New Ventures Center: A Regional Resource for Business Incubation. . .

Business incubation catalyzes the process of starting and growing companies. A proven model, it provides entrepreneurs with the expertise, networks and tools they need to make their ventures successful. Incubation programs diversify economies, commercialize technologies, create jobs and build wealth.

A business incubator typically is a large building that offers temporary space to young businesses. Rents are low, and participating businesses may share resources that the economics of small start-up’s might not allow given their infant stage. Some incubators offer mentors, classes, and other business support to help small businesses mature. The goal is to minimize overhead costs, provide business expertise and reduce risks to make it easier for new businesses to succeed --- all of which are true of the services offered to tenants of the Center. The only criteria needing to be met by prospective tenants are a focus on some sort of technologically advanced offering or service.

“We’re not a retail space provider. There’s plenty of other space available if that is you’re niche”, said Bill Maurer, Vice President of Marketing and Research at NewVentures. “Our focus is providing the region with a technology center of excellence, hence allowing for development and growth of small technology start-up’s. Our benchmarks lie in center turnover - strange as it may sound - but we want you to take advantage of the amenities the center can provide, , and eventually move out into your own facility. That’s how we measure success.”

Tenants of the Center have access to multiple conference rooms, copier, fax and scanners and most importantly, other tenants and staff of the NewVentures Initiative. “The real value of being located in the center is the proximity tenants have with other early stage businesses. Just being in the presence of other start-up’s who might be experiencing the same growing pains as you can really influence and assist in solving daily problems”, expressed Kim Kudrna, Executive Vice President of NewVentures.

NewVentures is currently accepting applications for occupancy. Please contact Bill Maurer at 563.327.0162 (bmaurer@newventuresinc.com) with any inquiries about becoming a tenant of the center.

Did you know. . . According to the NBIA:

• For every $1 of estimated annual public operating subsidy provided the incubator, clients generate approximately $45 in local tax revenue alone.
• 84 percent of clients stay in their communities and continue to provide a return to their investors.
• Publicly supported incubators create jobs at a cost of about $1,100 each, whereas other publicly supported job creation mechanisms commonly cost more that $10,000 per jobs created.
• The NBIA estimates that North American incubator clients have created approximately half a million jobs since 1980.
• Every 50 jobs created by an incubator client generate another 25 jobs in the community.

National Business Incubation Association

Current Economic Development Trends

Reporting from the Illinois Development Council's Annual Conference "Improving Your Game"

by Dave Keiser - CCEDC Executive Director

I was speculative of this conference when registering but was immediately relieved when I saw that there were 120 economic development professionals in attendence and the list of speakers and topics. One of most important sessions was the one about Site Selection Trends in 2006 by professional site selectors Mark Sweeney of McCallum & Sweeney and Frank Spanno from the Austin Company. These are the people who corporations hire to find new sites for their expansion projects and what they had to say to us was very important.

If you are not on the internet, you're not in the game, but even if you are on the internet, it doesn't mean that you are being considered. It takes a dynamic, updated website, with lots of prior planning for the future to get considered. And that's if you are in the right place for that corporation's market.

Market & Supply Chains

The very first step or phase I that a site selector takes is to run GIS mapping to find the optimal geographical location for a particular business. Fortunately for Carroll County, our proximity to the Chicagoland area and the fact that the demographic center of the United States has finally shifted west to central Illinois positions us in the middle of the market and most likely will make it to phase II of the site selection process. That's where websites and planning come into play.

During phase II site selectors start the process of reviewing economic development websites and LOIS for a good fit location. Therefore, having a website with every existing site/building available in your jurisdiction is crucial, but it is even more crucial that these sites have everything these large corporations desire because they are ready to break ground immediately, sometimes within 90 days, so planning for land purchasing and infrastructure improvements have to be lined up beforehand. If these hurdles are taken care of beforehand and implemented on a dynamic website, your chances are good. Four out of every 100 communities looked at during phase II get a phone call. When that phone call comes, the community and economic developer have to be ready to act, in most cases, you only have a couple of days to line up all the details and players for a project to survive to fruition. So plan and invest for the future. Invest in infrastructure, education, business incubation, and most importantly the internet and you will be ahead of the game.

Knowledge Workers - educated professionals, i.e. engineers, scientists, doctors... We don't have to have Mayo Clinic in our county to attract biotech firms, but we can encourage one professional to live here and do research. Research brings publicity and other professionals and then maybe that biotech firm. So how do you attract this type of person? IT infrastructure, a business incubator, or an active entrepreneurial network...

Shut up and Listen

(Crain's) - By Meredith Landry

Shut up and listen

CAUSE OF DEATH: FOOT-IN-MOUTH DISEASE

Let's face it, not everyone's a born salesman. But there are some rules you can follow to get better. It starts with introspection.

PROBLEM #1: You don't define your target audience.

Eager to get business, entrepreneurs forget to figure out who their true customers are. What gets lost as a result? What every company needs: repeats and referrals.

SOLUTION: Outline the ideal client in your business plan and stick with it.

Don't take any customer who walks through the door. Define your target audience, so you can concentrate on catering to a clientele more likely to become regulars. Focusing on the right customer base also helps your bottom line.

"The cost of attracting new clients is six times higher than maintaining an existing one," says Jeannie Walters, vice-president of Vox Inc., an Oak Brook consumer consulting firm. "Our business is about long-term relationships and cold calling always felt, well, cold."

PROBLEM #2: You don't listen to your customer.

You're nervous and you want the business. But you're selling blind if you don't understand their needs first. Plus, they won't trust you.

SOLUTION: Learn their problem.

Let the customer speak 65% of the time, says George Shanine, who runs the Midwest brand sales division for IBM Corp. "If you're talking more than they're asking questions, you know you've got a problem," he says.

