Issue 2 2016

2016 Issue 2

Develop, Innovate, Prosper

Start-ups Receive Support From Multiple Sources in Oklahoma p. 3

Expand Your Companies Reach Worldwide p. 6

Food Trucks Giving Back p. 7

Oklahoma’s Small Businesses Find Success in IncubatorsBusiness incubators nurture the development of entrepreneurial companies, helping them survive and grow during the start-up period, when they are most vulnerable. These programs provide client companies with business support services and resources tailored to young firms. The most common goals of incubation programs are creating jobs in a community, enhancing a community’s entrepreneurial climate, retaining businesses in a community, building or accelerating growth in a local industry, and diversifying local economies.

The role of the Oklahoma Department of Commerce in the incubator process is to certify the incubators and to ensure the incubators meet certain standards of excellence.

Two Core Principles That Characterize Effective Business Incubation include: The incubator aspires to have a positive impact on its community’s economic health by maximizing emerging companies’ successes.

The incubator itself is a dynamic model of a sustainable, efficient business operation.

These incubators provide: Flexible space and leases;access to office services and equipment; an on-site incubator manager as a resource for business

advice;exposure to a network of outside business and technical consultants, often providing accounting, marketing, engineering and legal advice; and assistance with financing and marketing.

Currently, 37 certified small business incubators are operating in Oklahoma with tenants ranging from small service companies to high-tech research and development operations and manufacturing entities.

Oklahoma’s business incubators helped grow many successful businesses in 2015. Here are a few stories of Oklahoma businesses that grew their operations through Oklahoma’s Certified Incubators.

Waldrop Construction, Inc.The Catbird Seat at UCOOklahoma City, Okla.

Max Waldrop has spent a career in construction, and his experience in project management with larger companies positioned him for growth.

His new company was rapidly outgrowing the family dining room table, and he came to The Catbird Seat incubator in January 2011 for space and business services. At the end of the first year, the company had $472,000 in gross sales.

As a Native American company, Waldrop Construction successfully completed SBA’s 8(a) certification as a minority contractor. The 8(a) certification is specifically designed for companies entering the federal contracting arena. This certification was received while located in the incubator.

In 2013, the company grew too large for the incubator facility. When the company graduated from the incubator in the fall of 2013, the company also

Continued on page 4

Waldrop Construction, Inc. saw tremendous growth while located at The Catbird Seat at UCO an Incubator in Edmond.

TX

Oklahoma Department of Commerce certifies incubators and assures standards of excellence. Since the

inception of certifying incubators the State of Oklahoma has benefited from an increase in

the number of start-up and expanding small businesses. These businesses have created jobs

and enhanced economic activity in the Oklahoma communities in which they are located.

STATE OF ENTREPRENEURSSmall Businesses Find Guidance at Oklahoma’s Certified Incubators

Contact ODOC’s Small Business

Specialist for more information at

405-815-5143 or email [email protected]

741full-time jobs provided by incubator tenants. 161 small businesses are currently leasing space in Oklahoma’s small business incubators

37 certified small business incubators are operating in Oklahoma, with tenants ranging from small service companies to high-tech research and development operations.

780 small businesses have located in ODOC certified business incubators, throughout the life of Oklahoma’s Certified Small Business Incubator Program.

409 small businesses have graduated from the program or relocated to a larger facility.

1,944 people are currently employed by the businesses that remained in the state.

Cities Worth Moving to If You Want to Launch a Business - Entrepreneur.com, Aug 2015 (Oklahoma City)

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Start-ups Receive Support From Multiple Sources in OklahomaEntrepreneurs who launch a small business in Oklahoma find that the amount of help they can receive is anything but small. WeGoLook and Monscierge are two examples of Oklahoma start-ups that took advantage of the assistance offered, and they are now taking their industries by storm. WeGoLook is a mobile online platform that dispatches more than 20,000 people to verify claims made by Internet sellers about assets or properties, and Monscierge is a technology solution that enables hotels to communicate more seamlessly with their guests.

Both benefitted from i2E Inc., part of an OCAST (Oklahoma Center for the Advancement of Science and Technology) initiative aimed at connecting startup businesses in Oklahoma with sources of capital and other assistance.

