Cleveland's economic leaders have worked hard to parade the city as a hub for innovation. A chance to further show off Northeast Ohio's entrepreneurial acumen is a driving force behind Shaker Heights accelerator LaunchHouse's sponsorship of Cleveland Entrepreneurship Week (Cleveland EW), an upcoming four­-day celebration of business success.

The event, scheduled for November 4-­8, was created to give entrepreneurs and investors the knowledge and resources to grow the Northeast Ohio business community, says LaunchHouse co-founder Todd Goldstein.

LaunchHouse will kick off Cleveland EW at its Shaker Heights headquarters by presenting the 11 technology startups participating in its Accelerator Program. The rest of the week will feature speakers and other events that give entrepreneurs from all over the country an opportunity to connect with potential financial backers as well as fellow businesspeople.

"We're giving them exposure to people they normally wouldn't meet," says Goldstein. "Meeting the right person can help turn a small business into a large business."

LaunchHouse pushing for the entrepreneurship event aligns with its mission of local job creation through seed capital, education and innovation, notes Goldstein. With Cleveland striving to be on the forefront of the new economy, an event like Cleveland EW can put the area in a positive national spotlight.

"We've worked to change how Northeast Ohio is viewed in terms of entrepreneurship," Goldstein says. "This [event] is about showcasing the region as a place of innovation and capital formation."

 
SOURCE: Todd Goldstein
WRITER: Douglas J. Guth
 

"Failure" is a tough word, particularly for entrepreneurial types throwing so much of their lives into a venture that might go belly up within a few months. However, Paul McAvinchey, creator of TechPint, believes valuable lessons can be learned from disappointment.

Such is the theme of this fall's TechPint conference, a casual gathering for entrepreneurs and investors in Internet technology. Coordinator McAvinchey expects more than 250 of the region's most innovative tech pacesetters to attend the quarterly-held event taking place tonight (September 26) at Sterle’s Slovenian Country House. Speakers John Gadd of Hotcards.com, Kendall Wouters of Reach Ventures and Phil Brennan of Echogen Power Systems will touch on how businesses can bounce back from seemingly crushing setbacks.

"It's a fact that you must fail many times before you see success," says McAvinchey, who moved to Cleveland from County Tipperary, Ireland, in April 2012 to lead product innovation for MedCity Media. "If you're failing, that means you're trying. That's a good thing."

Even stories of tremendous achievement, like the billion-dollar acquisition of Instagram, began on a rocky road of risk and false starts, McAvinchey points out.

"Failure will work for you if you learn from it," he says.

The informal get-together is designed to connect the region's tech thinkers over a couple pints of beers, says McAvinchey. TechPint's moniker this month is "Techtoberfest," in appreciation of this suds-filled season of the year.

Autumn also is a time for scary stories, and attendees will hear a few frightening business-related tales at TechPint. "It's important to celebrate failure," McAvinchey says. "This is a way to bring positive attention to it."

 
SOURCE: Paul McAvinchey 
WRITER: Douglas J. Guth

The large number of open jobs in the startup community indicates these companies are doing well and growing. But working for a young startup has unique challenges. Recruiters and employers discuss some of the critical qualities required for those looking for a good fit with a startup.

Cleveland Cyclewerks (CCW), a startup that manufactures and sells its own motorcycles, is set to open the first Cyclewerks-exclusive dealership at its warehouse in the Gordon Square Arts District. The owners will host a party on Saturday, October 5th with food trucks, kegs of free beer and tours of the shop, which sells accessories and also repairs bikes.

"A year ago, this place was a mess," says general manager Jon Dale. "We cleaned it out, pressure washed everything and built a new plywood floor. We wanted to keep the old building feel, though, with the brick walls and the concrete floors."

The shop at Herman and W. 65th Street will be open Monday through Friday from 9 to 5, and will soon be open on Saturdays, as well. The repair shop specializes in vintage British and Japanese bikes, and the staff can custom-build CCW bikes based on a customer's preferences. All of the company's models, including the soon-to-be-released ACE, will be on display in the store.

