mixed goals. they want to grow their business, they want to go to the next level. they have dreams and they are passionate about it but they want to think until 12.
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your work ethics are the one main thing that is going to take you to become a successful entrepreneur. if you don't already have one, look to create a cyber security plan for your small business. check out our website of the week for help. the federal communications commission launched a small business cyber security planner that you can find at fcc.gov/cyberplanner. this free service covers the steps you should take to protect your business from cyber threats. there are ways to shield your e-mail and mobile phone from danger. to learn more about today's show click on our website, openforum.com/yourbusiness. you'll find all of today's business with more information to help your business grow. don't forget to become a fan of the show on facebook. we love getting your feedback.
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you can follow us on twitter it's@msnbc your biz. having trouble finding money for your company? >> my original goal is to raise $300,000. we raised $163,000. >> 5,264 people ended up pledging for the project. >> see how two entrepreneurs got a kick start for their businesses through crowd funding. 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.
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