Revitalizing the economy. And American Express open is here to help. Thats why we are proud to present your business on msnbc. Hi there, everyone. Im j. J. Ramberg and welcome to your business. The ancient story about david and goliath doesnt feel very ancient if you talk to a Small Business owner. Whether its a Big Box Store for a fortune 500 supplier or a national chain, a lot of Small Business owners face the same kind of daunting fight when theyre in direct competition with one of those giants. This week we meet two very different Small Businesses who have faced corporate challengers and found that their small size was an asset. These look great. Weve got johns, weve got macs, goldens. Greg hall of fenville, michigan is very picky about which apples go into his hard cider. This morning, he and peter kleins, owner of nearby seasoning orchard, are testing. You can see how they clustered which is an unusual feature. And tasting. As a cidermaker, were looking for aroma, and flavor. Acid and tannin from the apple. As an independent brewer, greg is part of a small but rapidly growing beverage category, hard cider. Where his virtue cider label has been thriving. Three years ago, nobody even knew what it was. Now its all over tv, all over the supermarkets. We are going to be in our third year of triple digit growth. No surprise. All this rapid growth has not gone unnoticed by big players in the beer category. Gregs now getting stiff competition from big beer brands who recently acquired cider brands to market along with their other products. Sam adams with their angry orchard. Youve got millercoors with a couple grands. And then youve got anheuserbusch with a couple brands. Theyve got the stella and the johnny appleseed. These behemoths have vast production facilities, marketing budgets, and distribution channels. This puts all the smaller producers in a bind. How can an independent like greg compete against all that . What weve seen time and time again is that the larger brands that take on young, entrepreneurial brands, dont know how to run them properly. Thats veteran beverage strategist arthur hulego of independently owned viet to cocoa. It would be like asking the hulk to do needle point. Vita cocoa faced stiff competition when cocacola acquired their primary rival. We were noticed when we heard that cocacola had invested in zica. But we also remained focused on doing what we do well. Vita cocoa found its key advantage was its knowledge of the market place. We knew which retailers to hit up and which were going to sell product for us. We knew where our core customer was going to be. Looking for about 5 million to help in a sales and marketing campaign. Thats vita cocos founder in 2006 when he first appeared on our show to pitch his startup. Today, his company, and the category, have grown substantially. Would you take another meeting yes or know . Yeah, definitely take another meeting. Greg hall has a different strategy. Hes not competing with the big brewers for the mass market. Well never be able to compete with those guys on price, or efficiency, or marketing, or distribution execution. So we dont do it. Super great apple. Instead hes concentrating on the high end, or premium market. His strategy starts with feature placement at upscale restaurants like nearby salts of the earth and partnerships with Celebrity Chefs like portland oregons jason french. The acidity i think is right there. Its awesome. I think oyster shell. Greg has found that creating exclusive blends like this one, for influential chefs like jason, has a ripple effect. It gives him access to many other key entry points to the premium market. Places not interested in featuring siders from the big brewers. That opens doors. To the retail trade. Bars restaurants, even the liquor stores. They know him. They know his restaurant. And if its good enough for him. Its certainly going to be good enough for them. He also says he puts very little money into advertising. And instead relies on others to build the buzz around his product. He says receiving awards and reviews of hearing an influential media like this one have much more impact. When we get a magazine like saveur say virtues ciders unfold like fine wines, thats fantastic. We could never Say Something that good about ourselves that anyone would believe. But one of the best food magazines in the country says that, were golden. This kind of press not only reaches the consumers, but also registers with retailers and distributors. And we started getting calls from distributors all over the country saying hey, when are you coming to california, texas, washington, pennsylvania, because we want to add your cider. Arthur agrees that this approach is very effective for an independent startup brand seeking to make a name and build distribution. I have no doubt that if he was partnered with a larger bottler, even if he took an investment from one that they might ask to cut costs and quality. And that, at this stage in a young brand, i think is very dangerous. Astrategy, arthur the premium needs can be twoedged sword. On the one hand it gives the brand a big lead among premium cider. But at the same time, it limits the potential for growth. If his strategy is to be the best of a premium category, then it will be a smaller footprint for him. But if he wants to compete with mass brands, then he needs to figure out how to massify his brand. So far vita coco has survived by massifying his brand. Gregs says his brand survival depends on staying out of the mass market. What were doing now, they cant do. Theyll never do this. So we have a Sustainable Production advantage that theyll never be able to recreate. But theres one marketing point where they both agree. Things are going to change. The market changes. Adapt as quy as possible. Essentially what theyre saying is be nimble. Be aware. Be nimble. Be smart. Dont be afraid to change up your game to win. And i think thats a very powerful message for any entrepreneur to send to anybody who wants to start doing