good morning, everyone. coming up on a special canine edition of "your business," a network with content for canines. how the owners of dog tv overcame industry skepticism and now reached 20 million customers. why the founder of a portland, maine, dog toy company needed to hire a ceo in order to grow his business. and our elevator pitcher and his four-legged helper try to convince our panel on the merits of his custom-made dog food. let's grow fast, work smart, and have some fun. that's all coming up next on "your business."

hi there, everyone. i'm jj ramberg, and welcome to "your business," the show dedicated to helping your growing business. for any person that turns on the tv, the channel and streaming options are seemingly endless. but turns out we're not the only ones who like to indulge. our four-legged friends are apparently fans too. and when ron levy, the founder of the first ever network for canines, tapped into dogs' true delights, he got tails wagging around the world. ♪ >> have a little treat. >> many people will be surprised to learn that dog tv, the first ever network dedicated to nonhumans, was actually inspired by a cat. >> i used to leave my cat charlie alone every day to go to work, and one day he just gave me the saddest eyes in the world like a puss and boots can't.

>> ron levy, the founder of dog tv, realized it could be a quick fix. >> he reacted surprisingly. i took pictures and thought, wow, this is amazing. >> but turning on just any channel wasn't an option. >> if you leave on any animal channel or any news channel, you might see something scary, like a crocodile. there's a bomb somewhere that is on the news. it can actually increase their stress. it's not good for them. >> in that moment, the concept crystallized. a 24/7 channel just for cats. the idea ultimately went from cats to canines. after hearing from pet owners that dogs are a lot more needy when left on their own. in 2007, the pet industry was a $40 billion business. ron felt strongly that owners might be willing to fork out a small fee for their four-legged friends to be entertained by pooch-appropriate shows, but selling the actual concept to

cable providers would undoubtedly be really rough. ron made his way to jazmine media based in israel. the reaction was far from warm. >> he said, it's a great channel, it's completely new niche. i said, there are no new niches. he said, but the channel is for dogs. the initial reaction is, you know, maybe i'm on candid camera. >> i left that office very sad, i have to say. and then a day after, he called. he said, there's something here. i don't know what, and maybe i'm crazy, but there must be something here. >> it's not going to be very expensive. it's not like an episode of "game of thrones." and we can play it all over the world without needing to localize. >> gilad newman was a partner at jazmine media and saw potential in the business. ron was ready to get the cameras rolling, but rushing to market in an unfamiliar territory would have been a huge mistake, especially with a concept that would initially be considered a gimmick by most.

>> i think many entrepreneurs are on fire. we have this idea, and we have to make it happen now. the ceo said we want people to take this very seriously. the big advice is be patient. these things take time. we had to study dogs and understand them in order to create the right content for them. >> the pair spent three years conducting studies and gathering research from around the world. then it was critical to test the content they created. >> what we did is we installed security cameras in 38 apartments in new york and l.a. we wanted to do kind of a proof of concept thing and see that it works. >> who knew that zebras and giraffes are truly dogs' best friend, or that dogs are not fans of each other's bark. >> you need to have the best proof of concept in order to know this thing works. it's all about the execution and have proof that it actually works. if you don't have that, you don't have much. >> the pair felt ready to craft their pitch and set up meet wgs cable providers. >> we understood that people actually see us like the crazy people.

so people didn't know how to take that. the first tv network meeting, it wasn't a great meeting. i think the second, the fourth person in the meeting took off his phone and started e-mailing his wife. we knew that we were in trouble. we knew that they're not really taking us that seriously. the presentation didn't look good at all. the evidence wasn't demonstrated correctly to these people. >> they needed a major dose of legitimacy. so ron and gilead got pet experts and the humane society on board. and then in 2012, they tested their product in a small market to get invaluable data to prove the demand existed. and it did. that move was a game changer. >> 24 hours after we launched, it was on "good morning america." david letterman's show and leno. it's flattering, but that was not the idea. we wanted to save all these people for later on. >> although they weren't prepared for the onslaught of stories unleashed by the media, they ran with it.