“The climate for entrepreneurs and innovators in Oklahoma right now is exceptional,” says Scott Meacham, President and CEO, for i2E. “We are seeing more and higher-quality deals over the last 12 months or so than we have ever seen. Oklahoma City has created that critical mass of place. In Tulsa, we see a good level of innovation, and they are getting to that point where the power of place fuels innovation and start-ups.”

Since its inception in 1998, i2E has helped literally hundreds of companies start and grow in Oklahoma. “This growth has occurred in various sectors and various locations across the state,”says Meacham. “This has traditionally been a low start-up capital state, but we have been able to leverage over 20 times the level of capital coming in. The state primes the pump, and that has provided huge leverage. We are helping companies right now in aerospace ventures and in new battery technology for automobiles. We have just launched a Venture Assessment Program that lets new companies test whether or not there is a market for their product or idea. Getting to ‘no’ quicker is the goal.”

Of course, getting to “yes” is the ultimate goal for any entrepreneur, and that’s where 36degreesNorth in Tulsa comes in.

“We want to be the gathering place for entrepreneurs,” says Dustin Curzon, executive director of 36degreesNorth. “We want to be a front door to that community. We have mentors and advisors. We saw a need where we could come in and help connect entrepreneurs to valuable resources and remove redundancies. We can help people be more effective.”

A new home for 36degreesNorth is being built in 11,500 sq. ft. of space in the former Universal Ford Motor Co. building in the Brady Arts District in Tulsa. Upon its opening in January, the space will offer seven conference rooms, 10 private offices and 48 desks available for rent.

Education and networking will be primary goals of this new hub for entrepreneurs, says Curzon.

“Our goal is to host 500 events our first year. We want to have at least two per weekday,” he notes.

“We have 36 partnering organizations. At least twice a week

we want to do workshops on site. People can come and learn about prototyping, accounting, branding, social media and making websites. We also plan to hold a regular speaker series.”

The end goal, he says, is economic development. “We intend to improve the quality of life in Tulsa through economic development,” Curzon says.

“We will help entrepreneurs make connections in Tulsa, and we will put Oklahoma on the map nationally as a place for innovation.”

High Tech High on OKC

Danny Maloney, founder of Tailwind, believes Oklahoma is already on the map nationally as a place for innovation. Maloney co-created the company that produces content management and planning tools that help its customers market and brand themselves on social media platforms such as Instagram and Pinterest.

“We moved to Oklahoma City in 2012 from Manhattan, New York,” he says. “We chose Oklahoma for two reasons: My wife had a great opportunity here, and her family was here.”

Tailwind now employs 20 people, most of whom work in Oklahoma City. “We now serve over 50,000 brands worldwide,” Maloney says. “The technology community here is growing very quickly. The local chamber has been incredibly helpful with introductions and recruiting opportunities. And i2E has been helpful, particularly with venture advisory and venture capital. They led the first investment round in our company. We helped launch OK Coders. It came together as a collaboration of the chamber and the University of Oklahoma. We created the first Developers Boot Camp in the state of Oklahoma. It is now going into its third year.”

Maloney says that as he looks back on his relocation to Oklahoma three years ago, “it seemed a lot scarier than it ended up being. I have learned that this whole community functions very well together. My advice to other entrepreneurs in other parts of the country is to join me and take the leap.”

36degreesNorth in Tulsa is the central gathering point for Tulsa’s entrepreneurs, community resources, and start-up programs.

One of the things we provide small business owners and a prospective entrepreneur is the ability to talk to someone about their business, who’s from the community and has a desire for seeing success in that community.

~ Brad Rickelman, Assistant Director Meridian Technology Business Development Center

purchased and rehabilitated a building in central Oklahoma City. Sales for 2014 were $4 million, an 855% increase in sales over three years.

The company attributes much of their growth to their time at The Catbird Seat at UCO. The incubator provided vital business counseling to grow Waldrop Construction.

AISS TechnologiesMeridian Technology Business Development CenterStillwater, Okla.

