The Virginia Department of Business Assistance partnered with the Franklin County Chamber of Commerce, West Piedmont Business Development Center, the Franklin Center and Longwood Small Business Development Center to conduct a workshop focused on steps to starting and growing a business in Virginia.

1. Rocky Mount, VA
May 12, 2010

2. Are you sure?

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

4. An Idea?
Drive?
Identified
Market Need?

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

6. Focused?
Goal & Objective?
A successful
enterprise

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

9. Small Business in
Virginia
 Small Businesses constitute
99% of all Virginia businesses.
 Small Businesses create over
60-80% of all new jobs.
 Small Businesses account for
half of the Commonwealth of
Virginia’s contribution to the
U.S. Gross Domestic Product -
a whopping $160 billion.
Virginia is for Business Lovers

10. Virginia is for Business Lovers
• Virginia ranked #1 state for business by
Forbes.com last four years.
• Ranked #1 most business friendly state by
Pollina Corporate Real Estate, Inc. last two years.
• Named #1 best states for business by CNBC.
Virginia is for Business Lovers
Ask VBIC = 866-
248-8814

11. How to Start and Operate
A Business

12. HOW TO START AND
OPERATE
A SMALL BUSINESS
By
Dick Ephgrave
Director, Longwood University Small
Business Development Center,
Martinsville, VA

13. What is the SBDC?
• Small Business Development Center
• VSBDC Mission – To foster small
business success and grow Virginia’s
economy
• Vision – To be the small business
resource of first choice in Virginia
Where business comes to talk business.

14. SBDC’s Goals
• Increase new business success rate
• Increase client’s revenue and
profitability (new and existing
businesses)
• Assist existing businesses to grow by
creating and retaining jobs, and
increasing capital investments in the
business
Where business comes to talk business.

15. How the SBDC can Benefit you
Through one-on-one,
Confidential and FREE Counseling,
the SBDC can help you with…
• Basic Business Information for start-ups as
well as existing businesses
• Business Planning
• Training/Workshops- variety of topics
• Networking Assistance
• Basics of Navigating the financial process
• Financial Analysis of your business
• Marketing Ideas and Plans
• Permits, Licenses and taxes
• ETC
Where business comes to talk business.

16. LEGAL ENTITIES
LEGAL STRUCTURES FOR A
SMALL BUSINESS
– SOLE PROPRIETORSHIP
– PARTNERSHIP
– LIMITED PARTNERSHIP
– C-CORPORATION
– S-CORPORATION
– LIMITED LIABILITY COMPANY

17. LEGAL ENTITIES
FACTORS TO CONSIDER:
SIZE & NATURE OF BUSINESS
EASE OF FORMATION
LEVEL OF CONTROL
LIABILITY RISKS
TAX IMPLICATIONS
CONTINUATON/GROWTH POTENTIAL
DISSOLUTION ISSUES
Consider talking to an accountant/attorney
before you decide.

18. Why do I need a Business Plan?
• To develop your own plan (roadmap)
for YOUR Business idea.
• To determine if the business idea is
financially feasible.
• To seek financing from a bank, SBA,
and/or private investors.
• To provide you with a management tool
• To give you an objective view of your
business idea
Where business comes to talk business.

19. What goes into a Business Plan?
• Executive Summary
• Table of Contents (optional)
• Description of the Business
• Description of Products and/or Services
• Marketing Plan/Advertising
• Industry Analysis
• Customers
• Competition Analysis
• Location
• Suppliers/Subcontractors
• Organization and Management
• Financial Plan
Where business comes to talk business.

20. Business Licence & Registration (7-Steps)
• One - Determine entity
• Two - State Corporation Commission
• Three - IRS Forms - EIN
• Four - Unemployment taxes – Va
Employment Commission
• Five - Registration – Va Dept. of taxation
• Six - Local license/tax with local
commissioner of the Revenue/Town
Administrator
• Seven - Other State Agencies for
Licenses/Permits for professionals
Where business comes to talk business.

21. Pricing Structure
• Margin based
• Income based
• Competitive Based
• Image Based
• Volume based
• Testing based
From “hypergrow your business” by Curtis Clinkinbeard
Where business comes to talk business.

