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

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california entrepreneurs see opportunities in helping residents deal with the drought crisis. advice on how you can use snapchat to market your business and attract customers. and a pitch for a dating site where men get recommendations from women. all that and more coming up on "your business." american express open can help you take on a new job. or fill a big order. or expand your office. those who constantly find a new
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way to grow on every journey, american express proudly presented "your business" on msnbc. ♪ hi, everyone. i'm jj ramberg and welcome to "your business." hard times can be an interesting breeding ground for innovative entrepreneurs who can find solutions to some pressing issues. that is what we're seeing right now in california where they're in the middle of one of the worst droughts in the state's history. we met a group of small business owners who have taken o the challenge of helping californians reduce how much water they're using at home and they're growing their companies along is the way. >> we're in an historic drought
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and that demands unprecedented action. >> if people don't step up and do their part, california's in a lot of trouble. >> with crops flailing, they have made this a top priority. >> i'm issuing an executive order mandating substantial water reduction across our state. >> last january governor jerry brown issued an executive order mandating a 25% reduction in water use and citizens across the state are responding. >> i listen to the news and i know that the drought in california is a serious problem. >> for entrepreneurs like roy amir, greg ruben, and bill schaffer, it was also a wakeup call. where others saw brittle dry grass, they saw a business opportunity. >> we saw an opportunity to, you know, convert to a drought tolerant landscape and make some money. >> the business models vary, but they're all taking advantage of a change in the market.
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>>an interesting group of entrepreneurs is that sprouted up. >> the water district of southern california created an incentive to cut back on watering lawns. and by doing so unleashed a flood of new businesses across the state. >> if you can replace that lawn, you can replace a lot of water. and what we're trying to do is get people to think differently about how their outdoors should look. >> his agency offered a rebate for a drought landscape. >> we're going to put granite. >> the owner of green pros recognized he could capitalize on the money the government was giving away. >> the homeowner doesn't have to pay anything or handling money from the rebates. >> he'll dig up your lawn with decorative gravel and plants that don't need much water. and he does everything for free
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in exchange for the homeowners signing over o their rights to the rebate. >> we put up all the money and take the risk. if this job was not done on the gudlines then we don't get paid. >> roy's company also sells artificial turf for customers like karen of los angeles who aren't quite ready to give up the green lawn look. >> it turned out amazing. >> it's low maintenance and low bills. the water bills are extremely low. i'm the envy of the block. >> our business has increased by 40% the last year. >> greg ruben sees the lawn rebate program differently. he doesn't have time to do the rebate paperwork, so unlike roy's clients who get the work done for free, greg's clients pay him for his work and then collect the rebate on their own. >> right now about 60% of my clients are involved in the
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rebate program. >> i love this little trellis you put up. >> he coauthored a book "california native landscape" and says his landscapes provide a habitat for all lives in this climate. >> by habitat i'm talking about a complete plant can community that supports an array of wildlife. birds and butterflies and other creatures like it's a magnet. >> bill schaffer is taking advantage of this in a different way. he offers a less draesic approach that doesn't sacrifice the look of a lush lawn. the trick is letting your yard go brown. >> it's all natural. it's what we call a colorant.
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>> we're rounding a ridiculous number of 28 million gallons of water we've saved by coloring the lawn and cutting back your water schedule. >> as california's concern for protecting water resources grow, so does the ingenuity of the entrepreneurs. >> you have been using water poorly all your life. >> michael cyrus operates a hand wash custom automobile detailing. these days he goes out of his way to demonstrate his concern. >> i'm going to use two cups of water and going to detail the car. and also shampoo the interior. with two cups of water. if you use my method, you do not have a water problem at all.
