2013 Focus on Business

2 • Sunday, August 4, 2013 • Focus On Business Focus On Business • Sunday, August 4, 2013 • 3

INSIDEMovers, shakers & fresh new ideas

5 Airborne Media Group Soars: Big success with mobile marketing application Audioair

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Freenotes Harmony Park: Maker of musical instruments strikes a chord

Warm Support for Incubation: Q&A with Jasper Welch on the NBIA

On The Cover Airborne Media Group executives meet at El Rancho Tavern in Durango to demonstrate their Audioair technology, from left: Chip Lile, co-founder and executive vice president; Marcia Baxter, chief business development and intellectual property officer; and Cordell Brown, co-founder and chief executive officer. See Page 5 for the story.

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In with the Innovators:

Locals add spark of creativity

Start Me Up: Small Business

Center offers resources

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Evergreen Education: Advisors help schools with online learning

The Value of COIN: Locals support state effort to build partnerships

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At a Glance: Charts and

graphics show key economic

indicators

On the Rebound: Alliance reports

positive local trends

Accelerator Plan: SCAPE provides

fast-forward growth

Publisher Richard Ballantine

General Manager Ken Amundson

V.P. of Advertising Paul C. Hay

Director of Sales & Marketing Mark Drudge

Special Sections Manager Ralph Maccarone

Editor/Designer

Karla Sluis

Assistant Editor

Rachel Segura

Photographer

Lindsay Abshagen

Advertising Sales

Cora Younie

Darryl Hunt

Karolann Latimer

Shawna Long

Teressa Fenn

Advertising

Design/Prepress

Hanah Noland

Jennifer Dickens

Laney Longwell

Linda McDarby

Michelle Martin

Olivia Dombach

The Durango Herald uses reasonable effort to include accurate and up-to-date information for its magazine publications. However, all general information comes from a variety of sources and may change at any time for any reason. To verify specific information, refer to the organization or business noted. To see the online version of this guide, click the link at: www.durangoherald.com.

Two of the local businesses profiled in this publication, Airborne Media Group and Freenotes Harmony Park, received the prestigious Colorado Companies to Watch Award for 2013. The five-year-old program was developed and is funded in part by the Edward Lowe Foundation. Nominees must be Colorado-based companies with six to 99 full-time employees that have $750,000 to $50 million in sales or access to capital. The Colorado Companies to Watch program recognizes 50 growth companies every year, and Southwest Colorado has had the most winners from any rural region in the state. Since the program began in 2009, Southwest Colorado has seen 12 companies recognized.

Colorado Companies to Watch

What is innovation? It’s interesting to note on the pages that follow that no one defines it exactly the same way. It’s the flash of insight. The new product on the market. The impact of reaching a wide audience. Or it’s all of these things together under the simple marketing phrase “New & Improved.”

FLOATINGIDEAS...

By Rachel SeguraFocus On Business Assistant Editor

Airborne Media Group, creators of the mobile marketing application Audioair, has stumbled

upon a gold mine. By manufactur-ing a product that not only solves one problem but dozens, AMG has skyrocketed into the limelight.

Audioair is a clever, simple concept: Turn those muted tele-vision sets in your favorite sports bars, health clubs or casinos into interactive agents. The product is

in over 60 locations nationally in Florida, Texas, Alabama, Califor-nia, and Colorado, where they got their start.

“I think we are a poster child of the business community in La Plata County,” said AMG CEO Cordell Brown. “There are so many bright people here – inves-tors who are willing to take risks and institutions that will take a chance. I think we are a cheer-leader for the Durango business community, especially in tech-nology.”

The idea was extracted here in Durango from the mega-minds of Ryan Danford and Justin Ginn, who managed and bartended at Olde Tymers Café, a local sports bar and restaurant.

“It was a needs-driven thing,” said Brown. “They identified a problem for all. There is rich con-tent of sports events in these types of venues – and no one can hear it.”

The two men took their idea

soarsAirborneMedia Group

Local business startup sees big success with mobile marketing application Audioair

Innovation is bringing about useful change with high technology. In our case, it’s disruptive change that makes a real difference.

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LINDSAY ABSHAGEN/HeraldAirborne Media Group co-founders Chip Lile, executive vice-president, and CEO Cordell Brown display Audioair TV screens at El Rancho Tavern in Durango on July 3.

Focus On Business • Sunday, August 4, 2013 • 5

Story continues on Page 7

4 • Sunday, August 4, 2013 • Focus On Business


Airborne Media Group is the creator of Audioair, the

ground-breaking technology and mobile app that enables

users to selectively listen to muted television displays in private and public environ-

ments using their mobile devices. In Durango, there are several locations to try out the

technology. Download the Audioair app for free and plug

in your headphones at the following local businesses:

Carver Brewing Company, Cuckoo’s Chicken House and

Waterin’ Hole, Desperados Bar and Grill, El Rancho Tavern,

Fort Lewis College health center, The Irish Embassy Pub

and Underground, Olde Tymer’s Café, Sky Ute Casino Resort,

and Sporting News Grill.www.airbornemediagroup.com.

Airborne Media Group

TRY OUT THE TECHNOLOGY

and ran with it, hatching a dem-onstration plan to Brown and El Rancho Tavern owner Chip Lile. Together, the four heads hatched a plan to further explore the busi-ness of importing muted content into the customers’ hands.

In March of 2011, AMG Inc. was born and quickly went to work fine-tuning the conceptual designs for Audioair. Engineer-ing, demos and patent ideas were thrown around, and Audio-air was used in El Rancho Tav-ern as the crash test site.

Both the hardware and soft-ware for Audioair is put forth by Durango companies. The digi-tizer box is made by a Durango company, who manufactures out of California. Throughout their rush of success, AMG has stayed loyal to their home.

“We got a tre-mendous amount of support from the community. A lot of investors here took a risk early on in devel-opment,” Brown said. “I’m really pleased we can incubate here and get started.”

The product, a small box resembling a wireless router, is referred to as an Au-dio Streaming Box (ASB). The ASB receives an analog signal from the venue, whether that is a cable or a satellite receiver. The box takes that signal into the audio channel, digitizes it and resends it to the wireless device.

On the receiving end, custom-ers with smartphones can down-load the free Audioair applica-tion, open it at any participating location, select a channel being broadcast, plug in their ear buds and enjoy immediate sound. They can also chat with friends and others on the network and connect to Facebook.

Eventually, Brown and the others see Audioair in airports, hotels and stadiums. They are also aiming to expand on servic-es for the hearing-impaired and language translations.

“We realized we found an all-new technology,” Brown said.

“Once we identified the mar-kets, there were a number of technological dragons to slay, and in that course we discovered it had other dimensions in terms of value propositions.”

Those other propositions opened Audioair to new adver-tising support.

“There is a powerful way to deliver mobile advertising,” Brown explained. “Forty-five percent of all Internet access is mobile, but only two percent of digital advertising is done through mobile devices. We think Audioair has found a way to solve that disconnect.”

They determined advertising can now be specifically tailored to the individual’s wants and needs. What a person is inclined to peruse will be what they see on their own devices. No more

obtrusive ads. B u s i n e s s e s benefit as well by using the location-based advertising net-work that is then propelled through some-one’s device or a second screen installed by AMG.

