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HomeMy WebLinkAboutCenVaSmall Bus Dev CtrSmal-1 Business Development Centers 2000 Annual Report Comprehensive Report Dated: February 16, 2001 Tanya Brockett, Director Central Virginia Small Business Development Center 1001 East Market Street, Suite 101 Charlottesville, VA 22902 (804) 295-8198 Phone (804) 295-7066 Fax Email: brockett@virginia.edu Web: http://monticello.avenue.org/Market/SBDC Bank of America Charlottesville Regional Chamber First Virginia Bank--Blue Ridge Fluvanna County Louisa County Orange County Piedmont Virginia Community College University of Virginia US Small Business Administration Virginia Department of Business Assistance CVSBDC High-Speed DSL access provided by NTELOS. Internet & email services provided by Cornerstone Networks. Central Virginia Small Business Development Center The Central VA SBDC provides business development, consulting services, education and training, information services, and research for pre-venture and existing for-profit small business owners and managers. We provide these services in order to contribute to the economic vitality of our region and enhance the sustainability of the businesses we serve. We do this in an innovative, cost-effective, values-driven, quality-focused, and customer-driven environment and manner. The staff of the center responsible for achieving the mission, as of December 31, 2000, includes the following: Tanya Brockett, Director Peter Dummett, Part-time business analyst Teresa Mang'erere, Office and Information Manager Edna-Jakki Miller, Part-time business analyst The Central Virginia Small Business Development Center (CVSBDC) is part of a statewide network whose goal is to contribute to the growth and development of Virginia's economy by providing management, technical, and other assistance to existing and potential small- and medium-sized businesses throughout the Commonwealth. Such assistance is provided primarily through direct one-on- one consulting and through efficient, cost-effective training. The CVSBDC supports the objectives of the US Small Business Administration. Through its partnership with the US Small Business Administration, the Virginia Department of Business Assistance, and our local sponsors, the CVSBDC gains the resources and support needed to. fulfill its mission. 2000 Annual Report The CVSBDC continues its advocacy for small business through its membership and/or interaction with regional chambers of commerce, regional economic development offices, the Virginia Piedmont Technology Council, the Charlottesville Venture Group, the Central Virginia Minority Business Association, the African-American Summit Group, and FOCUS Women's Center. In September, the director sent letters to our state legislators in support of the SBIP, reauthodzation act. See Attachment A for a copy of our support letter and the response from Senator John Warner. The center director, Tanya Brockett, serves as an ex-officio member of the Charlottesville P,egional Chamber of Commerce Board of Directors. This chamber is a strong advocate for its small business members and stdves to support its members in a vadety of proactive ways. The CVSBDC attended several county supervisor and city council meetings throughout the year to encourage the localities to support the needs of small business through the CVSBDC. The center has been trying to educate local officials about the need for assistance to the small business community via the Center. Ninety-eight percent of all businesses in our region are small--having less than 100 employees. These businesses are what make our economy vital. They are the reason our residents can enjoy the quality of life we in this region hold so dear. 200 Capital Formation The CVSBDC has been working with the area investment community to locate equity investment funding for its clients. Access to private investor networks, ~nvestment contacts, and investment opportunities have been provided to several of our higher technology clients. The CVSBDC continued to promote the SBA's Pre-Qualification program within the region. Three clients actually made it from the loan initiation stage to submission to the SBA. Two of the three received a commitment letter. The CVSBDC continues to promote the program in the financial and business community by including brochures about the program in all of our information packages and all of our seminar materials. The CVSBDC also held a capital access program called "Leveraging Your Capital Resoumes," where the SBA was an invited speaker. James 2000 ANNUAL REPORT PAGE 1 Williams promoted the pre-qual program, in addition to other SBA programs, at this seminar. This program also brought together several area lenders to "exhibit" their loan products to attendees. The CVSBDC has met with the new manager of the area's only Microloan program to assist in getting the program back into action. The CVSBDC promotes the program to clients/customers seeking capital within the program's limits. The Center also has Microloan brochures on display in its lobby. 