Lexington, KY - Wouldn't you love to sit down and talk about your business with a professional? Someone who wouldn't charge an arm and a leg for their expertise?
Your tax dollars are at work. The Kentucky Small Business Development Center (SBDC) maintains 18 bus-iness centers across the state to help people start a business and run it: a one-stop shop for the lifecycle of the business. Since 1981, the Bluegrass SBDC has served Lexington and a dozen surrounding counties, counseling 284 clients in 2009 alone.
On the startup side, the SBDC works with potential business owners to differentiate an idea from a viable venture and prepare them to seek funding.
"We temper passion with reality," said Shawn Rogers, business consultant and assistant center director of the Bluegrass SBDC in downtown Lexington.
"We encourage due diligence," she added. "We want to make sure it's worth their time and money, because starting a business is the ultimate commitment."
"People are excellent technicians at what they do, but do they know how to operate the business?" said center director Shirie Mack. Each quarter, the SBDC holds a series of workshops, for a nominal fee, in Lexington, Nicholasville, Danville, Georgetown and Frankfort. Topics include the basics of starting a business, writing a business plan, reaching your target market, basic recordkeeping and accounting, and understanding the Schedule C. There are opportunities for businesspeople to facilitate workshops with educational content (no direct selling). Express your interest to Shirie Mack or Shawn Rogers and send an outline.
The SBDC also has access to a tremendous amount of information. Need demographic data? Think of the SBDC as an information clearinghouse. How do you measure against others in your industry? Come in armed with accurate financial data, and the SBDC can analyze your financial statements and compare them with industry competitors. If your gross profit margin is lower than others in your field, your SBDC consultant can help you figure out why.
One-on-one consulting for potential or existing business owners is offered at no cost, and confidentiality is a mainstay.
"What you tell us in this room doesn't leave this room," said business trainer Sean Moore.
In the spring of 2008, the SBDC started Transformational Consulting Services to help businesses change from their present status to a future state.
"They engage us to help them figure out how to adjust their business model," said Gordon Garrett, associate state director of the Kentucky SBDC, whose office is in the Gatton College of Business and Economics at UK.
Operational issues, financial, managerial - there is a wide assortment of problems businesses always have when they're growing. The SBDC's Transformational Consulting Services help business owners sort things out and get back on track.
"We've done 82 of those so far around the state and saved hundreds of jobs in the process," said Garrett.
One enlightening discovery to come out of the program is that many business owners didn't know how they were making money when times were good. Now they have the skills to track sales.
"If you're keeping accurate financial information, you can spot a problem," said Moore. Don't wait until the eleventh hour, but call the SBDC for advice at the first sign of trouble.
Many small businesses become distressed businesses because owners are consumed with day-to-day issues.
"They're too busy working in the business and they don't take time to work on the business," said Rogers, who comes from a family of entrepreneurs. Not paying attention and being too trusting are also ingredients in the distressed business recipe. "The business will not manage itself," Rogers said.
We would all do well to remember this maxim from Moore: "If you don't evolve, you will dissolve."
Selling your strengths and buying your weaknesses is a good theory, but in practical terms, you have to know what's going on. You can't turn over your financials to an accountant and forget about it.
"You still need to understand it," said Mack. "The accountant needs to explain what these statements mean."
Home-launched businesses are growing at an exponential rate, and these business owners face special challenges.
"We're trying to put together a tailored program for home-launched and Internet-based businesses to help them tackle the fairly unique issues they face in launching their companies," said Garrett. In addition to business licenses, taxes, liability and the "usual," home office issues can involve the county planning/zoning board and neighborhood association, among other factors.
If you or someone you know calls the car or dining room table an office, Garrett would like to hear from you as the Kentucky SBDC develops training and individual consulting services geared toward home-launched businesses.
Many home-based business owners buy and sell products they don't make or touch. They're usually tech-savvy but don't have much business acumen.
"It's a hidden economy," said Garrett. "The numbers are staggering."
To learn more about the Kentucky Small Business Development Center, visit www.ksbdc.org.
Kathie Stamps is the co-founder of www.ISBO.biz, an online directory of independent/small business owners.