Business

Comic relief

GREENSBORO -- John Hitchcock is no Clark Kent. He can't dash into a phone booth, turn into a kind of economic man of steel and leap his business challenges in a single bound.

No, he's had to use ordinary credit cards to cover his startup costs, and even had to sell his house to finance a mounting debt.

But while Hitchcock may not be a super hero, he sure likes to hang out with them, which helps explain how he's managed to survive as the proprietor of a Greensboro comic book store after more than a decade of high adventure. Superman and Batman would be proud.

"I'm not rich, but I never wanted to be rich," said Hitchcock, who owns Parts Unknown: The Comic Book Store. "I wanted to be comfortable, and for 13 1/2 years, I have never forced myself to go to work."

He has been able to take a passion developed in the fourth grade and turn it into a profitable venture even at a time when the comic book industry, seemingly more volatile than the technology sector, attempts to right itself financially.

During the comic boom of the mid-1990s, Greensboro had eight stores that catered to the thrilling exploits of familiar comic book heroes. Now there are just three.

The most recent decline in the industry can pretty much be traced to the rise of increasingly animated computer and video games, hand-held play devices and a general decline in youth readership. To underscore that point, publishers such as Marvel Comics have been forced to file for bankruptcy protection.

Hitchcock, an avid comic book reader who has learned a thing or two of miraculous rescues, has survived through the years by diversifying the publishers he carries and building a loyal customer base.

"John will order whatever it is you are looking for and try to track it down," said Deborah Garnel, a customer for three years. "He went to a comic book convention in San Diego last year, and brought me back two signed sketches that he knew I would flip over. He knows his customers and knows what they like. He will definitely go out of his way to make sure they are satisfied."

"Feeding frenzy"

Hitchcock said he has gone out of his way to make sure his store stays open and remains profitable. It's something he learned during the roller coaster years of the 1990s. Comic book collecting hit its peak in the mid-1990s when would-be investors viewed new comics as a potential moneymaker, said W. Alan Davis, owner of Silver Bullet Comics in Winston-Salem.

Some collectors had delusions of finding new comics whose value would rival that of the first issue of Superman, whose mint priced value can reach up to $350,000.

Business grew so large that Hitchcock sold 250 copies of the $2.50 landmark issue "Superman Dies" in 35 minutes. But then the trouble began.

"It was that kind of feeding frenzy to nothing in six months," he said. "But I'm a bulldog and I don't give up. If I'm going to put my time and money into something, and be here five and six days a week, then I'm not going to give up."

Other stores in the area were giving up, however, as many had to close their doors. Annual sales for the industry had been slipping for several years, from $336 million in 1996 to an estimated in $200 million 2000, as investors moved into other areas. And maybe with good reason. The "Superman Dies" issue can be found for around $18.

To cope with the comic book industry slowdown, Hitchcock devised some strategies that have served him well to this day. First, he diversified his selections by including more independent comic books, such as Angry Youth Comix and Stray Bullets, to cater a wider audience.

"You can't make it on Marvel Comics and D.C. Comics alone," he said.

He also cut back on the number of copies ordered for each comic book. That reduced the risk of having back issues stuffed in a box while hoping that a collector would come along some day and ask for a back copy.

Another strategy was to create a subscription service that allows Hitchcock's regular customers not to worry about missing an issue. The service has grown from 100 customers in 1998 to 500 this year.

More adventures ahead

And he expects those numbers to continue to grow as comic books begin to see a resurgence in popularity, thanks to the success of such high-profile Hollywood films such as "Spider-Man" and "Daredevil." New collectors have flocked to comic book stores like Hitchcock's, and older collectors have been rejuvenated.

Another factor driving the resurgence is an increase in the quality of the comic books themselves. Publishers are now hiring only the top writers and artists, such as filmmaker Kevin Smith who has worked on a series of "Daredevil" comics. Hitchcock also continues to carry trade paperbacks bound copies of an entire comic series.

"There is a lot of John Q. Public who have seen the (Spider-Man) movie, liked it," Hitchcock said. "So I tell them, 'Want to know where this comes from?' It's an automatic sale."

Even with the newfound popularity of comic books, Hitchcock doesn't advertise much, but he did a television commercial in the early 2000s. He instead places greater reliance on his customers to remain loyal while attracting new customers looking to pick up a comic book to read for enjoyment.

And to draw more customers, he is participating in the industry's free comic book day, scheduled for May 3. Last year, more than 2,200 stores worldwide gave away more than 2 million books. Hitchcock gave away up to 1,500 free issues at the Greensboro library.

He is also looking to expand the store's reach on the World Wide Web to reach new customers, promote his convention and generally draw attention to his store.

