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HomeMy WebLinkAboutCRA-R-13-0018 BackupBudget Budget Neighbors And Neighbors Association Inc. Contractual Services for the Period. Beginning August 28, 2012 to September 30, 2013 The Business Sustainability Program for The Overtown CRA 100 hours @$iO0.00 Each session will be 2 hours 2 days a week for a total of 4 hours weekly for individual on -site business assessment and support for (2) businesses per week) 2 Curriculum 3 Furniture 4 Supplies 5 Administrative Expenses.. Staff person office 6 Signage 7 Cleaning 8 Equipment -Copier 9 Equipment -Computers On -site Business Assesrnent and support that will focus on the tools needed to grow and nurture the local business such, financial assessment, procurement, inventory analysis, credit review, management and staffing support/ $ 10,000.00 Curriculum development course work and materials Office Furniture and set Up Cost for workbooks for .smallbusiness resource center . Software for the Business assessment and Evaluation Program and the materials Staffing - Coordinator / Trainers Cost to purchase and install Signs Office cleaning Purchase of copy machine Purchase of 8 computers, installation cost and softwear costs Total Project $ 800,00 $ 7,293,00 1,000,00 $ 3,342.00 $ 380.00 125.00 $ 4,100.00 7,960.00 $ 35,000.00 Carrie P Meek :Center for &urines 71j eceleratir gthe success and profitabili y Qf startup: ari small businesses in the Marketplace,,:; Capacity Building Business Development Program Overtown Business Resource Center and Onsite Business Assessment Evaluations To Encourage Business Opportunities and Economic Growth and Development For Small Businesses Located In the CRA Southeast Overtown / Park West District In an effort to initiate small business development and to simulate its growth in the local economy of Historical Overtown, Neighbors and Neighbors Association, proposes to conduct onsite Business Assessment Evaluations (BAE) for those businesses that have completed the Capacity Building training. To offer complimentary business development and technical assistance services related to launching a new business or looking to grow one through the Overtown Business Resource Center. The Overtown Business Resource Center will be a One Stop business center that will provide technical assistance, Business resources and referrals and business seminars, the center will be open daily and provide computers, printing and faxing services for the local community. avgtatiaesign The business assessment phase of the program will be called the Economic Gardening Project and it will provide entrepreneurs located in the City of Miami Overtown Historical District with the expertise to better manage and grow a financially successful small business. Although many of the businesses in the 3rd Avenue Business Corridor of the Overtown Historical District have attended the Capacity Building Business Development classes and have reported that they gained significant knowledge; they have also advised us that they would like to have more comprehensive individualized business assistance. To address the needs of these businesses we have further developed a three phase business assistance and development program. Phase One: Onsite Business Assessment Evaluations The onsite Business Assessment Evaluations (BAE) is an SBA' management tool that is designed to allow the business owner to conduct a comprehensive search for existing or potential problems and unique opportunities. The BAE will cover: Management Assessment (Basic Planning, Personnel), Operations Assessment (Production, Sales and marketing and Financial Assessment (General bookkeeping and accounting practices, financial planning and loan proposal. (See BAE Attachment PP. 7-19) Phase Two: Analysis of the Business Assessment Evaluations: An Analysis of the findings will be presented to the entrepreneurs to be used to critically assess the ' U.S Small Business Administration -Business Audit Paget of 19 strengths and weaknesses of all facets of the business; and to be used to enhance the success rate of growing their small business. By using the Business Assessment Evaluations on a regular basis the small business owner will be better able to see pitfalls in sufficient time to react appropriately, thus ensuring a greater possibility of business survival and prosperity. The third phase of this business development program is the Economic Gardening Project. The Economic Gardening Project is an entrepreneurial approach to economic development that seeks to grow the local economy from within. Its premise is that local entrepreneurs create the companies that bring new