Clay

On March 27, 2012, TowsonGlobal will mark five years of entrepreneurial success, showcasing the breadth of entrepreneurial initiatives at Towson University and recognizing the achievements of six entrepreneurs who have turned  their innovative ideas into successful businesses.  During the Celebration of Entrepreneurial Success, certificates of accomplishment will be awarded to the incubator’s first graduates, which include:

Linda Seidel and Estelle Meister – Transcending Cosmetics.   Transcending Cosmetics was founded to market their proprietary product, Natural Cover, to makeup professionals and medical practitioners nationally and internationally. Seidel is a pioneer in the corrective/camouflage makeup field who developed her own formulation when she found that no other product would adequately perform for her clients.

David Ryan and Jacques Dompier – Chesapeake Compensation Solutions.  Chesapeake Compensation Solutions is a boutique consultancy of compensation experts with broad experience in assisting a diverse mix of publicly and privately held companies and organizations in solving the challenges they face in attracting, retaining, and motivating key talent.

Adam Nepp and Scott Wohler - NeWo Technologies.   NeWo is an electronic product development firm that brings wholesale R&D to the masses, specializing in “concept to prototype” design.   The company has developed real-time data harvesting and wireless transmission technologies with applications for athletics, defense, and health care.

A TowsonGlobal incubator member company is considered prepared to graduate when it reaches particular milestones, which vary from company to company. These may include sales revenue, grant or investor funding levels, numbers of employees, or space requirements.  Milestones are set in meetings between the entrepreneurs and a TowsonGlobal milestone review committee, which is comprised of TowsonGlobal Advisory Board members, external mentors, and staff.

The graduates recognize the incubator’s role in their growth and are grateful for having had a chance to participate in the program.  Nepp asserts that TowsonGlobal has helped NeWo gain more exposure and make quality connections both within the incubator and externally.  “One of the best things about working at the incubator is being in the same boat with other companies.” His partner, Wohler, agrees. “We will definitely miss the bond we have with other members and the staff.”  Transcending also appreciates the support that TowsonGlobal provided them during their five-year participation.  Seidel says, “They gave  us a safe haven where we could learn, grow, and flourish.”

The Celebration of Entrepreneurial Success will feature comments from Baltimore County Executive Director of Economic Development Daniel Gundersen and TowsonGlobal Advisory Board Chair and Vice President of Global Export Business Development at McCormick & Co. Fred Lissauer.  The event also will showcase Towson University’s entrepreneurial initiatives, such as the Entrepreneurship Program within the College of Business and Economics, TowsonGlobal’s business plan competition, mentorship programs, and more.

TowsonGlobal provides each entrepreneur with a wide range of support, including high-quality, affordable office facilities; business counseling; mentoring; networking assistance; workshops and other educational forums. Members also draw from the experience of an active advisory board comprised of executives in technology, financial and legal services, logistics, manufacturing, contracting and venture capital fields.

TowsonGlobal is proud to play a significant role as a facilitator of entrepreneurial activity in the community, and to have been a stepping stone in its member companies’ road to success.   Congratulations and the best of luck to all!

Clay

The time has arrived! TowsonGlobal’s Business Plan Competition is back for a second year.   The inaugural competition brought entries from a diverse group of entrepreneurs with interesting business concepts.  All had the same goal in mind—success.  And this second annual event promises to be even more inspiring, helping stimulate innovation and entrepreneurship across the region.

While the basic format of the competition remains the same, a few changes have been made to help better prepare entrants and to make the competition more interactive. For this second competition, interested participants are invited to attend free workshops which focus on the basics of a business plan, including:

• writing an effective executive summary,
• conducting useful market analysis,
• and developing realistic financial projections.

The five chosen finalists will attend a required boot camp to help prepare for their final presentations.  Also, this time, presentations will be made both in private and at a public forum.  After which, the winner will be announced at a networking reception.

