SustainableWork

The world of artisan foods entrepreneurship is in its infancy. Innovation in foods and everything connected to it will increase omni-directionally, as Bucky Fuller said, for as far as I can see. This move toward local foods and regional food systems will make better, healthier foods available to increasing numbers of people at increasingly affordable prices.

I want to help make the Wisconsin Innovation Kitchen a platform for food innovators and entrepreneurs to take advantage of this emerging artisan foods marketplace.

One way we will launch this effort is through a program we're calling our Preparation Partnerships. In this process the Innovation Kitchen will prepare, process, package, store and distribute your food innovation for commercial sale.

I'm going to put the draft of this Preparation Partners plan into this blog post and then later move some of it forward as we see what works.

Our Preparation Partners will be food innovators - chefs, existing small food businesses, new food innovators, farmers, anyone who loves food. We will offer a partnership with the Innovation Kitchen to launch and grow artisan food businesses in a state-inspected, commercial kitchen.

Let's map out how this would work on one simple case.

Let's say you want to start or expand an artisan food enterprise.

As an example, let's say you wanted to start an food business around a soup or stew that celebrated a specific local food. [Editor's note: this is a very good idea.]

As a Preparation Partner you could have your recipe prepared and tested at the Innovation Kitchen in an artisan-batch, commercially relevant scale. If this works for all involved, we can help register your recipe and your new business with the state. Then, as a Preparation Partner, you can have your recipe prepared, packaged, and distributed for commercial sale on a contract basis through the Innovation Kitchen.

Here's an overview… The Preparation Partners program will be a platform you can utilize to launch your artisan food business without having to invest in an entire food processing facility and support networks on your own.

This Preparation Partner option will be the initial focus of the Wisconsin Innovation Kitchen. We see 3 key processes making up this program.

Process 1. Will it work? As your Preparation Partner, we want your food innovation to succeed. We will work with you to prepare your recipe in artisan-scale, commercially-relevant batches. This insures your recipe will meet your goals for taste, quality, packaging, etc. when it is prepared in larger volumes in a commercial kitchen. Think of it as a 'shakedown cruise' for your recipe.

Process 1 example: You have an amazing morel mushroom soup recipe. It works great in your home kitchen, and everybody loves it. You want to launch a small food business around this recipe. However, you need to learn a number of things about what happens when you scale your recipe up to small commercial batches. Will it meet your goals for quality? How much of the recipe ingredients will you supply? What ingredients will be purchased at what specifications and price? In short, what are the true costs of production for a small-scale commercial production run? This first process at the Innovation Kitchen is designed to answer those critical questions with you tasting and approving the results. This step also supplies critical documentation of real numbers and actual times required, not extrapolated results.

The idea is to make a small, smart investment in your emerging food enterprise to make sure the idea is scalable. Also important, this first Preparation Partner test run will give everyone involved a basis for pricing larger, commercial production runs if that is an option.

So, how is My Magnificent Morel Soup Mix doing? We rented time on the commercial dehydrator at the Wisconsin Innovation Kitchen and got a batch of our morels just right for a dry mix. We purchased some ingredients from local farms. We bought a few ingredients and our packaging through the Innovation Kitchen's Purchasing partner program. The recipe scaled up to a small-scale commercial size. All costs were documented.

This matched the targets in our business plans, and we decided to move forward and prepare for commercial sale.

Process 2. Signing In. Most food products sold commercially must have their recipes and process approved prior to sale. (A good thing for all of us!) There are exceptions, but if you're going to run an artisan foods enterprise you need to think of yourself as a professional and run your enterprise accordingly. That includes going through legal registrations and all professionally relevant trainings and certifications.

The Innovation Kitchen has the support in place to help legally register food products and processes in Wisconsin. We will also have access to full information for selling your food products outside of Wisconsin. Additionally, the Innovation Kitchen 'Signing In' process makes available business help finding information about appropriately registering new business entities.

Process 2 example: With the help of the Innovation Kitchen, we submitted our Morel Mushroom soup recipe and processing steps. We included all three of the sizes we were intending to produce. We were approved within a few weeks. During that time we also incorporated a new enterprise around our business plans and registered with the appropriate state and federal agencies. We also did this with resources available through the Wisconsin Innovation Kitchen.

Process 3. Launch services. Preparation Partners will have access to Wisconsin Innovation Kitchen marketing and sales networks, as well as storage and distribution networks.

Process 3 example: We test marketed our Magnificent Morel Mushroom Soup through the Innovation Kitchen marketing network and found the right mix of customers to start with. After processing our Magnificent Morel Mushroom Soup, the Innovation Kitchen stores our finished product. We send in orders for our soup, and the Innovation Kitchen ships them directly to our customers.

Wisconsin Innovation Kitchen Preparation Partners.

So, what's one of the easier and smarter ways to launch or grow an artisan food business? Outsource the testing, organization and food preparation to a state-inspected commercial kitchen that is set up to celebrate artisan foods.

All the difficult food regulation, management and execution steps will be done to code in a state-inspected commercial kitchen. You will have the opportunity to pre-test your recipe at a commercially relevant scale, document your costs, and market-test consumer demand.

Is this a guarantee of success? Of course not.

What the Wisconsin Innovation Kitchen represents is a valuable opportunity for food lovers and food entrepreneurs to experiment with new food innovations and product lines in an affordable, valuable setting. A goal of the Innovation Kitchen is to help develop new and existing artisan food enterprises that celebrate healthy foods and our grow our rural communities.

Our Preparation Partners program is one of the ways we can make that happen. Got a recipe you'd like to try?

Stay tuned. I will report back as this emerges.

Wisconsin Innovation Kitchen link

Photo is of Hyde's Mill in beautiful Iowa County, Wisconsin.

Labels: artisan food processing, bootstrapping, business plans, entrepreneurship, innovation, Outsourcing, platforms, slow startups, startups, Wisconsin Innovation Kitchen

Here comes the Grand Opening of the Wisconsin Innovation Kitchen! July 11, 2010, at Mineral Point, WI.

After watching the building slowly go up all winter, now work seems to be flying.

And just as that pace picks up so does the need to organize systems that help introduce this new opportunity to the world of local foods and artisan food processing. In many ways it was a blank sheet of paper with lots of (beneficial!) food safety regulations to wire in. As the opening gets closer, so does the need for information and processes to help people utilize this kitchen.

