Tennessee Small Business Development at Vol State

Social Media in Plain English

2012-02-01T12:36:00.000-08:00

This video is a couple of years old, but sums up social media very well.

And ice cream cut outs are very cool.

Remember that the Tennessee Small Business Development Center (TSBDC) also specializes in personal and confidential one-on-one advising services for existing and start up small businesses. Whether the counseling is in the area of marketing, finance, management, or any other business service, the TSBDC consultant provides guidance every step of the way. To schedule an appointment visit http://www.tsbdc.org/.

February workshops

2012-01-31T06:39:00.000-08:00

February (It’s Marketing month!)

How to Start a Small Business workshop of Volunteer State CommunityCollege's Tennessee Small Business Development Center, 3-5 p.m. Tuesday,February 14, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, GibsonConf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

5 Steps for Marketing Success workshop of Volunteer State CommunityCollege's Tennessee Small Business Development Center, 9-11 a.m. Thursday,February 16, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, GibsonConf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

Social Media for Small Businesses workshop of Volunteer StateCommunity College's Tennessee Small Business Development Center, 9-11 a.m.Thursday, February 23, 1480 Nashville Pike, Gallatin, TN in the Betty GibsonHall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

Upcoming in March
Government Contracting workshop of Volunteer State CommunityCollege's Tennessee Small Business Development Center, 2 - 4 p.m. Wednesday,March 7, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, GibsonConf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

Seth Godin on Small Business

2012-01-20T08:04:00.000-08:00

Take a few minutes and see what marketing guru says about making your small business indispensable.

Not to mention, he has an awesome haircut.

6 Things to Fix in 2012

2012-01-11T07:03:00.000-08:00

Yes, I know that 12things to fix in 2012 would have a much better ring, but who has time for 12things. In fact, I think 6 things may bepushing it. At least 12 is divisible by 6. You know what, just read this list and pickout 2 or 3 that you are comfortable with, and stick with those.

1. Poorcash flow management

Problem: Payment doesn'talways match outflow and it's up to the business owner to make up thedifference.

Solution: Fill out a cashflow (not P/L statement) and identify shortfalls. Do not extend credit to all customers. Bill customers quicker in order to speed upthe collection process (billing cycle) and get funds into the businessfaster. Eliminate or reduce some overhead or fixed costs to reducemonthly expenses. Pull frequent (weekly) accounts receivable reports in orderto examine how effective the business is at collecting funds.

2. Lackof planning

Problem: On average, peoplespend more time planning a vacation or wedding than they do for running theirsmall business. The business should last a lot longer than a seven dayvacation or a one night wedding.

Solution: Create goalsfor your business and a plan to reach those goals through marketing,management, and financial planning. Obtain an annual business check-up. Meet with an accountant, banker, or TSBDC counselor to review financialstatements and get advice on how to improve performance.

3. Marketing

Problem: Set up a real marketing budget. It should beat least .5% - 8% of your monthly expenditures.

Solution: Identify yourtarget market and a good marketing mix to attract that target market. Track where your sales come from, such as internet,coupons, chamber contacts, etc.

4. Delegation

Problem: If you wantsomething done right, you have to do it yourself. If you want to own yourbusiness longer than a few years, learn to delegate and deal with imperfection.

Solution:Hire the right people using systematic processes to operate the business. Recognize what you are not good at anddelegate that role so you can spend time managing your business

5. Personaluse of business funds

Problem: DO NOT GETTHAT NEW DIAMOND ENCRUSTED IPAD YET!

Solution: Monitor theamount of money that is being used for activities unrelated to thebusiness. Keep personal use of funds separate from all business funds, byusing different accounts.

6. Unexpected growth

Problem: Performan annual SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis todetermine what your business will likely be experiencing and create a plan tomeet that growth.

Solution: Have a growth plan and stick to it. This may mean turningdown customers.

Vol State TSBDC 2011 Results

2012-01-03T14:25:00.000-08:00

The Results Are In.........

We met with 215 clients and had 710 people attend workshops.

However, we are most proud of….

Working with clients to obtain$1,251,000 toexpand or start their business.

Working with clients to create70 jobs.

Working with 29 clients to start their business.

Use Video to Promote Your Business

2011-12-20T06:29:00.000-08:00

One of the hot topics from the social media "experts" is video. They say, if you don't have video content on your website in five years, you will not be on the first page of Google and may not be found at all. This doesn't mean that posting videos will make you a YouTube sensation. It just means that you will need to have this type of content just to compete. And it makes sense. We are not a very patient society. We want to access information quickly, easily and we want to be entertained. Therefore videos are currently the way to go. (If in five years we are talking about hologram monkey professors that will inject you directly with a knowledge shot, that will be a different story. But right now, it's video.) And from taking a look around, you can get a jump on the competition by posting brief, informative and entertaining videos to your site and YouTube now. This will drive more traffic your way and keep people on your site longer.

Starting a Small Business

This is the TSBDC's first run at online video content. This clearly is not a training video, however it does provide information that people are searching for and has given our website a boost.

Will It Blend?

The story goes that on the days that employees at the Blendtec plant smelled sawdust, they knew Tom was experimenting again and would flock to see the show. Tom was stuffing things like 2x2s into his blender. Noticing how entertained the staff was, Tom's marketing manager, George Wright, caught it on video, and with an advertising budget of only $50 it all began. It instantly hit the jackpot on YouTube, and the company saw a 700% sales incrase over the next two years.

Zappos

Zappos has used video to cleverly promote their online retail store for a while now. This is an example of how they used humor to incorporate themselves in the holiday season.

QuickBooks - How To Do a Year-End Close

2011-11-28T08:48:00.001-08:00

QuickBooks - How To Do a Year-End Close

Topic: Business Accounting and Budget

Thursday, December 15, 2011 9:00 AM to 11:00 AM

The class will show you the procedures you should complete at year-end before the preparation of your income tax return. It will also go over items to look out for on financial statements that can be red flags to incorrect entries within your QuickBooks software.

Speaker(s): Rachel Hutcherson McCrary - Greeno CPA

This class is in room 175 in the Ramer Administrative Building, NOT the Betty Gibson Building.

Fee: $ 25.00 Register for this event online

2011-11-14T07:08:00.001-08:00

Check out our new Starting a Small Business video! It is also posted on our home page at www.tsbdc.org.
You'll soon see that Joe has a lot of new things to learn and consider.

November Workshops

2011-11-07T07:30:00.000-08:00

How to Start a Small Business workshop of Volunteer State CommunityCollege's Tennessee Small Business Development Center, 4-6 p.m. Tuesday,November 8, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, GibsonConf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

Social Media for Small Business Owners workshop of Volunteer StateCommunity College's Tennessee Small Business Development Center, 9-11 a.m.Thursday, November 11, 1480 Nashville Pike, Gallatin, TN in the Betty GibsonHall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

Borrego Springs Bank SBA Loan Seminar workshop of Volunteer StateCommunity College's Tennessee Small Business Development Center, 10-12 p.m.Wednesday, November 16, 1480 Nashville Pike, Gallatin, TN in the Betty GibsonHall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

Borrego Springs Bank SBA Loan Seminar workshop in Lebanon. 2-4 p.m. Wednesday, November 16, Wilson County/Lebanon Chamber of Commerce. Registration is required. Reserve online. www.tsbdc.org. Free.

Government Contracting workshop of Volunteer State CommunityCollege's Tennessee Small Business Development Center, 2-4 p.m. Thursday,December 1, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, GibsonConf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

Legal Tips for Small Businesses

2011-10-10T07:25:00.000-07:00

One of the areas of advice that the TSBDC defers on is legal issues. That’s why I choose to surround myself with folks that can give advice in these areas. One such person is attorney, George Phillips from Bone McAllester Norton. He will be teaching a “Best Legal Advice for Small Businesses” workshop and below are some of the tips he finds important.

1. Get Personal Guarantees. If you are extending credit to a small business, always try to get a personal guaranty. When the borrower fills out the credit application for their LLC, add a line and ask them to sign that if the LLC does not pay, that they will. Most of the time when a small company is seeking credit, they will sign what is put in front of them. If they won’t, you should wonder why, and start asking for financial statements for the LLC to see if it is credit worthy.

2. Have A Partnership Agreement. If you have to have a partner, make sure there is a partnership agreement. However, given the risks of a true partnership, and given that the LLC is available as an alternative, most are done through an LLC. Either way, you need an agreement that spells out how a partner can exit, can he compete after exiting, and what happens if a partner dies or is disabled.

