Entrepreneurship : Innovation + Job News

When Paul McAvinchey moved to Cleveland in April 2012 with his wife Rebecca to lead product innovation for MedCity Media, the seasoned entrepreneur was impressed with the entrepreneurial community here.

“When I got here, I was really excited to see all the startup activity going on,” McAvinchey says. But the native of County Tipperary, Ireland, who also lived in Chicago, Munich and Dublin, was surprised that there were no informal events bringing all the startup organizations together. “I was used to having events where all the disparate groups came together to share their thoughts and ideas.”
 
So McAvinchey set out to start TechPint, a casual gathering for entrepreneurs and investors in internet technology. He made hundreds of phone calls and brought the area’s startup organizations together to plan the first TechPint event on Thursday, June 20 at 5:30 p.m. at Market Garden Brewery.
 
McAvinchey calls TechPint a “mini-tech conference in a bar with pints.” But that doesn’t mean TechPint isn’t a valuable resource. “It’s a really casual setting with drinks,” he says. “But we’re focused on a value-driven event where you are likely to go home with new ideas to work on or new things to think about.”
 
Many of the major startup organizations are on board, including JumpStart, Bizdom, LaunchHouse and MedCity Media. Speakers will be Mike Belsito, founder of eFuneral, John Knific, founder of DecisionDesk, Josh Walsh, founder of Designing Interactive, and Bizdom’s Paul Allen.
 
McAvinchey plans to hold TechPint every three months. Space is limited to 150 people, and it’s already nearly sold out. Tickets are $12 each.

 
Source: Paul McAvinchey
Writer: Karin Connelly

Jillian Davis’ Toast wine bar opened in the Gordon Square Arts District April 15 and her unique take on food, wine and cocktails fits right into the neighborhood. The restaurant/wine bar specializes in doing things a little differently.

“We serve revitalized farm fare, and most of what we serve is locally sourced,” says Davis. “We have wines that are off the beaten path and craft cocktails.” In fact, Toast makes their own tonics for their cocktails, grows some food ingredients on-site, and all dinners are served up in small plate fashion. “People like to graze a little more these days,” Davis says.
 
While it took Davis a little while to open Toast’s doors, things are thriving now that she went through the Bad Girl Ventures business plan program and, thanks to the BGV program, won an ECDI loan. “The BGV program was great, I learned a lot,” says Davis. “ECDI was someone BGV put forth as an alternative to the banks. It worked out really well for me. I got money for inventory and equipment. No one will give you money for that stuff.”
 
Davis has hired 10 employees, including chefs, servers and bartenders and hopes to add more staff as Toast grows. “Our chefs are really slaves to the kitchen at this point,” she says. “As we start spreading the word and getting people in the door, we’ll be getting more staff.”
 
Toast has fit right into the neighborhood culture as well. Davis calls Toast’s wine list a bit more “geeky” than other area places, and they are the only restaurant in the area serving small plates.
 
“We all really complement each other; there’s a great synergy in the area,” says Davis. “Our wine selection sets us apart. We’re different than everybody, but we fit in."

 
Source: Jillian Davis
Writer: Karin Connelly

Fifteen early stage business owners will have a chance to pitch their companies on the Cavs’ practice court tonight, Thursday, June 13, at Open Pitch Night. The free event, sponsored by Bizdom, The Incubator at MAGNET, Herman Miller and APG Office Furnishings, is designed to let owners of young companies perfect their pitches in front of a live audience.
 
“It’s an opportunity for them to get up in front of a group and practice their pitches, get some quick feedback from a bunch of folks and improve their delivery,” says Bizdom leader Paul Allen.
 
The 15 entrepreneurs were selected out of a group of 20 applicants. “We were looking for a diverse range of ideas and markets,” says Allen. “It’s a nice mix of people at different levels of maturity or evolution. Some businesses are little more than an idea; some are built out a little bit. They represent the continuum of startups.”
 
Organizers are expecting about 100 people to attend and provide feedback and insight to the pitchers. If all goes well, Bizdom plans to host similar pitch events three times a year in the future.
 
Heavy appetizers and a cash bar will be available. The event is from 6 pm-9 pm at Quicken Loans Arena. Two companies may get a chance to fill the last two slots in Bizdom’s August incubator program.

 
Source: Paul Allen
Writer: Karin Connelly

The Cuyahoga County Next Generation Council (NGC) will host Spark Plug, an event to celebrate small business growth and the region’s many opportunities for funding and growth, June 6 at Negative Space Gallery. The event kicks off Small Business Incubator Month.
 
