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Presents




   November 4, 2010
Wytheville Meeting Center
     Wytheville, VA
•   Welcome
•   Regional Tourism Development Update
•   Successful Adventure Tourism Businesses
•   Questions & Answers
• ...
Regional Tourism Development & Marketing Initiatives
                            rrose@virginia.org




                  ...
Contact:
                            Kevin Costello, Chair
                            (540) 473-1167
                    ...
Contact:
                           Kevin Costello, Chair
                           (540) 473-1167
                      ...
Contact:
                          Michael Wampler
                          Interim Executive Director
                  ...
Contact:
                           Diana Blackburn
                           Executive Director
                        ...
Contact:
                         Jack Hinshelwood
                         Executive Director
                         27...
Contact:
                      Todd Christensen
                      Executive Director
                      Southwest V...
Contact:
                                 Linda Tate
                                 Project Committee Chair
            ...
Contact:
                             Jeffrey B. Trollinger, C.W.B.
                             Watchable Wildlife Progra...
Contact:
                             Wayne Strickland
                             Project Manager
                      ...
Contact:
                            Margie Douglass
                            Chair
                            (276) 9...
Contact:
                            Rita Surratt
                            Chair
                            (276)926-6...
Contact:
                           Tom Hardy
                           Director
                           (828) 670-192...
Contact:
                          Brian Ososky
                          Executive Director
                          540...
Contact:
                       Audrey Odum
                       VA Division of Motor Vehicles
                       in...
Contact:
                           Laura Belleville
                           Director of Conservation
                 ...
Contact:
                        Supervisor's Office
                        540-265-5100 (Roanoke, VA)




http://www.fs....
Connect with VTC:

• Attend a VTC Help Desk Event
• Sign up for the Dashboard e-newsletter
• Visit www.vatc.org


rrose@vi...
Randall A. Rose
             rrose@virginia.org
                276-322-2044


Development Specialist – Partnership Market...
Adventure Tourism Entrepreneurs




• Developing Economic
 Growth Through OutDoor
 Recreation
Tourism Needs and Wants
• ITEMS NEEDED                                • ITEMS WANTED

•   A PRIMARY ATTRACTION            ...
Suggestions
• Do’s
  – Advertise
       • Locally and nationally
  –   Be ready to take a chance but keep realistic goals ...
Final Thought
A young man wanted to go into business for himself, so he
found a retail business for sale in the classified...
Our goal is to
provide an avenue
   for economic
   growth and a
prosperous future
through adventure
     tourism.

      ...
Opportunities in Tourism Related
          Businesses




     Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
Business Experience related to
     Damascus, Virginia
       Trail Town USA




    Plan B Marketing - Thomas Horsch - ww...
What Kind of Business?
•   Evaluate Your Assets
•   Look at Underserved Markets
•   Combine Businesses
•   Partner with Ot...
Evaluate Your Assets
• The Virginia Creeper Trail
• It’s the Geography!
  – 1600 feet descent from the NC State Line to
  ...
Look at Underserved Markets:
          Bike Rental & Shuttle Companies in
                      Damascus
                 ...
Creeper Trail Cottages

                         • Creeper Trail Cottages
                           were opened in 2000 t...
Creeper Trail Hostel
                             • Creeper Trail Hostel
                               was opened in 2004...
“ain't nothin’ fancy”
• For $150 per night , this
  barn converted to bunk-
  house can sleep up to 40
  people. It has ki...
Combine Businesses:
       Bike Shuttle & Rental Business
            = Retail Store Sales
• Bike rental business
  drives...
Partnerships, Affiliations,
            Cooperation
Form relationships with other businesses
  – Guide Service Needs Lodgi...
Another Outfitter in Damascus?
• SunDog Outfitter was
  opened in 2003 to
  serve the outdoor
  gear buying crowd. In
  co...
RISK!!!
“It's not because things are difficult that
  we dare not venture. It's because we
dare not venture that they are ...
The Damascus Old Mill Inn &
        Conference Center
• In 2002 an old historic
  mill was restored and
  converted into a...
Business Has Risks!
• In 2008 The Old Mill
  restaurant was
  closed and room
  occupancy at the
  Inn was reduced to
  ze...
Recommended Reading
• “The E-Myth Revisited” – Michael Gerber

  – Three parts to a business person
    • Entrepreneur
   ...
Enjoy the Ride!




Plan B Marketing - Thomas Horsch - www.PlanBmkting.com

                                            ww...
Are you sure?
What Do
    These
Entrepreneurs
   Have in
 Common?


                  Confidence?
                Competitiveness?
An Idea?

 Drive?



            Identified
           Market Need?
A Plan
  of
Action?




          Willing to take
              Risks?
Focused?

Goal & Objective?