"Nothing will ever replace someone coming into a comic book store, picking up a book and then deciding to buy it," he said.

UNCG’s new biotch spinoff

GREENSBORO -- UNC-Greensboro hopes to carve its own niche in the growing homeland defense market by spinning off a biotechnology company from university research that intends to develop and market a device to test the safety of water supplies.

The new company, EcoGenomix, will develop a product called the "WaterChip," which will use gene microarray technology to produce a broad, genetic profile of all constituents within a water sample, whether from pollutants or naturally occurring.

When the test is used regularly, qualitative changes in the water's makeup can be readily detected. Eventually, the test will be marketed to municipal water companies to guard against bioterrorism.

The new company is based on the work of UNCG biologists Parke Rublee and Vincent Henrich and former faculty member Neal Stewart. A patent is being sought for the WaterChip.

"We are taking information from years of research and developing a faster, cheaper and more comprehensive method to evaluate water system quality," Rublee said.

"It's a huge step for the university," said Jerry McGuire, director of UNCG's Office of Technology Transfer. Chancellor Patricia Sullivan added that this "is in keeping with our goal of this university playing a major role as an engine for economic development in the region."

The company has been pushed along in its business development by Eric Button, president of Clemmons-based BioEmerge Partners, a biotech consulting firm. Button will serve as EcoGenomix's CEO and chairman until a full-time president is found. Button, former CEO of Winston-Salem-based Amplistar, is a UNCG alumnus.

During EcoGenomix's infancy stage, it will be housed in the Nussbaum Center for Entrepreneurship in Greensboro and employ five people, including the two UNCG founders, who will retain their academic posts. Button and McGuire are the only board members so far.

Button said the company could employ up to 50 people within three years if the technology proves successful and a market is developed.

Given the difficult climate locally and nationally for raising venture capital for biotech startups, Button said he is bypassing that funding route for now. The UNCG research to date has been funded by about $1 million in grants from the U.S. Environmental Protection Agency.

Bioterrorism and beyond

This week, the company applied for more than $1 million in additional grants from the U.S. Department of Defense's Small Business Innovation Research Program and should know by March if its successful. The federal program will award more than $500 million to small technology companies nationwide in 2003.

"We will not pursue venture capital for at least a year," Button said. "With the academic support the researchers have, as well as some private angel money we're seeking, we'll be fine."

The technology that led to EcoGenomix has been more than three years in UNCG's science labs. The so-called WaterChip will allow researchers to create a detailed genetic profile of all the micro-organisms living in the water and detect chemicals coming from a possible bioterrorism attack, said Jennifer Freeman, director of research with EcoGenomix.

"Since we are not able to anticipate everything a terrorist will do," she said, "we feel we can rely on a more comprehensive approach to detect water quality through the gist of general characteristics and monitoring."

The WaterChip differs from other water tests, its investors say, because the user can see broad changes to a water sample's ecological system. Because a baseline of elements in the water will be established, those who monitor water quality will be able to tell quickly whether vital elements have been killed off or pollutants have been added.

Most existing water tests only look for a few particular items, such as E. coli. Rublee and Henrich said the WaterChip would be capable of identifying hundreds of micro-organisms at once, which they claim no existing test can accomplish.

Initially, the idea for the product centered on bioterrorism protection of municipal water supplies. But Rublee and Henrich said it could be used effectively by any company that depends on pure water for manufacturing, such as food processors, pharmaceutical companies and microchip makers.

Button, the CEO, declined to estimate the potential market size in terms of sales or revenue. He did say that if research progress continues steadily, the WaterChip could be ready to market as a prototype in two years or so.

A better chance 

EcoGenomix is UNCG's second biotech spinoff and its first is about three years. Transgreenix, which was led by biologist Stewart, the former UNCG faculty member, sought to use gene functions in plants to create pharmaceutical products, but the company failed in the early stages of development last year.

Button and McGuire, the technology transfer specialist, both said EcoGenomix stands a much greater chance of succeeding. Not only is the research sound, they said, but industry analysts contend that products relating to bioterrorism will be ripe for public health funding in the near future.

Also, UNCG leaders believe they have more resources available to increase the chances of survival for new spinoff companies. Earlier this year, UNCG hired McGuire to coordinate technology transfer and hired an associate provost for research, which Provost Ed Uprichard said indicates the university's intention to support spinoffs and aggressively seek opportunities turn more campus research into commercial opportunities.

Along the way, UNCG has set a goal of increasing its outside funding from $35 million to $50 million by 2008.

"The formation of an Office of Technology Transfer, increased emphasis on research, construction of a new science building and campus wide efforts on economic development have accelerated UNCG's wherewithal for this type of activity," McGuire said. "I did not anticipate that we would be positioned to promote a biotech start-up in such a short time."

