Entrepreneurs + Innovators

cosmic bobbins turns trash into (thoughtful) treasure
Sharie Renee finds the beauty in what most people would deem garbage. As founder and CEO of Cosmic Bobbins in the St. Clair-Superior District, she takes old paper materials -- such as magazines or brochures -- and transforms them into fashionable accessories.

Cosmic Bobbins puts an emphasis on social awareness. As the granddaughter and great-granddaughter of funeral directors, Renee would contemplate on the meaning of life and the importance of giving back.

"When you're always watching the end of life, you think about what it's all about," she says. "We're all here for a period of time and what comes is an ideology on what business is all about and the social good of making the world a better place."

That ideology is the focus of Cosmic Bobbins. The company revolves around recycling -- or upcycling -- while also supporting and employing charitable organizations both locally and internationally.

Renee works with United Cerebral Palsy in Cleveland, employing up to 38 people in a sheltered work environment, and works with Youth Opportunities Unlimited, teaching sewing skills. Internationally, Renee works with a village outside of Mexico City, employing residents for her weaving and folding needs. "We're giving back to the world one magazine at a time," says Renee.

Most of her clients are businesses that also look out for the environment. She has created pencil holders from old annual reports for University Circle Inc., handbags out of old newsletters for the Cleveland Botanical Garden, and scissors cases for Paul Mitchell from old brochures.


Source: Sharie Renee
Writer: Karin Connelly


clevelanders bullish on farm markets to the tune of $2.5 million
Clevelanders are having a love affair with locally grown, seasonal food -- and that romance is playing out at numerous farmers markets around town. These days, it's possible to shop at a different neighborhood farmers market practically every day of the week, a far cry from when just a handful existed. What's more: Cleveland-area farmers markets will reap approximately $2.5 million this year, great news for small entrepreneurs and the local economy.
city of cle makes good on promise to pimp food truck policy
As promised, Cleveland City Council passed sweeping new legislation that will help food truck operators succeed. Despite a lengthy -- and at times contentious -- process, City Council not only made good on its promises to modernize and streamline the rules of play, but actually improved upon the proposed package.

Mayor Frank Jackson was expected to sign the legislation this week.

According to Councilman Joe Cimperman, whose ward includes much of downtown, the new legislation would have limited food trucks to only a handful of downtown zones. What passed appears to be broader, with as many as eight permissible spots at which to circle the chuck wagons.

City Council also lengthened the permissible hours of operation, giving truck operators access to the lucrative post-bar business.

Before this revision, truck operators were required to obtain over a dozen separate permits, provide detailed external and internal architectural plans of their rig, fill out a 50-page application, and pay as much as $3,000 in application fees. The prize waiting for those who made it out of that process was confusing, contradictory and business-killing regulations.

This is great news not only for the existing and planned food trucks, but also for the City of Cleveland.

"[Food trucks] are successful micro-economic development engines that are creating independent wealth in one of the worst recessions in decades," says Lizzy Caston, a communications pro who consults with cities on modernizing food truck policy.

'build it big' program boosts women-owned firms

Cleveland is an entrepreneurial hotspot right now, and big business in Cleveland wants to make sure local women-owned outfits have equal footing. Springboard Enterprises has joined forces with Ohio-based powerhouses KeyBank, Thompson Hine, and Meaden & Moore to provide women with the keys to building big businesses.

Build it Big is a business development program for women-owned businesses on the fast track to growth. "It's about educating business owners on how to find equity investors and financing," says Maria Coyne, executive vice president of business banking for Key. "It's really about targeting for growth and the desire to grow rapidly."

Applications are being taken through May 23. The number of applicants accepted into the program depends on how many apply, but all applicants will get at least some input. To qualify, companies must have a woman in a key management position with a significant ownership stake; demonstrate a qualified and profitable market opportunity, a track record of milestone achievement and a credible core management team or an ability to attract one.

