APRIL 2016
WWW.COSE.ORG
Mind Your Business
RESOURCE GUIDE E O R FT O M
$
SE? HE
WANT
THE SALES GROWTH AND FINANCIALS ISSUE
o en w
O yo
ur s sh u a le s l il l d ho a w o nd w s g u r f i to u n e m a a n c i a l g m li n ke yo botto ur
RESOURCE DIRECTORY INSIDE These experts are ready to turn your financial fortunes around
Every Great Business Starts with Great Employees A competitive benefits package that includes a high-quality health insurance plan can help you find the best employees for your small business team. As the oldest and largest health insurer in Ohio, we partner with COSE to offer benefit plans that work for small businesses. So, whether you’re hiring your first employee or growing your business, we have a solution. To find out more about Medical Mutual plans offered through COSE, please contact your broker or the COSE Benefits Team at Medical Mutual at (440) 878-5930.
contents RESOURCE GUIDE
10 FINANCIAL FOCUS
4 MEMO
Understand how to make sense of your balance sheet and crystalize your financial outlook.
16 LEGAL TOOLKIT
A growing business needs the right protections in place. Get educated on the legal tools you need to know.
5
DOCTOR, DOCTOR
18
Our Sales Doctors know just the thing to cure what ails your sales strategy.
RESOURCE DIRECTORY
It wouldn’t be a Resource Guide without a Resource Directory, right? This issue we’re providing you with experts who can answer your sales and financial questions.
1-888-OHIOCOMP YOUR WORKERS’ COMP PARTNER!
1-888-644-6266 | WWW.1-888-OHIOCOMP.COM
PREFERRED COSE PARTNER SINCE 2006
➤ Aggressive medical-case management
➤ Negotiated medical discounts
➤ Nurse Case Manager dedicated to COSE employers
➤ Personalized, local support
➤ Return to work focus
➤ Services tailored for smaller businesses
➤ Workers’ comp cost-containment strategies
➤ Headquartered in Cleveland
APRIL 2016 | COSE Resource Guide | 3
MEMO
The Right Resource for Your Business
W
hen I think about the success I’ve had in my career my thoughts invariably come back to the resources I’ve encountered along the way that have helped give me the edge I’ve needed. I think
about the networking opportunities, the seminars, and the many examples of reference materials that you’ll see in my office that I find myself going back to time and again. As a small business person it’s absolutely critical to understand that you don’t have to go it alone when it comes to managing your business. We here at COSE understand that and it’s why we work so hard to make sure you have the resources that you need, whether they come in the form of events, experts — or the very magazine you’re holding in your hands right now. You are looking at the inaugural Mind Your Business Resource Guide.
Mind Your Business
A PUBLICATION OF THE COUNCIL OF SMALLER ENTERPRISES COUNCIL OF SMALLER ENTERPRISES STEVE MILLARD COSE Executive Director smillard@cose.org MEGAN KIM Managing Vice President, Membership Development and Marketing mkim@cose.org SHAWN A. TURNER Content Director sturner@cose.org DAN ROMAN Director of Corporate Relations droman@cose.org CONTRIBUTORS SARA ADAMS
STACI BUCK Art Director
This guide is the first of four that will be coming your way this year, each
COSE.ORG
focused on a different topic of importance to you and your business. Today’s
CRAIN COMMUNICATIONS, INC. Design and Production Services
theme is sales and financials, with IT strategy, human resources and strategic planning to follow later in the year. Beyond the in-depth analyses and tips you’ll find within, these guides set themselves apart in one other important way: Each magazine will also include a list of experts related to the topic of the guide that can provide you with additional help you might need regarding issues around that topic. As I mentioned above, we strive every day to put you in the best possible place to succeed, so I also invite you to peruse our site at www.cose.org to see how else we might be able to assist you. I’m confident you’ll find the resources you need to help you achieve your vision of success.
MICHAEL STANEK
Chairman, COSE CFO, Hunt Imaging
4 | COSE Resource Guide | APRIL 2016
5WAYS TO TAKE YOUR SALES TO THE NEXT LEVEL By SHAWN A. TURNER
APRIL 2016 | COSE Resource Guide | 5
H
al Becker doesn’t mince words when it comes to assessing the profession he’s spent so many years of his life working in. “Most sales people (are terrible),” the sales consultant says, with a passion that reflects his decades of sales experience. Author, motivational speaker and sales trainer Marvin Montgomery agrees that there is a negative stigma surrounding the sales profession. “Sales people think anyone can get out there and do this,” he says, adding, “Most don’t do it the right way.” For a small business with limited resources, inefficiencies in the sales process can have a dramatic effect. So, what is the right way to approach the sales process? Becker and Montgomery identified five ways your business development program can be driven to new heights.
1
IDENTIFY PROSPECTS, NOT SUSPECTS Entrepreneurs have a limited amount of time on their hands and should not be wasting that precious time on suspects; they should be going after prospects, Montgomery says. How can you tell the difference between the two? It helps to ask the following questions during the initial contact:
‘‘
Sales people need to look at the initial meeting as an exploration meeting.
