Entrepreneurship requires determination, patience and fortitude.  These qualities help an entrepreneur get through the very early-stages of the business and when times get tough.  John Mihelich, owner of Woodward Auto, has demonstrated what it means to have these qualities and built his automotive business into a successful entrepreneurial endeavor.

Mihelich has not always been an entrepreneur.  He began his automotive career as a service technician for a European dealership in Birmingham.  His goal was to open his own automotive facility, which he fulfilled in 1988 when he leased a building on Woodward Avenue.  The business was initially just himself and his office manager, Cindy Glaspie, who “has been with us since the beginning.”  In 2000, they celebrated the Grand Opening of their new automotive facility that Michelich designed and built on Woodward Avenue, which services all of his customers’ automotive needs.  The dealership now offers car sales as well as service, repair, accessories, restoration and storage.  The business currently employs 10 full-time staff members.

Mihelich needed a loan to help with building his new location, so he contacted the Oakland County SBA office about their 504(a) loan program.  “We had a great team to work with,” stated Mihelich.  “Together we reviewed the program step-by-step to get the work done to make it happen and now we are halfway through the program.”  In addition, Mihelich was intrigued by the business training sessions provided by the Southeast Michigan region of the MI-SBTDC.  Along with attending several training sessions, Mihelich participated in the Fiscal Fitness program and began working with a MI-SBTDC consultant and Oakland County Business Center ­director, Lola Aré, on their marketing plan.

“We did not have a marketing plan initially.  I’ve always gone with my instinct with regards to our marketing.  But Lola helped us establish a marketing strategy that could help us better target our audience.  We now have programs for different times of the year and we offer incentives based on customer and seasonal needs,” said Mihelich.  They also worked on identifying and marketing some of their key differentiators.

In addition, Mihelich met with Chris Olzem, a Finance and Strategy Specialist with the SBTDC, to go over the company’s financials and identify their corporate needs.  “Chris has been a great resource to us.  He was an integral part in assisting us with the renewal of the company’s real estate and lines of credit,” Michelich commented.  “He has also provided us with a way to review our financial information quickly and easily. It allows our company to identify any problems before they happen.”

Olzem comments the work of Michelich and his team.  “I am impressed by the company’s willingness to adapt and improve their operations by challenging the mechanics and efficiencies of the in-house processes that have evolved throughout the past 20 years.  In the last four months, they have had many discussions with their business manager, their CPA, as well as the MI-SBTDC counselors, regarding ways to improve the overall financial strength and ultimately, the profitability of the company.”

While times in the automotive industry have been rough, Mihelich continues to set high goals for the company.  “We are looking at possibly expanding our facility to a second location.  We are always setting goals.  It never stops,” he noted.

Having built the business from just a small operation, Mihelich also provides some great advice for other entrepreneurs.  “Bear down and stick with it.  Set your goals, understand your financial situation and take advantage of all the great programs and support the MI-SBTDC had to offer!”

Learn more about Woodward Auto at woodwardauto.com

Sometimes, entrepreneurial opportunities arise when you least expect them.  Events occur that turn many small business owners down the path of entrepreneurship that they may not have considered before.  Some entrepreneurs are able to prepare for these opportunities and others must simply address them as they come.   Candy Lauk, owner of Timber Products of Iron Mountain Inc., is an example of an entrepreneur who was able to create a successful small business from an unforeseen opportunity.

Lauk began working for Timber Products in 1991 by helping them with their everyday bookkeeping activities.  Timber Products is a shipping and logistics company that specializes in assisting local manufacturers with their transportation logistics.  In the beginning, they were able to operate with one truck leased from another company.   As their customers in the saw dust and liquid smoke businesses grew, so did Timber Products.  For almost 17 years, Lauk worked every day for the business, however, in recent times, the company’s financial position was discovered to be more serious than previously anticipated.  It was decided that the business would be turned over to Lauk who was now faced with the task of turning around the business.

While Lauk had been an integral part of the company before 2009, she did not have a lot of experience running the business.  Not only that, but one of Timber Products’ biggest customers had recently declared bankruptcy.  She decided to seek help and contacted MI-SBTDC Region 1 office.   She was referred to Jim Beauchamp who had experience with manufacturing and shipping companies.   Beauchamp was excited to help new entrepreneur Lauk with understanding the intricacies of running a business.

