1 Michigan Small Business Development Center 2013 Annual Report
2 2013 ADVISORY BOARD Keith Brophy, Board Chair Ideomed, Inc. Jane Sherzer, Board Vice Chair Summit Community Bank Jim Baker Michigan Technological University Tom Donaldson MI-SBDC/Lansing Community College Dustin Frigy Flint PTAC Chuck Hadden Michigan Manufacturers Association Chris Holman Greater Lansing Business Monthly Richard King MI-SBDC/Eastern Michigan University Jennifer Kluge Corp! Magazine Angela LeFevre-Welke Island Airways Carol Lopucki State Director, MI-SBDC Chris Peterson Michigan State University Product Center Christine Quinn Workforce Development Agency - State of MI Skip Simms Ann Arbor SPARK Jerry Singh RTI Laboratories Paula Sorrell Michigan Economic Development Corporation Brian Picarazzi U.S. Small Business Administration MISSION STATEMENT The Michigan Small Business Development Center (MI-SBDC) enhances Michigan s economic well-being by providing counseling, training, research and advocacy for new ventures, existing small businesses and innovative technology companies. With offices statewide, the MI-SBDC positively impacts the economy by strengthening existing companies, creating new jobs, retaining existing jobs, and assisting companies in defining their path to success.
3 The Michigan Small Business Development Center (MI-SBDC) is pleased to report another successful year serving our state s entrepreneurs and small business owners. Through strategic collaboration with our hosts and partner organizations, the MI-SBDC was given many opportunities to engage in one-on-one business counseling, business education and training, information based planning and technology commercialization services. We re proud to have a diverse array of talent within the MI-SBDC network to match the needs of Michigan s many industries. From start-ups to growth companies, MI-SBDC consultants remain equipped with the tools and expertise to assist small businesses. We d like you to join us in celebrating the 11,889 small businesses we served in 2013, resulting in 2,278 new jobs, 328 new business starts, and over $211,056,000 in capital formation! The year 2013 also brought many new and exciting changes for the MI-SBDC, most predominantly the decision to drop the letter T from our name. In 2002 we boldly sought the T designation by building a statewide technology commercialization assistance program. Over the past 11 years we have become a critical part of Michigan s entrepreneurial ecosystem, managing the state s Emerging Technologies Fund, Business Accelerator Fund, assisting business plan competitions and partnering with University tech transfer offices, state SmartZones and Incubators. Those in the technology commercialization space know us well; there will be no change in those strong partnerships. When the Association of Small Business Development Centers created a new national brand, communicating that we are a united network of 63 centers across the country, it was a great opportunity. Because nationally there are fewer than a dozen commercialization accredited states, this new logo does not include the formal T. The MI-SBDC decided to move forward and adopt the national branding. We remain a technologyaccredited state and now simply add that as a tag line. We hope you enjoy our new branding as much as we do. On behalf of our entire network, I d like to extend a huge thanks to the talented, innovative, and hardworking small business owners who choose to stay in Michigan, and choose to work with the MI-SBDC. It is truly an honor to assist you as you make a lasting impact on this great state. We re proud to close out another successful year and look forward to the many opportunities ahead! Carol Lopucki State Director, MI-SBDC TABLE OF CONTENTS Stakeholder Comments Economic Impact Technology Team Highlights Best Small Business Awards Regional Highlights Capital 7 I-69 Trade Corridor 8 Great Lakes Bay 9 Greater Washtenaw 10 Mid Michigan 11 Northeast Michigan 12 Northwest Michigan 13 Southwest Michigan 14 Southeast Michigan 15 Upper Peninsula 17 West Michigan 18
4 Rick Snyder, Governor of Michigan Small businesses are a key driver of Michigan s comeback. Our continued focus is on creating an environment of entrepreneurship and innovation in which small businesses can start, grow and thrive. The Michigan Small Business Development Center is a valued partner, offering critical tools and services that help to ensure the success of small-business owners. I am proud that Michigan can provide such a great resource that serves small-business owners and energizes our economy. Throughout 2013 the U.S. Small Business Administration (SBA) has diligently worked to aid, counsel, assist and protect the interests of small businesses. Our partnership with the MI-SBDC allows us to better serve entrepreneurs, and together we are able to offer access to capital, education and counseling services, and federal procurement opportunities. These resources, combined with vast entrepreneurial talent, have truly set Michigan s small business community apart. Funded in part through