Companies selected to participate will meet one-on-one with the Build It Big partners to chart effective strategies for growing their businesses, including choosing the right capital, getting the fiscal house in order, and important legal issues such as product licensing, royalties and protecting the company's intellectual property.

The program can only mean good things for Cleveland's entrepreneurial spirit. "We think it's great for Cleveland because we like to grow our own," says Coyne. "We have an entrepreneurial history. Build it Big improves sustainability and growth for all our businesses. And we want to have a shared interest in their success."


Source: Maria Coyne
Writer: Karin Connelly

pittsburgh contemplates forthcoming ohio casinos
A recent Pittsburgh Post-Gazette article discusses the development of Horseshoe Casino Cleveland, which will be the first casino in Ohio when it opens early next year. The casino will be located in the historic Higbee Building downtown.

The development of casinos in Ohio will take a toll on already established casinos in Pennsylvania. About 20 percent of regular customers at Pittsburgh's Rivers Casino come are from out of state, mainly Ohio and West Virginia.

But before they can even open, Ohio casinos have a few hurdles to overcome, not the least of which is an ambivalent new Republican governor.

"The state's new governor, John Kasich, voted against the 2009 constitutional amendment referendum that was approved in a statewide vote, eventually permitting the construction of casinos in Cleveland, Toledo, Columbus and Cincinnati. But now he's charged with helping to craft the rules and regulations that will guide the industry in its formative years."

Kasich will also be the one who ultimately decides whether to sign off on a plan to legalize slot machines at Ohio racetracks. A portion of racetrack slot money goes toward prizes in Pennsylvania and Indiana, making race purses up to three times higher and in turn attracting better horses and jockeys.

Ohio is also in an unusual situation, because while casinos were approved in 2009, the Ohio Casino Control Commission, which handles many regulatory matters, was appointed just two months ago.

Check out the entire article here.

state farm offering sweet deal for bilingual agents
State Farm Insurance is looking for bi-lingual agents with an entrepreneurial spirit. So the agency is holding a job fair at Asian Town Center, located in Cleveland's Asiatown neighborhood, on May 17 from 5:30 p.m. to 7:30 p.m..

"State Farm has really got a push on the multi-cultural market," says Kevin Perry, senior State Farm field executive in the company's Beachwood office. "As a growing company we noticed we didn't have a lot of agents across diverse backgrounds."

Perry says Cleveland offers just the diversity State Farm is looking for. "We thought we'd go out and see what we can find and just go from there," he says. The company sponsored an event at Asia Town Center in January and "it went really well," so it seemed like the right location for a second one.

Ideally, State Farm would like to have an agent in Cleveland's Asiatown neighborhood. "With its location, we'd like to have an agent in there just to have a presence," Perry says. But the company is looking for agents who speak any language in addition to English.

"The right potential agent, with good credit, will be funded by State Farm for startup costs. Agents will receive an $18,000 signing bonus, an additional $12,000 after the first year, a $25,000 line of credit, and a credit card with a $5,000 limit.

"If you enjoy working with people, helping people, educating people, and you're interested in being an entrepreneur you should come in," says Perry. "We're looking for folks who want to be anchored in the community and looking to grow the market."


Source: Kevin Perry
Writer: Karen Connelly

csu and shaker launchhouse team up for 'idea competition'
Cleveland State University's Nance College of Business Administration and Shaker LaunchHouse have teamed up to encourage the regions entrepreneurs to follow their dreams.

The agreement was adopted at a special meeting of the Shaker City Council on March 14, after recommendation by the Shaker Heights Economic Development Department.

One of the first endeavors the two have launched is the 2011 Idea Competition. The contest is open to students at any Ohio college or university with an innovative business idea. Ideas should focus on software and Internet technology, low-tech medical devices, and clean energy.

"We really want to get the juices flowing of entrepreneurs in the region," says Shaker LaunchHouse managing partner Todd Goldstein. "We believe it's extremely important to provide an outlet for good ideas."

The winner gets a $2,500 scholarship to the Nance's global AMBA program and $1,000 from LaunchHouse, including incubation space, legal support, accounting support, and business planning assistance. The winner will have the chance to compete for $5,000 in seed funding.

