No previous experience working in a restaurant, check. No previous ownership of a franchised business, check. Unfamiliar with new geographic region, check. Unaware of eventual natural disaster, check. Oh, and wife pregnant during relocation and startup, check.

If ever there were a list of when not to take the entrepreneurial leap, it was compiled by Andy Gross. That was six years ago. Now, Gross is working on another list — five Buffalo Wild Wings Grill & Bar locations up and running, and two more opening within a month, plus a recently completed expansion (adding 2,100 square feet to an existing 6,700). He has committed to a total of 12 locations, with the potential for 15 in a territory that stretches from Davenport to Daytona. In addition, he has signed on for a new concept, called Smashburger, intent on building up to 20 such restaurants in Central Florida. (The signature burger is smashed on a grill to seal in flavor.)

In the searing heat of the restaurant world, that's like jumping from the frying pan into the fire. Yet, for Gross, leaps of faith are becoming about as routine as whipping up an order of Grilled Chicken Buffalitos, one of the favorites on his menu.

And to think Gross was a software engineer whose life revolved around creating patents before all this craziness began. He began his original career 18 years ago in Arizona before moving in 1995 to Colorado, where he “worked lots of hours and did lots of traveling.” Mostly, he realized, he was doing all that work for somebody else.

No particular moment drove him to change — just the steady gnawing feeling that a brighter horizon beckoned than what he could see from his Denver office. So, with few preconceptions about what lay ahead, he began his search.

“We [he and wife, Laura] actually just started driving around and looking at things and going, ‘Would we want to do that?’”

Hitching his wagon to a casual-dining sports-themed eatery such as Buffalo Wild Wings was far from his initial thoughts. Although he certainly enjoyed a sports bar atmosphere well enough, smaller operations, like sub shops or ice cream parlors, seemed better fits. After he and Laura had looked around for a few weeks, though, his uncle, who had run several businesses, made the suggestion. Even better, he offered financial help. That prompted Gross to drive about 30 miles from his home, outside Denver, to see one of the restaurants firsthand. He left duly impressed: “I could hang out there, I thought. I could own this.”

The idea of (saucy) wings took flight.

That was in 2001. The next three years weren't an easy ride. First, upon negotiating to open Buffalo Wild Wings sites in Denver and completing the requisite financials — including having a minimum of $800,000 total net worth per restaurant unit — Gross received word that the Minneapolis-based franchisor had decided to open corporate-owned restaurants there. “They kind of threw us for a loop,” he recalls. Gross could walk away or explore sites elsewhere. Since he was already qualified financially, he chose the latter.

Then there were the questions of where and when. Regarding where, no “aha” moment, again, occurred to seal his fate — just ample sunshine, inviting neighborhoods and the enticement of Central Florida's demographics, which matched the franchise's youthful customer profile. Not coincidentally, the name of his Longwood-based company is Sunshine Restaurant Group Inc.

As for when, wife Laura held all the cards. Pregnant, she simply demanded that any relocation happen before her final trimester. “As much as anything, that drove my timeline to get here,” says Gross, who had flown to Orlando about eight times, looking for housing and restaurant sites. “She wanted our son [Ryan] to be born in our new house.”

Such are the types of cloaked details behind any entrepreneur's startup story.

And there was still another chapter. Call it Summer 2004, authored by Charley, Frances and Jeanne. The first two hurricanes hit while the first Buffalo Wild Wings restaurant was under construction on International Drive. The third hit the week after it opened, promptly closing it down. “We definitely had our struggles in the early days,” he says.

Gross, still only 39, can smile a bit more easily these days. Since opening that first restaurant in September 2004, his Sunshine group has exceeded industry and Buffalo Wild Wings franchise standards on numerous financial metrics. In the five-year period from late 2004 through 2009, annual sales increased from $2.7 million (2005) to $14.2 million. The employee count grew tenfold, from about 40 to about 400. And the five restaurants served more than 3.3 million guests.

Most notably, even in the deep recession of 2009, Sunshine showed sales growth of about 3 percent, compared to the Orlando-area chain restaurant store average of about minus-10 percent. Sunshine’s average unit volume was 16 percent higher than the chainwide average, with sales increasing during the year by 37 percent. Eighty employees were added, and construction commenced on the two new units, one in Kissimmee (10,500 square feet) and the other in Clermont (9,600 square feet). Also, during its third anniversary party last October, the Buffalo Wild Wings in Waterford Lakes had the seventh-highest daily sales ever for any restaurant in the 27-year history of the chain, which has 650-plus restaurants.

“My hat's off to him,” comments T. Michael Ansley, president and CEO of Diversified Restaurant Holdings Inc., which operates 16 Buffalo Wild Wings in the Tampa area and Michigan, with 22 more to build. “Everybody wants to retire and go open a franchise in Florida. He's been able to do it very successfully.”

Heady success, for sure. Yet, Gross isn't ready to anoint himself Mr. Restaurant. Instead, with his engineering roots, his recipe for success lies in analysis, assessment and execution. He isn't afraid to roll up his sleeves and dive into a batter of breaded wings — yes, he's done that during a Super Bowl. The preference, though, is to focus on employee procedures, the fine print (not necessarily on the menu) and other minute details.

At the same time, he acknowledges what he doesn't know and sees the benefits of having an open mind. That attitude, in fact, is what drew him to Buffalo Wild Wings. Upon his characteristic scrutiny, he became impressed with the backgrounds that the franchisor didn't have. “Basically, the entire executive team wasn’t restaurant people,” he says. “They knew they didn’t know restaurants. They understood their piece of it. They weren’t there to run a restaurant; they were there to run a restaurant business.”

What the franchisor did offer was support. And the eatery's lively concept didn't hurt, either.

Typical support encompasses everything from site selection and floor plans to preapproved suppliers and a restaurant-opening training package. Additionally, Buffalo Wild Wings’ startup and ongoing training programs teach franchisees and their staff about running a location, including the preparation of menu items; effective food service operations; hiring and personnel management; and marketing, promotions and public relations.

The restaurant concept, meanwhile, is all about casual dining, including finger foods, chicken dishes, salads, burgers and full-bar drinks, presented in an atmosphere that is highlighted by large-screen TVs and dozens of smaller monitors broadcasting sporting events, with a series of National Trivia Network consoles mixed in for entertainment. The alignment of tables and chairs allows customers to easily group together or isolate themselves as desired.

Picture a dressed-up college hangout with enough polish to attract patrons outside the typical male, ages 21 to 35, sports bar set. And the place is especially geared toward big sporting events. During February's Super Bowl, his five restaurants sold 75,000 wings (50,000 of which were bone-in), both dine in and take out.

“You can ride their success,” Gross says of good franchisors. “Obviously, put your own spin and your own flavor to your stores, and you can build the brand locally. But you have that large corporation, doing their job, helping you out.”

At a cost. Since the time when Gross needed $800,000 per unit, the price has edged upward. “They’re not cheap to do,” he concedes. “It’s not a little sub shop; it’s expensive.”

Money isn't the only consideration, advises Gross, ever the analyst, who graduated from Penn State in 1992 with a B.S. in computer engineering and first worked at IBM. “To me, being a franchise is just a piece of a whole big puzzle. You have to put your whole business plan together. If your business plan and what you’re trying to do makes sense to be part of a franchise, and your business plan is acceptable to [the franchisor], that’s when franchising makes sense. If your business plan makes more sense to do something on your own, then that’s the plan to follow.”

Gross has immersed himself in the franchise. He handles the day to day, as well as locating sites, negotiating leases, overseeing construction — and making “lots of wings.” “I like to be involved,” he offers. “I know what it’s like. I know what my people [his employees] go through; I respect it. It’s a lot of work.”

Not only is Gross part of the franchise, but in some instances he's helping to drive it. He is chairman of the Buffalo Wild Wings National Franchise Association and a national director of the Coalition of Franchisee Associations, along with serving on the board of directors of the Central Florida chapter of the Florida Restaurant Association. “I haven't [seen] the passion and enthusiasm from anybody like him in a long time,” comments Christy Williams, executive director of the National Association Management Group, which manages the Buffalo Wild Wings National Franchise Association. “People want to participate but just don't have the commitment to put in the time because of their business obligations.”

There is more to come, too. The franchise agreement with Smashburger calls for him to develop and operate 20 Smashburger “better burger” restaurant locations in Central Florida over the next four years. Three of them could be open by year end. Turning promoter, he says, “Once you try a Smashburger, you’ll understand what everybody is raving about.” Sprinkled across the country, Smashburger is the newest retail concept funded from the private equity and concept development firm Consumer Capital Partners, based in Denver.

Clearly, Gross isn't planning to slow down — maybe just relax a bit. And this time, there was an epiphany.

Near the end of last year, Gross left town to attend a board meeting of the Coalition of Franchisee Associations. He recalled a year earlier, when he continually had to monitor his restaurants. “I don’t like being surprised,” he notes. Not this time. No such “check in” was necessary. “I now believed that my team could run this,” he says.

“You get the right people in place. You keep them and you keep them motivated. That’s how you build a business.”

That moment came on the heels of a successful opening, in early 2009, of his Casselberry restaurant, which finished the year among the chain's top locations nationwide in sales volume. The pieces, even if maybe on wings and a prayer, had fallen into place.

Not bad for a software guy who sought something new, building from scratch in an unlikely setting.

Still sounding very much like an engineer, he explains that the operations of the business are what excite him. And he makes this confession: “It was never my idea to work in a restaurant.”

5 Franchisee Musts

1. Choose something to own that you are passionate about. As with any business, the franchise you choose will be a major portion of your life. It’s important to own a company you enjoy.
2. Look at franchises that other successful franchisees are looking at as well. Successful franchisees are successful for a reason — they have picked winners in the past. Follow their lead.
3. Examine detailed financials provided by both the franchisor and a few of the franchisees. A franchisor’s role is to sell franchises and thus will present the best possible situation. You can verify their pitch by examining a few of their franchisees.
4. Choose a franchise that has shown a track record of success. This should be a given, but many times a potential franchise owner will buy into a good sales pitch or something that sounds like a good idea.
5. Look at the assistance provided by the franchisor for training, marketing, operations and other items. A good franchise will have multiple programs to help its franchisees succeed.

Over the years, many established companies have neglected to introduce change when their tried-and-true methods of doing business became ineffective. Failing to understand the need to evolve and instead sticking with obsolete strategies has led to unmitigated disaster for these organizations.

Think RCA or Montgomery Ward.

When Rick Goings became chair and CEO of Tupperware Brands Corp. in 1992, the company was headed down this slippery slope. Its headquarters in Orlando was up for sale and the year before had suffered $100 million in losses. The problems ran so deep he seriously questioned his judgment in taking over such a troubled operation. Goings asked himself how the mighty could have fallen so far. After all, Tupperware had been a direct-marketing and storage container giant for decades.

Starting in 1946 — when Earl Tupper introduced his innovative line of plastic home products and pioneered the direct-marketing strategy with the Tupperware Party — Tupperware grew to become a household name throughout America. With the onset of the post–World War II baby boom, women dedicated themselves to caring for their families. The “Tupperized” kitchen was born — a well-organized place that featured a variety of Tupper’s versatile, convenient containers.

Through the years, the company enjoyed great success because it had no competition and a built-in marketing force of stay-at-home moms who saw the party sales method as an appealing career. In the 1970s, though, things began to change. More typically, women got out of the house to work full time, and competitors like Rubbermaid started to cut into Tupperware’s market share by offering cheaper knockoff products.

That’s the challenge Goings faced upon his arrival.

“Every business model works until it stops working,” says Goings. “The old business model wasn’t working anymore, so we quickly had to change the corporate attitude from ‘Let’s pretend it’s still the 1950s’ to ‘Nothing lasts forever.’”

Global Approach

As a longtime global executive with Avon, Goings came to Tupperware with a keen understanding of why the world keeps changing and how external forces, such as new technologies and products along with the modernization of cultures, dictate that companies either evolve or die.

Tupperware needed a sustainable, competitive advantage to get itself back in the game. Goings realized the company could do this by differentiating its products, but it first had to contemporize them. Deciding that he wasn’t going to compete with Rubbermaid, he instead went upscale by introducing new product categories, including kitchen tools and gadgets, cookware, food-preparation items, cosmetics and microwave cooking technology.

“We also needed to create a new type of selling dynamic,” he adds. “The old Tupperware Party was designed in the 1950s, when the American family was a different entity. Today, our parties are more interactive and entertaining, but we’ve also expanded our direct-selling demographic to include emerging markets around the globe.”

More than anything else, this strategy has put Tupperware back on track.

Goings, a self-proclaimed globalist, began implementing this strategy in 1994. Today, 54 percent of the company’s sales come from places like China, Russia, India, Indonesia and South Africa. Sixteen years ago, Tupperware was an American company that limited its international reach to places such as Canada and Australia, because the people who lived there spoke English. Now, it’s a conglomerate that reaches nearly 100 markets across the world.

“Tupperware’s direct-selling business model allows it to expand into emerging markets with relative ease, and to update and refresh its product portfolio in developed markets on a regular basis to keep its distributor force energized,” says Douglas Lane, managing director of equity research for Jefferies & Co. in Boston. Lane has performed equity research coverage on Tupperware’s stock for the past seven years.

“Another unique feature is its ability to provide a healthy income opportunity to people in emerging markets, particularly women who may not otherwise have much of an opportunity to independently make a living,” he adds.

