coming up on your business, a former navy s.e.a.l. turns his improvised military training program into a booming business. then the facebook copycats trying to capitalize on his invention. how this woman took an development investment and turned it into a multimillion dollar skin caroline. and the owner of a mail order christmas wreath company in vermont deals with the challenges of running a seasonal business. for over 12 years we've been giving you information and advice you need to run your company. that's all coming up next on your business.

>> announcer: msnbc your business is sponsored by american express. don't do business without it. ♪ ♪ hi everyone. i'm jj ramberg. welcome to your business. a show dedicated to helping you grow your business. for anyone fanatical about working out, you've heard of trx. a former navy s.e.a.l. is at the helm of this brand. the road to success has been complicated. the market was flooded and randy

faced battles he never even imagined possible. >> randy het rick is the man behind trx, one of the most buzzed about brands in the fitness industry. it stems from a simple concept. one strap, two handles. the trx experience is anything but basic. trx's success didn't happen overnight. for over a decade, randy poured every haas dime into building a pristine product and stand-out brand experience. just when trx start today take off, he was blind sided. copycat and counterfeit products were flooding the digital marketplace. >> they multiply like cockroaches. pretty soon you have a sea of them. you have to figure out a strategy to allow to you put this bad genie back into the bottle. >> when randy dreamed up the concept for this exercise

program, a business venture was the last thing on his mind. he was a navy s.e.a.l. facing ongoing missions that demanded a serious apartment of physical strength. >> the one constant when we would deploy abroad, there's no gym. >> a natural problem solver, randy came up with a solution. >> i accidentally scooped up my jujitsu belt. came up with an idea to tie a knot and laep back and try to copy the motion of climbing the ladder. except to do it using my own body weight against gravity. it worked. i can also do curls, flies and i ended up starting to make them for guys in the squadron. >> after 14 years of service, randy enrolled in stanford business school and people on campus started noticing his unconventional workout. >> just about every coach would end up walking over saying all right, i got to know. tell me what this is.

ten minutes later they'd be asking me to make them some. >> he realized it might have the potential to become a lucrative business. he was will to make a bet on it. >> i think i had about $50,000 to my name. i spent that buying a 40-year-old sewing machine and prototyping all summer. >> in 2005, trx launched with a product that delivered undeniable results and limitless workout options. li but getting the masses hooked took years. copycat and counterfeit products were rampant. >> counterfeit has to be copying your product and using infringement on your trademark. they're trying to convince the consumer that they are you. knockoff is a subtle twist but it's no less insidious. they copy your product but don't put your trademark on it. >> randy needed to take immediate steps to fight back if he wanted to keep his company afloat. >> you got to get a lawyer. that's expensive.

>> randy had to devote much of his cash flow and manpower towards the battle. >> it sounds like a game of whack a mole. you get this one down and another one comes up. >> this is whack a mole. >> the brand equity was in jeopardy as people around the world using systems they assumed were trx were getting injured. broken bones, head injuries. even one death in germany. the serial numbers embedded in authentic trx products saved the company from lawsuits filed against them. customer service complaints and horrible online reviews kept coming. >> our strategy was to form a partnership with amazon and explain that this was not tolerable and that they were contributory infringer. they did not like to hear. they took action pretty aggressively on counterfeiters to put in place a machine learning mechanism that once someone has been proven to be a bad actor, it gets increasingly

harder for them to get back up on an otherwise automated platform. >> randy also knew he had to make a bold and very public statement to scare off the copycats. so he targeted one of the companies doing the most material damage to the trx brand and filed suit against them in court. >> how hard was that to win? >> that was a painful trail. >> he spent 3 years and $2.5 million on the case and despite a $7 million damage award, trx never saw a dime. >> the infringers go out of business. you better have a strategy for how you're going to leverage that verdict before you file suit. now we have a cease and desist letter. >> the other thing i notice you did was put out a big press release. >> very much was intended to be a don't let this be you message. to all the other knockoff folks. >> randy's strategy has worked and today the business is thriving. with headquarters a based in san

