AwardsNationalConvention2017

Award Category BestLocalEconomicDevelopmentProgram

1 BasicInformationLanguage English,thoughtheprojectwasenrolledinDutchProject Steamfactory

www.steamfactory.beRoot cause Outofthe(garage)boxthinkingresultedinafull-fledgedsolutionthat

avoidstheneedtostartupyourdreaminagarage.Purpose Showingthatgivingchancesforentrepreneurshiptoflourishcanbedone

withminimalbudgetandareasonableportionofbravery.Start date Juli 2016End date March 2017Target Startupacooperativecompanyaimingtobuildahubforstarting

entrepreneursandsmallbusinesses.Sustainabledevelopmentgoal

Buildresilientinfrastructure,promoteinclusiveandsustainableindustrializationandfosterinnovation(Goal9)

1.1 OverviewTheSteamfactorywas formanyyears thenameof the localelectricityplant inAalst,Belgium.ThepeopleofAalstliterallywarmedtheirhouseswiththeresidualheatoftheplant,thatwastransportedthroughasteamnetworkunderthepavement.Tillonlysomeyearsago.

ThenewSteamfactoryisaninitiativeofJCIAalst.Inaformerofficeandtrainingbuildingofthispowerplant,werealizedapop-upbusinesscenter.Estimatedopeningtime:‘acoupleofyears’.That’sright,becausethebuildingwastenantlesswaitingforre-destination.Mostprobablydemolitionisitsdestiny.

Officespaceisnotfree.Startersorsmallcompaniesthatlivetheirdream,cannotalwaysaffordtheideallocationwherecrosspollinationandmotivationalsuccessistheirshare.Withtheconceptwe’veputtogethertheycanflourishinaninspiringenvironmentattheminimalcost.AttheSteamfactory,wenotonlyofferprivateofficesbutalsoco-workingspace,meetingroomsandcommunityspace.JCIAalstitselfisoneoftheorganizationsinthisemergingnetwork.

The Steamfactory is the nameof this first project.With JCI Aalst as ourmajority shareholder, thecompanyStarters’Lodgewasestablished.Asaprofitdrivenorganization,Starters’Lodgerealizesthevalueofourcustomerportfolio.TheambitioustargetistobereadytoofferourguestsanalternativebeforetheSteamfactoryblowsoutitslastsighofsteam.

2 Objectives,Planning,FinanceandExecution2.1 Whatweretheobjectivesofthisprogram?ApartfromthefactthatwewantedandstillstrivetoputAalstonthestartupscene,allmembersofJCIAalstwereinvolvedintheparticipationinarealcompany.Projectmemberssharedtheirknowledgeof the basics of corporate finance, shareholder participation, liability and riskmanagement.OtherteammembersenjoyedtriggeringthelesscreativemindstocreateawarmwelcometofutureusersoftheSteamfactory.

TeammembersofthisJCIprojectare:WouterDanckaert,PieterLangsweirdt,MohammedBoumalek,AnneliesVijncke,JennyJanssens,SariePaepe.

2.2 HowdoesthisprogramaligntotheJCIPlanofAction?Thesaying“stagnationmeansdecline”isthecredoofthisentireproject.Everyoneknewandacceptedthe swordofDamocleshangingaboveus,whenwe signed the contract to rent theoldoffice andtrainingcenterwhereourSteamfactorywouldemerge.

Weallacceptedtodiveintoabusinessplanthatcouldonlysucceedwithanenddatefarenoughinthefuture.Anenddatethatwillandshallliterallyblowawayourdream.TheSteamfactoryinAalstisdeemedfordemolition.

Andyetwefoundthemotivation tospendhourstocleanupthetenantlessbuilding.Asateamwemovedforwardwiththecleaningandreopeningofabuilding,phasedoutforthemainstreamsociety.

However, if you thinkabout it.Whenwecouldonlymanage tohost10companiesasusersof theSteamfactory, for as little as 2 years. That would mean that we realized to lodge half of oneentrepreneurial career. In that time, Facebook grew world scale andMicrosoft turned invincible.Creatingthatchanceisourinvestment.

Asamatterofcoincidence,atthetimeofwritingthis,theSteamfactoryinAalstisnotonlythemeetingplaceforlocalassociationsbutalsotheBelgianhubfortwoDutchcompanies.Youcouldstatethatwesuccessfullyconnectlike-mindedpeopleacrossbordersinaninspiringenvironment.

