GREAT 33 IDEA: Find a Strategic Partner to Invest in Your Company

Jay Whelan's “lightbulb” moment hit while he was undergoing physical therapy for a shoulder injury. He was bored and staring out the clinic window as he spun a wheel with a hand pedal attached. The device was designed to strengthen his shoulder muscles.

“I thought, ‘What if I could capture the energy I'm expending on this exercise and put it into the (electric) power grid?’ ” recalled Whelan, who has an industrial engineering background and an MBA from Boston College.

Whelan knew electricity could be generated from fitness equipment, including spinning bikes, but he wasn't sure how long it would take to develop the right equipment and technology.

“It was a matter of hiring engineers to take my vision and make something workable,” said Whelan, founder and CEO of eGreen Revolution (http://www.egreenrevolution.com).

Once they had a prototype, they tested it with positive results at a local sports club. Then, he approached the New York Sports Club.

“People in spin rooms are a passionate group who show up consistently and train hard,” said Ed Trainor, vice president of business and product development for Town Sports International (TSI), which owns the New York Sports Club and other clubs around the country.

TSI installed the first eGreen Revolution equipment on spin bikes in New York City and Washington, DC, in 2010. So far, response has been positive.

“The spin classes were the perfect place to start using the technology,” said Trainor. “It gives people a way to measure their effort and performance. It's a hard workout but great to know at the end of the class that they've generated power.” So far, it's just enough power to run the video screens attached to the cardio equipment.

Trainor declined to say how much money the company has invested in the eGreen Revolution technology, but said it was thousands of dollars. “Our company has a strong green initiative and this fit right in. It is an investment, and it will take a while to recover that investment, but it's definitely worth it…. It has added real value and people like it.”

According to eGreenRevolution.com, 20 people participating in a spinning class could collectively generate about 3 kilowatts of electricity. A spinning room, with four classes of 20 people a day could generate 300 kilowatts a month—enough power to serve a typical home for six months.

Prior to starting his own business, Whelan spent 18 years as a consultant for Accenture.

“After 18 years on the road, living in hotels and airports, my two kids didn't really know who their dad was,” said Whelan. At 46, he cashed out, planning to retire and putter around. But six months later, he was bored. He looked into buying a franchise, but decided he'd rather start something on his own.

So far, he's invested close to $1 million in cash and time. He has also been reluctant to collect a salary.

Testing the concept on spinning bikes at clubs has been invaluable. “It's one thing to develop a product that works in the lab, but another to make it commercially viable,” explained Whelan, who was lucky to connect with the big fitness company.

Finding the right strategic partner is a critical key to success for many small companies. Teaming up with a bigger, financially strong partner can provide a source of cash for growth, marketing, and expansion.

So, consider joining forces with a bigger, well-financed partner to bring your product to market.

Here are some things to consider before you craft a strategic alliance:

• Set clear goals for what each partner hopes to accomplish.
• Clarify exactly what each party has committed to do to move the project forward.
• Specify who will be the key players and how they intend to communicate with everyone involved.
• Try working on a small project together before launching a major initiative.
• Regularly review the success of the project and make changes to improve it.