Author: Erica Crell

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Entrepreneurial Profile: The Central Firm – M2

The Central Firm, led by M2 (pronounced “Em-Squared”), evaluates and analyzes a company’s current operating expenses and recommends ways to reduce costs.

M2 is a native Delawarean. She graduated from the University of Delaware and Delaware State College. She is retired military and served in the Middle East for 20 years.

Upon her return to the US, M2 noticed discrepancies in the fine print in service contracts and agreements that didn’t align with the original sales promises. She saw the need for expense analysis for businesses and The Central Firm was created. The Central Firm is a boutique concierge consulting firm which offers tools and services to assist and support businesses by offering evaluative and metric driven advice. The Central Firm uses proprietary methodology that reviews, evaluates, and advises systematic strategies to improve operational effectiveness like cloud hosting, VoIP, water/sewer, managed services, etc.

M2 does acknowledge that her greatest challenge is getting past gatekeepers to the decision-makers in order to begin the process of presenting her success rates as a newly created, female, small technology business. The Central Firm has already proven a success rate for a current client by reducing their operating expenses by 27%.

The Central Firm aims to work with the State Department in the near future and when current projects can support it, she also plans to work with University interns to support clients. M2 says, “The EEC has provided us with invaluable advice and mentoring to help solidify our value proposition which has helped increase business opportunities. Since joining the EEC, we have made some great contacts that are sure to be rewarding in the near future.”

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Why Continuous Learning Matters

Written by Dora Cheatham, Program Manager, Emerging Enterprise Center

“It does not matter how slowly you go as long as you do not stop.”  Confucius

When I first entered the world of business more years ago than I care to remember, it was a very different place.  Word processors were just making an appearance and sending a fax was the ultimate in high speed communication, the internet barely existed, and Amazon wasn’t even a glimmer in Jeff Bezos’ eye.

Fast forward to 2018 and while the basic principles of business remain the same, the way we DO business is infinitely different. Technology has changed how we make decisions and embark on a strategic direction, how we execute on strategy, how we transact business, how we communicate. Equally, we have access to more informational and educational resources than ever before. For the small business owner today – more than ever – to ignore the need for continuous learning is to remain stagnant at best, fail at worst.

The Emerging Enterprise Center’s Business Growth Workshops hone in on business processes that every small business and entrepreneur needs while tying into the ever-evolving business environment.  Among these:

Marketing & Communication:  30 years ago, sales and marketing were almost synonymous and advertising represented the main thrust of the marketing and sales effort.  Today the world of sales and marketing couldn’t be more different, yet too often small business owners still believe that, as long as they market their product or business “customers will come”.  This couldn’t be further from the truth, so it is critical that new entrepreneurs as well as small business owners are clear in their own minds of the differences between strategic marketing, marketing communications, advertising, and sales so that they can develop and implement a sustainable business growth plan.

Selling Value:  Probably the toughest thing for first time – and sometimes serial – entrepreneurs to grasp, is the difference between selling a PRODUCT or SERVICE and selling VALUE.  Entrepreneurs and innovators, rightly, are passionate about their product and their passion is reflected when they speak about it.  What it can do, how it can do it, how it was developed, the features, the benefits.  The more clearly those features and benefits can be articulated into end user value, the less important price becomes as a part of the sales equation.  This translates into a more valuable business model that generates greater revenue.  To quote Warren Buffet:  “Price is what you pay, value is what you get.”    Are you clear about the value that you are providing to your customers?

Innovation: “Innovate or die” has become a 21st century mantra and rightly so.  Failure to innovate led to the slow demise of companies like Eastman Kodak, Blockbuster, Sears and, more recently, Toys ‘R’ Us.  In today’s world of rapid technological development, changing tastes and increasing competition, product life cycles are becoming shorter and shorter.  Businesses that fail to update are gradually squeezed out of the market.  Innovation doesn’t have to be disruptive – it can be gradual and incremental.  The key is to remain relevant!

Globalization:  Globalization can be a hotly contested topic but has nevertheless had a profound impact on business with increased competition, expanded markets, increased resources, technology transfer.  The increased ease with which business can be transacted internationally means that even the smallest of businesses can access customers and markets which in the past may have seemed unreachable, either directly or through strategic business alliances.