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most people just were stunned. how'd you do that? i say you just watch me. what about watching me you didn't get? >> those california entrepreneurs have been really smart about getting new customers. now we turn to a different issue which is once you have those customers, how do you ensure you have the inventory to keep them happy? we talk to a seed bomb company in cincinnati to see how they keep enough product in stock. >> the seed bomb industry went from a kitchen table enterprise to a much bigger operation. it really exploded. >> the owners of visual lingual in cincinnati, ohio, didn't invent seed bomb but they've packaged them and turned the concept into a thriving business. >> a seed bomb is a mixture of seeds, organic vert liezer, and a powdered clay. you can throw the seed bombs in the ground and they'll break up
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on impact. >> what started off as requests from smaller retailers has turned into places like restoration hard wear and plenty of orders. >> it happened overnight where we jumped into high gear and started making mass quantities of it. >> with so much growth, the pay knew they needed to change the way they handled orders for their sea bomb pouchs and kits. the old way wouldn't cut it anymore. >> we would buy the materials in five pound increments and make that much and send that out directly. >> as a result, they came up with a plan for managing their inventory. >> how do we scale this up? how do we keep a grasp on all this? figuring we need a hundred times the amount of materials we need for the last orders. >> ever since then, it's been a well choreographed act to have material at the ready. the goal is to be able to
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accommodate any and all orders at any time. >> i think it's the small business model just in time where we respond to orders if they come and we make a little bit extra. then it's there and gone and we go through the cycle again. >> the amount of seed bombs ready to go is based on the popularity of the product. knowing their customers and knowing when they may place their orders are part of the calculated risks they take. >> smaller retailers want their stuff quickly because they don't have to plan ahead and they don't have storage. so they order as needed and they expect it when they need it. >> larger orders definitely require a bit more attention. >> we all need to stay on a schedule. we have a finite amount of space, a finite amount of strength. and everything is done by hand. >> but it's often those sales that produce the inventory they need to respond to smaller
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orders simultaneously. >> we can hang onto produced seed bombs and then screen print the pouchs quickly. that's a part of the labor that doesn't have to happen until it's needed. >> having extra seed bombs is crucial because ideally production takes a few days. finding multiple suppliers who are willing to act fast helps with the work flow. mya and michael like having options too. >> if we need something overnight, we can get it overnight and respond as quickly as possible. >> they have found a unique balance between the number of supplies they need and the products they can make. of course it doesn't mean there isn't waste. >> it does happen. >> managing inventory isn't a perfect science. especially when your product is perishable. >> we want to never sit on inventory too long. sop we don't produce infinite inventory even though we could because it has a finite shelf
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life. >> the best advice they could offer to other entrepreneurs is not to overthink anything. he believes a little strategy and occasionally some luck will allow you to manage your inventory the best you can. if someone does a lot of business with you, you absolutely want to make them feel special. here now are five ways small business owners can prioritize their high value clients. one, proactively check in. regularly reach out to your high-value clients even if it's a quick e-mail or voice mail. ask them how things are going own what could be done better two, support their charitable efforts. people want to feel like the businesses they back will do the same in return. consider directing some donations to causes your customers care about. three, give them your time. host a recurring special event for your clients.
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they'll appreciate getting to know you better and those deeper connections may help you weather any service issues that could crop up in the future. four, make sure you're likable on social media. pay attention to which networks your valued customers prefer and then follow suit. and five, ask for help. solicit their opinions if you're looking at a different service model or a different policy. you'll get valuable information and also make your clients feel appreciated. you may know snapchat as the mobile app that lets you send pictures and videos that self-destruct after a few seconds. with the launch of the story section, there's a great resource for small business owners to connect with a younger demographic. for more on snapchat and how to utilize it, is part of -- and vp of marketing at when i work a
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company that provides software for small businesses. so many people do more than one thing these days and you are one of them. okay. let's dive right into snapchat. ang lot of our audience thinks of it as the thing that kids use to send pictures to each other that disappear. >> the story section is a like your facebook fan page or instagram profile. post a series of images or video that get displayed on your stories. anyone that's your friend -- that's following you can see the stories. >> so number one, just like on facebook or twitter you have to accumulate theed people to follow you. >> exactly. and just like anything else you have to build that following and the way you do it, if you have an e-mail list. you can pull them from your existing fan date on facebook, twitter, and instagram inviting them over. >> one example is you use it to make an announcement of a new
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product. you give an example of the company ccm. >> ccm, they sell hockey apparel and things of that nature. what they did was when they release new products, they have an athlete go on to the ice rink and do a professional photoshoot. while doing that, they took a couple of snapshots on their phones and released it early. anyone that's following them on snapchat can see those pictures and get access to those things early on. >> i guess i'm still confused of how -- i could do that on facebook or twitter or instagram. >> so snapchat, it's another way to do it. >> so we're doing the same things maybe. >> you're doing something similar. you could use the same content. but keep in mind you're having more conversations that needs to be a little more exclusive. maybe this is something you do a little earlier on.