                    A successful
                     enterprise
Remember as a start-up
your place in the food chain
GET PREPARED…DO
YOUR HOMEWORK
OR……..
Small Business in
 Virginia
 Small Businesses constitute
  97% of all Virginia businesses.
 Small Businesses create over...
Virginia is for Business Lovers
• Virginia ranked #1 state for business by
  Forbes.com last four years.
• Ranked #1 most ...
Virginia Business Start-ups




Source: Virginia Employment Commission,
Quarterly Census of Employment and Wages (QCEW)
How to Start and Operate
      A Business
Who is the SBDC

• Small Business Development Center
• Professional Business Counseling -
     Already Paid For
• Experien...
SBDC’s Goals
• Assist clients to create and retain jobs
• Increase client’s revenue and
  profitability
• Increase capital...
How the SBDC can Benefit you
Through one-on-one Counselling, the SBDC can
  help you with…
•   Management Skills
•   Busin...
Business Planning & Strategy
•   6 FORMS OF BUSINESS
•   Entity pros/cons
•   Taxes & Liabilities & Termination
•   Consid...
Why do I need a Business Plan
• To seek financing from a bank, private
  investor, venture capitalists or angels
• To prov...
What goes into a Business Plan
 •   Cover Letter
 •   Statement of Purpose, Executive Summary or Request for
     Financin...
Business Licence & Registration (7-Steps)
•   One      - Determine entity
•   Two      - State Corporation Commission
•   ...
VSBDC Offices
            Radford University
     Radford Office
     www.bac.asp.radford.edu   Tel: 540-831-6056
       W...
Growing Your
Business/Marketing
         Strategies
Kitty Barker
Marketing Mini

• Name of Your Business
• Brand
• Logo and color, images
• Simple, easy to understand, easy to remember
• ...
Research
• Target Audience: Research through
• VTC - Visitor Profile
• Talk with other Outfitters in the region
• Facebook...
DEMOGRAPHICS
 Primary Spring/Summer
 • Families, Groups of 3+
 A30‐54, HHI,$75K+, married w/children in HH,
 educated

...
Reaching Outdoor Enthusiasts
 Blue Ridge Outdoors
 Contact: Charles Leonard 434.817.2755 x25
    charles@blueridgeoutdoo...
Describe Your Benefits

 What services do you offer ?
 What is the customer going to gain?
 What is your list of servic...
Example Branding
 Letter head, business cards, web site, ads , invoices,
  fliers brochures
 Anything people will see or...
What Are Your Resources
• TV and Newspaper are not cost effective unless you use
    a co-op partnership to promote a big ...
What Are Your Resources
 Package it together with a B&B, Winery, restaurant.
 YouTube: Film example of a group that you ...
Join Associations with
                   Web Sites

http://www.outdoorguide.net/vacanoe.html
http://www.icanoethenew.com/...
How Do You Measure
 Fans on Facebook give testimony or measure clicks
  through your ad.
 YouTube Video: number of hits
...
Make Your Calendar
Keep Marketing year round but Rev Up before your
  season.
Offer Holiday Gift Certificates
Plan some sp...
Marketing Calendar
 September: Add photos and videos of successful trips
    from the season to my web site. Sign up for ...
Book your business…have fun
 Kitty Barker
 Tourism Development Specialist
 Virginia Tourism Corporation
 kbarker@virgi...
Financing & Managing
      Resources
Helpful Hints for
    Financing
    Your Business
      Scott Peak
      Market President




© 2009 Wells Fargo Bank, N.A...
Helpful Hint #1
        Get Your Financial House In Order

             Obtain a copy of your personal credit report.
   ...
Helpful Hint #2
        Understand What Your Lender is looking for

             Be specific in what you are asking for
 ...
Primary Source of Repayment
        Business Net Income + Outside Income (W-2)
        Interest Expense +
        Deprecia...
Helpful Hint #3

        Recognize Your Strengths And Weaknesses
             Bank underwriters are paid to identify risk...
Sources of Financing
         Credit Cards
           o Most expensive
           o Credit lines may be cut unexpectedly
...
Why NOW is the Best Time EVER to get a
                            SBA Loan?

         More companies than ever are eligi...
Advantages to SBA Loans


         Lower down payment
                  Up to 90% financing on Owner Occupied Real Estat...
Scott Peak
     Market President
     Wachovia Bank
       601 State St – 3rd Floor
       Bristol, VA 24201
       (276) ...
• Creation of new job opportunities in the Ninth
  Congressional District
• Promotion of our region’s tourism economy
• Sm...
NDDF
Ninth District Development Financing, Inc.

• Loans for start up or expanding a tourism
  related business.
• Busines...
NDDF
Ninth District Development Financing, Inc.




                                  •Loans for start up
                ...
Loan Eligibility
• Any Profit or Non-Profit entity that enhances tourism,
  creates jobs and expand economic development i...
Vincent’s Vineyard- Lebanon, VA
                                           Barter Theatre




Floyd Village Square- Floyd,...
Training and Technical Assistance
• Business Basics Workshop

• Core Four Business Planning
  Course

• Customer Service W...
Becky Nave
Senior Business Trainer/
Marketing Coordinator

•   Phone:     276-619-2243
•   Email:     bnave@peopleinc.net
...
Other Business
              Resources
Sandy Ratliff, Business Services Manager
        Virginia Department of Business As...
The Virginia Department
    of Business Assistance
VDBA supports economic development in the
  Commonwealth by working wit...
Ask VBIC = 866-
248-8814
Business Information Services

To help businesses get started and to grow.