“The MI-SBTDC is an excellent service.  All of the consultants were very professional and very helpful.  Jim really took me under his wing and showed me a lot,” exclaimed Lauk.  Due to the past problems, Lauk knew that she would need help with managing the company’s financials in the future.  Beauchamp began to work with her on understanding the cash flow of the business.  They created a cash-flow chart for the business for monthly budgets and Beauchamp suggested Lauk keep a daily diary in order to keep track of everyday expenses. 

“Jim was really great in helping us get a grip on our important details.  We needed help with things like overtime which can really affect a small business,” recalled Lauk.  Together, they also worked on being able to forecast their income and expenses in order to create budget guidelines for the business which had not existed before.   In addition, Lauk and Beauchamp needed to address their external financing problems.  Beauchamp assisted her in creating a business plan which they could use when approaching banks for financing.  Along with the business plan, they worked on organizing and presenting their finances.  Because the business was struggling, Lauk worked hard on showing their banks that the business was turning around.

“The SBTDC has been an excellent resource.  I feel that I can always go to them if I have any questions on finances, human resources or any subject,” noted Lauk.

All the time and hard-work paid off as the business has experienced good growth in the recent months.  Timber Products currently employs 22 full-time and 5 part-time staff.  They have brought on 2 additional owner/operators, and with additional financing, were able to buy an additional truck for their business.  They now have a fleet of 25 trucks and provide logistics transportation to all 48 states.  And as a tribute to their efforts to control their finances, the business has recently seen a profit.  However, Lauk insists that the business will also continue to provide excellent customer service and quality in all areas while ensuring that the costs are closely monitored.

“I would 100% recommend the MI-SBTDC to anyone looking to start a small business,” said Lauk.  She also advises that small business owners should set serious goals and budgets.  She encourages small business to watch their finances closely and control their expenses.  As for the success turnaround of a business she has owned for just 7 months?  Well, Lauk has set goals for the business to reduce their debt and start giving back gradually.  She also hopes to hire more employees soon.  Wherever the business goes in the future, Timber Products remains a great story of entrepreneurial success for all small business owners.

Find out more about our Small Business Team.

If you walked into Aubree's Pizzeria and Tavern ten years ago, Bob Roberts might have greeted you with a drink.  Now, he greets guests with a friendly smile and a one-of-a-kind pizza.  The director of operations for Aubrees Pizzeria and Tavern and the designated owner-operator of their newest restraint in Northville, Roberts is a great story of how hard-work, dedication and loyalty to a family restaurant that has been operating for over 35 years can make an entrepreneur's dream a reality.

The story of Aubree's restaurant begins in 1972 when Bill and Sandee French opened Aubrees in the Depot Town neighborhood of Ypsilanti, MI.  For a long time, the restaurant was what Roberts described as a "beer and shot kind-of-place," where local customers could come and enjoy a drink with friends and neighbors. 

Then in 2001, Bill decided to semi-retire, but along with his retirement came a new vision for the restaurant.  This is where Roberts enters the story.  Bob Roberts joined the restaurant as a bartender just a few years earlier.  Having experience in the hotel hospitality industry, he was a natural for food service and he quickly climbed up the ranks at Aubree's.   When Bill decided that he wanted a new direction for the restaurant, Roberts helped Bill and Sandee and their three sons, Andy, Bryan and Jeff determine the best plan for making a change.

Taking a long look at the current operations, they began to foresee several goals for the restaurant.  At this time, over 90% of the revenues for the restaurant were from the sale of alcohol.  Expanding the menu and creating a diverse selection of food was a strong opportunity for change.   After developing their current pizza product, they realized they had a far superior product and a repeatable production process.  These core competencies gave them the desire and confidence to open multiple locations.  However, they emphasized that they were not interested in franchising.  "Bill feels that most franchises are in the franchise selling business.  We dont want to be in the franchise business.  We want to be in the restaurant business," Roberts recalls.  Bill wanted to offer his sons and loyal employees a springboard to owning their own business by allowing them the opportunity to own and operate their own Aubree's.

