the owner of a wood working business didn't plan on going into the beer tap handle business but overwhelming customer demand brewed up a recipe for success. and what you didn't know about switching to chip credit card technology having disastrous results for your small business. get ready for the information you need to grow your business next on "your business." american express open can help you take on a new job. or fill a big order. or expand your office.

for those who constantly find new ways to grow, american express open presents "your business" on msnbc. hey, everyone. i'm j.j. ramberg. welcome to "your business," the show dedicated to helping your small business grow. every entrepreneur has an idea in mind. being married to that concept and that concept alone could be the difference between success and failure. one business owner decided to lin carefully to his customerers when they asked him to create beer tap handles. products that weren't part of the original plan. >> when you got customers calling every day, it's hard to

turn them away. you know? nice people. they want to give you money. i think that's a good thing. >> mark supik never could have guessed what his best-selling product would be when he started his small business in 1981. >> 20, 30 years ago beer taps didn't play that big of a part in the retailing of beer. now it's a huge part. we've been lucky to have this market find us. you know, this market grew around us. >> the owner of mark supik and company says his clients are the reason he decided to sell his wooden beer tap handles. >> before this it was not that high. it came in the back door and we made them because it was a good fit for us. >> he originally focused on building pieces like cabinets for homes. but conversations with other small business owners pushed him in another direction. >> i had a couple local brewers

coming to me. the beer taps, i just started doing the sales work. >> rather than drag his heels, mark recognized the potential. fortunately making beer tap handles didn't require a major pivot in production. there was also plenty of wood turning being done on site. >> we make beer taps which are primarily lathe turned and they go directly to breweries. and we do mill work. we make stair parts, handrails, spindles. >> as the number of orders for the handles grew, they figured out a way to accommodate customers. it was to simplify the design. >> we're a wood shop and we're trying to focus on a definite line of happened ls that a novice brewer can say i want that hand. it suits me. or i want that one but change it just a little bit. >> customers know that they're being heard.

brewer owner of stam beer, he'll call with a request. >> he'll go out of his way. customer comes first. he'll go out of his way. i'm not talking hundreds of beer handles. 10, 20. >> with customers nationwide, mark's son john says the company has become more efficient. >> really getting more orders than we ever really had. so it was really just by necessity to get it done and to really keep from banging our heads against the wall. >> as production increased, we would find bottle necks. >> staff has increased and when necessary, manpower can shift. >> we've compartmentalized. if anything were to happen is the tap handles would be so busy that one of us would jump onto

them temporarily. >> mark's nephew says they found a way to balance the work flow. >> we can adjust for demand if needed. >> those customers have given the company stability is the times. >> when the mill work has fallen off, we fill in the gaps with that. it's kept us chugging through slow times. >> the zpigs to grow the beer tap handle line has worked out so well that sales for the product now account for more than 50% of business. >> cash flow for the beer taps is rock solid which is really nice to have. >> the one catch about following customer demand is that the business is headed in a direction mark didn't predict. he admits making the tap handles can be a bit repetitive. >> it's not stimulating. we try to move people around and make things interesting. >> that being said, clients are speaking with their dollars. >> i'm seeing companies we've been dealing with for years,

their demand for tap handles has increased. whether they would ask for a small baa ch in the beginning. now their batch is like once a month. it's interesting to not only see your business improve but theirs as well. >> that's why there's talks about how to increase product. >> percentage isn't going to change. a everything will be elevated. just more beer taps. >> the demand seems to be here to stay and the staff is keeping a watchful eye to make sure every order is priority number one. >> we strie to streamline production and we could have an easier ordering process for the customer. october 1st is around the corner. if you're a retailer and you don't know why that date is important, listen up. that is the date by which you need to have payment technology in place that will read emv

microchips. those are on charge cards these days. if you don't, here's what's going to happen. if there's credit card fraud for a purchase in your store, you will be liable. this is a big change from the past where the credit card companies would fit the bill for the questionable purchase. around 27% of merchants are going to be ready by the deadline. that gets lower when looking at just small businesses. so for those of you that have not made the switch yet, we want to tell you what to do. here's the publisher of smart house magazine and he helps small businesses thrive using technology. great to see you. >> great to be here. >> how much of a change is this for me i have a cupcake shop. that's not a lot of fraud. or jewelry. i sell jewelry. there's a scare someone is going to buy a diamond ring using someone else's credit card. what do i need to change from my point of sale system? >> it's a big deal and i think it's all about risk.