a cooperative agreement with the U.S. Small Business Administration Gerald Moore, Michigan District Director Michael Finney, CEO MEDC Recognizing that small businesses are the primary job creation engine in the state, economic gardening now defines MEDC operations with programs that offer a greatly expanded range of services to help Michigan small businesses and entrepreneurs gain access to capital, commercialization assistance, and high-impact connections with suppliers and customers. The Michigan Small Business Development Center is one of the MEDC s key small business partners and strategic service providers, and we could not effectively execute our mission without the excellent partnership we enjoy with the MI-SBDC. Grand Valley State University is proud to host the MI-SBDC State Headquarters and West Michigan Region offices. We recognize that the level of counseling, training, market research, and technology commercialization assistance they are able to provide makes them indespensable resources to the entire state. We are honored to partner with the MI-SBDC as they strengthen small businesses both locally and state-wide. John Reifel, Interim Dean Seidman College of Business 3
5 2013 ECONOMIC IMPACT The MI-SBDC strives to be an invaluable resource for Michigan small business owners, providing expertise in business counseling, education and training workshops, market research, technology commercialization and a variety of other services. The figures below show what our regional offices and clients around the state have accomplished together this year. The figures are presented in the aggregate, but are available by Congressional District upon request. 5,574 BUSINESSES COUNSELED IN MICHIGAN 6,315 BUSINESS OWNERS ATTENDED TRAINING 11,889 TOTAL BUSINESSES SERVED 328 NEW BUSINESSES 2,278 WERE OPENED NEW JOBS CREATED 3,337 STARTUPS AND 2,237 EXISTING BUSINESSES WERE COUNSELED 2,355 WERE FEMALE-OWNED 502 WERE VETERAN-OWNED 1,109 WERE MINORITY-OWNED CREATING $211,056,546 IN 4
6 TECHNOLOGY TEAM 476 BUSINESSES SERVED JOBS CREATED $44,500,247 The Michigan Small Business Development Center s (MI-SBDC) Technology Team works to help entrepreneurs bridge the gap between technology development and commercialization. During 2013 the Tech Team provided mandatory coaching sessions for the companies presenting at the Michigan Growth Capital Symposium, Accelerate Michigan Innovation Competition and the MichBio Expo Emerging Company Showcase. The Tech Team also increased collaborative activity with Michigan s research universities to support companies commercializing university technology through regular client meetings and participation on the Michigan Translational Research and Commercialization evaluation committee. The team also supported Michigan s business incubator network by serving on the board of the Michigan Business Incubator Association and providing consulting and training to Michigan s new and existing incubator management and staff. Additionally, the Tech Team continued ongoing partnerships with Michigan s critical technology commercialization organizations including the Lakeshore Advantage, TechTown, OU Inc., New Enterprise Forum, Michigan Business Incubator Association, Ann Arbor SPARK, Southwest Michigan Innovation Center, the Biosciences Research and Commercialization Center and Next Energy. The MI-SBDC also managed two important funds to support Michigan s technology commercialization initiatives: BUSINESS ACCELERATOR FUND Awarded $912,345 to Michigan s business accelerators to provide specialized services to 38 companies. Services included product engineering, intellectual property assistance, software development, technology development, prototyping, technology validation, and niche specific marketing services. EMERGING TECHNOLOGIES FUND Awarded 32 SBIR/STTR matching awards to 28 companies for a total of $1,490,398. These matching dollars support commercialization for $14,634,657 in federal SBIR/STTR funding and leveraged $9,616,129 in third party commercialization funding. The Technology Team is a collaboration between the Michigan Economic Development Corporation (MEDC) and the MI-SBDC. TETRA DISCOVERY PARTNERS, LLC GRAND RAPIDS, MI Dr. Gurney started building Tetra in November Tetra is working on the development of three new drugs targeted at improving treatments for Alzheimer s, depression and traumatic brain injuries. After he submitted his first grant proposal to the National Institute for Health (NIH) he realized he needed some guidance on making the transition from the world of education and corporate America to living the dream of being self-employed. Gurney was referred to the MI-SBDC Tech Team, who assisted him in successfully receiveing a significant grant from the Michigan Emerging Technology Fund (METF). Since then, Tetra has also been awarded a Phase I NIH SBIR grant, which allowed them to further develop their product, resulting in additional Phase II SBIR funding. Gurney s innovative technology and the SBDC s commercialization assistance have set Tetra up for continued growth with a global impact.
