Biz plan tips, a Hyde Park Angels mixer, and more

Crain’s brings you weekly news of seminars, networking events, awards dinners, contests and courses of interest to Chicago-area entrepreneurs. Send your event announcements to smallbizcalendar@gmail.com

EVENTS JUST ANNOUNCED

Tuesday, May 8
Becoming an Expert in Your Field
Jill Salzman, of the Founding Moms, teaches you how to create a powerful platform for your brand. Learn practical, actionable tips and tricks so that you can become a trusted source and establish yourself as an industry leader.
Place: Delightful Pastries, 1710 N. Wells St.
When: 6-8 p.m.
Cost: $35
Register

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Wednesday, May 9
How to Write a Business Plan
You have questions about writing your business plan? Is your business less than three years old? This workshop by the City of Chicago Treasurer’s Office can help.
When: 6 p.m.
Place: 4321 S. Cottage Grove Ave. Map
Cost: Free
Register

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Wednesday, May 9
The Job Order Contracting Informational Seminar
The City of Chicago’s Job Order Contracting program provides contract for prime contractors and subcontractors. This session is a chance for business owners, small businesses, minority- and women-owned businesses to learn about this program.
When: 3-4:30 p.m.
Place: Chicago City Hall, 121 N. LaSalle St., Room 805 Map
Cost: Free
Information or 312.744.5344

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Wednesday, May 9
Mastering Cash Management: Keys to Survival and Success
Learn how you can improve business results by the effective use of financial tools for short- and long-range planning, analysis and cash management.
When: 7-9 p.m.
Place: Schaumburg Central Library District, Rasmussen North, 130 S. Roselle Road Schaumburg Map
Cost: Free
Register

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Friday, May 11
Financing Strategies for Your Business
Discover new sources of capital for your business. Learn the correct way to borrow money from friends and family, what angel investors look for, how to prepare a loan proposal and more. Also learn how you can apply for a small -business loan of up to $50,000.
When: 9:30-11 a.m.
Place: Chicago City Hall, 121 N. LaSalle St., Room 805 Map
Cost: Free
Information or 312.744.5344

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Tuesday, May 15
Must Have Entrepreneurial Resources
Get an overview of technology resources that can help you streamline your business, stay ahead of competition and make money by staying current and competitive at this Chicago Entrepeneur Meetup Group.
When: 6-9 p.m.
Place: Campanelli YMCA, 300 W. Wise Road, Schaumburg Map
Cost: $15
Register

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Thursday, May 17
Entrepreneur Commons
A network of entrepreneurs meets to provide peer support, share issues and successes on current projects and swap information and contacts in a trusted environment. You must be an entrepreneur to attend.
When: 8-10 a.m.
Place: Foley & Lardner LLP, 321 N. Clark St., Suite 2800
Cost: Free
Register

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Friday, May 18
Business Licensing 101
Seminar presents the basics of getting your business licensed with the city of Chicago. Learn about the city’s Business Assistance Center, three simple steps to obtaining a licenses and resources available to help you succeed.
When: 9:30-11 a.m.
Place: Chicago City Hall, 121 N. LaSalle St., Room 805 Map
Cost: Free
Information or 312-744-5344

EVENTS THIS WEEK

Tuesday, May 1
Hyde Park Angels Office Hours
Fifteen-minute appointments for entrepreneurs interested in learning about Hyde Park Angels and startup funding.
When: 9 a.m. – noon
Place: Starbucks, 430 N Clark Map
Cost: Free
Register

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Tuesday, May 1
Chicago Startup Ideation Bootcamp
Got a great idea for a business, but don’t know where to start? In just three hours, the Startup Ideation Bootcamp will help you improve your idea, come up with new ideas and even recruit potential co-founders.
When: 5:30-9:30 p.m.
Place: Bank of America, 135 S. LaSalle St., 43rd floor Map
Cost: Free
Register

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Wednesday, May 2
Talk to City Inspectors: Ask Questions, Get Answers
To operate successfully in Chicago you must know legal requirements for businesses. People from five city departments will provide insight on how you can comply with rules and pass inspections.
When: 3-4:30 p.m.
Place: Chicago City Hall, 121 N. LaSalle St., Room 805 Map
Cost: Free
Information or 312.744.5344

