Feature Story

 

Reasons To Launch Your Business In Utah?

 

 

For the second consecutive year, Utah ranked No. 2 in Forbes Magazine's "Best States for Business" annual ranking.

"Utah [has] tremendous innovation and growth in our robust business community," Gov. Jon Huntsman said when the ranking was announced. "Utah will look to eliminate the razor thin margin between us and Virginia [No. 1] considering this solid recognition of Utah's unmatched quality of life, competitive economy and job growth opportunities."

As the nation's business community more frequently seeks the day-to-day intangibles, it is especially notable that Utah improved from No. 12 last year to No. 8 in the 2008 Quality of Life rankings.

Forbes isn't the only one to take notice. When discussing their recent move to Utah, Chairman and President of Pennsylvania-based Allegheny Technologies Inc. Patrick Hassey pointed out that the quality of life was a major factor in his decision-making process. "We selected Utah for this significant investment because it is an ideal place to do business," Hassey said. "The state provides a wonderfully innovative environment, a fantastic place to live and a supportive government."

Jason Perry, executive director of the Governor's Office of Economic Development, touted Utah's job growth when the Forbes ranking was announced. "Combined with its young labor force — among the largest in the country — businesses can expect to find a highly educated and hard working workforce for decades to come … businesses everywhere should be looking to relocate or expand in Utah," Perry said.

Launch magazine conducted interviews with leading entrepreneurial experts across Utah. They share their vision for the state and why Utah is the best place to launch and build a business.

 

The People

"The best thing about doing business in Utah is being in an environment where people want to help each other to succeed. We have a highly educated workforce … I think the landscape is on the rise and will continue to be so. Utah, like no other state, recognizes the tremendous contribution entrepreneurs can have on economy. If you look forward in five or 10 years, we'll have nothing but success to talk about."

Curt Roberts — Vice provost, Innovation and Economic Development, Weber State University

 

"The workforce in Utah includes first-class innovators and visionaries. For a state as small as we are, we're fortunate to have the educational system we do. The state support is outstanding and people have high energy and passion for what they do.

I think the No. 1 challenge is that we're a state of 2.5 million people. We're trying to get people to recognize us. We've had low unemployment rate, but we are running out of people. We need more science and tech workers. Not only do we face a shortage of people, but specifically skilled workers.

For my company, we're confident we have something magic. In five years we'll be entering our platform strategy and blossoming of our product. In the animation space, people say you've got Adobe and Pixar behind you … everyone expects us to be successful. The legacy of Utah is a great enabler."

Greg Jones — CEO, VisTrails Inc.

 

Funding Opportunities

When Alan Hall sold his company, MarketStar, he used his newfound wealth to help other entrepreneurs. "We've been able to take the funds from the sale of the company and use some of that wealth to stimulate entrepreneurism in Utah through Grow Utah Ventures. We're constantly trying to find a way to fund the gap between angel money and venture capital. That said, though, I think the future of the state of entrepreneurism in Utah is very bright. Five or 10 years from now, we'll see hundreds of companies employing thousands of people. The economic impact will be significant. They'll stay here and continue to grow. Utah will be known as one of the best place on earth to grow a company."

Alan Hall — Founder & chairman, MarketStar

 

"There's a lot of support from local mentors and university professors. For those who get involved in entrepreneurism it becomes an addiction — whether you launch your own business or help fund someone else's.

I definitely see Klymit staying in Utah permanently. It's a great fit here. It's an outdoor insulation technology. Here we have the best snow on earth and we have lots of local clients invested in licensing the technology."

Nate Alder — Founder & CEO, Klymit

 

The Culture

"We have a great culture that values and respects entrepreneurship … With that esteem for entrepreneurism, however, comes a different cultural dynamic of our great Western heritage. The bootstrap mentality tends to make entrepreneurs averse to the help that can make them successful. That irony is the greatest challenge and they must overcome that tendency. Those attitudes become hurdles for us and must be cleared."

Devin Thorpe — Managing director, USTAR

President, Mountain West Capital Network

 

Akers' Logan-based technology company spun off from Utah State University one year ago. "I grew up in Chicago and one of the things I enjoy about the West is the rugged individualism and hard working spirit that's here. That's an incredible advantage to starting and growing a company. Our biggest challenge right now is the national economy. It's not at its highest point. Setting prices for products requires doing research and development."

Adrienne Akers — President & CEO, Dynamic Screening Solutions Inc.

 

Entrepreneurial Excitement

 "The best thing Utah has going for it is a workforce that's excited about entrepreneurism and willing to start companies. People are very willing to buckle down and take the risk of entrepreneurship. Our biggest need for improvement, however, is raising capital. My angel group, Salt Lake Life Science Angels, was founded two years ago to help close that gap."

Andrew Laver — Managing director, Salt Lake Life Science Angels Principal, APL Capital Advisors

 

The Location

After a short stint at IBM and seven startups, Brad Walter decided he wanted to spend the rest of his life helping other entrepreneurs succeed. Walter now specializes in investing in technologies and consulting startups.

"Utah's biggest challenge is the same as its greatest strength: the location. We don't have the connections of the East or West Coasts. Entrepreneurs here can't go to lunch with half a dozen venture capitalists like folks do in Silicon Valley. Also, there are misconceptions about Utah culture. People consider Utah, and most intermountain states, as the backwoods."

Brad Walters — Founder & CEO, Early Run Investments

 

Great Support, but Don't Forget to Focus on Sales

"Utah is the best place to launch a business. Thanks to Utah angels such as Alan Hall, startup capital is really improving here. Larger, successful companies like Omniture give a great deal back to the community. CEO Josh James took the company to an IPO, and gave back. He's put a lot of sponsorship dollars in worthwhile events. He's an example that it is possible to build a large, successful business in Utah.

The state's greatest entrepreneurial need is more emphasis on sales in both public and private sectors, in universities, etc. When it comes down to it, you need to learn how to sell your product or service. Those types of resources on a university level would go a long way in the state."

Brock Blake — CEO, Funding Universe

 

Perceptions of Utah

"Our local government has been very supportive in our entrepreneurial efforts. I like to watch the government roundtable discussions and inquiries on how to work better together. My hat goes off to the business, education and government leaders for fostering a greater entrepreneurial spirit.

The state's greatest challenge is the lingering perception of what Utah is like. It's ironic that many of the things we would view as strengths — our values, wholesome family environment, etc. — are often viewed as drawbacks. Personally, I think it's a great place to build a career and raise a family."

Jack Sunderlage — President & CEO, ContentWatch

 

Launch - Fall & Winter 2008 (Special Print Edition)