business. Cheers. Weve shown on this program many times how a Small Business brand can effectively compete against the major names. Lets get our board of directors in for a little bit. Adam rich is the cofounder and editor in chief of the thrill list media group. Hes responsible for overseeing the growth of editorial content for the mens Digital Media company. And dean marks is head of the marks group, a technology and Consulting Service for small and medium businesses and also a Small Business columnist for the new york times. Its not just media. Nope. We sell threads. Which is a big part of your business. Competing against the big guys. So you experience exactly what were talking about. Absolutely. And i think theres something that ricks very familiar from this segment and its this idea of doing something that they dont want to do or they dont have the appetite to do or they dont have the insight to do. I know that for our audience we understand the guys that we market to, better than anybody who isnt really dialled in to that demographic is able to. Just as hes able to really look and develop a superlative cider that he knows as a cider drinker, clearly, is really what the market is looking for. But tell me this, so jack threads must have a competitor, i dont know who it is but if your competitor was suddenly bought by a big brand you would for sure be concerned. Right. I think a big question is when theyre bought by that big brand what are the expectations that that money comes with . So is that big brand then going to be calling the shots . That would be the best possible news that we could see. Right. If our competitor were to get that kind of infusion of capital. Dont you agree anybody thats Walking Around sing that theyre not afraid of that happening theyre lying. Yes. Right. So i was thinking its interesting especially with the cider right so the big Beer Companies are going in to this, and it could be helpful in another way, too. Which is they are making it mass market. Theyre legitimizing the space. Theyre legit mazing theyre creating demand and now people are going to say oh, ive heard about cider but i dont want to drink that kind i want some premium cider. First of all cider in england is a very, very popular drink. And its only being discovered here in the u. S. Big companies kind of like tread the ground and they provide that education that a Small Company like that would never have the marketing dollars to do that. The big question is where do those guys want to be five years from now . Do they ultimately want to be bought out by the big company or partner with that company or do they really want to stay independent . If you want to stay independent with your business you can. You just have to make sure that you are providing that unique product, youre involved with your community. You are just doing that extra special type of service that a big company could never do. Well, and that youre doing something that only independence could allow you to. Right. And there is such a Large Population of people that really would refuse to buy from a big company, into the independent thing. Youve got to reach out to those people because those are the ones that are your best customers. I literally had a glass of that very cider last weekend at one of the pubs down here in the west village and they wouldnt have any of the mass competitors on tap. And presumably that is part of the reason why you were at that pub. Right. Its powerful stuff, schbt it . One glass literally a glass. So thanks, guys. As weve been telling you during this National WomensSmall Business month, increasing numbers of women are becoming entrepreneurs. And as nbcs Anne Thompson reports, many are doing so in the secondability of their life. Lindas career has gone to the dogs. By design. I wasnt ready to completely retire. But yet i needed the change. The general manager of the bloomingdales inva, she left to combine her 30 years in retail, with what she loves. Were going to let you jump. Thank you so much. She bought a pet store. That today employs six people and turns a profit. When people ask me about it, i do get all smiley, because its my store. And ill say its my store. Malik greenwood figured out her recipe for success 13 years ago. Then editor in chief of essence magazine she came home to the brooklyn bred and breakfast she ran on the side to realize she was jealous of her guests. Because what they were doing for themselves, i wasnt doing for me. And you cannot give, if you have an empty cup. Greenwood chose inn keeping. These hands are making breakfast. These hands may be making beds. These hands are writing bills. Today there are more than 9 million womenowned businesses, a number thats tripled in 30 years. It is a longer, more financially responsible life. And if youre not in charge of it, its going to be pretty rough. Whats the toughest thing about going out on your own . Getting over the fear of failure. It hasnt all been success. But today greenwood and her husband own four inns. Hows your tummy. And shes thinking about whats next. Every day when i make a decision, theres a little bit of something i learned in the past. All to secure her future. Anne thompson, nbc news, brooklyn. Addressing the needs of your customers through your products or services is just the first step. Promoting the overall brand and story of your business is important for bringing in repeat customers. So here now are five ways you can share your companys story online, courtesy of entrepreneur. Com. One, create an engaging about us page. Inform your website visitors about who you are and what you do. Try using a photo story to present the information. Two, manage an Interesting Company blog. Regularly update your audience on Upcoming Events and promotions. Also, posting often will keep your website relevant from the point of view of search engines. Three, produce a short video. Present howtos or tours of your facilities to give your customers an inside look at your company. Four, introduce your team. Make your