West Texas A&M University
SMALL BUSINESS DEVELOPMENT CENTER
ANNUAL REPORT
2012
& CLIENT SURVEY
ENTREPRENEURS
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SBDC ANNUAL REPORT 2012
ENTREPRENEURS
January 11, 2013
To Our Clients, Partners, and Friends: Small business is the backbone of the American economy, and West Texas A&M University is a leader in providing services and assistance to the regional business community. The Small Business Development Center is the most cost effective business assistance program in existence today, but our capital network, contract procurement services, and technology transfer activities are also important contributions to the economy as a whole. In this year’s annual report, we have highlighted some of the business services that are less well known. And for the fourth year we have surveyed local business owners and managers to get a report on how they fared in 2012, and their outlook for the economy in 2013. You will see that, on balance, 2012 was a good year and the expectations for 2013 are even higher. If there is any way we can be of assistance to your business or organization, please don’t hesitate to contact me. Sincerely,
PJ Pronger Director
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SBDC ANNUAL REPORT 2012
WTAMU Office of
Economic Innovation: The Small Business Development Center helps people start and run businesses.
Equitrend Capital invests in local ventures.
West Texas Angel Network introduces entrepreneurs to private investors.
Contract Procurement Center provides a bridge for private businesses to sell to governments.
WTAMU Office of Technology Commercialization
Technology Commercialization creates new businesses from university research projects.
Partner with Us Our mission is economic development through business creation. If that concept fits into your mission, we both might benefit from working together. Our partnerships generally fall into four categories: 1. 2. 3. 4.
Referral Partners – providing client referrals. Resource Partners – providing essential small business services. Training Partners – providing expert trainers in business subject matter. Investor Partners – providing financial resources to accomplish economic development goals.
For more information on partnership opportunities, call PJ Pronger at 806-372-5151 or email pj@wtsbdc.com.
SBDC ANNUAL REPORT 2012
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Helping people start and run businesses. Small Business Development Center is an economic development organization that creates jobs by providing assistance to new business start-ups and also by helping existing businesses solve problems and expand efficiently and profitably. The SBDC provides free and confidential one-on-one consulting specializing in the following: • Business Plans • Internet Operations • Business Valuation • Marketing and Advertising • Financial Analysis • Organizing Start-ups • Finding and Preparing for Financing The SBDC also conducts workshops and seminars throughout the year on a variety of topics, as well as providing research services for business planning and marketing purposes. We partner with Chambers of Commerce and Economic Development organizations to provide all our services to the entire region. This SBDC is part of a nationwide network of SBDC programs and is affiliated with and supported by West Texas A&M University in Canyon. It is one of six centers that comprise the Northwest Texas Regional SBDC Network. For more information, visit us at www.wtsbdc.com. “When I came to David the first time and throughout his visits with me – I greatly appreciated his mentoring. I saw it that way and it really helped me and my business a lot because every time that a little bump in the road came about, I remember David talking to me about it and his advice through his personal journey in small business really helped me.” — Tuan Pham, Phat Spoons, Amarillo
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SBDC ANNUAL REPORT 2012
Investing in local ventures.
A certified Community Development Financial Institution.
Equitrend Capital is an equity fund which invests in early stage companies in the Amarillo trade area to promote sustainable business growth throughout the region. In addition to capital, the fund provides operational assistance through its association with non-profit partner agencies. Equitrend has two missions: • Provide market rate financial returns to the fund’s investors, and • Create good jobs and new entrepreneurs within the community. Entrepreneurs who are in the early stages of developing a business with significant profit potential in the Texas Panhandle can apply online at www.EquitrendCapital.com.
