My Hopes For Business In St. Louis In The Next Decade

I rarely do a local post, but as we head into, believe it or a not, a new decade, I figured it would be a good time to talk about the potential of The Gateway City.

First of all, I love St. Louis. My family is from here. I’m from here. Marcie’s (my fiancee) family is from here. Marcie is from here. I bleed St. Louis Blues hockey. I’m a big Cardinals fan and I painfully watch Rams games. St. Louis has a great theatre scene, arts community, attractions for kids (such as Six Flags), amazing local businesses (many under the radar screen), street festivals, a small town feel, our own local lingo “Where did you go to high school?” plus the aura of Ted Drews, and a REALLY good dining scene (seriously, I travel all the time and St. Louis has an amazingly underrated dining scene).

That being said St. Louis is known as a great place to raise a family but not a great place to raise a business. Or more specifically not a great place for innovation.

When people think of business in St. Louis, the most common responses are:

“Anheuser Busch.. errr In Bev”
“Enterprise Rent-A-Car and Monsanto”
“Banks, Banks, Banks”
“Lawyers, Lawyers, Lawyers”
“Real Estate, Real Estate, Real Estate”
“Is that Ballpark Village thing ever going to happen?”
“Downtown St. Louis aka Ghost Town”

The common threads: Big old school businesses and conservative ventures. Fair enough as these are important for any city ( a foundation), but I would argue St. Louis can do much better than this.

St. Louis has a great opportunity to be an entrepreneurial powerhouse (maybe not the world leader but certainly better than it is now), retain young talent, and be a marketing mecca (seriously, no joke).

No, St. Louis isn’t going to be the next Silicon Valley or New York City, but I don’t think we St. Louisans would want that.

St. Louis is a town that celebrates its own. Sort of like a proud small town. It is time to celebrate entrepreneurship and innovative marketing.

Here are some ideas of how St. Louis can upgrade our business culture:

1. Celebrate Successful Entrepreneurs

Why do so few people know that Jack Dorsey (Founder of Twitter) is from St. Louis? Or that World Wide Technology (a 3-billion dollar company) was started from absolutely nothing in St. Louis (check out my interview with their founder Dave Steward)? Or how about Build-A-Bear founded by Maxine Clark was born under the arch (interview with Maxine here)? On that note, this holiday’s phenomenon Zhu Zhu pets are St. Louis born and raised.

How do you celebrate these entrepreneurs? I have many ideas…here are a few:

A. More mainstream media coverage. Unique stories and features. Not just that Bank X decreased .2%.
B. More online media coverage. Blogs, online shows, etc. based in St. Louis have a great opportunity.
C. More events. Lunch & Learns. Successful entrepreneurs meeting with up-and-comers.

2. Pay Attention To The Up-And-Comers

There are many of them. Yurbuds, Virtual Nerd, Widget Realm and the list goes on. Plus, smaller unique businesses (including numerous local restaurants, cafes, gyms, etc. doing great things) as well as outside-the-box businesses such as Rizzo Tees.

“Paying attention” here means more press coverage, more buzz on social media, and more buzz in the media in general. Own the St. Louis heritage. Encourage others to start businesses here. The power of group is very powerful.

3. Highlight St. Louis As Mecca Of Marketing

For a mid-sized city, St. Louis has an absolutely HUGE number of marketing companies. At least that’s how I see it. Ranging from PR to communications to digital marketing to pretty much everything in between including independent marketing consultants, etc.

Why so many? The simple answer is (was) Anheuser Busch. AB kept many of these small shops in business for year by spreading around marketing, advertising and PR dollars in the community.

With media changing so rapidly, many of these firms will fail. Just a fact of business during this evolve or die time.

But, there will continue to be an emergence of great PR, marketing and advertising people in St. Louis (including such folks as Bob Lachky who I was extremely fortunate enough to interview. Bob was THE man behind Anheuser Busch’s most successful campaigns including the Budweiser frogs, Lizard, etc.).

And I’m saying this with a bias as well. Why?

1. I have RISE, an entrepreneurial daily marketing online TV show launching January 4th.
2. I consult/speak on innovative and digital marketing/strategy and social media.
3. I’m one of three principles of Rangency Labs launching this January which is a collection of marketing/pr/web/design/video rock stars who are teaming up to provide everything from education to execution.

St. Louis with its central location between New York and LA is geographically positioned to be a big player as the “center of the innovative marketing universe” (slightly exaggerated). But, I’m not kidding. There is WAY too much talent here that should be tapped.

