NC SB Resource Guide


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NC SB Resource Guide

  1. 1. BUSINESS SMALL NORTH CAROLINA RESOURCE Building on SBA’s Record Year page 28 PAGE Counseling 8 PAGE Capital 15 PAGE Contracting • connect with us @
  2. 2. contents SMALL BUSINESS P R ublishing eni Publishers of Small Business Resource Advertising Phone: 863-294-2812 • 800-274-2812 Fax: 863-299-3909 • Staff President/CEO Joe Jensen 2012 NORTH CAROLINA FEATURES English Small Business Resource Advertising Nicky Harvey Martha Theriault 3 Introduction 28 Building on SBA’s Kenna Rogers 3 Administrator’s Letter Record Year Production 4 Director’s Message Diane Traylor 29 Contracting 8 Counseling Applying for Government Contracts. SBA’s Marketing Office: Getting help to start up, market and The Small Business Resource Guide is published 29 How Government Contracting under the direction of SBA’s Office of Marketing and manage your business. Works Customer Service. 8 SBA Resource Partners 30 SBA Contracting Programs 11 SBA’s Online Tools and Training 32 Getting Started in Contracting Director of Marketing 11 Reaching Underserved Paula Communities 33 Disaster Panissidi 13 Are You Right for Small Knowing the types of assistance Editorial Content Business Ownership? available for recovery. 14 Writing a Business Plan 34 Advocacy and Ombudsman Graphic Design 15 Capital Watching out for small business interests. Gary Shellehamer Financing options to start or grow your business. SBA’s participation in this publication is not an 15 SBA Business Loans 35 Additional Resources endorsement of the views, opinions, products or services of the contractor or any advertiser or other 16 What to Take to the Lender Taking care of start up logistics. participant appearing herein. All SBA programs 22 Small Business Investment 38 Business Organization: and services are extended to the public on a Company Program Choosing your Structure nondiscriminatory basis. 23 Small Business Innovation Research Program 23 Small Business Technology 39 Other Assistance Printed in the United States of America While every reasonable effort has been made Transfer Program 24 Surety Bond Guarantee 43 Lender Listing to ensure that the information contained herein was accurate as of the date of publication, the Program information is subject to change without notice. 25 SBA Loan Program Chart Neither the contractor, the federal government, or agents thereof shall be held liable for any damages arising from the use of or reliance on the information contained in this publication. SBA Publication # MCS-0018 “Everything you need to know This publication is provided under SBA Contract # SBAHQ11C0005. about setting up, marketing and managing the revenue of your business. ”2 — Small Business Resource NORTH CAROLINA Visit us online:
  3. 3. The U.S. Small Business Administration F R O M T HE ADM I NI STRATOR 2011 was a record year for As our economy continues to strengthen in the SBA. We helped over 2012, the Obama Administration is focused 60,000 small businesses on making sure that entrepreneurs and small secure over $30 billion in business owners have the tools they need lending through our flagship to grow and create jobs. After all, half of 7(a) and 504 programs – an working Americans either own or work for a all-time record. We also small business, and two of every three new worked with private-sector jobs are created by small businesses. partners to drive a recordamount of capital ($2.8 billion) into the Finally, check out our online tools. Forhands of over 1,000 high-growth businesses example, at you canthrough Small Business Investment type in your zip code and a few details aboutCompanies. your business, and you’ll immediately get connected to SBA resources in your localAs we entered 2012, the President signed area.a six-year extension of the Small BusinessInnovation Research program which America’s small businesses are gearing upsupports small RD companies that drive to lead our nation’s economic recovery andinnovation and game-changing technologies create the jobs we need now. Please feel freeto keep America on the cutting edge. We to contact your local SBA office if you havealso continue to streamline the paperwork any questions. We stand ready to help inon SBA loans in order to help more lending whatever way we and their small-business customers. Sincerely,You can check out all of these programs inthis guide. Also, be sure to take a look at allof the SBA’s 2011 accomplishments in thelast few pages. Karen G. Mills Administrator Small Business Administration About the SBA Your Small Business Resource Every year, the U.S. Small Business Administration and its nationwide • Contracting network of partners help millions of potential and current small • Disaster Assistance business owners start, grow and succeed. • Advocacy and the Ombudsman Resources and programs targeting small businesses provide an Visit SBA online at for 24/7 access to small business advantage necessary to help small businesses compete effectively in news, information and training for entrepreneurs. the marketplace and strengthen the overall U.S. economy. All SBA programs and services are provided on a nondiscriminatory SBA offers help in the following areas: basis. • Counseling • CapitalVisit us online: NORTH CAROLINA Small Business Resource — 3
  4. 4. Message From The District Director Rules For Success SUCCESS STORY Mind Your Business, Inc. (MYB) Karen Caruso Owner/CEO Like today’s small businesses, large corporate success stories started with only an entrepreneur and a dream. TKaren Caruso, owner and CEO of Mind YourBusiness, Inc. (MYB) in Hendersonville, NChas been named the 2011 North Carolina he North Carolina Small SBA’s Government ContractingSmall Business Person of the Year. Karen’s Business Resource Guide Business Development Programentrepreneurial spirit was ignited in 1995 while is designed help you with creates an opportunity for smallwatching an Oprah Winfrey show with herdaughter on abusive child care providers. She your business development businesses owned by socially anddecided at that moment what her future would needs by reaching our economically disadvantaged individualslook like. partners and the SBA team. Whether it to grow through the education of theKaren’s early career was in