Building Bridges Newsletter
Supporting businesses by lending good money to good businesses!
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Greetings!
August is here -- we hope you have had a fun summer! September 22nd will mark the first day of Fall and the beginning of milder temperatures, the leaves changing color -- and football season begins! Around the corner in October is Halloween, with its pumpkins and calls of "Trick or Treat!" For some, it's a time of reflection as the year draws to a close. For others it's a joyous break from the summer heat. Every season has its upside; however, Fall has a particular beauty to it with its unique ability to turn the world into one big canvas with nature's paintbrush.
We hope you enjoy our newsletter and will share it with others!
Happy Fall!
Lisa Hultz
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Featured Entrepreneur: Joseph S. McVicker
Cleo McVicker worked as a salesman at Kutol Products Company, a soap manufacturer founded in 1912, in Cincinnati, Ohio. In the late 1920s, the company was in financial distress and tasked (then) 21-year-old Cleo with selling off the company's remaining assets (mainly powdered hand soap). Although he managed to turn a nice profit, the company barely stayed afloat. Cleo hired his brother, Noah, to help him in operations to turn the company around, and they purchased Kutol Products in 1927. One of several children, Joseph S. McVicker was born to Cleo and his wife, Irma, in 1929.
In a 1933 meeting with Kroger Company (the grocery store chain), Cleo was asked if they made wall cleaner to remove coal dust from wallpaper in homes. The brothers had never made this product before but Cleo was so sure they could, he agreed to provide Kroger with 15,000 cases of wall cleaner. If he failed to do so on time, Kutol would be required to pay Kroger $5,000 in fines, which would have bankrupted them! Noah succeeded in creating the product using a common household recipe and they made the Kroger deadline! Over the next 20 years, Kutol primarily manufactured soap and wall cleaner, and became the largest wallpaper cleaner manufacturer in the world.
Sadly, Cleo died in a plane crash in 1949. Around this time, soot-producing coal furnaces in homes were being replaced with electric, oil and natural gas heaters. Kutol was in a downward spiral because of less demand for their wall cleaner, as well as the fact that homes were replacing paper wallpaper with easily cleaned vinyl wallpaper. Irma hired her son Joe (now 25) to take Cleo's position in the company, together with her son-in-law, Bill Rhodengaugh, with hopes of coming up with a solution to reverse declining finances. Joe was diagnosed with a rare form of cancer at this same time, which placed added expenses and stress on him and Kutol Products operations.
Joe's sister-in-law, Kay Zufall, stepped into the picture in 1954. Kay ran a nursery school and needed cheap materials for her class to make Christmas decorations. She heard that wallpaper cleaner compound could be used for this project so she bought Kutol's wallpaper cleaner to test on the crafts. When Kay found it worked perfectly and her kids had fun with it, she called Joe and said they needed to make their now obsolete wallpaper cleaner into a toy. Acting on her suggestion, Joe removed the detergent from the white Kutol dough and added an almond scent and coloring. He re-named the compound "Kutol's Rainbow Modeling Compound," which Kay quickly suggested the name of "Play-Doh." With no money for major advertising Kutol initially sold Play-Doh in 1-gallon cans of red, blue and yellow to schools throughout Cincinnati. Initial attempts to sell smaller cans to retail stores were extremely slow.
In 1956, Joe and his uncle, Noah, formed Rainbow Crafts Company as a subsidiary of Kutol Products Company to make and sell Play-Doh. Also in 1956, a 3-pack of 7-ounce cans was added to the product line. In-store demos at Macy's and Marshall Field's opened retail accounts. In 1957, the compound's salt content was reduced to allow models to dry without losing their color. One morning in 1957, Joe managed to talk his way into a meeting with Bob Keeshan, better known as Captain Kangaroo, who agreed to use the product once a week on his show in exchange for 2% of sales. This move quickly rocketed Play-Doh to a national hit, and later appeared on Ding Dong School and Romper Room. Kutol quickly had about 116 months worth of orders to fill, even with the factory operating at maximum capacity! Though they still sold wallpaper cleaner for $.34 a can, they were able to get $1.50 per can for Play-Doh for the same quantity and same product (except for the color in Play-Doh and small amount of detergent in the cleaner). In 1958, Play-Doh's sales reached nearly $3 million! In 1964, Play-Doh was exported to Britain, France and Italy.
