1. ROANOKE REGIONAL ADVENTURE TOURISM WORKSHOP October 19, 2010

2. Are you sure?

3. What Do These Entrepreneurs Have in Common? Confidence? Competitiveness?

4. An Idea? Drive? Identified Market Need?

5. A Plan of Action? Willing to take Risks?

6. Focused? Goal & Objective? A successful enterprise

8. Remember as a start-up your place in the food chain

9. GET PREPARED…DO YOUR HOMEWORK OR……..

11. Small Businesses create over 75% of all new jobs.

12. Small Businesses account for half of the Commonwealth of Virginia’s contribution to the U.S. Gross Domestic Product - a whopping $160 billion. Virginia is for Business Lovers

13. Virginia is for Business Lovers Virginia ranked #1 state for business by Forbes.com last four years. Ranked #1 most business friendly state by Pollina Corporate Real Estate, Inc. last two years. Named #1 best states for business by CNBC. Virginia among top 10 list of states friendly to small business.

15. Virginia Business Start-ups Source: Virginia Employment Commission,Quarterly Census of Employment and Wages (QCEW)

16. How to Start and Operate A Business

17. Success Formula = $$© + D + ECS GP + GM © RRSBDC 2010

19. Open up a business or start a new product or service and hope you made the correct decisionGuess which one has thegreatest chance of success? © RRSBDC 2009

20. Business Success Rates Writing a business plan increases your chances of success by 25%. © RRSBDC 2009

21. Why do I need a Business Plan Forces you to do the necessary research About your business idea About your business expansion idea Gives you a written plan of action for future Required for investorsor bank © RRSBDC 2009

22. Why do I need a Business Plan The Business Plan is: Not just for start up businesses Not just for businesses looking for capital Every business should do one every year © RRSBDC 2009

24. Description of Business

25. Definition of Products and/or Services

26. Market Analysis and Marketing Plan *

27. Organization and Management Team

28. Operational Plan

29. Financial Statements and Projections *

30. Appendix* Most Important © RRSBDC 2009

31. Marketing Research – 9 Step Process What is the (new) product or service you want to sell? Is there a demand for this product? What is the state of the industry? (product life cycle) Who are your competitors? (do a competitive analysis also called SWOT) © RRSBDC 2009

32. Marketing Research – 9 Step Process 5. Who is your target market? (Demographics & Psychographics) How will you position yourself in the market? How will you price your product? Where will you do business? How will you reach your market? (specific marketing, advertising & marketing calendar) © RRSBDC 2009

34. Cash Flow Projections – 3 years

35. Balance Sheet – 3 years

36. Break-Even Analysis

37. Start-up Expenses© RRSBDC 2009

38. Steps to Openingand Operating a Business © RRSBDC 2009

39. Steps to Opening a Business Determine legal entity Check name availability with SCC (trademarks also) Check to see if a URL is available (www.internic.net – click on whois) Register with the SCC your corporation, LLC or/and fictitious name (www.scc.virginia.gov) Get your FEIN with the IRS (www.irs.gov) Register with VA Dept of Tax and V.E.C. (www.tax.virginia.gov) © RRSBDC 2009

40. Steps to Opening a Business 7. Check with Dept of Professional & Occupational Regulation to see if you need any special permits. (www.dpor.virginia.gov) 8. Obtain Business License from local Commissioner of Revenue Other permits/licenses – ABC, Health Dept, Meals/Lodging/Entertainment taxes Local fictitious name registration with courthouse Insurance – liability, workman’s comp, etc. Trademarks, Service Marks, Patents, Copyrights MAKE TONS OF MONEY © RRSBDC 2009

42. Inexperience in the business

43. Poor customer service

44. Lack of a business, financial and marketing plan

45. Ignorance of the market and competition

46. Failure to adjust to the market

47. Change in economic conditions

48. Failure to properly maintain records

50. Maintaining the Entity Integrity Setup before business starts Setup separate bank account Do not mix personal & business funds or bills Sign all contracts & leases in entity name Sign everything as owner/president etc. Put insurance in company name If corporation have annual meeting and maintain minute book © RRSBDC 2009 Choosing the Right Legal Entity

51. Liability Protection Exclusions Personal Guarantees – notes, leases, vendors Negligence Failure to pay IRS payroll taxes Fraud © RRSBDC 2009 Choosing the Right Legal Entity