“Spark Plug is focused on small business accelerators and incubators,” says Tammy Oliver, program organizer and a member of NGC. “It brings together all of the amazing resources we have in Cleveland and Northeast Ohio for young and innovative people.”
 
More than 20 incubators, accelerators and funding organizations will have tables set up to explain what they do and how they can assist a young business. “There hasn’t been an event before this where all of the incubators and accelerators come together in the same room,” says Oliver. “By supporting each other these organizations are supporting the region and all of the businesses. It’s not a secret that small business drives the economy.”
 
Successful businesses that have benefitted from some of the area’s resources will make presentations. Oliver hopes their stories will encourage other aspiring entrepreneurs. “There are so many people out there with amazing ideas and they don’t know where to start,” she says. “Hopefully, they will walk away with more knowledge and know they can take smart risks and there are a lot of people here to help them.”

Spark Plug runs from 5:30 p.m. to 8:30 p.m. Registration is preferred, but Oliver says walk-ins are welcome. Admission is free.


Source: Tammy Oliver
Writer: Karin Connelly

During the past school year, Youth Opportunities Unlimited (Y.O.U.) brought entrepreneurship education to five area high schools. Certified entrepreneur teachers helped more than 200 students come up with business ideas, create the businesses and execute the plans.
 
On May 23, 11 semi-finalists gathered at Ernst and Young’s education center in Cleveland to present their final business pitches in hopes of winning the E City (Entrepreneurship: Connecting, Inspiring and Teaching Youth) Northeast Ohio Young Entrepreneur of the Year title.
 
The semi-finalists gave eight-minute presentations, describing their businesses, marketing plans and business strategies. The audience voted to determine the three finalists and a three-judge panel selected the winners.

“They had fun, but it’s competitive,” says Carol Rivchun, president of Y.O.U. “They have to stand and make their PowerPoint presentations to the judges. The presentations included cash flows, Return on Investment, and budgets. And the judges really grilled them.”
 
Vanessa Galvan of T.W. Harvey High School in Painesville won the top honor of Young Entrepreneur of the Year, as well as $1,000 for her business, Piñata Time. Galvan's company makes kits that include everything needed to create a piñata. The judges felt Galvan has a strong business and marketing sense of what it would take to make Piñata Time a success.
 
Julianna Pierson of Shaw High School took home second place and $500 for Cat Sit, a cat sitting business that includes all toys and supplies.
 
Both Galvan and Pierson will travel to New York in October to compete for $10,000 in the Network For Teaching Entrepreneurship’s national business plan completion.
 
Maria Moreno, also of T.W. Harvey High School, took third place and won $250 for her customized floral accessories business, Bright Pickins.

 
Source: Carol Rivchun
Writer: Karin Connelly

Elisabeth Sapell admits that she has a sweet tooth. But she also grew up in her family’s grocery store, Sapell’s Bi-Rite in Lakewood. So she paired her love for candy with her knowledge of the grocery store industry and will soon open the supermarket of candy stores, Candytropolis on Richmond Road across from Richmond Mall.

“It’s a large candy superstore,” Sapell explains. “It’s 6,000 square feet of pretty much every candy you can think of. You name it, it will be there. It’s a city with the streets lined with colorful candy fun.”
 
Sapell wanted to start her own business for a while before she came up with the idea for Candytropolis and joined Bad Girl Ventures' spring 2013 class. While she acknowledges the candy market is saturated, Sapell’s vision of a superstore that carries variety, specialty items and gift baskets, paired with a prominent online presence, will set her apart from the rest.
 
And Sapell has candy. “Candy makes everyone happy,” she gushes, pointing out that different candies conjure up nostalgic memories to any age. “It’s recession proof. Everyone wants a treat when times are tough.”
 
But Sapell also has a solid business plan in place. In fact, she was a finalist in the BGV business plan competition, and the experience helped solidify her vision.

“It was the opportunity to go to the classes, meet a lot of people and make connections,” she says. “And I wanted to be around like-minded people who wanted to do something on their own terms. It gets lonely when you’re trying to plan.” She also received an SBA loan after learning about the option through the BGV program.
 
Sapell recently hired an assistant manager and has candidates lined up for stock people, cashiers, a team leader and a social media specialist. Candytropolis is scheduled to open in September.

 
Source: Elisabeth Sapell
Writer: Karin Connelly

Kelli Hanley sees the big picture in cooking -- and she wants to teach people the whole concept of it, from sourcing the produce, to understanding what’s in your pantry, to putting a meal on the table. So she started The Agrarian Collective, a mobile cooking school that does just that.

