Entrepreneurship : Innovation + Job News

In the dystopian novel "Fahrenheit 451," Ray Bradbury describes a world where firefighters start blazes instead of ending them, burning books and libraries because reading is outlawed.
 
The novel was named for the temperature at which paper burns, and a local technology company has adopted the number for a much more positive outcome: helping businesses to go paperless.
 
CEO and co-founder Mark Johnson of Minneapolis-based Four51, says that the company isn't a typical startup, since it's been in business for 12 years and has seen continuous growth through some very tricky economic periods.
 
Four51's signature application, CommerceTools, launched in 1999 and provides a way for product distributors and suppliers to connect with their buyers. The software is used throughout the U.S., as well as in 40 countries.
 
A newer app, FanTools, lets customers create and publish promotional content. It's similar to the wildly popular Groupon, but unlike that service, merchants with FanTools don't have to pay service fees. The app guides a business owner through the process of marketing in the same way that Turbo Tax or Quicken help businesses navigate tax or financial data.
 
With the unveiling of its newest offering, the company expects to grow rapidly as a result. After a plateau during the recession, the firm hired nine people last year, and expects to bring on close to 20 new employees this year, adding to its current roster of 41.
 
"Our focus for this year will be on maintaining our growth rate," says Johnson. "We're confident that we'll see success with this new product, and we'll roll it out to other cities in the near future."
 
Source: Mark Johnson, Four51
Writer: Elizabeth Millard

The Web fosters the organic growth of small communities--quilters, for example, can swap insights in the forums of online quilting sites--but local startup Itizen brings these discussions to a whole new level.
 
With its new mobile app, currently in beta testing, users will be able to join groups that are focused on popular hobbies like bicycling, gardening, home decor, guitar playing, and others. Instead of scrolling through forums, users can interact more directly, creating an intimate community of like-minded hobbyists.
 
The company, helmed by Dori Graff and Mary Fallon, has been around for almost two years, and had a previous incarnation with a different mission. When it launched, the co-founders envisioned using QR codes to track the "lives" of physical objects.
 
"We were interested in storytelling, and learning about the life of an object as it changed hands," says Graff. "We got great press, but we just weren't getting the traction we needed for it to be a viable business model." The QR codes proved too cumbersome for users, who had to put tags on their objects, then scan the codes and enter content.
 
After ditching the QR codes, the co-founders looked more closely at their user base and found they were mainly hobbyists and enthusiasts. That realization led to the creation of a platform where they could connect with others who have similar interests. Most notably, users can share insights across a number of categories. So, a gardener who loves to cook can comment on both hobby areas.
 
"There are a lot of people doing forums and online groups, but they're on platforms that aren't built for that level of sharing," says Graff. "We started with mobile because we want them to be able to connect when they're out doing what they love. This is a touch point for people, a way of interacting in a new way."
 
Source: Dori Graff, Itizen
Writer: Elizabeth Millard

No matter what the industry, every business benefits from better information, stronger research, and savvy insight. Minneapolis-based Knowteria provides all three.
 
The company is helmed by Alisa Coddington, who earned a degree in library science, and then branched out into the realms of analysis and insight.
 
"By definition, I'm a librarian, that's my skill set," she says. "I've always loved research, though, and the investigative aspect of that. No matter how bland a topic might appear, it always becomes interesting the further I get into it. It's a good way to learn a little bit about many different subjects."
 
Coddington started the firm in 2009 and still works as a solo entrepreneur, but she draws on a large network of other information professionals, and benefits from robust collaboration.
 
Before starting Knowteria, she worked in an ad agency, and noticed that many smaller, specialized agencies began popping up on the scene. She anticipated that Knowteria would cater only to those agencies, but instead, she's found a broader client base than she expected.
 
Now, a client might be an investor who needs to get up to speed on a particular industry, or an entrepreneur who's refining a business pitch. Coddington provides customized information packages that she calls "value-added brainpower."
 
"This type of business research and intelligence is geared toward helping to win business and gain a competitive advantage," she says.
 