‘‘
MARVIN MONTGOMERY, Author, motivational speaker and sales trainer
6 | COSE Resource Guide | APRIL 2016
n
What is the timeframe for when the product or service must be delivered? If the timing doesn’t work out for both parties, then there is no sense moving forward.
n
Does the customer have the budget for the product or service? Again, if there can be no agreement on pricing, then the sales person is not talking to a prospect; he or she is dealing with a suspect.
n
Is this person a decision-maker? Ideally, your sales team will be most efficient in working with people who are in a position to make a decision and aren’t just gathering information.
“Sales people need to look at the initial meeting as an exploration meeting,” he says. “You’ll both explore if there is a need to partner up together.” And if there isn’t a need to partner, make sure the customer leaves the meeting feeling good about potential business deals in the future.
LISTEN
2
A lot of people simply think selling is selling, Montgomery says. That’s the wrong way to go about it. He believes selling is listening. It’s not the job of a small-business sales person to do an info dump. It’s the job of this person to identify whether there is a need for their product or service. “It’s all about asking questions and listening,” he says. Becker agrees that sales people should engage potential customers in conversation. “I bet if you ask all of your questions and listen to the customer, they will tell you what they want,” he says. “People want to be helped, not sold.” Montgomery says it’s best for sales people to engage in “active listening” to help force them to pay attention. This can include note-taking and can also be as simple as leaning forward during the conversation. “Acknowledge that you understand what is being said,” Montgomery says.
APRIL 2016 | COSE Resource Guide | 7
3 ASK FOR THE BUSINESS Once the sales person has a clear understanding of the customers’ needs, it’s time to start closing the sale. That begins with asking for the business, Montgomery says. Becker says it’s best to be direct at this stage of the process. He points to how doctors approach patients: Doctor’s don’t waste
8 | COSE Resource Guide | APRIL 2016
AFTER THE MEETING Regardless of whether a sale is made, it’s important for small businesses to rely on the one natural advantage they have over their larger competitors: the personal touch. “Be real,” Becker says. “Have a high emotional intelligence. If you are truly empathetic and put the customer first, they will never forget you. Do the right thing. Don’t just talk a good game, but pretend you have just one client: How do they want to be treated?”
‘‘
Be real.
‘‘
4
time talking about family matters; they ask pointed questions to determine your health. In the same way, sales people should ask direct questions to try to zero in on the deal. “Get to the point,” he advises. “You don’t need to dance. You don’t need to play games.”
HAL BECKER, sales consultant
5
PRACTICE, PRACTICE, PRACTICE Becker and Montgomery agree that small business owners need to be continually refining their sales game. In the same way Lebron James practices the fundamentals of the game of basketball, sales people need to practice their own fundamentals. “A lot of sales people come to the game not prepared and they think the best way to sell is to endear themselves to the customer by talking a lot and doing a lot of small talk,” he says. “That’s the last thing you should do.” Instead, in the same way musicians have a musical score laid out in front of them during a concert, entrepreneurs shouldn’t be afraid to bring notes to a sales meeting, Becker says. “Sales people are supposed to cheat,” he explains. If you have your questions already written out, that allows you to focus on Step No. 1: listening. MYB
NEXT STEPS Want to boost your sales in 90 days (or less)? Montgomery suggests following these four simple steps: STEP 1: Meet weekly with clients Not only do these meetings help affirm your client’s buying decision, it also gives you the opportunity to find out if there are other products you could sell to the client. STEP 2: Make “CPR” calls Have a client who has fallen off the radar? Make a call to reintroduce yourself and try to win that business back. STEP 3: Follow up on all quotes Don’t “quote and hope.” Follow up on all proposals you’ve made recently and touch base again. STEP 4: Cold call Cold calling is not dead. Develop a list of clients you’d love to get in front of, and then devote at least 15 minutes a day calling them. To take your sales game even further, check out the Cleveland Sales Academy at cose.org/salesacademy APRIL 2016 | COSE Resource Guide | 9
How to build your business’s
FINANCIAL GAME PLAN
10 | COSE Resource Guide | APRIL 2016
Your balance sheet is trying to tell you important things about your business. Lucky for you, our experts speak balance-sheet-ese. Allow them to translate. By SHAWN A. TURNER
APRIL 2016 | COSE Resource Guide | 11
W
ith all of the day-to-day business operations entrepreneurs are faced with — product development, human resources issues, and business development to name just a few — it might be easy to lose track of a business’s balance sheet strategy. “A lot of small business owners don’t understand their business’s costs,” says Brian Alquist, president of Action Coach affiliated company 1Direction, Inc., in Brecksville. “Consequently, they’re really just focused on paying themselves with cash they have on hand at the end of the month. They confuse cash on hand with profits earned. Their monthly salary is linked to the perceived profits earned each month. This is really flawed thinking.” But operating a business requires a much more comprehensive plan than just focusing on what’s left over when the month comes to a close, experts say. It requires detailed thought around the best way to think about setting financial goals and KPIs, access to capital, accounting best practices and more.