One of the reasons Tupperware was able to successfully integrate into these markets is the diversity of its management teams, whose members are similarly international. Having a diversified workforce gives the company the experience needed to decide which regions are best to target, Goings believes. The criteria: markets with limited retail infrastructure and limited earning opportunities for women. Calling it a “boots-on-the-ground approach,” Goings credits his management teams with knowing where to go.

On a recent trip to India, he learned that only 30 percent of women there are employed and that two-thirds of them are underemployed. “These women are looking for business [opportunity], and we’re providing it for them,” he says. “As she [the Indian woman] goes out and sells products, her confidence and influence grows. We’re not just selling products, but we’re changing lives one at a time.”

The strategy of taking an independent contractor who has no experience in direct marketing but who has a strong desire to establish a business, and providing that person with free training and the tools necessary to succeed, has enabled Tupperware to reach out to women around the world.

As Tupperware personnel interact with different cultures, they’re realizing that women, regardless of where they’re from, basically care about the same things. Friends, family and personal development all represent high priorities. Goings reflects on a speech he made in Mumbai, India about Tupperware’s mission, model and mindset: “It wasn’t rah-rah stuff. We were talking about the women they are and the women they want to become.”

Adapting to Cultures

One might ask how high-end products can sell well in emerging markets. Citizens of developing nations spend most of their money on food, clothing and shelter, explains Goings, so if the company can show people how to save money on food preservation, it becomes a logical priority for them.

Understanding cultures and adapting products to sell to those cultures is something Tupperware has mastered in recent years. In Latin America, for example, women spend 20 times more on beauty products than on any other Tupperware product line. As a result, the company expanded its product base to include a portfolio of beauty and cosmetics brands. Sales have been strong, driven by the continued strength of the Mexican, Central American and South American markets.

In India, a plastic container paired with a spoon has become a "masala keeper" for spices. In Korea, stain-resistant canisters are deemed perfect for kimchi fermentation. Larger boxes are promoted as safe, airtight "kimono keepers" in Japan. In Mexico, thermal “tortilla keepers” keep fresh flatbreads warm and moist. The company also diversified its product line to encompass cookbooks and baking products in France.

“We don’t change people’s eating habits,” says Goings. “We just create products that best complement cultural preferences.”

Not coincidentally, Tupperware now has more than 1.9 million independent consultants. And the company ranked No. 2 for the second consecutive year in the Household Products Category of Fortune’s recently released “World’s Most Admired Companies” list. Already boasting strong 2010 sales and profits, the company has been relatively untouched by the economic downturn, partly because most of its business comes from high-growth overseas markets while high unemployment has boosted its sales force, which is paid on commission.

“They’ve changed their corporate culture to reflect the environments in which they operate,” comments Ray Gilley, president of the Metro Orlando Economic Development Commission. “They’ve helped millions of people around the world become successful entrepreneurs; they’re a unique and fascinating company.”

Community Partner

The biggest piece of the puzzle for Tupperware over the past two decades has been its focus on people. The company mantra: “If we can recruit, develop and empower the best people, we will flourish as a company.” The idea is that together they can create the new strategies that give the company a sustainable competitive advantage and create a corporate culture that never allows a letup whether they have a good year or a bad one. “We have a warrior culture here,” acknowledges Goings. “We have a ‘Bring it on’ attitude. If the economy is bad, we’re committed to figuring out how we can work around it.”

This type of fighting spirit closely aligns with the company’s community service outlook. Big believers in civic involvement, Goings and other executives have developed a culture where people accomplish great things by their actions, not their words. Tupperware’s community is the world, so its community service is global.

“Tupperware is a very responsible corporate citizen,” says Gary Cain, president of Boys & Girls Clubs of Central Florida. “They’ve empowered women across the globe, and they take a real interest in a variety of women’s and children’s causes.”

Notably, while Tupperware has focused on the needs of children from less-advantaged circumstances, it has been involved locally with Boys & Girls Clubs. The company also conducts a vigorous United Way campaign and involves its employees in many issues of importance to the local community. “This dedication to community is based on the company’s commitment to personal growth and development,” adds Cain, “as well as a sincere interest in helping people achieve their dreams and aspirations.”

Tupperware’s reputation alone helps market the Central Florida region to other top businesses around the country, as well. “Tupperware has helped us with creativity and recruitment efforts,” says Gilley. “Company representatives relate their experiences in Orlando to others, and they talk about the opportunities that exist here. For them to be engaged like this helps us showcase the region as a global player, and we’re very appreciative of that.”

Indeed, just as Earl Tupper’s early plastic products revolutionized food storage and preparation, today’s Tupperware products continue to enhance lifestyles. And, while the world will continue to change, it’s apparent that Tupperware will continue to evolve right along with it, using a modern approach to marketing and global outreach to achieve company goals.

“Great businesses use successful formulas,” says Goings, “and they give people the tools they need to do well regardless of experience or education.” Or change.

Dawn Gluskin gave birth to a baby girl. Seven months later, she founded SolTec Electronics. Today, clients rely on her to deliver what many competitors can't even find.

Dawn Gluskin has always been a focused, determined, career-minded individual. Yet, the truly defining moment in her professional life actually occurred two years ago, when at the age 31, she gave birth to her daughter, Calista, an experience that changed her perception of the way things ought to be. And out of that cathartic moment a wildly successful entrepreneur emerged.

With her maternity leave all planned out, Gluskin took a few weeks off from her job and then started working part time from home to take care of both her work and her parental responsibilities. She worked as much as she possibly could and delegated any extra tasks to some of her co-workers. Her employers, entrepreneurs in the semiconductor industry, were totally agreeable to this arrangement, they said, as long as she held up her end of the bargain. They were totally agreeable, that is, until the plan actually was put into place.

As timing would have it, Calista was born right at the start of the current economic downturn. As Gluskin’s employers started feeling the crunch and saw revenues declining, they put enormous pressure on Dawn to get back to work and produce out of the office. You couldn’t blame them: She was one of their top sales reps, and they needed her back to help their bottom line. She was uneasy, though, due to feelings stemming from her core instincts: She had just given birth to a tiny baby girl who needed her mother, and she was determined to spend time with her, knowing she wouldn’t be her little baby forever. She didn’t want to miss out on a cherished life experience “to go right back to making somebody else a bunch of money!”

On the other hand, she felt it could affect her career if she didn’t get back in the saddle as her bosses wanted. It was a classic dilemma, and she was torn.

In the end, she felt so inspired and motivated by the experience of becoming a mother that she immediately soured on the idea of working for others and playing by their rules. She became weary of being a gross-profit statistic on somebody else’s spreadsheet. Life, she now believed, was worth more than that.

Having dabbled in, and thoroughly enjoyed, some entrepreneurial music promotion and sales adventures earlier in her career, Gluskin knew what she wanted to do and immediately began writing a business plan to carve out her own niche in the electronics sector. Approximately seven months after Calista was born, her mother officially turned in her resignation and SolTec Electronics was born, in her living room, with the gracious help of her mother, who took on the role of nanny.

The rest, as they say, is history.

SolTec Electronics, headquartered in Melbourne, is an independent distributor of obsolete and hard-to-find electronic components. By definition, an electronic component is a basic electronic element usually packaged with two or more connecting leads or metallic pads. Components are normally connected by soldering them to a printed circuit board to create an electronic circuit with a particular function (e.g., an amplifier, radio receiver or oscillator). Components can be packaged singly (resistor, capacitor, transistor, diode, etc.) or in complex groups as integrated circuits.

In today’s fast-paced supply chain markets, original equipment manufacturers (OEMs) and electronic manufacturing services (EMSs) must keep their production lines up and running. This means that waiting long periods to get components and redesigning out obsolete components aren't valid options for them. Enter SolTec Electronics— an independent distributor that offers strategic procurement solutions to those electronic component issues.

Under Gluskin’s leadership, the company has a 2,500-square-foot office and warehouse facility, seven employees and a stellar reputation among clients and peers. The company is also on track to secure $1.5 million in revenue by the end of this year.

“I understood the need for these services,” says Gluskin, who has been in sales and marketing since she was age 18. “There are a lot of high-tech companies in this region, and they’re constantly looking for components. So this was a perfect place to start this type of operation.”

It may have been a good place to open shop, but the risks of starting a new business still loomed large, even for Gluskin and her unbridled entrepreneurial spirit. Although a successful sales rep in the industry, she had no clue how to open and run a business. Thus, learning the entire operation was imperative to her success.

Raising capital also represented a daunting challenge. It was impossible to get a bank loan, so she used her entire 401(k). Her husband, Dave, who is the company’s vice president of operations, also went for broke. Together, they used their entire savings and maxed out their credit cards to get the operation off the ground. “I guess I believe in the no-risk, no-reward axiom,” she says, “but the truth is it was very scary, especially with a newborn.”

It was a calculated risk, and one that Gluskin was willing to take because she recognized her strengths. She felt confident her sales background was a sufficient platform for moving forward and making SolTec a success. The unlimited supply of potential clients also was something that was too provocative to overlook. Reality dictates that components on circuit boards eventually become obsolete or defective, and when these parts need to be replaced, it’s often very difficult to find them. For the OEMs and EMSs, buying new replacement parts is not an option because redesigns are too time consuming, so unless the older parts are secured, entire production lines can go down and products don’t get to market.

Gluskin understands this, and she continues to work hard to establish strong relationships with vendors throughout the world to be able to find any component a client might need. With her global network of suppliers, she can find a part “as long as it exists.” If the part doesn’t exist, she offers alternate solutions. She also works with affiliate companies to offer value-added services to clients such as electrical testing, product programming, counterfeit detection and compliance testing.

To ensure delivery of a component, she often buys inventory of canceled product lines to stock in the warehouse in case a client needs a discontinued part. Indexed on Google, SolTec receives lists of everything various vendors have in stock, and those lists are uploaded and published on the SolTec Web site. If a buyer is looking for a part number, he or she can type it into this index and SolTec will come up.

“Our customers are usually repeat customers, which is good,” comments Gluskin. “We have competitors, but some don’t have the same quality standards or aren’t good with customer service. We try to set ourselves apart by being prompt and delivering what we say we’re going to deliver. This seems simple, but it’s so important for any business. Customer service is everything.”

Clients would agree.

“Dawn is the best in the business,” says Daryl Grimes, product manager for Smart Start Inc. in Irving, Tex. “She’s very open and upfront, and it’s easy to do business with her because you know what you’re getting is her very best effort.”

Smart Start produces ignition interlock products, which are essentially breath alcohol analyzers that keep drivers with DWIs/DUIs from operating vehicles if their breath alcohol level is over a preset level. The devices provide a cost-effective alternative to jail or license suspension and allow defenders to keep driving. “It’s a very unique product,” explains Grimes, “so we need to find very particular components in a timely manner in order to keep our product line going. We use many overseas distributors, and lead times with them tend to be very long. So we call on Dawn to go out and find the parts from alternative channels, and she always comes through.”

Smart Start is a midrange company competing with big boys like Motorola and Sony for these materials, and distributors tend to favor the bigger companies when it comes to putting their needs first. “Having a broker who can get you parts quickly and cheaply is imperative for us,” says Grimes. “She’s amazing, and if she can’t find it, she comes back with 12 other options for us.”

Integrity is an important trait in the electronic component arena as counterfeit parts are prevalent, and installing them can compromise a product. Quality is compromised and reputations sullied if it’s discovered that a manufacturer used lesser-quality components. “We depend on our vendors to tell us the truth about their parts, and Dawn would never supply counterfeit parts,” Grimes continues. “She’ll tell us if she doesn’t have a good feeling about an overseas source, and she’ll test the parts as an added service to make sure they’re genuine.”

Ultrablend LLC provides paint dispensers and mixers for companies like Home Depot and Benjamin Moore. They’re precise machines that require constant maintenance. Leslie Hoehne is an Ultrablend quality engineer who deals firsthand with the electronic components that make these machines work. “We need very specific parts, and sometimes these parts are hard to secure in a timely manner,” she says. “To add to this, some of our machines are 30 years old, which makes it hard to find parts at all sometimes.”

Hoehne met Gluskin years ago when she was a buyer for another company. She needed specific parts back then as well, so Gluskin would give her a list of vendors who had the parts at decent prices. They became fast friends and are still good friends. “Dawn is very detail-oriented, which is a must in this business,” says Hoehne. “She’s so thorough she even catches mistakes in my purchase orders, and the truth is, to this day, Dawn can find parts nobody else can find. She’s like a bloodhound, and she finds it cheap.”

As a testament to Gluskin’s hard work and dedication, SolTec Electronics was selected as one of 10 women-owned businesses that won the Make Mine a Million Dollar Business competition sponsored by Count Me In, a nonprofit organization that encourages and supports women entrepreneurs. The competition is for women who own companies that have the greatest potential of reaching $1 million in revenues for the year. Gluskin had to give a three-minute elevator pitch in front of 600 people at the most recent Women’s Business Summit in Houston as part of the final selection process. True to form, Gluskin nailed her pitch and was awarded a business/life coach for a year and a line of credit with American Express OPEN.

The future is bright for SolTec Electronics, which is music to the ears of Gluskin’s clients, all of whom depend mightily on her to get the job done. In light of her success, she’s an ardent believer that if you dig deep inside, believe in yourself and go for it, you will succeed.

“That precious little girl of mine has been such a source of inspiration and motivation,” she concludes. “I want to provide for her future but also want to be a positive role model as a woman who can do and be anything.”