security, knowing is taking the first step to start a business procurement process. SBA also plays ahow to conduct background checks. Seeing a gap or expanding to the next level, the Small major role in the government’s disasterin the market, she focused on applicant screening Business and Technology Development relief efforts by making low-interestservices to the childcare industry. In 1996, Mind Centers (SBTDC), Women’s Business recovery loans to both homeowners andYour Business, Inc. (MYB) was launched in thebasement of her New Jersey home with two Centers (WBC) and SCORE, both businesses.employees and $2,500. partially funded by the SBA, provide free counseling and technical assistance. Also, Today, small businesses are moreIn a field predominantly led by men and largecorporations, MYB faced challenges entering the North Carolina Community College important than ever. Facingthe marketplace. To combat these obstacles, system has a number of Small Business unprecedented economic challenges,she turned to SBA sponsored mentors. She has Centers that provide training and one-on- entrepreneurs with a creative, resilient,taken classes and received counseling through one counseling with your business. and innovative spirit, are expected toSCORE and the North Carolina Small Business Technology Center (SBTDC). lead North Carolina’s vital recovery. As the nation’s largest single financial Accessing these resources on theMYB now employs 14 people and owns and backer of small businesses, SBA following pages can help you make theoperates a 3,000 square foot facility in themountains of Western North Carolina. MYB guaranteed loans are made by SBA right connections to be successful. Inposted record profits in 2009 and in 2010. lending specialists in our North Carolina addition, visit our website banks, certified development companies nc or call to 1-800-U-ASK-SBA (1-800-Annice Brown and Clark Fields at the SBTDC have and lenders located throughout the 827-5722).worked with Karen to explore innovative waysto grow. Two recent examples include adding nation. To help prepare for a mutuallydrug testing to their services and creating two beneficial banking experience, SBTDC, Sincerely,proprietary software programs to help clients with WBC and SCORE partners can evaluatevisitor and fleet management screening. Withresearch and development help from Western your financing options, review a proposedCarolina University, they brought these products business acquisition or a help with a fixedto market, creating new customer opportunities. In asset purchase.November 2010, MYB was approved for a $25,000SBA Express loan, under the Small Business Jobs Lynn DouthettAct, through First Citizens’ Bank to market the In addition to guaranteeing loans,visitor management software. learn how government contracting District Director of may add value to your business. SBA’s North Carolina District Office Facing challenges in her local community hasled to Karen’s recognition as a leader for theadvancement of women by the Hendersonvilleand Asheville Chambers of Commerce. Karen’ssupports organizations such as United Way,The Arby’s Foundation for the Boys and GirlsClubs, and Big Brothers and Big Sisters of SouthCarolina through donations, volunteer work, andsponsorships.4 — Small Business Resource NORTH CAROLINA Visit us online:
  5. 5. The SBA helps business owners grow and expand Doing Business in North Carolina their businesses every day.THE NORTH CAROLINA DISTRICT OFFICE Free counseling, advice and informationThe North Carolina District Office is on starting, better operating or expandingresponsible for the delivery of SBA’s a small business through SCORE, Small We Welcome Yourmany programs and services. The District Business Technology Development QuestionsDirector is Lynn Douthett. The District Centers (SBTDC) and Women’s BusinessOffice is located at 6302 Fairview Road, Centers (WBC). They also conduct For extra copies of this publication orSuite 300, Charlotte, NC. Office hours training events throughout the district - questions please contact:are from 8:00 AM until 4:30 PM, Monday some require a nominal registration fee.through Friday. North Carolina District Office Assistance to businesses owned and 6302 Fairview Road, Suite 300Last fiscal year, ending September 30, controlled by socially and economically Charlotte, NC 282102011, North Carolina District Office disadvantaged individuals through theapproved 1,244 SBA loans for more than Business Development Program. Tel: 704-344-6563 Fax: 704-344-6769$479 million available to small businesses. SBA Answer Desk: 800-827-5722Our resource partners counseled and/ A Women’s Business Ownershipor trained over 45,309 entrepreneurs. Representative is available to assist Website: accomplishments have had a major women business owners. Please contactimpact on the local economy and in April Gonzalez at 704-344-6811 or e-mail:creating jobs. A Veterans Affairs Representative isCONTACTING THE NORTH CAROLINA available to assist veterans. Please contactDISTRICT OFFICE April Gonzalez at 704-344-6811 or e-mail:For program and service information, contact the Marketing Divisionat 704-344-6563. For information on SBA has additional field offices in thefinancing, contact the Financing Division following areas:at 704-344-6810. Mike Arriola, Asheville, NCSERVICES AVAILABLE 828-225-1844Financial assistance for new or existing Ivan Hankins, Cary, NCbusinesses through guaranteed loans 919-335-1004made by area bank and non-bank Don Spry, Wilmington, NClenders. 910-815-3188Visit us online: NORTH CAROLINA Small Business Resource — 5
