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Jumpstart and Magnet Team Up to Spur Business Growth
The nonprofit, JumpStart is teaming up with Magnet to find small business that could become bigger businesses, with their combined help. This pilot project could lead to a new direction for JumpStart which currently solely works with startup companies. This scale up project will focus on older businesses that have plateaued. This effort was designed to help any small business with a lot of growth potential, according to JumpStart CEO Ray Leach.
The program’s mission is to encourage growth at existing businesses since established companies should be able to create jobs faster than startups, because the infrastructure is already there for these companies to grow.
Magnet has already proven success with their similar Prism project which helped manufacturers create new strategies, break into new markets and hire employees. As a direct result of Prism’s efforts, the first 10 companies to go through the program combined, created 200 additional jobs. For this reason and for a higher ambition, Jumpstart paired up with Magnet to create a dynamic partnership, leveraging the skills of both organizations.
The two Cleveland-based organizations bring different skills to the table, says Ethan Karp, director of the Prism program. Magnet knows manufacturing and ramping up production and productivity while JumpStart has expertise in technology, recruiting and raising capital. “It really is leveraging the talents of both groups,” Karp said. And if they need to, they will bring in other organizations or outside consultants when other skills are needed.
And as with Prism, the scale up program will only require companies to pay for the services they receive only if they actually grow. To be eligible for this program, companies can’t generate more than $20 million in sales annually.
There are currently six local businesses in the program through until about spring. If the program proves successful, this number could rise. The original Crain’s Cleveland Business article noted that this scale-up program will not impact JumpStart’s existing programs for startups, nor will it use any money that JumpStart has received from state programs designed to spur entrepreneurship.
JumpStart was originally designed to help startups, but Deborah Hoover, chair of the organization that paid for the pilot (Fund for Our Economic Future) believes JumpStart has the flexibility to do both; help startups and established companies with the same goal of spurring job growth for the region.
Original article by Chuck Sodor, Crain’s Cleveland