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tv   Your Business  MSNBC  December 4, 2011 7:30am-8:00am EST

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she wanted her clothes to be made in the usa but had to find the right factory to manufacture them. we'll have that, plus how to get your business brand booming. that's all coming up next on "your business." >> small businesses are revitalizing the economy, and american express open is here to help. that's why we are proud to present "your business" on msnbc. 66 hi there, everyone. i'm j.j. ramberg.
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and welcome to "your business" where we give you tips and advice to help your business grow. the holiday shopping season is well under way and it looks like small businesses have already gotten a boost this year. business owners are calling small business saturday a success. after millions of shoppers descended on local retailers around the country. this was the second year for the nationwide initiative that falls between black friday and cyber hon day. president obama even showed his support by shopping at a washington, d.c. bookstore with his daughters. the white house, and the sba's karen mills have been encouraging shoppers to go local this year. we heard from some of you on our facebook page. here's what you had to say about small business saturday. carolyn was excited to tell us that baltimore city council president bernard c. "jack" young introduced a city council resolution, encouraging residents to shop small, spend big, with our small businesses. heidi said, we're supporting it with our nonprofit store with 170 small, ohio vendors
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products. and anya was pretty excited about small business saturday saying it's really a big thing here in phoenix. i'm so happy to see my favorite local merchants today. with such a focus on buying local this holiday season, we wanted to introduce you to an entrepreneur who is now manufacturing locally. at first, this small business owner had her products made overseas. but now, she's brought her production stateside. the shift wasn't an easy one, especially when it came to finding a factory. >> i, being from north carolina, loved the idea of trying to do something local. so, we decided to come back home. >> it may have taken a few years, but rachel weeks can proudly say that her entire line of high-end collegiate apparel is now made in the usa. >> right now we have about a 12-piece line. which is very women's focused. we do everything from fitted t-shirts to tailored hoodies,
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yoga pants, a cute lounge set that's women's underwear and tank tops. a varsity cardigan which was one of the first real fashion items we introduced to the college market. >> but the founder and ceo of durham, north carolina based school house admits that fulfilling her mission to bring production stateside hasn't been easy. >> a lot of the factories that are here are not what they were 20 years ago. a lot of the technology that's here is in some ways behind the technology that i encountered in sri lanka. >> that's where school house used to manufacture all its clothing, at a living wage zbarment factory. in the end, the distance proved to be too much. and that's why weeks and her chief operations officer, susan williams, decided to find and partner with local factories. >> i was part of the generation that took it away from this country. and didn't know what that would do, really, to our economy. and here i am now, 20 years later, having an opportunity to bring it back. >> weeks, who counts schools
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like duke, yale, the university of nebraska, and the university of cincinnati among her 100 clients, says she's done plenty of legwork. finding a factory partner is extraordinarily difficult. it was a lot of getting in the car, and getting on the phone. we've been traveling across the state of north carolina, uncovering these cut and sew facilities, and meeting with fabric vendors, and finding cardboard box manufacturers who are still here. >> since so many north carolina textile factories shut down, the search was intense. >> reviving a industry that was booming 20 years ago, and it really took a nap. and so, with school house, we are taking them out of kind of the rip van winkle stage of the nap, and bringing them back to life. >> if there was a door to knock on, school house was there. >> at least 120 doors to narrow it down to five. it's been a real hunt. >> as a small business owner,
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weeks learned that face-to-face meetings were a must. >> one of the first things that we look for when we're talking not only to management, but to actual employees of factories are people with an open mind. and people with passion and drive. >> once factories saw school house's designs, weeks and williams get a sense pretty quickly as to whether or not a relationship will work. >> when you walk into a factory that has been doing the same box t-shirts for the past 20 years, and the management has, you know, no interest in doing anything else, you know that's not a fit for school house. >> our goods are full of craftsmanship. they're very detailed. they're not just a basic t-shirt. so you have to have a desire to do something different. >> meeting with factory owners and manufacturers was only the first step. williams is all about getting a feel for the place. >> i'm looking at equipment, i'm looking at speed. i'm looking at the detail work. the pride the team takes within their work. i talked to some of the operators to see what they like about working in that particular
