Bluegrass Business Development Partnership
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Bluegrass Business Development Partnership Entrepreneur Scenario
James Smith, 32, has a certificate in computer technology from Bluegrass Community and Technical College. He has been employed at a local manufacturing company since he graduated and is now manager of quality assurance. James grew up in a disadvantaged Lexington neighborhood where his parents ran their own small retail shop.
Through the experience he has gained on the job, and through his interactions with other small manufacturing firms, James sees the opportunity to build an internet service that will help link small, minority-owned manufacturers as suppliers to much bigger businesses.
James knows he has a good idea, but he also has a lot of questions…should he try to start a business of his own? How much does that cost? How could he ever find the time and money to start a business? Are there any state incentive programs for minority businesses?
James inherited the entrepreneurial bug from his parents. He likes the idea of starting his own business, but he knows he can’t quit his day job, at least yet, he has a young family to worry about too. Where can he find help? Then, James remembers reading something in a local paper about the new Bluegrass Business Development Partnership. He digs up the article and calls 225-5005, the number listed in the article.
The receptionist who answers the phone confirms he has reached the right number and immediately connects him with Tyrone, the Community and Minority Development Director in Commerce Lexington’s Economic Development organization. Tyrone listens to James’s idea, briefly reviews the services offered by the Partnership, and schedules a meeting with James. He suggests James review the material on www.thinkbluegrass.com before the meeting. Tyrone now assumes the role of case manager since he had the first contact.
At the first meeting, Tyrone brings in other client specialists from the Partnership. Shirie, a client specialist from the SBDC has strong financial planning skills that will be critical to developing an early look at the potential business. A client specialist from the Lexington ICC reviews the numerous potential funding sources ranging from state funding programs, to bank loans, to private equity. A UK student intern agrees to work with James on market research and “ball-parking” the potential business opportunity. James leaves the meeting with a list of specific items he needs to consider, a list of local attorneys and accountants that can help set up his business, and a schedule of training sessions that will help him better understand how to start developing a business plan.
Two months pass, and a follow-up team meeting is held. James now has a draft of his business plan and is ready to form the business. He applies for a $25,000 state grant that, if awarded, will provide him with enough seed funding to contract with a local software programmer to develop an early prototype of the system. He continues to meet on a regular basis with the Partnership team members to refine his business plan and develop measurable milestones to keep the project moving. James also learns about the Lexington Venture Club and begins to attend meetings as a way to network with other entrepreneurs, potential investors, and regional service providers. At this point, James is still working full-time in his day job, but his enthusiasm for his idea, the thought of running his own business, and the Partnership team that provides guidance and support keep him motivated and excited about the potential business opportunity.
A year later, James makes the big leap and quits his job, with the full support of his employer, to focus entirely on his new business. At this point he has taken advantage of several state and local funding programs, has raised a small amount of seed funding from the Bluegrass Angels, received a loan via the Access program and has found a local business partner who has successfully started an internet business before. James knows the importance of surrounding himself with partners that complement his strengths and are equally committed to the success of the business.
Some time later, James is contacted by the existing business team. At this point, the business is off to a fast start, but now he is anticipating rapid growth, expects to hire several more people, needs to relocate to a larger space, and is looking for further assistance. He taps the Lexington Partnership for Workforce Development to coordinate his training/hiring needs. He meets with Kim, his project manager, to gain a better understanding of the state and local jobs-based incentive programs. The team is yet again, there to assist.