Recently by Brian

When creating a new product, there are so many things that can go wrong (many of which cannot be prepared for or are completely unexpected), so it only makes sense to use existing technology or ideas in your product to increase reliability.

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Filed under: Alphonse Anderson | Ann Arbor, MI | Charles King | Competing Globally | Financing | Innovation | Renewable Energy | Start-Ups | Velocity² Wind | Wind Power

When talking to Alphonse Anderson and Charles King of Velocity² Wind I found that one of the most interesting parts of their process to create a new product of small wind turbine was how much of their product was, essentially, theirs. King said, "we try to re-invent as little as possible. Use what's out there."

What is "out there" for small wind turbines? Again, King: "We've found ourselves taking ideas from aerospace to roller coasters." Roller coasters? Sure, the aerospace industry can easily offer some design ideas to small wind turbines, but the thought to look into how roller coasters are built (presumably regarding their light-weight structure; they wouldn't comment) is marvelous.

It turns out that Anderson and King have tapped in to a historically successful business plan: don't re-invent the wheel. When creating a new product, there are so many things that can go wrong (many of which cannot be prepared for or are completely unexpected), so it only makes sense to use existing technology or ideas in your product to increase reliability.

I posed this question to Alphonse Anderson and Charles King of Velocity² Wind: "what are some of the first things you should do when you first have an idea for a new business?"

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Filed under: Alphonse Anderson | Ann Arbor, MI | Charles King | Competing Globally | Financing | Innovation | Renewable Energy | Start-Ups | Wind Power

I posed this question to Alphonse Anderson and Charles King of Velocity² Wind: "what are some of the first things you should do when you first have an idea for a new business?"

King told me that it's necessary to make sure that the idea is original. He said to use "Google Patents and research databases of universities to look for Phd. topics" and to find where technology is now. There's no sense in spending your time on a product for which you cannot get a patent or a service that is already being developed by another (presumably larger) company.

He said that "you must look at your personal network to find people who are willing to help you." This goes beyond asking freinds and family for money. When starting a new endeavor, you need to know who can be a part of your program, or even who knows somebody who can offer advice or a service. It's much more efficient to utilise your network rather than the yellow pages for your entrepreneurial needs.

King followed up by saying "If you believe that you have no connections, then you're not trying hard enough."

They have chosen to use alternative materials in building small wind turbines in an attempt to increase efficiency and decrease cost. With only a few tweaks of materials, Anderson and King have a real shot at breaking into the fledgling industry.

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Filed under: Alphonse Anderson | Ann Arbor, MI | Charles King | Competing Globally | Financing | Innovation | Renewable Energy | Start-Ups | The MORE Program | Velocity² Wind | Wind Power

Recently, I met with Alphonse Anderson and Charles King, founders of Velocity² Wind and participants in the MORE Program. They have chosen to use alternative materials in building small wind turbines in an attempt to increase efficiency and decrease cost. With only a few tweaks of materials, Anderson and King have a real shot at breaking into the fledgling industry.

The fledgling industry of small wind power, that is. Large-scale commerical-grade wind power is already a huge market, making up most of the 5.2 thousand Megawatts of wind power that was installed in the U.S. just last year. However, the small wind industry is still struggling to take flight, mostly due to the consumer worries of cost efficiency, noise, and visual impact. Oh, and safety issues, too (although there have been no 'innocent bystander' casualties due to wind power. The only casualties have been to workers installing and repairing the large-scale systems, and an unfortunate parachuting accident).

When King had the idea for using alternative materials for a wind turbine, he realized that the only way to properly approach his idea was to attempt it in small wind systems, whether or not it would work in large-scale wind. He remarked that trying to pitch his idea to the large-scale wind companies would be futile, but small wind was a good bet since no company has jumped out to be the leader.

Anderson and King have been working with prototypes of their design and comparing it to existing designs from competitors. So far, their tests have given them great results. Since they decided to enter an industry that has not yet solidified may very well allow them to break through to the surface soon.

UM has begun to meet new entrepreneurs halfway by allowing them to "utilize the school's enormous resources [such as] faculty consulting, laboratory equipment, research projects and professional development classes."

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Filed under: Ann Arbor, MI | Competing Globally | Innovation | Start-Ups | University of Michigan

The University of Michigan is (finally) doing its part to lift Michigan's economy: it has recently opened many of its resources to area entrepreneurs not linked to the university.

A good way to turn around this poor economy is by creating new industries to bring money into Michigan. UM has begun to meet new entrepreneurs halfway by allowing them to "utilize the school's enormous resources [such as] faculty consulting, laboratory equipment, research projects and professional development classes."

What does this mean? Well, for one, that UM is feeling the slow economy. In addition, it has decided to take steps toward changing things. With any luck, area entrepreneurs will be able to use UM's resources to solidify their business in the market.

Yes, ethanol can be very useful as fuel. It could reduce our consumption of gasoline. But corn ethanol isn't the answer. If we are to use biofuel, then we need to choose a more efficient type of ethanol.

