Hardy, VirginiaNovember 15, 2011
WELCOME      Annette StamusSmith Mountain Lake Chamber of Commerce
What Do    TheseEntrepreneurs   Have in Common?
SUCCESS!
SUCCESS!
Remember as a start-upyour place in the food chain
GET PREPARED…DOYOUR HOMEWORKOR……..
How to Start and Operate      A Business
HOW TO START AND       OPERATE  A SMALL BUSINESS                  By            Dick EphgraveDirector, Longwood University...
What is the SBDC?• Small Business Development Center• VSBDC Mission – To foster small  business success and grow Virginia’...
SBDC’s Goals• Increase new business success rate• Increase client’s revenue and  profitability (new and existing  business...
How the SBDC can Benefit you             Through one-on-one,       Confidential and FREE Counseling,         the SBDC can ...
Why do I need a Business Plan?• To develop your own plan (roadmap)  for YOUR Business idea.• To determine if the business ...
What goes into a Business Plan?•   Executive Summary•   Table of Contents (optional)•   Description of the Business•   Des...
VSBDC Office          Dick Ephgrave, DirectorLongwood Small Business Development Center       115 Broad Street, PO Box 709...
Entrepreneur Express   SCORE Roanoke     November 2011
About SCORESCORE was formed in 1964 as a resource partner of the Small Business Administration. SCOREs mission is to help ...
Our Clients   Early stage entrepreneurs, who are considering to start    a business but need help in defining their ideas...
Our Services   Mentoring: SCORE provides free, confidential    counseling in each of its 360 Chapters and also via the   ...
SCOREs Online Presence   SCORE has a tremendous online presence:       Tutorials and self study classes       Online wo...
Why SCORE Adds Value   Entrepreneurs are usually expert in their chosen field, but    rarely have mastery of the entire r...
Code of Ethics   SCORE has a strict Code Of Ethics to protect    our clients. All volunteers need to agree and    sign an...
Steps For Creating Your Business   Choose the Structure       •   Proprietorship, partnership, LLC, etc.   Register     ...
Business Licensing and Registration   State, county, city, and town may have    requirements.   Why?      –    Taxation ...
Business Licensing and Registration   Check with your local county / city / town      –   Most have information on their ...
Pricing   Price minus Cost = Profit .   Setting prices is vital to the success of any    business. Things that affect pr...
Pricing   Common errors:      –   Not understanding your costs.      –   Not understanding the value of your product or  ...
Management Practices   Im a small business. Am I involved in “Management”?   Management is the acquisition, deployment, ...
Management Practices   Do the Right Things.       –   Must make choices on what to do.   Do Things Right.       –   Ther...
SCORE Roanoke Chapter Overview   Office location, open 10AM-3PM M-F:    105 Franklin Rd, SW, Suite 150    Roanoke VA 2401...
Growing YourBusiness/Marketing         Strategies
Tourism Business Development &        Marketing Assistance               Randall A. RoseDevelopment Specialist – Partnersh...
• Virginia Tourism Corporation Overview• Tourism Business Opportunities• Marketing Your Small Business                    ...
• 18.9 billion in revenue• supported 204,000 jobs• provided $1.3 billion in  state and local tax revenue  Impact of Touris...
•   Advertising•   Customer Service & Industry Relations•   Electronic Marketing•   Film Office•   Marketing & Promotion• ...
•   Planning Assistance•   Marketing Guidance•   Workshops•   Marketing/Advertising    BenefitsBusiness Assistance
•   Wilderness Road Heritage Trail•   Virginia Coal Heritage Trail•   ‘Round the Mountain•   Heartwood•   Spearhead Trails...
•   Franklin County   •   Pulaski County•   Roanoke County    •   City of Radford•   Craig County      •   Giles County•  ...
• Marketing Leverage ProgramFunding
•Canoe Rentals and Tours•Fishing and Boating Rentals•Bicycle Tours and Outfitters•Adventure/Nature Camps Tourism Business ...
•Wineries/Vineyards •Corn Maze •Pumpkin Patch •Pick Your Own •Animal Parks •Herb/Flower Farms •Christmas Trees FarmsAgri-t...
•Bed & Breakfast Inns•Cabins and Cottages•Lodges•Campgrounds•Horse Campgrounds•Horse Stables/Barns•House Boats•Green Lodgi...
•Music/Theater Venues •Artisan Studios/Galleries •Heritage Sites •Tea Rooms •Breweries/Pubs •Eclectic Restaurants •Shoppin...
