republicans in congress said profozed health care could unfairly tax business owners. plus, what's in a name? for one company, everything. that's coming up next on "your business." hi, there, everyone.

i'm j.j. ramberg. welcome to "your business." where we give you tips the help your business grow. as the health care debate continues in washington, we look at what health care could mean to small business. representative sam grave is a republican from missouri and the ranking member of the senate housing committee. thank you so much for joining us. >> thank you, j.j. >> so you met with a group of small business owners earlier this week, what were they looking for out of reform? >> they were frustrated and they want their health care costs to be affordable and to provide health care for their employees, but they are concerned about the taxes and mandates out there in the bill being proposed and they are corp worried about going out of business as a result of these things going to be required. >> so from your perspective. what does reform look like that helps small businesses? >> well, it is completely different than what's being

proposed. in a bill i have sponsored, it allowed small businesses to group together. if you are a small business be with ten employees and one has a health care issue, it makes it very expensive. if you can group together with 100 other businesses, your buying power got better and your premiums will be much better reduced. that's one component of the system i would like to see. >> proposals do include exchanges where small groups will get to group together. >> well, what we want to say is -- the fact of the matter is the way you want to do this, you want to attack the cost of health care. it is one of the problems of small business, be able to provide health care. it is that the costs are too much. coming in with a system where you are going to mandate that all small businesses provide, then you are going to tax those small businesses to pay for it. and it is going to cost $1.5 trillion. that's the worst thing you can do. then you come up with the government option that ultimately will be the only option out there that is just

not the way to do things. >> well, there has been talk in washington this week of exempting businesses who makeless than $500,000 in revenue from participating in this mandate to either provide health care or be taxed on their payroll. if they don't provide health care, do you think that excludes sort of some of the pain or the majority of the pain for small businesses? >> it doesn't take a whole lot of money and not a very small business to get to that $500,000 mark. if you think about it for just a little bit, if you have five employees, or you have, you just figured out $50,000 and you have 20 employees, you can get to that mark pretty darn fast or 30 employees with less. it doesn't take much to get to that point. >> all right. congressman, thank you so much for joining us. we really appreciate all the work being done in washington because i know from the small business owners i talk to who don't offer health care, it is not because they don't want to.

it is just because right now they feel they can't. thank you for joining us. >> thank you. it is clear a company's name is important. it is generally the first introduction a client has with a business, but you may not realize how important it is. check out the next story where a simple name revamped the company's culture, sales and attitude. no doubt it is paying off. what do you get when you take a unique product -- >> it is like walking in with a seven-foot crayon. >> reporter: and combine that with an unusual culture and an extremely descriptive brand name. you get the exington, kentucky, company big ass fans. >> it inspires a lot of interest and is great for customers. >> the company is the brain

child of terry smith. ten years ago he found a demand for fans to heat and cool large industrial space. he began selling them under a name that didn't quite have the same name ring to it. >> we called it high volume, low speeds. the problem is it is a little different to understand or remember a name like that. >> paul lorpson sums it up another way. >> while the name was descriptive, it was not memorable. >> when they bought the fans ranging from 24 to 60 inches in diameter to trade shows, the response was the same. >> they are the ones who always said, are you the ones that make the big ass fans? after a couple years, we relented and said the whole hlvs thing is not going any place. everybody calls us big ass fans. >> they had used the name formerly in advertising and he decided to go all the way to

rename the company. a decision that paid off instantly. >> our natural customers who would be the directors of maintenance, maintenance supervisors, plant engineers, plant managers, this was very acceptable to them. this was in their jargon. >> fast forward eight years and you can find big ass fans in restaurants and stadiums, but the rebranding did more than boost sales, it also completely reshaped the company's culture. >> the up to, it tells a whole lot about the culture at the company. it tells them how we run the company, but a it is a very honest, straight-forward -- we are very open with what we do. >> these days people are lining up for these fans. >> we are aggressive people. those are the types of people you need for a small company.

