Hamilton County Small Enterprise Loan Fund
Hamilton County Small Enterprise Loan Fund (SELF) Available
Hamilton County has been awarded a grant from the USDA. The grant was successful due to the cooperative efforts of the Entrepreneurship Advancement Center, the Hamilton County Convention & Visitor’s Bureau, the Hamilton County Alliance.
Purpose. The purpose of the Hamilton County Small Enterprise Loan Fund (SELF) is to provide loans to deserving entities that will result in jobs creation or retention and also that will contribute to the economic development or stability of the area.
Eligibility. The SELF can be utilized by loan recipients for fixed assets, working capital and cash flow in the areas of manufacturing, commercial, retail, agricultural, service or tourism. Potential borrowers must be located in the rural areas designated eligible by the federal government of Hamilton County and must be clients of the Central Indiana Small Business Development Center.
Limits. The maximum loan to any one individual or business is $40,000. Private financing is to be sought first, however, and the borrower must demonstrate at least a 10% investment into the project.
Terms. The minimum interest rate can be no lower than 4% below the current money center prime rate as quoted by the Wall Street Journal, but not less than 4%. Interest rates and length of repayment will be decided at the time loans are made and the SELF Board will take second (subordinate) positions on all available assets.
Application Process. Potential borrowers must have a business plan and adequate projections for purposes of review by the SELF Board and are required to fill out the application as completely and comprehensively as possible.
Ineligible Activities. Speculative activities such as land banking, and construction of speculative buildings are not eligible for funding from the SELF Fund. Also, loans which are to assist a borrower in moving from one area to another are not eligible activities. Loans will not be made for investment purposes in high interest accounts, certificates of deposits or other investment purposes not related to jobs creation or retention. Loans with “conflicts of interest” will also not be entertained.
Contact. If you are interested in applying for a SELF loan, please click here to complete an interest form and to find out if your business is in an eligible area. Other inquiries may be directed to Cathy Langlois at (317) 813-5413 or Cathy@goentrepreneurs.org
Technology Association of Hamilton County to Launch
The Hamilton County Alliance, the local economic development organization, is launching the Technology Association of Hamilton County. Information meetings have been held throughout the fall and the ideas/input from those meetings have been incorporated in the direction and plans for the Technology Association.
Mark you calendars for January 19 from 7:30-9 am for the launch event. Watch for more details.
The Alliance is ecstatic about the interest and enthusiasm of the technology community in this effort and is looking forward to making the Technology Association a member-focused association.
There are 7 peer groups identified within the Technology Association and several leaders have already stepped forward. Terri Eakins, Technology Partnership Group, Pat Chittenden, Ambrose Property Management, and Ron Brumbarger, BitWise Solutions have all agreed to lead peer groups. Members may select the peer group(s) their organization participates in.
As the Alliance prepares to launch the Technology Association in 2012, technology businesses are encouraged to join the Technology Association by the end of this year. This will position those organizations to be founding members of the Technology Association and leaders in the Association. Members will benefit from Collaboration, Strategic Intelligence, Visibility, and Talent. See the membership form for more details on each benefit area.
Click here to access the membership form. Technology Assoc Membership Form
If you have any questions or need assistance, please contact Cathy Langlois at 813-5413 or email her at cathy@goentrepreneurs.org
Define your Market and Your Competitive Advantage
By John Marske, M&I Bank
EAC Board Member
The most challenging aspect of any business plan consists of convincing investors of your company’s competitive advantage. The first step is defining your target market. Are you targeting the mass market or are you targeting a specific niche market with unique, specialized needs? Once you define the market (in terms of total dollars), you must state a percentage of that market that you reasonably believe you can capture. Is the market growing, or is it a stagnate market?
The second step is defining your competitive advantage to capture that market.
If you are a start-up, it will be extremely difficult to convince investors that you can compete on price, unless you have some innovative, patented technology that makes you more efficient. After all, what will prevent larger firms, with a lower cost of funding, from duplicating your strategy? Few investors will believe that price-conscious customers will be loyal customers.
If you’re not competing on price, how do you differentiate yourself from the competition?
Do you have an existing customer base that will follow you in your new business? You need to communicate the size of that customer base, and communicate why they will remain loyal to your business.
Do you have an in-house knowledge base superior to your competition? Prove it. If you can’t prove superior knowledge to investors, how will you be able to prove superior knowledge to potential customers?
Do you have a specific branding strategy that will promote customer loyalty? Outline a financial plan for promoting that brand.
Do you have a unique product or service that is creating a whole new market that doesn’t currently exist? How do you define that market? Is your product a compelling substitute product for an existing market?
If you can answer the above questions with factual research, you are well on your way to completing a solid business plan. All that remains is inputting the numbers to convince yourself, as well as potential investors, that you have a sustainable business.
Focus on Entrepreneurship
By Frank Howard, L5 Solutions
EAC Board Member
For those of you who have not taken the opportunity to visit the home page of the EAC, it lists the following beliefs that are core to the organization:
- Entrepreneurship is the economic engine of our economy.
- Entrepreneurial education is a lifelong learning process, starting at elementary school and progressing through adulthood.