300 Innovation/Technology Transfer The CVSBDC has been receiving email and web-hosting services from Cornerstone Networks as an in-kind contribution. The center also has high- speed Intemet access through an in-kind contribution provided by NTELOS. This access has increased the center's productivity and allows us to provide clients with access to do their research on-site. Our web-based clients can also demo their prototypes in our conference room dudng consultations; We expect to gain many more benefits from the services provided by Cornerstone Networks and NTELOS and we appreciate their support. CVSBDC part-time business analyst Peter Dummett worked with students at the Mclntire School of Commerce to redesign the center's Website. The new website includes F^Qs, updated links to other pertinent sites, and a clean, professional look. The web address is: http://monticello.avenue.org/Market/SBDC. The students were part of the MIS program at Mclntire and used our web development project as their class project for the semester. The CVSBDC continues to be involved in meetings regarding high technology business development within the region. The C¥SBDC is a member of the Virginia Piedmont Technology Council (VPTC) and the Charlottesville Venture GrOup. Peter Dummett and Edna-Jakki Miller worked closely with our local SCORE Chapter to coordinate and market an E-Commerce seminar. The program was well attended (by 50 participants) and was an effective entry into a new area of small business training for our center. In .May, the CVSBDC assisted the local CIT office in promoting the "Executive E-Business Transformation Workshop" in Charlottesville. The Center 'sent a broadcast email to its clients, distributed PSAs to local radio stations, produced flyers, and mailed out brochures. Though the attendance wasn't as high as was hoped, it was a good program. 2000 ANNUAL REPORT PAGE 2 The CVSBDC is working to develop new ways of assisting University of Virginia faculty in their efforts to secure Small Business Innovation Research (SBIR) grant funding. In the coming year, the Center hopes to provide hands-on workshops for researchers interested in submitting proposals for SBIR funds. The program will help them bddge the gap between the technical side and the business side of their research efforts. 400 International Trade The director met with Mr. Vangroll, the new Virginia Economic Development Partnership liaison for our region. We hope that we will be able to encourage our clients to use his expertise and resources to expand their businesses beyond national borders. Minority Business In 2000, minorities comprised 21% of the Center's client base, 18% of which are African-Americans. This is consistent with the minodty population within the state. In the Fall of 2000, the Center hosted a capital access training program specifically for minodty and women-owned firms. Twenty-six participants took advantage of the financial options provided to them. Several partici pants became clients of the center to gain further assistance The center continues to be involved with the Central Virginia Minodty Business Association, a membership organization designed to support local minodty businesses. 600 Resource Development Through significant effort by the director, the Center was able to raise approximately $21,000 in additional cash match. A large portion of this match ($5,000 each) was provided by three of the nine counties we serve: Fluvanna, Louisa, and Orange. We hopethat in the coming year (2001) the two largest localities, which consume over 60% of the Center's resources, will make a contribution to support our work on behalf of their residents. Private sector match was Provided by First Virginia Bank--Blue Ridge ($4,500 over three years), and Bank of America ($2,000). Several other banks sponsored our seminar programs in 2000; they include: F&M Peoples, First Citizens Bank, Guaranty Bank, OneValley Bank (now BB&'I-), Second Bank & Trust, Virginia Community Bank, Virginia National Bank, and Wachovia Bank. 2000 ANNUAL REPORT PAGE 3 The CVSBDC had several volunteers working in an administrative capacity dudng the first half of the year. These volunteers were acquired through Charlottesville Works, a PVCC Piedmont Works program designed to prOvide social service clients with the tools and information they need to go to work. Piedmont Works provides assistance with the entire process of obtaining employment: career exploration and planning, assessment, education and job training, re-training, job search assistance, and access to local job openings. The volunteers from this program provided support for the Center, its clients, and its staff. One of the volunteers was working on her GED while working at the Center. Since then, she has acquired her GED and started a full-time job at the University of Virginia. As briefly mentioned in Section 300 Innovation, the CVSBDC established an in-kind relationship with COmerstone Networks, a very successful, local Intemet service provider. Cornerstone has agreed to provide the Center with easy dial-up Intemet access, e-mail boxes, website hosting, and domain registration. High-speed Intemet access is now being prOvided for the Center by NTELOS. NTELOS included installation and a DSL modem as part of the contribution. We welcome NTELOS as a new in-kind sponsor of the Center. 700 .Procurement No significant activity to report. Access to the SBA's PRO-Ne~)service has been provided to clients since the CVSBDC upgraded its computer resources. The Center has very few clients who use procurement services, but having online access to procurement opportunities has been invaluable to the few clients who do. 800 Special Focus Groups Slightly more than 10% of our clients are veterans. No special programs were provided for this portion of the client base besides the offedng of the prequalification program as a financing option. The center director continues to serve on the Board of Directors for the Charlottesville Area ,School Business Alliance (CASBA). This organization focuses on the future workforcc -the K through 12 population--and provides a link between education-and business. 