There are a number of ways to evaluate your chance of success, including whether you are an entrepreneur with the “right stuff” or if your business has the “right stuff.”

The following evaluation should be made before making any new start-up business decisions:

A)      Market assessment

B)      Securing realistic funding sources

C)      Forecasting sales, expenses and cash flows

D)      Potential profitability

E)      Regulatory, legal issues

F)      Personal costs

Arguably, the most important issue revolves around determining who or what your market niche is. You need to quickly address a market review that indicates who are your clients, where are they located, how will you reach them and what are the costs associated with this process.

Secondly, start-up businesses require varying amounts of cash. Figure out how much it will cost to get your business open on its first day and then determine how much working capital will be needed to keep it running for a period of time - typically 90 to 120 days. Be prepared to personally provide a great deal of this early money from your own finances, and then work to secure traditional funding (banks) or from possible angel investors.

When you have completed your market assessment, it is vital that you work with an accountant or local economic development agency to develop projections which will include sales, expenses and burn rates. This information is not only vital when determining potential profitability, but will also help guide you in your effort to secure the proper amount of financing, and also timing as well.

Most businesses have either regulatory or legal issues that have to be dealt with at some point,  such as OSHA, the FDA, health departments, city, state and federal laws, etc. The sooner you identify them, the better prepared you will be.

Last but not least, very few entrepreneurs take into consideration the personal “life” costs associated with starting their own business. How does this impact your family, your personal financial situation, your “day” job, personal and legal risks?

Although there are many more issues you should work through before making a decision, this exercise will certainly help you decide if you have the “right stuff!”

Daniel P Slifko

A challenge for any business, particularly new startups, is generating awareness and positive news coverage for the company. Advertising dollars are often limited, and entrepreneurs might lack the experience with traditional public relations.

With that understanding, there are a number of tactics for startups to consider, most of which are relatively simple and inexpensive, if not free. Here are just a few for consideration:

1. Web site – As much as anything else, a company needs an online presence to promote itself. While top-of-the-line Web sites can run into 6 figures, modest, yet still effective sites can be developed at reasonable rates. Ask for referrals on freelancers, who often charge less because of limited overhead. Also, check with a local high school class, which might take the job at no cost as a class or group project. Bottom line – even if you just have a one-page site with basic product and contact information, it gets you in the game.

1. News release – Writing a news release is a means to communicate information to your target audience via the media. You don’t need a journalism degree to write a news release. Most important is to clearly state your news and describe why it is important to the readers or viewers. There are multitudes of Web sites devoted to teaching the proper techniques of writing a news release.

1. Networking – Take advantage of every opportunity to meet with colleagues related to your business or professional industry. Our (free) quarterly Tech Connect event is a perfect place for entrepreneurs to make new, valuable contacts. Also consider joining your local chamber of commerce or rotary. While there might be a nominal membership fee, it will pay for itself quickly, assuming you take advantage of the resource.

1. Other – If you have a few dollars for advertising, consider some low-cost avenues which might potentially reach your target audience, such as church bulletins, chamber newsletters, and neighborhood association newsletters. In addition, bulletin boards at public places such as gymnasiums, senior centers and university campuses offer opportunities to promote your business.

Whatever strategies you take, always remember your target audience. Who do you most wish to reach to promote your product? What message will be most effective for that audience? Which mediums will best reach that audience?

The RGP and its technology programs, Launch and Rocket Ventures, will readily provide input, suggestions and advice to help your business take the right steps in attracting positive publicity.

John Gibney

Turn on the local TV news, open the local newspaper, tune in to local talk radio and the stories you will find are all the same.  Factories closing, business moving away, rising unemployment, more layoffs on the way . . . all the doom and gloom they can sell to keep their ratings.  Well, I know at least one customer who is not buying – me!

Not only am I fortunate to have a job, but I have a job that takes me all across Northwest Ohio, meeting with entrepreneurs and small businesses that are telling a completely different story.  Nearly every day, I meet people with bright, new ideas who are excited by and optimistic about the opportunities they have before them.

Throughout the region, hundreds – maybe thousands – of enthusiastic entrepreneurs are inventing new technologies, developing new products, and establishing new businesses.  Highly conductive copper, next generation wireless networking, innovative medical devices, energy harvesting nano-ceramics, alternative and renewable energy generation, photovoltaics, - even hybrid aircraft -  are just a few of the innovative technologies currently being developed here in our region.

