Handout: Innovation & Minority Business (Rodney Swope)

Minority Business AcceleratorAccelerator

Cincinnati USA Regional Chamber

2015

https://drive.google.com/file/d/0B35BoM_OAUGBU01LRVQwZW

k1R1U/view

The Minority Business Accelerator is the The Minority Business Accelerator is the

economic development initiative of the Cincinnati economic development initiative of the Cincinnati

USA Regional Chamber designed to USA Regional Chamber designed to accelerateaccelerate

Minority Business AcceleratorMission

USA Regional Chamber designed to USA Regional Chamber designed to accelerateacceleratethe development of the development of sizablesizable minority businesses minority businesses

and and strengthenstrengthen and and expandexpand the regional the regional

minority minority entrepreneurialentrepreneurial communitycommunity.

ac·cel·er·ate [ak-sel-uh-reyt].

verb (used with object)

1.to cause faster or greater activity, development, progress,

advancement, etc., in: to accelerate economic growth.

Work of the MBA

� This is the FOUNDATIONAL TECHNICAL work of the MBA that creates “BETTER” firms.

Building MBE

Capacity

� This is the REVENUE CREATION work of the MBA that creates “BIGGER” firms.

� This is the INFLUENCING work of the MBA that is about regional inclusion efforts that creates “INSTITUTIONAL”change.

Stimulating Accelerated

Growth

Fostering Economic Inclusion

Our Opportunity:

2010 StudyMinority Business Slice of the Sales Pie

© 2010 Institute for Entrepreneurial Thinking, Ltd. ■ www.entrethinking.com

Total Sales for Cincinnati MSA

= $192.5 Billion

Total Minority

Sales = .527%

15.6%

Percentage of Minority Population, Number of Percentage of Minority Population, Number of Firms Firms and Gross Receipts Compared to All Firmsand Gross Receipts Compared to All Firms

Population

Number of Firms

Our Challenge:

2010 Study

0.1%

1.6%

11.9%

2.0%

0.2%

2.1%1.4%

0.1%

3.9%

0.05% 0.32% 0.17% 0.01%0.5%

American Indian and

Alaska Native

Asian Black or African

American

Hispanic or Latino All Minority

Total Gross Receipts

Components of the

MBA Strategy

The MBA uses a twoThe MBA uses a twoThe MBA uses a twoThe MBA uses a two----pronged strategy:pronged strategy:pronged strategy:pronged strategy:

;;;;

Improving the Improving the Improving the Improving the

readiness of readiness of readiness of readiness of

minority minority minority minority

businessesbusinessesbusinessesbusinesses

Engaging Engaging Engaging Engaging

support from the support from the support from the support from the

corporate corporate corporate corporate

community via community via community via community via

committed committed committed committed

annual spending annual spending annual spending annual spending

with local with local with local with local

minority firmsminority firmsminority firmsminority firms

Economic

Inclusion

MBA Portfolio Criteria

1. Minimum sustained sales of $1million.

2. Sales growth potential of double digit growth in the 3 to 5 years.

3. The potential to create &/or retain jobs in Cincinnati USA3. The potential to create &/or retain jobs in Cincinnati USA

4. Significant source of revenue is from mid-sized and corporate relationships.

5. Headquartered or significant operations in Cincinnati region.

6. Certified as a minority business by a reputable third party certifying agency.

7. Business owner and management must have expressed intent to grow business at accelerated pace.

MBA Portfolio

Revenue DistributionIndustry Distribution

No statistically significant differences between high-growth and low-growth companies in the following areas:

• The industry in which they operated;

• The gender of their owners;

• The educational attainment and business related experience of their owners;

Why some MBE Firms Grow

Faster than Others

The Gazelle Index

• The educational attainment and business related experience of their owners;

• The legacy of entrepreneurship in the owner’s family;

• Their degree of risk tolerance;

• Their degree of optimism about the future;

• The time they allocated to managing their company as opposed to growing the company; and

• Their access to external finance and capital

The Gazelle Index is a national quarterly survey of CEOs of high

performing small businesses and businesses owned by diverse groups.

African American entrepreneurs who owned high-growth companies were more likely to differ from the owners of low growth companies in the following ways:

• Their companies were operated by younger entrepreneurs.

• They set much higher annual growth targets;

Why some MBE Firms

Grow Faster than Others

• They set much higher annual growth targets;

• They were more likely to execute a business growth plan;

• They paid more attention to improving managerial efficiency; and

• They spent less time focusing on their competitors.

The lesson from this research is that if you wish to grow fast, you must plan for it and make your operations more efficient.

The Index focuses on diverse groups such as minority and nonminority-owned businesses; African American/Black-owned businesses, Hispanic-owned/Latino-owned businesses,

women-owned businesses and business owned by men.

Capacity to Succeed

• Sales

• # of Employees

The Capability to:

• Get Work• # of Employees

• # of Locations

• Size

• Get Work

• Do Work

• Get PaidMelvin J. Gravely II, PhD.

“The Capacity to Succeed”

Perform Core Capabilities to Achieve Sustainable Accelerated Growth

MBA’s

Accelerated Growth Capacity

Indicator (%weights)

15% Leader Delegation

10% Financial Performance

10%

Topline

Growth

Can/Does the CEO hand-off to capable

How does your financial metrics compare

in your industry? (via Profitcents)

Are you growing sales and profits?