wealth and economic growth to a region in the form of jobs, tax revenues, per capita income, and a vibrant local business sector. Economic gardening seeks to focus on growing and nurturing local businesses rather than hunting for "big game" outside the area. The answer to implementing a successful Economic Gardening Project varies by community. Each community has a unique set of features, in terms of assets and needs. What differentiates economic gardening from other entrepreneurship development strategies is its focus on providing market research and high-level technical assistance to small growth -oriented companies. The focus is on providing accurate, timely and relevant information to local entrepreneurs about key areas such as their competitors, customers, markets, and industry trends. Armed with this kind of information, a small business owner can make better strategic decisions, avoid costly mistakes, and successfully grow his or her enterprise. To develop a sustainable economic gardening program, a community must assemble its key players, develop a common understanding of the process and goals, be committed for the long haul, and share a passion for doing things differently to grow businesses. An outline of how The Carrie Meeks Center for Business would develop a sustainable Economic Gardening Project for the City of Miami Overtown/Park West District, by utilizing the following model: 1. Determine your target business audience The most important decision to start our economic gardening project needs to answer and to determine "Who will we serve!" Our economic gardening programs will depend on the identified goals and community expectations of small businesses in the area. We will work with these companies and show them the way to sustainable growth. Page 2 of 19 In terms of choosing a target audience, focusing on growth -oriented companies will produce the greatest economic impact on the area, because they bring money into the community from outside markets. Growth companies can range from companies with a local market that want to expand and reach external markets (often through e-commerce), to companies that have specialized expertise or knowledge and primarily sell to external markets. Most small localities do not have the technical resources to support their needs, and we will show them how to develop the connections and technical assistance they need to grow. Most of these firms are start-ups and lifestyle businesses, but some of them are growth -oriented companies as well. "Lifestyle" businesses (the so-called mom 'n' pops) are the small retail and service businesses in every community. They do not "grow" the local economy by bringing in new wealth, but they re -circulate the wealth throughout the local community. They are essential to what makes a local community a vibrant and desirable place to live and work. They can also provide significant "political capital" for an Economic Gardening program through their testimonials and support. A number of local business organizations provide support to these start-ups, the self-employed and lifestyle businesses. These usually include Small Business Development Centers, SCORE, and local chambers of commerce. We will tailor our Economic Gardening programs to partner with these entities to provide services such as market research and demographics to assist with marketing strategies. The "sweet spot" for most local Economic Gardening programs may be companies that have been in business for one to five years, have a desire to expand, and have a potential or actual market outside the community. These companies can provide significant economic impact, and can benefit greatly from the services an Economic Gardening program typically provides, To focus on this target audience, we will find companies that meet the following criteria among: • Firmly established (in business for 1-3 years) • Have financial statements that include profit and loss and cash flow numbers • Have a clearly defined market • Demonstrate revenue growth over time (even if the company has not yet reached the breakeven point) Page 3of19 • Clearly intend to grow (as expressed in the desire to hire employees, expand operations or market area, or seek capital investment) • Have a product or service that is scalable and preferably unique (i.e., cannot be easily imitated) • Have .a potential or actual market outside the local region. z. We Approach Economic Gardening with an asset -based mindset. • We will develop an inventory of community and business assets available to the small and medium businesses in the area. • .Then assist these businesses to identify the "wealth" in their