Business Going Green
Advancing technology with nature's products
Like a magician pulling tricks out of a top hat, Dr. William (Rusty) Suttlerlin takes product after product out of a duffle bag to demonstrate the number of innovative products that come from using renewable products. Sutterlin, along with partner Dr. Galen Suppes, started Renewable Alternatives, a Columbia-based research and development company that develops products containing phase change materials (PCMs), from naturally produced oils, like soybean oil.
"We take advantage of the melting and cooling to be able to control temperature," said Sutterlin. When the PCMs melt from a solid to a liquid, they absorb energy and produce a cooling effect. Likewise, when the PCMs solidify from a liquid to a solid, they produce a heating effect.
The ways that PCM technology is used varies from lifesaving equipment to purely prolonged enjoyment. For example, firefighters could wear clothing with PCMs in order to help regulate body temperature in heat. The PCMs absorb some of the heat, keeping the firefighters cooler longer. Other applications are in stainless steel coffee cups and beer mugs to keep drinks at ideal serving temperatures longer.
Suppes and Sutterlin have developed propylene glycol (nontoxic antifreeze) from waste glycerin, which is the co-product of biodiesel production. Last summer, the Environmental Protection Agency (EPA) awarded Suppes the Green Chemistry Challenge Award. Since the waste product is also now valuable, this helps biodiesel compete as a viable alternative to fuel.
Sutterlin credits various Missouri Business Development Program (BDP) staff for helping him get his business off the ground. "Counselors, such as Jim Gann, Mary Paulsell and Bill Stuby, helped us find possible manufacturers, potential customers, and also acted as a sounding board for our ideas," said Suttlerlin.
The business engaged the counseling services offered by the Missouri Federal and State Technology Partnership (MoFAST) program to help navigate the labyrinth of the federal government's grant application process. Renewable Alternatives was successful in receiving several SBIR and STTR grants.
Jake Halliday and the Missouri Innovation Center helped to provide accounting services and secure space. "The business side is somewhat intuitive," said Sutterlin, "but it is extremely time consuming so it’s nice to have outside help."
EntrepreneurshipWeek USA Launched to Educate Next Generation of Entrepreneurs
Hundreds of organizations will join in an unprecedented effort to inspire and encourage young people to consider entrepreneurship as a career and to celebrate America's unique culture of inventiveness during EntrepreneurshipWeek USA, Feb. 24 – March 3.
EntrepreneurshipWeek USA will include events and activities in communities across the country to inspire, educate and prepare 14- to- 25-year-olds to be America's next great entrepreneurs and innovators. With the theme, "What's Your Big Idea? Take it On!" the initiative serves as an inspiration for young people to think creatively and turn their ideas into actions – whether that means starting a new business, developing an innovation for an existing company or solving a problem that makes society better. Official events are planned in cities across the county.
EntrepreneurshipWeek in Missouri
Missouri Business Development Program service centers plan special activities in association with EntrepreneurshipWeek USA. Two full-day conferences, one in Columbia and one in Osage Beach, will feature a variety of topics and speakers. The conferences will address issues such as start-up, marketing, human resources, financial management and fraud.
Also, Barry Moltz will be offering his irreverent, humorous and straight talk about the complex intersection of start-up business, financial health, physical well-being, spiritual wholeness and family life in three locations over a two-day period. Moltz debunks the myths of business start-ups by telling the truth: You have to be crazy to start a business.
Listed below are Moltz's sessions and the conference's other Missouri BDP offerings associated with EntrepreneurshipWeek USA:
Rolla
You Have to be Crazy: The Inside Scoop of Starting a Business, Barry Moltz presentation
Feb. 26, noon-1:30 p.m.
Warrensburg
Networking
Feb. 27, 9:30 a.m.
You Have to be Crazy: The Inside Scoop of Starting a Business, Barry Moltz presentation
Feb. 27, 10 a.m.-11:30 a.m.
Columbia
You Have to be Crazy: The Inside Scoop of Starting a Business, Barry Moltz presentation
Feb. 26, 6 p.m.-7:30 p.m.
Columbia
In Good Company – A Conference for Entrepreneurial Women
Feb. 27, all day event with multiple sessions and speakers
St. Louis
Winning Government Contracts Seminar
Feb. 26, 9 a.m.-noon
St. Louis
Starting a Small Business in St. Louis: The First Steps
Feb. 28, 1 p.m.-4 p.m.
