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Home My WebLink AboutPCD 2021-05-03 Item 1B - Update - Highline College Small Business Development CenterCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development Committee FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: April 26, 2021 SUBJECT: Small Business Development Center ISSUE Briefing by Highline College on the services provided at the Small Business Development Center. BACKGROUND The City of Tukwila partners with other south King County cities to help fund the Small Business Development Center (SBDC) at Highline College. The City's annual contribution included in the Economic Development budget is $12,000. DISCUSSION The SBDC provides essential services to small businesses in the City. Staff from Highline College will provide a briefing on the various services offered by SBDC, including providing an overview of the services offered in response to COVID-19. FINANCIAL IMPACT N/A. The City has already approved the budgeted funds for the SBDC for 2021 and 2022. RECOMMENDATION Discussion only. ATTACHMENTS • Presentation prepared by SBDC staff at Highline College 5 6 HighIine College Economic and Business Development Programs CO Our Services & Who We Serve StartZone: Underserved Communities - limited English proficiency (LEP), minority, immigrant, low -and -moderate income Group training, one-on-one business advising geared towards pre and early startups. litStart Zone An Initiative of Highline CoI!ege O Our Services & Who We Serve WE__ I 1111=1111 IE SAUSAGE LT.l a' "They (SBDC advisors) are everything you would want when you need advice, are try- ing to grow your business, or are applying fora loan." Verjee, a 2009 graduate of the entrepreneurship program at Babson College in Massachusetts, said he understands business plans and scalability and executing a good idea to its fullest potential. He also understands the value of the good advice and an experienced sounding board, both of which he found at the Washington SBDC. Danny House, Owner Dan the Sausageman Kt KW : W A Pefrce rn Shockley helped... "This is where we are now, this is where we want to be. How do we get there?" Grant Jones, co-owner KuKuRula Gourmet Popcorn, Seattle, WA Grant Jones, owner KuKuRuZa Three Trees Yoga owners: Jeni Martinez, "We never leave our advisor's office Suzy Green and Karen Schwisow without at least three great ideas, three action items and renewed focus and en- ergy for our business." Suzy Green, Co -Founder Three Trees Yoga, Federal Way, WA Jack Walsh, owner Sub Zero Ice Cream "Rich gave advice and feedback and helped us significantly," Walsh said. lack Walsh, owner Sub Zero, Federal Way, WA Our Services & Who We Serve SBDC: Established businesses & startups with industry experience Primary service is confidential, no cost one-on-one business advising WASHINGTON What We Do Business focused training &technical assistance Areas of Focus; -Financial planning and cash flow management -Access to capital -Marketing -Business Strategy and Planning -Research FrcStart Zone An Initiative of Highline CoI!ege WASHINGTON Situation Ana lysis w Meet the Team Njambi Gishuru — Microenterprise Specialist — English and Swahili Jaqueline Garcia — Microenterprise Specialist — English and Spanish Phon Sivongxay — Certified Business Advisor — English and Thai Rich Shockley — Center Director and Certified Business Advisor — English Meet the Team Njambi Gishuru — Microenterprise Specialist — English and Swahili 1.-r StartZone An Initiative of Highline College A M E� ASS SBDC WASHINGTON O) Meet the Team Jaqueline Garcia — Microenterprise Specialist — English and Spanish 1.-r StartZone An Initiative of Highline College WASHINGTON Meet the Team Phon Sivongxay — Certified Business Advisor — English and Thai 1.-r StartZone An Initiative of Highline College IC WASHINGTON AMERICA S SBDC WASHINGTON CO Meet the Team Rich Shockley — Center Director and Certified Business Advisor — English .1.-r StartZone An Initiative of Highline College CO Since — COVID-19 Tukwila Clients Served 59 Unique Clients *35 direct service one-to-one assistance *24 online training and webinars 1.-r StartZone An Initiative of Highline College WASHINGTON COVID Impact on Small Business Three Separate Groups Businesses hit hard through closures Restaurant, Bar, Hospitality, Travel, Childcare Businesses who have profited through closures Construction, technology, already established online sales and pick up / deliver service Businesses that were marginal prior to COVID Impacted by change in buying patterns The Gap in Stimulus Immigrant and Refugee communities - Lack of awareness of stimulus money - Language and cultural barriers - Challenge with application & documentation - Ineligible due to business structure or immigrant status litStart Zone An Initiative of Highline CoI!ege ICA' WASHINGTON Technical Assistance During COVID-19 Five Primary Areas - How to secure stimulus funds - We got the money, now what - Management, control & forgiveness - Reopening and Rebuilding - Added focus to underserved litStart Zone An Initiative of Highline CoI!ege WASHINGTON Technical Assistance During COVID-19 Loan Forgiveness Access to stimulus funding Cash flow management Essential costs vs non-essential costs Cash balances Use of loan funds "What if's" —business assumptions Stress the cash flow to consider alternatives Stimulus Loans and Grants PPP drawl&2 EIDL, EIDL Advance, Targeted EIDL Working Washington Grant 1, 2, 3, 4 Local City grants RRF Restaurant Revitalization Fund (May 3rd) SVOG — Shuttered Venues StartZone An Initiative of Highline CoI!ege WASHINGTON Why Focus on Cash Flow &Financials During COVID-19 1) Annually - when they have to give their accounting records to their CPA to do the taxes = 25%-35% 2) Monthly -because they have come to believe they should = 75%-80% 3) Weekly — 52 times a year without fail = 95%+ 1 -or StartZone An Initiative of Highline CoI!ege A M E R I C ASS SBDC WASHINGTON Looking to the Future Faulty assumption, two legs of a stool is enough. • Retention / Expansion • Attraction • 3rd Leg: Entrepreneur Development System frcStartZone An Initiative of Highline College AMERICA SBDC WASHINGTON Going Forward Reopening Safety and Sanitation Cash Management Adaptation to Changing Markets 1.-r StartZone An Initiative of Highline College WASHINGTON Turnaround, Survival & Exit Strategies No one is saying this will be easy......... Y r Turnaround, Survival & Exit Strategies No one can guarantee the outcome Turnaround, Survival & Exit Strategies Funding alone will not be sufficient to weather the storm Turnaround, Survival & Exit Strategies Develop your individual action plan Turnaround, Survival & Exit Strategies If it's time to exit, what is my strategy Looking to the Future Partner with African Chamber to engage immigrant communities in South King County Partner with Seattle Southside Chamber for outreach to immigrant communities Expand StartZone service capabilities —training and one-to-one support 1 Ic StartZone ■ An Initiative of Highline CoI!ege WASHINGTON Highline College Economic & Business Development fitStart Zone An Initiative of Highline College AMERICA'';: SBDC WASHINGTON