Publisher Richard Ballantine
Editor/Designer Karla Sluis
Advertising
General Manager Ken Amundson
Assistant Editor Rachel Segura
Hanah Noland
V.P. of Advertising Paul C. Hay
Photographer Lindsay Abshagen
Laney Longwell
Director of Sales & Marketing Mark Drudge
Advertising Sales Cora Younie Darryl Hunt Karolann Latimer Shawna Long Teressa Fenn
Special Sections Manager Ralph Maccarone
Design/Prepress Jennifer Dickens Linda McDarby
INSIDE Movers, shakers & fresh new ideas
Media Group 5 Airborne Soars: Big success with mobile marketing application Audioair
On The Cover
Airborne Media Group executives meet at El Rancho Tavern in Durango to demonstrate their Audioair technology, from left: Chip Lile, co-founder and executive vice president; Marcia Baxter, chief business development and intellectual property officer; and Cordell Brown, co-founder and chief executive officer. See Page 5 for the story.
Michelle Martin Olivia Dombach
The Durango Herald uses reasonable effort to include accurate and up-to-date information for its magazine publications. However, all general information comes from a variety of sources and may change at any time for any reason. To verify specific information, refer to the organization or business noted. To see the online version of this guide, click the link at: www.durangoherald.com.
8
Freenotes Harmony Park: Maker of musical instruments strikes a chord
12 Evergreen Education: Advisors help schools with online learning
In with the 14 Innovators:
Locals add spark of creativity
a Glance: 16 AtCharts and graphics show key economic indicators
Support for 20 Warm Incubation: Q&A with Jasper Welch on the NBIA
Value of COIN: 22 The Locals support state effort to build partnerships
Start Me Up: 24 Small Business
Center offers resources On the Rebound: Alliance reports 26 positive local trends Accelerator Plan: SCAPE provides 28fast-forward growth 2 • Sunday, August 4, 2013 • Focus On Business
Focus On Business • Sunday, August 4, 2013 • 3
What is innovation? It’s interesting to note on the pages that follow that no one defines it exactly the same way. It’s the flash of insight. The new product on the market. The impact of reaching a wide audience. Or it’s all of these things together under the simple marketing phrase “New & Improved.”
LINDSAY ABSHAGEN/Herald
Airborne Media Group co-founders Chip Lile, executive vice-president, and CEO Cordell Brown display Audioair TV screens at El Rancho Tavern in Durango on July 3.
Airborne Media Group
Colorado Companies to Watch Two of the local businesses profiled in this publication, Airborne Media Group and Freenotes Harmony Park, received the prestigious Colorado Companies to Watch Award for 2013. The five-year-old program was developed and is funded in part by the Edward Lowe Foundation. Nominees must be Colorado-based companies with six to 99 full-time employees that have $750,000 to $50 million in sales or access to capital. The Colorado Companies to Watch program recognizes 50 growth companies every year, and Southwest Colorado has had the most winners from any rural region in the state. Since the program began in 2009, Southwest Colorado has seen 12 companies recognized.
4 • Sunday, August 4, 2013 • Focus On Business
soars
By Rachel Segura
Focus On Business Assistant Editor
A
irborne Media Group, creators of the mobile marketing application Audioair, has stumbled upon a gold mine. By manufacturing a product that not only solves one problem but dozens, AMG has skyrocketed into the limelight. Audioair is a clever, simple concept: Turn those muted television sets in your favorite sports bars, health clubs or casinos into interactive agents. The product is
Local business startup sees big success with mobile marketing application Audioair
in over 60 locations nationally in Florida, Texas, Alabama, California, and Colorado, where they got their start. “I think we are a poster child of the business community in La Plata County,” said AMG CEO Cordell Brown. “There are so many bright people here – investors who are willing to take risks and institutions that will take a chance. I think we are a cheerleader for the Durango business community, especially in technology.”
The idea was extracted here in Durango from the mega-minds of Ryan Danford and Justin Ginn, who managed and bartended at Olde Tymers Café, a local sports bar and restaurant. “It was a needs-driven thing,” said Brown. “They identified a problem for all. There is rich content of sports events in these types of venues – and no one can hear it.” The two men took their idea
‘‘
INNOVATION is...
FLOATING IDEAS...
Innovation is bringing about useful change with high technology. In our case, it’s disruptive change that makes a real difference.
’’
– Cordell Brown, CEO of Airborne Media Group
Story continues on Page 7 Focus On Business • Sunday, August 4, 2013 • 5
Airborne Media Group
TRY OUT THE TECHNOLOGY Airborne Media Group is the creator of Audioair, the ground-breaking technology and mobile app that enables users to selectively listen to muted television displays in private and public environments using their mobile devices. In Durango, there are several locations to try out the technology. Download the Audioair app for free and plug in your headphones at the following local businesses: Carver Brewing Company, Cuckoo’s Chicken House and Waterin’ Hole, Desperados Bar and Grill, El Rancho Tavern, Fort Lewis College health center, The Irish Embassy Pub and Underground, Olde Tymer’s Café, Sky Ute Casino Resort, and Sporting News Grill. www.airbornemediagroup.com.
6 • Sunday, August 4, 2013 • Focus On Business
“Once we identified the markets, there were a number of and ran with it, hatching a dem- technological dragons to slay, onstration plan to Brown and El and in that course we discovered Rancho Tavern owner Chip Lile. it had other dimensions in terms Together, the four heads hatched of value propositions.” a plan to further explore the busiThose other propositions ness of importing muted content opened Audioair to new adverinto the customers’ hands. tising support. In March of 2011, AMG Inc. “There is a powerful way to was born and quickly went to deliver mobile advertising,” work fine-tuning the conceptual Brown explained. “Forty-five designs for Audioair. Engineerpercent of all Internet access is ing, demos and patent ideas mobile, but only two percent were thrown around, and Audioof digital advertising is done air was used in El Rancho Tavthrough mobile devices. We ern as the crash test site. think Audioair has found a way Both the hardware and software for Audioair is put forth by to solve that disconnect.” They determined advertising Durango companies. The digican now be specifically tailored tizer box is made by a Durango to the individual’s wants and company, who manufactures needs. What a person is inclined out of California. Throughout their rush of success, AMG has to peruse will be what they see on their own devices. No more stayed loyal to obtrusive ads. their home. “There are so Businesses “We got a tremendous amount many bright people benefit as well by using the of support from here – investors location-based the community. netA lot of investors who are willing to advertising work that is here took a risk take risks and then propelled early on in development,” Brown institutions that will through someone’s device or said. “I’m really take a chance.” a second screen pleased we can installed by incubate here and – Cordell Brown, AMG. get started.” CEO of Airborne Media Group “Every year, The product, a every month, consumers take small box resembling a wireless router, is referred to as an Au- more and more control of condio Streaming Box (ASB). The tent that they choose to interact ASB receives an analog signal with. Our device helps to further from the venue, whether that is a make those decisions.” This discovery captured the cable or a satellite receiver. The box takes that signal into the imagination of Silicon Valley, audio channel, digitizes it and where Audioair is setting up ofresends it to the wireless device. fices. There is also a second verOn the receiving end, custom- sion of the product already under ers with smartphones can down- way, and AMG just partnered load the free Audioair applica- with the Southern Ute Indian tion, open it at any participating Tribe to explore new opportunilocation, select a channel being ties in the gaming market. The broadcast, plug in their ear buds company has experienced one and enjoy immediate sound. feverish startup. “So many great things are They can also chat with friends and others on the network and happening,” Brown said enthusiastically. “This is what we call connect to Facebook. Eventually, Brown and the an Over the Top Network, OTT. others see Audioair in airports, It’s putting together content that hotels and stadiums. They are you don’t get the traditional also aiming to expand on servic- way. Innovation is bringing es for the hearing-impaired and about useful change with high technology. In our case, it’s dislanguage translations. “We realized we found an all- ruptive change that makes a real new technology,” Brown said. difference.” v
Continued from Page 5
Focus On Business • Sunday, August 4, 2013 • 7
Justin Martinez watches his daughter Annabel, 2, play the Swirl in Boyle Park, Mancos. The Swirl, made by Freenotes Harmony Park, is made of resonated anodized aluminum chimes that range from soprano to alto, and its vibrant tones come from individual resonators.