Caterers                  Cleaning Services  Food/Drink Distributors   Electricians  Restaurant Equipment      Plumbers  S...
• Visit www.vatc.org & www.virginia.org• Sign up for the Dashboard e-newsletter• Attend at VTC Help Desk event• Establish ...
Now,let’s talk about marketing your small business
Can you answer thesetwo 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 ...
What are you tryingto accomplish?• What is your mission and vision?• Are you the largest, cheapest, best  service, best qu...
Who is your target audience? •   by demographics •   by geography •   by needs and wants •   now and in the futureMarketin...
What message will move your audience?• Your brand• Your tagline/slogan/message• What do you want people to say  about your...
What vehicles do youhave to deliver the message?•   Website            • Social Media•   E-mail             • Tradeshows• ...
What are your resources?•   Budget/Money•   Owner/Employee Skills•   Friends/Family•   Partnerships•   Local/State/Federal...
How will you measure yourmarketing performance?•   Electronic Marketing Tools•   Data Collection•   Research Mechanisms•  ...
Have a Calendar/Schedule Include: • Anticipated Ad Placement • Press Releases • Social Media Updates/Posts • Promotions • ...
Marketing Plans Change  •   Because of business growth  •   Because of research  •   Because of economic factors  •   Beca...
Virginia’s Recent Ad Campaign
Traditional Methods •   Direct Mail •   Sales/Promotions •   Referrals •   Phone CallsMarketing 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-adsMarketing Tips
Targeting Niches &Groups By Interest• Traditional Music (Crooked Road)• Cultural Heritage (Coal Heritage Trail)• Anglers (...
Social MediaMarketing Tips
Public  RelationsMarketing Tips
• Determine Ways to Stand Out /Be Unique• Be Creative• Have Fun!Marketing Tips
Tourism Business Development &        Marketing Assistance               Randall A. RoseDevelopment Specialist – Partnersh...
Financing & Managing      Resources
Helpful Hints for     Financing     Your Business      Tommye Arnold      Community Relations Officer© 2009 Wells Fargo Ba...
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        • Know ...
Primary Source of Repayment        Business Net Income + Outside Income (W-2)        Interest Expense +        Depreciatio...
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 eligible...
Advantages to SBA Loans         Lower down payment                  Up to 90% financing on Owner Occupied Real Estate   ...
Tommye Arnold     Community Relations Officer     Wachovia Bank       601 State St – 3rd Floor       Bristol, VA 24201    ...
Other Business              ResourcesSandy Ratliff, Business Services Manager        Virginia Department of Business Assis...
The Virginia Department    of Business AssistanceVDBA supports economic development in the  Commonwealth by working with n...
Ask VBIC = 866-248-8814
Business Information ServicesTo help businesses get started and to grow.Formation Assistance Virginia Business Informatio...
Ask VBIC = 866-248-8814
Growing Your $ales - State                            Governor’s Executive                             Order 33          ...
• Examples of Purchasing:   – Soft Drinks     • 07/01/2010 – 06/30/2011 = $1,651,245 – 1,015 PO’s  – Souvenirs: Promotiona...
One–on-One Counseling SessionsNeed Based:   –   Accessing New Markets/Sales Growth   –   Tailored Sales Development Soluti...
Entrepreneur Workshops• Partnership with Service  Providers and localities• Workshop Types:   – Starting and growing a bus...
Virginia Jobs Investment Program• Workforce recruiting and training   – Create minimum 25 net new jobs within 12 months an...
Financing Programs• Direct Lending: In partnership with banks and other  lenders, we provide direct loans in economic  dev...
OTHER AVAILABLE RESOURCES• Virginia Department of Labor – Apprenticeship Program   – Combination of on-the-job training an...
A regional business incubator serving       the City of Martinsville, Henry,        Patrick and Franklin Counties
What is Business Incubation?   Business support process that accelerates the    successful development of start-up compan...
Services   Favorable Rental Rates   Mentoring Services   Broad Band Internet Access   Shared Resources     Conference...
Benefits   Financial, professional, and technical services    assistance   Access to facilities and equipment not otherw...
WPBDC   23,500 square foot facility    in Uptown Martinsville   11 Tenants   1 Virtual tenants   20 Graduates   231 j...
Questions?                  Robbin Hall               Executive Director   West Piedmont Business Development Center      ...
