SBDCNews January 2010 Dedicated to a Thriving Small Business Community and serving San Joaquin, Alpine, Amador, & Calaveras Counties Client Success Story Bicycle Shop That Comes to You Dave’s Mobile Bike Repair 916-204-5345 As a long time bike enthusiast, David Martinez had been repairing bikes for friends and family for a few years before considering doing it as a business. “I wanted to create a business that was unique and would give me an advantage over my competition and a mobile bicycle shop was the way to accomplish this.” Having very little knowledge of how to start a business, Dave researched information on the Internet and located the SBDC. In February 2008, Dave attended a Small Business Start Up and Financing workshop at the SBDC. The workshop was very informative and provided a step-by-step explanation of how to start a business. Dave returned to the SBDC for information on tax requirements for the new business a few months later. The SBDC also helped Dave develop a business plan, formulate and implement plans for marketing, improvement of his website, business organization, and other related issues. “I opened my business in July 2008. With the help of the David Martinez started a successful service doing what he loves to do. SBDC, I was able to successfully apply for and obtain approval me that is continuously growing. The SBDC for a local micro loan, which is helping me provided me with the needed information expand my marketing efforts and my product on both start up and ongoing business issues, inventory. The start up of my business has as well as helped me develop more specific created a new and exciting full-time career for marketing plans for my business.” Aspiring Young Entrepreneurs Through support from the Economic & Workforce Development Program of the California Community Colleges, aspiring young entrepreneurs had the opportunity to attend a number of recent dynamic programs planned and sponsored by the SBDC and Delta College’s Business Division. Programs included presentations by business author and radio personality Rhonda Abrams, the Extreme Entrepreneurship Tour, and YEP/ Summer Youth Program (co-sponsored by WorkNet). Participants said: “I was inspired and motivated to step out of my comfort zone and step up my business development efforts this year.” “This tour had a major impact on me. I want to continue going to school. After I complete my degree I will start my business.” “I can be my own boss!” From the Director As we enter 2010 with cautious optimism for a recovering economy, it is important to take an inventory of our lives and our businesses. What is working well? What Gillian Murphy needs to be changed? New Year’s resolutions can be a good idea! I encourage you to make your resolutions relevant and realistic. When it comes to your business or the business of your dreams, the SBDC can be of assistance. Work individually with an SBDC consultant to further define your business goals (resolutions) and develop a plan of action to help ensure your success. As always, our consulting is free and confidential. Read about our clients in this SBDC News and see how the SBDC assisted in their success. We believe in our motto: Your Success Is Our Success. On behalf of the SBDC staff and consultants I wish you a safe and fulfilling 2010. Franchising Opportunities Whereas there is never a guarantee of business success, buying a franchise may be an ideal way to go into business for yourself – but not by yourself. Franchises have systems and a team of people in place that can help you succeed in building your business. Hundreds of thousands of people have opened their own business by buying a franchise. To determine if franchising is an option for you, register for and attend one of the following workshops: Women Entrepreneurs Want To Start Your Own Business? Mary Hogarty, Citibank, presents a sponsorship check to Gillian Murphy, SBDC Director, and Karren Peterson, SBDC Assistant Director and Coordinator of Women Entrepreneurs. Citibank has been a proud sponsor of the Women Entrepreneurs program for 4 years. Women Entrepreneurs offers in-depth training to start and operate a business. The goal of Women Entrepreneurs is to assist women by increasing their financial independence. Women Entrepreneurs also assists with personal development, selfconfidence, communication, assertiveness, and presentation. Call the SBDC for dates of the next session: (209) 954-5089 Keep Your Day Job…Part-Time Franchising Learn the pros and cons of franchising to help determine if it is right for you. February 19, 10 am – noon; $20 Location: SBDC Reservations: 209-954-5089 Business in a Box…Strategies for Buying a Franchise This workshop will cover steps to owning a successful franchise, from the research phase to the day you open for business. Learn