  6. 6. The U.S. Small Business Administration MESSAGES Message From The Message From The Executive Director North Carolina State of Small Business Director and Technology NC SCORE District #460 Development Center (SBTDC) S CORE is proud to be part of the North Carolina SBA Resource Guide. This guide contains many resources that can be of assistance to new entrepreneurs and existing small business owners. SCORE is a nonprofit association dedicated to the formation, growth and continuing T success of small businesses nationwide. SCORE volunteers are he SBTDC, a business advisory service of The working and retired executives and business owners who donate University of North Carolina System, is now in its their time and expertise to provide free and confidential business 28th year as a leading resource partner of the U.S. counseling and workshops. Small Business Administration in North Carolina. SBTDC staff provides in-depth management SCORE is a resource partner with the U.S. Small Business counseling, educational programs, technical assistance Administration and has 15 Chapters with 445 experienced services, and other resources to meet the needs of existing counselors located throughout North Carolina. SCORE chapters businesses and new business start-ups. Among these is help are proud to have provided counseling to 7451 business clients with securing financing - particularly SBA guaranteed loans and hosted local workshops with 9323 attendees in Fiscal Year and longer-term SBA 504 loans for buildings and other major 2010-11. fixed assets. SBTDC services are provided through 18 offices across the state, and are focused on making North Carolina’s SCORE offers counseling and assistance to small businesses that businesses more competitive. are starting, growing or facing challenges. Please feel free to contact the SCORE chapter nearest you. A list of our chapters The North Carolina SBA Resource Guide is a great tool for can be found in this guide. Visit our website at for small business owners and those planning to start a business. more information about available SCORE services available from It provides both extensive business support materials and our National organization. E-Mail counseling is available thru our contact information for resources such as the SBTDC that National web site with experts from many of our chapters. can help businesses achieve greater success. As “Counselors to America’s Small Business” SCORE can provide If you are seeking assistance to improve your business both practical and technical guidance wherever and whenever it operations, or looking for help in successfully launching a is needed from counselors with years of business experience. Good new business, you can contact the SBTDC toll free at 800- luck in your business endeavors and call your nearest SCORE office 258-0862, or visit our website at for more as your first step in evaluating your business decisions. information about our services. Sincerely, Sincerely yours, Jerry Lustig Scott R. Daugherty North Carolina SCORE District #460 North Carolina State Director Executive Director of 919-460-2501 • Small Business and Technology Development Center (SBTDC) SCORE National website: North Carolina Commissioner of Small Business 800-634-0245 or 703-487-36126 — Small Business Resource NORTH CAROLINA Visit us online:
  7. 7. Visit us online: NORTH CAROLINA Small Business Resource — 7
  8. 8. COUNSELING Getting Help to Start Up, Market and Manage Your Business entrepreneurs who are just getting started or in need of a seasoned business professional as a soundingCOUNSELING board for their existing business. As members of your community, SCORE mentors understand local business licensing rules, economic conditions and important networks. SCORE can help you as they have done for more than 9 million clients by: • Matching your specific needs with a business mentor • Traveling to your place of business for an on-site evaluation • Teaming with several SCORE mentors to provide you with tailored assistance in a number of business areas Across the country, SCORE offers nearly 7,000 local business training workshops and seminars ranging in topic and scope depending on the needs of the local business community E such as offering an introduction to very year, the U.S. Small finding opportunities to sell your goods the fundamentals of a business plan, Business Administration or services to the government, and managing cash flow and marketing your and its nationwide network recovering from disaster. To find your business. For established businesses, of resource partners help local district office or SBA resource SCORE offers more in-depth training millions of potential and partner, visit in areas like customer service, hiring existing small business owners start, practices and home-based businesses. grow and succeed. Whether your target market is global SCORE For around-the-clock business advice SCORE is a national network of and information on the latest trends go or just your neighborhood, the SBA and to the SCORE website ( its resource partners can help at every over 14,000 entrepreneurs, business leaders and executives who volunteer as More than 1,500 online mentors with stage of turning your entrepreneurial over 800 business skill sets answer your mentors to America’s small businesses. dream into a thriving business. questions about starting and running a SCORE leverages decades of experience If you’re just starting out, the SBA from seasoned business professionals business. In fiscal year 2011, SCORE and its resources can help you with to help small businesses start, grow mentors served 400,000 entrepreneurs. loans and business management skills. companies and create jobs in local For information on SCORE and to get If you’re already in business, you can communities. SCORE does this by your own business mentor, visit use the SBA’s resources to help manage harnessing the passion and knowledge, go to and expand your business, obtain of individuals who have owned and or call 1-800-624-0245 for the SCORE government contracts, recover from managed their own businesses and want office nearest you. disaster, find foreign markets, and to share this “real world” expertise with Asheboro SCORE #0648 make your voice heard in the federal you. Asheboro/Randolph Chamber of Commerce government. Found in more than 370 offices and 317 E. Dixie Dr. You can access SBA information at 800 locations throughout the country, Asheboro, NC 27203 or visit one of our local SCORE provides key services – both 336-626-2626 • 336-626-7077 Fax offices for assistance. face-to-face and online – to busy SBA’S RESOURCE PARTNERS ON THE UPSIDE • You get to be your own boss. In addition to our district offices which • ard work and long hours directly benefit you, H serve every state and territory, SBA rather than increasing profits for someone else. It’s true, there are a lot of works with a variety of local resource reasons not to start your • arnings and growth potential are unlimited. E partners to meet your small business own business. But for the needs. These professionals can help • Running a business will provide endless right person, the advantages with writing a formal business plan, variety, challenge and opportunities to learn. of business ownership far locating sources of financial assistance, outweigh the risks. managing and expanding your business, 8 — Small Business Resource NORTH CAROLINA Visit us online:
  9. 9. Asheville SCORE #0137 Greensboro SCORE #0246 Upper Coastal Plains SCORE #700 Federal Bldg., Rm. 259 2007 Yanceyville St./P.O. Box 48 Braswell Memorial Library 151 Patton Ave. Greensboro, NC 27405 727 N. Grace St. Asheville, NC 28801 336-333-5399 • 336-333-5111 Fax Rocky Mount, NC 27804 828-271-4786 • 828-271-4786 Fax 252-442-1173 • 252-442-7366 Fax Western North Carolina SCORE #0242Chapel Hill SCORE #0495 Federal Bldg., Rm. 108 Wilmington SCORE #0283 Chapel Hill/Carrboro Chamber of Commerce 140 4th Ave. W. 4010 Oleander Dr. Hendersonville, NC 28792 Wilmington, NC 28403 COUNSELING 104 S. Estes Dr./P.O. Box 2897 Chapel Hill, NC 27515 828-693-8702 910-452-5395 • 910-452-5369 Fax 919-968-6894 • 919-968-6874 Fax High Point SCORE #0329Charlotte SCORE #0047 High Point Chamber of Commerce SMALL BUSINESS 6302 Fairview Rd., Ste. 300 Charlotte, NC 28210 1634 N. Main St./P.O. Box 5025 High Point, NC 27262 DEVELOPMENT CENTERS 704-344-6576 • 704-344-6769 Fax 336-882-8625 • 336-889-9499 Fax The U.S. Small Business Administration’s Small BusinessCoastal Carolina SCORE #0660 Outer Banks SCORE #0497 Development Center (SBDC) program’s 3615 Arendell St. Outer Banks Chamber of Commerce mission is to build, sustain, and Morehead City, NC 28557 101 Town Hall Dr. promote small business development 252-222-6126 • 252-222-6124 Fax Kill Devil Hills, NC 27948 and enhance local economies by 252-441-8148 • 252-441-0338 Fax creating businesses and jobs. ThisDown East SCORE #0577 is accomplished by the provision and c/o Neuse River Council of Governments Raleigh SCORE #0096 ensuing oversight of grants to colleges, 233 Middle St., Ste. 206/P.O. Box 790 Century Post Office Station universities and state governments so New Bern, NC 28563 300 Fayetteville St. Mall/P.O. Box 406 that they may provide business advice 252-633-6688 • 252-638-1819 Fax Raleigh, NC 27602 919-856-4739 • 919-856-4466 Fax and training to existing and potential small businesses.East Carolina SCORE #0693 1385 John Small Ave. Sandhills Area SCORE #0364 The Small Business Development Washington, NC 27889 10677 Hwy 15-501 Center program, vital to SBA’s 252-974-1848 • 252-946-8700 Fax Southern Pines, NC 28387 entrepreneurial outreach, has been 910-692-3926 • 910-692-0619 Fax providing service to small businessesVisit us online: NORTH CAROLINA Small Business Resource — 9
  10. 10. for more than 30 years. It is one of the largest professional small business Elizabeth City State University K.E. White Graduate Center/ECSU WOMEN’S BUSINESS CENTERS management and technical assistance 1704 Weeksville Rd./P.O. Box 874 The SBA’s Women Business Center networks in the nation. With over 900 Elizabeth City, NC 27909-7806 (WBC) program is a network of 110 locations across the country, SBDCs 252-335-3247 • 252-335-3648 Fax community-based centers which provide offer free one-on-one expert business business training, coaching, mentoring advice and low-cost training by qualified Fayetteville State University and other assistance geared toward small business professionals to existing 1200 Murchison Rd. women, particularly those who areCOUNSELING Fayetteville, NC 28302-1334 socially and economically disadvantaged. and future entrepreneurs. 910-672-1727 • 910-672-1949 Fax In addition to its core services, the WBCs are located in nearly every state SBDC program offers special focus areas and U.S. territory and are partially North Carolina AT State University funded through a cooperative agreement such as, green business technology, Nusbaum Center for Entrepreneurs disaster recovery and preparedness, with the SBA. 2007 Yanceyville St., Ste. 303 international trade assistance, veteran’s To meet the needs of women Greensboro, NC 27405 assistance, technology transfer and 336-334-7005 • 336-334-7073 Fax entrepreneurs, WBCs offer services regulatory compliance. at convenient times and locations, The program combines a unique North Carolina State University including evenings and weekends. mix of federal, state and private 5 West Hargett St., Ste. 600 WBCs are located within non-profit host sector resources to provide, in every Raleigh, NC 27601 organizations that offer a wide variety state and territory, the foundation 919-715-7272 • 919-715-7777 Fax of services in addition to the services for the economic growth of small provided by the WBC. Many of the businesses. The return on investment University of North Carolina WBCs also offer training and counseling at Chapel Hill and provide materials in different is demonstrated by the program during 1700 Martin Luther King Jr. Blvd., Ste. 115 2011: languages in order to meet the diverse Chapel Hill, NC 27599-1823 needs of the communities they serve. • Assisted more than 13,660 entrepreneurs 919-962-0389 • 919-962-3291 Fax to start new businesses – equating to 37 WBCs often deliver their services new business starts per day. through long-term training or group University of North Carolina • Provided counseling services to over at Charlotte counseling, both of which have shown to 106,000 emerging entrepreneurs and 8701 Mallard Creek Rd., Ste. 102 be effective. WBC training courses are nearly 100,000 existing businesses. Charlotte, NC 28262-9705 often free or are offered at a small fee. • Provided training services to 704-548-1090 • 704-548-9050 Fax Some centers will also offer scholarships approximately 353,000 clients. based on the client’s needs The efficacy of the SBDC program University of North Carolina While most WBCs are physically has been validated by a nationwide at Wilmington located in one designated location, a impact study. Of the clients surveyed, 1612 Military Cutoff Dr., Ste. 208 number of WBCs also provide courses more than 80 percent reported that the Wilmington, NC 28403 and counseling via the Internet, mobile business assistance they received from 910-962-3744 • 910-962-3014 Fax classrooms and satellite locations. the SBDC counselor was worthwhile. WBCs have a track record of success. Similarly, more than 50 percent reported Western Carolina University In fiscal year 2011, the WBC program that SBDC guidance was beneficial in 204 Forsyth Bldg., 2nd Fl. counseled and trained nearly 139,000 Cullowhee, NC 28723-9646 making the decision to start a business. clients, creating local economic growth 828-227-3504 • 828-227-7074 Fax More than 40 percent of long-term and vitality. In addition, WBCs helped clients, those receiving 5 hours or more WCU Sub-Center at Asheville entrepreneurs access more than $134 of counseling, reported an increase 46 Havwood St., Ste. 212 million dollars in capital, representing in sales and 38 percent reported an Asheville, NC 28801 a 400% increase from the previous year. increase in profit margins. 