• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Roanoke Adventue Tourism Workshop Presentations, October 19, 2010
 

Roanoke Adventue Tourism Workshop Presentations, October 19, 2010

on

  • 1,105 views

The Virginia Department of Business Assistance partnered with the Virginia Tourism Corporation, Roanoke Regional Partnership, Betourt County, Franklin County and Alleghany Highlands Chamber of ...

The Virginia Department of Business Assistance partnered with the Virginia Tourism Corporation, Roanoke Regional Partnership, Betourt County, Franklin County and Alleghany Highlands Chamber of Commerce to conduct a workshop focused on launching a successful adventure tourism business. The program included presentations on the steps to business startup, available resources in Virginia, how prepare for seeking financing, marketing a business, risk management and included an overview of tourism projects underway in the Roanoke Region. Participants had an opportunity to meet and hear first hand from successful entrepreneurs on their experience in launching and managing an tourism business.

The Virginia Department of Business Assistance conducts workshops weekly on business start-up, growing sales, social media and other business related topics. To find an event near you, visit www.vastartup.org.

Statistics

Views

Total Views
1,105
Views on SlideShare
1,105
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Roanoke Adventue Tourism Workshop Presentations, October 19, 2010 Roanoke Adventue Tourism Workshop Presentations, October 19, 2010 Presentation Transcript

    • October 19, 2010
    • 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)
    • Contact: Kevin Costello, Chair (540) 473-1167 kcostello@BOTETOURTVA.US www.fishvirginiafirst.com
    • Contact: Kevin Costello, Chair (540) 473-1167 kcostello@BOTETOURTVA.US www.wildernessroadva.org
    • Contact: Michael Wampler Interim Executive Director 276-393-2551 michael.wampler@spearheadtrails.com www.spearheadtrails.com
    • Contact: Diana Blackburn Executive Director 276-492-2080 dblackburn@roundthemountain.org www.roundthemountain.org
    • Contact: Jack Hinshelwood Executive Director 276-492-2085 jhinshelwood@thecrookedroad.org www.thecrookedroad.org
    • Contact: Todd Christensen Executive Director Southwest Virginia Cultural Heritage Commission Todd.Christensen@dhcd.virginia.gov 276-492-2097 www.heartwoodva.org
    • Contact: Linda Tate Project Committee Chair 276-889-8041 lindatate@bvunet.net www.virginia.org/coalheritagetrail
    • Contact: Jeffrey B. Trollinger, C.W.B. Watchable Wildlife Program Manager 804-367-8747 Jeff.Trollinger@dgif.virginia.gov www.dgif.virginia.gov/vbwt
    • Contact: John Hull Project Manager 540-343-4417 jhull@rvarc.org www.vawesternhighlands.com
    • Contact: Margie Douglass Chair (276) 988-1270 mdouglass@tazewellcounty.org www.virginiablueridge.org
    • Contact: Rita Surratt Chair (276)926-6074 rsurratt@dcwin.org www.heartofappalachia.com
    • Contact: Tom Hardy Director (828) 670-1924 tomhardy@blueridgeparkway.org www.blueridgeparkway.org
    • Contact: Brian Ososky Executive Director 540-740-3132 director@visitshenandoah.org www.visitshenandoah.org
    • Contact: Audrey Odum VA Division of Motor Vehicles info@motorcycleva.com www.motorcycleva.com
    • 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
    • Contact: Supervisor's Office 540-265-5100 (Roanoke, VA) http://www.fs.fed.us/
    • 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)
    • 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)
    • More than 3 out of 4 Americans Engage in Outdoor Recreation • Supports nearly 6.5 million jobs across the U.S. (1 out of 20 workers) • Generates $88 billion in annual state and national tax revenue • More camp than play basketball and more paddle (canoe, kayak, raft) than play soccer • The number of Americans who bicycle is double the population of Canada • The Outdoor Recreation Economy employs 5x more people than Wal-Mart, the world’s largest private employer