7 2013 BEST SMALL BUSINESSES Each year the MI-SBDC honors 12 outstanding companies chosen from the thousands of small businesses consulted during the year. The Best Small Business award winners have demonstrated both economic success and a dedication to their local communities. In addition, each business has benefited from a strong relationship with the SBDC and the many services we are able to offer. Capital: P Squared Wine Bar & Bistro I-69 Trade Corridor: Pure Bliss Salon and Spa Great Lakes Bay: Air Advantage Greater Washtenaw: Leaps and Bounds Therapy Services, PLLC Mid Michigan: Sears Appliance & Hardware Store Northeast Michigan: AlpineWEB Northwest Michigan: Cherry Capital Foods Southwest Michigan: Marshall Plastic Film Southeast Michigan - Wayne County: Annointed Construction, LLC Southeast Michigan - Oakland County: A Pass Educational Group, LLC Upper Peninsula: Jim s Music West Michigan: Starbuck Machining, Inc. 6
8 CAPITAL REGION Hosted by Lansing Community College 468 BUSINESSES SERVED 32 BUSINESSES STARTED 931 ATTENDED TRAINING 131 JOBS CREATED $5,440,761 strategies for growth and long term sustainability. New relationships and new collaborations helped to extend the reach of the Capital Region SBDC in A new Business Resource Center was established at Delta Township Library, complemented by on-site SBDC workshops and counseling. A collaboration with the new Allen Market Place food hub in Lansing has introduced local food entrepreneurs to SBDC services, and several workshops are in the planning stages. Additionally, the Capital Region SBDC hired a part-time Growth Group consultant to assist established companies to develop The Capital Region continued to develop relationships with partners in the region such as LEAP, the Greater Lansing Chamber of Commerce, The MARC, AARP and the Capital Area District Library to ensure entrepreneurs receive the best resources available. The Capital Region SBDC helped business owners who were denied loans by traditional commercial lenders find startup and growth capital through several micro lenders in the area. Using a more targeted approach to provide technical assistance to small business borrowers, there was a significant increase in micro-loan activity in the region during Of particular note, the Capital Region SBDC office received high marks on the annual client survey, with an overall 97.7% customer satisfaction rate. This represented a slight increase over a 94.9% rate in P SQUARED WINE BAR & BISTRO LANSING, MI After embarking on a road trip through Michigan s wine country, both Paul Bussard and Paul Fox returned to the Lansing-area with the desire to open Downtown Lansing s first wine bar. The first step in making their dream a reality? Connecting with the Capital Region Small Business Development Center. Consultant Laurie Lonsdorf met with Fox and Bussard to review their business plan, develop cash flow projections, and connect them with a lender to help finance their business. P Squared is located in Downtown Lansing s popular Washington Square and offers locals a comfortable but sophisticated place to go to enjoy a glass of wine. So far P Squared has created over 15 jobs and has been a valuable addition to the Downtown Lansing area. Both owners look forward to additional involvement with the Lansing community and are excited about the continued growth of their business.
