Alliance Incubator Marks 20 Years

From the Charleston Daily Mail.
W.Va. small business incubator marks 20 years

George Hohmann
Daily Mail business editor



Thursday November 09, 2006
The Charleston Area Alliance is marking the 20th anniversary of its small business incubator.

Michael Aeiker, the alliance's senior vice president, said over the years the incubator has hosted 104 companies that have created an estimated 257 jobs.

The goal of a business incubator is to grow businesses and jobs. Aeiker said the incubator has not only succeeded in achieving that goal, it "has stimulated new life back into not only the old building known as the Charleston Hardware building but new life back into Smith Street and the area."

A start-up housed in the incubator receives flexible space at below-market rates that range from $200 to $580 a month. The rates include a package of free and low-cost services, ranging from the free use of several conference rooms to janitorial service provided by Charleston Janitor Service.

The low-cost space and packaged amenities allow entrepreneurs to focus on growth rather than bricks, mortar and administrative issues.

Alliance President and Chief Executive Officer Matt Ballard said the incubator "provides people with a transition space, from their home to the commercial market."

Outgoing Alliance President and CEO Bill Goode said about 75 percent of the incubator's tenants have succeeded in staying in business for five years or longer. Some, like American Geotech, Computer Care Inc. and U.S. Bearing and Power Transmission Corp., graduated out of the incubator and eventually bought their own buildings.

NGK Spark Plugs took some office space 10 years ago while its factory was being built in Sissonville. New Finishing Line, a company that makes auto care products, has an office it will maintain until it opens a manufacturing plant in 2008.

The incubator is in the same structure that houses the alliance's offices. In fact, the building at 1116 Smith St. has become a one-stop shop for small businesses. The incubator's current lineup of 17 tenants includes 14 small businesses and three agencies that assist small businesses: the Service Corps of Retired Executives, which offers counseling; the Regional Contracting Assistance Center, which offers federal contracting assistance; and a U.S. Department of Commerce office that offers import-export assistance.

Kathleen DuBois said she was working in Washington State a few years ago when she attended a conference and Harry Mills, a former alliance executive, told her about the incubator.

DuBois, a West Virginia native, said she wanted to return home. She made the move in March 2003, renting the smallest incubator office available for her company, Progressity Development Solutions. The company provides consulting services in marketing, public relations and fundraising.

Progressity has since moved into a 1,114-square-foot suite on the fourth floor. It is the first tenant to occupy space on the floor. Aeiker said eight other office suites on the fourth floor are available and can be built out in 30 to 45 days to meet tenants' needs.

In addition to access to business services like copiers and fax machines, startups that join Progressity on the fourth floor will notice new heating and cooling systems, a sprinkler system, an elevator, new restrooms and a spacious new fire stairwell.

All incubator tenants have free on-site parking, the use of several conference rooms, and access to the building 24 hours a day, seven days a week. The alliance even has some used office furniture that is available to tenants who need it.

Progressity's space is edgy with purple ductwork and green walls ("they're the colors in our logo -- green because we help clients grow; purple for the passion we have for what we do"); glass block windows; and concrete floors with large, colorful rugs.

The space was, in fact, designed to meet Progressity's needs. Hidden just off the front lobby is a kitchenette for the staff. DuBois' office includes a cozy meeting area.

"Being in a facility where the landlord really cares -- you can't put a value on that," DuBois said. "And being in a facility with other entrepreneurs is inspiring."

"Moving into this space has changed our whole business," she said. "It has given the company more credibility. And now our clients want to come here to meet with us."

Aeiker said, "My concept design for the fourth floor was to retain as much of the original brick, concrete and wood look as possible, giving the new suites a look that will be unusual for incubators. The loft-style suites add character, the exposed ductwork and its bright colors gives a much-desired look for young professionals looking for space as they start their businesses."

The space occupied by the incubator has grown over the years, starting with offices on the first floor and second floors. Renovations on the third floor, completed in 1988, added 14 offices. The 13,248-square-foot fourth floor was renovated at a cost of $568,857.

Goode said the incubator is self-supporting, in that the rents collected pay the operating costs. Entrepreneurs must submit a business plan before the alliance will consider renting space to them.

Tenants receive a one-year lease that can be renewed up to four times. Several tenants are designated as anchor tenants. Ballard said the anchors provide the incubator with a consistent revenue stream.

The incubator at what is now the Charleston Area Alliance was one of the first in the state. There are currently about six incubators operating in West Virginia, Goode said.

Contact writer George Hohmann at 348-4836.