MAY 1-7, 2023 SPRINGFIELD BUSINESS JOURNAL · 1 MAY 1-7, 2023 · VOL. 43, NO. 41 YOUR BUSINESS AUTHORITY SINCE 1980 $2.50 · SBJ.NET CEO ROUNDTABLE Small-business owners discuss the wins and challenges in their first months in business. PAGE 12 State budget debate places DEI under microscope by Karen Craigo · kcraigo@sbj.net A budget bill approved by the Missouri House of Representatives on March 30 contained language that would have banned state agencies and education institutions from spending state funds on diversity, equity and inclusion initiatives or contracting with companies that have such initiatives. Around 4 a.m. April 26, the Missouri Senate passed its own version of a nearly $50 billion budget bill that did not include the anti-DEI language. Before and during the debate, Sen. Lincoln Hough, R-Springfield, the Senate Appropriations Committee chair, had opposed the amendment because it jeopardized federal funding and the state’s ability to do business with contractors and vendors who have DEI programming in place, according to reporting by the Missouri Independent. “The language they have attached to those budget bills is problematic for a number of reasons. I don’t know if there is a middle ground that can be found there or not,” Hough said to the Independent. The divergent House and Senate bills now move to reconciliation. May 5 is the deadline to pass the budget for the fiscal year beginning July 1. The House amendment Rep. Doug Richey, R-Excelsior Springs, offered the original amendment disallowing state budget funds to be spent on vendors, consultants or programs with any DEI initiative. In a speech on the House floor, he said the amendment was intended to prevent preferential treatment in state agencies and root out attempts to implement concepts of critical race theory in government programs. It stated, “No funds shall be expended for staffing, vendors, See DIVERSITY on page 26 Retailers find customers unpredictable by Karen Craigo · kcraigo@sbj.net “I’m trying to figure out people.” That’s Gypsy Girl owner Michelle Stracke’s take on consumer behavior in the current inflationary and possible pre-recession period. She put the emphasis on the word “people,” and it was clear that after a few years in business, consumer behavior is still a mystery to her. Gypsy Girl, a Commercial Street retail establishment, opened before the pandemic as an antique store, Gypsy Girl Junk. Stracke dropped the “Junk” and changed her focus from antiques to other offerings, like a sugar-based hair removal product and self-tanner using beet extract – her most popular product. The store also offers painting sessions using a paint-by-ink technique devised by Stracke’s collaborator, Kim Hardin, and Stracke noted these are starting to gain notice. “I think after the pandemic, people are starting to get out and enjoy life,” she said. “They want to have memories; they don’t want to spend money on things.” Stracke wishes it were easier to figure out what customers wanted, as there is unevenness in who stops by for what from one day to the next. She’s not alone in trying to do the See RETAILERS on page 32 FINDING HER FOCUS Michelle Stracke, owner of Gypsy Girl, has diversified from antiques to personal care and artmaking options at her Commercial Street store. HEATHER MOSLEY Marketer stresses importance of setting a business apart $49.9B Missouri Senate budget proposal
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MAY 1-7, 2023 SPRINGFIELD BUSINESS JOURNAL · 3 NEWS CONTENTS Meet the finalists for the Springfield chamber’s annual small-business award. page 9 Small Business Open for Business Cassidy Station adds a flower shop to its development in Christian County. page 4 Business Spotlight A beauty salon themed after the 1920s marks two years in business. page 6 Opinion Page Publisher Jennifer Jackson asks local decision-makers to participate in SBJ’s annual economic survey. page 21 Paint (and More) by Numbers by Karen Craigo · kcraigo@sbj.net In preparing for this year’s Artsfest on historic Walnut Street, set for May 6-7, organizers are outfitted with a little more knowledge than they had going into previous events. Last year’s festival had an estimated attendance of 22,000, boosted by nice weather, said Leslie Forrester, executive director of the Springfield Regional Arts Council Inc., which runs the event. Forrester said geofencing of arts festival visitors in 2022 revealed that 17% of visitors were out-of-towners, and of this group, 81% had an overnight stay. The average length of stay for Artsfest visitors was 2.3 days, according to data collected by the Springfield Convention & Visitors Bureau Inc. Eightynine artist vendors from throughout the country account for some, but not all, of these. It’s useful information, according to Forrester. “We don’t know if they were in town for Artsfest specifically – geofencing data doesn’t tell us that, and that’s an important detail – but we know they came and spent a lot of time here,” she said, referring to visitation to the city. It’s rich information for promoting the festival to more attendees, Forrester said, noting the technology tracked the location of mobile devices along Walnut Street during the two-day festival. “Gathering that data tells us what kind of draw the festival has,” she said. “It helps us understand where the market is, and where to target new audiences in the future.” She added that depending on weather, the festival is anticipated to draw 20,000-25,000 attendees, a figure that is on the rise from