The Small Business Association of the Midlands helps entrepreneurs by educating them about running a business. The SBAM started last year and already has nearly 90 members. Michael Mitilier, President of the Small Business Association of the Midlands, said the SBAM doesn’t make business plans but rather guides startups toward education opportunities.

“Our mission is to try to help entrepreneurs through education and any services that we can provide to help them,” Mitilier said. “We don’t do business planning and we don’t do microloans. We try to provide [small businesses] with resources to find other resources.”

Mitilier said it’s important for small business owners not only to educate themselves but to create a network of small businesses to learn from and work with.  The SBAM offers seminars, partnerships with other organizations throughout the state and networking opportunities for startups.

“We try not to duplicate efforts like places like us,” he said. “Instead of duplicating, we choose to partner with them. Everybody has something different to bring to the table. You can have 500 conferences to choose from – so instead, we just create one or two conferences.”

Mitilier said Nebraska and other areas of the country are seeing a rise in small businesses and entrepreneurs because of the recent economic downturn.

“I think people are looking for guidance to start the business and I think they’re looking for ways to jumpstart their business,” he said. “They’re doing more with less and fewer people. With the economy as bad [as it’s been recently], people begin thinking that they’ll just start a business for themselves instead of being laid off again.”

The Small Business Association of the Midlands emphasizes education and learning a little bit of everything because they feel it prevents more damage in the end when the owner is aware of most aspects of running a company.

“If anything, [small businesses] need to educate themselves,” Mitilier said. “As a business owner, you don’t have to be the end all – you need to know enough just to keep you away from dangers.

“You need to talk to others about it intelligently. For example, [a business] may be really good at their trade, but they may not be good at marketing. Learn about marketing to help make the marketing better.

“We encourage people to try to learn a little bit of everything that goes on in a business but they don’t have to be the expert in every single area.”

For more information about the SBAM’s services click here. Information about membership, costs and contact information can be found here.

Find the Small Business Association of the Midlands on Twitter and Facebook.

The Greater Omaha Chamber of Commerce, for example, is one avenue for area businesses searching for ways to increase success in the Omaha metro.  The chamber has an entire department devoted to entrepreneurs and works with the businesses to increase development by focusing on economic growth and on membership function.  Over 80 percent of the members are small businesses.

Tom Chapman, director of entrepreneurship and innovation for the Omaha Chamber of Commerce, said the Chamber serves three main functions when it comes to small business owners.  The first is connectivity.  The Chamber helps companies find the right customer or helps point the company toward finding customers.

The Greater Omaha Chamber of Commerce provides area entrepreneurs with a launching platform to get businesses moving in the Omaha metro.

“Instead of making hundreds of calls, we help businesses make the right one call,” Chapman said.  “This saves time and stress and gives time to focus on the business rather than wasting time on finding a customer.”

The second step is strategic positioning.  The Chamber helps these companies form a product and establish their base.  The goal is to find something new and innovative that is unique for the small business. This creates a platform for the company to build off of and grow. Businesses are also given guidance on changes that need to be made in order for success to occur.

The third step is finding peers within the business community to help mentor the new entrepreneur.  Establishing a network of business connections provides not only useful information to those starting out but it also provides education in improving success.  Chapman said the Chamber often works with the University of Nebraska in helping businesses find peers and mentors.

“If somebody walked in off the street and wanted to start a business, we help them find the next person,” Chapman said.  “It might be really important for them to meet with somebody with a business plan or a banker or whoever they need to help them move forward.”

Those interested in joining the Omaha Chamber of Commerce can apply online.  Once a member, the Chamber publishes the particular business’ information in a directory. The directory typically sees over 70,000 views each month. Also, members receive attention through special initiatives such as the Buy the Big O! Show and other events.

“Generally, most of our members are successful before they join and we help augment and accelerate that success,” Chapman said.

Those who seek the guidance of the Omaha Chamber of Commerce typically have stronger tools to grow a business but also maintain a business against other businesses by promoting competition.

“People who join the chamber are more likely to succeed than those who don’t,” Chapman said.  “The Chamber will help you make more money, save time and reduce costs.”

“Don’t be so quick to count out old-fashioned communication,” said John Moorhead, founder of the Grand-Island-based John Moorhead Marketing Group. “Networking today is different than it was back when I first started, back when it was all about collecting business cards and phone numbers. But I constantly kept that list of contacts in my phone, and when I started building JMMG, that’s how I reached out to people. Make sure to never burn a bridge if at all possible.”

For the past three years, Moorhead’s been growing his consulting firm into a coast-to-coast enterprise, working with clients in New York one week and collaborating with actors out Los Angeles way (including helping Drew Carey with a direct marketing project) the next. JMMG is also hoping to roll out Travel and Gather — a social networking tool that allows vacationers to broadcast their location, in case friends or family members happen to be serendipitously travelling through the same area — sometime in the next 12 to 24 months.

A contributing member of four startups to date, Moorhead builds his operation around solid networking acumen, the ability to make sure the right people from Column A get in touch with the right people from Column B. He’s worked with companies composed of only two members, and those boasting rosters 10,000 times that.

