Success Story: InnovaPrep LLC
Aerosol researchers develop technology to aid detection systems for biodefense, diagnostics, food and beverage industries
The prospect of bioterrorism has been a concern in our nation since the terrorist attacks on New York City nearly eight years ago. Since then civilian and military authorities have sought increasingly sophisticated approaches to biodefense and biohazard detection.
Andy Page, president of InnovaPrep LLC, holds a vial of fluorescent microspheres used to simulate bacteria and viruses during initial development and testing of the InnovaPrep system.
In a small Missouri town about 35 miles south of downtown Kansas City innovators are working on the problem.
A science and engineering team led by entrepreneurs Dave Alburty and Andy Page is developing a contaminant detection technology that uses unique methods to concentrate large initial sample volumes into very small final volumes for analysis. Their InnovaPrep system was originally developed for several U.S. government biodefense detection systems, according to Alburty, founder and president of AlburtyLab Inc. based in Drexel, Mo.
"The InnovaPrep system was principally designed for concentrating biological particles — such as proteins, toxins, viruses, DNA and bacteria — in the size range of approximately 0.001 micron to 20 microns in diameter," says Alburty.
At InnovaPrep LLC (a new company started as a result of the work done at AlburtyLab) the research team is developing detection-aiding devices intended for commercialization. Each is designed to help biohazard investigators analyze samples from various sources, such as solid surfaces; dry filters; fruits, vegetables and other irregularly shaped objects; and liquids.
The InnovaPrep process fills a need for automated systems capable of concentrating and preparing samples for analysis for multiple applications ... not only bioterrorism defense, but also medical diagnostics, pharmaceutical production, and food and beverage quality control.
"We started in 2005 in the biodefense field doing some testing of air samplers used for bioterrorism defense," says Alburty. "I had recently left my engineering position at MRI (Midwest Research Institute) in Kansas City and saw the crying need for some company to do quick turnaround, small projects and to do the R&D behind the development of the aerosol collection technology."
Read the complete InnovaPrep success story with additional photos.
Good Advice for a Bad Economy
According to recent findings by the National Federation of Independent Business (NFIB), small business owners are far less likely than in earlier years to: borrow money; invest in expansions, equipment, or new facilities; or hire additional employees. Entrepreneurs seem to be waiting for the economy to change directions before taking advantage of any current growth opportunities.
That being said, there are some things a small business owner can do to improve the bottom line without risking more losses in these troubled times.
Accentuate the positive. In every economic down cycle, there are people who come out the other side positioned better than they were when it started. The more positive and upbeat the office attitude, the more likely company goals can be met. Or put another way, there is no upside to a defeatist attitude. People act on their expectations. (You wouldn't bring an umbrella to work if you didn't expect it to rain.) Encourage your people to expect business to be good and they will act accordingly. As your customers see this, they also will act accordingly.
Focus on the basics. Now is not the time to add lots of bells and whistles to pick up a bigger piece of the market share. Concentrate on doing what you do well, and do it even better. This is probably what brought your customer base to your business in the first place. Ask yourself: "Why do the customers I have now come to my place of business rather than to my competitors? What am I doing that they are not? Or, what am I doing better than they are?"
This is your competitive advantage. Work on this. Work on basic marketing. Work on basic customer service. The time you spend during the slow periods on polishing your basic skills will not be wasted. These same skills will serve you well during the fat times too. Moreover, by working on the basics of keeping your current customers happy, you just might pick up some new customers from your competitors who have panicked and strayed from the basics.
Do what you can do. Borrowing a principle from The Seven Habits of Highly Effective People. Don't waste time and energy worrying about the price of crude, or the housing surplus, or what the stock market closed at today.
Read the rest of this article on advice for a bad economy.
Kauffman Foundation Study Suggests Entrepreneurial
Silver Lining in Today's Economy
KANSAS CITY, Mo. — According to a new study by the Ewing Marion Kauffman Foundation, challenging economic times can serve as the rebirth of entrepreneurial capitalism, leading to the creation of much-needed new jobs.