12 | COSE Resource Guide | APRIL 2016
‘Build backwards’ One of the first things an owner needs to do is settle on what the organization’s goals are, says Michael Foss of Foss Business Solutions in Lyndhurst. “Build backwards,” he advises. “What are our current expenses? How do I want to grow? What do I need to do to achieve that?” Once those questions are answered, the business owner will begin to be able to form a clear picture of the sales (and gross profit margin) the business needs to obtain to achieve those goals. This is where understanding your cash flow comes in, says Rion Safier of Rion Safier Accounting LLC in Beachwood. For a small business, cash flow is king and the company’s budget and cash flow forecast must be adjusted at least quarterly. “There are companies that don’t have an accounting infrastructure and the business owner is just flying by the seat of their pants and using their bank balance as one
of their key drivers,” he says. “That’s not a good way of looking at it. What if your receivables are delayed? Your cash might be depleted. Only looking at the cash balance is not an indicator of the health of a company.”
Measure effectively What businesses should be paying attention to is their break-even point for revenue, costs and working capital, or the capital a business uses, or the capital a business uses in its day-to-day operations and calculated as current assets minus current liabilities, Alquist says. “That tells me how well they’re really managing the financial aspect of their business on a day-to-day basis,” he says. “If the company has some level of capital invested in the business, I would also look at the ratio of depreciation to expenses. That tells me if they are investing or reinvesting in the business.” Safier says small business owners should go right to the
ACTION ITEMS
Ready to start building your business’ financial game plan? Our expert sources recommend starting with these three steps to help set you off in the right direction. Understand where you’re going Figure out where the business needs to go and develop a crystal clear cash flow forecast to pair with that vision. Building backwards and looking at current expenses should give a good idea of the sales margins you’ll need to put up to achieve your goals. Chase profit Don’t get caught up focusing too heavily on revenue. Your profit margin needs to be top of mind. For example, you should understand what impact various changes, such as a change in pricing, has on your profit margin. Further, consider putting together a couple of different budgets. A baseline budget showing where you are today, and a more aggressive budget that shows where you’ll be if you nail all your goals. Don’t forget about yourself Small business owners spend so much time worrying about the health of their business they might forget about their own financial health. Remember to include a distribution to yourself into your budget, taking into account to leave enough to cover any tax liabilities.
You’re invited to attend the
SALES ACADEMY
Tuesday, May 17th 2016
l
8 a.m. – 4 p.m.
The NEW Center at NEOMED, Rootstown, Ohio
cose.org/salesacademy APRIL 2016 | COSE Resource Guide | 13
bottom line and base goals around profitability, Safier says. “I’d rather have a $1-million company with a 50% margin than a $5-million company with a 1% margin,” he says. “Chasing profit trumps chasing revenue.” Owners should be able to extrapolate a gross margin for anything they do and understand the impact pricing has on the bottom line, Safier says. It’s also critical, Alquist adds, to understand the lifetime return on investment that comes from investing in marketing campaigns, infrastructure, equipment and other areas. “You should be able to measure the return for these investments,” he says. Working out a budget is a key element in measuring, too, Safier says. In fact, he suggests that businesses should put together a couple of different budgets: One is a baseline budget (“This is where I’m at today”) and another, more aggressive budget (“This is where I’ll be if I see a rapid sales increase or I exceed all of my goals.”)
Paying yourself It’s not just the goals for the business the entrepreneur needs to be contemplating. The owner’s own goals and plans for his or her individual future also must be taken into account. Foss says too often owners will determine their own salary for the month based on how much cash happens to be left over. That’s the wrong way to think about your own personal financial future and it can also introduce an element of instability to the business that will damage
the business in the long run. “The distribution to the owner should be budgeted,” he says. “It should be in your cash flow forecast. How much can I afford to take?” Owners should also take into account taxes and ensure they are reserving enough to cover any potential tax liabilities. All of the tips mentioned above are meant to help an entrepreneur take a longer view of their business, and getting a handle on the ROI of everything they do, Safier says. “Certainly, every expense needs to be put under the microscope.” MYB
NEXT STEPS Access to capital is a factor, Safier says, that small business owners need to take into consideration when developing their financial plan. Visit www.cose.org/myb/lenders to view an infographic detailing what lenders are looking for from loan applicants today.
Questions about your business? Get answers from the COSE Expert Network. The COSE Expert Network features experts who: • are available to answer questions • provide 60-minute, in-person consultations • connect via email or phone to provide feedback or information • are vetted and reviewed by COSE
To get answers to your business questions or to set up a consultation with an expert, visit www.COSEexpertnetwork.org today!
14 | COSE Resource Guide | APRIL 2016
Welcome New Members 1 EDI Source
Great Lakes Growers LLC
Ohio Alliance to End Sexual Violence
ABA Insurance Services Inc.
Great Work Employment Services
Ohio Business Machines, Inc.
Adams Lynch Associates
Headen & Co., LLC
Oldcastle company
Alcon Industries, Inc.
Insurance Diversified Agency
All Around Door
J.B. Stamping, Inc.
Ashton Technology Solutions
Kenyon & Sons Metal Processing Inc.
