Success Story: Renewable Alternatives
Missouri researcher aims to develop super-cooling material for combat soldiers
He calls the University of Missouri's Small Business & Technology Development Center "a full-circle service provider."
Dr. Rusty Sutterlin, co-founder and CEO of Renewable Alternatives™ LLC, knows whereof he speaks. The analytical chemist and his Columbia, Mo.-based firm have made considerable progress in both research funding and commercialization of phase-change materials (PCMs) with the help of SBIR-STTR specialists at the MU SBTDC.
Rusty Sutterlin, CEO of Renewable Alternatives LLC, assembles a reactor in his Columbia, Mo., laboratory. He uses the device in the production of phase-change materials for his research..
One of his latest achievements is landing a two-year $750,000 STTR Phase II award from the U.S. Army to develop a super cooling vest for combat soldiers. According to the Army's original RFP the objective is "to develop next-generation PCMs for personal microclimate systems."
To produce a vest that cools sufficiently while limiting power needs and overall weight, Sutterlin is focusing on developing synthetic nano-particles. He envisions such particles would be incorporated into a practical vest allowing soldiers to maintain a self-contained exterior temperature in the 68-70-degrees Fahrenheit range.
"The Army's project director wants us to explore 'pie-in-the sky ideas' to develop the material," says Sutterlin. "The goal of my research is to devise a super-phase-change material that would absorb heat in the range of 1,000-3,000 joules per gram thereby creating the target-range cooling effect." (For comparison, ice absorbs heat at the rate of 333 joules per gram.)
Learn more about how the entrepreneurs at Renewable Alternatives are exploring commercialization possibilities for their work with the help of a dedicated team of tech-savvy business counselors at the Missouri Small Business & Technology Development Center. Visit www.missouribusiness.net/success/renewable_alternatives.asp for the complete story with additional photos.
Entrepreneurs Taking it on the Chin from Gas Prices
When I stopped for gas the other day, I visited with a self-employed home remodeler who watched as the digital numbers on his pump ticked by. It took more than $68 to fill his truck.
As he replaced the nozzle, he told me, "This is killing me. I don't want to pass the cost on to my customers, but soon I won't have any other choice if I want to stay in business." Even by trying to consolidate and plan his trips more efficiently, he's still spending more than $700 a month on fuel. That's a huge share of his bottom line.
For the first time since he's been in business, he's turning down jobs outside Boone County, because the fuel costs cut too deeply into his profits.
He's not alone. More than 90 percent of respondents to a recent national survey of independently owned construction, remodeling, plumbing, heating and air conditioning and landscaping firms indicated that their businesses will suffer significantly due to increased fuel costs in 2008. Consumers have just about reached their limit in terms of paying additional fuel surcharges or increased costs for services.
What's a small business owner to do? They seldom have any kind of reserve to help them absorb the added costs. In addition, they are often the last to get paid when their customers fall on hard times themselves, as many are with rising fuel and consumer goods prices.
To read more about how gas prices are affecting Missouri entrepreneurs, read this complete article at www.missouribusiness.net/ucie/blog/?p=45.
Your local Small Business & Technology Development Center can help find strategies to manage issues facing small businesses.
20th Edition of Skelton Procurement Conference Attracts Small Businesses to Warrensburg
More than 285 registrants and 71 exhibitors participated in the annual Rep. Ike Skelton Procurement Conference May 30, at the University of Central Missouri in Warrensburg, according to Morris Hudson, director of the Missouri Procurement Technical Assistance Centers. The meeting marked the 20th edition of the conference, hosted by Skelton (D-Mo., 4th District), chairman of the House Armed Services Committee.
Director of MO PTAC Morris Hudson (right) greets conference keynote speaker Secretary of the Navy Donald Winter (center) and conference host Rep. Ike Skelton.
"This event (is) a tradition aimed at enhancing economic development by improving access to information for Missouri's small businesses," said Skelton.
Secretary of the Navy Donald Winter, keynote speaker at the conference, praised the small business entrepreneurs who provide vital products and services to the many branches of the U.S. military and to other departments and agencies of the federal government. Also featured on the program was Rear Adm. Sean Crean, deputy assistant secretary of the Navy (research, development and acquisition), who discussed specific issues related to government procurement.
Among the 16 formal presentations at the day-long conference were sessions covering: selling to the government, the Small Business Transportation Resource Center, identifying business opportunities for veterans and service-disabled veterans, and funding business technology research through the SBIR program and angel networks.
Presenters and facilitators included MO PTAC counselors Rich Fyke, Joe Frank, Donna Leonard, Mary Love, Bill Stuby and Jana Weitkemper, and MO PTAC administrative assistant Elaine Palangpour. Other conference participants included members of the Heartland PTAC, the MO SBDC, and the Warrensburg SBTDC staff directed by Wes Savage.
Your local Procurement Technical Assistance Center can help you win government contracts. Appointments may be made for consultations on procurement issues by contacting the PTAC office near you.
Business Going Green
Kansas environmental program offers monthly series on air quality improvement
Small business owners and operators interested in promoting good air quality in their local areas can register for a monthly series of three lunch-and-learn sessions sponsored by the Kansas Small Business Environmental Assistance Program (SBEAP), according to Ryan Hamel of the Pollution Prevention Institute at Kansas State University.
