Minutes of StartWest Meeting April 8, 2008
April 22nd, 2008 Posted in Meeting and MinutesStartWest Meeting
April 8, 2008
Sheridan College
Whitney Building, Room 150
Welcome
Introductions/New York Minute:
- Anne Gunn, Co-Chair of StartWest: Reminder to continue to check the website for updates: www.startwest.net. The purpose of the website is to create an e-community for StartWest members to post interesting articles and news, and provide updates, as it isn’t always practical or convenient to meet face-to-face. Also, note that the website address is .net, not .com—.com will take you to a tattoo blog.
- Deb Anderson, Regional Manager at SolveIT, an IT outsourcing company: SolveIT is a great resource to solve IT problems for various businesses. Deb will be making a presentation at a conference in October and would like to present the information to StartWest prior to the conference presentation.
- Ace Young, PR manager for RENEW: RENEW has hired additional PR staff; Ace is excited about the additional PR staff and promoting RENEW. RENEW is online in Gillette, and has been working with wireless and Mac technologies in the PR department.
- Anita Pinkham, Entrepreneur: is looking for entrepreneurial opportunities and networking.
- Alan Telck, AgTerra: AgTerra uses digital pen/paper technologies and voice recognition technologies for agriculture and agribusiness applications.
- Sam Fletcher, Astec: Sam holds a PhD in molecular biology. In addition to his work at Astec, he is active in his family’s construction business.
Sheridan College Entrepreneurial Program: Cindi Thiede, VP of Program Development at Sheridan College
Sheridan College has created an entrepreneurial advisory group in anticipation of launching a new Entrepreneurship Program at the College. Sheridan College is innovating to become entrepreneurial, helping students prepare for entrepreneurial opportunities and helping the community in new and different ways. The entrepreneurial advisory group started in October 2007, and the College is looking to expand this group, especially as they assist in recruiting for a new position.
Sheridan College is looking to hire a director for the new Entrepreneurial Program. Cindi brought a job description for the group; this description is available on the StartWest website and the Sheridan College website. The person hired for this position will assist the College in forming partnerships for entrepreneurship and collaborations within the community, assist in forming an incubator or expanding the incubator outreach program offered by the Wyoming Technical Business Center, raise funds for the program through grant opportunities and fundraising, assist start up businesses and individuals beginning new ventures, and investigate venture capital funding potential. Since this is a brand-new position and a new program, the director hired has flexibility to take this program in many directions. The director must be comfortable finding resources, developing and teaching entrepreneurial curriculum, and working in the community with entrepreneurs. The right candidate is someone who has experience with entrepreneurial endeavors—successes and failures—who can share their lessons with students; the right candidate should have their feet in both academia and the business world. Currently, the College is reviewing applications for this position, and will begin interviews next month.
Sheridan College is also looking to expand their Entrepreneurial Program into an Entrepreneurial Center as the Big West Center is built. There are currently plans for an Entrepreneurial Center in the design of the Big West Center; fundraising for the construction of the Big West Center will also be a part of the new Entrepreneurial Program director’s job duties.
Anne asked about the current entrepreneurial course offerings at Sheridan College; Cindi replied that there are some business and marketing classes offered currently, but that new programs will be developed. SIFE (students in free enterprise) has a business and entrepreneurial curriculum. New courses are constantly being developed at the College; for example, there are business classes that are geared toward artists, helping them market and sell their wares. However, courses like marketing and accounting are standard offerings. The new Entrepreneurship curriculum will be based in part on business outreach and current business needs.
Sam asked if there will be a degree program in entrepreneurship; Cindi confirmed that this is the path that the program will pursue. The College will also investigate additional options for the entrepreneur curriculum, like an emphasis program for artists or an executive entrepreneurial curriculum. Anne asked if there is a possibility to continue this programming through to an executive MBA degree program; Cindi replied that Sheridan College cannot offer an MBA program; however, businesses are looking for shorter term, results focused programs. The degree and program needs of businesses are a topic frequently discussed by the entrepreneurial advisory group—those interested in this topic should contact Cindi to participate in this group. Sam asked if Sheridan College can have an affiliation with University of Phoenix or another online degree program to tie this entrepreneurship program into an existing online MBA program. Cindi is working on the articulation of credits so that all degree credits from Sheridan College will transfer to other colleges and universities.