“Every year, every month, consumers take more and more control of con-tent that they choose to interact with. Our device helps to further make those decisions.”

This discovery captured the imagination of Silicon Valley, where Audioair is setting up of-fices. There is also a second ver-sion of the product already under way, and AMG just partnered with the Southern Ute Indian Tribe to explore new opportuni-ties in the gaming market. The company has experienced one feverish startup.

“So many great things are happening,” Brown said enthu-siastically. “This is what we call an Over the Top Network, OTT. It’s putting together content that you don’t get the traditional way. Innovation is bringing about useful change with high technology. In our case, it’s dis-ruptive change that makes a real difference.” v

“There are so many bright people

here – investors who are willing to

take risks and institutions that will

take a chance.” – Cordell Brown,

CEO of Airborne Media Group

Continued from Page 5



It is impossible to know when the very first piece of music was played. What can be said of mu-sic is that it is a universal lan-

guage between the most divided cul-tures. No matter what the tunes, most everyone in the world listens to them.

Richard Cooke, founder of Free-notes musical instruments, is highly aware of the connection between music and human beings. Cooke, a Grammy-award winner, has been making xylophone-style instruments for nearly 20 years.

“(Richard’s) understanding of play-ing music and trying to simplify the technical aspects so that non-musi-cians could step into a satisfying ex-perience is what separates us from others like us,” said Christy Cooke, co-founder of Freenotes and wife of Richard Cooke.

Freenotes Company was founded in Moab in 1995 where the Cookes then resided. The business consisted of the construction of indoor and out-door musical installations. In 2002, they moved to Durango, where access to the outdoor world was abundant. Here, they continued to manufacture both styles of instruments.

At Christy’s encouragement, the couple put their focus toward the out-door instruments and how to distrib-ute them to a wider audience. This branch of Freenotes Company was then named Freenotes Harmony Park.

“He was already manufacturing the instruments on a cottage basis,” Chris-ty explained. “I suggested and had the ambition to try and commercialize the manufacturing along with our nephew Robert Cooke, who is primarily re-sponsible for ramping up production.”

With a background in marketing, Christy stepped in as CEO from 2010 to 2012, and she implemented a stra-tegic plan for restructuring the com-pany. She took the company from direct to wholesale sales, allowing FHP to become a national brand.

Rotary Park in Moab remains the largest of all FHP musical installa-tions, containing at least 20 instru-ments available to the public. The

first instrument of FHP was placed in Moab, and the size of the musical park is attributed to new designs placed for public testing. The park symphony draws in hundreds of people all year-round.

“They don’t just make a sound when struck,” Christy said. “They ac-tually make music. Because they are tuned, they are played as an ensemble. It’s simple and complimentary.”

FHP has become a brand associated with musical creativity and interac-tion. Whereas people are inclined to go and see music as a recreational outlet, FHP is designed to engage. The instruments can be bought indi-vidually, or the company offers instru-ment packages for better harmonizing options. Three or more instruments allow the value of the FHP experi-ence to grow exponentially. All of the installations are pentatonic-scaled, so all notes resonate.

Most of the instruments are manu-factured with aluminum or PVC pipe and are secured to a colorful back-ground. There are at least 13 various installations and at least four installa-tion packages available. FHP is most appealing to city parks and school playgrounds, but production is gain-ing popularity among communities and hospitals.

In early 2013, FHP had hit a point where business management was be-coming pivotal. Currently, production is warehoused out of a small manufac-turing shop and office suite on Suttle Street in Bodo. An 800-square foot expansion to that building is in the works due to high volume. FHP is ex-pected to deliver over 10 installations before the end of July, with orders flowing into August.

strikes a chordFreenotes Harmony Park

‘Colorado Company to Watch’ makes outdoor instruments

Freenotes Harmony Park

HEAR THE MUSICThe company has eclectic variety, in-cluding: Contrabass Chimes (vertical 7- to 9-foot tubes), Flying Amadinda (an ancient xylophone from Uganda), Manta Ray (aluminum metallophone), Pagoda Bells (vertical stack from large to small), Tuned Drums, and several variations on marimbas and xylophones. Listen to samples of each one here: http:// freenotesharmonypark.com/ products/listen-to-the-instruments.

Or scan QR code with a smart phone

Story continues on Page 10– Erich Bussian, left, late CEO of Freenotes Harmony Park

“Innovation is anything that is different than what existed in the past. And relevant innovation changes the way we behave as human beings.”

Justin Martinez watches his daughter Annabel, 2, play the Swirl in Boyle Park, Mancos. The Swirl, made by Freenotes Harmony Park, is made of resonated anodized aluminum chimes that range from soprano to alto, and its vibrant tones come from individual resonators.

Erich Bussian, the late CEO of Freenotes Harmony Park, took his life Saturday, July 27.

Prior to his death, photos and interviews for this story had been conducted with Bussian regarding Freenotes Harmony Park produc-tion, instrumentation and expansion.

Christy Cooke, co-founder of FHP, said Bussian contributed a lot of plans to FHP, and the company will con-tinue to implement and build on his

foundation. “His ability to build a team at

Freenotes was one of his greatest strengths,” Christy said. “He took a personal interest in all of us, and genuinely cared about people. When we had challenges in the work space, he always said these were the kinds of problems we wanted to have. His favorite thing to say to me was, ‘It’s all good.’ ”

– Rachel Segura

Freenotes CEO died July 27

Focus On Business • Sunday, August 4, 2013 • 9LINDSAY ABSHAGEN/Herald

RACHEL SEGURA/Herald

This concept of public mu-sic making and FHP’s consis-tent business expansion is what made them a winner for the 2013 Colorado Companies to Watch. Christy remarked that during the recession, FHP saw a 100 percent growth in the first two years.

“It was such an honor to be recognized in the greater busi-ness community,” Christy said. “It really was a team effort that got us to where we are today.”

By June, they saw more than a 35 percent increase in business. They are expected to exceed that amount before the end of the year. With a new and heartier focus on the European market and a new distributor in Australia called Playscape Creations, Free-notes is turning their product into the next big thing.

“Music has been at the core of community building from time immemorial,” Christy said. “We all have the natural ability to

express ourselves musically. It’s something that just needs to be encouraged and provided access to. That’s the beauty of Freenotes in public spaces.”

Instruments can be found lo-cally in Santa Rita Park and Boyle Park in Mancos. They are spread throughout the country in places such as Sedona, Ariz., Shreveport, La., and Randolph Mass., to name a few. They are also internationally distributed to Canada, South America, Europe, Singapore, Israel and Australia. But the premise of Freenotes Harmony Park stays the same.

“Music makes people happy and builds community,” Christy said. “Quality parks and public areas that offer access to music connect people to their creativity, to each other and the outdoors making for a healthy commu-nity.” v

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“Many people have the same ideas. Taking the idea and instantiating that product or service – some-thing real – and then getting that into the hands of people who actually use it. That’s the innovation.

– Brad Feld, co-founder and managing director of the Foundry Group


Continued from Page 8

Images courtesy of Freenotes Harmony Park


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COMMUNITY • LOYALTY • INTEGRITY • COMPASSION • INDEPENDENCE

“Music makes people happy and builds community. Quality parks and

public areas that offer access to music

connect people to their creativity, to each

other and the outdoors, making for a healthy

community.”

