3 things Houston entrepreneurs need to keep in mind to run a lean startup and reduce risk

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Lean methodology aims to help startups reduce risk and helps entrepreneurs make better, more efficient decisions. Miguel Tovar/University of Houston

There are few things riskier than launching a new business. You could run through a mine field and have a better chance at living than launching a successful, long-lasting business. In fact, the Harvard Business School even reported that three out of every four startups fail. Fortunately, a new process has come to light that was designed precisely to reduce the risk of starting a business. Lean startups champion trial and error over detailed planning. Customer feedback over "gut feeling." Cyclic processes of design over traditional development.

Some lean startup ideas have already gone mainstream because they've proven to be so effective. The principles of "minimum viable product" and "startup pivot" have become so engrained in modern business that even university business colleges have begun to teach them.

There are three key aspects of the lean methodology.

Educated guesses

Number one: Instead of spending a year conducting research and planning long-term, lean startup entrepreneurs go with the idea that all they have on the first day is a bunch of unproven ideas. Guesses, really. These entrepreneurs forego the traditional business plan and opt instead to give a Cliff Notes version of their big idea using a template dubbed "business model canvas." It's pretty much a diagram that shows how a business generates value not just for its consumers, but for itself.

Field work

Number two: Lean startups use an "out and about" method for testing their ideas. It's a kind of customer development. They go "out and about" and basically interview potential customers, interested people, and people on the fence about all aspects of their business. How's our pricing compared to others you've seen? Do you like our product features? What do you think of our strategy? Lean startup entrepreneurs amend their ideas based on the feedback they get from customers. That's the beauty of the lean method: it's based on your willingness to change directions based on new information. Sound familiar? Well, it should. I just described pivoting. A lean startup concept now adopted by major corporations.

Agility means stability not fragility

Number three: The software industry bore a method called agile development. Agile development cuts down on wasted time because it emphasizes the ability and willingness to change directions and adapt fast. That's what agile means. To move quickly. There's a company named RoofProtect Pro that created a chemical they thought would appeal to homeowners looking to reduce shingle rot. Turns out there wasn't really a demand for reducing shingle rot. It wasn't as big a deal as the RoofProtect Pro founders had hypothesized. However, after speaking with business owners they discovered there was a demand for something to help reduce rust and deterioration of signage. RoofProtect Pro went back to the drawing board to build and test a prototype for a chemical that reduces rust and staining on different material like concrete and metal. A year later RoofProtect Pro became SurfaceSustain and obtained over $2 million in venture capital funding.

Now that's agility!

It's no surprise, then, that in the high-stakes world of business, a methodology designed specifically to reduce risk would prove successful. Lean methods don't guarantee success, of course, but the principles it holds dear do help strip away a lot of wasted time and energy and have proven to be highly efficient. Now, if there's an antidote to riskiness, it's got to be efficiency. Efficiency tightens a business to bare bones so there is little room for big risks to hurt your venture.

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This article originally appeared on the University of Houston's The Big Idea.

Rene Cantu is the writer and editor at UH Division of Research.

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Global diagnostics manufacturer opens new Houston facility, headquarters

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A global health care company has cut the ribbon on its new facility and headquarters in Houston.

Healgen Scientific, which manufacturers diagnostic products for infectious diseases, toxicology, oncology, and more, opened the facility last week. Operating as the company's new headquarters, the location is the first manufacturing facility in Houston for Healgen. The company currently has around 120 employees in the U.S. and is expected to create over 200 new jobs in the next three years

“This new facility in Houston uses very innovative technology that will precisely diagnose viruses or diseases so people can be confident in the results they are receiving,” Bingliang Fang, CEO of Healgen Scientific, says in a release. “Here, Healgen is able to produce quality tests on a very large scale—nearly a half million per day. We are proud to provide made in the USA products with a commitment to using local materials, employing local residents and being an integral part of the community.”

Amid the COVID-19 pandemic, Healgen Scientific teamed up with Siemens Healthcare Diagnostics Inc. on a Rapid COVID-19 Antigen Self-Test. Today, over 2 billion Rapid COVID-19 Antigen Self-Test Kits have been used worldwide.

With 325 automated production lines around the world, Healgen's facilities have a daily production capacity of more than 22 million health care tests. Recently, the company moved 15 of these production lines to the U.S., investing over $100 million in three large-scale manufacturing and warehouse facilities in New York, New Jersey, and Texas. The facility in Houston will also produce RSV tests later in the year.

“We welcome you to our great city,” says Chris Hollins, city controller, City of Houston Controller’s Office. “This is a city, and a state, of business and of commerce. We’re excited that hundreds of jobs are on the way because of the investment of Healgen and the Fang family, and we’re grateful for your presence. On behalf of more than 2 million Houstonians, we applaud Healgen Scientific LLC on bringing world-class innovation and disease management to the United States.”

Healgen cut the ribbon on its newest facility last week. Photo courtesy of Healgen

Houston's Rice University earns top-15 rank on 2 prestigious new lists

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Classes are barely back in session, and already Rice University students have report cards to write home about. In this case, their school's getting graded. No surprise: It made the honor roll.

Rice University has earned top-15 rankings in two new national surveys. Education information and review platform Niche has ranked Rice the 15th best college in the country and the No. 1 best in Texas for 2025. And Forbes has ranked Rice No. 9 in its 2024-25 list of top U.S. colleges.

While still head of the class in Texas, Rice actually slid down the Niche national rankings from its place at No. 9 last year. The university received an overall grade of A+, and an A+ in six of the 12 ranking categories: academics, diversity, professors, student life, value, and location. It gets an A for the party scene, campus, and campus food; an A- for dorms, a B+ for athletics, and a B for safety.