4. Embrace Outsiders And Provide Resources To Everyone

The St. Louis stereotype is this town is an old boys network. Based on past connections. Based on who your father is. Based on where you grew up. Based on where you went to high school. While this is great for networking if you are IN the inner circle, it is not so much if you are an outsider.

Whether someone is born and raised in St. Louis or has been here for 1 week, our city needs to do a better job of being welcoming, providing events/resources, and embracing everyone that comes to St. Louis for work or play.

5. Focus On Relationships and Using Technology

I often start some of my local speeches joking about the 6 Degrees Of Separation. My joke is in St. Louis that it is about 1 degree and that person is probably a relative.

This is a HUGE positive for the city. If it is so easy to become connected (in person and online), we should jump on this. The mayor having coffee with the start up. The billion dollar company helping the $1 company. Instead of being competitive, what if we were all more helpful?

Plus, what is St. Louis REALLY focused on connecting both online and off? City-wide WIFI (here’s hoping!) would be fantastic (*wink*)

Become pioneers to new technology that HELPS the community become smaller and more connected (social media giants such as Twitter and Facebook and smaller sites which will be huge in 2010 including FourSquare and Gowalla).

This doesn’t mean the city has to develop every piece of technology, but instead pick and choose ones that help the community, promote it, use it, help local businesses and entrepreneurs use and understand it, and just improve our connectivity whether the handshake is virtual or in person.

Those are my thoughts. I can’t wait to help with the movement.

What are yours? If you are a St. Louisan, what is your perspective? If you are not a St. Louisan..what is your perception of St. Louis and what is YOUR community like?

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Comments

Nikki Weinstein

Great thoughts, David! We're doing all we can to promote more connections between young professionals in the region. There is so much for people to get involved in and the more connected they are the better we all do.

I encourage everyone to check out the next Connect With... event on February 2. It's Connect With... Leaders, a great networking and training opportunity for young professionals. You will be amazed at all the new people you'll meet.

www.ConnectWithLeaders.eventbrite.com to register and learn more.

David Siteman Garland

Gabe and Brad,

Right on.

Gabe - Thanks for the fantastic response. I love what you guys are doing and I think it will be a great story of "proving St. Louis wrong" when we look back on your successful startup born and raised here.

I would also add #3 to the list you made being resources for innovators which includes paid and non paid (things like events, meet ups, marketing firms dedicated to start ups, etc.)

Also, yes agree. 100%. There are enough innovators here to start a movement. The talent is here. Why does nobody know about it?

The resources are key and as you mentioned so is the PR/Marketing Blend.

We all (meaning innovators in St. Louis) need to sit down over a big lunch and talk about this.

Gabe Lozano

@David All good thoughts. I'm up for getting a group of us together and having a more in-depth discussion on the topic.

Brad Hogenmiller

I have to say the wave I've seen in the past 8-12 months of passionate people in STL trying to elevate the city is nothing short of inspiring. It's not that I think people didn't care before, it's that we're starting to find each other and build real tangible results. Ideas like yours are a great asset to the city and all of us involved with it.

Relationships using technology = music to my ears

Gabe Lozano

@JavaSTL Agreed. The boost of energy has been great.

Gabe Lozano

I think it’s important to highlight that the real problem we are required to solve is: “How do we attract A+ builders/innovators?” If we can do that, everything else will follow.

What attracts A+ innovators?
1. Money- the type that is thrown at startups, whether it be private or institutional capital
2. Other A+ innovators.

Regarding money, St. Louis has money, but to a large extent, it’s the wrong type of money. It’s the money that falls into what you refer to in this post as the ‘old boys network’. After we find a way to get a large enough crop of new deals done here, we need to completely forget about this money. We need new money; the type of money that was made from starting/investing in innovative technologies.

Regarding A+ innovators, St. Louis already has a light dusting of top-notch innovators – many that are currently under the radar – that have fortunately fallen here for one random reason or another, such as they have family ties here, went to school here, etc. I believe that there are enough A+ innovators already here to get a small base of decent deals done. This can provide a foundation for bigger things.

The single best thing that could happen to St. Louis right now would be to have a couple of deals that the A+ innovators are working on, EXPLODE. We’ll end up with a new breed of rich, young, A+ innovators with new money that they can throw into innovative startups. These successful innovators can then attract other innovators because they can provide capital, credible mentorship, and a credible network of resources to get future deals executed well. As legitimate deal flow increases, these companies will also provide marketers with something to market and corporate lawyers with companies to represent.

