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Strong Data for Minority Own Businesses

There is very strong data to support investment in minority owned businesses in Minnesota. Data from the 2012 Survey of Business Organizations and the Annual Survey of Entrepreneurs 2015 reveal these important insights.

1) Minority business created more jobs than the largest employer in Minnesota: The Mayo Clinic, the largest MN employer, employed 39,000 jobs, estimate of DEED. Minority owned businesses as a group in comparison, employed over 70,000 people with an annual payroll of $1.7 billion.

2) The number of minority businesses grew faster than non-minority businesses: While the number of minority businesses grew by 53 percent during the period 2007-12, the number of non-minority businesses declined by 3 percent.

3) Minority business job growth increased at a higher rate than non-minority businesses: While minority businesses achieved a 68 percent growth in jobs during the period 2007-12, non-minority business jobs grew by only 10 percent.

4) The number of minority female owned businesses grew faster than female owned businesses: While the number of minority female businesses grew by 78 percent during the period 2007-12, the number of non-minority businesses grew by 19 percent.

5) The number of minority veteran owned businesses grew faster than veteran owned businesses: While the number of minority veteran businesses grew by 130 percent during the period 2007-12, the number of veteran businesses grew by 6 percent.

6) The fastest growing industries for minority firms were mining, utilities, wholesale trade, transportation and warehousing, management and other services: The number of minority owned firms in five out of 18 industries more than doubled between 2007 and 2012.

Most of minority businesses are at the critical stage with sales between $100,000 and a million dollars. Policy attention is needed to help them grow. Our study of African immigrant entrepreneurs revealed that they needed most help with marketing and new product development apart from access to capital. Female entrepreneurs had unique needs compared to male entrepreneurs. Most of these entrepreneurs received very little help from public or non-profit organizations.

Research shows the minority economic status improves when minority entrepreneurs are successful as the wealth base of the community expands.

Bruce Corrie is Professor of Economics and Associate Vice President for University Relations at Concordia University-St. Paul.

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“Wait Training”: It’s All Good

Junita Flowers is a writer, speaker, entrepreneur, mom and the owner of Favorable Treats. With more than 20 years of experience working with nonprofit organizations, she spent her career advocating for families and leading social change initiatives. Junita has learned the value of “waiting” during her years as an entrepreneur and business owner and shares her experiences with us each second Tuesday of the month.

“You don’t have the skill, talent, or ability to run a business!” were the words that rang out after a failed business planning discussion. I was devastated. Although the words were jarring to my ears, it was that level of discomfort that pushed me to transform my business from “just another cookie company” to a mission-driven, for-profit cookie company committed to doing good and making an impact.

While “giving-back” or funding social, cultural and environmental causes isn’t a new concept, more and more entrepreneurs are choosing to define their business success based on equal parts profits earned and purpose supported. Social entrepreneurship is all about doing good. From large scale operations to one-person startups, there are some common drivers that many social enterprises share. My top three are mission, meaning and money.

  1. Mission: Defining my business as a for-profit, mission-driven cookie company allows me to live out my life’s purpose both personally and professionally. Connecting my company’s why we do good things with the how we do good within our community allows us to be an active contributor in creating the good we wish to see and experience in our world.
  2. Meaning: Consumers want to feel good about the purchases they make. They want to make purchases that align with their values. I have the opportunity to connect my customers to a product they love and support a cause they care about. By focusing on meaning, my customers and I become partners in doing good.
  3. Money: At the core of it all, money funds mission! The ability to generate a profit to take care of my family and invest in my community creates a business model that keeps on giving. If my business does not make money, I have limited my ability to make an impact. Building a business from scratch, experiencing each financial milestone and busting your hind parts to reach profitability…is all good.

My company makes good cookies. “We do good things” is Favorable Treats commitment to delivering a delicious, scratch-made product, while making an impact. I recently had the opportunity to share my business journey and inspiration for Favorable Treats on the award winning podcast, Social Entrepreneur, listen by clicking here.

I would love to hear from you. How are you using your business for good? As a consumer, how important is a company’s mission when making purchasing decisions? You can send your reply here.


You can read more about Junita Flowers on her website at favorabletreats.com. You can also follow her on Facebook and Instagram.   In addition we are pleased to have Junita join us at the  James J. Hill Center on October 11th from 9AM to 10AM  as she moderates our TAKING THE LEAD panel discussion focusing on the complex and rewarding ecosystem of women entrepreneurs.  This month’s topic will be on the “Growth Strategies and Plateau Pains ” This program is free and open to the public.  

