2014 - institute for entrepreneurial...

T H E I N S T I T U T E F O RENTREPRENEURIALE X C E L L E N C E

2014ANNUALHIGHLIGHTS

THE

TO PROSPERPOWER

IEE_2014AnnualReport_horz_r12v1.indd 1 7/10/15 11:02 AM

2

EMPOWERINGENTREPRENEURS



3

Dear Members,

It is with both reflection of last year’s accomplishments and promise for an even more momentous year ahead that I proudly present to you the Institute for Entrepreneurial Excellence’s (IEE) 2014 annual report. With generous support from the foundation community and sponsors, our dedicated staff helped first-time entrepreneurs open new businesses, seasoned companies grow, and family-owned businesses manage the challenges of transition. Through our customized consulting, education and mentor programs, last year alone we helped businesses increase their bottom line by a whopping $14.5 million – illustrating just how hard our team has worked.

Last year was truly a banner year for our organization. We continued to strengthen our relationship within the University’s Innovation Institute, signifying efforts to increase partnerships university-wide so that our members have more resources, and so that our mission to effect regional economic development is fulfilled to the fullest extent. Already, this move has resulted in increased collaboration.

In September, we partnered with Senior Vice Chancellor, Dr. Kathy Humphrey and student affairs to launch a one-of-a-kind custom matching internship initiative. Our goal here is two-fold. First, we know that we have some of the world’s brightest students here at Pitt. We want to keep them here, and we

A Message from our Directorwant to see them succeed. By matching them with member companies who need a particular skillset, we will help more member companies grow while strengthening our regional workforce and economy.

As so many of our talented entrepreneurial members understand, being part of a network of innovative, helpful and caring staff members and peers is truly the key to growth. We want to expand this innovation not only to benefit the university student body, but to help grow more communities. Last year, we deepened our outreach into our region’s most challenged urban and Mon Valley neighborhoods. Through successful grant applications, we’re providing focused and increased consulting and education within these areas.

I’m honored, humbled and energized to be leading this remarkable organization. I may be biased, but I believe the IEE’s members and staff are the most talented entrepreneurs and consultants in the world. How we can support our clients even more and further ignite our region in the process couldn’t be a more exciting prospect to undertake.

With sincere gratitude as we continue our work,

Bob Stein, Director, Institute for Entrepreneurial Excellence

STARTUP GROWTH TRANSITION

We are Western Pennsylvania’s premier resource for entrepreneurs who are starting, growing, or transitioning a business. Through a customized approach of one-on-one consulting, exclusive educational series, and deep connections to the region’s largest association of entrepreneurs, the IEE helps the business leaders of today and tomorrow prosper.

About the Institute forEntrepreneurial Excellence

To be the innovative leader of economic renewal and growth serving enterprising people and businesses in the region.

Mission Statement

Launched by the Office of the Provost in 2013, the Innovation Institute is the University’s hub for activities that promote and foster innovation and entrepreneurship on campus and throughout the Pittsburgh region. The Innovation Institute brings together a collective brain trust composed of the Office of Technology Management (OTM), the Office of Enterprise Development, and the Institute for Entrepreneurial Excellence.

About the Innovation Institute


2014 A

NN

UA

L H

IGH

LIG

HT

S

4

2014 F

UNDING

SOURC

ESPathways of IEE Growth and Innovation

1993 1995 1999 2001 2008 2010

2013

} } } } } }Renewal of theSmall Business

Development Center

Creation of the Family Enterprise Center for family and closely-held

businesses

First class of the Entrepreneurial

Fellows Center for leaders of rapidly

growing businesses

Launch of innovation accelerator

PantherlabWorks

Urban Entrepreneurship

focuses on revitalizing the city

Transformation of IEE into membership

organization

Celebrated 20 years of regional economic

development

2013}Joined the newly created

Innovation Institute

2014}Ann Dugan retires, Bob Stein becomes

interim director

2015}Bob Steinnameddirector

2014}InternshipInitiativecreated

Donations

Sponsors

Consulting &EducationalProgramsUniversity

Support

Foundation Grants

StateFunds

Membership

Federal Funds

9% 8%2%

10%12%12%

17%

30%

$1,912,810 in FUNDINGAlong with former Vice Provost and Dean of Students Dr. Kathy Humphrey, Bob Stein launched a new, custom matching internship program that connects Pitt’s 18,000 undergraduate students with opportunities at the thousands of local businesses connected to the IEE.