3. Oral Agreements Aren’t Worth the Paper They Are Written On. Many small businesses operate on a handshake, but even the most honest and good folks over time forget details or remember them differently. Even if you don’t do a formal contract, send a confirming e-mail. A writing made at the time the deal was made, especially if shared with the other side and not objected to, will always trump a person’s memory in court months or years later.

4. Worker’s Compensation Insurance. While worker’s compensation does provide some level of coverage for injured employees, it caps liability for the business unlike a normal negligence suit where the damages are unlimited and sometimes only constrained by the plaintiff’s attorney’s imagination. Even if you have less than 5 employees, workers compensation coverage makes lots of sense, even if not required.

5. Deal with Good People. A bad contract with good people will, in most cases, work itself out because everyone will do what they should to try to make it work. The best contract is the one that is signed, put on a shelf and the parties never have to read it over again. They work together to both parties’ benefit, sometimes in spite of what the contract may actually say.

The opposite is also true. No matter how good the contract, no matter how hard your attorney works on it, it is still only as good as the person or business it is with. We all, on occasion, have no choice but to deal with bad folks. With those folks, the signing of the contract is often only the beginning of the negotiation. In addition to whatever the contract provides, you have to make sure you keep the leverage and anticipate and plan for the other party not doing what they promised.

With respect to your employees, insurance agents, accountants, and attorneys use the best folks you can find. Do you really want an accountant or an attorney who is so hungry for the business, they will just tell you “yes” to whatever you want to do?

Guy Kawasaki on Why He's a Justin Bieber Fan

2011-09-26T08:11:00.000-07:00

Learn about marketing to the decision maker. The business guru talks about the power of marketing to influencers and how he'll do anything for his young daughter.

To learn more about targeting the decision maker attend:

Small Business Sales Forum

Tuesday, October 18, 2011 3:00 PM to 5:00 PM

October Small Business Workshops

2011-09-19T11:27:00.000-07:00

October

How to Start a Small Business workshop of Volunteer State CommunityCollege's Tennessee Small Business Development Center, 4-6 p.m. Tuesday,October 11, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, GibsonConf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

IRS Small Business Tax workshop of Volunteer State CommunityCollege's Tennessee Small Business Development Center, 9:00 – 3:30 p.m. Friday,October 14, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson110. Registration is required. Reserve online. www.tsbdc.org. Free.

Small Business Sales Forum workshop of Volunteer State CommunityCollege's Tennessee Small Business Development Center, 3-5 p.m. Tuesday,October 18, 1480 Nashville Pike, Gallatin, TN in the Rochelle Center in theThigpen Library. Registration is required. Reserve online. www.tsbdc.org. Free.

Best Legal Advice for Small Businesses workshop of Volunteer StateCommunity College's Tennessee Small Business Development Center, 9-11 a.m.Thursday, October 27, 1480 Nashville Pike, Gallatin, TN in the Betty GibsonHall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

Best and Worst Customer Service Experiences

2011-08-25T06:14:00.000-07:00

We all have stories of what our best and worst customer service experiences are. For some of you, this experience will make you a loyal customer for life or make sure that you never use that company again.

Below are two experiences that come to mind for me.

Worst

Our television service provider, who shall remain nameless (not a satellite company), is somewhat notorious for poor customer service. They have a good product, but if and when you need to have an issue resolved, it can be a train wreck of an experience. For example, a few years ago we had to close our checking account. We had several monthly bills automatically withdrawn every month: electric, gas, water, cell phone, cable, etc. We called each of them, filled out paperwork, and were told the process for each. When we contacted our cable provider, after waiting on hold for over twenty minutes, being disconnected, then connected to the wrong department, then finally transferred to a real person, we were told that this would be no problem. “Just fill out this form and send it in, and then next month the billing will come out of your new account.” Fast forward two months. The billing is still coming from the old account or rather the closed account. And each time it does, there is a “bounced check” fee and late fees. After several rounds of calls and discussions, I was told, in a condescending, you’re-too-dumb-to-be-on-the-phone-with-me-manner, that I should know that it takes several months to change this process and there is nothing more we can do about YOUR PROBLEM. The icing on the cake - after I refused to pay the fees, they finally managed to go into my new account and take the fees out without asking, but still would not connect billing to my new account.

Best

On the other hand, I do have an example of exemplary customer service, and it’s a familiar business - Publix. Several of us could probably give a glowing story or two about this grocery store, however, I have long been a resentful shopper there. You see, I’m a cheapskate. I have been known to squeak a little when I walk. With that being said, I’m also a converted shopper to this place. Yes, I know that I may be stepping on a few toes when I say that you may spend a couple of dollars extra to go here, but in many cases it is well worth it. Case in point, last year I made a quick shopping trip in to get a few items I needed to make gumbo. I had my items in my basket and was ready to check out, when I realized that I had the wrong sausage (not the one Mr. Cheapie had a coupon for), so I set my basket down up front and ran back to get the right sausage. When I returned, my basket was gone. Was someone else too lazy to shop for their own gumbo items? No, the fast and friendly folks at Publix had noticed the unattended basket, and put the items back where they came from. When I asked an employee where they may be, he asked for my grocery list that was in my hand, and took off. He was fast, too. In just a few minutes, he returned with the items on my grocery list, wiped the sweat from his brow, and apologized for the inconvenience. Now this is not ground breaking stuff here, but I could just imagine if this happened elsewhere, the reaction would have been much different.

TSBDC Grow Your Business Tour comes to Vol State!

2011-08-17T12:20:00.000-07:00

TSBDC Grow Your Business Tour

Wednesday, August 31, 2011 2:00 PM to 4:00 PM

Cost: FREE

The “Grow Your Business Tour” is a fast-paced 90 minute workshop that will help the business owner with their direction, identity, marketing and benchmarks so they will have more confidence, more prospects, more referrals and a path and a plan for more business.

Information on 90 minute workshop

http://smallbizmidsouth.com/page/grow-your-business-free-fast

Testimonials

http://smallbizmidsouth.com/page/coaching-testimonials-2

Coaching Video

http://vimeo.com/20412060

Speaker(s): Robert Staub - Robert Staub, "The" Small Business Coach

Small Business Success Story - from your local TSBDC!

2011-08-01T13:05:00.000-07:00

Check out this video of Vol State TSBDC client, Café Rakka. Owners Riyad and Linda Alkasem were featured on the very popular Diners, Drive-Ins, and Dives on the Food Network.

Guy Fieri enjoyed this Mediterranean restaurant and was served lamb with a traditional Syrian spiced tomato sauce.

New Online Small Business Survival Training

2011-07-01T11:06:00.000-07:00

I am happy to announce that our New Online Small Business Survival Training website, http://www.tsbdctraining.org/ launched at midnight.

So, please feel free to register for an account, log in, and look around!

www.tsbdctraining.org

Here is a brief overview of the website. The website has fourteen chapters (listed below). Each chapter contains “chapter tools” which feature PDF documents with written content, voice-narrated PowerPoint presentations, and video segments featuring educators, professionals, and entrepreneurs from all over Tennessee. Each chapter also has available a “Document Center” where the users can download the full PDF and PPT for the chapter, a quiz which will earn them a certificate, and a chance to give us feedback and thoughts.

Once a user logs in, they can freely move between chapters as they wish, without having to register for each one – These classes also never expire, so the experience will be much more fluid for the attendees.

Chapter list:
1. Hiring and Managing Employees

2. Business Planning

3. Financing

4. Accounting

5. Legal Structures

6. Marketing

7. Online Marketing

8. Marketing Research

9. Entrepreneurship

10. Buying an Existing Business

11. Franchising

12. Exporting

13. Government Contracting

14. Internal Revenue Service

In the new online training center, we combined several specialized topics into one module- such as Marketing: it contains Marketing Basics, Positioning and Advertising, Pricing, and Marketing on a Budget – . By having fewer modules with each covering a broader spectrum of material, the user is guaranteed a more comprehensive training experience.

Please help us spread the word of the availability of this great asset to the small business owners and rising entrepreneurs of your community- FREE online business training available 24/7 at their fingertips & even globally . As always, your partnership and collaboration in supporting the success of small businesses is both valued and appreciated more than you know!!

Contractor or Employee

2011-06-27T07:42:00.000-07:00

Have you ever wondered if you were in violation of an employee/employer relationship by calling someone a contractor? This is generally the case when a business wants to avoid paperwork, taxes, overtime, and other employee headaches.

The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax and they have to take care that.