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Filed under: Fuel Efficiency | Renewable Energy

It is becoming more and more obvious that we need to move away from oil as a major source of fuel. The problem is that we are obviously and pathetically hooked on it. Nearly every middle-class American has considered taking the car to the corner store as opposed to walking. Although it is great that we've found a way to reduce oil consumption in cars with biofuels, we need to make sure that we're making the right decisions.

Corn ethanol, the biofuel receiving the most support from the U.S. government, is a bad substitute for gas. In fact, corn ethanol provides not more than a 3% reduction of greenhouse gas emissions, whereas sugar cane ethanol and celluslosic ethanol, respectively, provide a 50%-70% and more than 90% reduction in greenhouse gas emissions. As it turns out, corn ethanol is not very 'green.'

Yes, ethanol can be very useful as fuel. It could reduce our consumption of gasoline. Experts agree that ethanol is energy efficient. But corn ethanol isn't the answer. If we are to use biofuel, then we need to choose a more efficient type of ethanol. However, we need to choose wisely because with the help of biofuels food prices are soaring. Biofuels should only be a means to an end, not a permanent solution. The only way to create a system that can last is to eliminate the use of oil.

Whether or not you believe in global warming, it's hard to deny the strain that fossil fuels have put on our planet. We need to change not only how we produce and consume energy, but also what types of energy we use.

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Filed under: Renewable Energy

Whether or not you believe in global warming, it's hard to deny the strain that fossil fuels have put on our planet. We need to change not only how we produce and consume energy, but also what types of energy we use.

Of course, this leads us to alternative energy. The only problem is that every type of alternative energy has its downside. Some of the most notable are: the radiation hazard of nuclear power, and the price and unpredictability of solar and wind power.

So we've come to the point where we need to choose which type of energy has the least amount of undesireable 'negatives.' I say that fossil fuels have the highest potential for problems; not only do they create tons of pollution, but we have allowed ourselves to be tied to this non-renewable resource. On the other hand, barring any unforeseen disastrous global climate emergencies, the sun and the wind are about as certain as death and taxes.

Whether it will be one hundred or one thousand years before we run out of oil, we need to embrace alternative energies now because it will take decades for us to ween ourselves from fossil fuels. Until we can rely on clean energies for most of our consumption, we must reduce our use of oil. This starts with improving biofuel technology so that we can produce it with clean energy without net energy loss. It starts with replacing the outdated power lines that cross the United States with new high-voltage lines that carry energy from wind farms to the cities that need it. It starts with hybrid-electic cars and hydrogen fuel cells.

There's no reliable way to tell how much oil the earth has left. And if we run out, then you can just about say good-bye to plastics, among other things. We need to start the process towards alternative energies now. This requires us to buy in to alternative energies and to reduce our oil consumption.

Bizdom U expects its graduates to not only succeed, but also to give back and provide opportunities for the next generations, and it gives them the tools they need to do just that.

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Filed under: Bizdom U | Detroit, MI | Education & Training | Financing | Start-Ups

As an entrepreneur, how does this opportunity sound to you? A free one-year program in Detroit city, with living stipends, that "teaches entrepreneurship and empowers its graduates to open successful businesses."

That's the "entrepreneurship boot camp" at Bizdom U, a non-profit organization in Detroit. It's a program founded by Dan Gilbert, Chairman and Founder of Quicken Loans, and led by a team of skilled professionals.

The Executive Director, Ross Sanders, told Crain's Detroit Business that "When we started with our initial class in January 2007, it was an entirely new initiative. Nothing the likes of it had ever been done." In fact, the organizers say that the program is unique in the United States. Sanders also says, "The program's goal is to create a new wave of entrepreneurs who will go out and start businesses within the city of Detroit."

Any adult with a high school diploma or GED is eligible. But as for the requirements, Bizdom U asks, "Are you ready to put your nose to the grindstone and perform at a high level?" It's a rigorous program, but the students have "free use of cutting-edge business technologies like Blackberries and notebook computers" in order to better help them succeed.

Upon completion of the program, each student is eligble for anywhere from $25,000 to $500,000 worth of funding towards their business, depending on whether or not they reach their goals. The students are expected to invest their time, energy, and/or resources back into the communities in and around Detroit.

Bizdom U represents a new way of thinking in this country. It expects its graduates to not only succeed, but also to give back and provide opportunities for the next generations, and it gives them the tools they need to do just that. When looking back at the first year, organizers have been pleased with the outcome. With any luck, Bizdom U can build on its successes.

What Spark does is, well, just about everything to help entrepreneurs to build a better business, or even to start one. Some of the services that Spark provides are the Business Accelerator, Online Business Planning, and, of course, Financing.

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Filed under: Ann Arbor Spark | Ann Arbor, MI | Education & Training | Financing | Start-Ups | Venture Capital

What's out there to help future entrepreneurs to succeed? As previously mentioned, there are many options available for students. As it turns out, there are also plenty of opportunities that aren't run by a university.