“When I started The Agrarian Collective, I envisioned an Earth-to-table lifestyle school,” she explains. “My approach is around understanding the relationships between your pantry and kitchen table. My classes are not designed to just watch someone cook.”
 
Hanley recently won a $5,000 loan from a private giving circle after participating in the Bad Girl Ventures spring 2013 business plan competition. She’ll use the loan to build her mobile kitchen, with six two-burner cooking stations. Hanley will take the mobile kitchen to farms and farmers markets and other locations around Northeast Ohio.
 
Hanley’s first class will teach people how to make strawberry jam. The class will meet at a Hiram farm. “We’ll have scones and coffee in the morning and then we’ll go out and show how to pick the best berries for making jam,” she says. “We’re really focusing on hands-on technique.”
 
Most of the classes will collaborate with farmers, chefs or tradespeople to teach specific skills. “When you go home you’ll really feel confident that you can put what you learned to use in the kitchen,” says Hanley. She is working with the Cleveland Culinary Launch, chef Karen Small of the Flying Fig and urban farmers to design the classes.
 
“There has been amazing interest,” says Hanley. “People are telling me they can’t wait for my classes. I feel like it’s something that’s really taking off.”

 
Source: Kelli Hanley
Writer: Karin Connelly

The Cleveland Culinary Launch and Kitchen and the Economic and Community Development Institute (ECDI) will be hosting a business incubator for food and beverage entrepreneurs this summer. The nine-week program will focus on the specifics of opening a food-related business -- from food safety and nutrition to marketing and product development.

“We’ll really touch on everything to get a business off the ground,” says Emily Sullivan, ECDI Cleveland operations coordinator. “We’re creating a food incubator program. This is a hands-on look at getting a food business started.” Participants also will develop business plans and have opportunities to meet with ECDI managers about securing a loan.
 
This will be a hands-on program, says Carolyn Priemer, general manager of the Culinary Launch. “It’s not going to be a classroom setting,” she explains. “We’re going to be out in the community and in restaurants.”
 
Incubator participants do not need to be Culinary Launch tenants to enroll in the program. However, there is a $200 fee once applicants are accepted. Scholarships will be available. Ten companies will be accepted. Applications will be taken through mid-June, with the program beginning in July.
 
Open for six weeks now, the Culinary Launch has six tenants, ranging from an ice cream maker to caterers to a custard frosting maker. The Launch is a partnership between ECDI, Carolyn and Gordon Priemer of J&M Real Estate, and Tim and Bill Skaryd of Hospitality Marketing and Sales.

 
Sources: Emily Sullivan and Carolyn Priemer
Writer: Karin Connelly

Bizdom Cleveland has invested in 16 young companies since it set up shop in January 2012, and the organization is targeting 18 more companies this year. While many of the companies are local startups, Bizdom also scours the country in search of promising businesses to recruit to Cleveland.

So far Bizdom has brought four companies to Cleveland: Queryly from New York, MascotSecret from San Francisco, Firmly Planted from Los Angeles and CourseBuffet from Seattle.
 
“The bottom line is we’re looking for the best and the brightest wherever we can find them,” says Paul Allen, leader of Bizdom Cleveland. “We find them, and then we do our best to sell them on the benefits of doing business in Cleveland.”
 
It’s not difficult to recruit companies to the area, given Cleveland’s support of small startups. “There’s a very large and organized infrastructure here,” Allen explains. “Cleveland has a bunch of organizations that provide support, expertise, resources, investment, equity and debt funding. The continuum of organizations that support small business is unlike other parts of the country.”
 
And the assistance is accessible. “Cleveland has a tight-knit startup community that doesn’t take long to identify the key players,” Allen says. “They exist here and you can access them.” Allen points out that the Dan Gilbert and Quicken Loans name also attracts businesses.
 
One of Bizdom’s requirements is that its portfolio businesses locate in Cleveland. All four relocated companies have chosen downtown for their headquarters.
 
Bizdom companies have created 36 full-time and 10 part-time jobs. Allen hopes more out-of-town companies will come to Cleveland for Bizdom’s fall accelerator program in August. “We have lots of applicants from out of state for August,” says Allen.

 
Source: Paul Allen
Writer: Karin Connelly

Jewels Johnson dabbled in a few different career paths before she found her true calling: baked goods. She grew up in Shaker Heights, went off to London, Charlotte, Las Vegas and Chicago before returning to Shaker in 2006 to work as a teacher at Shaker Heights High School.
 