An individual is not an independent contractor if they perform services that can be controlled by an employer (what will be done and how it will be done). What matters is that the employer has the legal right to control the details of how the services are performed.

Folks, the IRS will be cracking down on these differences over the next few years to increase tax revenue, and you want to make sure that you are playing by the rules.

Small Business Success Story Video

2011-06-02T11:37:00.000-07:00

Coloft - Entrepreneur Success Story Profile - Shared Work Space, Meeting Rooms, and Virtual Office

Coloft is a community and work space focused on empowering and bringing together entrepreneurs, startups, freelancers, programmers, designers, and professionals.

The Top 10 Reasons Businesses Fail

2011-05-23T12:00:00.000-07:00

Starting a small business is always risky. According to the U.S. Small Business Administration, roughly 50% of small businesses fail within the first five years, and I believe those are generous statistics. Below are a mix of what the SBA and I (for whatever that's worth) believe are the top 10 reasons that businesses fail.

Top 10......get it? Hayo!

Lack of experience - Someone has been training you on your existing job, but who trains you to run a business?
Insufficient capital (money) - Every business needs money to start, even if it is just working capital to pay personal bills, until the business reaches a profit level.
Poor cash flow management - Payment doesn't always match outflow and it's up to the business owner to make up the difference.
Lack of planning - On average people spend more time planning a vacation or wedding than they do for running their small business. The business should last a lot longer than a seven day vacation or one night wedding.
Poor location - If you don't have good traffic, parking space, signage, then you may not have customers.
Competition - Always know who offers what, and what makes the two of you different.
Marketing - Set up a real marketing budget. It should be at least .5% - 8% of your monthly expenditures.
Delegation - If you want something done right you have to do it yourself. If you want to own your business longer than a year, learn to delegate and deal with imperfection.
Personal use of business funds - DO NOT GET THAT NEW BOAT YET!
Unexpected growth - Have a growth plan and stick to it. This may mean turning down customers.

Keeping Score in Your Business

2011-05-16T06:58:00.000-07:00

You often hear the debate among parents about keeping score in Little League. Some parents say there is no need in it, since the kids are just having fun and learning to play the game. Other parents say that kids need to learn the value of hard work and skill paying off. Since I have a two year old little girl and another on the way, I’ll abstain from the argument…….for now. I will say that keeping score in your business is crucial. Unfortunately, I see many business owners taking the advice of the first set of parents.

Since tax season has officially ended for most businesses, right now is a good time to sit down with your accountant and make sure that you are accurately keeping records. Also review your Profit and Loss Statement, Balance Sheet, and Cash Flow Statement on a regular basis. You don’t want to wait until April 14th, 2012 to find out that you are losing the game.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses.

To register for go to http://www.tsbdc.org.

Other contact information - Phone (615) 230-4780 or charles.alexander@volstate.edu.

QuickBooks Workshop - Thursday, May 19, 2011 9:00 AM to 12:00 PM

2011-05-10T06:48:00.000-07:00

Register Here!

This QuickBooks workshop is designed for basic users and small business owners that operate a for-profit business. Therefore the course description below is focused on that group of learners.

Course Introduction:

This course is an introduction to QuickBooks. Its main objective is to introduce you to the basic features in QuickBooks and give you an opportunity for hands-on practice. You’ll learn about the types of information you need to track in your business, and you’ll see how to enter that information and track it in QuickBooks. By the time you complete the course, you’ll have a good idea of all that QuickBooks offers, you’ll be familiar with the most common tasks, and you’ll know where to find information about more advanced features.

Course Outline:

• Introducing QuickBooks

• All the accounting you need to know

• Working with lists

• Working with bank accounts

• Tracking credit card transactions

• Using sales forms in QuickBooks

• Receiving payments and making deposits

• Entering and paying bills

• Creating and customizing QuickBooks reports

Fee: $ 25.00

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses.

To register for go to http://www.tsbdc.org.

Other contact information - Phone (615) 230-4780 or charles.alexander@volstate.edu.

Entrepreneur Quiz

2011-05-03T07:17:00.000-07:00

So if you are thinking about starting a business, buying a business or just want to know if this whole business ownership thing is still for you, take our quiz below. If the answer is no more than once, you may want to either reconsider or find a way to get good at that particular area.

Creating a practical plan with a good foundation.
Being dedicated to reaching your goal.
A basic knowledge of management, finance, record keeping and market analysis.
Are you a leader?
Do you make your own decisions quickly?
Do others turn to you for help in making their decisions?
Will you enjoy the inevitable competition?
Are you sure of your will power and self-discipline?
Are you capable of planning ahead?
Do you like people and can you work with them (strange, strangers are included)?

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to http://www.tsbdc.org/.

Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc

Small Business Make-over

2011-04-21T09:40:00.001-07:00

Take a peek at how this cattle ranch style restaurant gets a quick make-over with their web presence and by surveying employees and customers.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to http://www.tsbdc.org/.

Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc

Time Management for Small Business owners coming soon!

2011-04-11T08:38:00.000-07:00

Click here to register for this workshop - Tuesday, April 26, 2011 3:00 PM to 5:00 PM

Time management is one of those vague terms in business that gets tossed about quite a bit. Whenever it is mentioned, most people think about some “school-house” stuff that doesn’t work in the real world. In reality, time management is one of the greatest keys to running a successful business and this presentation will discuss some real world applications to implement into your daily routine.

This workshop will focus on:

*Examine why time management is important

*Relate time management to your organization

*Learn a 5 step approach to time management

*Apply what you’ve learned to your business

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to http://www.tsbdc.org/.

Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc

How to Hire Bad Employees

2011-04-04T06:45:00.000-07:00

Tell me if you’ve heard this story before. We got really busy and hired a new employee and assumed since the economy was down that we could find some really good folks. Turns out the person we hired didn’t stick around and didn’t do a very good job.

If you want to keep doing this, here’s how:

• Never ever start recruiting for a position until you are absolutely overwhelmed.

• As for the interview, just wing it. Do not ever prepare for the interview process.

• Hire the first warm body that you come across. Never check out any of the referrals.

• Never ever spend any time with the new employee. To train them, just have them follow your most mediocre employee around for a half day or so.

So if you are tired of hearing basically what not to do, just do the opposite of everything suggested.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to http://www.tsbdc.org/.

Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc

Small Business Sales Forum - Thursday, March 10, 2011 3:00 PM to 5:00 PM

2011-03-07T08:27:00.000-08:00

If you are looking for a chance to increase your sales effectiveness for your small business, then this workshop is for you. Come and listen to four different panel members (small business owners and other sales professionals) discuss the following sales topics for small business owners.

*Why Are You Successful?
*Selling Strategies
*How to Overcome Objections
*Measuring Your Results

Click below to register or go to http://www.tsbdc.org/ and click on the Training button.
Small Business Sales Forum

This will be an open question and answer session, so you will get to take full advantage of talking to people who make sales on a regular basis, with real-world examples.

By the way, this workshop is in the Thigpen Library, NOT the Betty Gibson Building.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to http://www.tsbdc.org/.
Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc

Sell with a Story

2011-03-01T08:20:00.000-08:00

I have a client that tells a simple story about her photography business. “Ava’s Photography” tells a story about a nervous mother bringing in her one-year old triplets for their first set of pictures. Getting all three of them to smile or interact at the same time is an amazing chore any time, especially in this case when one of them has a slight fever. With all three little boys in a bad mood, and crying Ava stepped into action. She was able to use her sock monkey puppet with her funny voices, and got on the floor and did some entertaining. In a very short period of time, she was able to get all of the little boys laughing and happy long enough to get photos in two different outfits. The mother was ecstatic and the photos made Facebook lore. What did we learn from this brief story? Ava has patience, provides good customer service, and has a special knack with toddlers. If Ava told you this story, you would remember it, and maybe even pass along her name to others. If she told you that she has great quality, reasonable prices, and is good with kids, you probably wouldn’t even remember her.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to http://www.tsbdc.org/.

Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc

Social Media for Small Businesses Workshop

2011-02-16T13:35:00.000-08:00

Folk, it's here and it's free, Social Media for Small Businesses. This workshop will cover how to use Facebook , Twitter, and YouTube to grow your business.

This workshop will be at Vol State Community College, Thursday, February 24, 2011 3:00 PM to 5:00 PM.

To register click the link above or visit http://www.tsbdc.org/ and click the Training icon.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to http://www.tsbdc.org/.

Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc

Small Business Loan Workshops Now Online

2011-02-09T13:34:00.000-08:00

One of the top requests for counseling that we receive at the TSBDC is for small business lending. One resource that we have available, that you may not be aware of is our FREE online workshops. This option allows you to choose from our complete listing of on demand online seminars that are available 24/7 for your convenience.