Therefore, I see two major stages that need to occur:

1. Find any and every way possible to provide current St. Louis based innovators access to capital, networks, and mainstream press so that their deals can be done here. This might mean temporarily tapping to the old boys network for money, providing mainstream PR for the up-and-comers, exposing local startups to private capital outside of St. Louis (hopefully capital that doesn't require the entrepreneur to relocate; the type of flexibility that most institutional capital doesn't provide), scraping for whatever resources we can, etc. Simply, whatever it takes.
2. Celebrate the ensuing successes and find ways to encourage the new money to stay here, so that they can provide capital and credible mentorship to new startups. At this stage, we can hopefully begin attracting new innovators to come here.

Regardless, both stages are going to take an incredible amount of effort and time to happen, but it can be done.

David Siteman Garland

Jackson - Great points. Thanks so much for sharing. Keep fighting the good fight :)

Jackson101

Excuse my language- but Damn It!! You have hit the nail w/ the hammer. You are so correct David. In St. Louis I would not so much use the word, traditional, but old fashion. It is truly unfortunate that we base our connectivity or our Step 2 to relationship building w/ someone based upon the high school or the geographic location of where they grew up at. If you were like me growing up- you were different. If you were like me- you stood outside the group. If you were like me- you were taught if you want to be successful surround yourself w/ those that are of that stature. On my road to success I have not seen any benifits because I went Hazelwood West High School. Actually more less condemned for thought I may have had it easier.. ***Laught Out Loud*** : / None of my entrepreneurial scenarios w/ building my business have had anything to do w/ where I was geographically located on the map. Unfortunately St Louis we are crabs in a bucket. We are forced to play by Rule #1- Keep your friends close, but Keep your Enemies Closer..Rule #2 Dog Eat Dog!!!!
With those rules we can go nowhere but fail. We will kill ourselves and be even more extinct than we are now to the media, the ppl, to businesses etc... (and Yes the List goes on)

You mentioned alot Positive things about St. Louis that I had forgotten. Thank You for that because I was caught in the caos of St. Louis Negativity. I Love St. Louis and I only want the best for us- As a Whole. We ca all eat together!!! I know we can do it. Of course Imma take the Obama msg **chanting**- "Yes We Can" *** CHANGE**** I am HERE for the CAUSE and the MOVEMENT of a better ST. LOUIS.

Thank You,

Chris Jackson
http://twitter.com/Mr_Jackson

Jackson101

Excuse my language- but Damn It!! You have hit the nail w/ the hammer. You are so correct David. In St. Louis I would not so much use the word, traditional, but old fashion. It is truly unfortunate that we base our connectivity or our Step 2 to relationship building w/ someone based upon the high school or the geographic location of where they grew up at. If you were like me growing up- you were different. If you were like me- you stood outside the group. If you were like me- you were taught if you want to be successful surround yourself w/ those that are of that stature. On my road to success I have not seen any benifits because I went Hazelwood West High School. Actually more less condemned for thought I may have had it easier.. ***Laught Out Loud*** : / None of my entrepreneurial scenarios w/ building my business have had anything to do w/ where I was geographically located on the map. Unfortunately St Louis we are crabs in a bucket. We are forced to play by Rule #1- Keep your friends close, but Keep your Enemies Closer..Rule #2 Dog Eat Dog!!!!
With those rules we can go nowhere but fail. We will kill ourselves and be even more extinct than we are now to the media, the ppl, to businesses etc... (and Yes the List goes on)

You mentioned alot Positive things about St. Louis that I had forgotten. Thank You for that because I was caught in the caos of St. Louis Negativity. I Love St. Louis and I only want the best for us- As a Whole. We ca all eat together!!! I know we can do it. Of course Imma take the Obama msg **chanting**- "Yes We Can" *** CHANGE**** I am HERE for the CAUSE and the MOVEMENT of a better ST. LOUIS.

Thank You,

Chris Jackson
http://twitter.com/Mr_Jackson_

David Siteman Garland

Troy - Good points and I would also argue the big boys of this city need to help the smaller businesses. We have companies here way into the billions.

Michael - That is true. Innovation needs help from the foundation. It doesn't work without one or another.

