Next CtCB class begins in Rockford Sept. 24th – Sign up now!

The next Creating the Creative Business class will begin on Wed. Sept. 24th and run until Nov. 12th.  The class meets every Wednesday evening from 5:30pm to 7:30pm for eight weeks.  The class will be held at the Rockford Design Center at 315 North Main Street, Rockford, IL.

Call 815-980-9515 or email pschallhorn@gmail.com to register.  Cost of the class is $125.00.  Those who qualify as low income may attend the class for no charge.  

The class is fun and interactive.  Some of my super successful students include:  Zina at Zammuto’s; Bella Luna Bakery; author of Women Dig Guy’s that Cook; Socks that Rock; Bliss Beads; Nita Bugs Jewelry; Woodfire Pizza; Anjan’s Eats; Lulu’s Corn; Ronit’s Kitchen; Old Farm Products; Paul Henderson, Artist; and 30+ other Rockford based creative businesses and artists.  Start or expand your own creative business now and learn how to make money with your art!

 

Book Launching

During the last Creative class we had someone that was working on publishing her book.  As an interactive-group project, we brainstormed a possible marketing strategy once the book was published.  She had already thought about doing a book signing at Barnes & Noble; however, the participants took it a little farther and I would like to give the benefit of their wisdom to all of you that might be thinking about doing the same thing.

The first marketing strategy was to make sure that she had post cards and flyers developed to be able to hand out and to make sure that they indicated an on-line source to purchase the books…possibly even a schedule of the next marketing strategy

The second marketing strategy was to draw a circle around her residence (either 50 miles or 100 miles) and contact all library branches and cafes that might be interested in allowing her to do a reading, as well as, a book signing and sale.  Nice thing about the Rockford region is that over 10 million people live within about a 100 mile radius.

The tough part is that this can take a lot of time, but it is relaitively free (other than the time) and could be an awesome experience.  The thing to remember is to be ready to sell and make sure they can go on-line and purchase it after the event, if they don’t purchase the book there.

It was a great class – hoping to schedule another one soon.  I’ll keep you informed.

 

Poets in Rockford

Amelia Garcia - Poet

Last night I got a chance to see some really amazing poets in Rockford…the Poetry Slam was held at Bookworm Cafe at the Rockford Library East Branch.  It was a great time and “standing room only”.  I suggest that you Friend the Bookworm Cafe for a list of upcoming events.

The winner was Amelia Gomez (in photo).  She was really amazing.  Lots of great talent.  Just goes to show the creatives are alive and well in the Rockford region.  We need to support this kind of event.

Although I had a few tidbits of advice I would have loved to give – nice thing about having your own blog.  Next time I recommend that their poetry books and CDs (of any of the particpants) be available for sale thoughout the night.  Nice marketing for the event and Facebook proved once again to be effective in getting people to know about creatives in business.  Also, need to talk more about copyrighting work.

Will write soon.

Pam

 

 

WAITING FOR THE UNIVERSE!

I rarely talk about my personal experiences, but now that my job is over with the Small Business Development Center, I thought I would try to step out of the box. 

 I’m sure that everyone has those moments in life where it seems like we are somewhere between here and there, not exactly here, but not there yet.  Buddhist’s encourage us to live in the moment – so for the holiday weekend at least – I did just that.  They also say “a relaxed mind is a creative mind” and between the Creating the Creative Business class beginning on September 20^th (don’t forget to sign-up) and whatever the universe may have planned for me in the near future, I decided to take a long break.

 One of my favorite experiences over the weekend was the On the Waterfront festival.  It is always an amazing time and this year was no exception.  Obviously, I didn’t make it Saturday, when it was raining (really too bad), but I did make most of the day on Sunday.  My favorite band/singer was Hamilton Loomis – I LOVE the blues!  He’s from Galveston, TX and you’ll see the picture in the insert.  He just wrote a song called “I was in a rut and now I’m in the groove” – very cool. 

