2020 ANNUAL REPORT
A LETTER FROM OUR KOSBE ADVISORY COUNCIL CHAIR It has been my honor and privilege to serve as the 2020 KOSBE Chair. Over the past decade as a small business owner, I have had the privilege of working with many wonderful organizations that support small businesses and entrepreneurs in our region. I can say with confidence that there is not a single entity that has done more for small businesses in 2020 than KOSBE. As business owners around the region were forced to shut down without notice, KOSBE rose to the challenge and became the go to resource for the endless questions we all had. Questions about CARES Act funding, how to pivot and provide virtual or curbside services, and endless questions about how to survive the pandemic came in around the clock. Aundrea and Caroline stepped up and worked tirelessly to answer every question they could, and were able extend their reach beyond themselves by creating a new program that paired local independent contractors with local small businesses to provide services they needed at no cost to them. The members of the KOSBE Advisory Council were also instrumental in providing valuable input that could be shared with other small businesses. Finally, KOSBE made sure we celebrated small businesses at the annual KOSBE Awards through a virtual awards ceremony. I am so proud of the work we have done in 2020, and I am excited to see that work continue this year. I encourage you to contact us to learn how you can be involved. You will be glad you did. Sincerely,
Dustin Mohr 2020 KOSBE Chair Martin Dentistry
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2020 KOSBE ADVISORY COUNCIL
Dustin Mohr
Russ Rogers
Chair Martin Dentistry
Immediate Past Chair Honda Kingsport
Chaiba Bloomer
Wes Argabrite
CKB Global Business Consulting
Bank of Tennessee
Tori Humphreys
KOSBE ANNUAL REPORT
Branded
Cassie Honaker Millennium Properties
Jamie Jackson
Cumberland Marketing
Tri-Cities Military Affairs Council
Tara Burns
The Bagel Exchange
Powell Valley National Bank
Ernie Rumsby
BMA Liason City of Kingsport
Keith Cunningham
Ted Fields
In Memorium:
Darrell Duncan
JamiEvents
S T A F F
Tony Wilder
Eastman Credit Union
Aundrea Wilcox Executive Director KOSBE
Caroline Jones
Marketing/Admin Coordinator KOSBE
BriAnna Taylor
COVID-19 Project Coordinator
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ABOUT KOSBE Our Mission: What we do We are a technical assistance provider offering assistance including but not limited to: forming a business, how to write business plans, business plan reviews, obtaining capital for start-up or expansion, pursuing government contracts, analyzing financial and management performance, proving business case, developing existing and new business, and planning for succession.
Vision: Our desired future state Our intent is to be the go-to organization in Kingsport for small business owners and entrepreneurs who want to start or grow their business, by creating and developing the right tools and resources and cultivating the right partnerships.
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2020: A YEAR IN REVIEW BriAnna Taylor joined the KOSBE team as COVID-19 Project Coordinator, providing administrative support for KOSBE TSBDC at ETSU which included directing small businesses to the appropriate resources and disseminating related communications to small business owners and the public. Despite the pandemic, KOSBE TSBDC at ETSU helped start three new businesses. KOSBE TSBDC at ETSU invested in software and technology to better serve clients and improve efficiency. All training has been converted to web-based programs. KOSBE TSBDC at ETSU offered 39 virtual business training events (compared to nine in-person trainings in 2019). KOSBE TSBDC at ETSU served 338 distinct customers. Two hundred of those served are in business already; 87 have good potential to start someday. Women represent 168 clients; nine are Hispanic; and 38 are minorities. Retail Trade followed by Professional, Scientific, & Technical Services led business sectors. Thirty-seven veterans were served by KOSBE TSBDC at ETSU, representing 10% of all clients. The TSBDC at ETSU Johnson City Center and Kingsport Affiliate Office collaborated to host the first Women's Entrepreneurship Day Summit: Resources for Women Entrepreneurs, which was attended by 70+ female business owners, entrepreneurs, and advocates. KOSBE TSBDC at ETSU facilitated $4.6 million in capital infusion. KOSBE re-named the KOSBEs veteran-owned business award to the Ernie Rumbsy Award for Veteran-Owned Business Excellence in memory of Ernie Rumsby, former KOSBE Advisory Council Member who passed away unexpectedly. KOSBE TSBDC at ETSU facilitated 62 loans, helping business owners access and apply for financial resources, to include Paycheck Protection Program (PPP) loans, SBA Economic Injury Disaster Loans (EIDL) and all types of SBA and non-SBA loan programs so small businesses could sustain and grow during the pandemic. Through the KOSBE TSBDC Enriched Technical Assistance Program, a Healthy Business Certification course was offered to help 24 businesses introduce employees to the basic practices of identifying, reducing, eliminating and reporting hazards associated with their work.