>> i think when people hear the name they recognize immediately it is something just a little different than what we are used to because it is not run of the mill. >> would you rather work for ibm like dad or would you rather work for big ass fans? >> the answer is clear. big ass fans attracts local college garage wants and seasonable professionals from fortune 500 companies creating a diverse atmosphere, the perfect recipe for a company that thrives on invasion. >> you have ideas coming from pretty much everywhere from the line up to the head engineer. it doesn't matter, if it seems valid, we'll give it a shot. >> reporter: and the donkey fights don't hurt, either. >> 5:00 on a friday afternoon it is a war. >> but they are not just horsing around. the people at big ass fans want to deliver the highest quality

product. something important for a company to write off. >> what that does is imposes on us as a company. we have to have the absolute best. with the name at big ass fans, you know there's serious engineering or it wouldn't make it into the market. >> what does the future hold? kerry smith has big plans for his big fans. >> we see a big ass fan in everybody's living room. he is confident the business would have been a success regardless of the name rmgs he has no doubt that changing the name to big ass fans was a good move. >> it is a good strict or of what we do. i think people appreciate that and the fact it is very honest. >> love it or hate it, you remember it. the key to a good brand. >> sometimes being literal can be your best marketing tool. we'll turn to the board of directors. jennifer hill is here to help

female entrepreneurs. craig started a company in his apartment and now both are multi-million revenues. so great to see both of you. thank you for coming on the program. >> thank you. >> this is one of my favorite pieces. what i love is big ass fans is a funny name and new peace, but how do you think it changed the culture in. >> well, by using that name, it told the world her confident in our products. whatever we do is do it ourselves. that attracts customer to the companies. >> what if you had a total straight guy as the ceo and it was filled with a bunch of stray people and then you have this name. would that work? >> you can definitely end up having a fun environment at the office while having a very straight-laced product name and

a lull of a product game regardless as long as the president project is there. >> do you have to be the kind of person to push it, though? do you have to be a big ass guy to have the success? >> he or she has to embody with the images. if you are an employee, you want something to look up to. if you are making it interesting, it will trickle down and everybody else wants to be bold, fun and interesting with you. >> the name is working for this company, but changing your name, picture this, you have been in business for how many years, if you changed your name tomorrow, how much work would it be? >> it takes a long time to build a brand, a lot of hard work and effort. once you are known within your industry, if you change it, you have to change focus with everybody. if it is a totally different

name from the hbls, you won't know it is the same product and just gnaw new name. >> how would you evaluate, okay, it is worth the risk. >> if you want to be bold, do it. you have a great product and you want to change it in the marketplace and stand behind it, you think it is going to work, just go for it. >> thank you so much, guys. time now to answer your business questions. the first one is from david. he helped a friend of his launch a business and he writes us, i did all of this with the verbal agreement of a percentage of the product as compensation once the product was profitable. well, now he's going through a divorce. will a verbal agreement with my friend hold up in court. jep, you are the attorney.

>> it depends on your state. and, you know, what, you can. the first thing you should do is talk to an attorney and talk to them about the facts of the matters. did he raise the money? and really see whether the law is on his side. if a viewer has witnessed or documentation at all, something to show that, the court wants to see the one with all the term there is and two is the deal fair. he should consult the lawyer he has and get things like this in writing. he also needs to think about whether broker laws apply, too. >> i guess the best thing is not to have verbal agreements. >> yes. make sure that you have not writt

written, make sure that you have written it. >> even if it is something with little money? >> then you wouldn't be worried about it. this is from toner of a biscuit baking company. >> i'm curious to know if you have plans previously to roll out a new product and find yourself in an economic downturn. is it smart to go ahead with launching the new product or is it safe to hold off. >> i like how she poses it as if you find yourself in the area, i think you have found yourself in one. what do you think? >> when it comes to being in the economic downturn, if it is a luxury or necessity, if it is an inexpensive luxury, i may not go for it. if it is a necessity, then i'll buy it. >> if this an extension of the

product you have. you need to do a lot of things to do it. is it worth the risk that things don't go well? this is a great time to get deals on overhead and suppliers, but if the entrepreneur has a cash flow -- then that is ris did right now. on to the next question from allison. she asks, as a small business owner and entrepreneur, i struggle with hiring and outsourcing. how do you know when to hire someone as an employee and when he services on a contract basis? do you determine, based on services needed, hours needed and pay? >> there's a legal answer. the practical age is what are you using it for. the irs gets very, very upset. likewise, you could be opening

yourself up to a ton of legalized ability if you misclassify people. check with an attorney advise you. >> or you can look online. they do give you a great website. >> they have the 20 top reasons to determine if somebody is a small business or entrepreneur. also, am i finding somebody who can work full-time? >> that is what you do. off service -- someone doesn't hire a person to work on their ad trafficking, which is what you do, they hire you as a company to take care of the difficulty of the employee and contractor. >> we will provide anmentis of service for a fee. that's what you have to figure out going through the process. what is my budget?