Cleveland Building and Construction Trades Council
Magnum Energy Solutions
Cogent Communications
Metro Parking Systems, Inc.
CoverMyMeds
MKM Management Consulting
Virteom LLC
Danko Express
MorelandConnect
Visium Resources Inc.
Elite Developers
Newmark Grubb Knight Frank
Wyman-Gordon Forgings Inc.
Genesis Corp
Metis Construction Services
Phoenix Cement & Contracting LLC Premier Toyota of Amherst Primus Capital Partners Inc Summit Painting Tremont Taphouse
zippityprint.com
WORKERS’ COMPENSATION SERVICES COSE Compensation Services offers the most comprehensive program in Ohio, including: • Claims management • Legal defense
• Safety consultation • Unemployment consultation
It’s not too early to start planning for 2017 premium savings.
Request a free quote today!
www.cose.org/workerscomp APRIL 2016 | COSE Resource Guide | 15
COSE WEBINAR SERIES
7 Tools You Need in Your
LEGAL TOOLKIT
G
By SHAWN A. TURNER
rowth isn’t going to happen for your small business unless you have the right framework in place to support your operations. This includes having the right legal contracts and documents on hand to ensure your firm is protected with customers, employees, and even your co-owners. During a recent COSE WebEd webinar, Sharon Toerek, principal of intellectual property and marketing law firm Toerek Law, outlined seven important types of legal tools every small business owner needs to make sure are in their legal toolkit.
16 | COSE Resource Guide | APRIL 2016
COSE WEBINAR SERIES
CHOOSE AND DOCUMENT A LEGAL STRUCTURE
EMPLOYMENT LAW POSTINGS
First, choose the legal structure that is appropriate for your business (a sole proprietorship, partnership, or entity like a corporation or LLC). Keep in mind that if you don’t select one, you’ll automatically be considered a sole proprietor (if one owner) or a partnership (if more than one owner) for legal purposes. Then, make sure your company has the proper documentation to support it, such as bylaws, a code of regulations, or an operating agreement. These documents are important because they prove and define your legal structure and liability.
Businesses need to make available, in a place accessible to all employees, postings of certain employment laws. These include:
KEEP TRACK OF RELATIONSHIPS It’s critical to document all of a business’s relationships—both inside and outside of the company—in writing. If the business has more than one owner, do you have documents that detail how that relationship can be unwound if necessary? How are you going to value the share the departing owner holds if they are bought out? Businesses should have a buy/sell document on file that states exactly how such a situation will be handled. And don’t forget to include wording on whether a non-compete or non-solicitation promise will come into play if someone leaves the business.
n n n n n n
GOVERNMENT FILINGS REQUIRED FOR EMPLOYEES In addition to the employment law postings you have to display, don’t forget about the various filings that are required as well for each of your employees. These include: n n
HANDLING CUSTOMERS Sure, handshakes are important. But don’t enter into any deals with customers based solely on that alone. Have something in writing that spells out the conditions of your relationship with the customer. For example, if you’re a service firm, use a service agreement that indicates your fees, the services the company is agreeing to provide, when the customer will pay, along with other relevant terms.
EMPLOYMENT LAW DOCUMENTS Even the smallest company should document its employment relationships and policies in writing in either an Employee Policy Manual, an Employment Agreement, or both. Try to create these employment documents to be able to accommodate growth in the business, and review and update them periodically. Also, make sure job descriptions are up to date and consider whether the company needs additional policies to cover such issues as a zero-tolerance policy on workplace violence, discrimination and harassment, or accommodations such as employee telecommuting or employee personal device use.
