On October 22nd, the CFBIE (Chicago First Black Inventors and Entrepreneurs Organization is hosting a full-day of free sessions to help local inventors. Lawyers, angel investors, and famous entrepreneurs will be part of panel discussions, and The Honorable Sharon R. Barner – Deputy Under Secretary of Commerce for Intellectual Property and Deputy Director, United States Patent and Trademark Office, will give the keynote address. Please visit their website at www.cfbieo.org for more details.

As part of Business Accelerator Week, CenteRPoint will be hosting two valuable seminars on Wednesday, October 12th, 2011, at Governors State University.

Intellectual Property Strategies will address patents, copyrights, trademarks, and trade secrets.

SBIR/STTR Grants will deal with how researchers and small business can access the federal program that helps them work together to commercialize innovations.

Find out more and register at the Business Accelerator Week site.

On August 5th, Governor Quinn visited Tinley Park to sign IL Senate Bill 1270 into law. The new law immediately provides that  the state will seek to spend 3% of every contract buying goods and services from veteran-owned small businesses in Illinois. In order to participate, the business must be based in Illinois, be at least 51% owned by one or more veterans, and have total annual sales of less than  $75 million. In addition, in order for any business to do business with the state in must register with CMS, the central purchasing agency for the state government.  You can find out more at http://www.sell2.illinois.gov/Default.cfm

I’m sure that you factor labor and materials into your pricing, but what about the tools and facilities required for that labor to convert those raw materials into the product that your customers covet? You’ve made a substantial investment in the equipment and facilities needed to produce your product or service. Shouldn’t you get paid for that investment? Many clients have not included that in their pricing- they inadvertently give it away and then must dig into their own pockets when repairs or replacements are required.

Two issues need to be addressed in order to adequately cover the costs of your plant:

·       What are the real costs?

·       How should they be allocated?

If they think about it at all, some clients have the mistaken notion that taking the depreciation expense that shows up on the income statement will cover those expenses. However, the depreciation “costs” that show up on the income statement are just gross approximations that accounting rules require you to make. They rarely have any connection with the real costs and usage of the equipment.  What you really want to charge for, anyway, is not to recapture what you’ve spent on the assets but to think forward to what it will cost you to replace the assets. That might be difficult to do, so many times clients default to an appraised value or current replacement cost. It’s up to you how often that value is re-assessed. Having that number bounce around can impact your pricing competitiveness from one period to another, while using a stale value might leave you deficient.

A building that has a useful life of 30 years might be costed out equally over that 30 year period. A machine that has a useful life of 50,000 cycles might best be expensed by how many cycles are used rather than by using time as the determining factor.  

If your 30,000 sf building is parceled out into manufacturing, storage, and office space, it may be useful to allocate the costs of the building to each of those operations. It may even worthwhile to break it down to the machine or operation level and then include its costs in the bids that use those particular machines.

Include the ancillary costs of the equipment and building.  It’s always good to try to tie costs to the ultimate drivers of those costs. For instance, if electric usage is driven by the high power needs of a particular machine, then that machine should bear the brunt of your utility costs. Therefore, jobs that use that machine will pay for the power it requires.  If power usage has no clear, dominant driver, allocating utility costs by square footage is reasonable.  Likewise, costs such as maintenance and upkeep, security, and  housekeeping could be tied to the plant or a specific machine or operation and thereby allocated rather than just dumped into an overhead expense account.

I attended the four-day TechWeek Conference at the Merchandise Mart this past weekend. Anyone involved in marketing or web technologies should consider attending to find out what’s going on.  A Who’s Who of local and national venture capitalists and leaders in their fields attended and participated in great roundtable discussions over the four days of the conference. Suites were set up to allow technologists to get together to work on projects and midVentures provided a contest to allow startups to exhibit their businesses and then vote for the top 5.

Some observations:

I was impressed with the energy in the place. It was more rock revival than bits and bytes. J B Pritzker of New World Ventures gave the keynote and whipped the crowd into a frenzy with Chicago pride and the tales of recent successes and big deals. He provided an inspiring call to action for the audience and statements about the greatness of Chicago and that our day in the tech sun has arrived. He talked about the type of city Chicago is and that we are no longer flyover zone for tech and venture capital types. His self-deprecating humor was endearing and he seems to epitomize the values of Chicago he listed:  we are not the shameless self promotion, PR-seeking types. We’re the “Just get it done and move on” types. You survive on your deeds. Pitch in and help each other, too.  Case in point: Just before his speech, I witnessed J B spilling coffee on himself and having to rush to the washroom to dry off. No entourage to make a fuss. No big scene. Just rolled up his sleeves and got back to work, Chicago-style. He seems like a great, normal person- as normal as a person in his position could be.

It was very interesting that this generation of successful businesses on the panels are really traditional businesses with a tech twist to them: payroll processing, technical information exchange, logistics, sales force management, news aggregation, trading platforms, marketing, etc. Many were partnerships of technologists and industry insiders who understand the industry, not focused exclusively on novel technology. I’m sure the audience had some pure tech plays, but you don’t really need to be internet or social network, etc. to be a tech company. Sure, there are some pure tech or web play, but much of the tech world is about redefining existing industries using technology.

 Even tech companies have the same fundamental business issues as everyone else: finding and keeping talent, making payroll, creating  culture, face-to-face sales, influence management, strategy decisions, and on and on. They’re no different from the rest of us.

 Also interesting that nearly all of the successes who had received funding said that they wished that they had taken less funding-  in some cases, much less. Of course, some of that is selfish. They would have ended up with more ownership. But a lot of other reasons were offered. They would have been smarter with their business and their money if there hadn’t been so much to throw at problems. Rather than just throw money at it (and that rarely fixed the underlying problem), they would have really assessed and addressed for permanent solutions.  Taking money required decisions based on investor needs, and investors were constantly looking over their shoulders requiring them to stick with the original plan.

Real Cost of Employees

In most businesses, payroll is the biggest ongoing expense. How do you factor that cost into your pricing?  Aside from the obvious need to be adept at estimating the time needed to complete the job or build the widget, how do you determine what you charge for that time?

In working with clients, I find that there are several typical problems with the way they calculate their labor expenses:

Using the base salary or hourly rate. That rate is rarely the real cost of that employee.  Ensure that you factor in the taxes, insurance, and benefits costs that you incur. FICA, unemployment,  workers’ comp,  union expenses, health benefits, 401(k) and other pension costs, bonuses and profit sharing, and any other benefits that you pay for should be added to the rate in order to calculate a “fully-loaded” labor rate.  I’ve seen that rate range from a 10% to a 50% gross-up on the base rate- even if commissions and bonuses are not part of compensation.

Calculating a “shop” or standard rate- even if you include all the other expenses paid on behalf of your staff in order to calculate a standard, fully-loaded rate to use, you may be losing business or leaving money on the table by using that shop rate for bidding purposes. 

Such an average rate hides a level of detail that helps you be more competitive.  A shop rate method works if everyone earns the same pay rate, but I’m sure that even in the same job category you will have different pay rates. Maybe a particular machine used in the process has a highly-compensated operator. Not all jobs require that particular machine, so it would be useful to exclude that machine and that operator from the cost calculations on those bids.  Otherwise, your perceived cost would be too high and you may lose jobs that you could have profitably completed. On the other side, using a lower average rate may lead you to accept unprofitable work.

Not factoring in downtime- Most clients I’ve worked with figure the labor costs based on standards for each step in the production process. Step A takes 5 minutes, step B takes 10 minutes, etc. That’s works well if your staff is utilized 100% of the time, but it’s not. You provide paid vacation and sick days, breaks and lunch, of course, but there are other times that they are not working on a specific job. In manufacturing, you may have setup and machine maintenance. Meetings, training, travel, and all sorts of other efforts take away from the actual production of your product. Your plant may not be operating at full capacity, so basing your costs on full capacity won’t provide full repayment at the end of the year. You’re still paying employees for that time, and you need to recover those costs. Just billing for run-time will not do it. 

I break these calculations down into two components.  I usually suggest grossing-up the labor rates for prescribed downtime such as paid vacation and sick days as well as breaks during the work day.  For example, if total vacation and sick days add up to 2 weeks, I would gross-up the previously calculated labor rates by 3.8% (2weeks/52weeks).

