When Bob Miller was growing up on a dairy and crop farm in Ohio, he first had the idea of starting a hybrid corn seed company. Bob was intrigued by the large differences in the ability of hybrids to handle stress and maximize yield. As a result of this fascination with hybrids, Bob’s career path included obtaining a Ph.D. in plant genetics from the University of Illinois and working for a major seed company in research and development. When that company decided to close the facility he worked at, rather than transfer to another research facility, he decided to start his own company.
Miller Hybrids™ is a new premium seed corn brand company that assists farmers in choosing the best hybrids and the best herbicide practices for their farms. The company, which started in the summer of 2005, partners with various genetic and trait developers to offer twelve diverse corn hybrids. The company’s products are an elite set of hybrids that are labeled with B.O.B., which stands for “Best of the Best”. Dr. Miller feels this tag line is an accurate reflection of the company’s mission to provide the best seed and service to maximize the farmer’s profit per field.
When he heard about the Small Business Development Center through a past SBDC client, Dr. Miller contacted Paul Heath at the University of Iowa SBDC for feedback on financing, business plan development, payroll tax information and web site development.
Because of the unique nature of the seed industry, much consideration had to be given to the development of projected financial statements. Timing issues had to be incorporated into the statements due to the long operating cycle, the seasonal nature of the business, and royalty payments to the patent holders of the genetic traits used in the product lines. The company’s business plan is evolving with help from the SBDC, which has also provided information on legal structures, taxes, accounting, promotion, and benefits. Dr. Miller also attended some workshops taught by the University of Iowa SBDC.
In addition, the company utilized an entrepreneurial consulting class at the University of Iowa that the SBDC recommended. A team of students from the class did extensive market research into the buying decision that farmers make when choosing their hybrid seed corn. Financing was gained through a commercial loan. Additional financing will be sought before late spring of 2006.
Miller Hybrids™ products were evaluated against the leading industry hybrids in comprehensive tests in 2005, including corn variety trials by Iowa State University and the University of Illinois. The company also evaluated additional experimental hybrids in their own testing network. Miller Hybrids™ products have done exceptionally well in all of the trials.
The SBDC continues to work with Dr. Miller as the business evolves. The company has hired one full-time sales person and contracted with a seed corn business consultant who has several years of experience. Research testing, production and sales are planned for the second selling season, along with hiring one additional sales person. Production and conditioning are done at GroAlliance in Belle Plaine, Iowa, and the company plans to create additional jobs in Belle Plaine in the future. Additional employment will occur for trucking and the research testing effort.
Dr. Miller said, “I have really enjoyed working with Paul at the SBDC because he has provided a good listening ear, resources, reflections and answers for me as I started my business.”