KOSK BO E SABNENAUNANLUR AE LPROERPT ORT
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PPAAGGEE 0054
2020: IMPACT
338
Clients Served
$4.6 Capital Infusion million
39
Virtual Business Trainings
Veterans Served KOSBE ANNUAL REPORT
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2020: A YEAR IN REVIEW 83 small businesses engaged in the KOSBE TSBDC Enriched Technical Assistance Program which was specifically created to assist COVID-19 affected small businesses. This enriched technical assistance was provided to business owners at zero cost (1-4 hours maximum). KOSBE managed contracts with 11 independent contractors and paid fair compensation for services. This was a win-win-win for the business owner, KOSBE, and private consultants who directly assisted businesses and served as subject matter experts. KOSBE completed the 2020 Survey of Women Business Owners & Professional Women. These results led to informing 2021 programming which will include a focus on female entrepreneurship. Read the full report here KOSBE TSBDC collaborated with the Kingsport Chamber’s Workforce Development & Education and Leadership programs to conduct middle and high school panel interviews for the Kingsport Chamber Kids Business Expo.
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COVID-19 ENRICHED TECHNICAL ASSISTANCE Through a unique funding opportunity with the U.S. Small Business Administration, Tennessee Small Business Development Centers and East Tennessee State University, KOSBE received supplemental grant funding through the CARES Act, which specifically enabled them to provide enriched education, training and business advising to small businesses that have experienced supply chain disruptions, staffing challenges, a decrease in gross receipts or customers or a closure as a result of COVID-19.
11
Independent Contractors who are small business owners themselves
83
Businesses Helped by the program
Thank you to our amazing contractors!
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HOW WE SPENT OUR TIME (CLIENT HOURS) Marketing & Sales | 27 COVID-19 | 737 general disaster support Personnel/Human Resources | 1 financing/capital SBA EIDL/SBA EIDL Advance Sources of Capital | 16.5 SBA PPP Loan, other SBA Disaster Loans Accounting and Records | 1.5
Government Procurement | 21
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Business Startup | 203.5
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COVID-19 BUSINESS TRAININGS 3/26/2020 - SBA Disaster Loan Webinar for Business Owners 4/1/2020 - Dissecting the New Stimulus Package with Congressman Phil Roe 4/2/2020 - SBA Disaster Loan Webinar for Business Owners 4/9/2020 - SBA Disaster Loan Webinar for Business Owners 4/9/2020 - Downtown Elizabethton Main Street: COVID-19 Relief Options & Resources 4/16/2020 - SBA Disaster Loan Webinar for Business Owners 4/23/2020 - SBA Funding Programs and Other Financial Assistance for Business Owners 4/24/2020 - GrowthWheel® COVID-19 Crisis Management Essentials 4/28/2020 - Reopen Responsibly: Sullivan County's Reopening Plan 4/30/2020 - SBA Funding Programs and Other Financial Assistance for Business Owners 5/7/2020 - Recover Together: Reopening Discussion and Best Practices 5/14/2020 - Recover Together: Reopening Discussion and Best Practices 5/21/2020 - Recover Together: Reopening Discussion and Best Practices 5/28/2020 - Recover Together: Reopening Discussion and Best Practices 6/4/2020 - Region AHEAD: How to Apply for the Local Business Recovery Fund 6/11/2020 - Tennessee Community & Economic Development Update: Tennessee Business Relief Program 7/15/2020 - Tennessee Chamber Healthy Business Certification Training 7/22/2020 - Identifying Your Best Opportunities to Deliver Your Products & Services to Your Brand Standard 7/30/2020 - SBA Disaster Financing Options for Business Owners 8/6/2020 - Turning Improvement Opportunities Into a Plan for Success 8/20/2020 - Tools to Improve Your Key Processes 8/27/2020 - Beyond PPP: Projecting Cash Flow 9/17/2020 - Guidance on Your Social Media Marketing During 2020 9/24/2020 - SBA Contracting - Where are the Contracts? 