Although her research ranges across industries and topics, she's noticed a trend lately toward questions about emerging markets, from companies that want to expand internationally. Also, she's getting more requests about technology use, leading her to dig into statistics like iPhone usage.
 
Coddington currently does mainly secondary research--which means that she finds the studies, insights, and stats that others have published and compiles them into a cohesive whole--but she's hoping to begin doing some primary research as well. It's all part of being an information sleuth, she believes.
 
Source: Alisa Coddington, Knowteria
Writer: Elizabeth Millard

Although Minneapolis-based Pocket Hercules successfully represents numerous high-profile brands like Pearl Izumi, Gorilla Glue, and Rapala, the firm has taken its advertising, PR, and branding skills a bit further by developing a few products of its own.
 
The company puts out Lakemaid Beer and Tiny Footprint Coffee, and its marketing might is getting those products some high-profile attention.
 
"They're going gangbusters," says agency principal Jack Supple. "We feel like we're learning a great deal by launching our own brands, and that translates into what we do for clients. We know what they're going through with product development and distribution, and there's value to that."
 
Founded in 2005, the company has grown in the past year to 17 people, and recently expanded their offices in the Warehouse District, taking over a neighboring space. Lakemaid was launched in 2008, and a year later, the company expanded its reach into Michigan, Montana, and Nebraska.
 
In 2010, Pocket Hercules partnered with a local coffee roaster, Roastery 7, to create Tiny Footprint, which it describes as "the world's first carbon-negative coffee brand." When people buy the coffee, trees are planted in Ecuador that will offset the carbon impact of the coffee's production. Given its appeal of "good karma in every cup," the coffee is gaining in popularity, Supple says.
 
The experience of producing coffee and beer--two beverages that many people couldn't do without-- has made the agency stronger and more vibrant, Supple believes. "We have an entrepreneurial bent here," he says. "It's been fun to pursue and make real products, and back brands that we really care about."
 
Source: Jack Supple, Pocket Hercules
Writer: Elizabeth Millard

CityCamp Minnesota
 
January 11
4:00 pm
Republic at Seven Corners
221 Cedar Ave. S., Minneapolis
free, but reservations are suggested
 
Touting itself as an "unconference," CityCamp Minnesota held its first meeting in November, and now intends to kick off the new year with another networking opportunity. The theme of this quarterly meetup is "nonprofits" and the group will do brainstorming and presentations on the topic.
 
Low Cost/No Cost Methods to Get Found Online

Monday nights from January 16-February 20th
or full days on January 21st and January 28th
DemandQuest-Minneapolis Marketing Institute
2112 Broadway St. NE, Minneapolis
$299
 
This extensive workshop series teaches business owners how they can harness social media, blogs, and emails to develop a comprehensive online marketing plan. Available as a 6-week course or two full Saturday classes, the course covers online directories, inbound marketing, and social media tools like Facebook and Twitter.
 
High Impact Leadership

January 18
9:00 am - 4:00 pm
MAP for Nonprofits
2314 University Ave. W., Suite 28, Saint Paul
$75
 
Although this workshop is being held by MAP for Nonprofits, which serves the nonprofit sector, the leadership skills offered here would be applicable for any type of business. The workshop centers on emotional intelligence, and notes that increased self-awareness can help leaders to manage their own emotions and improve relationships with others.
 
Healthy Life Expo
 
January 21-22
Minneapolis Convention Center
1301 2nd Ave. S., Minneapolis
$6 or a non-perishable food item
 
Get the info and products necessary to fulfill those New Year resolutions. This popular conference brings together exhibitors and speakers, covering topics such as wellness, natural cooking, meditation, nutrition, and fitness. There are a number of free seminars and free health screenings.

For website developers, a "spider trap" is created when a site has so many changing links that it ranks high on search engines. But for the past few years, the term has garnered another definition: a fast-growing digital marketing firm.
 
"The name is a good representation of who we are," says Mike Rynchek, president and founder of Minneapolis-based Spyder Trap. "It's technical, sophisticated, and analytical, but also energetic and playful. We aim to be all of those qualities."
 