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She Tells Rochester’s Startup Stories

Leah Kodner, Business Librarian from the James J. Hill Center interviews 1 Million Cup presenters each month for the Startup Showcase feature in the Pioneer Press.  Recently she connected with presenter Amanda Leightner. See interview as seen in the Pioneer Press Startup Showcase on September 9, 2017.

Startups need publicity. Without publicity, nobody will know that a startup exists, what it does, or why it matters.

Startups also benefit from being part of a startup community, where entrepreneurs support one another and share their expertise. These startup communities also need publicity, in order to share news about events, resources for entrepreneurs, and more.

Amanda Leightner was impressed with the Rochester startup community but saw that it lacked publicity. She started Rochester Rising both to provide publicity for Rochester entrepreneurs and to inform outsiders of all that the Rochester startup community has to offer.

ENTREPRENEUR PROFILE

Name: Amanda Leightner
Age: 32
City you live in: Rochester
City of birth: Pittsburgh, Pa.
High school attended: Highlands High School, Natrona Heights, Pa.
Colleges attended: Carnegie Mellon University, Pittsburgh, Pa.

COMPANY PROFILE

Name of company: Rochester Rising
Website: www.rochesterrising.org
Business Start Date: July 18, 2016
Number of Employees: 1

 

Q&A

Q. What led to this point?
A. I’m a trained molecular biologist with over 12 years of experience in biomedical research. Even though I spent 6 years obtaining a PhD and continued to do postdoctoral studies, I knew that a career in science was not for me. After graduating from Mayo Graduate School, I decided to do my postdoctoral research at the UMN and spend that time gaining experience to try doing something else.

I had always enjoyed writing, and thought I could explore a career as a science or medical writer, but at the time I lacked the experience. I did an internship with Life Science Alley Association, where I really got interested in the science business community in Minnesota.

Afterwards, I got in touch with a researcher I had worked with at Mayo Clinic, Jamie Sundsbak, who ran a supportive group for life science entrepreneurs in Rochester called BioAM. A few months later, I received a call from Jamie asking me to help him build up a website and online presence of BioAM and help share stories of life science innovation in Minnesota.I wrote stories about science entrepreneurship around the Minneapolis area and built up this web presence for about a year and a half, calling it Life Science Nexus.

In January 2016, I completely took over running and operating Life Science Nexus. That May, I decided to go full in on being an entrepreneur myself with the online news site. I moved from Minneapolis back to Rochester to be in closer contact with Jamie as I grew the business. After living in Rochester for only a few weeks, I realized how much the entrepreneurial community as a whole was growing, and how little anyone was talking about it.

In July, Life Science Nexus was pivoted into Rochester Rising to amplify the stories of all entrepreneurship, expanding beyond life sciences, and focusing in on the Rochester area. Now I run all aspects of the business as a solo entrepreneur.

Q. What is your business?
A. Rochester Rising is an online news site that amplifies the stories of entrepreneurship occurring in Rochester. We put out several articles and a podcast every week taking an in-depth look at Rochester startups and innovative small businesses and really take the time to understand the person behind the business and how they started it in Rochester.

Q. Where do you go for help when you need it?
A. The entrepreneurial community in Rochester is a fantastic resource. You can always find someone who is a few steps ahead of you who is willing to give advice and encouragement.

Q. What problems does your business solve?
A. Even a few years ago, there was not much of an entrepreneurial community in Rochester. While still small, we now have an entrepreneurial core that is growing every day…READ FULL ARTICLE

 

You can hear from startups like this one each Wednesday, 9-10 a.m. at the James J. Hill Center during 1 Million Cups St. Paul. The James J. Hill Center is a nonprofit in downtown St. Paul that provides access to business research, educational programming and a place to work. The Hill is open to the public 10 a.m.-5 p.m., Monday-Thursday. To keep updated on what startup is presenting next or to apply to present, visit www.JJHill.org.

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Soft Skills Revolution: Memorization

“Chris Carlson is an entrepreneur, actor,  lawyer and the founder of NarrativePros dedicated to coaching stronger connections. Chris is setting the standard for soft skills training across the region and will be sharing his tips and tricks in our monthly blog Soft Skills Revolution. Come back the first Tuesday of each month and learn key steps to unleash your efficiency, effectiveness and maximize your input.