- The right support, provided at the right time, will empower individuals to choose an entrepreneurial path that will culminate in innovative, sustainable businesses that create jobs and build a healthy economy.
- Supporting entrepreneurial businesses will create an economically vibrant community.
Fortunately, we are not alone in these beliefs. Effective July 1st, the state of Indiana now has a “Young Entrepreneurs Program” that was recently signed into law. It establishes a program that focuses on community economic growth while providing entrepreneurs from state educational institutions an opportunity to start a business in Indiana. Details can be found in House Bill 1251. In summary, it provides a program through the IEDC where at least once a year there is an auction where communities can bid on businesses/startups that have gone through the application process and met certain requirements. The selected bid is legally binding between the two parties.
What do you think about this program, its goals, and possible success? Does it conjure images for you as it did me… a version of the TV program “Shark Tank” with Indianapolis Mayor Ballard sitting next to Carmel Mayor Brainard talking trash about why their deal is a better one for the home grown Indiana entrepreneur.
Like all ideas, the difficulty is in the execution. Regardless of the program’s success, I am excited that we are not alone. We are fortunate enough to live in a state that sees the value of entrepreneurship and makes it a focus of our state’s economic development.
To learn more about this bill see the following state website links:
EAC and 2010 Biz Plan Winner Featured in IBJ Article
Hamilton County resource center aids entrepreneurs of all ages
The Expert Economy
Adam Hoeksema, Client Services Manager at the Flagship Enterprise, will be leading an EAC workshop on June 2 from 7:30-9: a.m. Hear from Adam about the Expert Economy. For more information and to register click here.
Spotlight Indianapolis
EAC board member Lorraine Ball sat down recently with Michael Thomas to talk about support resources for Entrepreneurs and new business owners in the central Indiana community. The 30 minute interview aired a several local radio stations last Sunday morning. If you weren’t up early enough to hear the programs live, you can listen to it here.
We have broken up the interview into two segments. The first is primarily about the EAC. The second half features more information about Startup Weekend, and other Indianapolis community events.
Why Write a Business Plan?
By Kevin Jones, Small Business Development Center
Young entrepreneurs, and even some older, experienced ones, sometimes balk when asked to write a business plan. They may argue that taking time to write a business plan diverts them from actually working on the business itself – developing product details, lining up vendors, making customer contacts, etc. Or they may be in a dynamic industry in which a written business plan would be out of date as soon as the ink is dry on the page. The impetus for writing a business plan usually comes from an outside stimulus, such as the need for financing or the prize package that’s awarded to the winner of a business plan competition. The financial incentive is certainly a viable motive for preparing a written business plan. But there are several other very good reasons why an entrepreneur should take the time and put forth the effort to develop a solid, written plan. Writing a plan forces you to consider important issues and to answer fundamental questions about your business before you actually start the business. As such, it helps you to organize your thoughts, as well as your resources, on paper before you start spending money – whether it’s your own or an investor’s. A business plan enables you to communicate the specifics of your business idea to others, including business advisors, potential suppliers and major customers, and family and friends. Your plan will provide a “yardstick” against which you can measure your progress during the initial years of your business. And research has shown that businesses that start with a formal business plan are considerably more likely to succeed than those that go without a written plan. Perhaps the most important reason an entrepreneur should take time to research, organize and write a business plan is that he/she will get a tremendous boost in confidence with a business plan in hand. The confidence–building effect stems from all of the reasons cited above. Entrepreneurs are often described as risk-takers. That doesn’t mean they thrive on taking unnecessary risks. Successful entrepreneurs are those who take calculated risks. A good business plan reduces risk.
What are your thoughts on writing a business plan?
The Ultimate Risk / Reward Proposition
By Ellen Dunnigan, Accent on Business
Starting your own company is perhaps the ultimate risk/reward proposition. When done successfully, the rewards of creating a profitable and valued business, beginning your legacy, designing your own future, and even being one’s own boss are pretty cool. When unsuccessful, the damage done to one’s finances and psyche are sometimes irreparable.
Even in the best of economic times, starting a new company is a gamble. While studies seem to contradict each other, there is at least some level of agreement that more than a third of all new businesses fail within the first five year. Here at the Entrepreneur Advancement Center, we help people understand the risks of missing or incomplete business plans, lack of funding and market research, work and life imbalance, and other such limiting factors.
Despite these risks, thousands of people start their own business everyday. Some do it as a change of pace, others out of necessity. Some want to be their own boss while others are chasing a dream or see an unmet need. Success is not guaranteed, but for many that’s what makes taking the leap all the more exciting. How about you? Why did you go into business for yourself and what advice do you have for those who are just beginning?
March Networking Event
EAC will be holding a networking event on Tuesday, March 8 from 5:30 p.m. – 7:00 p.m. The event, co-hosted by the Entrepreneurship Advancement Center and the Noblesville Department of Economic Development, will be held at Noblesville City Hall.
The event will feature a welcome by Mayor John Ditslear and an overview of the valuable services SCORE provides to Hamilton County business owners at no charge.
Stop by to meet new business professionals and to learn more about what is going on in Hamilton County!
Event Sponsor: ESI Technology Advisors
Click here to register today!