Michael Buffa

David,

Great post. I think you're correct in saying St. Louis is and can be known as a hub on innovation and ideas. I think the problem we face is a lack of adoption by the banks, real estate companies, and law firms that you mentioned in your post. In order to drive innovation, you need people to understand it and adopt it, something that happens in bigger cities much earlier. Look at Twitter for example, I feel like I follow about 100 people who are extremely active, not a very high number considering the growth in popularity over the past year.

I think it comes down to you, myself, and the people reading your posts to share ideas and spread information on technology, marketing, and the power of the big idea. It's still early, and like Gary V said, "the internet hasn't even had sex yet." I sure can't wait until it does.

Here's to an exciting 2010.

Troy Rhodes Jr

So true David! Our city has alot of potential just a matter of it all coming to light. If all these entrepreneurs can meet more and see how we can help each other it will help our city as a whole. If some of the large companies can share knowledge with small companies then it will lead to growth as a whole for the city. I always wanted to have more business related events here so I can see what networks we all have here right in our own backyard! Lets all make a effort to meet more stl people and get our city on map as the true "gateway to the west"

David Siteman Garland

Josh - Anytime! Time to rally the troops and get more recognition for startups/break down the old boys network.

Ria - Nail on the head which is why I LOVE what you guys are doing. A passionate community around common interests :)

Ria Sharon

I'm not native to St. Louis but having lived in BIG cities all my life, I do appreciate the its "big small town feel."

I especially agree with your point about relationships. It is easy to create real, meaningful connections here. My business, www.MyMommyManual.com is all about the importance of "CONNECTION." I'm very honored to call St. Louis, "home."

Joshua Salcman

Great rallying cry, David! I am continually grateful for your support of Virtual Nerd as well. Here's to prosperity for all in and around the STL venture community in 2010 and beyond!

Chris @ Rizzo Tees

Of all the local #STL enterprises out there, I am keeping my eye on YOU, brutha! RISE is gonna be huge in 2010 - I have a strong feeling about this. Let's make it happen, dude! Cheers!!!

David Siteman Garland

Lisbeth - Haha, great point. I think it is time to move on past the fair.

And I hope someone is listening with the power to make some change on the tech level. Immediately it would be a HUGE improvement.

Chris - Appreciate the thoughts and great hearing your perspective. Imagine if NYC or Chicago was based around your high school? Nobody would want to go there unless they had the "right" answer. Same situation here.

As Dixie pointed out (on Facebook actually) once you are "in" you are in (as in once you feel welcomed and connected). The challenge is everyone needs to feel welcomed right away. Not isolated or different.

Chris Osborn

Good thoughts, David. I was neither born in St. Louis nor did I go to high school in St. Louis. I have lived her for 25 years and went to graduate school in STL (Wash U) and have raised my family here. You are spot on in your observations about this being a very closed community unless you are from the right [insert - high school, country club, church. temple, etc.]. I am amazed at how consistent this feeling and experience is among the transplants among us. This community really must begin to recognize talent - no matter its origins - if St. Louis is to remain relevant to the national economy going forward. Good luck in your efforts!

Lisbeth Tanz

Spot on, David! I spent my youth plotting ways to leave St. Louis and now I fight to stay. I traveled a lot during my non-entrepreneurial days and found St. Louis to be a wonderful place to come home to. I share your optimism of St. Louis' future - I just wish those who still rely on the 1904 World's Fair as our biggest accomplishment give it a rest.

And city-wide WIFI? I'm moving back to St. Louis City in January - so I'm all over that! Would love that to be a reality. Charter? AT&T? Anybody listening?

As Dixie said, "I'm in." Me, too. Great post!

David Siteman Garland

Dixie - Thanks so much for the kind words. It is people like you that make St. Louis an amazing place to be. How can we make little clones of you to run around town?

David - Very interesting thoughts. We definitely (as a city) need to look into that. Thanks so much for sharing.

David Sandusky

Start a college for the entrepreneur community by the entrepreneur community. We are in Denver and it is going well in our new life (two semesters under the belt).
http://metrostateinnovate.org/index.shtml
We are building our online community and perhaps can collaborate! More cities need to do this, urban entrepreneurship. Game changer! Do it!

Dixie Gillaspie

You know what I said about your getting to the heart of any interview you do and connecting with THEIR best no matter who your guest might be? It applies in spades and hearts in this post. Spades cause it is time to go to work and hearts cause you clearly put yours into it. And it struck a chord in mine. Time to roll up our sleeves - count me in.