5. 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
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
6. How to Start and Operate
A Business
How to Start and Operate A
Business
Our Team
Dr. Dallas Garrett-SBDC Director
Bernie Deck-Carroll County Business Development Director
Mandy Archer-SBDC Administrative Assistant
Sandy West-Financial Analyst
Kenneth McFadyen-BRCEDA Entrepreneurial and Business Development Director
7. Who is the SBDC
• Small Business Development Center
• VSBDC Mission – To Improve new and existing
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.
SBDC’s Goals
• Assist clients to create and retain jobs
• Increase client’s revenue and
profitability
• Increase capital investments and
efficiency in client business
• Increase business success rate and
• Continue as a recognized contributor to
Virginia’s economic development
Where business comes to talk business.
8. How the SBDC can Benefit you
Through one-on-one Counseling, the SBDC can help you
with the following processes…
• Discuss your Ideas in a confidential setting-There are no bad or
silly idea-Some ideas need a little adjusting
• Help you understand the Business Planning process and provide
whatever assistance you need to complete your plan
• Guide you through the process providing help along the way
• Help you determine realistic financial projections and provide
marketing ideas
• Suggest workshops that you might attend to help you start your
business off right
• Suggest format for your plan to help you secure funding
• Help you complete the loan application
• Provide sources of business financing
• Arrange meetings with funding sources at Crossroads
• Help you improve your credit report, when necessary and help
with Permits, Licenses and taxes
When you are successful we all benefit
Where business comes to talk business.
Business Planning & Strategy
• Help with Business Structure
• Explain pros/cons of different structures
• Taxes, Liabilities & Termination
• Consider talking to an accountant/attorney before
you decide.
• Suggest banking, accounting and bookkeeping
practices that will help your business
Where business comes to talk business.
9. Why do I need a Business Plan
• A good plan will allow us to provide funding
contacts from a variety of sources including
banks, private lending institutions, private
investors, venture capitalists and angel
Investors
• Provide you with a management tool for your
business
• A Business Plan Forces you to take an
objective view of your ideas
• A Business Plan serves as the road map to
your objective
Where business comes to talk business.
What goes into a Business Plan
• Attractive Cover and Cover Letter
• Table of Contents
• Executive Summary and Capital Request
• Description of Business, Projected Number of Employees
• History of the Company if already in Business 2-3 years of
Financials
• Description of Products and/or Services
• Who is Your Competition?
• Market Analysis
• Marketing and Sales Strategies
• Organization and Management Structure and Experience of
Key People
• Floor Plan and Pictures of Facility
• Financial Projections 3-5 Years, Financial Graphs
• Resumes of Key Employees
• Appropriate Attachments-Letters of Support-Recent orders
Where business comes to talk business.
10. Business License & 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.
Pricing Structure
• We will help you determine realistic
costs for your business operation, which
will help you determine your pricing
Structure
• Margin based
• Income based
• Competition Based
• Image Based
• Volume based
• Testing based
From “hypergrow your business” by Curtis Clinkinbeard
Where business comes to talk business.
11. Management Practices
• Leadership/Team Building
• HR Management
• Quality Control Practices
• Six Sigma
• Lean Manufacturing
• Lean Six Sigma
• ISO /QS
Where business comes to talk business.
Crossroads Business Development Success
• Clients-606
• Business Plans Completed 185
• Clients Funded-120
• Clients that did not need funding-28
• Funding to date-$40,133,833.00
• Jobs created or saved-652
12. VSBDC Offices
Crossroads SBDC Office
Tel: 276-236-0435
Dgarrett@crossroadsva.org
Longwood SBDC – Martinsville
www.longwood.edu/sbdc Tel: 276-632-4462
Mountain Empire Community College
www.me.vccs.edu/sbdc/ Tel:276-523-6529
New River Valley/Radford University
www.sbdc.radford.edu Tel: 540-831-6056
Roanoke Regional Small Business
Development Center
www.roanokechamber.org/ Tel: 540-983-0717
Southwest Virginia Community College
www.sw.vccs.edu/sbdc Tel: 276-964-7345
Virginia Highlands Community College
www.vhcc.edu/sbdc Tel: 276-739-2474
Turn to SCORE Counselors for
Small Business Advice
Live Your Dream. SCORE Can Help.