For capacity utilization, a downtime multiplier is effective. That multiplier takes an estimate of the production capacity of the organization, plant, etc. as the base and compares it to the actual or planned production for the period. You can use number of units, sales levels, machine time or whatever metric is available and makes sense for your operation. So, if you’re running at 50% capacity, you would gross up your labor rates by a factor of 2.

Lastly, don’t forget the efforts that support labor. You may be lumping those costs into overhead, but they really should be allocated along with labor.  If you have a formal HR department, those costs fall into this bucket. Supervisory salaries and costs, payroll processing, events, and other activities solely related to labor should also be broken out from general overhead and added to your labor rate.

With these refinements, you’ll have a much stronger handle on your cost structure and be able to understand which jobs are really profitable or not.

When your accountant puts your statements together or when you set up QuickBooks, you’re probably just thinking about doing the minimum to get your books in order for the bank or the IRS. You’re likely interested just in figuring out the standard ratios like gross profit margin, operating profit margin, and net profit margin. You have some Costs of Goods Sold categories- direct labor, raw materials, and shop supplies and not much more. All of your other expenses usually end up in an operating expense or general overhead category. Things like interest, depreciation, and other expenses that carry tax consequences may be broken out, but that’s about it. But that’s not enough to know how to price your products.

I’ll bet that a lot of the costs dumped into overhead actually are part of the product/service production.

What are the drivers, or determinants, of each expense category? Utilities, freight, rent, insurance, workers’ comp, and others may actually be tied at least partially to a production-related activity.

It may take a bit of effort to get a breakdown or it may be sufficient to make an educated guess.

I put together a table for clients. The first two columns list all the operating and overhead expenses and their amounts for last year.  Then I set up several additional columns- product and factory expenses, factory overhead, marketing expense, customer management, and what’s left over goes in general overhead. Categories vary depending on the company and the way the business operates. We sometimes even put each department or each employee in. Allocate costs to each category- either dollar amount or percentage.  Either get specific numbers or make best guess estimate.

Example Overhead worksheet:

Think about the drivers of the expense when allocating them. For instance, your utility costs may be a function of floor space, so you could allocate the expense to the various buckets using the amount of floor space they occupy. Workers comp may be by number of employees. For each line item, divvy up the expense using the driver that makes the most sense for that particular item.

Other expenses can be individually analyzed. As an example, your IT person may spend 75% of his time on the factory floor or dealing with factory issues and only 25% on support for a website or on office tech issues. You, as the owner, may spend 25% of your time dealing with factory issues, another 50% as head salesperson, and only 25% of your time actually “managing” the front office/support activities. Those realities should be captured when you price your service or product.  

Whatever can’t be better allocated goes in the general overhead category.

Clients find that going through this process is very eye-opening. They may never have thought about the connections and not realized how they and their staff spend their time. Most clients end up with a general overhead number that is anywhere from two-thirds to one-third of what they began with.

Now that overhead has been refined, what do we do with the numbers? First, you probably found that some of the overhead was actually production costs directly applicable to creating your product or service. These amounts should be factored into your direct costs (materials and labor) and your break-even analysis. These costs MUST be covered by every job. Otherwise, you’re giving away your product for less than it costs you to make it.

The other categories (marketing, design, customer management, etc.) can be allocated in different ways depending upon the way your business works or the strategy you want to use. I have helped some clients create an elaborate matrix to use estimates of effort or complexity to determine how much sales and marketing expense to allocate to a particular job.  Others merely wish for a default amount based on the size of the job.

General OH could be allocated using several different methods or drivers. It could be a percentage of sales, percentage of direct costs, or a markup on other overhead. It could be a lump sum per job, per customer, per month, etc…. It all depends on how your business works and what you want to accomplish. No method is perfect or suits all purposes.  The bottom line is that you need to understand the trade-offs so that you can use the numbers properly and when necessary, override the answer it provides.

Next post will tackle labor costs.

Date: June 16, 2011

For Immediate Release

Governors State Receives Coleman Foundation Grant

University Park, Illinois, June 16, 2011 - Governors State University recently received a $17,000 grant from The Coleman Foundation of Chicago. The grant will be used to support three Veterans Entrepreneurial Boot Camps hosted by CenterPoint.

Over the past three years, CenterPoint at Governors State has provided more than 400 veterans and active military personnel with the tools necessary to start their own businesses or improve their existing businesses. The Coleman Grant will allow CenterPoint to offer this event free of charge through 2012.

“We are proud to be able to serve those that have served our country,” said CenterPoint Director Hilary Burkinshaw. “This grant will allow us to offer this valuable program to an additional 300 veteran entrepreneurs.”

The boot camp is a focused intensive one day entrepreneurial training and counseling event for veterans, active military personnel, their business partners, and families. The daylong event provides the tools and knowledge needed for entrepreneurial success.

In 2008 and in 2009, the Veterans Entrepreneurial Boot Camp was honored by the Illinois Entrepreneurship and Small Business Growth Association for “outstanding, innovative, and best practices in the programs and services offered by member Illinois centers and the impact the program has had on the community, region, and state.”

CenterPoint at Governors State University includes an Illinois International Trade Center and an Illinois Small Business Development Center. The center is funded by the Small Business Administration, the Illinois Department of Commerce and Economic Opportunity, and Governors State University.

CenterPoint at Governors State University is located at 1 University Parkway, University Park, Illinois. For more information on the grant, the Veterans Entrepreneurial Boot Camp, or CenterPoint business consulting services, call (708) 534-4929 or visit www.centerpointgsu.com.

I’ve worked with a number of clients who have considerable years of successful business experience. Their businesses have grown to that stage 2 level- they’re not struggling along attempting to survive a little longer. Year in and year out their accountant puts their financials together and they show a bottom line that sounds like a good number. Yet, when we talk about how and where they make their money, they really don’t have any idea. They don’t know which are their most profitable customers or products. They don’t know which types of jobs fall into their sweet spot and should be the ones they target.

The best they can say is that at the end of the year, all totaled, they had more revenues than expenses. While that seems OK, they really are not maximizing the value of their firms or of their time without a strong knowledge of which job or which client really pays the bills. And if and when things get tough, they won’t have the tools to make the decisions required to get through.

You can survive and, if you’re lucky, flourish- by the grace of a great product in a booming market- without knowing your true cost structure. But, in a competitive market, that sloppiness will end up costing you considerably. The profitable jobs will leave for better pricing elsewhere because you’ve over-charged them and your pricing model shows that you can’t go any lower.  You’ll be stuck with the hodgepodge of loser clients who will drain you. Your pricing model didn’t price them properly, and now you’re stuck with the Sophie’s Choice of asking them to leave at a time when it’s difficult to replace a lost client or keeping them and having the pricing slowly bleed you dry. Either way, you lose. When you’re struggling just to keep the guys on the floor busy, you might be willing to take a few jobs that just cover their wages and raw materials, but you cannot keep the lights on with an entire portfolio of jobs like that.

It would be much better to know your costs and build a portfolio of profitable clients now by assessing and properly applying your costs to each job, client, or product and then ranking clients on their profitability.

Over the next couple posts, I’ll explain some of the steps required to do a better job of costing and how you can use that information strategically.  It’s not hard to understand and it’s not a lot of ongoing effort, but it is well worth it.

The issues boil down to these few:

What do I do about that big overhead bucket? I bet that much of what goes in the overhead category can actually be allocated to production or can be linked to either a customer or a particular job.

What do employees really cost? Their hourly rate or annual salary does not represent their total cost to you. On top of that, how much of their on-the-clock time is really productive?

Are you giving away your fixed assets? I’m sure that you factor labor and materials into your pricing, but what about the tools and facilities required for that labor to convert those raw materials into the product that your customers covet? Many clients have not included that- they inadvertently give it away and then must dig into their own pockets when repairs or replacements are required.

Are you making a return on your investment in the business? Your salary compensates you for your time and effort, but you should also earn a return on the capital you’ve invested in the firm. We can joke about psychic income- the non-monetary “rewards” of owning our own businesses- but, when it comes down to it, you’re really making an investment decision here. You have capital invested in the business. What return are you earning on it? Would you earn more buying T-Bills or buying a CD? Are you making enough to compensate you for the risk you undertake? If not, maybe you’d be better off figuring out an exit strategy and then investing the proceeds in a CD.