– Christy Cooke, co-founder of Freenotes Harmony Park


John Watson, creator of Ev-ergreen Education, says the time is ripe for blended edu-cation.

“Even though all of these (tech-nological) changes have occurred over the years, classrooms are still pretty standard. Education is the one thing that has not kept up. The time to operate as 20th century schools is over.”

Watson is an educational ad-visor for online learning. Ever-green Education, established in 2000, has a full-time staff of six people who have backgrounds in education, business, marketing, consulting and accounting. They advise or have advised over 50 various entities throughout the country.

Evergreen is an online focused community that is working toward

improving the learning and educa-tional opportunities for students who wouldn’t normally get them. When a school district or other ed-ucational entity expresses interest in their services, Evergreen acts as a consultant for effective online management, content develop-ment and implementation.

For instance, in rural areas such as Mancos or Cortez, learning op-portunities are widely different from the Front Range. Watson is working to bridge that gap

“We are typically on-site with our clients so we can get a better understanding of what they want to do,” Watson explained. “We aren’t there to impose. It’s best we see the facilities and what they’re doing. Then we spend time with the teachers and ad-ministrators so we are working hand-in-hand.”

A recent project for Evergreen

at a private school in San Fran-cisco had the advisors incorporat-ing an all-day design exercise. The school was inclined to begin online courses, but was not sure where to start or what to do. The group for-mulated ideas and concepts, and the school was able to differentiate between their options and how to implement them.

Watson was living on the Front Range when Evergreen was formed, but the scattered em-ployees were in need of common ground. The business moved to Durango in 2011 because, “isn’t it obvious?” Watson said with a chuckle.

Three of Evergreen’s staff packed their bags and came to Durango to be closer as a working team.

“When we were looking to move. We wanted something that had incredible outdoor amenities,

Evergreen Education

learn A new way to

Advisors help schools by implementing tools

for online learning‘‘

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Online learning is transforming K-12 education, affording new opportunities for students and improving learning outcomes.

Evergreen Education website


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but was lively enough to be a real town. (On the business side of it), we needed good trans-portation, a nice office setup and good Internet. That’s all we were looking for, and we have that.”

Although Evergreen has not serviced any of the local dis-tricts, they do have a constant stream of clientele. Idaho, Cali-fornia, Missouri and Maine have been on the list most recently. Watson has found that although the business has been around for 12 years, the surge of recent customers is because education is finally catching up with the times.

“In the beginning (of the busi-ness), it was the early days of online education,” he explained. “What was once accepted (as educational tools) in schools has changed, (and those changes) are now more mainstream. It’s

fairly common now for an aver-age high school student to use online help in their studies one way or another.”

And that is exactly where Watson sees education going. Online-only schools may not be the future – there will always be students who enjoy teacher interaction. But is creating in-struction through online study on the forefront? “Absolutely,” said Watson.

Evergreen’s other services include policy work with state legislatures, boards and charter communities to help aid in inter-ests of educational technology.

The future of education may not rest solely on the shoul-ders of the World Wide Web, but Watson sees the Internet as an endless tool for educational benefits. Giving students the flexibility of learning is what gives Evergreen long life. v

Evergreen worked directly with San Juan BOCES (serving nine rural school districts) to open an online school in 2011 — The Southwest Colorado eSchool, which is an accredited online diploma-granting high school. The project extended over eight months from the initial strate-gic planning meetings with representatives from all member districts, through operational planning, culminating with the school’s launch. www.southwestcoloradoeschool.org

Evergreen Education

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innovators In with the Transplants

and homegrown entrepreneurs add spark of creativity

GEOCOSMGeocosm is a geological consulting agency that is focused on reservoir quality services, risk assessment studies and research and development projects. Using Touchstone, a software system for reservoir quality analysis in sandstone, Geocosm can collect data in sparse areas, aiding in more thorough assessments. Linda Bonnell, founder of Geocosm, and Robert Lander, partner in Geocosm, were instrumental in the development of Touchstone. www.geocosm.net

“Innovation is the creation of something that is both novel and useful. We search for innovative solutions by creating synthetic rocks in the laboratory, character-izing natural rocks using a variety of analytical tech-niques, applying new computer simulation methods, and by collaborating with smart, knowledgeable people. The computer models in our software simulate the effects of physical and chemical processes at work deep in the earth that change sand from being something that squirts between your toes on the beach to rock that you could use to build a house.” – Rob Lander, (right) Scientific Advisor and Partner of Geocosm

IDEA-LOOPCreated by Chris McCroskey, Idea-Loop is focused on creating memorable interactive experiences for mobile apps, websites, e-com-merce sites and much more. The developers at Idea-Loop are dedicated to making user-friendly experiences for their clients, who range from Jack Daniel’s, Texas Tourism offices and Borden. The company began in Dallas, Texas, and moved to Durango in 2011. www.idea-loop.com

“To truly be innovative, you must add value – not just something new and shiny. Our goal every day is to add value to our customers, our employees and our commu-nity. The founding of our company required an innovative approach to how we develop software, through our success and failures, innovation will determine our future.”

– Chris McCroskey (above), Founder/Ideator of Idea-Loop

GEOCOMMANDAs a result of breakdown response during chaotic events such as Hurricane Katrina or September 11, GEOcommand figured a way for rescue agents to access and share critical data quickly and efficiently. The GEOcommand software ensures that emergency responders can provide safe and effective services without interruption. The Durango office for GEOcommand houses most of the software developers.

They are also located in Boca Raton, Fla., Charlottesville, VA., and Bethpage, N.Y. www.geocommand.com

“For what we do, we try to look at where there is a need in a public or private sector, then look to fill those needs. Innovation is realizing those gaps and filling them.”

– Shelley Jones (above), Human Resources Manager for GEOcommand

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You have to look at it as something that impacts markets. If you don’t have markets and customers, and making their lives different or better as a result of your activities, then I assume inno-vation doesn’t exist.

– Ajay Menon, Chief Innovation Officer, State of Colorado and the Dean of Colorado State University’s College of Business

SWAN WEALTH ADVISORSFounded in 1997 by Randy Swan, Swan Wealth Advisors was put together as an alternative means of investment services. Randy learned about risk manage-ment as a senior manager at KPMG in Houston, Texas, working in the insurance industry with risk managers. He thought that more prudent risk management should be brought into the investment world. Unfortunately his approach was not warmly accepted by larger corporations, which makes his incentives the perfect place for Durango. The Swan Defined Risk Strategy was developed to protect clients from large losses. His strategy has been named number one by Pensions and Investments over the past one-and-five year periods. The company is now at seven full-time employees with opportunities for more staff to come on by the end of the year. www.swanwealthadvisors.com

“We look at innovation as more of a revolutionary movement that will help redefine the domain in question. Swan is innovative in that we believe we are the first investment management firm to bring professional risk management to everyone…which has historically shielded investors from great losses as experienced in 2000-2002 and 2008.”

– Randy Swan (right), Founder and CEO of Swan Wealth Advisors

Collaborate, innovate and grow at La Plata County Economic Development Alliance’s 7th Annual Economic Summit on Oct. 23 at the Sky Ute Event Center in Ignacio. The featured keynote speaker is Jay Elliot, former senior vice president of Apple and author of two books. Registration opens Aug. 1. www.economicsummit.yeslpc.com

SAVE THE DATE

Focus On Business • Sunday, August 4 , 2013 • 15

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Innovation is finding new ways to address old problems.