We are organizing the Wisconsin Innovation Kitchen as a partnership program.

To me that means that we, as farmers, food lovers, existing food businesses, and food entrepreneurs, have the ability to become partners with a non-profit, community-access commercial kitchen designed to help us grow our own artisan food enterprises.

Because it's a big world, there will be many different ways people will want to utilize a facility like this. With that in mind we're initially organizing around 4 different types of community partnership programs.

- Preparation Partners

- Processing Partners

- Purchasing Partners

- Event Partners

Preparation Partner - We prepare your recipe for you. This will include chefs that want to process artisan, small-batch production under their labels. Existing small food enterprises or new food entrepreneurs can have their recipes prepared in artisan commercial quantities by the Wisconsin Innovation Kitchen.

Our Preparation Partners will be able to start or expand artisan food businesses simply by following our intake path for this type of partnership. If you want to start an artisan food business without having to cook and clean yourself, or the need to get the required food processing certifications, our Preparation Partner program fits perfectly. Services for Preparation Partners can include full turnkey production, packaging and labeling, marketing, storage and shipping. Many great local foods opportunities down this path!

Our Processing Partners will be able to commercially process their own recipes in the Wisconsin Innovation Kitchen, utilizing any mix of their ingredients or purchased ingredients.

An array of support services will be available to our Processing Partners including packaging, storage and distribution. Processing Partners will have a separate path for utilizing the kitchen. This path will include help accessing required food processing certifications and insurance as well as ingredients and distribution services.

Our Purchasing Partners program will support small food entrepreneurs and businesses who could use better access to products and services they use, not at the Innovation Kitchen, but in their own food processing operations.

The Wisconsin Innovation Kitchen can supply a wide range of food ingredients, packaging and services to food businesses and food entrepreneurs. This path for Purchasing Partners is being designed to support the small food enterprise community with better access to materials, services and pricing.

Lastly, our Event Partners will utilize the Innovation Kitchen in many ways to celebrate local and artisan foods.

This can include chefs presenting seasonal local-foods cooking schools, food stylists, help for folks utilizing food assistance programs, and everyone with a great food event idea in between.

So, four simple paths into the Wisconsin Innovation Kitchen:

Preparation Partners - we prepare your recipes for you.

Processing Partner - you prepare and process your recipes.

Purchasing Partners - we help you purchase commercial food supplies and services for your own food processing operations.

Event Partners - we help you produce artisan food events in our commercial kitchen.

With the help of Tom and Annette at the Hodan Center, I'm building the back-office systems to provide (hopefully!) increasingly easy and useful ways to access these Partner Programs.

If you have ever wondered about starting your own food-based enterprise or growing an existing business into the world of local foods, the Wisconsin Innovation Kitchen will be a great platform to explore your dream, no matter what food path you're on.

Act on that dream. Local foods entrepreneurship is blossoming. New support infrastructure is emerging all over. You can do it.

Welcome, Partner!




Our emerging Wisconsin Innovation Kitchen site

Hodan Center

Before the Grand opening of the Wisconsin Innovation Kitchen comes the Grand Re-Opening of the Mineral Point Opera House Oh my gosh. Check this out. April 30, 2010.

Labels: artisan food processing, Innovation Kitchen, platforms, Wisconsin Innovation Kitchen

I believe economic development means helping create opportunities.

Inventor and Entrepreneur Clubs are a really fun way to discuss and learn about opportunities for starting and growing enterprises of all kinds.

We have ours in Iowa County typically on the fourth Monday evening of each month. People get together to discuss, ask questions, and share strategies about entrepreneurship and doing enterprise. It's really fun to see new and old friends interact and help one another with business and startup ideas.

Each month different speakers focus on specific topics. In next week's meeting we'll have Maria Davis from one of our great local foods group REAP, and Lois Federman from her wonderful program Something Special From Wisconsin. Mark will speak directly to growers interested in producing vegetables for the Highland processing and freezing plant. I'll get to cover the possibilities for food entrepreneurship and business expansion available through our new Wisconsin Innovation Kitchen. Looks like a landscape of great opportunities to me.

Here is our press release for our next Iowa County Entrepreneur Club meeting. You can download a PDF version at the end.


Iowa County Entrepreneur Club meeting to focus on growing businesses and creating jobs in local foods and regional food processing.

Dodgeville, WI –

Start or grow your own business around the growing possibilities of local foods and regional food processing!

Local foods and regional food enterprises are blooming everywhere. This is becoming a great way to start or grow businesses in Southwest Wisconsin.

Join us at our next Entrepreneur Club meeting Wed., Feb. 24 in Dodgeville, WI. This meeting will specifically focus on the strong possibilities for food and agricultural entrepreneurship in our region, with four featured speakers:

Maria Davis from the REAP Food Group (Research, Education,
Action, and Policy) will discuss 'Buy Fresh Buy Local Southwest
Wisconsin' and the demand for local foods.

Lois Federman from Something Special From Wisconsin will
discuss the possibilities for working with farmers markets,
produce auctions, and Community Supported Agriculture
(CSA) programs.

Mark Olson from Renaissance Farm will discuss plans for the
Individual Quick Frozen (IQF) vegetable processing and
freezing facility planned for Highland. This section is meant to
give regional growers as much information as is available so
they can plan future farm activities with this facility in mind.

Rick Terrien from Iowa County Area Economic Development will
discuss business support available for area growers and farm-based
entrepreneurs. Rick will also discuss business startup and
expansion possibilities at the new community-access Wisconsin Innovation
Kitchen, a state-certified food processing facility available to growers and
food entrepreneurs, operated by the Hodan Center in Mineral Point.

Grow your own business around the growing possibilities of local foods and regional food processing!

Please join us for a great evening of information sharing at our next Iowa County Entrepreneur Club meeting on Wednesday, Feb. 24. There will be a social hour beginning at 5:30 and the meeting will begin at 6 PM. The location is at the Stonefield Apartments, 407 E. Madison St., Dodgeville WI. The event is free to the public. Bring a friend!

Download more information, agendas, location maps and much more at http://www.iowacountyedc.org.5100b.html

Networking among attendees will be encouraged in the evening's program. "Our goal is to grow the network of entrepreneurs and those that support them in the Iowa County area" said Rick Terrien, Executive Director of ICAEDC.

