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tv   Your Business  MSNBC  August 16, 2015 4:30am-5:01am PDT

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hi, everyone, i'm j.j. ramberg and welcome to "your business." today is a very exciting day for us and a real milestone for all of us here at "your business." today we kick off our tenth season of being on the air and providing advice and inspiration to small business owners. one of the more interesting thing we've been doing for the past nine years is going around the country to visit america's main streets to find out about the challenges small business owners are facing and how they're meeting them. this week we examined what it's like to do business in a border town, specifically the community of nogales, arizona. many of the entrepreneurs we met there are bilingual and multicultural, but they've also had to contend with border
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issues that affect the way they do business. nogales, arizona is in many ways a classic american small town. early mornings here are sleepy and quiet. >> the backbone of this town is we are a very small, friendly town. >> everybody comes in here, we all say hi to each other. >> my grandparents came to this town in 1984 and bought a store called the army store. >> i had a candy store for 11 years. >> but that's where the similarity ends. here in nogales, running through the middle of everything, is a 30-foot-high steel fence marking the borderline between the usa and mexico. >> it's a lot of money in mexico, a lot of money. and people come here to spend. >> billions. it's just billions. just the amount of trade that flows through this particular port is just huge. >> this fence and the traffic passing both ways through its carefully guarded gates has a
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profound effect on almost every small business here. >> the border city is right in the middle of this huge amount of international trade. >> the borders are dynamic places to do business. >> but as we discovered, not every business is affected in the same way. >> our industry happens to be doing great and we look to have a bright few touuture. >> the retail is not doing very good. >> how much product do you move here a week? >> we move an average of 15 to 20 truckloads back and forth between mexico and the united states. >> he and his wife alba together run a small meat trading company called premiere distribution center. where does this come from, then? >> this comes from the united states. >> all going to mexico. >> yes. >> francisco says there is a rapidly growing demand for meat products on both sides of the border, and their business is growing along with it. >> we've been growing. we have 15 trucks right now and we've been generating employment
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for 15 drivers. >> luis fernando is a cattle rancher and business lawyer with clients on both sides of the border. he credits long-term personal and family relationships as one of the key reasons these nogales businesses are thriving. >> families have lived here for generations where they've traversed the border and they've very much been involved with trade. >> in the case of his own family, the business relations go back a very, very long time. >> the name has been in this area since the mid-1700s. >> we've been in business for 90 years. in those 90 years we've learned what we think our customers' tastes are. >> he's one of the third generation owners of bracker's department store. >> however the economy in mexico is doing is how we're doing. >> physically you're in the u.s.
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but economically you're in mexico, what does that mean? >> over 90% of our customers are mexico internationals. >> with his store just steps away from the border, he has specifically thrived by providing american products you can't find on the other side to mexican nationals. >> you have found a clientele of people in mexico who have money to spend, go across the border and buy stuff they can't buy there. >> when i say we're a destination store, we're a destination store. >> but over the past several years, federal regulation enforcement has drastically reduced the numbers of traffic from mexico. >> in 2007, we had 7.5 million people crossing the border. 97% of that was happening downtown. last year the number was under 3 million. >> while bracker's loyal customers continue to shop, it has drastically reduced. he is worried about his number of employees. >> it makes it challenging to
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continue with those salaries when your sales are decreasing. >> we used to take it all across the border and now it's gone. >> what changed? >> free trade agreement. there is no need to come across. >> he's the second generation owner of avilla's market. >> i started with my job in 1968. that's when we started. >> avilla's market also faced a huge drop in customers. but unlike bruce, he reacted by flipping the business model. >> we have a different customer base now. that's what keeps us going. >> he now offers hard-to-get mexican products to the spanish-living customers who live here. >> we have customers who come here just for this. grab it, take it home, throw it in a pan and it's done. in town, i don't think they have this. >> today he and his sons have opened three new locations to meet the demand.
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this woman operates a four-room bed and breakfast in nogales. she says being close to the border has made a niche business for her. >> they want to have their babies here. they want their kids to be united states citizens, because in the future it's an investment. >> and, she says, demand for her service is booming. >> sometimes i don't have enough space to really accommodate all my clients. >> chris ceruli's grandfather founded ceruli brothers 78 years ago. they import and export produce from the u to the u.s. and they distribute that produce all over the united states and canada. he says this small town of 20,000 is home to well over 100 import-export distribution companies much like his. >> nogales is a large import to the u.s. for fresh product.