Entry forms are due by noon on Monday, April 25. Finalists will then give a two-minute pitch to a panel of entrepreneurs and venture capitalists at Shaker LaunchHouse on Thursday, May 5. SLH will be offering educational seminars for the contestants to help them with their presentations.


Source: Todd Goldstein
Writer: Karin Connelly
shaker launchhouse raises $250k in new capital
Shaker LaunchHouse, a pre-seed investment fund and business accelerator, has raised $250,000 in capital funds. A portion of the money will be used to invest an average of $10,000 in 15 software and disruptive technology companies. "Disruptive technology refers to thinking of things that shake up or dramatically change the market," explains Todd Goldstein, managing partner of SLH.

The investments will be made over the next 12 months. Additionally, SLH will provide office space and back office support to each of the 15 companies. Goldstein and his partner formed Shaker LaunchHouse in 2008 after seeing larger numbers of young entrepreneurs leaving Cleveland for cities that offered greater start-up opportunities.

"We saw a lot of young people moving away because there was a lot of seed money [elsewhere] ," explains Goldstein. "We felt that Cleveland was ripe for an organization that could provide seed money."

SLH's goal is to invest in 15 companies a year, while also providing networking with 100 mentors, cooperative office space and educational programming. SLH provides twice weekly workshops for entrepreneurs led by area business leaders with expertise in everything from how to manage the finances of a startup company to how to write an effective executive summary and make presentations as well as crash courses in website development.

SLH is in the process of moving into a renovated car dealership on Lee Road, which will provide 23,000 square feet of space for entrepreneurs and mentors.


Source: Todd Goldstein
Writer: Karin Connelly
the next generation of manufacturing is here, thogus president says
When it comes to manufacturing facilities, the first things to come to mind are not state-of-the-art gyms, free personal trainers and tech-savvy employees. Yet Thogus, a national provider of plastic injection molding services based in Avon Lake, is no ordinary manufacturer.

"The perception of manufacturing facilities is that they're full of smokestacks, dirty and capital-intensive," Matt Hlavin, President of Thogus, told the audience at last week's sold out TEDxCLE conference. "We've created a culture in which everyone is an innovator, and we want our employees to have a work-life balance."

Thogus, founded in 1950 as a traditional tool and dye shop, got into the plastics industry in 1958. Hlavin joined the company in the late 90s and took over as President in 2009. In the past 15 years, Thogus has reinvented itself as a leader in the growing field of customized plastic injection molding.

"Today, our society is not about mass production, it's about mass customization," Hlavin said. "We're the next generation of manufacturing -- companies like ours take a customer's idea and help them to create it."

Since taking the helm, Hlavin has worked to develop the next generation of manufacturing employee by training his workers in the latest technology and providing a clean, modern work environment. Today, Thogus employees use crowd-sourcing to develop and test products, employ social media to communicate their latest product innovations, and maintain an ongoing rapport with customers. "We can make a customized iPhone cover in 45 minutes," Hlavin said.

As another example of Thogus' innovative products, Hlavin cited a device that will help autistic children to predict when they will get uncomfortable in their environment. The technology will help them to lead healthier and more normal lives.

Reinventing Thogus wasn't easy. After making a decision to get out of the automotive business and focus solely on plastic injection molding, Hlavin reduced his workforce by more than half. "This helped us to become a more agile company and go after the next generation of employee."


Source: Matt Hlavin
Writer: Lee Chilcote

tunnel vision hoops extends season for urban farms
When Michael Walton bought a hoop house for his city farm, he envisioned an urban barn-raising of sorts. He put out a call for volunteers, and soon had 30 people who offered to help.

Yet by noon on the big day, only 10 were left. The next day, there were five. Two days later, the group had been wheedled down to three hardy souls. And still the hoop house wasn't completed.