9 PURE BLISS SALON AND SPA FLINT, MI In late 2011, Melissa Withey learned that the salon and spa where she worked was going to close, putting her livelihood in jeopardy, as well as the livelihoods of 33 other families. As Melissa talked with her husband Randy about what to do next, the pair became inspired by the vision of owning their own business. While still exploring the idea of starting their own salon, the Witheys contacted the I-69 Trade Corridor Region SBDC, hosted by Kettering University. Senior Business Consultant Harry Blecker began meeting with the pair to assess feasibility, develop a business plan and create cash flow projections. Motivated by the mission of saving the jobs of their colleagues and friends, the Witheys quickly found a new salon location to lease. Pure Bliss Salon and Spa officially launched in January of 2012, and was able to retain 25 jobs. They have added an additional 30 positions since opening and continue to grow. I-69 TRADE CORRIDOR REGION Hosted by Kettering University The I-69 Trade Corridor Region, hosted by Kettering University in Flint, served business owners and entrepreneurs in Genesee, Lapeer, Shiawassee and St. Clair counties in Throughout 2013 the region continued to advocate, collaborate, and strengthen relationships with regional, state, and national business development organizations resulting in 44 direct client referrals in Key partners included the Michigan Emerging 318 BUSINESSES SERVED 20 BUSINESSES STARTED 755 ATTENDED TRAINING 222 JOBS CREATED $11,880,288 Manufacturing Skills Alliance, Baker College Business Division Community Advisory Board, Genesee Area Skill Center Entrepreneurship Advisory Board, Michigan Business Incubator Association, Shiawassee County REV Incubator, Goodwill Industries Workforce Development, Economic Growth Alliance, Genesee eteam, SBA, PTAC, SCORE, EDC s, lenders, local and regional Chambers of Commerce, educational institutions, MI Works, STEP, Veteran s Business Resource Center, and various local community service organizations. The I-69 Trade Corridor Region continued to provide support and assistance to Kettering University student innovation and entrepreneurship opportunities, serving as a judge for the twice yearly KEEN/EAU Impact pitch contest; engaging with undergrad and grad BUSN courses; serving on the Advisory Board of the Kettering University Council for Culminating Undergraduate Experience (CCUE); being a reviewer for e-ship thesis proposals submitted by students; and facilitating connections for regional client businesses to engage student teams in professional service projects and/or sponsored research. 8
10 GREAT LAKES BAY REGION Hosted by Delta College 433 BUSINESSES SERVED 19 BUSINESSES STARTED 444 ATTENDED TRAINING 148 JOBS CREATED $4,577,329 The Great Lakes Bay Region continues to collaborate and assist valued partners across the region. Michigan Works offices in Standish, Bay City, Midland, and Saginaw continue to provide easy offcampus access to computer and business resource materials for entrepreneurs and small business owners. Library staff across the region continue to facilitate research access and resources during the Starting a Small Business seminars that were held throughout the region. In 2013, information presented during 31 seminars encouraged 387 aspiring attendees. Regional host Delta College and the MidMichigan Innovation Center co-sponsored a Boost event that provided eighteen entrepreneurs the opportunity to pitch their concept to an audience of over 100 individuals. Delta College personnel, students and community representatives were inspired by the breadth of ideas and working prototypes in various stages of commercialization. Throughout 2013 the Great Lakes Bay Region had the opportunity to share many client success stories with the local media. Strategic efforts to identify, research, and process these good news stories enables the regional center to promote start up and growth efforts and results. These stories also serve as a way for the SBDC to showcase the variety of enterprises in the region and reaffirm the importance of small business to the local economy. AIR ADVANTAGE FRANKENMUTH, MI Scott Zimmer began Air Advantage in 2002 as a high-speed Internet service provider in the rural thumb area of Michigan. Technology has changed considerably since 2002, and Air Advantage currently operates 170 Internet towers serving over 8,000 customers. Each day we re connecting rural schools, hospitals, farms, homes, and businesses to a vital Internet service that previously wasn t available, commented Zimmer. We re making sure that individuals in this area have reliable Internet access. The SBDC helped Zimmer and his team develop a growth strategy, design marketing plans, and explore new customer bases. Air Advantage currently employs 45 people in the Great Lakes Bay Region, and is well-positioned for continued growth.
