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ROANOKE  REGIONAL ADVENTURE TOURISM WORKSHOP<br />October 19, 2010<br />
Are you sure?<br />
What Do These Entrepreneurs Have in Common?<br />Confidence?<br />Competitiveness?<br />
An Idea?<br />Drive?<br />Identified Market Need?<br />
A Plan<br />of<br />Action?<br />Willing to take Risks?<br />
Focused?<br />Goal & Objective?<br />A successful enterprise<br />
Remember as a start-up<br />your place in the food chain<br />
GET PREPARED…DO YOUR HOMEWORK OR……..<br />
Small Business in Virginia<br /><ul><li>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 wh...
Virginia is for Business Lovers<br />Virginia ranked #1 state for business by Forbes.com last four years.<br />Ranked #1 m...
Virginia Business Start-ups <br />Source: Virginia Employment Commission,Quarterly Census of Employment and Wages (QCEW)<b...
How to Start and Operate A Business<br />
Success Formula<br />= $$©<br />+ D<br />+ ECS<br />GP<br />+ GM<br />© RRSBDC 2010<br />
Will Your New Business<br />or Expansion Idea Work?<br /><ul><li>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</li></ul>Guess which one has ...
Business Success Rates<br />Writing a business plan increases<br />your chances of success by 25%.<br />© RRSBDC 2009<br />
Why do I need a Business Plan<br />Forces you to do the necessary research<br />About your business idea<br />About your b...
Why do I need a Business Plan<br />The Business Plan is:<br /> Not just for start up businesses<br /> Not just for busines...
What goes into a Business Plan<br /><ul><li>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</li></ul>* Most Important<br />© RRSBDC 2009<br />
Marketing Research – 9 Step Process<br />What is the (new) product or service you want to sell?<br />Is there a demand for...
Marketing Research – 9 Step Process<br />5.  Who is your target market? (Demographics & Psychographics)<br />How will you ...
Creating Your Financials<br />What you will need:<br /><ul><li>Income Statement Projections– 3 years
Cash Flow Projections – 3 years
Balance Sheet – 3 years
Break-Even Analysis
Start-up Expenses</li></ul>© RRSBDC 2009<br />
Steps to Openingand Operating a Business<br />© RRSBDC 2009<br />
Steps to Opening a Business<br />Determine legal entity<br />Check name availability with SCC (trademarks also)<br />Check...
Steps to Opening a Business<br />7.	Check with Dept of Professional & Occupational Regulation to see if you need any speci...
Reasons Why Businesses Fail<br /><ul><li> 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</li></li></ul><li>Financial Management<br />Use a computerized bookkeeping system<br />Separate bank accoun...
Maintaining the Entity Integrity<br />Setup before business starts<br />Setup separate bank account<br />Do not mix person...
Liability Protection Exclusions<br />Personal Guarantees – notes, leases, vendors<br />Negligence<br />Failure to pay IRS ...
Facts about Small Business Loans<br /><ul><li>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</li></li></ul><li>Financial Assistance<br />SB...
Not engaged in lending, real-estate development,
investments or speculation
Must have a sound business purpose
Good Credit  www.annualcreditreport.com
REASONABLE Equity Investment</li></li></ul><li>U.S. Small Business Administration<br /><ul><li>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)</li></li></ul><li>Roanoke Regional Small Business Development Center<br />Mission –...
How Can Our Services Benefit You<br />Through one-on-one Counseling, we can help you with…<br />Development of Business Pl...
Through one-on-one Counseling, we can help you with…<br />Technology <br />Loan Application<br />Source of Business Financ...
Local Office<br />Roanoke Regional Small<br />Business Development Center<br />210 South Jefferson Street<br />Roanoke, VA...
Growing Your Business/Marketing Strategies<br />
Tourism Business Development &<br />Marketing Assistance<br />Randy Rose<br />Development Specialist – Partnership Marketi...
<ul><li> Virginia Tourism Corporation Overview
 Tourism Business Opportunities
 Marketing Your Small Business</li></li></ul><li>19.2 billion in revenue<br />supported 210,620 jobs<br />provided $1.28 b...
Advertising<br />Customer Service & Industry Relations<br />Electronic Marketing<br />Film Office<br />Marketing & Promoti...
Planning Assistance<br />Marketing  Guidance<br />Workshops<br />Marketing/Advertising <br />	Benefits<br />Business Assis...
Wilderness Road Heritage Trail<br />Virginia Coal Heritage Trail<br />‘Round the Mountain<br />Heartwood   <br />Spearhead...
