The Ann Arbor Chronicle » Mike Score http://annarborchronicle.com it's like being there Wed, 26 Nov 2014 18:59:03 +0000 en-US hourly 1 http://wordpress.org/?v=3.5.2 Column: Opportunities, Even Now http://annarborchronicle.com/2009/02/03/column-opportunities-even-now/?utm_source=rss&utm_medium=rss&utm_campaign=column-opportunities-even-now http://annarborchronicle.com/2009/02/03/column-opportunities-even-now/#comments Tue, 03 Feb 2009 10:00:04 +0000 Mike Score http://annarborchronicle.com/?p=13010 Even in down economic times, there are opportunities – I’m seeing this in my work with the local food, agriculture and natural resources sectors. In fact, in some cases the economy that is hurting so many of us is making it possible for new businesses to find surplus equipment and commercial real estate at incredible discounts relative to prices of just a couple of years ago.

It’s all about perspective. I can remember a time, just a couple of years ago, when there was a high level of consensus among economists and analysts. Unemployment was much lower then, and the stock market was strong. I even heard of people borrowing money from the bank to purchase stocks with the firm belief that they couldn’t lose. The same view of the marketplace convinced people to purchase highly priced real estate based on the belief that the escalation of land and property values would extend far out into the future. Experts, analysts, and lay investors all said the ink blot looked like a bull.

So, here we are in 2009. Most people have become very conservative when it comes to spending and investment. News reports offer the interpretation that people are building cash reserves based on the possibility that they, too, could join the ranks of the unemployed. U.S. government institutions are pouring cash into the marketplace because we, the consumers, will not. As we watch the government fill the gap that has been created by our sudden frugality, we can gain an appreciation of just how affluent we used to be and what it looked like to the rest of the world when they watched us transform our paychecks into consumer goods. Spending during the fourth quarter of 2008 clearly illustrated that the spending spree is over for now.

The question is, when we look at the marketplace now, is there consensus that the ink blot looks like a bear? Surprisingly, the answer is “no.” Only in a capitalist economy could plummeting asset values increase the flow of adrenaline within certain sectors of the marketplace. At any point in time there are businesses which are doing well and those which are not. Businesses with strong cash reserves have been snatching up assets at bargain prices. Also, employees in the marketplace motivated by fear, anxiety, or optimism are planning and launching new ventures.

Washtenaw County communities and individual entrepreneurs can gain and learn from innovative initiatives in nearby communities. In Detroit there are two emerging bakeries, formed by faith communities, designed to create jobs for people coming out of prison through the production of baked goods.

On the Rise Bakery is affiliated with the Capuchin Soup Kitchen of Detroit. What started out as a project that used soup kitchen facilities during off-hours has blossomed into a new standalone bakery. Down Home Cookin is a project of New Creations Community Outreach. Joseph Williams, executive director, turned from life as a drug dealer, went on to earn a master’s degree from Wayne State University, and now works to help others make successful transitions from prison life to full community participation. His bakery focuses on production of sweet potato pies and pound cakes using traditional African-American recipes.

Church congregations have lent strong support to these ventures, purchasing baked goods to meet their needs as consumers while also investing in the rebuilding of broken lives. Michigan has approximately 50 prison facilities in addition to local jails. Jail and prison populations have been chronically high, resulting in budget overruns and a revolving door phenomenon that is often cited as unacceptable. Starting effective vocational centers through new food system ventures housed within the private sector is a cost effective, mutually beneficial strategy for meeting needs of regional consumers and of those coming out of prison. Starting new ventures of this type will never be more affordable.

Cooperative business structures are relatively uncommon in our region. People’s Food Co-op in Ann Arbor and the Ypsilanti Food Co-op are two examples of successful local cooperative ventures. During difficult economic times, normal business overhead expenses can become deadly to otherwise healthy enterprises. That’s why several emerging businesses have approached Calder Dairy, a strong and respected food system landmark in this region, to experiment with the formation of a marketing cooperative of sorts.

The emerging businesses gain strength by associating with Calder’s brand recognition. Calder gains the advantage of being able to add a roster of new products which are not widely available in regional grocery stores. Participating businesses include Bizzy Lizzy Bakery, Tiger Bakery, and Gwen’s Cobblers. This approach to business improvement keeps all participating ventures responsive to consumer needs and interests during a period when costs of innovation need to be closely managed.

Mike Score, an Ann Arbor resident and agricultural innovation counselor with the Michigan State University Product Center, can be reached at score@msu.edu. The MSU Product Center provides existing businesses and emerging food system entrepreneurs with business counseling services. MSU is an affirmative-action, equal opportunity employer. MSU Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.