10/8/2020 - Potential Business Liability in the Pandemic 10/15/2020 - State of Tennessee Coronavirus Relief Fund: Supplemental Employer Recovery Grant Program 10/26/2020 - PPP Loan Forgiveness Implications for Tax and Financial Reporting 11/4/2020 - Doing Business with the States of Tennessee & Virginia 11/19/2020 - Women's Entrepreneurship Day Summit: Resources for Women Entrepreneurs 11/20/2020 - What’s Your Break-Even? (And why it matters) 12/4/2020 - What Legal Liabilities Employers Are Facing During the Pandemic 12/7/2020 - How Much Debt is Too Much Debt? 12/15/2020 - Building Your Marketing Strategy for Your Small Business 12/16/2020 - Small Business Marketing Q&A with Hillhouse Creative 12/21/2020 - Rural LISC Small Business Grants: How to Apply 12/29/2020 - Ask the Expert: Marketing Q&A with ARO Creative 12/30/2020 - Top Ten Tips for Positive Marketing Progress in 2021
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SUCCESS STORIES We Rose Above It – You Can2! Can2’s Car Care
Seven years, three months, three weeks, and two days after starting a rather successful mobile automotive detailing business, the owner of Can2’s Car Care was forced to start over after a divorce. The first business was a general partnership, so it dissolved upon the withdrawal of his former wife. Unfortunately, there were no safeguards specified in the partnership agreement to keep the business going. Instead of giving up, Kris Cantu rose above it, and made an appointment with KOSBE TSBDC at ETSU, to discuss moving forward with a storefront concept and rebranding strategies. Three years later, he was back at the TSBDC office talking about business expansion ideas. Methamphetamine is increasingly abused in Tennessee, so Cantu wanted to offer Meth cleanup to law enforcement agencies. He wanted to know who was offering a similar service and what the regulations and requirements were. He was curious about government contracting opportunities pertaining to this potential new service line. TSBDC placed a market research order (free of cost) with SBDCnet, the official National Information Clearinghouse of the U.S. Small Business Administration, to help answer some of these questions. Cantu decided that Tennessee’s rate of abuse is surprisingly significantly lower than the national rate, so he tabled his idea for the time being. In June 2020, Cantu was back again reaching out to TSBDC for help navigating SBA Coronavirus relief options. He had received a communication from SBA, but he was suspicious it could be fraud. In March, Cantu had attended a TSBDC workshop, SBA Disaster Loan Webinar for Business Owners. After getting reassurance and further guidance from a trusted source, he was happy to learn he would be getting some financial assistance. Without it, he would have been unable to retain seven jobs for workers during the pandemic. A healthy economy contains a mix of small, medium, and large businesses with a range of jobs. Can2’s contributes to a diversified economic base, by creating jobs for the underserved. Can2’s offers a second chance to people who have had a tough life and made bad decisions in the past. For many, it is a stepping stone to a better life. Can2’s is a past winner of the annual KOSBEs small business competition. The KOSBEs promote economic impact by recognizing small businesses that are leading by example and making an extraordinary contribution to the communities they do business in. Can2’s exemplified leadership and excellence in overcoming adversity, and a passion for helping others succeed. Cantu said when the pandemic is behind him, Can2’s will finally enter the company life cycle stage of growth. He knows the many conflicts that his business has had previously, have ended up bringing the company forward. He is ready to lift the company to the next stage – with support and input from his amazing team and family.
