The Catalyst - March ‘09 Edition
BizStarts Venture Track Kick Off
BizStarts Venture Track kicked off March 13 at the Country Springs Hotel in Waukesha. Venture Track will serve as the path for high growth entrepreneurs to launch their business and land outside investment. Hands-on mentoring, training programs, an online community and events will all work together in assisting entrepreneurs. 
Attendees heard from BizStarts President John Torinus and met Chelsea Krause, the new manager of Venture Track. She will apply her knowledge of start-ups and technology transfer to enhance the mentor program and help start-ups get the resources they need. Chelsea created a similar initiative at the University of Louisville Medical School.
The special guest at the Venture Track kickoff was Sherwin Greenblatt, who graduated from MIT and went on to become the first employee of the Bose Corporation – and later president. From humble start-up roots, Bose rose over $1 billion in annual sales. Today, Mr. Greenblatt directs the Venture Mentoring Services (VMS), an MIT program with a goal of providing practical, professional advice for entrepreneurs. “You don’t learn how to start a business in a classroom,” he said.
VMS started with 25-30 ventures and 10-15 mentors. It has since grown to over 100 mentors, about 45% of whom are seasoned entrepreneurs from Boston. Its number of ventures has grown to over 100, with 50 company launches executed and six liquidity events.
He described their mentor program in detail, which is only fitting at the launch of Venture Track. VMS focuses on developing entrepreneurs rather than start-ups.
BizStarts is looking for more mentors for the classes that will begin shortly as part of the VentureTrack program. More details follow!
Find out more about Venture Track here
Sign up for Venture Track, Become a Mentor, Coach or Instructor
Venture Track’s first entrepreneur program starts June 1st
Venture Track shows an entrepreneur how to put a business plan in place to facilitate the growth of a business concept and connects the entrepreneur to valuable resources for high potential entrepreneurs. This 10 week program, developed by the Kaufmann Foundation, begins June 1st.
Who Should Attend?
Early-stage entrepreneurs who are developing growth concepts that will need external funding. Multiple business partners are encouraged to attend at a reduced cost. Only growth concepts will fit the Venture Track model. If your concept or idea doesn't fit this definition, and you're interested in enrolling in a class, please check out our listing of service providers or your local Small Business Development Center (SBDC). There are several agencies that provide excellent resources and classes to meet your needs.
Classes begin June 1. The course costs $1,000. If that scares you because you saw your 401(k) statement recently, here’s good news: a Wisconsin Department of Commerce grant can cover 75% of the cost! This makes it what one would call “a good investment.”
Sign up for the class here.
Download the grant application from the Wisconsin Department of Commerce here.
Mark Your Calendar: May 7th Networking Event!
Have you seen Manpower’s beautiful new World Headquarters yet? Have you met up with hundreds of energetic, innovative entrepreneurs in Milwaukee yet? Ready to accomplish both? Consider it done! Join us for the next BizStarts Milwaukee Networking Event, Thursday, May 7th at Manpower’s World Headquarters, located on the north edge of downtown along the Milwaukee River just south of Cherry Street.
The event will run from 4:30-6:00pm and there will be no cost! Parking is available in Manpower’s visitor lot, which is in the parking garage off Dr. Martin Luther King, Jr. Drive and Cherry Street.
Let’s review the four BizStarts initiatives for 2009
Now that they’re all up and running, let’s summarize BizStarts Milwaukee’s four key initiatives:
- BizStarts Connect — The BizStartsMilwaukee.com web site is up and running. It has become the central place to go for information about entrepreneurship. The next step will be to enhance the site with more interactive space for entrepreneurs to talk to each other. That work is in progress.
- BizStarts Learn — Initial meetings have been held to create a consortium of educators in the field of entrepreneurship. Best practices already are being exchanged by educators across the seven-county region. An assessment of the current entrepreneurial programs within these educational institutions is in the works.