The Iowa County Area Entrepreneurs Club is an informational forum where entrepreneurs, inventors, existing businesses, new businesses and people thinking about starting their own businesses can come together to encourage each other and share challenges and encouragement. The group meets on a monthly basis, usually the fourth Wednesday of the month. More information about the group is available on the ICAEDC website at www.iowacountyedc.org/5100b.html or by emailing info@iowacountyedc.org

Download a meeting flyer for this meeting focusing on growing vegetables for the proposed Highland processing and freezing facility:
http://www.iowacountyedc.org/imagesb/ Meeting_Flyer_2_24_10.pdf

END.

If you're in the area please stop by!

Iowa County. Come grow with us.

Iowa County (WI) Area Entrepreneurs Club

REAP Food Group. Research, Education, Action and Policy on Food Group is building a regional food system that is healthful, just, and both environmentally and economically sustainable.

Something Special From Wisconsin. I believe Iowa County Economic Development is the first County EDC member in Wisconsin. I love this program.

Mark's Renaissance Farm. Who knew cinnamon rolls could become an addiction?

Download this media release in PDF format

Information about growing vegetables for the proposed Highland processing and freezing facility.

Labels: artisan food processing, entrepreneurship, innovation, Innovation Kitchen, new product development, platforms, slow money, slow startups, startups, Wisconsin Innovation Kitchen

The working title for this post was 'Ulrich and Eisenhower'.

I was reminded once again this week of the powerful role preparedness plays in small business planning.

If you're going after outside investments and loans, you will need very specific financial projections based on assigned income and expense assumptions. All enterprises need this as they mature.

For most self-funded startups and newly emerging enterprises these kinds of financial projections should not be your first step. The money stuff will be built in of course, but you need to learn about a much wider range of subjects before you can start your financials.

Our Iowa County Entrepreneur's club this week was amazing I thought. Ulrich and Alex Sielaff from the Sielaff Corporation in Mineral Point shared a detailed overview of how their award winning design and manufacturing skills recently earned them Small Manufacturer of the Year from Wisconsin Manufacturers and Commerce.

Ulrich is rich in intellectual property - 25+ patents - but he is even wealthier in business experience. He described a life of enterprise that has merged opportunity and threat successfully for decades. It was a truly wonderful story that I learned a great deal from.

What also struck me later that if you looked back on the history of how their Sielaff Corporation had to innovate and respond to new market conditions it would not look like a straight line.

Now imagine if you were starting a new business and you were asked to create a formal business plan using the map Ulrich and Alex described. Build in all the zigs-and-zags. Chart out all those shifts and turns the Sielaff Corp. had to take to make opportunities out of change - rapid, unanticipated shifts in products, markets and globalization just to name a few.

That kind of business plan map - for a new or emerging small business - would not go over well with people lending money or investing.

However, there is a great lesson in the Sielaff story for startups and newly emerging enterprises. Ulrich and Alex have created extensive social networks (the face-to-face kind) within their industry. They stay at the leading edge of manufacturing by building deep knowledge and respect for all their stakeholders, and really great design into every part of their enterprise.

The Sielaffs succeed and innovate because they have a wide, proactive knowledge of their field and can change wisely and quickly, as necessary.

Looking backwards, that probably didn't produce the kind of business plan map Ulrich would have written at the beginning of his enterprise. However, what an admirable and successful place it took them.

The Eisenhower quote I bring in often goes like this, "Plans are nothing; planning is everything."

To me this means that you must thoroughly research as many possible inputs to your endeavor as possible. You will indeed craft a plan based on what you learn. But as the story goes, it's the journey that's more important than the destination.

The plan you design is typically not the one that happens. What will determine if you grow or fade is your knowledge, resources and love of your field. Your ability to survive and grow will depend on your answer to that challenge. But that same challenge is also your greatest opportunity as Ulrich and Eisenhower and countless legions of small businesses can attest. Building your skill and the ability to adapt rapidly and wisely will be your greatest resource.

The strongest advice I can share with any new startup or emerging enterprise regarding business planning is to fill the toolkit with as much knowledge and information about your entire field, not just the specific slice you will compete in. Learn widely about every detail, every subset of the field you will be working in. Create systems to store incoming data. Build in processes to continuously search out new resources.

Take good notes. They will serve you well as your own business map develops. I promise.

More important, Ulrich and Eisenhower promise.

Happy planning. Enjoy the journey.


The Sielaff Corporation, Mineral Point, WI

Labels: business plans, entrepreneurship, new product development, platforms, slow startups, startups

The idea I've been working on this year is that it's possible to build economic development landscapes. That is, design systems that let people enter the process of economic development at multiple points. You don't plant a tree or two. You try to create a sustainable landscape in which a wide range of interrelated opportunities for growth exist.

In my current job, because of the amazing assets we have in place, I'm working to make Iowa County a premier location to learn about and participate in agriculture and local foods entrepreneurship.

Our Wisconsin Innovation Kitchen will allow beginning food entrepreneurs to get into the game professionally, with greatly lowered barriers to entry.

Existing small food enterprises can use the kitchen to reach new, higher levels of quality, sales and profitability.

At this end of the landscape spectrum there will be many, many points of entry for individuals and small businesses.

At the other end of this spectrum the Driftless Foods project is moving forward. This has felt like the best startup idea I've ever seen since the first moments that Mark and I started talking.

Driftless Foods offers a chance for some serious meta-level good. There is a strong component to helping farmers stay on their farms by building the infrastructure they need to process local foods at a scale that can profitably support regions. It's a way to help people to get into farming and to help existing farmers securely diversify their sources of income.

The project recently got a very nice recommendation from the Wisconsin Secretary of Agriculture, Mr. Rod Nilsestuen.

"The Wisconsin Department of Agriculture, Trade and Consumer Protection strongly supports Driftless Foods and The Iowa County Economic Development Corporation in their efforts to create a vegetable processing and freezing facility.

A facility such as this will help meet the growing demand for locally grown foods, a demand that is increasingly important to the vitality of Wisconsin agriculture.

I firmly believe that Wisconsin's future is tied to the success of our agricultural sector, and the success of that sector depends on innovation and diversity. We need to keep farmland in farming and farm families on their farms. This project can help us do both. It also creates new job opportunities in your region and opens new economic development possibilities.