900 Economic Development The CVSBDC continues to work with the economic development offices within the region in an effort to stimulate small business development, 2000 ANNUAL REPORT PAGE 4 expansion, and viability. In so doing, issues of concem to economic developers in the region were broadcast to constituents to provide pertinent information (such as the state incubator grant opportunities). The director met with the economic development director for the ..City of Charlottesville, Aubrey Watts, to discuss how we could better assist one another. W.e expect to be able to help the City increase its job creation rate through our programs. In calendar year 2000, City residents used 34% of our client resources. The information manager, Teresa Mang'erere, monitors the MIS data to determine where most of our client time is spent. Clients are only those that are seen by CVSBDC consultants in one-on-one consultations. Attendees are participants in our training events. Here is the year-to-date information Mrs. Mang'erere reports, listed alphabetically by county (after Charlottesville, the City): City of C¥ille 34% 37% 46% Albemarle 29% 31% 17% Culpeper 4% 3% 2% Fluvanna 7% 4% 7% Goochland 1% 0% 1% Greene 4% 5% 4% Louisa 4% 5% 3% Madison 1% 2% 2% Nelson 3% 3% 6% Orange 4% 6% 4% Rappahannock 1% 0% 0% Outside of Region 8% 4% 8% This table reveals that the greatest percentage of our clients come from, and more hours have been spent in, the City of Charlottesville and Albemarle County than any other location. Please note that this information is based on the place of business, irrespective of where' the client lived, unless the client was home-based or pre-venture. 2000 ANNUAL REPORT PAGE 5 In the training arena, a vast majority of customers are from the City of Charlottesville. This stands to reason since most of our training events are actually held in the City. 1100 Other Activity From January to Apdl of this year, the director co-instructed a NxLevel Micro-Entrepreneur's Course at the Fluvanna Correctional Center for Women. David Shanks of the New River Valley SBDC was the co- instructor. Teaching to a class of eleven incarcerated women was an enriching experience for the Center and for the guest instructors who participated in the program. A Richmond-based non-profit, New Visions New Ventures, was the creator of the concept of teaching incarcerated women about entrepreneurship. This course allowed them to leam how to operate a small business, and helped them write a business plan for the business they intended to launch after their release. Several of the women have been released since the conclusion of the course and have been in contact with the Center and others in the SBDC Network for further assistance. 1200 Success Story Business analyst, Edna-Jakki-Miller, provides this success story on a Center client. The success story highlights a woman-owned and managed transportation service that operates a shuttle service primarily to and from the local and regional airports. The company started almost two and a half years ago and has grown into a popular and well-received business boasting a fleet of six vans and fifteen ddvers carrying upwards of 1800 passengers an average of 30,000 miles each month. The owners came to the SBDC to receive assistance with formulating a business plan and develop a loan proposal. Over the past five months, with assistance from a business counselor, the owners have completed a strategic business plan that includes a realistic expansion plan and formulated strategies for market implementation indicating prof~able growth over the next three years. With the expected success of this growth and expansion, the business will contribute to the attractiveness of Charlottesville and particularly its airport as a tourist and business destination. The company will continue to employ over 17 people and residents will benefit from having alternatives for transportation. 2000 ANNUAL REPORT PAGE 6 1300 Travel No unplanned, out-of-state travel occurred dudng this pedod. The Center experienced a budget squeeze this calendar year. Due to the lack of local cash match funding (despite the new money raised), the Center operated on a total budget that was $88,900 less than expected (grant, cash match, and in-kind match combined). This meant that we effectively left $46,000 of grant money on the table. The Center's director and management committee have been working hard to ensure that this does not happen in the coming year. We will need the fihancial support of our regional municipalities in order to continue providing our full-level of services to their residents. As mentioned in Section 600--Resource Development, the Center solved a problem sited in our last report regarding online accessibility for its computer: systems. The solution came in the form of a DSL high-speed, multi-user connection provided in-kind by NTELOS. NTELOS is an Integrated Communications Provider (ICP)with headquarters in Waynesboro, Virginia. NTELOS provides a broad range of products and services to customers in Virginia, West Virginia, Kentucky and Tennessee including digital PCS, dial- up Internet access, high-speed data transmission, DSL (high-speed Internet access), and local telephone service to businesses and long distance telephone services to business and residential customers. The DSL allows the Center to go online during client sessions, which is particularly useful for our Internet-based clients and those needing real-time information. Another issue being resolved through in-kind contributions is computer maintenance, upgrading and repair. We have several old computers and a network that needs technical support. Mike Burton, The Computer Man, is a small computer services firm in the area that has agreed to keep our systems running. 