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Wednesday, May 2
Licensing, Permit & Inspections 101
Talk to city of Chicago Inspectors and get your questions answered about requirements for you business
When: 3-4:30 p.m.
Place: Chicago City Hall, 121 N. LaSalle St., Room 805 Map
Cost: Free
Information or 312.744.5344

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Wednesday, May 2
Kellogg Turnaround Management Conference
The Kellogg School of Management and Larry and Carol Levy Institute for Entrepreneurial Practice host the sixth-annual forum on factors critical to success in turnaround situations, today’s current challenges and industry trends.
When: 7 a.m.-6 p.m.
Place: University Club of Chicago, 76 E. Monroe St. Map
Cost: $49-$169
Register

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Thursday, May 3
Victory in Procurement Marketing to the Federal Government
Small-business owners can learn how to effectively sell their service or product to governmental agencies. Learn to target, land meetings, improve your elevator pitch and other tips during this workshop.
When: 8 a.m.-noon
Place: East Bank Club, 500 N. Kingsbury St., South River View Room Map
Cost: Free
Information or call 312.853.3477, ext 0

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Thursday, May 3
Import Benchmarking Forum
Learn about compliance issues, how to save money on duties, valuation, entry customs, saving money on duties and more at this forum for importers.
When: 8 a.m.-4 p.m.
Place: Sandler Travis & Rosenberg, 225 W. Washington St., 5th floor Map
Cost: Free (RSVP by April 10)
Information

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Friday, May 4
Market Like a Guerilla, Sell Like a Gorilla
Guerilla marketing is a cost-effective way to spread your message and may help you get in front of a potential customer. When you attend this workshop you’ll learn some of the most important techniques of the art of selling.
When: 8:45 a.m.-noon
Place: Score/SBA, 500 W. Madison St., Suite 1150 Map
Cost: $50-$60
Register

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Friday, May 4
How to Start a Childcare Business
This workshop by the Women’s Business Development Center will help you avoid mistakes by preparing a business plan and learning step-by-step how to launch your business.
When: 9:30 a.m.-1 p.m.
Place: Chicago City Hall, 121 N. LaSalle St., Room 805 Map
Cost: Free
Information or 312.744.5344

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Friday, May 4
Deadline: 2012 White Board Challenge Entries
If you have a brilliant idea that is missing much-needed public recognition, this is the venue. Finalists get five minutes, a whiteboard, a captive audience, and a chance to win $5,000 in cash prizes for their business. Limited to 100 entries.
Deadline: 5 p.m.
Entry Information

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UPCOMING EVENTS

May 7-9
The !deation Conference: Be Human
Join some of the most innovative thinkers and practitioners in the field of social good — businesses, organizations, influencers, etc. — to help others develop thoughts and tangible next steps for greater impact in their respective work.
Place: River East Arts Center, 435 E. Illinois St. Map
Cost: $299-$998
Information

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Tuesday, May 8
1871 Chicago Founder Stories: Matt Maloney and Mike Evans, GrubHub
Kickoff event for monthly event where company founders talk about how they launched their digital startup
When: 6-8 p.m.
Place: Merchandise Mart, 222 Merchandise Mart Plaza, 12th floor Map
Cost: Free
Register

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Tuesday, May 8
Identifying the Market Viability of Your Business Concept
How do you know if your idea will thrive in the marketplace? Learn how to research markets, evaluate other business ideas, define target markets and other information needed before you start or expand your business.
When: 6-9 p.m.
Place: Women’s Business Development Center, 8 S. Michigan Ave., 4th Floor Map
Cost: $45-$50
Register

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Tuesday, May 8
Best Practices for Transitioning a Business to the Next Generation
Moderator, Deanna Salo, CPA of Cray Kaiser Ltd., will chair a panel of younger-generation business leaders in discussion on the successes and challenges they have encountered in making their transitions. Chicago Family Business Council.
When: 3-6:30 p.m.
Place: Hilton Chicago, 720 S. Michigan Ave. Map
Cost: Free
RSVP (Required)

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Wednesday, May 9
Workshop on City Treasurer Business Plan Competition
Learn how you may win up to $5,000 through this annual contest. Three business plans from startups or existing small businesses will win awards, based on the clear, concise articulation of their business idea, creativity, marketing, sales strategy and overall viability.
When: 6:30-8:30 p.m.
Place: Quad Communities Development Corp., 4321 S. Cottage Grove Map
Cost: Free
Register