Innovation, entrepreneurship, and access to capital through programs like Ohio’s Third Frontier Program is enabling new small companies to leverage the strong manufacturing infrastructure and skilled workforce in Northwest Ohio that will become the foundation of tomorrow’s economy.  So join me in turning off and tuning out the local media and get out and see for yourself that there are some good things going on in the region.

Why is this important and what should it mean to you?  Well, if you are an entrepreneur with a technology idea, it means that we have a proven track record of success and you should talk to us to see if we can help you.  If you are looking to relocate a business, it means that Northwest Ohio is on the upswing and will continue to be a great place to be based.  If you are a tax-payer, it means that we have taken $5.5M of a Third Frontier bond issuance and leveraged a 5.1 return.

Even though these are great numbers, some of the impact on Northwest Ohio is a little tougher to see.  We are accustomed to hearing about “new jobs” and large existing companies moving here from out of the area.  We don’t often hear about or think about how companies get started and what needs to happen before an entrepreneur can even hire the first person.  But that is what Ohio’s Third Frontier Entrepreneurial Signature Program is designed to do – help position companies for that initial step and continued growth.  We are taking the lessons from the start of the glass industry in Toledo, the auto industry in Michigan, and more recently personal computer industry in Seattle in order to apply them here today.  We are creating industries from small groups of related technologies.  Those industries will take hold, grow, expand, and grow some more.  It will take some time to see the full effects of our efforts today, but the point is that these numbers indicate we are on the right track. 

Craig Ortega
Program Manager

http://rocketventures.org/?p=1860 Since their inception in 2008, Rocket Ventures and Launch, programs of the Regional Growth Partnership (RGP), have prioritized the need to communicate their services to entrepreneurs and technology-based startup companies across Northwest Ohio. Through proactive outreach efforts, both Rocket Ventures and Launch have reached more than 6,000 people. This year alone, these programs have reported more than 300 inquiries among potential clients.

Yet, we also understand that this ongoing awareness campaign for Rocket Ventures and Launch is still relatively new and there are many people still unaware of our $22.5 million venture capital fund and the services it provides.

As evidence, in the Nov. 1 issue of Toledo Free Press, a print advertisement criticizing economic development efforts in Toledo claimed that local agencies cannot directly help small businesses because such assistance is tied to bank financing, and there are currently no loans being offered. The advertisement also named the RGP as one of a handful of taxpayer-funded entities which have produced no results.

As part of the RGP’s continuing education and awareness campaign, I will clarify a couple points in order to provide a better understanding of our organization.

First, the RGP is a privately funded entity, which does not receive local taxpayer dollars. In 2005, the Toledo Regional Chamber of Commerce spearheaded a funding campaign to privatize the RGP which cut us free from local tax money and strengthened our standing with national site consultants.

Secondly, Rocket Ventures does invest in early-stage companies that have strong potential in the northwest Ohio marketplace, primarily in bioscience, alternative energy and advanced manufacturing. So far, the program has awarded 26 development grants exceeding $1.24 million to early-stage companies. In addition, Rocket Ventures has made nine pre-seed investments of more than $3.6 million.

These grants and investments, along with the support of Launch, have helped in the commercialization of 60 new startup companies in northwest Ohio since the start of 2008. Our goal through Rocket Ventures is to commercialize 100 new startups by the end of 2010.

Moving forward, we will continue in our efforts to promote the many opportunities for technology entrepreneurs through our Rocket Ventures and Launch programs. We understand that a successful awareness campaign will ultimately generate greater deal flow, which means the commercialization of great technology into our marketplace. The end result will be a diverse and growing economy, greater investment in the region, and new high-paying jobs.

I encourage anyone who is interested in learning more about the Regional Growth Partnership as well as our Rocket Ventures and Launch technology program to contact me at (419) 252-2700 Ext. 307, or at weathers@rgp.org.

The Internet age has made many of us see the supposed greener grass of other parts of the country, while the sexy allure of the bigger cities and states has always made being from Ohio or a Midwestern state seem negative in some way. In a culture of “mine is better than yours,” how do we clearly identify our home cities and state and get back to the Drew Carey’s mindset of “Heck yeah I’m from Ohio and really proud of it?”