Next post- we’ll discuss overhead.

At the World Economic Forum on Africa, held this year in Cape Town, speakers from Ernst & Young talked about doing business in Africa. 

Speaking to over 500 companies from around the world, as well as Africans themselves, they discussed the growing attraction of doing business in the continent, and pointed to surveys showing how Africa is also becoming increasingly attractive to investors.

Full details of the discussion from CNN can be found here.

Or if you prefer to hear about the opportunities directly from regional experts and businesses already exporting to Africa, join CenterPoint’s Illinois International Trade Center for our June 23, 2011, half day program focusing on Doing Business in Africa and the Middle East.  The free event will be held at Broken Arrow Golf Club in Lockport starting at 9:00 a.m.  For details and registration click here. 

Illinois International Trade Center at CenterPoint Export Seminar

Exporting Agricultural Products

Trade Opportunities in Africa & Middle East

New, current information and expert discourse to improve your company’s export market potential.

June 23(Thursday), 2011, Broken Arrow Golf Club, 16325 W. Broken Arrow Dr., Lockport, IL 60441

The Illinois Department of Agriculture will address the key issues in the export of agricultural products and Illinois DCEO Office of Trade and Investment will talk about the trade opportunity in Africa and the Middle East.  You will also have an opportunity to network with presenters, service providers, potential buyers and your peers at the free luncheon after the meeting.

Key Take Aways:

·         How to take advantage of the government policy to increase export of agricultural products

·         Business opportunities in the dynamic Africa & Middle East market

·         Learn about the economic, legal, political, cultural environment in Africa & Middle East market

·         Changes in regulations for trading and logistics

·         Business Opportunities to meet the potential buyers

Additionally, please note that while the event is complimentary, registration in advance is required. Please click here to register before June 21, 2011. If you have any other questions, please call or email Mary Ma at 708- 534-6976 or hma@govst.edu.   

Export Seminar Program

The US National Export Initiative (NEI) aims to double US exports by 2015.  This is the first in a series of seminars offered by the Illinois International Trade Center (ITC) at Governors State University. The ITC ‘s mission is to enhance area businesses’ capabilities to compete in the global marketplace, with individualized export consultation, export finance assistance, trade shows and workshops. The ITC is funded by the Small Business Administration, IL Department of Commerce and Economic Opportunity and Governors State University.

Recent economic data points to a recovery that is either sputtering or at least not progressing the way past post-recession recoveries have.  How are you preparing? 

  If you’ve come out the recent recession relatively strong, you may see this as another opportunity to increase your competitive position against weaker competitors. Expansion – either internally or by purchasing available operations- at lower price points might be a great strategy if you have the wherewithal to make it through to the other side.  If there is excess capacity in the market, you may be able to drive weaker operators out by using your war chest to compete temporarily on price. Buying business in this way may push shaky competitors to the brink, leaving you at least temporarily to dominate.

  If you are one of the survivors, but weakened by the recession, you face a different set of options. Bolstering cash flow is paramount right now. Can you reduce expenditures even more than you already have? Can your working capital needs be reduced- collect receivables more quickly and/or pay your bills a little more slowly? Are you using cash management products from the bank? Sweep accounts, lockboxes, and other collection devices can speed the conversion of receivables to cash.

  Have you investigated working capital financing alternatives? Besides a line or revolver from a bank, several other options exist. Factoring is akin to selling your receivables to a lender. The factor then advances you cash at a discount from the face value of the receivables. The discount pays the factor for collection costs and interest on the money, so it’s not free, but it is a great way to speed up the cash flow in your business. Variations on the factoring theme include some firms that don’t actually “buy” your receivables but give you cash up front. They may charge a small percentage (3%) of face value for their collection services and holdback another percentage (15% to 20%) as insurance against non-collection, so you may get 80% to 75% upfront, and then get the holdback amount as the individual receivables are paid.

  If you are a cash business with little or no receivables, your cash flow from sales can’t really get much better. However, you can even use your charge card receipts as a way to borrow additional money. There are lenders who will make a loan to you based on your historical charge card receipts and use the card receipts as repayment of the loan. For example, if you have several years with charge card receipts of $200,000 or more, one of these lenders may make a loan to you of $100,000. You will run your card transactions through their machine and they will take their fees off the top plus a certain percentage of the receipts as repayment of the loan. Loans are usually one year, but can be rolled into another year. They are paid back by card receipts only. No additional cash from you would be required except in extreme circumstances.

  Before you take any of these steps, borrow a book from turnaround specialists and start a running 13-week cash flow statement. Plot out your exact cash inflows and outflows over the upcoming 3 months and determine if and when cash flow needs occur. Know precisely when taxes are due, payroll goes out, sales decline seasonally, or inventory needs to be re-ordered. Be prepared with a plan B to make payroll, pay a supplier, pay your RE taxes, or pay for some growth for those weeks that show negative cash flow. Only by having a strong handle on your future cash flows can you plot a strategy for survival.

How are you going to be smarter or better-prepared the next time around?

Share your thoughts and ideas so we can help each other.

More than 150 military veterans signed up for the CenterPoint at GSU’s sixth Veterans Entrepreneurial Boot Camp this past Wednesday, May 18, 2011.

More than 400 veterans or family members have attended entrepreneurial boot camps at GSU over the last 3 years. Many attendees continue to access the consulting  and educational services provided by CenterPoint, which include an Illinois Small Business Development Center, a recently opened Illinois International Trade Center and several SBA sponsored loan guarantee programs.

In celebration of National Small Business Week, Constant Contact will be hosting a free workshop on May 18th in Chicago.  The seminar will provide great info on e-mail marketing, FaceBook, and other new marketing tools that no business can afford to ignore. Please click on Get Down to Business with Constant Contact for more information and registration instructions.  

Wednesday, May 18th, 7:45 AM - Noon  

Join us as we crack the code on Social Media For Small Business!

Keynote Speaker: Justyn Howard, CEO, Sprout Social Inc.

Featured Speaker: Gail Goodman, CEO Constant Contact

Presentation By: Steve Robinson, Sr. Regional Director Constant Contact

Learn about the resources available from:

• City of Chicago Treasurer’s Office
• IL SBDC’s
• IL SBA
• SCORE Chicago
• NAWBO Chicago
• Microsoft

Location: Crown Plaza Chicago Metro

733 W Madison, Chicago, IL

Sponsor: Constant Contact 

University Park, Illinois, April 27, 2011 - Governors State University (GSU) recently announced its new Illinois International Trade Center and additional educational opportunities for regional businesses. The programs are designed to help firms that are already involved in exporting to expand their markets and introduce additional Illinois products and services to overseas markets.

The Illinois International Trade Center will provide targeted, high-impact services for export-ready companies, including free one-on-one consulting, market research, technical assistance in trading and logistics, and seminars. The International Trade Center is part of a grant from the U.S. Small Business Administration and the Illinois Department of Commerce and Economic Opportunity to expand the existing Illinois Small Business Development Center services at CenterPoint at Governors State University.

Hongxia (Mary) Ma has been named director of the new International Trade Center. Ma has extensive experience in international trade and global logistics management as an executive with a Fortune 500 Chinese oceanic shipping company, and has worked in China, New Zealand, and Chicago before taking the position at GSU.

“The world is a huge marketplace with incredible opportunities to provide sales and create new jobs for our region,” said Ma. “We can help businesses harness that potential.”

According to the Illinois Office of Trade and Investment, Illinois exports totaled nearly $49.8 billion in 2010, a 19.6 percent increase over 2009. The state’s top five exports are machinery, electronic products, chemicals, transportation equipment, and agricultural products. “Chicago’s Southland has the potential to significantly increase its exports, which will positively affect economic development statewide,” Ma added. 

CenterPoint is also working with the GSU College of Business and Public Administration to develop new education programs and opportunities to meet the needs of the business community. These programs will ensure that businesses have access to an educated workforce with a global perspective.