how to search for the right franchise, costs to starting a franchise, how the law protects you as a franchisee, and financing a franchise. February 19, 1-3 pm; $20 Location: SBDC Reservations: 209-954-5089 2009 Women Entrepreneurs graduates and instructors. SJ Entrepreneur Challenge A total of $10,000 in cash and $10,000 in professional services will be a awarded to the two winning entrepreneurs in the first area Entrepreneur Challenge. Start-up and early stage companies can enter for a chance to publicly compete during two nights of competition. Online entries are due by February 19. Presentations will be made March 10 and 31, 2010. Please call the SBDC, 209-954-5089 for more information. Business News and Opportunities SBA Offers Disaster Assistance for Small Businesses Economically Impacted by Drought in California Small, non-farm businesses in 50 California counties (plus neighboring counties in Arizona and Nevada) are eligible to apply for low-interest disaster loans from the U. S. Small Business Administration (SBA). “These loans offset economic losses because of reduced revenues caused by drought in the following primary California counties beginning January 1, 2009,” announced Alfred E. Judd, Director of SBA’s Disaster Field Operations Center West. Counties Served by the SBDC and included in the Disaster Relief: San Joaquin, Alpine, Amador, and Calaveras “SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster,” Judd said. Small, non-farm businesses, small agricultural cooperatives and most private, non-profit organizations of any size may qualify for Economic Injury Disaster Loans (EIDLs) of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred. “Eligibility for these working capital loans is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4%, a maximum term of 30 years, and are restricted to small businesses without the financial ability to offset the adverse impact without hardship,” Judd added. Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Service Agency (FSA) about the U. S. Department of Agriculture (USDA) assistance made available by the Secretary’s declaration. However, in drought disasters nurseries are eligible for SBA disaster assistance. Information on loan eligibility can be obtained from the Small Business Development Center (SBDC). To make an appointment with a counselor for more information, phone (209) 954-5089 The filing deadline to return an economic injury loan application is May 17, 2010. Business Incubator Do you need part-time office space for a new business, home-based business, emerging business, or satellite location? Check out the SBDC Incubator “without walls” to find out how your business can benefit from this service. For a nominal monthly fee, your business can have the look and feel of a larger business without the cost of a full-time office. Services: • Professional image & physical business address with private mail boxes • Occasional office and conference room use during weekday daytime hours (as available) • Free, ongoing business management consulting • Assistance seeking financing, including Business Incubator Loan Program/micro loans • Discounted business management workshops • Access to a computer with internet access and a business resource library • Convenient downtown Stockton location close to freeways • Affordable copy and fax services To schedule a time to see our facilities and discuss how the incubator could help your business grow, contact the SBDC: (209) 954-5089 San Joaquin Co. Enterprise Zone San Joaquin County and the Cities of Stockton, Lodi, Tracy, Lathrop, and Manteca offer business and industry the considerable advantages of a California State Enterprise Zone. The San Joaquin County Enterprise Zone encompasses approximately 656 square miles with over 55 square miles of commercial and industrial properties. Companies locating or expanding within the Enterprise Zone may benefit from financing and tax incentives, development incentives, and business assistance. A business located in the San Joaquin County Enterprise Zone can take advantage of tremendous tax credit programs offered by the State of California such as: • Hiring Credit • State & Use Tax Credits • Business Expense Deductions • Net Operating Loss Carryover • Net Interest Deduction for Lenders Contact the Enterprise Zone for more information: (209) 468-3615 or www. sjcez.org. Business Loans: $5,000 to $1 million+ If you are seeking a loan to expand your business, assist with cash flow, purchase new equipment or inventory, or to start a business, contact the SBDC. Although we do not have funds to make loans, we will help you know what funds are available, assess which sources are most likely for you to obtain, and show you how to develop a loan application. See us first to ensure you are ready to see