Home ›

Nascent Services Business Plan (January 2009)

 

Nascent Services Company
 
 
 
 
 
 
 
 
Business Plan
 
January 7, 2009
 
 
 
Prepared By: Tom Falcone
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MOTTO
 
Grow wealth with ethics, values and stewardship
 
VISION
 
Recognized leadership and stewardship in the development of socially repoonsible ideas, perspectives and products from nascent sources
 
MISION
 
Partnering with aspiring entrepreneurs intent on developing ideas, inventions, innovations, products and services that advance civilization and are sustainable
 
VALUE STATEMENT
 
Nascent Services Company provides a wide range of free, or cost-efficient, services to nurture ideas and entrepreneurs that really can have a positive impact in industries, markets and society at large. Services will be provided in the following areas: project management, idea generation, idea screening, feasibility analysis, prototype development, organizational development, systems thinking, spatial/physical facilities (e.g., incubator, meeting rooms, broadband, secretarial, etc.), financing, training, “a shoulder to cry-on” and other start-up needs.
 
INTENTIONS
 
Nascent Services Company intends to be a sustaining not-for-profit organization that targets value-laden opportunities (e.g., that have a special value-base beyond sheer profit, such as being green, demonstrating social responsibility, improving efficiency, or appealing to justice, equality, liberty and community). Good, wholesome enterprises will be developed, and stewardship will be the guiding principle in helping grow organizations (cultures with positive values and strong, but balanced, beliefs will be nurtured). Operations will be Spartan and austere, yet state-of-the-art. A boot-strapping strategy will be practiced; whereby, growth is financed in early stages with limited seed resources that effectively yield successful revenue streams (basically, revenues from early sales grow the firms). Projects, partners, tenants and other participants and clients will receive a variety of free services (or minimally priced), and may even be provided grants and other kinds of nearly-free seed money; and if successful, profitable and sustaining, the projects, and their associated entrepreneurs, will then have explicit financial obligations to Nascent Services Company (e.g., royalties, equity, dividends and so forth – use your imagination on the kinds of fair and honorable contractual agreements that might be formalized). “Giving something back” will be a primary aspect of all success stories.
 
MASCOT
Indian
BUSINESS DESCRIPTION
Nascent Services Company (NSC) is a closely held family-company (partnership) headquartered in Indiana, Pennsylvania at 2560 Warren Road, which specializes in new idea commercialization. The primary goal is to turn good ideas into sustainable opportunities and start enterprises that can be profitably harvested. Entrepreneurship is the lifeblood of progress and social order in modern communities; and Nascent Services Company will uniquely serve the economic development of the Western Pennsylvania region by fostering a unique wave of creative thinking, invention and innovation. Far from philanthropic, the primary source of profit for Nascent Services Company will be its competency in developing sustaining enterprises; essentially by employing project management tactics and strategies that lead, coordinate and clearly add value to projects. Additional value-adding will arise from employing two dialectic sources of ideas for projects, inside ideas and outside ideas. Both inside and outside ideas will target socially worthy opportunities in specific opportunity areas (initial areas are defined below); but will come at them from different directions. Inside ideas will be generated inside the Nascent Services through the use of a variety of ideation and invention tactics (recognizing problems, dialectic approaches, un-shelving, think tanks, product extensions, product mixing, complaint analysis, etc.). Initially, the specific topic areas will be addressed by bringing teams of specialist together to brainstorm and explore possibilities, and then to either define projects or future steps in a managed invention cycle. Nascent will utilize highly sophisticated networks of participants with strong records of accomplishment and high levels of commitment. Outside ideas come from individuals outside of the Nascent Services organization. Nascent will develop processes to attract fringe ideas on target topics, from around the world. At the extreme, Nascent will seek outside projects from the little-guy with little credibility or experience, but with the dream or invention that comes from the maverick perspective and often is eccentric – in this sense,  Nascent Services Company strives to become the “American Idol” for entrepreneurship.
Nascent Services Company will initially be managed by the Falcone Family, more specifically, Tom Falcone. Tom Falcone was a faculty member in the Management Department at Indiana University of Pennsylvania (IUP) for nearly 30 years where he managed economic development activities like: incubators, SBDC’s, SBI’s, SCORE and so forth through his work as Co-Director of IUP’s Management Services Group (MSG). He retired 1/17/08 to manage his brain-child, which is a natural extension of his career in teaching, researching and economic development work (see resume on webpage at: www.nascentservices.org ). A special direction for NSC’s priorities and strategies also arises from Tom’s involvement with the Indiana County Solid Waste Authority, where he has been instrumental in growing recycling and other green operations from nothing in 1989 to a multi-million dollar operation, today.
Since Tom Falcone is spending his life’s savings and using the family’s facilities, the family is intimately included. Special operations, events and activities will be managed by Cathy Falcone; and Ryan and Shannon Falcone will help where needed, on a spot basis. Initially, the Board of Directors will be the Falcone family, specifically, Tom, Cathy, Ryan and Shannon. However, clients and others will be added as they enter the system with projects, and the Falcone family will gradually relinquish control. The intentions are to have a rather large board, as is typical in nonprofit organizations. Many faculty and staff from IUP will also regularly participate as volunteers, advisors or as employees; the diverse expertise at IUP, in particular, provides the capability to offer an array of services, assistance and advice. The 207 Olean Road location in Templeton, Pa. has 300ft2 of newly constructed incubator space designed to develop water recycling products (the first prototype currently under development is a recycling shower). Another larger incubator is planned for the 2560 Warren Road location, which will someday consist of approximately 3,000 square feet of incubator space and abundant meeting and administrative facilities (approximately 7,000 square feet, in total; the incubator is currently in the design phase). The facilities will provide a quiet ambience for inspiration and creativity. Limited lodging will also be available for the short and long term at both the Warren and Olean Road facilities.
 