11 LEAPS AND BOUNDS THERAPY SERVICES, PLLC WHITMORE LAKE, MI Leaps and Bounds began in 2003 after Alison Barnett recognized a need for holistic pediatric therapy services. Barnett, a physical therapist, started her business with two employees an occupational therapist and a speech therapist. Since 2003 Leaps and Bounds has steadily grown, and has made two moves to larger buildings. Alison also purchased Brighton Physical Therapy in Brighton. She began to work with the SBDC finance specialists in 2012 to put together a loan package and approach a bank for additional financing. After receiving a line of credit, Alison has opened a second Leaps and Bounds location in Howell. She continues to work with the MI-SBDC and is beginning to explore the idea of franchising. Ultimately, the company s success is driven by their dedication to their clients. Barnett comments that, having such a large impact on families and improving people s quality of life is why we do what we do at Leaps and Bounds. GREATER WASHTENAW REGION Hosted by Washtenaw Community College During 2013 the Greater Washtenaw Region opened a Service Center at the Jackson Area Chamber of Commerce, with affiliates at the Hillsdale County Chamber of Commerce and Lenawee Now. Community response has been overwhelmingly positive, with excellent media coverage. The region also worked with other for-credit and noncredit departments at host Washtenaw Community College on the creation of an Entrepreneurship Center 592 BUSINESSES SERVED 20 BUSINESSES STARTED 116 ATTENDED TRAINING 325 JOBS CREATED $18,545,148 on campus to serve students and the community. The team at the Greater Washtenaw Region SBDC continued to engage heavily with the State Trade Export Program (STEP), providing area business-owners with exporting assistance. The Greater Washtenaw SBDC successfully engaged with a variety of small businesses through regular training sessions and one-on-one counseling. The MI-SBDC clients in the Greater Washtenaw area were able to create 325 new jobs in 2013, significantly impacting the local economy. The Greater Washtenaw Region is also excited to celebrate long-time client and former regional best small business Aubree s Pizzeria and Grill, who has been recognized as a Michigan 50 to Watch Company after opening their second franchise location, in Howell. 10
12 MID MICHIGAN REGION Hosted by Mid Michigan Community College 292 BUSINESSES SERVED 21 BUSINESSES STARTED 38 ATTENDED TRAINING 48 JOBS CREATED $6,219,012 The Mid Michigan Small Business Development Center (SBDC) found new and valuable ways to increase collaboration with a variety of partners and business support organizations in Notably, a new SBDC presence was established at the Central Michigan University Research Corporation (CMURC). Additionally, the SBDC was able to deepen relationships with local manufacturers in the region, in part due to involvement with regional host Mid Michigan Community College s (MMCC) National Science Foundation Plastics Grant initiatives. The Mid Michigan SBDC continued to foster relationships with the Saginaw Chippewa Indian Tribe s non-gaming economic development arm, Migizi, to provide access to SBDC resources to aid in Tribal business development. Other areas of involvement included support of Central Michigan University s New Venture Competition, which awarded over $60k last year to a variety of student-led businesses. The Mid Michigan SBDC was also able to participate in a variety of opportunities to increase programmatic awareness. Tony Fox, Regional Director, was involved in two television productions developed by local Public Broadcasting Service member affiliate, WCMU. Fox participated in both a documentary which highlighted solo-entrepreneurs, and served as a subject matter expert on a live call-in show that fielded small business questions. SEARS APPLIANCE & HARDWARE STORE BIG RAPIDS, MI After successfully running a Sears Hometown store for five years, the Scott and Tammy Weaver were presented with the opportunity to expand their product line and change their franchise model to include hardware and tools that would be useful to their customers. As Scott and Tammy worked to figure out the logistics of expanding their store, they connected with the Mid Michigan Region Small Business Development Center. SBDC consultant Marie Elliott worked with the Weavers to develop financial projections and determine if the expansion was feasible. By expanding their store, Tammy and Scott have been able to better serve their existing clientele and have drawn in new customers with their extended product line. The Weavers now employ four full time and six part time employees.
13 ALPINEWEB GAYLORD, MI Josh Kent began AlpineWEB in 2004 as a solution to Northeast Michigan s website hosting needs. He and his website design and development team provide a variety of services to help their clients have an effective online presence. Kent has also started two more web-based businesses: funfix.com and sunfrogshirts.com. Kent worked with the Northeast Michigan Region SBDC to develop a growth strategy for his business, and has since seen a significant increase in sales. Sunfrogshirts.com, in particular, has recently gained a significant amount of momentum. Kent s innovative approach to t-shirt design allows customers to submit a t-shirt design online and have it screen-printed to order on a t-shirt or sweatshirt. All of Kent s businesses are headquartered in Gaylord, MI. He is able to employ 22 people and is actively recruiting talent to the Northeast Michigan region. As sales continue to increase, Kent regularly meets with the Michigan SBDC to develop marketing strategies and growth tactics. The SBDC participates in the Northeast Region community through a variety of partnerships and outreach opportunties. In 2013 the NE Region SBDC continued to support the economic development centers in the region by providing counseling, presentations and data. Additionally, the SBDC facilitated the strategic planning process for the newly formed Lewiston DDA, resulting in an action plan and better relationship building with the local townships and chamber of commerce. The SBDC continues to participate in an advisory capacity on boards for the Gaylord University Center and Target Alpena. NORTHEAST MICHIGAN REGION Hosted by Michigan Works! 