In the end, while ignorance – at times – can be bliss, when running a business, it can be fatal.  As a business owner, I’m all too aware of the fact that the first step to growing a business is the ability to acknowledge that “I don’t know what I don’t know.”  So I make sure I continue to learn.

For more information on the Emerging Enterprise Center’s Business Growth Workshops, contact Erica Crell at (302) 294-2063 or via email.

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Calling all Nominations and Applications!

The New Castle County Chamber of Commerce and the Emerging Enterprise Center are looking for nominations for the David J. Freschman Entrepreneur of the Year Award. This award along with the Entrepreneurial Advocate of the Year Award and the NCC Innovates Sponsorship Award will be presented at the 1st Annual Delaware Entrepreneurial Summit on July 12, 2018. Please refer to the website for eligibility criteria and nominate a winner.
David J. Freschman
ENTREPRENEUR 
OF THE YEAR
The newly launched New Castle County Innovates Sponsorship Award is developed by the New Castle County Department of Economic Development. NCC Innovates is a program that identifies opportunities to specifically support economic development through entrepreneurship.
Through NCC Innovates, New Castle County will sponsor a 1 year membership to the Resident Incubator a the New Castle County Chamber of Commerce Emerging Enterprise Center.

Supporting local entrepreneurship and attracting new companies to New Castle County are key elements in the development of a strong innovation ecosystem. The Emerging Enterprise Center provides direct mentoring and
support for local startup companies.

The application review process and selection of a winner will be managed by the Emerging Enterprise Center Advisory Board. 

Specifically, the award covers, Office space (single office) at the Emerging
Enterprise Center, Wi-fi & telephone service (one VoIP per
employee-unlimited minutes), Mail service, Fax/photocopier, Beverage station/kitchen access, 24/7 access to facilities, Access to meeting and conference rooms, Business idea execution guidance & coaching with
one-on-one mentoring via the Growth Wheel®, Platform, Business Growth Workshops and Training, Business networking and connectivity, and a one year membership in the New Castle County Chamber of Commerce

 

The last award, the Entrepreneurial Advocate of the Year, will be chosen by an appointed New Castle County Chamber of Commerce Committee and the Emerging Enterprise Center Advisory Board. The New Castle County Chamber of Commerce would like to recognize a member of the Chamber that have exemplified the entrepreneurial spirit and supported the efforts of the NCC Chamber. This award is presented to someone that has participated in programs and activities that support early stage business, been active in supporting entrepreneurial activity for at least three years, demonstrated an active level of participation in the local  community, and is an active supporter/participant of the NCC Chamber.

The purpose of these awards is to not only recognize businesses and advocates successes right here in New Castle County but to pause for a moment and celebrate the entrepreneurial spirit.

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Details Released for the 2018 Delaware Entrepreneurial Summit

The Emerging Enterprise Center and the DE Small Business Development Center announced that Chuck Nunan, serial entrepreneur and CEO and Founder of Harvest Ridge Winery will be the keynote speaker at the 1st Annual Delaware Entrepreneurial Summit to be held on July 12, 2018 at the DoubleTree by Hilton on Concord Pike.

“As someone who knows what it is to be an entrepreneur and start a business from scratch, Chuck is an ideal keynote for this event,” says Dora Cheatham, Director of the Emerging Enterprise Center.  Harvest Ridge Winery started with its first grape varieties planted in 2011.  These included

Chardonnay, Viognier, Malbec and Merlot.  Today there are 20 acres under cultivation.

Above: Chuck Nunan, Founder & CEO of Harvest Ridge Winery will be the keynote speaker at the 1st Annual Delaware Entrepreneurial Summit.

The Delaware Entrepreneurial Summit is a full day, high impact event that is aimed at bringing together entrepreneurs, resource providers and mentors with a goal to supporting entrepreneurs and accelerating business growth.  The day will include workshops geared towards both general entrepreneurs and tech/science-based entrepreneurs, a tabletop expo of resource providers to the entrepreneurial community, numerous networking opportunities, and an awards luncheon.  Among the awards will be the New Castle County Chamber of Commerce David J. Freschman Entrepreneur of the Year of Award and Entrepreneurial Advocate of the Year Award and the NCC Innovates Sponsorship Award which is offered through the newly launched NCC Innovates program developed by the New Castle County Department of Economic Development.