“Developing programs and using our resources to help our business community is an integral part of the university’s mission,” said Ellen Foster Curtis, Dean of the College of Business and Public Administration. “These initiatives ensure the university’s continuing role as an active partner in regional economic development.”

For more information on the CenterPoint International Trade Center visit www.centerpointgsu.com. Mary can be reached at hma@govst.edu and at 708-534-4929. For information on programs offered through GSU’s College of Business and Public Administration, visit www.govst.edu/cbpa.

Governors State University is located at 1 University Parkway in University Park, Illinois.

If you do any business at all in the Southland, you really need to plug into the Chicagoland Southland Economic Development Corporation (CSEDC). CSEDC, through its director, Reggie Greenwood, is linked into the major regional developments and plans impacting the future of businesses operating in our area- from a south suburban airport to a creation of a major logistics park. You can view the presentation from their most recent Quarterly Forum at : ULI: Proposed South Suburban Projects of Major Significance and visit their website at http://csedc.info/ . You can also register to receive their newsletter and updates.

Sign up now for our award-winning Veterans Entrepreneurial Boot Camp. It’s a full day of Veteran business-focused activities at Governors State University on May 18, 2011.  Developed by Veterans for Veterans to promote Veteran owned business start-ups, Veteran financing options and growing and improving results of existing Veteran owned businesses.   Hear from fellow Vet’s about their entrepreneurial journeys.

Get the latest on:

·        Marketing your business on a shoestring

·        Veteran friendly Financing opportunities through the SBA and a variety of lenders

·        “Military Friendly” franchising opportunities

·        Planning  your new business

·        government contacting / supply opportunities

·         the “Law and Order of Entrepreneurship”

·        20 – one on one individual counseling sessions with the experts

This full day event is free to all Veterans. A complimentary breakfast and full lunch will be provided.  All presentation material and other helpful tools will be provided free to attendees on a “Dog Tag” style flash drive.

Business partners of veterans and family members pay only $25.00 for this $99.00 value (due at registration). 

Registration starts at 7:45 AM; the program begins at 8:15AM and continues to 3:45PM.  Click here to register.

Dr. Daniel Goleman, the best-selling author of Emotional Intelligence, will be at the GSU campus on Monday, May 2, at 5 pm to discuss the topic and how understanding emotional intelligence increases your level of success. EI deals with understanding your own emotions and improving your interaction with others, and has many applications in business- whether motivating yourself or dealing with customers, employees, or competitors. For more information and to register, visit GSU-MILE.

The February 24^th issue of BusinessWeek devoted considerable ink to the state of our country’s finances.  It makes for fascinating and sometimes scary reading without politicizing the information. The authors analyze the data and provide potential courses of action as if the country was run as a business- USA, Inc.

I recommend reading it for three reasons.

Firstly, of course, we should all realize the state of our country’s financial condition since it directly impacts our individual financial and personal lives. I’ve noticed that a lot of us think of the government and all it’s programs as something that’s out there separate from ourselves and the rest of the economy- “The government will pay for it” or “The government should take care of…”.  It’s not- WE are ”USA, Inc.”. The analysis does a great job of rightly personalizing the data and showing what a huge part of our economy and our personal pocketbooks the government has become.

Secondly, the analysis provides insight into future business conditions and trends. As business owners, we need to be aware of the issues and likely preventative and curative measures in order to navigate our businesses through the future.

Lastly, and of more immediate and direct benefit, the analytical framework gives a great example of how investors and lenders look at your business to determine its financial condition. It’s worth working through the document to understand how you’re being graded. It’s also not a bad idea to go through this sort of analysis of your business periodically to assess your financial health and to take corrective action. Who knows, you may even see some aspect of your business situation in the analysis of USA, Inc. and some of the solutions in the article may be applicable to you.

The U.S. Small Business Administration Jobs Act Tour will be held in Chicago on April 15, 2011.  Meet with leaders from SBA, give input on new regulations, and learn how you can take advantage of new tools coming out of the Small Business Jobs Act.  Visit http://www.sba.gov/jobsacttour/chicago for more information and to register.  Space is limited.

Citigroup Center Building

500 West Madison Street, Suite 1150

Chicago, IL 60661

On March 29, 2011, the Internal Revenue Service (IRS) is presenting a FREE webinar for tax professionals, small businesses, self-employed persons and independent contractors,, titled: “Business Taxes for the Self-Employed: The Basics”.

The webinar will cover:

• Reporting profit or loss from a business or profession
• Self-employment tax and estimated tax payments
• Schedule C and C-EZ
• Deducting business expenses
• Husband and wife businesses
• Recordkeeping

The webinar starts at 1pm.  Register and attend by clicking on this link or copy and paste this URL in your browser: http://www.visualwebcaster.com/IRS/77024/reg.asp?id=77024.

For more information on IRS national and local phone forums and webinars for small businesses, visit www.irs.gov and search webinars for information about this and other events.

I just read a very interesting book that I recommend adding to your business bookshelf, whether you’re still planning a startup or you’ve been in business for a while. Randy Komisar and John Mullins, both serial entrepreneurs and business school faculty, recently released Getting to Plan B.

One of the messages of the book is that the best laid plans of entrepreneurs rarely work out according to plan. You need to be open to “plan B”. You go in with your best shot, but things change, you get more info, or a better opportunity presents itself. The authors present multiple examples of well-known firms like PayPal and Google for which the founders had very different ideas for the business than what the business actually morphed into. Through flexibility, listening to the market, and a willingness to change, the firms seized better/larger opportunities.

If you’re just starting a business, the examples in the book provide some reassurance. Don’t be discouraged if you don’t already know what your Plan B is. Not a single example had their plan B formulated from the beginning. They developed them on the fly. Second, don’t be discouraged if you don’t have a Google-sized idea or if you’re not setting the world on fire from the start. Listen to the market and stay open to new possibilities.

The book also presents a useful analysis of some of the problems with many business models and how to analyze them.

What was the biggest thing you needed to change as your business evolved?

There are a lot of innovative funding alternatives popping up to use the reach of the internet to find investors.  The jury is still out on their effectiveness, but it’s worth checking them out to see if they can help you.

Crowdfunding- bringing together a large number of small investors for commercial ventures or donors of social ventures to fund projects- is on such innovation.  It works a lot like the micro lending model developed by Kiva.

Kickstarter.com, a crowd-funder beginning to get a lot of attention lately, is a good example of how the process works:

On their website, list your project and your funding goal (any dollar amount) and a time limit (from 1-90 days).  When the deadline is reached, there are either of two results:

1. Funding Successful:  If a project has met or surpassed its funding goal, all backers’ credit cards are instantly charged and funds go directly to the project creator.  Project creators are then responsible for completing the project and delivering rewards as promised.
2. Funding Unsuccessful: If a project has NOT met its funding goal, all pledges are canceled.

“Investors” are not charged unless the project meets its full funding goal, and Amazon is used as the method of payment.

The “investors” often become customers, getting copies of the creative work when it is completed in exchange for their financial support.

Kickstarter focuses on a niche.  The deals they support are all various types of creative projects including films, music, publishing, and gaming.  Other crowdfunding websites specialize in various industries or geographic locations.

The Chicago Southland Chamber of Commerce has funds available at a low interest rate for companies funding projects that have a positive effect on the use of electrical energy consumption.

The Chicago Southland Chamber of Commerce has partnered with GNC Environmental to ensure effective, consistent, and accurate work throughout the Chicago southland business sector.  GNC Environmental has worked hand and hand with numerous types of organizations, solving energy problems and cutting utility expenses.

GNC Environmental is also a trade ally for ComEd’s Smart Ideas for Businesses program that provides  incentives to ComEd customers covering 30-50% of the cost of any electrical conservation measures.

The Chicago Southland Chamber of Commerce knows that the use of this fund in conjunction with incentives from ComEd as well as the expertise of GNC Environmental, will make it possible to cost effectively reduce energy consumption and save money.