Then, in 2011, armed with her grandmother’s recipe box, Johnson opened Sugar Plum Cake Company. “I’m a self-taught baker; my grandmother taught my mom and my mom taught me,” she says. “My inheritance was a 1937 KitchenAid mixer, the oldest known certified one that still works.”
 
Sugar Plum specializes in custom made cakes, cupcakes and other goodies. Everything is custom made to order. Johnson’s baked goods are so popular she quit her teaching job this year to concentrate on Sugar Plum full-time.
 
“For me, baking was really something to do during the summer,” Johnson says. “But it allowed me to quit my job two years later.” The business has taken off, and customers usually have to order at least a week in advance. Sugar Plum has 600 clients, with more than 400 being repeat customers. Johnson reports that sales have increased by at least 50 percent per quarter.
 
Earlier this month, Sugar Plum Cake Company was named the grand prize winner of the Spring 2013 Bad Girl Ventures Business Plan Competition. Johnson received a $25,000 loan to grow her business.
 
Johnson recently teamed up with Fresh Fork Market to develop a line of baking mixes using locally sourced flour and natural sweeteners, called Devour! Gourmet Baking Mixes. The line features a variety of cake, brownie, pancake and bread mixes. The line is available through Fresh Fork Market and Sugar Plum. Johnson is working with some additional retail sites to carry the Devour! line.
 
Johnson in the in the process of looking for a permanent location, where she intends to offer pop-up space for local artists while selling her cakes. She employs seasonal workers during peak times to help with deliveries and plans to hire three permanent employees this year to help with the Devour! production.

 
Source: Jewels Johnson
Writer: Karin Connelly

On Thursday, May 2, Bad Girl Ventures celebrated nine finalists in its business plan competition during its spring 2013 graduation ceremony at The Galleries at CSU, announcing the winner of its $25,000 BGV loan and other awards.

Jewels Johnson, owner of the Sugar Plum Cake Company, earned the $25,000 loan for her custom cake bakery. She plans to use the loan to open and expand her new physical store and offices, as well as develop her Devour! Gourmet Baking Mixes line.
 
“We were very impressed with her approach and creativity,” says Reka Barabas, director of BGV Cleveland. “Jewels was super-energetic during the entire course. She went the extra mile and followed up.”
 
The nine women-owned businesses spent nine weeks in BGV’s business course, hashing out their business plans and tweaking their businesses. The class culminated with the participants giving a 60-second pitch to a selection committee.
 
In addition to the grand prize, Su Nimon of Journey Art Gallery and Kelli Handley of The Agrarian Collective each received $5,000 loans from a private giving circle. It was also announced that Jillian Davis of Toast Wine Bar, a BGV Fall 2012 finalist, received a loan from BGV partner the Economic Community Development Institute (ECDI).
 
“All of the finalists are impressive because of their huge passion in what they do,” says Barabas. BGV will continue to work with its partners in the upcoming weeks to help the other finalists secure business loans.
 
BGV will be accepting applications for its fall business class from June 1 through Sept. 1.

 
Source: Reka Barabas
Writer: Karin Connelly
 

Nine young Northeast Ohio businesses were inducted into the Charter One Launch100 Leadership Circle on April 25. Local inductees included Nicole Zmij, CEO of Amplified Wind Solutions in Cleveland, Lindsay Sims, founder and CEO of Renter’s BOOM, Lissette Rivera, founder of SafeCare, all in Cleveland, and Shaquita Graham, CEO of King J Transportation in South Euclid.

“The Launch100 Leadership Circle really focuses on minority entrepreneurs and encourages them to take the risk of starting a new venture, particularly those who have the revenue potential of $10 million,” says Ken Marblestone, president of Charter One and RBS Citizens bank. “The Leadership Circle honors leaders within the Launch 100 group and works to inspire them to take risks and network with each other, and make sure they are recognized for their ideas and entrepreneurism.”
 
Founded in 2012, the Launch100 offers a peer networking opportunity for minority and women business owners with high growth potential.  “We’re focused on how to help these expanding businesses succeed,” says Marblestone. “We recognize them with an award and then offer conversation about the hurdles they’re facing. That whole dialog leaves the entrepreneurs full of motivation and ideas, and ready to tackle another hurdle.”
 
The induction ceremony was held at JumpStart’s offices. Other regional companies inducted included Body Phyx, Design Flux Technologies, On Demand Interpretation Services, OrthoData and Wahconah Group.

 
Source: Ken Marblestone
Writer: Karin Connelly

Danny Sheridan comes from a family of entrepreneurs -- his father invests in small tech businesses and deals in commercial real estate for medical officers, and his mother is a marketing consultant. So it was only natural that the junior at Beachwood High School would start his own business. After finding he had a knack for selling things on eBay, Sheridan started Woodside Distributors, distributing energy efficient LED lights for Solon-based Mr. Beams.
 