 
MARKET
 
The market for nascent services is burgeoning. The economic catastrophe of 2008 signals the need for a new era of creativity for civilization, and America, in particular. No longer can modern society tolerate outdated products, organizations and systems that are inefficient, wasteful and unsustainable. Barrack Obama was elected on the promise for change; and change we must! Fresh opportunities are blossoming everywhere in modern markets that are looking for progress, new efficiencies and effective change. Entrepreneurship and innovation are growing more important as basic management strategies in this modern world. New kinds of entrepreneurs are emerging in every market sector in almost every society on this planet. The dream of starting and owning a business or coming-up with the revolutionary is as bright as ever in America, and is pervading the earth. The successful TV show American Inventor demonstrated the pervasiveness of the American entrepreneurial dream from coast to coast. The vitality of the dream of growing a business is at a peak. Entrepreneurship is seen by many as the basis of not only American, but all civilized progress. New and creative ways of supporting nascent growth are in vogue, especially for “good” and “socially responsible” purposes. NSC will specialize in providing consulting, networking, facilities and other cutting-edge services for social entrepreneurs and projects, especially in vital and strategic industries (e.g., valuable, strategic or underserved sectors and markets). The total NSC effort is designed to help entrepreneurs efficiently imagine, invent, assess feasibility and then rapidly grow good products, services and organizations.
The marketing mix for finding the NSC projects will be eclectic. The first projects need face-to-face interactions to attract teams from a network already in place (the first inside ideas relate to water recycling, which arose from a sewage permitting problem at the Olean cabin and deliberations on the problem with broad network connected to Tom). NSC will endeavor to attract stewardly entrepreneurs interested in new ways of organizing, committing-to and growing wealth. A variety of services will be provided and developed; but the primary services revolve around the ideals of “team-building” and “free incubation.”  In theory, the bootstrapping process (pulling one’s self up by one’s own bootstraps) needs some initial energy; then momentum takes over. Team-building and incubation are methods of priming a pump; nascent ideas generally need an initial and dependable input source (nutrients like: people, cash, inventory, equipment, facilities, etc.) to start the cycles of cash flows that keep it going. NSC proposes to prime the bootstrapping process with water recycling projects, arising from a team of committed engineers and specialists that donate much to the project.  The first water recycling project is a recycling shower that seems to be a product with some exciting market possibilities, and which is a natural first step in a line of zero-discharge products to recycle household gray water. A network of excited partners has joined the project in 2008. Future inside projects will be organized around experienced team members with the resources and management acumen to hit full stride quickly.
Later strategies will focus on outside projects. One approach to attract outside projects will be to prospect for applications. Applications will be acquired through targeted advertising, business plan solicitation on hot topics (see examples of topics below), networking contacts, the local SBDC, etc. Outside projects will be screened mostly on the basis of the quality of the planning process and the character of the applicants. Participating outside candidates will be mentored and subsidized in a nurturing environment, using the cadre of professionals from the water recycling projects, or new resources from the growing network.
A number of incubation competitors exist in the market, but none currently propose to target socially redeeming sectors with an inside and outside strategy, nor do they endeavor to nurture the entrepreneurs in the intense and focused way that NSC will (e.g., the extensive use of open-source techniques, the development of a growth culture and so forth); nor do current competitors have the goal of providing free and noble services. NSC will be able to manage important projects that come from fertile and aggressive sources! Nascent has a conceptual edge and a clinical system that is able to efficiently and effectively provide state-of-the-art facilities, infrastructures, processes and a fantastic network throughout the early growth cycles so critical to start-up success. Furthermore, an essential follow-up service will include a range of financing options that can support even the “gazelle” growth that epitomizes entrepreneurship success. I predict that the most important competitive advantage of NSC projects will be the honorable intentions that drive their vision.
 