At this point, the core management at Aubree's, including Roberts, decided to sit down with Ron Stevens, a business consultant from Region 12 of the Michigan Small Business and Technology Center (MI-SBTDC), to help evaluate the possibility of reaching these goals.  While the opportunities were substantial, Stevens made sure that the Aubrees team understood the challenges of opening new locations during a tough economic time.  "I remember Ron telling us, 'securing financing for a restaurant in 2009 is going to be tough'," recalled Roberts.  "That is what was so great about the relationship. It was open, honest, and full of integrity."

Aubree's and Stevens began a rigorous research and planning process.  Stevens started by evaluating Aubree's current operations for consistency.  Employees completed an online survey which Roberts said, "helped us with our current operations by understanding our core values, processes, and procedures."  Stevens would stop by their locations and take notes about their daily operations in order to better understand how their process worked.  Stevens even helped Aubree's with determining to open the location in Northville.  "I always had the itch, but the more we worked on it, the more I grew into the idea."  They created a business plan and prepared the necessary financial data.  With the help of Stevens, Roberts, and partners Bill and Sandee French, Andy French (Aubree's Chief Financial Officer), and Don Roberts (an outside investor and Bob's brother), they were able to obtain an SBA loan through Citizens bank.  Roberts called Stevens, "a great sounding board" who he could come to with ideas and get honest feedback.   He remembered a great example when Aubrees began the hiring process for the Northville location when Ron suggested creating a job fair.   "We had never thought about the idea of doing a job fair until Ron suggested it,he recalled.  "He provided us with questionnaires and applications and even had a few interns to help us with the process.  It was a great success."

Aubree's opened their Northville location in September and they are continuing their steady growth through an emphasis on fresh food and great service.  They have expanded their operations to include a full-menu delivery service and online ordering while keeping their focus on their customer experience.  "Our branding is very simple.  We are over-the-top friendly, serving really good pizza in a family friendly sports bar," acknowledged Roberts.  As for Roberts, he hopes to partner with his brother and another investor on the opening of an Aubree's in Wyandotte during the first half of 2010.

Having worked his way up to having ownership in his own restaurant, Roberts offers advice for new small business owners.  "You can't do enough research and planning," he emphasizes.  "Listen to what people are saying and get a knowledgeable executive team together that you can trust will give you honest advice.  It's hard to do but you have to set your business ego aside and take your emotions out of the decision making."  As with most new business owners, he identifies financing as a critical point, "Make sure you're not under-capitalized."  He appreciates all the help the MI-SBTDC was able to provide.  "Ron offered years of experience with great business knowledge.   He always ended every conversation with, 'Is there anything else I can do for you?' which was great for us."

From the time he was a kid, Keith Brophy had an interest running his own business.  The entrepreneurial seed germinated throughout his college years pursuing a degree in computer science at the University of Michigan, an eight-year stint at IBM in Washington, D.C. and sprouted when he landed a job in his home town, returning to his Grand Rapids roots.  He joined a company that was a magnet for IT personnel and expertise; a company that grew from $15 million to a $100 million company during his tenure. 

“During this time, I continued to think about starting my own business,”  Brophy relates.  “During my off-work hours, usually between 10 pm and 2 am, I started writing books on emerging technologies relating to the internet,” he continued.  His third book was translated into 14 languages and he began receiving emails from all over the world relating to internet and software issues and questions. He began to think that he could actually build an internet focused business.  Simultaneously, he had the opportunity to hear Bill Gates expound that this new era of technology represented the easiest time in history for an entrepreneur to start a business.

Brophy and a small group of his colleagues spent considerable time deliberating the wisdom of starting a company of their own.  While they were wrestling with this decision, Brophy’s mother, who frequently clipped news items relating to his interests, sent him an article on the Small Business Technology Development Center (SBTDC), a network that offers business counseling and training to those in business or interested in starting businesses.  “I stuck the article in my sock drawer, I thought it was just another gimmick,” Brophy relates.  He came across the article a short time later and decided to give the SBTDC a try.  “It was one of the smartest things I’ve ever done,” Brophy states.  “The SBTDC took me through each step of starting a business.  Nancy Boese, business consultant, and Carol Lopucki, at the time center director, taught me  business infrastructure; connected me to attorneys, CPAs, marketing specialists; and, most importantly, gave me the encouragement to start my own company.”

