Legislative Gathering to Showcase Outstanding Missouri Small Businesses Jan. 30
Owners and managers of more than a dozen outstanding small businesses in Missouri will be honored by members of the Missouri General Assembly Jan. 30, in Jefferson City. The business showcase, sponsored by the Missouri Small Business Development Centers (MO SBDC), highlights the achievements of some of the top performing clients of MO SBDC and its companion program, the Missouri Procurement Technical Assistance Centers (MO PTAC).
Each of the businesses will exhibit their products and services at the MO SBDC/MO PTAC Client Showcase from 8 a.m. to 11 a.m. on the third floor of the Capitol rotunda. They also will receive legislative resolutions from their respective state senators and representatives honoring the impact of their business enterprises on the economic development of the state.
"This showcase provides a venue to demonstrate the importance of Missouri's small businesses to the economic vitality of the state," says Steve Wyatt, director of the University of Missouri Extension's Business Development Program, who administratively oversees MO SBDC and MO PTAC. "Each of these businesses—many of which are technology-oriented and in early stages of developing cutting-edge products—has received expert assistance from MO SBDC and MO PTAC counselors, which enabled them to start or expand their enterprises."
Among the honored Missouri-based businesses scheduled to attend the showcase are:
- One To Many Solutions, Macon
- Aegis Business Solutions LLC, Kansas City
- Dr. Curt Elmore and Dr. Mariesa Crow, Rolla
- Hammer Collections LLC, Springfield
- Innovations HQ, Kansas City
- LaBarge Products Inc., St. Louis
- Language Solutions Inc., St. Louis
- Lytmos Group LLC, Lee's Summit
- Midwest Customs, Carrollton
- Nanova, Columbia
- NEMS/MEMS Works LLC, Columbia
- Paris Brothers Inc, Kansas City
- Patric Chocolate, Columbia
- RoJack LLC, St. Louis
- Show Me Energy Cooperative, Centerview
- Sign Designs, Joplin
- Technology and Networking Inc., Cape Girardeau
- Val-Rich Foods LLC, Jefferson City
FY 2007 Economic Impact: The Stats Are In!
Growing Missouri businesses
Economic impact for the statewide Missouri Small Business Development Centers program during FY '07 includes assisting MO SBDC clients in:
- Achieving 146 new business start-ups.
- Creating 1,297.5 new jobs.
- Retaining 460 existing jobs.
- Increasing sales valued at more than $90 million.
- Submitting more than $9.4 million in SBIR/STTR applications.
- Acquiring more than $67 million in new financing for their companies (SBA loans totaling $15.46 million; non-SBA loans totaling $28 million; and non-debt financing and equity totaling $23.95 million).
- Achieving new tax revenue of $4.3 million on the federal level and $5.4 million on the state level (based on data from the most recent Chrisman study).
MO PTAC Clients Set Fiscal Year Record
Surpass $274 million in procurement contracts
Business clients of the statewide Missouri Procurement Technical Assistance Centers (MO PTAC) have achieved a new 12-month level of business volume by reaching the $274.8 million mark in government contracts for fiscal year 2007, according to Morris Hudson, MO PTAC director based in Columbia. The procurement counseling service is part of the University of Missouri Extension's Business Development Program.
"Our Missouri business clients have achieved a significant milestone by surpassing the $274.8 million mark in government procurement contracts for the past fiscal year that ended Sept. 30," says Hudson.
"MO PTAC procurement specialists around the state were instrumental in assisting their clients collectively reach this new level of business activity with federal, state and local government agencies."
The number of contracts awarded to MO PTAC clients, 1,991, was also a record. The previous best year for government contract volume by MO PTAC clients was FY 2006 when 1,416 contracts were awarded achieving a total of $185.8 million in contract value.
Government agencies awarding contracts include offices from the departments of Defense and Energy on the federal level, the departments of Corrections and Transportation at the state level, and numerous local government offices. Individual contract amounts to MO PTAC clients during FY 2007 ranged from several dollars to more than $20 million.
"The wide variation in contract amounts results from the broad array of goods and services required by the numerous government offices awarding contracts," says Hudson.
Business Going Green
The Missouri Market Development Program
Would your business like to begin or expand the use of recycled materials in the manufacturing of new products and receive grant funding to help?
The Missouri Market Development Program is seeking qualified applicants for up to $50,000 in financial assistance incentive grants. The grants are for the purchase of equipment to be used in final processing of recyclables (excluding metals) for production, or in manufacture of new products using recovered materials as feedstock. A 25 percent match is required from most applicants.
Any individual, private business, non-profit or public institution currently operating in Missouri, or who will be operating in the state as a result of the project, is eligible. All projects must be technically feasible for full-scale operation and comply with all applicable environmental, safety and legal requirements.
The Market Development Program helps ensure that recyclables collected from residents and businesses are used in the manufacture of new products that are purchased and used by consumers. This creates a more sustainable economy for Missouri and at the same time protects the environment, conserves resources and reduces reliance on landfills for solid waste disposal.
The Market Development Program is administered by the state Environmental Improvement and Energy Resources Authority and assisted by the University Extension Business Development Program. In addition to financial incentives, the program provides companies with:
- information about the financial and environmental benefits of using recycled materials;
- help in locating recycled materials that can be used in manufacturing the company's products;
- technical and financial help in adapting manufacturing processes to use recycled materials; and
- assistance in promoting recycled products and services.