 
PROJECT MANAGEMENT CONCEPT
 
Each entrepreneurial idea will be treated as a project, and systematic project management mechanisms will be used to effectively manage “inside” and “outside” projects through rapid growth stages. Project teams will be formed from family, friends, colleagues, civic leaders, public officials, administrators, students, entrepreneurs and other committed participants willing to risk volunteering a lot to change the world.  Teams will meet regularly (most coordinating communication can be electronic, but face-to-face meetings are imperative) to set objectives, deal with problems, do the work and whatever else is necessary to help move the idea toward commercialization.   Projects will have budgets and be treated as profit centers, and a champion will guide each project, and document the efforts in a way that ensures openness, inclusiveness and transparency. All projects will also be integrated with all other ongoing projects through some kind of open source network that ensures genuine sharing and coordination.
 
 
SERVICES AND PRICING
 
The service and pricing mix of NSC endeavors to be as efficient, green and free as possible. Inside projects are expected to assemble ample resources and management talent to move quickly and adapt. Outside clients are expected to be poor or perhaps destitute, but still capable of contributing (we will also accept the well-off social entrepreneur, but they probably don’t want us). Both categories of clients will coexist in the communal, incubation environment. As much as possible, resources and talent will be shared as part of the deal of getting a lot of value for little or nothing. Thus, stewardship and self-sacrifice must pervade the organization and sub-organizations (projects). Austerity, efficiency, recycling, reuse and environmental sensitivity will be guiding principles considered in all activities, and projects that cut down on waste, inefficiency, pollution, costs or are otherwise “green” will be given priority. A partial list of services that will be provided and their estimated costs includes (When I say free below; it doesn’t mean free forever. Extensive or long term services will have to be under a clear contract. The contract can be as informal as a witnessed handshake or it can be as formal as a notarized document. In the contract, there will be some kind of claim to future ownership, cash flows or profits):
 
  • Incubator space (free, may have to share)
  • Management assistance (free)
  • Engineering and shop work (priced at cost)
  • Infrastructure connections (free or at cost)
  • Meeting and lodging facilities (some free, others ranging from $80/day for rooms to $500/day for the whole facility)
  • Concept development (at cost)
  • Prototype development (CAD, shop engineering, etc. at cost)
  • Focus groups (free to $1000 each)
  • Training seminars (free to $1000 per day, $600 per half-day)
  • Food services (at cost)
  • The Systems Thinking Society of Western Pennsylvania (SSOWPa -TBA)
  • Specialty services (mostly free, but varies):
1.      Experimentation
2.      Pure R&D
3.      Searching for questions
4.      Free thinking teams (face-to-face, virtual, master – mostly sponsored topics)
  • Free online entrepreneurial hotline (answering questions, maintaining open discussions)
  • Open-source venues
  • Use your imagination
 
 
INITIAL INCUBATOR TOPICS
 
When an “inside” project is initiated or an “outside” client joins, it is with the explicit understanding that this is not a typical start-up experience. Projects have their own identities and unique vested interests, but are also joining a team of bootstrapping stewards bent on a larger vision of planting enterprises in opportunity-rich industries; industries that beg for more efficient, less wasteful and generally more noble ideas. Participants are expected to be a part of an open and sharing environment. Participants are expected to share resources, information and imagination for the larger joint efforts; this will mean participating in meetings, corresponding and joining the interchanges. And of course, participants will often have contractual obligations that reflect the spirit of the communal relationship. 
 
