From Greg's Head

Successful Gulf Coast Innovation Conference

Wed, 19 Nov 2008 11:29:34 -0600

Several PKF Texans attended the Gulf Coast Innovation Conference, hosted by the Houston Technology Center, yesterday. This was the first year for this conference, and it was a very well attended event.

Approximately 32 companies, with specialties in life science, energy, nano tech and IT, made individual presentations. In addition, there were two panel presentations and a keynote speech from Leo Linbeck. All of the company presentations were quite impressive. I've said it before and I’ll say it again, the amount of entrepreneurial talent in Houston is astounding. We are lucky to live in a city that supports such a diverse group of innovators.

The panels and Linbeck all had great things to say. The several of our team members commented to me that Linbeck’s speech was the highlight of the conference. He was very candid about the current economic situation and how it will impact entrepreneurs. While the news wasn’t all upbeat, he did say that even in rougher economic times, entrepreneurs should keep going, and that it’s actually not a horrible time to start a business. There is a lot of opportunity if you seek it out.

Economy and the Class of 2009

Fri, 14 Nov 2008 16:42:05 -0600

There was an interesting article on AccountingWeb yesterday, “Economy Not Expected to Impact hiring of College Grads” On the very surface, that seems like great news. However delving a little deeper into the article, employers expect to decrease hiring levels by 1.6 percent.

The National Association of Colleges and Employers recently released the report referenced in the article. The report features updated figures comparing responses from an August 2008 hiring survey with an October 2008 survey.

The findings show that despite the decrease in hiring levels overall, the rates for professional services firms will remain relatively flat, keeping with earlier predictions.

This is mixed news for the Class of 2009 looking for professional services jobs. While its good there hasn’t been a change in hiring expectations, it isn’t great that there will not be a boost in hiring. It’s a competitive market and recruits will have to stand out in a positive way to get noticed and hired.

On a personal note, my son is a member of the Class of 2009 and will graduate with an accounting degree, so the fact professional services firms aren’t making drastic hiring cuts bodes well for my checkbook…

PKF Texas - The Entrepreneur's Playbook™: Risk Assessment

Fri, 14 Nov 2008 08:00:00 -0600

Note: Running 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 KPRC 950AM. Audio files can be found on the Entrepreneur's Playbook™ page of the PKF Texas website.

In these uncertain economic times, have you done everything reasonably expected to prevent or detect fraud? A fraud risk assessment may be the next logical step to lower the potential for fraud against your organization.

The risk assessment reviews the operations and controls including policies and procedures of an organization to determine where gaps exist that could allow a person or persons to carry out a fraud within an organization.

We are all operating in a global, fast paced marketplace with pressure to continually improve our operations. This creates the need for more timely assurance that your risks are being mitigated effectively.

Because the threats to your company change over time, it is imperative to reassess your policies and controls, paying close attention to any discrepancies. The sooner you know of a problem, the sooner you can find a solution.

If you have concerns about your threat level, PKF Texas offers an online tool to help assess a company’s potential for fraud. The tool may be found at pkftexas.com/fraudsurvey.

Register for the Gulf Coast Innovation Conference

Wed, 12 Nov 2008 08:00:17 -0600

Have you registered for the Gulf Coast Innovation Conference yet? The conference will be held at the Intercontinental Hotel, next Tuesday, November 18^th. This is going to be the innovative conference of the year in Houston.

Hosted by the Houston Technology Center, PKF Texas is proud to be a sponsor. This year’s keynote speaker is Leo Linbeck III, President and CEP of Aquinas Companies, LLC. He will present “Entrepreneurship Life Cycle, Early Stage to Seed Capital and the Implications of Current Economic Trends.” I think that given our current economic climate, this is a must see presentation for any entrepreneur.

For more information or to purchase tickets, contact Sue Moore at 713-658-1750 or smoore@houstontech.org.

If you attend the conference, let me know what you were able to take away that will be useful for your business.

And the 2008 FastTech 50 Winners Are...