Gluskin's 6 Musts:

1. “What do most all successful businesses have in common? A well-thought out, written business plan. Especially when you are getting ready to start a new business, it is such a great exercise to do a formal business plan covering all aspects from finances to sales and marketing to daily operations. You will learn so much about your business going through this formal process. The Small Business Administration Web site, www.sba.gov, has some great resources on writing a business plan.”
2. “Cash is the oxygen to a business. Make sure you don’t run out. It takes a while to start turning profits in a new business, so make sure you have enough money tucked away to pay your bills until the cash starts coming in. Some business owners don’t pay themselves at all the first year or even longer. Also, make sure you have a backup plan when capital starts running low. Most traditional banks won’t even consider lending to a business until [it is] at least three years old. In the meantime, turn to personal savings and retirement funds, credit cards, home equity loans, or friends and family to buy into your dream. And, when you are doing your budgeting, make sure you factor in some extra padding for any unforeseen expenses that might come up.”
3. “You must have passion. Being the ‘boss’ is not all glitz and glamour. You must love what you do. There will be long hours, stressful circumstances that arise and all sorts of obstacles to hurdle while building your dream. When all else fails, this passion deep inside of you is the only thing that will get you through it. And, through it all, you might just even have a smile on your face.”
4. “Think [outside] the box. A successful businessperson has to be able to think on [his or her] feet and be open to new ideas. Sometimes plan A or B might not turn out exactly as you planned, but don’t give up. The most successful businesses learn to adapt, even in the toughest times. Keep thinking creatively. Plan C or D might just be the ones that take you to the next level.”
5. “Use social media. If you are not on Twitter and Facebook, you are missing out on many great networking opportunities as well as potential clients looking to buy from you. These are free marketing tools that, with a little creativity and some manpower, you can [use to] really generate some buzz for your business. Even if social media is not your cup of tea, you should at least look into hiring a college intern to help you get started. What do you have to lose?”
6. “Have a great support group around you. Get your friends and family on board with what you are doing. They will be there to congratulate you when things are going great, or even to give you a shoulder to cry on if things are going a little rough. In addition to that, find groups of like-minded businesspeople that you can network and exchange ideas with. I think women really have an advantage in this realm because there are so many great organizations for women business owners out there. Count Me In [www.makemineamillion.org] is the nonprofit organization that sponsors the M3 program [from which I received an award]. And, Big Fish Nation [www.bigfishnation.com], which I am also a part of, is a yearlong business development [program] for women entrepreneurs who dare to soar. The advice, support and encouragement I have received from these groups has really helped push me along to where I am today. There are tons of other organizations out there as well. Get to Googling with your particular interests in mind to find the perfect one for you.”

Harold Mills was sprinting on the corporate America fast track to CEO stardom.

That’s what happens when you jump out of the gates with an MBA from Harvard Business School while accelerating through management training at General Electric and leading expansion of an emerging tech business into 37 states at Ameritech (now AT &T). All as a relative yearling.

Proper grooming in his 20s gave Mills the sort of blue -blood pedigree that makes even the finest executive applicants on CareerBuilder.com look like unclaimed maidens from a backwoods stakes race.

Then Mills took a turn … for the better. He eschewed the tried and true, the traditional, to chart a new course. The youngest executive director at Ameritech — so youthful, in fact, that his boss prohibited him from mentioning his age to anyone — galloped onto a blinding, winding trail. The one called entrepreneurship.

No contest.

Like a Secretariat stretch drive bringing home a Triple Crown in horse racing, Mills, at 39, is leaving the competition in his dust.

How else does one explain 40 percent growth during the ominous times of fiscal 2008 for a company that deals with, of all things, employment? Mills’ ZeroChaos, a global workforce-solutions company headquartered in Orlando, followed that performance in recession-ravaged 2009 with 12 percent more growth last year and a nearly 20 percent upswing in profitability. That occurred while the competition endured a 30 percent decline in revenues and a roughly 80 percent drop in profitability.

Ten years old, ZeroChaos expects annual revenues to hit $900 million this year, give or take a contract worker, and has doubled its revenues three times during the decade. The company, one of the top minority-owned contract labor-acquisition and -management companies nationwide, does business in all 50 states and in 14 other countries, mostly serving corporations with more than 5 ,000 employees.

Such achievement has placed ZeroChaos on Inc. magazine’s 100 Fastest-Growing Companies list, among others, and seated Mills at some pretty prestigious tables. In January, for one, Mills shared insights at a White House forum on modernizing government, participating in a session entitled “Streamlining Operations.” He was joined by nine other CEO  juggernauts from outfits like Whirlpool, Liz Claiborne, Cargill, Staples and PepsiCo.

Heady stuff, for sure, considering that, less than a decade ago, Mills had a mere $1,000 remaining in his corporate bank account. That paltry sum wouldn’t fetch much in a barn auction.

Setting Sights

The year was 2003. There’s a moment in any race when the difference between winning and losing becomes evident. This was that time.

Mills had arrived in town a few years earlier as an executive vice president for Orlando-based CoAdvantage Resources, in charge of building ZeroChaos, which CoAdvantage owned. In short order, the small provider of human resource services to independent contractors and consultants wasn’t so small, with ZeroChaos’ revenues reaching almost $50 million.

That’s when the entrepreneurial bug hit, leaving Mills’ future in doubt, perhaps for the first time since middle school.

He stepped aside from ZeroChaos and founded Endeavour Business Process Solutions, another HR outsourcer. Endeavour struggled, though, and Mills summoned the fortitude that has long been a family staple. To illustrate: Back in eighth grade, Mills had decided he needed to leave public schools and get a prep school education in hometown, Dayton, Ohio. His low-/middle-income parents — mother a hospital worker, father a foundry worker — couldn’t afford the tuition. Ultimately, Mills talked his way into a partial scholarship while his parents scraped together the rest, doing whatever they could financially. How’s that for spunk?

This time, as his startup teetered on the brink, he turned to his wife with one of life’s defining questions: What next? “I asked, ‘What do you want to do? I can go look for a job tomorrow,’” he recalls. Despite two children in tow (there are now three), she responded with, simply “Let it ride.”

“There was the wall that I think every entrepreneur hits at some point,” Mills says, “where you decide if you jump off the cliff or turn away and go back to the safety net.”

So, he jumped, resurrecting Endeavour and, in 2004, folding it into ZeroChaos, which he had bought, together with a group of investors. ZeroChaos became a launching pad.

Gaining Speed

Mills had carried the entrepreneurial yearning for some time, even while making the corporate ladder look more like a step stool in the early 1990s. At Ameritech, he once walked into the president’s office and asked to take no salary. Instead, he said, he wanted his compensation based on what he could build. The president acknowledged that the idea was good but against corporate policy; his answer was no. The president’s decision to follow company policy turned out to be a smart decision for the company because Mills would otherwise have won big — he quadrupled sales during the next couple of years.

Mills pushed forward, dutifully surveying the field, before making his move.

“He was too entrepreneurial for some of those big corporate companies,” says Geoff Toffetti, vice president of strategic solutions at ZeroChaos, who has worked with Mills since the company’s earliest days. “He married the high-level management grooming with entrepreneurial free thinking.”

In 2004, when Mills acquired ZeroChaos, he didn’t just want to lead the pack; he sought to change the industry. He had raised a reported $13 million in private equity funds from major investors such as AP Capital Partners, a black-owned private equity firm based in Orlando. And he didn’t intend to be merely part of a $200 billion global marketplace crowded with some 14,000 competitors in the United States alone.

“We wanted to come to the industry and be different. We didn’t want to be 14,001. That’s probably the only thing we knew,” he recounts.

For starters, leaning heavily on a fully automated employment platform, ZeroChaos introduced to the industry Open Book Accounting and e-Contractor, effectively enticing such huge clients as IBM, Nokia, Accenture and GlaxoSmithKline. Open Book Accounting created transparency, with ZeroChaos sharing with clients it methods of determining fees on taxes, wages and other expenses. As a buyer of HR services at Ameritech, Mills had seen suppliers charging high margins and covering up pricing. He believed there was a better way. E-contracting allows individual contractors to create profiles on the Web sites of companies they're interesting in working for, enabling the companies to directly assess a private talent pool. Those companies, in turn, pay ZeroChaos a fee to develop the software and manage the Web site.

“I always had this sort of buzz for the leading-edge stuff,” he offers.

Over the years, ZeroChaos has added a slew of other services — or perhaps more aptly put, a Seattle Slew of services — continually broadening its scope. While the company started as essentially being the employer of record for contractors who were identified by customers, it developed solutions as contractor-labor challenges emerged. Says Toffetti, the person pulling the trigger on much of the innovation: “We are not a payroll company; we’re a solutions company. The company isn’t about status quo; it’s about solutions.

“Our sales pitches are typically more like a seminar.”

The company’s boilerplate tag on press releases to the media: “ZeroChaos helps visionary companies achieve greater management and financial control of their workforce and talent supply chains through innovative private-label solutions and full-disclosure pricing.”

More specifically, focusing on white-collar employment, the company is organized into four lines of business: (1) Professional Payrolling, using proprietary technology and integrated back-office procedures to deliver processing and professional payrolling services, reportedly at a cost of 6 to 10 percent less than the competition; (2) Risk Management, offering  an IRS validation and a Department of Labor risk-management solution for a company’s independent contract workers; (3) Private Label Sourcing, connecting contract workers directly with a corporation’s needs without coemployment or other risks; and (4) Managed Services, providing a combination of solutions.

The overriding emphasis, Mills asserts, is on saving customers money. The company’s Private Label Sourcing, for example, is touted as minimizing a customer’s competition for talent plus saving on related costs by nearly 40 percent. In addition, there aren’t many brick-and-mortar offices, eliminating office overhead, with those savings passed along to customers.

“It [saving money for customers] has been paramount,” he says. “High quality. High service. Low cost.” As such, the beauty of the company's sophistication lies in this simple fact: ZeroChaos has attracted the IBMs and American Expresses of the world because innovations make doing business with it vastly less expensive than the next service provider.

“Absolutely. They’ve saved us money,” comments Sylvester Wilkins, sourcing group manager for corporate services procurement at GlaxoSmithKline, which has been a customer for the past seven years. The pharmaceutical and healthcare giant receives payrolling services and works with subcontractor companies hired through ZeroChaos. While industry markups normally range from 25 to 40 percent, cites Wilkins, ZeroChaos’ are 18 to 20 percent and sometimes less.

At the same time, Mills is, let's just say, budget conscious. He gets ribbed for mandating that the company’s same-gender associates share hotel rooms on business trips. Yet, he doesn’t skimp on investing in the future. Instead of drawing in the reins at the end of 2008 and waiting out the economic storm, Mills went into full development mode. “It turned out well for us,” he says. “Instead of laying people off, we grew our base and invested significantly in technology.”

Finishing Form

Toffetti labels the move as typical Mills — “swimming upstream seeking innovation.”

“The core of our innovation came with Harold,” he says. “Our reputation of innovation is largely based on his presence here.”

While the company’s dizzying growth has the potential to cause burnout, Toffetti acknowledges, Mills has found a way to invigorate: “He fosters an environment where he channels that energy into ‘We’re going after the industry; we’re changing the industry.’ All that change is driven through innovation.”

When an employee’s spouse, who works as an insurance contract adjuster involved in small business contract labor, brought ZeroChaos a promising nuance for its insurance adjuster segment, Mills gave a thumbs up. The company is now pursuing that idea. Also, last year he invited all employees to submit business plans for new products. Selected winners were given a cash bonus and allowed to develop their products, with the top winner currently working full time on moving her product through development and into the market.

Clearly, Mills builds consensus and believes in his people. Don’t be mistaken, though, adds Toffetti. Mills has bite, too: “When he believes we should be on a path, we’re on that path.”

By many accounts a good guy, Mills isn’t afraid to hurt people’s feelings. Telling self-testimony: “If you’re going to double the company two or three times in its history, you’re bringing lots of new people into the organization. And some of those people simply don’t work out.”

Wilkins describes Mills as personally committed to customer satisfaction, calling him a “customer delight” and someone who is responsive, not hesitant to get involved. “For all the things that this guy does, and all the time that he moves around, I can call him and be guaranteed he’ll call back within the hour, unless he’s somewhere and just cannot do it,” Wilkins says.

That might explain Mills’ recent fascination with social media, where he began a blog last month,  further improving accessibility.

In the mirror, Mills sees a collaborator, with high expectations of himself and others, but also someone who is driven, focused and calculated enough to forecast another 30 percent growth in revenues for fiscal 2010.

Winning races, for sure, doesn’t happen without both grit and guile.

Most notably, Mills uses the word grateful. Growing up in the housing projects of Dayton, he was grateful and “never wanting for much.” Today, he is grateful for what thus far has been a championship run for the roses.

He takes little for granted. With mixed parts of paranoia and perspective, he concludes: “It could all go away the next day.”

Jim Jardon was able to build a company virtually from scratch. In 1990, he founded JHT Inc., which began as a small business that developed training programs for the Department of Defense and affiliated agencies. Since that time, JHT steadily has expanded services and grown from its Orlando roots to reach 30 states.

The company now offers expertise ranging from training and technical data management to environmental and marine sciences, management and operations support, and construction, with its largest customer being the National Oceanic and Atmospheric Administration. Impressive.

Jardon, however, has sometimes come up short in one area: He hasn’t always found the right people at the right time. As a defense contractor, JHT is required to hire only U.S. citizens, people possessing advanced technical backgrounds. Too often, too few qualified candidates emerge.

“I have had really quality students, … but because they’re not U.S. citizens, I can’t let them in the building,” laments Jardon.
In her previous life, Leslie Hielema was managing director of the Indiana office of ProLogic Inc., a computer engineering firm specializing in government contracts. She, too, was restricted to hiring U.S. citizens, essentially eliminating an ample portion of the applicant pool.