1500 Women4~med Businesses Women compose 40% of the center's client base, and male/female co- owned ventures make up another 8%. This is faidy consistent with past ratios. As mentioned previously, the capital access program held in the fall was geared towards women and minority-owned firms. 2000 ANNUAL REPORT PAGE 7 The director and part-time business analyst are still involved with FOCUS Women's Resource Center here in Charlottesville and will pursue opportunities for expansion of services to this market. I~:~X) Ec~nomk: Impa~ The CVSBDC worked with 384 clients in 2000. This number does not include the customers that use our office resources or seek information nor does it include attendees of our seminars. 'Of these 384, 126 are now Closed cases (inactive clients). The economic impact generated by clients of the CVSBDC is represented in the following chart. "MOA Projections" are those milestones identified in the 2000 Memorandum of Agreement to which we were aspidng for this time pedod. "Deviations" in parenthesis are missed targets. Historical Data I Jobs I Jobs I Total Capital Increased Sales ~Created ~Retained~ Investment Quarters 1 & 2 Quarters 3 & 4 $3,293,880 $5,458,875 Actual Year to Date 86 388 $4,253,500 $5,848,875 MOA Projections 39 29 $2,153,800 $1,370,600 Deviations 47 359 $2,099,700 $4,478,275 Note that most data are collected on economic/mpact surveys in the fourth quarter of each year. Other center milestones are pdnted below. These milestones were set in July of 1999 to be achieved the following calendar year. Other 2000 2000 # % CVSBDC Milestones Proposed Actual Variance Variance Consulting (Unique Clients) Short-& Long-Term I 197 I' 384 I 187 I 195% Training No. of Training Units 36 25 (11) (30%) No. of Attendees 288 264 (24) (8%) Pre-Qualification Program Loan Letters Rec'd I 6 I 2 I (4)I (67%) 2000 ANNUAL REPORT PAGE 8 The Center projected that it would see 197 unique clients this year. We exceeded that goal significantly, even if only active client numbers are used (a balance of 258 clients). We were only able to accomplish this through the efforts of our volunteer and part-time consultants. Two additional volunteers were needed to supplement time lost by the director's fundraising efforts during the year. In the third and fourth quarter, we essentially had only one active part-time consultant, Edna-Jakki Miller, working with the director to meet client needs. Most of our consulting sessions focused on business start-up or acquisition issues including business and financial planning (39%). Sources of capital, the second most popular consulting topic, comprised 16% of the sessions. Forty-eight percent of our clients were in business, 45% of our clients were in the service industry, and 28% were sole proprietors. Our training numbers are not as Iow as they could have been as a result of the restructunng of the seminar format by our co-sponsor after initial milestones were set. When the milestones were set, we ran between 30 and 40 sessions per year. After the restructuring, several seminars were combined into only 14 projected sessions for the entire year. Fortunately, we were able to put on several other programs to supplement the co- sPonsored programs, and, our co-sponsor again changed the focus later in the year, which increased the number of programs. Unfortunately, a NxLevel course slated for Culpeper in April was cancelled due to Iow enrollment despite massive marketing efforts. We held a one-day session dudng small business' week instead. Additionally, eight other SCOREJSBDC sessions were not held due to Iow enrollment. We noticed an increase in interest in the SBA Pre-qualification Program dudng the second and third quarters. But only three packages made it as far as being submitted to the SBA. Two of those were approved by the SBA and subsequently funded. One never completed the SBA review process and was funded privately. t700 Public Appearance Reports The center was brought to the attention of several thousand people dudng a half-hour radio show' in-March. Dadene Scott, the news director, interviewed the director and business analyst for the "Mix Forum" on Mix 107.5. The show covered a variety of small business topics and was also 2000 ANNUAL REPORT PAGE 9 used to promote upcoming training programs. See Attachment B for a follow-up letter from the station. Due to the demand on center staff's time, most appearances involved networking opportunities to promote the CVSBDC. These include events such as: the Chamber. . member meetings, training programs, and meetings with area business and banking professionals within our region. CVSBDC materials have also been on display at local chamber offices, the Microioan office, FOCUS Women's Resource Center as well as other business locations. No separate public appearance reports are provided in this report. 