Franklin County<br />Roanoke County<br />Craig County<br />Patrick County<br />Floyd County<br />Pulaski County<br />City ...
<ul><li>Marketing Leverage Program</li></ul>Funding<br />
Canoe Rentals and Tours <br />Fishing and Boating Rentals <br />Bicycle Tours and Outfitters <br />Adventure/Nature Camps<...
Wineries/Vineyards<br />Corn Maze <br />Pumpkin Patch <br />Pick Your Own <br />Animal Parks<br />Herb/Flower Farms <br />...
<ul><li>Bed & Breakfast Inns
Cabins and Cottages
Lodges
Campgrounds
Horse Campgrounds
Horse Stables/Barns
House Boats
Green Lodging</li></ul>Unique Lodging Opportunities <br />
<ul><li>Music/Theater Venues
Artisan  Studios/Galleries
Heritage Sites
Tea Rooms
Breweries/Pubs
Eclectic Restaurants
Shopping
Spas </li></ul>Attractions<br />
Caterers			Cleaning Services <br />Food/Drink Distributors 	Electricians<br />Restaurant Equipment	Plumbers <br />Security...
Visit www.vatc.org & www.virginia.org <br />Sign up for the Dashboard e-newsletter<br />Attend at VTC Help Desk event<br /...
Now, <br />let’s talk about marketing your small business<br />
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  1. 1. ROANOKE REGIONAL ADVENTURE TOURISM WORKSHOP<br />October 19, 2010<br />
  2. 2. Are you sure?<br />
  3. 3. What Do These Entrepreneurs Have in Common?<br />Confidence?<br />Competitiveness?<br />
  4. 4. An Idea?<br />Drive?<br />Identified Market Need?<br />
  5. 5. A Plan<br />of<br />Action?<br />Willing to take Risks?<br />
  6. 6. Focused?<br />Goal & Objective?<br />A successful enterprise<br />
  7. 7.
  8. 8. Remember as a start-up<br />your place in the food chain<br />
  9. 9. GET PREPARED…DO YOUR HOMEWORK OR……..<br />
  10. 10. Small Business in Virginia<br /><ul><li>Small Businesses constitute 97% of all Virginia businesses.
  11. 11. Small Businesses create over 75% of all new jobs.  
  12. 12. Small Businesses account for half of the Commonwealth of Virginia’s contribution to the U.S. Gross Domestic Product - a whopping $160 billion. </li></ul>Virginia is for Business Lovers<br />
  13. 13. Virginia is for Business Lovers<br />Virginia ranked #1 state for business by Forbes.com last four years.<br />Ranked #1 most business friendly state by Pollina Corporate Real Estate, Inc. last two years.<br />Named #1 best states for business by CNBC.<br />Virginia among top 10 list of states friendly to small business.<br />
  14. 14.
  15. 15. Virginia Business Start-ups <br />Source: Virginia Employment Commission,Quarterly Census of Employment and Wages (QCEW)<br />
  16. 16. How to Start and Operate A Business<br />
  17. 17. Success Formula<br />= $$©<br />+ D<br />+ ECS<br />GP<br />+ GM<br />© RRSBDC 2010<br />
  18. 18. Will Your New Business<br />or Expansion Idea Work?<br /><ul><li>Write a business plan and see if the idea makes sense
  19. 19. Open up a business or start a new product or service and hope you made the correct decision</li></ul>Guess which one has thegreatest chance of success?<br />© RRSBDC 2009<br />
  20. 20. Business Success Rates<br />Writing a business plan increases<br />your chances of success by 25%.<br />© RRSBDC 2009<br />
  21. 21. Why do I need a Business Plan<br />Forces you to do the necessary research<br />About your business idea<br />About your business expansion idea<br />Gives you a written plan of action for future<br />Required for investorsor bank<br />© RRSBDC 2009<br />
  22. 22. Why do I need a Business Plan<br />The Business Plan is:<br /> Not just for start up businesses<br /> Not just for businesses looking for capital<br /> Every business should do one every year<br />© RRSBDC 2009<br />
  23. 23. What goes into a Business Plan<br /><ul><li>Executive Summary *
  24. 24. Description of Business
  25. 25. Definition of Products and/or Services
  26. 26. Market Analysis and Marketing Plan *
  27. 27. Organization and Management Team
  28. 28. Operational Plan
  29. 29. Financial Statements and Projections *
  30. 30. Appendix</li></ul>* Most Important<br />© RRSBDC 2009<br />
  31. 31. Marketing Research – 9 Step Process<br />What is the (new) product or service you want to sell?<br />Is there a demand for this product?<br />What is the state of the industry? (product life cycle)<br />Who are your competitors? (do a competitive analysis also called SWOT)<br />© RRSBDC 2009<br />