your banker! Consulting is always confidential and without charge. Phone (209) 954-5089. Meet the Experts: SBDC Staff and Consultants Other Consultants Core Advisors Gillian Murphy has served as SBDC director since 1989. She is responsible for the overall operations of the SBDC including securing contracts, writing grants, marketing, and outreach and stays connected to clients by providing general business consulting and presenting workshops. Gillian says “The success of our SBDC is possible because of the extraordinary and committed team I am privileged to work with at the center. We live by our motto ‘when our clients succeed, we succeed.’” Karren Peterson has been with the SBDC for 19 years. As Assistant SBDC Director, Karren organizes and coordinates many of the training programs such as the Youth Entrepreneurship Project and Women Entrepreneurs. She also organizes general business training and special events. Karren is one of the SBDC Core Advisors and consults with business owners regarding their business concerns and needs. Her background is in retail sales and international trade. Karren facilitates and is a member of WESAH (Women Entrepreneurs Successful at Home), a training and support group for Women Entrepreneurs’ graduates and other women-owned home-based businesses. Nate McBride is a Business Advisor and has been with the SBDC since 1989. Nate conducts numerous seminars and workshops on financing, marketing, start-up, and small business management. He consults with clients to assess funding sources and help prepare appropriate financing proposals. He helps with cash flow management, budgeting, developing business plans, marketing and business management. Janet von Seeburg has been with the SBDC since 1989. She is the first point of contact when a client visits the SBDC. Janet excels at customer service and takes a true interest in all SBDC clients. Janet is also responsible for managing the SBDC budgets, inputting client information into the Statewide data processing system, coordinating the scheduling of client appointments, and generally making sure the day-to-day process of the SBDC run smoothly. Sue Wright joined the SBDC in 2009 and serves as the SBDC Hub’s Secretary and right-hand person. Sue brings over 20 years of experience owning her own small business. Sue provides support for the SBDC/Community College/Caltrans California Construction Contracting Program including information dissemination, marketing, gathering and preparing reports, and fiscal tracking. Sue also assists the Small Business Programs Initiative Director in his role of providing support to the Small Business Programs at California Community Colleges throughout the State. Teddy Strombom of Teddy’s Office Aid puts 30 years experience in full charge bookkeeping and office management to work for small business owners. As a ProAdvisor for QuickBooks she trains business owners to set up their bookkeeping systems and to use the reports within the system to aid them in making business decisions. Trudy Lackey is a new business consultant in Calaveras County. She has lived in Calaveras County since 1992, and has owned and operated a small business since 1990. Trudy served on Vallecito Union School District (VUSD) Board of Trustees for 13 years, worked 2 years as Executive Director for the Calaveras Community Foundation and 5 years as Manager of the Calaveras Center/ Community Education for Columbia College. She is active in Calaveras County Women’s Network, Calaveras County Chamber of Commerce, Calaveras County Community Band, Symphony of the Sierra, and is Vice-chair of Mind Matters Board of Directors. During most of the sixties Ron Mittelbrunn worked in commercial banking in New York City where he attended the American Institute of Banking. For the next 20 years Ron founded and operated three entrepreneurial businesses. Since 1990 he has been Executive Director of Amador Economic Development Corporation, providing economic development services to Amador County and financing for businesses through the SBA’s 504 loan program. Ron is an Economic Development Finance Professional and has arranged over $35 million in loans. As a business lender for the past 30 years Joyce Grubbs is able to assist the business entrepreneur translate how a lender analyzes personal and business credit histories, personal and business financial statements, business profit and loss and cash flow. In addition, she can help the client author a financing plan that will comply with the lender’s credit facility guidelines. Nikki A. Beasley, a Licensed Financial Professional for over 18 years in the retail banking, insurance and investment industry is the Principal of B.Wise Consultants, Inc., a Financial & Professional Consultant firm designed to help individuals take steps toward financial