Also, I just spent a couple of days down at my spiritual retreat, actually my artist friend’s home in Marseilles, IL.  I call it my retreat because for me that is what it is.  Kicking back and watching a fire burn outside with that beautiful half-moon overhead last night was so beautiful.  I felt so much peace and tranquility (except when her four year old grandson stopped by, but that had its up-side as well).

Taking life one moment at a time, as my new life opens before me is a great experience, one I intend to savor!!

See all of you soon – have a beautiful day.  I’ll keep you informed on my progress and also on the class coming up on September 20^th.

Live, Love, Create!

Pam

Two New “Stars” at the Rockford City Market

Last year two new businesses came out of the City Market and are now working on more permanent sites in downtown Rockford.  The Market seems to be proving itself as an incubator for small creative businesses – especially specialty foods.  The businesses are given the opportunity to test their markets before expanding into larger spaces that require high rents and other overhead costs.

 This year we have two businesses that I’ve spotted already as have the “star quality” we need in downtown Rockford.  The first is Four Paws.  Madeline Enochs, the owner, prepares fresh dog treats that look delicious enough for human consumption.  She has blueberry tarts, french fries, pizza and other culinary delights for your favorite pet.  Stop down and pick up something special.

 Another new business this year is Pasta Cucina owned by Anne D’Astice.  I bought the mushroom pasta and tried it over the weekend – awesome!  Make sure you prepare it just as she suggests with “salted” water and only cook it for 3 minutes.  You won’t be disappointed.

I wish these two the best of luck.

Financing the Creative Business: Bootstrapping

Bootstrapping is the ability to start a business using the entrepreneur’s own capital and very little-to-no borrowed funds. It is taking your lawnmower and weed-eater out of the garage and going door-to-door to get lawn mowing jobs. Then as you build your business and capital you buy a bigger lawn mower and so on…

Not all businesses, of course, can be started like this; however, there are more than you might think: yard maintenance; caterer (FYI you do need to find a commercial kitchen to cook in); janitorial service; a pet babysitting service; and the list goes on. Do a Google search of businesses you can start for under $1000 and see what you find.

Another option is the Farmer’s Market concept. Selling at the market does require a little capital. You may need up to $500-$1000 to pay for the first season rent, insurance and a tent. If you are looking for one in the Rockford region go to http://www.rockfordcitymarket.com . It is a great market and draws about 2000 people per week. (Note: I might be a little prejudice. I am on the Steering Committee).

The advantage to bootstrapping is that you do not accumulate the debt that could slow you down in the future. You also start smaller so you have time to “test your market” before spending a lot of cash. Developing a good business plan and then determining how you can get by on the lowest amount of upfront capital is always a great way to start a successful business.

Also, look for free stuff, like counseling and training options from your local Small Business Development Center (www.sba.gov ). Develop a Facebook fan-page and use that rather than developing a costly website. See if your local church will let you bake in their kitchen for low-to-no cost. Just get creative in finding and using free resources. The more you can do for free, the less capital you will need to get started and the more likely you are to be successful. Also, if you go out of business you won’t have that “old debt” following around. Good luck and next time – micro loans and where to get them in the Rockford region.

Cops or Culture?

“We don’t need more cops, we need more culture” quote by Carlos Esquivel, a.k.a. Acme – Smithsonian.com September 2010.

I was rummaging through some old articles I had been collecting on the impact creatives have on a community and I ran across an article in the Smithsonian that quoted Carlos Esquivel a famous artist in Rio De Janeiro, Brazil.  His quote – “we don’t need more cops, we need more culture” – reminded me of the horrendous string of murders that have occurred in Rockford, Illinois over the past few weeks.

The article was about how Rio is trying to “clean up” its act to be eligible to host a series of events over the coming years.  It’s true that the environment that Mr. Esquivel is describing, with its military dictatorship and guerrilla “urban” warfare is far more widespread, but no more hideous for the victims than what we are currently experiencing here.  Could his assumption about increasing culture (i.e. art) and access to it, be as relevant for our current state of affairs here in Rockford?