Sagestone Consulting was launched in Brophy’s basement in 1996 with  $100,000 pooled from Brophy and his former colleagues, now co-founders.  The company started growing right away, developing custom web software based on Microsoft technology, initially for Michigan customers and quickly expanding its customer base throughout the country.  Sagestone continued to take advantage of the SBTDC, receiving services and training in financial projections, marketing and sales techniques.  “My vision for Sagestone was to build the software scaffolding for our community and I think we achieved that vision.  I am proud that Sagestone built software for 21 of the top 25 west Michigan companies,”Brophy states. 

Despite becoming one of Microsoft’s top partners, creating Sagestone Asia in Shanghai, China, and having a coast-to-coast business base, Sagestone repeatedly faced challenges when it came to conventional bank financing.  “On three separate occasions we put intensive development into new software products and were successful in selling these products. When we sought financing for these ventures we were told no by the banks because they didn’t understand our business,” Brophy relates.  “It was frustrating.  I wanted to take the company to the next level and become a world class company but the banks just didn’t cooperate even though they agreed I had a great book of business,” he continues.  Brophy used his personal resources to explore the acquisitions market to find a complimentary company.  After searching nationwide, Brophy found the company he was seeking – in southeast Michigan.

In 2005, NuSoft Solutions acquired Sagestone Consulting.  The new company now combined NuSoft’s expertise in IT infrastructure with Sagestone’s specialized web and custom software development solutions.  Brophy and Dale Mansour, NuSoft Solutions CEO, had similar business perspectives and both believed the new company could become a national leader in the IT market.  “While the move was technically an acquisition, it felt more like a merger. The visions of NuSoft and Sagestone were extraordinarily aligned and joining forces significantly enhanced our capabilities,” Brophy states.  Together they built one of the largest privately held technology solutions companies in the U.S.; a company with a team of nearly 200 people, a Microsoft Gold Partner and a solid national reputation.

Brophy’s relationship with the SBTDC continued to evolve.  Referrals now were two way and Brophy often became a mentor or advisor to other SBTDC clients.  His strong sense of contributing to his community became part of his business operations.  He helped the SBTDC with its web solutions; launched a technology council at the Right Place, the Grand Rapids area economic development organization; and co-founded the Michigan Homeland Security Consortium which aimed to open up opportunities for small companies to enter the defense and homeland security markets.

Both Brophy and Mansour now believed the time was right for NuSoft Solutions to transition from a privately held to a publically owned company.  An IPO seemed an unlikely option, so Brophy embarked on a two-year search for the ‘right’ company to acquire NuSoft. They had done their homework and established specific criteria as the basis for any acquisition consideration.  They knew they wanted to remain an independent business unit; continue to be recognized as an industry leader; keep the company team intact; maintain their Microsoft focus; and remain a U.S. company. 

In 2008, Brophy found the company that would allow NuSoft to respond to more opportunities and increase the scale of its business in RCM Technologies.  “RCM was interested in NuSoft because it lacked expertise in Microsoft technologies and we were interested in RCM because we were increasingly running into scalability issues with larger client projects,” Brophy states.  New Jersey headquartered RMC is a diverse provider of IT and engineering services and purchased NuSoft Solutions to enhance its competitive advantage by allowing customers and prospects to select a single partner for many or all of their complex technology needs. The acquisition of NuSoft resulted in the creation of a new RCM business unit, Enterprise Integration Services, headquartered in Michigan.  Brophy, now RCM Vice-President of Enterprise Integrated Solutions, is excited by what he sees as building business momentum. “The fact companies in all sectors are transforming, shifting and finding new business models offers great software opportunities and increasing web activity for us.  I also tremendously enjoy interacting with emerging businesses; helping them create software, working to foster their growth and generally providing what counsel I can,” Brophy relates.

Brophy views himself as one of Michigan’s business success stories – he’s evolved from a basement operation to become an integral part of a global company.  “I must acknowledge the SBTDC and its key role in my success.  The encouragement and practical advice the SBTDC has provided along every step of our journey has been invaluable”, Brophy states.  “RCM has given us long term stability and solidified our team.  They have ensured that Michigan software engineers will continue to create software for companies all around the world.”