1800 Publicity The Charlottesville Regional Chamber of commerce, included information about the Center in their 2000 Business Plan that was unveiled at an annual membership breakfast in February. The center director was also introduced to the several hundred in attendance at this breakfast. The business plan provides the CVSBDC with quite a bit of exposure throughout the year. (See Attachment C for press clipping.) The Chamber also included the CVSBDC as a pick up point for their Resource & Referral Membership Directory. The Charlottesville Regional Chamber of Commerce's monthly newsletter, Chamber Comments, frequently includes information about the CVSBDC. In March-April 2000, they pdnted an announcement regarding Cornerstone Network's in-kind Intemet contribution to the Center. (See Attachment C for press clipping.) The director is also listed in each issue as ex-officio member of the Chamber Board. This newsletter is sent to the Chambefs entire membership. .Just before Smail Business Week in May of this year, the local Real Estate Weekly did a cover story on the CVSBDC. This weekly publication, though pdmadly focused on the regional real estate market, typically has one feature article of interest in each issue. The author, Joanne Lattiak, wrote the most extensive article about the CVSBDC in recent memory. See Attachment C for a copy. After making a presentation to the Regional Chamber's board of directors in May, the director was contacted by Daily Progress staff wdter, Reed Williams, to provide details on the Center's funding issues. Though there a few minor flaws, this article brought the Center to the attention of many. Within two months of that article, the Center received an additional $3,500 in cash match and $2,350 in in-kind contributions. 2000 ANNUAL REPORT PAGE 10 All articles mentioned in this section are copied in Attachment C,---Publicity. 1900 Attachment Attachment A Advocacy Attachment B Public Appearance Attachment C Publicity 2000 ANNUAL REPORT PAGE lator arm of SBIR ,~nator er, regarding SBIR PAGE 12 Page 1 of 1 Tanya Brockett From: Tanya Brockett [brockett@virginia.edu] Sent: Tuesday, September 26, 2000 1:51 PM To: senator@wamer, senate.gov Subject: HR 2392 Dear Senator Warner, On Monday, September 25, the House of Representatives passed the Senate version of HR 2392, the SBIR reauthorization bill. The House attached a key amendment that reauthorizes SBA's programs for another three years, including the Small Business Development Center program. Senate passage of the House passed HR 2392 by this Saturday, September 30 is urgently needed. Failure to pass HR 2392 by September 30 will mean: 1. SBA will be unable to fund fiscal year SBDCs; 2. The SBA 504 loan program, which many of our small business clients utilize, will cease to exist; 3. The SBIR program will expire and millions of dollars of pending SBIR agency solicitations will be terminated; and 4. SBDCs may suffer a substantive reduction in federal funding because a new statutory SBDC funding formula will not be enacted. Here in Central Virginia, the SBDC provides free, confidential consulting services to hundreds of entrepreneurs and small business owners each year. We also train and provide information to hundreds more. We help them to raise millions of dollars in capital, and increase their sales by millions as well. These Clients of our create or save hundreds of jobs each year. They need our consulting, they need our training, and they need our business information resources. Don't allow them to lose this valuable resource. On behalf of the Central Virginia SBDC and thousands of its past small business clients, I respectfully request that you contact Senator Christopher "Kit" Bond and John Kerry to urge that they call up HR 2392 for final passage before the fiscal year ends this Saturday. We also urge you to support HR 2392 when it reaches the Senate floor. Thank you for supporting the primary driver of the Virginia economy-small business. Respectfully, Tanya Brocke~ Tanya Brockett, Director Central Virginia SBDC 1001 East Market Street Charlottesville, VA 22902 PH: 804-295-8198 Fax: 804-295-7066 Email: brockett~virginia.edu 2/19/01 JOHN WARNER VIRGINIA ARMED SERVICES. CHAIRMAN ENVIRONMENT AND PUBLIC WORKS RULES AND ADMINISTRATION October 26, 2000 225 RUSSELL SENATE OFFICE BUILDING WASHINGTON. D~ 20S10-,[601 (2021 224-2023 senator@warner.senate gov www sen&te.gov/~warner/ CONSTITUENT SERVICE OFFICES: 4g00 WORLD TRADE CENTER MAIN STREET CENTRE II 101 WEST MAIN STREET 600 EAST MAIN STREET NORFOLK, VA 23510-1690 RICHMOND, VA 23219-3538 (?ET) &41-3079 (804i 771-2S79 23!5 FEDERAL BUILDING 1003 FIRST UNION BANK BUILDING P.O BOX 887 213 SOU.TH JEFFERSON STREET ABINGOON, VA 24212-0887 ROANOKE. VA 24011-1714 (5~0) 628-8158 1540) 857-2676 Ms. Tanya Brockett Director Central Virginia SBDC 1001 East Market Street Charlottesville, Virginia 22902 Dear Ms. Brockett: Thank you for contacting my office to express your views about Small Business Innovation Research (SBIR) Programs. As you may know, if a federal agency performs research and development (R&D), and receives $100 million or more of federal R&D money, then 2.5 percent of that federal agency's R&D budget must be set aside for SBIR programs. To date, fi.om its inception in 1983, SBIR programs have given $9.7 billion to more than 55,000 SBIR companies. SBIR companies must total less than 500 employees and are primarily involved with the high technolOgy sector. On July 19, 2000, the