WTA&M Small Business Development Center 2014 Annual Report

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FACES OF ENTREPRENEURSHIP

SBDC 2014

ANNUAL REPORT & CLIENT SURVEY



May 1, 2015

To our Clients, Partners, and Friends: What a fantastic year 2014 was in the Texas Panhandle! We are so grateful for the clients who trust us and allow us to come along on their journey through the struggles and successes of entrepreneurship. Each journey is different just as each entrepreneur is different, but in the end, it’s the combined efforts that made 2014 a success. During 2014, the West Texas A&M Small Business Development Center assisted 541 clients who put nearly $5.4 million back into the local economy by either opening or expanding a business. They also created a record 446 jobs. Those 446 people are cycling a good portion of that money back through our local economy by supporting a family, buying products and services locally, and some have even started their own businesses. Each year we survey our clients regarding their current business operations and outlook for the next year. Inside you will find the results of the 2014 survey. This year’s return was higher than past years thanks to a new partnership with the Dallas Federal Reserve Bank. Locally, the Texas Workforce Commission, Amarillo National Bank, Interstate Bank, and FirstCapital Bank also participated by including their local clients in the survey request. As always, there are some surprising results, but one result that’s never surprising is the optimistic outlook of our area’s entrepreneurs with 65% reporting that 2014 was better than 2013. I’m convinced that the nation’s brightest entrepreneurs live in the Texas Panhandle and I look forward to seeing the “faces of entrepreneurship” in 2015 and partnering on their journeys. Regards,

Gina Woodward Director

701 S Taylor, Ste 118 • Amarillo, Texas 79101 Phone: 806.372.5151 • Fax: 806.372.5261 • www.wtsbdc.com A member of the Texas A&M University System A member of Northwest Texas SBDC Region

SBDC ANNUAL REPORT 2014

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Tulia Well Service Jason Evans 4 Jobs Created With decades of experience in the ground water industry and relationships with some of the nation’s most knowledgeable people in the business, purchasing the existing Tulia Well Service in 2013 was like going home for Jason Evans. A Swisher County native, he’s held numerous jobs across the Panhandle working with both ground water and customer service. His background in customer service helped him realize that he could use those skills in combination with his extensive knowledge of ground water to bring real value to customers. The business services residential, commercial, and agricultural needs including pump and well service, agriculture irrigation, and plumbing services associated with ground water.

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SBDC ANNUAL REPORT 2014


Charleys Philly Steaks KD Patel

20 Jobs Created “Can’t” is not in KD Patel’s vocabulary. When the opportunity to become the Charleys Philly Steaks franchisee in the Panhandle became available, KD jumped at the chance and navigated through the process at record speed. A serial entrepreneur, KD also owns Candy Palace in Westgate Mall and was the driving force that brought the Jimmy John’s franchise to Amarillo. With a knack for creating successful systems and processes, a background in accounting and legal work, and a genuine desire to treat his employees like family, KD’s ventures consistently outperform his financial goals.

“SBDC is a great place to go for any advice you need on your project/venture. Be it research, projection or business plan, they are always ready to help. You can always rely on them.” —KD Patel

SBDC ANNUAL REPORT 2014

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M&R Liquor Charlie Leard

32 Jobs Saved/Created In 2012, the owner of M&R Liquor approached Charlie Leard with an unexpected offer. He was ready to retire and was seeking someone trustworthy and knowledgeable about the industry to purchase the business and made Charlie an offer he couldn’t refuse. After taking over the original location in Amarillo at Bell/Hillside, he soon recognized that the well-established business was drawing in clientele from across the area. In 2013, he opened up a second Amarillo location at Amarillo Blvd/Western and a third in Perryton, TX. With a staff that has as much energy as they do knowledge about the inventory, it’s no wonder that M&R has remained a long-time Amarillo favorite.

“Timing in life is everything, you just have to be in the right place at the right time while doing the right thing. The key in that sentence is doing the right thing, and since you don’t ever know when that right time and place will be, you better be doing the right thing all the time.” — Charlie Leard

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SBDC ANNUAL REPORT 2014


Village Cleaners Cory Wilson

21 Jobs Saved/Created Working nights can be taxing, but working nights and owning a small business? That takes real dedication and that’s what keeps Cory Wilson working hard day and night…literally. When the previous owners were ready to retire, they didn’t have to look far for a buyer since Cory had already worked with the sellers. All while keeping his night job, Cory purchased the original business located in Amarillo’s Wolflin Village in 2013 and the transition in ownership was seamless. In 2014, Village Cleaners opened a second location in the new Markets at Hillside shopping center to better serve clients on the south side of Amarillo.