I can also see in this project the opportunity to create a model for processing locally grown foods that other communities can follow. This model promises to celebrate local foods, be profitable, and return value directly to the producers, the communities they live in, and the regions that support them."

What a wonderful, insightful show of support. Thank you very much, Mr. Secretary!

So with the Wisconsin Innovation Kitchen opening at one end of the spectrum and Driftless Foods launching at the other end of the spectrum, we've got a fairly diverse development landscape underway.

In the middle of that spectrum are some really delightful co-conspirators helping to knit this effort together.

We met today to plan the first information sessions for our regional growers. This will all take varying amounts of time. The Innovation Kitchen will be open in the Spring for food processing on a small to moderate scale. For the larger scale of Driftless Foods growers need to plan well in advance for joining this kind of enterprise.

We will have 3 informational meetings focusing on Driftless Foods in January and February. Because this is a diversified effort, we will also be able to support interested growers with information about the Innovation Kitchen.

The first two dates are not quite set, but the details for the third meeting are in place. We will dedicate the February 24th Entrepreneur Club meeting in Dodgeville to this grower information session. I'll post details below.

So, the development landscape grows across the spectrum and we can soon begin inviting people in.

This has been an amazing year watching and learning from this experiment in economic development landscapes.



Letter of support from Wisconsin Secretary of Agriculture Rod Nilsestuen

Link to the Iowa County Entrepreneur and Inventor Club page. Our Feb. 24th meeting will focus on opportunities for regional growers being created by the Driftless Foods project.

Photos are from our magical Shake Rag Alley in Mineral Point. Our EDC was able to host the quarterly meeting of the Thrive Economic Development Pros at Shake Rag Alley last Friday. Our meeting was in the replica 1840s carpenter's cabinet shop. Karla and her great team had it beautifully decorated to receive area children for Santa's visit the next day so the atmosphere was great. Thanks to all who came and shared beautiful Iowa County with us!

Mark Olson and Renaissance Farm

Labels: artisan food processing, Driftless Foods, entrepreneurship, new product development, platforms, Wisconsin Innovation Kitchen

My friend Mark Olson and I, with a scary-smart group of emerging friends, have been working out possibilities for our Iowa County initiative. This is an economic development prototype to build interrelated local food processing clusters, operated at a scale to meet institutional demand. These facilities will be located strategically across rural economies and organized in a way that is mutually self-supportive. The design of this system moves the bulk of the revenue through the management and production levels, delivering it to the producers and their communities. There is a link at the end to the summary white paper about this initiative that we presented at the Slow Money Institute in Madison this summer.

To me, creating experiments in all kinds of regional food systems is needed. This is a startup effort and startups are not straight-line endeavors. Stuff needs to get learned. Policies and procedures need to get worked out. That doesn't mean go slow. It means to hurry up. Let's make our mistakes early, often, and inexpensively. Our Iowa County / Driftless Foods initiative is a startup designed to to develop and document the knowledge needed take the next steps.

With that base in place, our goal is replication elsewhere: finding ways to deploy successful regional food systems models in other places and at bigger scales.

I had a great meeting this week with a nearby multi-state region of 10 to 15 counties. This may become an opportunity to replicate the Iowa County prototype in a larger, more diverse region sooner than later. I've got some great new friends across this area. I am not only confident, but flat-out excited that we could knit together a world-changing leadership team for this project. Our goal is to create a reproducible regional food system, this time at a bigger scale. The idea is that a successful multi-county (and especially multi-state) model would be one that could be replicated nationally in short order.

Of course, every area will have its own ag (and non ag) resources to contribute to these regional systems. However, I believe the process of organizing and deploying regional food systems is what's critical for making them successful and reproducible. That's at the heart of what is valuable here.

And, to walk-the-walk, I had a chance this week to say what I thought local food processing clusters most needed right now in response to a question from people who could make my answer happen. I had a chance to ask for a lot of money but (per last week's post) I actually said enabling legislation.

On first review I was sure I should have said money, mostly because it's likely true. However, if regional food systems are to be made replicable, they really need some meta support, like enabling legislation, that will give people working on local food initiatives some actual tools to help them move the discussion forward. We need to quit talking about this and take some action steps. We need to create opportunities, enable infrastructure, build markets, create jobs and jump start economic development by nurturing market demand and giving our entrepreneurs a stable platform to grow from.

I remember the early days of recycled paper. It was a good idea that everyone talked about but was stuck in kind of a niche market of early adopters. When the Wisconsin government decided to emphasize the use of recycled paper in its purchasing, that business took off and we've never looked back.

I would suggest that we don't need more requirements, but if the enabling legislation were to just say that opportunities to utilize locally grown and locally processed foods should be explored, it would be huge. The locally processed language would give permission and support to people within local institutions - schools, hospitals, etc. - to see what they can do with local foods. Their buying power will ultimately most enable the success of this process. I would not make these institutions buy locally grown and locally processed foods. I would make it easier for them to do.

If the enabling legislation just indicated that locally grown and locally processed foods were included as a recommendation, but not a requirement, many valuable interests could be served, bypassing potential battle lines.

So, a really wonderful week for local foods processing. Future's so bright… I gotta wear shades. Based on what we learned this week we're planning on ramping up the pace of the rollout of our Iowa County initiative.

As my friend Mark always signs off, be well.


Download PDF white paper on our local food processing initiative first presented to the Slow Money Institute gathering in Madison this summer.

A great interview with Salli Martyniak of Forward Community Investments and Wally Orzechowski of Southwest Wisconsin Community Action Program about community investing. Wally is a friend and is a leader in our team rolling out the Driftless Foods / Iowa County initiative. Salli is a new friend who leads one of the most valuable enterprises I've come across in any field, Forward Community Investments

An interview with Mark Olson about his wonderful Renaissance Farm and adding value to agriculture.

Labels: bootstrapping, business plans, entrepreneurship, innovation, new product development, open source economic development, platforms, slow money, slow startups, startups

My mission is to create as many small, sustainable enterprises as possible. Working with Mark on the Driftless Foods / Iowa County initiative I've come to believe that the best way to create large numbers of new enterprises is by building new local economic infrastructure designed to support them.

Mark and I have been talking about community supported development (CSDs) as a new piece of economic infrastructure whose time has come. It is a model we'll pursue for growing Driftless Foods.