francisco, he employs currently more than 100 people. >> i love this. black and yellow trx. these offices are so amazing. >> it's pretty cool having your headquarters over the top of your gym. >> trx systems are in more than 40,000 gyms worldwide with 250,000 trained professional teaching the trx method. >> we've built the company on the brand literally one trainer at a time and tried to give them a great tool and knowledge to deliver results to their clients. >> in and out. exhale. back in. >> when trainer jason berk horn opened his pilates studio, he invested in trx equipment for every station. >> it was something new. i love trx. you can get to 100 different positions. sweating, your heart is racing. get your legs, your core, your arms. it's cardio. it's an awesome workout. >> the world of black and yellow became an instant obsession for

many. now, randy's main focus is on trx any time, anywhere. a home system. along with a trx app. it allows fans to bring the experience into their house and on the road. >> how big is the company now? >> somewhere in the vicinity of $60 million in revenue this year. i feel so fortunate to have this astonishing community. the black and yellow is a big deal. people from all around the world tell us how it changed their lives. that's powerful. you can't knock that off. how do you get customers to purchase more at your e-commerce site? our guests have quick fixes to improve we have the general manager and head of north american business paypal. if anybody can get people to shop, it's you. >> we definitely have tips.

>>let start. i used to work fon an e-commerce site. we get people to come to the site and abandoned cars and see them come to the site and leave. there are little things that you can do that get people to actually purchase. so let's start with that. number one. >> i think it starts with finding customers. the number one thing is as we talk to millions and millions of merchants, the biggest thing they struggle with, hey the world is evolving. everyone is used to paying for google key words. to give you a stat, consumers like 30% of the time is spent on social. the facebook, the pinterest. the idea there is start getting into those channels. advertising in those channels. bringing customers to your site or your store. number one. >> right. >> one is obviously make sure that your site is mobile-ready. 40% interactive. mobile grew faster than the

desktop side. it continues. if you have got a site that's not only mobile optimized but ready to accept customers when they're shopping on the screens and make sure that things are simple, one button to check out, those are critical. >> one click checkout. so you're not go to the next screen and the next screen. >> we launched a o product called one touch. we have over 100 million consumers on it right now. the whole idea there is, no credit card exchange. one click, you're in, you checked out, you're done. imagine if you were at a railway station and you want to shop. you don't have time to put in 25 key strokes. >> you don't want to get out your credit card. that's the next point, offer payment. basically, what shoppers want is for it to be easy. >> one, they want it to be easy. one touch will come in there. the other big thing that we see is make sure once you get into

the cart, the cart abandonment rate 170%. what we talk about is make sure you offer all methods of payment, whether it's credit card, apple pay, these are things that a customer wants and is able to check out with. consumer credit is a huge one. a lot of people see a watch, it's $500. but maybe i want time to pay it off. that gets you over the hurdle and lets merchants get paid up front and -- >> where do you do that? at checkout you have a button that says -- >> you can get a credit button or get a banner throughout the shopping experience that says, hey you love this dress or this watch or whatever it is you're buying. click here and ten seconds you're approved for a consumer credit. the merchant gets paid up front. >> is this widely available right now on e-commerce? >> it is massively available. it's a simple plug-in. >> got it. this is an oldie but goodie. provide offers and coupons after checkout. that's to get people back.