Freenotes Harmony Park
strikes a chord
RACHEL SEGURA/Herald
‘Colorado Company to Watch’ makes outdoor instruments By Rachel Segura
Focus On Business Assistant Editor
I
t is impossible to know when the very first piece of music was played. What can be said of music is that it is a universal language between the most divided cultures. No matter what the tunes, most everyone in the world listens to them. Richard Cooke, founder of Freenotes musical instruments, is highly aware of the connection between music and human beings. Cooke, a Grammy-award winner, has been making xylophone-style instruments for nearly 20 years. “(Richard’s) understanding of playing music and trying to simplify the technical aspects so that non-musicians could step into a satisfying experience is what separates us from others like us,” said Christy Cooke, co-founder of Freenotes and wife of Richard Cooke. Freenotes Company was founded in Moab in 1995 where the Cookes then resided. The business consisted of the construction of indoor and outdoor musical installations. In 2002, they moved to Durango, where access to the outdoor world was abundant. Here, they continued to manufacture both styles of instruments. At Christy’s encouragement, the couple put their focus toward the outdoor instruments and how to distribute them to a wider audience. This branch of Freenotes Company was then named Freenotes Harmony Park. “He was already manufacturing the instruments on a cottage basis,” Christy explained. “I suggested and had the ambition to try and commercialize the manufacturing along with our nephew Robert Cooke, who is primarily responsible for ramping up production.”
With a background in marketing, Christy stepped in as CEO from 2010 to 2012, and she implemented a strategic plan for restructuring the company. She took the company from direct to wholesale sales, allowing FHP to become a national brand. Rotary Park in Moab remains the largest of all FHP musical installations, containing at least 20 instruments available to the public. The Freenotes Harmony Park
HEAR THE MUSIC
The company has eclectic variety, including: Contrabass Chimes (vertical 7to 9-foot tubes), Flying Amadinda (an ancient xylophone from Uganda), Manta Ray (aluminum metallophone), Pagoda Bells (vertical stack from large to small), Tuned Drums, and several variations on marimbas and xylophones. Listen to samples of each one here: http:// freenotesharmonypark.com/ products/listen-to-the-instruments.
8 • Sunday, August 4, 2013 • Focus On Business
Or scan QR code with a smart phone
first instrument of FHP was placed in Moab, and the size of the musical park is attributed to new designs placed for public testing. The park symphony draws in hundreds of people all yearround. “They don’t just make a sound when struck,” Christy said. “They actually make music. Because they are tuned, they are played as an ensemble. It’s simple and complimentary.” FHP has become a brand associated with musical creativity and interaction. Whereas people are inclined to go and see music as a recreational outlet, FHP is designed to engage. The instruments can be bought individually, or the company offers instrument packages for better harmonizing options. Three or more instruments allow the value of the FHP experience to grow exponentially. All of the installations are pentatonic-scaled, so all notes resonate. Most of the instruments are manufactured with aluminum or PVC pipe and are secured to a colorful background. There are at least 13 various installations and at least four installation packages available. FHP is most appealing to city parks and school playgrounds, but production is gaining popularity among communities and hospitals. In early 2013, FHP had hit a point where business management was becoming pivotal. Currently, production is warehoused out of a small manufacturing shop and office suite on Suttle Street in Bodo. An 800-square foot expansion to that building is in the works due to high volume. FHP is expected to deliver over 10 installations before the end of July, with orders flowing into August.
“Innovation is anything that is different than what existed in the past. And relevant innovation changes the way we behave as human beings.” – Erich Bussian, left, late CEO of Freenotes Harmony Park
Story continues on Page 10 LINDSAY ABSHAGEN/Herald
Freenotes CEO died July 27 Erich Bussian, the late CEO of Freenotes Harmony Park, took his life Saturday, July 27. Prior to his death, photos and interviews for this story had been conducted with Bussian regarding Freenotes Harmony Park production, instrumentation and expansion. Christy Cooke, co-founder of FHP, said Bussian contributed a lot of plans to FHP, and the company will continue to implement and build on his
foundation. “His ability to build a team at Freenotes was one of his greatest strengths,” Christy said. “He took a personal interest in all of us, and genuinely cared about people. When we had challenges in the work space, he always said these were the kinds of problems we wanted to have. His favorite thing to say to me was, ‘It’s all good.’ ” – Rachel Segura
Focus On Business • Sunday, August 4, 2013 • 9
INNOVATION is...
Sodexo 132583 Quarter Karolann Images courtesy of Freenotes Harmony Park
‘‘
“Many people have the same ideas. Taking the idea and instantiating that product or service – something real – and then getting that into the hands of people who actually use it. That’s the innovation.
’’
– Brad Feld, co-founder and managing director of the Foundry Group
COMMUNITY • LOYALTY • INTEGRITY • COMPASSION • INDEPENDENCE
Continued from Page 8
This concept of public music making and FHP’s consistent business expansion is what made them a winner for the 2013 Colorado Companies to Watch. Christy remarked that during the recession, FHP saw a 100 percent growth in the first two years. “It was such an honor to be recognized in the greater business community,” Christy said. “It really was a team effort that got us to where we are today.” By June, they saw more than a 35 percent increase in business. They are expected to exceed that amount before the end of the year. With a new and heartier focus on the European market and a new distributor in Australia called Playscape Creations, Freenotes is turning their product into the next big thing.
10 • Sunday, August 4, 2013 • Focus On Business
“Music makes people happy and builds community. Quality parks and public areas that offer access to music connect people to their creativity, to each other and the outdoors, making for a healthy community.” – Christy Cooke, co-founder of Freenotes Harmony Park “Music has been at the core of community building from time immemorial,” Christy said. “We all have the natural ability to
express ourselves musically. It’s something that just needs to be encouraged and provided access to. That’s the beauty of Freenotes in public spaces.” Instruments can be found locally in Santa Rita Park and Boyle Park in Mancos. They are spread throughout the country in places such as Sedona, Ariz., Shreveport, La., and Randolph Mass., to name a few. They are also internationally distributed to Canada, South America, Europe, Singapore, Israel and Australia. But the premise of Freenotes Harmony Park stays the same. “Music makes people happy and builds community,” Christy said. “Quality parks and public areas that offer access to music connect people to their creativity, to each other and the outdoors making for a healthy community.” v
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Focus On Business • Sunday, August 4, 2013 • 11
INNOVATION is...