Owners Scott Colosimo and Jered Streng created CCW after getting laid off from their industrial design jobs in 2009. The lightweight bikes have 250cc engines, are inexpensive to maintain, and get 100 miles to the gallon. They've been described as having a "retro-futuristic" look and are priced at only $3,295.

Dale says that Colosimo and local architect Robert Maschke purchased the vacant, 70,000-square-foot warehouse, which was last home to a rubber stamping plant but built as a meat packing plant, for a small sum. They are slowly refurbishing portions of it and leasing it out to small companies or using it for CCW's operations.

CCW has grown tremendously over the past few years, and now sells bikes at 40 dealerships in the U.S. and 15 countries throughout the world. Dale, a Cleveland native, says that the company has allowed him to stay in the city and do what he loves.

"Not only is my passion my job, but I get to help revive the city," he says.


Source: Jon Dale
Writer: Lee Chilcote

The entrepreneurs behind Piccadilly Artisan Yogurt, who opened their first location in the old Grog Shop space on Coventry Road less than a year ago, will open their second location in Ohio City this fall.

Adrian and Cosmin Bota, Romanian-born brothers who grew up in Parma, have also signed a letter of intent on a retail space at West 117th and Clifton.

The Ohio City location is a slender, 1,100-square-foot storefront that's sandwiched between Crop and Bonbon Cafe in the 2500 block of Lorain Avenue. Adrian Bota says the location, which will offer the same organic, locally-sourced frozen yogurt that's available in the Coventry store, is perfect for the urban-oriented company.

"Our whole focus was not to be in the suburbs, and to focus on urban areas we’re both interested in and want to promote," says Bota. "We were looking for areas in Cleveland that had same vibe [as Coventry Village] and that we could be a part of. Ohio City was our top choice for expansion. It's a great place because people are moving back and they're really interested in reviving that neighborhood."

Bota says the new store will feature unique, creative design with an urban flair. Ariel and Otelia Vergez of design firm Vergez Inc. helped design the interior, which will feature refinished plywood design accents, tables made from reclaimed wood, and a lounge area that might feature a porch swing (the Botas haven't made up their minds yet). Local architect John Williams developed the interior plans.

Bota says the Coventry location has been successful enough that they were able to use some of their profits to launch additional stores. Construction is underway on a third location next to Melt in the Short North district of Columbus. He is talking with representatives of Downtown Cleveland Alliance about a downtown shop.

The Bota brothers, who worked at the West Side Market as teenagers, intend to source as many ingredients as possible from the market and other local vendors.


Source: Adrian Bota
Writer: Lee Chilcote

Core and shell renovations of the 150,000-square-foot Victory Center, a $26 million project located along the Health-Tech Corridor, are almost complete. Tenant build-outs will follow, and although none have signed leases yet, developer Scott Garson says that will change as his team finishes the common spaces and shows the property to more prospective tenants.

"Everybody thinks it's wonderful, great… The trick is getting the first one in," he says. "I have enough letters of intent out there that I'm confident it's only a matter of time."

Garson says the demand is there for flexible, ready-to-grow office space geared towards biomedical, research and technology companies, which is why he decided to undertake the project. He points out that nearby buildings owned by Geis Companies and Cumberland Development are almost completely full.

So far, Garson has completed the project without a bank loan, using partner equity and a $720,000 loan from the city, $2.5 million in tax increment financing, federal and state historic tax credits, and a $1 million State of Ohio job ready sites grant. Garson expects to secure bank financing in the near future for tenant build-outs.

The building's unique features include a new interior with a historic waffle slab ceiling, window wells that allow plenty of natural light, copious backup power, fiber-optic connectivity, and the right mechanicals in place for laboratory space. The building will be certified LEED Silver, saving tenants 20 percent on utility costs. Finally, it has views of downtown, free parking and HealthLine access.

"We went through a recycling program with the materials and our landscaping uses stormwater management strategies," says Michael Augoustidis of Domukur Architects, the firm that designed the project. "It's very energy-efficient."

Although he's not ready to declare victory yet, Gardon says the historic building, which was built in 1917 as the Arts Center, is nearing the goal line and ready to score.