Frustrated, Walton and his coworkers began to ask themselves: Is this really the best product available? And then, rather than wait for an answer, the team set out to design a better model themselves. That's how Tunnel Vision Hoops, a startup manufacturer of retractable all-weather domes for growing crops, was born.

"We thought we'd just build a few each summer, make some pizza money and go on our way," Walton told the audience at a recent entrepreneurial showcase organized by Local Food Cleveland, a group whose mission is to help grow the local food movement in Northeast Ohio. "Yet when we really started looking at the design, that's when we decided to launch our business."

Tunnel Vision's all-weather high tunnels represent an improvement over existing designs, say owners Michael Walton, Carlton Jackson and Todd Alexander. They feature dome-shaped ends that help them to withstand strong winds, systems for collecting rainwater that can be used for irrigating plants, retractable end walls that allow for venting, and entrances on the sides rather than the ends, making it easier to move from one tunnel to another.

Since launching last year, Tunnel Vision has sold structures to Case Western Reserve University's Squire Valleyview Farm and the Cleveland Botanical Garden's Green Corps program. In its first six months, the company did over $80,000 in sales.

The company also has a division called We Dig the City that is intended for backyard gardens. These tunnels start at 10 feet long and are priced at $2,000, including installation.

Tunnel Vision's long-term goal is to aid the local food movement and keep more of our food dollars in Northeast Ohio by making the region a year-round growing center.


Source: Tunnel Vision Hoops
Writer: Lee Chilcote

hell on wheels: why food truck owners are feeling the heat
Food trucks are all the rage -- both here and across the U.S. Despite one of the worst recessions in recent history, these plucky start-ups are thriving, adding jobs, injecting cash into the local economy, and putting smiles on the faces of hungry diners. But rather than encourage the proliferation of these economic development engines, food truck operators say the City of Cleveland is making it nearly impossible for them to succeed.
gone in 60 seconds: why pop-up shops are here to stay
The Punxsutawney Phil of the retail world, pop-up shops spontaneously appear, attract big crowds, and then vanish as quickly as they came. For retailers and artists without a bona fide storefront, pop-up shops provide a lease-free way to test products and build a following. Landlords love them because they plug vacant storefronts while attracting new feet to the street.
knit, purl, publish: crafts writer goes rogue
Shannon Okey enjoys sharing what she knows about knitting. But she didn't like being told what to do by traditional publishers. So, after publishing 12 books the traditional way, Okey launched Cooperative Press in 2006 with The Knitgrrl Guide to Professional Knitwear Design, the first-ever business book targeted to the handknit industry.

"I decided to start my own company and take advantage of some of the things that larger publishers were ignoring or underusing, such as digital publications," says Okey. "We now publish in a variety of formats, including print, PDF and e-book reader formats."

Today, Okey runs her business out of the Lake Erie building at Templar Park in Lakewood. She is the only full-time employee, but she hires freelancers for everything from editing to photography to graphic design. Cooperative Press splits profits equally with its authors, and pays a higher percentage on digital publications.

The biggest hurdle Okey has overcome is financing. "Banks are terrified the second they hear the word 'knitting,'" she says. "Never mind that crafts are a billion-dollar-plus industry. Never mind we're totally in the black and doing great numbers. Our bank wouldn't give us a standard loan. Their underwriters offered up a credit card in its place -- not the same thing."

This month she launched a month-long campaign on Kickstarter to raise additional funds. The effort raised $6,500 in the first week of campaigning. It is now nearing $10,000.

"People believe in what we're doing and they want to see us succeed, so they're willing to give us money where traditional sources won't," says Okey. "I'm hoping we'll raise over $20,000 this month, which will allow us a lot more flexibility in terms of where we print and other factors."


Source: Shannon Okey
Writer: Karin Connelly
jumpstart ceo named to nat'l venture capital board
JumpStart CEO Ray Leach has been named to the board of the National Venture Capital Association. The NVCA serves as the voice of the United States venture capital community and advocates for policies that encourage innovation and reward long-term investment.

