the new owner of a golf course finds the original name both a blessing and a curse. was changing it a fair way to attract new customers? and warby parker disrupts the eyeglass industry. lessons you can profit from coming up 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 on every step of the journey, american express

open proudly presented "your business" on msnbc. hi, everyone. i'm j.j. ramberg. when you're launching your company, you typically get the chance to build your brand from the ground up. there's some flexibility when you're new to the market. if you opt to buy someone else's business, you inherit everything else that comes with it. one entrepreneur decided a name change was called for when he took over a golf course. he immediately knew the best way to attract new customers was to give it a new identity. >> it's a tight rope to walk

along. it is nice to have a true identity that can be recognized. >> it's a business milestone that was six years in the making. 3 lakes golf course in pennsylvania is finally a brand of its own. >> what we're fighting a hard, hard fight was convincing the public they could come here. every day more people understand it. >> arthur hawk now owns this 18-hole facility and anyone is welcome to play a few rounds now that it's public. it's quite a change from 3 lakes' former life. it used to be the members only alcoma golf course. >> it was a blue collar country club. there was a lot of bankers, mid-income people in here. and it was a school teacher and a wife that had some extra money and they wanted to play private golf courses. >> as a member, hawk knew the game was familiar to many. not only was the course called alcoma, but so was the nak

neighborhood around it. >> like a lot of golf courses it was going out of business. as soon as the membership dropped below 225, they waited too long to sell it. >> but this entrepreneur had a plan to revive it when he bought it. hawk needed to break with the past, create a new identity, and open the course's doors to anyone. >> the real reason was that, hey, you can come here. draw from a larger base of people. >> once this sale was finalized in 2007, the reinvention started with a series of improvements. arthur's daughter manages the location. >> we had to remodel three of the areas, overhaul the cart paths and the map layout of the course. there wasn't a map on the score card. >> when i bought it there wasn't a bathroom for ladies on the first floor. we made it more public friendly. >> spite the changing landscape and the things like new tees and league play, the alcoma brand

didn't disappear right away. it took two years to consider swoping the name. >> luckily we had that period where we hadn't changed the name yet when it was still alcoma and there wasn't this huge influx of people trying to navigate the campus at 3 lakes. had we changed it immediately, i'm not sure we could have handled that play. >> employees like the idea of a new name too. the manager says customers were confused. >> i answer the phone every day. a lot of people would call and didn't realize it was a public course. we thought if we changed the name, now it's going to be okay. people are going to know it's a public course. >> but arthur said not everyone he talked to was on board. >> people were arguing with me. they said you have to leave it that way. >> in an effort to get the word out, 3 lakes launched a contest. they wanted to engage with customers. >> we thought really including the public into the name change

was the way forward. holding the competition really made everybody start talking about, oh, alcoma's going to change their name. they're not going to be alcoma anymore. what should the name be? >> it needed to be easy to understand while also resonating with players. >> you really need to identify with your customers and see how well this name will affect their decision making. will it make them feel proud? will they want to wear a 3 lakes golf course shirt? you know, is the logo cool enough that it actually says golf to people and they'll want to wear it on their person or on their bag. >> an employee's son submitted the winning name. that's when the big push began. the transition started slowly by using the old and new names on printed material. megan was hesitant to make a clean break. >> we worked through it with a tag line on all of our

publications. 3 lakes golf course, formerly alcoma at the beginning until we established our true identity. >> another campaign to kpused on reminding customers that 3 lakes was carrying on a tradition. the course didn't change, just the name. >> we started a campaign the roots remain the same. we have a layer of grass and in the roots have alcoma. i thinit helped customers feel comfortable with the transition. >> while it's taken some time, people are finally embracing the switch. >> this has been the year that people go, 3 lakes, they know where it is now. >> it didn't matter how long the rebranding took. arthur says making a major move like that was necessary. >> if you want to distinguish the ownership changing, change the name of it. it's the easiest thing to do. >> but as everyone as 3 lakes has discovered, the old name keeps popping up in conversation. because some old habits are just

hard to break. >> if somebody says alcoma, i don't correct them but i follow it with, at 3 lakes. warby parker disrupted the world of prescription eye wear starting with its earliest incarnation as an e-commerce site. two years ago they opened their first store in new york's soho district. since then they've opened a dozen locations across the country and they are a shining example of how to build a brand. ♪ >> when classmates neil blumenthal, andrew hunt, and david gilboa launched warby parker, it shook the world of eye wear. selling under the price of typical fashion glasses and doing it all online. >> we said, well, what if we could create our own brand, design glasses ourselves, work with manufacturers and sell directly to consumers through a

user friendly website. we could offer the same quality glasses that normally cost $500, $600, but do so for $65. >> they sold almost exclusively online for two years. they didn't have stores in the business plan. their goal was to change an industry through internet sales. but what they soon learned surprised them. >> what we found was people really wanted to shop and experience the brand in person. >> they're not alone. internet retailers across industries are finding while the internet is great to start an idea, ultimately there will always be consumer who is want to do things the old fashioned way. touch and feel them before putting down the plastic. piperlime opened a soho new york location in 2012. and the men's apparel company bonobos now has 20 shops across the country. others have invested in pop-up stores in major cities.

