Cleveland Edition 2020—U.S. Small Business…

Small Business resource guide CLEVELAND NORTHERN OHIO EDITION 2020

START GROW EXPAND YOUR BUSINESS

1

2

CONTENTS

Cleveland/Northern Ohio Edition 2020

Local Business Assistance 8 National Success Story Jerado and Joyce Reynolds know their local landscape for entrepreneurship support. 11 Local SBA Resource Partners 13 Your Advocates 14 How to Start a Business 18 Workforce Recruitment 19 Emerging Leaders 20 Entrepreneurial Resources 22 Opportunities for Veterans 24 Write Your Business Plan

Funding Programs

26 National Success Story Jennifer and Jeff Herbert’s

meadery has expanded into a multimillion dollar enterprise thanks to SBA assistance.

29 SBA Lenders 33 Need Financing? 34 Go Global with

International Trade 36 R&D Opportunities for High Growth Startups 38 National Success Story

Cheeseburger Baby owner Stephanie Vitori persevered through a financial storm and a natural disaster.

42 Surety Bonds

Contracting

44 National Success Story Jennifer Rahn steers the course for Admiral Engineering, succeeding as a small business subcontractor. 47 Government Contracting 48 SBA Certification Programs 49 Woman-Owned Small Business Certification

ON THE COVER Michael and Hilda Grossmann, courtesy of the SBA; Chuck Gotberg, courtesy of American Manufacturing; Arthur and Sandra Johnson, courtesy of the SBA; Julie Robbins & Jamie Stillman, courtesy of the SBA, by Karen Ollis; Nikolas Williams, courtesy of Workshops for Warriors

3

U.S. SMALL BUSINESS ADMINISTRATION A MESSAGE FROM THE ADMINISTRATOR

I t is my honor to serve as Administrator of the U.S. Small Business Administration, leading a dedicated team of talented individuals across America who are focused on helping entrepreneurs start, grow, and expand their small businesses. The SBA is here to support the prosperity and longevity of our nation’s small businesses with timely and innovative resources to help them thrive in today’s economy. America’s entrepreneurs are innovators, risk-takers, and the catalyst for employment opportunities within their communities, and they are what makes our economy so strong and dynamic. As we enter a new decade of possibilities, small businesses have a remarkable opportunity to continue building upon the success we’ve seen in our economy over the last three years. As the voice for America’s 30 million small businesses, I am eager to advocate on entrepreneurs’ behalf as a member of the President’s Cabinet. Whether it’s seeking access to capital, government contracting opportunities, business mentoring, or assistance with disaster recovery, the SBA is ready and determined to help our customers succeed. The SBA remains committed to continuing our support of America’s entrepreneurs and making an even bigger impact in communities across the country. In particular, the SBA is focused on elevating female entrepreneurs and our military veterans, expanding access to SBA resources

among entrepreneurs in disadvantaged communities, and continuing to prioritize disaster relief. Within this resource guide, you will learn more about the tremendous tools the SBA provides small businesses through our 68 District Offices and numerous Resource Partners, such as our Small Business Development Centers, our SCORE mentoring network, Women’s Business Centers, and Veterans Business Outreach Centers. Featured in this guide are some of the remarkable success stories of entrepreneurs who partnered with the SBA to take their businesses to the next level. The SBA encourages you to also utilize these resources to help strengthen and meet your business goals. Sincerely,

Jovita Carranza SBA Administrator

WE MAKE SMALL BUSINESS OUR BUSINESS. START • GROW • EXPAND • RECOVER

4

5

PUBLISHED BY New South Media, Inc. 304.413.0104 | newsouthmedia.com

PUBLISHER Nikki Bowman, nikki@newsouthmediainc.com

DESIGNER Hayley Richard, hayley@newsouthmediainc.com

MANAGING EDITOR Holly Leleux-Thubron, holly@newsouthmediainc.com

ASSOCIATE EDITORS Pam Kasey, pam@newsouthmediainc.com

OPERATIONS MANAGER Meggan Hoyman, info@newsouthmediainc.com

ADVERTISING SALES DIRECTOR Heather Mills, heather@newsouthmediainc.com

ADVERTISING SALES Kelley McGinnis, Bryson Taylor sba@newsouthmediainc.com

Copyright: New South Media, Inc. Reproduction in part or whole is strictly prohib- ited without the express written permission of the publisher. © 2019 NEW SOUTH MEDIA, INC., ALL RIGHTS RESERVED TheU.S. Small Business Administration’s Office of Marketing &Customer Service directs the publication of the Small Business Resource Guide under SBA Contract #SBAHQ- 17-C-0018. SBA publication summer 2019 national edition #mcs-0089.

WRITER/EDITOR Becky Bosshart (202) 205-6677 rebecca.bosshart@sba.gov DIRECTOR OF MARKETING Paula Panissidi Tavares paula.tavares@sba.gov

The SBA’s participation in this publication is not an endorsement of the views, opinions, products or services of the contractor or any advertiser or other participant appearing here. All SBA programs and services are extended to the public on a nondis- criminatory basis. Directory listings do not constitute or imply an endorsement by the SBA of any opinions, products, or services of any private individual or entity.

Printed in the United States of America.

While every reasonable effort has been made to ensure that the information con- tained here is accurate as of the date of publication, the information is subject to change without notice. The contractor that publishes this guide, the federal govern- ment, or agents thereof shall not be held liable for any damages arising from the use of or reliance on the information contained in this publication.