Novel Composite Materials—Funding Approaches for Research and Development for Small Businesses: Mark Weitz, Kennon Covers; Co-Chair of StartWest
This presentation is in the spirit of education, to combat the “I didn’t know they did that in Sheridan.†Kennon makes protective equipment for aircraft. The company was started by Ron Kensey in his garage. Kennon started out manufacturing sunshields that were designed to fit inside of cockpits; now, Kennon manufactures winter protective covers, covers for transporting planes to protect paint, space shuttle covers, and dust covers to protect engines and turbines.
Kennon is pursuing new developments in composite materials for a project. The Navy has a new plane (the V22 tiltrotor Osprey) with the ability to lift off like a helicopter and to fly like an airplane. However, there were issues with the insulation in this new plane—the insulation material was supposed to snap into studs installed in the airplane airframe; however, the insulation wouldn’t stay in place. The studs installed into the framing were fragile, and were often broken by crew. Often, when the studs broke, the framing of the airplane was broken also. To circumvent this problem, the Navy stopped installing insulation into these airplanes until a solution could be found. The Navy solicited a solution through the SBIR program—through the SBIR process, federal agencies can solicit small businesses for innovative solutions to their needs. Kennon collaborated with the University of Wyoming to prepare a proposal to the Navy for this project. Kennon applied for a phase 0 SBIR grant ($5000) to create a proposal to the Navy for this project; Kennon was awarded the phase 0 grant, and used the funds to speak with Navy representatives in Maryland about this issue. In speaking to the Navy, Kennon discovered that the issue was not just the attachments for the insulation, but the insulation itself was ill-fitting into the airplanes.
Kennon proposed a new anchor and insulation system, not simply a new anchor system. The contacts that Kennon made with the phase 0 grant funds have allowed them to make a successful phase I grant funding proposal. Phase I funding has allowed Kennon to begin designing conceptual models to test how things work. Kennon built prototypes on testing equipment in partnership with UW; in testing prototypes, it was discovered that the simple prototypes worked best. Testing prototypes generated tons of data and trends to be presented as part of their prototype research. Kennon also developed prototypes locally; Kennon contracted with Craftco to fabricate prototypes locally. While visiting with the Navy to discuss the insulation anchor system, Kennon was able to plant the seed questioning the entire insulation system. When Kennon approached the Navy to discuss innovations to the anchor and insulation system, they also asked if ballistic protection would be of interest, adding another dimension to the project. Ballistic materials that can protect people and airplanes became a high priority project for the Navy. Kennon is now working to create a composite, modular ballistic material to use for aircraft. Kennon has partnered with other groups to investigate post-Kevlar ballistic technologies. Steel, titanium, and ceramics are all currently being used; however, material weight is a concern. Oftentimes, military transport operations must choose between armor and manpower. An understanding of energy transfer is important in developing ballistic materials; Kennon can’t wait to develop prototypes and to start shooting.
The project that began as a simple anchor installation system for insulation of airplanes is taking on another life, with various other applications being investigated to solve additional problems that may not have even been thought about previously. This project illustrates the crucial question of how to grow and fund small businesses. Big companies used to have big research centers, with government funding and universities working on various projects. However, businesses started “right-sizing†and cutting back on research facilities to reduce overhead. The researchers didn’t stop researching, but instead changed their focus to consulting, selling their research services back to big businesses. This changed the structure in how businesses research and develop new ideas. Small business research grants have been restructuring business research, allowing small businesses to participate in the research process. The SBIR program is not the only program out there; however, it is a prominent program. In the SBIR program, teaming up and partnering are encouraged; it is important that individuals and small businesses protect their intellectual property.
Cindi asked if the grant process is easy; Mark replied that it is a competitive process. Companies must make a compelling argument for their grant. However, the State of Wyoming offers many seminars, sample grants, and mentors to make the SBIR grant process understandable and successful for businesses. There are training funds available to cover the costs of education. The easiest way to start an SBIR grant is to dive in. Patience and perseverance are necessary virtues—government moves very slowly and it takes time to receive grant funding. However, there is a benefit—small companies can turn on a dime to develop new ideas and products quickly. Government, universities, and large businesses are realizing that partnering with small businesses and the SBIR process is a win/win for all involved. Government entities now have required quotas to encourage work with small businesses. Small businesses are the economic engine of America—they are the source of innovation and new jobs.