2.3 Wasthebudgetaneffectiveguideforthefinancialmanagementoftheproject?ThebudgetforthisJCIprojectwas0euros.TherealizationattheendoftheJCIprojectwasthestartupofthecompanyStarters’Lodge.Cashstartupcostswereabsorbedbythecreatedcompanyandtheirshareholders.

ThatdoesnotmeanthatbudgetwasnopartofthisJCIproject.Thekeyenablerforthewholeprojectwasasubstantiatedfinancialplanforthecompanytobesetup.

2.4 HowdoesthisprojectadvancetheJCIMissionandVision?Byrealizingthisco-workingplacethewaywedid,wecreatedacommunitylayerreducingfalloutandencouraging people to keep going. Bringing likeminded people together is one aspect but equallyimportantisthefactthatwemanagedtobringentrepreneurswithatrackrecordunderthesameroof.

3 PromotionofFreeEnterprise3.1 HowdidtheprogramseektoexhibitJCIValues,especially“freeenterprise”?We’vedefinitelyloweredtheentrythresholdforstartupsbydemonstratingaconcepttoreducemaybethehighestfixedcostwherenocompanyescapesfrom.Thatishousing,inallaspects.

3.2 Howwasfreeenterprisepromotedduringtheproject?Bynature, thisprojectpromotesentrepreneurshipbystimulating. Inordertospreadtheword,wemanagedtogetpublishedwithourstoryinlocalnewspaperslikeHLN,Nieuwsblad,PersregiodenderandMadeinOost-Vlaanderen.Alsoaninterviewonthelocalradiowasgrantedus.

4 ImpactonLocalEconomy4.1 Howwastheimpactonlocaleconomymeasured?KeyperformanceindicatorsforusarethenumberofactivitiesorganizedatSteamfactoryAalstandthepercentageofprivateoffice.

Theawarenessofoursocietyofthepossiblefunctionsoftemporaryemptybuildingsislesstangible.

4.2 WhatwastheintendedimpactontheLocalEconomy?Whatgoalswereoriginallyset?

Asacommercialentity,themostimportantgoalwastogrowprofitableourselves,inordertoensurecontinuity.Thisisonlypossiblewhenweattractthe(local)economytojoinourproject.

4.3 Whatwastheactualeconomicimpactproducedbythisproject?JCIAalstco-financedandsupportedthelaunchofthiscompany.ThecustomerbaseofStarters’Lodgeatpresentistangibleandtheprofitabilityofthecompanyissatisfactory.ThismeansthatthetargetoftheJCIprojectisrealizedintheactivitiesofStarters’Lodge.

5 ImpactonCommunityandParticipants5.1 Howwasthecommunityandparticipantimpactmeasuredforthisproject?Togetherwith120guests,onouropeningceremonyweenjoyedthepresenceofthemajorofthecityofAalstandthelocalrepresentativeforlocaleconomy.Also,theregionaldirectorofVOKA,theFlemishchamberofcommerce,gavehispersonalimpressionsonthehistoryofthesiteandonourproject.

5.2 Describetheactualimpactonthelocalcommunityandtheparticipants?With the Steamfactory project, we definitely had an impact on the local community. Local start-up businesses in Aalst now have a possibility to rent a professional office at budget-friendly prices. This possibility is quite rare in our city. Not only tenants have the benefit of installing almost immediately an office close to the Central Park in Aalst, but they have the possibility to end the contract with few strings attached, once their companies grow fast and they should need larger spaces or industrial warehouses. The start-up companies who are now resident in Steamfactory are very satisfied with the networking possibilities offered by our build-up community. Visitors or participants of events, meetings, etc… that take place in Steamfactory, encourage business in the wide area of Aalst.

6 PartnershipandPublicRelations6.1 Whatwasthepromotionalstrategyforthisprogram?Tomakethingsclear,there’stwoaspectsonpromotioninthisJCIproject.

InpreparationtothelaunchthefirstprojectofStarters’Lodge–Steamfactory–theJCIprojectinvestedindifferentaspectsofthego-to-marketstrategy.Withjoinedeffort,awebsitewasbroughtonline,aFacebookgroup,googleadwordscampaigns,publicitythroughBelgianrealestatebrokers.

Thefirstpartnersarethefoundingshareholders.ThosewerememberoftheJCIproject‘Steamfactory’andthereforebelieversofthefirsthour.Thenextcategoryofcrucialstakeholderswerethosewhosigneduptobecomecooperativeshareholder.Toconvincethosefunders,weneededanelaboratedbusinessplancoveringamongothertheirparticipationinfluence,afinancialplan,acommunicationstrategyandoffcoursethemarkettestintheformofacoupleofearlybelievers.