- BizStarts Venture Track — This initiative provides systematic path for entrepreneurs to build a viable business plan and get launched. It includes classes and workshops and a team of skilled mentors. Companies are encouraged to apply. If eligible, Venture Track companies will be matched with a team of skilled mentors (highly successful entrepreneurs) for additional guidance and support.
- BizStarts Buzz — This is the effort to talk up the region as one of the best places to start a business. The culture in the region already is changing as private and public sector leaders realize the region must generate new ventures as a key strategy to replace the jobs lost in the manufacturing sector. The Milwaukee 7 “grow” strategy will be communicated through the Buzz initiative.
Featured Entrepreneur:
Joel Lederhause
So, how does selling ramps online sound as a way to start a multi-million dollar e-tailing business? 
Joel Lederhause didn’t necessarily imagine this scenario in 1997 when he tried selling some ramps online that he couldn’t find a buyer for locally. What followed is an entrepreneurial tale that has led to a $15 million business called Discount Ramps, LLC.
While working as a firefighter in West Bend, Joel bought a franchise for selling ramps. When the franchiser went under, he was stuck with three ramps. So, he listed them for sale on a web site.
Nothing happened for a year, but then orders started coming in, including from the US military. He started sourcing multiple types of ramps and then realized his business model could expand to fit other product needs for his customers.
Today, his company sells 8,000 other products from a 40,000 square foot headquarters in West Bend. His revenues for 2008, all through internet sales, exceeded $15 million, but only 18% of that revenue comes from ramps.
To reflect the extensive product line, Joel will soon rename his company Etailered LLC. His sourcing continues all over the world, including China and Taiwan, and the company employs 24 people. It’s the kind of start-up job growth the Milwaukee 7 region needs to nurture.
Lederhause started with his own funds and grew with the company’s cash flow, He became bankable and that helped him expand. Now he is looking for an injection of capital so he can grow even faster.
Members of BizStarts Milwaukee are helping him with introductions to potential investors. “This is what we are all about,” said John Torinus, president of BizStarts, “getting acceleration of new ventures.”
Lederhause pours high energy into the business, assembling 400 domains that feed into 25 web sites. His products range from ramps to lifts, hitches, biking gear and other paraphernalia. Unlike many other middlemen in internet business, his company buys and warehouses product. The others drop ship and never take possession of the goods. He rents 300,000 square feet of warehouse space in the area.
A core strength of the company is website design, and Lederhause does a lot of that himself. He and the company are also experts at product design and innovation. Despite the economic downturn, he plans to keep growing.
Lederhause and his wife Aimee were present at the first BizStarts Connect meeting at MSOE in January, helping other entrepreneurs learn what can be done with innovation, patience and hard work. In Joel’s case, it all started with selling a few ramps online – proving you never know where a good idea can take you.
Check out the Discount Ramps website.
Mentors are key: John Torinus’ piece in the Journal Sentinel explains
BizStarts President John Torinus discussed the value of mentors in last Sunday’s Milwaukee Journal Sentinel. Read his column here: http://www.jsonline.com/business/41607062.html
Do you know a successful serial entrepreneur that would be great at mentoring? If so, please nominate them. E-mail your nominations to: chelsea@bizstartsmilwaukee.com
Know what’s happening out there with one click!
One of the great features of BizStartsMilwaukee.com is the Classes & Events Calendar. There are a ton of events taking place around Milwaukee that are of interest to entrepreneurs and this is your one-stop shop to find them all!
You’ll find the BizStarts calendar at http://www.bizstartsmilwaukee.com/Calendar.htm
For up-to-date information on BizStarts Milwaukee, be sure to visit the website:
http://www.bizstartsmilwaukee.com
And, check out the new BizStarts Milwaukee LinkedIn group!
http://www.linkedin.com/groups?gid=1766387
Pass The Catalyst newsletter on to your friend and associates! They can subscribe to our free newsletter on BizStarts Milwaukee’s Home Page under BizStarts Newsletter.