>> consumers are never going to do all their shopping online. they're not going to do it all offline. the best brands that are focused on offering the best customer experience are going to have a presence in both channels. >> problem is opening a store takes money and planning. in the beginning, this was not the focus of warby parker. so they sort of did it on the fly. inviting people over to neil's apartment and laying frames out on the dining room table. today things are much different. with a solid success story and funding behind them, warby parker has expanded to 15 brick and mortar stores. the crown jewel is their 2,000 square foot flagship store in new york city. calling it just a store, though, does not do it justice. the two founders who are still running the company, neil and dave, decide fire department they were going to move to brick and mortar, they were going to do it in their own style. that means throwing some of the

traditional thoughts of retail out the window. the short but vibrant history is front and center. and coveted shelf space is used to show books for independent authors. >> people say you're wasting all this selling space. we don't look at it on a square foot basis like that. it's sort of what is the experience that we want somebody to have. and if we can have retail be a form of entertainment, if we can build community through this store and we think we're going to sell more and more glasses. >> a photo booth to share looks with your friends. glasses out in the open instead of behind locked cases. and a tablet check out system instead of a register setup are just some of the ways their physical store helps fans interact with the brand in ways they can't online. the stores have also helped the e-commerce site reach a whole new customer base of shoppers

reluctant to buy glass on the internet. >> we're finding once people buy their first pair of glass from our stores or showrooms, the second, third, fourth time they're doing so online. >> would the store have been successful if you had started in a store and skipped the online part or launched simultaneously? >> that's a good question. we would have had to do a really big launch to have had lines out the door and over 4,000 people each weekend for it to work as it has now. i think launching online allowed us to get a large following much faster than if we had just had bricks and mortar. you're limited by geography. getting a bank loan is still a challenge for many small business people. but there are lots of other lenders you can turn to. here to explain is jordan goodman. he's a personal finance expert, author, and editor at

moneyanswers.com. he's got more than 35 years of providing financial expertise. well, we are happy to mine that expertise right now. >> great to meet you. >> you too. we spent many years on this show sort of lamenting how hard it is to get a bank loan. and we talked about all kinds of different ways to get money. factor in, you can go to lending club.com, for instance. so you have a new one. >> but there's a new one. there are clearinghouses that will connect you, the small business, to lenders who you don't normally get to see. for example, hedge funds want to earn a decent return. they will lend to small businesses if you meet their underwriting criteria. >> but there's no way i as a small business -- >> you're not going to a hedge fund directly. >> nor would they want me to. >> correct. here are the underwriting criteria we're looking for. the clearinghouse talks to the small business and makes sure they meet the criteria. once they do, they'll say what

you asked for these guys have it. will you make the loan? >> do i ever talk to the hedge fund then? >> probably not directly. that's kwhie the clearinghouse is doing it for you. and in many cases they can get you money you can't possibly get on your own. it's based on cash flow. that's the key thing. it's not based on collateral. banks typically lend on collateral. what could we seize if you don't pay us back? factories, inventory, that kind of stuff. service businesses do not have inventory either any or not very much. so cash flow in the key. they'll look at your bank statements. see what cash flow you have on a regular basis. >> i have one more question before you go into the criteria. who am i paying interest to every month? >> ultimately the loan would be with the hedge funder with whoever the lender is going to be. the clearinghouse is like a middle man. >> the dating service. >> the match.com of small business lending. >> okay. and the hedge fund or whatever it is knows that i am

pre-qualified because this clearinghouse has already looked at the criteria. >> correct. >> okay. so let's go through the criteria. bank statements you said. >> they're looking to see you have good cash flow. that's the first thing. is exactly what your cash flow is on a regular basis. then look at your bank statements the last four, five months and make sure you've got the money to pay the loan back. second thing, they actually want to see your tax returns and see what you've reported. they don't want to fool around. they want to make sure it's legit. they also want to check your credit, both your business credit and personal credit. the business is typically on a street report. in many cases when you sign up for a business, you're going to do a personal guarantee. that's why they check your personal credit. if the business goes under, they go after you personally. so they're going to check both. they want to see what facilities you have. if you're in an office, they want to see your lease. or if you're in a factory.