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factory. >> those operators are key to the equation. their insight plays a crucial role in a final decision. >> you know, the old saying, the secretary knows it all. in an office building. it's true in a factory that the operator knows it all. >> in the course of any negotiations, school house makes it clear that they expect more than just production out of a factory. they want a partnership. >> the best kind of factory to come to is a factory that not only we bring things to, but they also bring ideas to the table. that's one of the reasons why mitt's nitts works very well for us. >> when we had our first meeting with tyler and cory there was an eagerness there. there was a willingness and fire to want to take on something new. >> they came to us and said we have a line of garments, we would like for you guys to look at producing any or all of those that you can. and more importantly, we want to provide you with a consistent line. we sewed up a couple prototypes
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and were able to come up with a ballpark cost that fell in line with what school house needed. >> bennett was glad to learn about school house's long-term commitment to this company. that's part of the reason why the factory updated its equipment and adapted its workload. it's a partnership that will continue to evolve as long as it's a good fit for both. >> eventually that will transition over to where we're going to do a full package for them. which i think is a perk for them. they want us to be able to handle the manufacturing entirely. >> the manufacturer is our production arm. and we're their sales and marketing arm. and so i think that the relationships that we have started to develop that are like that, like the one that we have with mitt's nitts are going to be the relationships that truly take our business to school. >> as school house grows, inevitably, weeks and williams will have to find additional factories. >> to ultimately have a few factori factories in kind of your bag of tricks. you want to even out their
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production and meet the need of your production. >> not every factory visit results in a partnership but weeks is committed to products made in the usa. she wants local manufacturers to know that they'll be knocking, and that they should be ready and willing to listen. >> we're looking for creativity, and partnership and flex iblgtd. and that's all it takes. this sort of new generation of leadership that sees what we're trying to do, wants to be a part of it, and is willing to make changes and dust off old machinery, and make it happen. >> actually met rachel earlier this year when she won an award from the score foundation and she's truly an amazing woman, and such an interesting company. let's turn to this week's board of directors to talk more about the issue of manufacturing here at home. and finding a factory. melinda emerson is the host of the weekly web cast called small biz chat. and she's also author of the book "become your own boss in 12 months." and nina kauffman is an attorney and the founder of ask the
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business lawyer dotcom. great to see both of you. >> thank you. >> the thing that stuck out to me the most in that piece is when they said we go to the factories and we talk to people who work there. and i saw you shook your head when you heard that also. what struck you about that? >> what struck me about that is really getting that sense of what's going on on the ground. that, the employees are really have their fingers on the pulse of how the company is doing, whether they truly know it or not. if you have a happy workforce, you're going to have a productive workforce. and that's what prevents problems from arising, and interruptions -- >> they're not going to tell you, necessarily when they're selling to you. i also think this company prides themselves on putting love into their garments. they don't want any sold sweat shop making t-shirts for them. this company has said hey, we're going to revitalize the american economy with just our business and hopefully we start a trend. so, these guys really took the time to find out if they, you know, their vision met with the vision of the owners of their
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manufacturer. and i think it sounds like they're going to be a magnificent partnership. >> that's the other thing, when she said, they're our production arm and we are the sales arm. so she thinks of them as one company. >> well, she has to. she has to. because without them she's got nothing in her bin to sell. so it is a full partnership. they are an extension of her company. >> that's why i was really impressed with that level of due diligence she did. usually people will say can you meet my order? what's the return rate? and things like that. but going to that depth to really see how can our companies work well together, shows another level of interest. >> and the commitment to them. >> yes. absolutely. >> so that manufacturing place had to update their -- all of their equipment, and build up their workfoerps somewhat, and you know, it would take commitment from school house to get that to happen. >> oh, absolutely. but i also think it has to do with the long-term thinking of the owner of that business. hey, if you haven't updated the technology and materials and machinery being used in our factory, if you want to compete
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for their business and other business, you've got to have the latest and greatest out there so that you can, for instance, lower your costs by being able to produce even faster with the best equipment. >> i do think for all businesses, not just manufacturing, but in general there is a lesson there about thinking of your suppliers and your vendors as your partners, not your enemies. not somebody who you have a bad relationship with. not someone you keep secrets from. >> right. also the fact that both of them had a very strong made in the usa, how important it was to support local communities, support local people, that that is also part of their value system, that they both bring. and that's important as well. >> yeah, absolutely. all right, well great, thanks so much. santa's not the only one gearing up to his get merchandise out in time for the holidays. here now are five ways you can save money on your small business shipping, courtesy of entrepreneur magazine. number five, talk to your shipping service provider. work with the small business specialist to match carrier's
