Slide presentation for the Small Business Development Center, Region 7, Grand Rapids, MI

1. SBDCMichigan.org
Michigan Small Business
Development Center

2. SBDCMichigan.org
WHO ARE WE?
• Michigan’s most comprehensive small business assistance
program
• Funded through three sources:
– Small Business Administration (SBA)
– Michigan Economic Development Corp. (MEDC)
– Local network of partners in universities, colleges and
economic development offices

3. SBDCMichigan.org
WHAT DOES THE MI-SBDC DO?
THE MI-SBDC IS:
– Client centered
– Efficient (triage system)
– Collaborative
– Focused on economic impact
• Jobs – created and retained
• Sales
• Capital – loans, owner investment, outside investment
• New business starts

4. SBDCMichigan.org
WHERE ARE WE LOCATED?
• State HQ
– GVSU: Grand Rapids
• West Michigan Region
– Kent
– Ottawa
– Muskegon
– Allegan
– Ionia
– Barry
– Mason
– Lake
– Osceola
– Newaygo
– Mecosta
– Montcalm
• Satellite Offices
– GVSU Holland Campus
– GVSU MAREC-Muskegon
– Grand Haven Chamber
– Allendale office

5. SBDCMichigan.org
OUR TEAM
• Regional Consultants
– Lead consultants – maintain ongoing relationship
– Core services – deliver or build team for client needs
• Growth Group
– Well established / 2nd stage business specialists
• Manufacturing Assistance Team
– Manufacturing finance and diversification specialists
• Technology Team
– Innovative technology-based business specialists

6. SBDCMichigan.org
OUR TEAM
• Regional Consultants
– Dante Villarreal, Region 7 Director
– David Sayers, Senior Business Consultant
– Brooks Kindel, Business Growth Specialist
– Jeanne Ferro, Business Consultant
– Joe Walker, Business Consultant

7. SBDCMichigan.org
WHAT ARE OUR CORE SERVICES?
BUSINESS COUNSELING/COACHING
– no cost/confidential
SECONDARY MARKET RESEARCH
– low or no cost
BUSINESS EDUCATION
– low or no cost
Counseling ▪ Training ▪ Market Research

8. SBDCMichigan.org
WHAT KEY THINGS DOES A BUSINESS CONSULTANT ASSIST A CLIENT WITH?
Counseling ▪ Training ▪ Market Research
• Business Plan Development
• Financial Analysis
• Capital Access Planning
• Cash Flow Management
• Strategic Planning
• New Market Development / Diversification
CORE SERVICES: COUNSELING

9. SBDCMichigan.org
• Analyze data from financial statements for past 3-5 years:
• Breakeven
• Profits: Gross, Operating and Net
• Working Capital, Inventory and Accounts Receivable
• Asset Turnover, Return on Assets
• Cash Flow, Interest and Debt Service Coverage
• Benchmark company against industry financial ratios
• Identify performance opportunities - “What If” and scenario building
Goal: Assess company’s financial health and increase understanding of
opportunities to improve financial position
CORE SERVICES: COUNSELING
HOW DO WE ASSIST A BUSINESS IN THE AREA OF FINANCIAL
ANALYSIS?

10. SBDCMichigan.org
CORE SERVICES: COUNSELING
• Assess capital and cash flow needs
• Assist with development of a business plan, financial forecast,
loan proposal, and lender presentation
• Educate clients on financial ratios and lending criteria used by
financial institutions
• Connect the business owner with appropriate funding sources
• Post-funding consulting to maximize success and promote an
ongoing strong relationship with the bank or other funding
source
WHAT IS THE ROLE OF A CONSULTANT RELATED TO ACCESSING
CAPITAL?

11. SBDCMichigan.org
CORE SERVICES: MARKET RESEARCH
• No Cost
• Counselors support clients with market, industry and
competitive information
• Available from two dedicated research gathering centers at:
– Seidman College of Business at GVSU
– University of Texas San Antonio
HOW IS MARKET RESEARCH OBTAINED?