Formation Assistance
 Virginia Business Info...
Virginia’s Business One Stop
                Are you starting a business?
                Virginia’s Business One Stop sys...
Ask VBIC = 866-
248-8814
Growing Your $ales - State

                            Governor’s Executive
                             Order 33
      ...
• Examples of Purchasing:
   – Instant Ice Tea
      • 01/01/2009 – 12/31/2009 = $23,455.71 - 46 PO’s
   – Novelty – Speci...
One–on-One Counseling Sessions
  Need Based:
     –   Accessing New Markets/Sales Growth
     –   Tailored Sales Developme...
Entrepreneur Workshops
          • Launched October 2006
          • Partnership with Service
            Providers and lo...
Growing Your $ales Workshops
 Business Sales Growth Program
    Market Research and Expansion
    Financing
    Growth...
Social Media Workshops
You-Link-Twit-Face




                     Upcoming Events:
                     •November 16 – Br...
Virginia Jobs
    Investment Program
•   Workforce recruiting and training
    – Create minimum 25 net new jobs within 12 ...
Financing Programs
• Direct Lending: In partnership with banks and other
  lenders, we provide direct loans in economic
  ...
OTHER AVAILABLE RESOURCES
• Virginia Department of Labor – Apprenticeship Program
   – Combination of on-the-job training ...
OTHER AVAILABLE RESOURCES
    Turn to SCORE Counselors for Small
              Business Advice
Visit the SCORE Small Busin...
OTHER AVAILABLE RESOURCES
Virginia Business Incubator
  – 7 Available in Southwest Virginia
  – 28 Within Commonwealth
  –...
Business Incubator




Light Manufacturing Space   Shared Amenities   Commercial Kitchen
Starting and Growing a Business

• Business Formation Assistance
   –   Small Business Development Center Network = www.vi...
Marketing Resources
• SCORE = www.score.org
• Virginia Tourism Corporation = www.vatc.org
• Virginia Department of Agricul...
Financing Resources
• Virginia Small Business Financing Authority =
  www.vdba.virginia.gov
• People Inc. Financial Servic...
“If you always do what you’ve
always done, You will always
get what you’ve always got!”
Lets Connect:
                   Sandy Ratliff
    The Virginia Department of Business Assistance
                    276-...
Survey Completions
Please take a moment to complete our
               survey!
CONTACTS
• Sandy Ratliff, Virginia Department of Business
  Assistance = 276-676-3768 or VBIC = 866-248-
  8814
• Randy Ro...
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010
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Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010

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The Virginia Department of Business Assistance partnered with the Virginia Tourism Corporation, Blue Ridge Travel Association and People Inc. to present an Adventure Tourism Workshop focused on helping entrepreneurs launch and operate successful tourism related businesses in Southwest Virginia.

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Transcript of "Blue Ridge Tourism Adventure Tourism Workshop, November 4, 2010"

