11. HOW TO START AND
OPERATE
A SMALL BUSINESS
By
Dick Ephgrave
Director, Longwood University Small
Business Development Center,
Martinsville, VA
12. 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.
13. 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.
14. 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.
15. 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.
16. 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.
17. 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
19. About SCORE
SCORE was formed in 1964 as a resource partner of the Small
Business Administration. SCORE's mission is to help new and
existing small businesses succeed.
Facts (2010)
13,000 volunteer across 350 chapters
Volunteers donate 1 million hours of service
501,000 total services delivered annually
360,000 people served annually
20. Our Clients
Early stage entrepreneurs, who are considering to start
a business but need help in defining their ideas,
building a Business Plan, and obtaining financing.
Start-up businesses, who are seeking to grow their
business and manage their finances.
Established businesses, who are seeking to grow and
increase their customer base.
21. Our Services
Mentoring: SCORE provides free, confidential
counseling in each of its 360 Chapters and also via the
internet through www.score.org .
Workshops: Score provides training sessions on a
variety of topics, from Business Plans to Marketing, to
Financing. SCORE can provide customized seminars
for community partners.
22. SCORE's Online Presence
SCORE has a tremendous online presence:
Tutorials and self study classes
Online workshops
Online mentoring: search for a mentor by their expertise
and subject matter specialities.
SCORE website for SCORE volunteers provides great support:
Training courses
News and updates
Peer learning
23. Why SCORE Adds Value
Entrepreneurs are usually expert in their chosen field, but
rarely have mastery of the entire range of business skills.
Success in business requires performing a wide range of tasks:
Marketing
Sales
Operations
Accounting, Finance, Legal, HR, Regulatory, Tax...
Seasoned SCORE mentors can point out areas of strength and
weakness, recommend actions, and point the way to other
resources.
24. Code of Ethics
SCORE has a strict Code Of Ethics to protect
our clients. All volunteers need to agree and
sign annually. Key points:
SCORE mentors are unable to make money in any
way from SCORE clients.
Volunteers may not use our client or member
databases for commercial reasons.
25. Steps For Creating Your Business
Choose the Structure
• Proprietorship, partnership, LLC, etc.
Register
• Name, trademarks, corporation
Obtain Tax ID's
• Federal and Virginia
Obtain licenses
• City/County/Town business license
• Occupation specific licenses (Virginia)
26. Business Licensing and Registration
State, county, city, and town may have
requirements.
Why?
– Taxation
– Zoning
– Regulate certain activities
27. Business Licensing and Registration
Check with your local county / city / town
– Most have information on their websites
Web site for Virginia Department of Business
Assistance: http://www.dba.state.va.us/
Great source of information!
28. Pricing
Price minus Cost = Profit .
Setting prices is vital to the success of any
business. Things that affect pricing:
– Competition
– Customer preferences
– Costs
– Contractual and legal requirements
Each market is different.
29. Pricing
Common errors:
– Not understanding your costs.
– Not understanding the value of your product or
service.
– Reluctance to lose any sale, leading to
excessive discounting.
– Reluctance to discount under any
circumstances.
30. Management Practices
I'm a small business. Am I involved in “Management”?
Management is the acquisition, deployment, and use of
resources to achieve an organization's goals.
– Resources include labor, money, equipment,
buildings, etc.
– Relationships with customers and suppliers are
also resources that need managing.
Yes, small business people are in “Management”!
31. Management Practices
Do the Right Things.
– Must make choices on what to do.
Do Things Right.
– There are better and worse ways to accomplish
tasks. Doing the Right Thing, badly, is not
helpful.
Do the Right Things, Right, Right Now.
– Take action and get things done.
– Time is a valuable resource.
32. SCORE Roanoke Chapter Overview
Office location, open 10AM-3PM M-F:
105 Franklin Rd, SW, Suite 150
Roanoke VA 24011
540-857-2834
info@scoreroanokeva.org
Call for an appointment.
Mentoring sessions can take place at our office,
your place of business, or another site.
34. 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)
35. • Virginia Tourism Corporation Overview
• Tourism Business Opportunities
• Marketing Your Small Business
rrose@virginia.org
276-322-2044
www.vatc.org (industry)
www.virginia.org (consumer)
36. • 18.9 billion in revenue
• supported 204,000 jobs
• provided $1.3 billion in
state and local tax revenue
Impact of Tourism in VA - 2010
37.