>> remember the part i spoke about, 70% of carts are left abandoned. this is a key thing. a lot of people will say, i'm looking for a couple of things, i may come back later. make sure they come back later. get them into coupons, reach out with e-mails. do reminders and say hey, we've got this product. maybe i'll give you another 10%. the other big thing we see that works is offer free return shipping. take the risk. >> people expect free shipping both ways right now. >> that is one -- one is expected. the other big thing, if you're a smaller merchant without a large brand, this takes away the fear. if i buy something and don't like it, what happens? return it to me for free. that gets a lot of consumers over the hurdle of shopping at small businesses. >> so i've been in the coupon businesses with good shop my company for 12 years now. coupons get people to shop. >> that is exactly right. >> it changes everything when people feel like they're getting something and also free

shipping. >> that's right. it's good to see you. this is incredibly helpful heading into the shopping season and small businesses need to know how do we make it easy so people will shop there. >> thank you for having us. >> thank you. when california baby founder jessica -- launched her skin care brand for kids in 19 t95, e started with one product, a shampoo body wash. now they sell nearly 100 products and worth $250 million. we sat town with jessica in the heart of los angeles at california baby headquarters where she shared her tips on bubbling up to the top. >> i first started california baby, my goal was to change skin care for the american child. my goal was to replace the sulfates.

i did that. replace the synthetic fragrance. did that. the last six years it was all about creating a 100% natural preservative. >> how do you do that? >> it's about saying yes, we can. we're going to do it. i don't know how. fake it until you make it, right? i got to get people on board with me. if she thinks we can do, i guess we can do it. you also have a few wins under your belt. i remember one time i had a large supplier and i was talking about something innovative, and they said to me, you know what, jessica, we'll do whatever you want because you've proven that you can build a successful company. so that was great. i was like, oh, i like that. but i had to have that win under my belt. you have to have wins under your belt. when i develop a product, it's a minimum of six years of just development because first it's an idea, okay, i'm going to do a

hair gel. but i don't want to use the silicons. what should i use? we start to r&d it. that didn't work and that didn't work. i created a gel made out of starch. you can use it to thicken your gravy. it's tapioca starch and cornstarch. that's where the editing process comes in. that didn't work. that didn't work. take the one little thing that works and expand it. not every idea is a good idea. you need to write the ideas down, let them live a little bit and you come back. i think that's the essence of california baby. there are no shortcuts. you learn as you go. you take your time. you make the very best decision. i really haven't made too many mistakes. but the reason is i take my time in making the decision. so when the decision comes, i've looked at every single angle. what about this? what about that? i'll go back and do it again. i'll do it until my brain is

satisfied. okay, i've checked everything out. did i talk to everybody st. let me talk to this person and see what he or she thinks. then i'll make the decision because i know that i've got all the information. i think sometimes people make mistakes when they rush because i've got to get this done. i've got this order to fill. i don't do that. we've never had a recall. i'd rather hold it and miss the sale than rush something to market. that's not right. we own 100% of our business. we don't have any outside investors. my advice to people who are going to take funding, just make sure you know what you're getting into. don't be afraid to ask questions. it's your business. right? it's your idea. you're the founder. you're the captain of the ship. make sure that's the case. put in the clause to make sure that you are the one who is actually signing. make sure you read that contract. understand why you're taking that money. what are you going to do with

it? especially in today's market, people think they're successful because they got funding. you know, i think that people don't understand that funding is actually debt that you have to pay back. so pay attention. especially when you're innovating, don't follow somebody else's timeline. say you get a big order and the buyer needs it by a certain date. everything isn't falling into place, don't be afraid to say no. don't be afraid to say it's not ready. because who is going to lose, right? the big box place ordered 10,000 pieces. but they need it in six weeks. everybody is running around with their heads cut off and that's when i would say, whoa, slow down. your emergency is not my emergency. i need a perfect product. i don't ship product out of here unless it's perfect. i always say this. is it a brand builder or is it a

brand killer? that's how you answer all the difficult questions. still to come, how do you navigate the conflicts that come up in a family-owned business. we'll show you how the owner of a vermont christmas wreath company capitalized on the home delivery trend. you're in the business of helping people. we're in the business of helping you. business loans for eligible card members up to fifty thousand dollars, decided in as little as 60 seconds. the powerful backing of american express. don't do business without it. i'm in a family business. there's a lot of conflict all the time. what's the best way to resolve