  1. 1. Presents November 4, 2010 Wytheville Meeting Center Wytheville, VA
  2. 2. • Welcome • Regional Tourism Development Update • Successful Adventure Tourism Businesses • Questions & Answers • Break • Business in the Commonwealth • How to Start & Operate a Business • Marketing Assistance & Strategies • Financing/Managing Resources • Tourism Start-up Financing • Other Available Resources • Complete Evaluations • Adjourn
  3. 3. Regional Tourism Development & Marketing Initiatives rrose@virginia.org Randall A. Rose rrose@virginia.org 276-322-2044 www.vatc.org (industry) Development Specialist – Partnership Marketing Virginia Tourism Corporation ginia.org (consumer)
  4. 4. Contact: Kevin Costello, Chair (540) 473-1167 kcostello@BOTETOURTVA.US www.fishvirginiafirst.com
  5. 5. Contact: Kevin Costello, Chair (540) 473-1167 kcostello@BOTETOURTVA.US www.wildernessroadva.org
  6. 6. Contact: Michael Wampler Interim Executive Director 276-393-2551 michael.wampler@spearheadtrails.com www.spearheadtrails.com
  7. 7. Contact: Diana Blackburn Executive Director 276-492-2080 dblackburn@roundthemountain.org www.roundthemountain.org
  8. 8. Contact: Jack Hinshelwood Executive Director 276-492-2085 jhinshelwood@thecrookedroad.org www.thecrookedroad.org
  9. 9. Contact: Todd Christensen Executive Director Southwest Virginia Cultural Heritage Commission Todd.Christensen@dhcd.virginia.gov 276-492-2097 www.heartwoodva.org
  10. 10. Contact: Linda Tate Project Committee Chair 276-889-8041 lindatate@bvunet.net www.virginia.org/coalheritagetrail
  11. 11. Contact: Jeffrey B. Trollinger, C.W.B. Watchable Wildlife Program Manager 804-367-8747 Jeff.Trollinger@dgif.virginia.gov www.dgif.virginia.gov/vbwt
  12. 12. Contact: Wayne Strickland Project Manager 540-343-4417 wstrickland@rvarc.org www.vawesternhighlands.com
  13. 13. Contact: Margie Douglass Chair (276) 988-1270 mdouglass@tazewellcounty.org www.virginiablueridge.org
  14. 14. Contact: Rita Surratt Chair (276)926-6074 rsurratt@dcwin.org www.heartofappalachia.com
  15. 15. Contact: Tom Hardy Director (828) 670-1924 tomhardy@blueridgeparkway.org www.blueridgeparkway.org
  16. 16. Contact: Brian Ososky Executive Director 540-740-3132 director@visitshenandoah.org www.visitshenandoah.org
  17. 17. Contact: Audrey Odum VA Division of Motor Vehicles info@motorcycleva.com www.motorcycleva.com
  18. 18. Contact: Laura Belleville Director of Conservation Appalachian Trail Conservancy P.O. Box 174 110 Southpark Drive Blacksburg, VA 24063 Direct line: (540) 953-3564 ATC Office: (540) 953-3571 Cell: (540) 449-1138 www.appalachiantrail.org
  19. 19. Contact: Supervisor's Office 540-265-5100 (Roanoke, VA) http://www.fs.fed.us/
  20. 20. Connect with VTC: • Attend a VTC Help Desk Event • Sign up for the Dashboard e-newsletter • Visit www.vatc.org rrose@virginia.org 276-322-2044 www.vatc.org (industry) www.virginia.org (consumer)
  21. 21. Randall A. Rose rrose@virginia.org 276-322-2044 Development Specialist – Partnership Marketing Virginia Tourism Corporation rrose@virginia.org 276-322-2044 www.vatc.org (industry) www.virginia.org (consumer)
  22. 22. Adventure Tourism Entrepreneurs • Developing Economic Growth Through OutDoor Recreation
  23. 23. Tourism Needs and Wants • ITEMS NEEDED • ITEMS WANTED • A PRIMARY ATTRACTION • HISTORY – NATIONAL PARK – INTERPRETIVE SITES – TRAIL SYSTEM – MUSEUMS • LODGING – DRIVING TOURS – MOTEL/HOTEL • CULTURE – BED & BREAKFAST – SOUVENIR SHOPS – CABINS – LOCAL CULTURAL ACTIVITIES • FOOD – THEATRICS PORTRAYING LOCAL CULTURE AND HISTORY – RESTAURANTS • HOME STYLE • ANCILLARY ACTIVITIES • FAST FOOD – MINIATURE GOLF • THEMED – GO CARTS • SUPPLIES – SWIMMING – GAS – GOLF – ARTICLES SPECIFIC TO AREA ACTIVITIES – ANY ACTIVITY OTHER THAN THE • OHV • EQUESTRIAN PRIMARY REASON THAT THE TOURIST • MTN BIKING CAME TO YOUR AREA • HIKING • WATER SPORTS
  24. 24. Suggestions • Do’s – Advertise • Locally and nationally – Be ready to take a chance but keep realistic goals in perspective – Be flexible and willing to change as your business grows. – Find a niche and be original – Research your business, potential clientel and have a good business plan • Don’ts – Copy what everybody else is doing – Expect that business is going to come knocking at your door – Try to be a stand alone business. • Form alliances with other businesses in your area that will help bring clients to your door step!
  25. 25. Final Thought A young man wanted to go into business for himself, so he found a retail business for sale in the classifieds. He made arrangements and purchased the store. He looked on the internet for the best deals for his supplies. A year later he sat in his store wondering why he had no customers…. The following year while thumbing through the newspaper he noticed that his business was being advertised on the foreclosure list!! Bottom line, If no one knows that your business exists then you will be like the young man above…. Market, but market smart!
  26. 26. Our goal is to provide an avenue for economic growth and a prosperous future through adventure tourism. Lead, Follow or Get Out Of The Way!!!!!
  27. 27. Opportunities in Tourism Related Businesses Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  28. 28. Business Experience related to Damascus, Virginia Trail Town USA Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  29. 29. What Kind of Business? • Evaluate Your Assets • Look at Underserved Markets • Combine Businesses • Partner with Other Business and Agencies • Accept Risk Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  30. 30. Evaluate Your Assets • The Virginia Creeper Trail • It’s the Geography! – 1600 feet descent from the NC State Line to Damascus – Through the National Forest along the mountain streams – Easiest most beautiful bike ride in the world Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  31. 31. Look at Underserved Markets: Bike Rental & Shuttle Companies in Damascus • The bike shuttle/bike rental business first started in 1991. Prior to this, there were no bike shuttle/rental businesses to serve the tourist population coming to the Creeper Trail. 2004 brought a new look to Adventure Damascus Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  32. 32. Creeper Trail Cottages • Creeper Trail Cottages were opened in 2000 to serve as vacation rental units. Prior to this, only a small handful of B&B’s existed for lodging. This significantly impacted the establishment of the “family vacation” market in Damascus. Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  33. 33. Creeper Trail Hostel • Creeper Trail Hostel was opened in 2004 to serve as lodging for Scout Groups, Church Groups and Family Groups who wanted affordable lodging one notch above primitive camping. Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  34. 34. “ain't nothin’ fancy” • For $150 per night , this barn converted to bunk- house can sleep up to 40 people. It has kitchen facilities and a great swimming hole too! Marketing of this facility was done via internet web site only, at a cost of $100. The Hostel has been booked every weekend, March through mid-November by groups using the trails in Damascus. B Marketing - Thomas Horsch - www.PlanBmkting.com Plan