“We invested in Equitrend on the recommendation of Catherine Austin Fitts and Solari Investment Advisory Services. We believe that Equitrend’s “double bottom line” approach to investing (providing returns to the community as well as the investors) contributes to our community’s well being. It has been an easy step for us to invest in Equitrend because its vision to create and support an entrepreneurial community in the Amarillo area also provides employment opportunities.” — Drs. Rolf and Pia Habersang
SBDC ANNUAL REPORT 2012
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Introducing entrepreneurs to private investors. WTAN is a non-profit organization based in Amarillo which facilitates the introduction of entrepreneurs to potential investors. WTAN members invest as individuals (not as a fund) in privately held companies which are typically in an early stage of development. WTAN provides the coordination and administration to give members access to quality, screened investment opportunities. Membership is open to individual investors by invitation only. To join the WTAN network, an individual must: • Qualify as an accredited investor. • Agree to the Rules of Membership and Conduct. • Have relevant investment experience or be interested in learning. • Be willing to pay annual dues. For more information, go to www.WestTexasAngelNetwork.com. “Presenting to the WTAN was the perfect opportunity for Confluence to connect with a broad range of local investors who are passionate about growing local companies. The investors from the WTAN who invested in Confluence have been extremely helpful, not just from a funding standpoint, but in helping Confluence with business processes, accounting, and overall corporate strategy. The benefits to local companies such as ours in having access to successful interested angel investors are numerous and help to grow the Amarillo area economy in new directions.” — Jake Brecheen, President/CEO, Confluence Security Group
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SBDC ANNUAL REPORT 2012
Providing a bridge for private businesses to sell to governments. The US Government spends 3.5 trillion per year. They’re the world’s largest buyer of goods and services, and they want to purchase from small businesses. A Total of 1.44 trillion dollars will be spent with small businesses this year. If you want your share of business from the government, call the WT CPC. We will work with you through the process of bidding and completing government work, FREE OF CHARGE. Services offered include: • Consulting • Seminars & Workshops • Market Research • Bid Matching Contract Procurement is one of the few true WIN/WIN strategies for a business and the government! Check us out at www.ContractProcurementCenter.com. “We just found out that we were awarded 1 of the 3 contracts with the State of Texas General Land Office! The other two companies are huge national companies and then there is us, the little local company. We are very excited and plan to schedule another meeting to go over what we might expect through the process and make sure we have everything in order to sign the contract.” — Dirk van Reenen, Caprock Auction Group
SBDC ANNUAL REPORT 2012
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WTAMU Office of Technology Commercialization Creating new businesses from university research projects. The WT Commercialization Office helps faculty and students fulfill their vision as researchers, protects their intellectual property rights, and connects them to outside commercial resources. Our mission positively impacts faculty, staff, students, and society. Goals for the Commercialization Program at WTAMU: • Provide a well-defined pathway for inventors to follow. • Successfully commercialize research from faculty, staff, and students. • Provide a fair financial return to inventors. • Increase future resources for education and research. • Ensure that benefits of research reach the public. “All research is valuable in some way, but some research can only improve our quality of life when commercialized.” Visit us online at www.Technology.Tamu.edu.
“We’re working on a new material that is resistant to any kind of bacterial growth. It could be used for medical surfaces or as a filter in a gas mask — there are a lot of exciting applications for this work.” — Dr. Emily Hunt, WTAMU
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SBDC ANNUAL REPORT 2012
THE LANDSCAPE IN 2012 Just how did our local businesses fare in 2012, compared to the prior year?
2012
Business Description:
Please choose the selection that describes your operation.
Retail Wholesale or
Distribution
Services
(for-profit)
Other For-Profit Business
Everything else -
Govt., Education, Non-profit, Etc.
Sales:
How were your sales (or equivalent measure) in 2012 compared to 2011? (Total revenues from all business related activities.)
RESPONSE PERCENT
RESPONSE COUNT
5%
3
7%
4
55%
33
10%
6
23%
14
2012
RESPONSE PERCENT
RESPONSE COUNT
2011
RESPONSE PERCENT
RESPONSE COUNT
Up
58%
29
50%
39
Down
16%
8
27%
21
About the same
26%
13
23%
18
2012
Costs:
How were your costs in 2012 compared to 2011?
RESPONSE PERCENT
(All costs of doing business.)
RESPONSE COUNT
2011
RESPONSE PERCENT
RESPONSE COUNT
Up
54%
27
61%
48
Down
8%
4
12%
9
About the same
38%
19
27%
21
Employees:
How was your employee count at the end of 2012 compared to 2011? (Total number of full-time equivalent employees on the payroll.)
