ANNUAL REPORT
2008 CREATING ENTREPRENEURIAL SUCCESS
To Our Clients, Partners, and Friends: Recent developments in the national economy have caused great concern about the future of business for this country. From our perspective here at the SBDC, business in the Amarillo area is strong and growing. We are blessed with good leadership in the civic arena, and West Texas A&M University has definitely entered a new era of progress with far-reaching plans. Additionally, a new spirit of entrepreneurism has sprung up, backed by tremendous support both locally and nationally. In a recent survey conducted by the Kauffman Foundation of Kansas City, 70% of Americans said they believe the success and health or our economy depends on the success of entrepreneurs, and 80% believe that the American Government should encourage more entrepreneurship. Our local and regional political leaders have responded to that call by creating entrepreneurial resources that give every entrepreneur a chance at success. If you’re one of them, give us a call and we will do everything we can to assist you in the pursuit of your dream. Sincerely,
PJ Pronger 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 Network
Organization Part of a nation-wide network, this SBDC is a department of West Texas A&M University within the College of Business. A Cooperative Agreement is in force between WT and Texas Tech University to provide services in this geographic area.
Vision - Mission - Values Vision Statement - The WTAMU 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 mission is to provide consulting, training and research to small business in pursuit of community economic development.
“I can’t say enough great things about David Dickerson and the SBDC. The thought of buying our own business was almost too overwhelming…until the day I walked into the SBDC office. I remember calling my husband after my first meeting with David and saying, “I just found a gold mine!” David helped me take an idea and a long list of questions and turn it into a “to do” list and the confidence to go for it! There was not a question I could come up with that David didn’t either have the answer for or have a resource for me to reference. I can’t imagine how much money we saved on attorney and accountant fees by having your help in the early stages of our business start up. Then, once I did get to the point where I had to consult attorneys and accountants I actually knew what I was talking about thanks to you! Not only did you help us to own our own business, I feel like I got the equivalent of a semester of business/finance classes for FREE! I have been able to share my experience with the SBDC with friends who are thinking of starting their own business and I will continue to “sing your praises” and send friends your way! I thank God for y’all, for we would not be where we are today if it weren’t for David and the SBDC!” - Sara Farmer Pampa
Every tax dollar spent to fund this Values - The values governing the SBDC’s activities include: • Professionalism • Competence • Accuracy of Knowledge • Ethical Conduct • Real Value to Clients
program returns $11.37 in new tax dollars. Source – Chrisman Report The average cost of each new job generated by the SBDC is $622. Source – Chrisman Report
Our unique position is that we bring an unbiased viewpoint – we’re not trying to sell anything to our clients but success. ANNUAL REPO RT 2008
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S.W. 13th Ave
S.W. 16th Ave
S.W. 17th Ave
The designated service area for the SBDC is the top 25 counties of the Panhandle. (Childress county is attached to the Wichita Falls SBDC.) 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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S. Buchan an St
S.W. 14th Ave S.W. 15th Ave
Client Distribution
Service Area
St S. Grant
S. Johnso
n St
an St ln St S. Linco
S.E. 10th
S.W. 11th Ave S.W. 12th Ave
St
The SBDC is located in downtown Amarillo in the lower level of the Bank of America, soon to be Happy State Bank building at 7th and Taylor. Parking is available in the garage across the street south.
S.W. 9th Ave
Ave
S. Taylor
Location
S. Washington St
S.E. 10th
St
S.W. 7th Ave S.W. 8th Ave
S. Pierce
SBDC
S.E. 3rd
S. Buchan
St
St
S. Tyler
S. TPolk
S.W. 4th Ave S.W. 5th Ave
S. Taylor St S. Fillmor e St
W. 6th Av e
Ave
S. Harriso n St
S. Jackso n St
S. Adam s St
S. Van Bu ren St
S.E. 3rd
Ave
Ave
SBDC Staff 1
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1. David Dickerson, Assistant Director Bilingual English/Spanish B.B.A. in Finance Launched two start-up businesses
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2. Gina Woodward, Consulting Coordinator Experienced in web design B.B.A. in Marketing, B.S. in Psychology Practiced at Business Profiles & Plans
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The SBDC staff is well qualified to provide business assistance and advice. All staff have realworld business experience and relevant business degrees.
3. Julie Attebury, Senior Business Consultant Licensed real estate broker M.B.A. in General Business Experience in finance/structure of family businesses 4. P.J. Pronger, Director Certified Internet Webmaster M.P.A. in Accounting Thirty years of business ownership 5. Lisa Gray, Business Consultant Former business owner B.B.A. in Business Admin. Paralegal experience
Before anything else, preparation is the key to success. - Alexander Graham Bell
ANNUAL REPO RT 2008
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Funding The SBDC receives major funding from the U.S. Small Business Administration and the State of Texas. We are also fortunate to receive additional private support from local businesses and individuals. Our funding is received separate and apart from the general budget at WTAMU. The SBDC program is a true bargain for taxpayers - for every $1 dollar in funding received, the SBDC generates $11.37 in new tax revenues. There is also a multiplier effect – every $1 expended on the SBDC operation was leveraged by $28.19 raised in new capital by clients. Source – The Chrisman Report
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70% of Americans believe that the success and health of our economy depends on the success of entrepreneurs, and 80% believe that the American Government should encourage more entrepreneurship. Source – The Kauffmann Foundation 4
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SERVICES Consulting 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. Manufacturing consulting is available through an arrangement with the Texas Manufacturing Assistance Center in Lubbock. TMAC works with manufacturers to improve their competitiveness by identifying opportunities and implementing appropriate solutions.