She advertised extensively, and with ProLogic’s location at a tech incubator, she had direct access to Purdue University students. Still, at job fairs, she would collect “30 to 40 top-notch” resumes, touting doctoral degrees in math and master’s degrees in engineering, but “99 percent” of them weren’t from U.S. citizens. “That was very frustrating,” says Hielema, currently president of Orlando Inc. (Orlando Regional Chamber of Commerce). “We had great [defense] contracts, and it was very hard to meet the needs.”

All tech jobs don’t require U.S. citizenship, of course. The bulk of them, in reality, do not. Yet, the point is this: Flatly, as a country, we produce too few technical specialists such as scientists, technicians, engineers and mathematicians. (The acronym is STEM — it’s a theme here.) And, like a volcano, while that shortage of talent first bubbles to the surface for the defense industry, volatile danger smolders underneath, awaiting eruption. The question isn’t if but when.

That is true in Indiana, just as it is in Central Florida and across the United States. Not just one segment of industries is affected either. Sure, among the chief areas are aerospace, energy, manufacturing, information technology, homeland security and defense, and life sciences. The lava, though, spills forth.

Generally speaking, the United States is at risk of losing its grip in the battle of global competitiveness. Leading-edge scientific and engineering work is being accomplished in many parts of the world. Workers in virtually every tech sector must now face competitors who live just a mouse click away, in Ireland, Finland, China, India and dozens of other nations. The domestic workforce also finds itself in direct competition for jobs with lower-wage workers abroad. And, even if someone isn’t cut out to be, say, a research scientist, more and more jobs will require at least a basic understanding of scientific and mathematical principles, a working knowledge of computer hardware and software, and problem-solving skills.

Proof: According to the U.S. Bureau of Labor Statistics, 15 of the 20 jobs for which the demand is growing the fastest through 2014 will require substantial math or science preparation.

There’s even more pressure locally.

In Central Florida, the challenge is magnified, given the region’s recent economic hurtle toward technology. In many respects, in that global fight, our region is on the front lines.

This acronym STEM spells the kind of trouble that pervades industry, education and the general public.
Everyone, really? Indeed, that’s what happens when Gross Domestic Product — the market value of all goods and services the country produces — is involved. If the United States had in recent years closed the gap between its educational achievement levels and those of better-performing nation, the 2008 GDP could have been $1.3 trillion to $2.3 trillion higher, an amount that represents up to 16 percent of the total GDP, according to a report by McKinsey & Co. called “The Economic Impact of the Achievement Gap in America's Schools.”

Not to get too technical, but this stuff is big.

For industry, obviously much is at stake. Consider that metro Orlando has an estimated $13.4 billion technology industry, employing 53,000 people, according to data supplied by the Metro Orlando Economic Development Commission. The life sciences, medical technology and biotech industries, in particular, are poised to blossom. Since 2008, the region has made a $2 billion investment in life sciences alone. Also, metro Orlando is a recognized leader in the simulation, laser and information technology industries, widely viewed as the largest cluster of modeling, simulation and training companies in the world, while the nation’s military simulation training centers are based here. eWeek, a tech-dedicated Web site, has recognized Orlando as one of the top 10 U.S. emerging technology hubs. In addition, Orlando has nationally recognized clusters of innovation in digital media, agritechnology, aviation and aerospace, and software.

Big stuff, indeed. Just not guaranteed.

“It’s a national issue,” says Hielema. “and it’s a huge priority for Florida.”

Jardon praises UCF as well as several of the state’s other colleges and universities. Still, he notes: “We’re getting left behind. … We still have a lot of great people. But I’m concerned because that [a STEM career] has not been the chosen path to success for a lot of our young people.”

The concern isn’t new. The past decade has brought increasing discussion and plans. The problem is that activity too frequently has occurred in “silos.” The individual and sometimes effective efforts have not been particularly concerted. Like ants in an anthill, people are dutifully running around with their mission in mind, but without masterful coordination.

Industry’s Initiatives
Lee Barnes is intent on helping usher in change. The corporate lead executive in Orlando for Northrop Grumman Corp.’s Technical Services sector doesn’t see any other choice. “We’re getting down to the point where it’s not necessarily going to self-correct,” he says. “We have to make sure it corrects.”

Northrop Grumman, an international security giant whose customers include the U.S. government, has long engaged in developing educational programs and writing charitable checks. A fortuitous introduction of Barnes to a UCF outreach specialist involved in similar work now has delivered greater clarity and broader scope.

Bruce Furino, UCF’s director of educational partnerships, was running a program called Engineer Future Connection, funded by General Electric. Barnes, meanwhile, was searching for answers with  industry associates. When each learned what the other was doing, collaboration became a no-brainer. “I thought, ‘This just makes too much sense. This is exactly where we need to be,’” Barnes says.

The result is the Central Florida STEM Education Council, formed in January and based at the UCF Business Incubation Program in the Central Florida Research Park. The regional effort hopes to stimulate STEM options for precollege students in Orange, Seminole, Osceola, Brevard, Volusia, Lake, Polk and Flagler counties.

Aside from UCF’s College of Engineering & Computer Science and Northrop Grumman, charter members include NASA Kennedy Space Center, Lockheed Martin, Science Applications International Corp., the Boeing Co., Harris Corp., the Walt Disney Co., Florida Virtual School, U.S. Naval Air Warfare Center, U.S. Army PEO-STRI, Manufacturers Association of Central Florida and Cox Marketing Services. All have ongoing STEM education activities, and the council enables them to share relevant information and to leverage resources.

“The fact that we’re addressing this locally speaks to the importance of the problem,” Furino comments. “The fact that we’re doing this together, that we’re sitting down and recognizing this at the same time — it’s just one of those moments when all the pieces come together.”

The council’s stated mission is to “prepare and encourage precollege students to enter technical fields of study and pursue employment in the Central Florida high-tech workforce.” It plans to “encourage and support stronger technology programs in area schools and advocate [the offering of] direct assistance, including mentorships, online resources for parents and students, and resources for educators.”

In other words, the target is children.

An aging workforce needs to be replenished, and the initial aim is to attract the attention of students who are barely into their multiplication tables.

“For us to be successful at all, we’ve got to create a higher level of interest and application at the [elementary] school and [middle] school level,” says Barnes. “Otherwise, you cannot make it to the other end. So, regardless of what our ultimate goal is, our immediate pressing goal is to focus back on the lower levels of school.”

“The opportunity is there for these students to excel,” says Furino. “It’s just getting the message to them for them to realize what’s ahead. … How do we reach those young students to get the point across? Throwing data at them isn’t going to do it. We need to market the message of STEM.

“There’s so much to be done. We’re just getting started.”

The PRISM Project (Promoting Regional Improvement in Science and Math) has a head start, although with the older target group of middle schoolers and up. Established in 2005, the project hopes to elevate the region’s ability to compete economically by strengthening math and science education in area schools. In the past five years, the effort has spread from eight to 10 counties along the high-tech corridor from Orlando to Tampa and encompasses businesses, local governments, community organizations and educational institutions.

PRISM’s growing list of partners are Central Florida School Boards Coalition, Florida High Tech Corridor Council, Orlando Science Center, Workforce Central Florida, Orlando Inc., Lake-Sumter Community College, Lockheed Martin, Electronic Arts, National Retail Properties, Progress Energy, Realty Capital, Regions Bank, Walt Disney World, UCF, Valencia Community College, Seminole State College of Florida, DeVry University, Daytona College and the Florida Department of Education.

PRISM has worked to support and train teachers, inspire students to pursue math and science education, enhance school curricula and expand funding opportunities. As a way to inspire, for example, PRISM promotes participation in math and science competitions. Also, there’s a PRISM student scholar program designed to create interest and participation in math and science by sixth-graders. In the past three years, PRISM has recognized 92 outstanding math and science teachers, who shared best practices with other teachers in their districts, and 170 outstanding and most-improved students.
Progress is being made. Still, more is needed.

That’s the contention of Pam Tedesco, project manager of STEMflorida, who is pushing toward further synergy on the statewide level. “There are some fantastic things that are going on in the state,” she says, “but there is no defined method for collaboration and cooperation, for a single entity to catalog everything that’s going on and pull them together.” Last June, Workforce Florida, which oversees Florida’s workforce system, and Enterprise Florida, a partnership between Florida’s business and government leaders, created STEMflorida to be that entity.

The goal, aside from being that clearinghouse, is to build business–education collaboration, create career awareness among young Floridians about STEM careers and growth opportunities, and provide for teacher externships and student internships in STEM disciplines.

Atop the agenda: educating people on exactly what STEM is. (If you think STEM means stem cell research, you get an F.)
“Once people do learn about it, it’s an easy sell because it touches so many different areas,” says Tedesco, who most recently worked in economic development and workforce innovation in northwest Florida. “There is no career in ‘STEM.’ Instead, STEM skills are required in many different jobs.

“STEM is not a standalone. It is intertwined with everything and anything.”

STEM isn’t only about young students; the initiative carries throughout formal schooling and into the training and retraining of employees, she adds: “It really is the full spectrum across the entire current and future potential workforce.”

To foster synergy, STEMflorida has implemented a Declaration of Interdependence, defining roles and responsibilities of committed partners. A series of business roundtables has begun, to eventually complete a strategic plan for STEM education. (At press time, Orlando’s roundtable, hosted by Lockheed Martin, was scheduled for Feb. 18.) An annual education conference, held in conjunction with the Florida Association of School Administrators, is scheduled for July 25-28 in Orlando. There, STEM stakeholders can gather to share best practices, leverage collective resources and increase coordination. Also, a Web portal with helpful resources and tools is available at www.stemflorida.net. Hielema of Orlando Inc., by the way, has been particularly active in the council’s launch activities.

“Everybody needs to be arm in arm in addressing this situation,” Tedesco emphasizes, noting that the callout extends far beyond this sampling of STEM groups.

Education’s Efforts
For their part, educators have seen the writing on the chalkboard for some time. As a result, a new attitude, along with a new curriculum, is taking hold.

“We have to change our mental model of who we are as a teacher,” says Yvonne Fonnett, a secondary science specialist at Orange County Public Schools. “What is our education philosophy, and what are we trying to do with our students?”

At central issue is what OCPS labels 21st-century skills: thinking critically; working in teams; leading by influence; being adaptable; taking initiative and being entrepreneurial; communicating clearly and concisely; accessing and analyzing information effectively; and being curious and imaginative.

Curriculum changes are encouraging inquiry, exploration, problem solving and creative thinking, not necessarily the regurgitation of facts. School district officials use the terms rigor, relevance and relationships to describe the academic approach.
The recently approved Next Generation Sunshine State Standards are helping to drive change. Beginning in the next school year, the Next Generation will eclipse the circa-1997 Sunshine State Standards testing yardstick.

Optimism is high. “As an educator, you never feel it’s too challenging,” comments Molly Malloy, an OCPS resource teacher who specializes in middle school science. “It’s actually kind of exciting with the new things happening right now. I think it’s very doable.”

Margaret Walker, an OCPS secondary mathematics specialist, cites joint efforts such as the I-4 Corridor for Mathematics Group, composed of nine school districts that meet quarterly to discuss classroom challenges and opportunities for improvement. “We’re going to have to work harder,” she says. “So we might as well work smarter as we work harder. … And the smarter part is working together.” Another example, among numerous, is the Science Leadership Academy, started in 2008, where leaders from each county public school meet regularly as part of mentoring and coaching for teachers.

Despite the headway that’s been made, the task for educators is daunting, leaving little room for error.
Pop quiz: How early do youngsters make up their mind about school work? Published research indicates that by third grade, students typically decide whether they are going to pursue rigorous math or science training. And if by fifth grade they’re out of that equation, they won’t factor back in it.

Making matters worse are subpar standardized test scores. In the Florida Comprehensive Assessment Test, used to measure how well students are meeting the Sunshine State Standards, fewer than half of students statewide score at or above grade level in science. Florida’s students score higher in mathematics than in science, but still many students struggle.

Of added concern is that mathematics performance declines from elementary to middle and high school. While 78 percent of third-grade students are performing at grade level, student achievement begins to decline in the fourth grade and continues to decline through the sixth, when only 55 percent of students are performing at grade level.

The precise validity of test scores is debatable. The trends, though, are difficult to deny.

Educators, clearly, shouldn’t shoulder all the blame, perhaps not even most of it. Limited school funding and low teacher wages are well-documented hurdles to higher student achievement, as are myriad other obstacles that make the road from K-start to 12-success seem trickier to navigate than Interstate 4 during rush hour.

To their credit, all Florida schools aren’t doing a poor job either. Florida public schools rank eighth in the nation, a leap from 31st just three years ago, in Education Week magazine's recent "Quality Counts" report. Each year, Education Week compiles a state-by-state report card, rating public education systems in such areas as student achievement, academic standards, teachers and financing. The report uses available national data as recent as 2009 and as far back as 2000. Overall, Florida earned a B-minus.

CliffsNotes
Back to STEM.

Jardon points to the region’s planned high-speed rail and the technical expertise required to make it go. Rhetorically, he asks,  “Do we have the people who can do the work?” He also sees the irony of young people’s seemingly unquenchable thirst for cell phones, iPods, notebook computers and other gadgets yet their lack of interest in the techno magic that brings them to life. “Kids,” he comments, “see way easier ways to make a lot of money.”

Barnes contends that money, in actuality, should be a motivator, given the $64,000 in average salary of engineers in his Northrop Grumman business arena. He vows patience and promises a vigilant eye: “We’re not going to fix this tomorrow. This is a five- to 10-year plan to even make the turn. … The change to the dynamic is what we have to do today.”