Below is a link to 3 different workshops on obtaining capital to start or expand your small business.

Small Business Loan Workshops

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to http://www.tsbdc.org/.
Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc

The Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

5 Tips to Selecting and Using a Professional Tax Preparer

2011-01-25T12:58:00.000-08:00

Below are a few things to keep in mind when selecting someone to help you prepare your tax returns:

1. Make sure the person is qualified - Ask for referrals and make sure you actually call them. You can always call your local Chamber of Commerce or even give us a call. Also, new regulations require all paid tax return preparers including attorneys, CPAs and enrolled agents to apply for a Preparer Tax Identification Number (PTIN), even if they already have one, before preparing any federal tax returns in 2011, so verify that they have one. Lastly, check to see if the preparer has a questionable history with the Better Business Bureau and the IRS Office of Professional Responsibility for enrolled agents.

2. Ask about service fees upfront – One of the biggest fears that people have of using a CPA or any tax person is not that it will cost too much. It is that they don’t know what it will cost. Ask upfront for at least an estimate or an hourly fee. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers.

3. Make sure you can talk to your tax preparer all year - Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case questions arise. If you are ever audited, you don’t want to hire a private investigator to find the person who does your taxes. The IRS will not accept you telling them that “The person that did your taxes was that nice man that sits in a black van, behind the Mapco. Just go ask him why I didn’t turn in all of my revenue.”
4. Provide all records and receipts - You are not allowed to wing it. There are cases that the IRS uses estimates, but not many. Most preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items.

5. Review your return and never sign a blank one - Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it. Avoid tax preparers that ask you to sign a blank tax form.

To learn more about doing taxes for your small business register for our free IRS Small Business Tax workshop on February 28th, http://www.tsbdc.org/workshop.aspx?ekey=53310005

The TSBDC also offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.

Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc

The Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Put Some Christmas Spirit in Your Business

2010-12-14T13:00:00.000-08:00

Have some holiday cheer and try any one of the following:

Send Christmas cards and gifts - It’s a no-brainer to send out Christmas cards to customers, vendors, and anyone else you deal with, because it's a great time of the year to reach out and show people how much you appreciate them, and remind them how your business can help them. Don’t be afraid to include a coupon or any other call to action in your card, just do it in good taste. Also, if it is a very good customer or vendor do something less generic and more meaningful. Taking the time to find a personally appropriate gift will mean the world to your customers, vendors, and other people that can send you business.

Decorate - Whether you’re web-based, home-based, vehicle-based, or if you’re a brick-and-mortar entity (or some combination of all of the above), don’t hesitate to spread some holiday cheer. Put up some lights, turn on some Christmas music, and decorate a tree. Let people know you’re happy to celebrate the season and meet their needs.

Special offers - Highlight products that you expect to be popular during the holidays. Make an economy bundle of everyday products, such as a collection of personal care items or essentials that most customers need.

The TSBDC also offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.

Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc

The Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Small Business Jobs Act - Lending

2010-11-02T13:23:00.000-07:00

SBA Enhanced Loan Provisions – $14 billion more in lending support

The law extends SBA loan provisions (with the 90% guarantee and reduced fees) through Dec. 31. The $505 million in subsidy for Jobs Act loans will support about $14 billion in overall small business lending. In the first week of the Jobs Act, SBA provided nearly 2,000 loans totaling nearly $1 billion in lending support.

Higher Loan Limits — significantly increases maximum loan sizes in top loan programs

The law permanently increased 7(a) and 504 limits from $2 million to $5 million (for manufacturers in 504 loan program, up to $5.5 million).
The law permanently increased microloan limits from $35,000 to $50,000, helping larger entrepreneurs with start-up costs and small business owners in underserved communities.

Alternative Size Standards — more small businesses eligible to get SBA loans

The law expanded the number of small businesses eligible for SBA loans by increasing the alternate size standard to those with less than $15 million in net worth and $5 million in average net income.

Temporary Enhancements to Help with Working Capital, Commercial Real Estate Refinancing

The law increased the maximum amount of SBA Express loans from $350,000 to $1 million (expires 9/27/2011).
In coming months, the law will allow some small businesses to refinance their owner-occupied commercial real estate mortgages into the 504 loan program (expires 9/27/2012).

Dealer Floor Plan Pilot Extension, Expansion

The pilot program (begun 2009) will be extended to 2013. Though the old pilot has expired, the new, larger pilot will be implemented in coming months. This will help small businesses owners who sell cars, RVs, boats, other titleable inventory.

Small Business Intermediary Lending Pilot

In six to twelve months, the law will provide for funding up to $20 million per year in small business loans over the next three years for an intermediary-facilitated loan program targeting small businesses that need loans up to $200,000.

The TSBDC also offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.

Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc

The Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Small Business Jobs Act - The Tax Breaks

2010-10-27T07:07:00.000-07:00

On September. 27, 2010, the Small Business Jobs Act was passed. The new bill extends the SBA loan provisions, tax cuts, and other opportunities in government contracting, exporting, and counseling for small business owners. You can learn about all of the new legislation at http://www.sba.gov/jobsact/. For the purpose of this article we will focus on the tax breaks for small businesses, since they will affect the most businesses.

The eight tax breaks for small businesses contained in the Small Business Jobs Act are as follows:

1. The expensing limit has been expanded to $500,000 for the years 2010 and 2011. This is a large increase over the $250,000 that would have been eligible for expensing under Section 179 for 2010, and only $25,000 for 2011.

2. There is a carryback of general business credits increase from 1 year to 5 years. This allows most small businesses to offset as many as five years of taxes as well as the Alternative Minimum Tax.

3. The accelerated/bonus depreciation in the Recovery Act has been extended through 2010. Bonus depreciation (the additional depreciation is 50% of the basis of the property placed in service) would have expired after December 31, 2009 if it were not for its extension for 2010 in this bill.

4. There will be zero capital gains taxes for those who invest in small businesses before December 31, 2010, and hold for at least five years.

5. There is a temporary increase in deductions for start-up. Entrepreneurs can deduct $10,000 from their taxes for this year. The limit was previously $5,000. These expenses to open up a new business, incurred while you are setting up or researching the business, may include the cost of advertising, travel, market research or training employees prior to opening the business.

6. The act removes cell phone and similar telecommunications equipment from “listed property” classification, thereby relieving it from the listed property rules, and relaxing the rules on their deductibility. This basically means it will be easier to deduct the use of cell phones.

7. There are deductions for health insurance costs for the self-employed for 2010. All self-employed business owners, members of limited liability companies, 2% S-Corporation shareholders who are employees can deduct health insurance costs for themselves and their families on their tax returns. This means that business owners will be allowed the deduction of health insurance premiums on the business tax returns and schedules of the pass-through entities, rather than as adjustments to gross income on Form 1040.

8. There will be limitations on penalties for errors in tax reporting that disproportionately affect small business. Penalties for errors in tax reporting have been based on a fixed dollar amount and will now be on a percentage basis of the error itself.

Almost all of these new tax breaks are for this year only, so make sure to consult your accountant right away. And by the way, this article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. Again, for further information, please consult appropriate professional tax advice from your accountant. We have several in Sumner and surrounding counties.

More Time Management - Importance versus Urgency

2010-10-15T07:02:00.000-07:00

Perhaps one of the simplest, yet most revealing concepts behind time management is importance versus urgency. Important items have a direct impact on your bottom line. They make you money and grow your business. Often, they are not glamorous or even pressing, but will have the most impact on your small business. Urgent items require immediate action, are visible, and often easy to do which gives us a sense of accomplishment. However, they usually have very little impact on our bottom line and can stagnate the growth in a small business.

Let’s take a look at Ava’s Catering Company to see how certain tasks in her business fall into important and urgent categories.

Important, Urgent

• A bid for a very desirable catering event needs to be submitted by the end of this week. This is a quality event and has a quick deadline. There is a tendency to ignore something like this, because the effort needed is heavy and just say “we’ll get it next time”.

Important, not Urgent

• Spending time at food service trade shows and other networking events that can assist in developing relationships with potential clients, other vendors, anyone else that can offer qualified referrals.

Not Important, Urgent

• Ava receives certain phone calls and emails that seem to need immediate reaction. If this is a customer with a specific issue take it, but in usually it is just someone else’s emergency. That call or email can be addressed at the end of the day.