“JMMG started as a small thing, me just doing some professional favors for people I knew, and it expanded into me taking on other roles,” Moorhead said. “I’m not a designer; I’m not a web guy; I’m experienced in technology, but I wouldn’t call myself a developer. Instead, I network out and have a freelance staff take care of what needs to get done.”

And in line with his previous advice — that sometimes old tech is the best tech — Moorhead’s comprehensive approach to networking has allowed him to appeal to entrepreneurs who haven’t yet taken the online plunge.

“When you get out west of Lincoln, the idea of an entrepreneur can change pretty quickly – in the city, it’s about what’s cool, it’s about what’s 2.0, things like that,” Moorhead said. “Whereas out here, one of my clients is an eye doctor. He has several business ventures, he’s a strong, savvy entrepreneur, but he’s rarely online.”

However, Moorhead acknowledged emerging technology’s pivotal role in the modern marketplace, suggesting entrepreneurs try to find a balance between old and new.

“Naturally, every company is going to have to adapt,” he said. “Regardless of what you’re selling, most people have to travel every so often, and you have to get used to having technology that travels with you. If your company is still using desktop computers, I think that tells you something. Business today all but requires a laptop or cellphone – being able to get work done wherever.”

“In the past 12 months, I have been trying to network on a local level here in the Tri-Cities,” he added. “The biggest thing for people in central Nebraska is trying to collectively network and come up with a game plan. Not to compete with Omaha, but right now, we’re split as community, and I think there’s a real need to organize.”

“I like going to other events, but the only part I really enjoy is after all the speakers and formalities are done we finally get to meet new people in a chill environment,” Schroder said. “What I hope to accomplish with Startup Drinks Lincoln is to simply hook people up with advice, or help people find the partner they need, or help them with their idea, etc. It’s networking without all the BS.”

So, what does a Startup Drinks outing entail? The Facebook page for Lincoln’s event may say it best:

“What is Startup Drinks? In short, it’s a drinking group with a startup problem. If you’re looking for a low key, unstructured way to get involved in the Lincoln entrepreneurial scene, Startup Drinks is the ticket.”

After seeing an announcement for Startup Drinks Omaha, Schroeder started plotting a way to create a similar event in Lincoln. The two Nebraska gatherings are part of a global development, with similarly motivated assemblies cropping in cities as far flung as Toronto and Kuala Lumpur, Malaysia. Each new generation of entrepreneurs is tasked with modernizing the architecture erected by those who preceded them, and Startup Drinks appears to be one such tool in the arsenal of tech savvy young business owners.

“(The ubiquity of Startup Drinks) shows that younger people who are involved in the digital world and who are comfortable with social networking are slowly but surely taking over the business landscape,” Schroder said. “It’s been a longtime tradition in Silicon Valley that the young people are pushing the economy. Finally, the younger people in the Midwest are waking up and doing their own pushing.”

Like the debris from a detonated atom setting of an explosive chain reaction in nearby particles, the energy pulsing from one Startup Drinks event spurs the creation of several more. After reading about Schroder’s plans for Startup Drinks Lincoln back in February, Alexander Grgurich — part of Foundry Coworking, a low cost business incubator — was determined to set up Startup Drinks Des Moines. Along with two other collaborators, Grgurich successfully launched the city’s inaugural Startup Drinks session, attracting some 30 participants.

“It’s a really robust group,” Grgurich said. “A lot of times, networking events have a lot of big name people and it’s hard to identify with them. Here, we can focus on the startup culture. It’s nice to be able to talk to people and connect with them.”

Startup Drinks Lincoln will start Thursday, April 1 at 7:00 p.m. at Dino’s Eastside Grille, 2901 S 84th Street.

“Hopefully, there are other people feeling the same way as me, that there needs to be a group that has less formalities,” Schroder said.

Bo Fishback - Photo courtesy Kauffman Foundation

Bo Fishback, vice president of entrepreneurship at the Ewing Marion Kauffman Foundation, gave practical advice to entrepreneurs gathered at the 2010 Nebraska Summit on Entrepreneurship.

Fishback, who started his first company when he was 13 years old, said there are two things that matter disproportionately in a startup’s life: your market and your network.

“The importance of understanding your market cannot possibly be underestimated,” he said.

While great businesses start from great ideas, enthusiasm and passion, he said, it’s helpful to “step back” from your idea and really understand it. If you can talk about where you think your market is headed in the next five years with other people educated about that market, he said, you’ll increase your chances of success.

Video: Bo Fishback, The Big Picture

“It’s easier to get smarter about this stuff, to learn about what you’re getting into, than it’s ever been,” he said. “So don’t let that pass you by.”

In figuring out your market, you need to get granular, he said. Figure out the number of people who could and would buy your product. Multiply that by the price of your product. Multiply that again by the number of products you can sell to each customer.

“Period. There is no other such thing as a market if you are a startup,” he said.

Real, credible market information comes from customers, he said. You can start by finding one or two, buying them lunch, and asking them what would make their lives easier.

A ten-person survey of potential customers is worth more than any market research you can buy, he said.

