Aerospace Geartech Inc.

Vince Basile says help from the Business Innovation Zone (BIZ) made it possible for him to bring two small advanced manufacturing businesses to Iowa, creating jobs and allowing him to fulfill his dream of becoming an entrepreneur.

"If it wasn't for the BIZ, I wouldn't be in Iowa and the head of my own company," said Basile, 45, president of Aerospace Geartech Inc., a manufacturer in the Des Moines suburb of Clive.  The eight-employee company combines the operations of two small manufacturers, one from Florida and the other from Illinois. Basile, a longtime Iowa resident, bought them in 2007.

Without the assistance and support he received, says Basile, he would have left Iowa to consolidate the operations at one of the existing out-of-state locations.  "I could have bought those companies and left them in one of the states, but the BIZ helped get them to Iowa," said Basile.

Basile's career involved working for other businesses until he discovered a passion for entrepreneurship while taking classes at the West Des Moines campus of Upper Iowa University.  He got his bachelor's degree in business management in 2006.

A year later he was ready to start a business of his own, leaving his job as a designer of industrial meat processing equipment at Townsend Engineering Co. in Des Moines. He'd been there 18 years. He invested his entire 401(k) and mortgaged his house to buy the two small manufacturers of gears, sprockets and pulleys. 

So the stakes were high.

A friend suggested he contact the Iowa Department of Economic Development about programs designed to develop advanced manufacturing operations in the state. The agency referred him to the BIZ, headed by Executive Director Mike Colwell.

The BIZ helped him apply for a loan and grants from the state, assistance that allowed him to get additional financing, including a bank loan backed by the U.S. Small Business Administration.

Aerospace Geartech has more than 50 clients in the aerospace, automotive and printing industries, along with the federal government and military suppliers.

In an interview, Basile talked about his company and the help he got from the BIZ:

Q. Where are you now in the development of your business?
A. I think we've moved past start-up and are in the growth stage. May is the one-year anniversary of the purchase of the first company.

Q. What major steps have been reached in the development of your business?
A. Continuing to deliver quality goods and services to existing customers was our highest priority during the first year of business. Having said that, we have retained our major customers and even grown the business during that year while moving both companies from other states, settling at one location in Clive. Aerospace Geartech also retained and relocated a couple key, experienced employees from the two companies. I've retained relationships with the previous owners as consultants. The new company has been able to grow and hire local talent.

Q. What is the eventual goal of your business?
A. To double revenue over the next five years and to expand to two shifts all-the-while delivering the highest quality and adhering to the tightest standards that we have built our reputation on.

Q. What help did you get from the BIZ?
A. The BIZ was instrumental in getting a financial commitment from the state that led to other financing to make the business possible. They were able to walk me through the steps involved in applying for a state loan and grants.

They also helped refine my business plan, using numbers from the original companies to put together financial projections based on reality, rather than hypothetical calculations.

Thanks to the BIZ I also got a reality check on cash flow, taking into account things such as insurance, taxes and workers compensation. I had previously been overly optimistic.

Q. Is the help ongoing?
A. Yes. I meet monthly with Mike Colwell. He helps with the marketing program, capital equipment purchases and staffing decisions.

Q. How do you feel about the help that you got through the BIZ?
A. Help from the BIZ came from experienced people who have been in the field, making decisions that I haven't made yet. It's comforting to know that you have somebody to reach out to and ask questions that you're confronting for the fist time.

They offer seminars and lunch-and-learn sessions that include potential investors, advisers and others in similar situations.

Having a connection to the BIZ means help with networking for members and non-members, introducing you to new businesses and helping you to find new niches for your own business.

The BIZ alerted me to other programs offered by the Iowa Department of Economic Development such as internship programs, with the state paying half of the costs of employing an intern.  There's not question about it.  My business is far better off thanks to my being able to use the BIZ as a resource.