conflict in family business when the emotions are running high? >> i think this is a great question. the way i think about a family business. like any relationship, you have to create a foundation of trust and communication. so if there's conflict in the family company, i think first getting to the root of the lack of trust. once you're able to identify it and discuss it openly either with a facilitator or with a family together, then you work on your communication skills. once you have that foundation of trust and everybody knows they're pulling in the right direction for the same things, wanting the same things, because often it's not a profitable company they wish but they want something that serves their ego or gives them access or status. >> the stream of packages showing up at our doors feels endless during the holidays. but be honest, who doesn't love that kind of convenience? the owner of a vermont christmas

wreath company started her business because she knew there were plenty of people willing to pay for home delivery. she discovered that running a seasonal business is different than running one year round. decorate them and ship them all over the country. once you have received one, it becomes a family tradition. that's the other piece that i like to be a part of. >> reporter: it's the most wonderful time of the year in katherine hackett's vermont workshop. the smell of balsam fir reminds you of christmas. >> when they open that box that smell transports them to a different time. i have gotten a lot of comments on that, that the fragrance reminds them of childhood or reminds them of a special time in their life. >> reporter: this landscaper hand crafts the festive designs

for the mail order business. my vermont wreaths. the tag line sums it up perfectly. the scent of vermont, scent anywhere. >> i make every single wreath. >> reporter: all the wreaths which are made with brush from local trees and make up about a quarter of her yearly revenue take shape in a very short period of time. what started out as a hobby for katherine turned into a seasonal operation. after her friend who already had a mail order business died from cancer. >> her husband couldn't -- didn't want to take and continue it on. so i bought the mailing list and it was a solid business decision because it was a list specifically designed for me almost. >> reporter: my vermont wreaths launched with 700 clients on that list. along with names that katherine had collected on her own. now customers from across the country like in florida, oklahoma, and california hang her creations. >> i have had her mailing list for nine years now.

and so it's blossomed into a whole other direction that i could have never planned. >> reporter: the business is split into two parts. the wholesale and the retail. >> november 1st i'm in this shop making wreaths, that's all gearing up for the wholesale part of the business which all that product has to be done and completed by thanksgiving. >> reporter: early orders from nurseries and garden centers months in advance get production going. once those wreaths are picked up, katherine shifts her focus to the more personalized displays. >> i work the mail order from november 21st and i have even shipped after christmas. >> reporter: despite all of the phone calls and e-mails this part of the process requires some guess work. the mail orders are unpredictable. >> what i do is i make what i know i'm going to sell. i know i'll sell 300 to 400 so i make that. then the orders keep coming in

that can be a bit difficult. i'm a smart girl i figure it out. >> reporter: her team can pick up any task necessary while katherine works her wheel. >> i make the bows for the wreaths so they stay fresh. i handle the office work, process the shipping. and sometimes clip the brush. >> i train and i have my staff. you saw today people coming in and out. i have a support group of people i can call any time. >> reporter: if there's an issue where a wreath, it's straight forward. if there's a problem it's replaced no questions asked. >> i had the occasional wreath that's -- it's shed or something happened. it's a natural product. i immediately send another wreath. >> reporter: the high number of repeat customers and their willingness to spread the word about her designs are clear signs to katherine she's on the right path. >> you're dealing directly with people from all over the country. it's lovely to have them call

and especially when they call year after year. it's everything. it tells me exactly how my business is doing. >> reporter: her goal of spreading joy and good cheer every holiday season is all the inspiration she needs to continue to grow. there is an art to asking for help. just think about your own life. there's some people who make it really easy for you and you are on top of whatever it is they need or there's just something about them that makes you want to get involved. then there are other people and while you may have good intentions you just never get around to following through. heidi grant is a psychologist who studies the science and motivation of communication. her latest book is called reenforcements, how to get people to help you. it's so good to see you. i love, love this topic. >> you know, everybody needs this topic. we are all not as eager to ask for help as we should be. i think in this day and age when we talk about how important it is to have a network, how