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there is more fresh product that comes in here than philadelphia and long beach. this is a hub. >> almost everything we have is spanish colonial style made over the centuries. >> sam saunders is co-owner of hauler and saunders. he's been importing american and south american colonial antiques from all over the world. he operates out of this centuries-old ranchito which sits literally at the base of the border fence. >> it started out as a hobby, just collecting beautiful things from mexico. the hobby became a business and we started traveling to south america, and then following the colonial trade routes around the world. >> sam says in some ways his business mirrors that of the fruit distribute tors who direct goods across the border and sell in the united states. >> we have customers who know the quality of the pieces and we have a virtual store on first dibs. that has become half the business now.
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how much would this sell for? >> this boot here would roughly sell for about 12 to $1500 depending on if this python was carried all the way through. >> they're gorgeous. >> her grandfather, paul bond, founded this custom-made boot company back in the 1940s. because he was a well-known rodeo star, his boots became highly sought after by celebrity tough guys and nashville country western stars. where are most of your customers? >> all over the world, all over the united states. we work with people in japan, all over. >> so the fact you are border town is almost incidental? >> yeah. i would say it's incidental. >> unlike most of the businesses in town, paul bond boots pays almost no attention to the border. nevertheless, alex says she does share something with many of them, something very special. >> are there a lot of people like you here in nogales?
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>> you know, i wouldn't be surprised if there were because i think there are a lot of great family companies here, and i notice with family companies, it's hard, it's sad to let them go, and you don't want them to slip into the wrong hands, so a lot of the younger generation will step up and say, look, i'm going to continue to grow what my family started. >> one of the most rewarding g segments we do on this show is your business makeover. i'm not exaggerating when i say i've left quite a few of them with tears in my eyes after watching our experts really try to help struggling small business owners get back on track. it's been truly amazing to be a part of this. as we start our tenth season, we thought we would look back at some of the folks we helped to see how their businesses are doing. we're happy to tell you many are back on their feet and attracting customers. when hurricane sandy hit rockaway beach, new york in 2012, they saw their store, surfside bagels, all but washed
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away. the two new york firefighters turned entrepreneurs didn't think they could afford to rebuild their beloved bagel shop, given that rockaway residents were hit hard economically by the storm. our team wanted to help these two heroes. we partnered with facilities firm front street to rebuild the business from the ground up, hoping to capitalize on that area's beach season. we are happy to report that suff surfside bagels sprung back into life. they put many things into practice, including a customer loyalty program and honor code comment box, and a tv screen that tells waiting customers when a city bus is approaching the stop outside the store. tim and scott are also finalizing details for a line of frozen bagels and added a new menu item, bagel chips, using leftover product that the customers love. they also partnered with on-line food ordering service grub hub
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so customers can order on the go, increasing the store's exposure and delivery order. in 2011, evelyn anderson wrote us about just for fun playgrounds, a north carolina-based company she and her husband jerry hayak were running. the company was known for their high-end industrial playgrounds. but by 2009, the recession had eroded two-thirds of their business, forcing them to let all of their employees go. jerry and evelyn had cut back so far that they were living behind the showroom in a motor home to make ends meet. our makeover team advised them to rebrand the company, which they did, renaming it asheville playgrounds. a cornerstone of the makeover was building a brand new website, showcasing their custom work. evelyn credits that part of the business to the new site.
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they've taken on some of their biggest projects to date, designing and building large playgrounds for county parks, museums and new residential developments. the business has also downsized, moving into a smaller location, reducing their overhead and increasing their profit. they also made the decision to raise prices to be more in line with the amount of time and effort the design and build process requires. evelyn says that even though money is still sometimes tight, the practical changes we recommended for their business have had a lasting and positive impact. they're now building a little nest egg and have purchased a half acre of property outside of the asheville city limits on a sunny creek where jerry and evelyn are designing a custom house and garden for themselves. when we first met jane carroll back in 2011, she was trying to rebuild her high-end floral business hit hard by rhett session. to prop up the flower business and increase her cash flow in a
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down economy, she opened jane on main, a cozy cafe that sold simple food in the same space where she did her flowers. our makeover team helped had he rebrand the business, emphasizing her fresh flowers and food, by building a website and menu. although she still does flowers, that part of the business didn't rebound like she hoped, so she pivoted and started focusing more on the food. she rebranded herself and her cafe, jane. she also created jane bakes, a line of low-calorie cookies that she makes in small batches and sells on line and in gourmet grocery stores. jane's cookies also caught the eye of meredith viera. last year we traveled to monterey, california, famous
