wnc’s small business landscape

a partnership or corporation, wages to train employees, and costs to create a product inventory, according to Hawks. He also said that liability insurance, rent, and utility bills should also be considered for brick-and-mortar locations.

When starting up a new small business, considerations also have to be made for the type of business structure that makes sense for the company. Different organization structures include:

Sole Proprietorship - Owner is responsible for profits and losses and legally liable for the business.

C- or S-corporation - Owned by shareholders and managed by Board of Directors.

General Partnership - Two or more owners that are both legally liable and contribute money, labor, and skills as well information on corporate and employer forms that may need to be filed.

Nonprofit Corporation - Owned by members and managed by Board of Directors with no tax on income.

Limited Liability Corporation - Member ownership legally separated from individuals.

Another important consideration when creating a business, according to Hawks, is deciding on its name. When considering options, Hawks said it may help to say it out loud and share the idea with others. He said to check the NC Secretary of State business database at SOSNC.org to see if the business name already exists, and to make sure that the new business name is not too similar to an established business.

Once a name has been decided, the next step is to file an Assumed Business Name with the Economic Development Partnership of North Carolina at EDPNC.

Hawks said it is also helpful to go ahead and register a domain name for your website, and there are a variety of platforms with which to do so. A business can also register a trademark for any intellectual property, start social media accounts to claim handles, and obtain an Employee Identification Number for tax purposes.

It will also be necessary for businesses to register at NCDOR.gov to pay state income taxes as well as file annual reports with the Secretary of State.

Other NC small business startup requirements can include permits or licenses for specific occupations or zoning locations. Federal, state, and local agencies may have different requirements, so it is important to check with them all.

Access to Capital and Support for Entrepreneurs

Since 1989, Mountain BizWorks has helped more than 1,900 businesses in the 26 westernmost counties of North Carolina get started, and helps more than 1,000 businesses each year in a variety

Their 29 staff members and 60 coaches provide services including entrepreneurial development tools, peer-to-peer classes like Business Foundations, one-on-one business coaching, and capital lending for businesses at stages ranging from

As far as capital lending, Executive Director Matt Raker said Mountain BizWorks is a “mission lender focused on funding for entrepreneurs who aren’t able to access lending from a bank.” Loans in the amount of up to $500,000 for startups and/or growing businesses to provide help in purchasing equipment, obtaining property, or other costs may be available.

Though some businesses may need these large loans, Raker said no ask is too small. “Some of our largest local businesses started by coming to us needing just enough capital to get them a booth at a local farmers market,” he said. “Now, some of these businesses are thriving with 50 or more employees.”

With around 150 clients per year receiving capital lending, Mountain BizWorks provided a total of $10.6 million in 2022, and Raker believes it will be a similar total in 2023.

“We are expanding access to opportunities for everyone,” Raker said. “Whether it’s people in rural areas or those who don’t have access to startup funds, we want to make sure the local economy looks like the local community. Right now, about half of those receiving loans from us are women, and we try to maintain a good overall diversity in other aspects as well.”

More than just startup assistance, established businesses may also need assistance for a variety of needs when it is time to grow and expand. Raker said it is really helpful when a business already has actual numbers and data, and that conversations regarding needs can move more quickly. The Alpine and ScaleUp programs can help in developing growth strategy and hone in goods costs, and once that is dialed in, Raker said it is easier to figure out how to finance the business.

According to Raker, growing businesses must also continue looking at the market for unmet demand. As a business grows, it is really important to have solid financials, and a good CFO. He noted that a CPA, or bookkeeper is a necessity. It’s also key to discover where systems are scalable and where problems may lie.

Education

With 1/3 of capital lending going to startups, Raker said that some entrepreneurs come to Mountain BizWorks with nothing but an idea and a desire to get started. The Business Foundations course can help people figure out the market, perform an analysis, and determine if their idea is viable or not. Once they are ready, the entrepreneur can then apply for a loan.

“Over 10,000 people have completed our Foundations course,” Raker said. “This course helps business owners learn the basics so that they are well prepared and equipped as they begin their business. We also offer the Alpine and ScaleUp courses for those needing support further along in their journey.”

Within one-on-one coaching programs, topics can vary widely. Raker said the coaches at Mountain BizWorks are area business owners with a variety of expertise who want to give back to the business community, and can help with anything from establishing a general business plan to financials to marketing.