For the past few months, it has been my privilege to be on an editorial team for a new ezine called hiVelocity. This new publication’s only focus is the important changes that are happening in Ohio. The new Ohio economy, the creation of technology and the innovative “thinkers” located all across the state are detailed in this bi-monthly publication.

I’ll admit I’m biased because I’ve always loved my home state and my home city of Toledo. However, after listening to the story pitches being tossed out by my counterparts across the state, my enthusiasm for Ohio has become even greater. When the ezine was launched on September 24, I read it with awe. Even though I had seen some of the stories before, part of me read it with new eyes and I couldn’t help thinking, “All of this is really happening in Ohio?” It makes me excited for the future and the Ohio economy and glad I chose to stay here and raise my family.

I encourage all of you to read hiVelocity every two weeks. There is so much to learn about our great state…and maybe you’ll end up hearing the end of the Drew Carey theme song in your head too…”OHIO!”

Julie Myers
Marketing Manager

The largest city in NW Ohio is Toledo, with a population of about 400,000 in the metro area.  Owens-Corning, Dana, Pilkington-North America and Owens-Illinois are headquartered and Fifth Third, Huntington, Key, and National City banks have major operations in the Toledo Metro area.  This critical mass supports a minor league baseball team and has enabled a new sports arena to be built (officially opening in just one month) that will house an East Coast Hockey League team and an Arena Football 2 team as well as countless music, sports, and entertainment events.  The ballpark and the arena combined with the Seagate Convention Center and the Valentine Theatre anchor an entertainment district in the heart of downtown.  Toledo also boasts about its Art Museum, thought of as one of the top five in the country, and its Zoo, one of the world’s most complete with over 760 species.  Even with this draw, we don’t experience some of the problems that larger cities do, such as traffic and crime.  Our highways and surface streets allow for such good flow that it is often joked we don’t have a rush hour; we have a rush “half-hour.”

Findlay and Lima, each with a population around 40,000, are tremendous assets for the region.  Findlay and Hancock County offer one of the more comprehensive community planning and economic development efforts available.  In fact, more than fifteen high-profile companies such Marathon, Whirlpool, and Cooper Tire are present because of it.  Lima has been home to many manufacturing companies, serving the locomotive, automotive, and home appliance industries among others.  Both offer cultural and entertainment outlets, from the Arts Partnership of Greater Hancock County to the Lima Warriors semi-pro football team to Findlay’s Riverside Park band shell.

Despite our size and corporate history, we haven’t lost our honest, straightforward nature or our traditional values such as generosity and strong work ethic.  We still appreciate a job well done and will honor a commitment.  In fact, Lima was once named among the Top 10 places to raise a family in the U.S. by Reader’s Digest due to the area’s strong sense of community, great business and entertainment opportunities, and a rewarding quality of life that’s easy on the pocketbook.  America’s Promise Alliance and Capital One announced Findlay as one of the 100 Best Communities for Young People in 2007.

I would be remiss if I didn’t mention the Lake Erie shoreline and islands of Ottawa County or the city of Defiance, which was recognized for the seventh consecutive year by Site Selection Magazine as one of the Top 100 small towns in the US.  As the midpoint between Fort Wayne, Indiana and Toledo, it is experiencing growth and investment due to the “Fort to Port” project.

So, if you are an entrepreneur, and you have an idea, we would love to talk to you.  We can offer advice, coaching, management expertise, and maybe grants or investments.  But we can also help you build a business in one of the best possible places – Northwest Ohio.

Craig Ortega
Program Manager

Ignite! Development Fund

These advanced materials and manufacturing technologies lie at the heart of many of our hottest new products and offer tremendous opportunities to investors.  They have the advantage of being applicable across many lines of products and aren’t tied into just the one hot new product which may, in the end, fail.

So what’s the message here?   As a creative and energized engineer, chemist or metallurgist, don’t feel left out of the entrepreneurial joy ride…get on board and develop the next process or machine to make tomorrow’s solar cells or magnetic imaging machines.  As an investor, find those enabling technologies in composite materials for wind turbine blades or specialty metals for new batteries.