– Colorado Lt. Gov. Joe Garcia


CENSUS “QUICK FACTS”

La Plata County ColoradoHousing units (2011) ............................................ 25,987 ..................... 2,224,603

Homeownership rate (‘07-’11) .............................. 69.2% ....................... 66.8%

Housing units in multi-unit structures (‘07-’11) ..... 17.5% ....................... 25.7%

Median value of owner-occupied housing units ...... $342,800 ................. $236,700

Households ........................................................... 20,769 ..................... 1,941,193

Per capita money income (‘07-’11) ....................... $30,592 ................... $30,816

Median household income (‘07-’11) ..................... $56,910 ................... $57,685

Persons below poverty level (‘07-’11) .................... 10.6% ....................... 12.5%

Private nonfarm establishments (2011) ................ 2,258 ....................... 150,889

Private nonfarm employment ................................. 18,368 ..................... 1,972,271

Private nonfarm employment, percent change ........ -2.6% ........................ 0.9%

Nonemployer establishments ................................. 6,114 ....................... 434,910

Retail sales ........................................................... $790,433 ................. $65,896,788

Retail sales per capita ........................................... $15,914 ................... $13,609

Accommodation and food services sales ............... $206,242 ................. $11,440,395

Building permits .................................................... 172........................... 23,301

Source: United States Census Bureau

Durango visitors wait for a ride on the Durango & Silverton Narrow Gauge Railroad train in early July. LINDSAY ABSHAGEN/ Herald photos

Enplanements DRO Airport: 91,993 through June 2013, +13.1% from last year

Lodgers Tax Durango: $252,000 (through June 2013), +9.2% from last year

Housing Permits (through April 2013): 25, +31% from last year

Home SalesQ1 2013 (includes all of La Plata County): 189, +16% from last year

Gas Production90,785 mmcf (through March 2013), -12% from last year

KEY ECONOMIC INDICATORS

La Plata County

Source: Roger Zalneraitis

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REAL ESTATE DATA

Source: Durango Real Estate Network

Median Rental RatesStudio .......................$2,0001 Bedroom ................$7502 Bedroom ................$1,0003 Bedroom ................$1,5004 Bedroom ................$7,285Source: StatsAmerica.org

Building Permits In 2012, La Plata County issued 172 residential building permits.Source: StatsAmerica.org

Foreclosure Rate In the 1st quarter of 2013, foreclosure rates in La Plata County were down 20% com-pared to the 4th quarter of 2012.Source: http://www.colorado.gov

La Plata County Homes 2011 .............2012 ............ 2013 ..............’12 to ’13 Change ....% ChangeMedian Price ..................$296,901 ......$279,250 ......$304,900 ....... +$25,650 ................. +09.18%Number sold ..................127 ................161 ................189 ................. +28 ........................... +17.39%

Durango In-Town Homes 2011 .............2012 ............ 2013 ..............’12 to ’13 Change ....% ChangeMedian Price ..................$325,000 ......$329,950 ......$330,000 ...... +50.00 ...................... -07.08%Number sold ..................20 ..................32 ..................33 .................. +1 .............................. +03.12%

Durango Country Homes 2011 .............2012 ............ 2013 ..............’12 to ’13 Change ....% ChangeMedian Price ..................$373,500 ......$345,000 ...... $347,450 ..... +$2,450 ................... +00.71%Number sold ..................31 ..................52 ..................68 .................. +16 ............................ +30.76%

DMR Homes .................2011 .............2012 ............ 2013 ..............’12 to ’13 Change ....% ChangeMedian Price .................. $540,000 ...... $412,500 ..... $735,000 ..... +322,500 .................. +78.12%Number sold ..................5 .....................2 .....................1 .................... -1 ............................... -50.00%

Bayfield In-Town Homes 2011 .............2012 ............ 2013 ..............’12 to ’13 Change ....% ChangeMedian Price ..................$191,400 ......$171,000 ...... $266,500 ..... +95,500 ................... +55.84%Number sold ..................3 ....................6 ....................5 ..................... -1 ............................... -16.66%

Bayfield Country Homes 2011 .............2012 ............ 2013 ..............’12 to ’13 Change ....% ChangeMedian Price .................. $198,425 ......$232,450 .......$250,000 ....... -7,450 ....................... -3.20%Number sold ..................12 ..................16 ...................23 .................. +7 .............................. +46.75%

Land (1-10 Acres) ........2011 .............2012 ............ 2013 ..............’12 to ’13 Change ....% ChangeMedian Price ..................$195,000 ......$219,000 ...... $182,500 ...... -36,500 .................... -16.66%Number sold ..................5 ....................3 ....................12 .................. +9 .............................. +300.00%

A five-bedroom, two-bath house downtown at 462 E. 8th St. is currently for sale in Durango. The asking price is $849,000.


EMPLOYMENT DATAEmployment in Top 10 IndustriesINDUSTRY EMPLOYMENT AVERAGE WAGE

Government ......................................................................5,711 .........................................................$51,740

Retail Trade .......................................................................3,810 .........................................................$25,640

Health Care & Social Assistance .......................................3,557 .........................................................$46,760

Construction .....................................................................3,224 .........................................................$45,840

Accommodation & Food Service .......................................3,114 .........................................................$16,620

Professional, Scientific & Technical ....................................2,396 .........................................................$56,920

Real Estate Rental & Leasing ............................................2,234 .........................................................$32,650

Finance & Insurance .........................................................1,885 .........................................................$64,080

Administrative & Waste Management ................................1,549 .........................................................$31,830

Other Services ..................................................................1,515 .........................................................$29,080

Total Employment ........................................................ 36,834 ................................................... $40,673

Top 10 Job Occupations BUSINESS EMPLOYEES AVERAGE SALARYOffice & Administrative Support........................................ 3,595 .........................................................$30,253

Management .................................................................... 3,160 .........................................................$62,673

Sales ............................................................................... 2,788 .........................................................$38,545

Construction, Extraction & Maintenance ........................... 2,173 .........................................................$46,782

Food Preparation ............................................................. 1,938 .........................................................$21,334

Education, Training & Libraries .......................................... 1,352 .........................................................$39,820

Business & Finance ......................................................... 1,121 .........................................................$47,730

Grounds Cleaning & Maintenance .................................... 1,084 .........................................................$23,958

Health Practitioners .......................................................... 1,026 .........................................................$60,781

Personal Care & Service ................................................... 979 ............................................................$18,778

Total Job Occupations ..................................................26,313 ................................................... $40,200

Largest Employers COMPANY TYPE EMPLOYEES

Mercy Medical Center ............... Health ..............900

Mercury Payment Systems ........ Finance ............417

Durango Mountain Resort ......... Recreation........400

Wal-Mart ................................... Retail ...............354

Crossfire Seeding ...................... Resources ........250

BP America ............................... Resources ........245

RM Chocolate Factory ............... Food ................150

Strater Hotel ............................. Tourism ............146

Durango Herald ......................... Journalism........128

Animas Surgical Hospital .......... Health Care ......122

Fastest Growing OccupationsComputer & Mathematical ............................... 185%

Health Technologists & Technicians................... 103%

Material Moving Workers................................... 73%

Grounds Cleaning & Maintenance .................... 62%

Life, Physical & Social Science ......................... 60%

40,000,00035,000,00030,000,00025,000,00020,000,00015,000,00010,000,000 5,000,000

TAX COLLECTIONSales Tax

Property Tax

’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13Source: La Plata County Budget Overview

UNEMPLOYMENT RATE

La Plata County

ColoradoU.S.5.3% 6.9% 7.6%

Source: La Plata County Economic Development Alliance

As of May 2013:

Sales tax collections, Durango: $6,838,000 (through June 2013), +6.9% from last year

2013 Regional Livable Wage DataUpdated July 8, 2013 * www.scan.org The Region 9 Economic Development District of Southwest Colorado (Region 9) has released its latest livable wages for the communities throughout southwest Colorado, which shows the cost of living con-tinues to rise in most communities. Region 9 has calculated livable wages since 1999, and four of the five counties show an increase in their livable wage. Only Dolores County shows a decrease.