    • What is the Outdoor Recreation Economy? It’s a $730 Billion Annual Contribution to the U.S. Economy On a Virginia level • $18.7 billion industry • Employs 210,000 people • Provides $1.2 billion in state and local tax revenue
    • Outdoor Assets • The most visited National Park in the U.S. – Blue Ridge Parkway • The longest footpath in the U.S. – Appalachian Trail • The most photographed point along the Appalachian Trail – McAfee Knob • The 2nd largest municipal park in the U.S. – Carvins Cove Nature Reserve • Smith Mountain Lake • Mountain Bike trails ranked in Top 5 according to Outside TV • More than 600 miles of trails and 20 miles of greenways • Four State Parks • Four large lakes ideal for boating, fishing, and water sports • Two major rivers – James and New Rivers • World-class fishing can be found on the region’s numerous wild and stocked streams and lakes
    • Identifying Opportunity Build National Build Image Local Support Identify Gaps Inventory Assets
    • Identifying Opportunity Increased Outdoor New Jobs & Quality of Development Investment Life
    • Identify Gaps Inventory Assets
    • Inventory Assets
    • Build Local Support Identify Gaps Inventory Assets
    • Identify Gaps
    • Build National Build Image Local Support Identify Gaps
    • Build Local Support Community Connection • Weekly newsletter • Event promotion & consultation • Education • Contests & giveaways • Forum for discussion • Film Festival • Expo
    • Build National Build Image Local Support Identify Gaps y
    • Build National Image
    • Build National Image
    • Build National Image “This should get 6 stars. While challenging, it was so beautiful! My iPod stayed in my belt the entire time. It was like watching the best nature movie ever.” $346,776 “Roanoke, VA is the friendliest place I have been to in a long while. All I have to say is WOW, the locations supported this thing like they were all running it.”
    • Build National Image
    • TWIN RIVER OUTFITTERS CANOE / KAYAK / TUBING RENTAL BUSINESS Located on the James River in Botetourt County, VA Page 55
    • TWIN RIVER OUTFITTERS • TWIN RIVER OUTFITTERS is a full service canoe livery that rents canoes, kayaks, and inner tubes on the James & Maury Rivers in the Blue Ridge mountains of Virginia. • We are the oldest and most experienced outfitter operating on the Upper James River and has been safely running river trips since 1978. • We run trips on nearly 100 miles of rivers in the upper James River Basin area providing a wide variety of paddling opportunities to suit every level of paddler. Page 56
    • OWNER’S BACKGROUND TRO is owned and managed by twin brothers John & Dan Mays – Always wanted to own an outdoor recreation business – Both had bachelor degrees in business – Both did the corporate job for 10+ years – Always wanted to be our own boss – Both loved outdoors and paddling – Neither of us ever worked had ever worked in a paddle sports rental business Page 57
    • COMPANY HISTORY • James River Basin Canoe Livery was started in April 1978 by Glen Rose in Rockbridge County, VA who ran successfully for over 25 years • In 2004 the previous owner decided to retire and started looking for a buyer • In 2004 the Mays brothers purchased property in Glasgow, VA and were in process of starting a competing canoe livery • In mid 2004 the Mays brothers were mobilized as member of US Naval Reserves and spent 10 months on active duty including 6 months in Iraq • While mobilized and serving in Iraq was contacted via email to purchase James River Basin Canoe Livery • Negotiations ensued via satellite phone from Iraq to Lexington, and eventually we decided to purchase existing company • In May 2005 we purchased the business and renamed it Twin River Outfitters reflecting new ownership Page 58