  35. 35. Combine Businesses: Bike Shuttle & Rental Business = Retail Store Sales • Bike rental business drives the retail business. • Canoe Livery customers need camping. Bikers being unloaded at Whitetop Station Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  36. 36. Partnerships, Affiliations, Cooperation Form relationships with other businesses – Guide Service Needs Lodging Service – Guide Service Needs Help Marketing – Guide Service Needs Food for Clients – Scouts Need Activities – Canoe Livery – Hostels/Campground Needs Scouts – Scouts Need Campgrounds – Scouts Tell Other Scouts! Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  37. 37. Another Outfitter in Damascus? • SunDog Outfitter was opened in 2003 to serve the outdoor gear buying crowd. In combination with Mt Rogers Outfitters, Damascus has become a destination for those shopping for outdoor gear. Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  38. 38. RISK!!! “It's not because things are difficult that we dare not venture. It's because we dare not venture that they are difficult.” Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  39. 39. The Damascus Old Mill Inn & Conference Center • In 2002 an old historic mill was restored and converted into a lodging, dining and conference facility. The Old Mill allowed Damascus to attract meetings and special entertainment venues that we were unable to accommodate before. Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  40. 40. Business Has Risks! • In 2008 The Old Mill restaurant was closed and room occupancy at the Inn was reduced to zero. • It’s been empty ever since Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  41. 41. Recommended Reading • “The E-Myth Revisited” – Michael Gerber – Three parts to a business person • Entrepreneur • Technician • Manager – Balance all three within your organization Plan B Marketing - Thomas Horsch - www.PlanBmkting.com
  42. 42. Enjoy the Ride! Plan B Marketing - Thomas Horsch - www.PlanBmkting.com www.PlanBmkting.com
  43. 43. Are you sure?
  44. 44. What Do These Entrepreneurs Have in Common? Confidence? Competitiveness?
  45. 45. An Idea? Drive? Identified Market Need?
  46. 46. A Plan of Action? Willing to take Risks?
  47. 47. Focused? Goal & Objective? A successful enterprise
  48. 48. Remember as a start-up your place in the food chain
  49. 49. GET PREPARED…DO YOUR HOMEWORK OR……..
  50. 50. Small Business in Virginia  Small Businesses constitute 97% of all Virginia businesses.  Small Businesses create over 75% of all new jobs.  Small Businesses account for half of the Commonwealth of Virginia’s contribution to the U.S. Gross Domestic Product - a whopping $160 billion. Virginia is for Business Lovers
  51. 51. Virginia is for Business Lovers • Virginia ranked #1 state for business by Forbes.com last four years. • Ranked #1 most business friendly state by Pollina Corporate Real Estate, Inc. last two years. • Named #1 best states for business by CNBC. • Virginia among top 10 list of states friendly to small business.
  52. 52. Virginia Business Start-ups Source: Virginia Employment Commission, Quarterly Census of Employment and Wages (QCEW)
  53. 53. How to Start and Operate A Business
  54. 54. Who is the SBDC • Small Business Development Center • Professional Business Counseling - Already Paid For • Experienced Business Counselors • Low Cost Business Seminars • Worked with 4,000 business in the NRV • Assisted clients with obtaining $100mil. Where business comes to talk business.
  55. 55. SBDC’s Goals • Assist clients to create and retain jobs • Increase client’s revenue and profitability • Increase capital investments in client business • Increase business success rate and • Continue as a recognized contributor to Virginia’s economic development Where business comes to talk business.
  56. 56. How the SBDC can Benefit you Through one-on-one Counselling, the SBDC can help you with… • Management Skills • Business Information • Business Planning • Productivity Improvement • Workshops • Networking Assistance • Loan application • Source of business financing • Financial Analysis • Marketing • Permits, Licenses and taxes Where business comes to talk business.
  57. 57. Business Planning & Strategy • 6 FORMS OF BUSINESS • Entity pros/cons • Taxes & Liabilities & Termination • Consider talking to an accountant/attorney before you decide. • Team of advisors Where business comes to talk business.
  58. 58. Why do I need a Business Plan • To seek financing from a bank, private investor, venture capitalists or angels • To provide you with a management tool • Forces you to take an objective view of your ideas • Serves as the road map to your objective Where business comes to talk business.
  59. 59. What goes into a Business Plan • Cover Letter • Statement of Purpose, Executive Summary or Request for Financing • Table of Contents (optional) • History of the Company • Business Summary • Definition of Products and/or Services • Industry and Competitor Analysis • Market Analysis • Marketing and Sales Strategies • Organization and Management • Operational Plan • Financial Statements and Pro Forma Projections • Capitalization/Equity/Debt Structures Where business comes to talk business.