While most of the organization's 400 members represent venture capital firms on the East and West coasts, Leach is the only member representing the Midwest. "In order to be successful as a non-profit, we need healthy venture capital nationally," says Leach. "It's a great way to be there, convincing them they have to invest in the Midwest."

Northeast Ohio leads the Midwest in venture capital deal activity, second only to Chicago in the amount of capital raised by companies with $234 million.

Leach is one of six new NVCA members elected to a four-year term. He was nominated by former NVCA board chair David Morgenthaler of Morganthaler Ventures and member Ray Lane with Kleiner Perkins, who thought Leach would be a good advocate for JumpStart's missives.

"I'm excited to play a role in advancing venture capital nationally and to offer my viewpoint from a region that's reinvented itself with the assistance of innovative initiatives like Ohio's state-led Third Frontier," says Leach. "For example, entrepreneurs in Northeast Ohio have raised more than $1.1 billion in venture capital in the last five years. By serving on the NVCA's board, I hope to bring greater visibility to our region's activity to increase investments and ultimately job growth."


Source: Ray Leach
Writer: Karin Connelly

energy $aver program to make older homes more efficient
A soon-to-launch program from Cleveland's Office of Sustainability will provide energy audits and retrofits that will make older homes more energy-efficient. The program, which is funded in part by the American Recovery and Reinvestment Act (ARRA), is intended to spur the market for green retrofits.

"There's not enough scale or demand yet to support an industry here, but we think there's an opportunity for a public or nonprofit entity to stimulate the marketplace," said Paul Ettorre, regional manager for Key Bank Community Lending and co-chair of the effort, at a forum on energy-efficiency at the Levin College of Urban Affairs at Cleveland State University.

Here's how the Energy $aver Pilot Program would work: Applicants must be residents of Cleveland and owner-occupants of their homes. They would pay $100 for an in-depth energy efficiency audit (the market-rate audit price is in the $250 to $300 range), resulting in a thorough list of measures that would improve the home's energy efficiency.

If a customer agrees to retrofit their homes, they could secure incentives such as reimbursement of the audit fee, a 20-percent credit towards measures that pay for themselves within 10 years, and low-interest financing of the cost of repairs.

Once a customer moves ahead, program staff would help him or her to select an experienced contractor. An average retrofit is estimated to cost about $6,000. The retrofits would focus primarily on items such as insulation, air sealing, HVAC repair and replacement, lighting and hot water tanks. Homeowners who wish to complete a comprehensive rehab will be able to do so using the program.

After the retrofit is done, auditors would return to the home to review the measures and ensure that the job had been completed properly. Organizers expect the Energy $aver Pilot Program to launch this year.


Source: Paul Ettorre
Writer: Lee Chilcote

glass artist turns trash into thriving retail business
Five years ago, Deby Cowdin was cleaning up after a party. As she picked up the empty wine and liquor bottles on her porch, her friend and partner, Mindy Bohannon, dared her to do something that would change her life. "She said, 'you're a glass artist, figure out something to do with them.'" So Cowdin did exactly that. She founded Blue Bag, a company that transforms bottles into serving plates, cheese boards and other works of art.

Cowdin started the business out of her home, selling her creations first at the North Union Farmers Market at Crocker Park, then at other farmers markets and art shows. The idea took off. "We started out of necessity, as a hobby," she says. "We never really thought it would turn into a manufacturing business."

Blue Bag sales have grown 50 percent each year since 2006. This year sales are up 100 percent. Aside from two additional partners, daughter Brandy Cooney and Jeff Nischwitz, the company has eight employees. Cowdin makes a point of hiring hard-to-place people, including a disabled vet and an employee with mild autism. "We build our company around helping people," Cowdin says.

Everything from the recycling to the distribution is done in house -- these days a studio on W. 14th St. and Berea Road -- and their products are available in more than 300 retail stores nationwide. Everything with the exception of one item is purchased locally.

"We work really hard at keeping everything in Cleveland," Cowdin says. "If we don't support the local economy, who will?"