Advanced Battery Concepts is a company with an exciting new power play.  The company has developed a proprietary battery electrode technology, branded GreenSeal™, which is anticipated to enhance lead acid battery power tenfold or nearly double the energy, without additional material costs. According to company founder and CEO, Ed Shaffer, “GreenSeal™ technology has an additional advantage; it makes traditional lead acid batteries feasible for new applications such as plug-in hybrids and electric vehicles. Shaffer indicates that GreenSeal^TM affords reduction in product weight and size and increased cycle life.  Additionally, because GreenSeal™ can make use of the existing lead acid manufacturing and recycling infrastructures, Advanced Battery Concepts has a significant competitive advantage over other battery chemistries.”

The history of this Midland, Michigan company tells an interesting story.  Shaffer, a MIT Ph.D with 20 years experience in advanced materials, relates, “When we were making the decision whether to locate Advanced Battery Concepts in California or Michigan, we agreed it had to be Michigan.  Michigan had the infrastructure to support our company, in large part due to the Michigan Economic Development Corporation (MEDC) and its advocacy for growing new technology companies such as ours.”

Shaffer further relates that, “the company’s GreenSeal™ technology can be a vital part of accelerating the adoption of new technologies in the electrification of vehicles, alternative energy and in the military and defense industry.”  Advanced Battery Concepts currently has an agreement with California-based Concord Battery Corporation to assist with manufacturing batteries and to jointly develop a battery for military applications. Additionally, Advanced Battery Concepts is working with three other lead-acid battery producers on similar agreements and hopes to publicly announce them soon.  “By 2010, we will have completed prototype development and will be working with a number of manufacturers in various industries to field test our batteries,” acknowledges Shaffer.  “There are a number of Michigan companies that use lead acid batteries interested in our technology,” Shaffer continues. Zwas states, "Within two years we will have placed our batteries in several niche markets. While the cost of manufacturing will be the same, we can charge a premium price for our batteries because of the savings and performance enhancements these batteries will yield."

Despite its status as a new company, Advanced Battery Concepts has already achieved a striking degree of success.  In May, the company presented to a large group of investors at the Michigan Growth Capital Symposium. The annual symposium, one of the longest running programs of its kind, brings together investors from across the country, executives of early stage and emerging growth companies and related stakeholders.  A carefully screened group of high-potential companies present to an audience of venture capitalists, angel investors and institutional investors, and Advanced Battery Concepts generated a significant amount of interest with its pitch. In June, the Great Lakes Entrepreneurship Quest (GLEQ) hosted its Statewide Business Plan Competition Award Ceremony with partner organizations Automation Alley and NextEnergy.  In the New Business Idea category, Advanced Battery Concepts received the first place $5,000 award.  The company went on to receive two other innovation awards; the Automation Alley Advanced Manufacturing Innovation Award of $12,500, and the NextEnergy Alternative Innovation Award of $10,000.  Finally, the team closed on a $250 thousand investment in early 2010 from the Blue Water Angels, a formal angel investor group based in Midland. 

It was the Michigan Growth Capital Symposium that connected Advanced Battery Concepts to the Small Business Technology Development Center (SBTDC).  Each of the 32 companies chosen to present its ten minute investor presentation at the symposium was required to work with the SBTDC to polish its pitch.  “What a stroke of luck that was for us,” relates Shaffer.  “The SBTDC has been a fantastic resource for our company and instrumental in whatever success we’ve had to date. Tech team business consultants, Phil Tepley and John Balbach provided coaching and guidance on our recent presentation to investors, connected us with additional services and networking opportunities, and helped us build our business model.  SBIR specialist, Anna Bier, has been of unbelievable assistance in helping us prepare our SBIR application submission for a phase 1 federal research grant.  Her guidance and reviews resulted in a four-fold improvement in our proposal.  While the award won’t be granted until later in the year, our expectations for success are high. I can’t stress strongly enough how important it is to have people like Phil, John and Anna available to businesses in Michigan.  I look forward to our continuing relationship with this terrific network,” Shaffer explained.