  32. 32. Marketing Research – 9 Step Process<br />5. Who is your target market? (Demographics & Psychographics)<br />How will you position yourself in the market?<br />How will you price your product?<br />Where will you do business?<br />How will you reach your market? (specific marketing, advertising & marketing calendar)<br />© RRSBDC 2009<br />
  33. 33. Creating Your Financials<br />What you will need:<br /><ul><li>Income Statement Projections– 3 years
  34. 34. Cash Flow Projections – 3 years
  35. 35. Balance Sheet – 3 years
  36. 36. Break-Even Analysis
  37. 37. Start-up Expenses</li></ul>© RRSBDC 2009<br />
  38. 38. Steps to Openingand Operating a Business<br />© RRSBDC 2009<br />
  39. 39. Steps to Opening a Business<br />Determine legal entity<br />Check name availability with SCC (trademarks also)<br />Check to see if a URL is available (www.internic.net – click on whois)<br />Register with the SCC your corporation, LLC or/and fictitious name (www.scc.virginia.gov)<br />Get your FEIN with the IRS (www.irs.gov)<br />Register with VA Dept of Tax and V.E.C. (www.tax.virginia.gov)<br />© RRSBDC 2009<br />
  40. 40. Steps to Opening a Business<br />7. Check with Dept of Professional & Occupational Regulation to see if you need any special permits. (www.dpor.virginia.gov)<br />8. Obtain Business License from local Commissioner of Revenue<br />Other permits/licenses – ABC, Health Dept, Meals/Lodging/Entertainment taxes<br />Local fictitious name registration with courthouse<br />Insurance – liability, workman’s comp, etc.<br />Trademarks, Service Marks, Patents, Copyrights<br />MAKE TONS OF MONEY<br />© RRSBDC 2009<br />
  41. 41. Reasons Why Businesses Fail<br /><ul><li> Insufficient Capital: lack of cash flow
  42. 42. Inexperience in the business
  43. 43. Poor customer service
  44. 44. Lack of a business, financial and marketing plan
  45. 45. Ignorance of the market and competition
  46. 46. Failure to adjust to the market
  47. 47. Change in economic conditions
  48. 48. Failure to properly maintain records
  49. 49. Poor location</li></li></ul><li>Financial Management<br />Use a computerized bookkeeping system<br />Separate bank account for trust fund taxes<br />Run Financial Statements monthly<br />Balance Sheets and Profit & Loss<br />Analyze statements each month<br />Compare period to period – benchmark to other businesses<br />Look out for major discrepancies<br />Check your pricing & competitors regularly<br />Don’t let one person do all accounting<br />Send bank statement to home – leave unopened<br />Make tax deposits & tax filings on time<br />Estimated tax payments<br />Don’t try to do it all yourself<br />
  50. 50. Maintaining the Entity Integrity<br />Setup before business starts<br />Setup separate bank account<br />Do not mix personal & business funds or bills<br />Sign all contracts & leases in entity name<br />Sign everything as owner/president etc.<br />Put insurance in company name<br />If corporation have annual meeting and maintain minute book<br />© RRSBDC 2009<br />Choosing the Right Legal Entity<br />
  51. 51. Liability Protection Exclusions<br />Personal Guarantees – notes, leases, vendors<br />Negligence<br />Failure to pay IRS payroll taxes<br />Fraud<br />© RRSBDC 2009<br />Choosing the Right Legal Entity<br />
  52. 52. Facts about Small Business Loans<br /><ul><li>You will need good credit
  53. 53. There is no such thing as 100% Financing
  54. 54. You will need to put in 10-40% cash
  55. 55. The bank will require a personal guarantee
  56. 56. Startup businesses are hard to finance
  57. 57. The process is not quick
  58. 58. Most business grants are myths
  59. 59. The SBA does not lend money
  60. 60. 75% of all new businesses starts with capital from owner/friends/relatives</li></li></ul><li>Financial Assistance<br />SBA General Eligibility Criteria<br /><ul><li>Must be for profit
  61. 61. Not engaged in lending, real-estate development,
  62. 62. investments or speculation
  63. 63. Must have a sound business purpose
  64. 64. Good Credit www.annualcreditreport.com
  65. 65. REASONABLE Equity Investment</li></li></ul><li>U.S. Small Business Administration<br /><ul><li>7(a) Loan Program
  66. 66. Express Loans – up to $350,000
