CALLING ALL DREAMERS b u s i n e s s c o m p e t i t i o n

w w w . c a l l i n g a l l d r e a m e r s . o r g

2014 IDA Awards

980 9th Street, Suite 400 Sacramento, CA 95814 (916) 442-8575 www.downtownsac.org  

RETAIL RECRUITMENT According to DSP’s retail study, Downtown has a strong trade area, but lacks the retail mix to serve the market. Downtown suffers from high retail sales leakage to other areas in the region and could benefit from a more diverse retail mix – with a focus on soft good retailers and especially unique, local and regional retail brands. In 2013, DSP recruited or assisted 68% of the new retail businesses that opened in the downtown district. While DSP’s retail recruiter has had some success recruiting new tenants, overcoming negative perceptions of Downtown’s business environment continued to be a challenge. BRANDING DOWNTOWN In 2012, DSP launched a branding campaign with the theme Dreamers. Welcome. to bolster recruitment efforts and improve perception. The campaign highlights successful entrepreneurs through video testimonials, print and outdoor media.

The Challenge Like many cities, Downtown Sacramento had seen an increase in ground floor retail vacancies. In 2010, the

DSP created a Retail Recruiter program based on the recommendations of a retail study conducted by

Downtown Works, which identified a strong consumer market seeking a vibrant urban retail experience.

DSP’s recruiter was able to place several businesses downtown in the first few years, however, was

continually faced with the perception that neighboring areas were more business-friendly. Moreover,

Downtown Sacramento lacked incentives to attract businesses, support needed to help small businesses

open, and resources required to ensure their success for years to come.

INCUBATING NEW BUSINESSES Building on the branding campaign, DSP launched the Calling All Dreamers competition through its sister organization and 501c3, the Downtown Sacramento Foundation. The program is one part business recruitment and two parts public relations campaign. Calling All Dreamers was designed to: • To stimulate economic activity • Create positive buzz about Downtown Sacramento • Support Dreamers. Welcome. branding campaign • Attract new businesses to enhance Downtown • Highlight active entrepreneurial and innovative communities in Sacramento • Create new viable businesses Downtown Contestants received business coaching from SCORE mentors to hone their business plans. The competition winner received an incentive package that included rent-free retail space for one year, cash prize to be used to support the start-up costs, and access to pro-bono professional services necessary in developing a thriving business operation. Watch the video http://youtu.be/59aKP8Eirvs

ABOUT THE PROJECT The Calling All Dreamers business competition celebrates Sacramento’s assets—our creative capital and the personalities that make our city great by cultivating the next generation of entrepreneurs. Its goal is to improve Downtown Sacramento’s perception within the business community including potential retail tenants, and bolster civic pride. Calling All Dreamers. Business competition is the first step in turning entrepreneurial visions into realities in Downtown. WHY IS THIS PROJECT IMPORTANT? The first year is the most difficult for small businesses. Many startups struggle with capital, overhead expenses, public permitting processes and the details of actually managing a business. This program was designed to help the winner navigate those challenges. The award package was specifically designed to provide the winner with the essential resources and tools needed to successfully open a business.

The Calling All Dreamers Competition

In 2013, DSP launched a business competition to highlight

Sacramento’s entrepreneurial spirit and cultivate the next generation

of dreamers in Downtown. A total of 49 applicants submitted

business concepts for the competition. Not one, but two winners were

selected. Andy’s Candy Apothecary won the grand prize valued at

$135,000. The Dailey Method earned distinction as the people’s

choice winner and received an incentive package valued at $60,000.

 

THE PRIZE DSP assembled a dream team of industry leaders to assist the winner with in-kind services in order to successfully launch. All in all, DSP raised $36,000 in cash sponsorships and $160,000 of in-kind support services for the competition. The winning business received a prize package valued at $135,000:

• 12 months of free rent

• $10,000 in cash prize

• $10k in-kind services for build out

• Advertising in local publications

• 10 hours in legal services

• Point of Sale system and service for 1 year

• Interior design consultation

• 20 hours of design time to create storefront signage plus permit assistance

• business cards and flyers

• Graphic design, website development, photography and creative services

• 15 hours of accounting service

• Public permit/ processing assistance and up to $1000 in fee reimbursements

CORPORATE SPONSORS

The Process

When the competition launched in April 2013, applicants were required to submit a 10-page business concept

and plan, participation release, acknowledgement of official rules and regulations, personal resume of each

owner, and a $50 registration fee to be considered. The business plan included details on the business model,

financial plan, management plan, marketing plan, start up timeline and value proposition. The response from

the business community for the inaugural competition was overwhelming.