Business Plan Competition Workshop #1 (October 2011)

Timeline & Process:

• October 19, 2011 — Business Plan + Executive Summary Workshop
• October 26, 2011 — Market Analysis Workshop
• November 10, 2011 — Financial Projections Workshop
• February 6, 2012 — Executive Summaries Due (3-5 pages)
• February 20, 2012 — Finalists (5) selected and notified to submit business plans
• February 27, 2012 — Presentation boot camp for finalists
• March 27, 2012 — Deadline for finalists’ submissions of business plans and PowerPoint presentations
• May 2, 2012—Finalists present in front of judges, winner selected

We hope that participants will get as much of the competition as the first group did.  Lisa Drouillard of My Hopeful Journey, one of two 2011 winners, commented, “The business plan competition helped me to think of my business in a more tangible way and not just as a concept.”  The other winner, Ben Walsh of Pure Bang Games, added that participation “strengthened our ties to other early stage startups, and most importantly, Towson University.”

TowsonGlobal is looking forward to seeing the exciting, innovative concepts that will be brought to the competition.  For more details on the competition, visit TowsonGlobal’s Business Plan Competition page or email us at info@towsonglobal.com .

Daraius

In the social circles that I often move in and amidst the cacophony of sounds one hears in most establishments that serve adult beverages , many individuals upon finding out what I do for a living ask me “when is the unemployment rate going to fall?”  After giving my usual two handed speech which leaves many individuals looking somewhat bewildered, I tell them it boils down to the housing market.

The goal of increasing the homeownership rate has been on the agenda of both the Republican and Democrat parties for many decades.  Both sides cite studies that supported the notion that increasing the homeownership rate will ensure stability in the communities as many homeowners mow their lawns on Saturday morning (not too early), crime would go down, and essentially all of the societal ills ascribed to a transient population would be eliminated.   As a result, many communities resisted through zoning or other means building additional rental units and pushed builders to build single family homes or townhomes.

However, we have traditionally been a nation built on mobility-“Go West Young Man” was a motto well into the 20^th century.  Moreover, this credo of mobility has enabled the workforce to move to where the jobs are and has resulted in the US economy enjoying continued growth and prosperity.   The great recession as it is now being titled had its origins in the housing crash and as a result profoundly changed the mobility of the workforce.

In regions of the country that are experiencing a nascent economic recovery, finding skilled workers has been challenging and in many  cases these positions  remain unfilled as ideal candidates are stuck in other regions of the country with a house they cannot sell. To be clear, it is often not the case that they cannot sell their home; it is more likely that if they are able to sell their homes they would still owe a substantial amount to the bank. It has been stated that at least 20% of the homes are underwater in terms of their mortgage in the US.   In this credit conscious society, abandoning your home to the bank, often referred to as a strategic default will not only affect the individuals’ ability to borrow again, but will affect their ability to get a job. The amounts are non-trivial often amounting to tens of thousands of dollars or more.

As a young child when I came across a deep hole, I would toss a rock in it and wait for the familiar splash of water, letting me gauge how deep the hole was.  I suspect that when it comes to the housing market, many people are on the edge of that hole waiting for the sound of the splash.  However, outside of the fact that the number one asset of most individuals has lost anywhere between 10% and 50% of its pre recession value, the lack of recovery in this market will continue to prevent labor from moving where it is needed and this one of the many reasons why unemployment will continue to remain persistently high in many locations for the foreseeable future.

Clay

You can’t wait to be America’s next successful entrepreneur and have come up with the perfect new business idea. That’s the easy part. The most difficult task? Finding the money you need to get things going. Fortunately, there are a number of options available to find the resource for turning your idea into a viable business, including:

1. Self Funding
If you choose to personally finance your business, you can tap into your savings, investment portfolio, mortgage refinancing and home equity loans, employer buyouts, and retirement funds. Be sure not to use all of your savings and keep an emergency stash for any unexpected expenses that may arise.

2. Family and Friends
This is often the easiest and most informal way to get funds other than using your personal savings. To avoid uncomfortable family reunions in the future, draw up a formal contract that clearly spells out terms, conditions, expectations, etc.  This is doubly important when dealing with those to whom you are closest.