‘‘
Online learning is transforming K-12 education, affording new opportunities for students and improving learning outcomes.
’’
Evergreen Education website
Evergreen Education
learn A new way to
Evergreen Education
eSCHOOL @ HOME
Evergreen worked directly with San Juan BOCES (serving nine rural school districts) to open an online school in 2011 — The Southwest Colorado eSchool, which is an accredited online diploma-granting high school. The project extended over eight months from the initial strategic planning meetings with representatives from all member districts, through operational planning, culminating with the school’s launch. www.southwestcoloradoeschool.org
Advisors help schools by implementing tools for online learning By Rachel Segura
Focus On Business Assistant Editor
J
ohn Watson, creator of Evergreen Education, says the time is ripe for blended education. “Even though all of these (technological) changes have occurred over the years, classrooms are still pretty standard. Education is the one thing that has not kept up. The time to operate as 20th century schools is over.” Watson is an educational advisor for online learning. Evergreen Education, established in 2000, has a full-time staff of six people who have backgrounds in education, business, marketing, consulting and accounting. They advise or have advised over 50 various entities throughout the country. Evergreen is an online focused community that is working toward
12 • Sunday, August 4, 2013 • Focus On Business
improving the learning and educational opportunities for students who wouldn’t normally get them. When a school district or other educational entity expresses interest in their services, Evergreen acts as a consultant for effective online management, content development and implementation. For instance, in rural areas such as Mancos or Cortez, learning opportunities are widely different from the Front Range. Watson is working to bridge that gap “We are typically on-site with our clients so we can get a better understanding of what they want to do,” Watson explained. “We aren’t there to impose. It’s best we see the facilities and what they’re doing. Then we spend time with the teachers and administrators so we are working hand-in-hand.” A recent project for Evergreen
at a private school in San Francisco had the advisors incorporating an all-day design exercise. The school was inclined to begin online courses, but was not sure where to start or what to do. The group formulated ideas and concepts, and the school was able to differentiate between their options and how to implement them. Watson was living on the Front Range when Evergreen was formed, but the scattered employees were in need of common ground. The business moved to Durango in 2011 because, “isn’t it obvious?” Watson said with a chuckle. Three of Evergreen’s staff packed their bags and came to Durango to be closer as a working team. “When we were looking to move. We wanted something that had incredible outdoor amenities,
but was lively enough to be a real town. (On the business side of it), we needed good transportation, a nice office setup and good Internet. That’s all we were looking for, and we have that.” Although Evergreen has not serviced any of the local districts, they do have a constant stream of clientele. Idaho, California, Missouri and Maine have been on the list most recently. Watson has found that although the business has been around for 12 years, the surge of recent customers is because education is finally catching up with the times. “In the beginning (of the business), it was the early days of online education,” he explained. “What was once accepted (as educational tools) in schools has changed, (and those changes) are now more mainstream. It’s
fairly common now for an average high school student to use online help in their studies one way or another.” And that is exactly where Watson sees education going. Online-only schools may not be the future – there will always be students who enjoy teacher interaction. But is creating instruction through online study on the forefront? “Absolutely,” said Watson. Evergreen’s other services include policy work with state legislatures, boards and charter communities to help aid in interests of educational technology. The future of education may not rest solely on the shoulders of the World Wide Web, but Watson sees the Internet as an endless tool for educational benefits. Giving students the flexibility of learning is what gives Evergreen long life. v
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innovators
INNOVATION is...
In with the
Transplants and homegrown entrepreneurs add spark of creativity
GEOCOSM Geocosm is a geological consulting agency that is focused on reservoir quality services, risk assessment studies and research and development projects. Using Touchstone, a software system for reservoir quality analysis in sandstone, Geocosm can collect data in sparse areas, aiding in more thorough assessments. Linda Bonnell, founder of Geocosm, and Robert Lander, partner in Geocosm, were instrumental in the development of Touchstone. www.geocosm.net
“Innovation is the creation of something that is both novel and useful. We search for innovative solutions by creating synthetic rocks in the laboratory, characterizing natural rocks using a variety of analytical techniques, applying new computer simulation methods, and by collaborating with smart, knowledgeable people. The computer models in our software simulate the effects of physical and chemical processes at work deep in the earth that change sand from being something that squirts between your toes on the beach to rock that you could use to build a house.”
GEOCOMMAND
SWAN WEALTH ADVISORS
As a result of breakdown response during chaotic events such as Hurricane Katrina or September 11, GEOcommand figured a way for rescue agents to access and share critical data quickly and efficiently. The GEOcommand software ensures that emergency responders can provide safe and effective services without interruption. The Durango office for GEOcommand houses most of the software developers. They are also located in Boca Raton, Fla., Charlottesville, VA., and Bethpage, N.Y. www.geocommand.com
Founded in 1997 by Randy Swan, Swan Wealth Advisors was put together as an alternative means of investment services. Randy learned about risk management as a senior manager at KPMG in Houston, Texas, working in the insurance industry with risk managers. He thought that more prudent risk management should be brought into the investment world. Unfortunately his approach was not warmly accepted by larger corporations, which makes his incentives the perfect place for Durango. The Swan Defined Risk Strategy was developed to protect clients from large losses. His strategy has been named number one by Pensions and Investments over the past one-and-five year periods. The company is now at seven full-time employees with opportunities for more staff to come on by the end of the year. www.swanwealthadvisors.com
“We look at innovation as more of a revolutionary movement that will help redefine the domain in question. Swan is innovative in that we believe we are the first investment management firm to bring professional risk management to everyone…which has historically shielded investors from great losses as experienced in 2000-2002 and 2008.” – Randy Swan (right), Founder and CEO of Swan Wealth Advisors
– Ajay Menon, Chief Innovation Officer, State of Colorado and the Dean of Colorado State University’s College of Business
SAVE THE DATE Collaborate, innovate and grow at La Plata County Economic Development Alliance’s 7th Annual Economic Summit on Oct. 23 at the Sky Ute Event Center in Ignacio. The featured keynote speaker is Jay Elliot, former senior vice president of Apple and author of two books. Registration opens Aug. 1. www.economicsummit.yeslpc.com
– Rob Lander, (right) Scientific Advisor and Partner of Geocosm
IDEA-LOOP Created by Chris McCroskey, Idea-Loop is focused on creating memorable interactive experiences for mobile apps, websites, e-commerce sites and much more. The developers at Idea-Loop are dedicated to making user-friendly experiences for their clients, who range from Jack Daniel’s, Texas Tourism offices and Borden. The company began in Dallas, Texas, and moved to Durango in 2011. www.idea-loop.com
“To truly be innovative, you must add value – not just something new and shiny. Our goal every day is to add value to our customers, our employees and our community. The founding of our company required an innovative approach to how we develop software, through our success and failures, innovation will determine our future.” – Chris McCroskey (above), Founder/Ideator of Idea-Loop 14 • Sunday, August 4, 2013 • Focus On Business
‘‘
You have to look at it as something that impacts markets. If you don’t have markets and customers, and making their lives different or better as a result of your activities, then I assume innovation doesn’t exist.
