Business Quarterly July 2018

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SIUSLAW NEWS |BUSINESS QUARTERLY | JULY 25, 2018

Business Quarterly Greater Florence Area

Hi, my name is ENTREPRENEUR Local entrepreneurs make their pitch in the first-ever Startup Weekend Oregon Coast

“Hi,

I’m Brad,” said Brad Attig, who provides alternative financing guidance to early-stage companies through the Oregon Regional Accelerator and Innovation Network’s (RAIN) Venture Catalyst Program. He stood before a packed house of entrepreneurs from up and down the coast and points inland. They were there for the first-ever Startup Weekend Oregon Coast, a production of Oregon RAIN, Lane SBDC, Techstars, City of Florence and Pure Organic Energy. “I call myself an ecosystem activist,” Attig explained. “That means I believe in doing as much as possible to help create innovative entrepreneurial ecosystems in towns and cities, in particular rural communities here in Oregon.” The event, which was held July 13 and 14 at Lane Community College Florence Center, brought together entrepreneurs and mentors to pitch initial ideas, form teams and see where their business creativity took them. The weekend, originally developed by Techstars, is similar to the TV show “Shark Tank,” but without the big startup cash and melodrama. “We’re going to be sharing a lot of ideas,” Attig said. “We’ll be working with each other, saying ‘How do we try this?’ There are no bad ideas. Be understanding that a lot of different ideas are going to come. We all have different backgrounds and ways of solving problems.” The importance of the weekend was driven home by Oregon State Sen. Arnie Roblan, who started off the program on Friday night. “The only hope we have is that we grow our own people who are entrepreneurial enough to hire one, two or three people,” Roblan said. “That’s where most of the jobs are in this country, and almost all of the jobs on the south coast. We need people who want to live in these wonderful places and have a vision and idea about building something.” And that something is a business, which the event looked to foster and, possibly, grow into an actual, thriving enterprise. “Good luck with this weekend, enjoy the learning opportunities and recognize that it’s never easy,” Roblan said.

Stupid Ideas Attig began the weekend with an icebreaker. He asked the audience to shout out adjectives and nouns. Ubiquitous, influential, engaging and cannabis were some of the word suggestions. Then Attig requested the audience break into small groups. Only one rule: participants couldn’t already know someone else in the group. This was about networking. The game was for the groups to make up a “half-baked, absurd” business idea with the shout out words. They had about two minutes to do so. The results? “Overstock for bridges.” Does your city manager want to buy the London Bridge, but can’t afford it? Come on over to Overstock Bridges, where we have the best deals on factory warranted bridges to help your city needs. “Lost cannabis.” Smoke too much premium kush and forget where you

Attig said. “Always be pitching.” The entrepreneurs began signing up to be a part of teams. Six out of the 12 pitches were chosen. They then worked for the next 24 hours on their project, market research and defining the business’ Minimum Viable Product (MVP). Attig defined that as, “What is the simplest thing you can go after a customer with, and say, ‘If this does this, will you buy it?’” The teams would learn how to go to market, what type of business model to make, how to make a pitch and, finally, pitch their idea in front of judges.

Story By Jared Anderson Siuslaw News

Final Presentation

PHOTOS BY (ABOVE) JOSH PURVIS AND JARED ANDERSON/SIUSLAW NEWS

Above, Oregon RAIN’s Brad Attig led the Startup Weekend Oregon Coast at Lane Community College Florence Center July 13 and 14. “I believe in doing as much as possible to help create innovative entrepreneurial ecosystems in towns and cities, in particular rural communities here in Oregon,” he said.

Entrepreneurs from RAIN’s coastal communitities in Lane and Lincoln counties attended the event, as did people from the Willamette Valley and other areas in Oregon. Groups formed over the weekend to take an idea and launch it into a full-fledged startup, complete with professional pitch and next steps for these new businesses. put your weed? We train dogs to sniff out and find lost marijuana so you can keep the high going all night long. “What did we learn from this?” Attig asked. “We made some new friends, we connected with people we didn’t know an hour ago. We realized that some ideas might really seem stupid to begin with, but there are ways to take a look at the market and the needs of people and come up with ideas that, actually, aren’t too bad, on the surface.” He didn’t suggest anyone plop down $5K to start one of these, but the problems that those stupid ideas solved may hold the seed to something greater. Next, the entrepreneurs were invited to pitch their real ideas to the room. The pitches with the most votes would move onto further development the next day.

60 Seconds “The anatomy of a 60-second pitch is, ‘Hi, I’m Brad. The problem I want to solve is ...” Attig said. After that, the entrepreneurs were to name the solution, then who or what they would need to get there, especially

someone to help market or engineer a product. They also had to mention the name of the business. The entrepreneurs began their pitches. “Hi, my name is Ivy. The problem I want to solve is caregiver burnout.” Her solution was adult day health centers, a place where those in need of care can temporarily stay to give the caregiver time to relax or to catch up on work. For those being cared for, they get a full day on their own. Her business, Second Home, needed help from caregivers and managerial experts. “My name is Randy. My problem is sidewalk advertising.” Randy said the sidewalk advertising industry is huge, with $9.6 billion in revenue in the last couple of years. But there are limits to how much physical space is available. “The problem is, it obstructs when it tries to attract,” he said. The solution? Airborne vehicles that travel on telephone wires from pole to pole with advertising, freeing up sidewalk space and enhancing the natural

atmosphere of the area. He was an engineer himself, but needed more to help develop the product, as well as people to make the products. One by one, a dozen entrepreneurs gave their pitch. A sigh of relief went across each face as they finished. For many in the group, it was their first time pitching an idea to a crowd. “How did that go?” Attig asked. “Nobody died, right?” In Attig’s mind, pitching is one of the cornerstones of an entrepreneur. “The more you pitch and talk about your idea, the easier it is to talk about it. You should be talking to people in line at the grocery store. Use it as market research,” he suggested. It also helps with networking. The more people you talk to, he suggested, the greater the possibility you’ll get someone interested in your idea and get them on board. “One of the biggest reasons a startup fails is because it doesn’t have the right team. They have the right idea, but they can’t get it going because they don’t have all the right pieces in place with a team,”