Phil Tepley, manager of the SBTDC technology consultants states, “Advanced Battery Concepts is the kind of company we want to see succeed and grow in Michigan.  It’s a company that has incredible potential and one that can clearly help diversify the state’s economy.  We not only want to continue to work with them but to help them capitalize on the exposure they’ve recently received.  This is a company to watch.”

Kalexsyn Opens the Doors of Opportunity

The closure of the Discovery Research operations at Pfizer in 2003 didn’t close the doors for two employees; it opened the doors of opportunity. Dr. Robert Gadwood and David Zimmermann had worked with numerous contract research organizations (CROs) worldwide while at Pfizer and its previous incarnations, The Upjohn Company and Pharmacia. Based on their client experiences they identified three clear areas that CROs often failed to deliver to their clients:

• True medicinal chemistry experience and synthetic chemists that have made a biologically active molecule
• Scientists that have the experience to solve complex synthetic problems
• The ability to effectively communicate and collaborate with a pharma partner

In April of 2003, co-founders Dr. Robert Gadwood and David Zimmermann formed Kalexsyn to provide small to medium pharma companies with these services other CROs could not.

Robert and David formed Kalexsyn with the intent to focus services around these three areas. In order to do this Kalexsyn needed to hire medicinal chemists, experienced in multiple sciences, and they found them right in their own back yard. Due to a downsizing at Pfizer Pharmaceutical, the area was flooded with chemists who did not want to leave the Kalamazoo area. “The workforce was suddenly available to us, and these people (chemists) could not be found in any other city,” commented Robert. 

In addition to the workforce being available, Kalexsyn decided to build their business in Kalamazoo because they saw an opportunity. “We recognized the business opportunity in Kalamazoo and wanted to stay here,” stated Robert. When Pfizer downsized they donated much of their laboratory equipment to Western Michigan University, who in turn allowed Kalexsyn to purchase this material at a great price.

The Southwest Michigan Innovation Center was the home of Kalexsyn for four years, and then they built their own research facility in the Western Michigan University Business, Technology and Research Park in 2007.

Since Kalexsyn’s inception in 2003 they have experienced significant growth. “We hired our first two chemists in March of 2004,” stated Robert Gadwood. “Kalexsyn went from two employees and zero chemists in 2003 to a staff of thirty, including twenty-two chemists in 2008.” 

Kalexsyn’s growth is attributed to working hard at growing the company. “We found a niche working with small and medium pharma companies that need a higher level of chemistry support than what they were receiving,” stated Robert.  Kalexsyn continues to grow this need, particularly in the synthetic medicinal chemistry market. “We pride ourselves for turning projects around in a shorter time than our competitors, while also offering a higher level of quality of chemistry,” stated Robert. “We provide quality and timeliness.” 

Kalexsyn’s customer base is primarily from East and West coast locations.  They do have customers in Michigan, which accounts for a small portion of Kalexsyn’s customer base. Robert is expecting Asian and European markets to expand in the future, but the growth is not expected to exceed their national growth. “Most companies are usually global, there is no reason for them to stay local,” stated Robert. “Customers seek vendors who provide the greatest value for their dollar, regardless what distance is between them.”

“We are continually working on becoming a small but highly advanced CRO with less than 50 employees; a company that is thought of as providing solutions to hard chemistry problems with high performance, and agility,” commented Robert.

In 2003 Kalexsyn started working with Michigan Small Business and Technology Development Center (SBTDC) Business Consultant Melissa Angel. Robert and David attended a series of SBTDC presentations regarding the Pfizer downsizing.  Melissa offered one-on-one meetings with clients to discuss their business ideas. “There were many people giving us advice, some good and some bad. ” stated Robert. “Melissa was very knowledgeable and was very encouraging. She was credible and gave great advice.” 

“The SBTDC team was extremely important to get us on track to build a small business.  There are a lot of people that talk “fluff” and the SBTDC didn’t.  They helped with the nuts and bolts of starting and growing a business. They addressed the practical everyday needs of a business,” stated Robert.

“I am very grateful the SBTDC was and continues to be available.”  The first couple of years in business were very tough,” stated Robert. “It was good to have a business consultant to discuss situations that we encountered.”