A livable wage is defined as the level of income necessary to support a given size of household. When one earns less than a livable wage, he or she is forced to make undesirable choices such as working two or more jobs, longer hours, or giving up basic items such as health insurance or licensed childcare. For a single person renting, the livable wage for each community is as follows: Silverton $12.55, Pagosa Springs $11.67, Dove Creek $12.11, Rico $12.11, Bayfield $11.96, Durango $12.10, Ignacio $12.68, Cortez $10.66, Dolores $11.52, and Mancos $11.40.

The livable wage numbers are based on a basic expenditures budget for the nation and adjusted for inflation using the Denver/Boulder Consumer Price Index. Rent and childcare costs are specific to each community, and a mileage allowance is added for the com-munities such as Rico, where residents must travel for basic goods and services.

Nancy Crangle, left, a customer from Tucson, Ariz., buys a tea towel and lettuce/ cabbage cutter from Urban Market co-owner Monica Broderick and employee Zack Oden. Urban Market is located at 865 Main Ave.

LINDSAY ABSHAGEN/Herald

Connecting You to the WorldDurango-La Plata County Airport

Providing Daily Service FromAmerican Airlines • Frontier Airlines

United Airlines • US Airways5 Rental Car Agencies • Deli • Gift Shop

Here’s a few important tips:• Get to the airport at least 90 minutes prior to your departure.

• Prepare for security so you can go through quickly.• Check-in for your flight online. Remember, if you aren’t checking baggage,

you can proceed directly to security.• Check real-time flight status online at flydurango.com or by using one of the great flight

tracking apps out there for your mobile phone.

1000 Airport RoadDurango, Colorado

970-382-6050

Jasper Welch named CEO of the National Business Incuba-tor Association in late Febru-ary. He oversees a staff of 13

and a $1.5 million annual budget. Welch founded the local consulting firms Client Focused Solutions and Four Corners Management Systems. He also taught marketing classes for the Southwest Colorado Small Busi-ness Development Center. He has served as a twice-elected council member on the Durango City Coun-cil, including two one-year terms as mayor. He co-founded the co-working facility DurangoSpace.

Q: How do you define innovation?

A: It’s the ability to reach beyond the obvious; the willingness to exper-iment with different combinations;

the desire to learn without boundar-ies. Innovation is challenging for most of us, as failure may be an out-come. But then, our individual hope is for a successful idea to be created, which keeps us going forward.

Q: What does a business culture need to make it happen? Does La Plata County have those qualities?

A: In a business organizational culture, innovation occurs when we suspend judgment and allow new ideas to flourish. A bureaucracy or top-down management system will thwart innovation, simply due to the rigid culture. An innovative ap-proach is customer- and co-worker-focused, versus rule-bound and inflexible bureaucratic culture. Our co-working space, known as

DurangoSpace (durangospace.com) provides this type of innovation based on the peer-to-peer interac-tion and flexible workspace.

Q: What is unique about La Plata County’s “entrepreneurial ecosystem” compared to other regions in the U.S.?

A: La Plata County has a unique group of individual entrepreneurs, business owners, and support organizations that are willing to reach beyond their own interests and support business start-ups, emerging companies and creative approaches to business. The new Southwest Colorado Accelerator Program for Entrepreneurs is an example of this entrepreneurial ecosystem. As compared to other micropolitan areas of the U.S., La Plata County ranks high in economic strength (policom.com) and we are fortunate to have a well-integrated entrepreneurial ecosystem. The combination of the La Plata County Economic Alliance, Fort Lewis College Small Business Development Center, Region 9, SCAPE, DurangoSpace, Durango Chamber and strong local banks and community provides a good platform for entrepreneurship to flourish. Q: Why did you want to lead the NBIA? A: Our Association was started in 1987. Over the past 28 years, busi-ness incubation has grown, matured and has been proven a successful model for creating and launching start-up companies. After working as the director of the San Juan College Enterprise Center from 1999 to 2011, I was ready to provide executive leadership at the U.S. and interna-tional level with the National Busi-ness Incubation Association.

Q: What has your experience been as the CEO for the past five months?A: From my expanded perspective, communities, states and countries around the world are putting tremen-dous local efforts and corresponding

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It’s the ability to reach beyond the obvious; the willingness to experiment with different combinations; the desire to learn without boundaries.

– Jasper Welch, CEO of the National Business Incubator Association

NATIONAL BUSINESS ORGANIZATION

incubationWarm support for Jasper Welch, new CEO

of the National Business Incubator Association, weighs in on innovation

Jasper Welch, CEO of NBIA, is the co-founder of the co-working facility DurangoSpace, located at 1221 Main Ave.LINDSAY ABSHAGEN/ Herald


financial resources into supporting their entrepreneurs. Even the robust entrepreneur support and programs that Durango enjoys have some catching up to do! NBIA mem-bers are leading the way with expanded business incubation and start-up company support and programs that involve over 900 members, 2,200 business incubation professionals and 12,000 companies in the U.S. and internationally. To be able to have this level of international involvement in my new position at NBIA is a great opportunity for me personally and for La Plata County.

Q: How might La Plata County benefit from your position in this national organization?A: Now we have a front row seat into the international world of business incubation, start-up companies and the entrepreneurial ecosystem. While our regional economy is well-suited for entrepreneurship (as compared to other small cities in the U.S. and international marketplace), there are many ideas, resources, people and NBIA contacts that we can learn from. In the short five months that I’ve served as president and CEO, we have seen a number of NBIA members, directors and strategic partners come to Durango to work with me in my new role. Durango is now more firmly on the map as a thriving small Colorado town with vibrant entrepreneurship. And finally, the business community in Durango and entrepreneur support organizations have been very supportive of my executive role at NBIA.