Starting and Growing a Business• Business Formation Assistance   –   Small Business Development Center Network = www.virgi...
Marketing Resources• SCORE = www.score.org• Virginia Tourism Corporation = www.vatc.org• Virginia Department of Agricultur...
Financing Resources• Virginia Small Business Financing Authority =  www.vdba.virginia.gov• Small Business Development Cent...
“If you always do what you’vealways done, You will alwaysget what you’ve always got!”
Lets Connect:                   Sandy Ratliff    The Virginia Department of Business Assistance                    276-676...
Survey CompletionsPlease 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, ...
Smith Mountain Lake Entrepreneur Express, November 15, 2011 Presentation
Smith Mountain Lake Entrepreneur Express, November 15, 2011 Presentation
Smith Mountain Lake Entrepreneur Express, November 15, 2011 Presentation
Smith Mountain Lake Entrepreneur Express, November 15, 2011 Presentation
Smith Mountain Lake Entrepreneur Express, November 15, 2011 Presentation
Smith Mountain Lake Entrepreneur Express, November 15, 2011 Presentation
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Smith Mountain Lake Entrepreneur Express, November 15, 2011 Presentation

  1. 1. Hardy, VirginiaNovember 15, 2011
  2. 2. WELCOME Annette StamusSmith Mountain Lake Chamber of Commerce
  3. 3. What Do TheseEntrepreneurs Have in Common?
  4. 4. SUCCESS!
  5. 5. SUCCESS!
  6. 6. Remember as a start-upyour place in the food chain
  7. 7. GET PREPARED…DOYOUR HOMEWORKOR……..
  8. 8. How to Start and Operate A Business
  9. 9. HOW TO START AND OPERATE A SMALL BUSINESS By Dick EphgraveDirector, Longwood University Small Business Development Center, Martinsville, VA
  10. 10. What is the SBDC?• Small Business Development Center• VSBDC Mission – To foster small business success and grow Virginia’s economy• Vision – To be the small business resource of first choice in Virginia Where business comes to talk business.
  11. 11. SBDC’s Goals• Increase new business success rate• Increase client’s revenue and profitability (new and existing businesses)• Assist existing businesses to grow by creating and retaining jobs, and increasing capital investments in the business Where business comes to talk business.
  12. 12. How the SBDC can Benefit you Through one-on-one, Confidential and FREE Counseling, the SBDC can help you with…• Basic Business Information for start-ups as well as existing businesses• Business Planning• Training/Workshops- variety of topics• Networking Assistance• Basics of Navigating the financial process• Financial Analysis of your business• Marketing Ideas and Plans• Permits, Licenses and taxes• ETC Where business comes to talk business.
  13. 13. Why do I need a Business Plan?• To develop your own plan (roadmap) for YOUR Business idea.• To determine if the business idea is financially feasible.• To seek financing from a bank, SBA, and/or private investors.• To provide you with a management tool• To give you an objective view of your business idea Where business comes to talk business.
  14. 14. What goes into a Business Plan?• Executive Summary• Table of Contents (optional)• Description of the Business• Description of Products and/or Services• Marketing Plan/Advertising• Industry Analysis• Customers• Competition Analysis• Location• Suppliers/Subcontractors• Organization and Management• Financial Plan Where business comes to talk business.
  15. 15. VSBDC Office Dick Ephgrave, DirectorLongwood Small Business Development Center 115 Broad Street, PO Box 709 Martinsville, VA 24114 Phone: 276-632-4462 E-mail: ephgraverg@longwood.edu
  16. 16. Entrepreneur Express SCORE Roanoke November 2011
  17. 17. About SCORESCORE was formed in 1964 as a resource partner of the Small Business Administration. SCOREs mission is to help new and existing small businesses succeed.Facts (2010) 13,000 volunteer across 350 chapters Volunteers donate 1 million hours of service 501,000 total services delivered annually 360,000 people served annually
  18. 18. Our Clients Early stage entrepreneurs, who are considering to start a business but need help in defining their ideas, building a Business Plan, and obtaining financing. Start-up businesses, who are seeking to grow their business and manage their finances. Established businesses, who are seeking to grow and increase their customer base.
  19. 19. Our Services Mentoring: SCORE provides free, confidential counseling in each of its 360 Chapters and also via the internet through www.score.org . Workshops: Score provides training sessions on a variety of topics, from Business Plans to Marketing, to Financing. SCORE can provide customized seminars for community partners.
