From Greg's Head

A couple of weeks ago, we had another successful meeting of the Houston Dynamics NAV user group. 

I gave an update from the Directions 2006 conference. The group was eager to hear about the exciting enhancements coming for Dynamics NAV in 2007.

We also discussed Convergence 2007, which will be held in March in San Diego. More information can be found at http://mbs.microsoft.com/public/convergence. 

My colleague, Patricia Soderstrom, gave a great presentation on the Jet Reports tool. PKF Texas will be hosting another Jet Reports Training class in February. Stay tuned for more details. 

If you are a Dynamics NAV (Navision) customer and you don't have access to a user group, contact me so we can discuss you possibly joining our program.

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Your life flashes before your eyes the instant you realize your “Crackberry” is missing. Trying to recall all of the information you have stored for convenience. Account numbers, passwords, birthdays… The list goes on.

My friend Richard Scruggs at the CNVE recently left his Crackberry on the roof of his car and drove through a stop light and three turns before it fell off in a CVS parking lot. 

He details his saga in the latest CNVE newsletter. Click here to read the whole article. In the article he brings up some valid points. 

It’s difficult to not keep our most sensitive information on our PDA’s, but many of us hesitate in keeping “minor” account information like our Amazon.com account number and password easily accessible. If someone accessed your account and decided they needed to purchase a rare first edition of Crime and Punishment, with one-click purchasing, your wallet would be significantly lighter.

In this era of convenience and the need to have everything at our fingertips right now, how do we solve our dependence on the Crackberry? Where should we keep our sensitive and not so sensitive information? At home buried in a box in the backyard? Is it even safer at home? Maybe we should just play Russian Roulette and hope we don’t lose.

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Note: Running most Fridays in FromGregsHead.com, this is a continuing series of inventory control tips by Jon Schreibfeder. These run Saturday mornings during the BusinessMaker’s Radio Show on Supertalk 97.5. Audio files can be found on the Entrepreneur's Playbook page of the PKF Texas website.

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Today's guest blog is from Robert Brackenridge.  Robert is the Director of the Technology Program at the Houston Technology Center.  He can be reached via email at rbrackenridge@houstontech.org. 

Lately, I have been receiving an abundance of phone calls concerning the need for technical talent. It seems that the single greatest limiting factor for many of the technology companies in Houston area is talent. Where can I find a software developer that has a few years under his or her belt that I can hire? With the Houston economy performing as well as it has been for the last few quarters, qualified technical talent has once again become scarce. Most of the early-stage companies that apply to the Houston Technology Center are searching for capital funding. After all, without the funding, a company may never get off the ground. With this in mind, the early-stage company often overlooks the people part of the business.

Paul Graham wrote a great essay in May, 2006 in which he discussed his ideas on the building of Silicon Valley. Many others have attempted to define the attributes that created the business ecosystem which developed into the valley, but I really enjoyed Paul’s simplification. In order to duplicate, or for that matter surpass, the Silicon Valley, an area must have both “rich people and nerds.” The rich people are obviously the financial fuel and nerds are the technical talent. So, if an area finds itself devoid of one or the other what should it do?

I propose that the focus should be on the finding of the nerd. Companies should focus their effort on obtaining the best talent possible before they become concerned with sourcing the money. This often runs contra flow to the strategy that many of the early-stage companies select. Most entrepreneurs I run across feel that the choke hold around their business is the lack of money that fuels success. However, what many of the entrepreneurs do not realize is that the savvy investors are not necessarily betting on the technology that they are initially investing in. Hmmm… That sounds a little odd… What about those software demos and PowerPoint slide stacks we put in endless hours to produce? We were demonstrating our technology weren’t we? Yes and no. Investors that have been around the technology space for a reasonable length of time understand that the market is very fluid. The technology developed today will most likely not be the technology that propels the success of the company in the future. The people will. Investors are looking for the right combination of people that will be able to take advantage of the current opportunity as well as identify the next smash hit, down the road. Good people will attract the serious investor. Good people will attract the money.

How does a company find good people in an area constrained by a lack of talent? Fundamentally, this comes back to the company’s culture. Your business has to be a place that someone wants to work. To further this line of thought, your business has to be better than anywhere else that someone would wish to work. I constantly hear the experts promote that in order for your business to be successful, you have to know your customer better than anyone else. If you shift this thought process slightly and apply it to your employees, your company will be able to think of your employees as the customer. Do you know your employees better than anyone else? Chances are you don’t. When your employees are out in the public are they praising your company? It would pay to find out. Because this is by far the best way your company will ever find the talent it needs to be successful in the future. A referral from one of your employees is one of the strongest determinants in finding others to join your business. A referral is also the most cost effective method to hiring your next rockstar.