Q: What are the biggest challenges facing entrepreneurs and new businesses in La Plata County?A: Not enough time! Most entrepre-neurs have more ideas than time; and more business start-up concepts than money to invest. Sure, we have the chal-lenges of over-regulation, challenges in the tax code and the obstacles to obtain start-up company financing. More re-cently, it is harder and harder for a small business to hire and support employees due to the myriad of requirements and paperwork needed to add new jobs. But the real challenge I’ve seen working with entrepreneurs is the need to have a laser focus on your goals, dreams and mission.The second area that the entrepreneur needs help in will be fellow sojourners and people with an empathic ear for the start-up founder. With the support organi-zations ready to help, local entrepreneurs have a much better opportunity to suc-ceed that in most of smaller towns in the Rocky Mountain West. v

WHAT IS A BUSINESS INCUBATOR?Business incubators nurture the development of entrepreneurial companies, helping them survive and grow during the start-up period, when they are most vulnerable. These programs provide their client companies with business support services and resources tailored to young firms. The most common goals of incubation programs are creating jobs in a community, enhancing a community’s entrepreneurial climate, retaining businesses in a community, building or accelerating growth in a local industry, and diversifying local economies. For more on the National Business Assocation, visit www.nbia.org.


v Colorado ranked seventh in Fast Company’s report on top states for innovation (2013).

v Colorado ranked fourth in the Milken Institute’s State Technology and Science Index (2013).

v The U.S. Chamber of Commerce ranked Colorado second for the 2012 top 10 states for entrepreneurship and innovation in their 2012 and 2013 Enterprising States Report.

v Colorado ranked fifth best state for business by Forbes (2012).

v The Kauffman Index of Entrepreneurial Activity listed Colorado as fourth for the highest rate of entrepreneurial activity in the United States, with 450 new business owners per 100,000 adults (2011).

COINThe value of

STATE BUSINESS ORGANIZATION

Colorado innovation

STATISTICS

Matt Taylor, CEO of Mercury Payment Systems in Durango, stands in front of the construc-tion site of the future Mercury building.

LINDSAY ABSHAGEN/ Herald

By Karla SluisFocus On Business Editor

According to Matt Taylor, CEO of Mercury Payment Systems, the Du-rango area is “quintessentially a hot-bed for small-to-medium business

commerce.”“There are lots of successful entrepreneurs,

and a real community has been built out of that. That’s emblematic of why I joined COIN.”

COIN, the Colorado Innovation Network was launched by Gov. John Hickenlooper in Novem-ber 2011. Its mission is to create a physical and virtual network of global leaders that will encour-age relationships to support the innovation ecosys-tem, grow companies and create jobs.

Gov. Hickenlooper asked Taylor to be on the COIN board because MPS represented the homegrown startup that has grown to be a mid- to large-sized company.

“Our commitment to the community is a nice balance to keeping business in Colorado. That perspective was something that the governor wanted on the board,” said Taylor. “I’m ex-tremely dedicated to communities in Colorado. I thought it would be a good way to give back.”

The COIN board meets quarterly. They host a summit in late summer in Denver, this year


‘‘

’’

Innovation in my business is a change that can be brought to a

process or prod-uct that enables

success in real scale. It’s not just a brave new idea. It can be chang-

ing behavior in a small way; some

change that makes consum-ers’ lives a little bit easier. Little ideas can turn

into big things.

– Matt Taylor, CEO of Mercury

Payment Systems in Durango


Locals support Gov. Hickenlooper’s two-year-old Colorado Innovation Network, which was created to build prosperity through diverse partnerships

StoneAge CEO Kerry Siggins discusses an inlet assembly for a 3D tank-cleaning tool with Assembly Technician John Staten. “You can either evolve or you die. If a business isn’t innovating, you can bet their competition is,” said Siggins. “At StoneAge, we are always looking for ways to be innovative, especially product development and product delivery.”LINDSAY ABSHAGEN/Herald

on Aug. 28 and 29. The summit is hosted by the governor and brings in panel speakers, keynotes and stories of economic growth and innovation.

Kerry Siggins, CEO of StoneAge Tools in Duran-go, attended the first annual summit last year. She said it was specifically about innovation and how private business, academia and government can work together to make Colorado the most innovative state in the nation.

“I didn’t know what to expect,” said Siggins, “but after the first keynote speaker on the first day, I was inspired.”

Taylor said COIN is about building awareness as well as connection. “It’s Colorado’s opportunity to have a brand in the U.S.”

Siggins characterized the brand as forward-thinking, and business-friendly. As more businesses choose to start up or relocate, the brand helps attract them to Colorado.

COIN’s impact on La Plata County is still subtle, but that is to be expected for a new organization still building infrastructure.

“I expect that as the organization grows and has more and more successes, all areas of the state will benefit,” said Siggins.

Taylor said La Plata County is rich in resources to help businesses. Along with the various economic sup-port organizations, he said there is great help and com-mitment from the City of Durango.

“They are very focused on economic development.”He points out that Fort Lewis College is a wonder-

ful feeder system for employees, and says it’s relatively affordable to lease or build compared with other parts of mountainous Colorado. Taylor said people in the Durango area have a passion that they bring to their life, and it spills over into the working environment.

But there’s one big drawback for businesses here: “If you’re looking for money, it’s challenging. ... But the money will follow the ideas.” v

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RESOURCES ONLINEThe COIN website offers a variety of resources for businesses, including a list of key industries, incubator and accelerator programs, higher education, venture capital, resource map, federal labs, small business development center resource guide, and an innovation library. Visit: http://www.coloradoinnovationnetwork.com/resource-center.

v The Beacon Hill Institute issues an annual report on state competitiveness and Colorado consistently ranks in the top 10. Colorado ranked third (2011).

v StartUpHire listed Colorado as first for growth in the startup job sector, as the state saw a 170 percent increase in startup jobs between 2010 and 2011.

v TechAmerica Cyberstates ranked Colorado third in Technology Industry Employment Concentration (2010).

v Colorado ranked fourth in Research and Devel-opment Inputs, the ability to attract various types of federal, industry, and academic funding, by the Milken Institute Research and Development Inputs Composite Index (2008).

The CEO Network is a part of the Southwest Colorado Growth Company Initiative or the GCI. The CEO Network is a peer networking group with quarterly meetings to discuss rural-area business issues. It works closely with Fort Lewis College and has occasional meetings with state, county, and city government officials to talk about how to make communities more business-friendly. This is in alignment with the Colorado Innovation Network’s mission, which is to be a catalyst for economic prosperity through innovation by partnering with government, business and civil society to foster collaboration around global ideas, talent, capital and the entrepreneurial spirit. Here’s a link to learn more about the GCI: http://www.yeslpc.com/growth-company-initiative

THE CEO NETWORK


Start me up Small Business Development Center is a community partner

By Joe Keck Director, Small Business

Development Center Network

Over the years our Small Business Develop-ment Center Network (SBDC) has had the

reputation of being a go-to place for business start-up assistance.

A big part of that reputation is on target, since roughly 50 percent of our clients are indeed start-ups, and approximately 70 percent are early-stage compa-nies (0-2 years old).

Innovation is really at the core of what most of our clients are working to build a business case on. They are trying to develop that unique competitive advan-tage by solving a perceived and hopefully real problem in the marketplace. Innovation can oc-cur by providing a new product or service, or by finding a new use for an existing product or service.

I find innovative business peo-ple consistently as I travel around the five counties that we cover in Southwest Colorado. La Plata County seems to be at the crux of that innovation culture for this region. For some folks, in-novation is driven by the need to survive. If you were to ask a few builders, realtors, small retailers, etc. how they have survived the last few years, my sense is you’d fine a lot of innovative strategies they have adopted to make ends meet. Words like downsizing, right-sizing, re-inventing, career change, heading to the Bakken Oil Field, all come to mind.