Senate passed by unanimous consent, the Small Business Innovation Research Program Reauthorization Act of 1999, which would extend the SBIR program until 2007. However, the House of Representatives added some additional authorization programs to this legislation. This legislation is now before the House of Representatives. You may wish to contact your Representative to express your views. Again~ thank you for contacting me on this important piece of legislation. With kind regards, I am Sincerely, John Wamei JW/dal PRINTED ON RECYCLED PAPER ,Ip from Mix 107,5 mdi© stationI rock & roll without the hard edge March 29, 2000 Ms. Tanya Brockett Director Small Business Development Centers 1001 East Market St. Suite 101 Charlottesville, VA 22902 Dear Ms. Brockett, It was a pleasure meeting you yesterday. come in for the "Mix Forum." I appreciate you taking time out of your day to Your organization has so much to offer the community and your dedication to the cause is very evident. So, anytime you'd like to get any information out to the public please feel fi'ce to give me a call. Sincerely, Darlene Scott News Director Air Virginia, Inc. · 255 Albemarle Square · Charlottesville, Virginia 22901 Phone:804/964-1076' Fax:804/964-1080' Web: mix iO75.cstone, net ]~ 'rOv arti( "New chamber chairman: ness March 2000. DevelOpment bdef "New article, "Central Virginia small BUSiheSS for New May 11-May 17,: 2000. article~ 'q'op funding hinges on.grants for area opment center," June 14, 2000.~ PAGE ¥7 .... el. ml ell ,' EconOmic DeVelopment Acribusiness Roundtable Hosts Delegation from East Africa Tile Agribusiness Roundtable was pleased 1o [lost a reception on March 3rd for visiting businessmen Linda Tucker, Fortu~atus from East Oticno Okwiri, Greer Africa. The Woillson, Jane Dittmar, event proved Dr. E, Mukasa-Mugerwa. to be an excellent opportunity for our members to share information about business in ou~?egion and vice versa. Ag/~ibusiness Chairman, Frank Keplinger of Real Estate III Commercial Properties, gladly responded to questions from the two gentleman as did other Agribusiness members in "roundtabl_e' fashion. Dr. E. Mukasa-Mugerwa and Mr. Fortunatus Oticno Okwiri are repre- sentatives of the Agricultural Business Services. an American firm working with farmers in East Africa. During their one month stay in the United States. they will be visiting farms and agribusiness groups across the country learning American techniques and approaches. While in Charlottesville, Dr. Mugerwa and Mr. Okwiri were hosted by Greer Wilson of Greer and Company who conducted a three-day management training course for them. New Intemet Service Provider for SBDC Cornerstone Networks has become tile in-kind, internet service provider for the Small Business Development Center. Watch future issues of the Chamber Newsletter for the unveiling of the upgraded website! The SBDC greatly appreciates Cornerstone's con- tribution and commitment to the region's ~small business community." The center can now be reached at sbdc~cstone.net The SBDC is sponsored by the Chamber. PVCC, UVa, the Virginia Department of Business Assistance and the U. S. Small Business Administration. Confidentials consul- tations are provided free of charge. Small Manufacturers are Warming up to the Net Small manufacturers are starting to get hip to the Web. Here is how a sample of small manufacturers answered questions concerning elec- tronic commerce posed to them by the National Association of Manufacturers in its annual survey of small manufacturers: · 80% have their own Web sites · 63% use the Internet for marketing · 25% use the Internet for direct sales · 19% have used the Web to recruit employees · 55% have used the Internet to receive federal regulations · 72% have used the lnternet to con- duct research on their competitors · 19% use the lnternet for procure- ment · 43% use the Internet for sales · 24% use the lnternet for shipping · 58% use the lnternet to communi- cate with domestic customers · 41% use the lnternet to communi- cate with overseas customers · 47% use the lnternet to communi- cate with suppliers · 24% use the lnternet to communi- cate with their OEM's Source: Manufacturing News~ November 12~ 1999 CACVB Reports Record Increase The Charlottesville-Albemarle Convention & Visitors Bureau reports an increase of 14,000 room nights sold and $3.800,000 in room revenue for: 1999. For the month of January, the hotels reported a increase in occupany when comparing 47.01% for 2000 to 43.54% for 1999, and a decrease of the average daily rate when compar- ing $63.76 for 2000 to $67.83 for TAXABLE SALES FIGURES Based on' retail sales taX revenues, the figures noted below were published by the Commonwealth of Virginia, Department of Taxation, Richmond, Virginia. ~, COUNTY/CITY 3RD QUARTER 1998 3RD QUARTER 1999 Albemade $189,875,157 $224,970,550 Charlottesville 148,008,344 152,344,515 Fluvanna 9,217,407 10,595,012 Greene 12,718,374 13,100,292 Louisa 22,173,798 23,561,163 Madison 12,466,912 14,038,996 Nelson 13,343,262 16,151,759 Orange 30,464,277 32,972,943 13 '~ A PUBLIC'~TION OF THE CHARLOTTESVILLE AREA AS- $OCI~TION OF REALTOit$~) %ge 38 CHARLOTTESVILLE AREA REAL ESTATE WEEKLY May I t-May ' CENTRAL VIRGINIA StflALL BUSINESS DEVELOPMENT CENTER: AN INVALUABLE RESOURCE FOR NEW' BUSINESSES S,, yon have this great idea for a business. You've thought about it for months, maybe ,cars. You've envisioned vour office or your ,h,t :font. Yom'ye thought about your