Hielema, who holds a master’s in electrical engineering, has a daughter in elementary school. Hielema is hopeful, but wonders whether the STEM path will be wide enough for her daughter to follow. “This is scary,” she says.

Fonnet has a different feeling: “We’re in this flux of change, and it’s exciting to really look at our profession and what it is that we want our kids to be able to do when they leave our classroom at the end of the day.”

Tedesco is confident. “Certainly,” she asserts, “if there had been more [attention] earlier, we’d be in a better position. But the ship hasn’t left the dock yet.”

Furino offers this ominous conclusion: “There is no ‘If we don’t.’ We must.”

Editor’s note: This is the first installment of continuing editorial coverage on the topic of STEM. Also, see Page 22 for additional perspectives from STEM stakeholders.

Robert Reynolds readily concedes he once knew little about solar energy. So he went to school, almost literally.

Reynolds had agreed to team with his teenage son on a summer project that involved creating a solar unit to generate power in their home’s Florida room. Reynolds bought the requisite solar panels and batteries. He Googled and asked business associates. And he goofed up, a lot.

“I think everything we could have done wrong we did at the start. It was essentially starting from scratch and learning,” he says, recalling the lessons of 2005.

Ultimately, the system worked. Only, that initial bit of success led to failure.

Later that summer, his day job as a telecommunications consultant took him to Martin County, where he learned that in the wake of 2004’s historic hurricane season, officials wanted to use some remaining money from the Federal Emergency Management Agency to employ solar energy for use on radio towers. Characteristically intrigued by business opportunity, he pulled together a plan to meet those needs but made an ill-fated proposal. The project had to be installed within a month or the FEMA money would be lost. There was no time.

There was, however, a spark: Solar could be used to power equipment in remote places. And, unlike other typical photovoltaic systems, those standalone units could store unused energy in batteries instead of being tied to an electric grid.

Done.

Today, Altamonte Springs–based Solis Energy is a privately held provider of outdoor power generation, connectivity and emergency/secondary backup solutions for all low-voltage applications. In essence, the company’s products allow industrial and commercial customers to continuously power critical low-wattage applications and electronic devices — including security/surveillance cameras, Wi-Fi hotspots, WiMAX radios, telemetry equipment, power conditioning, computer and traffic monitoring systems — any time and any place grid-supplied electricity is either unavailable or unreliable.

Its product suite represents an alphabet soup of solar technology: SSP (Solar Power Plant), CPB (Continuous Power Bridge), UPS (Uninterruptible Power Supply, LPT (Streetlight Power Tap Adaptor) and PSI (Dual Power over Ethernet Splitter/Injector).

Locally, Solis solutions can be found, among other places, on the West Orange Trail, as well as at the Orange County Convention Center, the Orlando Executive Airport and the Orlando International Airport. Solis products are used in the Everglades, too, and are distributed globally.

Most recently, Solis made its first foray into the retail arena, introducing the Power HotSpot, a solar-powered product that can run small, 12-volt “noncritical” electronics anywhere, in remote locations or places where grid power isn’t available. All that’s required is an electronic device with a car power adaptor (cigarette lighter interface) and the sun.

Working with Duane Roberts, the company’s founding director and head of product engineering — by contrast a true tech guy — Reynolds has gone from his lanai project to a relative leadership position in an industry that is, pun very much intended, heating up.

Clearly, those facts make nice brochure copy. Shine a flashlight (solar powered) on the background, though, and you’ll see some pretty savvy business strategy. Maybe even a bit of inspiration.

Fact is, Reynolds’ unlikely rise in the solar industry serves notice to entrepreneurs large, small and not quite there yet. To borrow from an old phrase, if Reynolds can do it, who’s to say anyone else can’t?

Call it emblematic entrepreneurial effort.

In the early 1990s, Reynolds worked for the city of Orlando in information technology before scratching an entrepreneurial itch. He departed to try his hand at consulting.

First, he played a critical role in launching international operations for a Canadian-owned technology company. Then he designed, developed and deployed an advanced Internet Protocol and Ethernet Services product portfolio for a wholesale provider of bandwidth and IP services. Just prior to Solis, he was an executive consultant, developing business services and processes for several technology companies.

No part of that resume put him in a particularly strong position to take charge of a solar company. Yet, along with a willingness to learn, he had at least two other key attributes: the ability to spot a niche and the nerve to dive in after it.

While solar, in itself, is a segment of the larger green-energy industry, Reynolds further narrowed his solar focus to the area of capital expenditures instead of operating expenses. Largely, solar has been used to reduce electric bills by employing the sun to generate power that is tied to an electric grid system. Conversely, Solis’ products are off-grid, located in places that are beyond any electric grid. Extending a grid into a remote place is an “extremely expensive proposition,” Reynolds says, one that, for example, might require the digging of trenches and the pulling of copper wire to link with the grid. He offers an alternative. “We can save on capital expenses,” he says with conviction.

Such belief made his decision to eschew IT consulting for energy solutions easy for the 46-year-old. He is an enthusiast of camping, boating and waterskiing, sure, but not jumping out of airplanes. Sometimes, however, you simply have to take a leap of faith, he contends: “You could overanalyze until there’s no tomorrow on making a decision, until everything is absolutely perfect. But once you realize there’s a reasonable opportunity, and you’ve got the personality to stick with it, take the jump and give it that shot. You only have a couple of those in your lifetime. Take them when you can.”

Just not alone. For assistance, he’s put together an advisory panel of small business colleagues to discuss ideas, issues and concerns. Also, with several neighbors in tech-rich Seminole County engaged in solar activities, he has elected to forge local partnerships, even with some competitors. “There’s a significant growth industry right in this area here [Seminole County],” he comments. “We’re all kind of tapping into different parts of that market as its developing. There’s plenty of room for opportunity in a market that’s growing like this.

“[There may be] some businesses overlap, but there can be greater benefits by working together.”

The strategy of working with nearby companies has paid dividends. Solis’ first big break came by doing business with F4W Inc., a software development company located right down the street in Lake Mary.

F4W deployed a Solis power plant to power a radio system. At the time, F4W was working closely with Motorola, which subsequently requested a solution for an outdoor battery backup system for one of its radios. “With a little bit of scratching our heads and research, we came back with a yes,” says Reynolds. That provided a leap into expansion. Through Motorola, Solis was able to tie into Anixter, which has turned into a global distribution partner.

By the end of 2005, Solis had two test projects in place. In 2006, they were inching forward, despite Reynolds’ mother’s death and his wife’s extended hospitalization — personal lives, of course, are part of any business equation. During 2007 and 2008, more distributors were added, along with a couple of employees. Last year, revenues nearly hit $1 million, and Solis now employs six people, including both principals, by no means worthy of headlines but nonetheless telling. Perhaps not quite thriving, Solis is surviving and poised for growth.

“His products are all about tomorrow, which is something we want to be part of,” comments Jim Anderson, sales manager for another of Solis’ local connections, Artisan Industries in Lake Mary, which fabricates a variety of metal components. “That’s where every company wants to be — part of the future. … This is a sweet spot to be in.”

And now, with the Power HotSpot, the retail market beckons. At the workplace, the HotSpot can recharge tools, notebook computers and cell phones or provide power to inverters for AC power. At home, it can power a shed or gazebo light, an aerator or a fountain. For recreation, it can bring convenience to a campsite for applications ranging from recharging lights to providing continuous play for iPods.

Five years in, Solis is finding solace in solar.

The next breakthrough could be just over the horizon. In partnership with Orlando-based Green Notions, an environmentally focused innovations developer headed by local attorney/entrepreneur Steve Korshak, Solis is exploring remote-location power solutions using hydrogen and fuel cells — an advancement beyond solar.

Korshak is encouraged. “Solar and alternative energy is a huge field,” he says. “It’s not like there will be one product that will change the whole alternative-energy field. The changes will probably come in little pieces, niches. Robert has a number of areas where he’s been good at doing that. He goes into niches.”

Reynolds, as he typically does, maintains a low-key big-picture posture. “I believe over the next three to five years that technology is going to be evolving significantly,” he comments. “It’s already more widely used [abroad]. It’s a matter of time before that technology starts building here. And we don’t want to fall behind the curve. We want to be aware of where the technology is going, how it will impact our business and how we take advantage of it.”

Indeed, Reynolds finds comfort in careful calculation, much as he did in that summer of 2005 with son Cody. Given the volatility of running a small business, his levelheadedness serves him well. Yet, those traits have been tested, particularly when it comes to money.

“Capital is always an issue,” he says. “Cash flow is always an issue, and credit was an issue for a while.” Reynolds leveraged the business with short-term debt, even with credit cards. “You get out of [debt] for a while; then the next project comes up. It floats back and forth,” he adds.

Although Solis’ tide appears to be rising — in business, who can ever be certain, right? — challenges remain. Or, as Reynolds describes, “It’s not for the faint of heart to go down this path.

“We take two steps forward and one step back. Occasionally, it’s two steps forward and three steps back. … Some days I think we’ve done more. And some days I wonder why we’ve only gotten this far. It’s a little bit of a pendulum.”

For Solis, and just for starters, the challenges include selling the company brand to prospective customers, in addition to teaching about industry technology and proposing innovative uses. “There’s a constant education you have to provide out there,” he says.

There’s self-education, too, like about giving retail a whirl: “That’s a part of owning your own business — you learn a lot every day. Every time is a new challenge.”

No complaints, though.

Reynolds loves the idea of someday sailing to the Caribbean. Only, he’s too busy today selling to the Caribbean. Playful research brought intriguing discovery, which pointed him toward the sun and led to the hot pursuit of business opportunity.

Reynolds relishes the moment. “The journey,” he concludes, “is half the fun.”

And it could happen to anyone.

8 Secrets of Success

The Robert Reynolds way:

1. Take the step. Get into a venture and move forward.

2. Structure as much of your operations as you can. Establish procedures for each step of your operation.

3. Get your name out in as many places as possible, and talk to as many people as you can about your product or service – with a consistent message.

4. Develop outside relationships and keep them positive, whether with customers or vendors.

5. Provide a reliable product or service.

6. Do what’s right for everybody in the process – your people, customers and vendors.

7. Take advantage of new technology, including communication vehicles such as Facebook and Twitter.

8. Don’t hesitate to contract out to people who can do it better than you. It’s worth the investment to use your time elsewhere.

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As our leaders in Washington look to overhaul our healthcare system, it’s clear the challenge they face is daunting. That is, if you want to call increasing coverage, containing (and ideally reducing) costs and improving the overall quality of care daunting. Yet, when you hear the politicians and pundits debate and spin the issue, their arguments all too often have the substance and efficacy of my teenage sons’ Yankees/Red Sox debates.

Still, something must be done. The cost of healthcare nationwide is on an inexorable, and unsustainable, rise. So, in an effort to fight through some of the noise, it may be worth investigating some of the main economic factors that frame the healthcare debate.

Big Price Tag

Healthcare expenditures account for roughly one of every six dollars spent in this country. This means that more than 16 percent of the money spent in our economy goes for services that, all things being equal, people would rather not buy. This proportion is roughly twice that of the rest of the developed world. A claim can be made that nothing is as important as health, so paying more for better care is a worthwhile expense. And, arguably, the best healthcare in the world is available in the United States. At the same time, in the aggregate, our system isn’t the best performer. Care is uneven at best. By many metrics, our healthcare system is actually less effective than those of other countries. For example, looking at infant mortality, survival rates after heart surgery and life expectancy (a pretty big metric), the United States is below the average of the industrialized world.

Thus, as a nation, we pay more for substandard service.

Why So Much?

Our current healthcare architecture creates unique drivers that contribute to the spiraling costs. Domestically, healthcare is paid largely through employer-provided, private health insurance. This is a distinctly American phenomenon. In the rest of the industrialized world, the government picks up the bulk of the healthcare tab. As it happens, there was no grand design in implementing our system. It developed from World War II–era wage controls, as firms were compelled to offer benefits in lieu of pay raises to retain and attract employees. Through the years, tweaks to the tax code have solidified this arrangement.

From an economic standpoint, the system has numerous shortcomings. When workers depend on their employer for health insurance, labor mobility is suppressed as many are deterred from seeking new job opportunities, ultimately resulting in a less productive, more stagnant workforce. In addition, the tax deductibility of employer-provided insurance premiums distorts the true cost of the service. Much as the tax code drives up the cost of housing through mortgage interest deductions or the prices at upscale steakhouses get inflated through the deductibility of business dinners, the ability of business to write off health insurance premiums results in the ramping up of prices. An economically unfair twist is that those who pay for their own insurance are, therefore, forced to pay artificially high premiums yet receive no tax break. And when employer-provided health coverage premiums rise, wages get depressed.

Alas, most of these cost drivers are well concealed, a situation that economists would find to be other than ideal.

Another factor affecting cost is the industry compensation structure. Doctors are paid on a fee-for-service basis. As such, they have a clear financial incentive to prescribe numerous, often expensive and sometimes unnecessary procedures. Certainly, this isn’t always the case, and quite often the doctor recommending treatment doesn’t personally benefit. But, generally speaking, this structure inevitably leads to extra services and higher cost of care.

When the insurance company picks up the tab, patients typically pay only a small amount out of pocket. Therefore, they have no real incentive to question, or limit, the recommended services. In addition, since bills are sent directly to the insurance company, most patients have no idea how much their care costs. Inevitably, they’ll consume more than they would otherwise. It’s the buffet effect. Diners at an all-you-can-eat buffet eat more than they do in a restaurant where they have to order each course from a menu. Patients in the United States consume more medical service than their counterparts elsewhere in the developed world. And the typical insurance plan, with its small copay, is the medical buffet.