But there's more to listening than just listening. To get a better understanding of how your product or service can help them, Mr. Shanine recommends asking four questions: 1. How bad is the problem? 2. How many people does it affect? 3. How quickly do you need to solve the problem? 4. What would the ideal result look like?

Then use that information to form your pitch.

PROBLEM #3: You don't know when to quit.

Entrepreneurs often spend hours haggling over price rather than what they really want to be doing: more selling.

SOLUTION: Give your best price first.

Offering a customer your "walk-away" price means that you won't waste time negotiating.

Not only will you save time, but you'll maintain credibility with the customer and within your company. Going back and forth suggests you're selling a deal rather than the value of your service. "Once the conversations are centered around price, it's time to walk away," Mr. Shanine says.

To do so gracefully, tell the customer this is your best offer, then ask for a decision. Chances are it will not be in your favor, but thank them for their time and move on.

For more help: Attend a sales strategy workshop such as those offered by Huthwaite (www.huthwaite.com). Or pick up a copy of "Integrity Selling for the 21st Century: How to Sell the Way People Want to Buy" by Ron Willingham.

©2006 by Crain Communications Inc.

Tell Me about It

(Crain's) - By Cynthia Hanson

CAUSE OF DEATH: LACK OF CIRCULATION

Marketing a new product or service is one of the hardest parts of running a small business. Just ask any entrepreneur who's blown a ton of money on an advertising campaign that flopped. But you won't, if you read on.

PROBLEM #1: You confuse marketing with sales.

Many new entrepreneurs wrongly expect their print advertising, radio commercials or direct-mail campaigns to translate into immediate sales. But marketing and sales are related, not identical.

SOLUTION: Have patience. And be aware that marketing is an investment.

Mike Tait, president of SMT Golf Inc., spent two years buying ads in golf magazines only to get frustrated when they didn't deliver the new customers he expected. "I thought that a $5,000 advertisement should generate more than $5,000 in business," says Mr. Tait, 44, whose Oswego company designs and imports golf club parts.

So what did he do? He hired a marketing firm.

"That's how I learned that building a brand and keeping my company's name in front of the customer is worth more than the cost of the ad," he says.

Research shows that it takes three to six exposures to an ad before a customer makes a purchase. So your marketing should be consistent to build up buzz and name recognition, which in time will bring in the new business you're seeking.

PROBLEM #2: You don't have a consistent message — or you use only one method.

Lack of cohesion among your public relations, advertising and direct-mail campaigns confuses customers, which hurts sales and sets up your business for failure. And by using just one medium, you lose out on reaching certain customers.

SOLUTION: Hire an expert and diversify early.

You don't need to spend megabucks on a multinational public relations firm, but be sure to choose one that has both key media contacts and a track record in your industry.

Andre Williams, 36, regrets not doing that when he hired a local PR firm to promote Kaze, a Japanese restaurant he opened in Roscoe Village two years ago. "The account executives weren't experts in restaurant marketing, so they weren't getting our message into the right hands in the Chicago food media," he says.

After Kaze's first year, Mr. Williams severed ties with that firm and hired another one that has been more effective. He also regrets relying exclusively on the first PR firm to get the word out.

"We should have had a multifaceted marketing program, with print advertising, Web-based advertising and direct mail," he says. "We're initiating those things now."

PROBLEM #3: You don't market to existing customers.

Sure you're busy pursuing new clients, but you can't assume your current ones will keep buying.

SOLUTION: Shift your focus — and your money.

If you don't stay in touch with existing customers, you risk losing them. That's what happened to Marky Bielat six months ago, when she opened her high-end shoe store in Lakeview.

Prior to opening Marky Exclusive European Shoe Boutique, she sold women's footwear (ranging from $300 to $1,400 a pair) at home parties on the North Shore. Once she opened her store, she spent her entire marketing budget on print advertising and didn't stay in touch with her suburban clientele. The result? She landed new city clients, but lost longtime customers.

"If I had it to do over, I would have mailed them a letter once a month, offering special promotions, private consultations and private parties at my new store," says Ms. Bielat, 32, who is now targeting them with a direct-mail campaign and trunk show later this summer.

For more help: Join a peer group and pick up a copy of "Guerrilla Marketing: Secrets for Making Big Profits from Your Small Business," by Jay Conrad Levinson.

©2006 by Crain Communications Inc.

Who needs insurance? Probably everybody...

FREEPORT, IL – Gerald Quigg, an insurance executive from Sterling, IL will be the featured guest speaker at the July 27^th meeting of the Blackhawk Hills Entrepreneur & Inventors Club.

The E & I Club meeting will be held at Sauk Valley Community College in Dixon, Room 1K4. The meeting will start at 6:00 p.m.

Quigg has been in the insurance business for over 44 years. He knows how important it is for inventors and entrepreneurs to have sufficient coverage. Gerald will share stories, tips and advice, and answer questions about your specific circumstances.

“We’re really excited to have Gerald come to our July meeting at Sauk Valley Community College,” commented Michele Miller, Director of the Small Business Development Center of Northwest Illinois. “We often get questions about mitigating risk; because of his tremendous experience Gerald will be able to give us great information.”

All inventors, entrepreneurs, business & industrial representatives, economic development professionals, along with community leaders, county leaders and anyone else who might be interested are encouraged to attend. Refreshments will be served.

“The E & I Club meetings are an excellent opportunity for networking”, commented Miller. “The casual, non-threatening atmosphere allows people to feel comfortable as they interact and hopefully help each other to become successful.”

For more information you may contact Ms. Michele Miller, Director of the Small Business Development Center at 815-288-5511, ext. 320, or Russ Simpson, SBDC Counselor at 815-599-3654.