38. • Advertising
• Customer Service & Industry Relations
• Electronic Marketing
• Film Office
• Marketing & Promotion
• Public Relations
• Research
• Tourism Development
• Others
Virginia Tourism Corp. Services
41. • Wilderness Road Heritage Trail
• Virginia Coal Heritage Trail
• ‘Round the Mountain
• Heartwood
• Spearhead Trails
• Crooked Road
• Fish Virginia First
Development & Partnership
Marketing
42. • Franklin County • Pulaski County
• Roanoke County • City of Radford
• Craig County • Giles County
• Patrick County • Tazewell County
• Floyd County • Carroll County
Locality Tourism Planning
48. 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
49. • 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
51. Can you answer these
two questions?
• What is Marketing?
• What is the difference between Marketing and
Advertising?
52. 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
53. 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
54. Who is your target audience?
• by demographics
• by geography
• by needs and wants
• now and in the future
Marketing
Planning
55. What message will move
your audience?
• Your brand
• Your tagline/slogan/message
• What do you want people to say
about your business?
Marketing
Planning
56. What vehicles do you
have to deliver the message?
• Website • Social Media
• E-mail • Tradeshows
• Advertising • Newsletters
• Public Relations
Marketing
Planning
57. What are your resources?
• Budget/Money
• Owner/Employee Skills
• Friends/Family
• Partnerships
• Local/State/Federal Assistance
• Chambers of Commerce, Business Associations, etc.
Marketing
Planning
58. How will you measure your
marketing performance?
• Electronic Marketing Tools
• Data Collection
• Research Mechanisms
• Surveys
• Informal Questioning
• Sales Data
Marketing
Planning
59. Have a Calendar/Schedule
Include:
• Anticipated Ad Placement
• Press Releases
• Social Media Updates/Posts
• Promotions
• Other Scheduled Strategies
Marketing
Planning
60. 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
69. • Determine Ways to Stand Out /Be Unique
• Be Creative
• Have Fun!
Marketing Tips
70. 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)
81. 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
82. The Virginia Department
of Business Assistance
VDBA supports economic development in the
Commonwealth by working with new and
existing businesses to provide business and
economic development communities with:
• workforce incentives
• financing
• business information and counseling
• state procurement assistance
• educational opportunities
www.vdba.virginia.gov
84. 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 110 regulatory programs
and over 300 forms that may touch a Virginia business
Questions on registration, taxation, licensing
Interactive business plan available online at
www.vdba.virginia.gov or www.vastartup.org
5 Step process to a business plan
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 50,070 registered suppliers
Over 22,686 participating
buyers
Ask VBIC = 866-
248-8814
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
• Partnership with Service
Providers and localities
• Workshop Types:
– Starting and growing a business
– How to sell to the
Commonwealth
– Social media for business
– iPad for business
– Business of restaurants
• List of events:
– www.vastartup.org
90. 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.
91. 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.
92. 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
93. A regional business incubator serving
the City of Martinsville, Henry,
Patrick and Franklin Counties
94. 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
95. Services
Favorable Rental Rates
Mentoring Services
Broad Band Internet Access
Shared Resources
Conference and training rooms
Shared receptionist
Business equipment
"Virtual Incubator" Available
96. 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!
97. WPBDC
23,500 square foot facility
in Uptown Martinsville
11 Tenants
1 Virtual tenants
20 Graduates
231 jobs created
98. Questions?
Robbin Hall
Executive Director
West Piedmont Business Development Center
22 E. Church St.
Martinsville, VA 24112
276.403.5085
rhall@wpbdc.org
99. 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/
100. Marketing Resources
• SCORE = www.score.org
• Virginia Tourism Corporation = www.vatc.org
• Virginia Department of Agriculture – Virginia’s Finest
Trademark = www.vdacs.virginia.gov
101. 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
102. “If you always do what you’ve
always done, You will always
get what you’ve always got!”
103. 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
107. CONTACTS
• Sandy Ratliff, Virginia Department of Business
Assistance = 276-676-3768 or VBIC = 866-248-
8814
• Randy Rose, Virginia Tourism Corporation = 276-
322-2044
• Dick Ephgrave, Longwood SBDC = 276-632-4462
• Maynard Wiff, SCORE = 540-857-2834
• Tommye Arnold, Wachovia Bank = 276-645-5130
• Robin Hall, West Piedmont Business Development
Center = 276-638-2523
• Annette Stamus, Smith Mountain Lake County
Chamber = 540-721-1203