“For what we do, we try to look at where there is a need in a public or private sector, then look to fill those needs. Innovation is realizing those gaps and filling them.” – Shelley Jones (above), Human Resources Manager for GEOcommand
’’
Focus On Business • Sunday, August 4 , 2013 • 15
INNOVATION is...
CENSUS “QUICK FACTS” La Plata County
KEY ECONOMIC
INDICATORS Enplanements
Housing units (2011)............................................. 25,987...................... 2,224,603 Homeownership rate (‘07-’11)............................... 69.2%........................ 66.8% Housing units in multi-unit structures (‘07-’11)...... 17.5%........................ 25.7% Median value of owner-occupied housing units....... $342,800.................. $236,700 Households............................................................ 20,769...................... 1,941,193
Lodgers Tax
Per capita money income (‘07-’11)........................ $30,592.................... $30,816
Durango: $252,000 (through June 2013), +9.2% from last year
Housing Permits
Median household income (‘07-’11)...................... $56,910.................... $57,685 Persons below poverty level (‘07-’11)..................... 10.6%........................ 12.5%
(through April 2013): 25, +31% from last year
Private nonfarm establishments (2011)................. 2,258........................ 150,889
Home Sales
Private nonfarm employment, percent change......... -2.6%......................... 0.9%
Q1 2013 (includes all of La Plata County): 189, +16% from last year
Nonemployer establishments.................................. 6,114........................ 434,910
Gas Production
Retail sales............................................................ $790,433.................. $65,896,788
90,785 mmcf (through March 2013), -12% from last year Source: Roger Zalneraitis
Private nonfarm employment.................................. 18,368...................... 1,972,271
Retail sales per capita............................................ $15,914.................... $13,609 Accommodation and food services sales................ $206,242.................. $11,440,395 Building permits..................................................... 172........................... 23,301
A five-bedroom, two-bath house downtown at 462 E. 8th St. is currently for sale in Durango. The asking price is $849,000.
REAL ESTATE DATA
‘‘
’’
Colorado
DRO Airport: 91,993 through June 2013, +13.1% from last year
La Plata County Homes .2011 ..............2012 ............. 2013...............’12 to ’13 Change .....% Change Median Price ...................$296,901 .......$279,250 .......$304,900........ +$25,650 .................. +09.18% Number sold ...................127 .................161 .................189.................. +28 ............................ +17.39%
Innovation is finding new ways to address old problems.
– Colorado Lt. Gov. Joe Garcia
Source: United States Census Bureau La Plata County
Durango In-Town Homes .2011 ..............2012 ............. 2013...............’12 to ’13 Change .....% Change Median Price ...................$325,000 .......$329,950 .......$330,000 ....... +50.00....................... -07.08% Number sold ...................20 ...................32 ...................33 ................... +1............................... +03.12% Durango Country Homes 2011 ..............2012 ............. 2013...............’12 to ’13 Change .....% Change Median Price ...................$373,500 .......$345,000 ....... $347,450 ...... +$2,450.................... +00.71% Number sold ...................31 ...................52 ...................68 ................... +16............................. +30.76% DMR Homes ................. 2011 ..............2012 ............. 2013...............’12 to ’13 Change .....% Change Median Price ................... $540,000....... $412,500 ...... $735,000 ...... +322,500................... +78.12% Number sold ...................5......................2......................1 ..................... -1................................ -50.00%
Durango visitors wait for a ride on the Durango & Silverton Narrow Gauge Railroad train in early July. LINDSAY ABSHAGEN/ Herald photos
16 • Sunday, August 4, 2013 • Focus On Business
Bayfield In-Town Homes 2011 ..............2012 ............. 2013...............’12 to ’13 Change .....% Change Median Price ...................$191,400 .......$171,000 ....... $266,500 ...... +95,500.................... +55.84% Number sold ...................3 .....................6 .....................5...................... -1................................ -16.66% Bayfield Country Homes 2011 ..............2012 ............. 2013...............’12 to ’13 Change .....% Change Median Price ................... $198,425.......$232,450........$250,000........ -7,450........................ -3.20% Number sold ...................12 ...................16....................23 ................... +7............................... +46.75% Land (1-10 Acres) ......... 2011 ..............2012 ............. 2013...............’12 to ’13 Change .....% Change Median Price ...................$195,000 .......$219,000 ....... $182,500....... -36,500..................... -16.66% Number sold ...................5 .....................3 .....................12 ................... +9............................... +300.00%
Building Permits
In 2012, La Plata County issued 172 residential building permits. Source: StatsAmerica.org
Median Rental Rates
Studio ........................$2,000 1 Bedroom .................$750 2 Bedroom .................$1,000 3 Bedroom .................$1,500 4 Bedroom .................$7,285 Source: StatsAmerica.org
Foreclosure Rate
In the 1st quarter of 2013, foreclosure rates in La Plata County were down 20% compared to the 4th quarter of 2012. Source: http://www.colorado.gov
Source: Durango Real Estate Network
Focus On Business • Sunday, August 4, 2013 • 17
EMPLOYMENT DATA Employment in Top 10 Industries
Largest Employers
INDUSTRY EMPLOYMENT AVERAGE WAGE Government....................................................................... 5,711..........................................................$51,740 Retail Trade........................................................................ 3,810..........................................................$25,640 Health Care & Social Assistance........................................ 3,557..........................................................$46,760 Construction...................................................................... 3,224..........................................................$45,840 Accommodation & Food Service........................................ 3,114..........................................................$16,620 Professional, Scientific & Technical..................................... 2,396..........................................................$56,920 Real Estate Rental & Leasing............................................. 2,234..........................................................$32,650 Finance & Insurance.......................................................... 1,885..........................................................$64,080 Administrative & Waste Management................................. 1,549..........................................................$31,830 Other Services................................................................... 1,515..........................................................$29,080 Total Employment......................................................... 36,834.................................................... $40,673
COMPANY
TYPE
EMPLOYEES
Mercy Medical Center................ Health...............900 Mercury Payment Systems......... Finance.............417 Durango Mountain Resort.......... Recreation........400 Wal-Mart.................................... Retail................354 Crossfire Seeding....................... Resources.........250 BP America................................ Resources.........245 RM Chocolate Factory................ Food.................150 Strater Hotel.............................. Tourism.............146
Top 10 Job Occupations
Durango Herald.......................... Journalism........128
BUSINESS EMPLOYEES AVERAGE SALARY Office & Administrative Support........................................ 3,595..........................................................$30,253
Animas Surgical Hospital........... Health Care.......122
Management..................................................................... 3,160..........................................................$62,673 Sales................................................................................ 2,788..........................................................$38,545 Construction, Extraction & Maintenance............................ 2,173..........................................................$46,782
Fastest Growing Occupations
Food Preparation.............................................................. 1,938..........................................................$21,334
Computer & Mathematical................................ 185%
Education, Training & Libraries........................................... 1,352..........................................................$39,820
Health Technologists & Technicians................... 103%
Business & Finance.......................................................... 1,121..........................................................$47,730 Grounds Cleaning & Maintenance..................................... 1,084..........................................................$23,958
Material Moving Workers................................... 73%
Health Practitioners........................................................... 1,026..........................................................$60,781
Grounds Cleaning & Maintenance..................... 62%
Personal Care & Service.................................................... 979.............................................................$18,778
Life, Physical & Social Science.......................... 60%
Total Job Occupations...................................................26,313.................................................... $40,200
2013 Regional Livable Wage Data Updated July 8, 2013 * www.scan.org The Region 9 Economic Development District of Southwest Colorado (Region 9) has released its latest livable wages for the communities throughout southwest Colorado, which shows the cost of living continues to rise in most communities. Region 9 has calculated livable wages since 1999, and four of the five counties show an increase in their livable wage. Only Dolores County shows a decrease. A livable wage is defined as the level of income necessary to support a given size of household. When one earns less than a livable wage, he or she is forced to make undesirable choices such as working two or more jobs, longer hours, or giving up basic items such as health insurance or licensed childcare. For a single person renting, the livable wage for each community is as follows: Silverton $12.55, Pagosa Springs $11.67, Dove Creek $12.11, Rico $12.11, Bayfield $11.96, Durango $12.10, Ignacio $12.68, Cortez $10.66, Dolores $11.52, and Mancos $11.40. The livable wage numbers are based on a basic expenditures budget for the nation and adjusted for inflation using the Denver/ Boulder Consumer Price Index. Rent and childcare costs are specific to each community, and a mileage allowance is added for the communities such as Rico, where residents must travel for basic goods and services.
