New Business Taking Root in Detroit

Story first appeared in The Detroit News.
They didn't come because of major tax breaks. They aren't looking to move even as city leaders attempt to stave off bankruptcy. Many entrepreneurs have staked their ground in Detroit because they see business opportunities and social needs.

There are countless examples that showcase Detroit's real spirit. There is a spirit of urban innovation that's advancing economic opportunity, quality of life and civic engagement across Detroit. A Dearborn Business Lawyer states that the number of new start-ups needing guidance has really jumped recently.

Here are four examples of companies that are enthused about Detroit, and hope to capitalize on its emerging trends and unmet needs. 

Detroit Bikes

A Calgary native who first visited Detroit two years ago, has now setup shop and feels more welcome in Detroit than he has anywhere else.

This year, the Canadian started Detroit Bikes, his vision to create an accessible, well-built three-speed commuter bike for the masses. The 31-year-old loves the fact that his small production crew of four is working on the prototype in the carriage house of his Boston Edison home. Henry Ford once lived in the Boston Edison neighborhood.  His goal is to create affordable, reliable transportation.

He eventually he wants to build 100 bikes a day.

If he ends up buying a building in Detroit, he could end up investing up to $400,000 to get Detroit Bikes in motion. He believes the market is there: A 2012 report by the Alliance for Biking & Walking found the number of bicycle commuters in Detroit rose 258 percent over the past two decades.  The Canadian says that it is very important to him that he be able to hire Detroit workers. Many people have inspired and encouraged him during the business startup.

En Garde! Detroit and Sword Dreams

A 28-year-old Jamaican immigrant has been fencing almost half his life, and founded a social entrepreneurial company dedicated to fencing, called En Garde! Detroit three years ago.

His prowess led to an athletic scholarship to join Wayne State University's world-class fencing team.

He wants to offer that kind of opportunity to inner-city youths by teaching about his sport. He loves to tell students that fencing originated in Egypt, and it sharpens the mind as much as the body. There are too many public schools with no arts program, no cultural programs. Fencing can offer them something they can feel, touch, breathe — be totally connected to.

Last year, his programs reached more than 1,000 students.

This year, he started the nonprofit Sword Dreams, whose goal is to buy fencing equipment for students. He also opened a studio on the edge of Corktown to offer free classes.

On Thursday, he will deliver the keynote speech at the 2012 Governor's Fitness Awards at Ford Field.

Detroit Farm and Garden

The store opened April 2 in what used to be the parking garage and lot of a former Detroit Police precinct in southwest Detroit.

Detroit Farm and Garden's goal is to provide high-quality gardening, farming and landscape resources to Detroit. Nearly everything in the store is organic, and much of it is locally made.

Already, there has been a run on 50-pound bags of chicken feed, Klein said. And at the request of several customers, the store now carries pig feed. The bales of hay and straw are selling pretty well, too.

There were 1,351 vegetable gardens in Detroit, Highland Park and Hamtramck in 2011, according to the coalition groupcalled the Garden Resource Program Collaborative. That includes 800 family gardens, 300 community gardens, 60 school gardens and 40 market gardens.

The owners of the business feel that they are really servicing a local need.

Pluto

Pluto, a Birmingham-based "creative content" firm is setting up an office in a warehouse on the southwestern edge of downtown Detroit. Pluto plans to create 10 jobs from the get-go, and aims to become a hub for visiting New York and Los Angeles-based advertising and marketing professionals. Pluto was inspired by the decisions of Compuware Corp., Quicken Loans Inc. and General Motors Co. to relocate as many employees downtown as possible.

GM has tried to convince its new marketing partners to commit to Detroit. New ad agency Commonwealth — a 50/50 partnership between Chevrolet's U.S. agency, San Francisco-based Goodby Silverstein & Partners and New York-based McCann Erickson Worldwide — is bringing 280 jobs into the city. Social media company Twitter and at least two public relations firms also are setting up shop in the city.

Pluto specializes in broadcast and online marketing. Its workers include motion designers, Web designers, computer graphic artists and sound designers.

Next month, the company plans to open a 5,000-square-foot space in a West Fort Street warehouse.

Pluto has converted it into a sleek, playful area with state of-the-art editing, Web-serving programs and design facilities.


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Start-Ups Pitch Plans to Panel at NextWave

The Detroit Free Press

Groups aim to set course for new state economy 

 

Henry Ford's entrepreneurial spirit is alive and well in southeast Michigan.

On Tuesday, a group of Michiganders pitched their business plans to a panel of judges, hoping their start-up companies would be chosen for a spot at NextWave, a new for-profit business incubator in Troy that plans to invest in and help fledgling firms grow.

These would-be entrepreneurs have dreamed up everything from a vertical stacking garage door with storage racks to a new mobile communications app for doctors. All came to NextWave needing help with everything from marketing and mentoring to money.

It's unlikely that all eight start-ups will succeed, but together they signal that a new Michigan economy, one that's less dependent on making cars, is slowly gaining traction in the midst of the recession.

"Michigan is a very talented place," said Amjad Hussain, managing partner and founder of NextWave, which hopes to invest in at least 30 companies by launching a $25-million venture capital fund.

The eight start-ups, who were chosen from a pool of 20 applicants, will have to wait until next week to find out whether any or all of them will be selected for NextWave.

On Tuesday, these entrepreneurs took turns standing at the front of a small auditorium in NextWave's Troy office building. Each had 20 minutes to wow the judges with a business plan and answer questions in something that resembled American Idol minus the singing.

"At this stage in my life, I'm ready to follow my own passions," entrepreneur Thomas Talboys told the judges during his presentation. The pitch session even included two guest judges, Kathleen Ligocki, an auto industry executive, and Rich Sloan, co-founder of StartupNation.

Here's a brief rundown of some of the business plans being hatched:

• Store-n-Door: Talboys wants to reinvent the lowly garage door and give homeowners another place to store their stuff. His vertical stacking garage door is less expensive, quieter and 40% faster than what's found in most homes today. The doors also free up space for storage racks that can hang underneath garage ceilings.

• Build-A-Wear: Lisa McAree and her brother, Ken Ericson, want to make it easy for every young girl to be a fashion designer. They aim to sell pre-designed clothes patterns for tween girls that can be mixed and matched according to individual tastes. Think Build-A-Bear Workshop, except this involves clothes for real people. The duo plans to operate online first and then add retail stores.

• HosComm Systems: If Adil Akhtar, the chief of oncology at Beaumont Hospital in Troy, and Muhammad Ahmed, an Eastern Michigan University engineering professor, get their way, pagers will become a thing of the past at hospitals. They have created an app for smartphones that will give doctors, nurses and other health care professionals a better way to communicate, reducing medical errors and cutting costs. The system is to be tested in October at Beaumont.

• WealthExpress Trading Systems: Futures traders Tony Castiglione and Matt Dahn have devised an automated futures trading platform to help consumers and hedge funds boost their investment returns.

• IP Tech Works: Jason Pak and Jim English say today's patent searches can be done better, faster and cheaper. They hope to revolutionize the patent-search industry by deploying a new software program, low-cost patent researchers in India and Pakistan and a network of courier firms.