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Thursday, May 10
13th Annual ITA CityLights Awards Gala
Technology executives, entrepreneurs, corporate executives and investors in the region gather for an evening of dining, socializing and celebrating companies, individuals and institutions that are leading technological breakthroughs.
When: 6-9 p.m.
Place: Union Station, Canal & Jackson Map
Cost: $250-$300
Register

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Thursday, May 10
Connection Points: Networking with Event-Related Professionals & Those Seeking Event-Related Services
This Connection Points event will include plenty of networking time and a short panel presentation where resources in each discipline share insights on trends in the industries and answer questions from participants.
When: 5:30-7 p.m.
Place: Vosges Haut Chocolat, 951 W. Armitage (at Sheffield) Map
Cost: $20 in advance, $30 at the door
Register

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Tuesday, May 15
Built In Chicago Launch
Startups get an opportunity to present their companies in front of 350 investors and fellow entrepreneurs.
When: 6-9 p.m.
Place: Merchandise Mart, 222 Merchandise Mart Plaza, 12th floor Map
Cost: $10-$15
Register

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Tuesday, May 15
Take the Mystery out of Finance
Program provides real-world examples and encourages ask questions you may have avoided asking previously. Learn the Five C’s: cash flow, collateral, capital, character and conditions, and about financing through equity, debt, receivables, purchase order and leasing.
When: 1-2:30 p.m.
Place: Women’s Business Development Center, 8 S. Michigan Ave., 4th Floor Map
Cost: $10 in advance, $20 at the door
Register

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Wednesday, May 16
How to Win Contracts and Become a Long-Term Sustainable Supplier
Learn how to stay current about how to compete in the corporate supply chain by differentiating your business from your competition.
When: 9-11a.m.
Place: Women’s Business Development Center, 8 S. Michigan Ave., 4th Floor Map
Cost: $30.00
Register

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Monday, May 21
Webinar: Joint Business Counseling: Sales & Marketing Strategies to Grow Your Business
Session for established business owners seeking to grow their businesses through government and corporate contracting. Learn how to strategically plan your sales and marketing strategies in an online, interactive group counseling session.
When: 2-3:30 p.m.
Cost: Free
Register

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Wednesday, May 23
Greater Chicago Networking Extravaganzas
Annual event brings together the business community for relationship-building opportunities featuring interactive presentations by Lillian Bjorseth and Jason Jacobsohn.
When: 5:50-8:45 p.m.
Place: The Metropolitan Club, 233 S. Wacker Drive Map
Cost: $55
Information/Registration

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Thursday, May 24
White Board Challenge
Watch a contest where entrepreneurs get five minutes and a whiteboard with colored markets to present their business idea to a panel of their peers for up to $5,000 in cash prizes for their business.
When: 5:15-8:30 p.m.
Place: IBM Innovation Center, 71 S. Wacker Map
Cost: $10-$35
Register

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Friday, May 25
Starting a Business in Illinois
Learn how to evaluate yourself, your idea, finding a niche and more at this startup workshop.
When: 2-4 p.m.
Place: Chicago State University, 9501 S. King Drive, BHS room 508 Map
Cost: Free
Information or 773.995.3938

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Wednesday, June 6
Workshop on City Treasurer Business Plan Competition
Learn how you may win up to $5,000 through this annual contest. Three business plans from startups or existing small businesses will win awards, based on the clear, concise articulation of their business idea, creativity, marketing, sales strategy and overall viability.
When: 6:30-8:30 p.m.
Place: JVS Chicago/ IL SBDC/Duman Entrepreneurship Center, 216 W. Jackson Blvd, Suite 700 Map
Cost: Free
Register

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Thursday, June 7
Women’s Bar Association of Illinois Installation Dinner
Incoming President Karina Zabicki DeHayes will detail the goals for her term and unveil her mission for the upcoming year, “Women and Men Partnering for Excellence.”
When: 4-8 p.m.
Place: The Hilton Towers, 720 S. Michigan Ave. Map
Cost: $110-$125 (sponsorships available)
Information or call 312.341.8530

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Wednesday, June 13
Entrepreneur Training Program
Eight-week course on developing your own business plan, learning how to start and run a business.
When: 6-9 p.m.
Place: Chicago State University, 9501 S. King Drive, BHS room 502 Map
Cost: $150
Information or 773.995.3938