  67. 67. Community Express Loans – Borrego Springs Bank. www.borregospringsbank.com up to $50K
  68. 68. Patriot Express – up to $500,000
  69. 69. Term Loans – up to $2,000,000
  70. 70. 504 Loan Program
  71. 71. Real Estate and Fixed Assets
  72. 72. Micro-Loan Program
  73. 73. Up to $35,000
  74. 74. Handled locally by Business Seed (TAP)</li></li></ul><li>Roanoke Regional Small Business Development Center<br />Mission – Provide no-cost professional business counseling, training & information resources to help start, grow and strengthen Virginia Businesses.<br />Staffed by paid full-time Professional Counselors<br />© RRSBDC 2009<br />How Can Our Services Benefit You<br />
  75. 75. How Can Our Services Benefit You<br />Through one-on-one Counseling, we can help you with…<br />Development of Business Plan<br />Market Research<br />Development of Marketing Plan<br />Workshops<br />Government Procurement<br />© RRSBDC 2009<br />
  76. 76. Through one-on-one Counseling, we can help you with…<br />Technology <br />Loan Application<br />Source of Business Financing<br />Financial Analysis<br />Permits, Licenses and Taxes<br />Counseling is at No Cost<br />© RRSBDC 2009<br />How Can Our Services Benefit You<br />
  77. 77. Local Office<br />Roanoke Regional Small<br />Business Development Center<br />210 South Jefferson Street<br />Roanoke, VA 24011<br />(located inside the Roanoke Regional<br />Chamber of Commerce building)<br />540-983-0717<br />www.rrsbdc.org<br />
  78. 78. Growing Your Business/Marketing Strategies<br />
  79. 79. Tourism Business Development &<br />Marketing Assistance<br />Randy Rose<br />Development Specialist – Partnership Marketing<br />Virginia Tourism Corporation<br />rrose@virginia.org<br />276-322-2044<br />www.vatc.org (industry)<br />www.virginia.org (consumer)<br />
  80. 80. <ul><li> Virginia Tourism Corporation Overview
  81. 81. Tourism Business Opportunities
  82. 82. Marketing Your Small Business</li></li></ul><li>19.2 billion in revenue<br />supported 210,620 jobs<br />provided $1.28 billion in <br /> state and local tax revenue <br />Impact of Tourism in VA - 2008<br />
  83. 83.
  84. 84. Advertising<br />Customer Service & Industry Relations<br />Electronic Marketing<br />Film Office<br />Marketing & Promotion<br />Public Relations<br />Research<br />Tourism Development<br />Others<br />Virginia Tourism Corp. Services<br />
  85. 85.
  86. 86. Planning Assistance<br />Marketing Guidance<br />Workshops<br />Marketing/Advertising <br /> Benefits<br />Business Assistance<br />
  87. 87. Wilderness Road Heritage Trail<br />Virginia Coal Heritage Trail<br />‘Round the Mountain<br />Heartwood <br />Spearhead Trails<br />Crooked Road<br />Fish Virginia First<br />Development & Partnership Marketing <br />
  88. 88. Franklin County<br />Roanoke County<br />Craig County<br />Patrick County<br />Floyd County<br />Pulaski County<br />City of Radford<br />Giles County<br />Tazewell County<br /> Carroll County<br />Locality Tourism Planning <br />
  89. 89. <ul><li>Marketing Leverage Program</li></ul>Funding<br />
  90. 90. Canoe Rentals and Tours <br />Fishing and Boating Rentals <br />Bicycle Tours and Outfitters <br />Adventure/Nature Camps<br />Tourism Business Opportunities <br />
  91. 91. Wineries/Vineyards<br />Corn Maze <br />Pumpkin Patch <br />Pick Your Own <br />Animal Parks<br />Herb/Flower Farms <br />Christmas Trees Farms<br />Agri-tourism<br />
  92. 92. <ul><li>Bed & Breakfast Inns
  93. 93. Cabins and Cottages
  94. 94. Lodges
  95. 95. Campgrounds
  96. 96. Horse Campgrounds
  97. 97. Horse Stables/Barns
  98. 98. House Boats
  99. 99. Green Lodging</li></ul>Unique Lodging Opportunities <br />
  100. 100. <ul><li>Music/Theater Venues
  101. 101. Artisan Studios/Galleries
  102. 102. Heritage Sites
  103. 103. Tea Rooms
  104. 104. Breweries/Pubs
  105. 105. Eclectic Restaurants
  106. 106. Shopping
  107. 107. Spas </li></ul>Attractions<br />
  108. 108. Caterers Cleaning Services <br />Food/Drink Distributors Electricians<br />Restaurant Equipment Plumbers <br />Security Systems Pool Maintenance<br />Convenient Stores Lawn Care <br />Web Site Designers Auto Repair<br />Ad Agencies Events Planners<br />Travel Agencies Florists<br />Motorcoach Companies Linen Services <br />Car Rental Offices<br />Supporting Businesses <br />