828-251-6025 • 828-232-5126 Fax Of the WBC clients that have received 3 For information on the SBDC or more hours of counseling, 15 percent program, visit Winston-Salem State University indicated that the services led to hiring In North Carolina, the following 301 N. Main St., Ste. 921A new staff, 34 percent indicated that offices are available to assist or visit the Winston-Salem, NC 27101 the services led to an increased profit 336-750-2030 • 336-779-7390 Fax margin, and 47 percent indicated that web site at: the services led to an increase in sales. University of North Carolina In addition, the WBC program has Appalachian State University at Pembroke 130 Poplar Grove Rd. COMtech 115 Livermore Dr./P.O. Box 1510 taken a lead in preparing women Boone, NC 28607 Pembroke, NC 28372-1510 business owners to apply for the 828-262-2492 • 828-262-2027 Fax 910-775-4000 • 910-775-4005 Fax Women-Owned Small Business (WOSB) Federal Contract program ASU Sub-Center at Hickory North Carolina Central University that authorizes contracting officers to 1990 Main Ave. S.E. School of Business Hickory, NC 28602 set aside certain federal contracts for 1801 Fayetteville St. eligible women-owned small businesses 828-345-1110 • 828-326-9117 Fax Durham, NC 27707 or economically disadvantaged women- 919-530-7386 • 919-530-7680 Fax owned small businesses. For more East Carolina University 300 E. First St., Willis Bldg. information on the program, visit Greenville, NC 27858-4353 252-737-1385 • 252-737-1382 Fax To find the nearest SBA WBC, visit 10 — Small Business Resource NORTH CAROLINA Visit us online:
  11. 11. EMERGING LEADERS • All participants were trained on becoming SBA 8(a) certified firms; Training is available anytime and anywhere — all you need is a computer(e200) INITIATIVE nearly 25 percent of respondents are currently certified as SBA 8(a) firms, with Internet access. SBA’s Emerging Leaders (e200) • More than 30 free online courses and while other participants reported aInitiative is currently hosted in 27 workshops available. focused intention on applying to the 8(a)markets across the country using a program. • Templates and samples to get yournationally demonstrated research-based • Nearly 50 percent of participating business planning underway.curriculum that supports the growth and respondents were female executives • Online, interactive assessment tools are COUNSELING and 70 percent were minority business featured and used to direct clients todevelopment of small to medium-sized executives. appropriate training.firms that have substantial potentialfor expansion and community impact. • 85 percent of responding executives Course topics include a financial were Satisfied or Very Satisfied with the primer keyed around SBA’s loan-A competitive selection process results overall training series and company executives participating in guarantee programs, a course on To find out more about this executive- exporting, and courses for veteranshigh-level training and peer-networking level training opportunity, pleasesessions led by professional instructors. and women seeking federal visit for host cities, contracting opportunities, as well as Post-training, social and economic training schedules, and selectionimpact results from responding an online library of podcasts, business criteria.executives who participated in the 2008 publications, templates and articles.– 2010 training classes indicate: Visit for these • More than half of participating SBA’S ONLINE free resources. TOOLS AND TRAINING businesses reported an increase in revenue, with an average revenue of $1,879,266. SBA’s Small Business Training • Participating businesses averaged $2 million in revenue, with new cumulative Network is a virtual campus complete financing of $7.2 million secured in 2010. with free online courses, workshops, • Nearly half of the participants secured podcasts, learning tools and business- federal, state, local and tribal contracts readiness assessments. with a cumulative total of $287 million. Key Features of the Small Business • Approximately half of the participants Training Network: have hired new workers, creating 275 new jobs in 2010. REACHING UNDERSERVED COMMUNITIES SBA also offers a number of programs Women’s Business Centers serve The center offers workshops, individualspecifically designed to meet the needs a wide variety of geographic areas, consultations, technical assistance forof the underserved communities. population densities, and economic SBA loans, microloans, and peer-to-peer environments, including urban, mentoring to address many aspects of small business ownership.WOMEN BUSINESS OWNERS suburban, and rural. Local economies vary from depressed to thriving, and Women entrepreneurs are changing range from metropolitan areas to entire Women’s Business Center of North Carolinathe face of America’s economy. In the states. Each Women’s Business Center 114 W. Parrish St., 4th Fl./P.O. Box 13311970s, women owned less than five tailors its services to the needs of its Durham, NC 27701percent of the nation’s businesses. individual community, but all offer a 919-956-8889 Today, they are majority owners variety of innovative programs, often www.ncimed.comof about a third of the nation’s small including courses in different languages. info@ncimed.combusinesses and are at least equal owners The Women’s Business Center of North They provide training in finance, Carolina was created by the N.C. Instituteof about half of all small businesses. management, and marketing, as well as of Minority Economic