  20. 20. SCOREs Online Presence SCORE has a tremendous online presence:  Tutorials and self study classes  Online workshops  Online mentoring: search for a mentor by their expertise and subject matter specialities. SCORE website for SCORE volunteers provides great support:  Training courses  News and updates  Peer learning
  21. 21. Why SCORE Adds Value Entrepreneurs are usually expert in their chosen field, but rarely have mastery of the entire range of business skills. Success in business requires performing a wide range of tasks:  Marketing  Sales  Operations  Accounting, Finance, Legal, HR, Regulatory, Tax... Seasoned SCORE mentors can point out areas of strength and weakness, recommend actions, and point the way to other resources.
  22. 22. Code of Ethics SCORE has a strict Code Of Ethics to protect our clients. All volunteers need to agree and sign annually. Key points:  SCORE mentors are unable to make money in any way from SCORE clients.  Volunteers may not use our client or member databases for commercial reasons.
  23. 23. Steps For Creating Your Business Choose the Structure • Proprietorship, partnership, LLC, etc. Register • Name, trademarks, corporation Obtain Tax IDs • Federal and Virginia Obtain licenses • City/County/Town business license • Occupation specific licenses (Virginia)
  24. 24. Business Licensing and Registration State, county, city, and town may have requirements. Why? – Taxation – Zoning – Regulate certain activities
  25. 25. Business Licensing and Registration Check with your local county / city / town – Most have information on their websites Web site for Virginia Department of Business Assistance: http://www.dba.state.va.us/  Great source of information!
  26. 26. Pricing Price minus Cost = Profit . Setting prices is vital to the success of any business. Things that affect pricing: – Competition – Customer preferences – Costs – Contractual and legal requirements Each market is different.
  27. 27. Pricing Common errors: – Not understanding your costs. – Not understanding the value of your product or service. – Reluctance to lose any sale, leading to excessive discounting. – Reluctance to discount under any circumstances.
  28. 28. Management Practices Im a small business. Am I involved in “Management”? Management is the acquisition, deployment, and use of resources to achieve an organizations goals. – Resources include labor, money, equipment, buildings, etc. – Relationships with customers and suppliers are also resources that need managing. Yes, small business people are in “Management”!
  29. 29. Management Practices Do the Right Things. – Must make choices on what to do. Do Things Right. – There are better and worse ways to accomplish tasks. Doing the Right Thing, badly, is not helpful. Do the Right Things, Right, Right Now. – Take action and get things done. – Time is a valuable resource.
  30. 30. SCORE Roanoke Chapter Overview Office location, open 10AM-3PM M-F: 105 Franklin Rd, SW, Suite 150 Roanoke VA 24011 540-857-2834 info@scoreroanokeva.org Call for an appointment. Mentoring sessions can take place at our office, your place of business, or another site.
  31. 31. Growing YourBusiness/Marketing Strategies
  32. 32. Tourism Business Development & Marketing Assistance Randall A. RoseDevelopment Specialist – Partnership Marketing Virginia Tourism Corporation rrose@virginia.org 276-322-2044 www.vatc.org (industry) www.virginia.org (consumer)
  33. 33. • Virginia Tourism Corporation Overview• Tourism Business Opportunities• Marketing Your Small Business rrose@virginia.org 276-322-2044 www.vatc.org (industry) www.virginia.org (consumer)
  34. 34. • 18.9 billion in revenue• supported 204,000 jobs• provided $1.3 billion in state and local tax revenue Impact of Tourism in VA - 2010
  35. 35. • Advertising• Customer Service & Industry Relations• Electronic Marketing• Film Office• Marketing & Promotion• Public Relations• Research• Tourism Development• OthersVirginia Tourism Corp. Services
  36. 36. • Planning Assistance• Marketing Guidance• Workshops• Marketing/Advertising BenefitsBusiness Assistance
  37. 37. • Wilderness Road Heritage Trail• Virginia Coal Heritage Trail• ‘Round the Mountain• Heartwood• Spearhead Trails• Crooked Road• Fish Virginia First Development & Partnership Marketing
  38. 38. • Franklin County • Pulaski County• Roanoke County • City of Radford• Craig County • Giles County• Patrick County • Tazewell County• Floyd County • Carroll County Locality Tourism Planning
  39. 39. • Marketing Leverage ProgramFunding
  40. 40. •Canoe Rentals and Tours•Fishing and Boating Rentals•Bicycle Tours and Outfitters•Adventure/Nature Camps Tourism Business Opportunities
  41. 41. •Wineries/Vineyards •Corn Maze •Pumpkin Patch •Pick Your Own •Animal Parks •Herb/Flower Farms •Christmas Trees FarmsAgri-tourism
  42. 42. •Bed & Breakfast Inns•Cabins and Cottages•Lodges•Campgrounds•Horse Campgrounds•Horse Stables/Barns•House Boats•Green LodgingUnique Lodging Opportunities
  43. 43. •Music/Theater Venues •Artisan Studios/Galleries •Heritage Sites •Tea Rooms •Breweries/Pubs •Eclectic Restaurants •Shopping •SpasAttractions
  44. 44. 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 OfficesSupporting Businesses
  45. 45. • 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
  46. 46. Now,let’s talk about marketing your small business
  47. 47. Can you answer thesetwo questions? • What is Marketing? • What is the difference between Marketing and Advertising?
