“We kept hearing ‘you really have something here.’ If you hear that enough, you can’t give up,” said Joseph Signorile, who is part of a team developing an innovative fitness product.
Signorile is part of South Florida’s fast-growing cadre of new entrepreneurs. In June, Miami landed at No. 2 on the Kauffman Foundation’s index for startup activity, just behind Austin, Texas, and ahead of Silicon Valley. People often equate “startup” with “high tech,” but Kauffman’s index includes all kinds of new businesses, including consumer product companies. South Florida is no different. In the Miami Herald’s annual Business Plan Challenge, for instance, typically 30 to 40 percent of the entries involve consumer products such as foods, fashion products, gadgets and accessories.
Yet product companies face challenges different from service businesses. Along with the common business needs of office systems, staffing, accounting and marketing, product entrepreneurs often also need to foot the cost of product development and manufacturing long before they see their first dollar in sales.