>> and what size loans are we talking about here? >> typically $50,000 to $100,000 or more. it depends on the amount of cash flow the business has. if it's more, the maximum is probably $150,000, $200,000. something like that. these are not million-dollar loans. >> so i'm watching the segment now, this is interesting. there is a clearingous out there. >> there is. >> where? >> it's called company lending solutions.com. and they have access to all these different lenders out there that you don't know who they are but they're the ones doing the underwriting for you. >> and what red flags, what questions do i need to be asking? >> make sure it's a legitimate lender and make sure the interest rates aren't too high. cash is at zero these days. so if they're earning 5% or 10%, they'll be happy with that. >> how can it compare to a bank

loan? >> if you get a bank loan, those are typically higher. bank loans are collateral. that's why the interest rates may be lower. if you don't pay they'll take your factory. that's why the interest rate may be higher or -- >> or a lot higher? >> not that much. depends on the situation and credit. >> great. jordan, thank you for stopping by. >> very good. thank you, j.j. travel can be a necessary but tedious part of running your small business. here now are inc.com's tips. >> choose one airline and stick with it. the better you should expect to be treated. two, sign up for tsa precheck and global entry. these programs can dramatically reduce the time you spend in security lines. >> three, play attention to flight delays when booking.

take a look at a specific performance. skip airports or flights that are delayed more than half an hour. it can pay off. four, ship what you can. now that airlines charge for almost every checked bag, there's a good chance shipping your stuff would be competitive. and five, select your seat late. choose seats where you won't be next to another passenger by waiting to the last minute to pick where you'll sit. coming up, what investors look for in growth companies and the pros and cons of outsourcing human resources. and today's elevator pitcher wants you to stop and smell the coffee. but will our panel buy his special takeout lids for hot drinks? 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 today's your biz selfie is from slippery rock pennsylvania. she owned courtesy by koko. a jewelry company. now, why don't you pick up your cell phone and take a selfie of you and your business and send it to us or tweet it. do not forget #yourbizselfie. today's elevator pitcher has

sold millions of his special hot beverage cup lids and he's looking to grow his business. let's see if the judges are ready for some coffee talk. leslie kuhen and michael porte. >> hello. my name is craig bailey. do you drink coffee from a paper cup and a lid that's done each time in america? i do. my first cappuccino was this amazing open mug experience. it was so good. the next day i went back to e the same shop, i ordered the same drink but had to go in the car. paper cup and lid. it was terrible. and that is why i created foam aroma. typical lids block your senses so you can't enjoy the coffee. it's like trying to taste your food if you have a cold. with foam roma you inhale that aroma and feel that foam. for three years now i've been

wholesaling to distributors in america, canada, and europe selling 9.5 million lids. now we want to increase inventory, develop new products europe and to do that we're asking for $450,000 in exchange for 20% equity. oh, one last thing, when consumers are surprised with that amazing foam aroma experience they too will smile and go back for more. >> thank you, craig. here you guys go. i want two numbers, one through ten, the product and then the pitch. so there is an extra hole so i can it? >> the aroma. the foam in the cap thee know flows out. >> a hole to drink from and a hole to smell from. >> michael is writing a book here, our author. i'm giving an 8 for the product

and a 7 for the pitch. i have the same problem i can't use traditional cups. i think they screw with the taste and aroma so i look forward to trying it and using it. the pitch i think in content was great as a visual pitch you need to make more of the lid. it looks like you're strolling along carrying a cup of coffee. you need to draw attention to it. >> what about having coffee? >> i'm an old klutz. in a sitdown situation that might work. >> i may be tougher on the pitch is a four. i thought it was a little bit staged, so i could tell you memorized it. in the beginning you drove through it so fast i had trouble following. i put a question mark under the product i'm still not sure in part because the pitch was weaker than it needs to be, than it should be and as a result i'm going, there's a smelling foam

aroma, but it didn't jump out at me as something that was extraordinarily different than what i've seen before. >> can i ask you, 9.5 million sold, that's a lot. was the information in the pitch there but it was thrown off because of the presentation? >> that's, 9.5 million sold that's a huge number. one of the things we're looking for is momentum. >> he said it but you didn't hear it. >> i didn't hear it at all. >> i'm going to give you a four for listening, michael. >> i'm sorry, what? >> looks like you have information there, good advice. thank you. congratulations on your success so far and good luck moving forward. >> thank you. >> if any of you out there have a product or service and want feedback from our elevator pitch panel and your chances of getting interested investors just send us an e-mail. the address is yourbusiness@msnbc.com. don't forget to write what your company does, how much money you're trying to raise and then what you want to do with that money. we look forward to reading those pitches and seeing some of you