Not Important, Not Urgent

• Facebook – Let me clarify. Facebook is a great marketing tool, it’s free, and becoming increasingly popular. However, just updating the status of your business, can easily send you into a four-hour research session to see “how that guy that was in the office next to yours, at that place you used to work, seven years ago, is doing”. This is fun, but IT IS NOT PRODUCTIVE. Yes, in theory he could become a customer, but be honest, he’s not. You just want to see how many kids he has. Update your business information and go back to work.

Take a look at the previous tasks. Where is most of your time spent? Remember the important ones result in revenue and the others result in stress. Take the time to identify the important tasks and spend your energy on them. The others need to be minimized, delegated, or just plain ignored.

Management Tips for Surviving the Economy

2010-10-01T07:27:00.000-07:00

• Analyze the amount of inventory and other assets you have on hand. While you need products and equipment to make sales, you do not need an excess of either.

• Take this opportunity to focus on tasks that may include professional development and training or research and planning. If it is possible, you might even use this slow period for personal development, which will help you maintain the right attitude, while you begin to practice the other tips mentioned previously.

• High employee productivity is essential in poor economic times. You may need to look at your business and identify “that isn’t in MY job description” attitudes and make adjustments. It often cuts across the grain with small business owners, but surviving with a few employees is better than failing with all employees.

Buzzwords

2010-08-30T06:34:00.000-07:00

On the right you will notice what I consider the be the most annoying buzzwords. If you have any further suggestions for the poll or just like to post your most annoying buzzword, feel free to leave them here in the comments. For inspiration, see below:

http://www.businessbuzzwordbingo.com/bbbingo.html

http://therussler.tripod.com/ling/corporate_buzzwords.html

http://www.buzzwhack.com/buzzcomp/indac.htm

Marketing Tips for Surviving the Economy

2010-08-17T07:23:00.000-07:00

Marketing

• I know that I just said last week that it may be time to cut costs, but this is the area you may need to increase costs. That doesn’t mean to keep marketing with the same methods, but if sales are slow, you may need to actually increase marketing instead of cutting back.

• We have all heard the statistics about how much easier and profitable it is to keep a customer than it is to create a new one. Armed with that knowledge you should consider developing a customer loyalty program that will assist you in these tough times.

• Ask your customers what they want. Consider a customer survey. Internet survey tools like Zoomerang™ or SurveyMonkey™ can be free or very low cost.

• Identify and develop your competitive advantage. Why does the customer want to do business with you? What do you do better than your competition?

Financial Tips for Surviving the Economy

2010-08-10T12:17:00.000-07:00

Financial
· Review your monthly income statement and cash flow statement. You want to look for trends and upcoming problems. If necessary, sit down with your accountant to review these financial statements.
· While increasing income takes a little time, decreasing expenses can be immediate. That doesn’t mean to just make broad cuts across the board. Instead, look for specific fixed expenses you can lower. Odds are that there are some expenses that you haven’t taken a look at in quite some time.
· If you carry an Accounts Receivable, make sure you have a collections policy and follow it. Don’t let customer credit become bad debt that burdens your finances.
· In uncertain economic times, there may be the tendency to pay off debt more rapidly than is required. However, building reserves cash may offer you a level of safety for future needs since the borrowing capacity of most small businesses has declined.

Chaos Management

2010-07-23T14:15:00.000-07:00

Many of the clients I work with have become amateur fire fighters -- not in the literal sense, but in their business. Many business owners spend a disproportionate amount of time redirecting employees, on the phone with vendors and customers, and running errands. In fact, most of these business owners even thrive on it. It gives them a feeling that they are managing controlled chaos, and who doesn’t want to feel like a hero saving the day. Although fire fighting might be fun and make you feel important, in reality, you are spinning your wheels. This type of management usually leads to stagnant growth and disgruntled employees.
In order to avoid this type of management, you should strongly consider following a few basic rules that will allow you to run your business instead of your business running you.

Develop Routines
If you find yourself handling a piece of paper or email several times before being able to make a decision, you need a new routine. Every piece of paper or email that comes into your business should be handled only once, acted upon, and filed. Paper and email should not be shuffled around until the office fairy does something with it. If your desk is covered with paper or your inbox cluttered with old emails, consider cleaning them up and creating routines to prevent this from reoccurring.

Create Clear Responsibilities
Real business management means knowing who is responsible for what. If you have a business where everyone just “pitches in” to get stuff done and everyone does a little of everything, you have a real possibility for chaos. Although it is admirable to have a team atmosphere, you should have very clear job descriptions that describe in detail what everyone should be doing.

Delegate and/or Outsource
This point goes hand-in-hand with the previous point. Repeat after me, “I cannot do it all”. The famous last words of many strong business owners are, if you want something done right, you’ve got to do it yourself. That may only work for the first year or so. After that, it can become counterproductive. Delegating and outsourcing cannot only improve your business’ management, but also improve your revenue. The key to delegating and outsourcing is to find good employees, vendors, accountants, attorneys, and other professional advisors.

Make Business Planning Priority #1
“I’m so busy I don’t have time to plan”. If this is your M.O. take another look at your work style. One of the greatest myths about planning is that it takes more time than it’s worth. Many small business owners spend their time reacting to issues, rather than being proactive. They then wonder why they seem to be spinning their wheels. Successful small business owners spend time every day on business planning. Right now is a good time to take time to create plans to reach your revenue and growth goals.

Do not let chaos management be the way you continue operating your business. Once you start using some of these basic practices, you’ll find yourself running your business instead of it running you.

The Magic Sales Box

2010-07-01T07:06:00.000-07:00

* Disclaimer: I'll make this short and sweet. Having a presence online in today's economy is downright crucial. It's a way for customers to find you, learn about you, and even buy from you. I highly recommend that any business have a website, with someone working diligently on search engine optimization.
Now that I have my disclaimer there, I also want to express the importance of YOU selling your product and service. The internet or "Magic Sales Box", will not do it all, on its own. The reason that I state this (although most small business owners see this as obvious) is that many folks do not want to put in the tireless effort of marketing their business. They feel like if they just get an online presence, the hard will work will be done for them. Many times over, it does not! It is a supplement to other efforts, but that's all.
Think of it like exercising, without changing your diet will have only a moderate affect on your weight. You have to all of the hard stuff.

Target Marketing

2010-06-21T07:22:00.000-07:00

One of my favorite topics with regard to small businesses is target marketing. Target marketing is concentrating your efforts toward the group of people or businesses that will bring you the most revenue. It is the bull's eye at which you aim your marketing efforts. The reason that this is one of my favorite topics, is that so many small business owners have the mindset that everyone is a potential customer, so that is who the target is -- everyone. For example, if I were to ask someone who owns a retail hat store who their target market is, it is not uncommon for me to receive the answer “well I sell hats, so anyone with a head.” While it is true that everyone could be a customer, it is highly unlikely that your customer breakdown will include an even amount of every type of person or business that is out there. It is probably true that 20% of the people or businesses that bring you 80% of your revenue have very common characteristics, such as demographics (personal information such as age, income, occupation, married or single, etc.), psychographics (purchasing preferences and interests such as personality, values, attitudes, interests, or lifestyles) and geographic (location such as home address, business address, etc.) location.

Once you have identified who your target market is, then you can design a specific marketing message catered to that group with similar characteristics.

Let’s say you know your target market is 15 to 25 year-old men who like country music, are frequent hat buyers, and live in rural areas. You can create an advertising message to appeal to those types of buyers. Additionally, you could buy spots in a newspaper or a magazine that appeals to this type of buyer, rather than use advertising that tries to be all things to all people.

Collections for Small Businesses

2010-06-02T06:54:00.000-07:00

In this recent economy, customer budgets have been stretched. As many of you may have discovered, the last person to get paid may be you, the business owner. Although it may be understandable from the customer’s point of view, you are in this slowing economy as well, and the people you owe money to (insurance, rent, loan, payroll) will not care that you have not received all of your money. According to the Commercial Collection Agency Association, the probability of collecting on a bill drops to 70% after 90 days. And it plummets to 23% after a year.