what can i get? what can i get for the budget in place. you want to look at a freelancer. do you have redundancy. are you going to miss going outside or to have someone internally to roll through. when you look at a free lapser, you wind up saying, okay, it is a bad economy. >> do i need them at the drop of a hat? and will they be there if they are a freelancer. we'll bring you back later with our elevator pitch. if you have question for the experts, head to webb webb. you can click on the contact us link. you can view other portions of the show and find web exclusive content and videos with more information to help you grow your business. all the information and the advice to help you run your

small business is at yourbusiness.msnbc.com. we have heard from the experts. now survival tactics from business owners just like you. >> my advice to other entrepreneurs is to start slow and grow in a flowing manner. trash to make sure the product creates a need in the community and then try to build the best possible at a competitive price. >> my advice to small business owners under this economy is to be connected. what i mean by that is for it to reach out your network. you need to keep law enforcement in person. >> i would say the first thing you have to do is go after the competition. this is that opportunity for your business. >> just ahead, more good advice on helping "your business." it is easy to ignore reviews.

we'll show you why it is not smart. and how to conduct an effective one? surf's up who hopes to have a fitted line of bathing suits. during times like these it seems like the world will never be the same. but there is a light beginning to shine again. the spark began where it always begins. at a restaurant downtown. in a shop on main street. a factory around the corner. entrepreneurs like these are the most powerful force in the economy. they drive change and they'll relentless push their businesses to innovate and connect. ase look to the future, they'll be there ahead of us, lights on, showing us the way forward.

this is just the beginning of the reinvention of business. and while we're sure we don't know all the answers, we do know one thing for certain, we want to help. come see what the beginning looks like at openforum.com most women agree that most bathing suits don't look as good on them as on the hanger. for this one, we'll get out of the elevator and pitch this where it counts, the beach. >> hi, i'm talbin. i own brand aaron rose. in this recession economy where swim business is down

approximately 10%, aerin rose is up. this is due to our diversified sales strategy which includes ecom on erin rose.com as well as national catalogs, specially swim stores and most notesly on television at qvc. we are requesting a million dollars to fund the launch of aerin rose for ap parnl and lingerie. this will go toward the marketing pushes, merchandising and of course manufacturing costs that we'll entail in this endeavor. in return you'll receive 8% on your money at the end of which, three years, we will then give you 10% stock in the company as well as the million dollars back. hope you're interested. >> i had to bring my props because i'm completely over dressed for the beach as are you guys. that was so great. thank you for being the model for this. let's hear what you think about

it as a business. i'll start with you, jen. >> i like the fact that you gave me impressive metrics to begin with. it made me want to listen more. the description of your business, tell me what's really unique. as a woman, i've seen a thousand bathing suits. let us know at the beginning so we have a better way to put the rest of the wonderful things you've done into perspective. >> craig? >> i would want to know that you've done market research to know that there are barriers for entries. there's a lot of clothing companies and lingerie companies. and if there's not enough research to back it up, it's going to be pretty tough. >> i'll start with jen on this one. you listen to so many pitches, this is in your personal world. would you take another meeting? >> i would. i think there is still room for innovation. i look forward to doing it. >> craig? >> sure. >> sure if you bring jessica, absolutely. >> it sounds good. it sounds like you've got a lot

going for you. sounds like you've taken your business and made it into something big. by all means, when you have that solid foundation, it's a lot easier to build something new. >> congratulations and good luck with everything going forward. >> thank you for everything. we appreciate it. if any of you out there have a product or service and want feedback from our elevator pitch panel or today our beach panel on your chances of getting interested investors, our address is yourbusiness@msnbc.com. please include a short summary of what your company does, how much money you're trying to raise and what you intend to do with that money. somebody out there watching the show might be interested in helping you. if you use a lot of digital tools to run your company day today, our website of the week can help you aggregate all that work into one place. 50/50 business.com is a new site that does a variety of services