company more personal by giving visitors a chance to see the faces behind your business. And five, let your customers speak for you. Consumers put a lot of trust in peer reviews. When we come back, gene and adam answer your questions including one about how to find a potential Business Partner. Our viewers will also tell us about their favorite Small Business online tools and apps, and this elevator pitcher realized College Students never change their sheets. Ew. And so he came up with a solution to that disgusting problem. If i can impart one lesson to a new business owner, it would be one thing ive learned is my philosophy is real simple American Express open forum is an online community, that helps our members connect and share ideas to make Smart Business decisions. If you mess up, fess up. Be your partners best partner. We built it for our members, but its open for everyone. Theres not one way to do something. No details too small. American express open forum. This is what membership is. This is what membership does. The advantage that place space retail still has over even the best Online Retail is that you have a personal contact with your customer. So the things that were trying to do in an online environment is replicate the experience we have with our customers in our retail environment. Whether its in a retail shop, or its on your website, youre trying to establish a relationship with your customers. Youre trying to get to know them as well as you can to get them to know you. Become connected with them. I have a friend who told me when he got to college the first day he made his bed and then those sheets never came off the bed until the day he left for the summer. Disgusting. So i always thought that was an exaggeration but our elevator pitcher says its more common than any of us would like to believe and hes come up with a product to deal with it. Maxwell cohen is the son of frequent your business panelist brian cohen, and hes here to see what our panelists think of his idea. Hey, guys, my name is maxwell the inventor and founder of a fresh sheet. A fresh sheet is the worlds first and only Patent Pending bed sheet with seven peel away disposal top layers. You make your bed once, and once it gets soiled you peel that layer off to instantly reveal a brandnew layer beneath. I started this company in college because i saw the firsthand consequences of students rarely changing their bed sheets. The fresh sheet is ideal for so many markets, from toddlers to elderly. From hospitals to hostiles. On scaleability the product is endless. The bedding market is projected to be a 15 billion next year. A fresh sheet is sold on afreshsheet. Com. Amazon and other College Dorm Room supply stores. I started this business with friends and family backing me and im looking for 1. 5 million in order to continue on r d, manufacturing and shipping, strategic hires and marketing. We believe we can disrupt the entire bedding industry and give our investors 30 times their original investment. So just peel off the ew and sleep on the new. All right, max. Nice job. Okay you guys. Here it is. Thank you. One to ten. How do you feel like he did with the pitch . So my friend was not exaggerating. Indeed, this happens, that people put their sheets on and then never take them off. Lets just say boys, girls, men, women, its a universal problem. With my son i want you to know we wait until his sheets get hard and stiff and break them off with a hammer and throw them all away. We peel them away. This really solves that problem. Okay. Theyre waterproof, too . 100 waterproofs. 100 recyclable. Gene, clearly you think theres a market. Theres no doubt a market. First of all, i think he did a great job. You know, on the plus side, the idea that you have i think is a fantastic idea. And saying what the market is. Thats really good. I like to hear more numbers. If youre going to come to an investor and say im looking for 1. 5 million thats a lot of money. I need to hear actual facts for you. Youre selling on amazon. What have you been selling . What are your profits been . And if im going to invest in your business what exactly am i getting 30 of the company, 20 of the company . Come on give us the number. Give you a 7. Okay. Very good. All right, adam. Look i actually have pretty much the exact same feedback. You know, 1. 5 million is a big nut and if youre going to ask for that much its incumbent on you to really get into where thats going, what that means in terms of your cost basis. How long is that going to float you. This was a good pitch but i would have expected a much smaller number given the amount of nittygritty that we got into. Perfect. If i could just say really quickly. We get the idea right away, so you can spend more time on the numbers. Im scared that everybody gets the idea right away. I know. Wait until you see. All right. Good luck with everything. Thanks so much. Thanks for coming on the program. Thank you for evaluating this pitch. And if any of you out there have a product or a service and you want feedback from our elevator pitch panel on your chances of getting interested investors, just send us an email. The address is yourbusiness msnbc. Com. In that email please include a short summary of what your company does, how much money youre trying to raise and what you intend to do with that money. You never know, somebody out there watching the show may be interested in helping you. Its time now to answer some of your business questions, adam and gene are back with us. The first one is about having a Business Partner. Ive been in business for a little over four years now and im considering taking on a partner. Id like to know if you have any suggestions for me as to what to look for in a potential partner. I think thats a good question. How do you know that you have identified the right thing. What kind of company should i start. As varied as the industry youre in or your own skill set. Why are you person in . Never seen like a match. Com for partners finding that Business Partn