DETROIT – There weren’t too many entrepreneurs interested in launching an automotive-related business in Michigan in 2007. Paul Chapman, founder and CEO of Cargo Solutions Group, LLC, however, thought differently. A former General Motors engineer with experience in program management as well as vehicle and power train engineering, Chapman saw an opportunity in the aftermarket truck accessory segment of the automotive industry.
Cargo Solutions Group had developed a new cargo management system for pickup trucks that provides both cargo storage and truck box protection in a single, integrated product.
?Our innovative Bastille System protects and secures anything that is put in the back of a pickup truck,? says Chapman. ?The Bastille System?s two-panel cargo system for pickup truck boxes offers utility and convenience, customization and energy and environmental efficiencies not found in traditional pickup storage.?
The production launch of Cargo Solutions Group?s Bastille System in September 2010 represented three years of hard work and tenacity.
?Building this business was a real learning process and, frankly, not without a great deal of personal risk,? says Chapman. ?One of the important lessons I?ve learned is that entrepreneurs who are successful must have persistence and stick to a solid game plan.?
After launching the business, Cargo Solutions Group joined Tech Town, the business incubator in Detroit, and took advantage of its ?Fast Track? and ?Smart Start? business development programs. The networking connections Chapman made at Tech Town were instrumental in helping him reach key players in the investor community. Chapman took every opportunity to present the Cargo Solutions vision to investment panels including the Michigan Growth Capital Symposium and other venture capital sessions.
?What was promising was the interest we received at a time when investors were generally not at all interested in the automotive sector.?
Much of the interest was based on the lean business model and solid business plan the Cargo Solutions Group developed.
?While the automotive accessories aftermarket was clearly a mature industry segment, the truck accessories market was still the dominant player in the aftermarket sector and we articulated a value proposition that underscored the opportunities and potential in that market,? says Chapman. The company?s business model is based on an alignment with strategic partners that forms the capitalization structure of Cargo Solutions Group. Support from these partners ranges from capital investment to manufacturing and assembly to company office facilities in exchange for ownership stakes in Cargo Solutions.
?Our partners have committed to a business model that incorporates innovative modular product design that meets the expressed needs of our customers,? says Chapman. This business model allows Cargo Solutions to engineer the product, manage the component suppliers, and be responsible for the brand in the marketplace. Manufacturing and assembly operations are sourced to strategic partners.
?Business assistance organizations have been crucial to our development,? says Chapman. When the Cargo Solutions moved from Detroit to Oakland County it became a member of Automation Alley, Michigan?s largest technology business association.
?Automation Alley understood our vision and potential and invested $250,000 in Cargo Solutions at a critical time in our company?s production financing round and was instrumental in allowing our company to close a comprehensive deal with several partners,? says Chapman. The company?s relationship with the Michigan Small Business Technology Development Center (Mi-SBTDC) which began at Tech Town has continued through its connection with Automation Alley.
?Every step of the way the SBTDC has been there for us; first helping us get our bearings, then setting priorities, getting us needed specific information, making us aware of opportunities, assisting with financing details and giving us the business coaching that?s so important,? says Chapman. ?In my view they are key players to know.?
Cargo Solutions Group is now executing the business plan the team carefully crafted.
?Over the next few years, we will be building a sales team to service the U.S. and Canada with our initial focus being placed on three geographic regions,? explains Chapman. The company has identified potential distributors in each region; the Great Lakes, North East and Texas areas and has signed purchase orders and received letters of intent. ?We have developed a premium product that is competitively priced that we think will allow Cargo Solutions to continue to develop innovative products,? says Chapman. ?In fact, we are currently exploring the integration of solar recharging technology into our Bastille System.?
The Cargo Solutions team?s drive is a testament to the entrepreneurial spirit embedded in the history of Michigan?s auto industry and it will be companies like this one that will be the foundation of the auto industry?s future.
a>>