For some other technology or growth businesses, innova-tion can be driven by intellec-tual property or fast growth pres-sures. The business development needs of these companies, while having some similarity to Main Street businesses, can be quite unique.

Where the resources of the SBDC can have a positive im-pact on the process of helping businesses innovate is in us-ing our Business Advisor Net-work, Economic Gardening resources and targeted training and workshops to facilitate the

business planning and develop-ment process. We are fortunate and blessed with our 35-member Business Advisor Network (we call it the BAN). These individu-als gave over 500 hours of their time in working with small busi-nesses in 2012.

Why is this important? Build-ing a team of trusted advisors is a key component to the suc-cess of most small businesses. Whether they are a CPA, website consultant, banker, technology consultant or human resource consultant, trusted advisors are one of those fundamental building blocks for most small businesses and are particularly critical to companies involved in innovation.

Most start-up and early-stage companies can’t afford to hire the people in-house or external skilled resources they need to succeed, however building that

LINDSAY ABSHAGEN/HeraldJoe Keck, director of Small Business Development Center Network, meets with Erin Neer, owner of MUNIrevs.

LOCAL BUSINESS ORGANIZATIONS

See SBDC, Page 29

Whether they are a CPA, website consultant, banker, technology consultant or human

resource consultant, trusted advisors are one of those fundamental building blocks for most small businesses and are particularly critical

to companies involved in innovation.

rebound On the

La Plata Economic Development Alliance reports positive trends in growth-company economy

By Roger ZalneraitisExecutive Director, La Plata

Economic Development Alliance

La Plata County’s economy is off to a great start this year. Companies report that our “feeder markets”

(the places where most of our tour-ists come from, and many of our businesses sell to) are 12 to 18 months further ahead than econo-mists predicted. This is rebound-ing to our favor, with employment, labor force participation, tourism, lodging, enplanements and home sales all up.

The La Plata Economic Develop-ment Alliance was founded in 2011 and works to create jobs through-out the county by helping “growth companies” (firms with national and international markets that want to grow) succeed here. In addition to Mercury’s stellar growth, almost all aspects of our growth company economy are positive right now:

v Tech businesses and reloca-tions: We are seeing an increase

in creative-industry small busi-nesses locating here. The Alliance has worked with several software, education, graphic design and geo-logical businesses that have moved here or opened new offices here in the last two years. These reloca-

tions are being driven by several factors: resources such as Durango Space and the Durango Tech Group that help foster collaborative en-vironments for entrepreneurs, the airport’s quick flights to key hubs, continually improving fiber and wireless service, and the fantastic quality of life for individuals and families here.

v Manufacturing: Almost ev-ery manufacturer in the region is growing. Over the last 18 months, Osprey, StoneAge, Freenotes Har-mony Park, SoundTraxx and Chi-nook Medical Gear have all built or occupied new space to accom-modate growth. There are also sev-eral new start-up food and beverage companies, including Tailwind Nu-trition, Solay Superfood, Animas Chocolate Company and others that are taking advantage of the depth of resources and expertise we have locally in food manufacturing.

v Natural resources: While gas field activity has struggled in the San Juan Basin, many natural- re-source service companies such as


‘‘

’’

All too often people define innovation as

invention, and that’s a narrow

way to look at it. I define innova-

tion as a new match between

a need and a solution. Innova-tion can happen when you devel-op new business models, custom-er service mod-

els, products, and processes…

to name a few.

– Kerry Siggins, CEO of StoneAge Tools

LINDSAY ABSHAGEN/HeraldRoger Zalneraitis, executive director of La Plata Economic Development Alliance , meets with Dave Smiley, an Oxford Asset Management financial planner and investment advisor.


“I wouldn’t have dreamed that there

could be such an impressive

business support system in such

a sparsely populated spot.”

– E-mail from the owner of a high-tech company that moved

from Texas to Durango

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Crossfire Seeding, United Pipeline, Allied Pipeline, Zircon Container, and management companies such as Peak Energy and the Southern Ute Growth Fund continue to see solid gains as a result of opportunities in the Gulf, the Bakken, and other emerging domestic fields.

The Alliance helps growth com-panies like these succeed through direct assistance and programs to improve the business environment. One of our key programs is “pre-location” assistance programs to make it easier to recruit key employ-ees. We also assist firms by helping them network with other firms and resources here, help with permitting, connect companies to state agen-cies for tax credits and international trade, collaborate with Southwest Colorado Community College for workforce training, and facilitate internships with Fort Lewis College.

The Alliance will continue to en-hance these services and networks to better support new, existing and relocating companies. We plan to build awareness outside the commu-nity of Durango and La Plata County as a great place to do business, work to strengthen business to business

(B2B) services and access to capital for growth companies, and promote and enhance our pre-location assis-tance services to make it as easy as possible for all of our companies to attract the talent they need to grow and thrive.

We’ve already seen some of the positive benefits of what we and our community partners such as SBDC and Region 9 have done. After meet-ing with a small high-tech company that relocated from a large city in Texas, the owner sent an e-mail say-ing, “I wouldn’t have dreamed that there could be such an impressive business support system in such a sparsely populated spot.”

This is what Durango and La Plata County have built: through in-novative programs and initiatives, we now have an unparalleled small town entrerpreneurial ecosystem. Our job is to keep strengthening this ecosystem through programs like the new business accelerator, and start telling our business story to the world as proudly as we do our lifestyle story.

For information, please visit our website at www.yeslpc.com or contact us at [email protected]. v

La Plata County is an ideal location for entrepreneurs and innovative businesses that want to grow and succeed while also enjoying an outstanding quality of life for themselves, their employees and their families. Few other communities in the Rocky Mountains can offer businesses the resources that Durango and La Plata County can, such as:

v Two colleges – Fort Lewis College and Pueblo Community College – to provide an educated and skilled workforce.

v Customized workforce training to help employees keep up with technology and new ideas.

v A vibrant and growing regional airport with direct service to major international gateways such as Dallas, Denver and Phoenix.

v High-speed Internet and 4G wireless service capable of serving cloud technology, high-capacity data transfers, and distributed workforce and operations.

v A collaborative business environment where firms help and assist one another.

v Unparalleled business support, with direct access to seasoned executives and business leaders through the Business Advisors Network and Growth Company Initiative.

v Low property taxes and low employee turnover, which reduces ongoing operating costs.

v Local and statewide technical assistance, incentives, loans and equity to help get started and maintain growth in a new hometown.

REASONS TO RELOCATE

By Laura Lewis MarchinoAssistant Director of Region 9

Economic Development District of Southwest Colorado

Collaborative efforts have distinguished the South-west region as a leader in the economic and

business development fields. The Region 9 Economic De-

velopment District of Southwest Colorado (Region 9), Southwest Small Business Development Center (SBDC), and the La Plata Economic Development Alliance (Alliance) are strong partners building our entrepreneur infra-structure with limited resources.

Due to wanting to get the big-gest “bang for the buck,” the part-ners have focused their last several years on second-stage or growth companies. Growth companies are defined as businesses that ex-

port products and services outside the region, are growing, and offer higher than average wage jobs. These are the companies that com-munities want to be successful, because they bring in new income and have high brand recognition. Rocky Mountain Chocolate Fac-tory, Mercury Payment Systems, Zuke’s Performance Pet Treats and StoneAge are examples.

