8/13/2019 CED BusinessFirst SmallBusiness Insert

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Prepared

Focused Visionary

DecisiveTenacious

PassionateRisk-Taker

Creative

FlexibleResilient

So you want to run your ownbusiness, do you? Its no secretthat a vision, lots of hard workand dedication are involved.But if youre passionate,resilient and a bit tenacious,that dream youve had ofmaking it on your own cancome true.

Maybe your idea is still in the back-of-a-napkin concept stage. Ormaybe youve written a detailed businessplan. Or perhaps your company has been

operating for a while now but i s in need

of a change or boost. Whatever yoursituation, there are innumerable resources

available to help you take your business to

the next level. You dont have to take thisjourney alone.

In July 2013, the Kentucky Cabinet

for Economic Development created theOffice of Entrepreneurship to enhance the

states existing efforts to help businesses

at every step of the growth cycle. Tegoals of the office are to develop an

entrepreneurial climate for new talent inKentucky; provide guidance and support

to startup operations statewide; assist

existing small businesses with growthopportunities; and create a pipeline

of business activity that can be

streamlined with the traditionalgrowth opportunities the

Cabinet already offers to

encourage job creation andnew investment in the

Commonwealth.

Entrepreneurs andsmall businesses

play a vital role in Kentuckys economic

growth, so its important to nurturethem and make sure they have access

to the many resources available, said

Cabinet Secretary Larry Hayes. Wehave established the Office of

Entrepreneurship

as the lead agency to draw on the plethora

of resources available across the state andto expand the collaborative spirit among

various agencies.

Te office oversees the KentuckyInnovation Network, which

now includes 10

Innovation and Comme

Centers (ICCs) and two satelocated strategically throug

Commonwealth. Te office

Cabinets extensive resourcnew businesses, as well as i

high-tech companies, throu

initiatives, marketing and ssmall business advocacy an

resource referrals, along wi

of financial and incentive pencourage new investment

All services are provided fr

Small and young compaour economic health, not j

but across the United StateBy helping entrepreneurs

broadly, and by promoting

entrepreneurial activity stimprove Kentuckys comp

in the world and enhance j

the same time. Tis is a wiinvolved.

If youve been wanting t

path of entrepreneurial adhave been uncertain about

the ball rolling, let us help

through the process. We wthose Kentucky visionarie

want to accomplish someth

step up and say yes, I wantgrow my own company rig

Commonwealth.

Do you feel it? Tat butake your idea and

things? Lets m

together. Conof Entrepre

(800) 626

or visit wTinkK

Entre

ENTREPRENEUJOIN KENTUCKYS LARGEST BUSINESS SEC

BROUGHT TO YOU BY THE KENTUCKY CABINET FOR ECONOMIC DEVELOPMENT

becomean

Small businesses employed 696,652workers in 2010 wih mos of heemploymen coming from firms wih20-499 employees.

Small businesses significanly impacKenuckys economy. They represen96.7 percen of all employers.

As of 2010, Kenucky was home o339,703 small businesses.

4,740 companies expor frlocaions. Of hose, 80 pesmall and medium-sized

696,652 96.7% 339,703 4,740

Steps to Starting a BusinessHave a grea idea fora business, bu don knowwhere o sar? From planningand funding o markeing and finding he righ employees, he KenuckyCabine forEconomic Developmen is here o help you everysep of he way.

see page 3

Going GlobalKenuckyis on he cuting-edge of odays global economy.local companies are expanding overseas and your business Exporting is an important

component o business growth

When people think of Kentucky being

ranked number two in the nation, mostthink of basketball, not exports. However,

Kentucky is number two in the nation in

export growth for the first 10 months of2013, leaving people across the country

scratching their heads. How has Kentucky

been successful in increasing exports sodramatically? Te answer is simple; more

Kentucky companies are being exposed to

the virtues of exporting thanks to effortsfrom the Kentucky Export Initiative (KEI)

partners.

Created by Governor Steve Beshearin 2010, KEI brings together agencies

and organizations to help facilitate

international trade opportunities forKentucky businesses. Te KEI goal is

simple: increase Kentucky exports,

which will lead to new opportunities forbusinesses of all si zes and create diversified

markets for Kentucky products.Kentucky is projected to shatter its

export record this year by over $2 billion

with totals projected to eclipse $24 billion.Most people think only large companies

have the capacity to export, but actually

over 80 percent of the 4,700 Kentuckycompanies that do export are small and

medium-sized businesses.

