Houston wealth management adviser shares strategies for starting a successful business

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Here's what this wealth management adviser wants you to know before you start your business. Photo via Getty Images

May is Small Business Appreciation month and as a Houstonian, small business owner and wealth management advisor, I understand firsthand the questions, considerations and challenges involved with navigating the nuanced world of small business ventures.

In 2005, I started RSF Wealth Management with my business partner. RSF Wealth Management is a Houston-based firm of Northwestern Mutual focused on comprehensive, collaborative and educational financial planning.

Understanding that every startup is different, I believe there are a few key strategies to keep in mind when starting a business.

1. Create a comprehensive business plan

Any lucrative, viable business has to start with a good plan that outlines what you will need to grow revenue and thrive long-term. Creating this strategic business outline will serve as a roadmap for your beginning years as well as a marketing tool when finding investors. The business plan should highlight what your outlook is for the next five years, how you will leverage your product to make profit, and how much money you will need to achieve and maintain financial success—no matter what scenario may come your way.

2. Establish a solid financial foundation

As most startup businesses take up to five years to turn over profit, it is important to receive funding or set aside extra cash, even if it’s a small amount. My advice to small business owners is to make sure you have at least six months to a years’ worth of liquidity before starting a business venture. Emergency savings funds and other cash reserves can help to cover the operational and overhead costs to startups. If you don’t have enough in your personal savings or cash reserves, there are loan options for small businesses, including the paycheck protection program loan, economic injury disaster loan, traditional SBA 7(A) loan and SBA express bridge loan.

3. Verify everything is documented

Documenting everything is crucial when building the foundation of your business for both legal and tax purposes. Not only will this help if something goes wrong with your business, but it will also keep formal structure between you and your business partner. All startups should complete a buy-sell agreement, which details how your partners’ share will be obtained by the remaining partners in case of their death or leave. I also recommend filing a morality clause contract, which requires all employees to comply to behavioral standards during the life of their contract.

4. Review your insurance and tax options

Small business owners should be regularly reviewing their tax and insurance options to ensure they are updated to reflect changing business needs. For instance, the SECURE Act 2.0 tax credit is a new incentive designed to make it easy and affordable for small businesses to offer employer-sponsored retirement plans. The new legislation allows increased tax credits to small businesses to encourage plan sponsorship and improve retirement readiness.

Additionally, business insurance for startups can help cover costs associated with property damage or liability claims. For example, disability overhead expense insurance provides your business with money to pay for everyday operational expenses in the event you’re unable to work due to an illness or injury. Generally, if you provide coverage for employees and cover the premium, you will be able to deduct those costs as a business expense.

Despite the difficulties of making the jump from employee to entrepreneur, 5 million new businesses were created in 2022 according to a study by the US Census Bureau. New businesses are being created every day and with the excitement of starting a new business also comes the complexities and challenges associated with a new business venture.

Financial advisors and industry experts can help you create a plan, understand what loan option is right for you and how much you will need to have in cash reserves to ensure you can securely and stably run your new business. No matter the size or operation of your business, financial advisors can help document your finances and connect you with the right attorney or accountant to set you up for long-term success.

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Keith Rollins is a wealth management advisor with Northwestern Mutual and a founding partner of RSF Wealth Management.

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Houston professor awarded $2.6M grant for retina, neurological research

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University of Houston College of Optometry Professor John O’Brien has received a $2.6 million grant from the National Eye Institute to continue his research on the retina and neurological functions.

O’Brien is considered a leading expert in retinal neuroscience with more than 20 years of research in the field. The new funding will allow O’Brien and his team to continue to study the dense assembly of proteins associated with electrical synapses, or gap junctions, in the retina.

Gap junctions transfer electrical signals between neurons. And the plasticity of gap junctions changes the strength of a synapse, in turn changing how visual information is processed. Previous research has shown that reduced functions of electrical synapses could be linked to autism, while their hyperfunction may lead to seizures.

“The research we propose will significantly advance our understanding of the molecular complexes that control the function of electrical synapses,” O’Brien said in a news release.

The team at UH will work to identify the proteins and examine how they impact electrical synapses. It is particularly interested in the Connexin 36, or Cx36, protein. According to O’Brien, phosphorylation of Cx36, a short-term chemical modification of the protein, serves as a key driver of plasticity. And the protein has been linked to refractive error development, which is one of the largest vision problems in the world today.

Additionally, OBrien’s research has shown that plasticity is essential for all-day vision, allowing the retina to adjust sensitivity and sharpen images. He has also built a catalog of the core set of proteins surrounding electrical synapses that are conserved across species. His research has been funded by the NEI since 2000.

5 minority-founded Houston startups shine as Innovation Awards finalists

Meet the Finalists

Houston is one of the most diverse cities in the nation, and that trend carries over into its innovation and startup ecosystem.

As part of the 2025 Houston Innovation Awards, our Minority-founded Businesses category will honor an innovative Houston startup founded or co-founded by BIPOC or LGBTQ+ representation.

Five minority-founded businesses have been named finalists for the 2025 award. The finalists, selected by our esteemed panel of judges, range from a wearable health tech device company to a clean chemical manufacturing business to a startup with a lunar mission.