6

District Director Letter W elcome to the 2020 edition of the U.S. Small Business Administration’s Cleveland-Northern Ohio Small Business Resource Guide. This guide gives an overview of SBA programs and services available to Ohioans. The SBA helps make your American dream of small business ownership a reality. The SBA is the only federal agency dedicated to helping our 30 million small businesses start, grow, expand, or recover after a disaster. The SBA Cleveland District Office works with an extensive network of business advisers and lenders to help small businesses at every stage of development. Last year, our district office contributed to northern Ohio’s economy by helping 1,480 small businesses access capital. SBA-backed loans totaled about $396 million. The district also saw strong entrepreneurship in 2019, with 392 northern Ohioans starting up small businesses. Similar success was seen in government contracting. Disadvantaged small business certified as 8(a) were awarded more than 330 federal contracts, totaling about $26 million. The Cleveland district office also helped or supported 955 small businesses in securing federal contracts. We’re proud that two SBA 2019 National Small Business Week winners call northern Ohio home. EarthQuaker Devices of Akron, which sells musical equipment in over 47 countries, won the National Exporter of the Year award. The Ohio Small Business Development Center at Youngstown State University won the National SBDC Service, Excellence and Innovation award. Do you want to succeed in business? Are you looking for a business adviser for free or low cost? The SBA is your first stop for small business success. SBA Cleveland District Office 1350 Euclid Ave., suite 211 Cleveland, OH 44115 (216) 522-4180 sba.gov/oh/cleveland @SBA_Cleveland

District Director Gil Goldberg (216) 522-4182 gilbert.goldberg@sba.gov Deputy District Director Jim Donato (216) 522-4180 x213 james.donato@sba.gov Public Affairs Specialist Patsy Welsh (216) 522-4172 patricia.welsh@sba.gov Business Opportunity Specialist/ Administrative Officer Vanessa Behrend (216) 522-4180 x201 vanessa.behrend@sba.gov Economic Development Specialist/ Veteran’s Business Development Specialist Niah Duncan (216) 522-4180 x247 niah.duncan@sba.gov Lead Lender Relations Specialist Raymond Graves (216) 522-4180 x228 raymond.graves@sba.gov Lender Relations Specialists Timothy Ensch (216) 522-4180 x213 timothy.ensch@sba.gov Mark Hansel (216) 522-4180 x230 mark.hansel@sba.gov Thomas Sangrik (216) 522-4180 x214 thomas.sangrik@sba.gov

Sincerely, Gil Goldberg District Director

7

LOCAL BUSINESS ASSISTANCE

Michael & Hilda Grossmann Owners, Castle Aviation Inc. Akron & Canton, OH How We Did It

8

W

LOCAL BUSINESS ASSISTANCE

hen it came time for Michael and Hilda Grossmann to grow their own small business, they turned to the SBA. Castle Aviation, which started out in medical transport, has grown from a home office to a new upgraded hangar at the Akron/ Canton airport. They also received SBA disaster assistance financing after the 9/11 recession crippled many airline companies.

Challenge e both wanted the opportunity to work for ourselves and also together on our entrepreneurial dream, Castle Aviation gave us that opportunity. Aviation can be a volatile, seasonal industry, because of that we were unable to qualify for traditional financing. Over the years we’ve qualified for SBA-backed loans in order to purchase airplanes and hangars. We were spread across five different hangars at the airport and it just wasn’t the most efficient way to operate. We needed to consolidate to one large hangar and that required a significant capital investment. Solution The SBA guarantees loans made by lending institutions to small businesses that would not otherwise be able to obtain financing. Our small business qualified for an SBA-backed 504 Certified Development Company loan through Consumers National Bank and Cascade Capital Certified Development Corp. This allowed us to build a new hangar with a long-term, fixed-rate mortgage. Our upgraded hangar includes office space, passenger terminal, and storage space for equipment. Benefit We will be able to continue to grow under one roof, which is more efficient for our small business. We’ve become job creators, employing over 50 in Summit County; we’re positioned to be a force for economic growth in the Akron/Canton area for years to come. One of our great business interests is investing in workforce development. We’ve created in-house programs to train pilots, mechanics, and dispatchers, as well as pilots who operate our largest airplanes. Develop your people and invest in them and your business will soar. We’ve become job creators, employing over 50 in Summit County; we’re positioned to be a force for economic growth in the Akron/Canton area for years to come.” Michael & Hilda Grossmann Castle Aviation Inc.

9

LOCAL BUSINESS ASSISTANCE

SBA Resource Partners No matter your industry, location, or experience, if you have a dream, the SBA is here to help you achieve it. Our SBA Resource Partners offer mentoring, counseling, and training to help you startup and thrive at all stages of the business life cycle. These independent organizations operating across the United States and U.S. territories are funded through SBA cooperative agreements or grants.

SMALL BUSINESS DEVELOPMENT CENTERS

950 Small Business Development Centers + 20 Veterans Business Outreach Centers + 100 Women’s Business Centers + 300 SCORE chapters +

Achieve your dream of business ownership and remain competitive in an ever-changing global economy with assistance from your local SBDC. Access free counseling and free or low- cost training on topics like regulatory compliance, technology development, and international trade. Find an SBDC adviser at sba.gov/sbdc .

SCORE

Join the ranks of other business owners who have experienced higher revenues and increased growth thanks to SCORE, the nation’s largest network of volunteer business mentors. Experienced executives share real-world knowledge to fit your busy schedule. SCOREmentors are available for free as often as you need, in person, via email or over video chat. Find amentor at sba.gov/score .

WOMEN’S BUSINESS CENTERS

Women entrepreneurs receive essential business counseling and training from this national network of community-based centers. Each center tailors its services to help you navigate the challenges women often face when starting or growing a business. To learn about SBA resources for women visit sba.gov/women .