prepandemic attendance that averaged 15,000-18,000 annually. “We are seeing an uptick in attendance, especially in the spring for an outdoor event,” Forrester said. “We have been more intentional about targeting visitors from the region, in Joplin and Branson-Hollister markets.” She added that a lot of the work is done through social media, aided by word-of-mouth and return visitors to the event that is in its 43rd year. “It has a reputation that keeps people coming back year after year,” she said, noting this year’s festival will have 108 artists, compared with 89 in 2022. By obtaining visitor data, the picture of festival visitors is becoming clearer. Forester said a new ticketing software being used by SRAC, Ticket Spice, also provides attendee data, including ZIP codes. What is geofencing? Megan Buchbinder, marketing director for the Springfield CVB, said her organization geofenced Walnut Street during the time of the festival. That means as people entered the seven-block perimeter with phones or other mobile devices, CVB software received a ping to record their attendance. Out-of-town visitors were generally classified as those with homes 50 or more miles away from Springfield. To be recorded as qualified visitors, the out-of-towners who pinged within the festival venue remained in the city longer than four hours but less than two weeks, and their device pinged at least five times while they were moving around, rather than, say, coming to Springfield and staying in a hospital for several days, provided by THE SPRINGFIELD REGIONAL ARTS COUNCIL INC. BIG DRAW Artsfest is expected to draw more than 20,000 people to Historic Walnut Street May 6-7. Here, 2019 crowds experience the sights and sounds of the event. See ARTSFEST on page 24 Leslie Forrester: Arts council is targeting regional visitors for the annual festival. Geofencing technology offers better idea of Artsfest visitor demographics 17% Visitors who attend Artsfest from 50-plus miles away 20K-25K Projected Artsfest attendance
MAY 1-7, 2023 4 · SBJ.NET NEWS By Mike Cullinan, Reporter New business, new location, new owner? Send your info to newbusiness@sbj.net Cassidy Flower Co. A former CrossFit instructor became a first-time business owner with the Jan. 21 launch of The Social Studio LLC in Republic. The venture, dubbed by owner Becky DeMaria as a family-friendly selfie studio, is at 141 W. State Highway 174 in the RepMO Corner shopping center. DeMaria said startup costs were $8,000, but she declined to disclose the rate of the one-year lease she signed with RepMO Corner LLC. DeMaria is the lone employee at the 700-square-foot studio, which offers 11 photography setups that change with the season and holidays. Currently open by appointment, The Social Studio offers ring lights, tripods and selfie sticks for visitors to take photos with their own cameras or smartphones. A standard ticket is $18.50 per person for a 30-minute session. Photographers can also rent the space for photo shoots, and the facility is available for private rentals with prices ranging $110-$225. DeMaria said she worked at CrossFit Republic LLC before starting The Social Studio. Local firm Connell Insurance Inc. entered a merger with Fort Worth, Texas-based Higginbotham Insurance Agency Inc., effective Oct. 31. Financial terms were undisclosed. Tom Jensen, a partner with Connell Insurance, said the firm will be branded as Higginbotham Insurance and Financial Services. Jensen, Casey Chastain, Jay Hickman and Chase Marable, the local firm’s leaders, were named Higginbotham managing directors in the deal. Higginbotham officials say the company sought out a partner to begin business in the Show-Me State, noting it previously established offices in bordering states. Connell Insurance, which had 38 employees across two offices in Springfield and Branson at the time of the deal, has since grown to a staff of 43, Jensen said. A property and casualty insurance and employee benefits brokerage firm, Connell Insurance was established in 1970. A Christian County farm that began adding commercial elements last year opened Cassidy Flower Co. LLC on Feb. 10. The flower shop at 5176 N. Fremont Road in Nixa is on the city limits of Ozark, where the Cassidy Station development opened in December 2022 with a mercantile shop. Kyle and Hollie Estes are behind the Cassidy Station project, with the flower shop considered to be a Phase II initiative. The Esteses hired Lauren Lindsay, who has experience as a florist with Fleur Floral Studio LLC in Springfield, as Cassidy Flower Co.’s shop manager. Lindsay said she is one of two employees, and the store provides delivery within a 15-mile radius. Arrangements available for delivery begin at $40, premade options for instore purchase start at $10, and individual stems range $1-$10, she said, adding antique vases priced $5-$50 also are available. Cassidy Station also recently opened one of its event spaces with more expected to launch this summer, Lindsay said. ☎ 417-350-5835 CassidyStation.com/flower-shop The Social Studio Higginbotham Insurance Agency Inc. ☎ 417-319-6505 TheSocialStudio417.com ☎ 417-334-2000 Connell.com OPEN FOR BUSINESS Lauren Lindsay, Hollie Estes and Kyle Estes KATELYN EGGER Looking further into solar for your facility? APC Solar is your trusted partner throughout the entire process, from site evaluation and feasibility studies to final engineering. No project is too complex or difficult for us to handle. apcsolar.com | 888-272-9875 Trusted by CPA firms and numerous local entrepreneurs.