Here are the stories of two smallKentucky companies that recently found

international success thanks to the efforts

of the Kentucky Export Initiative.

Whitaker Tools

For Charles Whitley, the decision to delay

retirement plans to run Whitaker ools wasa case of the third time being the charm. A

practicing minister, Whitley had started toprepare himself for a slower phase of life.

After twice declining a friends request to

get involved, Whitley recalls, He came backa third time, accompanied by a minister,

and that time I said yes. I figured this must

be the right plan for me.Based in Mannsville, Ky. in aylor

County, Whitaker ools was founded in

2008 by Whitaker, a veteran mechanicand engineer. Te business started with

a single tool designed by Whitaker to

improve the efficiency in working on Fords7.3 Powerstroke Diesel engines. Having

experienced the laborious process of taking

apart these engines by pulling each side ofthe 250-lb. engine heads off, he knew there

must be an easier way.

In all, he designed and engineered threeof the most efficient tools available for the

engines, enabling mechanics to save 80-85

percent in labor hours when working onfuel injector sleeves for the Ford truck.

Our primary objective is to take care ofour customers and anticipate their needs,

Whitley said. Weve developed each of our

tools just ahead of when it was needed. Ibelieve that this has helped us succeed.

Te other significant factor Whitley

credits for the business growth and successis the assistance received through the

Cabinet for Economic Development and the

KEI partners.In spring of 2013, I was referred to

someone at the World rade Center in

Lexington and ultimately learned how KEIcould help our small business export our

products, said Whitley.

Whitaker ools was one of the 19 smallcompanies that participated in the KEI

rade Mission to Canada in 2013 to begin

building a network of people to help market

the Powerstroke tools there.As a result of this trip, we now have one

major distributor in Canada and anotherpossible distributor. Were developing new

tools for the big truck industry, based on

the technology of the Powerstroke tools,Whitley said. Tanks to KEI, were starting

to get recognized. Each year has gotten

better and we are looking ahead to a brightfuture.

Stardust Cruisers

Teres a popular saying that Te

best predictor of future behavior is pastbehavior. While this maxim applies well to

human behavior, it may oversimplify the

explanation for business success. Considerthe non-linear path of Stardust Cruisers, a

custom boat builder based in Monticello,Ky. in Wayne County.

As the oldest continually operatinghouseboat company in the industry,Stardust has always prided itself on

superior engineering and craftsmanship.

Te companys position as an i ndustryleaderwith products resembling super

yachts rather than typical houseboatsis a

result of experience, design innovation andattention to detail.

Stardust enjoyed success from its

inception, selling awe-inspiring products towealthy people all over the world, though

no one predicted the economic tidal wave

that washed over the region in 2008 andnearly drowned this leading boat builder

and an entire industry.

Following the financial crisis andeconomic downturn, the boat builder

went from 70 employees to 15 and the

Lake Cumberland areas houseboatmanufacturers were reduced from about a

dozen to four.

Fortunately, with s ome quickassistance from the Cabinet for Economic

Development and KEI partners, the tidebegan to turn. Te assistance helped

Stardust Cruisers travel to Dubai, where

luxury houseboats are in hig h demand.

Stardust Cruisers Chairman Bruce

Chesnut credits the Kentucky ExportInitiative as being instrumental in reviving

the industry. Te trip to Dubai allowed

us to make valuable contacts and set up adistributor list that has resulted in more

than $3 million in boat sales, he said.

With more than 50 employees and2013 sales figures predicted to surpass

$6 million (triple the sales figures from

2009), Chesnut is prepared for thebusiness to set sail into steadier waters.

Tis is an example of how the

government can make a difference in thefuture livelihood of folks here, he said.

Interested in taking your business overseas?

Top, CharlesWhitley, president of Whitaker Tools,attendsa TradeMission to Canada hostedby theKentucky Export Initiativeand partners. Below,

Stardust Cruisersunveilsanother beautifullyrenovatedhouseboat about to set sailfor Dubai.