independence. Nikki will help coordinate and present the Women Entrepreneurs program at the SBDC. She will also consult with Women Entrepreneur clients. Perry Sloan is an instructor and counselor for The Federal Technology Center (FTC) and conducts workshops and counseling sessions at the SBDC on a regular basis. Perry has over 30 years experience in contract management, both on the buying and selling sides. The FTC teams with the SBDC to help small business clients increase sales by linking clients’ products and services to the government. Les Fong is President of Ken Fong Advertising, Inc., an advertising, marketing and public relations firm located in Stockton, California. Since 1981, Les has been an advertising and marketing instructor at San Joaquin Delta College in Stockton. Les helps SBDC clients evaluate and develop advertising campaigns, product/corporate positioning and sales promotions to maximize return on investment. He also provides input in creative development for print advertising, radio/television production, photography, email and web page design. Al Johnson has degrees in chemical engineering and helps clients in buying and selling a business, marketing, manufacturing, accounting and cost control. His experience includes technical service, engineering, and factory management, research, and quality control and production planning. Al has served as Chairman of the Wine Industry Safety Committee. He owned and operated a manufacturing business, and is experienced in financial control and formation and operation of non-profit 501(c)3 organizations. He is currently retired, but works as a SCORE counselor and an SBDC consultant. Client Success Story Kat’s is Growing in Sales and Reputation Kat’s Cakes 2230 Pacific Ave., Stockton, CA 95204 209-466-2253 when it was extremely tight, helped with negotiations on the new location, and gave input on planning for the relocation as well Kat’s Cakes began in January 2004. The as store set up. The new location more owners came than doubled to the SBDC their visibility in late 2006 for and has exposed assistance in them to an acquiring a local entirely different retail cake supply client base. business. The “We couldn’t SBDC helped have made it them through an without the assessment of the SBDC,” Johana business for sale, Martz said with negotiations recently about on the purchase, the help received as well as from the Center. negotiating the Kat’s Cakes lease with the continues to new landlord. grow in sales They returned and reputation, to the SBDC winning for help with an A-List meeting designation in labor board a Sacramento requirements; Television marketing/ Station (KCRA) Kat’s cake owners: Katherine & Johana Martz branding issues, “Best of Wedding and Sarah Kline planning for Cakes” to be future growth, followed by record keeping and financial statement winning the Record’s “Best of San Joaquin” production, financial management advice, in the Wedding, Special Occasion and cost reductions that would be achieved Formal Events Category. Their store through moving to a new better location. windows now feature an ever-changing They have also had ongoing discussions array of specialty cake designs and the shop regarding general management issues and is becoming a stopping place for locals who have attended workshops on acquiring love to come by and see what’s new. financial assistance. “We used to wash our windows once They moved to their current location a month and now we have to have them in the spring of 2009. The SBDC gave washed three times a week, thank you the client input on managing cash flow SBDC!” Martha Aguilar is the Events and Program Coordinator for the San Joaquin County Hispanic Chamber of Commerce. She coordinates the SBDC co-sponsored bi-lingual Starting and Financing a Business workshops. When clients are more comfortable conducting consulting sessions in Spanish, Martha provides translation services for the SBDC consultant. For free and confidential consulting at the SBDC, call 209-954-5089. SBDC Can Help Your Business Start and Thrive The Northeastern California Small Business Development Center (SBDC), San Joaquin Delta College. The SBDC serves San Joaquin, Amador, Alpine and Calaveras Counties and is here to assist with any aspect of small business development—from starting a small business to expansion or helping with challenges in an existing business. The SBDC offers a wide range of programs and resources including: • Business planning and management • Financial management • Marketing • Mystery Shopping • Virtual office/Incubator • Women Entrepreneurs The SBDC can help business owners prepare loan applications, business plans, financial analysis, and marketing strategies. If you have an existing or start-up business, you can access SBDC services and determine how