MAY 1-7, 2023 SPRINGFIELD BUSINESS JOURNAL · 5 Send your company’s new hires, promotions, awards and achievements to newsmakers@sbj.net or click “Talk to SBJ” on our homepage. Please include job titles and relevant career and educational experiences. We’ll publish high-resolution color photos attached as space permits. LET US KNOW by Eric Olson · eolson@sbj.net Architecture Hood-Rich Inc. added Ryan Phillips as an associate principal and design lead. With a bachelor’s in architecture from Louisiana Tech University, he has 22 years of project experience nationwide. Banking & Finance Andrew Quinlan was promoted to a retail officer and banking center manager for Central Bank in Springfield after serving two years as a customer service representative. He also is a U.S. Army veteran. Arvest Bank was named to the 2023 World’s Best Banks list by Forbes for the fifth consecutive year. It ranked No. 20 among U.S. banks, the same spot as last year, marking the fourth year in a row in the Top 20. In collaboration with market research partner Statista, the list is based on consumer surveys centered on five criteria: trust, terms and conditions, customer services, digital services, and financial advice. Education Legacy Academy named Nate Hennessee as headmaster, effective May 15 and succeeding Tim Taylor, a founder of the classical Christian school in Branson who died in 2020. Hennessee previously worked as dean of academics for a charter school in Arizona and has served on Legacy’s Board of Education the past six months. The Foundation for Springfield Public Schools honored SPS staff at its annual banquet: Robin Davidson of Wanda Gray Elementary as Teacher of the Year; Alexis Cooper of Williams Elementary as Rookie of the Year; Phil Jones of Weller Elementary as Counselor of the Year; and Jill Norman of Cowden Elementary as Librarian of the Year. FSPS also recognized CoxHealth as Corporate Partner of the Year. The Ozark Board of Education hired assistant principals Ashley Penrod and Brandon Scott for the 2023-24 school year. Penrod, a third-grade teacher at North Elementary, will move to the Tiger Paw Early Childhood Center. She’s worked in the Ozark district since 2016 and started teaching in 2006 in Reeds Spring after earning her bachelor’s in elementary education from Missouri Valley College; she also holds a master’s in education administration from Southwest Baptist University. Scott, a physical education teacher in Branson since 2013, will work at the Ozark Middle School. He holds a bachelor’s in PE from Evangel University and a master’s in educational leadership from Northwest Missouri State University. Current Tiger Paw Assistant Principal Brianna Kelly is transitioning to the same position at East Elementary. Drury University’s physician assistant studies program set to launch this fall was granted accreditation-provisional status by the Accreditation Review Commission on Education for the Physician Assistant. Drury’s program, taught on campus and in collaboration with Cox North, offers a 27-month master’s in PA studies involving classroom and laboratory instruction, followed by clinical rotations. Health Care Cathy Graham, a certified nursing assistant at Citizens Memorial Hospital, received the monthly TULIP Award for thoughtful, unforgettable and lasting impact patient care. She has worked for CMH for 15 years – the past few years with the nursing support staff. Insurance Barker-Phillips-Jackson Inc. added Marc Runner as manager of the employee benefits division. With 20 years of insurance and medical industry experience, Runner previously worked with Humana, Arcadian Health Plan, CoxHealth Network and Anthem Blue Cross Blue Shield. Nonprofit The Arc of the Ozarks hired Dr. Kyle John to serve as medical director for its Neurodevelopmental and Autism Center slated to open later this year. He’s worked at Mercy for 15 years, most recently as the system’s clinical vice president of behavioral health. NEWSMAKERS Send announcements to newsmakers@sbj.net Norman Kelly Runner Graham Scott Penrod Phillips Quinlan Davidson Hennessee 417.447.4400 | CarnahanEvans.com The choice of a lawyer is an important decision and should not be based solely on advertisements. A Full Service Business and Estate Planning Law Firm • Corporate & General Business • Tax & Estate Planning • Real Estate • Labor & Employment • Banking • Litigation & Dispute Resolution • Employee Benefits • Construction • Cooperative & Utility • Marijuana & Hemp John From first-year apprentices to long time team leaders, our workforce is who we are. Together, we’re helping build stronger communities on a foundation of trust, integrity and teamwork. BUILDING ON EXPERIENCE. Neosho & Springfield Locations 417.451.5250 SEE FOR YOURSELF AT BRANCO.COM
MAY 1-7, 2023 6 · SBJ.NET NEWS BUSINESS SPOTLIGHT STEPPING BACK IN TIME by Presley Puig · intern@sbj.net Located on the second floor of the Holland building downtown, The Ritzy Flat LLC beauty and aesthetician salon features dark, neutral colors, antique decor and smooth jazz music emanating from a vintage record player. Owner Emily Rapp says a comfortable, homelike atmosphere is the goal for her salon, which was inspired by the 1920s. “The ’20s were full of women gaining empowerment from the right to vote to changing fashion standards totally,” Rapp says. “I really wanted to bring that romance and architecture.” The Ritzy Flat is a body care salon offering facials, waxing, lash lifts and massages. Rapp says most of her clientele book facials, specifically for acne and anti-aging treatments. With a majority female client base, she says she’s motivated by empowering them to look and feel their best. “I see a lot of clients that are wanting to see results from struggling with cystic acne or just wanting to learn how to take care of their skin,” says Rapp. “I struggled with cystic acne over a decade ago, going to multiple dermatologists and never finding a solution.” Rapp says her personal experience combined with schooling at Paul Mitchell the School Springfield makes her a well-rounded expert on acne care. “I want to be there for people who struggle with acne. It’s so difficult and it is the first thing people see and judge you on,” says Rapp. Because of weather and how the sun affects skin, Rapp says her busy season is September through April. “Using treatments like chemical peels and microneedles in summer can cause a risk of damaging the barrier of the skin due to the sun,” says Rapp. “People mess up and forget to put (sunscreen) on.” To avoid skin damage, Rapp says she waits until winter to start treating those clients. Treatments last one to three hours, and Rapp says she could book up to nine facials a day, with treatments ranging $10 to $180 depending on length and type. All appointments come with a beverage and a brief consultation with Rapp to establish the goals of the session. She says she creates a custom treatment plan for her clients, which is close to 200 regulars that are seen every four to six weeks. Rapp also customizes an aromatherapy blend of oils to be used during treatments, which are made by fellow downtown business Soap Refill Station LLC. “I think it’s more fun to expose clients to other smells besides lavender or eucalyptus,” says Rapp. Hailey Magnus works for the Downtown Springfield Association and says that’s where she first heard about The Ritzy Flat. Being a customer for a little over a year, Magnus says she tries to go every few months for a massage. “They are the relaxing breath I’ve needed,” says Magnus, giving high marks for “both the space and the experience.” Bailey Weaver has been coming to The Ritzy Flat since January and says the treatment called Augha’s Bliss was the first facial she had done. Rapp recommends it as a first treatment for new clients. “She’s incredible,” Weaver says of Rapp. “I went into the Flat in tears and depressed; I left with luxury everywhere from the aesthetic to the knowledge and trust I have in her.” Rapp says she has another year on her Holland building lease, but she does have plans on expanding, noting she wants to