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so if you have a facebook audience, you can take action on there. >> let's go to the next one. expiring coupons and kploexclus deals. i get this. this plays into the idea of snapchat and things disappearing. >> a local yogurt shop in new york, what they did was in the beginning of the year they said for a week send pictures of you trying all these different combinations and we'll send you an exclusive coupon. they actually get a conversation started with these people. anyone that snaps them, now they have that conversation on record. let's say a month from now we can send them another with a coupon. >> and then the last one, compelling stories. again, something that we need to do in all of our marketing. how do you tell stories through -- >> a good example is if you have customers that have common problems, if you're a plumber,
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let's say -- the example i'll talk about is a kitchen and cabinet company. they always get asked how they do certain things. what this company did, local company based in nebraska, they talked about how two granite countertop pieces can mold together and posted some text overlay. and, you know, talked about how they can remove that seam line. >> got it. again, this is one of those things where reach your customers where your customers are. >> exactly. there's a hundred million users on snapchat waiting to be talked to. >> got it. thanks. this was enlightening for me. appreciate you coming by. still to come, tips on building your brand and the impact of testing products on e-commerce site. and love is in the air as we see the new dating app where women recommend dateable men to other women.
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we thought we'd be ready. but demand for our cocktail bitters was huge. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding. fast. our amex helped us fill the orders. just like that. you can't predict it, but you can be ready. another step on the journey. will you be ready when growth presents itself. realize your buying power at open.com. this week's your biz selfie comes from keith humphrey who owned jet airwerks. thanks so much for sending that in. now why don't the rest of you pick up your cell phone and send us a selfie of you and your
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business? send it to our e-mail or tweet it to @msnbcyourbiz. don't forget to use the #yourbizselfie. for anyone who's tried online dating you know it can be a daunting experience. today's elevator pitcher wants to change up the process is bit. let's see if our panel wants a second date with him. carol roth and alicia surette. >> hi. i'm ken deckinger. i'm cofounder of jess meet ken. we have a dating app for women to recommend men for someone else. my best friend posted me online, jess saw the post, e-mailed dell and then dell introduced us. we saw one of the biggest problems in online dating which is misrepresentation.
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the market is $2.5 billion but littered with hookup apps. we're a relationship-based product. users bring other users to the table. we're raising $500,000 for 10% of the business. the money is going to be used to accelerate product development and expand. we're online, on social media, twitter, you name it. find us everywhere. >> congratulations. >> thanks. >> nice pitch. from my perspective. let's see what you guys think. two numbers one through ten. the first number is what you think of the product. the second, how you thought the pitch went. i was just thinking about a friend of mine. saying i went on a date with this guy, he was great but not for me. >> could be someone that wasn't right for you or a relative or someone you would never date. >> let's get to the results. >> so for the product i gave you
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a zen. and the reason for that is as i'm sure you know dating a very tough space. a number of properties, ok some proprietary advantage and how you compete on the marketing side given all of their spend. but on the pitch, i thought that it was pretty good. i gave you an eight because i thought you clearly and succinctly stated what you do, you gave us a little bit of your background. you talked about the funding you needed and market size and also a little bit about the marketing that you've done so far so i really felt like your presentation was strong, and if i were talking to you further, we'd really have to dig in to the competitive space but overall i thought it was quite strong. >> thank you. >> carol? >> first of all, i love that the women have to do everything. you want to make love happen, you make the women have to do it. i gave you a seven on the
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product, the same concern, where is the mode. if this is a great idea why doesn't somebody come along and do it. i would have loved an explanation of the technology mode. on the pitch i give you with a five with a star baseded on a question. you've been successful in this space before, haven't you? >> i have, yes. >> you did not tell me that. if i was not such a business aficiona aficionado, i would not have known that and as an investor, you always want to bet on the jockey, not the horse, so that's the very first thing you should have told us that you have been incredibly successful and sold a business in this space before. if you would have done that your pitch would have gone to maybe nine. >> why didn't you do that? >> she's absolutely right. i had that in my pitch and i don't know why i didn't mention that? >> do you want to tell our audience? >> we started another online dating company and it was acquired by a public company and that public company we worked
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there for about three years. >> gives you so much additional credibility because it's not even about the idea, it's about the execution. >> sure. >> so now that we know that you can execute, maybe we would change that to perhaps a nine. >> and that's a great idea. >> perfect, all right, the best you could have gotten. thank you both so much. good luck with everything. >> thank you so much. >> we hope to see your app everywhere. >> thank you, appreciate it. bye-bye. >> if any of you out there have a product or a service when you want feedback from our elevator pitch panel of your chance of getting interested investors, send us your e-mails. don't forget to tell us of course what your company does, how many money you'll raise and what you're going to do with that money. we look forward to reading those pitches and seeing some of you here on the show. now time to answer some of your business questions. we have alicia and carol back with us here. the first one is about making a name for yourself.