    • TRO TODAY • We run a successful tourism business that serves thousands of customers per year • Since taking over the company in 2005 we have maintained grown every year from 8 – 20%. • We own and manage a canoe fleet of 40 canoes, 40 kayaks, and 50 rental tubes • In 2010 we opened the “James River House” a 5 room inn, located 1 block from our canoe livery business to add a lodging component to our business • In the future we are looking to expand with a camp ground or rental cabins Page 59
    • LESSONS LEARNED • PICK GOOD BUSINESS LOCATION • SUFFICIENT START UP CAPITAL • INTERNET MARKETING • MANAGE YOUR CASH FLOW • BE ABLE TO WEAR MANY HATS • ADAPT AND ADJUST • LONG HOURS Page 60
    • BUSINESS LOCATION • KEY TO SUCESSFUL BUSINESS • LOCATION, LOCATION, LOCATION • PROXIMITY TO TARGET MARKET • RIVER FRONT PROPERTY Greatly simplified our operation Page 61
    • SUFFICIENT START UP CAPITAL • TAKES MONEY TO MAKE MONEY • “ROME WAS NOT BUILT IN A DAY” BUT YOU NEED TO START WITH BIG ENOUGH OPERATION THAT CAN SUPPORT YOURSELF • IT CAN TAKE SEVERAL YEARS TO TURN PROFITABLE, NEED CONTINOUS FUNDING DURING START UP PERIOD Page 62
    • INTERNET MARKETING • Need an attractive & functional website • # 1 Way new customers find us is via internet search • Biggest bang for your marketing dollars, canoevirginia.com & canoevirginia.net Enter “CANOE VIRGINIA” or a variation and we routinely come up in top 5 search results for Yahoo, Google, & MSN. • New trends social media (i.e. Face Book), opt in email marketing campaigns Page 63
    • MANAGE CASH FLOW • SEASONAL BUSINESS - 85% OF INCOME GENERATED IN 4 MONTHS OF YEAR • RETAIL BUSINESS DO WELL FROM THANKSGIVING TO CHRISTMAS • WHAT DO IN OFF SEASON?? Do you need other income sources to make it through the rest of the year??? • NEED SOME YEAR ROUND INCOME, AND DISCIPLINED BUDGETING SKILLS Page 64
    • MUST WEAR MANY HATS • SHUTTLE • TRAVEL AGENT DRIVER • MECHANIC • INSTRUCTOR • WEB MASTER • SALES GUY • GROUNDS • MANAGER KEEPER • ACCOUNTANT • BUS DRIVER • JANITOR • RIVER GUIDE • INN KEEPER Page 65
    • CONTINOUSLY ADAPT AND ADJUST • MUST BE WILLING TO ADJUST SERVICE MIX BASED ON CUSTOMER DEMAND AND CHANGING TRENDS • Tubing - previous owner did not offer • Kayaking – previous owner had 4, we now have 40 • Canoes – less demand • Added lodging component to business • Private boater shuttle service • Cell phone usage Page 66
    • LONG HOURS • In season frequently work 7 days a week / 70 plus hours week • Reachable by phone 24 /7 when customers are on water or at Inn • 6 am canoe campers w/ boats floating down stream • 1 am pick up for Adventure racer who missed take out • 8 pm boat recovery Memorial day weekend • Definitely not a 9 am – 5 pm job • Down time in off season Page 67
    • POSSIBLE BUSINESS IDEAS • Zip line / canopy tours • Outfitter store • Dude ranch • Guided camping trip • Road biking support • Guided fishing service company • Paintball company • Bed & breakfast lodging • Tour bus based guided • Canoe / kayak rental trips • Horseback riding • Summer camp • ATV rentals • Camp ground • Bait & tackle shop • Cabin rental • Outdoor skills instruction Page 68
    • BEST OF LUCK STARTING YOUR OUTDOOR TOURISM BUSINESS THANKS FOR YOUR TIME TODAY Page 69
    • 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 - www.PlanBmkting.com
    • 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
    • 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
    • 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
    • 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
    • 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
    • “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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • Enjoy the Ride! Plan B Marketing - Thomas Horsch - www.PlanBmkting.com www.PlanBmkting.com
    • October 19, 2010
    • 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 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
    • 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.