He added that he that some ideas and programs in the social sciences and education show commercial promise and he hopes the seeds for another spinoff company will be planted sometime early next year.

Not just for kicks

GREENSBORO -- Monty Hendrix's interest in the martial arts began with his first viewing of "The Karate Kid" back in the early 1980s. But as a high school student from near Hickory, Hendrix's passion for the Korean art of Tae Kwon Do truly took hold.

When a bully's teasing became incessant, Hendrix took the advice of a family friend and enrolled in a studio to learn self-defense. After a few weeks of classes, he developed the self-confidence to stand up to his tormentor.

Hendrix later continued to train in Tae Kwon Do as a UNC-Chapel Hill student and earned medals in competitions. But after listening to a talk by a renowned grand master, Hendrix decided to pursue a goal of opening of his own dojang, or Tae Kwon Do school.

Hendrix graduated from UNC in 1996 and opened a school in Greensboro with 20 students that same year. Today, he has about 275 students in two dojangs at the Pomona Center in Greensboro and at the Oak Ridge Commons. Hendrix will also open a 12,500-square-foot school east of Greensboro around April.

Hendrix credits the martial arts, which play a large role in his business philosophy, for guiding the growth of his schools in a down economy.

"A good way to do business is to follow principles taught in the martial arts, Hendrix said. "Everything is done in steps."

Hendrix teaches Tae Kwon Do, which is arguably the world's most popular martial art.

An estimated 30 million people in 144 countries train in what is South Korea's national sport; it is also an Olympic event.

There are an estimated 20,000 martial arts schools nationwide, with more than 50 schools in the Triad alone that offer programs that range from Aikido to Tai Chi. With that much specialization of the arts, Hendrix's marketing efforts focus on the potential student who is curious about pursuing a marital art.

"When people want to study a martial art, it's something they have to have an interest in to begin with," said Cheryl Rowland, who also helps coordinate Hendrix's advertising efforts, updates the Web site and teaches classes. "It's a matter of being visible when they decide to study."

Getting the word out

That effort begins with updating the training school's Web site each week to reflect schedule changes, offer contact information and show photos to give prospective students a glimpse what they could expect if they enroll.

The school doesn't advertise much in local newspapers or on television. Hendrix instead places a large ad in the local phone books. Those ads feature the school's Web address and Hendrix's credentials, which include his black belt ranking and numerous state and national sparring tournaments awards.

Bringing in help for the Web site is just one example of how Hendrix has learned to delegate responsibility to others.

Hendrix, who started his school with $5,000 of his own money, has always had a hand in all aspects of his business, whether it be marketing or teaching classes. In the last few years, he has learned to rely on his students and instructors to help handle the student recruitment and teach classes.

And that's a good step, say members of the National Association of Professional Martial Artists.

"Any school's success is going to be attributed to staff and instructors going out and marketing the school instead of going on the deck and just teaching," said Phil Beatty, a staff member of the Clearwater, Fla., organization. "If they also focus on marketing, then they will do well."

“Why scare them with a contract?”

Once a student decides to take classes, Hendrix doesn't require them to sign a yearly contract. So far, about 70 percent of Hendrix's students stay at least one year and 80 percent of his students achieve at least a green belt.

"They will sign with us anyway, so why scare them with a contract?" Hendrix asked rhetorically.

Another selling point Hendrix uses to attract students is the diversity of his programs. Hendrix teaches other arts to attract students' interested in other disciplines, such as Brazilian grappling and soon, another Korean art, Hapikdo, which emphasizes throwing techniques along with kicks.

Hendrix is also following the popularity of TaeBo, an aerobic-style class where participants kick and punch to music, by offering his own version of cardio kickboxing. This allows parents and others to take a class at the school at a pace they feel comfortable while joining their child for some physical activity.

He attributes the marketing efforts and the diversity in courses as two reasons why the school is continuing to see its enrollment figures grow.

Hendrix has 225 students at the main Greensboro school and the Oak Ridge school has about 50 students with a goal of attracting 25 more by the end of the year.

Once his new school opens, he wants to have 500 students by 2004. He also sees his revenue increasing from $155,000, which he made last year, to $225,000 this year.

Increasing enrollment could be a challenge since martial arts classes are considered a luxury that many may forego in a down economy, said Beatty, of the National Association of Professional Martial Artists.

But Hendrix counters that after the terrorist attacks of Sept. 11, 2001, people are sensing a greater need to learn to protect themselves.

"People, even in a bad economy, want to do something for themselves," he said. "The fact is, there is always going to be a demand for exercise."