There are several resources available to those interested in SBIR grants:
· University of Wyoming: www.uwyo.edu/sbir
· www.fedbizopps.com (BAA’s—Broad Agency Annoucements)
· StartWest: www.startwest.net
Wyoming is one of the first rural states that set up a rural outreach program to educate businesses about the SBIR program. When the SBIR program began, Wyoming was 51st in receiving SBIR grant awards; however, after the outreach program was established in the early 90’s, Wyoming quickly moved into the top 50% of states receiving SBIR grants. Wyoming started offering phase 0 grants as part of the outreach program—phase 0 funds allow small businesses to receive training and fund time to write grants. Phase I grants generally offer $70,000 to $100,000 for a years work on a project; phase II grants can top $1 million. Phase II grants don’t quite get an idea or product to commercialization; Phase III grants are being considered to assist businesses in taking their product or idea to commercialization. However, there are bridges between all of the grant phases and product/idea life stages; if a product or idea can’t make it to commercialization, you’ve wasted money.
Sam asked if winning a $5000 phase 0 grant helps; $5000 doesn’t seem like a lot of money. Mark replied that winning a $5000 grant helps with the costs associated with writing a proposal—training, traveling to meet with those soliciting the grant, or research. Small businesses could invest in the grant proposal themselves, but why spend company dollars if there is government or grant funds available.
Sam asked if Mark had pursued STTR grant funds. STTR funds require a large portion of work and research be done by someone in academia; professors tend to approach small businesses to request a partnership for a project utilizing STTR funding. Although the STTR application process is not as intense of a process, a professor or academic must provide 50% or more of training on a project. Sheridan does have an experienced SBIR community—Zach Gray, Ernie Schmidt, Mark Weitz, Inner-Mountain Laboratory, and others have all pursued SBIR funds. Sheridan is the #2 area in the state in receiving SBIR grant funding. There is a lot of local support for SBIR funding; SBIR funds can be an excellent way to receive seed capital.
Sam asked for Mark’s opinions about venture capital; Mark has discovered that there’s no reason to sacrifice equity in a business for funding, particularly when there are government funds available. It’s also very difficult to find venture funds very early into the research and development process; venture capitalists are looking for things that they can produce and market quickly so later-stage projects are appealing. Cindi asked if there are angel networks in Wyoming. There are; however, they are very new. Heidi Petersen, executive director of WIN (Wyoming Innovations Network), will be assisting to publicize and market the existing angel network in Wyoming. WIN took over the Wyoming Technology Network, the Wyoming Angel Investment Network (based on a Colorado angel network, the Wyoming Angel Investment Network matches angels to businesses), and VentureWest (this group invites angels and businesses to meet and lets things naturally progress). Heidi Petersen will be in Sheridan in May or June to speak; StartWest will publicize the event.
The Wyoming Technical Business Center, in partnership with the University of Wyoming and the Wyoming Business Council, offers the Research Products Center. The Research Products Center can assist with market research, product information, intellectual property questions and information, and other things. A referral is needed to the Research Products Center; however, they will generate data and reports that can assist businesses in determining if and what the market is for their products and services. Anne will generate a posting for StartWest listing contacts and resources for WIN, the Wyoming Technical Business Center, and the Research Products Center. The Small Business Administration (SBA) can also assist in referring organizations to the resources that are available.
Ace asked how incubators can affect the research and development process; Mark has not been involved in incubators, as the only ones that he’s found have been brick and mortar buildings. He has not seen a virtual incubator; however, the Wyoming Technical Business Center has started an outreach program to provide assistance to companies.
Other: Anne mentioned that there needs to be a program committee to schedule meetings, arrange speakers, and to plan the next StartWest meeting. Mark, Cindi, and Deb are all willing to assist with this. Anne will work with Mark Thoney to set up a conference call for all program committee members and interested parties. The group discussed continuing the theme of what Sheridan companies do—Alan could present AgTerra and Sam could present Astec at the next meeting.