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fisherman's wharf, where they ran four separate jewelry stores. their son wrote to us concerned that they were too busy running the stores to have developed a solid retirement financial plan. our makeover team headed by chris meyers helped joe and mary create a plan to double their company's valuation. the team recommended joe and mary consolidate their four stores into one and name it monterey bay jewelry company. they took our advice and had a grand opening of the new store this march. they cleaned out the other three storefronts and will be leasing them to other businesses. our makeover partner, premiere store fixtures, provided new display cases. and with our help, they are setting up processes to track sales and focus on increasing turnover. joe and mary express gratitude for the guidance and feel they are in better shape now for when the day comes they do want to retire. heading into our tenth season, i want to take a moment to reiterate something we say
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all the time here on the show. running a business can be fulfilling and interesting and exciting, but it is also hard. so if you feel overwhelmed, you are not alone. we've done a segment called "learning from the pros" where we talked to some of the world's greatest entrepreneurs to hear about what they learned along the way. what they've all said is that though it may look easy from the outside, it's simply not most of the time. we've been lucky to get a chance to learn from their jjourneys, o we put together a little montage of some of the best pieces of advice we've received from them. >> i have a slogan which is, let's do it. the best way to run a business is just to try it. by getting out there and trying things, struggling and trying, you can become an entrepreneur. i think that applies to most people. if they fall flat on their face,
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they'll try again, and the next time i suspect they'll be successful. >> money doesn't wake you up. the passion for your business is what wakes you up. the consumer is looking to see if you are passionate about speaking about what you're trying to sell them, what you're trying to get them to buy. and so if you're not passionate about it, how can your workers be passionate about it? how can the customer and consumer be passionate about coming in to spend their hard-earned money to support your business? >> when you develop your business plan, don't be afraid to write everything down, everything that comes into your mind. because ultimately, if you have a good business plan, well thought out, well designed, carried out for a year or two or three -- it doesn't always work. it doesn't always turn out the way you think it's going to turn
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out. you might stumble or trip or fall in a gully, but if you have the plan, you can get up and continue on your path. >> i think you have to realize that a brand is very much alive. and it's almost like a child. you have to nurture it, and you have to protect it, you have to continually ask yourself what the next step is, what the next material is, what the next color is. so for us to stay a step ahead of our customers, it is the very best idea. if you're a step behind, you fall off the cliff. if you're way too far ahead, they don't get it and you're in trouble. >> the marketing of ben & jerry's was simply communicating in an honest and authentic way what the company was. we're trying to bring about a certain kind of world. if you happen to believe in that
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kind of world, and you happen to like the ice cream, partner with us. we're not selling you a product, we want to partner with people to work on the issues together. >> quality really starts in your own commitment to the product that you're making and the experience that you're giving your consumers. and if you're really passionate about that and stay focused on it, you ought to be able to continually improve the quality of what you're doing for your consumers. >> i learned from one project that i should do only whatever i know how to do. about 20 years ago, we opened a restaurant which was a brewery with a restaurant. so i went into business with
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partners who couldn't do their job right. they had a vision, but they could not execute. a lot of people have great visions and think, visions and d do this or that. i said let's stay with the core business we know really well. and i think since that day, i do that exactly. before i thought if i open a shoe store, jewelry store, whatever it is, it would work out for sure. now i know. i stay in the restaurant and food business. one of the things i've learned in both -- as an avocado grower, song writer and touring artist, that it is as important to ask for or take the advice of those who have been in the business longer than you. i couldn't be who i am if i didn't look up to others, you know, if they didn't give me a template and map to follow. what i want to create for my business and my businesses is
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the possibility for others to watch, to follow, be part of mine or to create their own based on what they've seen. >> never be the first one to do anything, it will be the worst in the world. don't be the first ground breaker. let somebody else do market research, create a marketplace for you and just walk in and do it. it doesn't matter if it's expected or unexpected. this idea that it should be surprise, it's original. who cares? either it works or it doesn't whether it's expected or unexpected. there's just success and failure and everything else is just smoke and mirrors. >> we had a long list and i had thousands of elves trying to keep track of all these children. now social media, we can find out what people are doing. i have the twitter account. they write in what they want and same thing on facebook.