    • Virginia Business Start-ups Source: Virginia Employment Commission, Quarterly Census of Employment and Wages (QCEW)
    • Financing & Managing Resources
    • Helpful Hints for Financing Your Business Matthew Churchill Principal Business Relationship Manager/Vice President Roanoke Business Banking Wachovia Bank © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
    • 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. 101
    • 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. 102
    • 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. 103
    • Types of Deals Financed  Acquisition of Owner Occupied Real Estate  Financing available up to $9MM  Refinance of Existing Debt  Up to $2MM  Must cut payments by 10% or more  Business Acquisition  Individual or corporate buyers  Partner or Management Buy-Outs  Loans up to $1.75MM  Start Ups  Require 30% equity © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use. 104
    • Why Wells Fargo SBA Lending  Largest lender in United States  Closed over $900MM in 2009 – three times nearest competitor  Experienced Lenders and Underwriters  Preferred SBA Lender  Growing while others contract  2010 Goal - $1.2B  It’s a marathon not a sprint  We don’t sell our loans © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use. 105
    • Matthew Churchill Wachovia Bank (540) 563-7675 matthew.churchill@wachovia.com © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
    • How to Start and Operate A Business
    • Success Formula GP + D + GM + ECS = $$ © © RRSBDC 2010
    • Will Your New Business or Expansion Idea Work? • Write a business plan and see if the idea makes sense • Open up a business or start a new product or service and hope you made the correct decision Guess which one has the greatest chance of success? © RRSBDC 2009
    • Business Success Rates Percentage of Businesses Still Operating 66% 70% 60% 50% 44% 40% 31% 30% 20% 10% 0% After 2 Yrs After 4 Yrs After 7 Yrs Yrs in Operation Writing a business plan increases your chances of success by 25%. © RRSBDC 2009
    • Why do I need a Business Plan • Forces you to do the necessary research – About your business idea – About your business expansion idea • Gives you a written plan of action for future • Required for investors or bank © RRSBDC 2009
    • Why do I need a Business Plan The Business Plan is: – Not just for start up businesses – Not just for businesses looking for capital – Every business should do one every year © RRSBDC 2009
    • What goes into a Business Plan • Executive Summary * • Description of Business • Definition of Products and/or Services • Market Analysis and Marketing Plan * • Organization and Management Team • Operational Plan • Financial Statements and Projections * • Appendix * Most Important © RRSBDC 2009
    • Marketing Research – 9 Step Process 1. What is the (new) product or service you want to sell? 2. Is there a demand for this product? 3. What is the state of the industry? (product life cycle) 4. Who are your competitors? (do a competitive analysis also called SWOT) © RRSBDC 2009
    • Marketing Research – 9 Step Process 5. Who is your target market? (Demographics & Psychographics) 6. How will you position yourself in the market? 7. How will you price your product? 8. Where will you do business? 9. How will you reach your market? (specific marketing, advertising & marketing calendar) © RRSBDC 2009
    • Creating Your Financials What you will need: • Income Statement Projections– 3 years • Cash Flow Projections – 3 years • Balance Sheet – 3 years • Break-Even Analysis • Start-up Expenses © RRSBDC 2009
    • Steps to Opening and Operating a Business © RRSBDC 2009
    • Steps to Opening a Business 1. Determine legal entity 2. Check name availability with SCC (trademarks also) 3. Check to see if a URL is available (www.internic.net – click on whois) 4. Register with the SCC your corporation, LLC or/and fictitious name (www.scc.virginia.gov) 5. Get your FEIN with the IRS (www.irs.gov) 6. Register with VA Dept of Tax and V.E.C. (www.tax.virginia.gov) © RRSBDC 2009
    • Steps to Opening a Business 7. Check with Dept of Professional & Occupational Regulation to see if you need any special permits. (www.dpor.virginia.gov) 8. Obtain Business License from local Commissioner of Revenue • Other permits/licenses – ABC, Health Dept, Meals/Lodging/Entertainment taxes • Local fictitious name registration with courthouse • Insurance – liability, workman’s comp, etc. • Trademarks, Service Marks, Patents, Copyrights • MAKE TONS OF MONEY © RRSBDC 2009
    • Reasons Why Businesses Fail • Insufficient Capital: lack of cash flow • Inexperience in the business • Poor customer service • Lack of a business, financial and marketing plan • Ignorance of the market and competition • Failure to adjust to the market • Change in economic conditions • Failure to properly maintain records • Poor location
    • Financial Management • Use a computerized bookkeeping system • Separate bank account for trust fund taxes • Run Financial Statements monthly – Balance Sheets and Profit & Loss • Analyze statements each month – Compare period to period – benchmark to other businesses – Look out for major discrepancies – Check your pricing & competitors regularly • Don’t let one person do all accounting – Send bank statement to home – leave unopened • Make tax deposits & tax filings on time – Estimated tax payments • Don’t try to do it all yourself
