Stage 2 Companies
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1 + Used to be... Isn t Anymore! Power of Collaboration: Centers for Entrepreneurs Jasper Welch, DurangoSpace
2 + What is going on out there? When did the following companies get started? FaceBook? Twitter? Apple? Starbucks? Costco? Jet Blue? What is the average age of a Fortune 500 company? What percentage of IBM employees work independently? Remotely? Coworking locations and spaces worldwide? What is the big deal about Stage 2 companies?
3 + What is happening in Durango? Entrepreneurs create companies, innovate new ideas, create jobs and diversify the local economy Company creation = job creation Within Durango s economy County metrics 91% of Companies have 9 or less employees Durango micro enterprises create 53% of our jobs (5X as many as Stage 3+4 companies in the County) Stage 2 companies (based in Durango, such as Stoneage, Inc.) represent just 5.4% of companies, but they are creating 34% of the jobs!
4 + Durango, Colo -Company Metrics Source: Durango, CO Companies Self Employed Stage 1: 2-9 Stage 2: Stage 3&4: ,174 38% 56% 5.4% 0.23% Most jobs per Company Stage in La Plata County (Durango area)? Self-Employed Stage 1: 2-9 Stage 2: Stage 3: 100+ Stage 4: % companies 56.3% 5.4% 0.2% 0.03% 10% of LPC jobs 42.7% 33.8% 8.1% 5.3% A) Self-Employed: Start, support, sustain & launch B) Stage 1: Innovation, Marketing, Financial Viability, Initial Jobs & Growth C) Stage 2: Accelerate, Expand Markets, Develop People, Financing & Job Creation
5 + What companies create jobs? Donald Walls, PhD
6 Economic Development Strategies & Options 1. Do Nothing & Hope your local Economy works out. 2. Say that everything is OK, and we ll just let the marketplace decide. 3. Hang on to the Companies you have, and ignore the rest (start-ups, recruiting, expanding, virtual) 4. Retain what you have, & try to expand as well. 5. Big 3: Recruit, expand & retain companies 6. Start-ups, grow Stage 2, retain key Companies, Let s look at Option 6 Entrepreneur Ecosystems Start-Ups & Coworking Launching Stage One Co s to create Stage 2 (use Incubators) Focus on Stage Two (grow jobs) Retain Your Stage 3 & 4 (100+) Recruit where there is a match (best fit) with your city/town Best practices & next practices 6 Jasper Welch, 6/13/2012
7 + Entrepreneurial Service Providers (Continuum of Support) Coworking: Support for solo, remote/virtual, location neutral workers (who are now in home offices, coffee shops, libraries) Incubators: Support for Start-ups & Emerging companies (Stage One), who are now in cheap unsupported office space Accelerators: Support for Technology & Quick Launch companies that thrive in virtual team, IT & web-based economy Economic Development Organizations (EDOs): Supporting Stage Two companies with Economic Gardening
8 Innovative Strategies to Create Jobs? Coworking Self Employed Professionals Small Teams & Meet-Up Space Location Neutral Workers Business Incubation Business Plan Model & Start Flexible Leases, Training Support Hint: Create a Company! Then Grow it! Start-Ups (Phase 1 Companies) Accelerators Minimum Business Viability Equity Stake (2% to 8%) 90 Days to Demo Day!
9 + Why coworking? Why incubation? Coworking? Self-employed & independents Flexible & accessible workspace Daily & monthly: coworkers Independent programming Early start-ups, some lifestyle Virtual & Location Neutral Incubation? Start-Ups (Stage 1 companies) Short term leased space Monthly & yearly: companies Incubator directed programs Start-ups, emerging companies Team HDQ, Company HDQ
10 Where do coworkers come from? Research from Home Office 58% + Traditional Office 22% Remote/Virtual Office 8% Small Shared Office 5% Coffee Shop 4% Library 2% Biz Center 1%
11 Five Reasons Why? Coworking vs. Virtual More interaction, less + More sales (other coworkers) More social time, less alone time More economical than traditional (& expensive) office space Face-to-Face Team Dynamics
12 + Principles of Coworking Management Space Catalyst Limited Leasehold Improvements Fixed Cost Model Rent as CoG Build Community, then add Space Business Model & Cash Flow Est Anchor Tenants & Flex Workspace Local EDO support (Membership) Downtown Space, Not Remote Space Owner Short Term, Flexible Lease Member Development (interaction) Monthly Recurring Revenues Key Concierge Model of Staffing Coworking Space Owner On-Site & Coworking Technology-better than home, coffee shop Create Advisory Board to help owners Likely You ll need to Self-Finance
13 + Coworking in a smaller community? Why Your Community needs Coworking? Lessons learned at DgoSpace Home offices are limited Integrate solo entrepreneurs into the community workforce Independents need workspace, remote workers need community Accelerated serendipity Full Service offices are pricey for solo entrepreneurs & remote workers Community first, Space second Special Events, Training, Social Time Flexible (wheels): tables & chairs Connected - 10Mbps+ Internet Word Press updated web site Relationship w- EDO, Chamber
14 + So What Does Coworking have to with Your EDO? The Whys for EDO s? Front End of the Business & Job Creation Process Orchids & Start-Ups Distributed Workers & Remote Workers Already in EDO area Web-Based & Cloud Technology enabling Rise of Coworker & Quick Start Companies Stage 2 Companies launch from Self- Employed & Stage One companies
15 + Questions & Answers for Panel We ll address those once the initial presentations are done Jasper
16 + Used to be... Isn t Anymore! Power of Collaboration: Centers for Entrepreneurs Jasper Welch, DurangoSpace
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