Although several people were involved in the creation of Play-Doh, a patent (#3,167,440) for the product was granted only to Joseph S. McVicker and Noah W. McVicker on January 26, 1965. Also in 1965, General Mills purchased Rainbow Crafts and all rights to Play-Doh for $3 million, placing the compound with its Kenner Products subsidiary. Joe and his former partner Bill Rhoedenbaugh split (with Bill upset over the "cheap" deal Joe had made). Bill was given full ownership of Kutol Products in exchange for his 49% share in Rainbow Crafts. In 1971, Rainbow Crafts and Kenner Products merged, and in 1987, the Tonka Corporation bought the two. In 1991, Hasbro became Play-Doh's owner, and continues to manufacture the product today through its Playskool division. More than two billion cans of Play-Doh were sold between 1955 and 2005, and in 2005, Play-Doh was sold in 75 countries around the world at 95 million cans a year. In the United States, more than 6,000 stores carry Play-Doh. Play-Doh was inducted into the National Toy Hall of Fame in 1998. In 2003, the Toy Industry Association placed Play-Doh on its "Century of Toys List," a roll call of the 100 most memorable and most creative toys of the 20th Century.
Joe McVicker ultimately squandered the $3 million he made in the sale of Rainbow Crafts and Play-Doh and died nearly broke in 1992. Bill Rhoedenbaugh managed to turn Kutol around and today it's one of the largest industrial and institutional hand soap manufacturers in the world (now run by his sons).
National Play-Doh Day is September 18th.
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Facebook As An Employment Tool
In the March 2013 issue of "Texas Business Report", Texas Association of Business addressed the topic of whether or not an employer should look at a prospective employee's Facebook page or other social media posts when making an employment decision. It also addressed the question of employers asking for, or demanding current employees' sign-in information. In both instances, TAB said employers would be entering into territory full of potential legal consequences and lawsuits, especially if an employment decision was made based on an individual's posted social media information.
Cathy DeWitt, TAB Vice President of Government Affairs, said there is legislation that has been filed that would make it illegal for a potential employer to even ask for password and sign-in information in the first place. Although someone's Facebook information may be public, that will not stop the possibility of lawsuits if some of that information is considered privileged by labor law. Of course, there are exceptions to this scenerio. "An employer is advised to seek legal counsel if they plan on trying to use any information obtained through social medial for hirig purposes or when accusing an employee of misconduct. It is never a good idea to demand sign-in information or demand that employees report the on-line social media activity of their fellow workers. With that said, I believe that if someone posts something on their page that is in violation of your company policy that someone will see it and voluntarily report it."
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Can Mazon help me finance my new business?
If you take a look at any list of the wealthy people, one overwhelming theme emerges: The majority own at least one business. Even those who inherited their riches can probably thank a business owner somewhere in their past. Rarely, if ever, can someone become super-wealthy by rising up through the corporate ranks. Even if you are currently a wage slave, you can start a business on the side with the goal of taking it full time once it earns enough to allow you to do so.
If you would like to find out more about our services for your new or growing business and/or apply for an account with Mazon Associates, please phone us at 972-554-6967 (toll-free 800-442-2740 or visit our website at www.Mazon.com.
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Five (More) Success Principles To Remember
In our Summer 2013 issue of Building Bridges, we listed Five Success Principles to Remember. Here is the remainder of that popular post by one of our favorite entrepreneurs, Evan Carmichael, from a recent Facebook post:
6) Failure is necessary. If what you did today didn't turn out as you hoped, tomorrow is a new opportunity to do it differently. Interpret each failure as a lesson on the road to success.
7) Positivity fuels productivity. Success comes from positive energy. You can choose to get caught up in the negativity surrounding you, or you can decide to do something positive about your situation.
8) You must believe you can. You must find the place inside yourself where anything is possible. It starts with a dream. A dream becomes a reality with comitment, action, determination and time.
9) Helping others is a big part of being successful. Successful people constantly come up with new ways of helping others. Your long-term success is directly tied to how well you serve your community.
10) Success is a journey of countless baby steps. It's a constant process of growth. If you want to be successful, you must continue to hold yourself to a higher standard than anyone else, and strive to improve.