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the adults do it through linked in. social media is a wonderful way to stay in contact and stay in touch with the people that i serve. stick around as we mark the kickoff of our tenth season with what we love to do most. answer your small business questions. we'll be talking about investor involvement and planning an exit strategy. american express for travel and entertainment worldwide. just show them this - the american express card. don't leave home without it! and someday, i may even use it on the moon. it's a marvelous thing! oh! haha! so you can replace plane tickets, traveler's cheques, a lost card. really? that worked? american express' timeless safety and security
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are now available on apple pay. the next evolution of membership is here. this week's your biz selfie comes from mark jones in syracuse, new york, who owns the company fan hands. it looks like they make gloves, special gloves that sports fans can help their clapping get louder. is that a good thing or bad thing? i guess if you're a sports fan that's a good thing. thanks for sending in that. send in a selfie of you and your business. send it to your business at msnbc.com or tweet it to us @msnbcyour biz. don't forget to use the #your biz selfie. it's time now to answer some of your business questions. let's get our board of directors in here to help us out. editor at large and columnist
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for ink magazine and ink.com. great to see both of you guys. you have been around since the very beginning. >> i can't believe it. congratulations. >> thank you. it's very exciting. hopefully you'll be around for the next ten years for us also. >> that would be great. >> the first question is about taking on investors. >> we're doing extremely well, have wonderful cash flow. the business is growing 100% plus every year. at what time do we involve other investors in order to take us to the next level? >> that's a good question and lucky place to be in, right? he has cash flow. >> yeah. good problem. >> what kind of things should you think about? >> if your cash flow is that strong you don't want investors yet. right? there will come a point if his growth continues that he will outstrip t i think he needs to think about, one, you want to
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approach investors when you don't need them. so on that case, i think he wants to be a little bit early coupled with the more progress you make without them, the better bargaining position you're going to be in. >> and i would add, you should think about investors when you want to stop having full control of decisions. that's a really big part of it, too. you're used to doing your business, making decisions the way you make decisions. the minute you bring in an outside party it's just not your baby anymore. the answer may be never. frankly, it's not just investors. there are other options out there. growth capital. you can get all sorts of different options with debt that can help you get to where you want to go. pay for your accounts receivables. pay to grow your business. maybe never. >> and he's in a good position unlike many other companies. he is in good position where he has cash. finally, one more question about getting out of your business. >> how do i go about planning an exit strategy that will really
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be a win/win for us and an opportunity for someone else? >> where does she begin, monica? >> with an exit strategy that works for everyone, one of the big things to consider is just time. are you allowing for enough time for an early transition? the folks, employees, that's definitely a conversation. employees that work for you, are they going to have enough upside when there's new management, when there will be a new buyer in the business? so a lot of business owners zbl. >> what do you mean by upside? participate in some of the sale or keep their jobs? >> all of the above. are they going to be around and will they feel motivated to continue to do their jobs? with small businesses people stick around for reasons other than money. they have a relationship. they feel a level of stability. they like the culture. how can you make that transition more orderly? i think the big emphasis is tim
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time. >> if she thinks about it, there are probably a couple of likely buyers already. i'm assuming that's the kind of exit she wants. we don't really know that. she probably has an idea who those r she should be getting to know them at trade shows, know who those companies are and how they operate. so as the time comes she'll have a better chance of finding a good partner. i think it sounds like she's thinking about this well in advance. as monica said, this time is very important. how can the business run without her? it tonight sound like her role will be the same going forward and how does she take risk out of her business so a buyer is comfortable with it? >> would you hire a business broker? >> it can help you manage it much better. i don't know that she's really ready for that. >> a broker can help you be far more realistic with what you can
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get for your business. your books need to be clean. you may be seeing x amount of profits but that's not how you pay your taxes or manage your accounting. you may need to really get into that process a couple of years in advance. you may need to get an accountant that can then verify that your books are as you say they are so a broker can help you think through all those types of issues. >> right, right. great. good to see both of you. thank you for your advice. >> my pleasure. >> if you have a question for our experts, we answer them every single week here on the show. just send us an e-mail. the address is your business @msnbc.com. thank you so much for being with us here today. i cannot express what an honor it is to be kicking off our tenth season as an entrepreneur myself, i have been in the trenches, just like all of you. and i look forward to another season together, tackling all of the issues that we face so that we can all keep growing our companies. if you missed anything from today's show head on over to our
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website open forum.com/your business. you'll find today's segments and lots of other material to help you out. follow us on twitte twitter @msnbcyourbiz. and we are on facebook and instagram as well. up next, see how two real estate experts help her transform her store so her foot traffic turns into buying traffic. until then i'm j.j. ramberg and we make your business our business. american express for travel and entertainment worldwide. just show them this - the american express card. don't leave home without it! and someday, i may even use it on the moon. it's a marvelous thing! oh! haha! so you can replace plane tickets, traveler's cheques, a lost card. really? that worked?
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american express' timeless safety and security are now available on apple pay. the next evolution of membership is here. the donald has landed. good morning. thanks for getting up with us this morning. steve kornacki has the morning off. i'm michael dyson. air traffic controllers lost contact with the regional aircraft nine minutes before it was scheduled to land in the

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