22. VSBDC Office
Dick Ephgrave, Director
Longwood Small Business Development Center
115 Broad Street, PO Box 709
Martinsville, VA 24114
Phone: 276-632-4462
E-mail: ephgraverg@longwood.edu

23. Turn to SCORE Counselors for
Small Business Advice
Live Your Dream. SCORE Can Help.

24. “Counselors to America’s Small Business”
Live Your Dream. SCORE Can Help.
SCORE is a national nonprofit association.
SCORE’s mission is to provide small
business counseling and training to help
America’s entrepreneurs succeed.
 Local business workshops and seminars
 Face-to-face counseling in 389 offices
 Online counseling www.score.org
 Free and confidential business advice
for entrepreneurs

25. Growing Your
Business/Marketing
Strategies

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

27. • Virginia Tourism Corporation Overview
• Tourism Business Opportunities
• Marketing Your Small Business

28. • 19.2 billion in revenue
• supported 210,620 jobs
• provided $1.28 billion in
state and local tax revenue
Impact of Tourism in VA - 2008

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

32. • Planning Assistance
• Marketing Guidance
• Workshops
• Marketing/Advertising
Benefits
Business Assistance

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

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

35. • Marketing Leverage Program
Funding

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

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

38. •Bed & Breakfast Inns
•Cabins and Cottages
•Lodges
•Campgrounds
•Horse Campgrounds
•Horse Stables/Barns
•House Boats
•Green Lodging
Unique Lodging Opportunities

39. •Music/Theater Venues
•Artisan Studios/Galleries
•Heritage Sites
•Tea Rooms
•Breweries/Pubs
•Eclectic Restaurants
•Shopping
•Spas
Attractions

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

41. • Visit www.vatc.org & www.virginia.org
• Sign up for the Dashboard e-newsletter
• Attend at VTC Help Desk event
• Establish relationships with all VTC divisions –
tap into our services (i.e. marketing, advertising,
research, etc.)
Learn More About VTC Services

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

43. Can you answer these
two questions?
• What is Marketing?
• What is the difference between Marketing and
Advertising?

44. 6 Questions You Should Answer
• What are you trying to accomplish?
• Who is your target audience?
• What message will move your audience?
• What vehicles do you have to deliver the message?
• What are your resources?
• How do you measure your performance/success?
Marketing Plan

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

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

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

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

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

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

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

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

53. Virginia’s Recent Ad Campaign

54. Traditional Methods
• Direct Mail
• Sales/Promotions
• Referrals
• Phone Calls
Marketing Tips

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

56. Customer Service
• Train and Empower Staff
• Gauge Performance
• Have Customer Service Plan (Goals, Objectives)
Marketing Tips

57. Electronic Marketing
• Website
• E-mail
• E-newsletters
• E-ads
Marketing Tips

58. Targeting Niches &
Groups By Interest
• Traditional Music (Crooked Road)
• Cultural Heritage (Coal Heritage Trail)
• Anglers (Fish Virginia First)
• Outdoor Enthusiasts
• Weddings/Meetings/Group Tours
Marketing Tips

59. Social Media
Marketing Tips

60. Public
Relations
Marketing Tips

61. • Determine Ways to Stand Out /Be Unique
• Be Creative
• Have Fun!
Marketing Tips

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

63. Financing & Managing
Resources

64. Helpful Hints for
Financing
Your Business
Harvey Brookins
Business Banking
© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.

65. Helpful Hint #1
Get Your Financial House In Order
 Obtain a copy of your personal credit report.
• Check for any inaccuracies or mistakes.
• Make certain that all accounts are current and there are no
outstanding judgments or liens.
• If there is any derogatory information, be proactive and prepare to
explain the problems and why the problem is not likely to occur
again.
 Gather personal and/or business records
• For the past three years, including:
• Tax returns, financial statements with schedules and
attachments, and interim year-to-date financial statements.
• Any other financial documents that might help a lender.
• Neatly photocopy all of the documents and prepare them for your
presentation.
© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
65

66. Helpful Hint #2
Understand What Your Lender is looking for
 Be specific in what you are asking for
• Know how much you need
• Be prepared to support all costs with estimates, invoices, or
contracts
• Never tell a lender that you want to borrow as much money as
possible.
 Primary source of repayment
• Be able to demonstrate how you will pay back the loan
• Debt Service Coverage = Earnings before Interest, Taxes, and
Depreciation / Total Debt Service
• Debt to Income= Debt service / Income available to service
debt
 Secondary source of repayment (back up plan)
• Be prepared to be able to demonstrate how your lender will be
paid back if income falls short
• Be prepared to have guarantors and possible collateral
© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
66

67. Helpful Hint #3
Recognize Your Strengths And Weaknesses
 Bank underwriters are paid to identify risk
• Business owners tend to be optimistic
• Be prepared for scrutiny
• Address your strengths and challenges realistically & honestly
 Most common weaknesses lenders find are:
• Inability to demonstrate repayment ability
• Insufficient collateral
• Lack of management experience
• Insufficient cash injection
• Poor personal credit
 Don't get scared; just get prepared
• Depending on the severity of any particular weakness, you can
often overcome it if you are prepared with a particularly
noteworthy and compensating strength.
© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
67