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Column: Saga of a Food Entrepreneur http://annarborchronicle.com/2008/12/11/column-saga-of-a-food-entrepreneur/?utm_source=rss&utm_medium=rss&utm_campaign=column-saga-of-a-food-entrepreneur http://annarborchronicle.com/2008/12/11/column-saga-of-a-food-entrepreneur/#comments Thu, 11 Dec 2008 18:20:24 +0000 Mike Score http://annarborchronicle.com/?p=9579 Ann Arbor is considered a regional hub for food system entrepreneurship. Along with an incredible diversity of grocery and restaurant businesses, Ann Arbor attracts a large collection of emerging ventures. As an agricultural innovation counselor with the Michigan State University Product Center, I help entrepreneurs get their products to market, and I’d like to highlight some of these ventures to provide insights into both entrepreneurship and the potential of developing our local food system.

Most people have considered starting their own business. As an educator who helps people develop and launch food and agricultural businesses, I meet budding entrepreneurs daily. Food businesses often emerge from playful experimentation in home kitchens. Barbeque sauces, salsas, and fruit preserves are fun to make. If, after making a batch and sharing with friends, a hobbyist receives encouragement to try turning their curiosity into a business, they call someone like me to guide them through the process of discovering whether their great product can lead to a profitable and satisfying new venture.

Two years ago, I met Erik Olauson from Hillsdale, Michigan at a food entrepreneurship conference. We sat next to each other during one of the conference presentations. During one of the breaks, he introduced himself to me and mentioned that he and his wife, Sheila, had developed a flourless gourmet cookie and that they were committed to making a career from baking, marketing, and distributing their goods.

Liking cookies as I do, a couple of thoughts came to mind immediately: “What is a flourless gourmet cookie?” and “I wonder how they taste.” I didn’t have to wait long to satisfy my curiosity. Erik pulled out a sample from his briefcase and offered me a taste. Erik then explained that the recipe substitutes oatmeal, peanut butter, and other ingredients like flax seed for flour to create a high fiber, moist, rich cookie.

He also explained the reasons for choosing to go flourless came after lengthy research into the effects of white flour on our overall health. They decided it was worth the effort to eliminate the product from their cookies for the health of us all. However, they did not stop there. They add goodies like oversized dark chocolate chips and Michigan cherries to bump their products comfortably into the healthy dessert category.

Bizzy Lizzy Cookies really are satisfying. Color, texture, and taste rise to the expectations of cookie connoisseurs. Add to the good product the fact that Erik has worked as a professional chef and Sheila is a professional speaker, author, and media personality who focuses on healthy eating and etiquette, and their dream of becoming successful food entrepreneurs sounds believable.

Still, there was hard work ahead of them in their quest to enter the marketplace. For starters, Erik and Sheila were so fixed on the cookie itself that they spent little time thinking through issues related to packaging and presentation. If you order a gourmet cookie from a coffee shop, it is displayed on a nice platter under carefully designed lighting to highlight the cookie’s best traits. To sell in a grocery, however, packaging was key in distinguishing it from ordinary flour-filled cookies that line store shelvesThe color scheme and graphics on the box needed to clearly communicate that the ingredients inside are exceptional.

In their earliest stages of development, Bizzy Lizzy Cookies were packaged in clear plastic envelopes. Plastic wrapping was functional in that it kept the cookies fresh and allowed consumers to see the product. But generic plastic sleeves did little to introduce these baked goods inside with the prestige and panache that an exceptional cookie like this deserved.

With a little persuasion, Erik and Sheila convinced a family friend with a background in graphic arts to help them complete a packaging makeover. Bizzy Lizzy Cookies are now in stunning attire. The six-sided box fits nicely into retail displays. The color scheme screams, “Delicious Dark Chocolate Chip Cookie Inside!” Text on the box tells the story behind the product. Using a clever name like “Bizzy Lizzy” makes Google searches easy. The information on their website is interesting and well presented. 

With a great product in hand, Erik and Sheila have been traveling the roads of southeast Michigan, meeting with grocers and giving out free samples at farm markets and food shows. Their products have been featured in several publications, including The Ann Arbor News and Edible Wow. The Produce Station in Ann Arbor was the first retail outlet to stock the cookies. This month, Calder Dairy will add Bizzy Lizzy products to their home delivery menu, providing more than 1,700 regional consumers and several retail outlets a convenient method for placing orders.

The last step of successfully launching this business depends on actions of regional consumers. Bumping sales up to a level that will sustain a vibrant food business will require that consumers walk into their favorite retail outlet, ask for the product by name, buy the cookies when they show up on the shelf, and continue to buy them occasionally or frequently based on their preferences and variable levels of self control. Bizzy Lizzy is looking for retail outlets and distributors that will help their business respond to growing consumer demand for their premium flourless cookies. Erik and Sheila just rented a kiosk near Sears in Briarwood Mall. They are hoping to capture holiday sales and to increase consumer awareness of their products.

Mike Score, an Ann Arbor resident and agricultural innovation counselor with the Michigan State University Product Center, can be reached at score@msu.edu.

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