Fri, 07 Nov 2008 13:30:12 -0600

Congratulations to all of the FastTech 50 winners!

This year’s Number 1 ranked Fast Tech 50 honoree is Globalogix . You will find a profile on this company later inside this special section of the Houston Business Journal. They grew a remarkable 1,343% during the past year! Congratulations to James Hamilton and his team. It’s a great story of entrepreneur collaboration. The single largest revenue contributor from the Fast Tech 50 to our local economy is The Planet at $122 million. As we noted earlier, the cutoff this year to make the Fast Tech 50 was approximately 37.4% year over year growth.

Here is the official 2008 FastTech 50 list by Alphabetical Name:

Access Sciences Corporation
Additech, Inc.
Agoric Source, LLC
Alert Logic Inc.
Apollo Sales & Marketing Group
B Resource
BBS Technologies
Bluegate Corporation
CONTENTACTIVE, LLC
Customer Velocity
Eagle Information Mapping
eCardio Diagnostics, LLC
Enaxis Consulting, L.P.
Energy Solutions Inc.
EpiladyUSA, Inc.
ERGOS Technology Partners, Inc.
Fairway Medical Technologies, Inc.
GlobaLogix
HighRadius
HostGator.com
I.T. Works
iKAN Software
Ingenious, Inc.
Institute of Information Technology, Inc.
Kerdock Consulting, LLC
Lensec
LHR Technologies
M3 Technology, Inc.
Medical Metrics, Inc.
Merrick Systems
MicroSeismic, Inc.
ObjectWin Technology, Inc.
omNovia Technologies, Inc.
OpenSpirit Corporation
Paymetric, Inc.
Petris
Pop Labs
PreCash, Inc.
RigNet, Inc.
Search Technology, LLC
Secure Cash Network, Inc.
SolArc, Inc.
Spring Medical Systems, Inc.
Spur Interactive (Formerly Spur Digital LP)
Techcess Group
The Planet
Transtar POS
US LED, Ltd.
Whitefence
X-ISS (eXcellence in IS Solutions, Inc.)

Houston, We Believe in You!

Fri, 07 Nov 2008 10:30:14 -0600

As we prepare our program for the eighth year of the Fast Tech 50 Awards Luncheon, I am struck with a sense of pride and accomplishment pertaining to the region’s tenacity and desire to take an idea and make it a reality, which quite frankly in other parts of the country would never see the light of day. It’s been six weeks since we all felt the impact of Hurricane Ike in the Houston region. And while many parts of our region are still recovering from Ike, the entrepreneurial leaders and emerging companies are still humming along. Our community came together in ways that are reminiscent of time gone by. Neighbors came together, offered help and took an interest in the welfare of each other so that all could make it through those tough days after the storm passed. That same spirit is found within the emerging market community as well. With entrepreneurial leaders from all backgrounds, service providers, and investment communities offering their assistance, the emerging companies of Houston are finally getting the national respect long deserved.

The Class of 2008 will be one of the youngest we have ever had in our program. In comparing this year’s group of winners, it’s clear that they represent a much younger and still developing group of early stage companies. They will have an impact on our local and national economy for many years to come, and they will add to the legacy of what makes Houston the top city in the country to start a business. The youth of many of our new emerging companies is evident with the threshold to make the list rising to the second highest ever at 37.4% for 2008! The average growth rate for this year’s group is a staggering 133%. You always know that you have arrived on the scene when several “national entrepreneurial magazines” are now mentioning many of our Fast Tech 50 companies as organizations to invest in, or watch. Thanks for the publicity guys, but the Houston Business Journal and our Fast Tech 50 program, already scooped you! We’ve been blowing the horn of these entrepreneurs for over 8 years!

During this past year we had over 360 companies express an interest in becoming a member of this exclusive club. The Fast Tech 50 class of 2008 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; 21 first-time honorees, 14 two-time honorees, 4 three-time honorees, 5 four-time honorees, 5 five-time honorees and 1 six-time honoree. Our five time honorees include: BBS Technologies, Inc., Bluegate Corporation, I.T. Works, Paymetric, Inc., and PreCash Inc. And our only six time honoree this year is Merrick Systems, Inc. What staying power!