“Take a deep breath,” Attig said to the group as the entrepreneurs finally finished readying their presentations and prepared for the judges to walk in. The judges were Kate Harmon, program manager at the Lundquist Center for Entrepreneurship at the University of Oregon; Kimmy Gustafson, chapter manager for Eugene Starve Ups; and Jesse Dolin, central coast destination developer with the Oregon Coast Visitors Association. Reassuring the startups, Dolin said, “We’re like a big family here, so no stress.” He is himself an entrepreneur, with a business and new startup already under his belt. “What are the judges looking for?” Attig asked. “Validation. Did you get out and talk to customers? Are you actually solving a problem? Have you identified a target market? Who is in that market that has that problem?” They also looked for execution and design, and if the product is easy to use. Do the teams have a prototype? A brochure, a flier or a model? How would they market it? Of course, glamorous prizes awaited the winners of the day. Third place? The respect of being in the top half. Second place? A bag of coffee from Surftown Coffee Company. “It’s really good, from Newport,” said David Youngentob, Coastal Venture Catalyst for RAIN. The second-place team would also get feedback from the judges and would be automatically entered into one of two Coastal Pre-Accelerator programs in either Lane or Lincoln counties. “It’s a multi-week program to help you systematically refine everything,” Youngentob explained. “It will help with value propositions, business model, learning to build out team maps, how to think about going out to pitch on a more sophisticated level, and really have your A-game together.” First place? The pre-accelerator program, feedback from judges and a halfday deep-dive with the RAIN development team. The winner would also get coffee and a tie-dye hoodie. “It’s a good weekend for it, with the Oregon Country Fair,” Youngentob said. With the guidelines set, the final pitches began. See STARTUPS page 3

Final rate decisions released for Oregon 2019 health plans SALEM—Small businesses and individuals who buy their own health insurance can now see the Division of Financial Regulation’s final rate decisions for 2019 health insurance plans. The division reviews and approves rates through a detailed and transparent process before they can be charged to policyholders. The final decisions are based on the result of a rigorous review, which included public hearings and public comment. The division published preliminary decisions last month before the hearings. These hearings provided an opportunity for the public, health insurance companies, and the division to further review

and analyze the preliminary decisions. “Despite federal actions that continue to inject instability into our market, 2019 rates look to be even lower than initially requested,” said Insurance Commissioner Andrew Stolfi. “The positive effect of the Oregon Reinsurance Program provides relief for Oregonians and helps reverse some of the rate increases caused by actions at the federal level.” Open enrollment for 2019 plans is from Nov. 1 to Dec. 15, 2018.

the individual market with average rate changes ranging from a 9.6 percent decrease to a 10.1 percent increase. Under the decisions, Silver Standard Plan premiums for a 40-year-old in Portland would range from $415 to $486 a month. The final decisions include a 1.1 percent reduction of the preliminary approved rate of Providence, which was lowered from 10.6 percent to 9.5 percent due to updated loss experience data. Its initial rate request was 13.6 percent. The only other change was to Kaiser Foundation Health Plan. The inIndividual market dividual rate was adjusted slightly The division has issued final from an increase of 9.2 percent to decisions for seven companies in 9.4 percent. Kaiser’s initial rate re-

quest was 14.3 percent. The rate changes are company-wide averages based on premiums for plans before financial assistance through Oregon’s Health Insurance Marketplace is taken into account. All Oregonians who purchase their own insurance are encouraged to apply for assistance through the Marketplace for 2019, even if they did not qualify last year. In 2018, Oregonians who received help with the costs of their health insurance paid on average $138 a month.

the division has issued final decisions for nine companies with average rates ranging from a 4 percent decrease to a 7.2 percent increase. Under the decisions, Silver Standard Plan premiums for a 40-year-old in Portland would range from $295 to $387 a month. Final rates include significant reductions from the preliminary decisions for several plans based on updated loss experience data. Providence’s small group rates decreased from 8.2 percent to 3.9 percent. UnitedHealthCare Insurance Company changed from 9.4 percent to 7.2 percent, and UnitedHealthCare of Oregon was Small group market reduced from 8.9 percent to 6.7 In the small group market, percent.

In 2019, all carriers will maintain their current service area, and two insurers are expanding with Kaiser moving into Lane County and PacificSource moving into Lane and Yamhill counties. “We remain encouraged to see two carriers expanding into additional counties, and all carriers maintaining their current service areas,” said Stolfi. “We have done a lot of work to help steady the Oregon health insurance market, and continue to explore all avenues to help steady premium rates for Oregonians.” See HEALTH page 2

Siuslaw News’ Business Quarterly is a way to seasonally highlight local businesses and economic development updates. It will be published next in October. To advertise, call 541-997-3441. To submit, email pressreleases@thesiuslawnews.com.


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