EEOC Notice Wage and Hour Law Notice FMLA Requirements and policies OHSA documents Child Labor rules company polygraph policy (if applicable)
n
Reports to the IRS, state and city tax authorities on income I-9 Reports Ohio New Hire reporting
THINKING ABOUT IP Every small business has some intellectual property, including, for most, your customer list and your goodwill and brand. Do a trademark search (a federal search, especially if you conduct business online or outside of the state). A good place to start this search is with the U.S. Patent and Trademark Office’s website at www.uspto.gov. Keep in mind trademarks are classified by category, so it’s possible for a lawn care company to have the same trademark as a consulting firm. Also, for businesses that rely on freelance help, it’s critical to have a written agreement in place that indicates you own the rights of any assets created by an outside freelancer or contractor. Finally, remember to have a confidentiality policy to protect company trade secrets like customer information or proprietary products or processes – this information can only be a trade secret if it’s carefully maintained. MYB
Interested in learning more about COSE’s WebEd Series and other events? Visit www.cose.org/events
APRIL 2016 | COSE Resource Guide | 17
RESOURCES
Sales & Financial
RESOURCE DIRECTORY As a small business owner, you’re bound to run into some questions that leave you stumped. That’s what our Resource Directory is all about. In each of the four Resource Guides published by Mind Your Business each year, we will feature a Guide that focuses on a different aspect of your business. This month’s feature is all about the experts who can help answer your sales and financial questions. Visit www.cose.org/resourcedirectory to view a downloadable version of this list
SALES & BUSINESS GROWTH
Seize This Day
Business advisory services in the areas of sales, growth, structure, and leadership. Assisting small business owners with the challenges they face, helping them overcome those challenges so they can be more successful. www.seizethisday.co Diane Helbig
President diane@SeizeThisDay.co 216-534-2030
Marvin Montgomery & Associates
For more than 30 years, Marvin Montgomery has earned widespread national recognition and praise for his informative, practical and stimulating programs that reflect 18 | COSE Resource Guide | APRIL 2016
his basic philosophy: “Preparation and practice are the keys to sales success.” Marvin’s captivating presentations have assisted hundreds of organizations to meet or exceed their sales goals using his training programs. Many of Marvin’s clients have said that getting “Marvinized” has truly made a difference in their company and Marvin has become a mandatory part of company training. www.marvinmontgomery.com Marvin Montgomery
President SalesDoctor@ MarvinMontgomery.com 216-509-0281
transition strategies. www.actioncoach.com Brian Alquist
President brianalquist@ actioncoach.com 216-536-2240
Sandler Training
Sandler breaks the conventional rules that make the sales process ineffective and demeaning. We teach honest, no-nonsense sales techniques that get results while preserving the sales professional’s self-respect. www.biztraining.sandler.com Tom Scully
President tom.scully@sandler.com 440-247-2030
1 Direction Inc., ActionCOACH
Brian Alquist is the founder of 1Direction Inc., an ActionCOACH business coaching company located in Northeast Ohio. Brian specializes in professional business coaching services for small business owners in the region, and particularly those that are results-oriented and aspire to high-impact growth and business
Revenue Group Companies
They are a full service accounts receivable management firm with a national scope, established in 1994 and incorporated in the State of Ohio. As a leader in accounts receivable,
cose.org
@cosesmallbiz
RESOURCES
facebook.com/councilofsmallerenterprises
eligibility determination, call center services and background screening, they provide a competitive advantage for our clients who represent industries spanning government, healthcare, the utility sector and financial institutions. Revenue Group partners with clients of various sizes providing them with trusted business services that meet the specific needs of their operations. For two decades, Revenue Group has worked with clients to develop customized programs based on their enterprise needs. These programs, along with our experienced staff members and industry leading technology, have resulted in more profitable operations that in turn give our clients the resources to concentrate efforts on delivery of their services. www.revenuegroup.com Michael Sheehan
Vice President / Chief Operating Officer sales@revenuegroup.com 216-763-2100 ext. 2107
Outreach Promotional Solutions
Outreach Promotional Solutions provides comprehensive marketing solutions including graphic design, printing, promotional items, logo apparel, marketing consulting, website design and digital marketing services. www.outreachpromos.com Nevin Bansal
President & CEO bansal@outreachpromos.com 216-452-5319 x101
financial officer services to companies and organizations, as well as outsourced tax services to tax preparers. RSA also provides CPA services including accounting, tax and business advisory services directly to companies, organizations and individuals. Rion Safier
Owner Rion@ RionSafierAccounting.com 216-374-7717
BIG Financial & Advisory Services
Whether you are going to be starting up a new business or you have recently started a business, or you have been in business for years, BIG Financial & Advisory Services (BIG) can assist you in all facets of business, financial, operational, sales, or personnel based. Entrepreneurs have many areas to allocate their time to when starting a new business. Focusing on the sales and operations side are of primary importance. BIG can ease the burden and increase the chances of success of your start up by helping with the accounting, operational, strategic planning and tax areas of your new and existing business.
ADVISORY
Rion Safier Accounting LLC
RSA is a provider of outsourced daily bookkeeping through chief
www.badgirlventures.com Reka Barabas
The goal of Cascade Capital is to provide direct financing assistance to small Greater Akron and Northeast Ohio companies poised to grow through investment in new equipment, facilities and employees. Cascade Capital can finance up to 40% of a company’s building or equipment purchases to $5 million through its SBA 504 loan program. Cascade Capital can also provide up to $500,000 of fixed asset financing through its Ohio 166 Regional loan program. *Noteworthy*…financing programs include below-market fixed interest rates as low as 3% or less, term loans up to 20 years and 10 percent borrow down payments.” www.cascadecapital.org Bob Filipiak
Jim Bonvissuto
President jbonvissuto@bizimprove.com 440-884-1400
Bad Girl Ventures
Bad Girl Ventures (BGV) is an educational and micro-finance, non-profit organization dedicated to inspiring and supporting female entrepreneurs in key areas of their business. BGV enables bold women to start and sustain well-managed
Market Manager Northeast Ohio reka@badgirlventures.com 216-759-4575
Cascade Capital Corporation
www.bizimprove.com
PRIVATE LENDING & GRANTING ORGANIZATIONS FINANCIALS
and profitable businesses through our business education classes, guidance from mentors and coaches, and access to debt capital.