AISS Technologies, a designer and manufacturer of RFID-based electronic access control systems, is a leader in the intrusion, access control and building facilities management industry. With thousands of installations in more than 20 countries worldwide and spanning industries including banks, airports, hospitals and high security prisons, AISS chose Stillwater for its American headquarters and credits the Meridian Technology Center for Business Development for assistance during a critical time in the company’s development.

The Meridian Technology Business Development Center provided vital business connection to grow AISS, reaching customers more efficiently and effectively.

A native of Hungary, Endre Ori found his way to Perry, Okla. for an internship in 1992. Ori’s passion is creating and customizing technology to enhance and enlarge the buying experience for the customer. One such product is a kiosk-like simulator product that allows customers the ability to compare products, sort among options and greatly diminish time needed in a store to make an informed decision on products such as cell phones, appliances, vehicles and more.

For example, a cellular service provider can use the technology to allow customers to choose a phone based on aspects such as use, cost, storage capacity and plan costs. Product information at the touch of the fingertip—freeing up salespersons’ time for the all-important human connection between customer and sales representative.

Tracking customer buying trends increases store profits. AISS technology-based tools allows stores to track the number of visits and sales, and utilizes heat maps to determine the departments most visited within the store.

In order to become a client at the Meridian Technology Business Development Center, certain criteria must be met. This includes a description of the business, an application, background check and interview. Assistant Director Brad Rickelman said it is also important they have a willingness to learn and work together with the center.

“There has to be a desire in some way to work with us on their business, or at least to be able to have us help with their business,” Rickelman said.

While Oklahoma City and Tulsa offer ample opportunities and resources for business owners, Stillwater does not have as many. He describes the Center for Business Development as the oil in the engine of entrepreneurship for local communities.

“One of the things we provide small business owners and a prospective entrepreneur is the ability to talk to someone about their business, who’s from the community and has a desire for seeing success in that community,” Rickelman said.

Oklahoma’s Small Businesses Find Success in IncubatorsDeveloping start-ups by enlisting an array of targeted resources, services and professional advice for entrepreneurs.

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Fikes Engineering located in Duncan Center for Business Development Incubator in Duncan, Okla.

Agriculture Technology ServicesMajor County Economic Development Business IncubatorFairview, Okla.

Agriculture Technology Services (ATS) is an agricultural based company providing customers with Global Positioning Services for tractors, implements, utility task vehicles and chemical applicators. Krey Nightengale, owner of ATS, grew up in rural Fairview, Okla., graduated from WyoTech in Laramie, Wyo., and worked for a local agribusiness equipment dealer before embarking on his own business venture at the young age of 28 in August 2014. The business took flight and Nightengale was soon looking for a place to locate his growing company with enough space to warehouse inventory, perform billing and warranty work, and provide in-house installs and consultations.

While growing up in Fairview, Nightengale learned about the Major County Economic Development (MCED) Business Incubator and thought it might be “a perfect fit” for his new business. ATS moved into the Incubator in May 2015. MCED also views ATS as “a perfect fit” for the Business Incubator: Nightengale is young, local, and adds a growing business to the county that is a major asset to all farming operations in the Fairview area as well as western Oklahoma, Kansas and Texas.

Fikes Engineering Duncan Center for Business Development IncubatorDuncan, Oklahoma

Fikes Engineering, LLC, owned by Mark Fikes, was established in September 2010 which is the same year he rented his first office in the Duncan Center for Business

Development (DCBD), Duncan’s business incubator. Five years later Mark moved into his own facility in Marlow to continue growing his company.

“Mark is doing what all start-ups do that come into our facility are supposed to,” said Lyle Roggow, President of the Duncan Area Economic Development Foundation. “They get established, use the resources provided, and then are at the point where they need their own space. This opens up room for new start-ups to take advantage of the facility.”

Fikes was previously employed by Halliburton and involved in virtually every detail of the design, construction, and operation of refining stimulation vessels used in offshore drilling. Those 20+ years of experience provided him the expertise to build his own engineering and consulting firm.