 

THE PROCESS The competition launched in April 2013. By June, the grand prize winner was announced. Andy’s Candy Apothecary opened to the public in December 2013. • Call to Dreamers: Entrepreneurs submitted their business plan for a new retail business Downtown in April 2013. • Semi-Finals: In June, 11 semi-finalists were selected by a panel of judges to advance in the competition and were paired with a SCORE business counselor to refine their business plan. • Finals: Contestants submitted their refined business plans, :60 sec video pitch and 5 finalists were selected to advance to the finals. • Public Vote: The general public voted online from June 17-21 for the business the wanted to see open a downtown storefront • SCORE Sounding Board: SCORE executives critiqued contestants business plans presentations. Contestant were provided specific recommendations to improve their plan and presentation. • The Final Pitch: On June 25, Contestants presented their final pitch to the judges in a “Shark Tank” style panel. Andy’s Candy Apothecary was selected as grand prize winner. The panel was so impressed with the caliber of finalists that they decided to select an additional winner and DSP secured resources for a second prize package. The Dailey Method earned the honor of being the People’s Choice winner. • Grand Opening: The grand prize winner celebrated their store opening in December 2013.

SELECTION CRITERIA Submittals were judged by a panel of experts based on creativity, a sound business model, passion and clarity demonstrated in their application. Specific criteria included: • Viability of Concept • Experience • Financial Resources • Business Plan • Operating Practices • Uniqueness of Use • Job Creation • Owner Investment • Independent/Destination retail • Community Engagement THE SELECTION PANEL The 8-member selection panel was comprised of DSF board members, downtown property owners, real estate developers, small business owners, and representatives from the City’s Economic Development Department, Sacramento State’s Center for Entrepreneurship and SCORE.

SCORE Business Coaching

THE SCORE PARTNERSHIP Each semi-finalist is paired with a SCORE business counselor to help them refine their business plans. SCORE mentors are retired business executives who have extensive experience in multiple disciplines and can provide invaluable insight on how to launch, operate, grow a successful business. ABOUT SCORE For over 50 years, the nonprofit association SCORE has been dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship. Because their work is supported by the U.S. Small Business Administration (SBA), and a network of 11,000+ volunteers, they are able to deliver services at no charge or at very low cost. They provide entrepreneurs with: •  Volunteer mentors who share their expertise across 62 industries •  Free and confidential business counseling •  Inexpensive of free business workshops •  Free Business tools, templates and tips online

“My mentor was super helpful in digging into my business plan, asking the right questions, as was the SCORE panel who peppered me with questions to expose areas that weren't well thought-out or missing.”

Andy Paul

Andy’s Candy Apothecary

“The contest was a great platform for us to more clearly develop our business idea. Our SCORE counselor helped us come up with a 3-year profit and loss calculation.”

Molly Brown, Sun & Soil Juicery,

2013 Calling All Dreamer Finalist

“We at SCORE get people just bumping around with concepts. The finalists they set aside were pretty impressive. They had written skeletons of business plans and concepts of how they might get financing and market themselves. The most common thing among them was that most of them were not as well-funded as they probably could have been. But, that’s common thing at this stage.” Bill Duthler, SCORE