6.2 Howsuccessfulwasthepromotion?Pleaseindicatefigureswhereapplicable.Duringthecleanupweekendswhentheclockwastickingtowardstheopeningevent,wehadfullsupportoflotsofhelpinghandsfromJCIAalst.

WerealizedtofundthecompanytothedesiredlevelbymeansofcooperativeshareholdersplacedbyJCImembersandsympathizers.Thisraisedthecompanycapitalto28.000euro.ThiswasduetothefactthatahandfuloffutureguestsoftheSteamfactoryhadalreadypromisedtheirloyalty.

Throughlocalradioandsocialmedia,anestimated80.000peoplefrominandaroundthecityofAalsthavebeenreachedtoannouncetherebirthoftheirSteamfactory.

ThecooperativecompanyStarters’Lodgeinvestedinprojectors,whiteboards,furnitureandlesstangibleassetsasacommunityaroundus.Alsothelattercanbefoundinourfinancialresultsduetopartnershipswhereweinvestedtimeandourlocation.Forexample,wewelcomedBryoforagatheringofeageryoungentrepreneursfollowingthestartupprogramofournationalchamberofcommerce.

Theresultofallthis,6monthsafteropening,isanorganizationthatisrunningbreak-even.Sixfixedusershavingtheiroffice.WehavebeenwelcomingafewhundredpeopleintheSteamfactoryondifferenttypesofevents.Frombreakfastmeetingstohackathonsoraboardgamingnight,frombeertastingstobookpresentationsoranartexhibition.Younameit.

6.3 Listthepartnersthatparticipatedinthisprogram.• CityofAalst• Flexamit• Bolton• Techtomar,Inpuls,Abbeloos&Schinkels,Kapernikov

6.4 Howdidthepartnersparticipateintheprogram?ThecityofAalsthasforseveralyearsshowninterestinthedormantambitionofJCIAalsttolaunchaproject like Steamfactory to create a home for young companies. They support Steamfactory byallowingthetemporarydestinationchangeofthisindustrialheritage.

WecouldcountontheprofessionalsupportofFlexamitforadvicesanddevicestoofferreliableandsecureinternetaccessinourbusinesscenter.

Boltonistheonestopshopforprintedmarketingwhereandwhenyouneedit.Duetothespeedofthisproject,wehadtocountontheirconfidenceinpre-financinghalfofourmarketingcampaign.

The best motivation to keep going is the reward of your first customers. And in our case theirconfidencewasthekeytothecrucialcapitalinjection.Therefore,weowethankstoTechtomar,Inpuls,Abbeloos&SchinkelsandKapernikovforpromisingtheirloyaltylongbeforeweopenedourdoors.

7 Long-termImpactoftheProgram7.1 Whatistheexpectedlong-termimpactofthisproject?WehadasmoothtransitionfromaJCIprojecttoafull-fledgedcompany.Also,JCIAalstparticipatesasashareholderinStarters’Lodge,whichisthecommercialnameofthecompany.JCIAalstthereforehastherighttonominate3membersintheboardofdirectorsresultinginacontinuedinvolvementinthedecisionmakingwithinStarters’Lodge.NottomentiontheexposureoftheSteamfactoryandfutureprojectsofStarters’LodgetonewJCIAalstmembersthatcouldbethenextusersoftheSteamfactorywiththeirbusinessestoestablish.

7.2 Whatchangeswouldyoumaketoimprovetheresultsofthisproject?We made a couple of mistakes that are classics among young starters. I’m talking aboutunderfinancing, mixed interests between shareholders, partners and labor. Also, getting startedwithoutevenknowingeachother.

Asamoreexperiencedentrepreneur, Icouldhavesaid ‘I toldyouso’onsomeofthosetopics.Butparticipatinginthediscussionswe’rehavingwithinourlocalJCIchapter,Istronglybelievetherearevaluablelearningmomentsinthisprojectthatmakeitworthit.

8 Images8.1 Marketing

Figure1:Promotionalpostonfacebook

Figure2:Sneakpreviewduringopeningevent

Figure3:Homepagewebsite

Figure4:Community/Bookingsite

Figure5:Nationalpressattention

Figure6:Regionalpressattentionat'MadeinOostVlaanderen'

8.2 Logo

8.3 History

Figure7:Theoriginalsteamfactory

8.4 Buildingandopeningevent

8.5 Customers