2011 B.E. Small Business Award Winners

Launching a small business is a huge undertaking. While short on resources yet long on stresses, costs, and challenges, it takes a certain type of person to develop the right recipe to run an upstart successfully. But pour in a cup of passion; a hearty helping of dexterity; and a few tablespoons of planning, organization and vision and you have our 2011 Small Business Awards winners. (Meet the 12 Award Nominees)

Announced earlier today at the Small Business Awards Luncheon during the Black Enterprise Entrepreneurs Conference + Expo hosted by Nationwide in Atlanta, the awards recognize those companies exceeding expectations and seizing opportunity to maximize both bottomline and reach.

Along with these honors, The Community Champion Award is also presented during the luncheon. Given to activists and entrepreneurs dedicated to giving back and supporting the underserved, Black Enterprise presented this year’s award to Frank and Tanya Rodriguez, co-Founders of the Frank Ski Kids Foundation. The Atlanta-based organization uses activities and abroad trips to stretch young people beyond their options and surroundings. For more on the Rodriguezes’ efforts, read their story here.

From teens to tech and from next to now, here are Black Enterprise‘s 2011 Small Business Award winners. Take a look, then offer your congratulations to these outstanding small businesses in the comments box below.

TEENPRENEUR AWARD
Teenprenuers discover their passion for entrepreneurship at an early age and forge ahead full steam. This award recognizes entrepreneurs, age 19 or younger, committed to the tradition of Black business achievement.

• AJ’s Hawaiian Iceez
• Type of business: Flavor shaved ice cream and frozen desertsvendor
• Co-Founder/CEO: Adam N. Holland
• Co-Founder/COO: Jonathan K. Holland
• Location: Brandywine, Maryland
• www.ajsiceez.com

AJ’s Hawaiian Iceez is not your average frozen treats business. In fact, it’s run by two teenage brothers with a taste for expansion.

The Holland brothers, Adam, 15, CEO, and Jonathan, 14, COO, sell their deserts at public and private events from April to October. The Maryland-based company brought in $36,000 in 2010, propelled largely by the addition of custom trailer, which operates as a mobile unit. Last spring they also secured a contract with the US Department of Agriculture to service their weekly Farmer’s Market. The brothers have no plans to settle just yet, the two look to replicate their profitable business model through franchising.

How important is taking risk in what you do?
Adam: One huge risk we took last year was servicing Artscape in Baltimore. While the event has a history of vendor success, and a plethora of eager consumers; the vending fee was $2,500, there would be many competitors in attendance. After weighing the pros and cons we decided to pay the hefty vending fee and service the event. This turned out to be the right decision in that the payoff, as a result of that risk, was over $8,000 gross revenue.

We’ve seen a shift in technology and in the economic sphere over the past few years, how has this made you re-think the way you do business?
Jonathan: It has influenced us in evolving specific aspects of our company, namely branding. We now have a Facebook fan page that lets customers know where we will be serving our products, in addition to our website (www.ajsiceez.com). We offer specials to any person who goes to our fan page and tells us the flavor of the day. We also generated a Quick Response Code (Q.R. Code) and strategically placed it on our mobile trailer, to allow customers to scan the code, and to go to our Facebook fan page.

BE NEXT AWARD
Exhibiting dogged determination, often unmatched by their peers, BE Nexters–a hand-selected group of entrepreneurs between the ages of 21 and 35–represent the future of business innovation. This award is presented to the fearless young entrepreneur tapped to be the future business leader.

• Roadstarr Motorsports Inc.
• Type of business: Automotive customizationcompany
• Co-Founder/Co-President: Hassan Iddrissu
• Co-Founder/Co-President: Hussein Iddrissu
• Location: Los Angeles
• www.roadstarr.com

As the financial meltdown shocked the business world, Hassan and Hussein Iddrissu were faced with a dilemma: layoff employees or risk losing their business. With auto customization ranking low even amongst Roadstarr Motorsport’s affluent customers, the Los Angeles-based company began to feel the pinch. But instead of getting rid of employees–”the greatest asset of the company,” insists Hassan, co-President–the Iddrissu brothers increased overhead and diversified their revenue model.

“[We’ve] been able to turn a local business into a multi-international business by utilizing the relationships we have built… To top it off, it has created a platform for us to be in partnership with an oil company UBI Petroleum in Ghana and hopefully Spain in 2013,” says the 33-year-old.

The business now operates in 15 locations within UBI Petroleum gas stations offering wheel and tire mechanical services as well as troubleshooting.
While the brothers make headway with UBI, they are also expanding their core business to Europe, Toronto and other parts of Africa.

What is Roadstarr’s competitive advantage?
Hassan: Our competitive advantage is layered in our multi-national background, customer service and our daring ways to want to be different in the services and products we provide in comparison to our competitors.

We’ve seen a shift in technology and in the economic sphere over the past few years, how has this made you re-think the way you do business?
Hassan: Within the multi-media part of our business, most manufacturers now offer from the factory services and accessories such as navigation, reverse camera, DVD player and entertainment package. That has created a downturn demand in the aftermarket accessories in multimedia–perhaps about a 70% drop demand. But technology has also made some of our business executive packages more appealing due to a demand for wifi and handheld portable computers.