The insurance industry is often able to pass along these elevated costs via the higher premiums they charge to businesses. Since the premiums are deductible, firms are less likely to fully scrutinize the costs. Consequently, the tax code often makes business, the primary consumer of health insurance, a poor consumer, far too willing to pay full retail for the service.

To sum up, we have a supplier (the doctor) with a distinct financial interest in offering numerous and often excessively premium services, an end user (the patient) who has no real incentive to limit consumption of these services and a buyer (the business) not particularly inclined to seek out competitive pricing to drive down costs.

It’s no wonder that costs spiral out of control.

More Cost Factors

Another cost driver is the depressing, and rising, share of the population that has no health coverage. According to the U.S. Census Bureau, 46 million people in this country are uninsured. One in four Floridians has no coverage. Many of these people are young and healthy and choose not to obtain coverage — which, given the audacity of youth, is not a surprising choice. (Young people, you should at least get catastrophic coverage!)

Most uninsured people, though, don’t have the means to pay high private insurance premiums. Some, the very impoverished, qualify for Medicaid. A huge swath of the populace, though, is at an income level where paying $12,680 per year for healthcare (the average cost per U.S. family in 2008) is just not feasible. All too often, they face this decision: food and shelter, on the one hand, or go to the doctor, on the other.

In reality, they are covered by society, just not efficiently. The emergency room all too often becomes a well-care facility for the uninsured, and properly, in my view, hospitals do not turn away the sick that show up at the doorstep. But there’s a price to be paid in this scenario.

Hospitals, doctors and whoever else cares for the uninsured ultimately have to pass on the cost of that care to their paying customers. And, typically, by the time an uninsured person gets to the doctor or emergency room, the problem, and the bill, have mushroomed far beyond what they would have been if treatment had been provided earlier. This stealth cost is considerable, and it tends to feed on itself. As costs rise, many of those paying their own insurance, as well as many small businesses, are forced out of the private health system, swelling the ranks of the uninsured. Increasing numbers of uninsured patients show up at the hospital, and the cost of care gets spread across a smaller base of paying customers, which further drives up the price of insurance. As the ranks of the unemployed swell and more and more people lose health coverage, which we’re experiencing in the current economy, this effect gets exacerbated.

The cost of malpractice insurance is also a significant driver. Doctors and hospitals pay a staggering amount to insure against liability. We’ve all heard of some of the outsized monetary awards handed down by juries, many of which seem to defy economic logic. The threat of malpractice suits naturally (and understandably) causes doctors to practice defensive medicine. To shield themselves from potential jury scrutiny, they’re inclined to recommend extra testing, extra medication — extra everything — ultimately overdoctoring many cases. This amounts to a second incentive for doctors to recommend additional care.

Pain Prescriptions

So, we now have something of a diagnosis. But what is the Rx? One area to pursue is an emphasis on preventive medicine.

Healthy people consume less healthcare than sick ones. Three-fourths of costs in the system result from four conditions: cancer, diabetes, cardiovascular disease and obesity. Much of this is preventable. Many companies have made efforts to rein in their healthcare expenses through implementation of “preventive maintenance” programs for their employees, giving them incentives to lose weight, to stop smoking and to exercise. These efforts have significantly reduced these companies’ healthcare costs. Some form of national rollout of this idea appears to be in order.

The structure of compensation for healthcare providers can be addressed. Clearly, the fee-for-service model creates perverse incentives and results in excessive treatment. Most doctors are not paid a fixed salary, and even fewer are rewarded for performance. Perhaps a system should be instituted of paying doctors a fixed salary (and I’d argue they deserve a handsome wage because we need the best minds to be attracted to the field) along with bonuses based on performance metrics. From an economic perspective, this would align their financial interests less with volume of service while maintaining a focus on quality of care.

Another obvious target in combating runaway costs is a serious effort at tort reform. It’s encouraging that the federal government has shown a willingness to address reform in malpractice lawsuits. If a cap on awards could be implemented, particularly the amount granted for pain and suffering (this amount is, by nature, completely subjective and, as a result, awards are very unpredictable), the costs of malpractice liability coverage could be reduced. At present, roughly half of malpractice awards go to lawyers and overhead costs. Malpractice suits serve a legitimate purpose, but as currently employed, they’re a huge drain on the system.

Opportunities exist in technology that could reduce costs. One proposal is a national patient database, which would introduce significant efficiencies into the overall system. Countless hours are wasted on redundantly providing basic medical history to multiple caregivers. Why can get a complete diagnostic history on a used car from CarMax, but I have to update the same information every time I visit a new doctor? Implementing this database would require a significant upfront investment, but eventually it would save patients’ and doctors’ time and money, as well as reduce numerous errors and omissions. (As an additional benefit, fewer errors would result, one would think, in fewer malpractice suits.)

Technology also could be used to conduct studies to determine the most effective methods of treatment for many conditions. This information could then be more efficiently disseminated throughout the entire medical industry.

Taking Control

Our current model, relying primarily on private health insurance, has fundamental flaws. When you think about it, isn’t there an over-reliance on using insurance for healthcare? Is there any other service in the economy where insurance is utilized to pay for virtually every expense? Shouldn’t insurance be purchased for large, catastrophic healthcare expenses, and more routine care be paid out of pocket? But perhaps that’s a discussion for another day.

Private insurance companies have a duty to their shareholders to maximize profit. To that end, their mandate is to maximize premiums and minimize claims. They shouldn’t be faulted for that; that’s what a free market is all about. But there exists no economic model by which a private insurance company will choose to cover a person with a pre-existing condition and no realistic ability to pay the premium. Economically speaking, with our current private structure, a reasonable percentage of the population is uninsurable.

Addressing this dilemma brings us to the most controversial debate: the introduction of some sort of public healthcare option to help provide universal coverage. What eventually comes through the legislative process, particularly with respect to this issue, is anyone’s guess. Those opposed to a public option argue that any sort of government competition will eventually crowd out the private insurance industry. A tangent to that viewpoint is that the government generally mismanages most of its functions. This argument seems a bit inconsistent: Why is it that the government, which some people contend can’t run anything, is suddenly going to drive private insurance out business?

Devising a public health plan that accomplishes the goals of increasing coverage, driving down costs and preserving the innovation that comes from private industry is a heck of a challenge. As proposed by the Administration, the public option is meant to be just that, an option. It would provide basic and catastrophic care to a wide swath of the population. Those with private health insurance could keep it. Proponents claim that the government, through economies of scale, can drive down many of the costs in the system, ultimately reducing the cost of private insurance. Opponents claim that this unfair competitive advantage will drive out the private insurers, eventually leading to greater costs and substandard care.

A popular, and certainly legitimate, fear of a public option is that it will produce a sclerotic system in which important decisions are made by bureaucrats. That said, anyone who has had the pleasure of wading through the Byzantine process of dealing with the claims department of a private insurer knows that sclerosis is not confined to government bureaucracies. Critical medical decisions are currently being made by bureaucrats, but they’re just not in Washington.

The Prognosis

The cost of healthcare is an issue that has been at the forefront of the nation’s attention seemingly forever. Essentially, nothing has been done, and the situation has only gotten worse. Clearly, our current healthcare structure does not allow free market principles to work. And, in reality, healthcare in America is not a true free market enterprise. Free markets work when there is choice, accountability, competition and transparent pricing. Our current system fails in those regards.

The privately uninsurable is one hurdle for our private insurance–based system. Another is the nature of the industry. In most businesses, consumers will shop for better value alternatives, shopping at Wal-Mart for some goods rather than at Macy’s. Yet, when it comes to healthcare, there’s very little market information and transparency. A higher-priced doctor sends a clear market signal, inferring superior quality. That may or may not be the case, but who’s going to choose the cheaper alternative when it comes to their health? In my view, private industry is not ideal for every enterprise. The military is one example. Perhaps a solely private health industry is not the proper solution, either.

The idea of changing something as vital as healthcare is understandably frightening. But the reality is that our current system, in many ways, is just not working. In my view, doing nothing is untenable. Any argument against a specific proposal should not just oppose but should also offer a better alternative. Sacrifices will need to be made throughout the system, from the patient on up. We will not get something for nothing. A drastic solution is required.

Unfortunately, it appeared in early December that any bill that ultimately makes it to the President’s desk, if any bill actually does, will not fundamentally change the economic inefficiencies of our uniquely American healthcare system. Lobbyists for the drug companies, insurers, device makers, hospitals and doctors have effectively deflected any big systemic changes from being incorporated into the proposed legislation. The dream of a complete overhaul, in which an efficient economic model is applied to the entire industry, is just not realistic.

So, I’m reasonably certain that our friends in Our Nation’s Capital will not devise a perfect, unassailable remedy. There’s no black-and-white answer, only gray.

But a demographic time bomb lurks just around the corner, as the baby boomer generation races toward retirement. As Peter Orszag, director of the U.S. Office of Management and Budget, puts it: “The ‘long term’ keeps getting closer and closer.”

I, for one, am tired of having this issue come up every election cycle, only to see nothing change. In fact, the economics only get worse. Hopefully, the dire circumstances will force action, ideally with an effective, thoughtful, nonpartisan compromise. Hopefully, this time, our elected officials will have the wherewithal to make the really tough choices. Hopefully, they can devise a reasonable system that dramatically increases the coverage universe and reins in the spiraling costs, but retains the free market principles that drive innovation and improved care.

We need to have hope, right?

Craig Gile, formerly a managing director at Citigroup, is a 12-year veteran of the banking and finance industry.

Unemployment under 3 percent and a surge in new jobs and population as people sought to experience the economic boom — that was Orlando in 2006. The housing boom peaked later that year, and the economy began to slow. Fewer jobs were being created and unemployment rose slightly, but all was still OK.

Then the boom turned to bust, followed by a crash.

Problems in the local economy were amplified by the financial panic hitting the national and global economy. Since then, Orlando has lost more than 90,000 jobs — 8 percent of its total. Florida has lost more than 700,000 jobs — almost 9 percent of its total — and unemployment rates of about 3 percent both locally and statewide rose to about 11 percent statewide and 11.5 percent in Orlando — the largest increases since the 1930s.

A Year to Remember (or to Forget)

As the economy emerges from the worst recession since the Great Depression, it’s important to look ahead to this coming year. Many are hopeful that the worst is behind us and look forward to renewed economic growth. Others fear that we still have many significant problems and that true recovery may be a long way off.

To understand the likely path of the economy, we must first look back on what many are calling the Great Recession.

The recession, which began in December 2007, was relatively mild during its first nine months, though problems were building. In September 2008, Lehman Brothers went bankrupt, and a financial panic ensued. Other major financial institutions across the world were on the brink of collapse, putting the entire global financial system at risk — an unprecedented event in modern times.

Although this was the first financial panic to hit the United States since the 1930s, they were common occurrences in the past, taking place about every 15 to 20 years, between 1819 and 1930. A common theme of these panics was that most resulted from speculative excesses and were followed by long, severe recessions. Because few around today had experienced such an event, and the financial system today is significantly more complex than it was in the past, there wasn’t a playbook to follow, and decisions had to be made very quickly to prevent the unimaginable from becoming reality.

The next six months saw the most severe global recession since the Great Depression, leaving few countries unscathed. By most measures, credit became tighter than at any time since 1932. Globally, many small to midsized firms could not establish creditworthiness, contributing to the largest collapse in international trade since 1930. The U.S. stock market, as measured by the Dow Jones Industrial Average, experienced its biggest decline since 1931. There was realistic concern that we might experience a second Great Depression. While controversial, many of the U.S. government’s policy decisions prevented a financial meltdown, though a severe recession came about. Central banks around the world, led by the Federal Reserve, took extraordinary steps to stabilize the financial system. Governments engaged in more fiscal stimulus than at any time in history.

By March of this year, the financial system had begun to stabilize, and the economy appeared to have bottomed out in the summer. However, the damage was significant. As of September, the United States had lost 8 million jobs (based on preliminary revisions to be made official in the January 2010 employment report), 5.8 percent of the total; U.S. GDP fell more than at any time since World War II (nearly 4 percent from its peak). Prices declined by more than 2 percent — the most deflation since 1950 — and credit delinquencies and foreclosures hit record highs.

The damage wasn’t limited to the United States. Mexico suffered its worst recession since 1932 while Japan, Germany, the United Kingdom and other countries experienced their worst recessions since World War II.

The Year to Come

The economic hurricane has passed, and the economy has begun to stabilize. Yet, it still faces many headwinds. Consumer spending is likely to remain sluggish, and businesses are unlikely to expand until there’s a significant increase in demand. As a result, unemployment is likely to remain stubbornly high and inflation will be subdued. Unemployment in both Orlando and the rest of Florida will remain in the double digits throughout 2010, as the local economy slowly begins to get back on its feet.

To get a complete picture of what’s likely to come, it’s important to examine key components of the economy:

Consumers (different design header treatment from regular subheads)

Although the economy seems to have hit bottom, the recovery is likely to be sluggish. Consumers are still struggling with heavy debt loads, in addition to which many having lost their jobs. Income growth will remain anemic as long as unemployment remains high. The stock market has bounced back strongly since March 2009, but it remains about 30 percent off its high. Housing prices have begun to stabilize, but homeowners have considerably less home equity than they had a couple of years ago. A recent report indicated that a majority of mortgages in Florida are “under water,” with the mortgage balance exceeding the property’s value. While credit has loosened somewhat, it’s still relatively tight by historical standards. Whereas consumer spending bounced back following previous severe recessions due to pent-up demand, it’s unlikely to occur this time. Given all these problems, consumer spending should improve slowly next year as households seek to pay off old debt and increase their savings. Constrained consumer spending will limit overall economic growth in the coming year. For Orlando, this means the city should not expect a significant rebound in tourism any time soon, as consumers limit their discretionary purchases.

