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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.

Tree Town Toys fills a market void in the toy industry, providing their product list in multiple different search queries, from age range to different skill sets required for games. From local to national business plans, this local company might have both figured out.

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Filed under: Ann Arbor, MI | Information Technology | Start-Ups | Tree Town Toys

One year ago this month, Hans and Tricia Masing took their online store, Brain Station, to the store front.  Opening their first store, Tree Town Toys in Ann Arbor, they were looking to provide unique and interesting toys to the community.  As new parents, they were driven by their own search for great toys for their children.

As automotive engineer (Tricia) and an IT guy (Hans), the two seem to be an odd couple in the toy industry.  However, combing their quest for toys with Hans' IT experience proved fruitful and helped create their online store Brain Station.  Filling a market void in the toy industry, Tree Town Toys and Brain Station provides their product list in multiple different search queries, from age range to different skill sets required for games.  Want to develop hand eye coordination? They've got 243 toys for that.  Toys for a 1-2 year olds?  Choose from 53 different toys for them.

As all start up companies discover financing is one of the most difficult portions of the process.  Hans and Tricia were no exception to this.  Tricia notes the Michigan economy as a stumbling block.  She notices a change in targeting perspective as one solution to their initial problems.  Current perspectives are interested in national, not local business.  Managing an online store for Tree Town Toys, which is very similar to their Brain Station store, must have helped to ease investors minds.  While the store was only in Ann Arbor, their products are still being sold across the United States.

Beyond toys, Tree Town Toys provides the community with two other great assets.  They are helping our economy by providing more jobs.  Those interested in marketing, customer service, and toys should check out their careers page. Need a creative activity for your own children?  Take a look at their events page.

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.

The bottom line is that John Ellis and Dennis Carmichael, the founders at ERT Systems, chose to approach the same problem from a different path, and it brought success.

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Filed under: ERT Systems, LLC | Innovation | Renewable Energy | Solar Power | Start-Ups

ERT Systems is an Ann-Arbor based company whose product is a wireless system that keeps track of firefighters in a blazing building. It's a helpful (and hopefully life-saving) invention, one that the Ann Arbor Fire Department plans to incorporate into its program soon. But enough about doing good for the world, what I want to look at is how it could make a lot of money.

ERT is not the first company to make a product like this one. However, ERT uses different materials than all the other companies, and so they have the easiest on-scene deployment on the market in the market.

The bottom line is that John Ellis and Dennis Carmichael, the founders at ERT Systems, chose to approach the same problem from a different path, and it brought success. As it turns out, using innovative techniques and materials to do the same thing is a good way to start a new business.

For example, take the solar panel industry. Right now, more than 90% of existing solar panels are made with silicon. Soliant Energy, the solar panel company I worked for last summer, was based upon a simple principle: use less silicon than everybody else. This new way of using the same materials was a great selling point for the company, and that's how we got investments.

There's also a new technology called CIGS (copper indium gallium selenide) in the solar industry. By staying away from increasingly costly and hard-to-find silicon, companies such as HelioVolt are trying to build a successful future. CEO B.J. Stanberry said, "CIGS will have a significant portion of the market within 10 years." Using different materials than the other companies in the market may work very well for HelioVolt.

Yue needs some help applying for a patent for his Pattern Clock: "I wrote a non-provisonal patent by myself, so we know it's bad. We know it's really bad." Luckily, as MORE Program Director Jessica Pfeiffer explained to the Detroit Free Press, "We're here to be mentors and provide helpful connections between entrepreneurs in Ann Arbor and Detroit."

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Filed under: Ann Arbor, MI | Education & Training | Financing | Innovation | Start-Ups | The MORE Program | University of Michigan | Yue Fan

The MORE Program at the University of Michigan does more for young entrepreneurs than just give them grant money. Yue Fan said that "the MORE Program is a program that helps students get experience and get knowledge in starting their own companies."

Yue needs some help applying for a patent for his Pattern Clock: "I wrote a non-provisonal patent by myself, so we know it's bad. We know it's really bad."  Luckily, as MORE Program Director Jessica Pfeiffer explained to the Detroit Free Press, "We're here to be mentors and provide helpful connections between entrepreneurs in Ann Arbor and Detroit." Connections such as possibly finding a good patent attorney.

Yue told me more about his activities with the MORE Program: "We have weekly meetings and we get to ask the directors, Brian[Balasia] and Jessica [Pfeiffer] for advice at any time [...] during our weekly meetings we get to bring up what resources we need and what we're kind of getting stuck on that they'll work to find the resources we need to keep going."

"Every week we meet, one team gives a presentation about what they're doing so we learn a little bit more about eachother and we learn a little bit more about what we might run into as we progress along."

So where has Yue progressed to now? He's considering advertising the Pattern Clock on New York City radio. Although it would cost him $3,600, which seems like it would be a lot of money, the advertising would "make about 500,000 impressions." 

"It's amazing how effective radio advertising can be," said Yue.

Anybody can pre-order the Pattern Clock through the website. He's already gotten 1,000 pre-orders, of which "a few hundred" were in the first few days after being "featured on gizmodo.com, a tech blog, and other blogs." About the large amount of pre-orders, Yue said, "it's a pretty good indicator that people want to buy this."