VETERANS BUSINESS OUTREACH CENTERS

Veteran and military entrepreneurs receive business training, counseling, and referrals to other SBA Resource Partners at a Veterans Business Outreach Center, sba.gov/vboc . Receive procurement guidance to better compete for government contracts. VBOCs also serve active duty service members, National Guard or Reserve members, veterans of any era, and military spouses.

10

LOCAL BUSINESS ASSISTANCE

SBA’s Resource Partners are independent organizations funded through SBA cooperative agreements or grants. Our Local SBA Resource Partners

SCORE Contact your closest SCORE office first for an appointment. Akron Chapter 175 S. Main St., suite 204 (330) 379-3163 akron.score.org Canton Chapter Conference Center Kent State 6000 Frank Ave. NW (330) 244-3280 canton.score.org Cleveland Chapter 1350 Euclid Ave., suite 216 (216) 522-4194 cleveland.score.org Northwest Ohio Chapter 2200 Jefferson Ave., first floor Toledo (419) 259-7598 northwestohio.score.org Youngstown Chapter YSU Williamson College of Business 101 W. Rayen Ave. (330) 941-2948 youngstown.score.org Women’s Business

Center WBC Cleveland-Akron Director Nicole Liatos 7000 Euclid Ave., suite 203 Cleveland (216) 912-5655

Arthur and Sandra Johnson, owners of 21 Short Stop in Georgia, received assistance from their local Small Business Development Center and SCORE chapter.

11

LOCAL BUSINESS ASSISTANCE

Small Business Development Centers AKRON

ELYRIA Ohio SBDC at Lorain County

NORTH CANTON Ohio SBDC at Kent State University-Stark

Ohio SBDC at Summit Medina Business Alliance & at Kent State University

Community College 151 Innovation Drive-DEC (440) 366-4370

Conference Center 6000 Frank Ave. NW (330) 244-3290

Bounce Innovation Hub 526 S. Main St., suite 601 (330) 375-2111

FREMONT Ohio SBDC at Terra Community College 2830 Napoleon Road (419) 559-2210 KIRTLAND Ohio SBDC at Lakeland Community College 7700 Clocktower Drive (440) 525-7706 NEW PHILADELPHIA Ohio SBDC at Kent State University-Tuscarawas Tolloty Incubator 1776 Tech Park Drive NE, suite 103 (330) 308-7479

TOLEDO Ohio SBDC at Toledo Chamber of Commerce 300 Madison Ave., suite 200 (419) 243-8191 YOUNGSTOWN Ohio SBDC at Youngstown State University 1 University Plaza (330) 941-2140

CLEVELAND Ohio SBDC at Cleveland State University Cleveland Heights Public Library 2430 Lee Road, second floor (216) 321-1633 Ohio SBDC at the Hispanic Business Center

2511 Clark Ave. (216) 281-4422 Ohio SBDC at the Urban League of Greater Cleveland 2930 Prospect Ave. (216) 812-3162

Veterans Business Outreach Center VetBiz Central Executive Director Matt Sherwood RTC 3118 1401 E. Court St. Flint, MI (810) 767-8387 vetbizcentral.org

O'Connor Belting, a Delaware family-owned business, expanded with the help of an SBA-guaranteed 7(a) loan.

12

LOCAL BUSINESS ASSISTANCE

Your Advocates The SBA offices of advocacy and ombudsman are independent voices for small business within the federal government.

To report how a proposed federal regulation could unfairly affect you, find your regional SBA advocate at sba.gov/advocacy . To submit a comment about how your business has been hurt by an existing regulation, visit sba.gov/ ombudsman/comments .

The SBA’s Office of Advocacy also independently represents small business and advances its concerns before Congress, the White House, federal agencies, federal courts, and state policy makers. Ombudsman Entrepreneurs who have an issue with an existing federal regulation or policy can receive assistance from the SBA’s national ombudsman. The ombudsman’s office can help you: » resolve regulatory disputes with federal agencies » reduce unfair penalties and fines » seek remedies when rules are inconsistently applied » recover payment for services done by government contractors

Advocacy When you need a voice within the federal government for your interests as a small business owner, the SBA’s regional advocates are here to assist. The advocates analyze the effects of proposed regulations and consider alternatives that minimize the economic burden on small businesses, governmental jurisdictions, and nonprofits. Find your regional advocate at sba.gov/advocacy . Your advocate helps with these small business issues: » if your business could be negatively affected by regulations proposed by the government » if you have contracting issues with a federal agency » when you need economic and small business statistics

Make your voice heard by participating in a Regional Regulatory Enforcement Fairness Roundtable or a public hearing hosted by the SBA’s national ombudsman. These events are posted periodically on the ombudsman website, sba.gov/ombudsman . To submit a comment or complaint through the online form, visit sba.gov/ ombudsman/comments . Your concerns will be directed to the appropriate federal agency for review. The SBA will collaborate with you and the agency to help resolve the issue.

13

LOCAL BUSINESS ASSISTANCE

HOW THE SBA HELPED ME SUCCEED When theGreat Recessionadverselyaffected theAmericanauto industry, ChuckGotberg lost somanyorders, hewas forced to reduce staffsignificantly. AnSBA-backed loan for $1.2millionhelpedToledo-basedAmerican Manufacturingget back in thebusiness of supplyingour auto industry. As the economy stabilized, orders for automotive material handlingequipment tookoff. Chuck refinanceddebt andgainedworkingcapital tobuildbackup toaworkforceof 125. Chuck nowinvests inworkforcedevelopment and modernization, suchas roboticwelders. To keephis small business agile in thedigital era, he recruits traineesonsocialmedia platforms, bringing thenext generation into Americanmanufacturing. Chuck regularly contributes insight as a small manufacturer to the semi-annual SBA Cleveland and Federal Reserve Bank manufacturers’ roundtable. If you are a manufacturer who would like to discuss economic trends and network with other entrepreneurs, contact gilbert. goldberg@sba.gov.