This specialized focus has seen results. The Colorado Companies to Watch program recognizes 50 growth companies every year, and Southwest Colorado has had the most winners from any rural region in the state. Since the pro-gram began in 2009, Southwest Colorado has seen 12 companies recognized.

But due to our remote, rural lo-cation, the local economy relies heavily on entrepreneurial small-scale businesses for jobs and tax

revenues, and these businesses also need to be sustained and grown.

The Southwest Colorado Ac-celerator Program for Entrepre-neurs (SCAPE) is an additional tool in the tool box that identifies the emerging businesses that need intensive mentoring and capi-tal investment to put them on the growth-company track.

SCAPE’s objective is to sup-port the creation and development of job-creating companies by offering an Accelerator Program. Successful completion of the SCAPE program should provide these businesses the ability to en-ter markets and raise capital. The goal is to “graduate” up to eight companies every year, with each company creating at least six jobs in the first two years.

This new program is sup-ported by Region 9, Alliance

fast forward Accelerator plan pushes SCAPE programs

offer funding and aid for companies that create jobs


‘‘

’’

If we can establish a reputation for a high quality of life and an environment that fosters innovation, we can rival any place in the world for economic investment, leading to job creation.

– Gov. John W. Hickenlooper, State of Colorado


WHAT IS A BUSINESS ACCELERATOR?Business accelerators share some of the characteristics of incubators, offering professional advice and guidance to start-ups. However, the incubation period is very short and intense. Accelerators aim to turn business ideas into prototypes or products that are ready for market in a matter of months. Sponsors provide initial funding and expertise to small groups that can demonstrate a great product idea. In return, the sponsors sometimes take a small equity stake in the new business, which might be around 6 percent.

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team of in-house and external trusted advisors can enhance the success potential of these com-panies exponentially.

In the last few years we have started to provide focused pan-els of business advisors to meet with clients so that a client can present their top business is-sues and needs. These sessions generally involve between 2-5 business advisors. The advi-sors typically bring a depth and breadth of business experience and business acumen that is hard for many smaller businesses to afford or find. The types of busi-ness needs that can be addressed include doing a trial run pitch to receive a contract, preparing for successful business exit/transi-

tion, launching a new business service, identifying effective marketing strategies, general business concept review, etc.

With our economic develop-ment partners the SBDC has started to utilize a business and economic strategy called eco-nomic gardening. The strategy is typically directed at 2nd stage growth companies that have es-tablished markets and business systems that have good growth potential. The program involves access to industry and market re-search/data mining and analysis, peer and advisor mentoring, and in some cases access to equity investment capital. At the SBDC we have modified this approach to provide the same services to start-up companies. We have done this in response to many

clients reporting their inability to find good market and research sources that are affordable or available to them. During the last session of the Colorado State Legislature a bill was passed that will enable this economic gar-dening program to be expanded to the communities our network serves throughout Colorado.

In closing, innovation seems to be on the rise in La Plata Coun-ty. From a variety of innovative businesses (both growth and Main Street types), a very col-laborative relationship between county economic and business development organizations (Re-gion 9 EDD, Alliance, Chambers of Commerce, SBDC), an evolv-ing collaborative relationship among Fort Lewis College, the Southwest Colorado Commu-

nity College, and K-12 schools and human resources they are producing, and the new entrepre-neur support programs like the Southwest Colorado Accelera-tor Program for Entrepreneurs (SCAPE), there is definitely something very special about the entrepreneurial ecosystem in La Plata County.

Joe Keck is the Director of the Southwest Colorado Small Busi-ness Development Center (SBDC). Since 1977 Keck has worked in the community planning, economic and business development area. The mission of the SBDC is to As-sist Businesses to Start, Grow and Prosper. The SBDC serves the five county area of Southwestern Colorado including the Southern Ute and Ute Mountain Ute Indian Tribes. v

SBDC: Innovative business practices seem to be on the rise in La Plata CountyContinued from Page 25

and SBDC as well as a num-ber of local financial institu-tions. There are also 15 private- investor mentors who will ac-cept businesses for intensive mentorship to help them address the specific challenges they face in establishing and growing their companies.

According to Ed Morlan, executive director of Region 9, “SCAPE builds on the success of the Growth Com-pany Initiative, and provides another level of services and support for the emerging growth startups in South-west Colorado. We are happy to sup-port this program and expect to see some great compa-nies come out of it.”

SCAPE will run two Accelerator Programs per year, each of them four months long. Companies accepted into the program will re-ceive up to $30,000 to help build their company, along with free office space, discounted business services and intensive mentor-ship. At the end of the four-month program, there will be a presen-tation given by all finalists that

will include potential follow-on investors.

“Southwest Colorado has a lot of entrepreneurs with great business ideas,” said Gary Masner, a SCAPE co-founder. “Until now, it has been a chal-lenge for many of them to turn their ideas into a successful business. SCAPE will help them with their hurdles and set them up for success.”

The project also aligns with the State Colorado Blueprint Econom-ic Development Plan, by focusing on Colorado’s 14 identified key in-dustry areas.

SCAPE is cur-rently working with its first companies. For more informa-tion, please go to www.goscape.org.

Laura Lewis Marchino is the as-sistant director of Region 9. Region 9 serves five counties, ten munici-palities and two tribes in South-west Colorado. Region 9’s mission is to be a regional leader, working with the private and public sectors to enhance economic conditions, and improve the region’s economic prosperity. v

Laura Lewis Marchino, the assistant director of Region 9, stands at First National Bank in front of the reading material she provides.LINDSAY ABSHAGEN/Herald

“We are happy to support

(SCAPE) and expect to see some great companies

come out of it.”– Ed Morlan,

executive director of Region 9


By Tim WalsworthTrue innovators are constantly

tweaking things and coming up with new ideas. Not just once, or even once a year, but constantly. To me, the definition of innova-tion as it relates to business is having the attitude and philoso-phy of continuous improvement.

Here are some examples of recent innovation in Durango’s downtown businesses:

v Colorado Pongas, a pool hall and not a traditional art venue, has taken on art as part of what

if offers to guests. It was a part of the most recent First Thursday Art Walks.

v The Rochester Hotel and Leland House have been doing summer concerts on Wednesday evenings for a couple of summers now. They pack their courtyard by offering a service not typically offered at standard hotels and are able to show off their unique amenities.

v The Durango Farmers Mar-ket at First National Bank of Du-rango recently held a free bike tune up session in advance of

Clean Commute Week. Creative partnerships can create win-win situations. Clean Commute Week got people to dust off and tune up their bikes for the next week, and Durango Farmer’s Market got ad-ditional and perhaps new traffic that day. v

Tim Walsworth is the executive director of the Durango Busi-ness Improvement District. He is also president and CEO of United Way of Southwest Colorado.

Local artists’ work is displayed at Colorado Pongas as part of Durango’s First Thursday Art Walks, from top: “Pool Shark,” by Brian Simmonds; “Rising From the Ashes,” by Devin Maureen Draget, and “Dragon Ladies,” by Virgio Sanchez.

Bike tune-ups were offered

at the Durango Farmers Market

during Clean Commute Week.

HERALD FILE

Photos courtesy of Colorado Pongas

BID businesses get creative


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2013 Focus on Business

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