2012
RESPONSE PERCENT
RESPONSE COUNT
2011
RESPONSE PERCENT
RESPONSE COUNT
Up
29%
15
22%
17
Down
12%
6
20%
16
About the same
41%
21
40%
31
No employees
18%
9
18%
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SBDC ANNUAL REPORT 2012
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Capital Investment 2012:
2012
Did you make any capital investments in 2012?
(Purchase of any equipment, real property, or intangibles that will have more than one year of use.)
RESPONSE PERCENT
RESPONSE COUNT
2011
RESPONSE PERCENT
RESPONSE COUNT
Yes
53%
27
56%
44
No
47%
24
44%
34
Capital Investment 2012:
If you did make a capital investment in 2012, approximately how much was it?
2012
RESPONSE PERCENT
RESPONSE COUNT
$0 - $100,000 $100 - $250
68%
17
8%
2
$250 - $500
(thousands)
8%
2
$500 - $1.0
(thousands to millions)
4%
1
Over $1.0
12%
3
(thousands)
(millions)
Capital Investment 2013:
Do you expect to make any capital investments in 2013? (Purchase any equipment, real property, or intangibles that will have more than one year of use.)
2013
RESPONSE PERCENT
RESPONSE COUNT
Yes
63%
31
No
37%
18
Capital Investment 2013:
2013
Approximately how much do you think your capital investments in 2013 will be?
RESPONSE PERCENT
RESPONSE COUNT
$0 - $100,000 $100 - $250
74%
23
(thousands)
13%
4
$250 - $500
(thousands)
0%
0
$500 - $1.0
0%
0
Over $1.0
13%
4
(thousands to millions) (millions)
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SBDC ANNUAL REPORT 2012
FUNDING OPTIONS The news continues to report on how difficult it is to fund small business. Here is what our locals experienced in 2012.
2012
Resources:
How did you finance your business in 2012?
RESPONSE PERCENT
(Check all that apply.)
RESPONSE COUNT
Personal Resources
(self-financed)
20%
9
Loan from a Bank
30%
13
Loan from Savings & Loan
0%
0
Loan from a Credit Union
0%
0
Loan from Friend
or family member
0%
0
Loan from Non-Bank Lender PRPC microloan or govt. sponsored program
2%
1
Loan or Investment
from investors
2%
1
Credit from Vendor
5%
2
Credit Card (s)
7%
3
or other community agency
EDC or other
0%
0
Other
2%
1
Not Applicable
52%
23
or supplier
2012
Resources:
RESPONSE PERCENT
Were you able to get all the financing needed in 2012?
RESPONSE COUNT
2011
RESPONSE PERCENT
RESPONSE COUNT
Yes
38%
18
37%
28
No
15%
7
16%
12
Not applicable
47%
23
47%
36
Additional Services The WT Office of Economic Innovation also oers these services: QuickBooks Specialized Assistance Website Analysis & Review Social Media Marketing Programs Contact us for more information.
SBDC ANNUAL REPORT 2012
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FINDING APPROPRIATE ASSISTANCE The news continues to report on how difficult it is to fund small business. Here is what our locals experienced in 2012.
Resources:
Which of the following business resources are you familiar with? (Check all that apply.)
2012
RESPONSE PERCENT
RESPONSE COUNT
2011
RESPONSE PERCENT
RESPONSE COUNT
New Markets Tax Credits WT Small Business Development Center
18%
8
17%
11
84%
38
86%
57
WT Enterprise Center
71%
32
58%
38
WT Contract Procurement Center
58%
26
29%
19
SBA Loan Guarantees
71%
32
74%
49
EDP Plus Program
4%
2
3%
2
West Texas Angel Network
29%
13
29%
19
Equitrend Capital
16%
7
18%
12
TPRDC Microloans
22%
10
18%
12
WT Sponsored Research Services
22%
10
—
—
Accion Texas
2%
1
5%
3
Enterprize Challenge
58%
38
58%
38
Emerging Technology Fund
22%
10
21%
14
Texas Mezzanine Fund
13%
6
14%
9
Crowdfunding and Peer to Peer Lending
11%
5
11%
7
AEDC Interest Rebate Program
18%
8
17%
11
Center City Facade Grant
27%
12
15%
10
USDA Value Added Grant
16%
7
14%
9
USDA Biomass Grant
7%
3
9%
6
Route 66 Grant
9%
4
5%
3
Small Business Innovation Research Grant
13%
6
18%
12
WT Strategic Marketing Initiative
33%
15
—
—
Texas Panhandle Regional Development Corp. at Amarillo EDC
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SBDC ANNUAL REPORT 2012
FINDING APPROPRIATE ASSISTANCE (continued)
2012
Finding Appropriate Assistance:
Did you use any business services from WTAMU in 2012?
