Gilbert, the majority owner of the Cleveland Cavaliers, launched Bizdom U in Detroit in 2007. The program gives entrepreneurs four to six months of free training in topics including marketing, sales and finance.
Developer John Ferchill, chairman of the board of directors of the Downtown Cleveland Alliance, and Joe Marinucci, the alliance's president and chief executive officer (right), present Dan Gilbert with an image of Quicken Loans Arena as part of the 2010 Ruth Ratner Miller Award luncheon.CLEVELAND, Ohio -- Dan Gilbert, majority owner of the Cleveland Cavaliers, will bring an entrepreneurship boot camp to downtown Cleveland next year.
Bizdom U will train aspiring entrepreneurs and help them to create businesss plans for new technology companies in the city. Entrepreneurs will apply for a four- to six-month full-time training program, with education in marketing, sales and finance from business professionals.
Gilbert, founder of Quicken Loans Inc., launched Bizdom U in Detroit in 2007 and has provided financial support for the nonprofit operation. Of roughly 35 entrepreneurs that have completed the program in Detroit, about 15 have opened eight businesses near downtown Detroit. At least seven additional businesses should be open by early 2011, said Ross Sanders, the program's executive director.
"Entrepreneurs are the key to invigorating a city because they are the engines that create jobs and significantly contribute to the prosperity of a city and region," Gilbert said in a news release. "Our program searches out people with a burning passion to be entrepreneurs and helps them turn their business dreams into commercial realities in urban areas that need the investment."
Gilbert announced plans to extend Bizdom U while accepting the 2010 Ruth Ratner Miller Award during the Downtown Cleveland Alliance's annual luncheon Thursday. The alliance gives the award to people who have made major achievements in advancing and enhancing the center city.
In Detroit, Bizdom U has received funding from foundations. Gilbert initially plans to support the Cleveland offshoot and is not pursuing other sources of financing, Sanders said in an interview.
Participants in Bizdom U do not pay for the training. Entrepreneurs who present their final business plans to Bizdom U and receive approval are eligible for up to $100,000 in start-up money and additional training and mentoring. Bizdom U typically takes a 66 percent stake in these start-up businesses. After the nonprofit recoups its investment in the companies, the entrepreneurs take a 66 percent stake and Bizdom U retains a 33 percent share, Sanders said.
The nonprofit reinvests its share of company profits into the academy, to fund training and provide start-up cash for other businesses. In Detroit, Bizdom U has helped launch companies that offer tech-based pre-licensing courses for Michigan state exams, provide a web-based electronic medical record system for use in dermatology offices, and produce limited edition sneakers based on designs submitted online and voted on by members of a web-based community.
Sanders said Bizdom U hopes to establish a downtown Cleveland office and start accepting applications from entrepreneurs early next year. The Cleveland boot camp's first class, of up to 20 entrepreneurs, will start in the fall.
"From our perspective, it's a great opportunity to grow businesses," said Joe Marinucci, president and chief executive officer of the Downtown Cleveland Alliance. "This provides us with the opportunity to work with Dan and his team to identify some of those early entrepreneurs."
The alliance plans to open a downtown business-development center, which would work with companies in later stages of growth. That center, and some new marketing initiatives for downtown, are scheduled to debut in mid-December.