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Product Recalls
The following recent recalls were issued by the U.S. Consumer Product Safety Commission. Recall numbers are included; more details can be found at www.cpsc.gov. To report a dangerous product or a product-related injury, call CPSC's hotline at 800-638-2772. (It is illegal to resell or attempt to resell a recalled consumer product.)
#13-238, Kenmore dehumidifiers (Imp: LG Electronics USA and Sears); #13-329, UCO Arka LED lanterns (Dist: REI, Kent WA); #13-225, Portfolio and Transglobe nine-light chandeliers (Bel Air Lighting, Valencia, CA); #13-226, Capri track lighting (Imp: Genlyte Thomas Group/Philips Consumer Luminaires, Elgin IL); #13-214, Cedar Lake Propane Heater/Cooker (Imp: Texsport, Houston TX); #13-209, Gerber Bear Grylis Parang Machete with stitched sheaths (Imp: Gerber Legendary Blades, Portland, OR); #13-160, Chest Freezers (Imp: Haler America Trading, New York, NY); #13-191, Portable Infrared Radiant Quartz Electric Space Heaters (Imp: Optimus Enterprise, Anaheim, CA); #13-189, Touch Point Portable Baseboard Convection Heaters (Imp: Meijer Distribution, Grand Rapids, MI); #13-186, Optimus Tower Quartz Portable Heaters (Imp: Family Dollar Services, Matthews, NC); #13-187, Toro Z Master Riding Mowers (Mfg: The Toro Co., Bloomington MN); #13-179, Chandeliers (Imp: Currey & company, Chico, CA); #13-165, Compact and Large Handgun Security Vaults (Imp: Battenfeld Technologies, Columbia, MO); #13-163, CE Tech 1,000 ft. Riser Cable (Imp: Home Depot USA, Atlanta, GA); #13-164, 100-pound Propane Cylinders (Mfg: Manchester Tank & Equipment, Elkhart, IN). |
Fall 2013 Holidays and Events
Aug. 4: Friendship Day; Aug. 19: National Aviation Day; Aug. 26: Women's Equality Day; Sept. 2: Labor Day; Sept. 12: Patriot Day; Sept. 17: Constitution Day and Week; Sept. 18: National Play-Doh Day; Sept. 21: International Day of Peace; Sept. 22: First Day of Autumn; Sept. 27: Native American Day; Oct. 8: National Children's Day; Oct. 14: Columbus Day; Oct 16: National Boss Day; Oct. 24: United Nations Day; Oct 31: Halloween.
Mazon Office Holidays: We will be closed Mon. Sept 2 in observance of Labor Day and Mon. Oct. 14 in observance of Columbus Day. You may submit your invoices during our closed hours via fax, e-mail or drop-slot to be processed the next business day.
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International Day of Peace, Sept. 21
In its 36th session, in 1981, the United Nations General Assembly decided: "to devote a specific time to concentrate the efforts of the United Nations and its Member States, as well as of the whole of mankind, to promoting the ideals of Peace and to giving positive evidence of their commitment to Peace in all viable ways." By unanimous vote, Resolution 36/67 was adopted establishing the International Day of Peace (IDP).
The first International Day of Peace was observed at the United Nations Headquarters on September 21, 1982, the opening day of the 37th session of the General Assembly. At the start of the session delegates stood for the traditional minute of silence in observance of the Day. At that time, Pathways To Peace saw that member states were not involving civil society as hoped, and therefore initiated action. In 1983 with the Minute of Silence of the UN, the idea of the Peace Day was developed so civil society was inspired to get involved and humanity had ways to engage in activity that benefits the larger community. This was structured to be intergenerational and intercultural. By 1984, the September 18th International Day of Peace saw people involved from over 52 countries and Pathways to Peace organized the first major IDP celebration in San Francisco when department stores stopped their cash registers at noon; a major television network stopped its programming at noon and scrolled a message in silence with a minute of peace. In front of the San Francisco City Hall a program of music, speakers and a parade of flags took place inspiring many in the Civic Center Plaza. The Minute of Silence and Moment of Peace (Sound) and the global Peace Wave were also initiated around the world at this time. This celebration moved the activity outside of the headquarters of the United Nations for the International Day of Peace and into the hands of NGOs and Civil Society.