3. Financial Institutions
Banks may loan you money if you have been in business for two years or more and usually look at the liquidity of your assets, company’s cash flow, and require tangible assets, like your home, as collateral. They look at how much and how quickly you can pay back, so funding may be limited.

Photo Credit: Dani Simmonds

4. Venture Capitalists and Angel Investors
VC’s usually have high performance standards, expect quick returns, and expect a share in the business. VC investments start at $250,000 and can go up to several millions.  Angel investors, although difficult to find, are friendly and patient about their investments and offer advice, experience, and guidance along the way. Investments may start at $25,000 and can go up to $1 million.

5. Strategic Investors
These investors usually look to integrate your product into their business.  It is usually one of the most convenient and quickest ways to enter the market, but they may keep you from doing business with their competitors, or try to change your business to their convenience.

6. Grants
Grants from government agencies or foundations can be a low-risk and low-commitment way to get funded. Although there is a lot of competition, winning a grant can increase recognition and funding opportunities in the future.

7. Credit Cards
While a few companies, like Google, funded themselves through credit cards and went on to become successful, this tool can be fairly risky. Jumping into a pool of consumer debt with little to no income could leave you open to ruining your credit, and will decrease your chances of attracting investors in the future.

Funds may be hard to find but there are options. Knowing what all the possibilities are will help you determine what works best for your situation.

Clay

I frequently hear people say that small companies, especially entrepreneurial ventures, should not be thinking about the global market place.  After all, they’re just a local company and need to be focusing on the home market, right?

Well, maybe, but in this age of globalization not considering the opportunities of international business could very well mean the difference between growth and stagnation.

Almost half of US businesses are predicted be involved in international trade by the year 2020, and US Department of Commerce data indicates that large companies currently sell only about 4% of US exports.  That means that 96% of exports are sold by smaller companies!

International business can be an important strategic option for small businesses.  It can open many new doors for success, but the key is determining why you want to get involved in international business.

Do you want to go global to:

• Expand customer networks?
• Gain exposure to new ideas and technology?
• Find new ideas for global sourcing?
• Or, just because everyone else is doing it?

A company’s motivation for pursuing international business can be very telling and help determine the likelihood of success.  Programs that are most likely to succeed are those that are planned for the long-term, and include market research, international relationships, and logistics arrangements.

International business can contribute to long-term growth of a small business, and also can enhance competitiveness.  By buying and selling internationally, a company can gain insights on customer requirements, competitor activity, and different ways of doing business.   Companies also may acquire new technologies, ideas, and partnerships from the process.

Once a company decides to go global, commitment from the management team is the number one determining factor of success. Management can show their commitment to an international program by setting aside funding, allotting time to manage the program, and assigning personnel to perform its tasks.

Taking advantage of international opportunities now is easier then it’s ever been.  The Internet and other modern communications technologies make the buying and selling of all types of products, services, inputs, and components a viable option for many businesses of all sizes, almost anywhere in the world.

For information on how TowsonGlobal can help your business take advantage of international opportunities, check out www.towsonglobal.com.

Photo Credit: Barun Patro

Clay

“Do you really know what you ate today?” Natural Check, LLC dares to answer this sometimes unnerving question by making the science of water and food testing easily accessible.

This innovative startup company, and member of the TowsonGlobal Incubator, provides fast, affordable and reliable methods to screen for unacceptable compounds in the food and water supplies. For example, the company has developed a lab-based test for the detection of artificial growth hormones in beef and offers a rapid field test for antibiotics in milk.  Additional tests are under development in partnership with labs from around the world.

NaturalCheck also supplies water testing kits and is striving to build community awareness through city-specific “What’s in my water…” Facebook fan pages created for cities like Baltimore, DC, Los Angeles, and New York.  In addition, the company offers the BRIX Meter, which helps determine the nutritional quality of fruits and vegetables.

Similarly, NaturalCheck, through its AuthentiCheck division, is on the forefront, developing and distributing new technologies to protect manufacturers, retailers and consumers from often unsafe counterfeit products. The technologies offer two important services—authenticating products and tracking and tracing the movement of products through the supply chain—and are suitable for textiles, packaging, pharmaceuticals, and many other products.