12. SBDCMichigan.org
CORE SERVICES: MARKET RESEARCH
• Provides secondary data including, but not limited to:
– Industry Overview and Trends
– List of Competitors
– Demographics
– Psychographics
– List of Competitors
– D&B Reports
– RMA/Ratio
– Best Customer Profile
– Sample Business Plans
TYPES OF DATA

13. SBDCMichigan.org
D&B
27.41%
J.J. Hillsearch
24.35%
Scan US
14.53%
Other
13.22%
Internet
9.66%
Ratios
6.38%
Lifestyles
4.16%
BizComps
0.29%
Dun & Bradstreet 653
J.J. Hillsearch 580
Scan US 346
Other 315
Online Research 230
RMA Ratio Comparisons 152
Lifestyles Market Analyst 099
BizComps 007
CORE SERVICES: MARKET RESEARCH
Data from 2009
WHAT ARE OUR SOURCES OF DATA?

14. SBDCMichigan.org
CORE SERVICES: TRAINING
• Training programs serve as an efficient method of increasing
entrepreneurial skills prior to or in conjunction with
counseling
• No to Low Cost Programs are offered for all stages of business
development
– Start up (< two years)
– Emerging (< five years, < 10 employees)
– Established / 2nd Stage (>10 employees / $1million in sales)
WHAT BUSINESS EDUCATION IS PROVIDED?

15. SBDCMichigan.org
CORE SERVICES: TRAINING
Start-up and Emerging Businesses may do half-day
Entrepreneurial Series Programs
– Pre-Business Orientation
– Fundamentals of Starting a Business
– Fundamentals of Writing a Business Plan
– Fundamentals of Marketing Your Business
– Fundamentals of Finance
– Fundamentals of Business Legal Issues
WHAT TRAINING IS AVAILABLE FOR EARLY STAGE
BUSINESSES?

16. SBDCMichigan.org
CORE SERVICES: TRAINING
We also offer the Venture Plan Online program for start-ups
– Developed and provided through the MI-SBDC and the
Start, Run, Grow curriculum
– An in depth, 8-week, online certified facilitator-led
program
– Supported by ongoing and follow-up MI-SBDC counsel for
participants
– Goal: A strong business plan
VENTURE PLAN ONLINE PROGRAM

17. SBDCMichigan.org
ADVANCED TOOLS: TRAINING
Advanced training programs target businesses with >10
employees or >2 years history
– Venture Plan Online Program
– Know Your Numbers – 5 Keys to Using Financial Statements
– PeerSpectives “CEO Roundtables”
– Retail Survival Guide
– The Successful Contractor
WHAT ABOUT TRAINING FOR ESTABLISHED / 2ND STAGE
BUSINESSES?

18. SBDCMichigan.org
• Strategic Needs Assessment
• Financial Analysis
• Capital Needs
• Organizational Development
********************************************************
****************
• Strategic Actioning
• Marketing Edge
• Process Improvement
• Capital Access
• Internal Management Tools
********************************************************
****************
• Monitor and Analyze Metrics
• Implementation Accountability
• Quarterly Variance Analysis
• Leadership Coaching
Step 1: Assess and
strengthen company
Step 2: Assess future
growth opportunities
Step 3: Implement
growth plan & monitor
Counseling ▪ Training ▪ Market Research
ADVANCED TOOLS: SPECIALTY TEAMS
WHAT TOOLS ARE USED TO ASSIST THE BUSINESS OWNER?

19. SBDCMichigan.org
ADVANCED TOOLS: SPECIALTY TEAMS
Technology Company Definition:
A business in which research and development brings forth an innovative product or
process. The innovation typically involves intellectual property that contributes to
a strong competitive advantage in the marketplace, and serves as a foundation for
a high rate of growth.
Key Services that Specialists Provide Include:
• Intellectual Property Guidance
• SBIR/STTR Assistance
• Preparation for Angel/Venture Capital Pitch Presentation
• Commercialization Planning via Technology Roadmapping
• Management Team Assistance
• Strategic Alliance Building
• Marketing
TECHNOLOGY ASSISTANCE

20. SBDCMichigan.org
REFERRAL PROCESS
A client contacts the MI-SBDC office either by phone, electronically, or walk-
in and is triaged based on their needs:
• Phone: Client phones the center directly or a Partner phones our office to
refer the client to MI-SBDC for services and support. Our Intake
Consultant will provide support which may include referring the client to a
training or to the appropriate staff member for additional support
• Electronically: Client completes our online counseling request form. Our
Intake Consultant will follow-up via email and/or phone to inform them of
next steps and begin the intake process
• Walk-in: Client makes an unscheduled visit to the office at which time the
program assistant provides the client with program information and
begins the registration process
HOW DOES A CLIENT ENGAGE THE MI-SBDC?

21. SBDCMichigan.org
QUESTIONS ?