68. Sources of Financing
 Credit Cards
o Most expensive
o Credit lines may be cut unexpectedly
o Most risk
 Personal Savings
o Lowest expense
o Lowest risk
o Do not use all of your savings for start up costs
 Bank financing
o Low cost
o Shorter term
o Higher equity requirements
 Small Business Administration guaranteed loans
o Low cost
o Longer terms
o Reduced equity requirements
o Lower risk to partner Banks
o Multiple plans to address real estate, equipment, and working capital
needs
 Non-profit community lenders
© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
68

69. Why NOW is the Best Time EVER to get a
SBA Loan?
 More companies than ever are eligible
 Tangible net worth <$8.5MM
 Net profits <$3MM in each of last two years
 Transaction costs are at an all time low
 SBA has waived the guarantee fee – usually ~2 points
 Interest rates are at all time lows
 Congress is now acting to increase lending limits,
waive fees, and bolster lending!
© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
69

70. Advantages to SBA Loans
 Lower down payment
 Up to 90% financing on Owner Occupied Real Estate
 Up to 85% financing on Business Acquisition
 Up to 90% financing on Partner Buy Out
 Longer amortization
 20 – 25 Year Term on Owner Occupied Real Estate
 10 Year Term on Business Acquisition or Refinance
 Can lend with collateral shortfall
 SBA does not have specific LTV
 Must take “All available collateral”
© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
70

71. Types of Deals Financed
 Acquisition of Owner Occupied Real Estate
 Financing available up to $9MM
 Refinance of Existing Debt
 Up to $2MM
 Must cut payments by 10% or more
 Business Acquisition
 Individual or corporate buyers
 Partner or Management Buy-Outs
 Loans up to $1.75MM
 Start Ups
 Require 30% equity
© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
71

72. Why Wells Fargo SBA Lending
 Largest lender in United States
 Closed over $900MM in 2009 – three times nearest
competitor
 Experienced Lenders and Underwriters
 Preferred SBA Lender
 Growing while others contract
 2010 Goal - $1.2B
 It’s a marathon not a sprint
 We don’t sell our loans
© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
72

73. Harvey Brookins
Business Banking
Wachovia Bank
(540) 563-7612
Harvey.Brookins@Wachovia.com
© 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.

74. A regional business incubator serving
the City of Martinsville, Henry,
Patrick and Franklin Counties

75. What is Business Incubation?
 Business support process that accelerates the
successful development of start-up companies by
providing entrepreneurs with an array of targeted
resources and services
 A business incubator’s main goal is to produce
successful firms that will leave the program financially
viable and freestanding

76. Services
 Favorable Rental Rates
 Mentoring Services
 Broad Band Internet Access
 Shared Resources
 Conference and training rooms
 Shared receptionist
 Business equipment
 "Virtual Incubator" Available

77. Benefits
 Financial, professional, and technical services
assistance
 Access to facilities and equipment not otherwise
available
 Increased visibility
 Environment where small businesses can share
experiences and reduce the risks involved in business
startup
 87% of incubator graduates succeed!

78. WPBDC
 23,500 square foot facility
in Uptown Martinsville
 16 Tenants
 3 Virtual tenants
 15 Graduates
 In 2009, $13+ million in
tenant revenue

79. Questions?
Tiffani Underwood
Executive Director
West Piedmont Business Development Center
22 E. Church St.
Martinsville, VA 24112
276.403.5085
tunderwood@wpbdc.org

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

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

82. Ask VBIC = 866-
248-8814

83. Business Information Services
To help businesses get started and to grow.
Formation Assistance
 Virginia Business Information Center (VBIC) 1-866-248-8814
Bridges the 26 state agencies, over 100 programs and over 300
forms that may touch a Virginia business
Virginia Central Business Portal
(www.business.virginia.gov)
Covers registration, taxation, licensing
Interactive Business Plan CD
5 Step process to a business plan
 Entrepreneur Express Events
250 Events – 8,000 Trained

84. Virginia’s Business One Stop
Are you starting a business?
Virginia’s Business One Stop system can help
Winner of the you determine your business formation requirements and can
2009 pre-fill your business registration forms.
Governor's
Technology
Visit http://www.virginia.gov/bos/index.html to
Awards
access the Business One Stop System.
Create a Business One Stop account.
Answer a few brief questions about your business.
Receive a list of action items and pre-filled business
registration forms.
Questions? Contact the Virginia Business
Information Center
1-866-248-8814 (804) 371-0438
vbic@vdba.virginia.gov