One last message…look for these technologies in Northwest Ohio.  We’ve been inventing new forms of metal, glass and plastic for a century or more.  We also have highly qualified machinery manufacturers who are looking for new problems to solve as our traditional industries have slowed or died out.  You’ll find that many hot, new products are relying on materials and processes made here.

Mike Brooks

Entrepreneur in residence

Rocket Ventures

Technology commercialization is the process of turning inspiration into a business. Economic development professionals across the globe are working feverishly to convert the ideas of the more inspired members of society into jobs and economic growth. Inventors are encouraged to spend their time and resources to bring forward new technologies for the good of all, with little attention paid to the nature of the inventor. Merging the spirit and raw intelligence of research with the business world is no easy task.

Science and engineering are complicated by nature. One must discover things that were never know in ways that have never been tried and put them together in a manner that functions within accepted perimeters. Most inventions are the product of years of research, dedication and work that are beyond the scope of the average person. Because of this, Inventors can and do develop an emotional connection to their new technology. This is often a point of friction between funding agencies and inventors. Although venture capitalists and bankers that have worked in their industry for any length of time understand that an emotional connection exists, they really do not appreciate the strength or nature of the ties between inventor and creation. Nor does the inventor appreciate the risk taken by the funding agencies by investing any given company.

The truth is that one must be able to divorce themselves from the technology in order to make a realistic judgment of the value of any given technology.

Thomas Edison’s adage that “genius is one percent inspiration and ninety-nine percent perspiration,” is an almost absolute truth, especially when it comes to commercializing technology. Edison has a much less famous line that is, however, more appropriate, “Anything that won’t sell, I don’t want to invent. Its sale is proof of utility, and utility is success.” Unfortunately, just because a novel technology is useful does not mean it will sell, or rather sell in enough quantity at an adequate price to make it worth the inventors time to pursue commercialization.

Invention is passion, imagination and sweat. Technology commercialization is focused development of an invention into a product. For that the scientist must rely on others to translate business jargon and build the necessary framework to move a product into the market. While many inventors can develop the essential business skills, they cannot replace their own technical knowledge and are well advised to associate their company with people who are more adapt at working within a business culture that rarely follows the logical paths of the scientific method.

Business is complicated because businesspersons too often make it complicated in vain attempts to mitigate the risk innate within the profession. That being said, there are some entrepreneurs that seem to plunge forward with reckless abandon, but make no mistake, the successful ones do so with discipline and focus.

Business is not paperwork and procedure. Business is risk. Smart business is controlled risk.

Todd Davies
Business Development Manager, Rocket Ventures
davies@rgp.org

A business plan is a necessary document that will turn your entrepreneurial dream into a commercial success. Additionally, a good plan should be used as an important management tool which will provide a blueprint and “step by step” instructions leading to commercialization and hopefully a profitable business.

When deciding what information should be included in a business plan there are many web sites, libraries and economic development organizations that can provide examples, formats and outlines. However, whether your business is technology based, lifestyle or traditional, there are five essential building blocks that all plans should address:

1. Product/Service - include information regarding uniqueness, life cycle, quality, competition, benefits and solutions.
2. Money - How much money is needed to start-up and what kind of working capital will be needed going forward? Where will the money come from, what will it be used for and will you be personally investing?
3. Management - What is your teams’ personal experience? Do you have good operating, management and human resource skills? Most importantly are you a great salesperson and fundraiser?
4. Marketing - Do you understand your market niche? Have you done your research on the competition and can you integrate the 4 P’s of marketing (promotion, product, place and price) into a successful launch?
5. Planning - your business modeling should answer the basic questions of “Who, What, Where, When, Why and How,” and make sure to include your personal goals!

The value of a business plan is that it identifies the essential events that must occur and actions that must be taken in a specific time frame to achieve a specific result. It should also provide a foundation for tracking the progress of your business and allows you to make adjustments or changes to specific operations which will help you maximize your chance of success.

As for how much time should be spent on planning, I will paraphrase what a noted economist, professor and business author once said; “The beauty of not planning is that failure comes as a complete surprise with little or no grief or remorse” In other words there is little or no chance that you will be successful in business without planning.

Dan Slifko
Business Development Manager, Rocket Ventures
slifko@rgp.org