. small business and washington. as election day draws near, both sides of the aisle claim they know what's best for small business owners, and what do the owners of this gelato company do when the bank rejected their request for refinancing? it's a story with a sweet ending. it's time to make money next, on "your business."

small businesses are revitalizing the economy. american express open is here to help. that's why we're proud to present your business on msnbc. hi there, everyone. i'm j.j.ramberg and welcome to "your business." the show dedicated to help giving you tips and advice to make your small business grown. the issue took center stage at the the republican and democratic conventions. the gop voiced their vote with the chants of "we built it." sba head karen mills spoke to democrats about end roads in funding, while other speakers addressed the need to fuel america's entrepreneurial spirit. it's more than just lip service for some members of congress,

who support small business, and who offer differ on policies to aid main street. joining us now is a democrat from maryland and a member of the small business committee. senator, great to see you. >> j.j., it's a pleasure to be with you. thank you. >> so from your perspective, how are small business owners doing? >> well, small businesses, the economic engine of our nation, that's where job growth will see the most, we'll see innovation, it's been a tough time for all. but i think that the tools that we put in place and the help we provide through the small business administration. the credit opportunities that are available to small businesses. the tax cuts implements to help small businesses. the regulatory reforms, it's having an impact. we see the economy doing better. we're creating more jobs. i think we're moving in the right direction. >> what are the two key things you guys are focused onto try to

help small businesses? >> well, the tax code, we've already provided some tax relief for small businesses. we're looking at additional ways to help small businesses to give them break on their taxes, incentives to move forward and hire more people. we are looking at ways to ease up the frame work, particularly within the banks, so that they're more ready available to give loans to small businesses. we're looking at additional tools for government procurement. we believe it's a way to get more small businesses economic opportunities. not just as subcontractors ux but as prime contractors. i've introduced legislation. the committee has worked on legislation to make it easier for federal agencies to get contracts to small businesses. >> so senator, one of the complains i hear from a lot of small business owners that i talk to is that small business is a very broad term. i mean, particularly as defined by the government.

it goes from the sole pro proprietor to someone with 490 employees. it's hard to pass policy that fits everybody. a lot of things we hear coming out of washington is more helpful to the bigger small businesses. >> well, you are correct. the small business community is a diversified community. in my own state of maryland, we have a lot of small bioscience tech companies that start off with a few employees. some have grown into giants. so where they are along the transition depends on the health they need. the help they initially got was to get started. they appreciate the fact that they provided the basic research that gave them the basic toolses they needed to get started. otherwise they couldn't have gotten started. >> when we talk about tax breaks, do you feel like any tax breaks are particularly helpful to a small business? ten people or under? >> well, absolutely. president obama's proposal that

would provide tax relief to small businesses that are adding employees to the payroll, look, it's very difficult for a small company to add additional employees. and the t president's proposal helps in that direction. so the bill that we authorize under president obama's leadership will help small companies that are in the tech fields. so yes, particularly in helping them with the regulatory issues. we are moved that 1099 reporting requirement. the smaller companies particularly said that would have been overly burdensome on the health reform bills for under 10. there's no additional burdens in the affordable care act. >> so, senator, i want to ask you what we're asking a lot of people on the show and in the country over the next couple of months, which is do you feel small businesses are better off

now than four years ago? >> i think small businesses are moving in the right direction. four years ago it was extremely uncertain as to whether they could survive. now they know they have a bright future ahead of them. the tools put in place have helped them advance, grow and continue in business. so yes, i do think we have the tooled in place helping small businesses. >> thank you so much for coming on the program and caring about small businesses. and we look forward to speaking with you again. >> thank you, jj. >> joining me now is congressman daniel webster, a republican from florida. his family runs webster air-conditioning and eating in orlando, a business started by his father in 1961. great to see you, congressman. >> great to see you, jj. >> and congratulations on your company lasting three generations so far. >> so you have an interesting

perspective. you're a part of congress and have a family run business. as a business person with that hat on right now, what do you think needs to be done to help small businesses? >> first of all, the looming tax increases by the obama administration affect all small businesses, including ours. and the health care law, even though we don't have 50 employees, our costs have gone up since it passed 14% every year with less opportunity or bigger out of pocket costs for our employees. so it's a tough time right now. >> how much were your costs going up before the legislation passed? >> actually they were even. we were able to bargain and get a pretty good plan. sometimes a little bit less or the same. >> so talk to me a little bit. you said not extending the tax cuts would affect your business. tell me how much it will affect it. really you're paying higher taxes on incremental earnings.