Much as community supported agriculture (CSAs) seeks to create long-term vibrant farms in local communities, CSDs would seek to build long-term vibrant enterprises of all kinds into local communities.

The CSA metaphor is intended. In a bad year you'll get a smaller basket of produce. In a good year you're awash in zucchini. What if the returns were dividends not veggies?

Community supported development can be a tool for creating, funding, and growing long-term local economic infrastructure in communities and regions. With a little planning, this infrastructure can be designed to strengthen market-based local entrepreneurship for generations.

The infrastructure supplied by community-supported development can be digital, and/or brick and mortar capacity, and certainly many other manifestations. In our case we are trying to create a platform for moving large quantities of regional foods into a processing and distribution system geared toward mid-tier farms. This will require the creation of a legal entity capable of organizing that kind of effort; the building of a physical structure robust enough to do this efficiently; and the wiring up of social networks that will enable this project to move forward. Some of this is old-fashioned shoe leather, but much of it will involve investing in the tools to needed to launch and grow this community effort.

In our case we are trying to create a community based economic development platform that will not only benefit local enterprise but critically, community investors as well.

Community supported development would employ judicious early use of funds available from public sources such as grants and loans from economic development sources in government and
non-profits.

People from the community and the region should also be able to invest and benefit from this development as well. This is the heart of community supported development. Not only would local entrepreneurship benefit, but community investors would also benefit.

Community also implies those of like mind. If a place for an investment from the wider community is available that should be available to supporters wherever they are.

Sound legal structures can be put in place to allow individuals and local entities to invest in this way.

There is, thankfully, no 'one' right way. Many traditional investing formats will work. There are also new legal forms of organization emerging all over the country, state by state, that are allowing many creative new ways to create and build sustainable entrepreneurship.

So, how do you organize that? Clearly you hard wire self-interest into the equation. You just can't talk about win-win. The system needs to DO win-win. Sustainable = repeatable. Over and over. Mutual self-interest is a repeatable platform.

Our job as economic developers is to build win-win into the equation from the beginning with the entire community in mind.

The local benefits derived from community sponsored development will be greater economic diversification and security. More capital will circulate locally. People and local organizations of all kinds will also reap the benefits of living in an economy that grows entrepreneurs.

The regional benefits of this kind of economic development will grow immediately. As more and more of these new startup enterprises are created and nurtured they will begin to interact in mutually self-interested ways. This will benefit the entrepreneur organizations and create region-level community supported development platforms.

I know that multi-state benefits will accrue as this model builds out. The wider an area that can be knit together by self-interest, the more chances there are for finding and growing profitable partnerships for all involved. Our previous startup used this very model as we grew our fluid recycling business. We knit together partnerships all across the upper Midwest. As projects came and went, unique multi-state coalitions of these partners would come together on demand.

What's needed are more partners. We need to create the infrastructure for entrepreneurship to thrive.

Community supported development is an idea whose time has come.

Labels: business plans, entrepreneurship, open source economic development, platforms, The slow start up movement

The March 2009 Inc. magazine has a good piece by entrepreneur Joel Spolsky. I like Mr. Spolsky's work because he's a working entrepreneur and freely admits to the ups and downs and all the indecision in between.

His column is titled Start-up Static. "A new business is like a shortwave radio. You have to fiddle patiently with all the dials until you get the reception you want."

That advice has never been more true than in this rapidly changing economy. Small startups are not a rigid exercise in business planning. They are a dance of details. You need to continue to tweak, to adjust the dials, always searching for a way to make the signals stronger and your enterprise more sustainable. Anyone who tells you differently has never started up a small enterprise.

What's between the lines of this story is that you can do it too. There is no wisdom handed down from on high to those who start businesses. They are just people who have (hopefully) assessed their chances and continue to put one foot in front of the other in a way that's informed by the details of the path they are on.

In the same article Mr. Spolsky quotes Jessica Graham of Y Combinator, one of my all time favorite startup stories. Y Combinator is an investment firm / training camp / startup mentoring and empowerment platform dedicated to very small tech startups. I won't do it justice here. See the link at the end to learn more.

When asked to do a presentation, it was suggested to Jessica Graham that she might talk about why startups fail, not the usual stuff about why they would succeed.

"That would be boring, " she said. "They all fail for the same reason. People just stop working on their business."

The article continues: "As she pointed out, it's usually a collapse of motivation - everyone wanders back to civilian life. And the startup ends, not with a bang, but a whimper."

The Grahams have seen a lot and do a great deal of good for startups. They focus their energies and help on companies they have skills in (tech startups). As investors, Y Combinator puts in tiny amounts of money (almost always less than $20,000), but they also provide financial support and stability for entrepreneurs training in their highly effective startup programs.

This is a great model that can be reproduced in other fields. New entrepreneurs need small-ball money; but more importantly, they need safe cultural and financial spaces to take cover in while they launch, under the careful eyes of folks who have a stake in their success.

Why not a reproduce the Y Combinator model for firms that focus on green entrepreneurship? What about food entrepreneurs or art entrepreneurs or social entrepreneurs, and on and on? Little bits of money and lots of training, love and attention from people skilled in those arts. That's what the world of startups needs most, and the Grahams have provided a robust, reproducible model that can work in most any area of commerce we would like to develop for our regions and entire societies.

We need new forms of partnerships in the world to support this launch stage among entrepreneurs.

Perhaps we should consider calling these bare-bones startup evangelists 'Launch Directors'. Wouldn't it be cool to have Launch Directors available regionally, so that good folks emerging from the many wonderful business training programs could actually get help taking the subsequent action steps.

This is the stage where Jessica Graham from Y Combinator says, "They all fail for the same reason… everyone wanders back to civilian life."

I think that some form of public-private alliance will emerge, perhaps with the public portion supplying the bare-bones walls and roofs of the traditional incubators plus the connectivity of virtual incubators.

I think the private part of that alliance will emerge to supply the money. Not the old style slash and burn venture style investing but a 'slow money' style of investing promoted by former venture investor Woody Tasch. As Mr. Tasch puts it: "This is a call to action, a call to design new capital markets built not around extraction and consumption, but around preservation and restoration. The vision: billions of dollars a year supporting tens of thousands of independent, local-first enterprises at the base of the restorative economy."

