V (Five) Questions for Veteran Small Business Owners Featuring Dr. Timothy Schilbach, Founder of Cybersecurity Firm Penacity, LLC.

November 29, 2021

As we come to the end of National Veterans And Military Families Month (November 2021), we’re highlighting one more great Veteran-owned businesses in Anne Arundel County through our interview series:

“V (Five) Questions for Veteran Small Business Owners”

Last but not least, and perfectly timed for a day when Cyber Monday shoppers should be thinking about cybersecurity more than ever, our fifth and final Q & A features Dr. Timothy Schilbach, Founder of Hanover, Maryland-based cybersecurity firm Penacity, LLC.

What’s the name of your business and how did you come up with the name?

The name of our company is Penacity, LLC. We came up with the name because we as a company are tenacious in nature. So People with Tenacity was a good fit for what describes us. It also works as a double-entendre with Penetration Testing, which is a staple in our company competencies. Either works for us as they are both good descriptions.

What does your business do and what motivated you to start it?

Our company focuses on holistic cyber security approaches to secure our customers. We provide Governance, Security Operations, and a variety of cyber testing for companies to ensure they do not become the next statistic. We also provide services to the Federal and State governments. Our catalog has expanded over the years to add DEVOPS and Structured Cabling as these two lines of business all grow out of cyber security to fit our customer’s needs.
We were motivated to start the company to help secure and bring good cyber solutions to industry and government. We see it often ignored in companies or a lack of expertise on how to implement and integrate it into the organization. That’s where we come in. We have a hands on approach, almost white glove you could say.

If you had to name just one, what quality or skill from your service most applies to being a small business owner?

Strategy! As a business owner it’s not enough to be the best at your trade. That’s just the tip of the iceberg. Process and Strategy are required for any entrepreneur who wants to grow their business beyond a few people. You have to have a market strategy, make strategic partnerships and of course it’s all for not if you don’t have processes to back them up.
I know, I snuck in two on you, but I really believe a lot of these skills are dependent on others. But I will still stick with Strategy!

What aspect of your business are you most proud of/what’s your favorite part of running it?

I am most proud of our accomplishments. In cyber security we get to see companies come to us in their darkest hours (ransoming). It exhilarating to assist the client through the process and help them save their business. This applies not just to commercial business, but we have responded to incidents in the Federal and State governments. After the fire is out and we are on the road to recovery, its great helping our clients improve their cyber security postures and assist them in their growth. Helping people is why we do what we do. We also get to work on many engineering problems that would baffle even the biggest of giants. We may not be a Fire Eye, but we know we have the same level of talent and it feels good to be part of the solution. Cyber is here to stay and it needs to be integrated into every industry or our national security is at risk.

What’s the top piece of advice you’d give a veteran who’s thinking about starting a small business?

I normally tell people that business ownership is like the following: the hardest you will ever work, for the least amount of money made. I see a lot of businesses struggle in all areas, just not sales. Some of the advice I have for my fellow Veterans coming into entrepreneurship after doing this for 20 years:

1. Slim down your lifestyle
a. This is important as you will most likely not be able to pay yourself early on or at least not make your ideal salary
b. Remember you come last, after everyone else is taken care of, you have what’s left.

2. Have a vision
a. What is your market?
b. Who are you competitors?
c. What differentiates you from everyone else?

3. As a CEO, you’re going to need to fund raise all the time
a. Even as you get bigger, cashflow will always be an issue, the number just gets bigger.

4. When you make your business plan, have an exit strategy
a. Not all business or ideas will succeed, know when to shut it down.
b. If successful, at what point should you look for acquisition or sales of your IP?

5. Create strategic relationships
a. When you start off, your most likely going to need to be a sub-contractor to a bigger company like CGI or Leidos
b. Find like businesses and partner with them
i. You can share work or even talent!
ii. There is safety in numbers, you cannot do everything and everyone is a genius at something!
c. Once you grow a bit and have experience, you can start to prime your own contracts

There is so much more I could say, but if you get the above advice correct, you will be around long enough to figure out the rest.

 

To learn more about Penacity, visit https://www.penacity.us/about.html

To learn more about how AAEDC supports entrepreneurs in the technology sector, visit our Arundel Defense Tech Toolbox.

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