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fees and services with your business's needs. four, establish transportation cost policies. let customers know when they will pay for shipping and when your business will. for example, you may offer ground shipping for free, but charge more for expedited service. three, use a postage meter. this can eliminate the need to guess the weight of your package and buy additional postage just to be safe. two, know when to consolidate. consider working with a freight consolidation service, instead of a standard shipping service, with shipments weighing more than 150 pounds. and number one, track carrier performance. poll your customers who are receiving your shipments about their experience. that way, you'll know what's working and what needs to be changed. getting your demographic interested in your brand is key to any business, and, according to our guests, creating a brand strategy doesn't have to be a difficult task. 33 she has some simple exercises you can do when you're both cash strapped and time strapped, but
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want to build buzz, attract fans and grow your business. maria is ross it the founder of red slice, a consultancy that offers brand and messaging strategies and author of the book "branding basics for small business: how to create an irresistible brand on any budget." great to see you, maria. >> thanks for having me, j.j. >> i want to just dive right into the exercises that you have. the first thing you say is create a character profile. write a character profile. do you mean of your customers? >> yeah, absolutely. a lot of small business owners tend to think that everyone is their market. and that's simply just not the case. for example, we all buy shirts, but we buy them from different places. so, i recommend that small business owners not go after more than three particular market segments, because they just don't have the budget or time to do more effectively. >> and basically then write who that person is, like it's the fraternity kid who wears his cap backwards and drinks beer in the middle of the night, like that? >> exactly, exactly. for each segment you want to create a person, who is jane? where does she live?
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what does she do for work? what is her family life like? what groups does she belong to? you want to pretend it's like a screenplay and you're writing a character. >> so you've got your character and then you talk about listen list being the emotions around your brand. do you ask others? >> your brand has to evoke something emotional and psychological. what are the attributes you want to communicate and that you can authentically deliver. do you want to be playful and whimsical? do you want to be stable and conservative? what is the image that you want to portray that will attract that ideal customer. >> okay. you have the customer, you have the emotions, then you list the benefits. this is probably the easiest part of these exercises. >> it's probably the hardest. a lot of small business owners talk about themselves and what they do and what they sell. but you have to think about it from a customer point of view. what do they get from using your products or services? try to come up with three, and then make sure you beat that drum across all of your marketing communications. your website. your he will vater pitch.
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this way people will remember you, instead of a laundry list of benefits that they can't possibly recall. >> okay. so you have all the things. you know your customer. you know the emotion. and you know how you're helping that customer. how what do you do with all that information? >> well, now this is where it gets juicy. so you pull it all together and now that you know who you're talking to, what you want to say, and how you want to say it, you can use it to inform which marketing activities you invest in, and more importantly, which ones you should avoid, because your ideal customer won't be there. you can use the personality to define your design look and feel. your visuals. your website. your logo. your colors. so that you can attract the ideal customer. and then finally, with your benefits, that's what you want to embed into all of your communications, over and over again. your home page. your about page. your elevator pitch. your ads. because the more that you can continue to hone in on those benefits for people, the more irresistible and memorable your brand will be. >> you know, maria, i think this is so important and great, because what it gives you is
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sort of a touchstone to go back to. because you might come up with a great marketing idea, and then you have to go back to your character profile and say, okay, but really, is it a good marketing idea for us? really, is this funny like we want -- like we want it to be. or -- >> exactly. >> so it's a great idea. because i think a lot of small businesses lose sight of what they're trying to be. >> yeah, they tend to do what i call random acts of marketing. and having your brand strategy in place will help keep you honest and true to your decision so you can make smarter investments. >> maria ross, thank you so much for coming on the program. >> thanks for having me. >> still to come, you can make the effort to manufacture your product here. but how do you convince customers to buy american? and tired of tripping over the kids' toys? today's elevator pitcher has just the pick meup. shazi: seven years ago, i had this idea.