  109. 109. Visit www.vatc.org & www.virginia.org <br />Sign up for the Dashboard e-newsletter<br />Attend at VTC Help Desk event<br />Establish relationships with all VTC divisions – tap into our services (i.e. marketing, advertising, research, etc.)<br />Learn More About VTC Services<br />
  110. 110. Now, <br />let’s talk about marketing your small business<br />
  111. 111. Can you answer thesetwo questions?<br />What is Marketing?<br />What is the difference between Marketing and Advertising?<br />
  112. 112. 6 Questions You Should Answer<br />What are you trying to accomplish?<br />Who is your target audience?<br />What message will move your audience?<br />What vehicles do you have to deliver the message?<br />What are your resources?<br />How do you measure your performance/success?<br />Marketing Plan<br />
  113. 113. What are you trying to accomplish?<br />What is your mission and vision?<br />Are you the largest, cheapest, best<br /> service, best quality?<br />Sales goals?<br />Marketing Planning<br />
  114. 114. Who is your target audience?<br />by demographics<br />by geography<br />by needs and wants<br />now and in the future<br />Marketing Planning<br />
  115. 115. What message will move your audience?<br />Your brand<br />Your tagline/slogan/message<br />What do you want people to say <br /> about your business?<br />Marketing Planning<br />
  116. 116. What vehicles do you have to deliver the message?<br />Website <br />E-mail<br />Advertising<br />Public Relations<br />Social Media<br />Tradeshows<br />Newsletters<br />Marketing Planning<br />
  117. 117. What are your resources?<br />Budget/Money<br />Owner/Employee Skills <br />Friends/Family<br />Partnerships<br />Local/State/Federal Assistance<br />Chambers of Commerce, Business Associations, etc.<br />Marketing Planning<br />
  118. 118. How will you measure your marketing performance?<br />Electronic Marketing Tools<br />Data Collection<br />Research Mechanisms<br />Surveys<br />Informal Questioning<br />Sales Data<br />Marketing Planning<br />
  119. 119. Have a Calendar/Schedule<br />Include:<br />Anticipated Ad Placement<br />Press Releases<br />Social Media Updates/Posts<br />Promotions<br />Other Scheduled Strategies<br />Marketing Planning<br />
  120. 120. Marketing Plans Change <br />Because of business growth<br />Because of research<br />Because of economic factors<br />Because of technology (social media)<br />Because there is always change <br />Marketing Planning<br />
  121. 121. Virginia’s Recent Ad Campaign <br />
  122. 122. Traditional Methods<br /><ul><li>Direct Mail
  123. 123. Sales/Promotions
  124. 124. Referrals
  125. 125. Phone Calls</li></ul>Marketing Tips<br />
  126. 126. Branding (it’s not just a logo)<br />Marketing Tips<br />
  127. 127. Customer Service<br /><ul><li>Train and Empower Staff
  128. 128. Gauge Performance
  129. 129. Have Customer Service Plan (Goals, Objectives)</li></ul>Marketing Tips<br />
  130. 130. Electronic Marketing<br /><ul><li>Website
  131. 131. E-mail
  132. 132. E-newsletters
  133. 133. E-ads</li></ul>Marketing Tips<br />
  134. 134. Targeting Niches & Groups By Interest <br /><ul><li> Traditional Music (Crooked Road)
  135. 135. Cultural Heritage (Coal Heritage Trail)
  136. 136. Anglers (Fish Virginia First)
  137. 137. Outdoor Enthusiasts
  138. 138. Weddings/Meetings/Group Tours</li></ul>Marketing Tips<br />
  139. 139. Public Relations<br />Marketing Tips<br />
  140. 140. <ul><li>Determine Ways to Stand Out /Be Unique
  141. 141. Be Creative
  142. 142. Have Fun!</li></ul>Marketing Tips<br />
  143. 143. Tourism Business Development &<br />Marketing Assistance<br />Kitty Barker<br />Development Specialist – Partnership Marketing<br />Virginia Tourism Corporation<br />rrose@virginia.org<br />276-322-2044<br />www.vatc.org (industry)<br />www.virginia.org (consumer)<br />
  144. 144. Financing & Managing Resources<br />
  145. 145. Helpful Hints for FinancingYour Business <br />Matthew Churchill<br />Principal Business Relationship Manager/Vice President<br />Roanoke Business Banking<br />Wachovia Bank<br />© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.<br />
  146. 146. Helpful Hint #1<br />Get Your Financial House In Order<br /><ul><li>Obtain a copy of your personal credit report.