Memorization – Helping Your Audience by Helping Yourself

Memorization is a misunderstood tool speakers don’t use enough. Proper memorization techniques can increase your comfort and audience appeal exponentially. The secret begins and ends with a simple question.

What does it mean?

When I work with someone on a presentation I ask them a series of questions:

What are you telling me?
How is it different?
Why should I care?

Audiences will answer those questions with or without you. Speakers who embrace this will be in a better position to play a role in their own fate. Speakers who ignore this, risk the audience missing the point.

The effective way to memorize anything begins with understanding its meaning. An actor memorizing a role begins by understanding the plot of the play.

Memorization Gets a Bad Rap

Some people think memorization is a dirty word. First, it does take work and second even some “experts” say you might sound “memorized”.

I’m here to tell you it’s an worthwhile investment. Don’t let the fear of failure or sounding “memorized” dissuade you. Understanding how memorization really works lets you adjust your focus appropriately.

I don’t recommend trying to memorize your whole speech, word for word. I do strongly recommend memorizing parts of it. The payoff is huge. You’ll be more comfortable and confident with your message and this will delight and engage your audience. The result is giving AND leaving them with a better sense of your intended meaning.

Piece by Piece

You can make the most of memorization if you approach it piece by piece. Not word by word. Think of it as a series of interconnected “meanings.”

The most important “meaning” you need to nail down is the Big Idea”. What does your speech mean to your audience? This is something you need to know so well that you can say it in your sleep. Again, if you don’t know what your speech means, how can you expect your audience to?

And if it’s hard for you to memorize, that means it is going to be hard for the audience to hear. Make the meaning clear, concise and compelling.

Brick by Brick

If you’re on a roll and ambitious, memorize the teeny, tiny bricks of meaning: the words. Think of the entire structure of memorization as a series of interconnecting lego-bricks each building on one other.  Each brick is a nugget of meaning. Get to know each of them intimately. This is the fundamental principle to mnemonic techniques:

– Chunking: Turning strings of letters or numbers into more meaningful bits
Visualization: Transforming meaning into vivid images that you can link together.
–  Memory Palaces: Taking images and placing them in a familiar location like your home.

No matter how deep you go down” memory lane” try to always memorize the first minute of your speech. Trust me, your audience will thank you and you will be helping yourself. Learn your part and play your role. You will be amazed by the results.


Guest writer:
 Chris Carlson
Visit @NarrativePros for more information.

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Startup Secrets and Sh#$ to Know: Graduate’s Hustle Handbook To Entrepreneurship

Aleckson Nyamwaya has his beat on the pulse of the startup world in MN.  He is an Associate at @gener8tor, contributor for @startupgrind, ambassador for @1millioncupsspl and a lover of all things tech & startups. We are pleased to have his monthly insight with our blog “Startup Secrets and Sh#$ to Know.”  Check back each month for his thoughts, observations and featured companies.

Recent Graduate’s Hustle Handbook To Entrepreneurship

Are you a recent grad? Want to get involved with entrepreneurship?

What you need are friends.

Other people will call them “connections” but I think that’s a buzzword that doesn’t mean anything anymore.

To do this, you’ll need a healthy combination of online and offline hustling…

  1.  Discover and engage with them online
  2. Connect with them in person

Easy right?

Below I’ve outlined steps on how you can discover the right people and connect with them. Ask good questions and ask for advice – what would they do if they were in your position? Finally, provide value. Literally ask them how you can help!

1. What is your goal?

What is your journey, why are you doing this? What is your end goal.
Understanding your end goal will help you create a more concrete plan and will also keep you motivated when you are thinking about quitting.

2. Get on Twitter

Follow and engage with local influences on Twitter with the goal of setting up a meeting in real life. Once you set up a live meeting, you are ready for step 4.

Influences can be journalist who write about your local internship scene, meetup and hackathon hosts, current founders, entrepreneurs with exits, investors, people who lead organizations that are dedicated to serving entrepreneurs etc.

3. Live events

Other good places to meet people involved with startups/tech and entrepreneurship are Meetups, hackathons, reach out to local organizations like accelerators, venture firms, current startups, etc.

4. Share your story

Once you’ve connected with local influences and people who are where you want to be, ask them questions. Find out how they got where they are today!