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To Deliver Great Service, Start Internally
Great customer service starts internally. Create a company culture of pride with fair compensation, good training, honesty, and respect. The values you teach are those your associates will put into practice to deliver quality service. (Source: www.Manta.com)
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Fall Business Book Pick
Taking People With You: The Only way to Make Big Things Happen, by David Novak (chairman & CEO of Yum! Brands, Inc.), published by Penguin, January 2012. Hardcover, 256 pages. ISBN-10:
1591844541.
Called one of the best-performing CEOs in the world by Harvard Business Review, David Novak runs the world's largest restaurant company, leading 1.4 million employees. Now, he's written a book and is offering you a rare opportunity, a chance to change your business and your life.
Not what you'd expect from a corporate suit, but Novak is not your typical executive. Novak doesn't waste time and doesn't insult your intelligence. Instead, he forces you to dig deep to find out what drives you by asking: "What's the single biggest thing you can imagine that will grow your business or impact your life?"
Whether you're running the night shift at one of his Taco Bells, or you're leading a multinational conglomerate, Novak's advice is a real game-changer -- if you're willing to do the work. Be warned: this book puts the "work" in workbook. Taking People With You is the result of a program that Novak teaches up to eight times a year within the company; a step-by-step guidebook and workbook. Think of this book as your own personal MBA course with one of the most successful executives on the planet. And like any MBA course, it takes time, diligence and patience, or as Novak says, "To do this right, you need to take your time, reflecting on each step and on your own leadership style."
If you're looking for a book you can grab in the airport and complete by the time you reach the coast, skip this one. But if you're ready to put in the time and work to make the big changes, Novak's book will surely become your treasured traveling companion. (Source: CNBC.com)
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Thoughtful Thoughts
We act as though comfort and luxury were the chief requirements of life, when all that we need to make us really happy is something to be enthusiastic about."
-- Charles Kingsley
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Inheritance
A man walked into a sports bar and saw an old friend of his drinking alone. Approaching his friend, he commented, "You look awful. What's wrong?"
"My mother died in April and left me $15,000," the friend answered.
"Boy, that's tough," the man replied.
Continuing, the friend said, "Then in May, my dad died leaving me $50,000."
"Gosh, both parents gone in such a short period of time? No wonder you're depressed," said the man.
"Last month, my aunt died and left me $10,000," the friend added.
"That's a lot to deal with. Losing three close family members in three months is terrible!" replied the man.
Then this month," continued the friend, "nothing! Not even a single dime!" |
Did You Know?
There is a famous and pricey diamond known as The Graff Pink. At 24.78 carats and sporting a gorgeous pink tinge, it was purchased for over $46 million by British billionaire Laurence Graff, who is a jewelry dealer.
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We hope you enjoyed this issue of Building Bridges Newsletter. Please share it with others.
Sincerely,
Lisa Hultz
Mazon Associates, Inc. |
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$$ Refer & Earn $$ |
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Business contacts, friends, family and acquaintances -- you just never know when someone you know might need Mazon's accounts receivable factoring services! Visit our referral page for more info. |
About Our Clients | |
Our clients are traditionally businesses that are manufacturers, distributors and service companies in the following areas: advertising / marketing / apparel / design / courier & delivery services / equipment repair & maintenance / environmental services / graphic design / signage & printing / staffing & employment services / security services / catering & food services / legal services / light construction / telecommunications / transportation services.
Our clients may include start-up, early-stage growth and high-growth businesses; under-capitalized businesses with historical operating losses; businesses with cash flow problems having a cash flow need; businesses with tax liens or turnaround situations; businesses who may have been turned down for bank loans and/or do not currently meet a bank's credit criteria.
Our clients have delivered services or products to other businesses and have business-to-business invoices that can be independently verified.
Most of our clients have come to us through referrals from current and former clients. We rely heavily on word-of-mouth marketing to bring in new clients -- and we offer a lucrative referral program.
Our clients are located in any of the 50 states in the U.S.A.
We do not accept as clients businesses which have a majority of consumer receivables such as retail businesses, progress billings, third party pay medical receivables and certain construction-related businesses.
For more information about becoming a client, please contact us by telephone 972-554-6967 or toll-free 1-800-442-2740, or visit our website:
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