  147. 147. Check for any inaccuracies or mistakes.
  148. 148. Make certain that all accounts are current and there are no outstanding judgments or liens.
  149. 149. If there is any derogatory information, be proactive and prepare to explain the problems and why the problem is not likely to occur again.
  150. 150. Gather personal and/or business records
  151. 151. For the past three years, including:
  152. 152. Tax returns, financial statements with schedules and attachments, and interim year-to-date financial statements.
  153. 153. Any other financial documents that might help a lender.
  154. 154. Neatly photocopy all of the documents and prepare them for your presentation. </li></ul>77<br />© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.<br />
  155. 155. Helpful Hint #2<br />Understand What Your Lender is looking for<br /><ul><li>Be specific in what you are asking for
  156. 156. Know how much you need
  157. 157. Be prepared to support all costs with estimates, invoices, or contracts
  158. 158. Never tell a lender that you want to borrow as much money as possible.
  159. 159. Primary source of repayment
  160. 160. Be able to demonstrate how you will pay back the loan
  161. 161. Debt Service Coverage = Earnings before Interest, Taxes, and Depreciation / Total Debt Service
  162. 162. Debt to Income= Debt service / Income available to service debt
  163. 163. Secondary source of repayment (back up plan)
  164. 164. Be prepared to be able to demonstrate how your lender will be paid back if income falls short
  165. 165. Be prepared to have guarantors and possible collateral</li></ul>© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.<br />78<br />
  166. 166. Helpful Hint #3<br />Recognize Your Strengths And Weaknesses <br /><ul><li>Bank underwriters are paid to identify risk
  167. 167. Business owners tend to be optimistic
  168. 168. Be prepared for scrutiny
  169. 169. Address your strengths and challenges realistically & honestly
  170. 170. Most common weaknesses lenders find are:
  171. 171. Inability to demonstrate repayment ability
  172. 172. Insufficient collateral
  173. 173. Lack of management experience
  174. 174. Insufficient cash injection
  175. 175. Poor personal credit
  176. 176. Don't get scared; just get prepared
  177. 177. Depending on the severity of any particular weakness, you can often overcome it if you are prepared with a particularly noteworthy and compensating strength.</li></ul>© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.<br />79<br />
  178. 178. Types of Deals Financed<br />Acquisition of Owner Occupied Real Estate<br />Financing available up to $9MM<br />Refinance of Existing Debt<br />Up to $2MM<br />Must cut payments by 10% or more<br />Business Acquisition<br />Individual or corporate buyers<br />Partner or Management Buy-Outs<br />Loans up to $1.75MM<br />Start Ups<br />Require 30% equity<br />80<br />© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.<br />
  179. 179. Why Wells Fargo SBA Lending<br />Largest lender in United States<br />Closed over $900MM in 2009 – three times nearest competitor<br />Experienced Lenders and Underwriters<br />Preferred SBA Lender<br />Growing while others contract<br />2010 Goal - $1.2B<br />It’s a marathon not a sprint<br />We don’t sell our loans<br />81<br />© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.<br />
  180. 180. Matthew ChurchillWachovia Bank<br />(540) 563-7675matthew.churchill@wachovia.com<br />© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.<br />
  181. 181. Other Business Resources<br />Sandy Ratliff, Business Services Manager<br />Virginia Department of Business Assistance<br />276-676-3768<br />sandy.ratliff@vdba.virginia.gov<br />www.vdba.virginia.gov<br />www.vastartup.org<br />
  182. 182. The Virginia Department of Business Assistance<br />VDBA supports economic development in the Commonwealth by working with new and existing businesses to provide business and economic development communities with:<br />workforce incentives<br />financing<br />business information and counseling<br />state procurement assistance<br />educational opportunities <br />www.vdba.virginia.gov<br />
  183. 183. Formula for Success<br /><ul><li>Critical information for decision making
  184. 184. Well trained and plentiful workforce
  185. 185. Appropriate capital structure</li></ul>Ask VBIC = 866-248-8814<br />
  186. 186. Business Information Services<br />To help businesses get started and to grow.<br />Formation Assistance <br /><ul><li> Virginia Business Information Center (VBIC) 1-866-248-8814
  187. 187. Bridges the 26 state agencies, over 110 regulatory programs and over 300 forms that may touch a Virginia business
  188. 188. Virginia Central Business Portal (www.business.virginia.gov)
  189. 189. Covers registration, taxation, licensing
  190. 190. Interactive business plan available online at www.vdba.virginia.gov or www.vastartup.org
  191. 191. 5 Step process to a business plan</li></li></ul><li>Virginia’sBusiness One Stop<br />Are you starting a business?<br />Virginia’s Business One Stop system can help you determine your business formation requirements and can pre-fill your business registration forms.<br />Winner of the 2009 Governor's Technology Awards<br /><ul><li>Visit http://www.virginia.gov/bos/index.html to access the Business One Stop System.