LINDSAY ABSHAGEN/Herald
Connecting You to the World
TAX COLLECTION
Durango-La Plata County Airport
Sales Tax
40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000
Nancy Crangle, left, a customer from Tucson, Ariz., buys a tea towel and lettuce/ cabbage cutter from Urban Market co-owner Monica Broderick and employee Zack Oden. Urban Market is located at 865 Main Ave.
Property Tax
Providing Daily Service From American Airlines • Frontier Airlines United Airlines • US Airways 5 Rental Car Agencies • Deli • Gift Shop
’02
’03 ’04
’05 ’06
’07 ’08 ’09 ’10 ’11 ’12 ’13 Source: La Plata County Budget Overview
Sales tax collections, Durango: $6,838,000 (through June 2013), +6.9% from last year
UNEMPLOYMENT RATE As of May 2013:
5.3% La Plata County
6.9% Colorado
7.6% U.S.
Here’s a few important tips: • Get to the airport at least 90 minutes prior to your departure. • Prepare for security so you can go through quickly. • Check-in for your flight online. Remember, if you aren’t checking baggage, you can proceed directly to security. • Check real-time flight status online at flydurango.com or by using one of the great flight tracking apps out there for your mobile phone.
1000 Airport Road Durango, Colorado
970-382-6050
Source: La Plata County Economic Development Alliance
18 • Sunday, August 4, 2013 • Focus On Business
Focus On Business • Sunday, August 4, 2013 • 19
INNOVATION is...
‘‘
It’s the ability to reach beyond the obvious; the willingness to experiment with different combinations; the desire to learn without boundaries.
NATIONAL BUSINESS ORGANIZATION
Warm support for
incubation
J
asper Welch named CEO of the National Business Incubator Association in late February. He oversees a staff of 13 and a $1.5 million annual budget. Welch founded the local consulting firms Client Focused Solutions and Four Corners Management Systems. He also taught marketing classes for the Southwest Colorado Small Business Development Center. He has served as a twice-elected council member on the Durango City Council, including two one-year terms as mayor. He co-founded the co-working facility DurangoSpace.
Q: How do you define innovation? A: It’s the ability to reach beyond
the obvious; the willingness to experiment with different combinations;
Jasper Welch, CEO of NBIA, is the co-founder of the co-working facility DurangoSpace, located at 1221 Main Ave. LINDSAY ABSHAGEN/ Herald
’’
– Jasper Welch, CEO of the National Business Incubator Association
20 • Sunday, August 4, 2013 • Focus On Business
Q: What is unique about La
Q: How might La Plata County
Jasper Welch, new CEO of the National Business Incubator Association, weighs in on innovation
the desire to learn without boundaries. Innovation is challenging for most of us, as failure may be an outcome. But then, our individual hope is for a successful idea to be created, which keeps us going forward.
Q: What does a business culture
need to make it happen? Does La Plata County have those qualities?
A: In a business organizational
DurangoSpace (durangospace.com) provides this type of innovation based on the peer-to-peer interaction and flexible workspace.
financial resources into supporting their entrepreneurs. Even the robust entrepreneur support and programs that Durango enjoys have some catching up to do! NBIA members are leading the way with expanded business incubation and start-up company support and programs that involve over 900 members, 2,200 business incubation professionals and 12,000 companies in the U.S. and internationally. To be able to have this level of international involvement in my new position at NBIA is a great opportunity for me personally and for La Plata County.
culture, innovation occurs when we suspend judgment and allow new ideas to flourish. A bureaucracy or top-down management system will thwart innovation, simply due to the rigid culture. An innovative approach is customer- and co-workerfocused, versus rule-bound and inflexible bureaucratic culture. Our co-working space, known as
Plata County’s “entrepreneurial ecosystem” compared to other regions in the U.S.?
A: La Plata County has a unique group of individual entrepreneurs, business owners, and support organizations that are willing to reach beyond their own interests and support business start-ups, emerging companies and creative approaches to business. The new Southwest Colorado Accelerator Program for Entrepreneurs is an example of this entrepreneurial ecosystem. As compared to other micropolitan areas of the U.S., La Plata County ranks high in economic strength (policom. com) and we are fortunate to have a well-integrated entrepreneurial ecosystem. The combination of the La Plata County Economic Alliance, Fort Lewis College Small Business Development Center, Region 9, SCAPE, DurangoSpace, Durango Chamber and strong local banks and community provides a good platform for entrepreneurship to flourish. Q: Why did you want to lead the NBIA?
A: Our Association was started in
1987. Over the past 28 years, business incubation has grown, matured and has been proven a successful model for creating and launching start-up companies. After working as the director of the San Juan College Enterprise Center from 1999 to 2011, I was ready to provide executive leadership at the U.S. and international level with the National Business Incubation Association.
Q: What has your
experience been as the CEO for the past five months? A: From my expanded perspective, communities, states and countries around the world are putting tremendous local efforts and corresponding
WHAT IS A BUSINESS INCUBATOR? Business 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 their 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. For more on the National Business Assocation, visit www.nbia.org.
benefit from your position in this national organization? A: Now we have a front row seat into the international world of business incubation, start-up companies and the entrepreneurial ecosystem. While our regional economy is well-suited for entrepreneurship (as compared to other small cities in the U.S. and international marketplace), there are many ideas, resources, people and NBIA contacts that we can learn from. In the short five months that I’ve served as president and CEO, we have seen a number of NBIA members, directors and strategic partners come to Durango to work with me in my new role. Durango is now more firmly on the map as a thriving small Colorado town with vibrant entrepreneurship. And finally, the business community in Durango and entrepreneur support organizations have been very supportive of my executive role at NBIA.
