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.

 

 

 

From our first humble days with only one employee, through a very quick ramp up to a fully staffed office, and ending in third quarter 2009, Rocket Venture’s clients have received almost $28M in investment, grants, sales, licensing agreements, and joint development efforts.  That’s not just a couple of “lucky” entrepreneurs – that number represents the success of twenty-six different early-stage companies!  That doesn’t count any money from the State of Ohio, either, such as grants from the Alternative Energy Program.  We only measure how much “New” money comes into these Ohio businesses.  It also doesn’t include other deals in the works, which we expect will dramatically increase that total.

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

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