eventually add more types of services. The goal of creating a comfortable and relaxing space would remain. Lining a wall on the spa is a series of black-and-white photographs, and while some were found at flea markets, most are photographs of her family through the generations. Recently marking her second year in business, Rapp says she tries to change something each year. This year, The Ritzy Flat is offering a new facial treatment using a hydrodermabrasion machine, which Rapp describes as “getting a really deep exfoliation while being really gentle.” Declining to disclose revenue, Rapp says The Ritzy Flat is a product of passion. Working in the corporate world prior to starting the business, Rapp says that she wanted to do something that gave her fulfilment. “My favorite part of my job is watching people bloom and learn to love themselves in whatever stage they are in,” Rapp says. • HEATHER MOSLEY Owner Emily Rapp offers over 40 face and body packages at The Ritzy Flat salon. The Ritzy Flat LLC Owner: Emily Rapp Founded: 2021 Address: 205 Park Central East, Ste. 220 Phone: 417-413-3242 Web:TheRitzyFlatEsty.glossgenius.com Email: theritzyflatesty@gmail.com Services/Products: Facials, massage, lash lifts and full-body waxing Employees: 1 The Ritzy Flat salon takes inspiration from 1920s decor and empowerment
MAY 1-7, 2023 SPRINGFIELD BUSINESS JOURNAL · 7 NEWS Celebrate Small Business Week Top SW Missouri SBA 504 Lending Partners for 2023: Contact us: annette@rmiinc.org or call (417) 532-8760 1. The Bank of Missouri 2. Central Bank of the Ozarks 3. Mid-Missouri Bank Current 25-year fixed interest rate: 5.9% by Mike Cullinan · mcullinan@sbj.net A panel discussion about workforce challenges and strategies took center stage April 20 at a scaled-down version of an annual Missouri Job Center event. Panelists at the ninth annual Momentum State of the Workforce event covered topics such as workplace culture, talent attraction and options in the community to find more employees. However, a survey that traditionally has accompanied the program was paused this year due to budgetary constraints, according to Job Center officials. Last year’s survey noted 82% of respondents found difficulty hiring qualified employees over the past year. The workforce panel at this year’s event, which was hosted by the Efactory, spoke about hiring challenges amid today’s tight labor market. Recruit from within For Mark McNay, general manager and senior vice president at SMC Packaging Group, the company’s 540 employees, which includes 380 at its Springfield plant, are its best recruiters. He was joined on the panel by Lee Loveall with Creative Modular Construction LLC, Shelly Phillips of Cardinal Roofing Inc. and Katelyn Lenhart of CoxHealth. “We hope that our benefits, our culture and our code of citizenship help with those recruiting efforts,” McNay said, noting the company provides its employees with free SMC-branded apparel. “We want our name out there as much as we can.” SMC also emphasizes community involvement, he said, noting company leaders are engaged in volunteer roles with civic organizations and nonprofits. “We want to be out there to tell our story but more importantly we want to be out there to listen to the stories of others,” McNay said. Phillips said word-of-mouth is the biggest driver in employee attraction for the roofing company she co-owns. Job site signs and workers wearing Cardinal Roofing clothing draw interest from prospective employees. “A lot of our employees bring in friends,” she said, noting the company, which employs 37, also participates in Build U, a program offered by the Springfield Contractors Association, and Build My Future, a multigroup partnership that promotes the construction industry at an interactive career day. Social media also has been a catalyst for SMC, McNay said, as the company uses it to promote hiring events. “We’ve stepped away from the traditional ‘file an application and come in for an interview,’” he said. “These hiring events are very interactive and very team based. We’ll invite 15 to 20 people from our area. We’ll have them assemble packaging and find out quickly who the leaders are, who the quiet thinkers are that we’d like to be part of our organization.” McNay said it’s part of the need to find creative ways to boost the U.S. labor participation rate, which doesn’t move much from 62%, even amid the COVID-19 pandemic. The rate was 62.6% in March. According to U.S. Bureau of Labor Statistics data, the rate hasn’t reached above 63% since 2011. Not just a number At Creative Modular Construction, the workplace is like a family, said Loveall, the company’s CEO. “That’s something you can’t fake. People are smart and they know if they’re just a number. They know if they’re just an employee,” he said. “They understand if you really care about them, care about their family and care about their livelihood. It’s love. Love is what creates an environment of excellence in the workplace.” That’s not to say that work is easy at CMC, TALENT ATTRACTION At left, Mark McNay of SMC Packaging Group speaks on ways his company attracts talent, as panelists Shelly Phillips, Lee Loveall and Katelyn Lenhart listen. MIKE CULLINAN Momentum State of the Workforce panelists note local programs aid search for workers See EVENT on page 28 Companies share hiring challenges, solutions at Job Center event Securities and Advisory services offered through Woodbury Financial Services Inc., Member FINRA/SIPC. James Financial Partners LLC and Woodbury Financial Services Inc. are not affiliated. Experience the JFP Difference Our process is centered around YOU. We strive to go above and beyond with our client interactions; to be their concierge in all financial matters. www.JamesFinancialPartners.com • 417.829.2257 909 E Republic Rd Building F, Suite 200, Springfield, MO 65807
MAY 1-7, 2023 8 · SBJ.NET NEWS elfindaleretirement.com Now offering the full continuum of care. 417-501-1000 Independent Living 417-831-3828 417-831-2273 HEATHER MOSLEY Good fences make good neighbors by Karen Craigo · kcraigo@sbj.net The city of Springfield’s comprehensive plan, Forward SGF, sets forth a new idea of land use for the city with the concept of placetypes – 10 categorizations of areas that prioritize their sense of place over their use. Forward SGF acknowledges those transitional areas where one placetype abuts another. The plan establishes a need for a transition zone on either side of a placetype boundary to reduce friction brought by competing uses. Buffer yards – areas including vegetative and physical barriers that separate placetypes – are an essential element of a transition zone. Often described in detail in rezoning requests, these can be the difference between a successful or unsuccessful application from a developer. As Forward SGF explains, buffer yards are intended to offer a barrier between two areas with different intensities of use – as when a commercial area exists beside a residential area. Buffer yards matter because they cut down on the noise and mitigate the appearance of a zone that is at odds with a lower-intensity area. A recent example of the significance of buffer yards was seen in an application by Reding Management LLC and Redec LLC, which successfully applied for a change to a limited business district from residential to place a 7 Brew Coffee at the southeast corner of Sunshine Street and Jefferson Avenue. The developers achieved a zoning change, but its conditional use permit for a drive-thru, central to the 7 Brew business model, was harder won. The difference-maker for council was the addition of 14 trees – specifically, seven evergreens and seven understory trees – to the buffer between the activity of the proposed shop and the relative peace of the existing neighborhood. Craig Hosmer: Residents may not have information needed for complaint-based enforcement to work. Buffer yard enforcement requires resident vigilance, city officials say See BUFFER on page 30 The Chase campus at 303 E. Republic Road installed a nature trail to complement its buffer of mature trees.