Art in all of its forms is an expression of the human soul and resonates at a deep level.  Art can create hope which is desperately lacking in the current economic environment here in Rockford.  According to a recent article in the RRStar, 17,000 jobs have been lost since 2006.  Poverty levels in Rockford are increasing (23%-2009) as are the inmate counts at the local jail.  Hope seems to have “left the building” for many people in this City.  

Reaching out to the low-income individual in Rockford, both children and adults by engaging them in the art and culture scene in the area could be a great way to give them hope.  Our nation equates money with personal success and happiness, but there are many things that can make the human soul happy without much money (admittedly they need food and shelter) but like Esquivel, I believe art, people finding their passion, can be a critical element of their happiness.  But are we reaching out?

When I was at the Rustbelt to Artist Belt conference in April, many of the African-American participants noted that they were actually excluded from various art organizations in the Detroit area.  Ironically, I’ve seen T.V. commercials recently that boast Detroit’s musical history which for the most part was perpetuated by the African-American people living in the area in the 1950’s.  Even today their third most popular art attraction in Detroit is the work of an African-American artist. 

I’ve noticed as I meet with different art organizations in the Rockford area that minorities are under-represented, if represented at all.  I think we need to make a conscious effort to change this.  Finding something that an individual is passionate about – giving them a sense of being a part of a community at some level can make a real difference.  Making sure they feel like they belong and are important is sometimes all that people need.  We need to reach out to these people and give them the opportunities to find their passion in life and to shine?  We must give them hope.

Creating the Creative Biz Step 3: Location, Location…ah, maybe not yet!

I wish I had a nickel for every client that walks into my office with just a rough business idea and a location.  No information on their target customer…no marketing plan…no information on competitors, but they believe they know where they want to locate this business.  Some even come with a signed lease agreement.

The number one “killer” of small businesses is lack of capital in the first year.  In most businesses, a significant amount of capital is generally eaten up by overhead: rent, utilities, taxes, and maintenance.  Any business advisor will tell you that finding the right location is very important to a small business’ success, but it should not be the first thing that you go out and do when deciding to start a new business.

As mentioned in my two previous “steps” – first you need to have a good business idea and then you need to “know” your target customer and determine where they are, what they need (or want) and where they shop at.  Clients incubating in a place like the Rockford City Market have a special opportunity (albeit some weather challenges) to test their market before taking on excessive amounts of overhead. 

Still others decide to start out in their homes.  There are obvious drawbacks for the person that decides to do a “home-base” office/business.  But at least the home-based business owner understands the need to keep over-head to a minimum in the initial start-up phases.

Small shop means Big Biz potential

Here is a photo of a new business that I know that is taking their time before they make a full blown investment in a shop or store-front.  By “boot-strapping” or keeping loans and capital injections in a business to a minimum gives them ample time to learn more about their markets, pricing and customer needs before taking the big leap. 

Bella Luna Bakery started at the Rockford City market last summer and is now using a small (closet-like) space at the Millennium Center where they can deliver their product; and bake in the shared commercial kitchen.  Admittedly, they have almost outgrown this space, but by keeping over-head low they keep their cash flow as high as possible which allows them the funds to continually expand.

The problem with rushing into a larger location and overhead expenses is that so many businesses use all of their spare cash flow and start-up capital on the overhead expense leaving no cushion to carry them through seasonal fluctuations or errors in planning.  Many of these businesses want to grow after a year or two, but can’t because they don’t have any money of their own left and banks are unwilling to loan anymore to the enterprise.  Research has shown that sometimes it can take businesses up to twenty years or more to dig out of financial problems that they encountered within the first or second year of business.

Starting out small and waiting for a more expensive location until you have demonstrated your business’ ability to survive and thrive with good market intelligence and great customer service could mean the difference between creating a good business or a great business.