Read more about these innovative businesses, their initiatives, and their inspirational founders below. Then join us at the Houston Innovation Awards on Nov. 13 at Greentown Labs, when the winner will be unveiled at our live awards ceremony.

Tickets are on now for this exclusive event celebrating all things Houston Innovation.

Capwell Services

Houston-based methane capture company Capwell Services works to eliminate vented oil and gas emissions economically for operators. According to the company, methane emissions are vented from most oil and gas facilities due to safety protocols, and operators are not able to capture the gas cost-effectively, leading operators to emit more than 14 million metric tons of methane per year in the US and Canada, equivalent to more than 400 million metric tons of CO2e per year. Founded in 2022, Capwell specializes in low and intermittent flow vents for methane capture.

The company began as a University of Pennsylvania senior design project led by current CEO Andrew Lane. It has since participated in programs with Greentown Labs and Rice Clean Energy Accelerator. The company moved to Houston in 2023 and raised a pre-seed round. It has also received federal funding from the DOE. Capwell is currently piloting its commercial unit with oil and gas operators.

Deep Anchor Solutions

Offshore energy consulting and design company Deep Anchor Solutions aims to help expedite the adoption of floating offshore energy infrastructure with its deeply embedded ring anchor (DERA) technology. According to the company, its patented DERA system can be installed quietly without heavy-lift vessels, reducing anchor-related costs by up to 75 percent and lifecycle CO2 emissions by up to 80 percent.

The company was founded in 2023 by current CEO Junho Lee and CTO Charles Aubeny. Lee earned his Ph.D. in geotechnical engineering from Texas A&M University, where Aubeny is a professor of civil and environmental engineering. The company has not raised VC funding, but has participated in numerous accelerators and incubators, including Greentown Labs, MassChallenge, EnergyTechNexus LiftOff and others. Lee is an Activate 2025 fellow.

Mars Materials

Clean chemical manufacturing business Mars Materials is working to convert captured carbon into resources, such as carbon fiber and wastewater treatment chemicals. The company develops and produces its drop-in chemical products in Houston and uses an in-licensed process for the National Renewable Energy Lab to produce acrylonitrile, which is used to produce plastics, synthetic fibers and rubbers. The company reports that it plans to open its first commercial plant in the next 18 months.

Founded in 2019 by CEO Aaron Fitzgerald, CTO Kristian Gubsch and lead engineer Trey Sheridan, the company has raised just under $1 million in capital and is backed by Bill Gates’ Breakthrough Energy, Shell, Black & Veatch and other organizations.

Torres Orbital Mining (TOM)

Space tech company Torres Orbital Mining aims to pioneer the sustainable extraction and processing of lunar regolith and designs and builds robotic systems for excavating, classifying, and delivering lunar material. The company aims to accelerate a permanent and ethical human presence on the Moon.

The company was founded this year by Luis Torres, a current MBA candidate at Rice Business.

Wellysis USA Inc.

Wellysis USA Inc. works to detect heart rhythm disorders with its continuous ECG/EKG monitor with AI reporting. Its S-Patch cardiac monitor is designed for extended testing periods of up to 14 days on a single battery charge. The device weighs only 9 grams, is waterproof and designed to be comfortable to wear, and is considered to have a high detection rate for arrhythmias. It is ideally suited for patient-centric clinical trials to help physicians make diagnoses faster, cheaper and more conveniently.

It was established in Houston in 2023 and participated in the JLABS SFF Program the same year. It closed a $12 million series B last year. It was founded by CEO Young Juhn, CTO Rick Kim, CFO JungSoo Kim and chief strategy officer JoongWoo Kim.

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The Houston Innovation Awards program is sponsored by Houston Community College, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.

The Ion taps John Reale for startup and investor role

new hire

The Ion has named John "JR" Reale as its director for startups and investor engagement.

In his new role, Reale, a longtime leader in Houston’s startup ecosystem, will work to strengthen the innovation district's founder and investor network.

"Here’s what I’ve come to believe: the Ion is not just a building, not just a real estate play, and not just another innovation district. COVID, remote work, and shifting market dynamics changed the rules. Key ingredients like co-working, events, and community, while impactful, are no longer enough on their own," Reale shared on a LinkedIn post announcing the move. "What’s needed are advantages ... We need to intentionally design a system that repeatedly delivers advantages so founders can pull forward their visions."

Reale previously served as executive in residence and venture partner at TMC Venture Fund and co-founded Station Houston. He also serves as managing director of Integr8d Capital. He's an investor and serves on the board of directors for a number of venture-backed companies, including Cart.com, Lionguard and others.

The Ion will host "Today Is Day One – A conversation with John (JR) Reale" to welcome Reale to the role on Tuesday, Oct. 21. Reale will be joined at the event by Heath Butler, partner at Mercury, to discuss their thoughts on shaping Houston's founders ecosystem, as well as the Ion’s Founder Advantage Platform.

"On top of this connected architecture, we will build product. That product will be the Founder Advantage Platform to remove friction, compress time, and compound outcomes," Reale continued on LinkedIn. "This is the system that will drive repeatable experiences, and naturally, make these journeys so much more fun."

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