NaturalCheck was founded by Larry Bohlen, former NASA engineer, international environmental advocate and food safety entrepreneur.  His experience has taught him that testing and sharing the results can be a powerful tool for facilitating real change.

Clay

In the marketing world, focus groups are a way of reaching out to existing or potential customers for feedback.  Companies of all sizes often use focus groups to improve an existing product or service or to test new ideas.  These facilitated discussions of 6-10 people can elicit a great deal of valuable information.

For start-up companies, focus groups can be a particularly powerful tool for evaluating new ideas, products or services before they are put on the market, avoiding costly missteps.

Developing new products can be very expensive, and focus group research can remove some of the risks by saving you from wasting time and money on ideas that won’t fly and by helping you strengthen good ideas.  If conducted properly, focus groups can uncover many diverse insights from participants into how the product may potentially be viewed and can aid in development of marketing strategies that will most effectively address customer needs.

Take a look at this video describing how Domino’s Pizza used focus groups to learn what needed to be improved about their pizza.

In many cases, companies use outside resources to coordinate focus group research; the cost for which typically can be $3,000-$6,000.  This may seem expensive for a small business, but compared to other research methods, it can be relatively economical.  For those who can’t justify the expense, there may be ways to reduce the overall cost of conducting a focus group.  For example:

• Holding the session(s) in your own meeting space can save the expense of using specialized facilities; just make sure that the space is comfortable and private.
• Using someone from inside the company as facilitator instead of an outside consultant may be cost effective; chose a person adept at leading discussions and keeping the group focused on the objective.
• Having an internal scribe make notes of and summarize the meeting can save money, but the person(s) must be sure to capture the numerous thoughts and ideas from the discussion that will direct the efforts to move forward on the issue.
• Analyzing the data internally also could save a significant sum; however, the risk of biased reporting, can make having an outside source analyze the data a worthwhile investment.

While there are options for cutting corners when conducting marketing research, there also are aspects on which the firm does not want to skimp.  The most important elements of a focus group are the participants.  You do not need to pay large fees, but some small level of compensation for participants’ time and ideas is required.  Also, make sure you have the right audience (people without the proper background or interests will provide useless or distorted information).

Check out these links for more tips:

• http://www.etr.org/tabono/Images/FILES/basic%20evaluation%20on%20focus%20groups.pdf
• http://assessment.aas.duke.edu/documents/How_to_Conduct_a_Focus_Group.pdf
• http://www.omni.org/docs/FocusGroupToolkit.pdf

Clay

Starting and running a business can be daunting, but you don’t have to go through it all alone.  Even before you launch your business, it probably is a good idea to find a mentor or two, someone more experienced who can serve as a trusted advisor over an extended period of time and who can provide guidance and input that will help minimize the likelihood of making many common mistakes.

The mentor can help brainstorm and strategize, can provide an important third-party perspective, can challenge deep-rooted but perhaps misplaced views, can offer support and motivation through difficult periods, and can give constructive feedback.

The mentor should be someone who suits you and your circumstances.  The right mentor can make all the difference, so how do you find that person?  Here are some suggestions:

1. Look at your network of contacts:  friends, family, former colleagues, college professors, SCORE, business associations, chambers of commerce, or other sources.  A business incubator like TowsonGlobal also has may have an advisory board or entrepreneur-in-residence who can provide in-house mentoring.
2. Choose a mentor in the same field as you who or someone who is aware of many of the specific issues that might arise in your field and can uncover hidden challenges.
3. Choose a mentor who can talk to you about their mistakes (and successes) and will share what they have learned.  This can help advance you more quickly along the learning curve.
4. Choose a mentor who has a network that will expand important contacts in your industry.  Having access to the right people early on can help make things happen more rapidly.
5. Choose a mentor who has no ulterior motive, no service or product to sell you.  You need someone you can trust, with whom you are comfortable sharing your hopes and fears.
6. Don’t view it as only a one-way relationship; be willing to reciprocate and share your own insights, contacts and opportunities.