community. • Determine what skills they can tap into and what organizations to partner with. • Show them which business models currently works well in the business world. • Help identify who is already motivated and passionate to make "things" happen in the area. • Point out the systems and organizations already existing to support local entrepreneurs. • Assist them in analyzing the assets to leverage outside of the community. A comprehensive list of assets should include the "usual suspects" such as economic development organizations, Tools for Change Micro -Loan Program, chambers of commerce, civic and social groups such as Rotary and Kiwanis, Small Business Development Centers, SCORE, workforce centers, universities and community colleges, and financial institutions. The participants would also be introduced to other groups and individuals that also provide value to the local business community, which include, but not limited to: • The development of Network Groups (like BNI) among businesses in the area, which will support each other. • Community foundations and loan funds • Professional business associations and groups • Elected officials, city/county governments & Policy makers • Utility companies • Successful entrepreneurs • Council of governments • Entrepreneurs and inventors groups • Arts and cultural entities • Business and Technical Consultants • Non-profit organizations • Continuing business education programs Page 4 of 19 • Youth entrepreneur clubs and initiatives • Technology organizations • Venture and angel investors • Incubators and technology transfer programs • Microfinance organizations • Professionals who serve small businesses, such as lawyers, accountants, financial advisors, designers, and marketing professionals By highlighting individuals in the community who have skills and expertise in areas such as business coaching and rnentoring, finance, employment/workforce development, research, marketing, meeting facilitation, organizing/managing projects, public speaking, legal support, and fund raising; the local businesses would have a valuable assets to help them grow in a sustainable way. Perhaps the most important assets you can identify in the business community are the individuals who can become champions and advocates for the economic gardening project. They might be successful entrepreneurs who want to give back to their community, or individuals within any of the groups or organizations listed above. 3. We have access to qualified business coaches The most important aspect of our economic gardening program is the business coaching relationship. All businesses can benefit from a knowledgeable coach who can help them think differently about their strategy and figure out what they need to do to move to the next stage. We will provide this expertise to our Economic Gardening program. Entrepreneurs who pay attention to their core strategy are more likely to be successful than those who don't. They need to understand the unique niche their business fills, who their ideal customers are, what motivates their customers to buy, and how to reach their potential market. They need to network with the people and organizations that can help them. The Carrie Meeks Center for Business will identify the following characteristics as essential in selecting business coaches (to provide these services on their behalf. 9 One who knows the game ➢ One who has played the game ➢ One who can teach the game 9 One who can innovate to increase performance The E-coach is not necessarily the "expert," but is a person who knows how to network clients to the right answers in the right order. Coaching is part art form Page 5of19 and part science. Since most B-coaches do not bring a fully developed set of skills to this job, they will also need ongoing mentoring to be successful. We have access to quite a few good business coaches who come from various arenas such as, successful retired entrepreneurs, staff person at college or university entrepreneurship programs, incubator staff, or a person from any kind of setting who has business experience, knowledge of business strategy and a passion for helping local entrepreneurs. 