“I was once told that if I wanted a life like no one else, I would have to live like no one else. This keeps me going when I see others sitting back and coasting: that I have goals and will get there.” — Cory Wilson

SBDC ANNUAL REPORT 2014

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SBDC 2014 C LI EN T SU RV EY 1/ What category best describes your business?

ANS WE R Agriculture Construction Finance/Insurance/Real Estate Manufacturing Retail Service (including professional services) Transportation Wholesale Other

25%

50%

2/ For how many years has your business been operating? ANS WE R Less than 1 year 1 to 3 years 3 to 10 years Over 10 years

25%

50%

75%

% 4% 9% 7% 7% 7% 39% 5% 2% 20%

75%

% 5% 12% 24% 60%

3/ Including the business owner(s), how many employees do you have? ANS WE R 1 to 5 employees 6 to 10 employees 11 to 25 employees 26 to 50 employees 51 to 75 employees 76 to 100 employees Over 100 employees

25%

50%

75%

4/ Please indicate the range of your gross revenues for the last fiscal year: ANS WE R Under $100K $100K to $500K $500K to $750K $750K to $1 million $1 million to $10 million Over $10 million

25%

50%

75%

5/ Do you represent a certified minority-owned or woman-owned business? ANS WE R

Yes No Don’t know 6

SBDC ANNUAL REPORT 2014

25%

50%

75%

% 46% 12% 18% 8% 4% 0% 13%

% 21% 30% 4% 4% 26% 15%

% 25% 65% 11%


6/ During the past 6 months did your: Question Sales/revenue Number of employees Spending on equipment/facilities Overall business opportunities

Increased 58% 31% 41% 62%

7/ Your expectations 6 months from now: Question Sales/revenue Number of employees Spending on equipment/facilities Overall business opportunities

Increased 67% 29% 36% 71%

No Change 30% 60% 52% 32%

Decreased 12% 9% 7% 5%

No Change 26% 66% 56% 23%

Decreased 7% 5% 8% 5%

8/ What are the 3 most important changes, if any, you made to your business operations during 2014?

ANS WE R Developed new products/services Cultivated new clients/new markets Increased productivity Increased technology investments Cut costs Reduced debt Reorganized management Other factors:

25%

50%

75%

% 31% 65% 43% 28% 41% 23% 21% 9%

9/ What is the most important issue you are struggling with that will aect your ability to grow your business?

ANS WE R Access to capital Talent (ďŹ nding right workers) Strategic planning

(advice on how to grow business)

Finding new markets Complying with government regulations Using technology/social media to attract new customers Financial management

(managing cost and revenue streams)

Other factors:

25%

50%

75%

% 13% 29% 8% 11% 15% 12% 11% 1%

SBDC ANNUAL REPORT 2014

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10/ Please select the top three types of financing you use for your business, by greatest dollar value:

ANS WE R Business earnings Bank line of credit Equity financing Credit card Personal savings SBA-backed loan Non-SBA-backed loan Crowd funding (e.g. Kickstarter) Other:

25%

50%

75%

11/ Over the last 12 months, did your business do any of the following? ANS WE R Applied for new credit Applied to renew existing credit Did not apply for credit because we had sufficient financing Did not apply for credit because we did not think we would be approved Paid down debt

25%

50%

75%

% 84% 41% 12% 33% 31% 7% 8% 1% 15%

% 22% 19% 49% 7% 41%

12/ If your business has not been able to get all of the credit you want, why not? Select the 2 most important reasons:

ANS WE R Low credit score Unwilling to provide personal guarantee Uneven cash flow Weak sales Banks are just not lending to my type of business Insufficient collateral Weak/missing financial statements Level of outstanding debt Business is too young Other

25%

50%

75%

From our first-time client surveys: “What a great pleasure it was to share my dreams with two incredible consultants. They are as optimistic as I am about my business.”

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SBDC ANNUAL REPORT 2014

% 10% 10% 30% 20% 10% 15% 15% 45% 5% 20%


13/ What are the top three employee skills your business needs? ANS WE R Basic math skills Basic English skills Basic computer skills Advanced technology skills

25%

50%

75%

% 14% 18% 29% 15% 57% 1% 57% 31% 57% 40% 8%

(e.g. engineer)

Interpersonal skills Advanced math skills Sales and marketing Advanced computer skills Foreign language skills Punctuality/reliability Other

14/ How difficult has it been for you to find workers with the following skills? Question Basic math skills Advanced math skills Basic English skills Basic computer skills Advanced computer skills Advanced technology skills Sales and marketing Foreign language skills Interpersonal skills Punctuality/reliability