President and Executive Director filipiak@cascadecapital.org 330-379-3160
Growth Capital Corporation
Growth Capital Corp. exists solely to help Ohio companies get financing for capital expenditures and working capital needs. Typical capital expenditures financed through Growth Capital loans are for equipment purchase and facilities expansion or purchase. They also provide working capital. *Noteworthy*…Growth Capital has been the number one SBA 504 lender in Ohio for the past 9 years.
APRIL 2016 | COSE Resource Guide | 19
RESOURCES
www.growthcapitalcorp.com Juan Hernandez Business Development Director
jhernandez@ growthcapitalcorp.com 216-592-2332 ext. 202
GOVERNMENT LENDING & GRANTING
U.S. Small Business Administration, Cleveland District Office
In Fiscal Year 2015, the SBA Cleveland District Office partnered with the lending community to secure 1,900 individual loans for a total of $391,181,500. It is home to 12 Ohio Small Business Development Centers and five chapters of SCORE, a volunteer organization that provides free business counseling. In addition, the Cleveland District delivers and oversees the Agency’s 8(a), SDB, and HUBZone government contracting programs for small businesses in the area. The District serves 28 urban and rural counties in the north of Ohio: Ashtabula, Carroll, Columbiana, Cuyahoga, Defiance, Erie, Fulton, Geauga, Harrison, Henry, Huron, Jefferson, Lake, Lorain, Lucas, Mahoning, Medina, Ottawa, Portage, Sandusky, Seneca, Stark, Summit, Trumbull, Tuscarawas, Wayne, Williams, and Wood. www.sba.gov/offices/district/oh/ cleveland Gil Goldberg
District Director Gilbert.Goldberg@sba.gov 216-522-4182
Cuyahoga County Department of Development
The County works with businesses of all sizes and targeted industries, encouraging growth and job 20 | COSE Resource Guide | APRIL 2016
creation. We have over 15 lending programs, and additional initiatives and partnerships. We accomplish job creation, retention, and new attraction by offering borrowers and projects a broad array of gap-financing loan products at favorable, below-market rates and terms. Subordinated low interest loans are made available to small, medium & large businesses for expansion and acquisition, to earlystage companies doing innovation and accelerated growth, and to developers engaged in major commercial property developments or land reutilizations & brownfield clean-ups. Certain programs are done with specialized partner lenders.. JumpStart, Inc. and MAGNET each partner with DOD on hightechnology startups, growth and product innovation. The National Development Council oversees the Grow Cuyahoga County Fund for small- to mid-sized businesses with SBA–guaranteed permanent working capital lending. The SBA works with DOD on targeted, municipally-based small business lending, and the Economic & Community Development Institute (ECDI) manages DOD’s microenterprise loan program. www.development. cuyahogacounty.us Mike May
Economic Development Administrator mmay@cuyahogacounty.us 216-348-4847
City of Akron Office of Economic Development
The Mayor’s Office of Economic Development is a conduit to facilitate economic growth within the City of Akron, including business attraction, business retention and expansion, industrial park development, joint economic development districts, and
downtown redevelopment activities. Akron is the “soft-landing” portal to the North America market place. www.akronohio.gov/cms/ economic_development Samuel D. DeShazior
Deputy Mayor for Economic Development SDeShazior@AkronOhio.gov 330-375-2133
Development Finance Authority of Summit County
The DFA of Summit County specializes in fixed-rate and conduit bond financing as well as tax credit financing for industrial, commercial, mixed-use, public and private nonprofit projects. Our services cover the 18-county Northeast Ohio region. www.developmentfinance authority.org Chris Burnham
President chris.burnham@ developmentfinance authority.org 330-762-4776
Medina County Economic Development Corporation
Strategically positioned midway between Cleveland and Akron, Medina County makes the most of its historic industrial and agricultural roots, integrating worldwide operations with thriving independent establishments. The Medina County Economic Development Corporation offers traditional economic development tools, including financing and property tax abatements. Expanding businesses also benefit from a recent major public infrastructure commitment: a 151-mile fiber optic ring to meet industry’s increasing need for abundant broadband access. To bring your business to Medina County, contact them today for
cose.org
@cosesmallbiz
more information on how they can help you be successful. www.medinacounty.org Bethany Dentler
Executive Director bdentler@medinacounty.org 330-722-9215
Lake County Ohio Port and Economic Development Authority
The Lake County Ohio Port and Economic Development Authority is unique in the services it provides since Ohio law makes port authorities very effective economic development tools. Because port authorities themselves are tax exempt, they can provide development services at a lower cost than private institutions. The Lake County Port & ED Authority can assist would-be entrepreneurs to large corporations, small non-profits to large institutions and communities. www.lcport.org Timothy A. Cahill
Director of Public Finance and Controller tcahill@lcport.org 440 357 2290 ext. 234
Geauga County Department of Community and Economic Development The Community and Economic Development Department develops and implements strategies and programs to retain and expand county businesses and increase jobs.