This technology holds enormous promise, not only for flight applications but for other industries such as wind energy.  In fact, it is the knowledge obtained from their Defense Department funded work on wing development that is directly attributable to positioning FlexSys Wind Energy ahead of competitors in the wind energy industry.  Rich Vander Veen, FlexSys Vice-President for Business Development for Wind Energy, who is also a successful wind farm developer says, "I am eager to see the benefits of the FlexSys Adaptive Edge system realized in large scale wind farms."

Bob Gavin, President and CEO of FlexSys Wind Energy states, "The technology for constructing these seamless, flexing trailing edge wing flaps is significantly advancing the next generation rotor blade technology that FlexSys Wind Energy has developed for wind turbine blades.  Our technology specifically addresses the two principal limitations in the wind energy industry relating to the cost of energy produced – energy capture and system fatigue."  Larger wind turbine blades capture more energy but fatigue stresses increase exponentially with blade length.  Large wind turbines must operate under very turbulent and unpredictable environmental conditions.  Due to these factors, the loads on the blades vary over intervals of time much shorter than today's variable pitch blade rotors can respond. The goal of FlexSys Wind Energy is to capture more energy in low winds with longer blades, while controlling loads in high winds. 

According to Greg Ervin, FlexSys Wind Energy Operations Manager, "The key characteristic of our Adaptive Edge system enables turbine blades, for the first time, to respond to incoming wind through continuous sense-and-control.  Our patented technology has been extensively analyzed by Sandia National Laboratories, operated by Sandia Corporation for the U.S. Department of Energy.  In short, our technology allows blades to respond to varying wind speeds by changing the aerodynamics of the blade almost instantaneously".  Erven further explains, "By adapting blade shape to varying wind conditions, the FlexSys Adaptive Edge system offers a 15% increase in energy capture and a significant reduction in fatigue damage to the blade, thereby reducing manufacturing costs, operating costs and insurance costs." 

The Sandia National Laboratories experts have, in fact, demonstrated through sophisticated aerodynamic simulations, that the FlexSys Adaptive Edge can reduce turbine blade fatigue damage by 75%.  This kind of damage reduction means that with this technology either the turbine or tower for a given size rotor can be built with less material, maintaining the same energy capture; or a larger rotor can be used with the existing tower and drive train, resulting in an increase in energy capture.  "Either option will lead to reductions in the cost of energy," relates Gavin.  Jose Zayas, manager of Sandia Labs Wind Technology program states, "As a national lab and leader in wind turbine blade design we are well aware of other load control technologies that are being considered in the wind energy community.  In our opinion, the patented FlexSys technology is one of the most promising technologies being considered.  While other organizations are rushing to develop similar technology, FlexSys has already flight tested and fatigue tested the metallic rendition of its version.  As a result, FlexSys appears to be much closer to commercial application than the other organizations".

FlexSys Wind Energy has been aggressive in seeking out resources that can help the business grow.  Through Ann Arbor SPARK, the area business development organization, the company has connected with the Michigan Economic Development Corporation and the Michigan Small Business Technology Development Center.  In 2008, Kayo Ramirez, business technology consultant for the SBTDC began working with FlexSys.  "Kayo has had such a positive impact on our company.  He contributed significant assistance in the development of our business plan, continues to be a sounding board and resource and bends over backwards to help us move forward," relates Gavin.  "The technology developed by FlexSys Wind Energy can dramatically alter the way wind energy is captured and significantly reduce the costs of producing wind energy.  The technology is tremendous", states Ramirez.

Bob Gavin acknowledges, "FlexSys Wind Energy has a key challenge ahead; we need to prove our technology to the marketplace by building and testing a utility scale prototype.  We are actively seeking funding partners to meet these challenges." Venture Capital firms have exhibited keen interest in what FlexSys has developed but the company's principals are concerned that as often happens with venture capital financing, the company must move where the money is and FlexSys wants to remain in Michigan.  "We want to stay in Michigan, manufacture FlexSys components in this state and ship them around the world.  We see FlexSys as a perfect representation of what Michigan needs to do – take a traditional manufacturing base and transform that base into producing a higher value added product that produces good jobs and green technology," emphasizes Gavin.