404 BUSINESSES SERVED 33 BUSINESSES STARTED 41 ATTENDED TRAINING 188 JOBS CREATED $10,261,436 Michigan Works! continues to be a strong host, providing the use of space, resources and partnership opportunities to promote job creation. The NE Region SBDC is directly engaged with the MEDC on various levels, works with PTAC to continue develping new markets for area businesses, and closely supports financial institutions, like Northern Initiatives, designed for businesses that are not traditionally lendable. The NE Region SBDC succesfully partnered with the Ogemaw County Economic Development Corporation and Michigan Works! to present the Venture Start Series to over 30 businesses. Both of Google s Get Your Business Online and Grow Your Business Online presentations were delivered in West Branch, Alpena and Gaylord with nearly 50 businesses participating. The NE Region SBDC participated in the Region 3 Economic Summit and was able to provide clients for part of the program. The NE Region SBDC continues to be a valuable resource to entrepreneurs in Northeast Michigan. 12
14 NORTHWEST MICHIGAN REGION Hosted by the Northwest Michigan Council of Governments 282 BUSINESSES SERVED 23 BUSINESSES STARTED 224 ATTENDED TRAINING 103 JOBS CREATED $8,534,079 Let Our Resources Work For You. Workforce Business Community During 2013, the Northwest Michigan SBDC served an essential role in the strengthening of existing enterprises and providing critical assistance to new businesses across the ten-county area. Through engaging successful businesses owners in our training and communications, the SBDC brought increased resources and practical experience to its clients. Partnerships with area Chambers of Commerce, Northwestern Michigan College, the Manistee Alliance for Economic Success, The Fifth Third Foundation, Northwest Michigan Works! Business Services and our host organization, Northwest Michigan Council of Governments, proved invaluable in offering the highest level of business services with efficiency and profound impact. A new private sector partnership with Charter Business allowed 200 businesses to receive free training on social media and personal branding at the newly launched Business Owner Speaker Series (BOSS). SBDC staff were engaged in the planning of and/or participating in many regional activities supporting small businesses including the Proud to Manufacture in Michigan Conference, Encore Entrepreneurs with AARP and the SBA, Meet the Lenders with SCORE, the Regional Entrepreneurship Collaborative, the Regional 2020 Talent Summit, the Northwest Michigan Small Farm Conference, Traverse City Area Chamber of Commerce Small Business Celebration, and others. The regional staff members are proud to see the significant impact of the SBDC on our local communities. CHERRY CAPITAL FOODS TRAVERSE CITY, MI Cherry Capital Foods is a unique food distributor committed to working with farmers, growers and producers both locally and regionally in the state of Michigan. Cherry Capital Foods emphasis on Michigan food sources fosters the local agriculture industry and economy. The Northwest Michigan Region SBDC has a long and successful working relationship with Cherry Capital Foods. Over the past five years the Northwest Michigan Region SBDC has assisted Cherry Capital Foods in its growth strategy and has provided regular one-on-one business counseling. During this time, Cherry Capital Foods has grown from 4 to 25 full-time employees and has recently purchased two small distributors, allowing them to continue expanding their operations. Significant growth is expected in 2014, as Cherry Capital Foods is planning on moving to a new location in Traverse City that will double their current square footage. The new facility will also be home to Northern Michigan s first food innovation center.
15 MARSHALL PLASTIC FILM MARTIN, MI Marshall Plastic Film has been a vital part of their community for over 40 years. As largest private employer in the village of Martin, Marshall Plastic Film has a significant impact not only on the lives of its 53 employees, but also on the entire local economy. This company has a rich history as one of Southwest Michigan s leading plastics manufacturers, serving the automotive, industrial packaging, liquid storage and pharmaceutical industries. Owners John Roggow, Cheryl Roggow, and Ann Jameson began working with the Southwest Michigan SBDC in 2012 to explore the possibility of buying the company out from one of its primary owners, A. Marshall Forsberg. Ann and the Roggows were able to successfully purchase the company, and have since worked with the SBDC to complete a Strategic Needs Assessment and financial analysis, followed by strategic planning. Haworth College of Business SOUTHWEST MICHIGAN REGION Hosted by Western Michigan University Community engagement in Southwest Michigan expanded in The SBA Meet the Lender and Team SBA Financing Roundtables were held in both Kalamazoo and Benton Harbor and attracted participants throughout the region. Participation was significantly greater than in past years and the number of client engagements resulting in capital formation also increased. Of special note, the SBA Meet the Lender session held in Benton Harbor resulted in the capital formation of $10 million for the new Hilton Garden Inn for Benton Township as well as significant job creation. 