Rynchek started the company in 2008, after working on digital projects in a more traditional agency. He believes that his firm has a jump on agencies because of its laser focus on digital projects, especially as it moves more into mobile technology.
 
"I think a lot of agencies are still trying to figure out digital," he says. "We're at the point where we're optimizing the online side, and going heavily into mobile. And that will be a point of differentiation for us."
 
Spyder Trap certainly has a strong start, with considerable growth over the past year. The firm just hired its 23rd employee in December--at the end of 2010, there were only nine employees--and Rynchek anticipates steady hiring as more clients take advantage of Spyder's mobile insights.
 
"Social media has been the big buzz for the last couple years, but I believe that mobile is about the take over the conversation," he notes. "More and more people are trying to be smarter with their time, they're starting to disconnect in some ways. That will be key for us, as marketers, to understand."
 
For Spyder, that shift should lead to organic growth, and an even more attractive digital web for clients.
 
Source: Mike Rynchek, Spyder Trap
Writer: Elizabeth Millard

Imagine you run a yoga studio, or a plumbing shop, or a coworking space. How do you link up with other small businesses to build a network, do creative marketing partnerships, or just take advantage of bulk purchasing?
 
Michael Noble believes he's found the answer to that question, and it's called Nitch.
 
While working at the CoCo Minneapolis shared business space, Noble came up with idea of a website that connects small businesses to each other and to sponsors that cater to specific industries.
 
For example, a yoga mat manufacturer could get introduced to all of a city's studios by signing up with Nitch, or could create a private network of existing customers.
 
"Nitch is supposed to be about saving money, connecting with vendors, collaborating with industry peers," says Noble. "What we found in our initial research was that many small businesses spend the majority of their time trying to get new customers, and they're less adept at managing the back office. They don't have time to submit bids, or team up with others for purchasing."
 
The site's pilot industry was restaurants, and Nitch has about 100 on the site now. Noble expects that number to grow, and for other industries to start being represented, like bicycle retailers.
 
Although the site only launched in December, Noble feels that the unique mission and the lack of competitors should make for a strong start.
 
"We're excited to see where this can go," he says.
 
Source: Michael Noble, Nitch
Writer: Elizabeth Millard

In the past year, the economy didn't rebound with as much bounce as anyone would have liked, but a few fascinating things are happening on the way to recovery: the Twin Cities business community seems to be getting closer, more creative, and in some ways, more relaxed. The past year has seemed less like a slog and more like a fresh start.
 
In covering the innovation and jobs beat for The Line, I've spoken to dozens of entrepreneurs, some CEOs of large firms, and quite a few non-profit folks, and the trends are the same across every sector. The recession delivered a blow, certainly, but rather than going right back to business-as-usual, many companies here are seeing success through different measures. They brag about flex time for employees, community-based projects, and buying locally. It's as if the economic storms brought many enterprises under the same roof, and now they've learned that rather than survive independently, they're better off thriving together.

An Incubator Boomlet
 
For example, look toward the business incubator boomlet, and the wealth of services for entrepreneurs, like CoCo, WorkAround, MOJO Minnesota, the Economic Gardening Network, Homegrown Business Development Center, Minnesota High Tech Association, and so many others. The University of Minnesota, in particular, is a powerhouse of advice and skill building. Even the engineering school is teaching its students how to play well together in a business setting. 
 
This level of closeness to each other has created a business community that supports new endeavors so enthusiastically. Look at our recent feature on Kindred Kitchen, an effort in North Minneapolis that supports food entrepreneurs, for just one example, but there are many others. A sampling of companies that got their start this year include Sophia, DogWonderful, BuyerCurious, Pashen, and CRAM.
 
Through strategic hiring and expansion of services and products, many companies are showing a sense of starting anew, even if they've been around for years. For instance, just look at Bulk Reef Supply, an aquarium supplies service that has done such tremendous growth through increased product offerings that it landed on the Inc. 5000 list.