Thinking of starting a business? Here are the nuts & bolts. How to Start a Business in Northern Ohio

The Startup Logistics Even if you’re running a home-based business, you will have to comply with many local, state, and federal regulations. Do not ignore regulatory details. You may avoid some red tape in the beginning, but your lack of compliance could become an obstacle as your business grows. Taking the time to research regulations is as important as knowing your market. Being out of compliance could leave you unprotected legally, lead to expensive penalties, and jeopardize your business. Market Research View consumer and business data for your area using the Census Business Builder: Small Business Edition, https://cbb.census. gov/sbe . Filter your search by business type and location to view data on your potential customers, including consumer spending, and a summary of existing businesses, available as a map and a report.

Business License & Zoning Licenses are typically administered by a variety of state and local departments. It is important to consider zoning regulations when choosing a site for your business. Contact the local business license office where you plan to locate your business. You may not be permitted to conduct business out of your home or engage in industrial activity in a retail district. Name Registration Register your business name with the county clerk where your business is located. If you’re a corporation, also register with the state. » Ohio Secretary of State 22 N. Fourth St., 16th floor Columbus (614) 466-2655 sos.state.oh.us

14

LOCAL BUSINESS ASSISTANCE

An O’Fallon Casting Inc. employee at work in O’Fallon, MO. General Manager Vince Gimeno grew his business thanks to the Small Business Innovation Research Program.

» State Taxes Ohio Department of Taxation 4485 Northland Ridge Blvd. Columbus (800) 697-0440 tax.ohio.gov Social Security

Taxes As a business owner, you should know your federal tax

responsibilities and make business decisions to comply with certain tax requirements. The IRS Small Business and Self- Employed Tax Center, irs.gov/businesses/small-businesses- self-employed , includes information on paying and filing income tax and finding an Employer ID Number. As the IRS continues to implement some of the Tax Cuts and Jobs Act provisions, your tax obligations may change. For the latest tax reform updates that affect your bottom line, visit irs.gov/tax-reform . » IRS Tax Assistance Centers Akron 2 S. Main St. (330) 319-9800 Canton 301 McKinley Ave. SW (330) 588-4417 Cleveland 1240 E. Ninth St. (216) 415-3442 Toledo Four Seagate

If you have any employees, including officers of a corporation but not the sole proprietor or partners, you must make periodic payments, and/or file quarterly reports about payroll taxes and other mandatory deductions. You can contact the IRS or the Social Security Administration for information, assistance, and forms, at (800) 772-1213 or visit socialsecurity.gov/employer . You can file W-2s online or verify job seekers through the Social Security Number Verification Service. Employment Eligibility Verification The Federal Immigration Reform and Control Act of 1986 requires employers to verify employment eligibility of new employees. The law obligates an employer to process Employment Eligibility Verification Form I-9. The U.S. Citizenship and Immigration Service offers information and assistance through uscis.gov/i- 9-central . For forms, see uscis.gov/forms . For the employer hotline call (888) 464-4218 or email I-9central@dhs.gov. E-Verify is the quickest way for employers to determine the employment eligibility of new hires by verifying the Social Security number and employment eligibility information reported on Form I-9. Visit e-verify.gov, call (888) 464-4218 or email e-verify@dhs.gov.

433 N. Summit (419) 213-5165 Youngstown 10 E. Commerce St. (330) 746-0006

15

LOCAL BUSINESS ASSISTANCE

Health & Safety All businesses with employees are required to comply with state and federal regulations regarding the protection of employees, visit employer.gov and dol.gov . The Occupational Safety and Health Administration provides information on the specific health and safety standards used by the U.S. Department of Labor. Call (800) 321-6742 or visit osha.gov . » US Dept. of Labor

Wage & Hour Division Federal Office Building 1240 E. Ninth St., room 817 Cleveland (216) 357-5400

» OSHA Cleveland area Essex Place 6393 Oak Tree Blvd., suite 203

Independence (216) 447-4194 » OSHA Toledo area

420 Madison Ave., suite 600 Toledo (419) 259-7542 » Ohio Bureau of Workers’ Compensation 30 W. Spring St. Columbus (800) 644-6292 info.bwc.ohio.gov » Ohio Department of Commerce Division of Industrial Compliance & Labor 6606 Tussing Road

Kari Weigel provides educational services to rural communities through her Sylvan Learning Center in Fargo, ND, which she expanded with the help of SBA-backed financing.

» Environmental Protection Agency Small Business Division epa.gov/resources-small-businesses Accessibility & ADA Compliance For assistance with the Americans with Disabilities Act, call the ADA center at (800) 949-4232 or the Department of Justice at (800) 514-0301. Direct questions about accessible design and the ADA standards to the U.S. Access Board at (800) 872-2253, TTY (800) 993-2822, ta@access-board.gov or visit access-board.gov . Child Support Employers are essential to the success of the child support program and collect 75% of support nationwide through payroll deductions. You’re required to report all new and rehired employees to the State Directory of New Hires. If you have employees in two or more states, you may register with the Department of Health and Human Services to report all your employees to one state. Find electronic income withholding orders and the Child Support Portal, which can be used to report information to nearly all child support agencies, at acf.hhs.gov/programs/css/employers . Send questions to employerservices@acf.hhs.gov. » Ohio Department of Job and Family Services Office of Child Support (800) 686-1556 jfs.ohio.gov

Reynoldsburg (614) 644-2223 com.ohio.gov Employee Insurance

Check your state laws to see if you are required to provide unemployment or workers’ compensation insurance for your employees. For health insurance options, call the Small Business Health Options Program at (800) 706-7893 or visit healthcare. gov/small-businesses/employers . Association Health Plans allow small businesses, including self-employed workers, to band together by geography or industry to obtain healthcare coverage as if they were a single large employer. For information, visit dol.gov/general/topic/ association-health-plans . Environmental Regulations State assistance is available for small businesses that must comply with environmental regulations under the Clean Air Act. State Small Business Environmental Assistance programs provide free and confidential assistance to help small business owners understand and comply with environmental regulations and permitting requirements. These state programs can help businesses reduce emissions at the source, often reducing regulatory burden and saving you money. To learn more about these free services visit nationalsbeap.org/states/list .