Q: What are the biggest challenges
facing entrepreneurs and new businesses in La Plata County? A: Not enough time! Most entrepreneurs have more ideas than time; and more business start-up concepts than money to invest. Sure, we have the challenges of over-regulation, challenges in the tax code and the obstacles to obtain start-up company financing. More recently, it is harder and harder for a small business to hire and support employees due to the myriad of requirements and paperwork needed to add new jobs. But the real challenge I’ve seen working with entrepreneurs is the need to have a laser focus on your goals, dreams and mission. The second area that the entrepreneur needs help in will be fellow sojourners and people with an empathic ear for the start-up founder. With the support organizations ready to help, local entrepreneurs have a much better opportunity to succeed that in most of smaller towns in the Rocky Mountain West. v Focus On Business • Sunday, August 4, 2013 • 21
LINDSAY ABSHAGEN/ Herald
STATE BUSINESS ORGANIZATION
The value of
COIN By Karla Sluis
A
Focus On Business Editor
ccording to Matt Taylor, CEO of Mercury Payment Systems, the Durango area is “quintessentially a hotbed for small-to-medium business commerce.” “There are lots of successful entrepreneurs, and a real community has been built out of that. That’s emblematic of why I joined COIN.” COIN, the Colorado Innovation Network was launched by Gov. John Hickenlooper in November 2011. Its mission is to create a physical and virtual network of global leaders that will encourage relationships to support the innovation ecosystem, grow companies and create jobs. Gov. Hickenlooper asked Taylor to be on the COIN board because MPS represented the homegrown startup that has grown to be a midto large-sized company. “Our commitment to the community is a nice balance to keeping business in Colorado. That perspective was something that the governor wanted on the board,” said Taylor. “I’m extremely dedicated to communities in Colorado. I thought it would be a good way to give back.” The COIN board meets quarterly. They host a summit in late summer in Denver, this year
Locals support Gov. Hickenlooper’s two-year-old Colorado Innovation Network, which was created to build prosperity through diverse partnerships on Aug. 28 and 29. The summit is hosted by the governor and brings in panel speakers, keynotes and stories of economic growth and innovation. Kerry Siggins, CEO of StoneAge Tools in Durango, attended the first annual summit last year. She said it was specifically about innovation and how private business, academia and government can work together to make Colorado the most innovative state in the nation. “I didn’t know what to expect,” said Siggins, “but after the first keynote speaker on the first day, I was inspired.” Taylor said COIN is about building awareness as well as connection. “It’s Colorado’s opportunity to have a brand in the U.S.” Siggins characterized the brand as forwardthinking, and business-friendly. As more businesses choose to start up or relocate, the brand helps attract them to Colorado. COIN’s impact on La Plata County is still subtle, but that is to be expected for a new organization still building infrastructure. “I expect that as the organization grows and has more and more successes, all areas of the state will benefit,” said Siggins.
Colorado innovation
STATISTICS v Colorado ranked seventh in Fast Company’s report on top states for innovation (2013). v Colorado ranked fourth in the Milken Institute’s State Technology and Science Index (2013). v The U.S. Chamber of Commerce ranked Colorado second for the 2012 top 10 states for entrepreneurship and innovation in their 2012 and 2013 Enterprising States Report.
22 • Sunday, August 4, 2013 • Focus On Business
v The Beacon Hill Institute issues an annual report on state competitiveness and Colorado consistently ranks in the top 10. Colorado ranked third (2011). v StartUpHire listed Colorado as first for growth in the startup job sector, as the state saw a 170 percent increase in startup jobs between 2010 and 2011.
v Colorado ranked fifth best state for business by Forbes (2012).
v TechAmerica Cyberstates ranked Colorado third in Technology Industry Employment Concentration (2010).
v The Kauffman Index of Entrepreneurial Activity listed Colorado as fourth for the highest rate of entrepreneurial activity in the United States, with 450 new business owners per 100,000 adults (2011).
v Colorado ranked fourth in Research and Development Inputs, the ability to attract various types of federal, industry, and academic funding, by the Milken Institute Research and Development Inputs Composite Index (2008).
RESOURCES ONLINE
The COIN website offers a variety of resources for businesses, including a list of key industries, incubator and accelerator programs, higher education, venture capital, resource map, federal labs, small business development center resource guide, and an innovation library. Visit: http://www.coloradoinnovationnetwork. com/resource-center.
Taylor said La Plata County is rich in resources to help businesses. Along with the various economic support organizations, he said there is great help and commitment from the City of Durango. “They are very focused on economic development.” He points out that Fort Lewis College is a wonderful feeder system for employees, and says it’s relatively affordable to lease or build compared with other parts of mountainous Colorado. Taylor said people in the Durango area have a passion that they bring to their life, and it spills over into the working environment. But there’s one big drawback for businesses here: “If you’re looking for money, it’s challenging. ... But the money will follow the ideas.” v
StoneAge CEO Kerry Siggins discusses an inlet assembly for a 3D tank-cleaning tool with Assembly Technician John Staten. “You can either evolve or you die. If a business isn’t innovating, you can bet their competition is,” said Siggins. “At StoneAge, we are always looking for ways to be innovative, especially product development and product delivery.” LINDSAY ABSHAGEN/Herald
‘‘
INNOVATION is...
Matt Taylor, CEO of Mercury Payment Systems in Durango, stands in front of the construction site of the future Mercury building.
Innovation in my business is a change that can be brought to a process or product that enables success in real scale. It’s not just a brave new idea. It can be changing behavior in a small way; some change that makes consumers’ lives a little bit easier. Little ideas can turn into big things.
’’
– Matt Taylor, CEO of Mercury Payment Systems in Durango
Focus On Business • Sunday, August 4, 2013 • 23
THE CEO NETWORK The CEO Network is a part of the Southwest Colorado Growth Company Initiative or the GCI. The CEO Network is a peer networking group with quarterly meetings to discuss rural-area business issues. It works closely with Fort Lewis College and has occasional meetings with state, county, and city government officials to talk about how to make communities more business-friendly. This is in alignment with the Colorado Innovation Network’s mission, which is to be a catalyst for economic prosperity through innovation by partnering with government, business and civil society to foster collaboration around global ideas, talent, capital and the entrepreneurial spirit. Here’s a link to learn more about the GCI: http://www. yeslpc.com/growth-company-initiative
24 • Sunday, August 4, 2013 • Focus On Business
LOCAL BUSINESS ORGANIZATIONS
Start me up
Small Business Development Center is a community partner
By Joe Keck
Director, Small Business Development Center Network
O
ver the years our Small Business Development Center Network (SBDC) has had the reputation of being a go-to place for business start-up assistance. A big part of that reputation is on target, since roughly 50 percent of our clients are indeed start-ups, and approximately 70 percent are early-stage companies (0-2 years old). Innovation is really at the core of what most of our clients are working to build a business case on. They are trying to develop that unique competitive advantage by solving a perceived and hopefully real problem in the marketplace. Innovation can occur by providing a new product or service, or by finding a new use for an existing product or service. I find innovative business people consistently as I travel around the five counties that we cover in Southwest Colorado. La Plata County seems to be at the crux of that innovation culture for this region. For some folks, innovation is driven by the need to survive. If you were to ask a few builders, realtors, small retailers, etc. how they have survived the last few years, my sense is you’d fine a lot of innovative strategies they have adopted to make ends meet. Words like downsizing, right-sizing, re-inventing, career change, heading to the Bakken Oil Field, all come to mind. For some other technology or growth businesses, innovation can be driven by intellectual property or fast growth pressures. The business development needs of these companies, while having some similarity to Main Street businesses, can be quite unique.