Companies Chillaxin'
 
Finally, there's the relaxation factor. Business can always be a bit of a meat grinder at times, but as companies learned to operate lean and get creative, they started to identify different measures of success, like happiness. As Chris Trifilio, co-founder of Primordial Soup noted, "We don't want to be a 50-person firm. We want to keep going down the path we're on, because it's fun and we love it." That's a sentiment that I heard often this year, leading me to believe that if a company didn't start fresh in terms of operations, then maybe they did in terms of attitude.
 
In the year ahead, I predict that these trends will keep rolling strong, because they contribute to the health of the business community, and make the Twin Cities a strong and vital area. Happy, satisfied entrepreneurs and business owners are creating a business climate that's sweeping away the economic clouds of the recent past with something awfully close to a sunny outlook.

Elizabeth Millard, Innovation and Jobs Editor

When looking for a plumber, electrician or other contractor, most people turn to their network of friends and family for recommendations. Now, they can supplement those efforts with one more powerful resource for finding a pro.
 
Referral Buzz, a Minneapolis-based startup, aims to connect contractors with homeowners and provide feedback and information from individuals in a homeowner's social network.
 
"There are some sites that have comments, but if I'm looking for a referral, I want it from someone I trust," says Referral Buzz co-founder and president Lisa Schneegans. "It's like going on Hotels.com and seeing the feedback there. People might be raving about a place, but if I don't know them, I don't trust it as much as a review from someone I know."
 
The idea for Referral Buzz was sparked when Schneegans and her partner, Klaus Schneegans, sold Praxis Software Solutions in 2006 and decided to renovate old houses as a new career path. Unfortunately, the housing market hadn't quite hit bottom, and the pair ended up losing quite a bit of money, but they came out of the experience with a new business idea.
 
"During that time, we worked with a lot of contractors, and consistently, they told us that they got business through referrals," she says. "But when we asked how they managed those, it turned out that they didn't have a systematic approach. So, we decided to use our technology backgrounds to create a referral-based system."
 
In addition to giving homeowners valuable feedback, Referral Buzz gives contractors a way to formalize their referral systems, which allows for better marketing.
 
Currently, the service has about 100 contractors, which is a strong start, considering the site has only been live for a short time. A notable addition has been Bachman's Landscaping, Schneegans says, which gives Referral Buzz a good boost of credibility.
 
"Like any entrepreneurs, we want everything to go faster," she says, with a laugh. "We want at least 1,000 Twin Cities contractors on the site by the end of next year."
 
Source: Lisa Schneegans, Referral Buzz
Writer: Elizabeth Millard

The traditional method for buying and selling real estate involves realtors, bankers, and appraisal experts, but rarely does it give those most connected to the process the ability to talk directly to each other. For many homebuyers, for example, the first time they ever meet a property's seller is at closing.
 
But now, the paradigm may shift, thanks to a new Minnesota startup, BuyerCurious, that connects buyers and sellers and allows them to negotiate with one another.
 
Put out by DealCurious, the service is in its very early stages, having launched only about a month ago. But already people are registering and there's tremendous potential, believes co-founder Jim Lesinski.
 
"We recognized that real estate is not progressing as fast in the e-commerce realm as other industries," he says. "There have been some strides by innovators like Zillow, and some companies in the valuation process, but not much has been done with respect to actual negotiation and transactions. It felt like there was a real void."
 
BuyerCurious aims to fill that gap with a simple-to-use site that allows buyers to make offers on properties or to contact a seller. Once an offer is made, the prospective seller can respond, and BuyerCurious assists by setting up a "deal room" where they continue negotiations until a binding purchase agreement is signed.
 
Like any software development project, BuyerCurious has run into its share of challenges, particularly because the site needs to be in compliance with real estate laws, but Lesinski says it's built to go nationwide. "We have a very robust platform that will allow us to be compliant in every area of the country," he says.
 
The company is still small right now—Lesinski notes that they've just hired their fourth employee—but it relies on an extensive network of service providers. The team is excited about the chance to create an electronic marketplace for real estate.
 