548 BUSINESSES SERVED 41 BUSINESSES STARTED 454 ATTENDED TRAINING 151 JOBS CREATED $30,310,589 A critical organizational strategy of building partner relationships was developed through the alignment of consultant expertise and market need. The Michigan Economic Development Corporation requested assistance from SBDC business consultant John Schmitt in creating the 2013 Mobile Cuisine Start Up grant program. The MEDC committed $100,000 to the grant program being awarded in August, John continues to work with 7 of the grant recipients. Leveraging the national emphasis to increase exports and to enhance the services being provided to small businesses, the Southwest Michigan region made a significant commitment to training. In support of the Michigan Economic Development Corporation STEP program, the business consultants in Southwest Michigan have all passed either the NASBITE International Certification for Exporting and/or the SBA basic and intermediate export certification programs. 14
16 SOUTHEAST MICHIGAN REGION Hosted by Eastern Michigan University 971 BUSINESSES SERVED 41 BUSINESSES STARTED 1889 ATTENDED TRAINING JOBS CREATED $64,550,015 The Southeast Region s 2013 counsel and training programs had great success in helping clients achieve strong results in the primary goal areas of business creation, business growth, job creation and successful access to capital. The accompanying chart shows those results which combines the impact of the Small Business Team, the Growth Group and the Technology Commercialization Team in our region. It is important to acknowledge the great work of the Region staff, especially those who showed excellent performance in what were important new roles. The Oakland County Business Center and One Stop Shop deserves special mention as new Director Greg Doyle led their team to record results. Their team-based service approach with consultants Cathie Abad, Erick Phillips and Julie Oldham with support from Business Analyst Karen Deaver-Lear greatly enhanced the client support in that center. The remaining offices had new staff roles that contributed to growth as well. Karen Bitterle took on the Director role at the Schoolcraft College Business Development Center when Tammy Thomson was promoted from SBDC Director to Director of the entire center. Wendy Richardson joined the Macomb County center and successfully took on the bulk of the core consulting duties in her first year. The Detroit team saw the promotion of Latifa Bradwell to Sr. Consultant with Export Team Certification and Sean Gray to full consultant. ANNOINTED CONSTRUCTION, LLC DETROIT, MI Annointed Construction is a Detroit-based general contracting firm providing residential construction property preservation services to federal and local agencies, as well as private homeowners. Owner David Fouche worked with the SBDC consultant Latifa Bradwell to organize his financial data, determine financial projections and develop a loan package. David then used this loan package to successfully receive a line of credit from the Detroit Development Fund, allowing him to continue growing his business. Annointed Construction currently has 5 full time employees and has expanded their team of contract managers by 50%. They have also increased their sub-contract base by 18% over the past year, giving them the opportunity to do business with many other local companies.
17 A PASS EDUCATIONAL GROUP, LLC FARMINGTON HILLS, MI A Pass Educational Group designs educational content including instructional materials, assessments, and curriculums, and also provides editing and translation services. By utilizing technology to create a global workplace, A Pass Educational Group, LLC has cultivated employee talent from around the world. Owner Andrew Pass currently employs 10 full time employees and over 700 contractors from across the globe. Pass began to work with the Oakland County SBDC in The SBDC helped him develop a strategy to move his million-dollar business into a permanent office space. Together Pass and the MI-SBDC completed a Strategic Needs Assessment, helping determine important next steps for continued growth, including developing official quality measures, as well as project management metrics, schedules and databases. Pass s innovation and relationship with the SBDC has put A Pass Educational Group, LLC on the path for long-term growth and success. The Region s centers also provided special support to several key economic development programs in our area. During the year, one or more center staff: Sat on the Detroit Business Support Network steering committee which helps to streamline access to Detroit-based business assistance programs. Supported the Detroit Food and Agriculture Network as it moved from being a Detroit only initiative to a tri-county effort. This program seeks to help food processing companies achieve significant growth. Created a special Farmers Market Vendor Training program in Oakland County to enhance the growth of high potential entrepreneurs that are utilizing Farmers Markets to get their start. Served on the Access Growth Center s Immigrant Entrepreneur Program advisory board and provide special training to that audience along with streamlined access to counsel. Provided special training to the Detroit D2D Suppliers Capacity Building Program participants and will facilitate a special ongoing business roundtable for those business throughout Served on the initial planning and recruitment committee that helped launch the Goldman Sachs 10,000 Small Business Program in Detroit. Overall, we are proud of the contributions the SBDC program made to growth in the Region during