– What did they do to get here?
– Share your story.
– What would they do if they were in your shoes?

At the end of the meeting ask them “how can I help you?”

5. Provide value

How will you provide value?

Are you a coder? Are you a Google Analytics wizard? Facebook ads? Salesforce? Business development? Maybe you’ve had a few projects to show for it, etc. Offering services for free is a common “get-your-foot-in-the-door-technique.”

It’s 2017, if you can Google, you have a special skill.

At the very least you can manage a social media account. So don’t even say that you don’t have any skills.

Pro-Tips

  • Checkout the business section of your local newspaper, or local entrepreneurship blog
  • Angel lists are a great place to find startups
  • If a startup recently raised money ,chances are they are hiring
  • Same with VC firms
  • Follow up with emails within 1 hour (or 24 hours max)

Conclusion

Stick to the process and you will eventually luck out and connect with someone who is gracious enough to give you a shot.

When you do, work you butt off, under promise, over deliver and go above and beyond. The last thing you want to do is disrespect and embarrass the person who stuck their neck out for you.

If you drop the ball, don’t worry it happens, do not make this a habit. Follow up ASAP and remember, actions speak louder than words.


You can tweet me @alecksonn or subscribe to my newsletter

 

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New App Reflects the Changing Goals of Health Care

Leah Kodner, Business Librarian from the James J. Hill Center interviews 1 Million Cup presenters each month for the Startup Showcase feature in the Pioneer Press.  Recently she connected with presenter Jared Sieling. See interview as seen in the Pioneer Press Startup Showcase on August 26, 2017.

A 2010 study by the Agency for Healthcare Research and Quality entitled “National Inpatient Sample” found that rates of hospital stays for pulmonary heart disease rose 112 percent between 1997 and 2010, the third highest growth rate behind renal failure and prolonged pregnancy.

Heart disease is a growing problem, and its treatment requires an increasing amount of resources from doctors and hospitals. Jared Sieling saw firsthand the impact that mobile health care apps could have on managing chronic conditions, and he created Chanl Health to fill this void for individuals with pulmonary heart disease. Chanl Health is a software program that allows doctors to give patients a care plan through their mobile app, and then allows the doctors to monitor the patients’ progress.

ENTREPRENEUR PROFILE

Name: Jared Sieling
Age: 32
City you live in: Maple Grove
City of birth: Grand Rapids, Minn.
High school attended: Watertown-Mayer High School, Watertown, Minn.
Colleges attended: Gustavus-Adolphus College and University of Minnesota

COMPANY PROFILE

Name: Chanl Health
Website: www.chanlhealth.com
Business Start Date: January 2017
Number of Employees: 3

Q&A

Q. What led to this point?
A. I’ve always been a science and technology nerd, but after completing my degrees in physics and electrical engineering, I shifted into software development and got really interested in the science behind the human interaction with technology and how we can integrate tech smoothly into our daily lives to help us become healthier and happier people. I got into the Quantified Self movement and started the (Twin Cities) chapter, bought all the latest trackers and gadgets, and began a career developing software for behavioral change researchers at universities across the country. Over the past 8 years I watched the research behind these applications progress and consumer interest grow, but I didn’t see effective, science-based solutions emerging in the health care industry and getting into the hands of actual patients, so I decided to branch out and do it myself.

Q. What is your business?
A. At Chanl Health, our mission is to empower patients with cardiovascular disease in making healthy behavioral choices while recovering from a procedure or dealing with their condition. To do this, we provide a software platform to hospitals and clinics that allows them to offer a mobile “companion app” to their patients. The app converts the patient’s care plan into an easy to follow daily task list, providing reminders and tracking of medication, exercise, self assessments and educational material. It also integrates with popular brands of wearables and home monitoring devices that a patient can use, and is able to analyze the tracked data to deliver concrete feedback on progress to both the patient and their care team.

Q. Where do you go for help when you need it?
A. I’ve been fortunate to recruit some great advisers and mentors who have given me strong guidance when I’ve needed it. The Beta.MN organization has also been really great in connecting local founders and making it really easy to get quick questions answered.  Most recently, we’ve pulled together a group of health-related startups here in the Twin Cities and are co-working in a shared office space. This has been really great to essentially expand each of our small teams and surround ourselves with others who are going through the same issues on a daily basis….READ FULL ARTICLE

You can hear from startups like this one each Wednesday, 9-10 a.m. at the James J. Hill Center during 1 Million Cups St. Paul. The James J. Hill Center is a nonprofit in downtown St. Paul that provides access to business research, educational programming and a place to work. The Hill is open to the public 10 a.m.-5 p.m., Monday-Thursday. To keep updated on what startup is presenting next or to apply to present, visit www.JJHill.org.