Business Services and Resources Low interest loan funds to county businesses n Data base of available industrial building sites n Industrial Revenue Bonds (IRB) capability in conjunction with the Geauga CIC (Community Improvement Corporation) n Community Reinvestment Area (CRA) tax incentive program n Assistance locating Ohio n
RESOURCES
facebook.com/councilofsmallerenterprises
Incentive Programs such as • Job creation tax incentive programs • Manufacturing Equipment Tax Credit • State of Ohio Economic Development Financing
Average loan size: $500,000$5 million www.clevelanddevelopment advisors.com Steve Luca
Managing Vice President sluca@gcpartnership.com 216-592-2245
www.co.geauga.oh.us Anita Stocker
Director anitastocker@geaugaced.com 440-279-1792
Kelly Conrad
Assistant Program Administrator kbelconis@geaugaced.com 440-279-1791
Portage Development Board (PBD)
The Portage Development Board helps businesses to locate, stay, and grow in Portage County by connecting them to resources such as land and buildings, financing, tax incentives, workforce, and entrepreneurial services. The PDB also administers the Portage County Port Authority which can provide conduit financing for qualified projects in Portage County.
Cuyahoga County Grow Cuyahoga County Fund
The Grow Cuyahoga County Fund is a unique economic development partnership between the City of Cleveland, Cuyahoga County and the Grow America Fund, Inc. The fund provides SBA guaranteed loans to businesses for working capital, machinery and equipment, acquisition of land and buildings, construction, renovation and tenant improvements. These loans can offer longer terms, lower downpayments, and lower interest rates. Assistance: $100,000 to $2 million www.development. cuyahogacounty.us/en-US/ grow-cuyahoga-county.aspx Bob Flauto
www.portagedevbd.org Brad Ehrhart
President behrhart@portagedevbd.org 330-297-3470
COMMON FINANCING RESOURCES & INCENTIVES FOR NORTHEAST OHIO SMALL BUSINESSES
Cleveland Development Advisors
Cleveland Development Advisors, an affiliate of the Greater Cleveland Partnership, is a real estate and business development finance organization that invests privatelyfunded capital and New Markets Tax Credit allocations into projects of scale throughout Cleveland.
Senior Development Finance Analyst bflauto@cuyahogacounty.us 216-698-2898
Economic and Community Development Institute
ECDI is an Ohio-based 501(c)(3) non-profit economic development organization founded in 2004. As the third largest U.S. SBA intermediary micro-lender, ECDI provides technical assistance and micro-loans for small business and entrepreneurs that may not qualify for traditional financing. Loans range from $500 - $350,000 for start-up, newly-established, or growing microenterprises. In addition to lending, ECDI helps manage the Cleveland Culinary Launch Kitchen, which is a food APRIL 2016 | COSE Resource Guide | 21
RESOURCES
based business incubator located in the Cleveland Health & Tech Corridor. ECDI also provides a variety of courses through its Women’s Business Center and in-house training program. Courses are designed to help clients acquire the knowledge and tools they need to succeed. Assistance: Up to $350,000 www.ecdi.org Vicky Haddad
Relationship Manager vhaddad@ecdi.org 216-912-5657
Ohio Development Services Agency Innovation Ohio Loan Fund
This program assists existing Ohio companies in developing nextgeneration products and services within these sectors: advanced materials; instruments, controls and electronics; power and propulsion; biosciences; and information technology. Industrial, commercial, distribution or research activities are eligible. Loans can be in the range of $500,000 to $1.5 million, terms will typically range from five to seven years, and interest will be fixed at closing. The Fund can finance up to 75 percent of the project costs; at least 25 percent must come as a cash contribution from the applicant. Allowable costs are those that can be capitalized under applicable generally accepted accounting principles (GAAP). Evaluation criteria will include: number of high-value jobs created; level of risk; ability to attract additional, third-party capital; identification of a plan to fill a market need; and ability to repay, including the existence of customer orders. Additional Details: Fees are applicable, including a ten percent Participation Fee in lieu of the State’s ability to take an equity position. A first- or shared first-priority lien position and other potential credit 22 | COSE Resource Guide | APRIL 2016
enhancements will be required. Financing is take-out financing, and will be disbursed when the project is complete. Although not numerically specified, job creation is an assumed part of this program. www.jobs-ohio.com/images/ Innovation_Ohio_Loan_Fund.pdf
JobsOhio Revitalization Program
Focused on helping clean up and redevelop sites in preparation for end-users that support job creation, this Program is comprised of both loans and grants. Loan maximums are $5 million, can be up to 75% of eligible costs, with 15-year terms at fixed rates. Gap Grants of up to $1 million may be coupled with loans if necessary to achieve project feasibility. Asbestos and Lead Paint Abatement Grants are available for up to $500,000. Additional Details: An end user must be confirmed; priority is placed on projects that support near-term job creation and match JO targeted industry sectors. Eligible costs include demolition, environmental remediation, building renovation, site preparation and infrastructure. A “No Further Action” letter must be achieved in cases of remediation. www.jobs-ohio.com/images/ ReviteLoanGrant_Consolidated.pdf