  48. 48. 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
  49. 49. What are you tryingto accomplish?• What is your mission and vision?• Are you the largest, cheapest, best service, best quality?• Sales goals?MarketingPlanning
  50. 50. Who is your target audience? • by demographics • by geography • by needs and wants • now and in the futureMarketingPlanning
  51. 51. What message will move your audience?• Your brand• Your tagline/slogan/message• What do you want people to say about your business?MarketingPlanning
  52. 52. What vehicles do youhave to deliver the message?• Website • Social Media• E-mail • Tradeshows• Advertising • Newsletters• Public RelationsMarketingPlanning
  53. 53. What are your resources?• Budget/Money• Owner/Employee Skills• Friends/Family• Partnerships• Local/State/Federal Assistance• Chambers of Commerce, Business Associations, etc.MarketingPlanning
  54. 54. How will you measure yourmarketing performance?• Electronic Marketing Tools• Data Collection• Research Mechanisms• Surveys• Informal Questioning• Sales DataMarketingPlanning
  55. 55. Have a Calendar/Schedule Include: • Anticipated Ad Placement • Press Releases • Social Media Updates/Posts • Promotions • Other Scheduled StrategiesMarketingPlanning
  56. 56. Marketing Plans Change • Because of business growth • Because of research • Because of economic factors • Because of technology (social media) • Because there is always changeMarketingPlanning
  57. 57. Virginia’s Recent Ad Campaign
  58. 58. Traditional Methods • Direct Mail • Sales/Promotions • Referrals • Phone CallsMarketing Tips
  59. 59. Branding (it’s not just a logo)Marketing Tips
  60. 60. Customer Service• Train and Empower Staff• Gauge Performance• Have Customer Service Plan (Goals, Objectives)Marketing Tips
  61. 61. Electronic Marketing • Website • E-mail • E-newsletters • E-adsMarketing Tips
  62. 62. Targeting Niches &Groups By Interest• Traditional Music (Crooked Road)• Cultural Heritage (Coal Heritage Trail)• Anglers (Fish Virginia First)• Outdoor Enthusiasts• Weddings/Meetings/Group ToursMarketing Tips
  63. 63. Social MediaMarketing Tips
  64. 64. Public RelationsMarketing Tips
  65. 65. • Determine Ways to Stand Out /Be Unique• Be Creative• Have Fun!Marketing Tips
  66. 66. Tourism Business Development & Marketing Assistance Randall A. RoseDevelopment Specialist – Partnership Marketing Virginia Tourism Corporation rrose@virginia.org 276-322-2044 www.vatc.org (industry) www.virginia.org (consumer)
  67. 67. Financing & Managing Resources
  68. 68. Helpful Hints for Financing Your Business Tommye Arnold Community Relations Officer© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  69. 69. 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. 73
  70. 70. 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. 74
  71. 71. 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. 75
  72. 72. 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  Dont 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. 76
  73. 73. 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. 77
  74. 74. 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. 78
  75. 75. 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. 79
  76. 76. Tommye Arnold Community Relations Officer Wachovia Bank 601 State St – 3rd Floor Bristol, VA 24201 (276) 645 – 5130 tommye.arnold@wellsfargo.com© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  77. 77. Other Business ResourcesSandy Ratliff, Business Services Manager Virginia Department of Business Assistance 276-676-3768 sandy.ratliff@vdba.virginia.gov www.vdba.virginia.gov www.vastartup.org
  78. 78. The Virginia Department of Business AssistanceVDBA 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 opportunitieswww.vdba.virginia.gov
  79. 79. Ask VBIC = 866-248-8814
  80. 80. Business Information ServicesTo 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 Questions on registration, taxation, licensingInteractive business plan available online atwww.vdba.virginia.gov or www.vastartup.org 5 Step process to a business plan
