Des Moines Register
08-28-07
Business accelerator steers entrepreneurs to success
Clients design plans, assess viability, connect with potential allies and find
access to financial resources.
By RENDA LUTZ
REGISTER BUSINESS WRITER
When Vince Basile purchased companies in Illinois and Florida, he considered
moving the Florida business to Illinois and moving his family away from Iowa.
But the assistance he received through Des Moines' new business accelerator
convinced him otherwise. Basile moved both companies to Clive this summer,
and began doing business as Aerospace Geartech.
"I was astonished by the availability of funding and the support and guidance
available," he said.
Basile was one of the first entrepreneurs to work with the Business Innovation
Zone of Central Iowa, or BIZ, which opened March 1.
Mike Colwell, executive director of BIZ, says the nonprofit group plans to improve
the probability of success for Iowa entrepreneurs.
BIZ was founded by the Greater Des Moines Partnership, Des Moines Area
Community College, the Iowa State University Research Park and the Ames
Economic Development Commission. These organizations and the Iowa
Department of Economic Development provide the majority of its funding.
"Every entrepreneur is very different," said Curt Nelson, president and chief
executive officer of the Entrepreneurial Development Center, a business
accelerator in Cedar Rapids. "They have similar sets of needs wrapped around
very different capabilities and personalities."
That center assisted 103 entrepreneurs last year. It has helped 21 businesses
grow from the idea stage in 2002 to companies with between $100,000 and $8
million in annual revenue by the end of 2006.
The economic development department estimated that 161 businesses were
assisted by the expertise of those running the Iowa business accelerators in
2005. Almost 80 of those were directly involved in targeted industries:
biosciences, advanced manufacturing and information solutions, and financial
services.
BIZ commits to working with business owners for three to five years.
The first step: Entrepreneurs sit with BIZ and do a strategic assessment, which
can include examining the viability of the product or service and its customer
base.
"We ask, 'Have you ever run a business before? How many hours do you want to
work?' " Colwell said. "Some people find out they don't want to run a business,
but they may want to market or develop a product for another company. We can
help them do that."
Other services include developing or improving a business plan and referring
clients to successful business professionals for consulting, education and
networking opportunities.
During the assessment phase, BIZ will determine whether the entrepreneur has
the talent needed to handle marketing, sales, finance, product and service
development, and operations.
"Interviewing and hiring the proper talent may be something our clients have
never done," Colwell said. "We have local businesspeople who have volunteered
their time and are willing to help interview employees."
Another important function of BIZ is connecting clients to local business
professionals for mentoring and consulting.
Pat Martin, a Des Moines lawyer who formerly served as Maytag Corp. general
counsel, said her background in setting up legal entities and employment law can
help BIZ clients.
"I could help by reviewing their contracts, getting the right language in the
contracts," she said. "Maybe they are developing a warranty that needs to be
examined. I can help them foresee issues down the road, and look at what can
be done to prevent a potential problem."
The hardest thing for entrepreneurs: examining the leadership of a company,
Colwell said. "Sometimes, the best thing a business owner can do is get out of
the way," he said. "And let someone else lead their company."
BIZ also helps business owners find money to get the business off the ground or
expand an existing business. "I have seen some horrendous situations, where so
much money has already been spent," Colwell said.
Cathy Spenceri, BIZ director of business development, said the organization can
help entrepreneurs locate grants and meet investors.
Examining how a business will be funded is the last step BIZ looks at when
making a client assessment.
Colwell said one of the differences between BIZ and other accelerators in Iowa is
that the organization does not take an equity position in the client companies.
Basile had worked for nearly two decades as an engineer at Townsend
Engineering in Des Moines before deciding to go into business for himself.
After getting a degree in business management, Basile found a company in
Illinois that he wanted to buy.
Then he met with Colwell.
With guidance from Colwell, assistance from the economic development
department and Des Moines Area Community College, Basile was able to
purchase two companies that make gears and pulleys that he had designed
while at Townsend.
Aerospace Geartech has four employees, and it will soon be looking for more.
Reporter Renda Lutz can be reached at (515) 284-8529 or rlutz@dmreg.com