During the past year we saw many successful technology events throughout the city. The Houston Technology Center and 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 doing very well in its third year. We continue to hear from the State’s oversight group 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 2006 to fiscal 2007.

The nominees were asked to submit the following information: nomination form; audited, reviewed or compiled financial statements or tax returns for 2006 and 2007; 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 2006 to 2007. During the past year we received over 360 nominations for the Fast Tech 50. The organizations that made the top 50 places were then listed.

Overview of the 2008 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: Medical Devices 3, Software 24, Hardware 5, Technical/Consulting Services 5, eCommerce/Business Portals 6, Energy Technology Products 5, and Communications 2.

One honoree was started in the 1970s. Two of our honorees were started in the 1980s. Fourteen honorees were started in the 1990s. Finally, thirty three honorees were started since 2000. This group of honorees is by far, our youngest group of companies ever. Hang on Houston; we’ve got some growing to do!

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 3,270 jobs and over $629 million 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 2009. Congratulations to all of our honorees! We look forward to seeing you in next year’s listing.

I have long known that Houston is the best place to start a business, but the facts speak for themselves. Houston, we believe in you! And thanks, for being what you are: The Home of Entrepreneurism.

PKF Texas - The Entrepreneur's Playbook™: What is your Sustainable Competative Advantage?

Fri, 07 Nov 2008 08:00:00 -0600

If you are like most entrepreneurs, you started your company because you saw an opportunity in the market, developed a plan to capitalize on that market, and put a team together to implement your plan.

As your business grew; perhaps distance started to grow between you and the people that make things happen in your business. Communication started to breakdown and before long, your business became the “job” you left to start your company.

How do you get your business back on track? Keep it simple. What separates you from your competition and makes your clients keep coming back? What is your Sustainable Competitive Advantage (SCA)?

Gather your management team and list the things that make your company great. Is it service? Technical know how? Unique product? Whatever it is, expand on it and work to make it even better. Use that SCA to drive your marketing efforts.

Take a hard look at your operations and analyze what could, or should be done to improve.

Ask yourselves:

What are the latest innovations in your industry?
What procedural changes should be in place to make your product or service flow better from order to delivery?
Do you have access to timely and accurate information from your financial system allowing you to make good decisions?

FastTech 50 is Friday!

Wed, 05 Nov 2008 08:24:33 -0600

The numbers have been crunched, the envelope has been sealed and the final preparations for the FastTech 50 luncheon are being taken care of as you read this!

If you are in the tech community here in Houston, then you better be at the InterContinental Hotel in the Galleria on Friday for the 8th Annual Fast Tech 50 Awards. It’s the can’t miss event of November!

This is the eight year of our participation as the presenting sponsor and it will be the best event yet! This is the second year we will be awarding one company the Paul Frison Accelerator Award.

If you don't have a seat you will miss out on the premier event for emerging and tech based companies in Houston. To register visit:http://houston.bizjournals.com/houston/event/4270 or contact Lee Ann Semmel at lasemmel@bizjournals.com or 713-688-8811.

I look forward to seeing many of our friends at the luncheon. A huge thanks to our sponsor group the Houston Business Journal, FOX 26, Capital One Bank, the Houston Technology Center, Oracle Software, Pierpont Communications, Griffin Partners, the Rice Alliance, and Phillips & Reiter, PLCC.

I also want to shout out a personal thank you to my assistant, John Stephenson for doing such a great job behind the scenes working with me to get the rankings established.

And the Winners Are...

Fri, 31 Oct 2008 13:03:00 -0600

I’m here at Texas A&M's Zone Club, within the confines of Kyle Field, where the 2008 Aggie 100 were just announced.

Guest speakers included Richard Scruggs, Executive Director of the CNVE; John White, the Vice Chairman of the Texas A&M University Board of Regents; Dr. Elsa Murano, President of Texas A&M; Dr. Jerry Strawser, the Dean of the Mays School; and yours truly to give the details on the honorees for the Class of 2008.