For more information, click below:

Clean Energy Loans

 Three prominent small business surveys-  the small business optimism survey from the NFIB, the Discover Small Business Watch, and the Thomson Reuters/PayNet Small Business Lending Index- show upward momentum but a mixed bag for small businesses. The overall indexes are improving, but some categories are stubbornly low. Lending is increasing, but spotty. Job growth is not improving much. Capital expenditures are still being postponed. Small businesses have worked off excess inventories and adjusting to new purchase patterns from customers. Yet, nearly 3 years after the recession ended, small business owners are holding back from hiring and other big commitments to see if the recovery is sustainable.  

We’d like to hear what issues you’re facing in your business and what decisions you’re making about the future of your business. Are you not hiring? What is stopping you? Are suppliers or big customers squeezing you with payment terms- using you as their bank? How have you coped? What are you hearing from your bankers?

Let us know what you’re thinking.

In the old days, if customers were unhappy you hoped they would come to you so that you could make it right.  You certainly didn’t want an unhappy customer to leave unsatisfied and tell the proverbial 8 people about their unhappiness.

Well, the stakes have been raised.  A proliferation of online review sites make it easier for customers to voice their opinions and reach many more people.  Even sites such as Facebook, YouTube, MySpace, YahooLocal, and CitySearch- not specifically dedicated to customer reviews- are used by the public to broadcast their opinions.  On top of that, consumers actually put more weight on the opinions posted on these sites than they do on all traditional media channels you use.

Some sobering statistics:

1. 90% of online consumers trust recommendations from friends.  70% trust unknown users.  Only 14 % trust advertising.
2. 70% of consumer review online ratings before making an online purchase decision.
3. 51% of brick and mortar shoppers check out the product and vendor online before buying.
4. Traffic to online review sites rose 160% in 2010.

Your reputation impacts your search results, too.  A poor online reputation can undermine all the efforts you’ve undertaken to raise your search profile.  The search engine “formulas” put substantial weight on opinion site mentions.  Negative or positive used to be weighted equally, but now they can differentiate positive mentions from negative mentions, and they score accordingly.

You cannot avoid having an online reputation.  You don’t need to be selling online or be a national brand in order for an online reputation to exist for you.

Likewise, you cannot erase your online reputation.  Review sites may let you reply, but rarely do they let you manage the comments received.  In addition, online content really never disappears.  Old content gets cached, and sites like Wayback Machine store pages all the way back to the 1996.

What Can You Do About It?

If you want to try it yourself, it will take some effort to monitor your online reputation.  First, there are so many of these sites popping up.  Second, search engines, even Google, don’t capture all membership-type sites.

Many online consultants provide services to review, report, and/or manage your online reputation.  Services such as BuzzLogic and Radian6 and others.  However, they are pricey.  Prices can range from $250 to $10,000 a month or more for programs.

If you want to do this yourself:

• Check the top 10 or so sites.  Many have a newsfeed service that you can subscribe to when comments about you occur.
• Don’t forget Facebook, Twitter, LinkedIn, etc.
• Technorati is a service that scans blogs for keywords, such as your name, product, or industry.
• Google Alerts will help you scan websites, videos, and some blogs.  Create an alert for when your name is mentioned, and you can receive regular alerts.
• Review the comments and learn from them.  View the information as free marketing and customer service feedback you can use to improve your business, not as complaints you must attack.
• Nearly all sites allow the business to manage the info about them on the site.  You don’t get to manage the comments, but many allow you to respond.
• If the site allows you to respond, be careful.  How you respond is just as important PR as what you do to correct the situation.  All the rules about good PR management apply-try to stay positive, accept blame, and SINCERELY apologize.  Only in rare circumstances should you vary from those guidelines.
• Get your satisfied and delighted customers to post about you.  Don’t let the complaints dominate.  On the other hand, just 5-star ratings from a handful of posters looks suspicious and cast doubt on the independence of the reviewers.

You can also use these tools to keep an eye on your competition.  Knowing what is being said about them can also be valuable competitive information.

Research from McKinsey & Co. shows that just a little training and tweaking of your sales techniques can overcome the dreaded “Your price is too high” obstacle. Step 1: Make the buying process easier for the client.

McKinsey Quarterly offers a free, limited subscription if you’d like to read more of their research.

but you have some work that needs to get done? Governors State has an internship program that seeks paid and unpaid internships for business students and other specialties. If you have marketing, accounting, finance, or management needs that a grad student could fulfill, contact Cynthia Comber at Career Services to discuss your needs.

The University of Nebraska will be bringing its “Recipe to Reality” seminar to Chicago on April 15, 2011. 

This seminar provides entrepreneurs with an understanding of the key topics that need to be considered when they are starting a food manufacturing business.

What will be covered – market research, product development, packaging, labeling, pricing, product market introduction, promotional materials, food safety and legal and business structure issues – a full day of critical information that gives participants valuable insight into the basics of starting their business.

In one day the participants will gain the insights that could take months to research on their own. 

Since its inception in 1989 the program has helped hundreds of individuals achieve their goals and start successful food businesses. 

For more information on the “Recipe to Reality” program in Chicago contact Jill Gifford jgifford1@uni.edu  402-472-2819.

GSU is offering a two Saturday class on QuickBooks. The class is scheduled Saturday, March 12 and 19 from 9 am to 5 pm, in OTS Building Room 107. Prerequisite: Familiarity with Microsoft Windows-based systems. This course is an introduction to QuickBooks Pro 2010. It follows a project-based approach so that students can learn the software by doing.   Basic topics covered:  Starting QuickBooks, Exploring QuickBooks screens and menus, A Brief Review of Accounting Principles, Setting Up a New Company, Working with accounts, Writing checks, Setting up Vendors, Adding Inventory Items, Working with Customers and Receivables, Accounting Cycle and Year End, and Viewing Reports.  The first 5 CenterPoint clients who contact us can attend the class for free. Contact Marlene Lees for more details and to sign up.

The 2010 Global Entrepreneurship Week, November 15th - 19th, was celebrated by 10 million people in 100 countries around the world.  All in all there were 40,000 events and we joined in the fun with several events here at CenterPoint at Governors State University. 

This is the third time we have celebrated Global Entrepreneurship Week and each year our competitions draw lots of entries.  This year we were inundated with entries to the Scavenger Hunt, Guess the Entrepreneur and the Logo competitions.  Winners were announced and prizes given at the CenterPoint Open House which officially ended our week of events. 

Prize Winners were:

• LOGO CONTEST - Charla Hill, Mary Jo Wingerter and Fatimo Kasali

• GUESS THE ENTREPRENEUR – Zelma Evans and Joan Johns Maloney

• SCAVENGER HUNT – Betty Campbell

Additional Prizes went to Omar Muammer; Rachel Recupito; Marc Koumoundouros; Shawanna Beard; Sean Lynch; Latonia Richmond; Ashleigh Hostert and Darshana Gadaira

 For those who want answers – they are posted on the CenterPoint at Governors State University notice board outside our office in C-3300.

We are already planning for Global E Week 2011, and we would like to find ways to link with students overseas so if you have any ideas for events for Global Entrepreneurship Week 2011 let us know. 

CenterPoint Scavenger Hunt Contest

Drop completed entry form at C3300 CenterPoint Hallway entry box no later than Nov 18, 2010. Winners will be notified by phone or e-mail. 

CenterPoint Guess the Entrepreneur Contest

Sign the contest form and drop it in the contest box outside the CenterPoint offices at C3300. Submission deadline is Friday, November 19th at noon.

CenterPoint Logo Contest 

Drop off the completed entry form at C3300 CenterPoint Hallway Entry Box no later than November 18, 2010. Please be sure to include your name, e-mail and phone number. Winners will be notified by phone or e-mail.

Award Winning

Veterans’ Entrepreneurial Boot Camp

CenterPoint at Governors State University

November 17, 2010

Free to Veterans ($25 non Vets)

VIEW SCHEDULE

REGISTER FOR EVENT

VISIT CENTERPOINT WEBSITE

FOR MORE INFORMATION

CALL 708 235-7643

DESIGNED BY VETERANS FOR VETERANS

Governors State University

One University Parkway,

University Park, IL

September 24, 2010, 8:30am-1:00pm, Moraine Business and Conference Center, 708-974-5690

Cost: $50 (Includes light breakfast and lunch)

Come hear from experienced entrepreneurs in the Hospitality and Food Industry about their personal experiences and their lessons learned. Find out what you need to know about starting or developing your business.