Closed Infrastructure Systems for Residential Homes
Research, discussion, dialogue, deliberation and solicitation will be undertaken for ideas and products that will change the way residential living is polluting, is environmentally damaging, is energy inefficient, or otherwise not optimally meeting civilized human needs (e.g., self-contained or circular water or sewer; electric off the grid, low-energy heating, waste reduction and so forth). High-efficiency, green and zero-discharge systems are ideal product concepts that will be explored and pursued for commercialization. For instance, a past SEA client had the idea that he could manufacture and market a residential solar-generator for household electricity based on Sterling technology; and the first inside project described below relates to zero-discharge gray-water recycling.
 
Personal Transportation Products
Research, discussion, dialogue, deliberation and solicitation will be undertaken for ideas and products that would replace or optimize personal transportation (e.g., autos, motorcycles, bicycles, golf carts, Segways, etc.). For instance, I’m currently brainstorming (with former clients) a solar-powered or multi-powered golf cart that may have a variety of unique safety and functional features, and be most environmentally friendly. I’ve also been interested in a concept automobile I call the “City Car.” The “City Car” is initially conceived to be a light0duty vehicle for the urban family; it has the following features: economy, safety, non-polluting, comfortable, simple, advanced drive-train and suspension, innovative and integrated.
 
Inside ideas
The “inside” ideas will be developed by a variety of interactive techniques, using experts and passionate participants. We may even try to “buy” some problems that exist. Ideas will be developed in a variety of ways, and then screened and either dumped or moved quickly toward commercialization (a series of “go” “no-go” iterations). The first inside idea is a recycling-shower.
 
Outside Ideas
The “outside” ideas will be attracted in a variety of ways. In particular, a marketing mix will be developed with broad and deep reach to seek proposals (webpage, networking, media advertising and conferences will be the initial focus). The request for proposals (RFP’s) will be designed to attract the broadest and deepest perspectives; sure that means a lot of bad ideas and quacks; but that’s part of the deal.   An efficient screening process for conforming business plans and proposals will be vital to success. As Tim Wilson (a co-author on various economic development publications) told me, “You’re going to have to kiss a lot of frogs.” The Nascent team will learn how to kiss them quickly and find the real princes. Initially, most projects will be “inside” in nature, but eventually a balance is desired, because a goal is to deepen the entrepreneurial spirit.
 
 
THE SYSTEMS SOCIETY OF WESTERN PENNSYLVANIA
 
            The Systems Thinking Society of Western Pennsylvania (SSOWPA) is a social organization bent on learning about organized systems, and ultimately creating better organized systems. Systems thinking (e.g., see Peter Senge, The Fifth Discipline) is a fundamental orientation that will be used to inquired about organizational issues. Systems thinking relative to organizations, and especially entrepreneurial organizations, will be researched studied and debated in any way possible. Systems thinking will underlie the management undertakings of NSC, and the knowledge gained from its work will be shared with the community in publications and shared-files. Systems thinking is a highly integrated approach that is particularly useful for envisioning and managing the burgeoning nascent-organization.  Training, networking, inquiring and publishing will be facilitated through the Systems Society of Western Pennsylvania (SSOWPa). A nominal membership fee will connect members to newsletters, workshops, think-tanks and other events. SSOWPa will be governed by a board constituted of academicians, practitioners, students and other avid systems thinkers. A regular schedule of events will be established beginning in late 2009 and activities will be integrated into the NSC website. The society will be operated on a break-even basis.
 
 
PHYSICAL COMPONENTS
 
During phase I, the primary physical components will be put in place at 207 Olean Road in Templeton, Pa. A 300ft2 workshop/water recycling laboratory was completed in December 2008, which will serve as the initial incubation and R&D facility. The new building will be leased by NSC for $1 per year for the first years (this period will amortized the leasehold improvements; thereafter at a fair market rate for rent will by negotiated). The new facility will be designated, “Returning Waters”. The cabin at 207 Olean Road (along the Mahoning) also has space for meetings and creative interactions like think-tank sessions. The combined facilities will be Spartan, but contain state-of-the-art incubation infrastructure. Utilities, communication, Internet and so forth will be the best available.
As the water recycling success grows at the cabin, attention will shift to building a 3,000ft2 incubator at 2560 Warren Road. The vision is to turn 2560 Warren Road into an incubation campus. The campus will provide a rustic atmosphere with a comfortable and cozy ambience and culture; yet, it will be close to IUP and other key network partners – a place for top-caliber learning, creative thinking, team-building and problem solving. The view is spectacular, the walking trails are natural, the putting green is fast, the parking is ample, there is privacy, the digs are refreshing and stimulating, and the service capability is limitless. An environment will be created for intense thinking, learning and organizational development. The nurturing ingredients will be in place for true entrepreneurs to imagine, test and commercialize their ideas.
 