product. Y,,, ,c. dreamed about what it would be like to be w,, .Tn bols. And now you're ready for launch. Or arc- ~,,u? If you'd like a bit of invaluable advice from' thr ~ountless entrepreneurs and small business o~,'nr~s who have taken the plunge before you - bel,,re you do a thing, give the Central Virginia %mall Business Development Center (SBDC) a call. Thr SBDC is part of a national network of cen~¢.rs sponsored by the Small Business Kdmmtstration (SBA). Tanya F. Brockett. Director ot the center, says the Charlottesville SBDC was one of thc earliest centers to be created in Virginia. The ,time now has 26. ~\ ~rgm;a recognizes the need for assistance to :mall business. If you look at our region i~ pa~ i~¢ ,lat. 99 percent of the businesses have fewer than IO0 employees: 80-some-odd percent have fet~c~ than 20 employees.' says Brockett. "In the ':~, ahn¢tst all new iobs tn Virginia were created bv .:hi.d} btlslnesses, so it just makes sense that if votl Wahl lo keep your economy su'ong, then you want to ~.pport small businesses," Th:, SBDC is a free service avaiIable to anyone ~nm¢'tt'sted :'1 obtaining first-rate'advice from exl~c* ~enced business leaders concernmg all aspecLs ,H 'unn:nK a business. The SBDC provides m~aluahle assistance through no-fee oneIon-one nlalld~ement con.~lhin~, resot:rces, and seminars, Thc SBDC is funded bv many local orgamzations, including the Chamber of Commerce the Univers:tv of Virginia. Piedmont Virginia Community. College, and the Virginia Department of Business Assistance, and the SBA, With small businesses traditionally feeling neglected by the government, centers such as the SBDC help to bridge that gap. by Joanne photos by Mary S~mles MortJn "That's one uf the thin~s that ~e SBA strives to chauge b~ providing loan gua~ntee programs, support, iuformation ahd training for small businesses." says Brockett '~We are the local parmers tbr the SBA. We re the real people out in the field so to speak, that are helping small businesses one on one. The SBA h~ pro. ms that we can offer to small businesses to help ~em grow." The Charlottesxflle o~ce ts located at I~l E~t Market Street. an office stn~e ~t shares ~th SCO~ {Service Corps of Retired Executives). ~ile the SBDC has full-time employees, SCO~ is made up of retired execuuves frum the private sector and past business owners who come in on a volunteer b~is and offer their experuse. Former marketing execuuves, for instance, offer marketing advice: CP~ and accoun~nts offer financial advice· The SBDC stuff is more eclectic in nature and can speak to clien~ on the whole gamut of business, The SBDC office is s~ed bv Brockett. Business ~nalvst Peter Dummett. and Office and Information Manager Teresa Williams· There also from the ~iversitv of Virg]ma. Originally from Australia. Dummett came to the SBDC ~ a volunteer m order to become involved in the community, This volunteer pos:don evolyed into a full-time job As a business analyst, he consults with clients, ascertains their business s~tuauon and needs and offers help in those areas. "For some people, we re a sounding board because ~hev don'~ have many other people they can just talk to about this" explained Dummett "Because it's confidential, they can talk abou~ whatever they like and know it ~11 not go beyond the office. That's ~mpormnt because some people who are looking to start a new business are cu~enfly employed." Dummett ~ys the ser~ces offered by the SBDC are not exclusive to those s~rung a new business. Existing business owners come in for advice on s~ng issues and ~th problems sm~ng afloat· For ~ose people, the SBDC is a good-sounding board. a place to can get some feedback on their ideas. ~ommon Denominators SBDC clien~ are seen by appointment and range from very small scale operators, such as street vendors, cleaning services, or consul~nts, up to large e<ommerce applications and those gearing up for venture capital. If there is a common denominator among those who come to the SBDC for ad. ce, it would have to be the need for funding. "Everyone needs money, but a lot of people aren't sure how much they need or where they can get it," ~ys Dummett. "People make the mistake of tr~ng to start up ~thout enough rituals. Often they haven't planned that far ahead. They ~ink, okay, I've got $10,~0, that's a lot of money, I should be fine. But they don't realize that in three:or four months, they've got money owing to them and they need the cash to poy their bills." The SBDC is aware of that need for mone~; encourage people to focus on their cash flow monthly for the first year. and then beyond that as well, for ~e next ~o or three years. I see cash as being the lifeblood of the business. They might have enough food. but if they don't have enoug'h blood in their system, they aren't going' to sttrwve.' Business plans are not a quick and easy exercise Th~/ require a lot of insightful thinking. A simph business plan typically includes such information a, a description of the company; market analysis: product~ and services: a marketing and sales plan~: business operauons, management, and ownership organization and personnel: fnnds required and their uses and repayment: detailed financial data: and a host of appendices and cab:bits. There are some basic points that owners need understand and master prior to starting a business Just a few of these include, having a cleat' understanding of he nature of their business :ts competitive advantages, and business goals: Defining their