your business can become stronger and more profitable. Call us for a confidential (always free!) appointment. SBDC Clients Get Results Small Business Development Center programs facilitate the success of small business though business management counseling and training. Between January 1-November 30, 2009, Northeastern California SBDC-San Joaquin Delta College clients had the following economic impacts: • 100 jobs created/retained • $3.2 million increase in sales • $10.9 million government contracts awarded • $4.9 million loans and capital infusion Mystery Shop Your Business Take a look at your business through the eyes of your customers! The SBDC provides a mystery shopper program to help business owners ensure they are providing the type of service they want for their customers. Contact the SBDC (209-954-5089) for more information. SBDC Locations Main SBDC Office 56 S. Lincoln Street (downtown Stockton) Stockton, CA 95203 (209) 954-5089 (209) 939-0385 (fax) www.sbdc.deltacollege.edu Outreach Locations Alpine County Alpine County Chamber of Commerce P.O. Box 265 3 Webster Street Markleeville, CA 96120 (530) 694-2475 (530) 694-2478 (fax) Amador County Amador Economic Development Corporation P.O. Box 1077 1500 S Highway 49 Jackson, CA 95642 (209) 223-0351 (209) 223-2261 (fax) Calaveras County Mother Lode Job Connection 700 Mountain Ranch Road, Suite A San Andreas, CA 95249 (209) 954-5089 (209) 939-0385 (fax) SBA Financing Although the SBA does not make direct business loans, it guarantees loans for traditional lenders (banks). Because of the current economic condition, the SBA has temporarily opened its guaranteed loans to businesses such as auto and RV dealerships, auto industry suppliers and others. If you are interested in learning more about SBA financing, contact the SBDC at (209) 954-5089. The Northeastern California SBDC, San Joaquin Delta College, is co-sponsored by CSU Chico Research Foundation/CED and the California Community College Economic and Workforce Development Program. It is funded in part through a cooperative agreement with the U.S. Small Business Administration. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the view of the SBA. The SBDC program is nondiscriminatory. Reasonable accommodations for the disabled will be made, if requested in advance. Reduce Workers’ Compensation and Other Costs Learn strategies to reduce workers’ compensation costs, significant injuries, and illnesses. Attend this free small business health and safety workshop presented by UC Berkeley. The workshop will introduce small business owners, managers and supervisors to health and safety training resource material designed especially for small businesses, and provide them with strategies for strengthening their health and safety programs. The program is ideal for janitorial businesses, restaurant owners, and other small business owners. Resource material is available in English and Spanish. March 3, 9-11 am Location: 56 S. Lincoln Street, Stockton FREE RSVP 209-954-5089 Starting and Financing Your Own Business Start smart by attending an informative workshop outlining legal requirements and regulations, business planning, sources of funding, determining funding needs, and preparing a funding request. Following the workshop, make an appointment for free consulting to discuss your business plan and next steps. Choose from the following dates and times and call the SBDC (209-954-5089) to register. Location: 56 S. Lincoln Street, Stockton Fee: $25 2nd Wednesday, 4:30–6:30 pm April 14 January 13 May 12 February 10 June 9 March 10 4th Wednesday, Noon–2 pm April 28 January 27 May 26 February 24 June 23 March 24 One-hour Orientation to Help Start Your Small Business Workshop includes information on legal requirements and regulations, business planning, and sources of financing. Select from the following dates and times and call the SBDC (209-954-5089) to register. Fee: $15 Manteca, Thursdays, noon–1 pm January 7 April 1 February 4 May 6 March 4 June 3 Location: Manteca Chamber of Commerce 821 W. Yosemite, Manteca Phone the SBDC at 954-5089 to reserve Tracy, Thursdays, noon–1 pm January 14 April 8 February 11 May 13 March 11 June 10 Location: Tracy District Chamber of Commerce, 223 E. 10th Street, Tracy Phone the SBDC at 954-5089 to reserve Lodi, Thursdays, noon–1 pm January 21 April 15 February 18 May 20 March 18 June 17 Location: Lodi District Chamber of Commerce, 35 S. School Street, Lodi Phone the SBDC at 954-5089 to reserve Bilingual Starting and Financing a Small Business Learn how to plan, open and operate a successful small business. The workshop is presented in English and translated to Spanish. Topics include: legal requirements and regulations, business planning, sources of funding, determining funding needs, and preparing a funding