including video conferences, calenders, document sharing and areas for social network. pricing options vary depending on what types of services you're looking for. being a good manager means being able to inspire your team and help them on their career growth. one of the best ways to ensure that that's happening is through the employee review. i know some people dread it, and a lot of people even forget about it. but if done right, it can be a great way to keep your team focus. kim zoller is the president of image dynamicsment she is here today to tell us how to put together the perfect employee review. hi there, kim. >> hi, j.j. how are you? >> great to see you. i have to say as an employee, the first time i had a proper employee review which was the internship i had in between business school years, i couldn't believe it. it changed the whole dynamic of the company to know what was

expected of me and be able to give feedback. you say communicate expectations. does that mean the expectations of the review itself or the expectations in the review of what's expected of you? >> you know, i think both. the thing about showing the expectations or sharing the expectations of the actual review is it takes away that fear factor that people have on the actual review. telling them which is going to be discussed, what you expect from them, giving them some things to come to the meeting so that they're prepared, it will change the entire review process for you. >> and then you have to be prepared, too. so i know when my employees come to me, i have it all written out. i have this is what we talked about last year, this is what we've achieved, this is what we need to, would on for next year. >> exactly. it has to be prepared. it shows you're sbefrested in them, that they're important to you. being prepared for them, again, takes away the fear, but lets

them know where they stand. when you're doing the review, a large review, hopefully you've been doing many reviews along the way so people know when they step into that big review they know what's coming. >> i know you say link of their goals to your company's goals. i want to get to your next point which is start with the positive. you ease them in even if it's a problem employee? >> absolutely. tell them what they're doing right. it makes people add ease. it makes them feel good ability what they're doing. the other thing is, when you get to the negative or the things that they are not doing well, be prepared with solutions of what you see as solutions and ask them for their feedback so they can then share with you what they think they can do to improve the things that are, that may be a negative or things they can improve on. and then end with a positive. again, your goal is to make your employee the most effective overall and not just sitting in that room for an hour. >> and just one very quick last

question, should reviews be linked to raises, or should you separate them out? >> reviews, if you want reviews to matter, you link them to some sort of bonus or, as you say, a raise, some sort of bonus. it needs to be tied in to something. the goals need to be tied in to something because that is where you see movement improvement. >> kim zollor, thank you so much. the biggest take away from this is have them. so many people avoid having them, but they're very important. >> so important. thank you. >> thanks so much, kim. small businesses have different tech needs than larger companies. but entrepreneurs can still learn valuable lessons from large i.t. departments. here are five of them courtesy of pcworld.com. >> number one, standardize your equipment, try to buy all your hardware, software and mobile devices from the same manufacturer. two, perform off-site data backup. online backup service providers

all offer plans for small businesses. three, install personal fire walls on your system and make sure they're running at all times. you can find inexpensive ones at abg, online armor. first, look into secure versatile private networks for employees who work from home. number five, have a test plan. before you implement any kind of tech upgrade, encourage tack savvy employees to give it a dry run and listen to their thoughts. to learn more about today's show click on our website yourbusiness.msnbc.com. you'll find all of today's segments plus web exclusive content with more information to help you grow your business. did i get called on? you beat me. >> you got called on but you wished you hadn't because you

were wrong. it's not b, it's c. nicely done. we're interested in hearing about what's going on with your small business. take part in our community discussions about today's topics. next week when pirates rip off your intellectual property, most entrepreneurs would call their lawyers to sue, but not this guy. >> if we could put up a sign and say pirates come here, we are your friends, i would do that. whereas everybody else in the industry is shunning them, we want them to come and work with us. >> next week, how to outsmart pirates and beat them at their own game. till then, i'm j.j. ramberg. remember, we make your business our business. i'm katrina markoff, owner of vosges haut chocolates. we combine chocolate with exotic roots, flowers

and spices to create tastes that tell cultural stories. but in today's economy, how do you run a business that's about indulgence, - yet maintain fiscal responsibility? - ( cash register bell dings ) selling prospective clients can require more than truffles with hungarian paprika to seal the deal. so to make every dollar we spend do the most for us, we use our american express open charge card. it's the card that understands what my business needs. we use membership rewards points to visit clients and vendors all over the world. and we rely on open's concierge service to get our clients into the top hotels and restaurants. which makes us look pretty sweet. when you're selling exotic chocolates, having a cd you can count on isn't a luxury. it's a necessity. announcer: today how you run your business is anything but typical. so use the card that isn't your typical credit card. the american express open charge card. to see what an open charge card can do for your business, visit open.com/yourbiz or call 888-550-open.

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