here in the elevator. it's time now to answer some of your business questions, les and michael here to help us out. the first one is human resources at your small business. >> how can small businesses get more resources when it comes to hr? we don't have the money to hire an in-house hr department, but there are so many issues around hr that we need to navigate to make sure that we're doing things correctly, to make sure that we're taking good care of our team. >> hr is very difficult. you inneed to know what you're doing. you want to treat your employees right and don't want to get sued. there are also of services. >> adp, you do your payroll and benefits and retirement plans. even set up an online documentation system for you. so a lot of these companies will do a good job, they've got a lot of experience with it and adp is

one of them. >> they're peo companies, look them up or ask your friends. any ideas? >> i'm a proponent bringing hr in house as late as you can possibly get away with doing it. one of the things that happens you start to cop flate the compliance side of hr with culture building and it's really important to keep your hands on the culture building as long as possible so outsource is your first step and keep it outsourced until you absolutely have to bring it inside. >> i think that's a good point that you bring up, there are two different sides of hr. we were just talking about payroll and compliance and making sure you have the right posters up, et cetera, and culture building, which you as the owner and the founder can really work on yourself. >> correct. >> it's also important for the owner not to abdicate these responsibilities. they need to understand all the implications. >> exactly. >> not just you go do it. >> you can't trust someone to do it if you don't understand yourself. moving on to the next one, the impact of growth on getting

investment. >> one of the three most important things investors look for in companies, what are their hot buttons. >> value, return, exit. that's it. everything else, every other discussion you have with an investor, they might say love your passion, love your product. the only thing they're thinking is this valuable? am i going to get a return and how do i get out? that's not to say that you can't make a case for the value of your business because you're passionately involved and it's a wonderful product. bear in mind that's what they want, value, return, exit. >> what do you think about traction? >> traction is important. i want to see the product at the alpha stage, i want to see if it's going to move so where are they getting traction, sales, channel partners, is it deals, is it product development and if we see movement, if we see traction them we're interested.

>> got it and it gets to your point of growth, traction and can you keep that going into growth. >> if a founder comes and says quick exit, we're going to flip then i'm a little worried. i want to see there's market share and a plan fort long-term and if they get a quick exit that's great but if they're thinking quick exit from the beginning that would worry me. >> let's move on to a question about increasing your sales. >> we're still growing and i wondered whether or not one of my best avenues for growth would be to increase the number of skews that i have, currently only have three. >> i love this question, because we have done stories on companies that have so many skews and then cut them back and other companies who have used that customer pace to sell them more skews. so how does he think through this? >> it depends. in his question it's not really clear. he's saying he's growing, but has he exploited their current product line, because if he's

thinking well if we just add more products then we'll sell more, he may be, it's counter intuitive, not necessarily the case. he may start to dilute hiserts and sometimes cutting back on the skews will actually help grow because then you can focus. >> right. what do you think, les? >> i think i'd want to look at why not add some more skews, and i'd be looking for profitability, are the current ones profitable. if they are, fine. if they're not, you got to fix that first. second thing is service. do the current skews suck up your ability to service your customers. if they are, then you don't want to be adding more at this point. but the third thing that's probably the most important aspect is, is there a market opportunity. >> that's what i was going to say, is anyone asking for more skews from you? >> is somebody jumping up and down saying this is great, why can't you it sell me this as well? you want to look for not just demand you go out and imagine this. one of the things we do as

business owners we tell ourselves pretty stories. you want other people to be tell you and not just a series of anecdotes. you want a trend saying if you can do this as well as that then i'd buy this. >> he has a customer base, he's growing. can he test it. it's pretty easy to put something out there and see if his customers would buy whatever that product is from him. >> we don't tess enough in business. we often say we have do this and make it right. it's great to test stuff. >> great, well thank you for your advice here and in the elevator pitch, really appreciate it. if any of you have a question for our experts, we answer them every single week here on the show so just send us an e-mail, the address is yourbusiness@msnbc.com. thanks so much for joining us today. if you want to learn more about the show, just head on over to our website, it's openforum.com/yourbusiness. we put up all of today's

segments and a lot more information to help your business grow. we're also on twitter, it' it's @msnbcyourbiz and facebook and instagram as well. coming up next, art, business pull an all-nighter in washington, d.c. how the all night festival is drawing customers to city streets and getting them to support local businesses. 'til then, 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