16

LOCAL BUSINESS ASSISTANCE

Youngstown/Warren region 11 Central Square, suite 1600 regionalchamber.com Economic Development Ohio Development Services Agency 77 S. High St., 29th floor Columbus (800) 848-1300 development.ohio.gov SBA County/Municipal Initiative Cuyahoga County business owners can receive technical assistance, SBA-backed financing, and a performance grant from participating cities using the Municipal Small Business Initiative program. Participating cities include Cleveland, Shaker Heights, Maple Heights, Cleveland Heights, Lakewood, and Fairview Park. The performance grant acts as an equity injection to help the business owner get approved for the SBA-backed loan. The grant is made as a standby loan forgiven over time as the business achieves its employment creation target. For information contact SBA District Director Gil Goldberg at gilbert.goldberg@sba.gov or Lead Lender Relations Specialist Raymond Graves, raymond. graves@sba.gov. Export Assistance

Intellectual Property Patents, trademarks, and copyrights are types of intellectual property that serve to protect creations and innovations. For information and resources about U.S. patents and federally registered trademarks consult uspto.gov , call (800) 786-9199 or visit your nearest office in Elijah J. McCoy Midwest Regional Office in Detroit, Michigan, uspto.gov/detroit . For inventor entrepreneur resources visit uspto.gov/inventors . There are three types of patents: • Utility patents may be granted to anyone who invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement. • Design patents may be granted to anyone who invents a new, original, and ornamental design for a manufactured article. • Plant patents may be granted to anyone who invents or discovers and asexually reproduces any distinct and new variety of plant, other than a tuber propagated plant or a plant found in an uncultivated state. A trademark or service mark includes any word, name, symbol, device, or any combination, used to identify and distinguish the goods/services of one provider from others. Trademarks and service marks may be registered at both the state and federal level. The U.S. Patent and Trademark Office only registers federal trademarks and service marks, which may conflict with and supersede state trademarks. Visit uspto.gov/trademarks . Copyrights protect original works of authorship including literary, dramatic, musical and artistic, and certain other intellectual works, such as computer software. Copyrights do not protect facts, ideas, and systems, although theymay protect the way they are expressed. For general information on copyrights, contact: » U.S. Copyright Office U.S. Library of Congress James Madison Memorial Building 101 Independence Ave. SE Washington, DC (202) 707-3000 or toll free (877) 476-0778 copyright.gov Chambers of Commerce Ohio Chamber 34 S. Third St., Columbus (614) 228-4201 ohiochamber.com Greater Akron 388 S. Main St., suite 205, Akron (330) 376-5550 greaterakronchamber.org Greater Cleveland Partnership/COSE 1240 Huron Road East, suite 300, Cleveland (216) 621-3300 gcpartnership.com Toledo region 300 Madison Ave., suite 200 (419) 243-8191 toledochamber.com

U.S. Export Assistance Center 201 Superior Ave. E., suite 424 Cleveland SBA Regional Export Finance Manager Patrick Hayes (216) 522-4750 patrick.hayes@trade.gov Ohio Small Business Development Centers Export Assistance Network Cleveland State University Monte Ahjua College of Business BU308 1860 E. 18th St. SBDC Export Assistance Network Director Nathaniel Ward (216) 523-7347 n.t.ward54@csuohio.edu Toledo Chamber of Commerce 300 Madison Ave., suite 200 SBDC Export Assistance Network Director Sabrina D’Onofrio (419) 243 8191 x248 sabrina.donofrio@toledochamber.com Youngstown State University 1 University Plaza SBDC Export Assistance Network Director

Mousa Kassis (330) 941-2145 mhkassis@ysa.edu

17

LOCAL BUSINESS ASSISTANCE

Vocademy in Riverside, vocademy.com , trains underserved populations for vocational careers in manufacturing. Indiana Ruckus Makerspace in Indianapolis, ruckusindy.com , provides coaching and job placement complementing day-to-day job skills training. Massachusetts The Clubhouse-to-Career Pathways to Success program in Roxbury, flagshipclubhouse.org/c2c , places its participants in meaningful employment matching their skill sets. Missouri Rightfully Sewn in Kansas City, rightfullysewn.org , prepares at-risk women and underserved populations for entry level sewing positions, increasing their tailoring and production management skills. New Hampshire Monadnock Art x Tech Makerspace in Peterborough fills the need for qualified welders in construction and industry, visit monadnockartxtech.org . New Jersey New Jersey Institute of Technology Makerspace in Newark connects participants with entry level advanced manufacturing jobs, in addition to an apprenticeship program, visit njitmakerspace.com . New York The Foundry in Buffalo, thefoundrybuffalo.org , operates four makerspaces, metal and wood shops and tech and textile labs, in support of education and entrepreneurship. North Carolina Forge Greensboro connects untapped talent to employment opportunities through pre-apprenticeship programs and accreditation, visit forgegreensboro.org . Oklahoma Fab Lab Tulsa prepares participants with high-value skills to secure careers as operators and technicians in digital fabrication, visit fablabtulsa.org . Pennsylvania NextFab’s Furnishing a Future program in Philadelphia places trained carpenters, visit nextfab.com .