JobsOhio Workforce Grant
Grants are provided to improve worker skills and abilities to support job creation where there is a fixedasset investment commitment. JobsOhio may also consider projects that improve operational efficiencies, expand production or retain jobs. The Grant may cover up to 50 percent of eligible costs, or 75 percent of eligible costs provided by an Ohio public training provider. Additional Details: Companies must be in a JobsOhio targeted industry or business function. Retail and other population-
driven businesses are ineligible, as are costs for college degrees, consumables, trainee wages, travel time and some other items. The Grant is reimbursement-based. www.jobs-ohio.com/images/ JobsOhio_Workforce_Grant.pdf
JobsOhio Growth Fund Loan
JobsOhio has a loan program for companies in certain, targeted industries to partially finance fixed assets. Loan sizes range from $500,000 to $5 million. For more information on these or other business loan programs, contact Vince Adamus. www.jobs-ohio.com/images/ JobsOhio_Growth_Fund.pdf Vince Adamus
Vice President, Real Estate and Business Development Greater Cleveland Partnership vadamus@ gcpartnership.com 216-592-2258
Port of Cleveland Northeast Ohio Development Fund
The NMTC Program spurs investment in businesses and real estate projects in lowincome communities. Investors who participate receive a credit against their Federal income taxes in exchange for making equity investments in designated communities through specialized financial institutions called Community Development Entities (CDEs). The Northeast Ohio Development Fund is one such CDE. Currently this would benefit a project with about $.20 - $.23 on the dollar of funds that act like equity. Assistance: Project size usually must be over $5 million www.portofcleveland.com/ development-finance/new-markettax-credits
cose.org
@cosesmallbiz
RESOURCES
facebook.com/councilofsmallerenterprises
Port of Cleveland Port Authority Fixed Rate Financing Program
Gives smaller organizations the ability to borrow money in the capital market at investment grade rates for fixed assets. The program benefits larger businesses that would otherwise find an investment grade rating costly and difficult to maintain. Assistance: $1.5 million to $9 million www.portofcleveland.com/ development-finance/financingfor-manufacturers/
Port of Cleveland Port Authority Infrastructure Financing Program
Gives smaller organizations the ability to borrow money in the capital market at investment grade rates for
fixed assets. The program benefits larger businesses that would otherwise find an investment grade rating costly and difficult to maintain. Assistance: $1.5 million to $9 million
Director, Development Finance and Inclusion garth.woodson@portofcleveland.com 216-377-1351
40% of eligible project costs up to a $15,000 rebate. There is a set amount of rebate dollars assigned to the Storefront Renovation Program each year. Funding awards are committed to projects based on when applicants complete the design and bidding phases of the program. The Program also works in partnership with Dollar Bank to provide credit worthy applicants low interest/long amortization schedule loans to be used along with the rebate to finance the storefront renovation.
City of Cleveland Storefront Renovation Program
www.city.cleveland.oh.us/ CityofCleveland/Home/ Government/CityAgencies/ CommunityDevelopment/ StorefrontRenovation
www.portofcleveland.com/ development-finance/financingfor-manufacturers Garth Woodson
Financial assistance available in Storefront Program Target Areas: 40% of eligible project costs up to a $25,000 rebate; In Non-Target Areas:
Terri Sandy
Manager, Storefront Renovation Program tsandy@city.cleveland.oh.us 216-664-2869 MYB
Want your company or organization to be featured in a future Mind Your Business Resource Guide that is distributed to thousands of small businesses across Northeast Ohio? Here’s your chance! We’re looking for companies in the information technology, human resources, strategic planning and consulting, and more. Make the case for your business or organization to COSE’s Business Resource Specialist Sara Adams at sadams@gcpartnership.com.
A SOLUTION FOR EVERY BUDGET Unique advertising solutions
In addition to advertising, Mind Your Business offers more ways to drive awareness of your brand via native advertising and content sponsorship opportunities. Let us help you determine the right fit for your company. For more information, contact Dan Roman Director of Corporate Relations 216-592-2364 droman@cose.org
Mind Busin Your ess TI PS
, TR EN
DS,
ID EA
S AN D
INSI
G HTS
FO R
SM AL
L BU SI
N ES
S OW N
ERS
MARC
WWW H/APRIL 20 16 .COS E.OR G
THE
B
IG CA Lear n wha TCH t it ta smal kes fo l busi ra ness big cl to ca ients tch [5] TOOT YOUR
No on e’s go HOR in for yo N u. Sta g to toot it rt your PR ca planning mpa ign [1 2]
FOCU S ON BUSIN YO
UR ES How to clar S ify yo prop ur osition , your value and what audien your ce is all busine abou ss t [14] 8 WIN NING
Pract HABIT ice th e succ S essful traits entre shar pren e [18] eurs
WHO ARE YOU? SERIO
U
SLY. If you WHO do DO Y Learn n’t know OU T , yo in yo H what ur m you n ur custo INK YOU arke mers e ARE? e d tplac won e and to do to defin ’t either. in th e you e eye rself s of your custo mers .
APRIL 2016 | COSE Resource Guide | 23
Strategy STRATEGIC PLANNING COURSE 2016 - 2017 Building successful companies through strategic thinking, vision and execution Classes begin September 24, 2016.
Learn more at www.cose.org/spc