Cedar ReubenPresident |
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Background
I have over 25 years experience managing a wide variety of local businesses, ranging from alternative energy (Sun Frost, the first) to software development for the emergency medical field (Healthware Solutions, the most recent).
All of these companies share at least two things in common: First, they were all started by local entrepreneurs in Humboldt County and had grown to a point where they needed help in continuing their growth. Second, their markets and customers were almost exclusively located outside of Humboldt County . This situation results in revenue being brought into the area from outside, enhancing local job creation and prosperity.
After the successful sale of the most recent company, I co-founded Humboldt Investment Capital to seek out other entrepreneurial companies in the local area. We are looking for companies that are at a point in their development where they can flourish given the appropriate combination of capital investment and experienced mentoring to help manage growth opportunities. I look forward to being a judge for Economic Fuel and I think our community is incredibly fortunate to have a program as generous and well structured as this one.
In addition to my business experience I recently completed a two year term as Chair of the Humboldt County Workforce Investment Board (WIB). I'm involved with the WIB because I'm concerned about workforce and economic issues in Humboldt County and I believe the work being done by the WIB member organizations is making real, positive change in both of these areas. I currently remain a member at large on the main WIB board and have recently been appointed as a member of the Headwaters Fund Board.
What I look for in a business plan
I want to see a product or service that takes care of an identifiable issue along with a clear and concise explanation as to why it does so better than anything else out there. In addition to all of the standard elements (cost projections, etc.), a powerful business plan should address the following five issues*:
- Is the product or service defensible? Can competitors easily copy it or is there some element about what you're doing that is unique and difficult to reproduce?
- Is it extensible? Once you've sold your product or service to your customer is there anything else that's a natural extension that you can sell them next?
- Is it scalable? What are the limitations to growth and how are you going to address them? Can it be sold outside the local area?
- Are sales repeatable? Is this a product or service that has strong potential to generate repeat business with the same customer(s) or will you have to continually find new customers?
- Last and most important – once the business reaches scale, will it be profitable and how profitable do you expect it be? Because if it's not profitable than you're not in business – you've created a non-profit organization, or a charitable entity, or… a bankruptcy. People need food, air and water to survive. Businesses need profit.
In addition to the above, I look for business ideas that have the potential to grow local prosperity by employing local people and bringing outside revenue into the area through the export of products or services.