soon dog tv was popping up all over the country, and across the globe. in 2014, discovery communications became a minority stake holder in the company. the channel also launched online, expanding its reach from 15 countries to 75. dog tv is now in more than 12 million homes around the world, and apparently humans are also getting hooked, including actor billy bob thorton. >> there's a ha-ha thing here, and it's funny. it's a tv channel for dogs. but when people start to learn about the studies, that it can actually work and help with separation anxiety and stress, we designed something that's not less than revolutionary to me. if you have an idea, doesn't matter how crazy it is, if you really, really believe in it, just go and do it. pretty much every crazy idea can somehow get to the market. just go and do it, but do it right. make the best presentation, the best product, work with the best people in the world. get great partners, as i did. do all that, and people will

take you seriously. >> ron levy started dog tv himself and then got in the partners to help him grow it. the skills that make a great founder aren't necessarily the skills that make a great ceo later on. once the business gets past the start-up stage, it's common for a founder to step aside and hire someone else to run the show. but it can be really, really hard to find the right person. that's the challenge the founder of a dog toy company faced, and his search took years. >> it's such a major decision. it's important to get it right. it's a big deal to kind of release the reins to someone with your brand. >> alex fisher knew the day would eventually come. >> since the beginning, i've always known how smart i was or wasn't, and i always knew i needed someone else to run alongside. >> in his mind, the change was inevitable. when he launched his company

plant dog in 1997, he knew that at some point, he'd want to hire someone else to run it. >> i don't want to be my own ceo. and i know my own people don't want me to be their ceo. our boat got to be so big that my captain's license didn't work with that boat. >> the founder of the portland, maine, maker of ecofriendly pet products wanted to hand off day-to-day control of the business. he was looking for a leader who could spur growth while remaining true to the original mission. >> planet dog just wanted to deliver a product line that was well considered, maybe it had a little boutique feel to it, but it was a collar that you would want on your dog. that's how nice that's supposed to be. the same went with our beds. the same goes with our bouncy toys. >> when alex started looking around for a new ceo, he met a lot of great people, but he didn't meet anyone that was the perfect fit. >> i could easily find a person that was very good at one, two, or three things, but the reality is we had 12 things that we

needed to be watching. >> all that changed when he heard about colleen mccracken. it was 2013. >> i was itching for a smarter partner, and it still took years to find the right person. i like to say that colleen rescued our company. >> she'd been working as the ceo of another business, so she had the business chops. and not only that, she loved animals. >> i had worked with company founders in the past, and i learned very quickly what it's like to, you know, run a business with the founder very involved. >> alex and colleen agreed that she would come on board, but they made a very key decision. she was not brought in as the ceo right away. >> it was easier to formulate the beginning of the relationship in sort of a consultant-type manner, which gave us both an out if it wasn't working. >> alex knew that if he was going to truly hand over the reins, he had to feel comfortable with colleen first.

>> if i felt like i couldn't let go of a specific project or the trust wasn't there, it's really debilitating. it almost, to me, feels like a dog leashed to a tree. >> colleen agreed with alex's plan. she thought it was better for everyone to get to know each other. >> it's a little different to come in, here's our new ceo, versus, here's someone who's going to help us on this project that we're working on. so i think it was a really good opportunity for the company to meet me and me also to meet the company. >> alex realized pretty quickly that colleen was the right person for the job. she was asking good questions and already thinking about solutions to some of planet dog's woes. >> she was a great listener. it seemed that she was willing to not guess or presume. she took plenty of time to learn about the direction it needs to go before she even decided to change any direction. >> and when colleen became the ceo, she thought it was critical to stop herself from moving too quickly. >> i do believe that the first

role of any ceo is to observe. you never act initially. you really have to give some thought to observing and talking to people and learning more about the founder. >> she set the tone by rallying employees and coming up with goals. >> there were a lot of things that people were working on, but not necessarily all working together towards a common goal. to be honest, it was almost a little bit of a sigh of relief for the employees because they weren't really sure what the priorities were. >> and alex did his part by stepping back so colleen could drive the company forward. >> i've learned in the four years that i've been with planet dog when to consult with alex and when do i think he's going to be okay with allowing that to go in a different way. as the ceo, i do get to make the final call. >> what's made the last four years easier is that colleen has alex's ear and the faith of her team. >> alex underestimates the role that he's played in really standing on the sidelines and