LINDSAY ABSHAGEN/Herald
Joe Keck, director of Small Business Development Center Network, meets with Erin Neer, owner of MUNIrevs.
Whether they are a CPA, website consultant, banker, technology consultant or human resource consultant, trusted advisors are one of those fundamental building blocks for most small businesses and are particularly critical to companies involved in innovation. Where the resources of the SBDC can have a positive impact on the process of helping businesses innovate is in using our Business Advisor Network, Economic Gardening resources and targeted training and workshops to facilitate the
business planning and development process. We are fortunate and blessed with our 35-member Business Advisor Network (we call it the BAN). These individuals gave over 500 hours of their time in working with small businesses in 2012.
Why is this important? Building a team of trusted advisors is a key component to the success of most small businesses. Whether they are a CPA, website consultant, banker, technology consultant or human resource consultant, trusted advisors are one of those fundamental building blocks for most small businesses and are particularly critical to companies involved in innovation. Most start-up and early-stage companies can’t afford to hire the people in-house or external skilled resources they need to succeed, however building that See SBDC, Page 29
Focus On Business • Sunday, August 4, 2013 • 25
INNOVATION is...
‘‘
All too often people define innovation as invention, and that’s a narrow way to look at it. I define innovation as a new match between a need and a solution. Innovation can happen when you develop new business models, customer service models, products, and processes… to name a few.
’’
– Kerry Siggins, CEO of StoneAge Tools
LOCAL BUSINESS ORGANIZATIONS
LINDSAY ABSHAGEN/Herald
Roger Zalneraitis, executive director of La Plata Economic Development Alliance , meets with Dave Smiley, an Oxford Asset Management financial planner and investment advisor.
On the
rebound L
La Plata Economic Development Alliance reports positive trends in growth-company economy
By Roger Zalneraitis
Executive Director, La Plata Economic Development Alliance
a Plata County’s economy is off to a great start this year. Companies report that our “feeder markets” (the places where most of our tourists come from, and many of our businesses sell to) are 12 to 18 months further ahead than economists predicted. This is rebounding to our favor, with employment, labor force participation, tourism, lodging, enplanements and home sales all up. The La Plata Economic Development Alliance was founded in 2011 and works to create jobs throughout the county by helping “growth companies” (firms with national and international markets that want to grow) succeed here. In addition to Mercury’s stellar growth, almost all aspects of our growth company economy are positive right now: v Tech businesses and relocations: We are seeing an increase
26 • Sunday, August 4, 2013 • Focus On Business
“I wouldn’t have dreamed that there could be such an impressive business support system in such a sparsely populated spot.” – E-mail from the owner of a high-tech company that moved from Texas to Durango
in creative-industry small businesses locating here. The Alliance has worked with several software, education, graphic design and geological businesses that have moved here or opened new offices here in the last two years. These reloca-
Crossfire Seeding, United Pipeline, Allied Pipeline, Zircon Container, and management companies such as Peak Energy and the Southern Ute Growth Fund continue to see solid gains as a result of opportunities in the Gulf, the Bakken, and other emerging domestic fields. The Alliance helps growth companies like these succeed through direct assistance and programs to improve the business environment. One of our key programs is “prelocation” assistance programs to make it easier to recruit key employees. We also assist firms by helping them network with other firms and resources here, help with permitting, connect companies to state agencies for tax credits and international trade, collaborate with Southwest Colorado Community College for workforce training, and facilitate internships with Fort Lewis College. The Alliance will continue to enhance these services and networks to better support new, existing and relocating companies. We plan to build awareness outside the community of Durango and La Plata County as a great place to do business, work to strengthen business to business
(B2B) services and access to capital for growth companies, and promote and enhance our pre-location assistance services to make it as easy as possible for all of our companies to attract the talent they need to grow and thrive. We’ve already seen some of the positive benefits of what we and our community partners such as SBDC and Region 9 have done. After meeting with a small high-tech company that relocated from a large city in Texas, the owner sent an e-mail saying, “I wouldn’t have dreamed that there could be such an impressive business support system in such a sparsely populated spot.” This is what Durango and La Plata County have built: through innovative programs and initiatives, we now have an unparalleled small town entrerpreneurial ecosystem. Our job is to keep strengthening this ecosystem through programs like the new business accelerator, and start telling our business story to the world as proudly as we do our lifestyle story. For information, please visit our website at www.yeslpc.com or contact us at info@yeslpc.com. v
REASONS TO RELOCATE La Plata County is an ideal location for entrepreneurs and innovative businesses that want to grow and succeed while also enjoying an outstanding quality of life for themselves, their employees and their families. Few other communities in the Rocky Mountains can offer businesses the resources that Durango and La Plata County can, such as: v Two colleges – Fort Lewis College and Pueblo Community College – to provide an educated and skilled workforce. v Customized workforce training to help employees keep up with technology and new ideas. v A vibrant and growing regional airport with direct service to major international gateways such as Dallas, Denver and Phoenix. v High-speed Internet and 4G wireless service capable of serving cloud technology, high-capacity data transfers, and distributed workforce and operations. v A collaborative business environment where firms help and assist one another. v Unparalleled business support, with direct access to seasoned executives and business leaders through the Business Advisors Network and Growth Company Initiative. v Low property taxes and low employee turnover, which reduces ongoing operating costs. v Local and statewide technical assistance, incentives, loans and equity to help get started and maintain growth in a new hometown.
tions are being driven by several factors: resources such as Durango Space and the Durango Tech Group that help foster collaborative environments for entrepreneurs, the airport’s quick flights to key hubs, continually improving fiber and wireless service, and the fantastic quality of life for individuals and families here. v Manufacturing: Almost every manufacturer in the region is growing. Over the last 18 months, Osprey, StoneAge, Freenotes Harmony Park, SoundTraxx and Chinook Medical Gear have all built or occupied new space to accommodate growth. There are also several new start-up food and beverage companies, including Tailwind Nutrition, Solay Superfood, Animas Chocolate Company and others that are taking advantage of the depth of resources and expertise we have locally in food manufacturing. v Natural resources: While gas field activity has struggled in the San Juan Basin, many natural- resource service companies such as Focus On Business • Sunday, August 4, 2013 • 27
INNOVATION is...
‘‘
If we can establish a reputation for a high quality of life and an environment that fosters innovation, we can rival any place in the world for economic investment, leading to job creation.