>> let me give you a picture of how it works. my dad started our business in 1961, 51 years ago, and he invested everything he had. e and he also did not take a salary. my mopped as a nurse nights and weekends at a local hospital. and i was the cook. i was 12 years old. my dad also took all the money he made and paid taxes on it, just like what happened now. however, he invested that in the business. it became the operating capitol. it's still here today. it's a loan. it's money that, yes, he made. he or theed it on the tax return. that's why over 500,000 to 700,000 jobs would be affected. >> tell me if you could have for three things that could help small businesses besides those two. what would they be? >> well, here's what i would

say. i sponsored a one act. which sponsors businesses if they were to hire one new employee. if they were to do that. our unemployment rate would go below 5%. so i believe there has to be some incentive. that's what i would like to do is give a tax incentive to hire new people. it gets them off the unemployment roles. i think it's a great idea. to me that would be number one. that's what we ought to be doing. >> and do you have any other ones? >> well, i think, two, there are regulations. and they're pushing, you know, just extra beyond what the legislation actually allows. and so the current law is pressed to the limit by many regulators in federal government. and businesses, if you look at it, what they want is three cs.

one is the fact that they would have certainty. >> do you think that small byes are better today than they were four years ago? >> well, i can speak for my own. my most experience would be my own. we're not as good as we were four years ago. and there are a lot of reasons because of that. the unemployment level has not gone down. very little capitol for expansion. so there are all kinds of reasons why. and the consumer confidence is low. therefore they don't buy things. >> so your revenue has dropped today from four years ago? >> they have. by probably $125,000. >> well, thank you so much, congressman, for joining us. we really appreciate your perspective. >> great to be on. s the frustrating for any entrepreneur. you go to a lender to ask for cash, fill out the forms and do

whatever else the lender asks, and then your request is denied. it's a situation that's all too common. but you can't give up. as two entrepreneurs in maine discovered, perseverance can pay off. >> it was pretty flat out no at that point. look, we moved forward on this. now we're screwed. at that point we knew where we stood with them. >> joshua davis knows the frusation of being a business owner looking for funding. >> it was around $200,000. >> last year the coowner of the gelato fiasco needed a cash infusion so he and his business partner could open a second location. >> we decided the people believe in us and we believe in us. let's keep going and expanding. >> the number one question since we opened in brunswick is when will we open a location in portland?

why haven't we opened there? >> neither one ever thought the search for funding for the retail and wholesale business would turn into a fiasco of their own. it took five months to expand. when the time came to ask for money, they intentionally approached a bank in which theyed a had a previous relationship. >> we had existing loans that we paid on time. we have a strong record of sales and cash flow and all the things banks use to evaluate you. >> bank officials visited the location and after reviewing the plans, the message appeared to be optimistic. they said, you know, i think we have a deal here. yeah, we should be able to get this done for you. sign the lease. we'll worry about the paper work and get the loans started. we should have the money in a few weeks. >> they were ready to bring flavors to the new customers.

>> we put our security deposit down and first month's rent down. >> with renovations getting under way, things were going well until the bank appeared to take a step back. within a merit of weeks, the gelato fiasco's request was denied. >> they said we don't do that type of loan anymore. put the stress on and walk down main street. you still told me i was not even second place in the beauty contest. it was just sad. >> despite the no from the bank, these business owners didn't stop looking. they were determined to find someone to say yes. the truth is, they didn't have much of a choice. >> we started making a list again of banks and started making the calls. by then contractors had started working there. and they were expecting getting

paid to the middle or end of the job. >> it turns out pitching the idea to other potential lenders wasn't easy either. unfortunately, the odds didn't seem to be in the company's favor. >> still, a gelato business in maine is a farfetched idea to bankers, apparently. there was a lot of hesitation to consider anything. >> the other was the gelato fiasco needed money fast. that's something banks don't do. >> by the time we tried to apply to the other places, the fix was in. the game was rigged against us at that point. i wasn't too surprised they said no because if you walk into a bank today and expect them to give you an answer next week, it's not a quick response. >> the pair says tensions were never that high, but they got quite the entrepreneurial reality check. >> it was five or six noes in eight weeks or so during the time where the buildout was going on at the same time. so every day that passed, we

