Business formations on the rise statewide

Social-assistance employers led the way in business formations, representing nearly 35 percent of all Missouri startups last year.

According to a recent report by the Missouri Department of Economic Development, the Show-Me State birthed 17,503 businesses in 2014, up 2.3 percent compared to 2013 and nearly 10 percent over 2012 formations. The social assistance category far outpaced all others in Missouri last year with about 6,000 businesses formed.

In 2014, 595 companies were created in Greene County.

On March 10, Wagner Huttenlocher of VanServices LLC started his own centered on social assistance, which as a sector includes in-home caretaking and cooking.

“People are living longer and are often in nursing homes and retirement communities, so the need is there,” Huttenlocher said, noting he’s been transporting one to two wheelchair-bound clients per day. “I have been busier than I thought. I thought I would have been doing nothing but marketing.”

A longtime soccer coach, Huttenlocher was a part-time remodeler and salesman before taking a leap of faith on his business venture. He spent about $30,000 on a wheelchair-accessible van, and total startup costs including insurance came in under $40,000.

3 for every 1,000
Citing Bureau of Labor Statistics data, the DED report indicated 77 percent of business formations occurred in urban areas, but southeast Missouri had the most new businesses per capita. On average, 2.9 businesses were formed for every 1,000 Missouri residents, up slightly from 2.8 in 2013. Over 55 percent of Missouri counties recorded an increase last year in business formations. Greene County reported 580 formations two years ago.

The second-highest category last year was in professional, scientific and technical services, which recorded nearly 2,000 business starts in information technology, law and accounting, and engineering services.

Matthew Ennis, president and CEO of Reachmodo LLC, formally established the marketing company with Tyler Headley in April 2014 after two years of running it in beta mode.

With a background in nonprofit management and entrepreneurship, Ennis identified a way small businesses and nonprofits could reach multiple audiences through a single platform. Last year, Ennis left his position as vice president of business development for Springfield-based nonprofit Rainbow Network to concentrate on growing his new business. Reachmodo software manages five marketing channels – text messages, email, social media, instant messaging and voice broadcasts – through a single platform. Clients include Branson-based Northwoods Candy and Donny Bryant Massage Therapy in Springfield.

“Reachmodo had reached a point where it really needed a leader fulltime,” Ennis said, noting text marketing was becoming an increasingly effective way to connect with customers. “We knew that 99 percent of those messages were being read within three minutes. We wanted to be an effective tool that small businesses and organizations can use to reach their customers.”

More forming
A key local employer, the manufacturing sector accounted for 242 new businesses in 2014, 172 of which where launched in urban areas. Still, manufacturing didn’t hit the DED’s Top 10. Other categories with the most new businesses include administrative and support services, No. 3; wholesale electronic markets and agents/brokers, No. 4; and food services and drinking places, No. 5.

Ennis said he’s not done forming companies. Plans are in the works to start three Web-based businesses this year under his umbrella company, Matthew Ennis Group LLC.

“I have launched several brands and either sold them or grown them,” Ennis said, adding he has sold a group of employment websites to various media outlets, but declined to disclose their names, citing nondisclosure agreements. He also sold a book of business tied to a nonprofit consultancy he started.

“Have a dream. Believe in the dream, believe in yourself and do not waiver,” he said, advising other entrepreneurs. “With each business venture I look at, I ask myself, ‘How does this help others?’ Not, ‘Is this going to make money?’ Not, ‘What is this going to do for me?’ For me, that passion for helping others allows me to work diligently so all the other pieces can fall into place.”

Helping others is part of the goal, but so is paying the bills, said VanServices’ Huttenlocher, who charges $30 one way or $50 round trip for rides within 10 miles of Springfield.

“Of course, I need to pay for my investment and make some money. But at the same time, some of those moments have been fantastic,” he said, noting he recently helped a lady living in a retirement home who hasn’t dined out with her family for a couple of years. “She found out about this business, and we were able to take her to Red Lobster for her birthday. She was very delighted.

“When I go to a facility, people are pleased to see this opportunity.”