RESPONSE PERCENT
(Small Business Development Center, Enterprise Center, Sponsored Research, etc.)
RESPONSE COUNT
2011
RESPONSE PERCENT
RESPONSE COUNT
Procurement Center
Contract
13%
6
—
—
Enterprise Center
13%
6
—
—
SBDC
37%
17
—
—
Sponsored
0%
0
—
—
Strategic
2%
1
—
—
No, didn’t use any of these
59%
27
—
—
Research Center
Marketing Initiative
Finding Appropriate Assistance - For "yes" responses:
2012
Do you feel that the business services from WTAMU helped your business in 2012?
RESPONSE PERCENT
(Small Business Development Center, Enterprise Center, Sponsored Research, etc.)
RESPONSE COUNT
2011
RESPONSE PERCENT
RESPONSE COUNT
Yes
100%
19
97%
34
No
0%
0
3%
1
Will these government initiatives help or hurt your business? (Enter one choice for each initiative.)
HELPS
HURTS
NO EFFECT
2012 RESPONSE COUNT
Keeping Bush Tax Cuts
35
1
5
41
Reducing The Deficit
31
3
5
39
Dickerson honored with Award The Association of Small Business Development Centers honored David Dickerson with the 2012 State Star Award. The award is presented annually to one employee from each state who has displayed exemplary performance at work, made a significant contribution to their small business development center region and shown a strong commitment to small business. David was selected by Craig Bean, Executive Director of the Northwest Texas Small Business Development Center Region, and Dr. Allen Carrigo, the region’s Director of Operations and Support, for his contributions including pioneering the center’s rural consulting program and QuickBooks services.
SBDC ANNUAL REPORT 2012
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MARKETING Marketing is an essential element of a successful business, and when times are bad it becomes more important than ever. Here is how area businesses used marketing in 2012:
2012
Marketing:
In 2012, did your marketing activities…
RESPONSE PERCENT
RESPONSE COUNT
2011 RESPONSE PERCENT
RESPONSE COUNT
Increase
43%
20
38%
29
Decrease
4%
2
12%
9
Stay about same
47%
22
36%
27
Not applicable
6%
3
14%
11
2012
Marketing:
RESPONSE PERCENT
In 2011, what types of marketing did you use?
RESPONSE COUNT
2011 RESPONSE PERCENT
RESPONSE COUNT
Billboards
9%
4
116%
10
TV
14%
6
22%
14
45%
20
50%
32
Direct Mail
41%
18
31%
20
Radio
23%
10
25%
16
50%
22
55%
35
Website Promo Items
77%
34
72%
46
36%
16
30%
19
Yellow Pages
45%
20
44%
28
Vehicle Signage Store Signage
20%
9
23%
15
(outside your location)
27%
12
27%
17
Sales Calls
(door to door)
11%
5
8%
5
Telephone
25%
11
16%
10
Internet
20%
9
13%
8
Face to Face
68%
30
55%
35
Social Media
34%
15
47%
30
Other
5%
2
13%
8
(outbound calls) (ads/leads)
networking
Facebook, Twitter, etc.
The WT SBDC was the top job-creating center for 2012 in the SBA’s West Texas District.
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SBDC ANNUAL REPORT 2012
EMPLOYMENT & HEALTHCARE Employer-sponsored healthcare is in for a change in the coming years; these questions reflect the thinking of our respondents prior to any new legislation.
2012
Health Care:
Did you offer healthcare to your employees in 2012?
RESPONSE PERCENT
RESPONSE COUNT
2011 RESPONSE PERCENT
RESPONSE COUNT
Yes
49%
23
31%
23
No
30%
14
48%
36
No employees
21%
10
21%
16
Health Care:
Do you plan to offer healthcare to your employees in 2013?