industry and target markets, understanding lead times knowing their competition and having a competitive strateg7, as well as knowing regulatory restrtctions. In addition they must know their products add services from the users' perspective, know its life cycle. nnderstand copvrights, patents, and trade secrets. and be involved in research and development Marketing and sales strategies must be defined, production and service delivery procedures must be ils place, and owners must have a handle on their management staff, know their business' legal structure, and develop a professional relationship with their board of directors and advisors, All of this, not to mention mapping onl the business's short-and Iong'-term tinancial.strateg'les, can make even the most enthusiastic business owner's head spT. That's why SBDC's re:au! can be invaluable "A lot of people have good business plans, the plans are m their heads." says Dummett "The problem is that it's hard for them to look at the plan objectively and explain ~t to potential investors." Dummett says having a sound business plan can potentially save a business'owner thousands of dollars, "I actually had one client prepare three business plans for three different start-up ventures," he says. "Each ttme he did that. he came to the conclusion thai il wouldn't work ] see that as a major success because he conld have lost hundreds of thonsands of dollars. Sure, he invested a tot of time and effort, but he saved a lot of money. He's now working on another business plan. ] think the experience he's had already, in planning and research will greatly benefit him." The mere exercise of writing a b[lsiness plan is useful because it shows would-be business owners' their areas of weakness so they can acquire the help they need before they make cosdy mistakes. Networking Forming business alliances is an essential element in the success of every business. In the past, businesses operated in a highly competitive arena and would not even consider the possibility of networking. Rarely would you see an advertismg agency work side-by-side with another advertising agency, for both feared the other would steal clients. ~Aq~ile that fear-based mentality still exists to a certain degree, many businesses find networking to be a win-win situation. Business Top funding hinges on grants for area development center By REED WILLIAMS Daily Progress staff writer Ifa loca] nonprofit network is to receive the maximum federal grant funding available to assist area small and medium-sized business- es. it needs more cash. The Central Virginia Small Business Development Center in Charlottesville needs commit- ments for another $27,900 by July 1 m order to match half of the available $161,400 in federal money Unless this happens, center offi- cials said it will miss out on $55.800 rendering it unable to update business resources, com- puter software or hardware and forcing it to reduce paid staff from four employees to two. '"the [centerl is basically at a crisis point," said Tanya Brockett, the development center's director. While Fluvanna. Orange and Louisa countms each have con- tributed $5.000 to the center this year. Charlottesville and Albemar- le County have given nothing, though Brockett said they together swallowed 63 percent of ~ts resources last year ~The county ~s not in favor of business development." but Albe- marle residents use the services, she said "We haven't educated · them enough to understand that." Albemarle County Supervisor Charlotte Y. Humphris said the center's officials came to the Board of Supervtsors too late and with too little ~nformatmn "We didn't kno~' about the request really until it was too late to get it into the budget," Humphris said Tuesday "There just wasn't enough information to convince us that we should insert something into our budget that we lust didn't have enough ume to research." While the center has existed since 1989. Brockett said "We have not let our needs be known," explaining in part why neither the c~ty nor the The Central Virgin ~a Small Business Develop- ment Center needs another $27,900 by July i in order to match half 'of an available $161,400 in federal money. county ever have donated "We've just become more aware of it in the last couple of weeks." City Councilor Da~qd d Toscano smd "On the face of lt. ~t appears to be a very attracuve way to lever- age more momes for investment m the community, so I'm very ~nter- ested in exptonng ~ts usefulness to enhance that and increase that investment" The development center strives to improve Central Virgnma's econ- omy by offering management, tech- nical and other assistance, includ- ing job training, to Ioca businesses. Brockett said the center has creat- ed 162 jobs in the c~tv since 1996 by helping businesses expand. Center workers say they hope to provide consultation to 200 clients, train more than 280 people, create another 60 jobs and bolster clients' sales and investment potential In order to get the maximum amount for Central Virginia (the money was provided to the Vir: gtma Department ,f Business Assistance by the U S Small Busi- ness Administrat,on~ the center must provide a cash match of $80.700. as well as another 50 per- cent m any combination of cash and other contributions The Umversity of %rg~ma has give'n $19.000, Piedmont VirDma Community College has put m $10.000 and the Charlottesville Regional Chamber of Commerce donated $5. DO0. Several banks con- tributed as well