53. There is no such thing as 100% Financing

54. You will need to put in 10-40% cash

55. The bank will require a personal guarantee

56. Startup businesses are hard to finance

57. The process is not quick

58. Most business grants are myths

59. The SBA does not lend money

61. Not engaged in lending, real-estate development,

62. investments or speculation

63. Must have a sound business purpose

64. Good Credit www.annualcreditreport.com

66. Express Loans – up to $350,000

67. Community Express Loans – Borrego Springs Bank. www.borregospringsbank.com up to $50K

68. Patriot Express – up to $500,000

69. Term Loans – up to $2,000,000

70. 504 Loan Program

71. Real Estate and Fixed Assets

72. Micro-Loan Program

73. Up to $35,000

75. How Can Our Services Benefit You Through one-on-one Counseling, we can help you with… Development of Business Plan Market Research Development of Marketing Plan Workshops Government Procurement © RRSBDC 2009

76. Through one-on-one Counseling, we can help you with… Technology Loan Application Source of Business Financing Financial Analysis Permits, Licenses and Taxes Counseling is at No Cost © RRSBDC 2009 How Can Our Services Benefit You

77. Local Office Roanoke Regional Small Business Development Center 210 South Jefferson Street Roanoke, VA 24011 (located inside the Roanoke Regional Chamber of Commerce building) 540-983-0717 www.rrsbdc.org

78. Growing Your Business/Marketing Strategies

79. Tourism Business Development & Marketing Assistance Randy Rose Development Specialist – Partnership Marketing Virginia Tourism Corporation rrose@virginia.org 276-322-2044 www.vatc.org (industry) www.virginia.org (consumer)

81. Tourism Business Opportunities

84. Advertising Customer Service & Industry Relations Electronic Marketing Film Office Marketing & Promotion Public Relations Research Tourism Development Others Virginia Tourism Corp. Services

86. Planning Assistance Marketing Guidance Workshops Marketing/Advertising Benefits Business Assistance

87. Wilderness Road Heritage Trail Virginia Coal Heritage Trail ‘Round the Mountain Heartwood Spearhead Trails Crooked Road Fish Virginia First Development & Partnership Marketing

88. Franklin County Roanoke County Craig County Patrick County Floyd County Pulaski County City of Radford Giles County Tazewell County Carroll County Locality Tourism Planning

90. Canoe Rentals and Tours Fishing and Boating Rentals Bicycle Tours and Outfitters Adventure/Nature Camps Tourism Business Opportunities

91. Wineries/Vineyards Corn Maze Pumpkin Patch Pick Your Own Animal Parks Herb/Flower Farms Christmas Trees Farms Agri-tourism

93. Cabins and Cottages

94. Lodges

95. Campgrounds

96. Horse Campgrounds

97. Horse Stables/Barns

98. House Boats

99. Green LodgingUnique Lodging Opportunities

101. Artisan Studios/Galleries

102. Heritage Sites

103. Tea Rooms

104. Breweries/Pubs

105. Eclectic Restaurants

106. Shopping

107. Spas Attractions

108. Caterers Cleaning Services Food/Drink Distributors Electricians Restaurant Equipment Plumbers Security Systems Pool Maintenance Convenient Stores Lawn Care Web Site Designers Auto Repair Ad Agencies Events Planners Travel Agencies Florists Motorcoach Companies Linen Services Car Rental Offices Supporting Businesses

109. 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

110. Now, let’s talk about marketing your small business

111. Can you answer thesetwo questions? What is Marketing? What is the difference between Marketing and Advertising?

112. 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

113. What are you trying to accomplish? What is your mission and vision? Are you the largest, cheapest, best service, best quality? Sales goals? Marketing Planning

114. Who is your target audience? by demographics by geography by needs and wants now and in the future Marketing Planning

115. What message will move your audience? Your brand Your tagline/slogan/message What do you want people to say about your business? Marketing Planning

116. What vehicles do you have to deliver the message? Website E-mail Advertising Public Relations Social Media Tradeshows Newsletters Marketing Planning

117. What are your resources? Budget/Money Owner/Employee Skills Friends/Family Partnerships Local/State/Federal Assistance Chambers of Commerce, Business Associations, etc. Marketing Planning

118. How will you measure your marketing performance? Electronic Marketing Tools Data Collection Research Mechanisms Surveys Informal Questioning Sales Data Marketing Planning

119. Have a Calendar/Schedule Include: Anticipated Ad Placement Press Releases Social Media Updates/Posts Promotions Other Scheduled Strategies Marketing Planning