Let’s take a look at some proven collection methods. I’ll warn you there are no silver bullets or magic pills, just good old fashioned proven processes.
· Create payment guidelines and get it in writing – This will create clear expectations of prompt payment. Make sure that the payment guidelines are on your order form, brochure and/or Web site. Also make sure they clearly spell out your terms of sale and payment options. Do not use generic terms, such as “due on receipt” and then not follow through. This will set the wrong example. If you say due on receipt, and the customer doesn’t pay immediately, then penalize them for late payment.
· Review Accounts Receivable reports frequently – Assuming that you have an accounting system in place, you should have an Accounts Receivable report that you can review at least on a weekly basis. This report will tell you what customers are 30, 60, and 90 days late. If you make this analysis a recurring task, just like processing payroll or any other weekly task, you will make it a habit of being informed about collection issues.
· Send a series of reminders – As soon as the payment date is missed, you need to have a system in place that reminds the customer. Using letters, emails, or phone calls will work. You can use software, such as QuickBooks®, to assist you in setting up reminders and even for processing collection letters. Also if you have a late payment charge policy, you need to enforce it each time.
· Be consistent with your collections process – One of the toughest things about staying on top of the collections process is getting too comfortable with the status quo of a tight cash flow. Sometimes you may think it is easier to put the pressure on yourself, your business, and even your family then it is to listen to hard luck stories or to chase deadbeats. But the simple truth is that your business and your stress level will be in much better shape if you are willing to make the tough decisions.
· What to do if all else fails – Many of you know that you will not always win in the collections process and there has to be some type of resolution. You may have to sacrifice at least 50% of the debt to collect anything at all. This may mean that, at some point, you may have to be willing to sue or send the debt to collections. Either option may be costly, but if the debt is significant enough it may well be worth it. Sometimes you may just need to know when enough is enough, and give up on the debt and chalk it up as a lesson learned. I would suggest that should always be your last option

SBA Economic Injury Loans

2010-05-25T06:32:00.000-07:00

For those of you have suffered economically from the recent floods, there are loans available. The SBA Economic Injury Loan is designed to help a business that has suffered substantial economic injury, regardless of physical damage, and is located in adeclared disaster area.

Substantial economic injury is the inability of a business to meet its obligations as they mature and to pay its ordinary and necessary operating expenses. An Economic Injury Loan can help you meet necessary financial obligations that your business could have met had the disaster not occurred. It provides relief from economic injury caused directly by the disaster and permits you to maintain a reasonable working capital position during the period affected by the disaster.

In a nutshell, if you are unable to pay bills, because others owe money or lack of revenue due to the flood damage, this loan can be very helpful. However you should keep in mind that this is a loan, and if your business cannot handle additional debt, this will not be good route.

To apply for this loan online, go to https://disasterloan.sba.gov/ela/Default.aspx.

To simply learn more about the Economic Injury Loan, click the following link:

http://www.sba.gov/services/disasterassistance/businessesofallsizes/economicinjuryloans/index.html

How to Get Your Business Back on Track after a Disaster

2010-05-06T06:46:00.000-07:00

We have definitely had our share of disasters in the Middle Tennessee area over the last few years (tornadoes, ice, drought, flood, etc.). Some of you may even be experts at getting your business back up and running. For those who are new to this, there are a million things running through your mind as you try to decide what to do next. There is no doubt that the next several weeks will be hectic. So the question; where do you begin?

The first thing you have to decide is “what does it take to make my business run”. What are the items you cannot do without? I have identified a list of these “must haves” for most small businesses:

Insurance:
*Your insurance agent will be a busy person for the next several weeks, so do not delay contacting them to inform them of what damages you have. Don’t assume that everything will be covered and make sure to document all of your losses.
Property:
*Make sure your facility is safe and free of water and debris before returning.
*Find an alternate worksite from which you can conduct business.
*If necessary, allow employees to work from home for a period of time. Yes, they may be more distracted at home, but if your workplace is not safe, it is the lesser of two evils.
Records:
*If you have water damage to your computer or laptop, you need to get your hands on another one as soon as possible. You will want to install your programs that you used to run your business, whether that is QuickBooks, Microsoft Outlook, spreadsheets, or any other contact management or industry specific software that you utilized. Once you do that, you can restore your backed up data (this is assuming that you backed up your computer files to something that wasn’t washed away) and get started.
*Gather all of your paper files, wet or not, and identify the processes that may be documented for operating your business from contacting clients, to tracking finances, to distributing your product or service.
Customers:
*Communicate to key customers that you are still operating.
*Use this time to also check on your customers and identify ways that you can support them through this process.
*This will be a difficult time for you financially, but if you carry an Accounts Receivable, you may want to work with several of your customers on payment plans, during this recovery period.
Equipment and inventory:
*Gather any lists of equipment and inventory that is on hand and check for any “unaccounted for” items.
*Order or even borrow any items that you need to operate your business, such as computers, inventory, vehicles, manufacturing, etc.
Employees:
*Locate your employees and make sure that they and their families are okay. If necessary, try to assist them in finding medical care, housing, food, and other necessities before bringing them back to work.
*If all employees are unable to return to work, make sure that you have identified the critical tasks necessary to operate your business and delegate them.
*You may need to modify office rules and procedures for a period of time. Dress codes, rules about children in the office, and restrictions on using telephones for personal business for example, may need to be temporarily disbanded during this recovery period.
*Make sure your employees are ready to come back to work. Exhaustion and lack of sleep can decrease alertness, impair judgment, and make people more vulnerable to accidents and mistakes.
Suppliers:
*Gather a list of all your suppliers. If they are local, they may have the same issues that you are dealing with now, and you may need to make alternate plans for supplies.
*If you are having trouble collecting Accounts Receivable during this period, you may ask your suppliers to work with you on payment plans as well.
With questions regarding SBA Disaster Loans you should visit: https://mail.tsbdc.org/exchweb/bin/redir.asp?URL=http://www.sba.gov/services/disasterassistance/index.html. Generally, SBA Disaster Loans are loans that are made available to help you cover losses that insurance does not cover.

Small Business Loan Workshop Coming Soon!

2010-04-28T11:49:00.000-07:00

The How to Apply for an SBA Community Express Loan Workshop will be held at Volunteer State Community College in the Betty Gibson Building on May 12th, 4:00 – 5:30 p.m.

Are you looking for a small business loan for $5K, $10K or $25K?
Apply for a loan at this FREE workshop!

Register at http://www.tsbdc.org/ under the Training tab.

Learn step-by-step how to apply for the SBA Community Express; Patriot Express & Export Express Loans.
Loans are available in following amounts:
· $5,000, $7,500, $10,000, $12,500, $15,000, $20,000 & $25,000
These loans are SBA-guaranteed and payable over 10 years with no prepayment penalty! This is NOT a credit card loan.
SBA Community Express Loan Program Highlights:
· Loans up to $25,000
· No financial statements or collateral required
WHO: Full-time and part-time businesses are eligible.

IMPORTANT NOTES
Bring the following if you wish to apply for a loan:
Photo copy of your driver’s License or official ID,
Social security number or Evidence of LPRA status if not a citizen
Federal Tax ID number (if applicable), and
Your Business Checkbook.

All partners, principals or co-owners of the business must apply together.
Those with a criminal history or anyone who has defaulted on a government loan including student loans is not eligible. Non-profit businesses are not eligible.

Time to Dust Off the Business Plan

2010-04-21T10:43:00.000-07:00

This is the time of year that a lot of business owners start looking at a vacation from their business. I’m sure that the landscapers think that I am crazy, but for many business owners this is true. And it is understandable too. The kids will be out of school, the weather is nice, and you rationalize that you have the rest of the year to make your revenue goals.

This is also a good time of year to update the business plan that you developed five years ago. It is probably filed away or on a floppy disk somewhere. A business plan should be a work-in-progress. Even successful, growing businesses should maintain a current business plan. It should be a road map for your business to follow. The importance of a business plan is even more significant now, especially in the face of economic uncertainty. A well developed business plan can help you reconnect with your customers, create happier employees, give you Key Performance Indicators (KPIs) to know when things are going well, and most importantly allow you to work on your business, instead of in your business.

I usually hear the argument that an existing business does not need a business plan. Business owners will also give me the example of how they know of a particularly successful business owner that never developed a business plan, so that proves that a business plan is pointless. That is like saying basketball players don’t need any college experience before playing in the NBA, because Kobe Bryant and Kevin Garnett did it, and hey, they’re all-stars. But for every Kobe Bryant and Kevin Garnett there is a C.J. Miles, Ricky Sanchez, James Lang, Korleone Young, Ndudi Ebi, Kwame Brown, Darius Miles, Sebastian Telfair, Jonathan Bender, Leon Smith, and a dozen other kids that we have never heard of that tried the same thing. Chances are you never heard of these guys and if you did it was for the wrong reasons. So the question is, are you a Kobe Bryant or Kevin Garnett of your industry? If not it may be time to dust off the ole business plan.