championing these changes. that's sometimes hard to do. >> that doesn't mean that there aren't times when the pair don't see eye to eye. >> i would say that alex and i disagree often. i mean, it does happen that we are not on the same page, but the difference is that we do listen to each other. and there are times when he's right and i'm wrong, and i change the decision because of that. >> technically, alex has the ultimate say, but that's not the kind of relationship he and colleen have formed. >> if i could reverse the decision, but it would never really come to that because we have an understanding. i trust she's seeing where we're going better, so i would never second guess a decision that colleen makes. >> but he and colleen are in touch about every other day, which is giving alex the flexibility he'd been looking for. >> every time i was able to let go successfully, my life became a notch better. so though it's maybe not the easiest thing to let go, if and when you do, if it's done right, the company obviously benefits.

>> sales continue to climb, and both colleen and alex say it's the combination of the founder and the ceo that have gotten them there. >> the founder's perspective is often very different than anybody else's. and it's important to put yourself in their shoes from time to time. we all like to look back and say, were there some things i would do differently? sure. but at the end of the day, i think we did it quite right. all right. now your dog has a toy. your dog is watching tv, and it is time for feeding. and that's why we have you. you're going to be pitching in our elevator. what's the name of your company? >> olly. >> and it's a dog food company. >> yes. e-commerce company. >> all right. and who did you bring along with you here? >> my dog simon. >> is this your taste tester? >> absolutely. he loves every product we make. >> and was he the i thinspirati for the company? >> no, my other doll wg who unfortunately couldn't come today. >> he was busy today.

all right. you have michael, the founder and ceo of fabfitfun a subscription box company. then you have susan, who is the founder of frame bridge. both e-commerce companies. so they should have some great advice. >> yeah, can't wait. >> all right. good luck. >> thank you. hi. i'm alex. i'm the co-founder and ceo of olly. olly is an e-commerce company for pet food. we are direct to consumer, natural food. we are human edible, human grade quality. what we do that's different than any other pet food company is we custom tailor the plan and the recipe to the profile of your dog. people come to our website. they fill out a survey for their dog, tell us about the breed, age, weight, activity level, if they have any allergy. based on that, we'll recommend the right recipe and right meal plan. then we ship the food to you every two weeks. so it's a subscription service. we send you the right amount. we help you keep your dog on an

ideal weight, so if your dog is an ideal weight, they can live a longer life. and it's a refrigerated project. it's not a dry food. it's not a wet food. it's cooked food. it is human edible. it is a product you have to keep in your refrigerator. you serve it to r why dog. you don't have to reheat, rehydrate. it's very convenient and the healthiest product you can find on the market. we're here because we're looking to raise $10 million in exchange for equity. >> all right. i think he's a little hungry right now. nice job. do you guys have dogs? >> no. >> i don't. >> well, this will be a real test of the pitch then. you're not talking to customers. i want two numbers. the first one, one to ten, what did you think of the pitch. seco seco second, one to ten, what did you think of the product? >> pitch, i gave a seven. great description of the product. features, benefits. i can completely understand why someone would want it. from a business perspective, though, i don't understand the

economics of the business yet, and i would imagine for delivering fresh food, getting that right is a big component. so product sounds terrific. i gave that a ten. really clear to me why this would be exciting and consumers certainly love their dogs. they certainly care about the food they're eating now. so it feels like with the custom element, too , you really have something exciting. >> i went with nines across the board. first of all, i love a good subscription. i think this is a great space to be in. people obviously love their dogs. you know, the uniqueness, i haven't seen this customizable sort of angle to it. i think you got to really push hard on that and really -- that's where your source of leverage is going to be, where you can differentiate over time. you can learn more and more about dogs, and what i'd try to figure out is how to get feedback about how this is working. maybe there's trials or experiments you can do so you

can keep improving those algorithms, which can be a sustainable edge. >> and the product, nine. >> the product is nine. obviously i didn't try it. >> we can. >> but you think it's a great idea. >> it's a fantastic idea. we saw a huge acquisition in this space just this year. there's a lot of money to be made in the space. again, people love their dogs and i think they're willing to go for the best for them. if you can convince people this is the best, you'll do great. >> thank you for the feedback. >> thank you so much for coming. so cute. we love having dogs on the set. good luck with everything. >> thank you. >> we appreciate you coming on the program. >> thanks for having me. >> thank you for your feedback. it was great. the holidays are coming up, and as you've walked around, you've probably already seen big retailers start to advertise and offer products for the holidays, even though it's so early in the year. but what can you do as a small business to try and capture some of those customers as well? sarah baldwin is the president and ceo of bella luna toys, a