By thinking about the needs of your business in advance, you will be able to identify the fertile grounds in which to find your next key hire. Which of the trade organization events in your area are your employees attending? Help your employees find these organizations and become an active member yourself. Sponsor some of the organization’s key events and establish your presence within the professional community. Listen to the remarks the other members are making about the companies they work for. What are your employees doing for fun? Find creative ways that your business can promote and become associated with these fun activities. Sound a little familiar? This is the same approach your company most likely uses for your competitive analysis. The same approach can be applied to your human resources. Finding the best employees becomes your competitive advantage. Ultimately, the game will be won by the company that has the best team. Focusing on the creation of that team will yield success for your business. Focusing on your team, will help your company find the talent it needs.

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I received an email the other day from the Houston Technology Center. For a limited time, the HTC is offering special move-in incentives for new tenants.

I’ve written several times about how the HTC is a great location for emerging technology businesses to base their Houston office. They provide everything entrepreneurs need to run a successful business. Click here and here to see my previous posts about everything they have to offer. 

Since they are offering the move-in incentive for a short time, contact Sheila Whanger at 832-476-9284 for more details as soon as possible.  

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Note: Running most Fridays in FromGregsHead.com, this is a continuing series of inventory control tips by Jon Schreibfeder. These run Saturday mornings during the BusinessMaker’s Radio Show on Supertalk 97.5. Audio files can be found on the Entrepreneur's Playbook page of the PKF Texas website.

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One final word on the FastTech 50 event for 2006.

Robert Cresanti, the Under Secretary for Technology at the US Department of Commerce, was the surprise guest speaker. He commented about how impressed he is that Houston has an event the size and scope of the FastTech 50. He also said that Houston and Texas have done a great job in providing the right entrepreneurial environment that allows technology companies to sustain such growth.

One of the great success stories to come from the FastTech 50 winners is the success of Tanox, a three time FastTech 50 winner. Tanox, co-founded by Nancy Chang, was recently acquired by biotech giant Genentech for $919 million. The details of the acquisition can be found in this Houston Chronicle article. The fact that such a large and influential company took notice of the great things going on in the Houston technology community is phenomenal. 

I’m excited to see how the FastTech 50 has evolved and how proud companies are to be included on the list. Network International, a two time FastTech50 winner, quoted me in their recent press release about their inclusion on this year’s list. Click here to see the release. 

Robert Cresanti’s comments struck a chord with me and it’s good to know that Washington is taking notice of our city and the opportunities we offer to companies to be a player on the global technology stage. 

A note of thanks to Brad Burke over at the Rice Alliance for getting the luncheon on the Secretary's schedule.  The Rice Alliance is a sponsor of the FastTech 50 and we appreciate their long time support.

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To piggy back on last week’s Entrepreneur’s Playbook about community involvement, I want to take the time to recognize PKF Texas’ efforts to raise money for the American Heart Association Heart Walk. Many of our team members or their families have been affected by heart disease or other heart related ailments, so our contributions to the AHA are very important to us. 

This year our team raised over $19,000 for the walk! We originally set a goal to beat our best of $8700 and we beat that goal the first month of our internal campaign. A new goal of $14,000 was set in order to beat the Houston average. As you can see PKF Texas was anything but average!

24 team members, along with their families and friends, took part in the walk on Saturday November 4^th.    Everyone had a great time and is looking forward to next year. 

The AHA is still accepting contributions for this year’s walk. If you would like to make a contribution, visit www.houstonheartwalk.org.

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Note: Running most Fridays in FromGregsHead.com, is a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on Supertalk 97.5. Audio files can be found on the Entrepreneur's Playbook page of the PKF Texas website.

Community involvement should be a key aspect of every company. It gives employees a great opportunity to give back to the community.

Poll your employees to see which organizations they care about. Maybe several employees have been personally affected by heart disease or Alzheimer’s. If the employees have a say in which organization you choose they will be more willing to support this type of initiative. 

Most charitable organizations have a walk or run in the fall or spring. Participating in and raising money for the walk or run is an easy way to get involved. 

Several ways to ensure a successful fundraising campaign include:

• Create a taskforce to handle communications and logistics.
• Set a high, but reachable company fundraising goal
• Provide incentives for reaching personal fundraising goals. For example, if everyone donates $10 have a “jeans and sneakers” day, or for the top fundraiser in your firm, provide an extra vacation day. 

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Congratulations to all of the FastTech 50 winners!  Here is the official 2006 FastTech 50 list:

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As we prepare our program for the sixth year of the Fast Tech 50 Awards Luncheon, I again have a chance to reflect and comment on an outstanding group of entrepreneurs and business leaders that make Houston one of the best places to live and work in the country. The maturity of many of our new emerging companies is evident with the threshold to make the list increasing to over 35% for 2006! The average growth rate for this year’s group is a staggering 134%. It seems everywhere you look there are new entrepreneurs emerging on the scene in Houston. Our city has its legacy, and its future, riding on the success of its entrepreneurs. Everywhere you turn all the appropriate parties are on the same page in this critical area. In my opinion, it’s a return to a time when NASA was first starting here in Houston and all parties were working together to get it right. All branches of government as well as the private sector are on the same page, and doing what’s right for our great city.