Old Capitol Annex

300 West Broadway

Frankfort, KY 40601

ph. (502) 564-7140

(800) 626-2930

ThinkKentucky.com

econdev@ky.gov /ThinkKentucky

For more informaion on small business resources and companies feaured in his publicaion, visi ThinkKentucky.com/Entrepreneurship

Small Business Micro-lenders

Kentucky Innovation Network Ofces

Small Business Development Centers

Small Business Association Ofces

SCORE Centers

Small Business PartnersAround the Bluegrass

8/13/2019 CED BusinessFirst SmallBusiness Insert

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Many financing options forKentuckys Small Businesses

Small businesses employ nearly700,000 Kentucky workers. According tothe Small Business Associations (SBA)Small BusinessProfile for Kentucky,the Commonwealths339,703 smallbusinesses represent96.7 percent of allemployers, and theyemploy 47.8 percentof the private-sectorlabor force.

o combat higher

unemploymentrates, it continuesto be imperativethat small businessowners have accessto the capital

they need to growtheir businessesand increaseemployment.

Since the height ofthe Great Recessionin 2010, SBA hasexperienced someof the highestloan volume everin Kentucky. SBAlending in Kentuckycovers many pricepoints for manydifferent kinds of entrepreneurs. Loanscan range from $500 to $5.5 million, andthe loan proceeds can be used for realestate purchases, business acquisition,

inventory, equipment, operating capitaland much more.

Tere are many options available forKentucky entrepreneurs. Financing is

offered by banks, credit unions, micro-lenders and Certified DevelopmentCompanies. Both SBA and USDA work

with lenders tostimulate morelending by offeringloan guarantees.High-tech firmscould be eligible

for Small BusinessInnovation Research(SBIR) grants tosupport high-tech research and

development whileinvestment financingfor high-tech start-ups is also availablefrom venturecapital firms, angelinvestors and evencrowd funding.

Anotherinnovative financingoption that worksin partnershipwith lenders isthe KentuckySmall BusinessCredit Initiative.Te initiative,made possible bya $15.4 millionallocation from U.S.

reasury, consists of three unique creditenhancement options that lenders can

use to strengthen loan requests thatare credit-worthy in nature but fall

just outside acceptable underwritingstandards. Te credit initiative bridgesthe gap, making it possible for lenders tofinance more small businesses.

Smart business people know theymust be willing to go in new directions

sometimes abruptly to adjust to changesin the marketplace or new opportunities.A photography lab that turns to languagetranslation might sound odd, as does a

satellite dish manufacturer that startscooking up backyard grills and accessories until you understand the mind of an

entrepreneur.

Kinetic the Technology Agency

With a camera in hand and a passion fordigital imaging, Ray Schuhmann foundedKinetic four decades ago, poised for thekind of unpredictable journey that tends toaccompany an entrepreneurial spirit. While

Schumanns innovative energy has beensteadfast since day one, the expression ofthis to the Louisville companys clients haschanged dramatically over time.

Te company, which serves as the official

archivist for the Kentucky Derby, rankedamong the op 5 information technologyservice firms in a 2013 Business First listand was a 2013 recipient of the prestigiousMartha Layne Collins Award from theWorld rade Center Kentucky.

What started as a laboratory for filmprocessing and a commercial studio, andevolved to provide cloud computing anddigital and marketing asset management,has expanded recently to include aspecialized software system for language

translation management. Te two-year-old globalization platform, called SaaSor software as a service, provides acentralized system for capturing translationmemory or language pairs for customers

in 40 different nations, saving companies

worldwide millions of dollars.Senior Globalization Executive Scott

Carothers sees the work Kinetic has doneat an enterprise level for the past decade asa service that the marketplace needed. Inan environment where translation services

are considered a commodity, we appliedinnovation, he said. Our clients benefitfrom having their intellectual propertyin a centralized place, from being able tofully reuse their content and from having a

process for holding vendors accountable fortheir performance.Te Cabinet for Economic Development

has been instrumental in the introductionof this software model to key customersabroad. After seeing Kinetics growthrate, the Cabinet awarded a $7,500 SEPgrant to the company in 2012, enablingits participation in a key trade show inGermany. One year later, the SEP grantwas reissued and Kinetic recently returnedfrom its second trade show.

