Support hatching for local business incubator
BYLINE: By LAURA URSENY - Business Editor
Business incubators are not new animals, even around Chico. However, there's one under planning that has an unusual twist.
Still with no name or location, the incubator is coming out of Chico State University, with help from a graduating organizational management student who plans to stick around a while.
Daniel Buchner, 23, has been working over the past few months to hatch a business incubator through the university, but one with communitywide potential.
"I think it's been needed for a while. There's nothing comprehensive to take a business need for capital to the market."
A self-launched student entrepreneur with a "community networking" business called WiredCat, Buchner knows how difficult getting started can be.
But Buchner's idea for an incubator is more than a low-cost copier and desk space. It includes intelligence and counseling mentoring from educators and local, successful business people, ones who have been exposed to venture capital needs, hunted down legal help, and found answers.
Bringing that experience into the formula adds a dimension that's more likely to produce successful start-ups.
It's Buchner's hope that the incubator would be open to the entire community, although Chico State students are his original target.
"I'd love to see this happen by September. There are so many people willing to step in to help," Buchner said.
All the ideas are still dancing in Buchner's head, but he has been talking with a variety of people who like his ideas, including the university, the city, local businesses and Chico Economic Planning Corp.
Chico has been talking about the benefits of an incubator for years, and its benefits to the community are obvious, says CEPCO CEO Bob Linscheid.
"CEPCO's role is to take this from concept to reality," said Linscheid. "The number of times we've had conversations (about an incubator) are voluminous.
"I think we can be a little more nimble than the city or the university," said Linscheid, who said "bringing folks to the table" will be its role, not funding it.
While CEPCO is a 501(c)3, it may be able to help channel funding to the project.
"We're trying to create a culture of innovation and entrepreneurship here."
Also in support of the concept is Chico's economic development and redevelopment manager Martha Wescoat-Andes.
The idea of an incubator falls in line with what the city's economic development strategy includes, she said.
"If we want to be a place where seeding ideas come from Chico State, the community and Butte College, then we have to have different methods to do that.
"The main idea is to nurture ideas" that lead to baseline enterprises that draw sales from outside the area, she said.
Helping entrepreneurs is a key part of the city's strategy, so an incubator fits right in, especially with the mentoring aspect, she noted.
While funding the incubator hasn't been part of the discussion yet, the city's role is more of connecting people, she said, and being supportive.
Once a concept takes hold and grows into a business, the city can step in, when issues like land and infrastructure needs surface, she explained.
But it may be the human element that's most beneficial to Chico, she points out.
"Daniel's at a point (in his life) where he has the energy and time to invest in this concept. It's that kind of energy from that age group that we want more of in Chico," she said.
In January, the Tri County Economic Forecast Conference presented a speaker who pointed to the 25-to-35 age group as being a treasure trove for business development, having the ideas, the time and the ability to take risks that older entrepreneurs may not have.
"I really believe in this concept," said CEPCO's Linscheid. We have to capitalize on the affinity people have for Chico."
Bringing Chico State and Butte alumni back to Chico suits the city's strategy, he said.
Besides helping students grow their businesses, Buchner sees this as a way to benefit the community as well by keeping graduates here, drawing them back, and hopefully adding jobs to the economy.
Buchner admits his ideas have expanded an idea hatched by Chico State internship coordinator Ken Naas.
"One way for start-ups to benefit is to use other bright minds at Chico State," said Naas, particularly referring to the potential pool of interns and mentors at the university.
Naas said Buchner had a need for interns to help with WiredCat and the two started talking.
"In my gut, I think we can start out small and grow. If we get four or five people with cool ideas, who might need capital, we might be able to connect them."
Naas sees the potential as a partnership between the university, city, business and community. Because of a focus on free mentoring, the costs would not be extreme, said Naas.
Not infrequently, students come to Chico State with an idea for a business and refine it here, said Buchner, who came from San Jose, bearing an idea.
"This is one great way to get good companies into a pool. Maybe they're not ready for high-caliber venture capital, but we can groom them to get them to that point," Buchner said.
If there is a pool of qualified companies, with solid business plans ready to launch or moving ahead slowly, when money comes around there's someone ready.
As to the number of what Buchner calls "student innovators," there may not be a huge number, but it's a start.
Buchner can be reached for further information about the incubator by e-mail at dbuchner@wiredcat.net
Business Editor Laura Urseny can be reached at 896-7756 or lurseny@chicoer.com