Just think: if BuyerCurious catches on, your next home purchase could be only a few clicks away.
 
Source: Jim Lesinski, BuyerCurious
Writer: Elizabeth Millard

As Internet-based marketing continues to boom, a newer field is growing along with it: online reputation management.
 
That's good news for companies like Minneapolis-based Internet Exposure, a web design and development firm that specializes in helping companies keep track of what's being said online, and advises them on ways to increase positive buzz.
 
The firm added two new people within the last month, and is likely to bring on more in the year ahead if demand continues as expected.
 
"In the last five years, the issue of a company's online reputation has come up more and more," says Internet Exposure CEO Jeff Hahn. "Almost every new business meeting I have covers social media, and although it's more important to certain clients, all of them need to address it in some way."
 
Companies of any size, particularly those run by multi-hat-wearing entrepreneurs, can find it daunting to build a good reputation online through sites like Facebook, Twitter, and Google Plus. They might have an executive blog or a business website, but often they struggle with how to create true influence through social media.
 
Internet Exposure assists them by using search tools to see what's being said about the business, and then helping executives to use social media more effectively to create a positive image. If a company has negative reviews or feedback online, the firm has tactics that can help to push the comments lower in search results, and also works to address the feedback directly.
 
Hahn expects to see more interest in the tactics in the future, and as a result, Internet Exposure should see more growth as well. He says, "The Internet is still a bit in the 'Wild West' phase. So, we're excited to help people make these online tools work for them, instead of against them."
 
Source: Jeff Hahn, Internet Exposure
Writer: Elizabeth Millard

In classrooms around the world, Sophia is proving to be a very popular and very smart girl.
 
The online education site went live last March and experienced an overwhelming response, with people logging on from nearly 70 countries in just the first two days.
 
Now, just seven months later, Sophia has grown from start-up to robust enterprise, expanding from six to 13 full-time employees, plus approximately 25 contractors and consultants. Founder and CEO Don Smithmier, whom we profiled in February, anticipates more hiring in the coming year, as Sophia ramps up even more.
 
"We're now executing a plan that we'd put forth at the beginning, the goal of bringing Sophia to the world," he says. "We're getting traction, and seeing growth as a result."
 
Sophia is a free social learning community, focused solely on education. The service brings together teachers and students from around the world. Utilizing "learning packets" that combine text, video, and graphics, teachers can create educational units that can be viewed by everyone, or just a select group of students.
 
Smithmier notes that the approach falls into a growing new category of academics called "social education," in which access to learning is increased. He says, "We're talking about flipping the student-to-teacher ratio. So, instead of 30 students for every teacher, what you'll have are 30 teachers for every student."
 
The strategy can be particularly effective, he adds, because people tend to "click" with some teachers but not others. Exposing students to so many teachers and different teaching styles keeps those relationships clicking.
 
As Sophia keeps expanding, in both employees and reach, Smithmier anticipates that the company will be doing more work on its learning programs and refining its offerings. "We want to make Sophia nationally known, and eventually globally known," he says, then laughs. "I guess we just want to be world famous."
 
Source: Don Smithmier, Sophia
Writer: Elizabeth Millard

CIO Panel
 
December 6
7:30--9:30 a.m.
Minnesota High Tech Association
Free for MHTA members, $85 for non-members
 
The annual CIO Panel at the MHTA is an educational forum aimed at addressing key technology issues, trends, and challenges that CIOs are facing. This year's panel includes Abdul Bengali of the Mayo Clinic, Joe Topinka of Red Wing Shoes, and Ranell Hamm of Patterson Companies.
 
 
LifeScience Alley Conference & Expo
 
December 7
Minneapolis Convention Center
From $70 - $525 depending on membership and different attendance options
 
Now in its 10th year, LifeScience Alley is a must-attend event for medical technology professionals from around the globe. Session topics cover finance, IT, sales and marketing, product development, research, and other issues.
 