Hi Julie, Thanks to your help, we received our loan and are up and running. The process was amazing! It was actually easier than closing on a house! The loan officer didn’t have one single question because she said that we had been so thorough in the business plan. So, thank you, thank you, thank you! - Jessica Waggoner, Dumas
Training The SBDC conducts seminars and workshops throughout the year on a variety of topics such as Marketing, QuickBooks, Payroll Taxes, Bookkeeping, and Intellectual Property.
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in e s s D e v e e S m a ll B u s
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Liz Varela
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raining 2008 Pro T QuickBooks 2008 16th & 17th, On October
nt son, Assista David Dicker
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SBDC - WTAMU
95% of our clients recommend our services.
- Source – Chrisman Report
Client comments about our QuickBooks training program - “Great!” “Answered every question.” “It helped me tremendously! QuickBooks used to give me anxiety, but now I feel comfortable!” 263 out of the 264 people who attended our “Introduction to Business Ownership” workshop in 2008 said it was worthwhile. ANNUAL REPO RT 2008
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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.
How does Amarillo compare nationally in lifestyle rankings? The top 10 and bottom 10 interests in Amarillo as compared to the national average.
Higher Than Average
Lower Than Average
-60
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-40
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DBAs 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 free notary services for DBA filings, and we publish an informative booklet which describes the process and answers to common questions. OUTREACH The SBDC can send staff to any area of the Panhandle and provide all our regular services. In 2008 we provided outreach programs for the following: Borger Chamber of Commerce Dalhart Chamber of Commerce Happy High School Tulia Chamber of Commerce Tulia High School Hereford Chamber of Commerce Perryton Chamber of Commerce PUBLICATIONS, RESOURCES & WEBSITES The SBDC publishes business tools and documents, as well as a website with resource links and a monthly e-newsletter with business tips and information about funding sources and training. The following are available in our office or by download from our website at www.wtsbdc.com. We also maintain a mobile website with seminar schedules at www.wtsbdc.mobi. “Finding the Money” guide to financial resources for business. “Introduction to Business Ownership” workbook for new business owners. “Checklist for Opening a Business” “Complete Resource List” links to multiple agencies and providers. “DBA Forms” everything for filing an assumed name.
Dear P.J: The old statement – ‘the proof is in the pudding’ is true of the workshop you presented on Marketing for our business people in Borger. I can not tell you how many people have called or come by and told us how much they benefitted from the workshop. They have cited individual plans they have made and are planning to carry through. My sincere thanks to you and David for spending the evening with us in helping these folks develop and be motivated to move forward on their marketing plans. Thank you for sharing your expertise, practical experience, and energies with us on Thursday night. - Sincerely, Beverly K. Benton, CEO Borger Chamber of Commerce
56% of Americans say they have faith and confidence in the owners of small business to guide the U.S. economy, while only 14% say they have faith and confidence in the CEOs of Fortune 500 companies. Source – The Kauffmann Foundation
80% of Americans say they would like to be the owner of a successful small business, while only 14% say they would like to be CEO of a Fortune 500 company. Source – The - Kauffmann Foundation
“Biodiesel Primer” basic information about biodiesel production and links to equipment vendors and resources.
Research Item - Amarilloans eat an average of 4.2 pounds of shrimp per year. ANNUAL REPO RT 2008
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Our Clients
- 630 clients contacted the SBDC in 2008 requesting a variety of services over a wide range of industries. Our clients’ confidentiality is protected by law.
Ratings of Very Good or Excellent
Client Feedback Consultant’s understanding of my needs Consultant’s responsiveness to my questions Quality of advice or information received Time it took to get an appointment Courteousness of the staff 0%
20%
40%
60%
80%
100%
Results
SBDC activities are monitored and measured by both the SBA and an independent auditor.
Clients Served
Goal
Training Programs Delivered
Goal
445
Actual
630 0
100
200
300
400
500
600
30
Actual
700
73
800
0
10
New Businesses Opened
Goal
83 40
60
80
8
100
$17,504,205
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80
0
50
100
150
200
250
300
350
Training Attendees
Actual $10MM
70
333
Goal
$5MM
60
Actual
None
$0MM
50
240
New Capital Created
Goal
40
Goal
Actual 20
30
New Jobs Created
55
0
20
$15MM
$20MM
600
Actual
1,045 0
200
400
600
800
1000
1200
Partnerships
- The SBDC makes every effort to coordinate and collaborate with other organizations involved in economic development. In 2008 we were pleased to work with all of the following: Amarillo Chamber of Commerce Amarillo Economic Development Corporation Amarillo Hispanic Chamber of Commerce Borger Economic Development Corporation Business and Industry Data Center Class 4 Winds Entrepreneur Alliance, Inc. High Ground of Texas Intuit, Inc.
Panhandle Regional Planning Commission Perryton Economic Development Corporation Red River Commons Texas Department of Agriculture Texas Manufacturing Assistance Center Texas Mezzanine Fund Texas Panhandle Regional Development Corporation Texas University Network for Innovation & Entrepreneurship WTAMU Enterprise Network
Client Profile Average Age 18-24 25-34 35-44 45-54 55-64 Over 64 0%
5%
10%
15%
20%
25%
30%
35%
Education 8th grade or less Some high school High school diploma or GED Some college Associate degree Bachelor degree Graduate degree 0%
10%
20%
30%
40%
50%
Household Income Less than $25,000 per year $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 and over 0%
5%
10%
15%
20%
25%
The SBDC helps support youth activities of the Red River Cluster Youth Entrepreneurship Fair each fall. In 2008, there were 41 contestants from the high schools of Dimmitt, Hart, Nazareth, Tulia, and Happy who won cash prizes of $5,275 by presenting business plans for new rural business ideas.
30%
The SBDC helped launch 83 new businesses in FY 2008.
ANNUAL REPO RT 2008
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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 Network
Funded in part through a cooperative agreement with the U.S. Small Business Administration