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SUCCESS: Trump Your Brain

We are continually inspired by the many entrepreneurs we meet and follow day to day.  Jeff Brown is a particular favorite. He shares his seasoned experiences and thoughts regularly on his LinkedIn site.  We thought the following piece of wisdom posted last week was an important inspirational message for all.  To get more insight from Jeff connect with him on LinkedIn or swing by the Hill and see if you can catch him at a networking event. 

SUCCESS: Trump Your Brain

I hear many people talk about success but what does it really mean? Most of our ideas about what success means are not our own, they are derived from the influences of what others think. We get sucked into what other people think. Everything from television, advertising and marketing, influence what we define as success. These highly powerful forces tell how to define what we want and how we view ourselves. STOP!

I want to suggest we give up on our ideas of influenced success, and think about and make sure that they are our own ideas. Focus in on your ideas and make sure you own them. Become the author of our own desires and ambitions. You can’t always get what you want, but even worse is to have an idea of what it is you want and find out at the end of the journey that it isn’t, in fact, what you really wanted.

Build your own success by valuing YOU and what makes your heart sing. Your hearts emotion will trump your brains logic everyday.


Jeff Brown
Entrepreneur
Positively transforming your business and you by thinking differently.

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The Birth of GovDocs

Zach Stabenow is the CEO and Co-Founder of GovDocs. We had the opportunity to connect with  Zach about his entrepreneurial journey starting GovDocs and GovDelivery.  His story of success and thoughts on what is important are an inspiration for anyone taking the steps to make their dream happen.

How did your entrepreneurial journey begin?
It started in a studio basement apartment in the City of St. Paul with a small desk, one Dell computer with a dial-up modem and a futon for a bed.  I was fresh out of the University of Minnesota having been in the work force (tech industry) for only two years, when the entrepreneurial bug bit me.  My mother was a school teacher turned entrepreneur who started and ran a small business during my childhood and her father had a number of entrepreneurial ventures in North St. Paul so it was probably inevitable that I would have a passion for starting my own business just based on hereditariness.  So in June of 1999, I co-founded two companies; GovDocs and GovDelivery with a close friend, Scott Burns, as my business partner.

What are your current projects and or business ventures you are working on?
I currently own and run GovDocs, which is now independent from GovDelivery. GovDocs employs 50 people and growing who have a passion for providing employment law management software, data, and print solutions to the largest companies in North America.

What are the most important things to consider when starting a new idea / venture or start up?
Focus first on addressing a small niche market that is being under served.  Then, go serve that tiny market better than anyone else in the world for years, or even a decade.  It is incredibly tempting for entrepreneurs to build a business that serves a mass market right out of start-up phase because of the attractiveness of scale, but what I’ve learned is that your business first must prove that it can be #1 or #2 at something on a smaller level before it can advance to serving a mass market.

What resources did you use when starting your journey?
Books.  I read a lot of business books and trade publications before starting my entrepreneurial journey.  The most useful books that contributed to my business learning though were the historical biographies and auto-biographies of entrepreneurs who shaped our country’s history through business.  Ironically, one of those important biographies, was The Life of James J. Hill by Joseph Pyle and I also studied Highways of Progress written by Hill himself.  I have found that the most valuable business lessons come from reading and learning from those who have come long before us who are able to offer their life-time perspective of experience, rather than a recent business fad or technique.

How did you leverage the resources at the Hill Center?
Several years ago, I decided to examine GovDocs’ potential for additional strategic expansion from our core product offering.  To know whether my market hunch had any validity, I needed more empircal data.  A business acquaintance had suggested I use James J. Hill Center’s research library databases to gather data profiles on the largest companies in the U.S. so that I could analyze their geographical locations and other attributes.  That data and analysis turned-out to be crucial to convincing me and our leadership team to pursue our next strategic expansion opportunity.  Today, we still refer to that data when analyzing how well we are capturing market share.