120. Marketing Plans Change Because of business growth Because of research Because of economic factors Because of technology (social media) Because there is always change Marketing Planning

121. Virginia’s Recent Ad Campaign

123. Sales/Promotions

124. Referrals

125. Phone CallsMarketing Tips

126. Branding (it’s not just a logo) Marketing Tips

128. Gauge Performance

129. Have Customer Service Plan (Goals, Objectives)Marketing Tips

131. E-mail

132. E-newsletters

133. E-adsMarketing Tips

135. Cultural Heritage (Coal Heritage Trail)

136. Anglers (Fish Virginia First)

137. Outdoor Enthusiasts

138. Weddings/Meetings/Group ToursMarketing Tips

139. Public Relations Marketing Tips

141. Be Creative

142. Have Fun!Marketing Tips

143. Tourism Business Development & Marketing Assistance Kitty Barker Development Specialist – Partnership Marketing Virginia Tourism Corporation rrose@virginia.org 276-322-2044 www.vatc.org (industry) www.virginia.org (consumer)

144. Financing & Managing Resources

145. Helpful Hints for FinancingYour Business Matthew Churchill Principal Business Relationship Manager/Vice President Roanoke Business Banking Wachovia Bank © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.

147. Check for any inaccuracies or mistakes.

148. Make certain that all accounts are current and there are no outstanding judgments or liens.

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. Gather personal and/or business records

151. For the past three years, including:

152. Tax returns, financial statements with schedules and attachments, and interim year-to-date financial statements.

153. Any other financial documents that might help a lender.

154. Neatly photocopy all of the documents and prepare them for your presentation. 77 © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.

156. Know how much you need

157. Be prepared to support all costs with estimates, invoices, or contracts

158. Never tell a lender that you want to borrow as much money as possible.

159. Primary source of repayment

160. Be able to demonstrate how you will pay back the loan

161. Debt Service Coverage = Earnings before Interest, Taxes, and Depreciation / Total Debt Service

162. Debt to Income= Debt service / Income available to service debt

163. Secondary source of repayment (back up plan)

164. Be prepared to be able to demonstrate how your lender will be paid back if income falls short

165. Be prepared to have guarantors and possible collateral© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use. 78

167. Business owners tend to be optimistic

168. Be prepared for scrutiny

169. Address your strengths and challenges realistically & honestly

170. Most common weaknesses lenders find are:

171. Inability to demonstrate repayment ability

172. Insufficient collateral

173. Lack of management experience

174. Insufficient cash injection

175. Poor personal credit

176. Don't get scared; just get prepared

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.© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use. 79

178. Types of Deals Financed Acquisition of Owner Occupied Real Estate Financing available up to $9MM Refinance of Existing Debt Up to $2MM Must cut payments by 10% or more Business Acquisition Individual or corporate buyers Partner or Management Buy-Outs Loans up to $1.75MM Start Ups Require 30% equity 80 © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.

179. Why Wells Fargo SBA Lending Largest lender in United States Closed over $900MM in 2009 – three times nearest competitor Experienced Lenders and Underwriters Preferred SBA Lender Growing while others contract 2010 Goal - $1.2B It’s a marathon not a sprint We don’t sell our loans 81 © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.

180. Matthew ChurchillWachovia Bank (540) 563-7675matthew.churchill@wachovia.com © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.

181. Other Business Resources Sandy Ratliff, Business Services Manager Virginia Department of Business Assistance 276-676-3768 sandy.ratliff@vdba.virginia.gov www.vdba.virginia.gov www.vastartup.org

182. The Virginia Department of Business Assistance VDBA supports economic development in the Commonwealth by working with new and existing businesses to provide business and economic development communities with: workforce incentives financing business information and counseling state procurement assistance educational opportunities www.vdba.virginia.gov

184. Well trained and plentiful workforce

185. Appropriate capital structureAsk VBIC = 866-248-8814

187. Bridges the 26 state agencies, over 110 regulatory programs and over 300 forms that may touch a Virginia business

188. Virginia Central Business Portal (www.business.virginia.gov)

189. Covers registration, taxation, licensing

190. Interactive business plan available online at www.vdba.virginia.gov or www.vastartup.org

192. Create a Business One Stop account.

193. Answer a few brief questions about your business.

194. Receive a list of action items and pre-filled business registration forms.Questions? Contact the Virginia Business Information Center 1-866-248-8814 (804) 371-0438 vbic@vdba.virginia.gov

195. Ask VBIC = 866-248-8814

197. $5 billion market

198. Access to buyers from 171 state agencies

199. Additional $5 billion from local governments

200. 575 localities using eVA system.