What is the single most important part of your strategy that guarantees your success?
Hassan: Be honest with clients at all times. Not to mention, research and development, and being innovative tying in technology into your business.

INNOVATOR OF THE YEAR AWARD
Whether it’s a new service, product, or type of business model, these creative entrepreneurs will have an indelible impact on the way business is done. This award is given to a business approaching entrepreneurship in an innovative or groundbreaking manner.

• MagnoGrip Inc.
  
• Type of business: Manufactures magnetic tool storage gear and accessories
• Founder/CEO: Andre Woolery
• Locations: San Francisco, California and Shenzhen, China
• www.mdgtools.com

When Andre Woolery assembled his handy magnetic wristband, which kept tool bits close during ‘round the house handy projects, he soon realized he had a potential business on his hands. The then MBA student went into action tapping into his Stanford University classmates and their networks to get the MagnoGrip Magnetic Wristband patented. Woolery performed thorough market research, pinpointing several hardware stores within a 20-mile radius of his Menlo Park, California home, to pitch his product to on consignment. The Jamaican-born entrepreneur first brought his product to market in 2005. Since then, the wristband has made its way to more then 1,700 Lowe’s hardware stores, Home Depot, Walmart and Costco.

But the growth hasn’t been without risk.

“I ultimately decided that if they were willing to test market our products, then I should be able to sell out my first production run,” says Woolery about the local sales runs.

He has since extended the magnetic handiwear concept to include Quick Snap, a magnetic tape measure holder, a magnetic drill holder and a nine-pocket magnetic electrician pouch–all launched in 2011. The 35-year-old also launched a second office in Shenzhen, China.

What propelled you to start the business?
I started MagnoGrip because I felt that our first product, the magnetic wristband, solved a pain point that do-it yourselfers and pro-contractors experience. I also noticed that there was nothing like my invention on the market at the time.

What was a turning point for your business? Why?
Making the decision to focus exclusively on getting traction in the “big box” retail distribution channel. It forced us to take a hard look at our company and our business. As a result, we’ve improved our product offering, our supply chain and logistics operations and our sales and marketing initiatives.

Can you think back to a risk you took that paid off?
The key is to take educated risks so that you have a better chance of being successful. Educated risks will allow you to be prepared to handle success as well as the many setbacks you will encounter along the way.

SMALL BUSINESS OF THE YEAR
Thriving during downturn and expanding opportunity during an upswing is what separates an average small business owner from an outstanding small business owner. This award is presented to the small business owner whose pursuits exemplify the commitment needed to attain success.

• Coalescence L.L.C
  
• Co-founder/SVP and COO: Ian Y. Blount
• Co-founder/CEO: Angela N. Cauley
• Type of business: Custom food ingredient manufacturer
• Location: Columbus, Ohio
• www.coalescencellc.com

It was a chance meeting that transformed years of sacrifice and planning into a fresh start for Ian Blount and Angela Cauley. When the couple finally launched their food blending and repackaging business, Coalescence LLC, in 2005, they already sold their home and moved in with Blount’s mother–along with their two children. Raising the $520,000 in startup capital to cover a slew of expenses, including a mixer, and retrofitting their 7,500-square-foot facility to meet food industry regulations was not easy.

But after 18 months of trying to drum up leads, the copreneurs had a chance encounter with a corporate employee at Wendy’s fast food restaurant who connected them with T. Marzetti Co., a company that produces salad dressings, dipping sauces and other condiments.

“When we first drew up our business plan, our goal was to be a vitamin and mineral nutraceutical company,” says Blount, the company’s chief vice

Blount and Cauley’s agility led the Ohio-based company to unprecedented growth. Coalescence inked lucrative contracts with Kellogg’s, Tyson Foods, Pepsico and a host of other major food and beverage distributors. The company saw revenue grow 12.5% from 2009 to 2010. And with business ramping up, Blount and Cauley moved from their original facility to a state-of-the-art 35,000 square-foot building.

We’ve seen a shift in technology and in the economic sphere over the past few years, how has this made you re-think the way you do business?
Blount: We have teamed with an excellent IT company that keeps our services updated with instruments such as “cloud technology” which enhances informational sharing capabilities within our company.

How important is flexibility when running a business?
Blount: It is critical. You have to able to “change on the dime” to meet the needs of your customers. If their production schedule changes, guess what, so does yours.

What was a turning point for your business? Why?
Cauley: The turning point for Coalescence was when we landed our first major contract with the Kellogg Company. It challenged us to raise the bar with respect to our quality programs, inventory management protocols, operational excellence and cash flow.

What lessons in risk taking can you share with other entrepreneurs?
Cauley: Taking calculated risks are extremely critical for any person contemplating becoming an entrepreneur. We learned from this experience that you should always plan for the unexpected. Make sure that you have an additional 15% to 20% financial cushion. In addition, never count dollars until the contract has been signed, and the purchase order has been received.

Let’s celebrate our 2011 Small Business Award winners by offering your congratulations to these outstanding entrepreneurs in the comment section below. To watch live stream content (sponsored by Pepsi) from Black Enterprise’s Entrepreneurs Conference + Expo, taking place May 22-25, 2011 in Atlanta, Georgia visit www.blackenterprise.com/ec/. Be sure to check back after this year’s event for info on nominating a great business or entrepreneur you may know for the 2012 Black Enterprise Small Business Awards.