If you are interested in jump starting your business plan you can use a business plan outline and websites for research on our site, http://www.volstate.edu/TSBDC/Documents/Business%20Plan%20Outline.pdf.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

More on Small Business Loans - The 5 C's of Credit

2010-04-13T11:28:00.000-07:00

Below are the 5 C's of credit that lenders use when they consider a loan.

Capacity to repay is the most important of the five C's. The lender will want to know exactly how you intend to repay the loan, while considering your past credit history and cash flow.

Capital is the money that you will personally invest in the business. Lenders usually want at least a 10%-20% investment from you. This indicates to them that you are willing to risk some of your own money.

Collateral or guarantees are forms of security you can provide the lender in case the loan is defaulted on. This means that the remaining 90%-80% of the loan will need to have something to collateralize or guarantee it for you. This is usually real estate or a fixed asset.

Conditions is what the money will be used for. Will the money be used for working capital, additional equipment, or inventory? The lender also will consider the local economic climate and conditions both within your industry and in other industries that could affect your business.

Character is the general impression you make on the lender. This is made up of your experience in running a business, in this industry and the "gut" feeling they have about you.

Small Business Loans

2010-03-29T06:31:00.000-07:00

Right now lending is as tight as it has ever been, however, it is not impossible to get a loan. We have had several clients obtain financing over the past year, but they were more than qualified. I often get questions about how to get a small business loan. Below is what a bank is commonly looking for, especially in a start up business.

Obtain capital/loan if necessary. You will need the following:
1. A complete business plan that discusses how this loan will positively benefit your business.
2. A sources and uses list:
*How much the entire project will cost.
*How much of your own money you are putting into the project (20-25%).
*How much money you need to borrow.
*Provide a list of how the funds will be used (be specific).
3. A completed personal financial statement.
4. Two to three years of tax returns.
5. Cash flow projections for one to three years.
6. If applicable: Copy of leases, purchase and sales agreements, partnership agreements.
7. A completed loan application (provided by the lender).
Any other information that you feel may be helpful to the lender.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Break-even example

2010-03-15T07:22:00.000-07:00

Let’s take a look at the example below to calculate break-even for Bill’s Lemonade Stand:

Fixed Costs=(Rent, insurance, marketing) $300
Gross Margin % (Covers cost of lemons, water, sugar) 30% (for every $.10 sale $.07 covers immediate costs)
Break-Even, (FC)/(GM)%, $300/30% or .30 = $1,000

So how many sales will the lemonade stand have to make to break-even?

Divide the break-even point by the unit cost. In this case the break-even is $1,000 and each cup of lemonade is sold for only $.10. $1,000/$.10 = 10,000

This means it will take 10,000 cups of lemonade per month to break even. This will now equip Bill with the information he needs to be successful in making business decisions. It sounds like Bill may want to raise the price a little.

If you would like to take a more in depth look at calculating your break-even use the link below. You will be able to identify the number of units that it will take to break-even. Units could be the number of products or services you have to sell to break-even. http://www.dinkytown.net/java/BreakEven.html

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Break-even for Small Businesses

2010-03-08T07:22:00.000-08:00

What is break-even? I could give you a multitude of different definitions and formulas that could make your head spin. However, I think I will opt for the down-to-earth definition. Break-even is the point at which you are not making any money and you are not losing any money. You are simply breaking even.

Knowing your break-even point is one of the most important pieces of information that a business owner should know. Whenever I ask someone if they know what their break-even is, I always get the answer of “I have a ballpark idea of what it is”. This is not good enough to make important decisions in your business such as hiring additional personnel, buying a piece of equipment, or offering a new product or service. You need to know exactly how much money it takes to break-even.

There are a variety of different ways to calculate your break-even point. For the sake of this blog, let’s use the simplest one, which is:

Breakeven = Fixed Costs (FC)/Gross Margin (GM)%

Fixed costs are any costs that your business incurs whether you make money or not, such as, rent, utilities, insurance, taxes, office expenses, etc. Gross margin percentage is what you make after pay immediate expenses associated with the product or service you offer. This could be materials to make the product, payroll for the service, and even sales commissions.

Next week we'll look at an example of how to calculate break-even. And when I say we, I mean me, my wife, and the one other random person that may read this.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Cash Flow for Small Businesses

2010-02-25T06:37:00.000-08:00

One of the big issues facing small businesses is trying to figure out where your money is going. Many times you can show a profit on an income statement, but the cash flow (real money in, real money out) will be almost negative. Here's a tip. The cash flow CAN NOT be negative. When it hits the red line, it is usually game over, because there is no money to pay the bills.

Don't ever think you're too busy making sales and working in your business to worry about your cash flow. This way of thinking is the same as burying your head in the sand and just hoping everything will work itself out.

Click here, http://www.volstate.edu/TSBDC/tools.php, for a financial worksheet to get you started.

Remember, your cash flow is not the same as your profits. You can have a profitable business, but a negative cash flow. Prepare a monthly cash flow statement to ensure that you don't get caught unexpectedly without enough cash to handle your day-to-day operations.

Do not hesitate to call or email the TSBDC for assistance in putting together your cash flow.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Interviewing

2010-02-15T11:32:00.000-08:00

One question that I get quite a bit is, "How can I make sure that someone can do, what they say they can do, during an interview?". Unless you can get them to agree to a polygraph test, you will have to rely on your own sleuthing skills. One way I have found to be successful for the small business owner is to ask behavioral style interview questions. Behavioral style interview questions ask the candidate how they have handled a particular situation in the past. You may ask for a specific example as well. Instead of asking “how do you handle stressful situations”, ask “how did you handle a stressful situation at the last company you worked for and what was the result”. This prevents elaborate, made-up answers that may or may not have any actual substance to them. What you are looking for is someone who has experience with the skill set that you are seeking. To find more examples of behavioral style interview questions review this link http://career.berkeley.edu/Article/010928a.stm.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Data Backup for Your Small Business

2010-02-09T07:34:00.000-08:00

Eventually, almost every computer crashes and takes your data with it. Data files such as, QuickBooks®, Microsoft® files (Outlook, Word, Excel, Access, PowerPoint), pictures, industry specific software databases, or anything else could be lost forever. This can be detrimental to any size business. You need to make an effort to back you data up daily. You can use a variety of methods ranging from something as simple as a DVD backup to something a little more substantial, such as an external hard drive. A flash drive is convenient and easy to use, but not exactly a long term solution.

If you are looking to use an online service and do not have a substantial amount of data, try using a free or inexpensive service to begin with. Consumer Reports suggests the data-backup service Mozy (http://mozy.com/). They say it offers the most features and control, scheduling backups is easy, and customer service is quick and helpful. The service is free for up to 2GB of data, and $4.95 per month gets you unlimited storage. Another service, Xdrive (http://xdrive.com/) lets you store up to 5GB for free; $9.95 per month gets you 50GB.

I’ve always said that the best option is the one that you will personally remember to use. If you feel you need additional assistance, it is always a good idea to consult an I.T. professional.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Time Management Tools

2010-02-02T12:31:00.000-08:00

It usually seems that something is always stealing the business owner's time. It's time to enlist some help. The best way to embrace time management is to use one of the following tools:

1. A Day-Timer® - This uses a proven system that is inexpensive and allows you to easily prioritize tasks and document important items.
2. Microsoft Outlook® - This software is a robust calendar, task list, and contact database all rolled into one. It gives you the ability to set electronic reminders that will keep you on task, keep track of all of your tasks and allow you to prioritize them, and keep up with everything that you do with a contact.
3. A PDA/Cell Phone – You can use virtually any pda or cell phone to keep contacts and to set reminders of important activities. In many cases a pda or cell phone can even sync up with Microsoft Outlook® to keep you on track on the road or at your desk.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Organization Chart

2010-01-25T09:03:00.000-08:00

All of the tasks and activities that you identify to reach goals need to be assigned to someone in your business. The best way to do this is with an organizational chart. Even the smallest businesses should have an organizational chart. An organizational chart allows you to not only identify what departments your organization has, but also to identify what departments that you will need to create. You can then begin to plug in existing employees. Lastly assign tasks to each of the existing employees and you will then get a good idea of how large your organization will have to grow to reach your business goals.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Corporate Buzzwords vs Small Business Buzzwords

2009-12-08T06:34:00.000-08:00

Corporate Buzzwords
One of the benefits of being a small business owner, is that you get to avoid some of the most commonly used corporate buzzwords during the course your work day. For example:

Thirty Thousand Foot View: The big picture.
At the End of the Day: The final result.
Game changer: Do something different.
Value-add: If we spend money or change processes, something good needs to happen.