My speaking role was limited, but the role of PKF Texas in the background and verification process was an enjoyable and tedious process. I want to thank John Stephenson, my assistant for all his help.

Over 650 people attended the Awards Luncheon today. The event was sold out several weeks ago without and marketing effort and is now the hottest ticket on campus!

Major sponsors of the event include: The Texas A&M Foundation, The Association of Former Students, Hollinden Professional Services Marketing, Research Valley Partnership, Infinity Prosports, and PKF Texas.

In addition, Clay Schlinke, CEO of the #1 ranked Aggie business Tesoro Homes and Development, spoke and Herbert Glover, CEO Of last year’s #1 ranked Aggie 100 #1 company challenged the attendees to add to the Aggie 100 Scholars program. The Aggie 100 Scholars program was started last year by the honorees of the Aggie 100 program. Four PhD candidates received proceeds from the scholarship fund.

The singing cadets kicked off the event and followed by lunch.

The highlight of the day was the countdown to the actual honorees.

Below is the list of Honorees:

Acequia, LP
Achilles Group
Advanced Inspection Technologies
AFS Environmental, Inc.
AgniTEK
AGS Scientific, Inc.
Allstar Recycling
AQWA, Inc
BakerRisk
Barhorst Insurance Group, LTD
BJ's Restaurants, Inc.
Bray International, Inc.
Brazos Technology
Bury+Partners, Inc
Cabinrock Investments, L.L.C.
CAPSHER Technology, Inc.
Capstone Commercial Real Estate Group, Inc.
Catapult Systems Inc.
CENTAURI Technologies, LP
CES Environmental Services, Inc.
Chaparral Energy Inc
Clarus Imaging of Houston
Collins, Basinger & Pullman
Command Commissioning, LLC
Commercial Insurance Solutions Group, LLC
Compliance Strategies & Solutions, Inc.
Computer Innovation Services, Inc.
Cypress Advisory Services Ltd., LLP
D&S Factors LLC
Dailey Electric, Inc.
Desert Industrial X-Ray, LP
DrawWorks, L.P.
DSI - American Manufacturing
Earth Information Technologies, Corp.
eInstruction Corp.
Elements Of Architecture, Inc.
Energy Systems Group, LLC
EnerSys Corporation
Fat Tire Bike Tours / City Segway Tours
FiberOptic Bulbs Incorporated
Frontier Truck Gear
Gas Certification Institute
Gill Services, Inc.
Gladstone Inc.
Green Grass Studios
Heritage Wealth Mgmt
Hill Country Electric Supply, LP
Hollinden | professional services marketing
Hotslings, Inc.
House of Forgings, Inc.
Industrial Solutions de Mexico
Intelligent Logistics
Intercontinental Consultants, LLC
Internet Truckstop LLC
JaCody, Inc.
John Moore Services, Inc.
JWA Financial Group, Inc.
Knowledge Systems
Lake Highlands Financial Services, LP.
Land Design Partners, Inc.
Latshaw Drilling & Exploration
Layne's of College Station
LiquidFrameworks
Mackey & Tanner LLC
MacResource Computers
Margarita Naturalmente, S.A. de C.V.
Marquee Tent Production, Inc.
Mechanical Reps, Inc.
Meridian Constructors, L.L.C.
Miner Fleet Management Group
Miner Houston, Ltd.
Mustang Engineering
New Tech Engineering
Next IT Corporation
Olive Barn Inc.
Omega Atomizers / SDA Engineers, LTD.
Oprex Surgery Center of Houston
OTA Compression, LLC
Premier Placement Media, LTD
Project Solutions International (Thailand) Company Limited
Ranch House Designs, Inc.
RBSI Consulting Inc.
RE/MAX Town & Country
REDE, Inc.
River Place Golf Group L.P.
Routh Development Group
Schipul - The Web Marketing Company
Slay Engineering Co, Inc.
Specialty Appliance, Inc
Speech Privacy Systems
Sterling Structures, LP
TDI-Brooks International, Inc.
Team Housing Solutions
Tesoro Homes and Development, Ltd.
The Liere Agency
Vanguard Fire Systems, L.P.
Workman Commercial Construction Services, Ltd.
Zajonc Corporation
Zerenity Sleep Lab of Houston
ZT Investments, Inc.

