PRINCETON IT STARTS HERE

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1 PRINCETON IT STARTS HERE CHALLENGE The Princeton community is offering an incentive package worth up to $20,000 for up to three winning businesses that will open in downtown Princeton by September 1, OVERVIEW The It Starts Here Challenge is an entrepreneurial start up competition for the Princeton Downtown area. Business concepts eligible for the competition are: (1) new businesses; (2) a second or third satellite business from an existing location in another town; or (3) a significant expansion of a current downtown business that includes an additional business concept. The Challenge will include three phases (complete details found on pages 3-5): Phase 1 will be a one-page business concept pitch & $25 application fee due by November 30, The committee will choose up to 12 concepts to advance to Phase 2 after passing a credit check. Phase 2 will require the submittal of a business plan by January 31, The business plan should be fully developed and extensive. Business Plans will be reviewed by the committee, and up to 6 businesses will be chosen to enter Phase 3. Phase 3 is the final phase where finalists will present their business plans and ideas to the committee. The committee will fully examine the plans and presentations, will contact references, have a credit check performed, and determine up to 3 grand prize winners. The challenge is put together by the It Starts Here Committees with help and assistance from a variety of other businesses, organizations, and members of the Princeton community. GOALS To initiate innovative recruitment of businesses that will enhance the business mix in downtown Princeton. To provide entrepreneurial businesses a head-start during the toughest year of business operation (the first year). To strengthen the economy and the downtown environment of Princeton by attracting unique and specialty businesses. To transform empty business spaces into more attractive and beneficial locations. To build a buzz and promote Princeton as a great place to start a business. To display the community s commitment to downtown Princeton. To take ownership of downtown Princeton and demonstrate pride in downtown Princeton. 1

2 PACKAGE DEALS Up to three (3) Grand Prize winners will each receive a package worth up to $20,000. In addition to the prizes listed below, additional prizes are being added. (Total package worth is dependent upon selection of business location). Forgivable Loan The City of Princeton will provide a $10,000 forgivable loan to up to three winners. A formal agreement will be created with conditions (such as employment conditions, compliance with all Codes and permits, participation in the Chamber Business Success Group or the Small Business Development Center Profit Mastery Program, and requirement of the business being in operation for 3 to 5 years). If conditions are met, the loan will be forgiven. Additional contingency rules for the loans will be given, which are separate from the contest rules. Forgivable loans are subject to the review and approval of the Princeton Economic Development Authority. ($10,000 value) Advertising WQPM will provide 200 commercials over a three month period of time, includes writing and producing the commercials at no additional charge. Business must sign matching advertising agreement to receive the radio advertising. ($2,000 Value) Chamber Membership and Advertising Princeton Area Chamber of Commerce will provide one year of free membership and one year of free advertising in the Princeton Chamber Focus, a monthly newsletter. ($700 value) Landscape Architect Services Dave Patten Architects will provide design consultation and sketches so the owners can create a buzz with their newly opened stores. ($500 value) Legal Services Berry Law Offices will provide corporate and legal advice (3 hours of service) for financing, agreement, sales, and marketing. ($700 value) Payroll Training Manke Business Services, Inc. will provide 10 hours of payroll training. ($500 value) Photography Skaalerud Photography will provide photographic services, which could include portraits for a business website or business cards. ($650 value) Printing Minuteman Press will provide a $500 gift certificate for various services (brochures, business cards, flyers, newsletters, signs, design work, etc.). ($500 value) Rental Property Two property owners have committed to offering reduced rents in exchange for signing a 3 to 5 year lease. Details of the reduced rent and lease terms to be negotiated with the property owners, including amount of reduction, deposit requirements, and so on. (Value dependent upon the lease negotiations, but approximated at $3,500). 2

3 Storefront Signage Design Dave Patten Architects will provide storefront signage design. ($300 value) Video and Production Bunch of Berry s Production will provide one hour of filming and discounted editing services to complete a video for advertising. ($400 value) Website Design WQPM will provide a 3-page website, including initial set-up and design of site. Business must sign a one year hosting agreement with $19/month to receive website. ($250 Value) JUDGING Judges will be comprised of multiple business owners, community residents, a local banker, realtor, the Chamber Executive Director, the Community Development Director, and a City Council member. We will also be asking a representative from the Princeton School District and Fairview Northland Medical Center. Judges will be responsible for selecting those who will advance into the next phases. PHASE 1: Criteria for Business Concept ( Pitch ) Applicants will be required to submit a completed one page application form (attached), a one to two page description of the business concept, a credit check application form (attached), and a $25 nonrefundable application fee. Applicants are encouraged to use creativity in the description. Please include the following information (in brief) in the pitch: What are the products or services that would be delivered or sold? Define and describe the market for this business. How will your business enhance downtown Princeton and the Princeton community as a whole? What resources and assets do you have and what resources would be needed to develop this concept (personnel, financing, equipment, etc)? What are your qualifications to develop/expand this business? Are there any similar businesses around already? If so, how is your different? What is your unique angle, business name, and any other information that may really sell the committee on your concept? All business concept entries must be received at the indicated physical address or address by no later than 5:00 PM on November 30, Applications received past the deadline will not be considered for this Challenge. In order to move on to Phase 2, applicants must pass a credit check. All applicants selected to move onto Phase 2 are eligible for Business Plan writing assistance from a neutral third party, the St. Cloud Small Business Development Center. PHASE 2: Criteria for Business Plans Applicants chosen to move on to Phase 2 shall submit a thorough business plan, including: Company Summary Products/Services Summary Market Analysis Summary Challenges, Opportunities, and Strategies to maximize success Resume, management history, and two references Financial Plan (projected income, expenses, net profit, pricing, etc.). Please provide an explanation of your assumptions, as a profit/loss statement does not provide enough detail. How many full time and part time employees? 3