13. Small Business and Leadership
Live Your Dream. SCORE Can Help.
Q: Why is small business so important to the
economy?
A: Small businesses create jobs and fuel growth.
There are nearly 26,000,000 small businesses
nationwide.
Small businesses represent 99.7% of all employers.
Small businesses create 75% of new jobs.
About 672,000 new small businesses are formed
each year.
Small Business and Leadership
Live Your Dream. SCORE Can Help.
Q: Why is owning a business important to you?
A: Small business represents success on your own terms.
Be your own boss.
Bring a new idea to life.
Achieve your lifelong dream.
Create financial independence.
Turn your hobby into a profitable business.
14. About SCORE
Live Your Dream. SCORE Can Help.
SCORE “Counselors to America’s Small Business” is a national
nonprofit association.
“SCORE provides resources and expertise to maximize the
success of existing and emerging small business”
Workshops and Seminars
Face-to-Face counseling
Online counseling www.score.org
Free and confidential business advice
About SCORE
Live Your Dream. SCORE Can Help.
Q: How can a SCORE business counselor help?
A: SCORE counselors give real-world advice
that applies to your business.
Practical advice
Business planning
Problem-solving
Growth strategies
Confidential sounding board
15. About SCORE
Live Your Dream. SCORE Can Help.
SCORE business counselors are volunteers. Volunteers
who have achieved business success–and want to help you
succeed in your business.
Dedicated volunteers
Confidential advice for your business
Experienced business owners and executives
Experts who’ve seen both economic highs and lows
Pros with expertise in hundreds of disciplines
SCORE Services for You
Live Your Dream. SCORE Can Help.
Confidential business counseling
Long-term business mentoring
Face-to-face brainstorming sessions
Online email advice available anytime
Local workshops and seminars
16. SCORE Services for You
Live Your Dream. SCORE Can Help.
More than 12,000 counselors nationwide
Representing over 300,000 years of
business experience
More than 1,000 locations for counseling
Ask SCORE online counseling at
www.score.org
SCORE Resource: www.score.org
Live Your Dream. SCORE Can Help.
The SCORE Small
Business Web Site
also offers:
Business Tools—
Workshops, tips and tools
for your business.
How To—Industry
articles and expert
insights.
17. Turn to SCORE
Live Your Dream. SCORE Can Help.
Steve Willinger
Bristol Chapter Chair
steve@stevewillinger.com
(423) 989-4866 www.bristolscore.org
Growing Your
Business/Marketing
Strategies
18. Entrepreneur Express
March 18, 2010
MARKETING & ADVERTISING
For The Entrepreneur
Steve Willinger
Small Business Marketing Professional
Social Media Strategist
Bristol, TN
Today's Agenda
• Marketing Today
• Social Networking
• Planning for Success
• Advertising for the Small Business
• Developing a Marketing Budget
19. A Few Facts
• Advertising is struggling
• Expectations are increasing
• Competition is everywhere
• Time is a scarcity
• Technology has become an integral component
Marketing is. . .
“Everything you do to place your product or service
in the hands of potential customers.”
• Creating a customer
• Keeping a customer
21. Marketing Plans
• Anticipate future events
• Define a direction
• Create a blueprint
Marketing Plans
“A written plan turns your marketing into
a planned investment
rather than a hopeful risk”
22. A Good Plan…
• Easy to understand
• Clearly links objectives to strategies
• Specific and measurable
• Flexible
• Provides for checkpoints
The Marketing Plan
• Reality Check
* Current economy
* Understanding success factors
* Challenges your company faces
• Customer Analysis
* Demographics, purchasing behaviors
• Competitive Analysis
* SWOT analysis, competitive changes, challenges
23. The Marketing Plan
SMART Objectives
• Specific
• Measurable
• Accurate
• Realistic
• Time‐based
The Marketing Plan
• Strategies must be linked to the objectives
• Well thought‐out strategies can provide discipline
• Minimizes the tendency to react
• Provides a benchmark for measuring success
24. 7 Step Marketing Plan
1. State the purpose of your marketing.
2. Define your target audience.
3. State customer benefits to emphasize.
4. List marketing objectives & strategies
5. Describe your market
6. Establish your budget.
7. Prepare an Action Calendar.
ADVERTISING is . . .