Workshops for Warriors welding student Nikolas Williams trains in the San Diego makerspace, which receives SBA funding for its welding and machining programs. Workshops for Warriors places program graduates into advanced manufacturing careers nationwide.

Workforce Recruitment Find qualified workers at these makerspace initiatives fund d by the SBA. If you are a small business employing skilled laborers, access a new talent pool for recruitment at your local makerspace. How it benefits you These community operated workspaces provide training and resources to better prepare workers for the jobmarket, offering job-specific and soft skills training. Connect with one of these organizations to see if thesemakerspace participants could work for your small business. California Workshops for Warriors, wfw.org , trains, certifies to national standards, and places veterans into advanced manufacturing careers nationwide.

18

LOCAL BUSINESS ASSISTANCE Emerging Leaders

Learn the skills to grow your small business in this seven-month course.

Accelerate Growth Small business executives looking to grow their business, create jobs, and strengthen their communities will find their next challenge

in the SBA Emerging Leaders program. This seven-month course offers about 100 hours of training and provides the opportunity for high-potential small business owners to work with experienced coaches and mentors while developing connections with peers, local leaders, and the financial community. How it benefits you Since the start of the program in 2008, Emerging Leaders graduates have reported creating over 6,500 jobs, gaining more than $300 million in new financing, and securing over $3.16 billion in government contracts. Participants produce a three-year strategic growth plan that connects them with the necessary tools and resources to reach major performance targets. What you learn The curriculum is research-based and nationally scalable, enabling you to engage in focused development and expansion strategies, including options for accessing new capital and securing government contracts. Who’s eligible Small businesses having annual revenues of at least $250,000, in business for at least three years, and with at least one employee.

HOW THE SBA HELPED ME SUCCEED When April Broderick wanted to expand into government contracting, she turned to the SBA. A&A Fire and Safety Co. in Cabot, AR serves the fire protection and service needs of businesses, schools, and fire departments across Arkansas. She took over from her father, Alan, in 2014, becoming one of the few women executives in her industry. With the help of the SBA Emerging Leaders program, April received business training and networking opportunities to help her better compete in the public marketplace. April committed to the program because she wanted to develop a three- year growth plan with business experts. Since graduating from Emerging Leaders, she has grown her business to six full-time employees, seven part time, with a projected 2019 revenue of $1.7 million.

Get involved To register online, visit sba.gov/ emergingleaders .

19

LOCAL BUSINESS ASSISTANCE

Entrepreneurial Opportunities

Regional Innovation Clusters Create jobs and grow the economy through an SBA Regional Innovation Cluster. Who should join Small businesses driving innovation in one of these tech industries: • advanced composites • agTech • bioscience • food processing • data sciences

Online Resources Find free short courses and learning tools to start and grow your small business at sba.gov/learning . The free SBA Online Learning Center is a great resource for every entrepreneur, especially rural business owners looking for easy access to vital business training. Courses include: • writing your business plan • buying a business • financing options • digital and traditional marketing to win customers • disaster recovery • understanding your customer Native American Workshops Tribal enterprises and business organizations can receive training at an SBA Entrepreneurial Empowerment Workshop. These workshops cover business concepts important for starting, growing, or expanding a small business. RedWind instructors identify and help participants avoid common pitfalls. Learn how to prepare a business plan, gain access to capital, and basic book keeping. Request a workshop in your area by visiting nativesmallbusiness.org .

• medical sciences • power and energy • unmanned aerial systems • water tech • wood products

How it works Each industry cluster is based in a geographic region. Your small business must be located in or near that region in order to join the cluster. For example, the AgLaunch Initiative cluster, which focuses on agricultural technology, is located in the Tennessee area. A small agTech business in or near Tennessee will connect with other agTech suppliers, service providers, and related institutions through that innovation cluster. How it benefits you Network with other industry innovators and connect with resources that will help your small business find funding. You’ll also receive guidance on how to better compete for government contracts and other opportunities so you can grow and expand. Receive free technical and legal assistance to develop your tech and get it to market for government and industry buyers. Get involved Find an SBA Regional Innovation Cluster near you by visiting sba.gov/localassistance . Select the regional innovation clusters on the drop-down menu.

20

SBA Regional Innovation Clusters

Autonomous & Unmanned Systems Cluster – Emerging Tech Ventures The Ozarks Cluster – Startup Junkie (Industry focus: Food processing, supply chain, & logistics) The Water Council Cluster Marine IndustryScience& TechnologyCluster BioSTL: St. Louis Biosciences Cluster Oklahoma-South Kansas Unmanned A eri- al Systems Cluster The AppalachianOhioWoodProducts Cluster Conductor RIC in Healthcare, Education & Data/Decision Sciences – Startup Junkie Consulting

Integrative Business Services Inc. (Industry focus: Optics) Great Plains Technology & Manufacturing Cluster Montana Bioscience Cluster – Montana Technology Enterprise Center AgLaunch Initiative

Utah Advanced Material Manufacturing Initiative

Defense Alliance - LSI Business Development Inc. (Industry focus: Advanced Power and Energy)

21

LOCAL BUSINESS ASSISTANCE

HOW THE SBA HELPED ME SUCCEED U.S. Navy veteran Roberto Ortiz puts his 40 years of aviation management experience to use as a small business owner in Chesapeake, VA. Bert expanded AVMAC Inc. into the government sector fulfilling aviation and maritime logistical services with the help of his local SBA Veterans Business Outreach Center. VBOCs are the first stop for military community entrepreneurs looking to start, grow, or expand a small business. The VBOC located at Old Dominion University helped Bert obtain government contracting business certifications. With support from his local VBOC, Bert has strategically positioned AVMAC in the federal marketplace to better compete for large-scale government contracts. From AVMAC’s first contract in 2010, this veteran-led company has nearly doubled in revenue and grown to over 400 employees.