that if you're not afraid of credit card fraud and it's never happened to you, maybe you don't worry about it so much. but in general or october 1st as you said, if you're not emv compliant, you will be 100% accountable. >> how much time is this going to take me? how much money is it going to take me to switch over? >> two components are important. one is an emv reader. which accept the credit card. >> right. >> the second is your point of sale system that works with the reader. if you have those two things, you're set. those who have it have an emv compliant point of sale system. the key thing is to have the reader which accepts the new type of credit cards. the ones that you just slide, those don't work anymore. >> don't you just buy an emv reader? >> yeah. you can. what if you have three?

talk about training your employees. the card has to go in there and sit there is for five to ten seconds. you don't want that thing sitting there waiting for ten seconds. so it's a big deal for small businesses where budgets are tight. >> that's the reader. there's the fact a lot of p.o.s. systems don't read it. >> those who have traditional point of sale systems or cash registers, that is a problem. they're traditional, hard to update and you need new ones. it's like having a tez la. you hear the other car manufacturers have to go back. tesla says we updated it via software update. those with new systems, they're going to fine on that side of it. what to check is this one. those who don't have modern cash registers. those are the with uns that have to upgrade more.

>> i heard from some small businesses that this is much more complicated than i thought it was going to be. i thought it was just buying something but it's taking quite a bit of time. is that because they're changing the shop keep system? right? it's ipad-based. is that because they didn't have anything like that before? >> that is correct. many small business owners are not future proofing their small business, are not ready for the new technologies. many of the retailers, all they want to do is sell their goods and services. i live in new jersey. they're still ripping off the receipt when you get your watch repaired or buy something. many businesses are not technologically up to date. >> you brought three examples now of p.o.s. systems that work with the reader. >> absolutely. >> when i'm evaluating if i should use these, i'm not really looking at does it work with the reader? i'm looking at does this system work with that i do? >> correct. and there's different types. system here from ncr. system here from elo. and from shop keep.

all slightly different but all very similar. you can see here a system from ncr is more simplistic but works well. and here again, the key thing is the emv reader which combines with this via bluetooth. that's one system. this system is about -- they sell a package of this for -- >> turn it on quickly. >> sure. give or take for about $80 a month. and the key with these is the software you're purchasing. that's the software you're purchasing on these. >> turn that one on. >> we have a system here from elo. this is another pretty cool system for small business owners. i'll hit the print button. so jj just bought something from this jewelry store. >> thank you very much. >> that's here from elo. >> i expect that in my office later. >> this is about $600. it's sold differently. then you have here a system from shop keep. those who already have the ipad, here pay about $50 a month for

the software and then you have the accessories. this one which is bluetooth come pat nl is about $250. >> if you have a p.o.s. system that has not upgraded to deal with the emv card reader, then you have to are think your system. >> correct. >> you have to talk with people to find out which is best for our business. >> talk to your local consultant or go online and get it. >> if you have a system that has already upgraded to deal with it, then it's just the price of buying theed roadwayer and the heart ache of having to train your employees. >> that's it, correct. educating your employees that we're no longer swiping. which you can do on these systems. they're still backwards compatible. get people to use their emv compatible credit card. >> got it. it looks like october 1st everyone is not going to be turned over. it's going to be messy for

awhile. >> i think the banks are going to understand that. the key is october 1st, it's not like an april 15th deadline where after midnight you pay. it's a real date, but i think we want to encourage small business owners get your butt ready and be ready. >> all right. thank you for helping us understand it. appreciate it. >> my pleasure. finding reliable wi-fi is crucial when you are an entrepreneur on the go. if you're looking to always stay connected, you might want to download our app of the week. work hard anywhere is an app to help you find spaces with decent wi-fi. the crowd source data base app gives you the inside scoop on the amount of seating, parking, and quality of food at listed establishments. learning how to be a good lead ser a life long thing for us. here are five top things to

watch to help you improve your leadership skills courtesy of inc..com. >> one, everyday leadership. management should be defined by times you made someone else's life better. two, what it takes to be a great leader. roslin torres spent 25 years observing leaders in action. she asks the questions everyone needs to ask in order to succeed. three, why it's time to forget the pecking order at work. margaret hefrnan says to rethink the model. four, how your body language shapes who you are. harvard business school professor amy cuddy says body language changes how we view ourselves too. and five, the secret structure of great talks. nancy, a ceo and author, shares