SPRINGFIELD BUSINESS JOURNAL · 9 MAY 1-7, 2023 SMALL BUSINESS CONTINUED ON PAGE 10 SAFETY All pesticides used by Bug Zero are approved by the U.S. Environmental Protection Agency and the Missouri Department of Agriculture and are pet and human friendly. Most of its products are odorless and stainless. Officials say the company protects employees with safety equipment, including eye protection, respirators, hard hats and steel-toed boots. CONTRIBUTIONS In the community, Bug Zero supports Big Brothers Big Sisters of the Ozarks, Isabel’s House, Nova Center of the Ozarks and St. Jude Children’s Research Hospital. It also is a member of several organizations, such as the Home Builders Association of Greater Springfield, Leadership Springfield Inc., Rotary International and Sertoma Inc. Employees at Bug Zero receive ongoing training each month and are licensed in three states: Missouri, Arkansas and Kansas. Its technicians are required to complete a pest control technology course from Purdue University, with officials noting several employees have completed additional training at Purdue, such as its industrial integrated pest management course. 3 Launching pest control company Bug Zero out of his garage, founder Ivan Eftink has grown it from a soleemployee venture into a company that employs 35. In addition to its Springfield headquarters, the business expanded in 2009 to Cape Girardeau, where a second location is owned and operated by Chris Horrell, Eftink’s nephew. In 2022, 24-year company employee Michael Woodring became a co-owner in the Springfield operation. 35 Longevity of leadership has been a hallmark at Grooms, which has only changed ownership once in its 46 years. Olin Grooms started the company in 1977 and sold it in 2015 to husband and wife Jonathan and Audrey Garard. Before obtaining the company, Audrey Garard worked at the business for 10 years, advancing from a sales representative to her current role as chief operating officer. 46 Global supply chain delays led Grooms to experience its height of challenges last year, as officials said all its stateside manufacturers struggled to obtain raw materials. That, in turn, hit the industry hard in terms of prices for materials and labor. In the commercial construction and design realm, Grooms experienced a 200%-300% increase in all lead times of products from manufacturers. Pricing increases to the consumer averaged 20% over a span of six months last year, officials say. 200%-300% SERVICE In business for nearly a half-century, Grooms Office Environments is committed to walking alongside its clients, from fully designing their interior spaces to final installation of furniture and servicing it for decades. Regardless of the project, Grooms officials say they pride themselves on doing what is right by the customer – even when doing so isn’t the most beneficial to the company’s bottom line. INVOLVEMENT The company gives back on a corporate and management level. Grooms has sponsored the annual Warrior’s Journey Golf Tournament for the past three years and was leading sponsor in 2021 and 2022 of Rotaract Double Dare, which benefits Great Circle. It also is a corporate member of the Springfield Area Chamber of Commerce and Springfield Design Association. by Mike Cullinan · mcullinan@sbj.net The Springfield Area Chamber of Commerce is set to announce the winner for its 2023 W. Curtis Strube Small Business Award this month. Five finalists were selected in March for the annual honor after nominees submitted written applications that included essays on company history, management philosophy, responses to challenges and contributions to the community. An independent panel of judges scored the entries with finalists representing industries such as retail, health care and advertising. The chamber’s Small Business Award is scheduled to be handed out during a May 10 luncheon at the Oasis Hotel & Convention Center. The award began in 1992. The finalists, in alphabetical order, are Bug Zero Inc., Grooms Office Environments, Jordan Essentials, Kare Health & Wellness LLC and Revel Advertising. Read more about the companies starting below and continued on page 10. BUG ZERO INC. GROOMS OFFICE ENVIRONMENTS Executives: Ivan Eftink, founder and co-owner, Terri Eftink, co-owner, and Michael Woodring, co-owner Employees: 35 Products/services: Residential and commercial pest control Founded: 1990 Executives: Jonathan and Audrey Garard, co-owners Employees: 31 Products/services: Commercial furniture, design, space planning and installation Founded: 1977 provided by BUG ZERO INC. provided by GROOMS OFFICE ENVIRONMENTS KATELYN EGGER Annual award will be presented May 10 Chamber to honor small biz standouts
10 · SBJ.NET MAY 1-7, 2023 FOCUS SMALL BUSINESS The small, independent medical facility has undergone increased need to grow its space for treating patients since beginning operations in 1,000 square feet 12 years ago. Kare moved in 2014 to a 4,700-square-foot space and has since expanded its facility twice. It currently fills 17,000 square feet, expanding in 2020 to the second floor of its building at 1435 E. Bradford Parkway. THERAPY Kare officials say one of the clinic’s most innovative services is intravenous therapy, which delivers vitamins, minerals and amino acids directly into the bloodstream to correct intracellular nutrient deficiencies. Sutton, a nurse practitioner, has personally developed many of the infusion protocols in the clinic and develops each patient’s infusion treatment plan. CONTRIBUTIONS Bell-ringing for The Salvation Army is a holiday tradition for Kare employees, while the organization also has sponsored sports programs at the Ozark School District, including cross country and soccer. It also contributes backpacks and back-to-school supplies to children through area churches such as The Venues and James River Church. Kare’s staff size has come a long way since founder Keri Sutton decided to open her own primary care clinic in Springfield with just herself and a nurse, along with her husband answering phones. The clinic currently employs 29 full-time workers, an all-time high, and has experienced a 383% increase since 2016. 