85. Ask VBIC = 866-
248-8814

86. Growing Your $ales - State
 Governor’s Executive
Order 33
 $5 billion market
 Access to buyers from 171 state
agencies
 Additional $5 billion from local
governments
 575 localities using eVA system.
 Small Business Goal – 40%
 Over 44,994 registered suppliers
 Over 13,065 participating
buyers
Ask VBIC = 866-
248-8814

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

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

89. Entrepreneur Workshops
• Launched October 2006
• Partnership with Service
Providers and localities
• Provide information on
available resources to start
and grow a business
• Statewide Program
• Free – ½ Day Session
• Over 8,000 reached
• www.vastartup.org

90. Growing Your $ales Workshops
 Business Sales Growth Program
 Market Research and Expansion
 Financing
 Growth Management
 Partnered events for SWAM certification and
eVA registration
 Networking of businesses and decision-
makers

91. Social Media Workshops
You-Link-Twit-Face
Upcoming Events:
•May 18 – Galax
•June 10 – Washington County

92. Virginia Jobs
Investment Program
• Workforce recruiting and training
– Create minimum 25 net new jobs within 12 months and
capital investment of at least $1,000,000
– Minimum entry-level wage of $10.00/hr required. Only full-
time jobs are eligible.
• Small business workforce recruiting and training
– 250 employees or less, hiring at least 5 new full time
employees within 12 months of operation and capital
investment of at least $100,000
– Minimum entry-level wage of $10.00/hr required. Only full-
time jobs are eligible.
• Retraining
– Small businesses that are retooling and installing new
technologies
– Company must retrain minimum 10 full-time employees.

93. Financing Programs
• Direct Lending: In partnership with banks and other
lenders, we provide direct loans in economic
development transactions. We also provide direct
loans under specific programs designed to promote
environmental stewardship and assist licensed
daycare centers and family home providers.
• Indirect Lending: We provide loan guarantees or
other types of credit enhancements to commercial
banks in order to increase access to capital for
businesses.
• Conduit Financing: We are the statewide conduit
issuer of tax-exempt industrial development bonds
for manufacturers and 501c3 organizations.

94. The VSBFA Does Not Give…
• Grants
• Loans or guaranties of loans without
collateral
• Loans or guaranties of loans without
personal guaranties from all significant
owners

95. OTHER AVAILABLE RESOURCES
• Virginia Department of Labor – Apprenticeship Program
– Combination of on-the-job training and classroom instruction.
– Advantage of skilled workforce and reduced turnover.
– http://www.doli.virginia.gov
• Virginia Department of Agriculture & Consumer Affairs
– Virginia’s Finest Trademark = Marketing program that promotes foods and
foods products grown in Virginia.
– Facilitates expansion of agricultural businesses.
http://www.vdacs.virginia.gov

96. OTHER AVAILABLE RESOURCES
Virginia Economic Bridge, Inc.
– Non-profit organization to promote the economic vitality of
SWVA and the Commonwealth.
– Virginia’s Business Pipeline – Online searchable database
of more than 24,000 Virginia based companies, business to
business marketing & RFP resource
www.VirginiaBusiness.org
– Virginia’s Linked Workforce Showcase – Designed to create
business partnerships yielding contracts between SWVA
and Northern Virginia by connecting companies in specific
industry sectors.
www.LinkedWorkforceShowcase.org

97. Starting and Growing a Business
• Business Formation Assistance
– Small Business Development Center Network = www.virginiasbdc.org
– SCORE = www.score.org
– Virginia Business Information Center = 866-248-8814
– Virginia Central Business Portal = www.business.virginia.gov
– Virginia Business Incubator Association = http://www.vbia.org/

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

99. Financing Resources
• Virginia Small Business Financing Authority =
www.vdba.virginia.gov
• Small Business Development Center =
www.virginiasbdc.org
• Small Business Administration = www.sba.gov
• Local Economic Development Office or Chamber of
Commerce

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

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

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

105. CONTACTS
• Sandy Ratliff, Virginia Department of Business Assistance
= 276‐676‐3768 or VBIC = 866‐248‐8814
• Dick Ephgrave, Longwood SBDC = 276‐632‐4462
• Randy Rose, Virginia Tourism Corporation = 276‐988‐
6067
• Harvey Brookins, Wachovia Bank = 540‐563‐7612
• John Hunter, SCORE = 540‐857‐2834
• Janie Hopkins – Franklin County Chamber of Commerce =
540‐483‐9542
• Tiffani Underwood, West Piedmont Business Dev. Center
= 276‐638‐2523
• Carl Mitchell, Virginia Economic Bridge = 540‐ 731‐6800