Communities Applying Sound Strategic Principles

During the past two years, Creo Quality has been approached by a number of struggling communities who are interested in improving their economic situations. While in the past, communities who have approached CQ were interested in diving in to something without a strategic action plan, recent endeavors seem different. In particular, we have been approached by a community who wants CQ to help them identify their strengths and opportunities to target opportunities to leverage their competitive advantages and core competencies. While the project is still pending, it has been extremely encouraging to work with a community and economic development officials who have an interest in applying sound strategic principles to their growth plans.

We recently read a story in the IBJ about the city of Kokomo and its Mayor. At one point, Kokomo was ranked as having the highest average wages and is now at the bottom of the list. Now, it’s a battle of the budgets… moving trash cans to one side of the street, closing the city’s day care, etc. The biggest pitfall is that Howard County is not retaining the earnings of its best-paid workers! 20% of Howard County’s workforce lives outside Howard county and this 20% earns 30% of the income generated in the county. Kokomo and Howard County must attract more well-paid workers to live there and attract bigger companies to employ them and their Mayor is working on just that.

This, too, is encouraging to see where a little bit of strategy is being applied to help revitalize Kokomo’s downtown.

Life Sciences Niche Growing in Indianapolis?

According to the Indianapolis Region Guide 2010 put out by the IBJ, there’s more to Indiana Life Sciences than Eli Lilly, Dow AgroSciences, Cook Group, and Roche. In fact, Indianapolis has been attracting less known companies who are taking advantage of the great research universities, workforce, business climate, and commitment to life sciences growth.

AIT Laboratories, headquartered in Indianapolis, has more than 365 employees nationwide and hired roughly 180 employees in 2009. AIT increased their revenues by more than 75% and nearly doubled its national sales staff to 50 while also entering into 15 new markets.

Beckman Coulter is creating a center for excellence in Indianapolis. They’ve been in Indianapolis since 2006 and have about 450 people on site. In 2010 they will be adding roughly another 100 and increasing their footprint to 228K sq ft from 100K sq ft.

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Medical Startup Ideas – What do I do first?

Small businesses are important to economic growth and have an incredible impact on economic growth. So, let’s say you are a small business and you have a medical device idea. What should you do first and where should you spend your money when building your idea?

Before you do anything, you need to prove that there is a market for your product or idea. Will people use / buy your product? At this stage, we recommend limiting the amount of dollars spent by determining your market through market research. Do not rush to build a prototype.

Yes, prototypes have value, but you must be sure that there is a need for the product and that the pricing to manufacture the product and sell it is such that your product price is justifiable and people will buy it.

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Kauffman Foundation Speaks Up for Entrepreneurs

The Kauffman Foundation works to advance entrepreneurship education and training, to promote entrepreneurship-friendly policies, and to better facilitate the commercialization of new technologies by entrepreneurs and others.

On September 23, 2009, the Kauffman Foundation officially started a campaign called ‘Build a Stronger America’ to give a unified voice to entrepreneurs and business owners. Through the Movement’s Web site (www.BuildaStrongerAmerica.com), entrepreneurs and business owners will, for the first time, have a central hub to share their stories, hear about issues affecting them and create a unified voice.

BSA sticky note“Entrepreneurs are the key to our country’s economic recovery because they are creating the jobs and innovations that will bring us out of this decline and into sustainability and growth,” said Carl Schramm, president and CEO of the Kauffman Foundation. “As a group, entrepreneurs are the silent heroes of our economy…”

Join the Movement to become part of an “entrepreneurial community” that can provide feedback regarding policies and initiatives affecting you and your business.

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Where Can Hoosier Entrepreneurs Get Funding?

In July 2009, the State budget cut support for the 21st Century Fund in half from $70M to $35M over a two year period.

As a State, we pride ourselves on “big economic growth” and “job creation”, yet we cutback 50% of funding in an organization that has been providing financial support to Hoosier innovators since 1999 and directly impacts economic growth and job creation.

So, where are Hoosier Entrepreneurs supposed to go for funding resources? Other grants? Sure, there are some grant resources, like the SBIR, but those are federal dollars and a small percentage of companies actually get SBIR dollars.

If we want to see more dollars come into Indiana, we will have to look to Venture Capitalists:

  • 11% of jobs in the private sector were Venture-backed in 2008
  • 21% of US GDP came from Venture-backed companies in 2008

Check out last week’s post on funding for small start-ups – “Funding Challenges for Entrepreneurs“.

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Improving our Hoosier Economic Garden

In the past I’ve touched on “Economic Gardening“, an idea developed by Chris Gibbons. To paraphrase Chris, “Growth anywhere in the world is a result of entrepreneurship. You can try to attract and recruit entrepreneurs to come into your community. Or you can try to grow entrepreneurship from within your community.” Economic gardening is about growing from within.

Recently, this idea came back around to the forefront in light of our current economic situation and resulting budget cuts and I started thinking…

Are our State leaders encouraging economic gardening? Are we growing from within?

What do you think?