Te trade show has paved the way forgaining representation in Europe, securingadditional contracts and enhancing ourname recognition and credibility, Carotherssaid. He added that the Cabinet has beenabsolutely phenomenal in its support. Itwas an unbelievable discovery that the statewould support companies in this way.

Oscarware

Debra Dudley and her late husband, Reg,

founded Oscarware in 1989 as a satellite

dish manufacturing company. An overnight

shift in the business, caused by thescrambling of satellite signals, nearly drove

them out of business in the early days.Like many entrepreneurs, the resilient

couple chose to diversify in order to stay in

business. Barbecue cookware became thecompanys new focus. Oscarware is now

recognized as the inventor and worlds

largest domestic manufacturer of outdoorgrill toppers.

We are Kentuckys best-kept secret as so

many local residents and businesses dontknow who we are or what we do. We are a

homegrown business with products that are

known internationally, said Debra Dudley.

Located in Bonnieville, Ky., Oscarwares64,000-square-foot factory houses the

manufacturing, product development,sales, marketing and shipping operation for

17 different products, including disposable

outdoor toppers, porcelain-coated gourmetgrill topper, woks, griddles, park-style

backyard grills, pizza on-the-grill toppers

and the rail Blazer outdoor portablecamp fire ring. Oscarware products are sold

at Walmart and many other retailers.Oscarware joined an elite group

of Kentucky businesses when it was

recognized as a 2008 Pacesetter at theKentucky Celebrates Small Businesses

event in Frankfort. Te Pacesetter Business

Recognition Program is an initiative thatacknowledges high performing second-

stage businesses that are changing the

economic landscape of Kentucky.In 2008, the Kentucky Cabinet for

Economic Development financed cash

flow needs, allowing us to expand productdistribution to 10,000 Dollar General

Stores, Dudley said. Ten, in 2013 theCabinet worked with us to purchasethe equipment and tooling needed to

manufacture two new products. Since 2008,

our sales have grown 40 percent and we

now have 30 full-time employees.Dudley credits Oscarwares success to

the hard work that she and her employees

have invested and the outside support fromthe Cabinet for Economic Development

and its partners. Te resources provided

to us through the Kentucky Small BusinessDevelopment Center and the Cabinets

direct loan we received have helped us not

only survive, but thrive, she said.

Kentucky entrepreneurs reinventthemselves in the ace o change

START A BUSINESS

BLUEGRASS

IN THE

LOCATE A MENTOR

RESEARCH YO

DISCOVER F

LEGAL STR

OPERATIONAL AW

MARKETING ST

EXPLORE LOCATION

KNOW YOUR MARKET

FIND GREAT PEOPLE

REFLECT AND PERFECT

Makesuretheres a market

product/serviceyoureselling

capitalwill youneed to s

generalbusinessplant

Most new businessesstart withfriendsandfamily. Bootstrappingin bus

startinga businesswithout externalhelp or capital.Businessesfundthe d

of their company throughinternal cashow andare cautiouswith their exp

sources: angelinvestors,venture capitalrms, banks,crowd-fundingand

Withthe variety of waysto structureyour busine

whichis best for you.Consult anattorney re

proprietorship,partnership,cooperation,S c

Liability Company (LLC),non-prot or

Determinelocationneeds, obtainneces

andlicenses,explore businessinsur

andexamineperso

Determinepathto market, launchcom

strategy andexecutea sales strategy.E

buildon strategic partnerships. Utilizes

A mentor or businessadvisor ishighly recommended.

A mentor givesbusinessadviceand guidance; state-

sponsoredorganizations, tradegroupsand personal

networksarevenues inwhich to identify a mentor.

Whether your businessisonline or brick-and-mortar,

locationis key.Do youneeddelivery space,a lobby,

ocespace or pedestriantrac for your business?

Analyzeyour market.Who are your customers? Understand

trendsandforecasts withinyour market.Identify your

competitionandassessstrengthsand weaknessfor both

your businessandyour competitors.

Interview andhire employees,establish

independent contractor agreements,

seekhelp ndinga quality workforceand

educationandtrainingfor employees.

Identify what isworkingby monitoringnancial

performance.Correct your trajectory by making

adjustmentsand planningfor growth.Lastly,

seekhelp whenneeded.

