Hartford Business Journal

www.HartfordBusiness.com • January 22, 2018 • Hartford Business Journal 21 OTHER VOICES Amazon's not coming, what's plan B? By Bruce Carlson T he state of Connecticut developed a magnificent vision and plan in its effort to attract Amazon's second headquarters, HQ2. Now that we know it wasn't successful, here is plan B for how Connecticut can build its own technology sector. There are over 6,000 technology compa- nies in Connecticut. We only need to grow 10 jobs in each to exceed the number of jobs Amazon is offering over 10 years, and we can do it much less expensively and more quickly. And we can start tomorrow. The first step is to get an understanding of what these scaling companies need. The Connecticut Technology Council conducted a survey of CEOs of local tech companies. Of course these companies need fund- ing, but investment alone won't help them grow. These companies need better ways to source talent, connections to local large corporations and state government, mar- keting guidance to increase sales, and net- working opportunities with other growth company CEOs and entrepreneurs who have successfully grown companies. These are not insurmountable is- sues and they can be addressed through the development of a strong growth company network in Connecticut. Some of this network already exists, but we need to coordinate and curate it. If that sounds difficult, remember we have millions of dollars that would have otherwise gone to Amazon to attract them here. For a fraction of that budget, we can create an accelerator program for each of Connecticut's major industries. This accel- erator can be created and supported by the industry itself and designed to attract com- panies that are on the bleeding edge of that industry's technology, or at the intersection of multiple industries (think healthcare IT). In this way, our leading industries aren't waiting for disruption to happen to them. They are encouraging it while they prepare to adopt the new ideas. The CTNext In- novation Places program has funded an in- surtech accelerator in Hartford, a medtech accelerator in New Haven and a fintech accelerator in Stamford. This is a great start. However, Connecti- cut has a history of funding programs and projects at a sub-sustaining level. Instead of allowing these accelerators to falter due to lack of resources, let's adequately fund these accelerators and bring in operators with a track record of success. Following the best practices of others, Connecticut can create a concierge service to connect scaling companies that need support to grow with resources in the network. We already have great examples of how successful this can be in different parts of the state, but by having them dis- connected, we aren't getting the opportu- nity for critical mass and network sharing. Fully funding this opportunity would get more companies growing faster. Of course, a piece of this puzzle has to be addressing financing issues that are unique to scaling companies. Let's design programs that recognize that unique- ness and respond to it. For instance, large corporations often pay invoices after 90 days, yet expect delivery long before that. Companies that want to supply to these large corporations need to have working capital to allow them to bridge that 90-day gap. Even with invoice in hand, banks are unwilling to provide the funding needed. Simply by coming up with a loan guaran- tee program, Connecticut can allow many of its small companies to grow based on new business for which that company can now compete. There are many examples like this, if we decide to look for them. Once we build a healthy scaleup en- vironment, we will be attractive to the thousands of companies that have started in Cambridge, Mass., and Brooklyn, N.Y., and are thinking about their next stage of growth. Think of the sticker shock for those companies as they contemplate lease rates while growing from five to 50 employees. Hartford has space that is one-third to one-half the cost. Let's get this program in place now, so when those com- panies that are less than two hours away are looking for a new place to grow, they only have to look as far as Connecticut. After years in the economic development business I still root for the "big bang" if pos- sible, but have found that slow and steady will always win the race. It takes longer, it re- quires vision, patience and persistence, and fortunately, we capitalize on what we already have in place. Let's get started. Bruce Carlson is president and CEO of the Connecticut Technology Council, a statewide association of technology- oriented companies and institutions. HARTFORDBUSINESS.COM POLL LAST WEEK'S POLL RESULT: Bruce Carlson NEXT WEEK'S POLL: Do trans-Atlantic flights out of Bradley Airport have long-term viability? To vote, go online to hartfordbusiness.com BIZ BOOKS Essential daily exercises and habits for entrepreneurs By Jim Pawlak "The Entrepreneur's Book of Actions — Es- sential Daily Exercises and Habits for Becom- ing Wealthier, Smarter and More Success- ful" by Rhett Power (McGraw-Hill, $26). With weekly to-do advice broken down by days, Power cre- ates an easy-to-follow guide for running your business without ruining your life. Here's the agenda for the first few weeks: Weeks 1 and 2: "Passion and purpose" and "stepping stones" deal with self- awareness and motivation. Start with "Why do you do what you do?" Your answer should define the purpose for your busi- ness and personal lives. It should address what makes you happy, what you're good at and what you should be better at. With purpose defined, think about what you need to do more of and less of to add value to the lives of those around you, and your community. Prioritize a one-step-at- a-time plan. Make a checklist and review it daily to maintain focus. If you didn't achieve what you wanted, write down what stopped you. (Power firmly believes that many stops are self-inflicted by mood, which affects attitude.) In the short term, expect your "stop" list to grow because you'll be more aware of what's holding you back. Long term it will shrink as your awareness results in actions, which minimizes their impact on progress. Motivation also involves looking at the company you keep. How many of your friends are uppers? Downers? Work your world around the uppers and put the down- ers on the "to-don't" list. An added benefit of surrounding yourself with uppers — you'll see change as opportunity, not as a problem. Power suggests a way to hold yourself accountable for your actions: Each day, give a friend or co-worker some money to hold. If you complete your to-do list, you get the money back. If you don't, the friend keeps the money. Reward your achievements and recog- nize those who helped you earn the reward. Key takeaway: "What will you be remem- bered for if you never push yourself to be anything more than you are today?" Jim Pawlak Book Review Will the new federal tax reforms help or hurt Connecticut in the long run? 73.6% Hurt 26.4% Help 8.8% Little Impact READER COMMENTS: "It is raising awareness of the fact that Connecticut's property tax rate is way out of whack compared to most of the U.S. If you doubt that go on Trulia and look at the property taxes on the homes for sale in most places. That means long term, Connecticut will need to address it or they will see more and more people calling other states home." "They should help force Connecticut to get its fiscal house in order. No more tax deductions for such a high-tax state. People are moving out. I plan to in the next three years. Hopefully I can sell my house to someone who wants to stay here." "It will lead to more people exiting the state, especially higher earners." "There are over 6,000 technology companies in Connecticut. We only need to grow 10 jobs in each to exceed the number of jobs Amazon is offering over 10 years … ."

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