Fall Newsletter 2007
CCV Awarded Technical Assistance Grant from the CDFI Fund
Loan Helps Young Company Expand Operations
How Value Impacts Your Pricing
Upcoming Training Helps Small Businesses Understand Pricing Models
Ebro Foods Named Minority Supplier/Distributor of the Year
Companies Aim For High Growth
NogginLabs Named One of Inc's 5,000 Fastest Growing Companies
Cafe Penelope Named CitySearch"Caterer of the Year"
CCV Awarded Technical Assistance Grant from the CDFI Fund
CCV is pleased to announce that it is one of five Chicago-based organizations to receive a grant from the U.S. Treasury Department, CDFI (Community Development Financial Institution) program for fiscal year 2007. The organizations awarded were selected through a competitive review of 184 applications from organizations nationwide requesting more than $138.4 million in funding. Nationwide, the awards totaled $27,336,573.
CCV's technical assistance grant will be used to expand the capacity of our Neighborhood Transformation Loan Fund and the recently launched City of Chicago Small Business Development Loan Fund which provides lending capital to small city businesses through a partnership of CCV, the city of Chicago, and LaSalle Bank.
The CDFI Fund invests in and builds the capacity of a nationwide network of community-based, private, for-profit and non-profit financial institutions with a primary mission of community development in economically distressed urban, rural and Native communities. These institutions - certified by the CDFI Fund as community development financial institutions - are able to respond to gaps in local markets that traditional financial institutions are not adequately serving.
Loan Helps Young Company Expand Operations
Urban GIS, a minority-owned GIS mapping firm, was a recent loan recipient from CCV's Neighborhood Transformation Loan Fund. "I always wanted to have my own business," said CEO 
Keith Searles, "and while I was winning the contracts that would allow me to establish my company, I didn't have the cash flow to float me until the contracts paid off." As a young company, barely in business for over a year, and without full collateralization, a bank loan didn't look like an option. "I had already worked with CCV on polishing my business plan and was impressed by their hands-on assistance so when I heard they had a loan fund, I thought it was worth a closer look."
Though the company didn't have a strong collateral position, it had secured several municipal government contracts, and Keith's nearly 10 years of GIS experience made the deal attractive for CCV. "Our contract financing option allows companies that don't have a lot of hard assets to use as collateral to qualify for financing because we use the contract to secure the loan," said Dominic Melone, Director of Lending. Additionally, the contract financing option can be a good fit for small businesses because CCV's interest rates are fixed at closing which can save businesses considerable amounts of money over time.
"CCV's loan process was extremely straight forward and easy to understand," said Mr. Searles, "so I knew exactly what I was getting into. It is really nice knowing that there are organizations like CCV that are able to help me grow my business. I am relying on contract employees for the time being but I hope this loan is a stepping stone to a time when I can expand and hire full-time staff. I dream of being able to take my company to the national, even international level."
To read more about Urban GIS, visit the website at www.urbangis.com.
How Value Impacts Your Pricing
Written by Larry Martinelli, Executive Director, Central Star Dynamics
Most companies spend inordinate amounts of time and money on lengthy proposals and on making target customers aware of their product offering and functional features. Less time is spent benchmarking exactly how and where the customer realizes the value of those products and services. In other words, how do you make the customer feel they are getting more value for less money?
A successful sale demands building value awareness and a reasonable confidence that your product or service will impact revenues or your customers’ bottom line. You must do so concretely, converting time-savings, cost optimization, or client revenue impacts into understandable dollar increments, or clear percentage comparisons.
Sure the "Market" determines "Price", but it's up to your company to figure out a way to deliver your product or service competitively and stay in business. Well then, what about that "Market"?
Since you can't be all things to all people, to whom must you matter the most and why? Being able to define your market allows you to define customer value points (CVP). CVP is a flexible mechanism for defining the amount of positive revenue, cost savings, productivity improvement or cash liquidating potential of a product or service. These equate to the "Total Delivered Value" that using your product or service provides, expressed in dollars or percentages of time/output improvements converted to dollars. It follows a balanced scorecard approach, considering income statement, balance sheet or cash flow statements as critical value defining impact areas.
Once you are able to determine your customers' value points, you can align your product or service with these points and in turn, determine how to elevate your customer's value awareness. Value awareness associates your product or service with a customer's critical value points, shaping a set of keys for unlocking the desire for your product and justifying its use.
While important, price is not the strongest customer preference driver. Your product's close alignment to customer value points and a high level of customer value awareness are the primary preference drivers. Being secondary, price is often a point of great flexibility in commercial settings, even in competitive bidding situations. You cannot suggest or set price without a good understanding of what is valuable to your customer. Ideally, you should never accept or refuse an order without understanding the customer value points.