2012 RESPONSE PERCENT
RESPONSE COUNT
2011 RESPONSE PERCENT
RESPONSE COUNT
Yes
53%
25
35%
26
No No employees
30%
14
42%
31
17%
8
23%
17
(in 2013)
THE OUTLOOK These results speak for themselves.
2012 vs. 2011:
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.)
2012 RESPONSE PERCENT
RESPONSE COUNT
2011 RESPONSE PERCENT
RESPONSE COUNT
Better
48%
22
41%
31
Worse
17%
8
21%
16
About the Same
35%
16
37%
28
2012
2013 vs. 2012:
Do you believe that 2013 will be better for business than 2012?
RESPONSE PERCENT
RESPONSE COUNT
2011 RESPONSE PERCENT
RESPONSE COUNT
Yes
57%
27
59%
44
No
28%
13
17%
13
Don’t know
15%
7
24%
18
E nd of Sur v ey
SBDC ANNUAL REPORT 2012
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SBA Small Business of the Year – Mike Ramirez
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SBDC ANNUAL REPORT 2012
2012 Staff
The Organization 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.
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2
3
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’s mission is to provide consulting, training, and research to small businesses in pursuit of community economic development.
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5
6
Values – The values governing the SBDC’s activities include: • • • • •
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8
1) P.J. Pronger, Director Certified Internet Webmaster M.P.A. in Accounting 2) David Dickerson, Assistant Director Bilingual English/Spanish M.B.A. in Finance 3) Julie Attebury, Senior Business Consultant Licensed real estate broker M.B.A. in General Business 4) Gina Woodward, Consulting Coordinator B.B.A. in Marketing, B.S. in Psychology Social Media Manager 5) Rick Palmer, Program Manager B.S. Industrial Distribution 6) Ana Ramirez, Student Assistant Named Outstanding Student Employee for WTAMU Graduated in 2012 with a B.B.A. 7) Jason Smith, Associate Business Consultant B.B.A. in Management & Marketing Background in restaurant ownership 8) Sarah Koenig, Student Assistant Business Management & Marketing Major Two staff members moved on in 2012: Julie Attebury and Ana Ramirez—and two new staff members joined us—Jason Smith and Sarah Koenig. SBDC ANNUAL REPORT 2012
Professionalism Competence Accuracy of Knowledge Ethical Conduct Real Value to Clients
Service Area Dallam
Sherman
Hansford
Ochiltree
Lipscomb
Hartley
Moore
Hutchinson
Roberts
Hemphill
Oldham
Potter
Carson
Gray
Wheeler
Donley
Collingsworth
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.)
Amarillo Deaf Smith
While we don’t market our services outside this area, we are free to assist clients in other locations upon their request.
Parmer
Castro
Randall
Swisher
Armstrong
Briscoe
Hall
Outreach 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. The SBDC program is a true bargain for taxpayers — for every $1 dollar in program funding received, the SBDC generates $9.63 in new tax revenues. There is also a multiplier effect — every $1 expended on the SBDC operation was leveraged by $14.38 raised in new capital by clients. Source – The Chrisman Report
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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 2012 are as follows:
METRIC
GOAL
ACTUAL
340
444
2,200
1,791
New Businesses Opened
45
52
New Jobs Created
185
202
New Capital Formed
NA
$3,437,645
Training Sessions Held
30
53
600
604
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 2012 we were pleased to work with all of the following:
Amarillo Chamber of Commerce Amarillo College Amarillo EDC Amarillo Hispanic Chamber of Commerce Amarillo Women’s Lender Forum Committee Borger Chamber of Commerce Borger EDC Business and Industry Data Center B&W Pantex Cannon Air Force Base Dalhart Chamber of Commerce Dumas EDC Entrepreneur Alliance, Inc. High Ground of Texas Leading EDG Pampa Chamber of Commerce Perryton CDC Potter County Leadership Advisory Board Texas Manufacturing Assistance Center Texas Panhandle Regional Development Corporation Texas Tech Health Sciences Center Texas Tech University System Tulia High School West Texas Angel Network WT Enterprise Center
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SBDC ANNUAL REPORT 2012
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.