 
ORGANIZATIONAL ISSUES
 
Nascent Services, Inc. will endeavor to epitomize the collegial model; whereby teamwork and inquisitiveness flourish in an open and sharing environment. Individual confidentiality for projects will be balanced with the larger vision of stewardship, and order will be maintained with inspirational projects, visionary leadership and a clear code of ethics (To be finalized in 2009). Commitment, not conformity, will be explicitly promoted; and participants will be motivated to be open and hard-working stewards. Both “outside” and “inside” enterprises, although independent, are expected to sacrifice for the team, while at the same time willfully growing up quickly so that they can leave the nest - quite a contradiction. All forms of enterprise will strive to mirror a “Learning Organization,” which espouses the tenets of efficiency, community, freedom, virtue and truth. Systems will be strategically developed for information sharing (open-doors, spontaneous meetings, bulletin boards, chat rooms and open-source computer techniques, as well as resource sharing (like equipment, personnel, space, access, etc). In the beginning, informal norms will govern the decorum, but there must be more rules as the success grows.  Meetings, research, recruitment and efforts will be coordinated around topics and projects so that emerging energies will synergize around mutual needs and interests (e.g., imagine three entrepreneurs working on self-contained/closed systems that would replace traditional residential utilities; one focusing on electric, one on water, another on sewage and another on solid waste, and working together on a sub-project to coordinate the four systems with wireless technology; or a group of entrepreneurs attacking different levels of novel supply chains to make polymers from recycled plastics which will be used in different personal vehicles – imagine the possibilities).
A separate Advisory Board (or Sub-committees) will be established to aid in developing criteria for selecting and implementing “inside” projects and “outside” proposals.  They will help manage the whole operation.  Much is going to be expected of both “inside” and “outside” project team members. Everyone will be expected to genuinely coordinate energies to get things done effectively and selflessly. A variety of informal structures and processes will be particularly needed in the nascent stages; but the greatest needs will be for trust and transparency.  When all else fails, the General Manager, Tom Falcone, will facilitate intervention.
 
Basic team member (investors to tenants) requirements will include:
·        Genuine partnering attitude and predisposition
·        Willingness to attend regular meetings
·        Willingness to open financial statements
·        Not secretive
·        A team orientation
·        A keen sense of collegial partnering
·        Willingness to accept and work toward specific goals
·        Openness to continuous evaluation of progress
·        Adherence to a code of ethics agreement
·        Willingness to use open source venues and other shared technology
 
An entrepreneur’s orientation is to have better ideas, not bitter ideas!
 
First Project Organization (Water Recycling)
            The first project is to develop water recycling products at the cabin at 207 Olean Road in Templeton, Pa. A 300ft2 workshop/laboratory has been constructed to build water recycling prototypes and eventually house the waste water systems for the cabin. The facility has unique infrastructure to support water recycling experimentation and product development. Currently, the development work is focusing on a recycling shower.  The idea to develop water recycling products arose from the problems associated with getting a sewage permit at the cabin.
 