18 UPPER PENINSULA REGION Hosted by Michigan Works! 594 BUSINESSES SERVED 41 BUSINESSES STARTED 41 ATTENDED TRAINING 207 JOBS CREATED $10,505,227 Throughout 2013 the Upper Peninsula Region SBDC continued to engage with local communities on several levels, including regional economic development efforts through partnerships with Economic Development Agencies, lenders, DDA s, SMART Zones, Regional Planning Commissions, Chambers of Commerce, Colleges and Universities, Upper Peninsula Community Development Council and the Michigan Economic Development Corporation. The region has increased its presence in Houghton County through an extended partnership with the Keweenaw Economic Development Alliance. They continue to work with Michigan Tech University through Smart Start, Smart Zone and other technology initiatives. Current and prospective business owners can access SBDC services across the region with both face to face meetings and online webinars, providing accessible and timely consultation across the region. The U.P. Region is working in close partnership with its host Michigan Works! on supporting the Statewide Regional Prosperity Initiative. Additionally, the region completed a series of business plan and financing workshops with the Alger County Chamber of Commerce, servicing approximately 25 businesses. The U.P. Region also supported Michigan Works! with the Governor s FIRST Robotics program, provided workshops to Bay de Noc Community College business students and co-hosted the Annual Governor s Luncheon at the U.P. State Fair. JIM S MUSIC ESCANABA, MI When Jim Dombrowski learned that the music store he was teaching at was going to close, he and his wife Karen decided to take the opportunity to open their own store. Over the past 28 years Jim s Music has established itself as one of the Upper Peninsula s premier music stores for instrument sales, lessons and repairs. As a result, the business has experienced significant growth, allowing them to open stores in Marquette, Iron Mountain, and Green Bay, employing a total of 24 people. Both Jim and Karen agree that an important factor in their business s consistent growth is their work with the Upper Peninsula Region SBDC. The Dombrowskis began working with the SBDC in Since that first meeting, Jim s Music has consistently worked with the Upper Peninsula Region SBDC to develop internal control procedures, analyze budgets, create cash flow reports, work through vendor credit negotiations and hire new staff as the business continues to grow.
19 STARBUCK MACHINING HOLLAND, MI When Rich Starbuck contacted the West Michigan Region SBDC for help with a business plan in 2000, he didn t know he d be entering a working relationship that would last through all stages of his business s growth. Starbuck and his SBDC consultant worked on a business plan that would allow him to receive the financing needed to purchase an existing machine shop s assets and open his own business. Since this Holland, MI business opened its doors in 2002, Rich Starbuck and his son Aaron have grown Starbuck Machining from six employees to twenty-seven, and are constantly seeing an increase in sales. Starbuck Machining manufactures products for the agriculture, aquatic, automotive, electronics, security and oil industries, and is a government sub-contractor of military armor. The Starbucks credit their business s success to their consistent work with the Michigan SBDC, as well as to their team of employees. WEST MICHIGAN REGION Hosted by Grand Valley State University Throughout 2013 the West Michigan Region continued to develop strategic partnerships in the area, allowing them to provide services to a wide variety of small business owners and entrepreneurs. The West Michigan Team is engaged with the four major chambers of commerce in the region, as well as the smaller chambers. SBDC consultants are also very active in providing advisory hours and teaching workshops at Start Garden, a West Michigan-based incubator. 672 BUSINESSES SERVED 37 BUSINESSES STARTED 848 ATTENDED TRAINING JOBS CREATED $40,232,662 Regional Director Dante Villarreal and the SBDC Tech Team have been collaborating with Spectrum Innovations, a department within Spectrum Health Group, to look at opportunities for commercializing the health technology that is being developed there. Additionally, the region was involved with the coordination and delivery of World Trade Week 2013, connecting entrepreneurs with the international tools available at the SBDC for exporting clients. The West Michigan Region office delivered several International SEO Reports and assisted in developing strategies for exporting with these companies as well. By continually developing the depth and breadth of their partnerships and services, the West Michigan region successfully engaged with both new and long-term clients. The region is pleased to close out 2013 having created a significant impact on the West Michigan area. 18
20 Statewide host of the Michigan SBDC network Funded in part through a cooperative agreement with the U.S. Small Business Administration
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