During this past year we had 341 companies express an interest in becoming a member of this exclusive club. The Fast Tech 50 class of 2006 continues Houston’s tradition of technology excellence. And they also bring to the forefront new and different stories of entrepreneurial success. This year’s list of honorees includes; 25 first-time honorees, 9 two-time honorees, 11 three-time honorees, 4 four-time, and 1 six-time honoree. Our lone six time honoree is: Cardtronics.  

We also had some unique honorees this year, our first group of combination honorees. We have both a father-son and husband-wife combination. Talk about success in your family! Our father-son honorees include: Ron Farmer (father) of US LED Ltd. (a first time honoree) and BJ Farmer (son) of CITOC (a four time honoree). Our husband wife combination includes: Michael Chang of Directron (a two time honoree) and Vicky Change of Prime Systems (a first time honoree).

During the past year we saw many successful technology events throughout the city. The Houston Technology Center, the Rice Alliance (including the highly success Rice Business Plan competition), held many forums for the start up community.   The Houston based Gulf Coast Regional Center of Innovation and Commercialization (RCIC) is off and running. Recent feedback from the State’s oversight group is that the plans submitted from the Houston area are some of the most well received.

Qualifications

Let’s review the nomination and listing process. To qualify for the Fast Tech 50, a company’s headquarters, or a foreign company’s US headquarters must be located in Houston SMSA region. A minimum of 51% of the company’s consolidated net revenues must be involved in the original manufacture, design or development of technology products or delivery of services. A nominee must have minimum net revenues of more than $200,000 in both years. Rankings were determined on the revenue growth percentage from fiscal 2004 to fiscal 2005.

The nominees were asked to submit the following information: nomination form; audited, reviewed or compiled financial statements or tax returns for 2004 and 2005; an overview letter; and background information on the company, its products and/or services. Representatives from PKF Texas validated the information on the nomination form from the information packet. The percentage of revenue growth was computed by comparing net revenues from 2004 to 2005. During the past year we received 341 nominations for the Fast Tech 50.   The organizations that made the top 50 places were then listed. 

Overview of the 2006 Fast Tech 50

Our Fast Tech 50 represents a wide variety of industries. The industries represented by our award winners, and the number of entries by their area are as follows: Bio/Life Sciences 1, Medical Devices 2, Software 28, Medical IT 2, Hardware 4, Technical/Consulting Services 5, eCommerce/Business Portals 3, and Communications 5. 

Two honorees were started in the 1970s. Four of our honorees were started in the 1980s. Twenty-one honorees were started in the 1990s. Finally, twenty three honorees were started since 2000.   This group of honorees is by far, our youngest group of companies ever. Hang on Houston.

This year’s Number 1 ranked Fast Tech 50 honoree  is Tyrell, Inc. You will find a profile on this company later inside this special section of the Houston Business Journal. They grew a remarkable 1,764% during the past year! Congratulations to Wally Klemp and his team. It’s a great story of entrepreneur collaboration. Talk about fast starts! In addition, two companies started in 2004 made the Fast Tech 50 list right away. They are: Quantum Solutions for Business and Continental Vista Broadcasting Group, Inc. The single largest revenue contributor from the Fast Tech 50 to our local economy is COMSYS at $662 million. This was by far the most difficult year to make the Fast Tech 50 with the cutoff being approximately 35.3% growth. This is up from the record of 11% in the prior year. 

The local economic impact made by this year’s Fast Tech 50 is phenomenal! When reviewing the entire 50 companies, an impressive overview quickly emerges. These organizations are responsible for creating almost 9,060 jobs and over $1.4 billion in revenues to our local economy. No one industry dominates the Houston business climate anymore. Our businesses are as diverse as our people and our cultures.

Nominations will be accepted for next year’s Fast Tech 50 listing by contacting the Houston Business Journal, PKF Texas, or any of the additional sponsors. Organizations that are nominated will receive additional information and application packets during the spring of 2007. Congratulations to all of our honorees! We look forward to seeing you in next year’s listing.

Houston is indeed the final destination for entrepreneurs.

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Note: Running most Fridays in FromGregsHead.com, is a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on Supertalk 97.5. Audio files can be found on the Entrepreneur's Playbook page of the PKF Texas website.

This tip is brought to you by Rebecca Ryan, of Next Generation Consulting, Inc.and PKF Texas.

An important factor in becoming a Next Generation Company is creating and sustaining a good work-life balance for all of your employees. 

If your employees know you respect and value their non-work life, they will be more willing to provide the level of service necessary to run a successful business.

Make sure you listen to the wants and needs of your employees and look for ways to incorporate these in your corporate strategy. Everything from providing gym memberships to onsite child care facilities can show your employees that your firm supports and values their personal lives.  

By putting into place policies and procedures providing a good work-life balance, You will be able to reduce turn-over, provide higher quality work to your clients, and ultimately attract and retain quality employees.

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