how you could improve your speeches so they have a greater impact on your listeners. a lot of small business owners dream of getting that big contract. but sometimes working with them may turn out to be a disappointment. we visited one small business owner who found the road to growth was actually cutting those ties. >> is the best thing about it was that roller coaster ride was over. it was a good decision to avoid the big box stores. >> he knows a thing or two about working with big brands. >> the kohl's, walmarts, kmarts of the world. >> that's because some of them used to be customers. >> we can actually cut and sew garments. we embroider garments. we dye garments. and we screen print garments. >> they had contracts with some of the most recognizable

retailers for years. >> as we started moving into the 2000s, tie-dyes were becoming more popular. >> while those appealing and ego boosting orders would be a dream for many small business owners, over time they were more of a frustration for cass and his team. he wanted to make sure the deals worked so he had to make strategic decisions. cost was the biggest factor. >> we couldn't do the work they wanted us to in the united states mainly because of labor. rather than starting to turn that work away in 2003 we opened a satellite location which was in guatemala. >> in his mind, the second factory was designed to get and keep business. >> we were looking at it as the business is going overseas anyway, it might as well be to somebody we know.

i.e. us. >> once the facility was up and running, the orders came in. costs may have been lower in central america, but having another production facility so far away turned into much more of a burden than a benefit. >> it took us about seven years to really get a foothold and to start everything working the direction we wanted it to work. and it was a tough seven years. >> sun dog's general manager allison moser says the operation felt scattered. >> one of the things i do up here is make sure all of our employees and all the different production lines are set. you know, everybody's got plenty of work to do. and down there it was a very difficult thing to manage. >> it was a challenge to deal with new complications like customs and to not see products as they were coming off the line. there was a clear disconnect. to make matters worse, the orders from big box stores were not consistent. >> it was here's 50,000 units we need them in three weeks.

>> and once those orders were filled, everyone had to sit and wait for the next one. the entire process was tough on sun dog's bottom line. >> tough worry about making each week, those ebbs and flows were tough. >> the money wasn't rolling in. cass decided to give up the big contracts but not without getting a push from mother nature first. >> we got hit with a tropical depression. we suffered 42 inches of rain in 24 hours. that's 3.5 feet. >> while there was talk of rebuilding, the factory's destruction made it easier to walk away. it a ls gave cass a chance to take a step back and think about what he wanted to do next. >> it let me get back to core business opposed to trying to chase dollars. >> as a result sun dog now has customers of every size. >> we have actually tried to focus in on middle sized retailers and smaller down to

small mom and pop t-shirt stores. and we're actually able to do better work, better design, and quite frankly they'll allow you to make some money. >> gone are the days of relying so much on large orders, but it doesn't mean they don't come in. they're just handled differently. >> those bigger orders tend to take more logistical support. we're able to get those through in a fair amount of time without pushing the smaller customers to the side. >> while cass won't close the doors on all big deals, he says it's better without them. >> it's great to say you did work with the big box stores. but when you looked at the bottom line, the real bragging rights are what's in the bank account. when we come back, we will talk about when it's time to change manufacturers. and e-commerce sites having to maneuver sales taxes. and a lineup of roll-up flats for women on the go.

selling 18 homes? easy. building them all in four and a half months? now that was a leap. i was calling in every favor i could, to track down enough lumber to get the job done. and i knew i could rely on american express to help me buy those building materials. there are always going to be unknowns. you just have to be ready for them. another step on the journey... will you be ready when growth presents itself? realize your buying power at open.com

or tweet it to us and use the #yourbizselfie. heather thompson is the founder of fashion line yummy by heather thompson. and of course you've seen her on "the real housewives of new york." >> hi. my name is dawn dixon. i'm the founder and ceo of flatout appeals. i'm sure you've heard of women talking about heels hurting their feet. the average woman can last three hours in heels. that's why i create ed our

rollable flats. we're leading in competition with our durable soles. they're sold in vending machines in areas like airports, nightclubs, and hotels where women can get relief. manufacturing in china with a 70% margin and we've sold 30,000 pairs since we launched. we're raising $400,000 for 46% equity in the company and to launch a new -- and rescue their feet from suffering in high heels. >> nice job, dawn. >> thank you. >> here you go. two numbers. one through ten. the first is the product and the second is the pitch. i've never seen these in vending machines but people said they have seen them. so it's a good idea. i can think of myself walking through an airport where --