4. We will develop an entrepreneurial support system that has "no wrong doors." We will encourage and spearhead the development of an organization where people can go to get business help, make sure each one offers appropriate referrals to the others, refers to this approach as "no wrong door." No matter which door (i.e., service provider) a business owner enters, they will get to the information and resources they need. This means that each business owner must understand what every other business offers, and who is eligible for their services. Business Network International (BNI) offers a model for the implementation of a resource provider network within a particular region. This package offers a systematic way to identify and organize services offered by local resource partners into a network group where they capture the information about business service providers in your area, and share it with all other partners within the group. This will ensure that each business owner utilizes the services provided by their network colleagues before looking outside the group. Referrals will be the key to sustainable success of this networking model. Page 6 of 19 Figure 1 — Types of Business Assessment Evaluations THE MANAGEMENT EVALUATIONS Basic Planning Personnel THE OPERATIONS EVALUATIONS Production Sales and marketing Advertising and promotion THE FINANCIAL EVALUATIONS General bookkeeping and accounting practices Financial planning and loan proposals Page7ofI9 Management Assessment Yes No Bask A. Thavampaayhas a dearlydeath rti 1. l a wit€en rnWandatanagat. 2. Campanyis. catr agantthemissioa 3. I s=:;Waned ia wheianec nary_ 4. lsrnalarea underatand.& timeinthem siin B. Themammy has ayam §lip" 1. Malletnirila. bag beeniseatifaer1 2. New ct kimes are FilevakTedwhe p pria4e. 3. Ta geled. eattamers ape being 4. 5aleae C. The company hss an annual budget. 1. Budget is used asafl ibaife; iaiP llndgetis mei as a c kol devices_ 3. agalaatbadgeted eapcaditurrs. Coadi+ a acfi u take when expeaget :ate over budget. Oamar paeorat bagel 6. The tvalgtisreali ic. Page 8 of 19 Management Assessment D. The Chas apr'i poky, I. P.wducts er services ogre competitively priced. 2. &&Enass prides vein= discards. 3. Prices me increased when warranted. 4. There is arelationship between pricing and sew where.. 5. Neesp are i onlart-angoods the price on. old stook get ebongert II. Pemunel • FaspIisyeesknow nta#in%peel Dillon., I. Each empbyeehag, only one seporvigor. ▪ Supervisor§ have outhoritycommensurate with respo Enploye% volunteermail ipratient resr. 4. Employees AO s cm the joh. 5. Employers feel adately trained. B. Each employee has a jots descriplion. 1_ Employees tan swum* desorr atthey d. 2. Employees do. And Impeded. 3. IXTor14 load is disiributed equlinAr. 4. Employees receive feedback perremoonoa. 5. Employees am uewrarded for good per armmice. 6. Employees are f m lhor— rithc ypoluxxg 7. DereAim,C0 d5e policy Mann. Page 9 of 19 Management Assessment C. Feueuriare ue is itedvdten. amnia L fro ea are infauned wiles peafearaanua Wow stardant Uneanued.obseameaare dealt/uida".. 3_ Ti; .ate D. Regniff Fir oyees' idea axe'solicited at 2. An agenda igi gins to, employees prier toi me ii Page to of 19 Operations Assessment Yet No L Proditieo. A. The =wow has a goodrelationilipvit.a rii 1_ A well-dectmenteciplara addresses how to deal with guPilfiegi Inveukuy delivery times are verified. 3. Lev& ofquaky ofmat ials and Dios are ad. 4. Payment team3 are 1 Contingency pi= are provided.. 6. Regular ar seuta:t is made with suppl A The company provides for good inventory conk L 1_ parryhas aatinventory r for line a iuventray levels. 2. Company loisapolicy maswa ggiru ©nyiaa. limeiy Mice. Tlecompay =lards imentery moo- 1_ Company hasa*written po]iq.ouincoming inspection. 2. in a ingleetionisheig 3. Incosning ira on_le rely orTalky are doted. D. The A mpany hat alternate klurreA thaw material& 1. Two unuoreNuppBata ale identified fa meikplochra. new. 1 Wray of rain niat requiressumts are divided equally iet eeut ro soraier ouppliers with a third ma= receiving Ieser butwadded. ordeal. Page it of tg Operations Assessment F. The, company has a:routine malutfmnrolicsaan. 1. A mute mainienatace lrop'amix and communicated gall maanimance peratamel. 2. Beery major piece of equipment bas, a. maliateanmca log patitioned ill an e"batons ply. • 3. Etecinali maintenance i 'a•zeguleroaernre re F. Thu u company haa afetal& apeaatiartatiningpcappe r, l.. Company hag awai.' asperat iaaaar mama 2. Aprogra i Innen* procetz iatirrine;, 3.Accomplidied operators am itleatiffedin answer 4_ Coma -waft on training., goal isplodded. a uctudatinalikting L Company te mare tr£OSI1A starelarda.pettailaingto the %. Conway ca regular//walingswitluemploye:ea rnrrr rming OSHA, staaariar& 3. Ail salty rem& awl last a =Mansare d umemfeal. Illeccanputyl a vrell-doeumeded. prometug pzacedme. 1. Romaenablea anima tibia grouped fat name efficient pig. 2, A §riwalotitt &sat allowing insianlaneces rempaitiort of pro:Indica ttairsitluau obvinesplace, 3. Subeatemhlied ate anwanafacturedin aufficientquantities ort a titnelybasia. 