    • Choosing the Right Legal Entity Maintaining the Entity Integrity • Setup before business starts • Setup separate bank account • Do not mix personal & business funds or bills • Sign all contracts & leases in entity name • Sign everything as owner/president etc. • Put insurance in company name • If corporation have annual meeting and maintain minute book © RRSBDC 2009
    • Choosing the Right Legal Entity Liability Protection Exclusions • Personal Guarantees – notes, leases, vendors • Negligence • Failure to pay IRS payroll taxes • Fraud © RRSBDC 2009
    • Facts about Small Business Loans • You will need good credit • There is no such thing as 100% Financing • You will need to put in 10-40% cash • The bank will require a personal guarantee • Startup businesses are hard to finance • The process is not quick • Most business grants are myths • The SBA does not lend money • 75% of all new businesses starts with capital from owner/friends/relatives
    • Financial Assistance SBA General Eligibility Criteria  Must be for profit  Not engaged in lending, real-estate development,  investments or speculation  Must have a sound business purpose  Good Credit www.annualcreditreport.com  REASONABLE Equity Investment
    • U.S. Small Business Administration • 7(a) Loan Program Express Loans – up to $350,000 Community Express Loans – Borrego Springs Bank. www.borregospringsbank.com up to $50K Patriot Express – up to $500,000 Term Loans – up to $2,000,000 • 504 Loan Program Real Estate and Fixed Assets • Micro-Loan Program Up to $35,000 Handled locally by Business Seed (TAP)
    • How Can Our Services Benefit You • Roanoke Regional Small Business Development Center • Mission – Provide no-cost professional business counseling, training & information resources to help start, grow and strengthen Virginia Businesses. • Staffed by paid full-time Professional Counselors © RRSBDC 2009
    • How Can Our Services Benefit You Through one-on-one Counseling, we can help you with… • Development of Business Plan • Market Research • Development of Marketing Plan • Workshops • Government Procurement © RRSBDC 2009
    • How Can Our Services Benefit You Through one-on-one Counseling, we can help you with… • Technology • Loan Application • Source of Business Financing • Financial Analysis • Permits, Licenses and Taxes • Counseling is at No Cost © RRSBDC 2009
    • Local Office Roanoke Regional Small Business Development Center 210 South Jefferson Street Roanoke, VA 24011 (located inside the Roanoke Regional Chamber of Commerce building) 540-983-0717 www.rrsbdc.org
    • Growing Your Business/Marketing Strategies
    • Tourism Business Development & Marketing Assistance Randy Rose Development Specialist – Partnership Marketing Virginia Tourism Corporation rrose@virginia.org 276-322-2044 www.vatc.org (industry) www.virginia.org (consumer)
    • • Virginia Tourism Corporation Overview • Tourism Business Opportunities • Marketing Your Small Business
    • • 19.2 billion in revenue • supported 210,620 jobs • provided $1.28 billion in state and local tax revenue Impact of Tourism in VA - 2008
    • • Advertising • Customer Service & Industry Relations • Electronic Marketing • Film Office • Marketing & Promotion • Public Relations • Research • Tourism Development • Others Virginia Tourism Corp. Services
    • • Planning Assistance • Marketing Guidance • Workshops • Marketing/Advertising Benefits Business Assistance
    • • Wilderness Road Heritage Trail • Virginia Coal Heritage Trail • ‘Round the Mountain • Heartwood • Spearhead Trails • Crooked Road • Fish Virginia First Development & Partnership Marketing
    • • Franklin County • Pulaski County • Roanoke County • City of Radford • Craig County • Giles County • Patrick County • Tazewell County • Floyd County • Carroll County Locality Tourism Planning
    • • Marketing Leverage Program Funding
    • •Canoe Rentals and Tours •Fishing and Boating Rentals •Bicycle Tours and Outfitters •Adventure/Nature Camps Tourism Business Opportunities
    • •Wineries/Vineyards •Corn Maze •Pumpkin Patch •Pick Your Own •Animal Parks •Herb/Flower Farms •Christmas Trees Farms Agri-tourism
    • •Bed & Breakfast Inns •Cabins and Cottages •Lodges •Campgrounds •Horse Campgrounds •Horse Stables/Barns •House Boats •Green Lodging Unique Lodging Opportunities
    • •Music/Theater Venues •Artisan Studios/Galleries •Heritage Sites •Tea Rooms •Breweries/Pubs •Eclectic Restaurants •Shopping •Spas Attractions
    • Caterers Cleaning Services Food/Drink Distributors Electricians Restaurant Equipment Plumbers Security Systems Pool Maintenance Convenient Stores Lawn Care Web Site Designers Auto Repair Ad Agencies Events Planners Travel Agencies Florists Motorcoach Companies Linen Services Car Rental Offices Supporting Businesses
    • • Visit www.vatc.org & www.virginia.org • Sign up for the Dashboard e-newsletter • Attend at VTC Help Desk event • Establish relationships with all VTC divisions – tap into our services (i.e. marketing, advertising, research, etc.) Learn More About VTC Services
    • Now, let’s talk about marketing your small business
    • Can you answer these two questions? • What is Marketing? • What is the difference between Marketing and Advertising?