"At the end of the day, we need to look at this from a thirty thousand foot view to see if this new product will be a game changer and give us a real value-add for our customers."

Small Business Buzzwords
The realm of buzzwords could go on and on. In fact, they do go on and on. One thing that I have noticed over the last couple of years is that some of the corporate jargon has slipped in to the small business world. They are simpler words, but they are on their way to becoming as annoying. For example:

Opportunity: Give me the chance to sell you something.
Partner: Actually sell you something and maybe vice-versa.
Resources: Money, assets, time.
Leverage: Take those resources and use them.

"I would like to meet with you to see if we had the opportunity to partner together and leverage our resources."

I'm not saying that you shouldn't massage the English language once in a while, especially if you need to be tactful or even creative. Just be aware that the person or audience you are addressing is probably aware of possible, hidden meanings. If you want to sell someone something, don't be afraid to tell them how it will make their life easier, especially if it will. You don't have to bowl them over, but please don't try to trick them into thinking you are just having a cup of coffee either. That will kill a potential "partnership" and "opportunity".

To learn more about buzzwords, check out these websites:

http://www.businessbuzzwordbingo.com/bbbingo.html
http://therussler.tripod.com/ling/corporate_buzzwords.html
http://www.buzzwhack.com/buzzcomp/indac.htm

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Marketing: 3 Things a Day

2009-10-19T07:11:00.000-07:00

One of my favorite quotes from author John Maxwell is "The whole idea of motivation is a trap. Forget motivation. Just do it. Exercise, lose weight, test your blood sugar, or whatever. Do it without motivation. And then, guess what. After you start doing the thing, that’s when the motivation comes and makes it easy for you to keep on doing it. "

The reason I find it appropriate for marketing is because so many small business owners are looking for some type of encouragement to get them out the door and sell their product or service. Don't worry about the motivation. Just get out there and do something! Once you start doing it on a regular basis, it will become habit, and then the motivation will come.

To get started write down at least three marketing activities that you can do every day to attract the potential customer. Use a calendar, your PDA/cell phone, or a string on your finger if necessary to remember to do these three things, but the key is to do them! I would suggest thinking about who your best type of customer is and implement marketing actions to get that same type of customer again. If you are completely befuddled as to what to do, then try any of the following activities:

* Knock on doors, call, email, or send direct mail to prospective customers.

* Attend at least two networking events per week.

* Do a press release.

* Give away free samples or give away your product or service on a trial basis.

* Call existing clients and ask for more work or referrals.

* Put a magnet on your car.

* Partner with another business, in a different industry that has similar customers, and send each other referrals.

* Offer to do any type of speech or seminar on a specific topic (not a sales pitch) for free.

Focus Group Study

2009-09-24T10:57:00.000-07:00

Once you have identified who your target market is, you can then develop a focus group study. Focus groups provide tremendous opportunities to evaluate your products, services, or even new ideas. Basically, focus groups are interviews, of 6-10 people at the same time in the same group. You can get a great deal of information during a focus group study. You can perform a focus group study in five steps.
1. Prepare for the Focus Group Study – Invite people to the focus group that belong to your target market. It is usually very helpful to provide an incentive for them to spend an hour or longer of their time, such as discounts or a free meal.
2. Develop Questions – Create five or six questions that will facilitate a discussion on the topic you want to cover with your target market. Make sure that you can quantify the results and that you don’t just have a bunch of open-ended answers.
3. Plan the Session – Have a clear agenda, refreshments, clear ground rules (don’t let one person dominate the study), and have it at a time that is suitable for those involved.
4. Facilitate the Session – Introduce everyone, make sure everyone is on the same page regarding the agenda, get even participation, and make sure to take plenty of notes.
5. Evaluate the Results – It is important to tally the results and to not let your “gut” react to things you heard. Then create a plan to make changes to your business according to the results of the session.
If you would like a Focus Group Study template, simply email me and I will be happy to send you one.

Small Business Resources in the News

2009-08-28T06:17:00.000-07:00

News Channel 5 just did a story about small business resources available in the Middle Tennessee area that featured the Vol State Tennessee Small Business Development Center and Perkins Drugs in Gallatin, TN.

http://www.newschannel5.com/Global/story.asp?S=11006203

Customer Loyalty Program

2009-08-17T12:29:00.000-07:00

We have all heard the statistics on how much easier it is to keep a customer than it is to create a new customer. Well here are some steps for creating a customer loyalty program that will allow you to keep your customers and create new repeat customers.

Track every possible customer. Get the names, phone numbers addresses, and especially email addresses of the customers you deal with on a regular basis. There are several good contact management programs available, such as Microsoft Outlook, that many folks have already. Then ask them to join your customer loyalty program and make the program available at every point-of-sale.
Give your repeat customers special offers not available to the general public. Either give them a discount, special buying terms, or something for free (even if it is something small).
Let your repeat customers get the first shot at new products and/or services. This will make them feel special and it will allow you to test the product or service before offering it to the general public.
Tell them thank you! This doesn't cost anything! Simply send them an email or if you really want to get into this, pick up the phone or write a personal letter. Actually hand write it the letter. Nobody does that anymore and people love it.
Be creative when deciding how create loyalty. Nobody knows your customers better than you. Also, don't be afraid to ask them what they want. Makes life easier.
Lastly, do not make the rules for joining your program difficult. If there are too many rules to joining, the reward system could end up being more trouble than it is worth.

Small Business Grants....

2009-07-23T12:54:00.000-07:00

Or as I like to call them unicorns. Small business grants have always been a hot topic, especially now. As stimulus money is being distributed, we wonder, what about me? Then guess what? We see these friendly folks on tv (usually on late at night) telling us about all of this "free" money being made available to you! You want it, right? Well of course you do! After all it's really your money to begin with. All you have to do, is send them $30-$300 to get the ball rolling. Oh by the way, do not ever, ever, ever, ever, ever give someone money up-front for something that is supposed to be FREE.

In reality getting a small business grant to start or expand your business isn't very likely. This is why I make the comparison to unicorns. See, if we had to draw a picture of a unicorn, most of us could do it. If you thought long and hard about it, I'll bet you could even think of a friend (albeit a childhood friend) that claims to have once seen a unicorn. But when it gets right down to it, you have never actually come face-to-face with a unicorn. The same goes with a small business grant. Sure they may be out there somewhere, but the only ones that I have come across are for non-profits, educational institutions, government projects, and even for workforce development training, but not to start or expand a small business. That doesn't mean they don't exist, but trying to locate one might be as worthwhile as trying to find a horse with a horn sticking out of his head.

You may be better served to learn more about the updated SBA lending programs that are part of the 2009 Recovery Act, http://sba.gov/recovery/index.html, or sit down with your local TSBDC counselor, SCORE counselor, CPA, banker, or anyone else that can review your financials and help you find the light at the end of the tunnel.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Do your own cash flow projection

2009-07-07T08:44:00.000-07:00

One of the recurring issues that I see from clients is the “I seem to be making money, but don’t have any money” scenario. This is not uncommon. One of the biggest issues small businesses face is managing their cash flow. To many entrepreneurs, it is also one of the more intimidating aspects of a business. Cash flow is different than just looking at a profit and loss statement. Cash flow statements show money coming in the business and money going out of the business, in real time. The best way to find out where your money is going is to put together a cash flow projection.
Below is a link to our Business Tools. One of the tools is a financial worksheet that you can use to create a cash flow projection. Simply fill out the yellow fields in the “income statement” tab and it will auto calculate the cash flow projection. If you need any help in doing this, give me a call or email.
http://www.volstate.edu/tsbdc/tools.html

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Consider using automatic drafts or credit card transactions

2009-06-15T08:32:00.000-07:00

Instead of carrying an accounts receivable, you may want to consider using automatic drafts from the customer’s bank account or use automatic credit card transactions. You can set up payments on a certain date or on a recurring basis. You will incur some costs to get this set up and may even incur costs each time the transaction occurs, however, it may be well worth it in the long run.

Let's take a Day Care for example.

(pwease don't kick us out, we're wittle)

If you have a few customers who are consistently late, you could have serious cash flow issues. The insurance, lease, and payroll won’t wait for these delinquent customers to pay you and you feel like the bad guy each time you have to remind your customer that Little Johnny’s and Little Susie's care isn’t free. If you set up an automatic draft out of the customer’s account for each Monday, you could solve that collections issue. You can make it mandatory for all new customers and slowly implement it for your existing customer base.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.
Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc
The Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.