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

At Rocket Ventures we see hundreds of entrepreneurs and start-up companies each year. Most of these entrepreneurs possess the required passion, persistence and conviction to launch a new business. However, the successful entrepreneurs have these essential traits and they know how to market and sell their products or services.

The first and perhaps the most important predictor of success start with the marketing strategy. Performing a rigorous market assessment is a critical first step in understanding the potential for business success. Having the knowledge of the industry and the specific market demographics, dynamics, trends, competition and customers provides a realistic view of the opportunity. Then, developing a segmentation plan further refines your focus by identifying those un-served or under-served market opportunities. Next, successful entrepreneurs target the ideal customer groups within that segment – and become so intimately knowledgeable of the targeted customer that they know more about their problems than their customers do, and can provide the right solutions to solve their problems. Finally, once targeted, success comes from positioning your product or service with the most competitive set of deliverables that both provide value and differentiate your company and its products from all other competitive offerings.

Now that you have developed a well-defined and effective market strategy, the next important element to success is designing and developing an effective and consistent sales execution plan. There is no company success without the sale - generating top line revenue. We see many start-ups fail because they don’t pay attention to sales! Most new technology start-ups bring exciting new products and services to complex customer organizations. These new products and services typically represent change to the status-quo. And this change may often be viewed as a real threat. So, the need for a well developed and consistent sales plan and process is essential to selling successfully and achieving company scalability.

In complex organizations, many buying influences are involved in the purchase of new technologies – particularly for those new products or services representing significant change from the current offerings. These buying influences have roles to play in the buying decision process. So, the need to first identify who these buying influences are, and then understand their role or motivation in the process is critical. In effect, every complex sale has 4 buying influences. First and most importantly is the economic buying influence. This is the key person who controls the budget and expenditures. This person requires a return on investment for the organization. It is essential to reach this person – who usually is at a higher level within the organization. Next, every complex sale must include the user buying influence - the person or persons who have to use or supervise the use of your new products. Making sure your product or service is understood and satisfies the user buying influence is also critical. Additionally, in every complex sale, there is also the technical buying influence – the person (s) whose role is to screen out products or services that don’t meet specific requirements, pricing guidelines or standards (including such functions as purchasing, quality control, legal). These are the “gatekeepers” and they must be satisfied as well. Finally, in every complex sale, the successful companies identify a coach – that person within the organization who has influence with other buying influencers, and wants you to win. They help you navigate through the complex organization by guiding you with your strategy, pricing, and networking with the right buying influences. Again, in a complex sale, all 4 buying influences must be reached and then convinced of the value of your product or service.

In summary, having great products or services, and possessing the passion, persistence and conviction are all important elements of success. Real, sustained and scalable success, however, comes from leveraging these great products and personal strengths with a well designed market strategy and effective sales execution plan.

Greg Knudson
Director, Rocket Ventures
knudson@rgp.org

Over the past year, more and more people have expressed a desire and taken direct action in starting entrepreneurial ventures, both locally and nationwide. Since 2008, Rocket Ventures has already helped start and commercialize more than 50 technology-based companies in Northwest Ohio.

This is not surprising, as more people are forced to seek out new avenues for money due to corporate layoffs and cutbacks. We encourage anyone considering a new technology-oriented business to call Rocket Ventures or Launch to get answers and information on the viability of their idea. Now is the time!

The Regional Growth Partnership’s Launch and Rocket Ventures programs, supported in large part by the State of Ohio’s Third Frontier program, provide the resources, support and opportunities to startups, particularly those forced to look for nontraditional sources of funding.

The development of such a knowledge-based economy will ultimately accelerate the growth and creation of new business, helping carry our region to new heights.

Steve Weathers,
President and CEO, Regional Growth Partnership and Rocket Ventures
weathers@rgp.org