383% 17,000 The agency’s Revel with a Cause grant initiative, which is given to a designated nonprofit each year for free creative services, began in 2013. Past recipients include Ozarks Counseling Center, Diaper Bank of the Ozarks and Consumer Credit Counseling Services. The grant is part of approximately 1,000 hours the agency and its employees donate annually in time and marketing services to community organizations. Jordan Essentials donates 10% of its annual net revenue to community agencies, such as Convoy of Hope, CC Links, Abilities First and the Missouri State University Bear POWER program, which is geared toward students with intellectual and developmental disabilities. While Revel’s staff is able to generate ideas, the agency depends on well over 100 freelancers – including those working in areas such as production, photography and copywriting – to help bring its projects to life. Roughly 95% of its creative bullpen calls Springfield home. ORIGINS Jordan Essentials founder Nancy Bogart started her business, then called Country Bunny Bath and Body, in her kitchen 23 years ago, noting a desire to help busy women earn an income while fulfilling other priorities in their lives. By 2007, the name changed to Jordan Essentials, and today the direct sales company’s skincare products are sold in all 50 states, officials say. Keeping ingredients for its products American made also has been a priority for Bogart, who said the only imported raw material is Dead Sea salt from the Middle East. LEADERSHIP Jarratt Design, a former company owned by Chris Jarratt, served as the jumping-off point for Revel Advertising, which he and his wife launched 13 years ago. “I wanted to be able to offer my clients more services than just the creative,” he says. “With Nicole on board, we could deliver the one-two punch of excellent creative backed by strong account leadership.” ADVOCACY Some of the Jordan Essentials workforce are individuals with disabilities. It’s a personal connection for Bogart, who adopted a daughter who has a disability in 2002 and has since worked as an advocate by speaking locally and nationally, educating businesses about involving the underemployed class of citizens in their workplaces. BRAINSTORMING A collaborative spirit and culture of openness at Revel has led to quarterly brainstorming days, focused on exploring out-of-the-box ideas for its over 40 active clients, which include the Springfield Convention & Visitors Bureau, Whataburger and Myers Industries. After running across a pioneerera bath and body bar recipe in 2000, Bogart devised her own all-natural lotion bar and took inspiration from what her grandmother might have created in her kitchen. Officials say over 5 million of the lotion bars, which were featured over 20 years ago in American Way, the former in-flight magazine of American Airlines, have been produced. 5M 1,000 10% 95% JORDAN ESSENTIALS REVEL ADVERTISING KARE HEALTH & WELLNESS LLC Executives: Nancy Bogart, founder and CEO Employees: 35 Products/services: Skin care products, including bath and body, mineral makeup and essential oils Founded: 2000 Executives: Keri Sutton, founder and nurse practitioner Employees: 29 Products/services: Functional medicine and nutritional services, intravenous therapy, diagnostic testing, integrative women’s health and nonsurgical pain management Founded: 2011 Executive: Nicole Jarratt, CEO and coowner, and Chris Jarratt, chief creative officer and co-owner Employees: 9 Products/services: Advertising agency Founded: 2010 provided by JORDAN ESSENTIALS provided by KARE HEALTH & WELLNESS LLC provided by REVEL ADVERTISING
SPRINGFIELD BUSINESS JOURNAL · 11 MAY 1-7, 2023 FOCUS SMALL BUSINESS How did this opportunity with the Efactory come to you, and why did you want to leave your role at the Springfield Area Chamber of Commerce? I was at the chamber for almost 16 years and loved my time there. It gave me that appreciation for the business community and what that means for Springfield. When this opportunity came about, it was like, how can I use what I’ve learned here in different ways? The chamber partnered with Missouri State [University] and the Efactory over many years. I’ve seen the impact that the university and the Efactory have had on this community and it’s really inspiring. If I was ever going to leave the chamber, I still wanted that community connection and I still wanted that business community connection. The position you’re filling is newly crafted. What will be your primary role? The Efactory has undergone a lot of growth, and the team has actually grown quite a bit since January. Roles are changing, and I was one of the few staff that was added on. Really, they’ve been staffing up to meet what they’re doing and then to be able to go forward. I get to work with our tenants and clients in the building and our existing members and support them and their needs and the operational needs of the facility. Then also, the university has wanted to have increased focus on employer partnerships. We do a great job of connecting with the business community and connecting students with the business community, but how can we enhance that? People may know the Efactory for its business cohort and coworking spaces, but what are some of the other programs you offer? We have early-stage business boot camps. The Small Business Development Center is actually housed within the Efactory, so that’s business support training – everything from QuickBooks and how to better understand financials to management and leadership training. For our members, we provide coworking space, private office space, conference room space. We do one-on-one business consulting through the SBDC. If you are interested in getting business advice or helping work through a problem, we have a mentorship program that folks in the community have volunteered their time for just to meet with emerging and aspirational small-business owners and entrepreneurs. One of the other things that we can offer is that student connection piece. As of Jan. 1, student employment services is actually under the umbrella at the Efactory. They’ve done tremendous work over the years connecting students with jobs that are available on campus and positions that local employers have. How can we better enhance and create those pipelines between businesses that need talent and students that need meaningful work experience? Over the years, the Efactory has connected businesses to funding mechanisms like venture capitalists and private investors. What does that look like for businesses to get plugged into that? We’re about to roll out more information on the Innovate SOMO and what that looks like. The team here has worked over the last few years