What or who has made the biggest impact on your entrepreneurial career so far?
My mother.  If she hadn’t made the entrepreneurial leap herself, I wouldn’t have had the front-row seat to see what real guts and determination it takes to risk personal failure and money and to push through all the adversity required to start and grow a business. What has been the largest hurdle and / or success you have experienced as an entrepreneur?

Getting the very first customer (or set of customers) to purchase and use our products/services has always been the biggest hurdle when entering new markets.

What advice would you give to other entrepreneurs just getting out of gate?
Research the market you’re about to live in.  You can have a huge competitive advantage if you put effort and time in to this step.

What advice would you give to entrepreneurs that are stuck or have had their first failure?
Immediately perform physical movement on activities that will inch your business forward.  Make another phone call, write another email, design another prototype, interview a prospective customer… do anything that gets you physically moving and the business forward.  This helps bring your mental determination back and it gets one more item done for the business. Then repeat that 10,000 more times.

What is it about Minnesota and the entrepreneurial ecosystem and how has it managed to keep you here?Two key reasons:

  1. Minnesota has a long and consistent history of incubating some of the most successful entrepreneurs and businesses in the world.  That history and tradition motivates me.
  2. Minnesota weather and mosquito’s make for a hardy work force to hire from and build great teams. Whether you grew up here or were a transplant, to endure -15 temperatures, snow and mosquito bites year in and year out will turn almost anyone into a consistently hard-working team member. You can’t get that Silicon Valley.

The James J. Hill Center mission honors the legacy of its founder by continuing to support entrepreneurial spirit in the 21st Century. We offer researchprograms, and networking for each stage of business development. Our efforts also include services to the broader community through the hosting of cultural and artistic programming and events.  Visit us in downtown Saint Paul at 80 West Fourth Street, off the corner of Market and Fourth.  

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Helping Food-Delivery Services Get a Seat at the Table

Leah Kodner, Business Librarian from the James J. Hill Center interviews 1 Million Cup presenters each month for the Startup Showcase feature in the Pioneer Press.  Recently she connected with presenter Luke Katuin. See interview as seen in the Pioneer Press Startup Showcase on August 12, 2017.

The 2016 “eServices: Food Delivery” report by Statista Digital Market Outlook found that the food delivery market is expected to have a higher growth rate in the United States than in any other country, with a 24.6 percent increase in revenue and a 22.9 percent increase in customers expected between 2016 and 2021.

The food delivery market is hot right now. Luke Katuin felt that the growth in the industry was allowing large companies to block small, local delivery companies from the market. He created Table.delivery to unite these small delivery companies and over 9,000 restaurants under one platform, allowing users to choose from a variety of food and delivery options while getting locally managed customer service.

ENTREPRENEUR PROFILE

Name: Luke Katuin
Age: 35
City you live in:
 Eden PrairieAge: 35
City of birth: Garner, Iowa
High school attended: Garner-Hayfield High School, Garner, Iowa
Colleges attended: Waldorf College, Forest City, Iowa, and Minnesota State University Mankato

COMPANY PROFILE

Name of company: Table.delivery
Website: www.table.delivery
Business Start Date: November 2016
Number of Employees: 8
Number of Customers: 50+ delivery services, more than 9,000 restaurants, and even more hungry people

What led to this point?
I have spent over 20 years in the food industry. My company was a member of the Restaurant Marketing and Delivery Association, which is where we decided to band together and bring change to the evolving restaurant delivery industry.

What is your business?
Table.delivery is a food delivery platform. Table brings together all your favorite restaurants and the local delivery service teams that really focus on the customer. It’s a one stop shop for ordering, customer service and price comparison. You know what you are getting when you order on Table.

Where do you go for help when you need it?
Our company has over 20 partners that are industry experts. Collectively we have well over 100 years in the industry. Through our partners, we are able to craft our future with the best minds possible.

What is the origin of the business?
We started to notice a trend. Venture capital funded companies were expanding into our territories by collaborating with our local delivery companies to gain access to more restaurant menus. Once they had a sufficient amount, they would then bring in their own drivers and start using the data we provided them to squeeze out the local delivery guy. At our annual Restaurant Marketing and Delivery Association meeting we decided that we needed to adjust. These companies were not just squeezing us out but they were also misleading when it came to pricing and you could only contact them via social media. We felt that local teams could better provide the service that food deserves. Food is very intimate and thus should be treated appropriately. However, it was difficult to accomplish this with many local teams being spread about the country. Thus, we formed Table in order to unite these small local delivery teams. It gives us the ability to create one national presence to represent each other while keeping the customer service and last mile where it belongs, with teams that are actually in each market, teams that have been doing this for decades in some areas.