Source: Scott Garson
Writer: Lee Chilcote

JumpStart’s Burton D. Morgan Foundation Mentoring Program offers young companies a little additional insight into running a successful business. Each participating startup is assigned between one and four mentors.

“It really depends on the stage the company is at and what their needs are,” says Anthony Hughes, director of the program. “No one mentor is going to have all the skill sets needed as these companies take their ideas to fruition.”
 
Companies do have to be involved with JumpStart to enroll. Currently, 38 mentors are involved in the program and they have assisted 33 companies since it was launched in March of 2012. The program currently has 21 companies active.
 
“The companies have generated or raised $2.9 million in capital," says Hughes. "Startups with access to mentors and advisers are seven times more likely to raise capita and three and a half times as likely to gain customers. We are responsible for creating serial entrepreneurs and polishing the diamonds in this ecosystem. They’re really flying blind without access to people who have been there, done that.”
 
The mentors come from virtually every industry and background -- from Fortune 500 companies to venture capitalists, to leaders of nationally-know startups. “We’ll entertain anyone, but through a stringent evaluation process. We use mentors who are experienced and knowledgeable,” says Hughes. “Mentors are invitation-only. We’re not trying to be elitists or exclusive.”

 
Source: Anthony Hughes
Writer: Karin Connelly

Kelli Hanley Potts has lived in Denver and Albuquerque, where she got involved in the slow food movement, replaced her front lawn with a vegetable garden, and worked for some of those cities' top chefs. When she got the urge to move back home to Cleveland, she knew she wanted to do something food-related.

That's when she stumbled upon a business idea. Despite the rise of the local food movement, most people had no idea how to cook kale, make jam or preserve food. She asked 18 female friends if they knew how to make a pie from scratch, and only two said yes.

Additionally, many people in the local farming movement have trouble explaining and marketing their products to customers, who are largely unfamiliar with them, she explains.

There are no cooking schools in Cleveland that did what she wanted to do -- connect people back to the land and back to their grandmothers' kitchens by teaching them the age-old skills of home economics -- so she decided to create one.

"I didn't want to watch a chef in front of me and drink wine," says Hanley Potts. "I wanted to learn something. I wanted to reconnect people to the lineage of the table, help them build their own table culture."

She recently launched the Agrarian Collective, an earth-to-table lifestyle school. Her mobile cooking school is offering classes this fall that cover topics like roasting your own coffee, fermented and cultured foods, and discovering local apples, among others. She'll be teaching students how to make the perfect pesto at this weekend's Cleveland Flea.

She was aided by a $5,000 low-interest loan from Bad Girl Ventures, which enabled her to purchase supplies and begin reaching out to chefs and farmers as partners.

"This is like home ec, but not quite as official and nerdy," she says. "It's about reconnecting people. All these things we once learned and were taught, they're missing. We're teaching people the 'how' of home."

Source: Kelli Hanley Potts
Writer: Lee Chilcote

As millenials, empty nesters and other demographic groups flock to downtowns across Ohio, business improvement districts -- or BIDs -- are playing an important role in ensuring that these areas are clean and safe and that residents, office workers and property owners have the amenities they need to thrive.

A business improvement district is a defined area in which property owners pay an additional tax in order to fund projects and services that enhance the area. Downtown Cleveland has a BID, and the organization provides basic "clean and safe" services, organizes events and markets downtown to prospective residents, visitors and businesses.

This week, Downtown Cleveland Alliance, which manages the downtown BID, organized the first all-Ohio BID conference, bringing together BID leaders from across the state to network and learn about issues they share in common.

"It came from the idea that there's not a unifying organization or conference for BIDs," says Anna Beyerle with DCA. "We can learn a lot from other BIDs across Ohio. The idea was to get in the same room and throw out ideas and best practices."

Topics included food truck legislation, downtown transportation, farmers markets, placemaking, and office and retail recruitment strategies.

Participants also enjoyed several tours of downtown Cleveland and the surrounding area and had a chance to learn from Cleveland's redevelopment.

Beyerle says the conference will help BIDs, such as the one in downtown Cleveland, to become more effective. "We're up for renewal in a couple years, and we're looking at how we can improve."