Value Defines "Price": How to identify your product or service's value points
Can customer value points be profiled across industries and customer segments? Can you quantify the expected Total Delivered Value for products, services or proposals? Yes, particularly if you are selling hard goods, toll processing, fabrication or consulting services in a commercial/industrial setting. How do you do it? By following the five step methodology to value point profiling:
1) Start simple, look at your company's three Value Point Categories:
- Income Statement Value Points: Revenues, C/G/S (Materials, Labor and Direct Internal/Customer Support), Yield (Contribution Margins)
- Balance Sheet Value Points: Inventories, Executive/Administrative/Sales Staffing, Asset Utilization (Throughput), Reduced Levels of Capital Equipment
- Cash Flow Value Points: Extra Dollars Realized from Income Statement and Balance Sheet Value Point Impacts
2) Understand your customers' five key Value Impact Areas:
|
|
|
|
|
|
3) Define a Value Point Profile: Identify the nature and the extent that your product, service, or proposal positively influences the customers' key Value Impact Areas (Step 2), as related to the Value Point Categories you identified in Step 1.
View the Value Profiling Matrix (VPM) to see how your company's Value Point Categories relate to your customer's Value Impact Points.
4) Use the VPM as a guide to relate your product attributes or service strength/competency to the Customer Value Points: Derive your Total Delivered Value - stated in revenue dollars, cost savings, time savings converted to dollars, inventory reductions. Then, define a Value Delivery Lifecycle - how long it will take the customer to accumulate your Total Delivered Value.
5) Set "Price" to 70% - 80% of Total Delivered Value over 50% - 60% of the Value Delivery Lifecycle: For example, if the customer receives $20,000 of Total Delivered Value as $10,000 of upfront value and subsequently $10,000 more during the product use or your agreed service implementation (Value Delivery Lifecycle), then your "Price" can be $12,000 to $14,000 = (($10,000 x (.70 to .80) + $10,000 x (.50 to .60)).
You can legitimately state that buying your product or service gives the customer a $2,000 to $3,000 value premium upfront, plus a $4,000 to $5,000 value premium during the product or service usefulness - $6,000 to $8,000 more value than they paid. Better yet, when challenged, you can tell them why, doing so by illuminating concrete customer value points. That is a strong customer value awareness argument for buying your product or accepting a service proposal.
Upcoming Training Helps Small Businesses Understand Pricing Models
Join CCV and guest speaker, Larry Martinelli, for "The Price Is Right - Says Who?" on October 10 for an in-depth look at Value Based Pricing.
- Learn more about converting your company's product features or professional skill sets into Customer Value Points.
- Develop a 12-question guide to estimating the customer value point potential for your business.
- Bring your questions and proposals to the training for hands-on guidance. We will discuss each company's product features or skill sets and how they relate to their Customer Value Points.
When: October 10, 2007, 8 - 10 a.m.
Where: Chicago Minority Business Enterprise Center
1 E Wacker Drive, Suite 1200
Price: $55 if registered before October 3, $65 thereafter
Register Now
Ebro Foods Named Minority Supplier/Distributor of the Year
In August, Ebro Foods was named 2007 Regional Minority Supplier/Distributor of the Year by the U.S. Minority Business Development Agency for excellence in its field. It was selected from companies in a 10 state Midwest Region including: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio and Wisconsin, and was evaluated based on historical financial 
success, economic impact and community leadership.
Ebro Foods has worked with CCV and its partner, the Chicago Minority Business Enterprise Center, for over a year on issues ranging from sales presentations to equipment financing. Last year, the company completed a relocation to a new facility which allowed it to boost overall output and add eight new product lines. The expansion led to a nearly $3 million increase in sales, and allowed the company to retain all 65 employees with possible plans to add more as they continue to grow.
To learn more about Ebro Foods visit www.ebrofoods.com.
Companies Aim For High Growth
CCV awarded seven minority and/or woman-owned companies Challenge Grants in the past quarter to support their growth. CCV operates an Entrepreneurship Center that provides small, high-growth 
businesses with matching grants to help them achieve their goals through a partnership with the University of Illinois at Chicago and with funding from the Illinois Department of Commerce and Economic Opportunity.
RedBox Workshop (www.labrosseltd.com), formerly LaBrosse Ltd, creates scenery and exhibits for theater companies, churches and museums with an emphasis on children and family. The woman-owned company was awarded a Challenge Grant to help them complete their re-branding process and create a new website that will include intuitive navigation and functional requirements such as an FTP link so that clients can access photos of ongoing projects.
Configuration Chicago (www.configuration-dc.com) supplies flooring, furniture and furnishings products, custom case goods and management services to corporate facilities. The minority-owned company will use the Challenge Grant to develop and implement a sales infrastructure that can be utilized for scalability and growth, and to complete a LEED Professional Accreditation online course.