Featured Speaker: Tim McEnery, Founder of Cooper’s Hawk Winery and Resaurant.

Also featuring Hilary Burkinshaw, Executive Director of The CenterPoint for Entrepreneurs at Governors State University and Michael O’Shea, Program Coordinator and Instructor of Culinary Arts at Moraine Valley Community College.

Don’t miss out on this exceptional opportunity! Register now!

For more information please contact the Moraine Business and Conference Center at 708-974-5690.

Sponsored by Moraine Valley Community College Workforce Development and Community Services In partnership with CenterPoint at Governors State University.

Start Your Business Successfully!

The Illinois SBDC at CenterPoint, Governors State University is offering its award winning  Entrepreneurs Boot Camp - Saturday, September 25, 2010, 8:30AM to 1:00PM:

Meet expert industry presenters and learn how to make a plan that works, where and how to get the financing you need, how to market your new business on a shoestring budget!   

The $50.00 fee includes a light breakfast will be served,  your choice of 6 fact filled morning sessions and 3 Lunch and Learn panel discussions(boxed lunch included) and a 1 Gig CenterPoint Jump Drive with all presentations, business plan and financial planning templates, useful links and helpful information. 

REGISTER NOW

Space is at a premium so enroll today by visiting  our web site at http://www.centerpointgsu.com/ or calling Marlene at 708-235-7643.

If you’re a retail business or one that serves a local market, there is a free and simple way to add to your arsenal of ways to be found.

Have you used Google maps lately? You’ve probably noticed on the map you can see names of sites. If you click on Search Nearby, red stick pins show up on the maps which indicate various businesses and landmarks. You could be one of those stick pins on the map. Any time someone Googles an area, you show up. Google Places not only provides the map, but each business can provide a customizable listing that pops up when the user clicks on the red pin.

A listing may already exist for you. Google attempts to put one together from info it gathers from the web. If one does exist, you can go in and modify it as you see fit. Check to see if one exists for you, and on the listing you can click on the Business Owner? Button to claim the listing and then modify it. 

It’s simple to set up if one does not already exist. Just go to Google Places and create your listing. Google provides step-by-step tools to create a great listing.The listing can be pretty robust. Not only can you put contact info, hours of operations, etc., but you can almost put a full Yellow Pages sort of ad in there. There’s room for photos, videos, and other information that your customers will find helpful. Logos and brand names work. You can advertise special events. Even insert a printable coupon. The listing can be changed regularly, so you can keep the info up to date and change coupons and add/delete events as needed.Google Places comes with its own analytics, so you can see how many impressions your listing has received, as well as click-throughs.Other search engines, such as Bing Local and Yahoo Local, have similar services. And if you like the results, you can also add Yelp and Foursquare for a full range of geo-listings.  For more info, go to the Google Places Help Center.

Wednesday, September 22, 2010

McCormick Place-West

2301 S. Indiana Avenue, Chicago, IL

The Women’s Business Development Center (WBDC) invites you to the 24th Annual Entrepreneurial Woman’s Conference, the oldest conference and business opportunities fair for women in business in the country, and the premier event for women business owners in the Midwest.

Featuring Mellody Hobson, President, Ariel Investments LLCChair of the Board of Trustees, Ariel Investment Trust in an exclusive interview by Terry Savage

Additional Conference Highlights Include:
 
Women’s Business & Buyers Mart - the nation’s oldest procurement fair featuring over 200 corporations and government agencies committed to doing business with women business owners
 
Corporate Connections - pre-arranged one-on-one meetings between certified WBEs & corporate buyers
 
Women’s Forum Breakfast - where nationally renowned women business owners share their personal stories of success - and the challenges they met along the way
 
Get Down to Business Networking Reception - try your luck at winning a laptop, courtesy of CDW, and two round-trip United Airlines tickets through our raffle

Register today at the special Partner Organization Discounted Price of $200 (includes meals).

Click here to register now!  (Registration price is $275 after August 31, 2010.) 

We hope you will join us at this momentous event!

 For a complete Schedule of Events and to register online please visit http://r20.rs6.net/tn.jsp?et=1103613435549&s=14632&e=00168oPlY8ye8vPGjkvbXE8oZuqVH6QJQTGmQ9jlur-iyYdbvCquoLgDO64PGNj7l5U9g8QYpOOw34JYiEL2pRsZm-jkGfR5MT4ipNS9_s79TI=.

Use an easy, online system to register your newly created jobs

Wondering if the time is right to add the next position to grow your small business? Act now and earn a tax credit.

“There are 500,000 small businesses across Illinois. If every small business was able to create just one additional local, sustainable job, Illinois’ unemployment rate would drop by five percent.” - Governor Pat Quinn

 Silver Lake Golf Course

147th Street & 82nd Avenue

Orland Park, IL 60462

Friday August 27, 2010

Cookout Luncheon - 12:00 pm - Club Room

Golf (Shotgun Start) - 1:30 pm - 3:30 pm - Rolling Hills Course

$25 Donation

For more information about the event or to register for the event

CLICK HERE

Contact Centerpoint at sbdc@govst.edu or 708-534-4929

Job Hunter and Entrepreneur Boot Camp

Thursday, July 8, 2010

10:00 am - 3:00pm

Governors State University

1 University Parkway

University Park, IL 60484

Space is limited. 

Please register at Halverson.House.gov/BootCamp or call 815-726-4998

Click Here to View Event Flyer

Sponsored by Congresswoman Debbie Halvorson

Centerpoint Small Business Development Center

Governors State University

U.S. House of Representatives

Illinois Department of Employment Security

Workforce Investment Boark of Will County

Vulcan Materials Company

United States of America Department of Veterans Affair

5^th Semi ANNUAL AWARD Winning

Veterans’ Entrepreneurial Boot Camp

May 19, 2010

Free to Veterans ($25 non Vets)

VIEW SCHEDULE

REGISTER FOR EVENT

VISIT CENTERPOINT WEBSITE

FOR MORE INFORMATION

CALL (708) 235-7643

DESIGNED BY VETERANS FOR VETERANS

There are a lot of entrepreneurship, career, and personality tests out there. I’ll leave it to you to determine how much credence you want to put in the results. But, this one came up lately, and it purports to have a lot of science behind it. It gives the long-lived “What Color Is Your Parachute?” career counseling series a whole new meaning. Dewey Color Systems claims that it can test your personality on multiple levels based on the sequence in which you choose colors!

Dewey claims to tell you what your strengths and weaknesses are as a leader, CEO, etc.  As an entrepreneur, it might help you indentify your blind spots or what sort of support team you might need to supplement your own skills. It could help you choose a business partner or your next employee. You could even use it to get a quick read on what current employees strengths and weaknesses are or why certain work teams don’t work together so well while others excel. It’s a lot more fun to talk about than those dry Myers-Briggs or Wonderlic tests.

Give it a free try at http://www.deweycolorsystem.org/personality-test.html and leave a comment to let us know what you think of the results. Does it match your perception of yourself? See any use for your business?

Lender Forums are a series of informational sessions designed for commercial lenders, offering presentations and updates from various government financing organizations. Organizations presenting at the forums include:

• U.S. Small Business Administration
  
• Illinois Department of Commerce and Economic Opportunity
  
• Illinois Small Business Development Centers
  
• Certified Development Corporations
  

CenterPoint is hosting its Lenders Forum on April 13, 2010

9 a.m. – 12 noon

Illinois SBDC at Governors State University

(708) 534-4927

Fax – (708) 534 – 1646

Email: rsvp@centerpointgsu.com

1 University Parkway

Governors State University – Hall of Honors

http://www.govst.edu/directions/

Lenders Forum Flyer& Fax/Email Registration Form

Award Winning

Veterans’ Entrepreneurial Boot Camp

Free to Veterans
($25 non Vets)

May 19, 2010

DESIGNED BY VETERANS FOR VETERANS

Learn from the Experts

· Start a New Business / Enhance an Existing One

· Business Plans Why? - Loan Support Programs

· Doing Business With The Government Q & A

· Marketing on a Shoestring - Show Me The Money!