Source: Anna Beyerle
Writer: Lee Chilcote

When Andy Halko founded Insivia right out of college in 2002, he was more of a freelancer, picking up projects piece by piece. Today, the company is a full-service marketing firm working out of the Agora in Midtown.
 
“We’ve really evolved into a strategic marketing firm for our clients,” says Rick Scheeser, Insivia's director of operations. “Nowadays we’re their entire marketing department. We have a more strategic partnership with our clients, and we have a lot more control over what we do.”
 
Over the past year Insivia has developed its client base, grown into a 16-person company, and is looking to add a back-end developer and an account executive.
 
“Before we had lots of one-off projects,” says Scheeser. “Now our clients are more our partners; we’re working with them on a long-term basis.”
 
Scheeser says Insivia has developed a niche market in the manufacturing industry. “It really helps us understand how we can use technology in their businesses and communicate with their clients,” he says regarding developing an expertise in the market. “I don’t think you could be in Cleveland without helping manufacturing companies.”
 
Another niche evolves around small tech startups. But Scheeser says no matter what the industry, Insivia gets to know the inner workings of the client. "It’s all about learning about our clients,” he says. “We focus on long-term objectives from a marketing perspective. It allows us to really own the results, instead of just one small piece.”
 
Source: Rick Scheeser
Writer: Karin Connelly

There are very few properties in Cleveland where a resident can don a pair sandals and stroll straight to the beach from one's front door. But when it comes online next summer, the Shoreway Building will join that small and privileged group.

The building at 1260 W. 76th Street, once home to the Globe Machine and Stamping Company, has been used for years as a storage facility by the Catan family (of Pat Catan's Craft Centers).

With the reopening of the pedestrian tunnel at W. 76th Street -- a few feet from the building -- the Catans recognized that it was time to reenergize the building as a hub for city living.

Using a combination of state and federal historic tax credits and other financing sources, the Catans are renovating the empty building into 45 market-rate loft apartments with indoor and outdoor parking, huge windows and a common roof deck boasting matchless lake and downtown views.

The building also will feature an indoor fitness center and a small street-level retail space that could become home to a future cafe.

"These are true loft-style units," says Michael Augoustidis, an architect with Domokur Architects who helped design the project. "They have exposed brick walls, really big industrial-style windows, exposed concrete ceilings and concrete floors."

Augoustidis says the level of quality will set the building apart. All units will have gourmet kitchens featuring Corian countertops, hardwood cabinets, and boast an "urban feel."

There isn't a bad view in the building. The structure's orientation allows for stunning treetop views looking out over Edgewater Park and Lake Erie, or dramatic urban views looking out over the lake, Battery Park and downtown. You choose.

Units will be between 900 and 1,400 square feet and will lease for $1,000-1,900 per month.
 
Augoustidis says that units will be ready starting in May or June of next year, and that some of the old wood plank floors will be upcycled into common area design elements.


Source: Michael Augoustidis
Writer: Lee Chilcote

When Good Greens launched in 2011, the founders were confident their wellness bars would be popular. They’re packed with protein, completely natural and provide 100 percent of daily fruit and vegetable requirements. 

Within four months, the Good Greens bars were the top nutrition bar sold at Heinen’s stores, and they also landed shelf space at Dave’s Markets and Marc’s stores.
 
Two years later, the LaunchHouse portfolio company continues to be a best seller at Heinen’s. The company sold close to 480,000 bars with Heinen’s last year. They’re good for kids with allergies and people have supposedly lost 25 pounds eating Good Greens bars.
 
Good Greens are so popular, in fact, that Good Greens struggled to keep up with demand. Heinen’s wanted more and more bars, and the company lost accounts because it couldn't keep up with demand.
 
 The company hired a national distributor and is now in 200 Chicago stores, 150 Iowa stores and 100 Wisconsin stores. Good Greens also is the top selling bar on Ohio college campuses, including Ohio State.
 
Good Greens has grown from three employees in 2011 to 10 full-time and 22 part-time employees. John Huff recently joined as COO/CFO. The company is growing so fast that Shaker Heights invested $100,000 in renovations to the second floor of LaunchHouse's building and offered Good Greens a two-year lease in the four-office space.
 
