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HomeMy WebLinkAboutReg 2022-10-17 Item 4B - Presentation - Small Business Development Center at Highline College Update(Small Business Development Center) Washington SBDC Locations Coupeville Poulsbo Port Ange Everett "Redmond • Bellevue Seattle Tukwila Des Moines Kent Auburn Wenatchee Pullman Kelso Kennewick Walla Walla Vancouver StevensonGoldendale AMFa e',s Washington SBDC Network Headquarters OncRedmond WHO IS THE SBDC Established in 1980 through the Small Business Development Act We partner with the U.S. Small Business Administration Funded partly through a cooperative agreement with the U.S. Small Business Administration Matching funds from local cities, economic development agencies and colleges How Are We Funded AMERI ACS SEDC No Cost Business Support Federal Match (SBA) What We Do We provide no -cost, confidential, one-on-one, advising to help businesses make informed business decisions. • Planning or growing your business • Analyzing financial statements • Acquiring capital and managing cash flow • Buying or selling businesses • Exporting to markets around the world • Marketing and market research • Business systems and record keeping • Getting and keeping customers • Cost-cutting strategies • Finding and keeping qualified employees A M E R I AC S SBDG AMERICAS SBDC WASHINGTON Low or No -Cost Training Services Participants can access on -demand webinars at their convenience or attend a live webinar on topics of interest; such as Profit Mastery, SBDC Grow Smart and co-sponsored training events. All webinars are facilitated by SBDC advisors with first-hand experience and expertise. Small Business ENTREPRENEUR s HUfflflflRESOURCE5Fiiiancial Analysis F CYBER w SECURITY Governmento INTERNRTIONRL TKROC ti 2021 Training 10,477 Training Attendees 316 Delivered Training Events Typical SBDC business advisor profile: • Small Business ownership or management experience • MBA or equivalent • Prior consulting/counseling experience • Proven financial analysis and communication skills Washington SBDC Differential Advantages • Full time network of advisors • Certified Business Advisor (CBA) process • Continuing education requirement (32 hrs./year) • Outcome orientation — client/stakeholder focus • America's SBDC Accreditation review • External financial & programmatic audits • Annual independent economic impact study • Proprietary client activity database Economic Impact 2021 by the Numbers Si& 345'1 cc 4.11 Advising Clients ca tri eit4 10,477 Training Attendees D 316 Delivered Training Events Ja 99% *Client Satisfaction Rate H 1.1 I I 2,855 Created and Saved Jobs 't 161 New Business Starts $120M Increased Sales -004 nila $107M Raised New Capital Client reported imparts from 2021 The "Economic Impact of SEDC Counseling Activities in Washington_ 2019-2020," by Dr.JamesJ. Chrisman of Mississippi State University CD Economic Impact 10 -year Results The Washington SBDC Network delivered substantial advising services that resulted in a significant return on investment. Below are the most recent results for the network since 2012 (10 years). m m m m if m� mm 8,169 Jobs Created •`• ► • 17,688 in r Clients Counseled NI9,581 Jobs Saved 1,503 Businesses Started e° $755,594,676 Total New Capital Economic Impacts are self-reported and client -verified A EM R I C ASS SB_jC, WASHINGTON Highline College SBDC & StartZone Team N Meet the Team Njambi Gishuru — Microenterprise Specialist — English and Swahili • Start Zone An initiative of Highline College I C SBC WASHINGTON Meet the Team Jaqueline Garcia — Microenterprise Specialist — English and Spanish • Start Zone �,I 1 An Initiative of Highline College AMERICAS SBDC WASHINGTON Meet the Team Rich Shockley — Center Director and Certified Business Advisor — English • Start Zone An initiative of Highline College I C SBC WASHINGTON A EM R I C ASS SB_jC, WASHINGTON Highline College SBDC Results 2021 and 2022 YTD How Are We Doing a Highline College Economic Development (SBDC & StartZone) 2021 & 2022 YTD Clients Meetings Unique Clients Hours of Service Loans &Capital Investment Tukwila 2021 Tukwila 2022 YTD 148 43 132 $1,391,000 89 33 70 $146,000 rcStart Zone An Initiative of Highline College AMERICAtS SBDC WASHINGTON A EM R I C ASS SBC, WASHINGTON Working With Our Clients Faulty Assumption Faulty assumption, two legs of a stool is enough. • Retention / Expansion • Attraction 3rd Leg: Entrepreneur Development System •I Start Zone An Initiative of Highline College I C SBC WAS H I N GTO N How We Work Objective Situation Analysis Strategies Start Zone I An Initiative of Highline College Plans Tracking Execution AfV1ERICAcS SBDC WASHINGTON Our Business Model - tartZone Technical Assistance • Start Zone An Initiative of Highline College Highline Economic Development Programs SBDC WASHINGTON What Are People Asking About in South King County • How do I find employees • I need help marketing my business to get new customers • How do I start a business (full time and side hustle) • I'm purchasing a business what is its value • Can you help me prepare a loan package • My bank asked me to forecasting revenue and expenses, can you help • How should I structure my business to provide equity to key employees • I'm looking for a referral (App Developer, CPA, Attorney) Our Services & Who We Serve Our Services & Who We Serve "They (SBDC advisors) are everything you would want when you need advice, are try - ing to grow your business, or are applying _-for a loan." 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 Danny House. Owner Dan the Sausagem an Grant Jones, owner KuKuRuZa 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 SBQC. 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. Jack Walsh, owner Sub Zero, Federal Way, WA Client Examples - 1 Business - Retail property tenant, established less than < 1 year • Seeking funding to build out TI's ( $100,000) • Needed Sharia compliant funding Action — • Worked with 2 lenders with Sharia products ( Craft3 & IRC) • Business narrative assistance • Gather financial documents • Prepare forecast 12-24 months of revenue based off of financial assumptions • Calls with potential funders for next steps Outcome — Ongoing to seek funding and develop marketing plan Client Examples - 2 Business - Catering company, established 2021 • Seeking assistance with loan application for PPP and EIDL COVID-19 Funding Action — • Review tax return for Schedule C filer • Determine how owner paid themselves to determine if they qualify • Client chose to pay themselves low rate & expense personal items to reduce business income • Bookkeeping and payroll methods limit ability to borrow • Completed PPP and EIDL by way of FaceTime. Client did not have a computer to assess loan applications Outcome — Client secured funding but very low amount given the way they paid themselves. Worked with client to understand financials and bookkeeping Client Examples - 3 Business - Start up Restaurant, established 2019 • Seeking assistance with start up planning, permitting, lease review Action — • Strategy to lease negotiation • Involved take over existing lease with buy out or remaining construction credits • Navigate new lease negotiations (leveraged SBDC network advisors with commercial lease experience) • Assisted with King County Health permit process and requirements for NFS equipment stamp on imported equipment • Review construction bids and timelines, support with city permit process • Lease signed February 2022 just before lock down • Assisted with marketing plan to open for take out Outcome — Client ended up self funding, slow opening, still open today $500,000+ in annual revenue 2FT and 8 PT employees Highline College SBDC & StartZone sbdc@highline.edu / startzone@highline.edu 206-592-4150 / 206-592-3388. sbdc.highline.edu / startzone.highline.edu • Start Zone I 1 An Initiative of Highline College WASHINGTON Washington SBDC Contact Information: washington@wsbdc.org (833) 492-7232 www.wsbdc.org AMERICAS D WASHINGTON The Washington SBDC network, hosted by Washington State University, is an accredited member of America's SBDC. Funded in part through a cooperative agreement with the U.S. Small Business Administration, institutions of higher education, economic development organizations and other public and private funding partners.