· Cash Flow Management - Networking Opportunities

· Your Business Starts Here - The Right Team

Click Here to Register

www.centerpointgsu.com 708 235-7643

Are you an entrepreneur or do you know one from GSU or CenterPoint who deserves recognition?

Do you provide support to entrepreneurship through services to them or do you champion their endeavors?

CenterPoint and GSU are establishing an Entrepreneurial Hall of Fame, and we invite you to nominate yourself or another deserving entrepreneur to be honored at our first annual Hall of Fame event planned for this summer.

The rules are simple:

• the honoree must have a connection to GSU – alumni, staff, board member, vendor, current student
  
• or client of CenterPoint- and have either been an entrepreneur or someone who has supported entrepreneurship as a service-provider or champion.
  

The enterprise they established can be either a for-profit or non-profit organization. Nominees will be evaluated based on their impact and connection to GSU.

You can nominate yourself or a fellow entrepreneur by completing the simple form at the CenterPoint website.

Whether you nominate yourself or not, we invite you to share in the celebration of entrepreneurship this summer. We will notify you as plans are finalized.

The 2009 numbers are in.   From January to December 2009, CenterPoint sponsored 50 seminars and training programs hosted at Governors State University attracting 655 attendees.   Over 700 clients visited CenterPoint and received nearly 3,500 hours of counseling for developing, financing, growing or improving their enterprise.  Thirty (30) College of Business and Public Administration students and faculty helped both pre start and in business CenterPoint clients get solutions to real world business issues.   Small Businesses are the economic engine of our recovering economy and for 25 years, CenterPoint at Governors State University, has been the solution for small business owners and entrepreneurs looking for answers that help grow, develop, finance and improve their businesses, which in turn leads to significant growth and retention of businesses in the region. During the last 10 years, CenterPoint has counseled over 4,000 small business clients, creating and retaining over 6,000 jobs in the Southland region while providing or securing financing of over $118,000,000 that helped 72 small businesses expand, 84 businesses get started and 19 business acquisitions.   We do this through FREE one on one consulting, counseling, training, student / faculty / client involvement and resource partner development and financial support from the US Small Business Administration and the Illinois Department of Commerce and Economic Opportunity, (DCEO).  CenterPoint at Governors State University is the “preferred destination in the region” for economic development but we are always looking for good ideas that we can incorporate into our programs to help small business owners. Feel free to add your ideas for programs that would help you.

On January 30, 2010, Don Brozek of CenterPoint found himself judging Business Plans, one of the competition categories at a regional conference for Future Business Leaders of America held at Lincolnway West High School.

The conference and competitions attracted 250 high school students and their business class teachers.  The day started with a keynote address from State Senator Debbie Halvorson and continued with breakout sessions on a range of business and career development topics.

FBLA-PBL is the largest business career student organization in the world. It is a national organization which partners with PhI Beta Lambda business honor society to provide a quarter million high school students with the skills needed for careers in business and business-related fields.

After his busy day of judging and chatting to the participants at the conference Don was excited to see so many young people giving up their Saturdays, and getting involved and motivated by the conference events, saying ‘judging by the enthusiasm all around me on Saturday, I am optimistic again about our economic future, and the quality of the business plans was so good I hope we see many of them in CenterPoint ready to start their own businesses”. 

FBLA-PBL’s National Awards Program recognizes and rewards excellence in a broad range of business and career-related areas. Through state-based competition at the spring State Leadership Conferences, students compete in events testing their business knowledge and skills. Top state winners then are eligible to compete for honors at the National Leadership Conference each summer.Competitions ranged from creating and preparing business plans to banking and finance, marketing, management decision making, and website development. Winners advance to state and then national competitions.

Let us know how you feel about encouraging students to get involved in business activities while they are still in High School.

Real World Experience for Students = Big Benefits for Local Companies   Students in GSU’s Management Information Systems class will be participating in the Google Online marketing challenge. Dr. David Green, the class professor said, “I did this with a previous class. It’s very cool. Each student team is given a $200 budget to create a 3-week Google Ads campaign for a small business”. The students compete with other students from around the world to win a trip to Googleplex in Mountain View and in the process they create very innovative campaigns to generate clients and sales for local businesses.  

There are 25 students enrolled in the class so we are looking for 6-10 businesses who would love to work with this highly motivated group of students and their professor to get free marketing help for their business and offer real life experience to future employees.

How could you not want to participate because as Dr David points out, “It’s free advertising for the businesses with the goal of driving traffic to the business website”? The website may either be one that sells products, provides information, or just gets leads for new clients. So if you want to know more, here’s the information for participating businesses:

http://www.google.com/onlinechallenge/businesses.html  

If you want to participate contact us now at info@centerpointgsu.com. We will be working on a first come first served basis on this one.

Make it your resolution this year to become more informed about what it takes to run a business. 

Why?  To say the world is changing rapidly is something of an understatement.  But – hey, the world is changing rapidly, and those changes are especially manifest in the world of work and careers.  My parents anticipated one job in their lifetime, I was told to expect 5 or 6.  Pundits now estimate that today’s college bound youngster could have as many as 20 jobs in their working lives.   

Under these circumstances it may be reasonable to assume that many of the ‘jobs’ in the new economy may not even look and feel like jobs as we currently understand them;  9 -5 in a building, your own cubicle, desk and computer; a salary – benefits!

It’s just as likely that many of these types of jobs will be replaced with ‘opportunities’ for those flexible enough to be able to offer their services on an as needed basis. Possibly to several ‘employers’ at one time.  Working from their own location, with their own cubicle, desk and computer, creating their own salaries and buying their own benefits. 

In other words people who can manage a business called “Me, Enterprises Inc.”.  This new economy will mean more people being   ‘self employed’, or ‘free lancing’. Managing  their career as if it were a business.

Already, the current recession has persuaded many to try entrepreneurship as a viable alternative to employment or a means of enhancing their financial and economic situation.  It looks more and more likely that a significant number of people will be considering the possibility of entrepreneurship at some time in their working lives. 

For those who like to see it in numbers. The current status of small business and entrepreneurship:

The US Small Business Administration, Office of Advocacy, estimates 29.6 million small business owners in the United States. (These businesses currently employ more than half the country’s private sector employees; they hire 40% of the country’s high tech work force and include 52% of home based businesses).

·         African American owned businesses are the fastest growing segment of the small business sector, (US Census Bureau).

·         Women represent on third of those involved in entrepreneurship according to the Global Entrepreneurial Monitor.

·         According to MSNBC Hispanic owned businesses grew at a rate of three times the national average from 1997 – 2002.

·         In 2004, 22% of military veterans were purchasing or starting a new business. (US Census Bureau)

To succeed in this environment will require making the transition from a good idea to a feasible plan of action.  Success will come from understanding the market, market research and market strategy; financial plans break even and cash flow analysis to name but a few.

Whatever your career plan, the advantages of knowing how a business works could make a significant difference to your future.  It may help to add a course in entrepreneurship to your education and training program such as the new one at GSU, Innovation and Entrepreneurship  See MGMT 420

If you are planning your business now, there is plenty of evidence to indicate that success is enhanced through knowledge, attending training programs, getting mentor support, counseling and coaching.  And the good news is that all of that is available from a variety of resources locally.  CenterPoint at Governors State University can help to connect you with all of the services you need for success drawing from local public and private resource providers. 

If you are not in the Chicago southland region you can find out about local services from the US Small Business Administration. 

On December 19, 2009, the President signed the Department of Defense Appropriations Act, 2010 (P.L. 111-118).  This legislation provides an additional $125 million to support approximately $4.5 billion in new 7(a) and 504 loans.  Specifically, these funds are available for the payment of certain 7(a) and 504 loan fees and a higher SBA guaranty on certain 7(a) loans.  

In plain English, this means that the measures put in place last February for supporting small business lending are going beyond their original sell by date of December 2009.  This current extension is good until February 28, 2010 and retains the increased guarantee on some Small Business Administration (SBA) loans of 90% AND the waiving of certain fees on SBA loans.

There will be an immediate effect on loans that were sitting in the loan queues that were established as the initial funding started to run out.  This new appropriation means that loans in the loan queues will be funded in the order that they were approved. SBA announced that they had cleared the SBA 504 loan queue by Christmas Eve so we can look forward to the funding being applied to new SBA applications.