Very Difficult

Somewhat Difficult

2% 11% 0% 0% 14% 19% 20% 9% 14% 14%

10% 22% 13% 13% 28% 37% 31% 30% 32% 34%

Neutral 46% 56% 31% 36% 36% 31% 28% 42% 23% 24%

Somewhat Easy

32% 9% 34% 35% 16% 13% 17% 16% 23% 20%

Easy 10% 2% 22% 16% 6% 0% 3% 2% 7% 8%

Very

15/ Which of the following professional resources has your company utilized in the last year? ANS WE R Bookkeeping Legal/Attorney Insurance/Bonding Company Marketing Small Business Development Center (SBDC) consultant Accounting Real estate agent/broker Financial planning/investment Private consultant

25%

50%

75%

% 28% 54% 57% 32% 32% 61% 14% 13% 9%

From our first-time client surveys: “My experience was amazing. I learned a lot and the patience of David was remarkable.”

SBDC ANNUAL REPORT 2014

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16/ Which of the following business resources are you aware of?

ANS WE R SBA Loan Guarantees Emerging Technology Fund (State of Texas) Equitrend Capital New Markets Tax Credits EDP Plus Grant Accion Texas Texas Mezzanine Fund Route 66 Grant West Texas Angel Network SBIR Grants (Small Business Innovation Research) Interest Rebate Program from Amarillo Economic Dev. Corp USDA Value Added Grant Center City Facade Grant Micro-loans from Texas Panhandle Regional Development Corporation (at Amarillo EDC) USDA Biomass Grant Amarillo Enterprize Challenge Crowdfunding and Peer to Peer Lending sites on the Internet WT Contract Procurement Center WT Enterprise Center WT Small Business Development Center (SBDC) WT Sponsored Research Services

25%

50%

75%

% 74% 34% 22% 14% 9% 14% 15% 18% 42% 14% 18% 15% 40% 26% 8% 78% 40% 57% 72% 89% 29%

17/ Did you use any of these business services from West Texas A&M University during the past year?

ANS WE R Contract Procurement Center WT A&M Enterprise Center SBDC (Small Business Development Center) Sponsored Research Services No, didn’t use any of these

25%

50%

75%

% 13% 16% 38% 1% 54%

From our first-time client surveys: “Tracy Shea has a wealth of knowledge and has the ability to articulate such knowledge very effectively. My initial appointment exceeded my expectations! I am looking forward to utilizing the SBDC as much as possible.”

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SBDC ANNUAL REPORT 2014


18/ Do you feel that the business services from WTAMU helped your business? ANS WE R

25%

50%

75%

Yes No

% 100% 0%

19/ Financially speaking, is your business better off or worse off than it was one year ago? (Considering your cash on hand, payables, receivables, and debt load.)

ANS WE R

25%

Better Worse About the Same

50%

75%

% 65% 7% 28%

E nd of Surve y

After 12 years with the WTA&M SBDC, Director PJ Pronger accepted a new position with Texas Tech University in the Northwest Texas SBDC Region office. Serving longer than any of his predecessors, PJ’s accomplishments are many. He was responsible for moving the SBDC into a professional office space in the downtown business area, instituting the first annual report for the SBDC, including an annual “State of Local Business” survey & report, and emphasizing a focus on technology upgrades, including creating the first website, the first email newsletter, a state-wide online portal for assumed name filings, and implementing online access for client services. The programs that PJ managed in his position as Director include The Entrepreneur Alliance, Equitrend Capital, the Contract Procurement Center, the Small Business Development Center, WTAMU’s Technology Commercialization Program, and the West Texas Angel Network.

PJ’s professional accolades are many beginning with being awarded the “State Star” by the SBA in 2009. He also instituted the first tuition assistance policy for SBDC staff members, of which three have received MBAs, and created the “Business Facilitation” program to help rural clients, which was successfully spun off into a private business. A University Center program at WT with a grant from the U.S. Economic Development Administration was established under PJ’s management as well. During his tenure with the West Texas A&M SBDC, he consulted with 6,570 clients, helped launch 728 new businesses, created 3,253 new jobs, and added over $108 million in new capital to the local economy. We thank PJ for his dedication to small business in the Panhandle and congratulate him on his new position. We look forward to working alongside him as he continues to make our region’s SBDCs some of the best in the nation!

SBDC ANNUAL REPORT 2014

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2014 SBDC STAFF

Gina Woodward, Director M.B.A. in General Business from WTAMU

David Dickerson, Assistant Director Bilingual English/Spanish M.B.A. in Finance from WTAMU

The Organization

Outreach

Part of a nation-wide network, the SBDC is a department of West Texas A&M University in the College of Business and is a member of the Northwest Texas SBDC Region. Vision Statement – The WTA&M SBDC will be recognized as the Panhandle’s resource of choice for entrepreneurs. It will be the most professional and competent source of business information, business resources, and analytical services for helping individuals realize their business dreams. Mission Statement – The SBDC’s mission is to provide consulting, training, and research to small businesses in pursuit of community economic development. Values – The values governing the SBDC’s activities include: • • • • •

Professionalism Competence Accuracy of Knowledge Ethical Conduct Real Value to Clients

While we don’t market our services outside this area, we are free to assist clients in other locations upon their request.