Today, Good Greens sells 10 varieties, six of which are vegan and dairy free. Good Green’s new soy Greek yogurt line includes four flavors, and the company plans to introduce two more flavors by the end of the year. Coming soon is a superfood brownie.
 
 
Source: John Huff
Writer: Karin Connelly

The historic Colonial and Euclid Arcades in downtown Cleveland suffered from 40 percent vacancy last year, yet this year they added a slew of new shops and have gone from half-empty to nearly completely full.

Renamed the 5th Street Arcades, the once-moribund properties have been turned around by Dick Pace of Cumberland Development, who has breathed new life into the spaces by luring entrepreneurial tenants with fresh concepts and excitement about downtown.

"Step by step, we're getting there," says Pace, who has focused on locally themed retail that serves downtown residents and office workers. "Each month, there's something new going on. Our tenants cross-market and help each other."

Last year, a retail grant competition netted Soulcraft Furniture Gallery, which opened earlier this year, and Pour Cleveland, which will open by November 1st.

Several of the businesses in the 5th Street Arcades will soon add outdoor seating, including Pour, Sushi 86 and a yet unnamed food tenant that Pace is working with.

Additional businesses that will open this fall include Herron Starr Apparel (a shoe store), The Tea Lab (a tea shop run by Bob Holcepl of City Roast), The Olive and the Grape, and a take-out vendor called C'mon Let's Eat (CLE).

Finally, Sushi 86 is expanding to create space for banquets and cooking classes, and Alphonso's, a men's and women's accessories shop, will open later this year.

"Tenants are drawn here because this is becoming known as a retail area, an area for shopping," Pace says. "That says a lot about downtown and what's happening."


Source: Dick Pace
Writer: Lee Chilcote

Bad Girl Ventures recently was honored by the SCORE Foundation as Outstanding Non-Profit Organization for its work with entrepreneurs in starting their businesses. BGV works with SCORE mentors in its business education classes.
 
“BGV has been using SCORE mentors and services since 2010,” says Reka Barabas, director of BGV Cleveland. “We tap into their expertise and we match up our finalists with SCORE mentors.”
 
Additionally, BGV is now a Kiva Zip trustee, meaning it can recommend businesses for zero-interest loans for up to $10,000 through that organization. “Bad Girl Ventures is the first Kiva Zip trustee in Ohio,” says Barabas. “We have a two-pronged approach to helping female-owned businesses. We provide education, and if they have a strong business plan and are ready to go, they have access to capital. Having these partnerships really helps our mission.”
 
Two BGV Cleveland graduates already have been identified as candidates for the Kiva Zip loan. Anne Hartnett received a 2012 $5,000 BGV loan for Harness Cycle, which is opening this fall in Ohio City. Paula Hershman, owner of Storehouse Tea Company, is one of the first Cleveland graduates of the BGV program and will use the Kiva Zip loan to expand her business. One more graduate will be endorsed this year.
 
BGV business education courses also offer the opportunity to receive a $25,000 low-interest loan. The application deadline for the fall session is September 1.
 


Source: Reka Barabas
Writer: Karin Connelly

The founder of the successful Cleveland Flea will soon move her growing business, The Indie Foundry, into a historic mansion on St. Clair Avenue. The location will function as a co-working and classroom space aimed at helping small creative businesses to grow and flourish. It joins a growing list of new startups on that street.

"This is the business development side of a business incubator, a place where you meet other creatives," says Stephanie Sheldon. "You’re making things in the kitchen, crafting things or making stuff in the woodshop -- but when it’s time to work on your business, where do you do that? 'Hey, have you found great insurance agent? Who do you use for bookkeeping? How do you deal with a growing company?' These are the kinds of questions that the Indie Foundry is dedicated to."

The stone mansion, located behind the Slovenian National Home, is a bit of a "time capsule" that has beautiful hardwood floors, natural woodwork and two ballrooms.

Sheldon says the Indie Foundry will offer desk space and wi-fi for freelancers and creative entrepreneurs as well as classes, workshops and a slew of pop-up events.

Examples include a lecture series from Bad Girl Ventures and workshops hosted by Soulcraft, the Cleveland Culinary Launch and Kitchen, and Craft Connection.