  192. 192. Create a Business One Stop account.
  193. 193. Answer a few brief questions about your business.
  194. 194. Receive a list of action items and pre-filled business registration forms.</li></ul>Questions? Contact the Virginia Business Information Center<br />1-866-248-8814 (804) 371-0438 vbic@vdba.virginia.gov<br />
  195. 195. Ask VBIC = 866-248-8814<br />
  196. 196. Growing Your $ales - State<br /><ul><li>Governor’s Executive Order 33
  197. 197. $5 billion market
  198. 198. Access to buyers from 171 state agencies
  199. 199. Additional $5 billion from local governments
  200. 200. 575 localities using eVA system.
  201. 201. Small Business Goal – 40%
  202. 202. Over 44,994 registered suppliers
  203. 203. Over 13,065 participating buyers</li></ul>Ask VBIC = 866-248-8814<br />
  204. 204. Examples of Purchasing:<br />Instant Ice Tea<br />01/01/2009 – 12/31/2009 = $23,455.71 - 46 PO’s<br />Novelty – Specialty Advertising Products<br />01/01/2009 – 12/31/2009 = $152,905.34 - 152 PO’s<br />Grounds Maintenance: Mowing, Edging, Plant (Not Tree) Trimming, etc. <br />01/01/2009 – 12/31/2009 = $14,566,567.94 - 1150 PO’s<br />Tires and Tubes, Passenger Vehicles<br />01/01/2009 – 12/31/2009 = $72,103.64 - 7 PO’s<br />Concessions, Catering, Vending: Mobile and Stationary<br />01/01/2009 – 12/31/2009 = $6,187,712.31- 11,757 PO’s<br />Building Maintenance<br />01/01/2009 – 12/31/2009 = $90,611,650.85 - 9285 PO’s<br />Earth Moving Equipment Rental<br />01/01/2009 – 12/31/2009 = $8,573,333.24 -621 PO’s<br />Cleaning Services, Steam & Pressure<br />01/01/2009 – 12/31/2009 = $3,358,694.55- 303 PO’s<br />
  205. 205. One–on-One Counseling Sessions<br />Need Based:<br />Accessing New Markets/Sales Growth<br />Tailored Sales Development Solutions<br />Financing Resources<br />Social Media for Your Business<br />To schedule an appointment, contact:<br />Sandy Ratliff, Business Services Manager<br />276-676-3768<br />Email: sandy.ratliff@vdba.virginia.gov<br />
  206. 206. Entrepreneur Workshops<br /><ul><li>Launched October 2006
  207. 207. Partnership with Service Providers and localities
  208. 208. Provide information on available resources to start and grow a business
  209. 209. Statewide Program
  210. 210. Free – ½ Day Session
  211. 211. Over 8,000 reached
  212. 212. www.vastartup.org</li></li></ul><li>Growing Your $ales Workshops<br /><ul><li>Business Sales Growth Program
  213. 213. Market Research and Expansion
  214. 214. Financing
  215. 215. Growth Management
  216. 216. Partnered events for SWAM certification and eVA registration
  217. 217. Networking with businesses and government buyers</li></li></ul><li>Social Media WorkshopsYou-Link-Twit-Face<br />Upcoming Events:<br /><ul><li>November 1 - Floyd
  218. 218. November 16 – Bristol
  219. 219. March 10, 2011 = Christiansburg</li></li></ul><li>Virginia Jobs Investment Program<br /><ul><li>Workforce recruiting and training
  220. 220. Create minimum 25 net new jobs within 12 months and capital investment of at least $1,000,000
  221. 221. Minimum entry-level wage of $10.00/hr required. Only full-time jobs are eligible.
  222. 222. Small business workforce recruiting and training
  223. 223. 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
  224. 224. Minimum entry-level wage of $10.00/hr required. Only full-time jobs are eligible.