“As part of Pitt’s Innovation Institute, we have the resources of the entire university at our fingertips and are doing more than ever to leverage our organization to benefit the university’s overall economic impact. At the IEE we have this amazing pool of innovative companies that can benefit from Pitt’s bright energetic student body, providing unique opportunities for the students to learn from some of the region’s most dynamic entrepreneurs.” – Stein

2014 Highlight


After years of working in telecommunications, real estate, and dabbling in entrepreneurship, Kimberly Carson and her husband decided they wanted to invest in a franchise that would not only provide retirement income, but fulfill their passion for people. Together, they landed upon the national franchise, Painting With a Twist. The franchise has become well known in the Pittsburgh market as a creative environment where adults of all ages paint and have fun alongside a bottle of wine. With a worthy savings to make an initial investment, their goal of opening the new venture required additional funding support.

That’s when Ms. Carson turned to the IEE. With the help of the IEE’s Small Business Development team, an effective business plan that included funding projections led to her receiving an $85,000 grant from Bridgeway Capital. Their East Hills franchise opened in October of 2014, and has been wildly successful. Parties and classes have them booked solid, and six employees later, they continue to paint their way to success.

Valerie Townsend’s 20-plus years of experience in the security industry began as a police officer in Pittsburgh before she moved on to Washington, D.C. to serve in the Department of Homeland Security. In addition to gaining valuable experience, Ms. Townsend earned various high-level security certifications. With the goal of returning home to be close to family, Ms. Townsend decided to utilize her security expertise to tie into Pittsburgh’s growing movie business.

Ms. Townsend turned to the IEE to help her develop a business and marketing plan and guide her toward a new financial model that would lower startup costs. As of third-quarter 2014, her specialized security business is up and running with necessary office space and vehicles.

“The IEE made the hard task of starting a new business seem so easy and I will be forever grateful. When providing financial documents to the loan center, I was advised that I had one of the most well-written business plans they had seen in years.” – Valerie Townsend

Local Woman Brings National Franchise to Pittsburgh MarketPainting With a Twist


$14MILLIONWE RAISED OVER

IN CAPITAL

IN 2014,

72WE HELPED

NEW BUSINESSESO P E N D O O R SFOR THE F IRST T IME

IN 2014,

2014 S

TAR

TU

P H

IGH

LIG

HT

S

5

Celebrity Security Company On its WayHeels Protection, LLC


Founded by Jeff Martin, Primrose Homes, Inc. has been designing and building custom residential homes in the greater Pittsburgh area for more than a decade. As they continue to experience rapid growth, the IEE has been alongside them every step of the way. General Manager Adam Stickle, also a graduate of the Entrepreneurial Fellows Program, collaborated with the IEE to develop a custom IT system that greatly streamlined business processes. As their partnership grew, the IEE helped Primrose identify and execute strategies to help them manage and sustain their growth.

Since the family-owned business’s partnership with the IEE began, they have doubled in size.

“We were growing so rapidly that we were losing sight of where we came from. The IEE helped us to develop a core set of values that focused on who we are and where we want to be. Our success is built on these core values, which are an integral part of every aspect of our business.” – Adam Stickle

6

Aero Tech Designs President Cathy Rogers has relied on the IEE’s peer forums and leadership development programs to grow her niche e-commerce retail business. The company manufactures performance enhancing cycling products to consumers via the Internet. Since becoming involved with the IEE, they have experienced a 25 percent annual growth rate. The IEE’s educational programming has helped guide the growing company on strategies to retain the best talent.