St. Louis
Brown Bag lunch Series:
- Empowerment Zone Tax Credits (video presentation)
Feb. 26, noon-1 p.m.
March 2, noon-1 p.m.
Osage Beach
2007 Lake Area Business Conference
March 7, all- day event with multiple sessions and speakers
This complete article is online at www.missouribusiness.net/news/eweek_021207.asp
Guiding Your Business Toward Selling to the Government
Helping small businesses enter into the government contracting arena vital to generating employment, improving local economies
Federal, state and local governments spend more than $200 billion annually on various products and services, much of which is with small businesses. So why are so many small businesses reluctant to sell to government agencies?
MO PTAC Results
From Oct. 1 to Dec. 31, 2006, MO PTAC clients received 256 awards totaling more than $68 million
The most common answer is that many small business owners simply do not know how to do business with the government. The solution is to educate small businesses on the procurement process and help them become familiar with the resources available to assist.
Services Available to Business Owners
By an act of Congress in 1985, the Procurement Technical Assistance Centers (PTAC) were established to improve competition in government contracting. Helping small businesses enter into the government contracting arena is vital to generating employment and improving local economies.
PTAC programs offer a variety of services to small businesses to assist in the government contracting process. The first step is to make businesses aware of contracting opportunities that they could fulfill. PTAC programs offer a bid matching service, where a business will be notified by e-mail anytime the government is looking to purchase a product or service that the business provides.
With this information the business can obtain the bid package (also known as a proposal or solicitation package). Bid packages can be rather large and intimidating. However, once a company has obtained the materials, PTAC counselors can provide bid preparation assistance. A counselor will sit down with a client and walk through the entire package, explaining definitions, acronyms (which government agencies are notorious for), regulations, clauses, representations and certifications.
Another service provided is procurement histories. The PTAC counselors can educate a business on what the government has purchased in the past, what business they purchased it from and at what price per unit they purchased it.
Government bid packages often refer to requirements (specification and standards) that are only cited by reference. PTAC counselors can provide the actual specification and standard documents necessary for bidding on these projects.
PTAC programs can educate businesses on different vendor registrations that may be required or highly recommended for government contracting. PTAC counselors can also assist in obtaining the documents online as well as filling out the registrations.
PTAC programs can educate businesses on different incentive programs as well as the certifications required to benefit from such programs. For example, on the federal level there are Small Disadvantaged Business (SDB), Historically Underutilized Business Zones (HUBZone) and Veteran Owned certifications.
State governments may have completely different certifications. For example, the state of Missouri has Minority Business Enterprise (MBE), Women Business Enterprise (WBE) and Disadvantaged Business Enterprises (DBE) certifications. City governments may also have different certifications. The PTAC counselors can help companies determine if they are eligible for any incentive programs and then assist in obtaining and completing the applications.
Electronic commerce has become increasingly prevalent in government contracting. PTAC counselors can help businesses become more knowledgeable with e-commerce issues, including online bidding, registrations and certifications.
Finally, PTAC counselors also offer one-to-one consulting services as well as training seminars and conferences to keep businesses educated on any new procurement topics.
Contacting Your Local PTAC
MO PTAC counselors are located in Kansas City, St. Louis, Columbia, Rolla and West Plains. To contact the one nearest you, go to www.missouribusiness.net/ptac/centers.asp. MO PTAC training seminars are listed at www.missouribusiness.net/ptac/events.asp
Crunching Numbers
Creating realistic projections with the financial projections spreadsheet
Often business owners skeptically view a business counselor's advice about cash budgeting. Their argument is that cash flow for a small start-up or existing small businesses is uncertain, sporadic and unpredictable.
True – no matter how much time and effort you spend on projections, there is a limit to how reliable they can be as a financial roadmap. Moreover, in some cases as you look back, the actual financial statements don't even come close to your estimates. So, why waste time on a futile exercise?
Instead of viewing financial projections as a "prediction" of the future they should be regarded as an exploration of the range of possibilities based on certain assumptions. You can look at different scenarios, including your best-case and worst-case situations.
The value of "number crunching" is that the business owner/manager gets to understand the dynamics of how different elements of the total financial picture are interrelated and to learn what effect changes in some variables can cause. In other words, you can conduct sensitivity analysis. Consider the following: What effect does a few-percentage-point-change in gross margin do to your bottom line? How does a few days difference in accounts receivable influence your cash balance?