201. Small Business Goal – 40%

202. Over 44,994 registered suppliers

203. Over 13,065 participating buyersAsk VBIC = 866-248-8814

204. Examples of Purchasing: Instant Ice Tea 01/01/2009 – 12/31/2009 = $23,455.71 - 46 PO’s Novelty – Specialty Advertising Products 01/01/2009 – 12/31/2009 = $152,905.34 - 152 PO’s Grounds Maintenance: Mowing, Edging, Plant (Not Tree) Trimming, etc. 01/01/2009 – 12/31/2009 = $14,566,567.94 - 1150 PO’s Tires and Tubes, Passenger Vehicles 01/01/2009 – 12/31/2009 = $72,103.64 - 7 PO’s Concessions, Catering, Vending: Mobile and Stationary 01/01/2009 – 12/31/2009 = $6,187,712.31- 11,757 PO’s Building Maintenance 01/01/2009 – 12/31/2009 = $90,611,650.85 - 9285 PO’s Earth Moving Equipment Rental 01/01/2009 – 12/31/2009 = $8,573,333.24 -621 PO’s Cleaning Services, Steam & Pressure 01/01/2009 – 12/31/2009 = $3,358,694.55- 303 PO’s

205. One–on-One Counseling Sessions Need Based: Accessing New Markets/Sales Growth Tailored Sales Development Solutions Financing Resources Social Media for Your Business To schedule an appointment, contact: Sandy Ratliff, Business Services Manager 276-676-3768 Email: sandy.ratliff@vdba.virginia.gov

207. Partnership with Service Providers and localities

208. Provide information on available resources to start and grow a business

209. Statewide Program

210. Free – ½ Day Session

211. Over 8,000 reached

213. Market Research and Expansion

214. Financing

215. Growth Management

216. Partnered events for SWAM certification and eVA registration

218. November 16 – Bristol

220. Create minimum 25 net new jobs within 12 months and capital investment of at least $1,000,000

221. Minimum entry-level wage of $10.00/hr required. Only full-time jobs are eligible.

222. Small business workforce recruiting and training

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. Minimum entry-level wage of $10.00/hr required. Only full-time jobs are eligible.

225. Retraining

226. Small businesses that are retooling and installing new technologies

229. Combination of on-the-job training and classroom instruction.

230. Advantage of skilled workforce and reduced turnover.

231. http://www.doli.virginia.gov

232. Virginia Department of Agriculture & Consumer Affairs

233. Virginia’s Finest Trademark = Marketing program that promotes foods and foods products grown in Virginia.

234. Facilitates expansion of agricultural businesses.http://www.vdacs.virginia.gov

235. OTHER AVAILABLE RESOURCES Turn to SCORE Counselors for Small Business Advice Visit the SCORE Small Business Web Site: www.score.org How-to Advice & Info Ask SCORE for business advice online Find SCORE to locate any chapter in the country 2,000 pages of content for small business owners How-to articles offer practical business tips

237. 29 Within Commonwealth

238. Business Incubator Benefits

239. Facility designed to assist businesses to become established and sustainable

240. Benefits

241. Shared premises and business services

242. Business advice and mentoring assistance

246. 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/

247. Marketing Resources SCORE = www.score.org Virginia Tourism Corporation = www.vatc.org Virginia Economic Bridge, Inc. = www.virginiabusiness.org Virginia Department of Agriculture – Virginia’s Finest Trademark = www.vdacs.virginia.gov

248. 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

249. “If you always do what you’ve always done, You will always get what you’ve always got!”

250. Lets Connect: Sandy Ratliff The Virginia Department of Business Assistance 276-676-3768 sandy.ratliff@vdba.virginia.gov Online: Twitter: http://twitter.com/sandyratliffFacebook: http://www.facebook.com/sandy.ratliff LinkedIn - http://www.linkedin.com/in/sandyratliff YouTube - http://www.youtube.com/user/vastartup

251. Survey Completions Please take a moment to complete our survey!

253. Help is Available……Just a click away……

254. CONTACTS Sandy Ratliff, Virginia Department of Business Assistance = 276-676-3768 or VBIC = 866-248-8814 Randy Rose, Virginia Tourism Corporation = 276-322-2044 Tom Tanner, Roanoke SBDC = 540-983-0717 Matthew Churchill, Wachovia Bank = 276-563-7675