>> and they're hard so you don't have to worry about hurting your feet. >> that's good. heather, let's start with you. >> i gave her a nine on the product because i have seen it out there. i wish you had told us about how it differs from other products. i can feel it, but i would appreciate it in the pitch. i gave you a ten on the pitch. i knew what you were looking for. i knew why and you did a great job. >> we haven't seen a ten on this show in a long time. congratulations. larry, what about you? >> i gave a nine on the product. not that i'm the best judge. on the pitch i just felt like it was a little too canned. you know, i like to see things more conversational. i do love talking about margins and what you're doing with it. my fear is you're trying to go through a whole lot of stuff with what's a small amount of money. that's why an eight on the pitch.

>> all right. thanks, you guys. if any of you out there have a product or service and want feedback from our panel on getting interested investors, send us an e-mail and please don't forget to write what your company does, how much money you're trying to raise, and what you're going to do with that money. we look forward to reading about your companies ae seeing some of you in the elevator. it's time now to answer your business questions. the first one is about working with a manufacturer. >> when's a good time to change a manufacturer? base it more on quality or capacity of the manufacturer that you use? >> it's a good question. and when's the smart time to start thinking about it. >> variables can come into play about why you need more manufacturing such as quality cost. but you have to make sure you never mess up your chain of supply. so i really recommend vetting other manufacturers at the same

time -- whatever reason you either need new manufacturers or you need to add to your chain. you have to vet them while running production. relationships are key. when's the right time to do this. as soon as you start thinking in the time, it's the right time. because something's going ton

>> there's a lot of layers when it comes to sales tax whether it's state, local, like you said. there's a special district tax coming in. so you have to know the criteria and you have to know the right applications and there's definitely fiennes and there's penalties if you don't do it right. so i agree. there is software available and especially if you're an online

business like they are, their shopping cart services that can help pu. >> how do you do it at yummy? >> we have a shopping cart service. >> let's move onto the next question. it's about funding your growth. >> we are experiencing fast growth in the united states right now entering hundreds of stores each month and my question is should we finance this growth with debt through a bank or raising equity through investors. what are the two choices? >> one question is how quickly does he need it? if he's adding hundreds of stores all the time, how would you think about -- >> there's pros and cons this both. clearly if you're borrowing from a bank, anyone can, but you have to make sure you have cash flow that's going to be able to feed that loan, that you have to pay back that loan no matter what your sales are. you have to pay that loan back. when equity comes in, you lose a lot of control of your business. you don't have control anymore. when you're borrowing a lot of money, they control the money,

so that's definitely a draw back from it, but the pro is that you can keep money in your business. >> debt is so cheap nowadays. it's flying in the face of traditional growth for businesses where we went to equity. the rule of thumb i guess is this, that short-term or debt is really kind of for short-term growth. equity is more costly on the tail end of this. but you got to go through the pros and cons. people go out and get debt when they start up but you better have the cash flow to pay for those monthly payments. we seem to forget about this. >> great. thank you both for letting us pick your brains. really appreciate it, and if any of you out there have a question for our experts, just let us know because we answer them every single week here on the show. you can get some great advice. just send us an e-mail. the address is yourbusiness@msnbc.com. head over to the website to learn more about the show. it's openforum.com/yourbusiness.

you can find web exclusive content with a lot more information to help your business grow. we're at twitter @msnbcyourbiz and instagram and facebook as well. we find out how to turn a crisis into a bonanza. >> we saw an opportunity to, you know, convert people's lawn to a drought tolerant landscape and make a little bit of money. >> in the midst of one of the nation's worst droughts, this entrepreneur is one of several who has figured out how to grow a business helping people conservative water. i'm j.j. ramberg, and, remember, we make your business our business. our cosmetics line was a hit. the orders were rushing in. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding fast. building 18 homes in 4 ½ months? that was a leap. but i knew i could rely on american express

to help me buy those building materials. amex helped me buy the inventory i needed. our amex helped us fill the orders. just like that. another step on the journey. will you be ready when growth presents itself? realize your buying power at open.com good morning, everyone. welcome to "weekends with alex wi witt." here is also what's ahead for you this hour. new reaction today from bill clinton to hillary clinton's private e-mail controversy. fresh squabbles among gop candidates in the race for the white house. and how significant is president obama's first face-to-face meeting with vl vladimir putin in a long time? well, pope francis wraps up his visit in the u.s. today with yet