“Through our membership we attend all of the educational programs that we can, and have found the range of topics and relevancy to be critical in our business growth. Every hour we invest in the Institute programming is well worth it.” – Cathy Rogers

Building a Foundation for SuccessPrimrose Homes, Inc.

Pedaling More GrowthAero Tech Designs Cyclewear


2014 G

RO

WT

H H

IGH

LIG

HT

S

$14.5WE HELPED

BUSINESSES INCREASETHEIR BOTTOM LINE BY

MILLION

IN 2014,


2014 T

RA

NS

ITIO

N H

IGH

LIG

HT

S

7


With a desire to start a franchise in a growing city with low market penetration, Bill and Claire Meehan relocated from New England to Pittsburgh to open AlphaGraphics, a marketing and communications company. For the past 14-years the Meehans and their team have been helping companies build their brand and increase their ROI, all while experiencing annual double-digit growth for their franchise. Now approaching retirement, their daughter, Sarah, took an active interest in operating her parents’ successful business.

To facilitate a smooth transition, the Meehans reached out to the IEE and received support in the complicated transition process. Beyond governance and operational succession planning, Sarah participates in a peer forum with other next generation members of family businesses.

“Our family owes a lot to the IEE for providing us with the resources to continue to be successful during our succession planning process. As a result of their guidance, they turned what started out as a clumsy transition process into an invaluable growth experience for us all.” – Sarah Meehan

Increasing Their ReachAlphaGraphics

The Orchards at Foxcrest offers comfortable retirement living for a variety of lifestyles, including residential, assisted living, skilled nursing and rehabilitation. Located in Chester, WV, the business’s origins go back to Scott Fox’s grandfather, James Fox, who started the business in 1952.

With help from the IEE, Foxcrest has grown by leaps and bounds, during their leadership transitions. Nearly 20-years ago, Scott began working with the IEE on transition planning and growth strategies in an effort to formalize family governance. With their help, the company put in place an independent board to help guide the family business and develop a clear mission, vision and strategy for future growth.

Scott and other Foxcrest employees, such as Scott’s brother, Jim, continue to work closely with the IEE. They both completed the Entrepreneurial Fellows Class (EFC), allowing them to further hone their leadership skills and form invaluable relationships with fellow entrepreneurs.

This year, the IEE helped the growing company apply for and receive funding for another expansion. Additionally, a connection Scott made with an EFC fellow has resulted in a new partnership to create a world-class building at Foxcrest – right in line with their vision to bring a top-notch quality of life to their clients.

“I was bringing information back from each EFC session to our business. These were real-life strategies that we could easily implement.” – Scott Fox

Creating a Quality of Life for ResidentsOrchards at Foxcrest


8

Entrepreneurial Fellows CenterWhile some business advice is timeless, today’s entrepreneurial business leaders face numerous challenges. As businesses grow, more sophisticated management and leadership skillsets become necessary. The Entrepreneurial Fellows Center (EFC) offers a dynamic, applied MBA-type educational experience designed to meet the critical needs of today’s entrepreneurial leaders. Fellows benefit from custom designed programs and materials, a custom matched mentor selected from the local business community, and opportunities for peer advice and sharing while learning how to make their business continue to prosper.

“Our one-on-one peer groups and mentoring has not only helped entrepreneurs work though and solve some of their toughest growth challenges, but created lifelong friendships along the way. These personal, connection-building programs have truly set us apart.” – Bob Stein

The 2014 class included 34 entrepreneurs whose businesses represented a combined $3.8 billion in revenue.

2014 P

RO

GR

AM

SP

OT

LIG

HT

1,50042NEARLY

P R O G R A M S A N D S E M I N A R S E D U C AT E D M O R E T H A N

B U S I N E S S L E A D E R S ON EVERYTHING FROM SUCCESSION PLANNING TO FINANCIAL MANAGEMENT

AND LEADERSHIP DEVELOPMENT


2014 M

EN

TO

RIN

G P

RO

GR

AM

105M E M B E R SP A R T I C I P A T E DIN PEER FORUMS

IN 2014,

9

Leaders of multi-generational family-owned businesses continue to rely on the IEE for outside mentorship to take their businesses to the next level of growth. This was the case for Laura Snavely, third generation family member and director of administration for Snavely Forest Products. Through her participation in the Entrepreneurial Fellows Center program (EFC), Laura and her mentor crafted a game plan that would grow both her leadership skills and the business.