The most “convenient” method of
communicating to your target audience the
benefit of purchasing your product or service.
25. Fact: Most people ignore advertising
The key is to ensure that they take notice of
yours!
HOW?
Make sure your company is
Recognizable
Location
Regular advertising will build awareness
Constant Focus on Sales and Marketing
Community Involvement
Public Relations
Communication
Customer Service
26. Make sure your company is
Memorable
How Does Advertising Work?
Advertising puts your company at the forefront of
people’s minds.
Advertising either stimulates a purchase or helps to
ensure that people know where to go when they do
decide to purchase.
Advertising also confirms a customer’s decision that
doing business with you was a good idea
27. Branding
QUESTIONS ASKED . . .
• What is it going to cost?
• What methods would benefit my business
the most?
• Meet with a professional
28. Advertising Budget Basics
% of lifetime value of customer
% of previous annual sales
% of desired sales
8‐10% average retail (b2c)
4‐6% average wholesale (b2b)
Marketing & Advertising = Customers
“It’s your turn for Comments and
Questions”
Steve Willinger
Small Business Marketing Professional
Social Media Strategist
(423) 797‐0355
smwillinger@gmail.com
stevewillinger.com
linkedin.com/in/stevewillinger
facebook.com/stevewillinger
29. 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)
• 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
31. • Wilderness Road Heritage Trail
• Virginia Coal Heritage Trail
• ‘Round the Mountain
• Heartwood
• Spearhead Trails
Development & Partnership
Marketing
32. • Planning Assistance
• Marketing Guidance
• Workshops
Business Assistance
• Marketing Leverage Program
Funding
34. Bed & Breakfast Inns
Cabins and Cottages
Lodges
Campgrounds
Horse Campgrounds
Horse Stables/Barns
House Boats
Green Lodging
Unique Lodging Opportunities
Music/Theater Venues
Artisan Studios/Galleries
Heritage Sites
Tea Rooms
Breweries/Pubs
Eclectic Restaurants
Shopping
Spas
Attractions
35. 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
Ancillary Businesses
6 Questions You Should Answer
• What are we trying to accomplish?
• Who is our target audience?
• What message will move our audience?
• What vehicle do we have to deliver the message?
• What are our resources?
• How do we measure our performance/success?
Marketing Tips
36. 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 Tips
Virginia’s Recent Ad Campaign
38. • 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
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)
45. • Chartered in 1964 as first rural
Community Action Agency in the
United States
• Offer a diverse range of
development services and
programs throughout Western
Virginia
46. • BusinesStart
• Training and Technical Assistance
• Consumer Loan Program
• Ninth District Development Financing, Inc.
• New Market Tax Credit Program
People Inc Financial Services
• Promotes economic self‐sufficiency and a better
quality of life for the region’s citizens through small
business ownership, job creation, and asset
development.
• Provides business training, technical assistance, and
makes business loans.
• Partners with the local banking community and
focuses services on customers who may not be
eligible for bank financing.
47. BusinesStart
• Classes are offered to assist in educating the
customer on Business Development.
• Loans available up to $200,000 for start up or
existing businesses.
• Continuing assistance to customers once the
business is up and running.