Business (different design header treatment from regular subheads)

Business spending declined at a record rate at the end of 2008 and beginning of 2009. The worst may be behind us now, but the existence of considerable excess capacity means that most businesses won’t need to expand any time soon, putting a damper on construction of new offices and factories. Business purchases of new equipment, however, should fare better. Expectations of modest increases in sales will limit new purchases, but firms will seek to update their equipment as 2010 progresses. Orlando-based firms providing technological products and support should fare better than those engaged in commercial construction. Florida companies involved in export-oriented industries should benefit as parts of the global economy return to strong growth — including Florida’s No. 1 export market, Brazil. The weaker dollar should provide additional support to exporters, as U.S. goods become cheaper to buyers in other parts of the world.

Jobs (different design header treatment from regular subheads)

As of September, the official U.S. unemployment rate had risen to 9.8 percent. Yet, that figure rises to 17 percent if one considers a broader measure that includes those working part time, but wanting full-time jobs, as well as those who have become discouraged and given up looking for work. At that time, Florida’s unemployment rate was 11 percent, with its broader measure averaging 15.6 percent in the preceding year (the broader measure is likely to be closer to 18 percent when the figures are updated near press time). By late 2009, the official rate is expected to have surpassed 10 percent nationally and remain very high throughout 2010, at or above 9.5 percent by the end of 2010. Similarly, unemployment in Florida should exceed 11 percent while Orlando’s unemployment rate should peak close to 12 percent. Both the statewide and local unemployment rates should remain noticeably above 10 percent through the end of 2010. Given the expected slow growth in the economy, fewer jobs than usual are likely to be created. In addition, many of the first people hired will be those who have seen their hours reduced. As a result, unemployment will remain stubbornly high for quite a while.

Inflation (different design header treatment from regular subheads)

After reaching a nearly 60-year low, inflation is unlikely to return any time soon. Historically, inflation tends to rise when the economy overheats — when its resources get stretched too thin, resulting in higher costs that get passed on to consumers in the form of higher prices. No matter how you look at it, the economy has plenty of excess capacity. As the official U.S. unemployment rate approaches 10 percent, there are plenty of workers competing for each available job. Therefore, it’s unlikely that wage growth will accelerate any time soon. Since labor is typically the largest cost faced by most companies, this will place a lid on costs, reducing the pressure to raise prices. The limited wage growth will also hinder consumer spending, which will reduce the ability of companies to significantly raise prices. Capacity utilization has bounced off its bottom, but is about 70 percent, which is near a record low. Therefore, companies can use existing capacity without incurring much increase in costs. As a result, inflation should remain quite low for the next couple of years.

While much attention is given to the possibility of higher inflation, due to large increases in the Fed’s balance sheet, most economists aren’t concerned. Inflation occurs when too much money chases too few goods; there’s no chase taking place right now. Much of the increase in money is sitting in the accounts that banks maintain at the Fed, in the form of reserves. Unless banks start lending out the bulk of these reserves, the money won’t be used to purchase goods, and inflation will remain contained. As the credit market and economy continue to heal, the Fed will start to remove those excess reserves. Will they get this exit strategy exactly right? The timing will be difficult, but they’re unlikely to get it so wrong that inflation gets out of control.

Policy (different design header treatment from regular subheads)

This raises the question, when will the Fed start to increase interest rates? Before it starts raising rates, it will exit programs that have been used to stabilize the financial system. In fact, it has already exited several programs and has announced plans to stop its biggest program — the purchase of mortgage-backed securities — by March 2010. Though future rate decisions will depend on economic conditions at the time, it’s likely that the Fed will begin raising rates by summer 2010 and continue to raise them through the rest of the year. Recently, many members of the Fed’s policy-making committee made speeches indicating that they don’t want to repeat the mistake made earlier in the decade of leaving interest rates too low for too long.

Speaking about exit strategies, the other form of government stimulus has been fiscal policy involving tax cuts and spending increases. Contrary to popular perception, much of the stimulus was given to state governments to help them avoid severe budget cuts and/or tax increases. This didn’t stimulate the economy but instead prevented actions that would have further reduced overall spending. This will continue to have an impact in 2010. Florida will have a tight budget year once again, as it makes difficult decisions to reduce spending or increase fees to maintain a balanced budget. State tax revenue has plummeted recently, falling by the largest rate since the beginning of the Great Depression. State tax revenue in Florida began falling before that in other states, as the downturn hit Florida before most of the rest of the country, and has declined by about 12 percent during the year ending in June 2009.

Although most states need to balance their budgets, the federal government will continue to run extremely high budget deficits for years to come. Thus far, the deficits have had a very limited impact on interest rates, as investors are more than willing to put their money in the safe haven of U.S. government bonds. However, as economic recovery takes hold and businesses begin to seek financing for new investment, interest rates should begin to rise, particularly in the second half of 2010 and into 2011. The budget deficit will come down somewhat as the economy recovers and stimulus programs begin to phase out, but will remain significantly above desired levels. Difficult decisions will have to be made, but the question is this: Will the President and Congress make the politically unpopular decisions needed to keep the deficit in check? With midterm elections looming in fall 2010, the most likely changes in policy will be allowing the Bush tax cuts on upper-income earners to expire and extending unemployment benefits.

Putting It All Together

Economists and other people sometimes use the same terms to mean different things. For economists, the Great Depression lasted from 1929 to 1933, when the economy began to recover. Most others think of the Great Depression as lasting until the start of World War II.

Today, most economists think the Great Recession is technically over, in that the economy is probably no longer shrinking. As viewed by most people, however, it is likely to continue. Economic growth is likely to remain sluggish, unemployment will remain very high and bad economic news will be mixed with more good news. The Orlando economy has seen the worst of the recession but is likely to only stabilize rather than experience noticeable growth in the coming year.

There are already possible signs of stability in the housing market. Other areas of the economy, such as job creation, will have to wait until the new year is well under way. Among the strongest parts of the economy will be business tied to the global economy. Whereas exports plummeted during the depths of the recession, Florida exporters should benefit significantly, as many emerging economies experience strong economic rebounds and dollar weakness makes American companies more competitive.

Just as individuals take time to recover following a heart attack, the economy will take some time to heal from the events of the past year. Better days lie ahead, but 2010 is likely to be a year of healing from the Great Recession.

Bill Seyfried is a professor of economics at the Crummer Graduate School of Business, Rollins College, in Winter Park. Prior to arriving at Crummer, Seyfried was a professor at the University of Central Arkansas, the College of Wooster, the Rose-Hulman Institute of Technology and Winthrop University. His work has been published extensively in academic journals, such as The Australian Economic Review, The American Economist, the Journal of Economics and Finance, and Applied Econometrics and International Development. He also has authored instructors’ manuals for leading textbooks in the areas of money, banking and financial markets, and international economics. He holds a B.S. degree from Rose-Hulman Institute of Technology and M.S. and Ph.D. degrees from Purdue University.

Locals know that the City Beautiful also is the City Entrepreneurial. So, what does the rest of the world think? And how did we become such a fertile breeding ground for startups in the first place?

by Sarah Sekula

Zappos!

A zippy little word, indeed, and a worldwide phenomenon for the apparel and footwear obsessed.

For the ranks of the uninitiated, it’s a nontraditional kind of company — inspired by the Spanish word for shoes, zapatos. Consumers choose from a vast selection of products ranging from Manolo Blahniks to high-tech baby joggers to aviator-framed sunglasses.

All can be ordered online and arrive on your doorstep in 24 hours. Don’t like ’em, no worries. There’s a 365-day return policy. Not to mention free two-way shipping and a customer loyalty team of 350, any of whom have all the time in the world to chat with you on the company’s toll-free number. The longest recorded call was five hours!

Not coincidentally, Zappos.com has zoomed to superstardom in consumers’ eyes. In fact, it hit the $1 billion mark two years ahead of schedule, thanks to New Age entrepreneur Tony Hsieh, CEO of Zappos.com.

He’s just as unusual as the Tony Lama Eastern Rattlesnake boots he sells. For starters, Hsieh (pronounced “shay”) invites the general public to tour the company’s headquarters near Las Vegas for a firsthand look at Zappos’ culture. With core values like “create fun” and “add a little weirdness,” impromptu rap songs or “Zapponian” parades around the office aren’t uncommon. Oh, and don’t worry about transportation — there’s a bus that zips people from the airport, hotels and other spots around town to the sprawling facility.

It’s an altogether unusual office with scheduled happy hours, a nap-time area, profit sharing and a full-time life coach. Which begs the question: Why does the sterling Harvard grad encourage such things? Because a company’s culture, he says — however quirky it may be — should be something you decide on early and commit to.

He’s full of advice for budding entrepreneurs. Better yet, he’ll be in Orlando on Nov. 19 as keynote speaker of the B.I.G. Summit, a daylong entrepreneur fest delivered by the Orlando Regional Chamber. And the best part is that he believes entrepreneurs will play a huge part in bringing the nation, including Central Florida, back to economic stability. How’s that for positive thinking?

“Many friends of mine are starting their own businesses,” he says, “because it's so much easier and cheaper to do so today compared to 10 years ago”. 

Sizzling Startups

Indeed, during the stifling economic downturn, starting up a business has often been the solution for people out of work. In second quarter 2009, about one in 10 people who became employed did so by launching their own business, according to outplacement firm Challenger Gray & Christmas' quarterly Job Market Index.

Many of those entrepreneurs are right here in our own back yard.

It’s not surprising — just look at the rankings this year. Entrepreneur magazine touts Orlando as “one of the most highly coordinated entrepreneurial engines” in the country. And a bizjournals survey ranks Orlando as the seventh-best city out of 100 in which to start a small business.

Surely, Walt Disney, Central Florida’s all-time ultimate entrepreneur, would be proud. What brought him to Southwest Orlando more than 40 years ago were the abundance of reasonably priced ranchlands and a healthy dollop of faith. Fast forward to 2009, and eager entrepreneurs still are flocking to affordable spots to set up shop — but now the chosen destinations also must have a track record.

Such was the case for Orlando residents Consuelo Bellini and Kamuti Kiteme, an exuberant couple who moved here in 2006. They came primarily because it was a proven home base for successful tech startups. And Kiteme was ready to launch his Internet marketing company, Databanq.

“I had lived in New York most of my life and was ready for a change,” he says. “We saw the increase in art and culture in Orlando and saw it growing into a metropolitan city.”

Plus, there was access to centrally located talent, he adds. The couple considered Miami, but Orlando won out because the cost of living and doing business “is very reasonable” here.

As for Kiteme’s wife, Bellini, an artist/designer who originally hails from Italy, her creativity was limited in New York because of the small size and detached location of the working space. And Italy was out of the question. In general, she says, “[Italy] is not as friendly to the entrepreneur as the U.S.” Here, locally, she is able to pursue her dreams “without any barriers.”

They are hardly alone in choosing Orlando. In fact, John Boyd Jr., vice president of the Boyd Company Inc., which has helped locate operations for Time Inc. and PepsiCo Inc., sees a promising future for the region. “Central Florida will increasingly be a destination of choice for many young professionals and entrepreneurs from the Northeast and from California,” he comments.

Alluring Climate

Randy Berridge has seen the steady stream of startups over the past 13 years. And, as president of the Florida High Tech Corridor Council, he knows firsthand the dramatic impact entrepreneurs have on a region’s economy.

Small businesses are at the heart of the council’s Matching Grants Research Program, which helps to foster the development of small businesses. The council has invested $50 million in the program and received $130 million in matching corporate cash and in-kind investments. The resulting economic impact has been nearly $750 million.

Those investments also have led to 140 patents, along with hundreds of job creations.

Beyond that impact, such efforts are enticing highly skilled, eager workers like Dan Rini to build their enterprises here. In 1990, Rini came to Orlando from Kingston, Ontario, on a water-skiing scholarship from the University of Central Florida.

He stayed in the area by virtue of the resources offered at UCF’s Technology Incubator to start a company that provides thermal energy–management solutions. Today, Rini Technologies owns a 13,000-square-foot manufacturing facility in Oviedo and supplies its technology to military, automotive and industrial markets.

“The incubator provided me with a facility and allowed me to set up shop,” Rini says. “It was very valuable. It’s kind of like saying, ‘What’s the value of having good parents?’”

Since the 1999 opening of UCF’s Technology Incubator, the entrepreneurial haven has helped more than 90 companies get off the ground.

Copy Cats

Notably, folks across the country have their eyes squarely set on metro Orlando. And they are modeling their efforts after the City Beautiful.

Take Yankton, N.D., for instance. A councilman heard about Berridge’s council and wants to replicate the program by connecting nearby universities with local companies in research projects. People in places like Puerto Rico and North Carolina have asked Berridge to come speak about what he’s doing in Central Florida. Closer to home, the Board of Governors of Florida’s State University System is exploring ways to encourage a similar partnership climate at all Florida research universities.

Likewise, the Disney Entrepreneur Center is earning inquiries. Recently, Jerry Ross, the center’s executive director, was in San Antonio, speaking at a community development conference and explaining the way the center operates so successfully.