Update from the Aggie 100

Fri, 31 Oct 2008 08:23:50 -0600

Last night at the Jon L. Hagler Center, home of the Texas A&M Foundation, the Aggie 100 Class of 2008 came together for the first time. Over 250 attended the welcome reception.

Richard Scruggs, Executive Director of the CNVE addressed the crowd and welcomed everyone to the campus. Additional comments came from: Carl Jaedicke, Vice President for Development for the Texas A&M Foundation, Porter Garner, Executive Director of the Association of Former Students and James Lancaster of the Research Valley Partnership.

Today is the big day! I’ll have more later today after the winners are announced! Come back at 1 PM today and see who won.

PKF Texas - The Entrepreneur's Playbook™: Internal University Programs

Fri, 31 Oct 2008 08:00:00 -0600

An effective way to ensure your team meets continuing education requirements is to develop a formalized company internal university training program. Many businesses use the university concept as an umbrella for all of their training and learning activities.

The curriculum should include both soft and technical topics. Examples of non-technical topics include: stress management, networking and personal finance. It is also an excellent tool to spotlight different niche areas within your firm and industry.

Using experts within your firm to make presentations is an easy way to keep costs down. Though many outside speakers will reduce their costs, or speak for free to get the chance to network with your firm.

Opening classes when appropriate, to strategic referral partners, clients, and prospects is great for adding value to your relationships in the marketplace.

It's Aggie 100 Time!

Thu, 30 Oct 2008 01:00:00 -0600

Howdy from the Aggie 100!

It’s an honor and a pleasure for PKF Texas to again serve as the Aggie 100 accountants. PKF Texas strongly supports the Mays School and its Center for New Ventures and Entrepreneurship here at Texas A&M.

A big Aggie thank you to Richard Scruggs, Lenae Huebner, Dean Strawser and Dr. Elsa Murano for your unwavering support of a unique one-of-a-kind program at a “Unique American Institution.” We already know that every Aggie is already a winner. But the Aggie 100 stands for the school’s legacy as well as its future. So how did we get this year’s list of the Aggie 100?

Over 175 companies completed the application process this year. Additional information was sent to our offices in Houston, where we verified the financial information, and reviewed the data submitted by the applicants.

In some cases we spoke with some of applicants to gain additional insight about the business. It took about 6 weeks to review all the applications.

Once we had the data, we calculated the two year compound annual growth rate from 2005 to 2007. Then the individual companies were ranked by their compound annual growth rate to get the Aggie 100. For those or you who won't be able to attend the Aggie 100 Awards Ceremony on Friday October 31, we have another way for you to participate. KBTX television in College Station will be filming the event and streaming it live on their website www.KBTX.com . The coverage will begin around 11:15 a.m. (Central Time) and will last until all the honorees have been announced (around 1:00 p.m.).

Check back at 1:00 PM CST on October 31, 2008 for an update on the winners!

Rice Business Plan Competition Dates/Information Announced

Mon, 27 Oct 2008 11:13:24 -0600

I’ve just received information about the 2009 Rice Business Plan Competition. The Rice Business Plan Competition is the largest and richest intercollegiate new venture competition in the world. Thirty-six of the top MBA and Graduate Schools from around the world will compete for over $675,000 in prizes at Rice University in Houston. The event is judged by over 170 venture capitalists, angel investors, entrepreneurs, and leaders from the technology entrepreneurship community.

2009 Rice Business Plan Competition
Thursday – Saturday, April 16-18, 2009
Rice University, McNair Hall, Jones Graduate School of Management – Houston, Texas

More Information: www.alliance.rice.edu/rbpc

The competition is open to all graduate level teams from any university. Both U.S. and international teams can apply to compete. EVERY team that is accepted to compete is guaranteed to win cash prize money.