What problems does your business solve?
We noticed that large VC-funded companies were lacking in that local customer service that we all strive for. Our goal was to create a site where all of our local delivery teams can control and utilize their strengths appropriately. A site that utilizes strong and responsive customer service when it really matters, not in a day or two via Twitter  Normally when you use those larger delivery companies, you don’t even know who the last mile is being provided by. There is a general lack of information and price discrepancies. With Table we bring together the very intimate customer service focus that is desired while being up front with our partners and our prices.

Where did you pivot in your company’s journey? What big obstacle or hurdle did you have to overcome?
I think our biggest obstacle is exposure. Typically, when a service begins, they start in one central area and expand from there. We took a different route and had 40+ markets on day one. Our biggest challenge is getting the word out to everyone in all our markets without having to raise millions of dollars to do so.

What personal strengths or skill sets do you bring to the business?
I think my biggest strengths are my ability to work within a team and my refusal to give up. This has never been about one person getting rich or one company. We are the best we can be when we do things together. When you are dealing with people in multiple states, that can be difficult but I will press on, we deserve nothing less.

What are you most proud of?
We are by no means complete or have everything figured out but to get this far is amazing. When you are working with thousands of restaurants, multiple partners in multiple states, it’s a daunting task. This type of project has been attempted in the past but has always failed.  Getting this far just fuels our desire to continue our work and make this the greatest food delivery platform in history.

What obstacles must you overcome to be wildly successful?
Data will be vitally important. When going against companies that have raised hundreds of millions of dollars, we must use data to make sure we go in the right direction. Data in combination with our industry experience will help us greatly. Our greatest obstacle is getting our message and our brand out without needing to raise millions of dollars.

How are you funding your business — organically, angel or VC investments?
We are funded almost entirely organically to this point. We’re currently involved in raising $250,000. To date, we have raised about half.

What would be success for your business in the next 2-3 years?
In two to three years we should see our company expanding in our current markets. There is no reason we should not be doing exponentially more than we are at this point.

In your opinion, what does it take to be a great entrepreneur?
Perseverance is the number one thing you need. There will be many more “no’s” then there are “yesses.” This can often lead to the feeling of being alone or isolated. Every failure is a learning point and can make your successes that much sweeter.

What is your business model and how do you make money?
We are transaction-based. Every order we process at Table, we take a small portion and remit the rest to our partners.

What haven’t we asked you that we should understand about your business?
Why start a food delivery platform when there are many out there? While new technology and apps are great, the biggest thing they are missing is the managed delivery and customer service. This is what our customers recognize and what keeps them coming back.

Why do you do what you do? What is your “why,” your purpose?
This probably sounds silly, but I do this for all my delivery service partners. I have seen some of the fantastic things they do. I have watched them at conventions and on personal levels really striving to serve customers better only to be squished out by giant companies who operate in some ivory tower in another market. That can be a bit soul crushing and so I go to work every day and do whatever I can do so that they can continue being the best in the industry. It is not about how much money you have, it’s about the service you provide. Taking care of the customer, being local and engaged in your community. That’s who I fight for. That’s who I care the most about.

How did 1 Million Cups St. Paul help you? Did you get valuable feedback? Did you get connected to resources? Did you pivot because of the experience?
1 Million Cups has been great. The feedback we have gotten and the support is amazing.  I highly recommend it to every business.

You can hear from startups like this one each Wednesday, 9-10 a.m. at the James J. Hill Center during 1 Million Cups St. Paul. The James J. Hill Center is a nonprofit in downtown St. Paul that provides access to business research, educational programming and a place to work. The Hill is open to the public 10 a.m.-5 p.m., Monday-Thursday. To keep updated on what startup is presenting next or to apply to present, visit www.JJHill.org.

 

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They’ll help local investors buy local (businesses)

Leah Kodner, Business Librarian from the James J. Hill Center interviews 1 Million Cup presenters each month for the Startup Showcase feature in the Pioneer Press.  Recently she connected with presenter Patrick Saxton. See interview as seen in the Pioneer Press Startup Showcase on July 30, 2017.