Founded in 1902, Snavely Forest Products is a recognized leader in the wholesale lumber and building products industry, providing superior building products to its worldwide customer base. Through the EFC program, Laura connected with a custom-matched mentor, Debi Butler, co-owner of Butler Gas. As a woman leader in her own multi-generational family-owned business, Debi understood Laura’s obstacles and opportunities.

Mentoring Provides a Human Connection that Matters

“As I have learned from my own family business, it is imperative to effectively separate the operation of the business from family matters. And, in order for Laura

to grow in the company, she would need to fully understand all of the operations outside of her direct supervision.” – Debi Butler

30S U C C E S S F U LBUSINESSL E A D E R SSERVED AS MENTORSTO GROWING BUSINESSES

IN 2014,

“I learned so much from Debi and the EFC instructors that I encouraged our company to become official IEE members. The relationships I formed have had a profound impact on me both professionally and personally. Through educational programs, peer forums and networking opportunities, the IEE is an invaluable resource for all generations of family business members.” – Laura Snavely


10

2014 P

RO

GR

AM

GR

OW

TH Urban Entrepreneurship Program

The IEE’s Urban & Community Entrepreneurship Program provides tailored consulting, education and mentor programs to urban business owners and emerging entrepreneurs. Until this program’s inception, lack of resources and training plagued the growth of many urban businesses. By igniting more entrepreneurship in low-income communities, the program focuses on stimulating economic revitalization and growth to create jobs and strengthen the city.

The program’s commitment to participants extends beyond program completion. Through monthly peer forums, business leaders meet in an environment of confidentiality in order to explore business challenges along with family and personal aspects of operating a business. Each participant is matched with a CEO from a similar business who serves as a mentor for an additional year. After graduating from the Urban Power to Prosper program, graduates continue to meet monthly with a consultant to review operational issues as well as oversee implementation of their strategic growth plan.

The IEE has monitored the emerging and existing entrepreneur’s growth and involvement:

100URBAN BUSINESSESACTIVELY WORKING with the IEE CONSULTANT TEAM

1,115CONSULTING HOURS DEVOTED TO URBAN BUSINESSES

325EMERGING & ACTIVE

ENTREPRENEURS COMPLETED EDUCATIONAL WORKSHOPS

Advancing Entrepreneurship in the Mon Valley RegionIn partnership with the University of Pittsburgh’s Center for Social and Urban Research, the IEE kicked off a dedicated outreach, education and consulting program to target the advancement of entrepreneurship in the Mon Valley Region. New, emerging and existing business owners are receiving individualized support to help them increase sales, expand their markets and create new jobs. With entrepreneurship as a foundation, the Mon Valley region will experience more vitality and growth.

In 2014 alone, the IEE held 10 educational programs benefiting over 100 participants. As a result, several residents are in the initial stages of starting a business. Randy Ford of Homestead, is in the strategic planning phases of opening a home healthcare business in the Mon Valley.

“When I heard about the program, I was somewhat apprehensive about exactly how valuable my participation would be. Once I began attending the workshops, I was extremely pleased with the level of professionalism and the hands-on help that was available. Without the help of the IEE staff and the Mon Valley Initiative, I doubt that I’d have the insight that I have today.” – Randy Ford


11

The IEE provides services for every business sector in Western Pennsylvania• Manufacturing and Engineering • Industrial Equipment • Real Estate and Construction • Professional Services • Innovation and Technology • Marketing and Design • Food Service and Hospitality

• Printing and Packaging • Transportation and Logistics• Retail and Apparel • Energy • Architecture and Design • Sports• Human Resources

Entrepreneurs are in Every CommunityA snapshot of the more than 900 businesses that were served in 2014