to secure a number of different funding sources to support that program through different grants and (American Rescue Plan Act) dollars and community revitalization grants. Your work at the chamber was around legislative advocacy. Are you following this legislative session and the potential impacts on the Efactory and businesses? Being with the chamber, you are a generalist because we have so many different bills and laws and legislation that impact so many different members. Coming into Missouri State and having more of that focus on education and workforce-related legislation has been interesting and a cool learning opportunity. [President] Clif [Smart] and his advocacy team and the leadership at Missouri State have done just an incredible job of working with lawmakers from around the state to advance the priorities of Missouri State and really forge those relationships in the Capitol. The things that are worked on and advanced for Missouri State in the state Capitol, they don’t just impact the university. Education funding, workforce development funding, capital investment here in Springfield on campus and beyond, that has a global impact. The line item might say Missouri State University, but it’s building the workforce of tomorrow and working to support the needs of our employers and training students on critical skills and hopefully connecting them with skills that are needed by employers here and connecting them to the community. Of course, we’re watching the budget. We’re encouraged that at this point, that 7% core appropriation increase is in there and appreciate the work that our local legislative delegation has done to support the university. I hope that one of the things that I can do, just from my time at the chamber, is bring that experience hearing the needs that the business community has around workforce and talent and bring that feedback when I can, as well as just the relationships that I was able to build over at the chamber with business leaders and our local delegation and state lawmakers. emily denniston Director of Community Engagement and Operations, Efactory A CONVERSATION WITH ... provided by EFACTORY Excerpts from an interview by Executive Editor Christine Temple, ctemple@sbj.net Your Business Could be Under Attack 417-831-1700 / PCnetinc.com Download our Ransomware Survival Guide
12 · SBJ.NET MAY 1-7, 2023 SMALL BUSINESS Sponsored By Christine Temple: : I want to start with your origin stories because you’re all new to the area, at least in this iteration that you’re in today. Where did you get the idea for your businesses? Amanda Smith: I’ve been reselling for a little over 15 years now. I had a son and I homeschooled him for a while and now he’s grown and I had time. We decided to take the next step and go brick and mortar. Temple: You were selling at flea markets, trade shows and online? Smith: Yes, I did lots of flea markets and online. I still do my online presence, but I’m really focused on this now. Cheryl Knox: I was in education for a long time. I started off in physical education, so play has always been very important to me. As a mom for 30 years, we obviously took our kids to places to play just for family recreation. Now that I have young grandchildren, we’ve been trying to do the same thing and there just wasn’t places on the north side. I took a year off from education and finished my degree and just kind of wanted to recharge. Then as I was home, our family talked about it and we just thought this would be a great time to have something on the north side for families to have a choice. Laura Deal: The Sweet Deal started because I have endometriosis, which is an autoimmune condition. Through doctors and finding out what helps with that condition, they really suggest going gluten free. That really cuts down on the inflammation and pain that you have. There’s a lot of people diagnosed with celiac or autoimmune conditions that the diet really does improve their quality of life significantly. I love baking and went to culinary school years ago and I started baking everything completely gluten free and selling at the Farmers Market of the Ozarks right here in Farmers Park. I did that for about a year and a half and saved up and I started the brick-and-mortar Sweet Deal in Nixa. I actually really didn’t expect how many people would actually need gluten free. Temple: With less than a year in business in your brick and mortars, what are the biggest surprises? Knox: One of my surprises was just the response that we’ve gotten. I wanted that, and I hoped for that, but it’s really been overwhelming in a positive way. Just like I said, people that are excited for our location, excited to have another choice. I didn’t expect how many people would just come right up and talk to you and say thanks for letting us have this. Deal: I have lots of conversations with people coming in and asking specific questions about ingredients. What’s in here, what’s in that. They have to have a very specific diet and a lot of times they’ll come in and we’ll spend 10, 15 minutes talking about things about certain products that they can get on their own as well as what I provide. Smith: I kind of feel like my business is a little different. I don’t necessarily fulfill a need, but it’s so much fun for people. I hear it all day long. There’s just a lot of passion behind a lot of people’s hobbies. Temple: What about on the operations side, because you’re all first-time business owners, right? What have been the surprises in running a brick-and-mortar business and opening at this time? Smith: I was surprised how fast my business took off. I also don’t have to deal with employees, I’m not to that stage yet. It’s just me and my husband and my son occasionally that run it. It kind of takes away from the stress of payroll and things like that. Deal: In my business, it’s the ebb and flow, so making enough product in order to keep in stock at the bakery and what do you do with the leftovers and things like that. Also, my employees. I have a teenage employee that can only come in after school, but she’s wonderful. I had another one as well, but she started a little business of her own. I am actually looking to hire another person a little bit more full time. That is a bit of a challenge as well and trying to find the right fit that has the same mindset as you. Knox: We’ve been really fortunate. I have four staff members plus myself. People are reaching out