BUSINESS IDEAS RIPPLE AT UA

Akron Beacon Journal - April 1, 2004

By Betty Lin-Fisher

Than Thein wants to turn his childhood hobby into a million-dollar company.

And he might be on his way.

The 27-year-old Akron resident is setting up his new business, Tidal Gardens, which will cultivate and sell living coral for use in the tanks of reef aquarium hobbyists.

In two months, Thein said he'll be ready to sell coral at his online store, www.tidalgardens.com. Eventually, Thein said he'll have 300 varieties of coral available.

Thein's coral passion started when he was 6 years old and wanted a dog, but his parents said no. So he fell in love with coral instead.

Some coral enthusiasts have tanks with fish and coral while some have only coral.

``Sometimes people buy only coral and leave the fish out all together,'' he said.

Thein said he's always wanted to be an entrepreneur, even though he's got a biology degree, an MBA and is currently going to law school at night, just for kicks.

His business venture, which he wants to do full time, combines something he enjoys with his expertise.

He's already spent about $50,000 to build a greenhouse at his family's Copley farm and buy the equipment, including a 3,000-gallon tank that will be used to grow the coral.

But he's seeking additional funds -- $250,000 to be exact -- to be able to build a larger greenhouse and a 50,000- to 100,000-gallon tank. With that, Thein said he'd be the largest aqua culture grower of coral in the world. His business plan has a goal of $2 million in sales after five years.

Judges to decide

On Saturday, he'll have his chance to convince some judges that his ideas are worthy of investment money.

Thein and three student groups with business plans are finalists for the University of Akron's Fitzgerald Institute for Entrepreneurial Studies College of Business Administration Third Annual Business Plan Competition.

The four groups will have to present their business plans to a panel of local judges who are also entrepreneurs looking to fund new projects. There are cash prizes for first, second and third place of $3,000, $2000 and $1,000. But the real prize would be getting someone to invest in the business.

The keynote speaker for the event is Sandy Pianalto, president of the Federal Reserve Bank of Cleveland and a University of Akron alumnus.

Judges have chosen them from among 10 business plans. Forty percent of their score was based on the written business plan and 60 percent will be based on their oral presentation -- as well as being able to answer questions the judges throw at them.

A business plan is essentially a blueprint for a business or nonprofit organization, said Todd Finkle, an associate professor of management and fellow at the entrepreneurial institute.

Other finalists

The other finalists are:

• Charla Hill, Ozgu Ozturk, Anthony Moraco and Villiappan Subbaiah of Molecular Constructs LLC, which has developed a new group of polymers that will allow for the development of products, including new LED displays, and can also be used for drug delivery.

• Deenu Kanjickal, Pritam Das and Dave Young of Polymeric Drug Delivery Systems LLC, whose current focus is on a product, PolyRing, a time-controlled device that will deliver drugs through the blood vessels.

• Tom Conner, Michael Schneider and Vivek Tomer of Medtrite Inc., which is marketing a product that can increase blood flow to an area when it is applied.

The business plan competition is open to anyone at the University of Akron, though many of the plans come out of Finkle's entrepreneurship class.

Finkle said next year he'd like to have two separate categories -- one for undergraduates and one for graduate students -- to have a more even playing field. He'd also like to solicit corporate sponsors for the award money and open up the competition to the Akron business community. Currently, the prize money is mostly funded by personal donations from board members.

``That way, you really stimulate the entrepreneurship in the community and stimulate the economic growth of the area and region,'' he said.

Thein said being able to present a business plan in front of seasoned entrepreneurs is a tremendous opportunity.

``Money aside, the judges are in a position to give you great feedback on your plan,'' he said. ``I want the harshest criticism. Business is unforgiving. It's naive to think your business plan is great.''

Growing coral

Thein said the demand for coral is huge, but there are no large-scale companies that sell ``aqua culture'' or cultivated coral. Growing coral in tanks instead of extracting it from the actual coral reefs can also be cheaper for the company and ultimately the consumer, he said.

But costs add up to transport the coral back to the states from areas where taking coral is allowed -- like Indonesia, he said. A coral that may have cost a penny to extract can easily be sold at wholesale prices of $15 and $60 to the consumer after costs are figured in for holding tanks in multiple places and international shipping, Thein said.

With his tanks in the Akron area, Thein said he can use an overnight carrier to sell that same coral for $5 to the wholesaler and $20 to the consumer for common coral.

Thein said in addition to filling a niche, he hopes his business will increase awareness of aqua culture as a viable option to developing coral.

``Ninety-five percent of all coral sold comes from the reef. But the coral reefs are dying. The hobby takes a lot of blame for that,'' he said.

Thein said his current plans of the 3,000-gallon tank will allow him to service a national market, but he hopes he'll get funding for his larger project since he worries that he'll be unable to keep up with demand once he starts selling his coral.

What about the idea of a coral cultivator in the Midwest? Does Thein think he'll move his business out of Akron once it's successful? Thein said he'd have no reason to leave Akron.

``The Midwest is a hotbed (for the hobby),'' he said. ``It takes more of an effort to do this stuff right in the middle of the country.''