MNstarter

Equity crowdfunding allows entrepreneurs to sell private securities in their company to investors. These offerings are usually restricted to large “accredited” investors who meet certain wealth and income standards. Now, Minnesota has made it possible to sell these securities to any resident of Minnesota. The MNvest law, which went into effect in June 2016, makes it legal for businesses to release equity crowdfunding offerings to Minnesota residents regardless of their wealth. Patrick Saxton saw the opportunities that this new law provided and formed MNstarter to help businesses launch successful equity crowdfunding campaigns.

ENTREPRENEUR PROFILE

  • Patrick Saxto
  • Age: 35
  • City you live in: White Bear Lake
  • City of birth: Blue Earth, MN
  • High school attended: North St. Paul
  • Colleges attended: Graduate of Metropolitan State. Attended University of North Dakota, Drake University, and Century College

COMPANY PROFILE

  • Name of company: MNstarter
  • Website: www.mnstarter.com
  • Business start date: September 2016
  • Number of employees: 5 co-founders and 1 intern

Q&A

What led to this point?
I worked with the Department of Veterans Affairs, first as a business analyst in the benefits division, then as the primary Information Security and FISMA policy writer for 23 regional offices. I spent my remaining time in government working at the Small Business Administration (SBA), helping entrepreneurs start and grow their small businesses and working to expand SBA’s reach in Minnesota. I am now working as a software engineer and completing my degree in computer application development at Metropolitan State University.

What is your business?
MNstarter is a public benefit corporation whose mission is to grow Minnesota companies through local investment. MNstarter is a registered MNvest portal operator and advocate for capital crowdfunding.

MNstarter offers free access to the MNstarter.com MNvest crowdfunding portal along with best practice guides for self-service capital crowdfunding campaigns. It also offers access to the MNstarter Resource Library, which is an organized group of “resource partners” who can work directly with entrepreneurs to navigate legal, finance and marketing considerations to get their capital campaigns set up.

Where do you go for help when you need it?
We go to the MNstarter Resource Library and the folks at MNvest.org, the outreach and advocacy group for the MNvest legislation.

What is the origin of the business?
MNstarter was started after I watched a 1 Million Cups presentation at the James J. Hill Center by Zach Robbins and Scott Cole. I went back to our office and started to talk about the MNvest law and over the next few weeks we had a core group of us that were ready to make MNstarter a real company. About three months after we started, Judy Wright, our fifth and final founder, found us on the internet and emailed us the same week we had decided to go looking for a finance specialist to round out our group. Since then, the five of us have been working to help Minnesotans find ways to meet their business and investment goals.

What problems does your business solve?
MNstarter solves the need created by new Minnesota MNvest legislation that permits intrastate investment crowdfunding through securities offerings exempt from Securities Act registration. The MNVest law allows companies to sell equity in their companies to Minnesota residents. Minnesota residents not considered “accredited investors” have equal opportunity to invest in these offerings. Under most federal rules, non-accredited investors would not have this opportunity. This creates a larger pool of possible investors. It also gives all Minnesotans the opportunity to invest locally.

MNvest went into effect in June 2016, and requires that these MNvest “offerings” must be made online through a “MNvest Portal” registered with the Minnesota Department of Commerce.

Lots of times we hear “buy local”. At MNstarter, we like to say, “buy local (businesses).” CLICK HERE FOR FULL ARTICLE


Interviewer: Leah Kodner
Business Librarian, James J. Hill Center

You can hear from startups like this one each Wednesday, 9-10 a.m. at the James J. Hill Center during 1 Million Cups St. Paul. The James J. Hill Center is a nonprofit in downtown St. Paul that provides access to business research, educational programming and a place to work. To keep updated on what startup is presenting next or to apply to present, visit 1millioncups.com/stpaul.

 

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IMPORTANT NOTICE:

We are pleased to announce the completion of our elevator renovation at the James J. Hill Center. This project was financed in part with funds provided by the Arts and Cultural Heritage Fund through the Minnesota Historical Society and the F. R. Bigelow Foundation. It will greatly increase our ability to serve patrons with accessibility needs.

Please access our ground floor elevator entrance via Kellogg Ave at the back of the building. Please ring the doorbell on the right hand side of door and a Hill staff member will assist you. If you have questions or concerns please call 651.265.5500. We look forward to having you visit our brand new elevator!

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