Training and Technical Assistance
• Business Basics Workshop
• Core Four Business Planning Course
• Customer Service Workshop
with partner Virginia Tourism Cooperation
• Social Media Workshop‐ You‐Link‐Twit‐Face
with partners Virginia Dept of Business Assistance and
Virginia Tourism Corporation
48. Consumer Loan Program
• Loans available up to $10,000
• Interest Rate = Prime + 5.0%
• Terms up to 36 months
• Credit problems understood
• Loans must have collateral
• Loans for:
– Home Improvements
– Car Repairs
– Payoff Payday Loans
– Bill Consolidation
NDDF
Ninth District Development Financing, Inc.
• Loans for start up or expanding a tourism
related business.
• Business must be located within the 9th
congressional district of Virginia.
• Interest rate = Prime Rate
• Visit our website: www.nddf.org
49. New Market Tax Credit
• The New Market Tax Credit Program (NMTC) is a community
development lending tool designed to stimulate the flow of
investment in underserved communities by creating new jobs
and accelerating economic revitalization.
• The program was created as a part of the Community
Renewal Tax Relief Act of 2000 which encourages private
capital investment in low income communities by providing a
39 percent federal tax credit to investors.
• The program is based on the idea that there are viable
business opportunities in low‐income communities and that a
federal tax credit would provide attractive incentive to
increase the flow of investment capital to such areas.
Funding Partners
• Small Business Development (SBA)
• Virginia Enterprise Initiative (VEI)
• US Treasury
• Virginia Tobacco Commission
• Virginia Dept of Housing and Community
Development
• Virginia Community Capital (VCC)
• FAHE
50. Contact Information
Becky Nave
People Incorporated of Virginia
1173 West Main Street
Abingdon, VA 24210
bnave@peopleinc.net
P: 276‐619‐2243
www.whatcanpeopledo.org
Questions?
51. 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
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
52. uccess
Formula for S
ion for decision
‐ Critical informat
making
plentiful
‐ Well trained and
workforce
pital structure
‐ Appropriate ca
Ask VBIC = 866‐
248‐8814
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
53. 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
Ask VBIC = 866‐
248‐8814
54. 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
• 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
55. 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
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
56. 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
Social Media Workshops
You‐Link‐Twit‐Face
Upcoming Events:
•April 29 – Wytheville
•May 18 – Galax
•June 10 – Washington County
57. 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.
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.
58. 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
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
59. OTHER AVAILABLE RESOURCES
Virginia Business Incubator
– 9 Available in Southwest Virginia
– 30 Within Commonwealth
– Business Incubator Benefits
• Facility designed to assist businesses to become
established and sustainable
• Benefits
– Shared premises and business services
– Business advice and mentoring assistance
– More details ‐ http://www.vbia.org/
Business Incubator
Commercial Kitchen
Light Manufacturing Space
Shared Amenities
60. 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
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/
61. 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
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
62. “If you always do what you’ve
always done, You will always
get what you’ve always got!”
Lets Connect:
Sandy Ratliff
The Virginia Department of Business Assistance
276‐676‐3768
276‐ 676‐
sandy.ratliff@vdba.virginia.gov
Online:
Twitter: http://twitter.com/sandyratliff
http://twitter.com/sandyratliff
Facebook: http://www.facebook.com/sandy.ratliff
http://www.facebook.com/sandy.ratliff
LinkedIn - http://www.linkedin.com/in/sandyratliff
http://www.linkedin.com/in/sandyratliff
YouTube - http://www.youtube.com/user/vastartup
64. CONTACTS
• Sandy Ratliff, Virginia Department of Business Assistance
= 276‐676‐3768 or VBIC = 866‐248‐8814
• Steve Willinger, SCORE = 423‐989‐4866
• Dallas Garrett, Crossroads SBDC = 276‐730‐3019
• Randy Rose, Virginia Tourism Corporation = 276‐322‐
2044
• Scott Peak, Wachovia Bank = 276‐645‐1230
• Becky Nave, People Inc. = 276‐619‐2243
• Carl Mitchell, Virginia Economic Bridge = 540‐ 731‐6800
• Alan Hawthorne, Wythe Joint IDA= 276‐ 223‐3370
• Jennifer Jones, Wythe Bland Chamber of Commerce =
276‐223‐3365