DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICT(S) IMPACTED: City-wide
SUBJECT: Funding Agreement for LiftFund
SUMMARY:
This ordinance authorizes a $100,000 Funding Agreement with LiftFund to undergo an extensive and comprehensive rebrand initiative for Café Commerce, which serves as a one-stop shop where entrepreneurs, startups and small business owners (new or established) can get personal support, information, resources, market data and guidance to start and grow their business. This rebrand initiative will create a new identity for the resource center which will have a broader reach to entrepreneurs and small business owners who are unaware of the services provided.
BACKGROUND:
In 2012, a taskforce of business owners and advocacy organizations were convened to brainstorm methods and strategies for promoting small and new business growth in San Antonio. Business participants represented a wide array of industries, including retail, food and dining, engineering, technology, public relations, trade services, and private investors. Business advocacy organizations included various chambers of commerce, the University of Texas at San Antonio (UTSA), LiftFund, the Westside Development Corporation (WDC), and San Antonio for Growth on the Eastside (SAGE).
The taskforce identified the need to establish a culture of entrepreneurship throughout the San Antonio community and increase coaching and mentoring opportunities for future and existing small business owners. The value of existing resources was also highlighted during the taskforce discussions, as well as the need for increased marketing of these resources. The development of Café Commerce was recommended as a mechanism by which to implement these types of programs. The taskforce further recommended the outsourcing of operations and management of Café Commerce to promote an organic and innovation-focused approach to service delivery. Thus, the City sought to identify a partner to further develop, implement and manage Café Commerce.
In November 2013, City Council approved a professional services agreement with ACCION Texas, now LiftFund, for the operation and management of Café Commerce, which includes both a virtual and physical location where entrepreneurs gather, collaborate, and learn more about entrepreneurship and small business resources. To provide the physical location, 10,000 square feet were remodeled on the first floor of the San Antonio Central Library.
ISSUE:
Since 2015, LiftFund, in partnership with the City of San Antonio, began a rebranding initiative of Café Commerce as the name currently does not convey and emphasize the benefits of the resource center to entrepreneurs and small businesses. Many residents have confused Café Commerce as Café College and have even thought of it as a coffee shop and not a resource center for entrepreneurs and small business owners. During the exploration of the rebrand initiative process, entrepreneurs and small business owners, even youth, were unaware of the services provided by Café Commerce and commented it was one of the best kept secrets in San Antonio and should have a name that reflects its commitment to being a resource and leader in the entrepreneur space. As a result, it has been determined that this rebrand initiative will create a new identify for the resource center which will have a broader reach to entrepreneurs and small business owners who are unaware of the services provided.
To identify a brand that would effectively inform entrepreneurs and small businesses of the resource center and reduce confusion from the public, MarketVision, a reputable marketing firm, who developed over 300 branding concepts, has provided in-kind support to assist in the rebrand efforts. These concepts were vetted by multiple focus groups that consisted of Café Commerce clients, non-Café Commerce clients, and other start-up resource providers such as Geekdom, the University of Texas at San Antonio, and Trinity University. Once these various branding concepts were narrowed down, the Café Commerce Advisory Board provided their final recommendation. If the funding agreement is approved by City Council, the Café Commerce rebrand initiative is anticipated to be unveiled on November 2016.
The Café Commerce Advisory Board, that is made up of five successful entrepreneurs, of which three were recommended by the City, determined that the rebrand would increase the number of clients who utilize Café Commerce and better inform the public on the resources provided, which serve entrepreneurs and small business owners of various backgrounds.
In order for LiftFund and Café Commerce to undergo an extensive and comprehensive rebranding initiative to better reflect the resource center’s mission to help entrepreneurs and small businesses succeed, LiftFund and Café Commerce are requesting $100,000 to create and install signage, redevelop their website and social media presence, and create and market the new brand through various marketing material (detailed budget is attached).
ALTERNATIVES:
If the City does not provide this funding, the logo and branding of Café Commerce would negatively impact LiftFund’s and the City’s ability to effectively market the resource center’s programs and services offered and delay or eliminate the rebranding initiative.
FISCAL IMPACT:
This one-time funding is available in the Economic Development Incentive Fund (EDIF) and will be used for the rebranding of Café Commerce. The contract with LiftFund for the operation and management of Café Commerce was awarded through a competitive bid process and does not duplicate services LiftFund currently provides as funds to undergo a rebrand were not included in the Café Commerce contract.
RECOMMENDATIONS:
Staff recommends approval of the $100,000 one-time funding to LiftFund to undergo an extensive and comprehensive rebrand initiative for Café Commerce.