HOW TO START AND OPERATE A SMALL BUSINESS By Dick EphgraveDirector, Longwood University Small Business Development Center, Martinsville, VA
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.
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.
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.
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.
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.
VSBDC Office Dick Ephgrave, DirectorLongwood Small Business Development Center 115 Broad Street, PO Box 709 Martinsville, VA 24114 Phone: 276-632-4462 E-mail: firstname.lastname@example.org
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 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
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.
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.
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
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.
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.
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)
Business Licensing and Registration State, county, city, and town may have requirements. Why? – Taxation – Zoning – Regulate certain activities
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!
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.
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.
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”!
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.
SCORE Roanoke Chapter Overview Office location, open 10AM-3PM M-F: 105 Franklin Rd, SW, Suite 150 Roanoke VA 24011 540-857-2834 email@example.com Call for an appointment. Mentoring sessions can take place at our office, your place of business, or another site.
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
• 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 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 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 tryingto accomplish?• What is your mission and vision?• Are you the largest, cheapest, best service, best quality?• Sales goals?MarketingPlanning
Who is your target audience? • by demographics • by geography • by needs and wants • now and in the futureMarketingPlanning
What message will move your audience?• Your brand• Your tagline/slogan/message• What do you want people to say about your business?MarketingPlanning
What vehicles do youhave to deliver the message?• Website • Social Media• E-mail • Tradeshows• Advertising • Newsletters• Public RelationsMarketingPlanning
What are your resources?• Budget/Money• Owner/Employee Skills• Friends/Family• Partnerships• Local/State/Federal Assistance• Chambers of Commerce, Business Associations, etc.MarketingPlanning
How will you measure yourmarketing performance?• Electronic Marketing Tools• Data Collection• Research Mechanisms• Surveys• Informal Questioning• Sales DataMarketingPlanning
Have a Calendar/Schedule Include: • Anticipated Ad Placement • Press Releases • Social Media Updates/Posts • Promotions • Other Scheduled StrategiesMarketingPlanning
Marketing Plans Change • Because of business growth • Because of research • Because of economic factors • Because of technology (social media) • Because there is always changeMarketingPlanning
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
Other Business ResourcesSandy Ratliff, Business Services Manager Virginia Department of Business Assistance 276-676-3768 firstname.lastname@example.org www.vdba.virginia.gov www.vastartup.org
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
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, licensingInteractive business plan available online atwww.vdba.virginia.gov or www.vastartup.org 5 Step process to a business plan
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
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: email@example.com
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
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
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 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
Services Favorable Rental Rates Mentoring Services Broad Band Internet Access Shared Resources Conference and training rooms Shared receptionist Business equipment "Virtual Incubator" Available
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!
WPBDC 23,500 square foot facility in Uptown Martinsville 11 Tenants 1 Virtual tenants 20 Graduates 231 jobs created
Questions? Robbin Hall Executive Director West Piedmont Business Development Center 22 E. Church St. Martinsville, VA 24112 276.403.5085 firstname.lastname@example.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 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’vealways done, You will alwaysget what you’ve always got!”
Lets Connect: Sandy Ratliff The Virginia Department of Business Assistance 276-676-3768 email@example.com Online: Twitter: http://twitter.com/sandyratliffFacebook: http://www.facebook.com/sandy.ratliffLinkedIn - http://www.linkedin.com/in/sandyratliffYouTube - http://www.youtube.com/user/vastartup
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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