to me more on a regular basis wanting to know if we’re hiring. I think a lot of it is because three of my employees bring their young kids to work with them. A lot of the moms that come through see that and realize that’s a huge blessing. Excerpts by Editorial Intern Presley Puig, intern@sbj.net. Each month, we gather around the table with a different group of Springfield business leaders to discuss industry trends, workforce and company operations. Join us as we get a behind the scenes look into our business community from the C-suite. Now available as a podcast, the full discussion is at SBJ.net/CEORoundtable. Springfield Business Journal Executive Editor Christine Temple discusses small business ownership with Laura Deal, owner of gluten-free bakery The Sweet Deal LLC; Cheryl Knox, co-owner of children’s play space Nana’s Play Place LLC; and Amanda Smith, co-owner of pop culture marketplace Leveled Up Loot LLC. Cheryl Knox HEATHER MOSLEY I didn’t expect how many people would just come right up and talk to you and say thanks for letting us have this.” —Cheryl Knox, Nana’s Play Place FOCUS SMALL BUSINESS
SPRINGFIELD BUSINESS JOURNAL · 13 MAY 1-7, 2023 NEWS Christine Temple, Amanda Smith, Cheryl Knox and Laura Deal Laura Deal Amanda Smith In my business, it’s the ebb and flow, so making enough product in order to keep in stock at the bakery and what do you do with the leftovers.” —Laura Deal, The Sweet Deal SCAN ME! LISTEN TO THE FULL EPISODE: UP NEXT: Workforce Development SBJ.net/CEORoundtable or wherever you find podcasts FOCUS SMALL BUSINESS I don’t necessarily fulfill a need, but it’s so much fun for people. I hear it all day long.” —Amanda Smith, Leveled Up Loot Spencer Fane LLP | spencerfane.com 2144 East Republic Road, Suite B300 Springfield, MO 65804 © 2023 Spencer Fane LLP. The choice of a lawyer is an important decision and should not be based solely on advertisements. With a team of 30 attorneys and other business professionals in Springfield, Spencer Fane assists clients on a wide range of legal issues. Industries Banking and Financial Services Health Care Hospitality and Lodging Real Estate Construction Manufacturing Energy Education Media and Entertainment Legal Services Labor and Employment Litigation Business Transactions Lending/Borrowing Transactions Bankruptcy, Restructuring, and Creditors’ Rights Tax and Estate Planning Tax Credits Financing Regulatory
14 · SBJ.NET MAY 1-7, 2023 FOCUS SMALL BUSINESS With interest rates garnering so much attention nationwide, it’s easy to think that it’s not a good time to shop for new space or property for your small business. But that’s the nature of commerce – there’s opportunity in everything. Even now. It’s true that today’s environment makes it challenging to buy good, cash-flowing real estate. To curb inflation, the Federal Reserve has raised interest rates 475 basis points the past 12 months, and it’s possible it will increase another 25 basis points in May. But this doesn’t mean there aren’t great properties full of potential. It just means buyers will need to work more diligently and consider new perspectives they may not have given much thought before. High rates in the short term When it comes to financial planning for your small business, consider high interest rates a short-term cost. Through refinancing options or careful term planning, the interest rate you get now may not last for long. The more important consideration is that building and development costs are cheaper now than they were during the pandemic, and this is a permanent cost. Some small-business owners put off building their cash-flowing real estate in 2020 and 2021 due to the historically high building costs, but now that these costs are coming down, it may be time to move forward. Although short-term interest rates are very high, long-term interest rates are very reasonable right now. On the other hand, instead of trying to lock in long-term fixed rates, think about a loan with a shorter term and a quicker reset. This would allow buyers to take advantage more quickly when rates start to come down again. Consider the nontraditional Another option to mitigate the current interest rate environment, depending on the type of investment you are doing, is a little less popular but worth exploring. It’s called a swap agreement. A swap is where the borrower gets a fixed rate, and the bank gets a floating rate. These rates are currently 100-225 points under The Wall Street Journal prime rate. Put simply, it allows for a greater deal of stability, while traditional financing leans heavily on flexibility. Although current rates might be higher, borrowers might benefit in the long term if they can wait it out and pounce when the prime rate goes down again. There are restrictions and limitations on these types of loans, so thoroughly discussing them with your banker before making any permanent decisions is always advisable. If a swap doesn’t sound right, then consider something as simple as a higher down payment. Instead of the conventional 20% down payment, this might be the time to put 25%-35% down to help improve the property’s cash flow, which might create better terms from the bank, as well. All about teamwork Like any great team, it’s important to have trusted advisers on your side to help you make these tricky decisions. Your team should include a knowledgeable broker to help you find the best deals, a reliable and trustworthy commercial lender to help evaluate potential properties, an insurance agent that is at the ready, builders and developers with solid reputations, and a management company that is engaged and capable of meeting your occupancy and capacity needs. Today’s economic environment has made things more difficult than they’ve been in the past, but buyers and investors that are strategic and patient can still find solid projects with attractive financing deals to go with them. Nothing can beat a little persistence and ingenuity, not even interest rates. Scott Speight is a senior vice president and commercial lender for OMB Bank in Springfield. He can be reached at s.speight@oldmobank.com. INDUSTRY INSIGHT Scott Speight Seizing commercial real estate opportunities amid higher rates 475 Basis points increase by the Fed in the last 12 months When it comes to financial planning for your small business, consider high interest rates a short-term cost. Real Estate Talk
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