 
Doing Business in Africa

December 7
Carlson School of Management
321 19th Ave. S., Minneapolis
Suite 2-206
Free
 
This panel discussion about education and workforce development is being put on by the Carlson Global Institute of the Carlson School of Management at the University of Minnesota, the Corporate Council on Africa, and Books for Africa. The panelists include Hussein Samatar of the African Development Center, Trevor Gunn of Medtronic, and Michelle Grogg of Cargill.
 
 
Kindred Kitchen Food Show and Buyers' Fair
 
December 15
6:30 p.m.
1200 W. Broadway, Minneapolis
Free
 
Participants in Kindred Kitchen's food business incubator program have the opportunity to meet industry professionals, food retail buyers, and the general public as they showcase their delicious creations. 

Quick: think about a still-sour economy, layoffs, lost clients, and financial difficulties.
 
Although those are the types of thoughts that many business leaders try to avoid, many entrepreneurs still focus on those negatives, and end up falling short of their potential, believes business consultant Laura Goodrich.
 
In her work with organizations over the past 17 years, Goodrich has developed a program, "Seeing Red Cars," that applies these principles of unconscious attraction. She named the program after an analogy, in which someone might not think about cars of a certain color until he or she buys a red car, and then, suddenly, begins to notice red cars everywhere. Changing one's focus and attitude about an enterprise can feel exactly like that, she notes.
 
"Seeing Red Cars is a transformation process, it's about being intentional and about the nature of change," says Goodrich. "When we talk about the unconscious focus that people have, we begin to see the outcome that they're seeking. If you have an unconscious pull toward negative outcomes, that's what you'll get."
 
Along with a business partner, Goodrich owns On Impact Productions, a content company that specializes in producing videos, coaching, and consulting. She's produced a full-length film that brings together all of her views on how executives can create a more positive environment for themselves and employees.
 
Goodrich is hoping that as her business grows, so will the reach of her message: that getting stuck in a rut is all too common, and that it takes a new perspective to climb out of that ditch.
 
"I've worked with executives who don't know they have an unconscious focus on the negative, and yet they're sucking the energy out of their employees," she says. "They're putting a pin in every balloon. At this moment, what we all need is dynamic change, and that's what I want to help provide."
 
Source: Laura Goodrich, Seeing Red Cars
Writer: Elizabeth Millard

In the crowded healthy-bar space--think Larabar, Clif Bar, Luna, and dozens of others--a new competitor has sprouted from local roots.
 
Pashen, created by siblings Wendy Sorquist, Pol Sorquist, and Lisa Wilson, aims to bring superfood-level nutrition into the marketplace, and give consumers a taste of delicious, raw, sprouted ingredients.
 
The small food company was started when Wilson, a health and wellness counselor, came up with a recipe for the bar while teaching raw food classes. The response was overwhelming, and the trio decided to see if they could make them on a commercial scale.
 
They rented space at Kindred Kitchen, a food incubator in North Minneapolis that's geared toward food entrepreneurs. Within a month, they'd figured out how to make the bars in a cost-effective, efficient way, and ended up selling some to Seward Co-op and Golden Fig, as well as four other locations.
 
The bars are unique because they incorporate sprouted ingredients that are easier to digest than other raw foods, says Wendy Sorquist. They use items like buckwheat and pumpkin seed and soak them so that key nutrients are maintained, she notes. That helps to promote good bacteria in the digestive system. It doesn't hurt that the bars are also very tasty, too.
 
The siblings decided on the phonetic spelling of "passion" as a name because of their enthusiasm about the venture, and they're still motivated for what they see ahead: larger sales opportunities, their own commercial kitchen, and eventually, national distribution and expanding the team.
 
"We're really excited to be spreading the word, and getting these out to stores," says Sorquist. "We want to branch into other categories, maybe do trail mixes, and more flavors. We don't think our product is a good fit for really big supermarkets, but with so many stores focusing on whole food and healthy options, we think we're a great fit for those, and that we have a great start."
 
Source: Wendy Sorquist, Pashen
Writer: Elizabeth Millard