  81. 81. Ask VBIC = 866-248-8814
  82. 82. 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 50,070 registered suppliers  Over 22,686 participating buyers Ask VBIC = 866- 248-8814
  83. 83. • Examples of Purchasing: – Soft Drinks • 07/01/2010 – 06/30/2011 = $1,651,245 – 1,015 PO’s – Souvenirs: Promotional, Advertising, etc. • 07/01/2010 – 06/30/2011 = $379,138 - 394 PO’s – Grounds Maintenance: Mowing, Edging, Plant (Not Tree) Trimming, etc. • 07/01/2010 – 06/30/2011 = $10,328,901 - 788 PO’s – Tires and Tubes, Passenger Vehicles • 07/01/2010 – 06/30/2011 = $519,410 - 393 PO’s – Concessions, Catering, Vending: Mobile and Stationary • 07/01/2010 – 06/30/2011 = $23,874,228 – 10,193 PO’s – Building Maintenance • 07/01/2010 – 06/30/2011 = $40,240,266 - 5136 PO’s – Earth Moving Equipment Rental • 07/01/2010 – 06/30/2011 = $15,452,634 - 764 PO’s – Janitorial/Custodial Services • 07/01/2010 – 06/30/2011 = $5,336,396 - 887 PO’s
  84. 84. One–on-One Counseling SessionsNeed 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
  85. 85. Entrepreneur Workshops• Partnership with Service Providers and localities• Workshop Types: – Starting and growing a business – How to sell to the Commonwealth – Social media for business – iPad for business – Business of restaurants• List of events: – www.vastartup.org
  86. 86. 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.
  87. 87. 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.
  88. 88. 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
  89. 89. A regional business incubator serving the City of Martinsville, Henry, Patrick and Franklin Counties
  90. 90. What is Business Incubation? Business support process that accelerates the successful development of start-up companies by providing entrepreneurs with an array of targeted resources and services A business incubator’s main goal is to produce successful firms that will leave the program financially viable and freestanding
  91. 91. Services Favorable Rental Rates Mentoring Services Broad Band Internet Access Shared Resources  Conference and training rooms  Shared receptionist  Business equipment "Virtual Incubator" Available
  92. 92. Benefits Financial, professional, and technical services assistance Access to facilities and equipment not otherwise available Increased visibility Environment where small businesses can share experiences and reduce the risks involved in business startup 87% of incubator graduates succeed!
  93. 93. WPBDC 23,500 square foot facility in Uptown Martinsville 11 Tenants 1 Virtual tenants 20 Graduates 231 jobs created
  94. 94. Questions? Robbin Hall Executive Director West Piedmont Business Development Center 22 E. Church St. Martinsville, VA 24112 276.403.5085 rhall@wpbdc.org
  95. 95. 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/
  96. 96. Marketing Resources• SCORE = www.score.org• Virginia Tourism Corporation = www.vatc.org• Virginia Department of Agriculture – Virginia’s Finest Trademark = www.vdacs.virginia.gov
  97. 97. 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
  98. 98. “If you always do what you’vealways done, You will alwaysget what you’ve always got!”
  99. 99. Lets Connect: Sandy Ratliff The Virginia Department of Business Assistance 276-676-3768 sandy.ratliff@vdba.virginia.gov Online: Twitter: http://twitter.com/sandyratliffFacebook: http://www.facebook.com/sandy.ratliffLinkedIn - http://www.linkedin.com/in/sandyratliffYouTube - http://www.youtube.com/user/vastartup
  100. 100. Survey CompletionsPlease take a moment to complete our survey!
  101. 101. CONTACTS• Sandy Ratliff, Virginia Department of Business Assistance = 276-676-3768 or VBIC = 866-248- 8814• Randy Rose, Virginia Tourism Corporation = 276- 322-2044• Dick Ephgrave, Longwood SBDC = 276-632-4462• Maynard Wiff, SCORE = 540-857-2834• Tommye Arnold, Wachovia Bank = 276-645-5130• Robin Hall, West Piedmont Business Development Center = 276-638-2523• Annette Stamus, Smith Mountain Lake County Chamber = 540-721-1203
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