    • 6 Questions You Should Answer • What are you trying to accomplish? • Who is your target audience? • What message will move your audience? • What vehicles do you have to deliver the message? • What are your resources? • How do you measure your performance/success? Marketing Plan
    • What are you trying to accomplish? • What is your mission and vision? • Are you the largest, cheapest, best service, best quality? • Sales goals? Marketing Planning
    • Who is your target audience? • by demographics • by geography • by needs and wants • now and in the future Marketing Planning
    • What message will move your audience? • Your brand • Your tagline/slogan/message • What do you want people to say about your business? Marketing Planning
    • What vehicles do you have to deliver the message? • Website • Social Media • E-mail • Tradeshows • Advertising • Newsletters • Public Relations Marketing Planning
    • What are your resources? • Budget/Money • Owner/Employee Skills • Friends/Family • Partnerships • Local/State/Federal Assistance • Chambers of Commerce, Business Associations, etc. Marketing Planning
    • How will you measure your marketing performance? • Electronic Marketing Tools • Data Collection • Research Mechanisms • Surveys • Informal Questioning • Sales Data Marketing Planning
    • Have a Calendar/Schedule Include: • Anticipated Ad Placement • Press Releases • Social Media Updates/Posts • Promotions • Other Scheduled Strategies Marketing Planning
    • Marketing Plans Change • Because of business growth • Because of research • Because of economic factors • Because of technology (social media) • Because there is always change Marketing Planning
    • Virginia’s Recent Ad Campaign
    • Traditional Methods • Direct Mail • Sales/Promotions • Referrals • Phone Calls Marketing Tips
    • Branding (it’s not just a logo) Marketing Tips
    • Customer Service • Train and Empower Staff • Gauge Performance • Have Customer Service Plan (Goals, Objectives) Marketing Tips
    • Electronic Marketing • Website • E-mail • E-newsletters • E-ads Marketing Tips
    • Targeting Niches & Groups By Interest • Traditional Music (Crooked Road) • Cultural Heritage (Coal Heritage Trail) • Anglers (Fish Virginia First) • Outdoor Enthusiasts • Weddings/Meetings/Group Tours Marketing Tips
    • Public Relations Marketing Tips
    • • Determine Ways to Stand Out /Be Unique • Be Creative • Have Fun! Marketing Tips
    • Tourism Business Development & Marketing Assistance Kitty Barker Development Specialist – Partnership Marketing Virginia Tourism Corporation rrose@virginia.org 276-322-2044 www.vatc.org (industry) www.virginia.org (consumer)
    • Adventure Tourism Entrepreneur Workshop “Managing Your Risks” Presented by Zak Kephart Rutherfoord A Marsh & McLennan Agency October 19, 2010
    • Overview • Rules • Exposures • Managing the Risk • Appetite for Risk • Factors that Affect Pricing • Open Forum for Questions…
    • Rules 1. “Don’t Risk a Lot to Save a Little” 1. Every business needs liability coverage • $1,000,000 of liability coverage is very affordable 2. “Self Insure the Small Losses” 1. Transfer the Risks that can jeopardize you financial future 3. “Insurance is Not a Four Letter Word” 1. It just feels like it
    • Exposures Unique to Outdoor Activities • Insect and Animal Bites • Fire Safety • Emergency Response • Weather issues resulting in loss of business • Boats • Climbing equipment
    • Managing Risk • Retain the Risk – Self Insurance • Transfer the Risk – Through contracts with customers and vendors – Purchase insurance to transfer risk to the insurance providers
    • Coverages • Property: Real Property, Business Contents, Property of Others • General Liability: Third-Party Property Damage and Bodily Injury • Automobile Liability and Physical Damage • Worker’s Compensation: Employees hurt on the job • Employment Practice Liability: Coverage for organization, its directors and officers, and its employees against claims alleging damages because of wrongful employment practices such as sexual harassment, wrongful termination, and unlawful discrimination • Sexual Abuse and Molestation Liability: Third party claims against an employee concerning misconduct of the stated insurance
