Small businesses and entrepreneurs are a key piece in every community.
Cogent Hex is one of those local companies ready to take the next step.
The St. Clair- based company is unique in that it has six owners and a story that shows when you want something done right, you have to do it yourself…together.
The process solutions company's owners first came together as co-workers at a company that was bought out by a large corporation.That change sparked an idea: why not form their own business where they could correct the downfalls of their previous employer?
"We looked at each other, kind of picked the best of the best from the controls group, and decided we could do it,"Cogent Hex President Scott McQueen says.
The controlled automation company helps businesses that have been doing work by hand become more efficient by figuring out a way to automate their processes. They design a new plan, which includes both software coding and hardware components.
Working together, the owners are able to combine their experience and credentials, offering 81 years of automation, 34 years of project management, 28 of programming and integration, and 77 of electrical design and installation.
They each bring something unique to the table, and balance each other out. An example can be found in McQueen who is a risk-taker, who puts words into actions. He's balanced by Vice President Eric Krohn's analytical, cautious planning.
Starting out of their houses, the team has been able to build the company they always wanted to work for.
"There is some freedom involved (in owning your own business), which is nice, but I think in our situation the best thing is more of the camaraderie and the ability to mold the company the way we want to,"McQueen says.
For Cogent Hex, part of that is hiring of people who think outside of the box and openly communicate. Also, the team's clients are mainly from Michigan but extend globally, and they hope to continue growing.
"One of the things we talked about when we started was never to restrict the potential of growth for this company. Our goal has been and will always be to be a global force in this industry,"McQueen says.
The plan is for Cogent Hex's global headquarters to stay in St. Clair County to expand the industry outward. It could draw companies to the area, knowing technical support is available, and could stop graduates from looking out-of-state for tech jobs.
This is part of what made Cogent Hex an ideal candidate for the Emerge Fund, a grant from the Community Capital Club and the Economic Development Alliance of St. Clair county split among five recipients. Port Huron is a designated SmartZone.
According to the Michigan Economic Development Corp., "SmartZones provide distinct geographical locations where technology-based firms, entrepreneurs, and researchers locate in close proximity to all of the community assets that assist in their endeavors."
Businesses (or schools) that focus on technology can network and, in some cases, share tools in these hubs in order to stimulate more industry growth and jobs. Putting funds into a company like Cogent Hex should help not only the business, but the community as a whole.
Along with the money, Emerge Fund recipients also became a virtual part of The Underground, a new business incubator located in the basement of Sperry's Moviehouse. It joins Blue Water entrepreneurs and provides them with mentorship, tools, training, space, and other resources to develop their businesses.
Cogent Hex was already a full-time gig for its owners and employees before the Emerge Fund boost, but being a part of The Underground has helped with trying to link them with the right people and expand the business via an advisory board.
"Starting a business, you kind of keep focused on the projects and getting more jobs, and you need to sometimes step back and ask how you can build a business to keep things rolling. The advisory board is a great asset to talk about those issues and what we should be concentrating on on top of getting projects,"Cogent Hex Vice President Eric Krohn says. "They have been a big help on moving us forward on the higher level executive stuff: how you train people, how to approach others in the industry, how to diversify."
The $5,000 grant was spent on software licensing. Getting funding in general, though, has been very difficult. Considering the large projects Cogent Hex gets, they need big chunks of money up front, and local banks and investors haven't pulled through. The Emerge Fund is a great start, but there needs to be more, the men say.
"I was actually really disappointed in the fact that you almost have to build a business pretty large before banks in the area will even entertain helping you. There is no avenue for startups to go,"Krohn says.
That's saying a lot considering Cogent Hex is already a decently-sized, successful business with income. While no other Emerge Fund recipient has mentioned this problem, most do not need the same amount of money as Cogent Hex.
For now, the solution for McQueen, Krohn, and the others has been asking clients for help. The opposite of industry standard, they will ask for money at the beginning of a project instead of the end, and talk with customers who are often willing to meet them halfway. They saying knowing how and when to ask for help is a vital part of being an entrepreneur, as well as confidence in your expertise.
The owners stress the importance of believing in the services they provide. They often hear of entrepreneurs being in the red, losing money, for the business' first few years, but that was "inconceivable"to them. McQueen says there are enough people thinking small businesses can't make it, and an owner shouldn't be one of them.
"If you take time to be prepared, you can think outside of the box because you have the answers. If you don't have the answers, it's terrifying, but if you do, you're more apt to be able to take risks,"McQueen says.
Krohn agrees, noting that anxiety leading up to the risks entrepreneurs are faced with is worse than actually taking the risk, which can be calming and a relief.
These six men took the risk, backed it up with expertise, and created a company that is ready to emerge.
Cogent Hex is a bright spot for the county's technical growth.