Breaking barriers: New program seeks to help entrepreneurs reach $1 million earning mark

The entrepreneurial ecosystem in Birmingham — that critical support system for new businesses — has “certainly become more robust in the last 10 years,” said Dan Pahos, a mentor, angel investor and the local franchise owner of Home Instead Senior Care.

Start-ups in the area can rely on such resources as Innovation Depot, including its Velocity Accelerator Program, and Alabama Launchpad, according to Pahos. And area entrepreneurs whose companies hit it big have what Pahos calls “a great network” of venture capital firms available to help them exit their companies or expand them nationally.

However, Pahos said he sees a gap between these two “bookends” — entrepreneurs who’ve moved beyond startup mode, have a solid business model and have achieved between $250,000 and $1 million in annual sales, yet “struggle with growing it beyond $1 million,” Pahos said.

“There are not a lot of resources for these entrepreneurs in this space here in Birmingham,” he said.

That’s one reason the Birmingham chapter of the Entrepreneurs Organization launched its EO Accelerator Program in March, to give an initial group of 11 first-stage entrepreneurs the training they need to catapult their companies to the next level and to go beyond $1 million in annual sales. 

“They’ve reached the point where they need a little nudge, a little direction,” said Pahos, an EO member who served as president of the Birmingham chapter for two years and is chairperson of the local Accelerator Program.

This is the first time this EO program has been offered in Birmingham, according to Pahos.

The following people are taking part in the year-long EO Accelerator Program:

► Drew Jackson, founder and owner, Street Metrics

► Hatton Smith Jr., founder and owner, Campesino Rum

► Merritt Milam, founder and head trainer, Wags ‘n Whiskers Comprehensive Pet Care

► Cecilia Pearson, founder and owner, Babypalooza

► Christine Rau Joiner, co-founder and owner, Covenant Contracting Co. 

► Dr. Robert Stewart, founder and owner, Ross Bridge Animal Hospital

► Charles Dykes, founder and owner, Covenant Insurance

► Meredith Jones, co-founder and CEO, Jones-Warren Home Inspection Services

► Stephanie Buffaloe, franchise owner, Home Instead Senior Care, Tuscaloosa

► Pam Hodges, franchise owner, Home Instead Senior Care, Florence

► Richard Wilson, founder, co-owner, MrKleanze

“The energy in the room was palpable,” Pahos said of the March 15 event at Innovation Depot to introduce the group. “I can’t wait to see how this group does in the next year together.”

Though the program is new to Birmingham, it’s been in existence for 13 years, is in 25 other markets and is “a proven curriculum,” Pahos said.

The program is about helping entrepreneurs “charge through the challenges of scale and take their businesses to the next level,” he said.

The program teaches entrepreneurs to tackle four core challenges of strategy, execution, people and cash through the use of structured educational content and by allowing participants to learn from and connect with successful entrepreneurs.

There are four full-day learning events, one per quarter, facilitated by EO members. There are monthly group meetings focused on goal setting and peer accountability.Participants use EO goal-setting and tracking tools.

They also have access to local and global EO events. For example, the local participants can reach out to the 49 members of the EO Birmingham chapter and have the opportunity to develop “deeper relationships,” Pahos said.

He said the program hosted a “people day” for the participants in March so they could learn more about personnel issues — hiring, retention and aligning pay with performance. “All the things no one tells you about,”  Pahos said.

The entrepreneurs also gain access to a community of fellow risk-takers, where they can network and learn from each other, according to Pahos.

“It’s just the community of being around others who are dealing with the same challenges, even in different industries,” he said.

Participants pay a $1,750 national fee and a local fee of $750 for a total annual cost of $2,500, Pahos said. Fees are charged only to cover the cost of operating the program, according to the national EO website. 

Founded in 2005, the Accelerator Program has 38 programs in 11 countries with over 395 people who have graduated to membership in EO chapters. Participants are allowed to apply for membership in an EO chapter when their companies reach the $1 million mark in sales, which usually takes about 24 months, the site states.

After running his own business for 22 years, Pahos said he has a good management team in place and has the time and “bandwidth” available to help other entrepreneurs. 

Although he was born in Minneapolis, Pahos has lived in the Magic City with his wife for 26 years. “This is my home now,” he said.

As an entrepreneur, Pahos said he believes that he can contribute to the future most effectively by helping local companies grow and add more jobs.

“And a company that is earning $5 million a year will hire more people than a company that makes $1 million a year,” he said.

Pahos and his wife have another personal stake in the city’s economic future.

“We have two kids in college, and I would like them to feel like Birmingham is a city where they can actually get a job and be a cool enough place to live that they don’t have to move to Nashville to get the lifestyle,” he said.

Those interested in applying for the local Accelerator Program should go to eobham.com/eo-accelerator. More information on the Entrepreneurs’ Organization can be found at eonetwork.org.