CALLING ALL DREAMERS In April 2013, 49 applicants submitted their business concepts for the inaugural Calling All Dreamers business competition. Watch the video: https://www.youtube.com/watch?v=31Dh-Qinecw The quantity and diversity of the contestants was impressive. The DSP received proposals for 21 retail shops including confections, markets and apparel, 14 restaurants from cafes and breweries to and bakeries and juice bars, and 13 service businesses ranging from fitness to child care. BY THE NUMBERS • 49 entrepreneurs submitted their business concepts • 9,000+ page views on DreamersWelcome.org • 1,900+ community members voted for their favorite • The application was downloaded 1,300+ times • Videos on YouTube reached an audience of 7,200+ MEDIA COVERAGE The inaugural Calling All Dreamers competition earned 72 media hits that reached a total local audience of more than 630,000. The competition was covered locally on Capital Public Radio, KFBK, KCRA, News 10, Fox 40, CBS 13, The Sacramento Bee, Sacramento Press, Inside Publications, Sacramento Magazine, Sacramento News & Review, and Sacramento Business Journal. PROGRAM INVESTMENT DSP raised $36,000 in cash sponsorships and $160,000 of in-kind support services for the competition. Not including the award and staff resources, the total program expenses for the Calling All Dreamers business competition was $9,181. The total Cost Per Thousand (CPM) in earned media impressions for this program was only $0.02!

By the Numbers

“The caliber of local talent we witnessed through this competition is promising for our future. Calling All Dreamers uncovered the people and ideas we need to continue to attract and foster in order to create a thriving urban downtown.”

David Taylor, DSTI President

The Calling All Dreamers Impact

•  The two winning businesses – Andy’s Candy Apothecary and The Dailey Method, opened their doors in December 2013 and January 2014, creating 3 new full time jobs and 11 part-time positions.

•  The Calling All Dreamers winners now occupy a lively block at 800 J Street. Before the competition, there were five empty spaces, as a result of the competition three of the five spaces are now leased.

•  One of the of the applicants will open their restaurant, South, outside of the district near Southside Park.

•  Two of the five finalists signed LOIs for development

projects in Sacramento’s urban core.

•  And the fifth finalist, Sun & Soil Juice Company (formerly known as the Cold Press Juicery) will open on P Street later this year in Midtown.

 

Calling All Dreamers generated interest from entrepreneurs, created demand for

downtown retail space, and generated leads for new businesses. For contestants,

the competition gave them a jumpstart in making their dreams a reality.

“I commend the DSP for not just talking about economic development, but for doing economic development. Out of all of the programs we sponsor, this is by far the best investment SMUD has made in the community.”

Elizabeth Breton SMUD

MEDIA COVERAGE The inaugural Calling All Dreamers competition earned a total of 72 media hits that reached a total local audience of more than 630,000. The competition was covered on Capital Public Radio, KFBK, News 10, Fox 40, CBS 13, KCRA, The Sacramento Bee, Sacramento Press, Inside Publications, Sacramento Business Journal, Sacramento News & Review and Submerge Magazine.

Media Coverage

SOCIAL MEDIA The inaugural Calling All Dreamers competition received buzz on social media channels. Utilizing video, splash pages, and a voting component on the Downtown Sacramento Partnership site, that reached a large audience that helped create awareness of the competition and get people engaged with the final business concepts and the entrepreneurs.

Social Media Engagement

callingalldreamers.org By the Numbers 9,000 Page Views 7,309 Unique Page Views 1,300 Application Downloads 40,000+ Facebook Impressions 1,940 total votes and emails collected 4,879 total videos views

The Calling all Dreamers competition was listed as one of ‘2013’s top 13 moments’ by local bloggers, Girls on the Grid

In less than one year, the two winning businesses opened their downtown storefronts. The grand prize winner Andy’s Candy Apothecary received a prize package valued at $135,000. The Dailey Method earned the honor of being the people’s choice winner with a prize package valued at $60,000. Andy’s Candy Apothecary opened in the 800 J Lofts building in December 2013. The Dailey Method opened in January 2014 in the 800 J Lofts. Both businesses continue to earn coverage from local media and have a strong social media presence which contributed to their continued success.

And the winner is…

GRAND PRIZE WINNER: ANDY’S CANDY APOTHECARY  

PEOPLE’S CHOICE WINNER: THE DAILEY METHOD  

Testimonials

Downtown is going through an urban revival unlike any period in the last 50 years. Our central city is becoming a more vibrant place to live, work and play, and these new and emerging businesses are playing a vital role in shaping this city's urban fabric. Calling All Dreamers is encouraging entrepreneurs to come Downtown at one of the most critical moment's in this City's history.

Ali Youssefi,

Vice President of CFY Development