“Moving into Duncan’s business incubator was extremely beneficial when I was getting started,” Fikes said. “It allowed me the flexibility to drop and add office space as my company grew and, at times, decreased due to the downturn in the oil industry. I didn’t have as many initial costs to invest in, such as copy machines, meeting space, or office furniture, because it was all part of renting space in the facility. But, one of the best parts of being in the incubator was having other start-ups and Lyle to go to for advice.”

Since leaving Halliburton in 2010, Fikes’ goal was to expand his business and take on additional employees while remaining profitable, eventually moving into his own facility. “I had the opportunity to buy a facility in Marlow and it just makes financial sense to move out of the incubator and to my own property,” Fikes said. “It was definitely important to me that I stay in the area.”

AISS Technologies products are designed for retail store use, and shown are just a few pieces of technology you could be seeing in stores soon.

More than 70 percent of the world’s purchasing power is located outside the United States, according to the U.S. International Trade Administration, and the Oklahoma Department of Commerce wants to make sure Oklahoma businesses are taking full advantage of that. The Department of Commerce’s Global Division provides Oklahoma businesses with a variety of market entry services on the export side.

“We help Oklahoma companies to be able to do more international business, primarily through exporting,” said Jesse Garcia, global project manager, Oklahoma Department of Commerce. “It allows companies, basically, to look at a different perspective, in terms of being able to increase their bottom line by not just focusing on domestic projects but also international.”

In turn, more jobs will be created and more revenue will be brought to the state, Garcia added. Oklahoma has three international trade offices located throughout the world: Mexico, Israel (the Middle East region) and China.

“Each office focuses on helping each company meet its needs as it tries to break into that respective market or region,” Garcia said.

One key market-entry service offered to Oklahoma-based businesses is attending international trade shows.The Department of Commerce subsidizes the cost for companies, especially small-to-medium-sized businesses, to exhibit under the state’s banner, and allows the companies to meet with potential business partners and buyers, said Garcia.

Other services offered by Oklahoma’s international trade offices include assistance with international regulations and certifications, international distributor or partner searches, market research reports and sourcing assistance.In 2014, the state’s global trade offices assisted 143 companies with international business needs.

According to the International Trade Administration, small and medium-sized businesses generated one-quarter of Oklahoma’s total exports of merchandise in 2014. Oklahoma’s top five exports are: machinery (except electrical); electrical machinery; aircraft and spacecraft; optic, photo, medical or surgical instruments; and iron/steel products.

Smithco Engineering, which designs, manufactures and delivers a range of custom-built, air-cooled heat exchangers, participated in the Mexican Petroleum Congress in 2014

and 2015. The goal for the 2015 event was to meet and interview companies who would be interested in becoming the manufacturer’s representative in the Mexico region.

“We met three potential companies that were interested in being our representative,” said Jim Matthews with Smithco. “One of those companies has already visited our shop, and we have extended an offer to be a Smithco representative. We are still in negotiations with the other two. At the show, we also met a number of potential clients.”

Matthews said international trade shows add value because they allow face-to-face meetings with companies that Smithco representatives would not otherwise normally interact with.

“We appreciate all the work that ODOC puts into these shows and the financial support they provide,” he said.

Choctaw Defense is another Oklahoma-based company that found success attending an international trade show. Representatives from the southeastern Oklahoma based company that provides manufacturing and welding capabilities attended the Paris Air Show in 2015. Keith Briem, vice president of public relations and government affairs, said the face-to-face meetings and media coverage were beneficial to the company.

“Choctaw Defense was able to get a better understanding of its main competitors and allow some industry research capability on their products and services,” Briem said.

Schedule an appointment with the ODOC Global Division by contacting Liz Tran at 405-815-5111 or [email protected]

Expand Your ReachOklahoma businesses look to expand reach worldwide with help from the Oklahoma Department of Commerce’s Global Division.

Food Trucks Giving Back

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In Oklahoma, that scrumptious choice of food is on the move as the food truck craze has taken hold. From the larger cities like Tulsa and Oklahoma City, to smaller towns like Ardmore and Edmond, food trucks are more than popular; they’re becoming a cultural phenomenon.

“The allure isn’t just the trucks,” says Brian Bergman, one of the organizers of H&8th. “Good trucks are a draw, and Oklahoma City has some great trucks. The appeal is the community.”