The event will also showcase a number of Delaware entrepreneurs that are in various stages of business growth.  Ms. Cheatham says, “Delaware has some terrific entrepreneurs and innovators.  We also have a huge amount of resources and intellectual capital available to entrepreneurs and innovators. The goal of this event is to bring everyone to the table to make things happen quicker and encourage business growth within the state.”

For more information on the event, and how to nominate or apply for awards visit www.EECincubator.com or contact Dora Cheatham or Erica Crell at the New Castle County Chamber of Commerce Emerging Enterprise Center.

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A Strategy to Exit

Written by Cheryl Beth Kuchler, CEO Think Tank

STRATEGY TO EXIT

Rich Manders of Freescale Coaching grew his company, iAutomation, to $12Million with $2.5M in EBITDA and sold 75% of the business back in 2007. Over the past decade the company has continued on a growth track reaching over $100M in 2016.

During the acquisition process, the acquiring Private Equity firm, Riverside Company, used the “SPARKLE” model as a checklist evaluate the company’s value. Each letter represents an aspect of your business that should “sparkle” and if your business doesn’t, the acquiring firm wins.

At the 2016 Harvard Innovation Symposium, Rich shared the model and explained how buyers use the checklist to determine the price of a business. HINT: The more a company SPARKLES, the more the right buyer is willing to pay.

I highly recommend watching the entire presentation – about 43 minutes. If you’re time-strapped, however, you can read a recap of what each letter stands for here.

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Entrepreneur Profile – Scott Lascelles

Scott has over 22 years in consumer lending in various marketing, risk and analytic roles at companies such as American Express, JPMorgan Chase, Barclays and PNC. Most recently, Scott was working in the Fintech sector by making online lending easier for consumers.  Throughout his career, Scott—usually on the buying end of Lead Generation Companies— consistently felt that Lead Generation Companies did not understand consumer lending or the problems he was trying to solve, resulting in misaligned goals.  He founded PrimeRates to resolve this issue.

PrimeRates helps individuals prequalify with lender partners, ensuring that the rates individuals see are the rates they’re more likely to get.  A prime rate generally refers to the rate that a bank charges their best customers, usually big companies with deep pockets, but Scott believes that everyone deserves their best rate, their own prime rate, and that’s what PrimeRates strives to offer.

PrimeRates will launch with lead generation for personal loans and credit card—markets they know and understand extremely well—with a Phase 2 focus on Auto, Student Loan, and Small Business Loans.

 Scott gives advice to others wanting to start a business. He says, “leverage your network to develop your business plan, leverage resources like the EEC, and always ask for help, but make sure that you don’t compromise on your vision.” Scott says, “the EEC provides invaluable resources for small startups, they provide access to experienced business people, organizational workshops and simply advice as needed.”

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Entrepreneur Profile – Trevor Brown, DEact Medical Solutions

Trevor Brown founded DEact Medical Solutions in 2016 after completing his phD   thesis on  “The Development of a Chemical Reaction Packet to Destroy/Denature Pharmaceutical Waste.”

Trevor developed a proprietary, patent-pending technology that permanently renders medications ineffective and safe for disposal. The material, when combined with medications and water, forms a solidified gel-like substance that cannot be easily tampered with or leach into the environment.

Opioid abuse is sadly all too commonplace in the US.  Today, nearly 7 out of 10 prescription opioid abusers obtain their supply directly from a friend or family member. Proper disposal of unused or expired medications can prevent the onset of substance abuse y limiting the ease of availability. This patent pending drug disposal pouch neutralizes unused pharmaceuticals, including opioids. Currently, this is DEact’s only product offering which is being made available to a variety of markets including hospitals,  retail pharmacies, drug manufacturers, and many more.