“Mr. Beams didn’t have a lot of eBay, but I was really good at eBay,” says Sheridan. “When I ran into them I immediately was able to distribute their products online. I was able to add my area of expertise, and now we’re on Amazon and other places.”
 
Sheridan’s business has quadrupled in the past few months and he expects to reach $100,000 in sales by the end of the year.
 
Sheridan, who is president of the Beachwood High School Business Club, set up a booth at Entrovation on April 19 to showcase his company and the products he distributes. “There were a ton of people -- 1,000 or so -- who just came by to say hi,” he recalls. “The biggest reaction was, ‘Hey, you’re just a kid.’ Then it was, ‘Wow, he’s actually selling.’ I was fortunate; I made a few hundred bucks that day.”
 
In fact, Sheridan won the Innovative Entrepreneur of the Year award, sponsored by the Burton D. Morgan Foundation. He received the top prize of $3,000. “I’m excited to buy more inventory and expand even faster,” he says.
 
Sheridan’s business is growing so fast, he’s looking for new fulfillment options. “I’ve been using Amazon to do more fulfillment,” he explains. “But it’s getting to the point I can’t ship from my house any more. The mailman can’t keep up.”

 
Source: Danny Sheridan
Writer: Karin Connelly

The fourth Blackstone LaunchPad opened on the CWRU campus on April 23, providing a place for aspiring entrepreneurs to gather, learn and get advice.

“LaunchPad is aimed at students seeing it and saying, ‘I have an idea,’” says Deborah D. Hoover, president and CEO of the Burton D. Morgan Foundation. “It’s aimed at students walking in and talking to people and an idea takes off.”
 
The Burton D. Morgan Foundation in Hudson and the Blackstone Charitable Foundation announced in November 2011 that they had committed $3.2 million over three years to open LaunchPad locations in Northeast Ohio to train area student entrepreneurs.
 
The LaunchPad is a venture coach program developed at the University of Miami, Florida in 2008. The program provides participants with advice and mentorship to take business ideas to fruition. Students are matched up with venture coaches to guide them through the development process.
 
The other Northeast Ohio LaunchPads are on the campuses of Baldwin Wallace University, Lorain County Community College and Kent State University. The goal is to create 150 new sustainable companies in the next five years, which could generate as many as 3,000 jobs. Hoover says they expect to exceed that goal.
 
More than 40 students already are registered with the CWRU LaunchPad and 16 are exploring their business ideas. “More than 400 student ventures are underway among the four campuses,” says Hoover. “We think that’s pretty great.” Registration is ongoing.
 
Nearly 200 people turned out for the opening in CWRU’s Thwing Center. “It was great, we were really pleased with the way it went,” Hoover says of the opening. Attendees included Case president Barbara Snyder and Bob Sopko, director of the CWRU LaunchPad, as well as Joan Solotar, chair of the Blackstone Charitable Foundation and Vinny Gupta, chair of the Ohio Board of Regents.

 
Source: Deborah D. Hoover
Writer: Karin Connelly

Chris Armenio and Art Geigel like having everything they need right at their fingertips. Pairing smart phones with tinkering on a hobbyist level, the two came up with iOTOS, a way to control everything from the garage door opener to the coffee maker through smart phones and tablets.
 
Armenio and Geigel developed iOTOS through the LaunchHouse Accelerator Program last year. Based on a technology known as “the Internet of things,” the tech wirelessly connects consumers and businesses to the things they use every day. The Internet of things market is expected to hit $14.4 trillion in the next 10 years.
 
“It started as an easy way to control hobby projects through a website or email for the hardware hackers,” explains Armenio of their NiOS wireless hub. “As we started looking out there, we found more and more diversified companies were looking to fit this stuff with their commercial products.”
 
The technology and iOTOS’ offerings are growing in popularity as the concept and demand takes off. The company was named “Most Promising Startup” at 2013 NEOSA Tech Week’s Best in Tech awards last week.
 
So far, the company has sold its technology to garage door opener retrofit packagers.  iOTOS recently announced pre-sales of its NioGarage, a retrofit WiFi garage door system. “We’re in pretty advanced talks with a few Northeast Ohio companies,” says Geigel.
 
iOTOS has four full-time employees, including Armenio and Geigel, two salespeople and three part-time employees. The company recently brought on Jim McGreevy as vice president of business development.

 
Sources: Chris Armenio and Art Geigel
Writer: Karin Connelly