Development as aSBA serves women entrepreneurs access to all of the SBA’s financial and program to provide a full range of trainingnationwide through its various programs procurement assistance programs. and counseling services for aspiring andand services, some of which are designed existing women business owners in Northespecially for women. Center for Economic Empowerment Carolina. Additionally, the Center is a source The SBA’s Office of Women’s Business Development (CEED) of financial consulting, loan packaging, andOwnership (OWBO) serves as an 230 Hay St. contracting assistance for small businesses.advocate for women-owned businesses. Fayetteville, NC 28302OWBO oversees a nationwide network 910-323-3377 CENTER FOR FAITH-BASED ANDof 110 women’s business centers thatprovide business training, counseling The Center for Economic Empowerment NEIGHBORHOOD PARTNERSHIPSand mentoring geared specifically to Development (formerly known as the Faith-Based and Neighborhoodwomen, especially those who are socially Women’s Center of Fayetteville) provides Partnerships know their communities,and economically disadvantaged. The training and business plan assistance and they have earned the communitiesprogram is a public-private partnership to aspiring entrepreneurs and existing trust. Because of their credibility,with locally-based nonprofits. businesses in business start-up or expansion. they are uniquely positioned to buildVisit us online: NORTH CAROLINA Small Business Resource — 11
  12. 12. REACHING UNDERSERVED COMMUNITIES awareness of programs that encourage entrepreneurship, economic growth and low-interest-rate financing to small businesses when an owner or essential NATIVE AMERICAN BUSINESS DEVELOPMENTCOUNSELING job creation. employee is called to active duty. The SBA is committed to reaching Military Reservist Economic Injury The SBA Office of Native American out to faith-based and community Disaster Loan Program (MREIDL) Affairs (ONAA) ensures American organizations that are eligible to provides loans up to $2 million to eligible Indians, Alaska Natives and Native participate in the agency’s programs by small businesses to cover operating costs Hawaiians seeking to create, develop informing their congregants, members that cannot be met due to the loss of an and expand small businesses have and neighbors about SBA’s programs. essential employee called to active duty full access to the necessary business In particular, many faith-based and in the Reserves or National Guard. development and expansion tools community non-profit organizations Among the SBA’s unique services for available through the agency’s can provide a local financing option veterans are: an Entrepreneurship Boot entrepreneurial development, lending, for entrepreneurs by becoming SBA and contracting programs. ONAA Camp for Veterans with Disabilities in Microloan Intermediaries. An SBA provides a network of training (including partnership with 6 top U.S. universities Microloan Intermediary often acts as the online tool “Small Business (, a program a bank for entrepreneurs and small Primer: Strategies for Growth”) and to reach women veteran-entrepreneurs businesses that might otherwise be counseling services and engages in ( , and a program for numerous outreach activities, such as unable to find access to capital. Reserve Component family members tribal consultations, development and called Operation Endure and Grow distribution of educational materials, VETERANS AND RESERVISTS ( attendance and participation in BUSINESS DEVELOPMENT For more information about small business lending programs for veteran economic development events and Veterans, service-disabled veterans assisting these small businesses with business owners and Reserve or SBA programs. and Reserve and National Guard Guard members who are activated, Visit for more member entrepreneurs receive including Patriot Express, microloans, information. special consideration in all of SBA’s and Advantage loans, see the section entrepreneurial programs and resources. Cherokee Business Development Center on Access to Capital. To learn more Each year, the Office of Veterans Ginger Lynn Welch Complex about the Veterans Business Outreach Business Development (OVBD) 810 Acquoni Rd. program or find the nearest SBA VBOC, reaches thousands of veterans, Reserve Cherokee, NC 28719 visit 828-497-1666 • 828-497-1665 Fax Component members, transitioning service members and others who are – Veterans Business Outreach Center or who want to become – entrepreneurs (VBOC) and small business owners. OVBD Fayettville State University develops and distributes informational 1200 Murchison Rd., Newbold Station materials for entrepreneurship such as Fayetteville, NC 28301-4252 910-672-1107 the Veterans Business Resource Guide, VETGazette, and Getting Veterans Back to Work. In addition, there are 16 Veterans Business Outreach Centers strategically located throughout the country that provide both online and in-person training, counseling, mentoring, workshops, referrals, and more. Each of the SBA’s 68 District Offices also has a designated veteran’s business development officer. The SBA offers special assistance for small businesses owned by activated Reserve and National Guard members. Any self-employed Reserve or Guard member with an existing SBA loan can request from their SBA lender or SBA district office loan payment deferrals, interest rate reductions and other relief after they receive their activation orders. In addition, the SBA offers special 12 — Small Business Resource NORTH CAROLINA Visit us online:
  13. 13. ARE YOU RIGHT FOR SMALL BUSINESS OWNERSHIP? Most new business owners who succeed have planned for every phase own shoulders. Strong motivation will help you survive slowdowns and HOME-BASED BUSINESSES periods of burnout. Going to work used to mean of their success. Thomas Edison, the • How will the business affect traveling from home to a plant, store or great American inventor, once said, your family? The first few years of office. Today, many people do some or “Genius is 1 percent inspiration and all their work at home. business start-up can be hard on 99 percent perspiration.” That same family life. It’s important for family philosophy also applies to starting a members to know what to expect Getting Started COUNSELING business. and for you to be able to trust that Before diving headfirst into a home- First, you’ll need to generate a little they will support you during this based business, you must know why bit of perspiration deciding whether time. There also may be financial you are doing it. To succeed, your you’re the right type of person to start difficulties until the business becomes business must be based on something your own business. profitable, which could take months greater than a desire to be your or years. You may have to adjust to a own boss. You must plan and make IS ENTREPRENEURSHIP lower standard of living or put family assets at risk. improvements and adjustments along the road. FOR YOU? Once you’ve answered those Working under the same roof where There is simply no way to eliminate questions, you should consider what your family lives may not prove to be all the risks associated with starting type of business you want to start. as easy as it seems. One suggestion is a small business, but you can improve Businesses can include franchises, to set up a separate office in your home your chances of success with good at-home businesses, online businesses, to create a professional environment. planning, preparation, and insight. brick-and-mortar stores or any Ask yourself these questions: Start by evaluating your strengths combination of those. • Can I switch from home responsibilities to business work and weaknesses as a potential owner easily? and manager of a small business. Carefully consider each of the following FRANCHISING • Do I have the self-discipline to maintain schedules while at home? There are more than 3,000 business • Can I deal with the isolation of questions: • Are you a self-starter? It will be franchises. The challenge is to decide working from home? entirely up to you to develop projects, on one that both interests you and is organize your time, and follow a good investment. Many franchising Legal Requirements through on details. experts suggest that you comparison A home-based business is subject to • How well do you get along with shop by looking at multiple franchise many of the same laws and regulations different personalities? Business opportunities before deciding on the affecting other businesses. owners need to develop working one that’s right for you. Some general areas include: relationships with a variety of Some of the things you should • Zoning regulations. If your business people including customers, vendors, look at when evaluating a franchise: operates in violation of them, you staff, bankers, employees, and historical profitability, effective could be fined or shut down. professionals such as lawyers, • Product restrictions. Certain financial management and other accountants, or consultants. Can products cannot be produced in the controls, a good image, integrity and home. Most states outlaw home you deal with a demanding client, commitment, and a successful industry. an unreliable vendor, or a cranky production of fireworks, drugs, In the simplest form of franchising, poisons, explosives, sanitary or receptionist if your business interests demand it? while you own the business, its medical products and toys. Some • How good are you at making operation is governed by the terms of states also prohibit home-based decisions? Small business owners are the franchise agreement. For many, businesses from making food, drink required to make decisions constantly this is the chief benefit for franchising. or clothing. – often quickly, independently, and You are able to capitalize on a business Be sure to consult an attorney and under pressure. format, trade name, trademark and/ your local and state departments • Do you have the physical and or support system provided by the of state, labor and health to find emotional stamina to run a franchisor. But you operate as an out which laws and regulations will business? Business ownership can independent contractor with the ability affect your business. Additionally, be exciting, but it’s also a lot of work. to make a profit or sustain a loss check on registration and accounting Can you face six or seven 12–hour commensurate with your ownership. requirements needed to open your workdays every week? If you are concerned about starting home-based business. You may need • How well do you plan and a work certificate or license from the an independent business venture, then organize? Research indicates that franchising may be an option for you. state. Your business name may need poor planning is responsible for most business failures. Good organization Remember that hard work, dedication to be registered with the state. A — of financials, inventory, schedules, and sacrifice are key elements in separate business telephone and bank and production — can help you avoid the success of any business venture, account are good business practices. many pitfalls. including a franchise. Also remember, if you have • Is your drive strong enough? Visit for more employees you are responsible for Running a business can wear you information. withholding income and social- down emotionally. Some business security taxes, and for complying with owners burn out quickly from having minimum wage and employee health to carry all the responsibility for the and safety laws. success of their business on theirVisit us online: NORTH CAROLINA Small Business Resource — 13