4. Finialual.onkis mealytmeapari ttoaAt t and dry area. Page 12 of 19 Operations Assessment S. Adequate cattrals rue provided .tr preclude excessive may imps that ccoddresult roalint stockspasm Ur 1. A peileypesticiug to the di orbstradous weft materials; it fay and scsira rsicatedtoall pesiihentl 2. .Atteinpts aroma& lb stay amid with. alte stiFag regriat rs pariah* to 3. -Regular wiediegX ore tenductocito detesvinebeiter L T n rany a.ttempis:to stay aimed with teanclogicaladveaces. 1. Colopsny cepossectalived attend trade slaws on a regular basis. Company Scn.'s rto tradapublikatient 3. A Surma employee sm is Eon perscaraas.m 4. C,oixpemy conducts regular tactilely lely brairstemaing sessions inrlvingthea 5 Company it involved in the extended lean* 1om Il. al and Marketing ,_ The owner knows exactly what the• ass it 1. The ostsierltaowt madlywlo The east 2. PCIti m l w about the huskier& 3. Leedienits appropriate,far the boga> . 4. The • mad is dearly dolled Page 13 of 19 Operations Assessment B. The Dv/madmen eampetitank and their Iocatioa 1. The me r w law his or Ines pikes eumparewith he Competitive.. 2. The ownerinonES how theecoopetition is mil. 3. ass data arm Ea skategie 4.The ownerincwsifie comity sales patie C. The owner e empie f ai en customer meal. 1. The emu -an d employees teat customers cam. 2, The mime* eencedlat complaints and ang tisa are listened may. 3, attain= ate pII dediwidh quirk,reliAtservice,. 4_ The. err is connitiemd La mied sleb/customers. 5_ A "epriate' oraseke , Q ihrtheb+ am I9_ 'Ehe 431P1Effris aware ofcustomer. new. 1_ Feellbadds requested &MIL enstomem 2. Meile eiVS r tat1 3_ Saks -12. am compare& toT ipret'iew yeart. 4_ Seas. variatens are to into awn. E.. The oarropeny nee& is Menage Mieswhom. 1. There mkspnim`ect. 2. Sates goats as n 3. Motive sales'presentations are%imw wi 4 o potent 4. Dares &prospects are lit in a €ollr-sp. Sales are elated effectively, Page 14 of tg Operations Assessment NE'. Advertising anti Premutien Thaow has an &awaking and. linnintinnplm. TIZe?bszser: 1. Hat an a a Ittet. 2. Adwaisetanerothly. 3. Adverb= weekly 4, Has a ea'it a Thmwneruses effic6vendwitising preaefien, 'Chem€ 1. Adwekesiznt19eT nwPages. 2. Uses newapap Ens and shoppers_ 3. Uses aadiza and.; advertising. d. Obtains nces or low-castmed'sa C. Thelywnernnes dreetkemerrmakirgIn isped. Tltema= I. Retaees display sp sites pintenfisil. 2. veintrpornailienal aids, 3. Knawataffin flew patio iem .d. K cleAn. 1)_ The a ns evaluateS adwrf.sing azapraynetiinnalefines. The owner. I. Determines if Ages Inman wth nakaiking, Ascertzke if Wes.increase after k!.patesn . 3. Fin& Inn kheftnawrikkgi zeaebiu,gintended = .. Page 5 of 19 Financial Assessment No 1 +Gene alBookkeeping and: reotint ! Piletlers A. The comimay has abook-keeping account* system. The maim 1. Paipuetthebe a. 'Undenstands the how and 'why. b. Pmpa fmainrial tea. 1 Pars focbug sue. Underside faun:civil sailP is b um i s donatgr booltkever. c. Flasmaimed cost fir boolleeper with tato 'a 13 The company at-macawat-macaw batik slaps �. ' C• They keeps Moo= nmi. mem stem accurate n.prepares statemealnmanthly. The ea 1. Ihnlastpnilt utalmoi omniat4,11,stammenis. 2. Compares gong madidy sENS: 3. ComparM statem t Industry mops, 4. lows =eat Emir* status of baniaess. Page 16 of 19 Financial Assessment The y mak mnrohl F deposits for fetal withholding teal ca ecahty taxta. Theme: 1. Understands Fams.9 i:1_ 2. Maken deposits enlimb sozoidpmalties. 3. Pagvides W 2 infOrmation. E. The company has a area policy. Thetty 1. Ages hafting stenximordlly. 2. Auessce late payment fee fmancadomers. 3. Writes off baddlebis. 4. Has:x+ad ollectionpoTici . 5_ Has a sew law se collect fig lade =damsel 6. Has VGA., Ian, or Other creditesad system. 7. Emphasizes rash discs # F. 'Rs IDS Ian taxMums it a timely MEMEL The owner: 1. Considers lam implications ofetuipment ply 2. Co si buy-nam. lease p ssiilides. 5_ asmidom peAstIleo ussra ddisubiantoget of numpatationiSubchttpter S. Hoses not pgtax.p s (federal., st ,sales).. Page t7 of tg Financial Assessment 'D. The: company makesmD lhly&p aksfor Nerd wTh1 ilrf and Socaai anityl. Th ma= 1. Um detain& Foam 941. hares r aifa police !avoid p s. 3. TieW-2 " E The coraixautylnas ac ail policy.. The company: 1. Apo billirt aystemmolhly. 2. des late payment mu =Imam 3. Utites effittl debit. 4. as goad colleclionpaidet 5. Hai an ofincominglypoau l.lottotocaneet;fom 6. Has VISA. other ordit ttd�. 7.. Empluat gash d F. The comparyfilesall tax z lmatur ymow m L Comae=tic implization ; ssf° at earl, 2. Conailt buraurgask poaa !ie . 3.CensidersFaulk admmtagesidisadvantasaa af• o ilS b per 4.. Does allay pmalfies INeral, state* saler, Page 03 of 19