Source: Deby Cowdin
Writer: Karin Connelly
one lucky neighborhood to receive $500k support to attract artists
From the Warehouse District to Tremont, artists have been harbingers of neighborhood comebacks. Now a new program aims to use artist-based development as the centerpiece for one lucky neighborhood's turnaround.

The Community Partnership for Arts and Culture (CPAC) on Monday announced the launch of Artists in Residence, a new program that seeks to create improvements in one city neighborhood by offering incentives for artists who live and work there.

The program is being funded in part through a $250,000 grant from Leveraging Investments in Creativity's Creative Communities Challenge Grant Program, a one-time competitive grant program made possible through the support of the Kresge Foundation.

"Artists play a key role in the strength and vitality of Cleveland neighborhoods," said Tom Schorgl, CPAC President, in a press release. "By leveraging artists' skills and the extraordinary leadership of Cleveland's community development sector, we will work to make Cleveland's neighborhoods even more creative, more sustainable and more equitable."

The two-year, $500,000 pilot program will provide a small loan program for artists buying or rehabbing homes in the target area, a small grant program to support artists' work in carrying out community-based projects, and artist homeownership services such as credit counseling and saving programs.

A panel of arts, community development and planning experts will select the target neighborhood through a competitive process. Community development corporations serving Cleveland neighborhoods can apply through April 25th. CPAC hopes to announce the winning neighborhood by July 1st.

CPAC is a nonprofit arts and culture service organization that works to strengthen Greater Cleveland's arts and culture sector. Some of its programs include the Artist as an Entrepreneur Institute, a business training course addressing the needs of working artists, and From Rust Belt to Artist Belt, a conference series that examines the role of artists in the redevelopment of industrial cities.


Source: Community Partnership for Arts and Culture
Writer: Lee Chilcote
green wine: one man's push to sell low-carbon vino
If Walter Wirth has his way, every restaurant in Cleveland will soon offer wine on tap. Yes, you read that right -- wine served from a keg. In fact, there is no good reason not to. In addition to providing the freshest possible product at the lowest possible price, the wine-by-the keg approach is as eco-friendly as it gets. While the concept may be new to Ohio, it is by no means a new concept.
heather b. moore moves into renovated midtown studio
Although jewelry maker Heather Moore moved into her rehabbed Midtown studio earlier this year, she's still getting used to her spacious new digs.

Maybe that's because she's spent the last 11 years running her fast-growing business out of her house. Granted, it was no ordinary home office: the Cleveland Institute of Art grad bought her great-grandmother's estate, a rambling Heights mansion, after moving back from New York City in 1999.

"We just couldn't grow anymore -- I had 45 employees working out of my house," says Moore, whose company, Heather B. Moore Jewelry, specializes in custom-made, personalized jewelry that she sells to more than 150 retailers around the world. "The workshop was in the basement, while sales and marketing were in the attic. If we needed to have a private conversation, we had to use one of my kids' bedrooms."

To accommodate her growth, Moore recently bought and renovated a former crane-making factory at 4502 Prospect Avenue, bringing 45 new jobs to Cleveland. In her renovation, Moore reused as much of the building as she could, including leftover crane parts that were repurposed into a dining room table that now graces the large kitchen.

Moore's building renovation included removing ceilings to create a lofted second-floor office, installing new windows, and turning an old garage door into a light-filled window. Future plans include an art gallery, new patio and roof garden.

When asked about her decision to relocate to Midtown, Moore says, "There's so much industry in Cleveland that you can take advantage of. A lot of what we do mixes old school techniques with newer technologies, so this is a great place to be."

Heather B. Moore Jewelry has become known not only for its work -- Moore builds relationships with her clients to draw out their stories and create highly personalized jewelry -- but also for its sustainable business model. The company uses 100-percent recycled materials in their products.

Now that she's settled into her new studio, Moore is soaking up the extra legroom -- and she also doesn't mind the short commute. "It's seven minutes from my house," she says.


Source: Heather Moore
Writer: Lee Chilcote