  14. 14. WRITING A BUSINESS PLAN After you’ve thought about what type of business you want, the next step is to develop a business plan. Think of the business plan as a roadmap with milestones for the business. It begins as aCOUNSELING pre-assessment tool to determine profitability and market share, then expands as an in-business assessment tool to determine success, obtain financing and determine repayment ability, among other factors. Creating a comprehensive business plan can be a long process, and you need good advice. The SBA and its resource partners, including Small Business Development Centers, Women’s Business Centers, Veterans Business Outreach Centers, and SCORE, have the expertise to help you craft a winning business plan. SBA also offers online templates to get you Marketing • Provide projected income statements, started. • Discuss the products and services and balance sheets for a two-year In general, a good business plan your company will offer. period. • Identify customer demand for your • Discuss your break-even point. contains: • Explain your personal balance sheet products and services. Introduction • Identify your market, its size and and method of compensation. • Give a detailed description of the locations. • Discuss who will maintain your business and its goals. • Explain how your products and accounting records and how they will • Discuss ownership of the business services will be advertised and be kept. and its legal structure. marketed. • Provide “what if” statements • List the skills and experience you • Explain your pricing strategy. addressing alternative approaches to bring to the business. potential problems. • Discuss the advantages you and your Financial Management business have over competitors. • Develop an expected return on Operations investment and monthly cash flow for • Explain how the business will be the first year. managed day-to-day. • Discuss hiring and personnel procedures. • Discuss insurance, lease or rent agreements, and issues pertinent to your business. • Account for the equipment necessary to produce your goods or services. • Account for production and delivery of products and services. Concluding Statement Summarize your business goals and objectives and express your commitment to the success of your business. Once you have completed your business plan, review it with a friend or business associate and professional business counselor like SCORE, WBC or SBDC representatives, SBA district office business development specialists or veterans business development specialists. Remember, the business plan is a flexible document that should change as your business grows. 14 — Small Business Resource NORTH CAROLINA Visit us online:
  15. 15. CAPITAL Financing Options to Start or Grow Your Business loan structure, variety of loan proceed uses, and availability. The program has broad eligibility requirements and credit criteria to accommodate a wide range of financing needs. The business loans that SBA guarantees do not come from the agency, but rather from banks and other approved lenders. The loans are funded by these organizations, and they make the decisions to approve or not approve the applicants’ requests. The SBA guaranty reduces the CAPITAL lender’s risk of borrower non-payment. If the borrower defaults, the lender can request SBA to pay the lender that percentage of the outstanding balance guaranteed by SBA. This allows the lender to recover a portion from SBA of what it lent if the borrower can’t make the payments. The borrower is still obligated for the full amount. To qualify for an SBA loan, a smallM business must meet the lender’s any entrepreneurs need the applicant small business, the lender criteria and the 7(a) requirements. In financial resources to start and the SBA. SBA guarantees a portion addition, the lender must certify that it or expand a small business of the loan (except for Microloans). would not provide this loan under the themselves and must The business should have its business proposed terms and conditions unless combine what they have plan prepared before it applies for a it can obtain an SBA guaranty. If thewith other sources of financing. These loan. This plan should explain what SBA is going to provide a lender withsources can include family and friends, resources will be needed to accomplish a guaranty, the applicant must beventure-capital financing, and business the desired business purpose including eligible and creditworthy and the loanloans. the associated costs, the applicants’ structured under conditions acceptable This section of the Small Business contribution, use of loan proceeds, to SBA.Resource guide discusses SBA’s primary collateral, and, most important, anbusiness loan and equity financing explanation of how the business will Percentage of Guarantiesprograms. These are: the 7(a) Loan be able to repay the loan in a timely and Loan MaximumsProgram, the Certified Development manner. The SBA only guarantees a portion ofCompany or 504 Loan Program, the The lender will analyze the any particular loan so each loan will also application to see if it meets the lender’s have an unguaranteed portion, givingMicroloan Program and the Small criteria and SBA’s requirements. SBA the lender a certain amount of exposureBusiness Investment Company will look to the lender to do much, if not and risk on each loan. The percentageProgram. The distinguishing features all, of the analysis before it provides SBA guarantees depends on either thefor these programs are the total dollar its guaranty on the lender’s loan. In dollar amount or the program the lenderamounts that can be borrowed, the type the case of microlenders, SBA loansof lenders who can provide these loans, uses to obtain its guaranty. For loans of these intermediaries funds at favorable $150,000 or less the SBA may guarantythe uses for the loan proceeds, and the rates to re-lend to businesses withterms placed on the borrower. as much as 85 percent and for loans financing needs up to $50,000. The over $150,000 the SBA can provide a Note: The SBA does not offer grants SBA’s business loan programs provide ato individual business owners to start or guaranty of up to 75 percent. key source of financing for viable small The maximum 7(a) loan amountgrow a business. businesses that have real potential but is $5 million. (Loans made under cannot qualify for long-term, stableSBA BUSINESS LOANS financing. the SBAExpress program, which is discussed later in this section, have a 50 If you are contemplating a business percent guaranty.)loan, familiarize yourself with theSBA’s business loan programs to see 7(a) LOAN PROGRAM Interest Rates and Fees The 7(a) Loan program is the SBA’s The actual interest rate for a 7(a)if they may be a viable option. Keep primary business loan program. It loan guaranteed by SBA is negotiatedin mind the dollar amount you seek to is the agency’s most frequently used between the applicant and lender andborrow and how you want to use the non-disaster financial assistance subject to SBA maximums. Both fixedloan proceeds. The three principal program because of its flexibility in and variable interest rate structuresplayers in most of these programs areVisit us online: NORTH CAROLINA Small Business Resource — 15