The study — "The Economic Future Just Happened" — found that more than half of the companies on the 2009 Fortune 500 list were launched during a recession or bear market, along with nearly half of the firms on the 2008 Inc. list of America's fastest-growing companies. The report also suggests a broader economic trend, with job creation from startup companies proving to be less volatile and sensitive to downturns when compared to the overall economy.
"You can see the story of the American economy in these numbers," said Carl Schramm, president and CEO of the Kauffman Foundation. "History has demonstrated this time and again: new firms create new jobs and fuel our economy. Policies that support entrepreneurship support recovery."
The study points out that while recessions often create widespread economic grief, they also can encourage potential entrepreneurs, acting "as an extra spur to founding a new company, if the founders perceive their prospective competition might be weakened."
Rising unemployment can benefit new enterprises: entrepreneurs may view unemployment as an opportunity to start a company, and seize the advantage provided by the ability to tap into a larger pool of potential employees.
"While startups may not begin with the intention of reaching the Fortune 500 list, they're hard at work under the radar," said Dane Stangler, senior analyst at the Kauffman Foundation and author of the study. "These companies may remain invisible to most of us, or they may one day grow into household names. Either way, they're steadily recreating our economy-generating jobs and innovations."
Stangler said companies that reach the Fortune 500 and Inc. lists demonstrate the strength and flexibility of successful entrepreneurial enterprises.
"We imagine the Fortune 500 to be giant dinosaurs lumbering across the landscape," Stangler said. "That's not the case. The turnover and churn on the list is remarkable. Successful, big companies have to be entrepreneurial, and they are."
Business Going Green
Columbia restaurant owner overcomes economic downturn to showcase appealing, environmentally friendly cuisine
There was a time in American history when people knew exactly where their day's meal came from, when they said good morning to the farmer who sold them corn and good afternoon to the butcher who cut their meat. Such memories are the basis for Columbia-based restaurateur Leigh Lockhart's passion for supporting local food vendors and producers.
Two women enjoy their vegetarian fare at Main Squeeze.
"I grew up in Kirkwood and I loved to buy food from the local butcher's shop and grocer," observes Lockhart, owner of the Main Squeeze. "I love farmers. They are great people who are good to the environment."
With this in mind she has created a restaurant that is not only an homage to pre-corporate America, but an example of a greener future.
Main Squeeze's unique menu of delicious, mostly local and organic food, and it's décor of recycled tables and chairs and local art make it a hot spot for many kinds of diners. It appeals to the young hipster who wants to step away from corporate chain restaurants and be a part of a more authentic experience. It also draws the civic minded who want to support local farms and businesses. And it attracts customers who simply appreciate whole, healthy food. Nevertheless, Main Squeeze came close to closing in November as the bottom fell out of the economy.
Read the complete going green story on Main Squeeze.
SBA News
SBA offers low-interest loans to Missouri victims of severe weather in May
SACRAMENTO, Calif. — Low-interest disaster loans are now available to residents and businesses in 28 Missouri counties hit by severe storms, tornados and flooding in May. The loan availability is the result of President Obama's recent federal disaster declaration, according to Karen G. Mills, administrator of the U.S. Small Business Administration.
The declaration covers Adair, Barry, Barton, Bollinger, Cape Girardeau, Christian, Dade, Dallas, Dent, Douglas, Greene, Howell, Iron, Jasper, Jefferson, Laclede, Lawrence, Madison, Newton, Ozark, Polk, Reynolds, Ripley, St. Francois, Shannon, Texas, Washington, and Webster counties, which were hit by severe storms, tornadoes and flooding that occurred May 8-16, 2009.
"The U.S. Small Business Administration is strongly committed to providing the most effective and customer-focused response possible to assist Missouri homeowners, renters, and businesses of all sizes with federal disaster loans," said Mills. "Getting our businesses and communities up and running after a disaster is our highest priority at SBA."
Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.
Businesses of any size and private, non-profit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. SBA can also lend additional funds to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.
For small businesses and most private, non-profit organizations of any size, SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business or non-profit suffered any property damage.
Interest rates can be as low as 2.437 percent for homeowners and renters and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by SBA and are based upon each applicant's financial condition.
To be considered for all forms of disaster assistance, victims must first call the Federal Emergency Management Agency (FEMA) at 800- 621-3362. As soon as Federal-State Disaster Recovery Centers are opened throughout the affected area, SBA will provide one-on-one assistance to disaster loan applicants. Additional information and details on the location of assistance centers is available by calling the SBA Customer Service Center at 800-659 2955.
IRS Roundup:
ARRA of 2009 provides energy tax incentives for businesses
The American Recovery and Reinvestment Act (ARRA) of 2009 provides a number of energy tax incentives for both small and large businesses. Businesses and individuals who take advantage of these energy-saving steps this year may see bigger tax savings next year, according the Internal Revenue Service.
Here are some of the major provisions that apply:
- Extension of Renewable Energy Production Tax Credit: This law extends the "eligibility dates" of a tax credit for business facilities that use wind, closed-loop biomass, open-loop biomass, geothermal energy, municipal solid waste, qualified hydropower and marine and hydrokinetic renewable energy. The "placed in service date" is now Dec. 31, 2012 for wind facilities and Dec. 31, 2013 for the other facilities.
- Election of Investment Credit in Lieu of Production Credit: Businesses that operate facilities that produce electricity from wind and some other renewable resources after Dec. 31, 2008 can now choose either the energy investment tax credit or the production tax credit.
- Repeal of Certain Limits on Business Credits for Renewable Energy Property: ARRA repeals the $4,000 limit on the 30 percent tax credit for small wind energy property and the limitation on property financed by subsidized energy financing for property placed in service after Dec. 31, 2008.
- Coordination with Renewable Energy Grants: Business taxpayers can apply for a grant in lieu of claiming either the energy investment tax credit or the renewable energy production tax credit for property placed in service in 2009 or 2010.
- Temporary Increase in Credit for Alternative Fuel Vehicle Refueling Property: Qualified property placed in service in 2009 and 2010 is now eligible for a 50 percent credit, and the per-business location limit increases to $50,000. Property relating to hydrogen remains at the 30 percent rate, but the per-business location limit rises to $200,000.
In addition, there are several other energy credits available that small businesses should be aware of, such as:
- Residential Energy Property Credit: The new law increases the energy tax credit for homeowners who make energy efficient improvements to their existing homes. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010. The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems.
- Plug-in Electric Drive Vehicle Credit: The new law modifies the credit for qualified plug-in electric drive vehicles purchased after Dec. 31, 2009.
- Plug-In Electric Vehicle Credit: The new law also creates a special tax credit for two types of plug-in vehicles — certain low-speed electric vehicles and two- or three-wheeled vehicles.
More information on these business energy tax incentives is available at IRS.gov.
Did you know ...
... What is the survival rate for new firms?
Two-thirds of new employer establishments survive at least two years, 44 percent survive at least four years, and 31 percent survive at least seven years, according to a recent study. These results were constant for different industries.
Firms that began in the second quarter of 1998 were tracked for the next 28 quarters to determine their survival rate. Of special interest, the research found that businesses that survive four years have a better chance of surviving long-term. After the fourth year, the rate of firm closings declines considerably.
Earlier research has found that the major factors in a firm's survivability include an ample supply of capital, being large enough to have employees, the owner's education level, and the owner's reason for starting the firm.
... Now you know.
Send this newsletter to a friend
Visit www.missouribusiness.net/newsletter to read previous newsletters archived on our Web site.
For more information about doing business in Missouri, visit MissouriBusiness.net or contact one of our service centers.
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.