Another piece of legislation, The Jobs for Main Street Act, is currently in process to extend the provisions until September 2010.

For more information on the extended appropriation go to www.sba.gov. 

Got a Biz Idea?

CenterPoint at Governors State University

Presents the

2009/2010 Business Pitch Competition

November 20, 2009 - January 15, 2010

(Phase 1) Present Your Business Executive Summary (Business Pitch) for a chance to Win CA$H, Free Consultation and Supporting Services from CenterPoint.

For more information visit http://www.centerpointgsu.com/documents/.

Call 708-534-4929 or email info@centerpointgsu.com if you have any questions.

CenterPoint at Governors State University thanks all of the attendees and speakers who made Global Entrepreneur Week a success!  Special thank you to:

Art Lubinski, PT, OCS, Rehab In Motion proprietor.  Mr. Lubinski was our “Meet the Entrepreneur” presenter and shared great insight about physical therapy as private practice business.

We also greatly appreciate the following presenters who participated in the Veterans’ Entrepreneurial Boot Camp:

Juli Barcelona (Barcelona Creative Group) , William Hett-Dobricky, Debbie Meyers-Martin (Illinois State Treasurers Office), Jerry Janousek (Phoenix Business Solutions), Peggy Hrindak ( Phoenix Business Solutions), Gary Gardner (Namaste Laboratories), Priscilla Cordero (Accion Chicago), Steve Konkle (United States Small Business Association), Kathryn Humecki (Kathryn Humecki and Associates, LTD), Karyn Vanderwarren (Attorney at Law), Joann Hunigan, Danny White (Big Ol’ Trucker Juice), Marvin Rodas (Semper Fit, Inc), Joe Brown, & Paul Paalberg (First Midwest Bank)!

Please take a moment to visit the websites and patronize the businesses of our CenterPoint & Governors State University supporters.

Global Entrepreneurship Week
November 16 - 20, 2009

Artrepreneur Blog
Monday, November 16

Meet the Entrepreneur
Tuesday, November 17,  6:00 p.m. to 7:30 p.m., Hall of Honors

International Student Mixer
Tuesday, November 17,  4:00 p.m. to 6:00 p.m., Hall of Honors

Veterans’ Enterpreneurial Boot Camp
Wednesday, November 18, 8:00 p.m. to 4:00 p.m., E-Lounge

Logo Contest, Film Competition, & GSU Scavenger Hunt Entry Forms Due
Thursday, November 19, 9:00 a.m. to 5:00 p.m., Hall of Honors

Global Entrepreneurship Week Open House
Pitch Competitions Application Form Due
Friday, November 20, 2:00 p.m. to 4:00 p.m., CenterPoint, Rm 3300

Free Business Clinic All Week!

Get to know GSU & WIN A PRIZE by participating in the CENTERPOINT GSU SCAVENGER HUNT.  Follow the clues, finish the hunt & drop off your answers at the CenterPoint C3300 to win! 

Last day to win: November 19, 2009

GOVERNORS STATE UNIVERSITY STUDENTS

GUESS the LOGOS - WIN a$20 PRIZE

Email your answers to MARLENE LEES or drop them in the box outside of CENTERPOINT

CENTERPOINT is located at GOVERNORS STATE UNIVERSITY - ROOM C3300

The Entrepreneurial Film Contest is just one of the ways CenterPoint is recognizing Global Entrepreneurship Week which takes place November 16-22, 2009.  In this contest Governors State University students are given a list of film descriptions and they must guess the name of the film to win a $20 prize. Email your answers to Marlene Lees .

Award Winning 

Veterans’ Entrepreneurial Boot Camp

Free to Veterans

November 18, 2009

DESIGNED BY VETERANS FOR VETERANS

Learn from the Experts
• Start a New Business / Enhance an Existing One
• Business Plans Why? - Loan Support Programs
• Doing Business With The Government Q & A
• Marketing on a Shoestring - Show Me The Money!
• Cash Flow Management - Networking Opportunities
• Your Business Starts Here - The Right Team
Register Now
www.centerpointgsu.com 708 235-7643

2009 Recovery Act eliminates fees and extends guarantee on SBA Loans. For more information http://www.treas.gov/press/releases/tg58.htm or call CenterPoint directly at 708-534-4929 ext 0

Melvin Flowers is living out his dream as he sits behind the desk in his office at Flowers Insurance Agency, Incorporated, where he is the exclusive agent of the independently owned and operated Allstate Insurance Company.

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Following 9/11 there was a decline in international enrollment at American colleges and universities. In 2006, the annual report on international academic exchange Open Doors 2006 published in November of 2006 by the Institute of International Education (IIE) with support from the US Department of State’s Bureau of Educational and Cultural Affairs, indicated that international enrollments at American colleges and universities are poised to rebound following the declines after 9/11.

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CenterPoint recently welcomed Bob Rakstang as its newest staff member. He brings 35 years of first hand business experience to this new position.

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CenterPoint at Governors State University recently announced that it will offer Small Business Innovation Research (SBIR) resources, a highly competitive program that encourages small businesses to explore their technological potential.

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David Contorno, Owner, Ubuildit-Mokena, applied for and received a grant from CenterPoint Entrepreneurship Center for marketing and advertising professional services for his Ubuildit franchise.

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People who own their own business and are leasing or renting space generally begin at some point to ask themselves the following questions. Why do I have to lease? Why should I keep on paying rent? Wouldn’t it be better to own my own building? But in most small businesses there is limited capital available to finance the acquisition of a building for the business, and even less available for the construction of new property. So how does a small business get a building financed in today’s market?

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CenterPoint is sponsoring a trip to Camp CEO, a project of the Illinois Entrepreneurship Network which includes Milliken University and Southern Illinois University at Carbondale, for two area students this summer.

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If you are considering certifying your business there are a number of factors to be considered. Certification is a business tool and a business may wish to pursue certification in order to receive the benefits of specific small business programs. However, keep in mind that the necessity for business certification is determined by the requirements of your customer, the marketplace, and your businesses objectives. Certification should be pursued for your business because it is a good business decision – not to support a cause or a bureaucracy. Business certification will not cause customers to beat a path to your business door.

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A recent client of the CenterPoint for Entrepreneurs at GSU, Dave Contorno, Owner of UBUILDIT, Mokena, has been named recipient of an Entrepreneurial Excellence Award. He is one of 25 area entrepreneurs to be honored by The Business Ledger at its eighth annual awards presentation on September 19^th.

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Whether you’re establishing a solo medical practice or joining a medical group, beginning a practice related to the health care field requires considerable forethought and attention to detail. In order to be successful, it is imperative that the practitioner understand the business side of the health care industry. Even though it is called a practice, it is a business, complicated by government regulations, and compliance and reliance on both the government and insurance industry for its cash flow.

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Two fee changes, to become effective October 1, 2007, will result in a real decrease in the cost of the 504 program. This is good news for Borrowers. The first fee change impacts the up-front “SBA Guaranty Fee” which from ½ % to zero. This is the one-time fee paid by the BORROWER for a 504 loan. This is NOT the bank fee, which is paid on the first mortgage amount. The SBA Guarantee Fee, currently set at 50 basis points of the net debenture, is being eliminated from all debenture pricing for all loans that are approved in the new fiscal year.

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As you apply for your Patriot Express loan The Centerpoint for Entrepreneurs at GSU is available to assist you in taking your business idea from concept to reality. CenterPoint’s Small Business Development Center will provide you, at no cost, professional assistance on:

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If you are a veteran or member of the military community with a desire to establish, or expand a small business, the U.S. Small Business Administration and its resource partners have designed a program, the Patriot Express Initiative that can help you. The new program provides assistance with counseling and training, loans, contracting assistance and disaster recovery. Eligible military community members include:

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The Centerpoint for Entrepreneurs at Governors State University has partnered with Great Lakes Bank to assist Blue Island businesses in benefiting from the Blue Island Development Loan Fund. Great Lakes Bank has pledged $5 million dollars to facilitate investment in Blue Island’s revitalization efforts. The funds will be used specifically for the rehabilitation of commercial buildings and the establishment of new businesses in the Western Avenue shopping district.

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