  60. 60. Business Licence & Registration (7-Steps) • One - Determine entity • Two - State Corporation Commission • Three - IRS Forms - EIN • Four - Unemployment taxes – Va Employment Commission • Five - Registration – Va Dept. of taxation • Six - Local license/tax with local commissioner of the Revenue/Town Administrator • Seven - Other State Agencies for Licenses/Permits for professionals Where business comes to talk business.
  61. 61. VSBDC Offices Radford University Radford Office www.bac.asp.radford.edu Tel: 540-831-6056 Wythe-Bland Office Tel: 434-489-3441 Mountain Empire Community College www.me.vccs.edu/dept/sbdc/ Tel: 276-523-6529 Southwest Virginia Community College www.sw.vccs.edu/ Tel: 276- 964-7345 Virginia Highlands Community College www.vh.vccs.edu/cbi/ Tel: 276-676-5615 Crossroads Center - Galax Tel: 276-236-0435
  62. 62. Growing Your Business/Marketing Strategies
  63. 63. Kitty Barker
  64. 64. Marketing Mini • Name of Your Business • Brand • Logo and color, images • Simple, easy to understand, easy to remember • What is your message • What is the most important thing you are going to say to your customers • What media? Print, e-mail, direct mail, social media
  65. 65. Research • Target Audience: Research through • VTC - Visitor Profile • Talk with other Outfitters in the region • Facebook ad targeted • Magazine Research • Civic Groups and Chamber of Commerce • Attractions near you • Sporting Good Stores: Lead Generation
  66. 66. DEMOGRAPHICS  Primary Spring/Summer  • Families, Groups of 3+  A30‐54, HHI,$75K+, married w/children in HH, educated  Primary Fall  • Men, Adult Groups  • A45‐64 , HHI , 100K+, married w/children in HH, educated
  67. 67. Reaching Outdoor Enthusiasts  Blue Ridge Outdoors  Contact: Charles Leonard 434.817.2755 x25 charles@blueridgeoutdoors.com  Details: Definitive guide to outdoor sports, health and travel in the Southeast  Circulation: 115,000  Distribution: 99% newspaper boxes and in specialty outdoor stores. 40%  Virginia, 10% DC, 5% Baltimore, 10% Charlotte, 5% South Carolina, 10% Atlanta  Demographics: Adults 25‐54, HHI $77K, 70% married, 47% with children, 57%
  68. 68. Describe Your Benefits  What services do you offer ?  What is the customer going to gain?  What is your list of services?  What is it going to cost?  Do you take Credit Cards?  Take reservations over the web site.
  69. 69. Example Branding  Letter head, business cards, web site, ads , invoices, fliers brochures  Anything people will see or use.  Labels on any of your products  E mail Signature  Facebook look  Photos with your logo
  70. 70. What Are Your Resources • TV and Newspaper are not cost effective unless you use a co-op partnership to promote a big event. • Web Site is essential for business. • E Newsletter. Opt in option builds your database • E-mail: buy database and use Constant • Contact, Mail Chimp $30.00 per month • to reach 25,000 customers • Social Media: 400,000 million on • Facebook and can target. • Magazines • Local and Regional Tradeshows
  71. 71. What Are Your Resources  Package it together with a B&B, Winery, restaurant.  YouTube: Film example of a group that you supplied and guided 2-3 minute video.  2nd largest search engine on the net. Cross promote it on Facebook and Web Site. Put up your own You Tube Channel.
  72. 72. Join Associations with Web Sites http://www.outdoorguide.net/vacanoe.html http://www.icanoethenew.com/ http://fishvirginiafirst.com/ http://vaflyfishmtguide.com/ http://www.virginia-outdoors.com/hunting-guides.html http://www.huntingtripsrus.com/whitetail-deer- hunting/virginia.html http://www.1fghp.com/va.html
  73. 73. How Do You Measure  Fans on Facebook give testimony or measure clicks through your ad.  YouTube Video: number of hits  Web Site: number of hits  Blast Constant Contact, Mail Chimp $30.00 per month for 25,000  Number of leads from Magazine  Web Site newsletter blast
  74. 74. Make Your Calendar Keep Marketing year round but Rev Up before your season. Offer Holiday Gift Certificates Plan some special events for return customers Be prepared for big weekends.
  75. 75. Marketing Calendar  September: Add photos and videos of successful trips from the season to my web site. Sign up for Outdoor Convention at Meadowview or Higher Ed Center.  October: Add Christmas Gifts Certificates to Web Site and send out E-newsletters to past customers.  November – Place ad in Blue Ridge Outdoors for March issue. Invite Travel Writers on a free trip.  December : Update my web site information in trade association Web Sites.  January: Attend Outdoor Convention to promote to consumers
  76. 76. Book your business…have fun  Kitty Barker  Tourism Development Specialist  Virginia Tourism Corporation  kbarker@virginia.org  www.virginia.org
  77. 77. Financing & Managing Resources
  78. 78. Helpful Hints for Financing Your Business Scott Peak Market President © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  79. 79. Helpful Hint #1 Get Your Financial House In Order  Obtain a copy of your personal credit report. • Check for any inaccuracies or mistakes. • Make certain that all accounts are current and there are no outstanding judgments or liens. • If there is any derogatory information, be proactive and prepare to explain the problems and why the problem is not likely to occur again.  Gather personal and/or business records • For the past three years, including: • Tax returns, financial statements with schedules and attachments, and interim year-to-date financial statements. • Any other financial documents that might help a lender. • Neatly photocopy all of the documents and prepare them for your presentation. © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use. 91
  80. 80. Helpful Hint #2 Understand What Your Lender is looking for  Be specific in what you are asking for • Know how much you need • Be prepared to support all costs with estimates, invoices, or contracts • Never tell a lender that you want to borrow as much money as possible.  Primary source of repayment • Be able to demonstrate how you will pay back the loan • Debt Service Coverage = Earnings before Interest, Taxes, and Depreciation / Total Debt Service • Debt to Income= Debt service / Income available to service debt  Secondary source of repayment (back up plan) • Be prepared to be able to demonstrate how your lender will be paid back if income falls short • Be prepared to have guarantors and possible collateral © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use. 92