FERM SOLUTIONS GUN MEDIA HOLDINGS FLAVORCRAFT, LLC HIGHLANDS DIVERSIFIED SERVICES, INC.

Theres always something brewing at Ferm Solutions

Shane Baker and Dr. Patrick Heistgot toknow each other while

attendingcollege and playingin a rock band together. When they

graduated from the Universityof Kentucky, theywent on totheirrespectivecareers Baker as a businessexecutivein engineeringand

Heistas a microbiologyprofessor.

Asth eyears passed, they reconnected, and in 2006, decided toapplytheir combined scientific expertise toward a new endeavor, Ferm

SolutionsInc. TeDanvillecompany providesresearch, productdevelopment, engineering, manufacturingand technical servicesto thefuel and potableeth anol industries. Annual revenueisa pproaching$10

million. Tecompanynow makes its own whiskey, rum and vodka.

Gun shoots to the top, thanks to solid advice, investments

Oncea n in-demand consultanton video-games, mobileapps and

marketingtechniques toreach theyouthful demographic that grew upon

computersand portable devices, WesKeltner now runsGun, a video-gamedesign and publishingcompany based in Lexington.

Tecompanys firstrelease, themilitary-themed Breach & Clear, hasproven tobea big hit. Breach &Clear launched on iPhoneand iPad July17and quicklyshotup thechartstobecomethe #2mostpopular appin

theAppStore. Itsettled in the top10gamesthroughoutJuly. A monthlater Gun Media Holdingslaunched B&Con Android devices, and itwasselected as theIGN gameof themonth for October.

Businessman rom the real South supplies ood, drink

to global market

Basedin Louisville,thecompanyhe wasinterestedin wasalreadycalled

SouthernDreamFoods,but JohanVenterhas grownitssouthern rootsevenfurther.Hailingfrom whathe jokinglycallsthe realsouth,the SouthAfricannativebought theassets, partialinventoryand customerbaseof

SouthernDreamFoods tocreate theall-new Flavorcraft,LLCin 2006.

Tecompanyhasmanagedtonearlytripleitssalesinthattime,closing

inon $2.3millionthis year.Te contractfoodand beveragemanufacturerproducessauces,syrups,teas andenergy drinksforbrands rangingfrommultinationalnamebrandsto obscurestartups.Te companyalsobottles

Pureapwater forthe LouisvilleWaterCo.

Diversified is London companys middle name

HighlandsDiversifiedServices,Inc. startedout in1994 providing

contractmetalstamping. Withan eyeto thefuture, Highlandsreinvented

themselvesandtheir businessfromone thatmade bracketsfortheautomotiveindustryintoa facilitythat providesproductsusedin

aerospace,telecommunications,homelandsecurity,wirelesstechnologies,military,alland utilityterrainvehicles, lawn& gardenequipmentsectorsinadditionto automotive.In oneof thosesectorsthe London,Ky.-based

companycurrentlymakesover threemillionsatellite dishesa yearfor70percentofthe marketshare.

HighlandsDiversifiedServices hasgrown to260 employees,about80

morethantwoyearsago,andcontinuestopursuenewopportunitiesintountappedbusiness segments.

erm-solutions.net breachandclear.com/gun/ flavorcrafllc.com hds-usa.com

For more information on Ferm Solutions,

visit www.ThinkKentucky.com/Entrepreneurship

For more information on Gun Media Holdings,

visit www.ThinkKentucky.com/Entrepreneurship

For more information on Flavorcraft, LLC,

visit www.ThinkKentucky.com/Entrepreneurship

For more information on Highlands Diversied Services, Inc.,

visit www.ThinkKentucky.com/Entrepreneurship

Top,Ray Schuhmann, president andCEO of Kinetic Corp,

hasexpandedhiscompanysreachto includeprovidingintegratedmarketing communicationsplatform forlanguagetranslation management. Below, Oscarware, a former satellitedish manufacturer,now producesa

widerange of barbecue cookwareavailableat majorretailoutlets.

Looking or moreinormation?

Find small business loan

programs, including

specific loan programs,

interest rates, lenders

and partners in Kentucky

at these websites:

www.sba.gov/ky

www.rurdev.usda.gov/rbs/busp/b&i_gar.htm

www.thinkkentucky.com/smallbizlending