I get to make a presentation to the Wisconsin Assembly Committee on Rural Economic Development this week. Later in the month I am honored to be able to speak at several annual meetings of groups of local focused folks in my area, most of whom have been entrepreneurs and activists of some form or another in their lives.

I'm going to talk to all of these groups about the need for new types of incubators with public-private action steps built in.

Society needs entrepreneurs, and entrepreneurs need society's support. Our job in economic development is to arrange that marriage, teach them to dance, and to empower them to enjoy and learn from their honeymoon journey.

If entrepreneurs can break through that stage, the world that finances emerging companies can take over, and we, as economic developers, can circle back to create more seed stage, local opportunities.

The world needs better startups. You need a sustainable enterprise. Now is the time to create new ways to make this happen.



Inc. Magazine article How Hard Could It Be? Start-up Static by Joel Spolsky

Y Combinator home page

About Y Combinator

Link to the Slow Money Alliance

Announcement, this Tuesday's presentation to the Wisconsin Assembly Committee on Rural Economic Development

Labels: bootstrapping, business plans, entrepreneurship, funding, innovation, new product development, platforms, startups, The slow start up movement

Do you know Etsy?

It's one of my favorite enterprise stories out there. They are set up to launch you as a creative entrepreneur in ways that are remarkably easy and fun to get involved with. Etsy is a platform you can launch a creative/knowledge based enterprise from and market globally from wherever you are, literaly and figuratively.

Etsy now has a new section called 'Quit Your Day Job'. It highlights a number of folks who have used the Etsy platform to launch their enterprises.

You don't literally have to quit your day job to launch on Etsy. In fact that's the best part. You can market your own creative enterprise while you wean your way off day-job-life-support.

Etsy is a soft portal into entrepreneurship. Open the door, friend.


Quit Your Day Job. A wide range of Etsy entrepreneurs profiled. You can do this, friend.

Interview with an Etsy creative entrepreneur talking about nuts, bolts, and the opportunities of entrepreneurship.

Labels: boomers, bootstrapping, business plans, entrepreneurship, Long Tail, new product development, platforms, startups, The slow start up movement

There was an interesting piece on the NPR Radio program Marketplace on Tuesday 11/18/08.

The piece was titled "Starting a Business in a Bad Economy."

In a short space, it identified a number of things that, from my perspective, are critical for small-scale entrepreneurs and startups to understand. It also highlighted some of the most fundamental misunderstandings about entrepreneurship that are in common currency.

What I would like this post to highlight is that small-scale sustainable enterprises are absolutely possible in this economy if you are willing to put in the time and effort. However, the amount of time required for these kind of startups is typically more than you estimate.

If your financial life is such that you need immediate pay-the-rent type cash flows, starting your own business to dig out of this is a very poor option, with low odds of success.

Let's start with current news. There is no doubt this economy is a massive mess. Each time there's been a ray of hope, it's been snuffed out by something unexpected from left field. Then we restart and the process gets repeated. This has been an awful year for the economy and the near future looks very rough.

That doesn't mean you get under your desk however. It means you smarten up and start building some solutions for yourself.

I've run small businesses through the last bunch of recessions, including the whoppers. If you are overextended and have built your enterprise on a platform of unsupportable risk, then you've got real trouble. For the rest of us, the sun will continue coming up. Birds sing after storms.

The Marketplace radio piece was done by Mitchell Hartmann of Oregon Public Radio. Mr Hartmann is a very good reporter and focuses on sustainability issues for Marketplace.

This piece summarized a few of at the many difficulties and opportunities that startups face in this kind of economic environment.

Mr. Hartmann spoke with an advisor at the Small Business Development Center in Portland about people rushing into entrepreneurship out of immediate financial need.

The advisor, Jackie Babacky Peterson, sounded a bit shell shocked, referring to the newly unemployed launching new businesses on their credit cards. That indeed is a very bad path.

Here's a transcript from that section:

"Advisor Jackie Babicky-Peterson is seeing unemployment and entrepreneurship meet but not necessarily in a good way."

"Many people get laid off from companies so they are deciding this is a good time to launch a business even though it may be very difficult."

"Many people will rush into biz for themselves without sufficient planning and with little or no savings they'll use personal credit cards to get going. 'Just pure startup money is now - and always has been - pretty impossible.'"

"Credit cards will kill you."

She concludes: "I think we will have more failures."

I'd like to parse this for what slow, measured, startup types can take from this.

Ms Babacky-Perterson is spot on identifying the process of 'rushing into business' as a way of pre-scheduling the likely death of your enterprise and damage to your personal financial welfare.

One line in that quote is critical. It was about the difficulty in attracting outside money to small startups. Outside investment money for brand new startups has never been available. Not in this bad economy and not in the past when things were better. Appropriate small-scale startup money only comes from your pocket. Alternately, outside investment can come, with an increasing chance for trouble, from friends and family.

And yes, using credit cards to finance your rushed effort will likely kill your startup.

And yes, with more startups there will be more failures. However, the most vibrant regional economies in the US have high startup rates AND high failure rates. What's working here is that cultures of entrepreneurship and participatory commerce are celebrated. If something doesn't work, you try something else. There can't be successes if there aren't failures. The key is how we deal with those failures and learn from them, and how we support the culture of entrepreneurship that engenders all this activity.

And yes, if you drive a boatload of other people's money off a cliff (see current events), you've created dysfunction and hurt the system for those that follow. If you lose a small amount of your own capital (and probably a large amount of time), then you're smarter and ready for the next effort.

In the past, I have quoted Vivek Wadhwa whose common sense seems to show at key points in these national discussions of entrepreneurship. (Jan. 5, 2008)

Vivek Wadhwa founded two tech startups and now researches entrepreneurship at Duke and Harvard.

While Mr. Wadhwa's comments speak specifically to large firms, his ideas deliver critically important meaning to the discussion of small startups.

Mr. Wadhwa says the Fortune 500 is full of companies that were founded during bad times: Johnson & Johnson, Disney, Cisco, and Intel to name a few.

The Marketplace reporter Mitchell Hartmann then referred to a big entrepreneurship organization as saying startups will not increase due to these terrible market conditions.

Vivak Wadhwa says that's the wrong conclusion to draw from the current economic conditions.

Here is where I want to shine a bright light on the good words of Mr. Wadhwa.