If you know of a graduate team or university that should compete, please encourage them to apply.

Intent to Compete Deadline: Friday, February 13, 2009
Executive Summary due: Friday. March 6, 2009, 5:00 PM CST

International schools can apply for early acceptance in January:
   - January 5, 2009 – Deadline to submit Intent to Compete
   - January 16, 2009 – Deadline to submit Executive Summary
   - January 19, 2009 – Early acceptance invitations sent to international schools

Competition Prizes - Over $675,000 in total prizes
• $325,000 Grand Prize – including
     $125,000 equity investment from The GOOSE Society of Texas
     $100,000 investment sponsored by: Opportunity Houston and Greater Houston Partnership
     $20,000 cash: Sponsored by: Kenda Capital & Shell
     $80,000 in services
     Ringing the bell at NASDAQ in New York City
• Over $475,000 in total cash prizes, plus over $200,000 in services awarded
• EVERY team accepted into the Rice competition is guaranteed to win at least one cash prize

Special Cash Prize Categories include:
    • $20,000 – Dow Sustainability Award – sustainability & clean technology cash award
    • $20,000 – NASA Earth/Space Life Science Innovation Award
    • Information Technology Cash Award
    • Energy Cash Award
    • Medical Device Cash Award
    • Life Science Cash Award
    • Intellectual Property Cash Award
    • Hispanic Business Plan Cash Award
    • International Team Cash Award

Other Benefits include:
• Multiple opportunities to receive individual feedback & mentoring

• Largest, most-experienced judging panel
• Over 170 VC’s, early-stage investors, entrepreneurs and business leaders
• More leaders from the entrepreneurship community than any other competition

• Multiple Presentation Opportunities
• All teams are guaranteed to have at least four presentation opportunities

• Best facilities and hosting of any competition
• World-class Jones Graduate School of Management building at Rice
• Over 100 Rice student volunteers will act as hosts and guides

• Low-cost travel, centrally located
• Houston serves as hubs for Continental & Southwest Airlines with two major airports
• Discounted hotel rates & all meals provided for competitors

Who Is Eligible
    • Full- or part-time graduate students: includes MBA, Masters, PhD, and MD candidates from all disciplines
    • Teams with 2-5 team members (at least one team member must be a graduate student)
    • Ventures must be "for profit" entities seeking outside equity capital
    • Teams must be university-affiliated and have endorsement of a faculty member

Ventures must have no revenues or outside equity capital PRIOR to the start of current academic year

Rice Alliance - Houston's Greatest Economic Ally

Fri, 24 Oct 2008 15:58:27 -0600

I just received an email from the Greater Houston Partnership about this year’s Houston’s Greatest awards. You remember that last year PKF Texas was one of the winners and finalists for the People’s Choice award.

This year I’m pleased to report that our friends at the Rice Alliance are receiving a special award for being “Houston’s Greatest Economic Ally.” Congratulations! It’s always great to see good organizations receive the recognition they deserve.

PKF Texas - The Entrepreneur's Playbook™:Keeping Systems Simple

Fri, 24 Oct 2008 08:00:00 -0600

With almost everything in life, complexity is usually not a good thing and simplicity is better. In software, complexity sometimes means both higher costs and less ability to keep the system up to meeting the ever-changing needs of the business. Total Cost of Ownership (TCO) can be a measure of complexity in your IT area.

No business stays the same. You face challenges including, customers demanding new ways of doing business. Challenges include governments setting new regulations. Challenges include companies changing to gain competitive advantage. As is often said, the only constant in business is change. When systems are complex, it means that the company is less able to respond to these challenges. “Systems are often an obstacle to change”, says Olin Thompson of Lawson Software.

A direct benefit of a lower TCO is the pure economic benefit of spending less. Actually, that dollar could be used more effectively elsewhere in the business, for a purpose that offers a higher rate of return.