company in maine selling natural, wooden, and organic toys. sarah bought bella luna in 2009 and has since grown what began as a small home-based web business into a multimillion dollar enterprise. congratulations. that's really incredible. >> thank you. >> so i wanted to talk. you started on the web. you've built this company. i want to talk about small stores that are brick and mortars getting people to shop online during the holidays so they don't miss out on those online sales. >> exactly. so when customers come to our store, we always put a colorful postcard in each bag that has information about our website, all the features that are available on our website, with our url, and invite them to visit us online. >> so i think that's great. it's sort of the first point. that requires them going to you. it doesn't happen probably that often that someone picks it out and goes and types it in. so how do you push stuff to them? >> how do i push stur -- >> talking about the website. >> when they come into the

store, we have a sign-up. we encourage them to sign up for our newsletter. we have -- you can offer an incentive, like a monthly or quarterly giveaway for everyone who signs up. then you can let those customers know via e-mail if you have a local promotion in your store and alert them about new products. >> and also, make sure that your website is beautiful. >> yes. >> right. and it has to be usable, even if right now you are primarily depending on people coming into the store. if it is, you know, 3:00 in the morning on december 19th and they're just like, this is my time to buy, you have to make it easy for them. >> yes, you want to have a beautiful website that reflects your brand and the aesthetics of your store. give them a great customer experience. and make it personal. so you can have a website and still be a small, local store. so you can tell your brand's story. put your picture on your website

or photos of your staff. people like to buy from people. and even though you're shopping online, you can give them that very personalized customer experience. >> that's why they're shopping at your store probably in the first place, because they place because they feel connected to this small local store. >> exactly. so keep your website personal is and have that small business feeling. a lot of customers, even when they're shopping online, like to purchase from small inspect businesses instead of big box retailers. >> especially around the holidays they are bombarded with so much marketing that comes to us. if you have a face-to-face relationship with some of these customers coming to you, you may be able to offer some information you want through social media around the holidays. >> through social media, young people expect all businesses to have a web presence. they expect your business to be

on facebook. they will message you for customer service questions through facebook. page sure you are checking it every day and responding. >> are you already talking about the holidays? >> i have a toy business. so we start planning for the holidays in july. >> do you have promotions around the holidays already? >> we do. as a small business, i have to get creative with my promotions. because early on i felt like i had to compete with all the big retailers and do big 15% off site wide sales. i realized as a smaller store it is is not sustainable. so i have gotten creative. so instead of doing a big site wide sale, for instance, we do 12 days of giving campaign after cybermonday. we just promote one category per day. it is like an advent calendar. people get a new calendar. what might be on sale today.

it might be dolls or wooden blocks or art supplies. customers will come and shop for the items that are on sale. they will usually add things to their cart at full price. so we are not losing. >> that's fun also. it gives people a reason to keep come canning back. >> exactly. >> that's a great idea. thank you so much. i really appreciate it. i know you are an expert at this because you do it all year-round and particularly now. talk to you soon. >> all right. bye-bye. even some of the most intelligent people with the best intentions can be terrible managers. being a good leader can take a lot of patience, a lot of practice and, in some cases, serious soul searching. here are five ways to improve your leadership skills right away. one, swap jobs with your business partners. you can drum up new ideas. you don't have to hand off every pass to your partner, but switching roles could create

motivation into a process. two, mystery shop your store. it's hard to know how your staff is treating your customers when you aren't around. so remind them of your expectations. then you can do it or you can hire mystery shoppers and share the results with your team. just be sure to let your staff know what you are doing beforehand so they don't feel they are being spied is on. three, pay attention to the right numbers. numbers are the life blood of any business. but not all numbers are equally meaningful. for example, if 100 people walk into your store, that's great. but if none of them buy anything, that's bad. make sure you know which numbers are truly reflective of your mission so you know what works and what needs work. four, treat your suppliers like team members. your suppliers are crucial to your business, so treat them that way. give them as much information as you can so they can scale to meet your command. invest heavily in their business