 
            The previous owner of cabin at Olean Road was involved in an acrimonious and expensive lawsuit with DEP (over permitting of an Eco-flow sewage system at the cabin). The previous owner had spent over $50,000 to design an Eco-flow system (basically uses peat moss), and then on the legal fight with DEP to get it permitted. Roamer has it that DEP spent nearly double that. In any event, when Cathy and I bought the cabin, we quickly dropped the lawsuit, but the sewage problems were far from over.
In discussions over the years with Steve McGraw, we often pondered the possibilities for eliminating the traditional septic system and recycling the water (We worked together on solid waste recycling, and naturally discussed the extension to liquid waste). We thought there might be some real opportunities associated with the idea of zero-discharge. Our discussions were strictly theoretical and hypothetical; that is, until the problems with the sewage at the Olean Road cabin emerged. Faced with the problem with sewage at the cabin (it’s a small lot perched on a hill overlooking a high-quality stream with a variety of neighbors, some of which hater the previous owner); Steve (also Dave Houser who was the lead engineer) and I began to explore possibilities.
            DEP was adamant that the only option was a SFTF (small flow treatment facility), which would basically filter the sewage, chlorinate or UV the effluent and then dump it into the Mahoning. This option didn’t appeal to me, my family or the Stiffler-Mcgraw team. DEP’s adamancy, hostility and inflexibility also waved a red flag to the entrepreneur in me. Cathy was particularly appalled at the lack of options given be DEP. They just said that we were going to have to custom-design the SFTF, and then pass it through an onerous and uncertain permitting process. The system was so customer unfriendly that there had to be market opportunities.
Dave Igo became a committed teammate in early 2008, and immediately changed the whole chemistry of the project. I had been working with him to start his own business and he feel in love with the idea of water recycling. He quickly drafted his version of the components of a gray water recycling system, and he has been a real leader in the project ever since; especially since the death of Steve McGraw (8/3/08). Shortly before Steve’s death, Steve, Dan Igo, Dave Igo and I met at IUP’s incubator to plan our strategy for developing water recycling products. We had decided to proceed with building a workshop/laboratory at the cabin on Olean Road to develop the water recycling products; even though DEP was adamantly opposed to the idea. Steve went on an extended vacation with his family, and was gone in two weeks. We mourned with family and friends, and renewed our enthusiasm for the project.
            The movie “Kelly’s Heroes” provides the model of organization for this project. In the WWII movie, Kelly (Clint Eastwood) discovers information from a captured German officer about millions in gold in a bank just beyond enemy lines in western France. Kelly gathers a motley crew that endeavors to break through enemy lines to get the gold. The basic organization formed is a lose hierarchy, with Kelly as the leader; but everyone has a say in the decisions, everyone risks it all and everyone must keep-up to get there share of the reward. This is not a perfect metaphor for how this project is organized (e.g., Steve may not be there to see the success, but his interest will be carried there; and there are and will be other differences); but Kelly’s Heroes provides a good example of the kind of fluidity and self sacrifice perceived to be necessary to commercialize this idea with this team of entrepreneurs.
 
To this point in time this is a rough accounting of contributions and pay:
 
            PAY
  • Tom and Cathy Falcone have basically shouldered the financial burden for the project. To this point the direct payout to the team from them is as follows:
  1. Stiffler-McGraw ($2,000, 3/31): Dave Houser research and prep, preliminary planning for cabin sewage alternatives - $2,000 forgiven. Future billable work must be approved ahead of time.
  2. Cleverbuilt ($350): to Bud Mcgregor for plot plan designs and other design contributions. Future billable work must be approved ahead of time.
  3. IAS/Cleverbuilt ($900): to Dave Igo for research and technical contributions to the project. Future billable work must be approved ahead of time.
  4. Cleverbuilt($2,548, December 08): wiring of laborarory and preliminary wiring of recycling shower
  5. Workshop/Laboratory construction ($31,000, 2008). All costs have been paid by the Falcones on behalf of Nascent Services as leasehold improvements. As compensation for leasehold improvements by Nascent Services, the Falcones lease the facility to Nascent Services for one dollar per year for the first five years (2009-2014, plus a portion of any profits – to be determined). At the end of the five years, the leasehold improvements will be completely amortized, and a new agreement will need to be enacted.
 