  81. 81. Primary Source of Repayment Business Net Income + Outside Income (W-2) Interest Expense + Depreciation / Amortization + Earning Before Interest, Depreciation, & Amortization (EBIDA) DIVIDED BY Annual Debt Service Payments or Interest Expense plus Current Maturities of Long Term Debt Equals = Debt Service Coverage (Target > 1.40 to 1.0) © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use. 93
  82. 82. Helpful Hint #3 Recognize Your Strengths And Weaknesses  Bank underwriters are paid to identify risk • Business owners tend to be optimistic • Be prepared for scrutiny • Address your strengths and challenges realistically & honestly  Most common weaknesses lenders find are: • Inability to demonstrate repayment ability • Insufficient collateral • Lack of management experience • Insufficient cash injection • Poor personal credit  Don't get scared; just get prepared • Depending on the severity of any particular weakness, you can often overcome it if you are prepared with a particularly noteworthy and compensating strength. © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use. 94
  83. 83. Sources of Financing  Credit Cards o Most expensive o Credit lines may be cut unexpectedly o Most risk  Personal Savings o Lowest expense o Lowest risk o Do not use all of your savings for start up costs  Bank financing o Low cost o Shorter term o Higher equity requirements  Small Business Administration guaranteed loans o Low cost o Longer terms o Reduced equity requirements o Lower risk to partner Banks o Multiple plans to address real estate, equipment, and working capital needs  Non-profit community lenders (People Inc, etc) © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use. 95
  84. 84. Why NOW is the Best Time EVER to get a SBA Loan?  More companies than ever are eligible  Tangible net worth <$8.5MM  Net profits <$3MM in each of last two years  Transaction costs are at an all time low  SBA has waived the guarantee fee – usually ~2 points  Interest rates are at all time lows  Congress is now acting to increase lending limits, waive fees, and bolster lending! © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use. 96
  85. 85. Advantages to SBA Loans  Lower down payment  Up to 90% financing on Owner Occupied Real Estate  Up to 85% financing on Business Acquisition  Up to 90% financing on Partner Buy Out  Longer amortization  20 – 25 Year Term on Owner Occupied Real Estate  10 Year Term on Business Acquisition or Refinance  Can lend with collateral shortfall  SBA does not have specific LTV  Must take “All available collateral” © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use. 97
  86. 86. Scott Peak Market President Wachovia Bank 601 State St – 3rd Floor Bristol, VA 24201 (276) 645 – 1230 Scott.peak1@wellsfargo.com © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  87. 87. • Creation of new job opportunities in the Ninth Congressional District • Promotion of our region’s tourism economy • Small business owners and non-profit entities are eligible to apply • To date, more than ten projects have received financial assistance as a result of this funding
  88. 88. NDDF Ninth District Development Financing, Inc. • Loans for start up or expanding a tourism related business. • Business must be located within the 9th congressional district of Virginia. • Interest rate = Prime Rate
  89. 89. NDDF Ninth District Development Financing, Inc. •Loans for start up or expanding a tourism related business •Over $4.1 million dollars disbursed since inception Visit our website: www.nddf.org
  90. 90. Loan Eligibility • Any Profit or Non-Profit entity that enhances tourism, creates jobs and expand economic development in the Ninth Congressional District are eligible for this loan fund. • The following restrictions apply: • A. 10-year term on real property (land and buildings) • B. 5-year term on equipment and machinery • C. No refinancing of existing loans • D. Loans must be collateralized
  91. 91. Vincent’s Vineyard- Lebanon, VA Barter Theatre Floyd Village Square- Floyd, VA Jessie Lea RV Park – Big Stone Gap, VA
  92. 92. Training and Technical Assistance • Business Basics Workshop • Core Four Business Planning Course • Customer Service Workshop • Social Media Workshop
  93. 93. Becky Nave Senior Business Trainer/ Marketing Coordinator • Phone: 276-619-2243 • Email: bnave@peopleinc.net • Website: www.whatcanpeopledo.org http:www.twitter.com/becky.nave http:www.linkedin.com/in/becky.nave http:www.twitter.com/becky.nave
  94. 94. Other Business Resources Sandy Ratliff, Business Services Manager Virginia Department of Business Assistance 276-676-3768 sandy.ratliff@vdba.virginia.gov www.vdba.virginia.gov www.vastartup.org
  95. 95. The Virginia Department of Business Assistance VDBA supports economic development in the Commonwealth by working with new and existing businesses to provide business and economic development communities with: • workforce incentives • financing • business information and counseling • state procurement assistance • educational opportunities www.vdba.virginia.gov
  96. 96. Ask VBIC = 866- 248-8814
  97. 97. Business Information Services To help businesses get started and to grow. Formation Assistance  Virginia Business Information Center (VBIC) 1-866-248-8814 Bridges the 26 state agencies, over 110 regulatory programs and over 300 forms that may touch a Virginia business Virginia Central Business Portal (www.business.virginia.gov) Covers registration, taxation, licensing Interactive business plan available online at www.vdba.virginia.gov or www.vastartup.org 5 Step process to a business plan
  98. 98. Virginia’s Business One Stop Are you starting a business? Virginia’s Business One Stop system can help Winner of the you determine your business formation requirements and can 2009 pre-fill your business registration forms. Governor's Technology Visit http://www.virginia.gov/bos/index.html to Awards access the Business One Stop System. Create a Business One Stop account. Answer a few brief questions about your business. Receive a list of action items and pre-filled business registration forms. Questions? Contact the Virginia Business Information Center 1-866-248-8814 (804) 371-0438 vbic@vdba.virginia.gov
  99. 99. Ask VBIC = 866- 248-8814