10% Advisory Board

Support

20% Operational Disciple

15% Strategic Planning

15% Leader Delegation

20% Marketing, Sales &

CRM

Who’s questioning your answers?

Do things usually run in the way they’re

supposed to?

How well do you Repeat ably Get and

Keep customers?

How’s your scan, plan, act, and adjust

to the market process?

Can/Does the CEO hand-off to capable

functional leaders?

An intense, one-on-one, service delivery model

based on the needs of growth companies.

Growth Strategy Development and Review Merger and Acquisition

Support

MBA Growth Building Model

ReviewGrowth Plans / Strategic Plan Analysis

/ Advisory Board / Staff Development

Strategic AccessContractual Opportunities / Capital Access /

Corporate Relationships

SupportDeal Structuring / Pre Due-Diligence

Assistance / Financial Proformas

Profitability and Financial AnalysisEnterprise Valuation / Financial

Proformas and Analysis

Strategic Alliance Structuring•Ownership Structuring / Corporate

Governance / Business Development

Organization Development •Ownership Design / Compensation

Analysis /Policy and Guidebook

Development

2014 Projected Results: MBA Revenue Growth

2014 Projected Results:Goal Spend Campaign

Quantitative Measures of Success

• Revenue/Profit

• Square Footage

• Philanthropic Contribution / Board seats• Philanthropic Contribution / Board seats

• Employees (Total, Local, Minority, Women)

• Non organic growth activity

– Expanding customer base e.g. B2G

– Mergers and acquisitions

• Creating minority spending opportunities

• Participating in other management growth opportunities

Our 2013 Goal Setters:• Fifth Third Bank

• Macy’s Inc.

• Messer Construction Co.

• Metro

• Miami University

• Monarch Construction

• PNC Bank

• Procter & Gamble

• The Christ Hospital

• Al Neyer

• American Red Cross

• ArtsWave

• Catholic Health Partners

• Cincinnati Children’s Hospital Medical Center

• Cincinnati Bell

• Cincinnati Center City Development Corporation

(3CDC) • The Christ Hospital

• The Kroger Co.

• Toyota Motor Engineering &

Manufacturing, North America

• Turner Construction Co.

• U.S. Bank

• United Way of Greater Cincinnati

• University of Cincinnati

• University of Cincinnati Medical Center

• Uptown Consortium

• Urban League of Greater Cincinnati

• Viox Services

• Xavier University

(3CDC)

• Cincinnati Enquirer

• Cincinnati Reds

• Cincinnati State Community & Technical College

• Cincinnati USA Regional Chamber

• Cintas Corporation

• Dinsmore & Shohl

• Duke Energy

• Ethicon Endo-Surgery

• Fidelity Investments

2014 Portfolio Firms:• Kanu Investments, Inc.

• LaVERDAD Marketing & Media

• Megen Construction

• Muñoz Brandz

• OCG Telecom

• Pathfinder/MPI Management Consultants

• PEP

• Quality Associates

• Abel Building Systems

• Apex Environmental Services, LLC

• Aunty’s Homemade Food

• Best Upon Request

• Che International Group

• Coolant Control

• Diversified Facility Solutions • Quality Associates

• RCF Group

• SFA Architects

• SMART IT Staffing

• Sterling Print Solutions

• TechSoft Systems

• Trio Enterprises

• TriVersity Construction Company

• Validex

• Vivian Llambi & Associates

• World Pac Paper

• XLC Services

• Diversified Facility Solutions

• Diversitech

• DNK Architects

• Environmental & Safety Solutions, Inc.

• Foxx & Company, CPA’s

• Foxx Construction

• GT Industrial Supply

• Hightowers Petroleum Co.

• Hi-Mark Construction

• Jostin Construction

• We strive to build the MBA for a diverse economy

• The economy of the future must have diverse

MBA Pipeline

must have diverse representation in today’s fastest growing industries.

– Are you in one of these industries?

– Will you be?

22

“Creating a Pipeline”

Start Up Assistance &

Lending

Greater Cincinnati Greater Cincinnati MicroMicro--Enterprise Enterprise

InitiativesInitiatives

Business Literacy

Urban League

Small Bus. Assist.

Center &

AABDP

Business Development

Hamilton County Development

Center

Workforce Development

Cincinnati State

Cincinnati Minority Business Collaborative

InitiativesInitiativesAABDP

New Venture/Start Up & Certification

Minority Business Assistance Center

@ AACC

Training, Networking, Advocacy

African American Chamber &

Hispanic Chamber

MBE Certification & Corporate Engagement

Ohio Minority Supplier

Development Council

Accelerated Growth &

Expansion

Minority Business

Accelerator

Start-Up Growth Sustaining

Minority BusinessMinority Business

Accelerator Accelerator

Cincinnati USA’s

Entrepreneurial Ecosystem

24

• Contact the MBA for further assistance and information:

Denise deSilva Litter 513-579-3158

Questions?

Robert Lamothe- 513 579-3170

Rodney Swope 513-579-3140

Thank you!

Minority BusinessMinority Business

Accelerator Accelerator