One organization that is trying to help innovation in the area is Ann Arbor Spark. The website says that "Ann Arbor Spark is a public-private partnership whose mission is to advance innovation-based economic development in the greater Ann Arbor region." It's an organization drawing from some of the businesses, communities, universities, and government resources in and around the Ann Arbor area.

What Spark does is, well, just about everything to help entrepreneurs to build a better business, or even to start one. Some of the services that Spark provides are the Business Accelerator, Online Business Planning, and, of course, Financing:

In addition to attempting to connect entrepreneurs with venture capitalists and Angel funds, whose mission "is to make equity investments in early stage and emerging growth companies," Spark also provides lots of information on credit enhancement and Tax-Exempt Industrial Revenue Bonds (IRBs).

Spark has received great press from Fortune's 100 best places to live and launch, particularly for its role in The Michigan Pre-Seed Capital Fund. Spark also runs a Regional Incubator for interested businesses.

Spark's network is very large, and there is much more information available on www.annarborspark.org. The website is a useful tool for anybody interested in getting help with their business. Also, as an added bonus, Spark keeps track of positive news regarding Michigan and its businesses. It's not surprising to see that Spark has received awards for all its tremendous, and necessary, services that it offers to everybody.

I asked Yue what he thought about that day when he had his meeting with Zell Lurie and entered in the Empowered Business Plan Competition. He said "it was at that point where the resources really started to pour in."

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Filed under: Ann Arbor, MI | Education & Training | Financing | Innovation | MPowered Entrepreneurship | Start-Ups | The MORE Program | Yue Fan | Zell Lurie Institute

One question remains from my series on Yue Fan, his Pattern Clock, and the MORE Program: How did Yue get involved in the first place? Obviously he had the idea for the clock, but how did he set the process in motion?

"I had the prototype and I was dressed up for a meeting [with the Zell Lurie Institute at the UM Business School]. The Business School runs a program where they invest about $100,000 in companies."

Yue continued, "I was in preparation for the meeting but I was walking through North Campus when I saw this [MPowered Student Organization] Business Plan Competition, so I thought 'I might as well do that.' A little bit later we found out we'd won, and we won a trip to California to learn more about starting your own company." A trip to California including the opportunity to give a pitch to a panel of respected Venture Capitalists and get feedback from them.

"That was really how I got started with entrepreneurship resources at Michigan and around Ann Arbor. Before that, I kinda just sat in my room and tried to get help online."

For those of you keeping score at home, that's 3 opportunities. He made a pitch to the Zell Lurie Institute at UMich. He was a winner of the MPowered Business Plan Competition. After he submitted his business plan to the MORE Program, he got involved in their summer internship, including receiving $5,000 in grant money.

I asked Yue what he thought about that day when he had his meeting with Zell Lurie and entered in the Empowered Business Plan Competition. He said "it was at that point where the resources really started to pour in."

There are tons of opportunities for University of Michigan students. Yue didn't even participate in the MORE Program's job fair earlier this year, designed to help students get internships with start-up companies. In future posts, I will tackle the issue of finding opportunities like the ones detailed here that are available to not just college students, but to the general public.

Professors Richard Larrick and Jack Soll conducted tests to see whether the unit of MPG was giving people the wrong ideas. As it turns out, they were right.

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Filed under: Automotive | Fuel Efficiency

We've always used Miles Per Gallon as the unit for measuring the gas mileage and fuel efficiency of automobiles. Why? Sure, the numbers are fairly easy to work with, but just because it's easy doesn't mean we've found the best way to do it. With all the innovation going on with hybrids and making more fuel-efficient cars, now is the time to change the way we measure the fuel efficiency itself.

Duke University professors Richard Larrick and Jack Soll conducted tests to see whether the unit of MPG was giving people the wrong ideas. As it turns out, they were right; most people were thrown off by MPG : "for example, most people ranked an improvement from 34 to 50 mpg as saving more gas over 10,000 miles than an improvement from 18 to 28 mpg, even though the latter saves twice as much gas.

"These mistaken impressions were corrected, however, when participants were presented with fuel efficiency expressed in gallons used per 100 miles rather than mpg."

The New York Times wrote that "[Larrick and Soll] ran a series of experiments to show that the current standard of miles per gallon leads consumers to believe that fuel consumption is reduced at an even rate as efficiency improves. But that’s not the case.

The following graph plots Gallons Used Per 100 Miles vs. Miles Per Gallon between 10 and 60 Miles Per Gallon. Note that the relationship between fuel savings and MPG is not linear. Also note that changing from a 10mpg vehicle to a 20mpg vehicle (5 gallons saved per 100 miles) is five times more efficient than changing from a 34mpg vehicle to a 50mpg vehicle (1 gallon saved).

 

As professors Larrick and Soll found in their examination, many people have trouble understanding this. We should switch our system of units to GPM to avoid any confusion. Fuel efficiency would be rated with a single-digit number, the lower the better. When comparing two cars' GPM, all you would need to do is subtract one from the other. Wouldn't that be so much easier than a hyperbolic equation?