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Thursday, June 14
The Business Event 2011
Join Jewish B2B Networking, Inc. and Small Business Advocacy Council for the 2nd annual small-business and job event. Over 100 vendors, 5,000 business networkers, over 30 employment recruiters, and prominent speakers.
When: 1-7 p.m.
Place: 3333 W. Touhy Ave., Lincolnwood Map
Information

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June 22-25
Techweek Expo
It’s a trade show and innovation place where Fortune companies exhibit and demo the newest tech products alongside early-stage startups and university-level cutting-edge research in front of thousands of Techweek participants.
When: 8 a.m.-8 p.m.
Place: Merchandise Mart, 222 Merchandise Mart Plaza Map
Cost: $20-$40 (expo only)
Information

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Wednesday, June 25
Workshop on City Treasurer Business Plan Competition
Learn how you may win up to $5,000 through this annual contest. Three business plans from startups or existing small businesses will win awards, based on the clear, concise articulation of their business idea, creativity, marketing, sales strategy and overall viability.
When: 6:30-8:30 p.m.
Place: Chatham Business Association, 806 E. 78th St
Cost: Free
Register

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Outrage over tax breaks in Illinois

In the wake of last week’s news that Sears would slash 100 jobs at its Hoffman Estates headquarters just months after receiving a $150-million tax break from the state, playOccasion.com CEO Aksh Gupta sent out this tweet:We were intrigued by this idea and asked him to expand on it. His guest post appeared here Wednesday, and it sparked a great conversation on this blog and elsewhere.

Since we’re fans of Jeffrey Carter’s Points and Figures blog, we couldn’t help but notice the counterpoint he wrote later in the day, and he kindly agreed to let us republish it here. (Today’s news that Sears is posting a big loss and plans “to take whatever steps are necessary” casts the challenges ahead in even starker relief.)

Outrage Over Tax Breaks in Illinois

By Jeffrey Carter

In Crain’s Chicago Business, there was an article that said the $150 million in tax breaks for Sears Holdings Corp. was money poorly spent.

“Rather than dole out that $150 million to one big company, how about this: Give $30,000 to 5,000 small companies to encourage them to locate in Illinois. By comparison, a successful Chicago-based accelerator — Excelerate Labs — funds 10 companies per year to the tune of $25,000.”

This is the wrong framework to look at tax breaks. Sears was going to leave the state. It would have taken 6,100 jobs with it. Those are taxpayers, not only on the state level but on the local level. Businesses like Sears create jobs slower than a successful startup might, but they offer a platform for startups to build around. Viewpoints is a startup that is built around the Sears infrastructure.

It also assumes an economic fixed pie. Economies aren’t fixed. Like dark matter in space, they can grow forever and in all directions if you don’t constrain them. It’s not a zero-sum game. Also, the calculations of tax breaks related to the budget are always looked at with accounting numbers and not economic ones. Economic numbers are dynamic, and a tax break has been shown to have a 1:3 multiplier effect. For every one percent in the decrease of taxes, there is a corresponding 3 percent bump in GDP. Illinois ought to be cutting taxes to increase economic growth. Instead, it raised them.

Sears is also a likely acquirer of startup companies. Many companies like to invest in their own backyards. They want to invest in the local startup community. I know because I have spoken with corporations that are looking to make it happen. Additionally, having a big bell cow in one industry creates a lot of native industry DNA. Employees of Sears that discover unsolvable problems are likely to create an entrepreneurial company, or assist in the creation of one. It is most probable that they will do that in their own backyard. Employees generally don’t move to create startups, although they can.

The real outrage in Illinois is over the total mismanagement of state and local finances. Democratic Cook County is an utter mess. The city of Chicago, a mess. The state has a pension nightmare. Last year, it raised corporate and individual taxes. It didn’t cut spending, and this year it didn’t cut spending. Illinois needs to slash all kinds of programs and reconfigure its pension system from defined-benefit to defined contribution — much like Indiana.

Illinois is losing established businesses because of the high taxes and onerous regulatory environment. I am glad that the state extended tax breaks to CME Group Inc., Caterpillar, Deere & Co., Sears and others to keep them in the state. If you lose the big businesses, the mom-and-pop lifestyle-support businesses that exist because of them will go out of business, too.