4 Start Up Summary (Initial uses and sources) A community impact summary stating: o How your business will enhance Downtown Princeton o How your business can benefit existing businesses in Downtown Princeton Why your business plan stands out. All business plan entries must be received at the indicated physical address or address by no later than 5:00 PM on January 31, Business plans received past the deadline will not be considered for this Challenge. PHASE 3: Final Pitch The Final Pitch will be a dialogue with the Business Acceleration Committee. Phase 3 participants will describe their idea in person in front of the committee. Phase 3 encompasses all of the previous steps, so participants should be prepared to display and show the business plan. The presentation can be verbal or include media (video, powerpoint, etc). ELIGIBILITY The contest is open to all legal U.S. residents, 18 years of age or older at the time of entry. Proposed businesses can be independent operations or franchised. Proposed businesses can be a one person concept or a team concept. If a business concept is to open up a new store that already exists outside of Princeton (i.e., already located in another city), the business to be in Princeton cannot be more than the second or third location. A current downtown business can apply as an expansion, so long as it introduces a new element in the current business. The contest boundaries are the B-1, Central Business District as indicated on the Zoning Map. OFFICIAL RULES AND REGULATIONS Prizes are non-transferable and may not be redeemed for cash; substitutions by Prize Winners may not be requested. Printed copies of business proposals submitted into the contest may not be returned. The Business Acceleration Committee will judge the business concepts and business plans. Up to three winners will be recommended for approval to the City of Princeton Economic Development Authority and City Council. By participating in this contest, you agree to these Official Rules and to all decisions of Sponsors and the Business Acceleration Committee, which are final and binding in all respects. The It Starts Here Program reserves the right to use participants names, likeness, picture, portrait, voice, biographical information, and written submissions and written or oral statements, for advertising and promotional purposes without additional compensation unless required by law. By entering the contest, you are validating the acceptance of a credit check in the first phase and in the final phase. Grand Prize winners shall assume responsibility for the payment of all other items that are not a part of the incentive package. Grand Prize winners are required to have at least monthly contact with the Business Acceleration Committee prior to opening, in order to keep the Committee apprised of progress. In accordance with the IRS Code regarding prizes and awards, a Form 1099-MISC may be issued by the Committee to the Grand Prize winners. Please consult your tax advisor for additional information. Contingency rules for loans shall be given, which are separate from the contest rules. 4

5 The winners of the Grand Prizes must have their businesses open by September 1, 2013, unless an extension is requested in writing by August 1, 2013 and granted by the Business Acceleration Committee. If not completed thereafter, the grand prize is forfeited and may go to another entrant. By accepting the Grand Prize, the Winners release and discharge the It Starts Here Program, the Business Acceleration Committee, their affiliated companies, participating sponsors, information provides, content providers, subsidiaries, advertisers, advertising agencies, promotional and marketing agencies, and any other companies involved with or otherwise providing services related to this promotion, and all their respective employees, officers, directors, representatives and agencies from any liability or damage due in whole or in part to the award, acceptance, possession, use or misuse of the Grand Prize or from participation in this Challenge. Information regarding the Grand Prize winners will be posted on the website and will be released to the public. The contest rules are not specifically bound by the category they are in (i.e., Phase 1 ). These category separations are for easier reading of the rules. The It Starts Here Program reserves the right to modify and/or extend the deadline dates of the program. If a Grand Prize winner is unreachable after 15 business days, an alternate Grand Prize winner will be selected. The committee reserves the right to take a phased approach and choose only one or two winners in the first round. TIMELINE Initial Press Release and Announcement of the Contest: October 1, 2012 Phase 1 Business Concept (Pitch) Due: November 30, 2012 Announcement of those advancing to Phase 2: December 14, 2012 Phase 2 Business Plans Due: January 31, 2013 Announcement of those advancing to Phase 3: February 14, 2013 Final Proposal Presentations: February 28, 2013 Announcement of the Grand Prize Winners: March 8, 2013 Businesses Must be Open: September 1, 2013 Dates are subject to change. SUBMISSIONS All submissions can be submitted via mail or Via Mail: OR It Starts Here Project 705 Second Street North Princeton, MN Via pacc@sherbtel.net (Please put It Starts Here Challenge Submission in the subject line). QUESTIONS Mary Chapman, Princeton Area Chamber of Commerce or pacc@sherbtel.net OR Carie Fuhrman, City of Princeton or cfuhrman@princetonmn.org This project was funded in part by the Initiative Foundation, a regional foundation. 5

6 Princeton It Starts Here Challenge Application Form Date: Business Concept or Potential Name of Business: Names (Include all members if a team; indicate team lead): Team Lead Contact Information Address (Street, City, State, Zip): Phone (Home): (Cell): address: I have read the competition rules, timeline and eligibility requirements, and I attest that all information included in this application and business concept is true and accurate. Signed: Date: (Lead Contact) 6

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