  100. 100. Growing Your $ales - State  Governor’s Executive Order 33  $5 billion market  Access to buyers from 171 state agencies  Additional $5 billion from local governments  575 localities using eVA system.  Small Business Goal – 40%  Over 44,994 registered suppliers  Over 13,065 participating buyers Ask VBIC = 866- 248-8814
  101. 101. • Examples of Purchasing: – Instant Ice Tea • 01/01/2009 – 12/31/2009 = $23,455.71 - 46 PO’s – Novelty – Specialty Advertising Products • 01/01/2009 – 12/31/2009 = $152,905.34 - 152 PO’s – Grounds Maintenance: Mowing, Edging, Plant (Not Tree) Trimming, etc. • 01/01/2009 – 12/31/2009 = $14,566,567.94 - 1150 PO’s – Tires and Tubes, Passenger Vehicles • 01/01/2009 – 12/31/2009 = $72,103.64 - 7 PO’s – Concessions, Catering, Vending: Mobile and Stationary • 01/01/2009 – 12/31/2009 = $6,187,712.31- 11,757 PO’s – Building Maintenance • 01/01/2009 – 12/31/2009 = $90,611,650.85 - 9285 PO’s – Earth Moving Equipment Rental • 01/01/2009 – 12/31/2009 = $8,573,333.24 -621 PO’s – Cleaning Services, Steam & Pressure • 01/01/2009 – 12/31/2009 = $3,358,694.55- 303 PO’s
  102. 102. One–on-One Counseling Sessions Need Based: – Accessing New Markets/Sales Growth – Tailored Sales Development Solutions – Financing Resources – Social Media for Your Business To schedule an appointment, contact: Sandy Ratliff, Business Services Manager 276-676-3768 Email: sandy.ratliff@vdba.virginia.gov
  103. 103. Entrepreneur Workshops • Launched October 2006 • Partnership with Service Providers and localities • Provide information on available resources to start and grow a business • Statewide Program • Free – ½ Day Session • Over 8,000 reached • www.vastartup.org
  104. 104. Growing Your $ales Workshops  Business Sales Growth Program  Market Research and Expansion  Financing  Growth Management  Partnered events for SWAM certification and eVA registration  Networking with businesses and government buyers
  105. 105. Social Media Workshops You-Link-Twit-Face Upcoming Events: •November 16 – Bristol •March 10, 2011 = Christiansburg
  106. 106. Virginia Jobs Investment Program • Workforce recruiting and training – Create minimum 25 net new jobs within 12 months and capital investment of at least $1,000,000 – Minimum entry-level wage of $10.00/hr required. Only full- time jobs are eligible. • Small business workforce recruiting and training – 250 employees or less, hiring at least 5 new full time employees within 12 months of operation and capital investment of at least $100,000 – Minimum entry-level wage of $10.00/hr required. Only full- time jobs are eligible. • Retraining – Small businesses that are retooling and installing new technologies – Company must retrain minimum 10 full-time employees.
  107. 107. Financing Programs • Direct Lending: In partnership with banks and other lenders, we provide direct loans in economic development transactions. We also provide direct loans under specific programs designed to promote environmental stewardship and assist licensed daycare centers and family home providers. • Indirect Lending: We provide loan guarantees or other types of credit enhancements to commercial banks in order to increase access to capital for businesses. • Conduit Financing: We are the statewide conduit issuer of tax-exempt industrial development bonds for manufacturers and 501c3 organizations.
  108. 108. OTHER AVAILABLE RESOURCES • Virginia Department of Labor – Apprenticeship Program – Combination of on-the-job training and classroom instruction. – Advantage of skilled workforce and reduced turnover. – http://www.doli.virginia.gov • Virginia Department of Agriculture & Consumer Affairs – Virginia’s Finest Trademark = Marketing program that promotes foods and foods products grown in Virginia. – Facilitates expansion of agricultural businesses. http://www.vdacs.virginia.gov
  109. 109. OTHER AVAILABLE RESOURCES Turn to SCORE Counselors for Small Business Advice Visit the SCORE Small Business Web Site: www.score.org How-to Advice & Info Ask SCORE for business advice online Find SCORE to locate any chapter in the country 2,000 pages of content for small business owners How-to articles offer practical business tips
  110. 110. OTHER AVAILABLE RESOURCES Virginia Business Incubator – 7 Available in Southwest Virginia – 28 Within Commonwealth – Business Incubator Benefits • Facility designed to assist businesses to become established and sustainable • Benefits – Shared premises and business services – Business advice and mentoring assistance – More details - http://www.vbia.org/
  111. 111. Business Incubator Light Manufacturing Space Shared Amenities Commercial Kitchen
  112. 112. Starting and Growing a Business • Business Formation Assistance – Small Business Development Center Network = www.virginiasbdc.org – SCORE = www.score.org – Virginia Business Information Center = 866-248-8814 – Virginia Central Business Portal = www.business.virginia.gov – Virginia Business Incubator Association = http://www.vbia.org/
  113. 113. Marketing Resources • SCORE = www.score.org • Virginia Tourism Corporation = www.vatc.org • Virginia Department of Agriculture – Virginia’s Finest Trademark = www.vdacs.virginia.gov
  114. 114. Financing Resources • Virginia Small Business Financing Authority = www.vdba.virginia.gov • People Inc. Financial Services = www.whatcanpeopledo.org • Small Business Development Center = www.virginiasbdc.org • Small Business Administration = www.sba.gov • Local Economic Development Office or Chamber of Commerce
  115. 115. “If you always do what you’ve always done, You will always get what you’ve always got!”
  116. 116. Lets Connect: Sandy Ratliff The Virginia Department of Business Assistance 276-676-3768 sandy.ratliff@vdba.virginia.gov Online: Twitter: http://twitter.com/sandyratliff Facebook: http://www.facebook.com/sandy.ratliff LinkedIn - http://www.linkedin.com/in/sandyratliff YouTube - http://www.youtube.com/user/vastartup
  117. 117. Survey Completions Please take a moment to complete our survey!
  118. 118. CONTACTS • Sandy Ratliff, Virginia Department of Business Assistance = 276-676-3768 or VBIC = 866-248- 8814 • Randy Rose, Virginia Tourism Corporation = 276- 322-2044 • Kitty Barker, Virginia Tourism Corporation = 276- 466-8772 • Mike Forrest, Wythe-Bland SBDC = 434-489-3441 • Becky Nave, People, Inc. = 276-619-2243 • Scott Peak, Wachovia Bank = 276-645-1230

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