Virtual Incubator and Small Business Incentive Program

City of Champaign Planning and Development

Solving Problems

How can the City of Champaign be more friendly to start up businesses? What are the existing resources for small businesses in the community? Is there overlap is services provides? Can we bring other organizations together to create one central process?

Round Table Meetings

Round Table Findings

1. Businesses were not following any kind of process (ex. Leases signed before incorporated)

2. Many were left confused and disenfranchised when speaking directly to agencies

3. People don’t know who to trust for sound advice

4. There is no cheat sheet for moving between various government agencies.

Bottom Line…. The Process Was A MESS!

Understanding the Old System

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Solving the Problem

MISSION STATEMENT “help existing owners and new entrepreneurs achieve their goals, in a complex marketplace

locally, regionally, and globally”.

Place the SBDC at the Center of the Provider Universe!

How the New Process Works (Hopefully!)

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Lessons Learned

1. Overlap in services exists and can be hard to overcome

2. Convincing all agencies to work together can mean breaking down communication barriers

3. SCORE/SBDC Overlap – Both are SBA Supported

4. Someone has to take the lead on moving the ball forward

The Solution - “Bridge” The Virtual Incubator

Introducing “Bridge”

The City of Champaign applied for and was awarded $50,000 from the White House to develop a “Virtual Incubator” concept.

The President’s

START UP IN A DAY CHALLANGE $50,000 Award

What is a Virtual Incubator?

The Virtual Incubator is not a place, it’s a process...

A collection of services that are individually managed by the independent

agencies but coordinated through one central point agency.

What is a Virtual Incubator?

Using a local design company…Surface 51… the City of Champaign, the Champaign County EDC and SBDC

embarked on creating a new online portal that all local agencies could use as a starting point for business

development.

The Bridge

A clean, fresh homepage welcomes businesses…

The Bridge

Steps to success begins to organize the process in a more linear fashion and creates a new checklist to follow while receiving SBDC counseling.

The Bridge

An Assessment tool will help to focus your search and provides SBDC with a snapshot of who you are.

Events, classes and videos help aid the start up in learning early skills

The Bridge

Each agency is given their own provider page which is customized to their look and feel. It is important that all participants keep these pages up to date.

Local “Rock Stars” help to show start ups other local success stories and convince them they can do it!

The Bridge

The Bridge

SBDC Responsibilities • Intake of new clients • Maintain the partnerships built through the process • Stay informed of changes in agency programs • Referrals to existing government programs • Continue education programs • Continue business counsuling

City of Champaign Small Business Incentive Program

Small Business Incentive Program

Goals of the Program • Assist aspiring entrepreneurs in overcoming early

challenges • Provide educational opportunities for program applicants • To start the business off on the right foot, positioned to

succeed.

Change in Philosophy In the past the city has focused much of it investment in physical improvements through programs like TIF but this program invests in human capital.

Small Business Incentive Program – Why This Program

• Small businesses often can’t afford the advice they need to move forward and see formalization of their business as a barrier to start-up.

• Prior public input has indicated the lack of clear path through the system makes business start-up difficult in our community.

• The Program is modeled after the successful I-Start program through EnterpriseWorks in the Research Park, and designed to address these issues.

Small Business Incentive Program – How It Works

Four Major Areas to Starting a Business

Pre-qualified vendors in each of these fields make it easier for applicants to know who can provide specific services

EDUCATION FINANCE MARKETING LEGAL

Small Business Incentive Program

Every participant that meets the program criteria and enroll through the Virtual Incubator Program would automatically qualify for a $1,000 Education Credit for use on qualifying educational courses. EXAMPLES • SBDC and Partner Workshops • Parkland Business Training Courses • Business Certification Program • Accreditation or Certification Program (Trade/Skill)

EDUCATION

Small Business Incentive Program

Program enrollees would have access to financial firms that would assist in setting up the business for long term financial success. This includes:

• Payroll administration • Quarterly Financial Statements • Assistance with financial software setup • Tax Assistance • Insurance Advice

FINANCE

Small Business Incentive Program

Program enrollees would have access to marketing firms that would assist in market research and brand identity . These includes: • Market Research • Business Branding and Identity • Marketing Plan

MARKETING

Small Business Incentive Program

Program enrollees would have access to legal firms that would assist in establishing the incorporation and other formation documents . These includes: • Initial Company Formation, bylaws, application for FEIN

(filing fees paid by entrepreneur) • Stockholder agreements and certificates • Stock option plan • Employment Agreement • Non disclosure agreements

LEGAL

Small Business Incentive Program – How It Works

EDUCATION FINANCE MARKETING LEGAL

Package 1 Package 2 Package 3 Credit

Small Business Incentive Program – Who Qualifies?

• Applicants must be registered for FREE counseling at the Small Business Development Center

• Applicants must have completed the workshop “Starting Your Small Business” offered through the SBDC.

• Applicants must open their business within the corporate limits of the City of Champaign.

Small Business Incentive Program – How Much Does the City Fund?

Standard Level – 50% All applicants will receive a minimum 50% matching award. Financial Need Level – 75% If any owners of the proposed business meet the 50% threshold of median family income as noted on Attachment criteria for financial need the applicant may receive a 75% matching award. Targeted Neighborhood Level – 75% Applicants that agree to open their business in a City of Champaign Targeted Neighborhood (as attached) will be eligible for a 75% award. The maximum amount of city incentive shall not exceed $7,500 for any one applicant.

Small Business Incentive Program – How Much Does the City Fund?

Family Size

Median

Family

Income

50% MFI

1 person 50,350 25,200

2 persons 57,500 28,750

3 persons 64,700 32,350

4 persons 71,850 35,950

5 persons 77,650 38,850

6 persons 83,350 41,700

7 persons 89,150 44,600

8 persons 94,850 47,450

TARGETED NEIGHBORHOOD FINANCIAL NEED

>20% minority and >20% below poverty

Questions?

City of Champaign Planning and Development