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to make baby food the way moms would. happybaby strives to make the best organic baby food. in a business like ours, personal connections are so important. we use our american express open gold card to further those connections. last year we took dozens of trips using membership rewards points to meet with farmers that grow our sweet potatoes and merchants that sell our product. vo: get the card built for business spending. call 1-800-now-open to find out how the gold card can serve your business. >> as the mother of three kids i know all too well how tiring it can be to pick up after them. fortunately, today's elevator pitcher has come to the rescue to help beleaguered parents everywhere from tripping over toys. >> hi, we're adam and amy
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fazackerley the creators of lay-n-go. we have three great kids who love lego but we needed a better cleanup and storage solution than what we could find on the market. >> all right, boys, it's time to clean up. >> lay-n-go is washable, and it allows kids to play for hours but clean up in seconds. mom simply tightens up the cord lock and safely stows the cord in the front pocket. we also put a seat belt strap on the back so that you could hang it up or you could put it on your shoulder for hands-free carrying. the best part about lay-n-go is that it passes the shake test. turn it over, you don't lose a piece. we're currently selling lay-n-go at lay-n-go.com, at online retailers, and also at trade shows. we're looking to raise $500,000 and pay competitive rates on the investment. we are patent pending, and we also sell a lite version called lion go lite. it's great for life on the go. if you have any other questions, let us know or check out lay be go.com. >> oh, my god, so i can't comment on the business, prut the product itself, i just need one right now. i have legos all over my house.
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so, okay but this is not about me. it's about you guys. me and my messy house. okay, so what did you guys think of the pitch? melinda? >> i have to say, that's probably one of the best business pitches i've ever seen. i mean, complete with the models, and you know, demonstration. even though these are your own kids. >> you guys did a fantastic job. >> great job. the only other thing i would have added was what percentage you guys maybe were willing to give away in exchange. because $500,000 investment is significant. so i would have wanted to hear a little bit more about, you know, competitive rates. okay, what is that to you? because i think -- >> we're open for discussion based on the investor. >> okay. >> all right. >> great. i also like the interactivity part of it. what i would have liked to have heard a little more about, i appreciate the need for you, but what does the rest of the market feel? have you done any kind of market testing and what kind of market reach is there really for a product like this? so i would have liked to have heard a little bit more about that as well as your revenues and distribution plans. >> i was thinking this is the kind of pitch that you want to go to an investor who has kids.
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i would think. >> yeah. who has kids. they will get it instantly. >> i have legos all over my house, too. i get it. >> would you take another meeting? >> absolutely. i wanted to know more about how much you have sold to date, but this product definitely has legs. >> i think you brought a personal style to it and would bring another meeting. >> thank you so much for your modeling, and good luck with everything. we appreciate you coming on the show and thank you for awful your insights. if any of you have a product or service and want feedback from our elevator pitch panel on your chances of getting interested investors, all you have to do is send us an e-mail. the address is yourbusiness@msnbc.com. tell us how much money you
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intend to raise what you intend to do with it and you never know, somebody might be interested in helping you. time again for your business questions. the first one comes from logan. our customers tend to look at the cheaper price tag and buy a pair of jeans made overseas. how do we, a company that makes product in the u.s., gets customers to see the tag that reads "made in the usa" before buying or looking at price? >> he needs to have an amazing "made in the usa" display in front of his jeans. he needs to have made in the usa all over that stuff. maybe come up with a t-shirt line that hangs right above the jeans. i mean, i would make it the focal point the entire advertising campaign for his
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jean line, and he won't have problems. if everybody in the country can find made in the usa, they will buy that first. >> well, he has to partner with companies who are already made in the usa space. he knows that he actually is playing in the traffic where those kinds of people are coming. >> that's a great idea. let's move to the next one. this is from jacqueline. what is the best way to wisely add to your board of directors? the key point being wisely add. >> you have a board of directors which usually are some of the management involved in the day-to-day decisions. and you also have a board of advisers. you reach out to experts in the field to give you the kind of 360 feedback that you need to move your company forward. so wise ways to do this are to look at the people who have expertise that you don't.