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>> what are the top three tips on building a brand and making people really remember your name and your brand's ethos? >> start with you, carol. >> i think a lot of people confuse a brand with a name. when i think about a brand i think about your customer promise, so are you delivering an exceptional product and service, a great customer service experience. are you having them buy into something bigger, maybe a mission or affinity group, making them feel cared for and i think if you deliver on those fronts, people will remember your name, remember your brand, they'll talk about you, get their friends to buy from you and to me that's sort of the essence of what a brand is all about. >> first i love this question and i love that it comes from a consumer company. they don't have the ability for technological proprietary
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barrier. and one is to be a thought leader as the head of the business, getting out there and speaking and writing about your ethos really makes that personal connection and shows people how much it matters to you. the second thing i would say is really make an effort to connect directly with your customer, if you're a food company, maybe that's a demo program at local stores, maybe every once in a while dealing with customers in the service department but figure out how you can connect with them because then they'll feel that connection, too, and then finally, think about ways that you can partner with other companies, organizations or people that also reflect your brand, because their brand reflects on you and vice versa and helps you expand the distribution so that could be a nonprofit you partner with for an event or a blogger. >> i also have to say i've never met that business owner before but i tried his heart, i heart qui quinoa, i'm in brook lip and
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surrounded by people who eat quinoa. >> give yourself an opportunity to evolve. amazon started as a book seller, they could have been books.com but they wanted to selling everything a to z as their brand logo shows. if you have this brand that says i do this specific thing you're locked into doing that thing so it makes it difficult. kentucky fried chicken had to become kfc to get away from fried chicken so think about your ability to evolve if you are focusing on the name. >> very good point. i dealt with that with my own company, changed the name because we were too narrow in the beginning as well. this is an e-mail from marshall, "what is the long term impact of testing new products on your website? is it an issue for customers seeing products come on and then off?" i love this question. i want to see if you feel the same way as i do. >> i love it, too, because i love the focus on innovation in business and i think that from a
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long term perspective it's great because you're including customers' feedpack and using that to dictate which products should be part of your repertoire, but from a short term perspective, there are risks because if you put a potential product out there and people some people love it but it's not worthy for mass production, they could be a little bit frustrated. >> the way that i would approach the transparently, i would do a limited edition or a seasonal product so it shows that we're only intending to have this for a short period of time. of course, you have to balance then that you may get a little bit more extra feedback because people want something limited but i think it helps you to set up that expectation that this product may not be here the next time, and that you don't have the disappointed customers. >> let's move on to the last question about work/life balance. >> it's me and my husband who run the chris with one full time employee and three part-time employees, and my question is,
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what do you recommend to do to keep balance between business and our personal life? >> so i work with my husband for ten years, and then i had to professionally spin him off. personally i kept him but i really am one of the people that feels like absence makes the heart grow fonder. this is really difficult and really difficult in a small business because it's not like you can divide and conquer and say you work in this department and i'll work in this department so i think you really need to set ground rules. you need to set ground rules at work that you have some independent time, maybe you go to the gym, maybe you take breaks and lunch by yourself so it's not 24 hours of the business, and the same thing at home. after a certain period of time in certain locations like the bedroom perhaps, you are not allowed to talk about work, because otherwise it ends up blending together. >> so i think that this is a
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very tough issue and so many small businesses face it. in this example you have the husband and wife team and also a few employees where i'm sure a business it feels like a family in some ways and then at home business probably creeps in. my guess is the biggishier issu the business creeping in at home. you have to be disciplined setting out time for things important to you. if that means exercise, block out an hour three times a week or making sure that you put in that date night every two weeks, block out that time and have it be sacrosanct. >> we'll leave it on that. thank you so much, both of you, we appreciate all of your advice. thanks so much for joining us today. if you want to learn more about the show, go over to our website, openforum.com/yourbusiness. we'll post all of the segments from today and a lot more information to help your business grow. also follow us on twitter, and on facebook and instagram as well. next week, what happens when
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not just one but two company founders find out they're having babies at the same time? >> we have nine months to get it all together before you leave. >> i would say the hardest part about being pregnant and thinking about going on maternity leave is the realization that i'll have to step away and i may not know everything going on. >> we see how this beauty company is preparing in order to keep growing while part of their leadership team is otherwise occupied. until then i'm jc.j. ramberg, ad remember, we make your business our business. >> brought to you by american express open. visit openforumopenforum.com foo help you grow your business. 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
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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

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