AVMAC President/CEO Bert Ortiz, left, and fellow U.S. Navy veteran and electrician Ken Morey manufacturing a power panel bracket.

Opportunities for Veterans

Military community members become more successful entrepreneurs with the help of the SBA.

Who’s eligible? Service members transitioning out of active duty and military spouses. Boots to Business: Reboot, for veterans, National Guard or Reserve members and military spouses, teaches this entrepreneurship curriculum off base in communities. Register for either B2B program at https://sbavets.force.com . For women veterans Receive entrepreneurial training geared toward women veterans, service

members, and spouses through these SBA- funded programs: » Veteran Women Igniting the Spirit of Entrepreneurship in Syracuse, New York

Entrepreneurship training In Boots to Business, explore business ownership and other self-employment opportunities while learning key business concepts. Walk away with an overview of entrepreneurship and applicable business ownership fundamentals, including how to access startup capital using SBA resources. Boots to Business is conducted on all military installations as part of the Department of Defense’s Transition Assistance Program.

» LiftFund in San Antonio, Texas For service-disabled veterans Learn how to start and grow a small

business using these SBA-funded programs: » Entrepreneurship Bootcamp for Veterans with Disabilities in Syracuse, New York

22

LOCAL BUSINESS ASSISTANCE

» Veterans Entrepreneurship Program at the Riata Center for Entrepreneurship, Spears School of Business, Oklahoma State University in Stillwater, Oklahoma » Veteran Entrepreneurship Jumpstart at St. Joseph’s University in Philadelphia, Pennsylvania » Dog Tag Inc., affiliated with Georgetown University in Washington, DC

Financing Employee called to active duty?

You can receive funds that enable your business to meet ordinary and necessary operating expenses when an essential employee is called up to active duty in the military reserve. Ask your local SBA specialist or lender about the Military Reservist Economic Injury Disaster Loan. Government contracting Veteran-owned and service-disabled veteran-owned small businesses that want to better compete in the public market receive training from the Veteran Institute for Procurement, nationalvip.org . VIP Start Enter the federal market and become ready for procurement. VIP Grow Strategize to expand and operate within the federal marketplace. VIP International Enter or expand your federal and commercial contracting opportunities overseas. Get certified Learn about the service-disabled veteran- owned small business certification program on page 49. Need assistance? Veteran and military entrepreneurs receive business training, counseling, and referrals to other SBA Resource Partners at a Veterans Business Outreach Center, sba.gov/vboc . For veterans business information visit sba.gov/veterans .

23

LOCAL BUSINESS ASSISTANCE

Write your Business Plan

Your business plan is the foundation of your business. Learn how to write a business plan with the help of an SBA Resource Partner. TRADITIONAL BUSINESS PLAN FORMAT

When you write your business plan, you don’t have to stick to the exact business plan template. Instead, use the sections that make the most sense for your business and your needs. Executive Summary Briefly summarize your company and why it will be successful. Include your mission statement, your product or service, and basic information about your company’s leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing. Company Description Go into detail about the problems your business solves. Be specific as to audience and location. List out the consumers, organizations, or businesses your company plans to serve. Explain the competitive advantages you have that will make your business successful. Are there experts on your team? Have you found the perfect location? Your company description is the place to boast about your strengths. Market Analysis Demonstrate a solid understanding of your industry outlook and tar- get market. This is where it pays to partner with an experienced busi- ness counselor fromyour local Small Business Development Center, SCORE, Women's Business Center, or Veterans Business Outreach Center—all these SBA Resource Partners provide free or low-cost business assistance. Competitive research will showwhat other busi- nesses are doing and their strengths. In your market research, look for trends and themes. What do successful competitors do? Why does it work? Can you do it better? Now's the time to answer these questions. Organization and Management

Business plans help you run your business. A good business plan guides you throughmanaging your business. You’ll use your business plan as a roadmap for how to structure, run, and grow your new business. Business plans can help you get funding or bring on new business partners. Investors want to see a return on their investment. Your business plan is the tool you’ll use to convince people that working with you—or investing in your company—is a smart investment. Brain storm with a business counselor (visit one of our SBA Resource Partners detailed on page 10) and write a traditional business plan , which uses a standard structure and detailed sections. Once you've got it all down, you can then condense it to a lean startup business plan, which typically contains key points on only one page.

Explain how your com- pany will be structured and who will run it. Describe the legal structure of your busi- ness. Statewhether you have or intend to incor- porate your business as a C or an S corporation, forma general or limited partnership, or if you're a sole proprietor or limited liability company.

Want to see an example of a business plan? View examples of business plans at sba.gov/business-guide/plan/ write-your-business- plan-template

24

LOCAL BUSINESS ASSISTANCE

LEAN STARTUP PLAN FORMAT Write a lean startup plan if requested from an investor, or if your business is relatively simple or you plan to regularly change and refine as you go. Lean startup plans use more visual organization tools and only a handful of elements to describe your company’s value proposition, infrastructure, customers, and finances. They’re useful for visualiz- ing your company's fundamental facts. Your business counselor can help you edit down into the Business Model Canvas, used here—the most well known style, or another lean startup template. Key Partnerships Note the other businesses you’ll work with--suppliers, manufactur- ers, subcontractors, and similar strategic partners. Key Activities List the ways your business will gain a competitive advantage. Will you sell direct to consumers or use technology to tap into the sharing economy? Key Resources List resources you’ll leverage to create value for your customer. Your most important assets include staff, capital, or intellectual property. Leverage business resources that might be available to women, veterans, Native Americans, and HUBZone–certified businesses. Value Proposition Make a clear and compelling statement about the unique value your company brings to the market. Customer Relationships Describe how customers will interact with your business. Think through the customer experience from start to finish. Is it auto- mated or personal? In person or online? Customer Segments Name your target market. Your business won’t be for everybody; it’s important to have a clear sense of who you serve. Channels List the most important ways you’ll talk to your customers. Cost Structure Will your company focus on reducing cost or maximizing value? Define your strategy, then list the most significant costs you’ll face. Revenue Streams Explain how your company makes money: direct sales, member- ships fees, selling advertising space? If your company has multiple revenue streams, list them all.