Then, there will be no startup ecosystem. No one will be left to start it.

Jeffrey Carter is co-founder of Hyde Park Angels and writes the Points and Figures blog. Follow him on Twitter: @pointsnfigures. Connect with him via LinkedIn.

How to find angel investors for your startup

By George Deeb

As we read in my previous post about fundraising options for your business, angel investors (not venture capital firms) are the most likely candidates to get your businesses from a piece of paper to a proof of concept. Today, we will tackle how you can find these angel investors across four distinct groups: friends and family; angel investors directly; networks aggregating money from angel investors, and fundraising advisers.

Friends and family investors have their distinct pluses and minuses. The pluses are that these people know you best, so they are the closest to you in determining whether or not you are backable, as first-hand references. The minuses are pretty major: These are your friends and family! It is very difficult to mix personal and professional relationships. And, as we know, only one in 10 startups succeeds. So, there are very high odds you lose all the money invested by your closest friends and family, which will make for very awkward Thanksgiving dinners from that point on. So, if you decide to go down this road (which for many startups is their only option), make sure your friends and family know this investment is highly risky, and they should not invest the funds unless they are prepared to lose 100 percent of their investment (e.g., like money they would gamble in a casino).

As for finding angel investors directly, this by far is the hardest route. First, they prefer to stay anonymous. Second, they don’t know you at all. Sometimes rich individuals have built formal family investment offices, with professional managers screening deals for them. But I have found that if they can afford a family office, they prefer to invest $5 million-plus in more typical venture investments, not $500,000 for a startup. Preferably, you need to find an individual who understands your industry and business model and can bring real value to the table and who understands your needs.

So, for example, if you think you have the next great video gaming technology, I would research what similar video game technologies have recently been sold (meaning the founder just got very cash rich), and reach out to that founder to tap into their expertise as an adviser, board member or investor. Notice I didn’t lead with investor. You need to establish credibility with this individual before jumping into the investment question. And if he doesn’t want to invest, he may know others in the industry who would, so ask him for references. Venture capital firms are also aware of key angels in their market, so reach out to them for guidance. There is a great website called Angel List that makes finding angels for your region or industry easier than ever, so check them out as a good place to start.

This last category is my favorite: networks aggregating angel investors. Like the family offices, investors set aside funds for angel investments, screened by a professional team that sources deals for the network. So, the individual angel gets to keep their anonymity and have the comfort of a team of smart managers doing due diligence on investment targets on their behalf. So, instead of one angel investing $1 million by himself, 100 angels aggregate $100 million and invest as a group in the deals they like the best, individually or collectively.

Here in Chicago, the big three angel networks are Hyde Park Angels, Cornerstone Angels and Heartland Angels. (Another network, just launched this week, is the FireStarter Fund.)

These angel networks very much prefer to invest in their own backyard. So, if you live in Chicago, reach out to them. If you live in another city, you will need to research who the angel networks are in or near that city. I stumbled on this great list of angel networks by city compiled by Andy Whitman, a partner at 2x Partners, an early-stage venture capital firm in Chicago with expertise in the consumer packaged goods space. This list applies to all industries, not just CPG, although Andy does indicate what CPG deals these networks have invested in.

If all of the above options fail, you should consider engaging a boutique startup fundraising adviser. The problem, though, is raising funds via this channel can be more expensive, with the adviser typically taking a 5 percent to 7 percent success fee in cash, plus a 5 percent to 7 percent success fee in warrants and, often, a monthly retainer to cover their costs. As an example, Red Rocket takes a 5 percent success fee in cash, plus 5 percent warrants (without charging a monthly retainer), for stories we believe are fundable from our network of investor relationships.

Hopefully, this information helps make the angel identification process “less scary,” knowing there are viable angel investor options that can be pursued. And, over time, expect more and more angels to get more active in early-stage investing as a core part of their portfolios (as a way to exceed the returns in the stock market and fill the void left by venture capitalists who have gone out of business). Good luck!

George Deeb is a managing partner at Red Rocket Ventures, a Chicago-based startup consulting and fundraising firm with expertise in advising Internet-related businesses. More of George’s startup lessons can be read at “101 Startup Lessons – An Entrepreneur’s Handbook.”

George’s posts appear on Crain’s blog for Chicago entrepreneurs on Fridays.

Follow George on Twitter at @georgedeeb.

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