Information concerning the availability of recycled materials is provided through the Missouri Recycled Products Directory. Markets for recovered materials can be found in the Missouri Directory of Markets for Recovered Materials. To read about more Show Me Recycling success stories, see the Missouri Recycling Association website at www.mora.org.
For more information, contact:
Missouri Environmental Assistance Center/ Market Development Program
200 Engineering Building North
Columbia, MO 65211
Phone: 573-882-5011
Fax: 573- 884-4297
E-mail: MOEAC@missouri.edu
Web site: www.missouribusiness.net/environmental/market_development.asp
Cool Product Idea! Now What? (Part I)
Lessons learned on product development
Congratulations, you've come up with the next great invention that will take the market by storm and revolutionize our daily lives! You're ready to join a rapidly increasing legion of inventors and entrepreneurs that are turning their ideas into millions of dollars. All the cool kids are doing it. Just check out the reality TV shows "Everyday Edisons" and "American Inventor" or Oprah Winfrey's "Search for the Next Big Idea."
You have a paper napkin sketch. You just need to get it to the engineers and find someone to make it. The cash will start rolling in.
Whoa, Einstein. You'd better take a deep breath and come up with a game plan. There's a lot of research and details to think about before getting the designers involved. According to one of America's most prolific inventors, Thomas Edison, "Genius is 1 percent inspiration, 99 percent perspiration." You have the inspiration, now it's time to get to work.
We're not going to get into a step-by-step product development process here, but rather impart some lessons learned and areas of concentration that will work for first-time entrepreneurs and established businesses. For purposes of this article the product development process will be broken into three phases:
I. Conceptual development
II. Design and implementation
III. Post-product launch
The first phase, conceptual development, lays the groundwork for what is to come. The more effort and thought put into this phase will save time during design and implementation.
Conceptual development
1. Product positioningNo matter how novel your idea, it will be compared to something already on the market. For example, the Segway® Personal Transporter is one of the most unique, innovative and well-publicized products of the decade. Yet, because of its price tag (approximately $5200) it can be compared to four-wheeled ATVs and functionally compared to motorized scooters.
- Identify the competition. Who are you up against?
- How does your product fit in the market? Is it a Cadillac or Honda Civic? Both are great products, but differ on features and benefits.
- How will it compete (price, features, or quality)?
- Identify the target retail price.
- Identify sales outlets (i.e. The "Mart" stores, specialty outlets or Web sites).
2. Brand development and acceptance
Unless you truly have a revolutionary, out-of-this-world idea it will be difficult to gain significant distribution with a single product to your company name. Why? It takes just as much time for a buyer from a nationwide distributor to manage a single-product company as it does to manage a company with a few dozen SKUs (stock keeping units). Buyers are basically graded on their sales generation efficiency. They are not going to risk their jobs by taking on a lot of new, single product brands.
- Having several products in your line-up creates a more legitimate impression to buyers and the end consumer.
- How many SKUs can you get out of one product idea? The next time you're at a home improvement outlet check out how many cordless drills are displayed under each brand name.
- Develop a supporting cast. Consider other products that can be sold with your main product (i.e. cordless drill manufacturers also sell drill and driver bits under their brand names).
- Commodity-type items and consumables will have a lower capital investment than flagship products and more easily allow you to bulk up the product line on a tight budget.
3. Project scope
How difficult is the product development project going to be? If the new product idea is electronic and you don't understand the basic workings of a light switch you obviously will need quite a few contracted resources.
- Identify areas in which you will need help (i.e. engineering design, packaging, manufacturing).
- Is the product a home run (high sales volume, high margin) or a base hit (ok sales, but it will still be selling 15 years later)? Home runs are great, but base hits more often win the game. If you have several product ideas, mix the base hits in with the home runs for better resource allocation. Home-run projects often require a higher capital and time investment than smaller, base-hit projects.
- Estimate the capital expense. If you enlist contract manufacturing, the vendor should be able to give you a ballpark tooling figure without a finalized design.
One thing that can leave a project dead in the water is a possible patent infringement. It's much better to realize this before a lot of time and money is invested in the project.
- Perform due diligence on patent research. Research any infringing patents. Work around infringing claims if possible.
- Enlist the services of a reputable intellectual property law firm.
- Patent research can generate ideas on product features and other products. See where someone else left off.
- All United States utility and design patents are online. Check out www.uspto.gov.
This is the compilation of the research done during conceptual development. The product specification is a living document (i.e. it's not set in stone), but it needs to be completed before beginning the design and implementation phase.
- Acts as a leash for the design engineers. It will keep them from charging in the wrong direction. Marketing, sales, operations and engineering stay on the same page.
- A well-defined product specification reduces the number of iterations during the design and implementation phase.
- Keeps everyone in the loop of progress. Regular project review and reference to the product specification keeps the project on track.
- At a minimum the product specification should identify:
- market channels
- target distribution channels
- competition
- suggested retail price
- estimated annual sales (number of units)
- target cost
- estimated capital investment
- product requirements (i.e. UL, CE approval)
- features and benefits
"Cool Idea! Now What? (Part II)" will discuss design and implementation, and post-product launch.
Send this newsletter to a friend
For more information about doing business in Missouri, visit the Web sites at www.missouribusiness.net or contact one of our service centers. You can find a list at www.missouribusiness.net/sbdc/centers.asp.
Subscribe to this newsletter at www.missouribusiness.net/newsletter_sign_up.asp. Unsubscribe information is found at the bottom of each eNews letter. We will never share or sell your e-mail address to others.