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SUCCESS STORIES
Rollin’ on the Freeway to Somewhere Soon
American Tours & Charters Inc.
Charles Maxwell, the owner of American Tours & Charters Inc., hopes the second time around is better. Maxwell had owned and operated a similar business called Maxwell Coach several years ago but decided to shut it down to eliminate the "headaches" of running his own business. Quite the reverse, he discovered that the "headaches" were still his, and not being the owner made it more difficult to tolerate. As a humble employee, the lack of control and limited decision-making was ultimately the job’s downfall. After a three-year hiatus, it was obvious to Maxwell that he wanted to start another tour bus company of his own – the sooner the better. Maxwell already knew how to gather competitive intelligence and develop a new business plan. He needed help with identifying capital sources and avoiding organization missteps. Maxwell connected with the Tennessee Small Business Development Center (TSBDC) at East Tennessee State University (ETSU), since TSBDC at ETSU was instrumental in assisting him when he established his first tour bus business. He set up a meeting with the TSBDC at ETSU Kingsport Affiliate Office (KOSBE) to inquire about various financing options: self-financing, bank financing, and leasing. He also had questions about regulatory requirements, for example, whether he needed to get a new DOT Number since he had one previously assigned. The TSBDC helped Maxwell search the Federal Motor Carrier Safety Administration web site and locate answers to several questions. TSBDC also guided Maxwell through setting up the S-Corporation and developing a short-term marketing strategy. With legal business entity filings in hand, he was able to obtain the financing he needed for a newer model tour bus. By November 2019 Maxwell was up and running again, as American Tours & Charters Inc. He has not taken his foot off the gas pedal since starting the business. He continues to learn and attend training events at the TSBDC. He has invested a total of 14 hours in business building and other support services. Recently, the travel industry as a whole has been negatively impacted by the Coronavirus pandemic. In January 2020, Maxwell joined the Kingsport Chamber of Commerce to sustain his business and cultivate key partnerships with travel industry members. When asked what keeps him up at night, Maxwell said: “Prospective passengers are going stir crazy after the prolonged quarantine. They are very anxious to get on the freeway going somewhere soon. Thanks to the TSBDC at ETSU Kingsport Affiliate Office, I am equipped and empowered to face this and future challenges. I don’t know where I would be without TSBDC.” Maxwell’s proven track record and his ability to foster and grow valuable customer relationships positions American Tours & Charters Inc. to succeed, nevertheless.
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SUCCESS STORIES
Empowering patients to live life to the fullest Ribbons Physical Therapy, LLC Ribbons Physical Therapy LLC, the region’s only outpatient physical therapy clinic devoted solely to cancer rehabilitation and lymphedema treatment, opened its doors to patients in May 2020. Ribbons Physical Therapy received only a small amount of funds through the U.S. Small Business Administration’s Coronavirus Disaster Program, because the business was a new startup. Staying in close communication with TSBDC staff, Ribbons Physical Therapy learned of the new COVID-19 Enriched Technical Assistance (ETA) Program which gave them access to independent contractors (a CPA and a marketing consultant) they could work with directly. Ribbons Physical Therapy received specialized advice and support they otherwise would not be able to afford. For example, Ribbons Physical Therapy needed direction on an existing website they had developed in-house, as well as general marketing advice for their overall online presence and regional marketing efforts. They required hands-on training for QuickBooks Online and tax guidance. There was no out-of-pocket cost to the business for these services, since the COVID-19 ETA Program is funded through a CARES Act grant from the SBA. Ribbons Physical Therapy also took advantage of free virtual training opportunities facilitated by the COVID-19 ETA Program independent contractors, including What’s Your BreakEven, and How Much Debt is Too Much Debt. When most businesses were closing (some permanently) or furloughing employees, Ribbons Physical Therapy opened its doors for the first time and created four new jobs, not including positions for the business owner and her husband. KOSBE ANNUAL REPORT
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The KOSBEs promote economic impact by recognizing small businesses that are leading by example and making an extraordinary contribution to the communities they do business in. The winners exemplify leadership and excellence in overcoming adversity, and a passion for helping others succeed. Award winners serve as inspirational leaders to other local small businesses, and they model best practices that will progress the region as a whole. For a complete list of past winners, visit www.kosbeawards.org.