Each session is free and anyone can attend through their computer via a conference call, says Marie Steinwachs, director of the Missouri Environmental Assistance Center. The sessions explore everyday activities that negatively impact local air quality and how individual businesses can help reduce that impact.
The hour-long sessions start at noon the second Wednesday of each month, July through September. Topics include:
- A Lawn Care for Clean Air, July 9;
- Idling Reduction, Aug. 13; and
- Energy Efficiency for Businesses, Sept 10.
Bring your own lunch whether attending in-person or participating through your computer via conference call, Hamel says. Each session will be held at the Johnson County Environmental Department, 11811 S. Sunset Drive, Olathe, Kan.
To register, call SBEAP at 1-800-578-8898 or visit www.sbeap.org for more information.
To find more information to help businesses with environmental compliance, pollution prevention and energy efficiency, visit the Missouri Environmental Assistance Center at www.missouribusiness.net/eac.
SLATE Micro-equity Infusion Program Encourages Start-up Businesses in St. Louis
Six fledgling entrepreneurs in the St. Louis metropolitan area each received a $7,500 micro-equity infusion loan at ceremonies May 20, according to Kevin Wilson, director of the St. Louis region Small Business Development Center. The loans, part of a program to encourage low-income and dislocated workers to establish their own businesses, were made possible by a joint effort of the St. Louis SBDC, the St. Louis Agency on Training and Employment (SLATE), and the City of St. Louis and St. Louis County Workforce Boards.
Attending ceremonies for recipients of micro-equity infusion loans May 20, at SLATE headquarters in downtown St. Louis were (left to right): Bill Grafeman, Bonnie Mireles, Trish Gregory, Jerry Roellchen, Roz Singleton and Robert Spence. Mireles, business services manager for the SLATE Career Center, administers the micro-equity infusion program. The sixth loan recipient, Michael Mascus, was unavailable for the photo.
The six new business owners completed a FastTrac New Venture class conducted by the St. Louis SBDC earlier this year. An advisory board selected the loan recipients from a field of 10 applicants using rigorous criteria that assessed: the quality of each entrepreneur's business plan and its implementation; the strength of additional start-up resources for each venture; each individual's business judgment and insight; and the clarity of each applicant's presentation to the board.
"These six people have worked hard, met stringent standards and demonstrated the drive and determination necessary to successfully start and maintain a business venture," says Wilson.
The six micro-equity loan recipients and their businesses: Bill Grafeman started a home inspection franchise; Trish Gregory opened a retail health supplement store; Jerry Roellchen developed a special device to help train hunting dogs; Michael Mascus invented a GPS device for cell phones to aid golfers; Roz Singleton started a spa; and Robert Spence established a restaurant.
The loans will be administered by SLATE and recipients will submit invoices monthly for review by the agency.
Contact the SBDC near you to talk to one of our business specialists about your plans to start a business or discuss the challenges you face in operating an existing business.
Three Strategies for Preserving Start-up Capital
The Small Business Administration says the second most common reason new businesses fail is a lack of sufficient capital to sustain the business until it becomes cash-flow positive. (The most common reason for failure is lack of front-end planning.) On average, successful businesses become cash-flow positive around the middle of the second year of operation. Start-up capital must last that long. Three strategies can help star-tup money go further.
Strategy #1:
Buy your secondary equipment in the secondary (used) market. There is essential equipment that a business cannot survive without, such as a working camera for a photography business. Consider buying such essential equipment new. However, spend less for supporting items such as lenses, costumes, props and screens by buying them in a secondary market. Making start-up money last by spending less on equipment could also provide a competitive cost advantage.
Be creative and determined when locating a secondary market; it's time and effort well spent. Here are some starter ideas. Search EBay. Read industry Web sites. Visit area bankers; they may have repossessed equipment or know a fellow banker who has. Find an industry trade magazine with classified ads. Call manufacturers about discounted demonstration or repossessed units. Visit competitors outside your trade area (inside it if you're brave). They might have upgraded a piece of equipment and need to sell the old one. In all cases try to negotiate a warranty and return policy.
Strategy #2:
Use the economic law of diminishing returns to your advantage. Most industries have a variety of equipment available across a range of costs and performance quality. Usually it does not take much extra money to get a significantly better unit than the cheapest one available. However, there comes a point where gaining small amounts of additional performance (or quality) only comes with a steep additional cost. Consider equipment priced at or just below that point, it's where you get the "most bang for your buck." Using a clothing analogy, store-brand jeans cost about $15. Levi's jeans cost about $40 and Italian designer jeans cost about $150. I'll wear Levi's.
Strategy #3
If your building only needs makeup, don't give it plastic surgery. Have you seen TV shows where designers give a room a completely new look for about $1,000? Let them provide inspiration. There are at least three reasons for minimizing upfront spending on a building. First, once spent that money is gone...you can't access it later for operating the business. Second, you're just starting a business. As you gain experience you may determine that your original remodeling plan wasn't optimized after all. Third, unless you're a landlord, your building is not making you money. Prioritize spending for things that will actually earn money.
When you're in business for yourself, remember that it's your money. Spend it like it's your money. And try to save some start-up capital for a rainy day. There's always a rainy day (or rainy season) coming.
Your local Small Business & Technology Development Center can help entrepreneurs with start-up, growth and technology issues.
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