CONTRIBUTIONS (Contributions are obviously hard to price at this stage of the project. Team members have been asked to keep track of there contributions with the promise that an accounting will be done shortly. I hope to call a meeting to strategize for the project and do this accounting at the beginning of the year. Below is my perspective on contributions to this point.
·        Tom Falcone has taken the responsibility for managing all aspects of the project. He has personally invested over 2000 hours into this project in 2008. He has hundreds of hours of physical labor in rebuilding the spring, excavating the site for the workshop/laboratory, constructing it and doing all kinds of work and management to achieve final inspection on 12/17/08. He has also spent hundreds of hours planning and coordinating activities; lining-up work, ordering materials, delivering materials, dealing with contractors and everything else needed to bring a project to completion. He also has spent hundreds of hours researching topics related to water recycling or anything related to it. Hundreds of hours have been spent in wrangling with the DEP, Madison Township and the political bureaucracy in general. Dozens of meetings with team members individually and collectively have been done. The Green Building Alliance grant application took about 40 hours of coordinating and writing. Tom lived the project in 2008. He has also borne the costs of the initial proof-of-concept recycling shower prototype.
1.      Recycling shower cost: Pump($342.65), Aqua Sun filter ($375.00), shower($100.00), Tankless heater ($137.50), Msc. Plumbing ($100.00) –Total Cost is approximately $1,000.
·        Stiffler-Mcgraw (an engineering firm from Holidaysburg, Pa.) was the original partner with me on this project. Steve McGraw, the President of the firm, was instrumental in encouraging me to go beyond the theory of recycling water, and to begin to imagine it from an engineering perspective. He confirmed the feasibility of moving through a series of steps to actually build water recycling products. He assigned Dave Houser to visit the cabin on Olean Road and to undertake the initial research that got this project off the ground. Steve’s  steady technical guidance kept me confident, focused and patient. His contributions will remain a part of this project as long as it exists. His colleagues at the firm (Tim Cooper, Todd Banks, Dave Houser and JoeWinslow) have willingly picked up where Steve left off. They met with me in the early fall to address designing the roof for the workshop/laboratory, with Joe getting design to me in days, and they did all the work as a contribution to the project. The company is a bit outside its mission in working on this project, but remains committed to the new business of product development.
·        IAS/Cleverbuilt (a start-up electrical engineering company from Saltsburg, Pa.) came enthusiastically into the team in early 2008 in the person of Dave Igo. He brought with him a high-tech perspective (particularly wireless and voice-activated technologies), a lot of inspiration and a network of close friends and family. His brother Dan, has attended meetings and made design suggestions. Bud Mcgregor did the plot designs for the building permit. But it has been Dave who has lead in helping to get the construction completed as well as leading in the design of the gray water recycling systems. His initial design for the cabin gray water recycling system will be tested once we get the ok from DEP.
·        Steve Markovich is the son of my lifelong friend, Tom Bobick. He is working on his doctorate in chemistry at WVU. He joined the team in October because he is interested in the idea of recycling water. He has provided some insights into the BOD problems associated with the recycling of black water and gives cutting edge perspectives to the many water recycling problems we will face.
·        Mike Martin is a co-owner of Gregory-Martin, a plumbing and heating business out of Derry. He has been our plumbing and heating contractor for several years, and is a close childhood friend of Cathy. He and I have talked informally about water recycling and other entrepreneurial products over the years and he shown an interest in working on the water recycling project as well as other projects in the future. He has lots of product ideas and has the heart of an entrepreneur. He has volunteered to help set-up the floor heat in the workshop/laboratory and help evolve the recycling shower.
 
 
 
TIME LINE
 
February 09: Water recycling shower market prototype
 
March 09:   Showing product around
 
April 09: Start work on final water recycling prototype, begin considering construction of incubator building at Warren Road
 
June 09: Begin soliciting outside ideas, develop other water recycling ptoducts, have acceptable sewage system to temporarily service cabin
 
August 09: Begin marketing recycling shower and prepare for manufacturing
 
December 09: Commercialization of recycling shower, First outside idea undertaken
 
March 10: Begin construction on Warren Road incubator
 
June 10: First Warren Road incubator occupancy
 
January 11: Break-even
 
 
 
START-UP BALANCE SHEET
 
 
START-UP ASSETS
 
Workshop/Laboratory leasehold improvements                                 $30,000
Tools and small equipment                                                                     5,000
Lawn tractor and implements                                                                 4,000
Cash                                                                                                        2,000
Water Recycling Prototype                                                                    1,000
Total assets                              $42,000
 
START-UP LIABILITIES & EQUITY
 
Leasehold improvement loan to Falcones                                            $30,000
Working capital loan to Falcones                                                          12,000
 
Total Liabilities & equity         $42,000                     
 
 
 
 
 
SOURCES AND USES OF FUNDS (Phase I)
Sources:
  • Personal investment                                                       $42,000
 
TOTAL SOURCES                                                        42,000
 
Uses
  • Working Capital                                                                12,000
  • Leasehold improvements                                                   30,000
 
TOTAL USES                                                                   42,000
 
 
 
OWNERSHIP (100 partnership shares)
 
Cathy Falcone       30 shares
Tom Falcone         30 shares
Shannon Falcone   10 shares
Ryan falcone         10 shares
Treasury shares     1000 shares
A portion to the poor (20 shares)
 
*Shares will be diluted as tenants enter (e.g., successful companies will get treasury shares in Nascent), and shares in new companies will become part of the picture for Nascent. The partnership agreement is forthcoming.
 