Sheldon will also work closely with the Slovenian National Home to help improve their operations over the next year, including making the home's courtyard a signature outdoor space for events, pop-up dinners and other activities.


Source: Stephanie Sheldon
Writer: Lee Chilcote

Next week, Lutheran Metropolitan Ministry (LMM) celebrates the grand opening of its new headquarters in a former textile manufacturing shop at E. 45th Street and Superior Avenue. The redeveloped office not only makes LMM more efficient, sustainable and accessible, it also contains a 2,400-square-foot central kitchen and 6,000-square-foot metal shop that allows the group to advance its social enterprise branch.

Michael Sering, Vice President at LMM, says that the organization is able to churn out hundreds of bike racks a year using the new metal shop. Recently, LMM inked a contract with the Cleveland Clinic to build and install an additional 136 racks. LMM employs individuals from 2100 Lakeside, a men's shelter, to make the racks.

The new, spacious central kitchen will allow LMM to continue its work to employ individuals reentering society after time in prison. LMM already prepares about 1,500 meals per day for area homeless shelters and other social service facilities.

LMM is preparing to break ground on a new community garden adjacent to 2100 Lakeside. Sering hopes to build a custom fence for the garden in the metal shop.

LMM's new administrative headquarters are named after Richard Sering, Michael Sering's father and LMM's former director. Richard Sering died of cancer 10 years ago.


Source: Michael Sering
Writer: Lee Chilcote

Len Gray, a young attorney and Memphis native, has relocated to Cleveland to launch his legal startup Inlaw.me, an online recruiting aid that connects legal employers with candidates. What attracted him was the local business community's spirit of collaboration and enthusiasm.

Leslie Friend will be the first person to tell you that what she does is dangerous, but it's also a real thrill and great workout. She teaches aerial silks classes, best known as the acrobatic art form of Cirque du Soleil, at two different locations in Cleveland, the Studio Cleveland and Sokol Greater Cleveland.

"It utilizes every aspect of the body: core strength, balance and flexibility," says Friend. "Most importantly for most people, it builds confidence. A lot of people have a fear of doing stuff off the ground, and this builds up their confidence."

Aerial silks athletes climb and perform acrobatic maneuvers on nylon fabrics that are rigged to the ceiling. Friend starts class participants low to the ground, and as they advance in ability, she allows them to climb higher into the air to perform tricks. She's never had an accident, although participants sometimes do get tangled.

"We've had to build a tower of mats to reach them," she says. "We always tell people, 'If you're ever in doubt, back yourself out, lower yourself to the floor.'"

In Friend's classes, silks climbers can reach heights of up to 20 feet in the air. They entwine themselves in the silks to perform spins and hang upside down.

Although aerial silks classes are growing in popularity, there still are very few places in Ohio where you can even try it. Friend's classes have become so popular this year that she's introduced software on her websites allowing people to sign up in advance.

Classes typically cost between $15 and $20, with discounts available for five-class packages. All of the classes are open to beginners as well as more advanced aerial silks athletes.


Source: Leslie Friend
Writer: Lee Chilcote

Enterprise Community Partners is hosting its second annual Leadership in Community Innovation Awards, providing the winner with a $25,000 unrestricted grant for non-profit organizations that are creating community development solutions in Cleveland.
 
Last year’s winner was the Ohio City Market District, which attracted 30 new businesses to the neighborhood through its grant program, creating 300 jobs.
 
This year, Enterprise is introducing the Nurture an Idea Award, which recognizes a group with an innovative idea. The winner will receive $10,000 and a team of advisors that will help bring the idea to fruition.
 
“The Nurture an Idea Award is about the future,” says Kathy Matthews, an Enterprise program director. “It’s an award for an idea that hasn’t been implemented yet and needs the wind at its back to move it forward.”
 
In addition to the $10,000 awarded to the winner, a few finalists will be selected to participate in a Crowdrise fundraising campaign. Ohio Savings Bank will award $10,000 to the organization that raises the most money.
 
The application deadline is September 6.

 
Sources: Kathy Matthews
Writer: Karin Connelly