important it is to have allies we need to tap into that. >> or we're asking it in the wrong way and nobody is helping us, right? we know there are people who want to, but we're going about it wrong. i want to talk about the first thing you say here which is just ask a favor. >> oh, yeah. actually that's a really great technique especially if you don't really know someone well, they don't have any particular reason to want to help you personally. it turns out that if you preface asking for what you want by just saying, hey, would you mind doing me a favor and you have to wait until they say yes. then you ask for what you want, that's called precommitment. it almost doubles the rates of helping so people will actually be much more likely to help because they feel like i already told you i would, so i'll be extra bad if i turn around and say no. it's not a technique you want to use with people you have a relationship with like a colleague, but if you need help from a stranger or a random person, asking for a favor first

is very effective. >> asking for something specific. can i ask you a favor, can you please connect me with blah blah, because i know you're friends with them. >> it's important to be really specific about what you're asking for because it really does two things. one, it helps the person who's going to help you to get over the uncertainty. you know, i don't know what you want from me and that threatens me a little bit and also, they can be effective. right? i want to know what you want me to do so that i can tell whether or not i'll be able to do a good job. nobody wants to give bad help. >> it makes it easy. so you may come to me and say, hey, i'm starting new, i need your help. i would love to help you but it falls down my to do list because i know it will take a lot of time. but the thing you might want is simply is a hey, can you proofread this for me? >> exactly. >> i don't have to think about how i can i help you. >> and being explicit about what you want really does help people

to actually kind of figure out can i fit this into my day? we're all really busy. it is a reason to be reasonable about what you asked for and specific. >> and i think -- again, i believe people really do want to help. >> they do. >> if you -- it's sort of like help you, help me help you, right? so make it easy for me to help you. then always follow up. >> absolutely. you know one of things that people neglect to realize about helping is that first of all, it is inherently satisfying. most human beings are wired to want to help each other. win of the strongest sources of self-being is when we're helpful to other people. but the moment you really feel that is when you know how your help landed. so many times we ask someone for help, they agree to help us and we never follow up and let them know what effect there is. there's tons of research that's when people experience that sort of warm glow from helping is knowing when they had an impact and it also makes them more likely to help you again in the

future. >> i think sometimes people feel uncomfortable, sort of i imposed upon you the first time and i don't want to write you back again. but that is the important part. >> it is actually -- if you care about the person who's actually helping if you want to make it a win-win where you're getting something and they're getting something, you really need to follow back up again. >> absolutely agree. so good to see you, heidi. >> thank you for having me. this week's your biz selfie comes from jim fitzgerald up on a roof there who owns titan roof cleaning. they have been cleaning roofs, gutters and pools and removing graffiti. thank you, jim. best of luck to you and your business going forward. thank you so much for joining us. just a quick programming note for those of you who missed the show last week. after 12 years of giving you tips and advice "your business"

will air the last new show next week. we have been having a great time behind the scenes remembering and we'll share with you on that program. meanwhile f you have any to share with us, send us an e-mail. we'd love to hear what inspired you and as always if you missed any of the pieces head over to the website. msnbc.com/your business. we put up all the segments from today's show and a whole lot for you. don't forget to connect with us on all of the digital and social media platforms. one last thing, remember, check out the podcast. it's called been there, built that. tune in wherever you get your podcasts. we look forward to seeing you one last time next week. until then, i'm j.j. ramberg. remember, we make your business our business.

the meeting of the executive finance committee is now in session. and... adjourned. business loans for eligible card members up to fifty thousand dollars, decided in as little as 60 seconds. the powerful backing of american express. don't do business without it. ♪ welcome to "up." i'm kristen welker in for david gura. there's no end in sight, lawmakers aren't scheduled to return to the nation's capital until thursday that's four days from now. >> as a government employee it affects me personally because it requires me to come into work on a daily basis and not knowing if we'll get paid or not. >> negotiations are at a stand still and members of congress

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