Balm Innovations, LLC
Balm Innovations LLC is the product of entrepreneurial drive and scientific inspiration. While a student of the University of Arkansas at Little Rock’s Executive MBA program, Lydia Carson competed in the 2004 Donald W. Reynolds Governor’s Cup business plan competition. She and her team built their business plan around launch of a topical cream developed by a University of Arkansas for Medical Sciences’ pharmaceutical researcher. Dr. Bill Gurley’s severe sunburn motivated him to develop a cream that relieves a variety of skin irritations. Gurley’s formula uses tea tree oil, a natural substance from Australia’s melaleuca tree.
Though another team won the business plan competition, Carson’s work – and her own experience with the cream – convinced her of the market potential for this skincare product. Carson negotiated a license of the UAMS trade secret for the cream, and established operations in 2004 to commercialize it. She serves as President and CEO. Dr. Gurley, developer of the cream and UAMS’ Clinical Pharmacokinetics Research Laboratory director, is Chief Science Officer. The firm markets the product under the trade name Omnibalm. It is being sold through USA Drug, Super D and other pharmacies in Arkansas and through the company’s website, www.omnibalm.com.
Carson was familiar with the SBDC through her role as director of Arkansas Manufacturing Solutions, a Department of Commerce Manufacturing Extension Partnership affiliate. She turned to the SBDC early for her market and business research needs. The SBDC provided market data for retail distribution sectors and reviewed the draft business plan. With Carson’s decision to establish operations, the SBDC also offered advice on legal structures, trademarks, FDA labeling regulations and licensing. The SBDC and Carson have discussed seeking Small Business Innovation Research funding for additional product research.
With a well-crafted business plan supported by SBDC research, the Fund for Arkansas’ Future, a member-managed angel fund, provided $300,000 in financing in 2006. These monies are helping Balm Innovations expand introduction of the Omnibalm product line. The firm has also added a sales and marketing director to its staff. Balm Innovations’ sales have nearly doubled in the nine months following the investment as compared to the previous nine months that Omnibalm had been on the market.
Carson has continued to turn to the SBDC for help. The firm currently is focused on expanding its retail presence and refining the definition of its target customer. Carson has used the SBDC’s research services to assist in accomplishing these objectives. By analyzing company sales data, the SBDC was able to suggest promising locations in neighboring states for an expansion drive. The SBDC is correlating product sales with customer psychographic profiles to better target product marketing efforts. Diabetics are a special needs segment of the skincare product market, and the SBDC is providing Carson with research on this population for the development of a marketing strategy to reach them. Carson believes natural/organic product shoppers may also be favorably disposed to Omnibalm, so the SBDC is supplying Carson with proprietary market research on this demographic as well.
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