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the last thing you want is a rubber stamp. and you want to be clear about what kind of commitment you want from them and what they can expect from you in return. >> and to be clear from that up front, i want the kind of person that i can call at 3:00 in the morning, or the type of person that comes to a meeting twice a year. >> look for what you need. they need to have advisers for businesses. number one, they should be already in business, and the second idea is somebody who has done business with you, and third one is a mentor, make it official and add them to your board of directors. the fourth person should be a lawyer and should be somebody who is a cpa or accountant. you need people who you can bounce questions of, and you can
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get advise without getting a bill. >> couldn't your board of directors think of putting together a dinner party, you want people who think it's a good idea to be around the other people there so they are getting something out of it as well. >> absolutely. bob asked i provide locations, prices, and availability for advertising. often time a business will get pry proposal and then go straight to the vendor for a reduced cost and i am left out of the sale. this is a tough issue. >> first of all, my question is how much information is he putting on the proposal? how much detail? do you need to disclose the vendors you will work with because that's a competitive part of your advantage. if you are giving a lot of business to the same vendors, perhaps go to them and say, look, if people are coming to you, and i will give a list of names that i have given your name to, i want a piece of
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action so you have both parties accountable. >> sounds like he is an unpaid sales force for people that sale the actual outdoor advertising or whatever it is. he needs to go and see if he can get a piece of the action, he has a glorified hobby, actually. >> let's move on to the last one. this is a question from kyle. if a job requires training from a group outside of the company does the employer have to pay for it? >> absolutely. what is he thinking? i want you to work for me and have these skills but you have to go and pay for it. no, it doesn't work like that. if you want people to have specific skills, invest in them. that will make them more loyal. you have to spend money to make money. >> and for the prospective
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employees, don't come to a job expecting to be trained. if you are brought in as a book keeper, you need to come in with the skills. >> so be careful who you hire, unless you happen to love this person for some reason and you are willing to invest -- >> you don't want to go there. >> i have issues with that, too. >> thank you so much for all of this advice. appreciate it. if any of you out there have a question for our experts, all you have to do is go to the website. the address is op openforum.com/yourbusiness. or if you would rather, you can e-mail us your questions and comments at yourbusiness@msnbc.com. ma lynna and deana had some really helpful advice about how to improve your business. now let's get great ideas from
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small business owners like you. >> mainly it's based in our ability to never say no. you never think no, and you never act no, and you never talk no to a client. >> too often times we try to grow too fast without servicing the market that started our business, and it's the key nugget we can grow from, and we can focus on wowing that niche market, you will see your business grow to other referrals. >> a lot of people find themselves with mixed goals. they want to grow their business and go to the next level and they have dreams and they are passionate about it, but they want it to grow, and your work ethic is the one main thing that will take you to becoming a successful intrapreneur. if you don't understand have one, you should look to create a cyber security plan for your
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small business. check out our website of the week for help. the federal communications commission has launched a small business cyber security planner that you can find at fcc.gov/cyborplanner. there are ways to shield your e-mails and your mobile phone from danger. to learn more about today's show, just click on our website. it's openforum.com/yourbusiness. you will find all of today's segment and then more information to help your business grow. don't forget to become a fan of the show on facebook. we love getting your feed book. follow us on twitter. next week, having trouble finding money for your company? >> my original goal was to raise $3,000, and we ended up raising $163,000.
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>> 5,264 people ended up pledging for the product. >> see how two intrapreneurs got a kick start for their businesses. sam: i'm sam chernin. owner of sammy's fish box. i opened the first sammy's back in 1966. my employees are like family. and, i want people that work for me to feel that they're sharing in my success. we purchase as much as we can on the american express open gold card. so we can accumulate as many points as possible. i pass on these points to my employees to go on trips with their families. when my emoyees are happy, my customers are happy. vo: earn points for the things you're already buying. call 1-800-now-open to find out how the gold card can serve your business.

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