1. Bike the GAP – Squirrel Hill 2. Bradys Bend Underground Corp. – East Brady 3. Capterra Risk Solutions – Pittsburgh (downtown) 4. Diane Coury Design – New Castle 5. eatPGH – Bloomfield 6. FBC Chemical – Mars 7. H&K Equipment – Coraopolis 8. Jackson Consulting & Training - McKeesport 9. Logix Guru - Murrysville 10. Minteers Market – Claysville 11. MLP Steel Company – Scottdale 12. NFF Avionics Company – Aliquippa 13. Observer Reporter – Washington 14. Parker’s Restaurant – Dormont 15. Pittsburgh Juice Company – Lawrenceville 16. PRISM Response, Inc. – Export 17. Quality Life Services – Butler 18. Robinson Fans – Zelienople 19. Sarver Landscape – Wexford 20. Sloan Brothers Company – Freeport 21. Terri Berriez Sweet Boutique & Café - Rankin 22. The Locker Room – Waynesburg 23. Turner Dairy – Penn Hills 24. Universal Electric Corporation – Bridgeville 25. Viking Woodworking – South Side

ALLEGHENY

WASHINGTON

GREENEFAYETTE

WESTMORELAND

INDIANA

ARMSTRONG

BUTLER

LAWRENCE

BEAVER

19

5

10

13

22

24

7 3 115

2125

14

18

4

6

17

23

8

9

11

16

12

2

20

543WE GREW & IMPACTED JOBS

IN 2014,


2014-15 Advisory Board of Directors

Western Pennsylvania entrepreneurs and family-held/closely-held businesses have a resource they can depend upon today and tomorrow. We gratefully acknowledge those who make it all possible…

John Bitzer IIIPresident and CEO, ABARTA

Anita BrattinaCEO, AllFacilities, Inc.

Gregg BroujosManaging Director & Founding Principal,Colliers International

Dwayne J. BuckoSerial Entrepreneur

Ava DeMarcoPresident, Little Earth Productions

Denise DeSimoneChairman and Founder, C-leveled

John EarnestCEO, Team Laminates

Joan EllenbogenManaging Partner, CrawfordEllenbogen, LLC

Richard M. GuttmanPresident, Guttman Energy, Inc.

Gene HarrisPrincipal, Harris Consulting

David JardiniPresident, Black Diamond Investments LLC

Charles LenznerPresident, Lenzner Tour and Travel

David MartinBoard ChairPresident, Foster Holdings, Inc.

F. James McCarlPresident, The McCarl Group

Robert McIlroy IIPartner, Robroy Capital

Brett RandallBoard Chair (Effective July 1, 2015)President, The Gunian Group, LLC

Eric SauereisenPresident, Sauereisen

Dr. Dennis Patrick SlevinTom W. Olofson Chair in Entrepreneurial Studies, Joseph M. Katz Graduate School of Business

John H. TippinsManaging Director and Partner, Stonewood Capital Management, Inc.

Ex OfficioMarc S. Malandro, PhD – Founding Director, Innovation Institute and Vice Chancellor for Technology Management and Commercialization, University of Pittsburgh

Robert Stein – Director, The Institute for Entrepreneurial Excellence

Our SponsorsWe thank our dedicated sponsors whose generosity makes our workto empower entrepreneurs and impact communities possible.

Meyer, Unkovic and ScottUPSCowden AssociatesUPMCSisterson & Co., LLCSierra w/o WiresWilke & AssociatesCommunity BankHenderson BrothersMaiello Brungo & Maiello, LLPMarcus & Shapira, LLP

LEADING THE WAY

Special Thanks To

LEADING THE WAY

Special Thanks To


3520 Forbes Ave.Pittsburgh, PA 15261(Effective September 1, 2015)412.648.1544 (phone)412.648.1636 (fax)entrepreneur.pitt.edu

200 Gardner Steel Conference CenterThackeray & O’Hara StreetsPittsburgh, PA 15260innovation.pitt.edu


2014 - institute for entrepreneurial...

Documents