Use an organizational chart to show the hierarchy. Explain how each person’s experience will contribute to the success of your venture. Consider including CVs of key members. Service or Product Line Describe what you sell or what service you offer. Explain how it ben- efits your customers and the product lifecycle. Share your plans for intellectual property, like copyright or patent filings. If you're doing research and development for your service or product, explain it. Marketing and Sales Your marketing strategy should evolve and change to fit your needs in each context. Describe how you'll attract and retain customers. Show how a sale will actually happen. You'll refer to this section later when you make financial projections, so be thorough. Funding Request If you're asking for funding, outline your funding requirements. Specify whether you want debt or equity and the terms you'd like. Your goal is to clearly explain how much funding you’ll need over the next five years and how the investment will be used. Specify if you need funds to buy equipment or materials, pay salaries, or cover specific bills until revenue increases. Explain how ❒ Executive summary ❒ Company description ❒Market analysis ❒ Organization and management ❒ Service or product line ❒Marketing and sales ❒ Funding request ❒ Financial projections ❒ Appendix TRADITIONAL BUSINESS PLAN CHECKLIST

you'll pay off the debt. Financial Projections

Supplement your funding request with a prospective financial outlook for the next five years. Show how your business will be a financial success. If your business is already established, include income state- ments, balance sheets, and cash flow statements for the last three to five years. List collateral you could put against a loan. Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, be even more specific and use quarterly—or even monthly —projections. Make sure to clearly explain your projections and match them to your funding requests. Use visual organization tools--graphs and charts—to tell your business's financial story. Appendix Here you'll attach supporting documents or other requested materials. Common items to include are credit histories, CVs, product pictures, letters of reference, licenses, permits, patents, legal documents, and other contracts.

LEAN STARTUP PLAN CHECKLIST

❒ Key partnerships ❒ Key activities ❒ Key resources ❒ Value proposition ❒ Customer relationships

❒ Customer segments ❒ Channels ❒ Cost structure ❒ Revenue streams

25

FUNDING PROGRAMS Financing Your Small Business

Crafting a Business SBA-backed financing helped Superstition Meadery expand into a multimillion dollar enterprise. written by Becky Bosshart How We Did It

26

FUNDING PROGRAMS

J

Solution Thanks to guidance from an SBA Resource Partner, the Small Business Development Center at Yavapai Community College, Jennifer and Jeff learned about financing that worked for them. The SBA guarantees loans made by lending institutions to small business that would not otherwise be able to obtain financing. Their small business qualified for two SBA-backed loans totaling more than $600,000. The Herberts’ first SBA-backed loan allowed them to acquire commercial property to design and build their mead production facility. Their second SBA-backed loan provided the funding for professional brewing equipment to complete their 7,450-square-foot production space. The Herberts recently purchased a historic building in downtown Phoenix, Arizona to open a mead-pairing restaurant. Benefit The Herberts started with two employees and now have over 20 producing 29,000 gallons this year. From a homegrown setup, Jennifer and Jeff are now charting revenue in excess of $2.6 million and distributing to 37 states, across Europe and Southeast Asia. They have plans for another expansion, including a shipping warehouse to manage their online retail and wholesale orders.

ennifer and Jeff Herbert’s home-based brewing has expanded into a global, multimillion dollar enterprise thanks to SBA

assistance. Using Arizona honey and ingredients they’ve sourced from around the world (such as Tahitian vanilla and Moroccan saffron), the Herberts are selling nearly 30,000 gallons annually of their honey-based fermented beverage. They operate a downtown Prescott, Arizona tasting room and state-of-the-art production facility, creating jobs and building a local craft industry. The Herberts, founding members of the American Mead Makers Association, have traveled around the world hosting pairing events and pouring at craft beverage festivals. Challenge The Herberts wanted to scale up their meadery while also staying true to their values of quality ingredients and craft process. It is often difficult for new entrepreneurs or unique concepts like a meadery to get traditional financing, even though they knew they had a great idea, the backing wasn’t there to expand. They say that choosing to do something new breaks the mold, which can be uncomfortable for traditional lenders.

5 Tips for Success Get guidance. Develop a working relationship with an SBA Resource Partner (see page 10) to help you find the funding that works best for you. Define your lending needs. Determine if a loan is right for you. Is this the right time? How much do you need? What are you going to use it for? Talk to multiple lenders. See who best matches you and your business. Has the lender successfully worked with other businesses in your industry? Check all options. Consult with your lender to see if you’re eligible for SBA financing programs, determined by your industry & experience; collateral; credit score; and the relationship & transparency you develop with the lending agent.

Be ready for the ups and downs.

Your entrepreneurial endeavor will be a roller coaster ride filled with challenges and successes. The path is all consuming so make sure that you love what you do. Passion is the price of admission.

Jeff & Jennifer Herbert, owners of Superstition Meadery, completed their 7,450-square- foot production space and opened a tasting room in Prescott, AZ with the assistance of SBA-backed financing. See their story on YouTube by searching for the 2019 National Small Business Persons of the Year.

27

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52

www.sba.gov

Made with FlippingBook - Online catalogs