All financial assumptions can be divided first into revenue assumptions and cost assumptions.
Revenues can be estimated directly (top-down method) or indirectly (bottom-up method). For example, a direct way for a restaurant to estimate revenues would be to estimate the expected number of customers per lunch and dinner, then multiply these with the average check per meal to arrive at weekly or monthly projected sales figures. An indirect way would be to estimate all the expenses first and then to find the break-even point, which is the sales level needed to cover all expenses.
When estimating costs, we need to first categorize these as investments in long-term assets, expenses, deposits, working capital, pre-paid items, etc. Expenses can be further categorized into one-time start-up expenses (e.g., pre-opening advertising expenses, incorporation fees) and regular monthly operating expenses. You need to start with most certain and regular expenses and then move to the ones where more "guesswork" is needed.
For a financial projections spreadsheet tool is available from: www.missouribusiness.net/docs/fin_proj.xls; the instructions on how to use it are also available there. One of the advantages of this spreadsheet is that it is fully integrated, including loan amortization schedules and depreciation. This spreadsheet tool allows Missouri Small Business Development Centers (MO SBDC) counselors to significantly reduce time spent on dealing with the technical aspects of creating financial projections. In addition, many convenient formatting options are included.
MO SBDC counselors offer a variety of tools and services to assist those wanting to start or grow a business. To find a center near you, visit www.missouribusiness.net/sbdc/centers.asp.
IRS Roundup
Car and truck tax deduction reminders
Ordinarily expenses related to use of a car, van, pickup or panel truck for business can be deducted as transportation expenses. In order to claim a deduction for business use of a car or truck, ordinary and necessary costs must be related to one or more of the following:
- Traveling from one work location to another within the taxpayer's tax home area.
- Visiting customers.
- Attending a business meeting away from the regular workplace.
- Getting from home to a temporary workplace when the taxpayer has one or more regular places of work.
Taxpayers can choose to use either the standard mileage rate or actual expenses to compute their allowable business deduction. It may pay to figure the deduction using both methods to see which provides a larger deduction.
Standard Mileage Rate Method
The standard mileage rate may be used to figure the deductible costs of a vehicle that is owned or leased. A taxpayer must use the standard mileage rate for the first year a vehicle is available for business use in order to use the standard mileage rate in subsequent years.
The standard mileage rate is adjusted annually by the IRS to reflect changes in the cost of operating a vehicle. The 2006 standard mileage rate is 44.5 cents per mile. For 2007, 48.5 cents per mile is applicable.
The standard mileage rate is used in place of actual expenses. Taxpayers who choose the standard mileage rate may not deduct actual expenses (such as depreciation, lease payments, maintenance, gas, oil, insurance or registration fees).
Actual Expenses Method
Only the business use percentage of each expense is deductible. If business use of the vehicle is less than 100 percent, expenses must be allocated between business and personal use. Actual car or truck expenses include depreciation, lease payments, registration fees, licenses, gas and oil, insurance, repairs, tires, garage rent, parking and tolls.
Recordkeeping
The types of records required vary depending on whether the standard mileage rate or actual expenses are claimed.
For the standard mileage rate, records include documentation identifying the vehicle and proving ownership or a lease and a daily log showing miles traveled, destination and business purpose.
For actual expenses, a mileage log helps establish business use percentage. Taxpayers should also retain receipts, invoices and other documentation to show costs. For depreciation purposes they need to show the original cost of the vehicle and any improvements and the date it was placed in service.
For examples, more specifics and links to other relevant publications, see the full car and truck deduction story at www.missouribusiness.net/news/irs_news/irs_news_102606.asp. Additional business tax resources are available at www.missouribusiness.net/irs.
Computer Tip
Create PDF documents fast, free with PDF Online
You're working on a project and need to convert your document to PDF. However, your computer doesn't have the software necessary to make the conversion. PDF Online easily converts several types of documents using your browser. No software installation is required.
Visit www.pdfonline.com and click on "give it a try." Browse to select the filename on your local drive, provide an output filename where asked and your email address. Your converted PDF document is emailed to you. Very handy!
The PDF Online web site is somewhat busy and there is a 2MB limit on file size for conversion, but this tool converts flawlessly, fast and free.
Read the full stories and previous newsletters on our web site at www.missouribusiness.net/newsletter/index.asp
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
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