’’
LOCAL BUSINESS ORGANIZATIONS
Accelerator plan pushes
fast forward
By Laura Lewis Marchino
Assistant Director of Region 9 Economic Development District of Southwest Colorado
C
ollaborative efforts have distinguished the Southwest region as a leader in the economic and business development fields. The Region 9 Economic Development District of Southwest Colorado (Region 9), Southwest Small Business Development Center (SBDC), and the La Plata Economic Development Alliance (Alliance) are strong partners building our entrepreneur infrastructure with limited resources. Due to wanting to get the biggest “bang for the buck,” the partners have focused their last several years on second-stage or growth companies. Growth companies are defined as businesses that ex-
– Gov. John W. Hickenlooper, State of Colorado
28 • Sunday, August 4, 2013 • Focus On Business
port products and services outside the region, are growing, and offer higher than average wage jobs. These are the companies that communities want to be successful, because they bring in new income and have high brand recognition. Rocky Mountain Chocolate Factory, Mercury Payment Systems, Zuke’s Performance Pet Treats and StoneAge are examples. This specialized focus has seen results. The Colorado Companies to Watch program recognizes 50 growth companies every year, and Southwest Colorado has had the most winners from any rural region in the state. Since the program began in 2009, Southwest Colorado has seen 12 companies recognized. But due to our remote, rural location, the local economy relies heavily on entrepreneurial smallscale businesses for jobs and tax
SCAPE programs offer funding and aid for companies that create jobs
revenues, and these businesses also need to be sustained and grown. The Southwest Colorado Accelerator Program for Entrepreneurs (SCAPE) is an additional tool in the tool box that identifies the emerging businesses that need intensive mentoring and capital investment to put them on the growth-company track. SCAPE’s objective is to support the creation and development of job-creating companies by offering an Accelerator Program. Successful completion of the SCAPE program should provide these businesses the ability to enter markets and raise capital. The goal is to “graduate” up to eight companies every year, with each company creating at least six jobs in the first two years. This new program is supported by Region 9, Alliance
WHAT IS A BUSINESS ACCELERATOR? Business accelerators share some of the characteristics of incubators, offering professional advice and guidance to startups. However, the incubation period is very short and intense. Accelerators aim to turn business ideas into prototypes or products that are ready for market in a matter of months. Sponsors provide initial funding and expertise to small groups that can demonstrate a great product idea. In return, the sponsors sometimes take a small equity stake in the new business, which might be around 6 percent.
and SBDC as well as a num- will include potential follow-on ber of local financial institu- investors. tions. There are also 15 private“Southwest Colorado has a investor mentors who will ac- lot of entrepreneurs with great cept businesses for intensive business ideas,” said Gary mentorship to help them address Masner, a SCAPE co-founder. the specific challenges they face “Until now, it has been a chalin establishing and growing lenge for many of them to turn their companies. their ideas into a successful According to Ed Morlan, business. SCAPE will help them executive director of Region 9, with their hurdles and set them “SCAPE builds on the success up for success.” of the Growth ComThe project also pany Initiative, and “We are happy aligns with the provides another State Colorado to support level of services Blueprint Economand support for the (SCAPE) and ic Development emerging growth Plan, by focusing expect to see startups in Southon Colorado’s 14 west Colorado. We identified key insome great are happy to supdustry areas. companies port this program SCAPE is curand expect to see come out of it.” rently working with some great compaits first companies. – Ed Morlan, nies come out of it.” For more informaexecutive director SCAPE will run tion, please go to of Region 9 two Accelerator www.goscape.org. Programs per year, each of them Laura Lewis Marchino is the asfour months long. Companies sistant director of Region 9. Region accepted into the program will re- 9 serves five counties, ten municiceive up to $30,000 to help build palities and two tribes in Souththeir company, along with free west Colorado. Region 9’s mission office space, discounted business is to be a regional leader, working services and intensive mentor- with the private and public sectors ship. At the end of the four-month to enhance economic conditions, program, there will be a presen- and improve the region’s economic tation given by all finalists that prosperity. v
Laura Lewis Marchino, the assistant director of Region 9, stands at First National Bank in front of the reading material she provides. LINDSAY ABSHAGEN/Herald
SBDC: Innovative business practices seem to be on the rise in La Plata County Continued from Page 25
team of in-house and external trusted advisors can enhance the success potential of these companies exponentially. In the last few years we have started to provide focused panels of business advisors to meet with clients so that a client can present their top business issues and needs. These sessions generally involve between 2-5 business advisors. The advisors typically bring a depth and breadth of business experience and business acumen that is hard for many smaller businesses to afford or find. The types of business needs that can be addressed include doing a trial run pitch to receive a contract, preparing for successful business exit/transi-
tion, launching a new business service, identifying effective marketing strategies, general business concept review, etc. With our economic development partners the SBDC has started to utilize a business and economic strategy called economic gardening. The strategy is typically directed at 2nd stage growth companies that have established markets and business systems that have good growth potential. The program involves access to industry and market research/data mining and analysis, peer and advisor mentoring, and in some cases access to equity investment capital. At the SBDC we have modified this approach to provide the same services to start-up companies. We have done this in response to many
clients reporting their inability to find good market and research sources that are affordable or available to them. During the last session of the Colorado State Legislature a bill was passed that will enable this economic gardening program to be expanded to the communities our network serves throughout Colorado. In closing, innovation seems to be on the rise in La Plata County. From a variety of innovative businesses (both growth and Main Street types), a very collaborative relationship between county economic and business development organizations (Region 9 EDD, Alliance, Chambers of Commerce, SBDC), an evolving collaborative relationship among Fort Lewis College, the Southwest Colorado Commu-
nity College, and K-12 schools and human resources they are producing, and the new entrepreneur support programs like the Southwest Colorado Accelerator Program for Entrepreneurs (SCAPE), there is definitely something very special about the entrepreneurial ecosystem in La Plata County. Joe Keck is the Director of the Southwest Colorado Small Business Development Center (SBDC). Since 1977 Keck has worked in the community planning, economic and business development area. The mission of the SBDC is to Assist Businesses to Start, Grow and Prosper. The SBDC serves the five county area of Southwestern Colorado including the Southern Ute and Ute Mountain Ute Indian Tribes. v
Focus On Business • Sunday, August 4, 2013 • 29
BID businesses get creative By Tim Walsworth
True innovators are constantly tweaking things and coming up with new ideas. Not just once, or even once a year, but constantly. To me, the definition of innovation as it relates to business is having the attitude and philosophy of continuous improvement. Here are some examples of recent innovation in Durango’s downtown businesses: v Colorado Pongas, a pool hall and not a traditional art venue, has taken on art as part of what
if offers to guests. It was a part of the most recent First Thursday Art Walks. v The Rochester Hotel and Leland House have been doing summer concerts on Wednesday evenings for a couple of summers now. They pack their courtyard by offering a service not typically offered at standard hotels and are able to show off their unique amenities. v The Durango Farmers Market at First National Bank of Durango recently held a free bike tune up session in advance of
Clean Commute Week. Creative partnerships can create win-win situations. Clean Commute Week got people to dust off and tune up their bikes for the next week, and Durango Farmer’s Market got additional and perhaps new traffic that day. v Tim Walsworth is the executive director of the Durango Business Improvement District. He is also president and CEO of United Way of Southwest Colorado.
Bike tune-ups were offered at the Durango Farmers Market during Clean Commute Week.
HERALD FILE
30 • Sunday, August 4, 2013 • Focus On Business
Photos courtesy of Colorado Pongas
Local artists’ work is displayed at Colorado Pongas as part of Durango’s First Thursday Art Walks, from top: “Pool Shark,” by Brian Simmonds; “Rising From the Ashes,” by Devin Maureen Draget, and “Dragon Ladies,” by Virgio Sanchez.
Focus On Business • Sunday, August 4, 2013 • 31
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