were a step closer to opening. we were also a step closer to really needing the financing. >> with the deadline looming, these entrepreneurs turned to a community group for help. >> they're a lender of last resorts. >> coastal enterprises incorporated hat unexpectedly gotten money from the jobs for usa funds started by starbucks. the they knew of the gelato fiasco and they were willing to help. >> about two weeks or so after we had made the call we had an approval and the sense of relief okay, we know at least how to proceed. >> the rul was a renovated store front. >> now there's seven employees that we've added in portland that have full-time jobs with health benefits and vacation. >> this quest for funding was a challenging one, but the men

have learned some valuable lessons. they simply refuse to back down. and that has them ready for the next potential fight. >> cash is king. you always have to make sure you have cash. and i see that as my job as making sure. >> the moral of the story needs to be you can't give u up, but then you also have to believe in what you're doing. to have the self confidence to keep going, you can't just let one setback end your idea. >>. >> there's no doubt the recession raised the bar in terms of small business owners getting loans. so what advice does our panel have? marketing director jeff ray heslett is the author of the new book "running the gauntlet." essential business lessons to lead, drive and grow profits. and a general partner with fly bridge capital partners. great to see you both. >> good to be here, thank you.

>> at the end of the piece. he said the moral of the story is don't give up. i thought the moral of the story is don't count your chickens before they hatch. i was watching that and felt stressed for them as they had contractors and no money to pay them. >> how can you sign a paper for a ten year lease and not have money in the bank. the real moral of the story i have is don't put all your eggs in one basket either. they should have gone to a bank a lot earlier, had that relationship, and actually be working all along. they said they paid the loans off early. but you still need to develop that relationship with that bank. i didn't see them do that. >> it sounded like they had it. they had been working with them. the banks said it looked good. >> they went single threaded. and so in this environment particularly with banks coming and going and the fortunes changing, the idea of just going single on one potential source of capital is really kind of silly. and i know it's hard -- >> do you suggest then you look

for the whole amount from different people or parts of the amount from different people? >> i think you could have chosen different sources. first, to go with one lender of any kind or one source of capital doesn't make since. you want to get some competition going. first for better rates or better terms. >> any my own small business i have more than one bank. when i don't need the money is when i go get the money. i open up the lines of credit well ahead of time. before i anticipate it. i pay it on the time. pay them down. pay them down. send them something every week so they know we're trying to do it. >> and do you guys have any other ideas of places they can go. they were lucky they found the organization. they had the money to give them. >> i would have gone to friends and family, or customers. i would imagine they had raving fans out. there it sounds like they do because the fans were saying move to portland.

maybe they should have tapped into that. picked up 50,000 or 100,000. >> these guys, if you look at their website. they've done a fantastic job of social media and reaching out to the community. there are community funding sites that have gone on. even before the jobs act. kick starer is fantastic way to think about funding smaller amounts of money. the state of maine probably has some programs to encourage the creation of jobs in entrepreneurship. >> the lendingclub.com if you're looking for a loan. there are all kinds of things. you have to be persistent. and i gsz the moral of the story, never give up. >> never give up when it comes the money. >> this was great conversation. thanks, you guys. when we come back, how to start up a business with just $100. also, we'll answer your questions on the right marketing approach for your company. and our elevator picture shows us a design line with a global flare. on every one of our cards there's a date.

a reminder... that before this date, we have to exceed expectations. we have to find new ways to help make life easier, more convenient and more rewarding. it's the reason why we don't have costumers. we have members. american express. welcome in. fashion week in new york had people from around the world sizing up the runways and cat walks for new designs. today's elevator picture has a line of apparel that speaks to

the creator. >> hi. my name is sharon. my line is call sharon gillet nyc. i create style that is function blg. i saw my mom wearing these. i made me decide to become a fashion designer. after working eight years in the field, i decided the only way to bring my unique idea into the world was create my own line. immaterialed to use my indian roots. i walked past the store with tunic tops. now, we are in over 40 stores nationwide. we have $150,000 in sales. we have sold a scoop and calypso in the caribbean islands. we have over $150,000 in sales. we are seeking $250,000 in