Nationally, Rice ranked No. 1 for:

  • Best Colleges for Kinesiology and Physical Therapy in America
  • Best Colleges for Sports Management in America
  • Best Colleges for Architecture in America

It also rated No. 1 overall school in Texas, and No. 1 best-value college in the Houston area.

"Amazing diversity, great professors, and world-class research. Especially good for people who like going to small schools with no sororities or fraternities. The financial aid is by far one of the best in the country ..." reads one five-star review on Niche.com. "The academic competition is not as crazy as schools like Harvard or Princeton and the coursework is manageable... Overall great school with emphasis on smaller class sizes and community (through the famous residential college system, which Rice is known for - this is why they compare it to Hogwarts!)"

Rice University made great strides in the new Forbes rankings, leapfrogging from No. 22 last year to No. 9 for 2024-25. It's the first time the university has landed in a top-10 spot on the prestigious list.

Forbes uses 14 metrics to determine 500 top American colleges that offer the best career, educational, and financial outcomes for all students.

"Forbes’ annual list showcases 500 schools that produce successful, high-earning, and influential graduates from all economic backgrounds, with less student debt," the report's authors say.

Forbes applauds Rice's small student-to-teacher ratio, range of undergraduate majors, and robust financial aid assistance, among other factors. The university earns a financial grade of A. Total annual cost is $74,110, and average grant aid awarded is $51,955, Forbes says. The median 10-year salary for alumni is $152,100.

"Admissions data revealed an acceptance rate of only 7.7 percent for the class of 2027 — a record low for the university," the report says. "Enrolled out-of-state and international students outnumbered those in Texas, accounting for the majority of the class of 2026 student body."

In a news release, Rice University President Reginald DesRoches says Rice’s vault to the top 10 in the Forbes rankings underscores its commitment to providing a world-class and affordable education, cultivating groundbreaking research, and maintaining a vibrant, inclusive community.

“This ranking is a testament to the hard work of our students, faculty, staff and the incredible support of our alumni and to the enduring strength of our academic and research programs, "DesRoches says. "At Rice, we are committed to nurturing the next generation of leaders and innovators, and this recognition by Forbes reinforces the impact of our mission.”

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This article originally ran on CultureMap.

Houston expert shares 3 ways to stay on top of employee mental health

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Conversations surrounding mental health have come to the forefront of business and is an imperative aspect that cannot be ignored by business leaders.

Approximately 20 percent of Americans, which is 50 million people (about twice the population of Texas), are experiencing a mental illness, 15 percent of Americans had a substance use disorder in the past year and nearly 5 percent, over 12.1 million adults, reported serious thoughts of suicide (Mental Health America). Notably, certain professions, such as construction, exhibit higher suicide rates, (CDC). With these staggering numbers, the foundation of workplace safety extends beyond physical well-being to encompass psychological health.

The landscape has undergone a transformation, stemming from the pandemic, and the stigma of mental health concerns and seeking help has loosened. Recognizing that September is Suicide Prevention Month, below are three ways businesses of every size can actively support the mental well-being of their employees.

Be Open

Long hours, physical strain and financial pressures can take a toll on employees. Many people are apprehensive to talk about mental health issues and feel it may show a sign of weakness.

Helping employees move mental health topics into everyday conversation begins with open communication. When leadership and managers listen to employees, they create an outlet for them to freely discuss their experiences and act if needed. Leadership sets the tone, and when leaders openly discuss mental health, it creates a ripple effect that encourages employees to feel more comfortable sharing their own experiences. By taking the lead in breaking the silence, leaders play a crucial role in dismantling the stigma surrounding mental health issues, fostering a workplace culture where open conversations and support are not just welcomed but embraced.

At Skanska in Houston and North Texas, we have gone as far as providing mental health first aid courses, which we call our “green sticker” program. Those who are willing to go through the training on how to talk with colleagues who may need to discuss challenges are given a green sticker to wear on their hard hat. This signifies to everyone on a job site that they are trained to discuss mental health issues and life’s challenges. In turn, these first aiders can direct them to the right resources for more in-depth assistance. Doing a simple thing like this helps break the silence and promotes mental well-being on the job site and in the workplace.

Provide Support

Shifting the workplace culture to include more open discussions has an incredible impact on employees. There are also policies companies can establish to make mental health and well-being more actionable. Employers can offer rotating mental health days or offer flexibility, which makes it easier for workers to ask for time off for a doctor’s visit or therapy session.

Also providing benefits like an employee assistance program (EAP), which is an anonymous way employees can seek mental health services or other resources for the root of the problem, such as financial and legal counseling, shows support. Employer-sponsored health screenings promote overall employee wellness, but it is another avenue where employees can address their own mental health and wellbeing in a private setting.

Stay Focused

Mental health and wellbeing concerns are much harder to spot than physical ailments, but they can have dire consequences if they are not addressed. Once the conversations start and the support is in place, it is not a time to become complacent. Leadership and managers need to continue to have regular conversations with their staff, which can help pinpoint when someone is struggling. Regular training for staff, even if they are not a mental health first aider, will help everyone stay vigilant in taking care of their own and watching out for their colleagues’ mental health.

There are numerous stressors in the workplace and when they are coupled with personal stressors, workers can be stretched thin. Companies that intentionally focus on their employees’ mental well-being will reap the benefits of a happier, healthier workforce.

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Dennis Yung is executive vice president and general manager at Skanska, one of the world's leading project development and construction groups, where he oversees building operations for Houston and North Texas.
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