6 6 1
s r e over n n i w
s r a e y
6 2
Rebecca Pepin, Anchor
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AND THE WINNER IS. . . Manufacturing Business Excellence – Gypsy Circus Cider Company Ernie Rumsby Award for Veteran-Owned Business Excellence — Armstrong Construction New Business Excellence – Good Batch Mama Retail Business Excellence – International Wig Company Woman-Owned Business Excellence – Advanced Tool & Machine LLC Service Business Excellence – Salon J. Christene Innovation Business Excellence – HD Clean LLC Healthcare Business Excellence – Healthy Sprouts & House Calls Young Entrepreneur Business Excellence – Sister's Cravings Juice Bar & Grill Home Based Business Excellence – Pet Revolution 1st Annual Do Good Award – Do Good Goods
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FINAL THOUGHTS ON MOVING FORWARD Dear Clients and Supporters, KOSBE continues to excite me, because nothing excites me more than being a part of this community. It’s clear that this community cares about small businesses. Over 5,100 fans tuned in to celebrate our local small businesses virtually, for our live broadcast from Kingsport City Hall in December. Like everyone, we had other plans, but COVID forced us to adapt and innovate. We are fortunate to have so many resources for small business owners and entrepreneurs in our region. Truthfully, I believe we have more going on than many larger communities that I have visited. Kingsport is blessed to have so many people and organizations that want to make a difference. In 2011, your Kingsport Chamber announced the new partnership between KOSBE and the Tennessee Small Business Development Center (TSBDC) becoming the TSBDC at ETSU Kingsport Affiliate Office. Over the past 10 years, we have definitely achieved more and reached more entrepreneurs and business owners by working together. A case in point is through its affiliation with TSBDC at ETSU, KOSBE covers a wider service area, including Grainger, Hamblen, Hancock, Hawkins and Sullivan counties. Consequently, KOSBE has provided counseling and training to over 1,200 clients; assisted in capital formation of nearly $40 million; supported 95 new business starts; and helped create 667 new jobs and retain 682 jobs since the partnership inception. I look forward to another year leading KOSBE into the future, and I look forward to working with my peers and colleagues, learning from each other and sharing best practices across the region.
Kind regards,
Aundrea Wilcox Executive Director KOSBE
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ONWARD TO 2021 Here are some of the projects we have planned for 2021:
VIRTUAL TRAINING EVENTS LAUNCH AND PRODUCE MONTHLY PODCAST: HER.STORY OF ENTREPRENEURSHIP WOW PROPEL CLASS II: SPONSORED BY SUNTRUST NOW TRUIST SBDC DAY IS MARCH 17, 2021; TSBDC RISING STAR AWARD RECIPIENT RURAL OUTREACH - LISC (LOCAL INITIATIVES SUPPORT CORPORATION) GRANT TARGETING GREENE, UNICOI, CARTER, JOHNSON, HAWKINS, GRAINGER, & HANCOCK COUNTIES NATIONAL SMALL BUSINESS MONTH IS MAY 2021 WOMEN'S ENTREPRENEURSHIP DAY SUMMIT: RESOURCES FOR WOMEN ENTREPRENEURS NOVEMBER 19TH SMALL BUSINESS SATURDAY IS NOVEMBER 27, 2021 THE KOSBES
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OUR PARTNERS & FUNDERS • The City of Kingsport • East Tennessee State University • Eastman • Kingsport Chamber • Tennessee Small Business Development Centers (TSBDC) • Kingsport Economic Development Board (KEDB)
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