"We'll be back on track in 2 - 3 years. By that time you will have gotten your business model working, you've got your products perfected, you know your customers, you know your market space, and now you can go to the angel investors, the venture capitalists and pitch a real company to them."

Mitchell Hartmann closed his piece this way:

"So, if you don't have funding from your own nest egg, or from friends and family, you can pretty much forget about going from 0 to startup during this downturn."

With no diss at all to Mr. Hartmann, I humbly submit a concluding summary that would promote some glass-is-half-full action steps.

Mine would run something like this….

If you can invest a small amount of money and a large amount of your time, you can create your own sustainable enterprise in these difficult economic times. With hard work that enterprise can become a commercial platform allowing you to go forward in life with more personal options and more financial security.

Thanks to Mitchell Hartmann for the great piece and thanks, as always, to Marketplace.

Now get out there ASAP and start something. Slowly.


Marketplace broadcast of this story

Labels: bootstrapping, business partners, business plans, entrepreneurship, platforms, startups, The slow start up movement

We voted with our feet and chose the area of Madison, WI to raise our family and to grow our businesses. Next to getting married, it was the best decision we ever made.

What higher recommendation could I make? I'm still thrilled with that choice 30+ years later.

I've started a number of new enterprises from this region since then, and now I get to work from here, helping folks launch their new businesses.

The eight counties of South Central Wisconsin have been rolling out a unified front for economic development in this region and I'm really delighted to see the progress being made. This area is a fabulous platform for creating new enterprises and improving your life.

That's why I really like the name they recently gave their new organization, Thrive.

For anyone looking to launch or grow a tech based enterprise, this is an ideal place. The research support and connections here are world class.

For those of us working as independent entrepreneurs (IEs), this place is perfect.

In both of the last enterprises we ran from the Madison area, we had customers on 5 continents. There are just no limits to the transportation and communications resources available here for the independent entrepreneur.

And yes, while we worked globally, I was also able to readily build an excellent regional economic base because of our easy access to Milwaukee, Chicago and the Twin Cities. All the early, sustaining, pay-the-bills, orders arrived from this hub. And we were in the middle of it, in a really lovely, invigorating environment, doing great startup work.

The world is only so virtual. You also need to show up. Being in the middle of this very valuable, and economically diverse region puts you on the doorstep of millions of people, representing countless different markets and industries, with relatively quick drives. And you get to be virtual the rest of the time, in one of the most beautiful and dynamic places on earth.

I believe that knitting together all the stakeholders in a project like this is tantamount to herding cats. The folks that have brought the new Thrive organization to this point should be thanked heartily and congratulated.

With the launch of the new name, Thrive has also named a new Chair. He is John Biondi, who I had the great pleasure of meeting with last fall. John has a rich and interesting track record working with science based high tech firms. After talking with John I am also firmly convinced he is strongly committed to independent entrepreneurs doing sustainable work.

I knew I would like John, when I showed up at his office and he was the only one in jeans, surrounded by suits. John said it was casual Friday, but that seemed to have caught everyone else off guard. John seems fully capable of declaring casual days all on his own, which I greatly admire. Also seems like a great metaphor for the kind of work we do in our region.

While Thrive rolls out and begins to focus on its key sectors, they will also be making resources available for anyone interested in starting or growing their enterprises in our smart, beautiful region.

If you would like help from the perspective of an IE that lives and works in this region, get in contact. Better yet, visit one of the gems of our region, Monroe, WI on Jan 7th. I'll be sharing a talk that evening with their Entrepreneur and Inventor Club meeting. The focus of this talk is on innovation and invention for the independent entrepreneur. I'll link info below. Stop by and let's meet.

When I think of all the wonderful cities, towns, villages, open spaces, natural treasures, coffee stops, pie places, great bowls of soup, and all the inventive, amazing small businesses I know about in our region I can't imagine a better place to work from. I've started thinking about all of them as 'Thrive-Points'.

Thrive is a great new name for a wonderful region to live and work. Get in touch with Thrive (below) or meet me in 'Thrive-Point' Monroe!



Thrive the newly named regional economic development organization for the best place on earth to locate and grow yourself and your new enterprise.

Download the Green Co. Entrepreneur and Inventor Club press release here. From Idea to Manufacture: The Process of Invention.

C5-6 Technologies John Biondi is the President of C5-6

Labels: entrepreneurship, platforms, startups, The slow start up movement

The most recent issue of Barron’s (12/25/06) ran an interesting cover story called 'Sizzle Inc.'.

The Barron's writer, Johnathan R. Laing, interviewed the principals of the international research firm GaveKal. I’ve ordered the book. More in future posts.

The subtitle of the article is “For the US, developing the sizzle is now just as important as selling the steak. Shedding risk and stabilizing the economy by making products abroad.”

While this outsourcing article is directed at large businesses, their ideas about creating value are useful for start ups and emerging enterprises.

The GaveKal research shows that the spreading of the economic risks, as represented by outsourcing, is slowing the total amount of volatility we all feel. The suggestion is that macro and micro economic systems become better balanced, less volatile and more valuable as they become increasingly integrated

Those of us in economically better developed countries need to plan our enterprises carefully so as to be able to make the most appropriate contributions.

The Barron's/GaveKal piece talks about platform companies. These are organizations that are highly focused on their core competencies. Core competencies are not static placeholders used to fight off change. Unique core competencies are platforms for growing new solutions for your markets.

Here's what the article says about platform companies, "Platform companies require far less capital because they concentrate on product development and sales, leaving to parties abroad the heavy financial lifting entailed by manufacturing."

As a side note, I agree that manufacturing is the heaviest lifting at big global scales, but for small and emerging firms, the ability to uniquely and innovatively manufacture products is entirely viable. I’m watching many examples of this in my day job. The art and efficiency creative enterprises are able build into manufacturing can be a great core competency in the emerging world of smaller, more specialized production runs.

I think of great short run manufacturing capability as the ‘D’ in R&D, research and development. Great short run manufacturing is always adapting, always getting smarter, often out in front.

That said, the platform model in the article focuses on the three legs of a sustainable economic structure: R&D, design and sales/distribution. Then, they recommend, outsource the rest.

Outsourcing is a controversial term, but remember, for start ups and emerging enterprises, outsourcing doesn't need to be across oceans. Outsourcing for start ups can also be the folks just out your back door, or your next UPS/FedX visit.