so everyone can win as you grow. and, five, pretend you have a boss. it can be hard to stay focused when you don't have someone over you motivating you to get your work done. so give yourself an employee review and adjust your employees and behavior to make sure you are meeting your own expectations. when we come back, what you need to do to maintain credibility with investors. and tips on obsessing over your customers. why you should be tuning out negativity. so that's the idea. what do you think? hate to play devil's advocate but... i kind of feel like it's a game changer. i wouldn't go that far. are you there? he's probably on mute. yeah... gary won't like it. why? because he's gary. (phone ringing) what? keep going! yeah... (laughs) (voice on phone) it's not millennial enough. there are a lot of ways to say no. thank you so much. thank you!

so we're doing it. yes! "we got a yes!" start saying yes to your company's best ideas. let us help with money and know-how, so you can get business done. american express open. this is an e-mail from jim. he writes, i'm a full time registered nurse, so i am able to support myself as the business starts up. for this reason i will not need to take pay or profit until the business becomes my primary source of income, allowing me to pay back an investor quickly. will this fact help me find a business invest issor or will they perceive it as a lacking a driving force. >> did i focus on the business full time or do i stay in new job, keep the financial stability and then just continue

with the start-up until i'm fully ready to dedicate my time to it. the truth is there is no right answer. i know investors that are advocates in both camps. i would turn it back to you and say what do you feel most comfortable with. it sounds like your gut is telling you to maintain financial stability and continue to dabble in the start-up until you're fully ready to start out. remember, it is is your business, and you have to do what's right for you. we now have the top two tips you need to know to help you grow your business. mike and susan are back with us again. two e-commerce companies. let's start with you. one tip. >> my tip is how to filter through all of the feedback you get as an entrepreneur. and it is to ignore the risk averse feedback you get. if you listen to that, you will nevin know sraephe

never innovate. >> how do you do that? some risk averse feedback makes sense. >> that's right. but, again, if it's in the category of i'm trying to work with your idea and make it better, listen to it. if it's just i don't think you should do this, you have to, have to have blinders on to that. >> or at least be able to ansbach. take it as i shouldn't do this. let me give all the five reasons i should. not because i'm passionate about it but this is why i think it will make my business grow. okay. michael. >> just be completely obsessed with your customers. you know, it sounds obvious. but as you get bigger and bigger, there will be other stakeholders. you have investors. you will have all sorts of things coming at different places. staying attached to your customer and spending time talking to them.

i spend hours every week on community forums, social media engaging directly. it has to be top down in your company. >> this is important because the holidays are coming up. every company will be having a lot of customers. thank you for coming on. >> thank you. >> congratulations with the growth of both your companies. it's really impressive. >> thanks so much. keeping up with our dog theme today, this week's your biz selfie from carolyn alonzo who owns fetch pet care in chicago. she offered pet sitting and dog walking as an alternative to taking your dog to a kennel. all of you take a selfie of you in your business and send it to yourbusiness @msnbc.com. please include your name, name of your business, the location, anything interesting or different about your business

and use the #yourbizselfie. if you have anything to say send an e-mail to us at your business @msnbc.com. or openforum.com/yourbusiness. we put everything on today's show, plus a whole lot more for you. we put up even more and add more on our digital and social media platforms as well. we look forward to seeing you next time. until then, i'm jj rpl berg. and, remember, we make your business our business. thank you so much. thank you! so we're a go? yes! we got a yes! what does that mean for purchasing? purchase. let's do this. got it. book the flights! hai! si! si! ya! ya! ya! what does that mean for us? we can get stuff. what's it mean for shipping?

ship the goods. you're a go! you got the green light. that means go! oh, yeah. start saying yes to your company's best ideas. we're gonna hit our launch date! (scream) thank you! goodbye! let us help with money and know-how, so you can get business done. american express open. morning, glory, america. i'm hugh hhewitt. coming up, a commission majority to return the internet to the net neutrality rule in 2015. but first rocky washington, d.c. this week. guilty plea entered by former national security adviser to michael flynn happened yesterday. the aftereffects of the north korean missile shot