Once you have found your mentor, be willing and prepared to listen and seriously consider their advice; otherwise they won’t be sticking with you for long.  Ultimately, their counsel could make all the difference in the world.

Jill Blashack Strahan was a small business owner with a struggling gift basket company in Minnesota.  She counseled with her mentor as she was trying to figure out how to be more successful.  Jill said her goal was to make $30,000 a year but was advised that not only had she set her sights too low, but she was focusing on the wrong thing.  She should focus on her passion not the money.  During many of the rough times, Jill thought of giving up, but then she remembered her mentor’s advice to focus on her dream.  She did that, and today Jill’s company, Tastefully Simple, is a direct-sales business with $120 million in sales.

Clay

University-based business incubators such as TowsonGlobal not only support start-up businesses from the surrounding region, but also offer students a plethora of hands-on experience and practical knowledge before joining the workforce (see story from The Baltimore Sun special education section).

While the model may vary from one incubator to another, area entrepreneurs, students and others can tap into the incubator’s resources by paying affordable membership fees as either resident or associate members.  The incubator offers a wide variety of resources, including office space, mentoring, and networking assistance.  For instance, TowsonGlobal’s advisory board, brimming with advice from seasoned executives, is a great asset for member companies.

Affiliation with a university provides incubator companies ready access to faculty and staff for collaboration on research and development, for commercialization of university generated technologies, or other types of academic-business partnerships.  This also can provide an ideal avenue for finding enthusiastic and hardworking student interns.

At TowsonGlobal, for instance, over the last several years as many as 30 students have benefited from internships with participating companies as part of their academic programs. They have been assigned to companies where they have conducted market research, produced feasibility studies, and developed real business contacts for the incubator clients (see the TowsonGlobal YouTube video).

Encouraging entrepreneurship through incubators allows universities to provide great collaborative, educational experiences that benefit all… students, faculty/staff, entrepreneurs, and student entrepreneurs, too.

Clay

As in just about every area of life, the importance of planning really can’t be overemphasized for the entrepreneur.  This old saying is very true:  Failure to plan is a plan for failure.  Even though some entrepreneurs may “luck” into success without going through the process, a lack of planning really is a formula for failure.

The business plan does not need to be complex or long, but it is necessary.  In simple terms, a business plan is a written description of your business, a document that describes what you plan to do and how you plan to do it.

What is included?

• A business plan conveys the business goals and the strategies you’ll use to meet them.
• It discusses the potential problems and risks that may confront your business and ways to solve them.
• The plan highlights the organizational structure of your business and who the team members are.
• It demonstrates that there is a market for your product or service and that you know how to tap that market.
• The plan highlights how the product or service will be produced.
• It also discusses the amount of capital required to finance your venture and where you expect that money will come from.

Clay Hickson advises a TowsonGlobal business

Business plans have several purposes. They’re used to seek support from potential lenders or investors.  They also may be used to attract key team members, win new business, work with suppliers, and understand how to manage the business better.  However, just because you have a plan doesn’t mean that everything is covered and that there won’t be surprises.  It does mean you will be much better prepared and more likely to achieve success.  Even so, once you have the plan in place, it doesn’t mean that all your work is done.  A business plan is a living document that should be regularly revised as conditions and goals change.

There are numerous resources available for guidance on developing a business plan.  Small Business Development Centers have workshops that teach all the basics.  Their counselors and those of a Small Business Resource Center or of the Service Corps of Retired Executives also can help.  Of course, there also are templates and other resources available on line, such as from the Small Business Administration.  In addition, participation in a business incubator program like TowsonGlobal can provide an entrepreneur significant help in fine tuning his or her business plan.

This nautical analogy sums it up pretty well:  “It’s better to be 5 or even 10 degrees off your charted destination than to have no port in mind at all.  After all, the point of sailing is to get somewhere, and without a plan, you’ll wander the seas aimlessly, sometimes finding dry land but more often than not floundering in a vast ocean.  Sea captains without a chart are rarely remembered for discovering anything but the ocean floor!”

Do you need a business plan?  Yes!