ClickAround (www.clickaroundchicago.com) provides travelers with a visual entertainment planning tool to plan their vacations - on demand, and on the fly! ClickAround allows viewers the opportunity to see a 60 to 90 second video of the entertainment alternatives available to them in their featured city or select 60 second still photographs with a voice narration. The minority-owned company was awarded a Challenge Grant to hire a local marketing firm that will provide a short term roadmap to maximize growth and profitability by tightly linking global business objectives to daily sales and marketing communications activities.
Argo Summit Supply (www.argosummitsupply.com) sells plumbing, PVF and HVAC products to plumbing contractors, HVAC professionals and homeowners. The woman-owned company was awarded a Challenge Grant to attend the Cycle of Success class to learn strategies for remaining viable in a highly competitive industry.
Dr. Earles (www.dr-earles.com) is a manufacturer of ethnic hair and skin care products developed by Chicago-based dermatologist, Dr. R. Martin Earles, MD. The minority-owned company will use the Challenge Grant to develop a PR campaign, implement internal controls to help manage cash flow, and hire a consulting firm with expertise in operations planning, to design the position of "Regional Sales Manager" for the business.
PatientImpact (www.patientimpact.com) helps physician practices and outpatient facilities better understand their patients by capturing information in real time using web-based survey and reporting tools. PatientImpact clients are able to pinpoint ways to improve services, differentiate, and increase profits and satisfy impending pay for performance regulations. The woman-owned company will use the Challenge Grant to enhance the existing PatientImpact application to accommodate more capacity and easier reporting for larger customers.
ETS International (www.etsintl.com) is a full service travel agency that offers clients corporate, leisure, meeting and housing travel services. The minority and woman-owned company will use the Challenge Grant to obtain sales training and support and to create an online booking tool for use by its corporate clients.
NogginLabs Named One of Inc's 5,000 Fastest Growing Companies
NogginLabs, a former CCV Challenge Grant recipient and INNOVATE Illinois 2005 winner, was recently recognized by Inc.com as one of the nation's top 5,000 fastest-growing privately-owned companies in the country. The woman-owned company, which produces custom eLearning solutions for clients such as McDonald's, Dell, Capital One, ABN AMRO and JetBlue, currently has 35 employees and has grown close to 200 percent each year since 2000. While they continue to grow, NogginLabs' 
business model remains efficient - quality performance-based learning at a reasonable prices, delivered by leaders in the eLearning industry. "Our vision has always been delivering the best product while maintaining the highest level of customer service," says co-owner and CEO Brian Knudson.
NogginLabs ranked 2,067 out of 5,000 companies nationwide and is 63rd on the Inc. 5,000 Companies in the Midwest. To qualify, companies were required to have at least $200,000 in revenue in 2003 and $2 million in 2006. NogginLabs' revenue in 2006 surpassed $2.8 million.
To learn more about Noggin Labs visit www.nogginlabs.com.
Cafe Penelope Named CitySearch "Caterer of the Year"
Congratulations to Cafe Penelope for winning the CitySearch Audience Award for Best Caterer, as well as for Best Brunch in Chicago. Cafe Penelope is a participant in CCV's Small Business Development Initiative, a three year program that consists of interactive workshops and one-on-one consulting aimed to help companies improve their business practices and get on the path to growth. The 20 year old restaurant is located at 230 S Ashland Ave, and is a favorite amongst students and faculty at UIC. It is also a great place to grab a bite before heading off to events at the nearby United Center.
To learn more about Cafe Penelope visit www.cafepenelope.com.
| Board of Directors | Staff | |
| President | Co-Presidents | |
| Derrick Collins Kellogg School of Management | Susan Alnaqib & Anita Hollins | |
| Vice-President | Gail Bell | |
| Steve Lawrence Attorney-at-Law | Hussain Bhanpuri | |
| Secretary & Treasurer |
Hans Bonner | |
| Torrence Moore LaSalle Bank | Manjima Bose | |
| Leon Jackson Bill's Shade & Blind Service | Doug Cannon | |
| Joseph Kennedy Harris Bank | Aarti Gopal | |
| Kimberly Magazine Magazine Professional Services | Kate Jones-Smith | |
| Clifford Perry Fifth Third Bank | Wil Martin | |
| Kimberly Richardson Westside Business Improvement Assoc | Dominic Melone | |
| Jeffery Roberts JB Roberts Insurance/Allstate | Mwikali Munyao | |
| Diane Rodak-Salinas | ||
| Bryan Stubbs |
Funding Partners
 |
Minority Business Development Agency, U.S. Department of Commerce |  |
 |
 |
 |
 |
 |
 |
CDFI Fund, US Treasury Department |  |
Jacob G. Schmidlapp Trusts, Fifth Third Bank Trustee |
 |
 |
 |
 |
 |
 |
 |
Drinker Biddle Gardner Carton |
| Private Bank | University of Chicago, Graduate School of Business | CNA Foundation |