Trevor acknowledges that being a young entrepreneur teaches him valuable lessons. Each failure has led to an incredible opportunity for an early stage of my company. “Every entrepreneur has to be able to accept failure to truly succeed,” says Trevor. DEact Medical Solutions has immediate plans for growth to forge partnerships across the many segments to immerse their flagship product into the market. From there, they plan to expand on their current offerings to penetrate institutional drug disposal.

Trevor says, “The EEC has provided a wide variety of support services that have continually helped push DEact forward. In addition, to the office space, the EEC has provided business coaching and unparalleled access to their community and members.”

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4 Key Steps to Entering New Markets

Written by Dora Cheatham, Program Manager, Emerging Enterprise Center

 

As we move closer and closer to 2016, everyone’s checking budget numbers and beginning to think about growth for the new year. Your boss just walked into your office and told you the company wants to take your top products into a new market. Somewhere along the line, someone had the idea that your heavy duty industrial cleaners can be sold into the retail consumer market; or your jan san disinfectants should be extended to the aviation industry (planes are dirty, right?)  How hard can it be?

The truth is, preparing to enter a new market does not need to be a tough process, but it does need to be thorough, and expectations need to be set at realistic levels before even beginning to look at the 4Ps (or 5Ps depending on your approach).

Here are 4 key considerations you should take into account as you look to taking your products into a new market.

Size of the market vs market potential – in order to assess the size of the market you need to have a thorough understanding of the specific application of your product. A product that is used several times a day in one type of market, may only be used once a day in a different market, which radically changes the size of the market. In addition, if the market leader holds 20% market share in the new market, then your total potential in the early stages of commercialization is likely to be just a small portion of that 20% share. Be realistic in your expectations.

Product attributes – Attributes and benefits of a product that are valued by one market are not necessarily valued in a different market. Make sure you have a clear understanding of what your new target market values as well as their specific needs, and ensure that the products you are offering are designed – and positioned – to meet those specific needs. In many cases, relabeling or repackaging a product may not be enough. The product itself may need to be re-engineered to accommodate the needs of your new market.

Regulatory environment – Different markets have different regulatory requirements – for example, a product that can be used to clean your kitchen or bathroom cannot be used to clean surfaces in an aircraft without meeting stringent aviation material safety requirements. Make sure you are fully aware of any industry, state and federal requirements necessary to market your product in an alternative market. Use a consultant if you have to. It’s cheaper than the alternative.

Sales cycle – make sure you understand the sales cycle and method of the market or industry you intend to enter and not just the sales channels. In some cases, the sales cycle can be relatively brief and straightforward, in other cases, the sales cycle could be long and require a consultative approach. This will greatly impact your marketing plan and materials.

Once you have a clear understanding of the market size and potential you can then start thinking about potential strategies. Here are just some alternatives used by different companies:

  • Focus on targeting non-users of the product rather than trying to switch customers from using an existing competitive product.
  • Focus on offering additional attributes not offered by any competitive products
  • Focus on attacking competitive products by offering superior products OR lower pricing.
  • If marketing dollars are available, focus on outspending competition in advertising and promotion, although according to literature, this approach only makes sense if the market leader is in a seriously weaker position and you can outspend the leader at 3:1.
  • Target efforts in a specific geographic area or an area not currently served by current competitors.

Then and only then should you start putting together your Marketing Mix or 5Ps. These are the decisions that surround the Product (performance, features, design, presentations, name, etc), Pricing (direct, distributor, geographical, etc), Promotion (PR, marketing collateral, advertising), Place (distribution channels), and People (tasks, sales, support). In other words, you have gained an understanding of the new market and its customers, you now need to ensure that you have the right products, that they are correctly positioned for that market and that your communications correctly reflect that positioning.

General Eisenhower once said “Plans are nothing, planning is everything.”The purpose of planning is to ensure that all the right questions are asked. Too often we “make it up as we go along” which may yield short term benefits, but more often than not can be harmful in the longer term, often resulting in unintended consequences and incurring unexpected costs. While planning does not necessarily eliminate all of these, it does provide a sense of direction and empowerment that permits effectiveness at all levels of the organization and optimizes strategy execution. In brief, planning x strategy x execution = success.