  225. 225. Retraining
  226. 226. Small businesses that are retooling and installing new technologies
  227. 227. Company must retrain minimum 10 full-time employees. </li></li></ul><li>Financing Programs<br />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. <br />Indirect Lending: We provide loan guarantees or other types of credit enhancements to commercial banks in order to increase access to capital for businesses. <br />Conduit Financing: We are the statewide conduit issuer of tax-exempt industrial development bonds for manufacturers and 501c3 organizations.<br />
  228. 228. OTHER AVAILABLE RESOURCES<br /><ul><li>Virginia Department of Labor – Apprenticeship Program
  229. 229. Combination of on-the-job training and classroom instruction.
  230. 230. Advantage of skilled workforce and reduced turnover.
  231. 231. http://www.doli.virginia.gov
  232. 232. Virginia Department of Agriculture & Consumer Affairs
  233. 233. Virginia’s Finest Trademark = Marketing program that promotes foods and foods products grown in Virginia.
  234. 234. Facilitates expansion of agricultural businesses.</li></ul>http://www.vdacs.virginia.gov<br />
  235. 235. OTHER AVAILABLE RESOURCES<br />Turn to SCORE Counselors for Small Business Advice<br />Visit the SCORE Small Business Web Site: <br />www.score.org<br />How-to Advice & Info<br /> Ask SCORE for business advice online<br /> Find SCORE to locate any chapter in the country<br /> 2,000 pages of content for small business owners<br /> How-to articles offer practical business tips<br />
  236. 236. OTHER AVAILABLE RESOURCES<br />Virginia Business Incubator<br /><ul><li>7 Available in Southwest Virginia
  237. 237. 29 Within Commonwealth
  238. 238. Business Incubator Benefits
  239. 239. Facility designed to assist businesses to become established and sustainable
  240. 240. Benefits
  241. 241. Shared premises and business services
  242. 242. Business advice and mentoring assistance
  243. 243. More details - http://www.vbia.org/</li></li></ul><li>Business Incubator<br />Light Manufacturing Space<br />Commercial Kitchen<br />Shared Amenities<br />
  244. 244. OTHER AVAILABLE RESOURCES<br />Virginia Economic Bridge, Inc.<br /><ul><li>Non-profit organization to promote the economic vitality of SWVA and the Commonwealth.
  245. 245. Virginia’s Business Pipeline – Online searchable database of more than 24,000 Virginia based companies, business to business marketing & RFP resource</li></ul> www.VirginiaBusiness.org<br /><ul><li>Virginia’s Linked Workforce Showcase – Designed to create business partnerships yielding contracts between SWVA and Northern Virginia by connecting companies in specific industry sectors. </li></ul> www.LinkedWorkforceShowcase.org <br />
  246. 246. Starting and Growing a Business<br />Business Formation Assistance<br />Small Business Development Center Network = www.virginiasbdc.org<br />SCORE = www.score.org<br />Virginia Business Information Center = 866-248-8814<br />Virginia Central Business Portal = www.business.virginia.gov<br />Virginia Business Incubator Association = http://www.vbia.org/<br />
  247. 247. Marketing Resources<br />SCORE = www.score.org<br />Virginia Tourism Corporation = www.vatc.org<br />Virginia Economic Bridge, Inc. = www.virginiabusiness.org<br />Virginia Department of Agriculture – Virginia’s Finest Trademark = www.vdacs.virginia.gov<br />
  248. 248. Financing Resources<br />Virginia Small Business Financing Authority = www.vdba.virginia.gov<br />Small Business Development Center = www.virginiasbdc.org<br />Small Business Administration = www.sba.gov<br />Local Economic Development Office or Chamber of Commerce<br />
  249. 249. “If you always do what you’ve always done, You will always get what you’ve always got!”<br />
  250. 250. Lets Connect:<br />Sandy Ratliff<br />The Virginia Department of Business Assistance<br />276-676-3768<br />sandy.ratliff@vdba.virginia.gov<br />Online:<br />Twitter: http://twitter.com/sandyratliffFacebook: http://www.facebook.com/sandy.ratliff<br />LinkedIn - http://www.linkedin.com/in/sandyratliff<br />YouTube - http://www.youtube.com/user/vastartup<br />
  251. 251. Survey Completions<br />Please take a moment to complete our survey!<br />
  252. 252.
  253. 253. Help is Available……Just a click away……<br />
  254. 254. CONTACTS<br />Sandy Ratliff, Virginia Department of Business Assistance = 276-676-3768 or VBIC = 866-248-8814<br />Randy Rose, Virginia Tourism Corporation = 276-322-2044<br />Tom Tanner, Roanoke SBDC = 540-983-0717 <br />Matthew Churchill, Wachovia Bank = 276-563-7675<br />
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