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The SBDC can send staff to any area of the Panhandle and provide all our regular services. We also maintain a website with resource links and publish a monthly e-newsletter with business tips and information about funding sources and training. We regularly provide programs for civic groups throughout our 25 county service area.

Funding The SBDC receives major funding from the U.S. Small Business Administration and the State of Texas and is not dependent on the general budget from WTAMU. We also receive additional private support from local businesses and individuals. For every $1 in program funding received, the SBDC generates $3.04 in new tax revenue. There is also a multiplier effect — every $1 expended on the SBDC operation was leveraged by $17.55 raised in new capital by clients. Source – The Chrisman Report

Service Area

Service Area The designated service area for the SBDC is the top 25 counties of the Panhandle. (Childress county is attached to the Wichita Falls SBDC.)

Dallam

Sherman

Hansford

Ochiltree

Lipscomb

Hartley

Moore

Hutchinson

Roberts

Hemphill

Oldham

Potter

Carson

Gray

Wheeler

Deaf Smith

Randall

Armstrong

Donley

Collingsworth

Parmer

Ana Lozoya, Business Consultant Bilingual English/Spanish M.B.A. in General Business from WTAMU

Castro

Amarillo

Swisher

SBDC ANNUAL REPORT 2014

Briscoe

Hall


Tracy Shea, Business Consultant Bilingual English/Spanish B.A. in Political Science

Sabrina Meck, Consulting Coordinator B.A. in Mass Communications from WTAMU Social Media Manager

Jaclynn Sidney, Student Assistant Equine Industry & Business Major at WTAMU

Activities Consulting

DBAs

Individual consulting is provided to any small business person on a free and confidential basis, with specialties in the following: Startup Planning, Business Plans, Financial Analysis, Business Valuation, Financing and Investors, Marketing and Advertising, and Internet Operations.

DBAs, or Assumed Name Certificates, are used to make ownership information about businesses public. DBAs are filed with the county and/or Secretary of State. The SBDC provides forms, advice, and notary services for DBA filings, and we maintain an online portal creating DBA forms at www.assumednames.org.

Training The SBDC conducts seminars and workshops throughout the year on a variety of topics such as Marketing, QuickBooks, Intellectual Property, Social Media, and Sales Tax.

Research The SBDC has access to market research resources which can be utilized to find the answer to questions ranging from legal statutes to consumer preferences. Most research is provided free of charge.

Results SBDC activities are monitored and measured by both the SBA and an independent auditor. Results recorded for Fiscal Year 2014 are as follows:

FY ‘13

FY ‘14

487

541

1,725

2,364

BusinessesOpened Opened Businesses

48

47 47

Businesses Expanded

9

6

NewJobs Jobs Created New Created

199

446 446

New NewCapital CapitalFormed Formed

$4,234,870

$5,376,639 $5,376,639

626

882

Clients Served Total Client Hours

Training Attendance

Collaborations The SBDC makes every effort to coordinate and collaborate with other organizations involved in economic development. In 2014 we were pleased to work with all of the following:

Amarillo Chamber of Commerce Amarillo College Amarillo EDC Amarillo Hispanic Chamber of Commerce Borger Chamber of Commerce Borger EDC Business and Industry Data Center Pantex Caprock High School Cannon Air Force Base Canyon High School Dalhart Chamber of Commerce Dumas EDC Entrepreneur Alliance, Inc. High Ground of Texas Leading EDG Ogallala Commons Pampa Chamber of Commerce Perryton CDC Potter County Leadership Advisory Board SBDCNet Texas Manufacturing Assistance Center Texas Panhandle Regional Development Corporation Texas Tech University System West Texas Angel Network WTA&M Enterprise Center SBDC ANNUAL REPORT 2014

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701 S Taylor, Ste 118 • Amarillo, Texas 79101 Phone: 806.372.5151

www.wtsbdc.com

A member of the Texas A&M University System A member of Northwest Texas SBDC Region

Funded in part through a cooperative agreement with the U.S. Small Business Administration The SBDC does not discriminate on the basis of race, color, creed, national origin, ancestry, sex, marital status, disability, religious, or political affiliation, age or sexual orientation. The SBDC is committed to ensuring that its programs and services are available to all persons, including persons with disabilities or needing language assistance. For persons needing an accommodation to an SBDC program, it is best that we receive your request at least 10 working days before a scheduled event.


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