investment with 10% return. this is geared toward helping women reconnect to the goddess essence you are. >> i'm going give you a hint because you probably don't know this. scoop and calypso is trendy. >> i know that from my wife. >> how do you think she did? >> impressive. you have it down very, very good. i have been to your website. i like the fact you are using the money for marketing and pr. i might throw in a little bit, throw in social media as well. get other people's money, opm, other people's money working for you. >> you did fantastic. my wife is watching and will want me to bring home that tunic. in addition to marketing, i would love to hear about distribution, how to get beyond 40 stores and the plans to take it out. do you want to stay in boutiques

or more mass distribution. >> would you take another meeting? >> i would, but i want to know more about how you are going to use that money. >> good luck with everything. you were a great model. >> thank you. >> thank you guys for everything. if you have a product or service and want feedback on your chances of getting interested investors, send us an e-mail. time to answer some of "your business" questions. jeffrey and david are with us once again. the first is a question about the best way to market your business. >> how do i do the right type of marketing to build my business and take it to the next level and the right type of marketing to get me the clients i'm looking for? >> it's a very broad question. narrow it down to how do you think about what kind of marketing? >> i like an old comedian, he talked about starving people in

the desert. move to where the food is. if you want a certain audience, go and network like crazy. there's great ways to do it, linked in, twitter. get the opm, other people's money. >> you can throw it out there on social media. nothing gained, nothing lost. >> twitter may not be the right place to go. understanding the context of where his customers or partners are, go to them. twitter, facebook, are great sources but not the only thing. think about that before laying out the cash. >> old school. he needs to hang around engineers, home builders and other folkings in construction. there's lots of chapters, the architects, engineers, they have local chapters. >> networking, like you said before. let's move on to the next question. this is about networking. >> when you enter the room at an event, how do you present

yourself, what brand do you present? how do you present your company? how do you describe what you do for for company? >> how do you get yourself to be likable? >> think about what the brand is. it's nothing but what you put on a cow. it's where the word came from. it's more, it's a promise delivered. have the elevator pitch down so you can speak to it. how do you look? the way you represent yourself, carry your body. your confidence says a lot about your brand. >> you get one chance to make a first impression. doing that when you are trying to pitch people is a very, very "hardball" lance to strike. practice and rehearsal is part of it. don't over rehearse. it could be plain marketing. finlding comfort and understanding what you know and how to pitch it to people that

seems authentic is the key. >> appreciate all this advice. if you have a question out there for our experts, go to our website, the address is openforum.com/business. click the ask the show link. again, openforum.com/yourbusiness. you can send an e-mail with questions antd comments. when it comes to starting a business, you might think it takes tons of money. according to blogger and entrepreneur chris, you can go from idea to start up in less than a month and it could cost as little as 100 bucks. the author of "$100 start up" reinvent the way you make a living, do what you love. >> we profile $100 start up. we talked to people from all over the world. for the most part, they followed

a passion but connected it to something that is valuable, marketable and desired in the marketplace. focusing on the question of convergence between your passion and what others are passional about is the key. i love to travel. no one wants to pay me to travel the word. once i learned to teach people about travel, that's how i was able to create a business. the same is true with cupcakes or anything. anything you can do to reinforce the purchase. if you can send a handwritten thank you card, a phone call, offer a discount, whatever you can do to over deliver. it creates a lot of reassurance. an offer has a lot of characteristics, the price point, primary benefit, invitati invitation. i think the most important characteristic is urgency. the most important characteristic is watching people take action now.

if i look at this and it looks great, why buy it now? provide something that is limited time or people who buy now get an additional bonus. you want to buy now. the more you can answer the question, the better the offer will be. most frequent question i get over and over is i have all these different ideas, i don't know which one to pick. i used to have a long answer. now i say pick one. take one idea. don't spend a year writing a business plan no one is going the to read. pick one, get it to market in 30 days. put a papal button on it, see what happens. >> to learn more about today's show, click on our website, openforum.com/yourbusiness. you'll find all of today's segments with content to help your business grow. follow us on twitter. please, don't forget to become a fan of the show on facebook.

we love getting your feedback. next week is education nation here on msnbc. "your business" heads back to school. we'll find out how a new generation of entrepreneurs is being prepped. >> as a student, at 19 and 20, you have new ideas, you are creative. you may not be able to hone your craft. it's where an idea played into our business. >> a student venture accelerator at boston's university. until then, i'm j.j. ramberg. remember, we make "your business" our business. we make a simple thing. a thing that helps you buy other things. but plenty of companies do that.