Permanent food truck courts have opened in Oklahoma City and Tulsa that boast clean restrooms, alcohol, shaded seating, light music and entertainment, which organizers say is a combination that few food truck parks in the nation provide.

“I don’t think the food truck culture is going anywhere — it’s here to stay,” says Josh Lynch, who co-founded Park in the Pearl in addition to his regular truck duties. “Though there have always been food trucks, I think the recent growth is because of who has a food truck these days,” says Lynch. “Chefs are turning out these amazing meals, and even Le Cordon Bleu grads are starting food trucks.”

Now, Oklahoma’s food truck culture is making real changes in the landscape of hunger and homelessness as well.

Willy Fontanez of La Gumbo YaYa, an Oklahoma City food truck specializing in Puerto Rican food, made the decision to never turn away anyone who was hungry. Fontanez offers what he calls “suspended meals.”

Those buying his food can donate an extra $5 that will go towards a meal for someone who cannot afford to eat.

“When we opened three years ago, we started the suspended meal program,” Fontanez says. “Last October was National Gumbo Day and it landed on a Sunday. Since we aren’t open on a Sunday, we still wanted to celebrate it. So we organized our first homeless food truck festival.”

Food trucks around Oklahoma are giving back to the communities that support them by addressing food poverty in the state. La Gumbo Ya Ya’s first homeless food truck festival handed out 200 meals among several different food trucks.

In 2015, Fontanez organized food trucks once every other month to hit the streets on a certain Sunday to feed the homeless. Usually, he says, about four trucks end up handing out 400 meals. Next year, he plans to make the homeless food truck festival a monthly affair.

Other food companies are also giving back. Made Possible By Us, a local charity, has teamed up with Good Egg Dining Group and Whole Foods to launch “The Food For All Truck.”This food truck will be present at local events selling meals, and 100 percent of the proceeds goes to the Regional Food Bank of Oklahoma.

“Our mission is to have all Oklahomans help feed the hungry forevermore,” says Adrian Young with Made Possible By Us. “If we can face hunger through popular culture and the popularity of food trucks, then you can make it tangible and relevant to the masses.”

Lynch requires Tulsa’s Pearl vendors to commit twice a year to supporting the mobile food initiative and local organization Iron Gate’s mission of feeding Tulsa’s hungry and the homeless.

In Oklahoma, food trucks are becoming less about food and more about community. To Bergman, that’s good news.

“The beauty of food trucks at this particular moment is that they have the freedom to try crazy combinations that might not fly at a restaurant,” says Bergman. “They have the freedom, because of low overhead, to take culinary risks. They have the freedom to make change.”

Last October was National Gumbo Day and it landed on a Sunday. Since we aren’t open on a Sunday, we still wanted to celebrate it. So we organized our first homeless food truck festival.

~ Willy Fontanez of La Gumbo YaYa

900 N. Stiles Ave.Oklahoma City, OK 73104-324

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Upcoming Events NEW PIONEER A PRODUCT OF THE OKLAHOMA DEPARTMENT OF COMMERCE

EDITOR:Kimberly Hickerson, Project Manager

CONTRIBUTORS:Stefanie Appleton, Bryan Boone, Kristin Eaton, Heidi Brandis, Ron Starner

PHOTO CREDITS:Oklahoma Department of CommerceOklahoma Department of Tourism 36degreesNorth, Waldrop Construction

Kimberly HickersonEditor-in-Chief - New PioneerOklahoma Department of Commerce900 N. Stiles Ave., Oklahoma City, OK 73104(405) 815-5240 [email protected]

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PRESIDENTS DAYMonday, February 15, 2016 State Offices Closed

2016 GREAT AMERICAN CLEANUP™Keep Oklahoma Beautiful & ODOT urge you to register now for the Trash-OFF, April 23, 2016!

Keep Oklahoma Beautiful wants to help you clean up your community this spring. Groups and organizations who register for the Great American Cleanup™ will be eligible to apply for GAC grants and receive FREE supplies, including trash bags. Register today at keepoklahomabeautiful.com to receive your free supplies and access to a wealth of project ideas, tips and tricks!