    • Appetite for Risk • What can you afford to pay for out of pocket? (Deductibles and Self-Insurance) • What limits do you feel comfortable with in order to feel adequately covered? ($500,000 or $1,000,000) • Make sure your business estimates are on par with the average for a similar object (Actual Cash Value vs. Replacement Cost)
    • Contracts 1. Make sure contracts are reviewed by a trusted attorney 2. Obtain a hold harmless for claims arising out of subcontractors or vendors 3. Insurance will not cover all risk you assume under contract 4. Signed release
    • A Few Factors that May Affect Pricing • Activities (I.e. rock-climbing and horseback riding are considered extremely dangerous) • Résumés and work history of supervisors and staff • Relative location to hospitals and fire stations • Safety procedures (first-aid training) • Transportation of clients- Passenger vans vs. shuttle service • Employee Handbook (Safety Program)
    • Thank you for your time, are there any questions?
    • 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
    • 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
    • Ask VBIC = 866- 248-8814
    • 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
    • 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
    • Ask VBIC = 866- 248-8814
    • 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
    • • 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
    • 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
    • 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
    • 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
    • Social Media Workshops You-Link-Twit-Face Upcoming Events: •November 1 - Floyd •November 16 – Bristol •March 10, 2011 = Christiansburg
    • 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.
    • 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.
    • 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
    • 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
    • OTHER AVAILABLE RESOURCES Virginia Business Incubator – 7 Available in Southwest Virginia – 29 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/
    • Business Incubator Light Manufacturing Space Shared Amenities Commercial Kitchen
    • OTHER AVAILABLE RESOURCES Virginia Economic Bridge, Inc. – Non-profit organization to promote the economic vitality of SWVA and the Commonwealth. – Virginia’s Business Pipeline – Online searchable database of more than 24,000 Virginia based companies, business to business marketing & RFP resource www.VirginiaBusiness.org – Virginia’s Linked Workforce Showcase – Designed to create business partnerships yielding contracts between SWVA and Northern Virginia by connecting companies in specific industry sectors. www.LinkedWorkforceShowcase.org
    • 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/
    • Marketing Resources • SCORE = www.score.org • Virginia Tourism Corporation = www.vatc.org • Virginia Economic Bridge, Inc. = www.virginiabusiness.org • Virginia Department of Agriculture – Virginia’s Finest Trademark = www.vdacs.virginia.gov
    • Financing Resources • Virginia Small Business Financing Authority = www.vdba.virginia.gov • Small Business Development Center = www.virginiasbdc.org • Small Business Administration = www.sba.gov • Local Economic Development Office or Chamber of Commerce
    • “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 276-676-3768 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
    • 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 Rose, Virginia Tourism Corporation = 276-322- 2044 • Tom Tanner, Roanoke SBDC = 540-983-0717 • Matthew Churchill, Wachovia Bank = 276-563-7675 • Pete Eshelman, Roanoke Regional Partnership, 540-343- 1550 (x104) • Kevin Costello, Botetourt County, 540-473-1167 • Deb Weir, Franklin County Commerce and Leisure Services, (540) 483-9293 ext. 5 • Teresa Hammond, Alleghany Highlands Chamber of Commerce, (540) 962-2178