The solutions you provide to real problems are your platform. You plug in the rest of the world as needed.

I put up a post about how well this worked for us (Fri., May 13, 2005 'Remote Partnering'). We outsourced out our back door, literally, and it worked very well for many years. We outsourced an expensive manufacturing step we didn’t feel we needed to invest in. We bought into excess vendor capacity. The vendor added to their base load, and everyone benefited, especially our customers.

I watched this platform model work successfully for more than 25 years in our first enterprise, Banner Graphics.

I define a platform company as an enterprise with a unique core competency for solving problems in their carefully identified target markets. A platform company executes repeatable solutions to real problems. A platform company has their business processes in place, not on paper.

A platform enterprise is designed to get smarter and more valuable over time, not necessarily bigger as measured by many of the typical metrics.

For entrepreneurs of any kind, I believe value emerges at the intersection of problem solving, sales, and execution.

You need to deploy these most productive assets skillfully. You have to know enough about your market to be able to approach it with authority and at the least possible cost initially. The platform concept offers this path.

Do what you do best and plug in the rest. If your solutions are valuable, other organizations will knit their platforms into yours.

The Barron's article was heavily macro economics oriented, focusing on China and mega supply chains. However, I've lived the start up side of this and the GaveKal ideas about platform enterprises are just as valuable for emerging enterprises, probably more so.

As you work on your new enterprise, don’t let yourself get caught in the common trap of trying to control all the variables.

It’s more helpful to think of your enterprise as a platform; a platform for solving problems, a platform for helping your markets, and most of all, a platform for continuously creating sustainable growth for your enterprise.

If you plan and execute well, your organization will be able to continuously create sustainable, valuable launches.

That friends, is why we call them platforms.

The Barron's article posted at Silicon Investor

The GaveKal site

Labels: Outsourcing, platforms

I like Kevin Maney's tech columns in USA Today. He's a good writer and he keeps up a nice blog about tech news.

Kevin had a piece in the paper on Nov 22, 2006 that caught my eye. He was writing about Amazon.com’s new vision for entrepreneurs. Amazon is beginning to unbundle their operations so that outside organizations can now pick from many Amazon in-house capabilities and apply them to their own enterprises.

This has been done with digital products in the past, but Amazon is gearing up to let us do this with 3D stuff, using their computers and providing physical distribution as well.

The businesses I’ve started have always sold things to other organizations. It didn’t matter what kind of organizations, just that there was a structure of some kind in place. For seed stage start ups, selling to other organizations has been a far more efficient way to start enterprises than selling things to civilians. The basis for this idea is that selling directly to the public has been far more expensive, and, most importantly, much more time consuming. Most start ups do not have the time available to waste dealing with anyone who can walk through the front door.

Obviously, that ground has been shifting daily as the internet emerges. The ability to sell directly at the retail level has been growing for the big guys as well as start ups.

The ability to keep enterprises small, fast and efficient has never been easier or cheaper. Now, the ability to sell to civilians seems to be emerging with the potential to take us far beyond eBay.

What I like about this Amazon development is that (hopefully) start ups and emerging enterprises can sell to civilians in ways they never could before, by opening different kinds of front doors.

Amazon won’t be the only portal you can do this with, but they are lighting the way. This trend will enrich the entrepreneurial community worldwide.

With the Amazon model, Kevin Maney says "You can rent space on Amazon’s computers to run a business, or to rent out its transaction capabilities to sell things and collect money, or rent pieces of its warehouses and distribution system to store and ship items - or all of the above."

Maney continues, "So with almost no start up costs, anyone anywhere could become a retailer. It's not just contracting with Amazon to sell your stuff, the way Target does. It's leasing pieces of Amazon to create something totally unrelated to Amazon."

Now, my seed stage friends, initially this is probably not set up for you. As Mr. Maney quotes Jeff Bezos, Amazon CEO, "We can take all the things that used to be fixed cost, and let people pay by the drink." That's code for ‘this service is going to be expensive’. At first, this is probably not for seed stagers, but it’s coming.

However, it looks to me like emerging organizations with the funding could jump right in. Storage space at Amazon distribution hubs seems to be about $0.45 per cubic foot per month. I have not used the electronic interface yet, but it's reported strength is it simplicity. The new access to Amazon's computing power is priced at a rate that looks cheap to me. This will be worth exploring. If you have a tech person on your team it would seem especially alluring.

Interesting side note. As this idea catches on, it will allow Amazon and others to offer increasingly lower costs for these services. According to Jeff Bezos, interviewed at this month's Web 2.0 conference, only 17% of the capacity of Amazon's servers are used. Mr. Bezos says it's like having a Boeing 747 and leaving it parked on the runway 83% of the time.

This move by Amazon is a clear, clarion shot across the bow of the emerging entrepreneurial culture announcing that the big guns get it. They are turning their ships to serve the needs of ever smaller enterprises with an increasing array of valuable resources. Good on 'em. Thank you Mr Bezos. I hope this idea evolves well.

Business Week did a very good cover story on the Amazon rollout in it’s Nov. 13, 2006 issue. I liked a quote there from an early adopter of the Amazon offering, Chris MacAskill, a former fierce competitor of Amazon. Chris is now president of an on line photo sharing firm, who says this about the Amazon approach, "Everything we can get Amazon to do, we will get Amazon to do. You're going to see all kinds of startups get a much better and faster start" by using Amazon services.

Is it for everybody? Of course not. Is it good news for all entrepreneurs? You bet.

As for Kevin Maney, I can't leave his column without applauding some great writing celebrating this evolving story.

"What's new about Amazon is the leap to physical products. This might be one of those evolutionary milestones, like when the first fish crawled up on land, or Jimi Hendrix discovered feedback on his guitar."

My start up friends, big new evolutionary benefits are raining down on our community at an increasing rate. Many will help you and your enterprise become more sustainable. Follow those like Jimi followed his feedback loops.

Developments like those at Amazon are leading to a lot more opportunities for a lot more people.

That includes you.


Kevin Maney’s full article at USA Today

Amazon portal to learn more

Jeff Bezos interview at Web 2.0

ComputerWorld Magazine review of the Amazon project

Business Week story on Amazon

Kevin Maney's blog

Kevin Maney’s home page

Labels: innovation, marketing, platforms