Food for thought…

P.S. – Never ask a realtor or developer about what comes first in the business plan.  Make sure any discussions regarding your business location is discussed with someone that does NOT have a vested or financial interest in the property.

Creating the Creative Biz Step 2: Determining Your Target Customer

In order to develop a successful business plan, entrepreneurs need to understand who their target customer is and what products and services these consumers will purchase and for how much.  Unfortunately, in many cases, this information is difficult, if not impossible, to obtain. 

A basic element of Economic Gardening is providing information to entrepreneurs that will allow them to better understand the markets that are available to them.  For instance, in Downtown Rockford – who comprises the current target customer? 

• Who lives downtown?
• Who works downtown?
• How much is their average household income?
• What is there educational level?
• What types of business products and services are they currently using?
• What other types of business products and services would they buy downtown if they were available?

 Understanding the existing consumer base within a geographic location; or a business’s “target customer” is crucial to the success of a company.  If there is no market, than to whom will you sell your product or service?  If you cannot sell your product or service, how will your business survive?

It is possible to “draw” your market or target customer “to you”.  This is what is called a destination; however, it is very difficult to stand-alone in a distressed area such as downtown Rockford.  Foot traffic is desirable.  Many businesses (see previous blog) have taken advantage of the foot traffic from the Rockford City Market on Friday afternoons.  Others take advantage of the foot traffic on Block 5 of East State Street that draws customers with its cluster of shops and high-end restaurants.  But unfortunately, we have little data regarding these current and/or potential consumers.

This does not only apply to Downtown Rockford, of course, regardless of where a business is to be located the entrepreneur must understand the buying habits of their target customers.   But how does the business owner begin to collect this data if it is not readily available.

Generally, surveys are the best way to obtain information regarding a specific location.  Census data is too generalized (i.e. for the entire City).  I do not recommend that clients ask their close associates what they think of their business concept.  Generally people are too courteous to give new business owners a honest response.  Many people have started businesses where friends and relatives have encouraged them, only to find that no one really wants to buy their product or service.

As I mentioned, it is possible although difficult to draw or attract a new market to an area with a destination business.  What is more feasible is to see if there are sufficient consumers within a .5 to 2 mile radius of a potential location to at least sustain the business.  Again, complementary businesses as neighbors that have similar customer bases would be advantageous to the new business start-up.

Last fall, I worked on a project with the Rockford City Market committee to develop a survey for their customers to determine the specific demographics being served, as well as, identifying potential new vendors that the current customer base would like to see added to the Market.  A similar survey might work for you.  For those who are not familiar with the survey process I would recommend discussing this with your business advisor or an SBDC counselor.

More to follow…

City Market Workshop – 2011

Well, I’m back after my sabbatical of 16 days.  This gave me lots of time to think and plan for 2011.  First thing I’m thinking of doing is a workshop for the potential, and possibly the existing vendors for the Rockford City Market.  There is has been so much talk about the success of this event.  I was so glad I was able to be a part of it.  I’m thinking that the workshop should include a variety of speakers that will focus on booth design; public health issues; sales tax issues; presentations to the selection committee and more.  There were almost 50 booths last year and the committee hopes to expand to 75-100 this year.  It should be interesting and fun.

This market is a great place for both start-ups and existing businesses. Start-ups can use this as a low-cost method of product development and testing; and those that are in existing businesses can use the market to gain more exposure for their existing store-fronts regardless of where they are located.

Just a special note, based on the City Market Survey completed last September the top four “wants” from the customers are ethnic prepared foods (47.2%); more fresh produce (43.2%); international grocery (38.4%) and delis (28%). 

If you are interested in being a vendor contact the Rockford City Market at www.rockfordcitymarket.com. If you would like more info on the upcoming workshop watch the SBDC website at www.rockvalleycollege.edu/sbdc .   Hope you had a happy holiday!