request. Co-sponsored by the San Joaquin County Hispanic Chamber of Commerce, workshops are held monthly. Please call the Hispanic Chamber of Commerce (209-943-6117) or the SBDC (209-954-5089) for reservations. Location: SJC Hispanic Chamber of Commerce, 306 E. Main Street #303, Stockton Fee: $20 All Bilingual Startup workshops are from 4:30–6:30 pm January 28 April 22 February 25 May 27 March 30 June 24 Business Workshops in Amador and Calaveras Counties Workshops for existing and new business owners are held regularly in co-sponsorship with the Calaveras Job Connection and Amador Economic Development Corporation (EDC). For a list of workshops, please phone the SBDC (209-954-5089). Government Contracting Workshops Each year small businesses sell more than $40 billion in goods and services to the U.S. government. Find out how to get your share. January 21 Marketing to the Government Topics: Decide if the government marketplace is the right customer for your company, understand the government customer, evaluate the government market, evaluate your capabilities, apply four key marketing principles to government sales, make contact. February 4 Government Subcontracting Topics: Basics for prime contractors who manage subcontractors, basics for subcontractors who are working with primes, subcontract administration, marketing to prime contractors. April 15 Federal Contract Administration Topics: Explains contract elements, types of contracts, uniform contract format, roles & authority of government representatives, post-award conferences, managing delivery schedules, quality, inspection and acceptance, packaging and transportation. May 13 Federal Contract Negotiation Topics: Negotiation defined, arriving at a “fair and reasonable price,” price and cost analysis, the steps of negotiation, and FAR (Federal Acquisition Regulation) clauses that apply. August 12 Responding to RFPs (Request for Proposal) Topics: Understand how to locate government RFPs, understand how to review RFPs and decide whether or not to develop a proposal, know the key elements of proposal formats. Location: Small Business Development Center (SBDC) 56 S. Lincoln, Stockton, CA 95203 Time: 9 am to noon Cost: Workshops are FREE Co-Sponsor: The Federal Technology Center Call the SBDC to RSVP or for more information: (209) 954-5089 Nonprofit Org. US Postage PAID Permit No. 414 Stockton, CA 56 S. Lincoln Street Stockton, CA 95203 SBDC Workshop Schedule (all workshops on this page held at 56 S. Lincoln Street, Stockton) Web Design Workshop Get your business online by building your own website. In this hands-on workshop you will build and launch a professional website. The tools are simple: point, click, drag, and drop images and text. Upon completion of the workshop you will set your website live! Workshop Benefits • A full-function website with five pages • Your website FREE for 30 days • Toll-free technical support • Choose from 2,000+ customizable designs When: January 26 February 23 March 23 April 20 May 18 June 22 9-11 am 9-11 am 9-11 am 9-11 am 9-11 am 9-11 am Cost: $40 Participants must meet with a consultant from the SBDC to outline their website needs and gather the necessary information prior to the workshop. Phone to RSVP for the workshop and to schedule an appointment with an SBDC consultant: (209) 954-5089 Effectively Marketing Your Small Business A key aspect for business growth and success is effective marketing. Learn how to identify targeted customers, assess customer needs, evaluate the competition, and effectively communicate what your business has to offer. Business owners will also learn how to evaluate different forms of advertising and promotion, improve their marketing messages, and more. Reservations required. Call the SBDC to RSVP or for information: (209) 954-5089 When: February 9, 2-4 pm April 13, 9-11am June 15, 2-4 pm Cost: $40 (additional persons from same business $20 each) Pricing Your Product or Service Effectively This workshop will explain and help the business owner apply key aspects of setting the right price for any product or service. Business owners will also learn strategies to increase prices and improve margins, how and when to offer discounts or similar offers, and more. When: January 12, 9-11am March 9, 2-4 pm May 11, 9-11 am Cost: $40 (additional persons from same business $20 each) Call the SBDC to RSVP or for more information: (209) 954-5089 Marketing in a Down Economy During these distressing economic times, businesses must continue to market. Even though advertising dollars may be limited, there are ways to market the business to ensure customers are aware of your business. This workshop will give business owners tools to reach out to existing and new markets. Phone the SBDC (209-954-5089) for reservations. When: March 2, 10 am-noon Cost: $25