The need for entrepreneurial assistance is evident across the country, he says. “Las Vegas does not have any organized process for a small business to receive assistance. Kansas City has several organizations housed in a shared facility, but not to the extent that Orlando does. The original ‘Entrepreneur Center’ model is in San Jose, Calif., but it is struggling now to remain open,” Ross says.

The common denominator: Each of them is quite impressed with the Disney Entrepreneur Center and the cooperation that Orlando has established between the private and the public sectors to serve small business. “Most of the cities that I visit marvel at the fact that we have leaders who are willing to cooperate and jointly support a common interest — small businesses,” Ross comments.

Positive Peddling
Not coincidentally, Ross is seeing increased traffic at his center during these tough economic times. “Some are seeking information on how to start a new business,” he notes. “Others are coming to see a coach [to learn] how to reduce costs to weather the downturn.”

Ultimately, what is most comforting to clients is that “we have a very warm community that welcomes newcomers easily, and we have community leaders who are willing to work together in their support of entrepreneurs and small businesses,” Ross says. Among those leaders: UCF President John Hitt, Orange County Mayor Rich Crotty, Orlando Mayor Buddy Dyer and Walt Disney Co. President Meg Crofton.

On top of all that, metro Orlando is just downright less expensive when it comes to the cost of doing business. This bodes well for businesses wishing to relocate. According to a 2009 BizCosts.com survey, Orlando ranks as the lowest-cost corporate headquarters location among 55 U.S. markets.

Ross adds even more glow. “Orlando will increasingly be on the radar screen as a candidate site for corporate headquarters,” says Boyd. “Florida’s lack of personal income tax, rooted in its state constitution, is a factor not to be underestimated here.”

That’s certainly music to the ears of Leslie Hielema, president of the Orlando Regional Chamber, which is bring Hsieh to town for the B.I.G. Summit to help drive home that point. Her current focus is to move forward with the agenda of becoming the “Best Regional Entrepreneurship System.”

The Future

Try to imagine, if you dare, launching a business in a city that does not welcome you with open arms and doesn’t have access to the needed resources, such as an educated workforce, plenty of capital and low regulatory requirements. Ultimately, the key to finding the right entrepreneurial environment is finding an area that wholeheartedly supports your endeavors.

Whatever the case, Orlando seems to have harnessed the right mix. Let’s just say: It’s a shoo-in.

Seven Simple Rules for Startups

Tony Hsieh, president of Zappos, says he kept these fundamentals in mind when starting his business. His advice: You should, too.

1. Figure out your core values and the culture you want to build early on and commit to them.
2. Embrace transparency and open communication.
3. Think about ways to make your vision bigger and more meaningful to everyone, including customers and employees. What's the larger vision and greater purpose in employees’ work beyond money or profits?
4. Think about what you will be passionate about doing for 10 years, even if you never make a dime.
5. Build relationships, not networking.
6. Build your team. If you feel as though there aren't enough hours in the day, you haven't built a good enough team yet.
7. Think long term.

Books for the Brave and the Bold

Can’t make it to Las Vegas (Zappos headquarters) for a tour or to the B.I.G. Summit in town this month? Try the next best thing: Zappos Insights ($39.95 a month). It’s an online service that provides videos and white papers about the way the company works. And for more some brain-boosting books, take a look at the following reading list, part of the Zappos Library and available to all of Hsieh’s employees:

“The Wisdom of Crowds”
James Surowiecki, 336 pages

“You Don't Need a Title to Be a Leader”
Mark Sanborn, 128 pages

“The Art of the Start”
Guy Kawasaki, 240 pages

“Purple Cow: Transform Your Business by Being Remarkable”
Seth Godin, 160 pages

“Gung Ho! Turn On the People in Any Organization”
Ken Blanchard and Sheldon Bowles, 208 pages

“Flow: The Psychology of Optimal Experience”
Mihaly Csikszentmihalyi, 320 pages

“Re-imagine! Business Excellence in a Disruptive Age”
Tom Peters, 352 pages

Geronimo!

Thinking of starting a business or just need some brainstorming time? Here are some events that might be just what you’re looking for:

Starting Your New Business

Location: Disney Entrepreneur Center

When: Nov. 4

More info: www.scoreorlando.org

Startup Basics

Location: Disney Entrepreneur Center

When: Nov. 5

More info: www.bus.ucf.edu

Orlando Regional Chamber of Commerce’s B.I.G Summit

Location: Hilton Orlando

When: Nov. 19

More info: www.orlando.org

Ultimate Business Plan

Where: Disney Entrepreneur Center

When: Nov. 24

More info: www.bus.ucf.edu

Women of Enterprise (WE) Network

Where: 310 Lakeside Restaurant

When: Nov. 30

More info: www.orlando.org

Hop off the Washington, D.C., Metro at the Smithsonian stop and head toward the corner of 12th Street and Jefferson Drive. There, on the National Mall you’ll find the “People’s Garden.” Jam-packed with hordes of organic romaine lettuce, vibrant arugula and jalapenos (plus a handful of bats serving as natural pest eliminators), it’s a six-acre beacon of the sustainable agriculture movement.

With 24 million people romping through the famous grounds each year, “The garden, to me, is very symbolic,” says Marty Mesh, executive director of Florida Organic Growers, a nonprofit organization that certifies organic growers worldwide.

It’s a sign of palpable energy surrounding the organic industry.

Want local proof? Walk the aisles of Publix or even Wal-Mart. Shelf after shelf is stocked with fair-trade chocolate, organic wine and antibiotic-free chicken. Even Whole Foods, a relatively expensive food retailer, has seen a jump in profit margins while other supermarket chains are struggling.

During a down economy, you’d think pricey organic goods would be the first items nixed from the shopping list. And, yes, the industry has seen a decline worldwide since the recession hit. Yet, consider this: Studies show that three in 10 U.S. families are buying more organic foods than they did a year ago, with many parents reducing spending in other areas before giving organics the boot.

The market interest is there. Still, across the Sunshine State, only a mere 14,000 acres are devoted to organic growing.

“It’s been a sliver that’s grown without any real support, only on the backs [literally] of the farmers,” says Mesh, a back-to-basics guy with course, curly hair not unlike that of Grizzly Adams. “We’re out to change that.”

A longtime sustainable-food activist and organic farmer based in Gainesville, Mesh is downright giddy when he chats about the industry’s potential. “The majority of organic farmers are able to make a profit,” he says. “I believe there are lots of opportunities for growers.

The Obstacles

So why aren’t more farmers flocking back to organic roots, especially since it’s now a multibillion-dollar industry?

The reasons are many, not the least of which is time. Converting to organic, by law, takes three years to rid the soil of fertilizers and pesticides. Only then can produce be grown that can be certified as organic. Talk about time consuming. To make matters worse, Florida’s fickle landscape can make it difficult to grow organically, and production costs can be twice per acre that of conventional farming.

Whatever the reason, the reality is that most conventional growers are more worried about canker and about ways to control these diseases with conventional pesticides. They are not thinking about a new niche market.

Here’s where Mesh gets on his soapbox: “Yes, it’s difficult; farming is a tough business to be in. But you can grow citrus organically, you can grow sugar organically and you can grow mangoes and papayas [organically],” he says matter of factly.

Part of the problem, he says, is that “For decades we’ve gone away from trying to create healthier soils. Some of that has been due to a mentality of creating products that can stand on store shelves for weeks. And even though it tastes like cardboard or Styrofoam, that’s OK. That has been the mind-set."

“Fast Food Inc.,” a recently released documentary, touts alternatives to commercial farming.

Crops of Confidence

Despite the challenges, organic growers are still finding success. Keith Mixon, CEO of SunnyRidge Farm in Winter Haven, for one, is transitioning 300 of his 1,200 acres to begin growing organic blueberries this spring. The decision was easy, he says: “It allows us to offer more choices to consumers to let them select products they feel most comfortable with.”

One-upping him is Matt McLean in Clermont. Since 1999, McLean has converted 1,000 acres of oranges to organic. As a result, he has seen his family-owned citrus grove, Uncle Matt’s Farm, grow by 15 to 20 percent each year for the past five years. Better yet, his premium-quality orange juice — which retails for $4.99 to $5.99, about $1 to $2 more than conventional brands — is now sold by the truckload to Whole Foods, Publix, Kroger and several small natural-food stores. Consequently, Uncle Matt’s Organic Inc. is the largest, and one of the fastest-growing, organic juice and fresh fruit brands in the nation.

Plus, his returns are better than those of conventional groves. And McLean has partnered with 15 nearby farms to help them transition to organic.

It’s pretty impressive growth, but apparently not quite good enough. Although the organic production of his groves are growing by leaps and bounds, he still has to turn down orders that he can’t fill for the more popular varieties like red grapefruit, honey tangerines and honeybells.

Simply, supply isn’t able to keep pace with demand.

Dishes at the Ritz Carlton Sarasota use organic ingredients, such as this squash blossom.

Beyond the Farm

Other farmers across the state are taking alternative routes to snagging the consumer food dollar. Some are selling to farmers’ markets or community-supported agriculture programs. Others are finding that local eateries are the way to go.

“We see a lot of chefs who want to buy organic products,” Mesh says. “If you are going to charge $5 for a salad, it should be a good salad. Chefs see that [organic] farmers are producing high-quality, good-tasting food. They say, ‘That’s who I want to buy from.’”

One such farmer is Tia Meer with Simple Living Institute Inc. in Orlando. She sells her backyard collards, bok choy and blueberries to Ethos Vegan Kitchen in Orlando. Also, Heart of Christmas Farms in Christmas sells its hydroponically grown xx to local restaurants.

And restaurants and hotels are not the only ripe markets for organic produce. Higher-education institutions across the nation are on board, too. Take the University of California’s Santa Cruz campus in Monterey, for example. It’s known for more than its stunning scenery and innovative teaching methods. The coastal campus operates a 25-acre on-campus organic farm and a world-famous organic garden.

Until a year ago, students eating in the campus dining halls seldom had a choice of organically grown food. Today, the school’s eateries offer more than chicken nuggets and pizza; they serve up certified organic produce every day of the week. In fact, about a quarter of the produce served on campus is now third-party-certified organic, and nearly half of this produce is from local farmers.

UC Santa Cruz is not alone, either. More than xx universities from Wisconsin to Vermont are taking the “Farm-to-College” approach.

A chef cooks up tasty treats at a Publix GreenWise Market store in West Palm Beach.

Going Mainstream

Although sale of organic food still accounts for a small percentage of all food sales, its growth is outpacing that of conventional foods. While there was a 15.8 percent increase in organic food sales in 2008, total U.S. food sales increased by only 4.9 percent, according to the Organic Trade Association.

And supermarkets are responding. They’ve evolved to the point where “supermarkets are now the main purveyor of organic products, and that’s good because most people are shopping at a large supermarket,” says Mesh. “This translates to more and more organic production all over the world.”

That’s part of the reason Whole Foods is surviving the recession. The store saw its stock triple this year, and in August, the chain announced a 3.1 percent increase in quarterly profits, making it the top-performing retailer of 2009, according to BusinessWeek magazine.

Likewise, Publix is seeing an upside, too. “Our customers have responded well to our private label brand of health, natural and organic products, especially in tough economic times,” says Maria Brous, director of media and community relations for the supermarket chain. “We have seen double-digit increases in most categories.”

The reason? Brous says customers are more savvy and lifestyle conscious these days. As a result, Brous explains, the “health, natural and organic products have become more mainstream as folks look for a healthy, more balanced lifestyle. Having said that, we find that our customers are looking for more balance, but also enjoying the everyday indulgences life has to offer. Not many people are willing to give up decadent desserts.”

The selection has certainly grown. In fact, since September 2007, Publix has opened GreenWise stores in Palm Beach Gardens, Boca Raton and Tampa.

Back to supply versus demand. Mesh says he believes many supermarkets are open to relationships with Florida farmers. “Lacking that, of course, the demand side will seek out the supply whether it’s in California or overseas,” he comments.

In many cases, he adds, “We  [consumers] have forced manufacturers to go on global hunts for raw ingredients because they haven’t been able to find them here.”

The secret to further boosting organics, says Mesh, is spreading the word. In May, the USDA announced $50 million in funding to help encourage more U.S. farmers to go organic. It’s just a drop in the bucket, however. And so, Mesh rolls up his sleeves and educates growers through offering organic transitions workshops and teaching sustainable ways through GIFT Gardens, a program that provides free raised-bed vegetable gardens at schools, businesses and homes of low-income residents.

Marty Mesh takes pride in his organic produce.

More Than a Trend

Although organic foods account for only about 3.5 percent of the overall food market, they have huge growth potential. And while the ideas of sustainable agriculture are nothing new, and we’ve heard the going green term for the umpteenth time, what is different is the commercial clout, not to mention the celebrity attention, it’s attracted.

Mesh recently hosted a fund-raiser for sustainable agriculture in New York, and Christy Brinkley was the spokesperson. Just add her to a lengthy list of glitterati, like Oprah Winfrey and Gwyneth Paltrow, who now champion the cause.

Every little bit helps, according Mesh, who remains optimistic but stridently urgent about his mission. “We’ll advocate for more [federal] money for sustainable agriculture and organic research,” he says. “Even if organic is only 4 or 5 percent of the market, there is certainly not 4 or 5 percent going toward research. If you look at organic and the promise that it holds for the environment, there should be maybe 6 or 7 percent [for research].”

In the end, he concludes, his hope is that “we change agricultural research priorities radically and the direction [of agriculture] so we can make a substantial difference. We’re trying to change the whole landscape.”

That’s something to chew on.