 
 
 
EXAMPLE OF FREE INCUBATOR AD
 
Free incubator in Indiana, Pa. Commercialize your ideas with the advantage of free space, free utilities and free service. Go to www.freeincubator.com (not yet operational) and see the details for applying.
 
 
WEBPAGE INFORMATION
 
The webpage is an essential part of Nascent Services’ organization. It contains relevant information about the firm and is a vital communication tool for project and other endeavors. The webpage was developed by Digital Razor (Mike Krug and Mike Burkett).  The webpage is the primary mode of communication for the enterprise. The webpage has a variety of features to facilitate openness and communication efficiencies. The webpage employs innovative features based on open-source concepts that aid in information sharing among projects and other activities. It also displays this business plan, Tom Falcone’s resume, many stories and blogs and a forthcoming book (Imagining the Entrepreneurial System), and whatever is necessary or aids enterprise development.
 
 
MANAGEMENT SERVICES GROUP NETWORKING
 
The Management Services Group (MSG) at IUP provides a wide range of services to entrepreneurs and small businesses. Tom Falcone has been Co-director of MSG for fifteen years, and is closely aligned with IUP’s MSG personnel. NSC will partner with MSG in a variety of ways to provide a full range of free, or low cost, services to incubator clients (the new MSG brochure will be attached later).
 
 
 
OTHER INVESTMENT
 
Other investors will be solicited to infuse cash or create seed-funds for the burgeoning projects and enterprises. Investor funds will be managed by a Board consisting of investors. The basic goal will be to quickly produce a positive cash flow.
 
Seed fund:
An initial seed fund of $50,000 is proposed. The seed money will be granted conservatively, with the average grant being less than, $10,000. To become an original partner (shareholder) in the venture capital fund, a cash investment will be required. The initial investment will be pegged at $5,000 (thus, no single investor is too dominant, nor is any single investor exposed to high potential loss). Falcone family members will start the investing (Tom/Cathy, Ann/Tom, Ryan/Shannon will invest the first $15,000, three of the initial 10 shares). Another seven investors will be solicited from local and regional contacts. Investors share proportionately from whatever profits are gleaned by the clients receiving the grants (payback details will vary). An investor committee (ten members) will meet as necessary help review investment proposals and to advise the Board on investment and disbursement matters. The goal is to have a diverse set of bold investors that can efficiently and effectively evaluate proposals and back the process of entrepreneurship with some quick cash. The initial intentions are to make this more like a rolling fund that grows to hundreds of thousands of dollars in four or five years; rather than a source of windfall profits to the investors, the entrepreneurs or Nascent. I’m looking at the Falcone portion as much like a donation to a good cause, with the expectation to keep rolling it over. Nevertheless, these valuable resources will be carefully managed, and clear accountability systems will be placed in the agreements, with formal obligations carefully crafted.
 
PHASE II PLANS
Phase II is the next step in a longer term and more aggressive growth strategy. As projects are successful, more space will be needed to experiment, inquire, debate and develop ideas. The campus at the Warren road location will be expanded considerably. Some projects under consideration include: guest rooms, larger conference facilities and more incubator space. Phase II is targeted to begin in 2011 and will require construction of approximately 20,000 square feet costing approximately $300,000. The project will be financed primarily through the profits of successful enterprises. Also, in phase II, a second floor is planned on top of the workshop/laboratory. This room would be a bedroom with complete facilities for testing different products like toilet papers, shampoos, soaps, etc. for their recyclability and greenness.
 
 
 
 
 
 
2009 PROJECTED PRO FORMA INCOME STATEMENT
 
Revenues:                                                                                                  
·        Grants                                                                           $5,000
·        Royalties                                                                               0
·        Consulting income                                                       25,000
Total income                                                                                       30,000
 
Expenses:
·        Prototype development                                                10,000
·        Travel/Marketing                                                           6,000
·        Maintenance                                                                   2,000
·        Utilities                                                                           2,000
·        Equipment                                                                      3,000
·        Vehicle                                                                           2,000
·        Miscellaneous                                                                 3,000
·        Professional services                                                     15,000
·        Depreciation                                                                    6.000
Total expenses                                                                                   49,000
            

                  Net income (loss)                                                          ($19,000)