Your network is probably the most important asset a founder can have, he said. Entrepreneurs must listen to everyone and decide who to follow.

“You have to live like a sponge and know which parts to squeeze out,” he said.

He said you should get a team of advisors all smarter than you in at least one definable area that can help your company succeed. Find at least one mentor who has previously done what you’re trying to do, he said. Get a world-class person involved early on who will attract others. Look for partners.

If you don’t go out and find them, they will not show up to ask to help, he said.

The Scott Technology Center’s incubator program targets cutting-edge, high-risk technology or engineering projects with promising economic outcomes and possibility for high growth. A targeted project’s potential market size might be more than $100 million, said Ken Moreano, the technology center’s executive director.

“There are companies that we’ve seen that are in the $20 (million) to $30 million type-market. And that would be nice to see something like that be successful; we’re not trying to dismiss that,” Moreano said. However, a company has room to develop and grow into a large market size like $100 million to $300 million, he said.

Commercializing these high-revenue potential projects can benefit the community with new wealth, interesting and innovative local jobs and home-grown technology companies, he said.

The Scott Technology Center helps incubate a promising technical idea from the research and development stage into an actual business or a young company into a more developed company. According to the technology center’s Web site, its mission is “To develop and facilitate the commercialization of emerging technologies while adding value to partnerships with industry, government and academia.”

The Suzanne and Walter Scott Foundation, a public, not-for-profit foundation, opened the Scott Technology Center about eight years ago near the Peter Kiewit Institute (PKI) south of the main University of Nebraska at Omaha campus. PKI, a partner of the Scott Technology Center, is a high-technology learning and research institute that educates University of Nebraska at Omaha information science and technology students and University of Nebraska-Lincoln engineering students.

The Scott Technology Center looks for those companies that can most benefit from its relationships with PKI, other academic institutions including Creighton University and the University of Nebraska Medical Center and technology and engineering firms, Moreano said. The technology center’s contacts include experienced entrepreneurs, CEOs, experts in research and development, angel investors and venture capitalists.

Providing contacts is one way the Scott Technology Center’s evolving incubator program might help a company, Moreano said. The technology center might find business leaders willing to lend expertise, match up businesses that could benefit from a strategic relationship, or introduce PKI student talent to a business needing technical employees.

In addition to mentoring and professional networking and collaboration opportunities, participants selected after an admissions process can get help in areas like commercializing the business, identifying possible funding, marketing and staffing.

“We’re a neutral entity. We get to know people’s businesses probably a little bit more intimately than … the general public or a competitor or somebody that’s maybe a paid consultant-type structure. Not that there’s anything wrong with that, but … again, we’re neutral. So we have a little bit more insight, I think. And we help connect people,” Moreano said. “It varies based on each company we work with.”

The application-review process includes an analysis of the technology, degree of innovation, background of the innovator or management team and the business model. The Scott Technology Center then begins discussions with likely candidates to determine if they are a good fit for the help the center can offer.

Incubator participants can either locate on the Scott Technology Center campus or participate virtually. Virtual participants in the incubator program receive business assistance while working at another location, which might be at another office space or in their garage or basement. On-campus participants receive additional benefits, including a subsidized office space, conference rooms, IP telephony, bandwidth, utilities and parking. In addition, participants can house servers and infrastructure equipment at a subsidized price in the Scott Data Center.

Businesses accepted to the incubator program, either virtual or on-campus, work out an equity agreement with the technology center, Moreano said. Historically, he said, the equity has been 1 to 3 percent in the form of a convertible option. If the company is successful and there is a liquidity event, the value of the option goes into the technology center’s “kitty” to help the incubator program assist other startups and young companies.

“But it’s mutually agreed upon. We’re not heavy-handed when we negotiate that.”

The Scott Technology Center’s motivation is to help a company be successful, Moreano said. One such success story, he said, is Proxibid, a provider of live webcast auctions.

“They’ve done quite well,” Moreano said. “They’ve got great leadership, they have really grown their business and they’ve really developed their market and their strategy.”

Moreano said the Scott Technology Center differs from other business incubators in how it is administered. He said most incubators around the country were developed by real estate companies working closely with institutions of higher education or grew directly out of a university research center. The Scott Technology Center is neither model, he said. Instead the center is under a nonprofit foundation.

The technology center’s governance is more streamlined than other similar incubators, which can result in faster decision making, he said. “There’s not a long list of people I have to go to to get approvals to move on projects,” he said. “‘Yes’ and ‘No’ comes rather quickly,” Moreano said.

The technology center’s Nebraska location also sets it apart from other incubators, he said. “The access to leadership is tremendous here,” Moreano said. The technology center can typically reach lead decision makers at both large and small firms and business groups in the community to get assistance with activities like advising, setting up a pilot or prototype and collaborating, he said.

“It’s typically a warm welcome in that conversation,” he said.

Moreano said the Scott Technology Center hopes to be a catalyst for development of an early-stage targeted fund that could be active as early as the second quarter of 2010. The fund would be active in equity investments in early-stage technology companies, he said. While the aim is to focus the fund on Nebraska, he said, it would not be limited to Nebraska investments.