SBDC
2013
ANNUAL REPORT & CLIENT SURVEY
The G O L D S TA N D A R D F O R E N T R E P R E N E U R A S S I S TA N C E P R O G R A M S
SBDC ANNUAL REPORT 2013
a
January 11, 2014
To Our Clients, Partners, and Friends: The US Government Accountability Office recently conducted an analysis of 52 economic development programs supporting entrepreneurship across the US and found that Small Business Development Centers deliver the most consistent services, operate with the most robust standards, and have the strongest financial controls of all programs. Additionally, SBDCs were identified as the only program to maintain accreditation based on strict Baldrige Quality Program standards. SBDCs are also credited with providing the highest return on investment of all entrepreneurship programs funded with public tax dollars, and they were found to create new jobs at a higher rate than other programs while maintaining the lowest average cost per job created. In short, SBDC activities have been verified by this independent agency as the “gold standard� for entrepreneurship assistance programs. It is our distinct honor and privilege to provide these superior services to our local communities in pursuit of economic improvement for all. 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
SBDC ANNUAL REPORT 2013
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Homebased Artisan Libby Lane Handbags, LLC – 1 employee After attending Chicago Art Institute and then living in New York, Libby Lane returned to her roots in Texas and started a custom handbag business. Created in a bunkhouse on 4th generation family land, her designs have attracted the attention of glamour magazines and the social set. Selling online only, Libby markets predominantly to the two coasts where her handbags are in the highest demand.
2
SBDC ANNUAL REPORT 2013
Finding A Niche Little Bird Preschool – 9 employees Sara Adamchak felt there was a demand for an art and nature based preschool in Amarillo and did some primary market research by talking face to face with potential customers. When she started looking for property, she found a home and grounds on Interstate 27 and immediately knew, “This is it!” With the SBDC and her business plan for support, she was able to put together a complete financing package which included her own equity, a grant from the EDP Plus program, a 504 loan from the TPRDC, and a loan from Happy State Bank. The financial projections were based on an enrollment of 25 which were quickly surpassed - she currently has 48 children enrolled. The community has embraced Little Bird, and there is strong support from parents who help with special projects, such as the building lab and vegetable garden - all meals use organic and non-processed food. There are no TVs on the premises, and every child has time outdoors every day. Her advice for entrepreneurs? “Be ready to work 70 hours a week.”
SBDC ANNUAL REPORT 2013
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Leveraging Technology Bella Luna, LLC – 10 employees J’Hon Martinez wanted to turn a day spa into the kind of upmarket medical spa that she believed could capture a better market. J’Hon engaged the SBDC for a feasibility analysis, wrote a new business plan, and bought out her partner. She remade the spa in part by purchasing a new laser therapy machine that allows her to offer phototherapy and laser skin treatments. She has an on-staff medical director and now receives referrals from doctors, one factor that has helped to increase her male clientele. Her advice for entrepreneurs? “Only hire the right people.”
4
SBDC ANNUAL REPORT 2013
Smart Marketing Tyler’s Barbecue – 11 employees Tyler Frazer is proving that you can still start a successful business inexpensively. Tyler’s Barbecue was started on the proverbial “shoestring” and has been “blessed and highly favored” to see a 20% to 30% increase in revenue each year since they started in 2010. Tyler’s was originally financed by family members who were paid back in 10 months, partially because Tyler is so careful with money—he spent a total of $105 “out of pocket” for decorating the restaurant. Social media has helped his business significantly and being named by Texas Monthly as one of the 50 best barbecue places in the world provided the biggest boost he has gotten. Now he gets significant traffic from travelers who find him on Trip Advisor, Roadfood, and FaceBook. His advice for entrepreneurs? “You really have to want it. I worked 18 hours a day for the first two years. And find a friend with a similar business that you can talk to.”
SBDC ANNUAL REPORT 2013
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Scaling Up
American Site Builders – 300 employees Dwayne Hoving made the decision early on that he wanted to own a business that could scale. He was a practicing psychologist when he bought a small piece of this business which provides construction services for the power industry, but he soon realized that he wanted it to be a lot more. He envisioned a “business of systems” which could grow through the talents of a team, so, like many successful entrepreneurs, Dwayne bought out his partners in order to pursue his vision for the company. The team Dwayne put in place has taken American Site Builders from 3 employees to 300 in about four years. He entered the Enterprize Challenge at the suggestion of the SBDC, and it became a catalyst in transforming the company because of the learning process that it enforces. The $100,000 check that came with winning “was just icing on the cake.” Today American Site Builders is HUB and NMSDC certified, growing revenue by triple digit percentages, and planning a new building in CenterPort Business Park for 2014. His advice for entrepreneurs? “Get the right people and the right processes in place. A paid advisory board has also been extremely valuable for us.”
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SBDC ANNUAL REPORT 2013
SBDC 2013
THE LANDSCAPE IN 2013 Just how did our local businesses fare in 2013, compared to the prior year?
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 2013 compared to 2012? (Total revenues from all business related activities.)
2013
RESPONSE PERCENT
5
5%
2
51%
21
15%
6
17%
7
2013
RESPONSE PERCENT
46%
Down
24%
About the same
29%
How were your costs in 2013 compared to 2012? (All costs of doing business.)
RESPONSE COUNT
12%
Up
Costs:
Client Survey
RESPONSE COUNT
19 10 12
2013
RESPONSE PERCENT
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
58%
29
16%
8
26%
13
2012
RESPONSE PERCENT
RESPONSE COUNT
Up
59%
24
54%
27
Down
5%
2
8%
4
About the same
37%
15
38%
19
Employees:
How was your employee count at the end of 2013 compared to 2012? (Total number of full-time equivalent employees on the payroll.)
2013
RESPONSE PERCENT
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
Up
20%
8
29%
15
Down
15%
6
12%
6
About the same
51%
21
41%
21
No employees
15%
6
18%
9
From our first-time client surveys: “Excellent time spent with David, very good information and excellent ideas. Gave me direction to go to get my business up and running. Would recommend to anyone that needs help with business direction. Very professional. Thank you for the help!!” — Anonymous Submission
SBDC ANNUAL REPORT 2013
7
SBDC 2013 Client Survey
THE LANDSCAPE IN 2013
(continued from page 7)
Just how did our local businesses fare in 2013, compared to the prior year?
Capital Investment 2013:
Did you make any capital investments in 2013? (Purchase of any equipment, real property, or intangibles that will have more than one year of use.)
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
Yes
46%
19
53%
27
No
54%
22
47%
24
Capital Investment 2013:
If you did make a capital investment in 2013, approximately how much was it?
2013
RESPONSE PERCENT
RESPONSE COUNT
$0 - $100,000 $100 - $250
58%
11
21%
4
$250 - $500
(thousands)
11%
2
$500 - $1.0
(thousands to millions)
0%
0
Over $1.0
11%
2
(thousands)
(millions)
Capital Investment 2014:
Do you expect to make any capital investments in 2014? (Purchase any equipment, real property, or intangibles that will have more than one year of use.)
2014
RESPONSE PERCENT
RESPONSE COUNT
Yes
49%
20
No
51%
21
Capital Investment 2014:
Approximately how much do you think your capital investments in 2014 will be?
2014
RESPONSE PERCENT
RESPONSE COUNT
$0 - $100,000 $100 - $250
55%
11
(thousands)
25%
5
$250 - $500
(thousands)
5%
1
$500 - $1.0
5%
1
Over $1.0
10%
2
(thousands to millions)
(millions)
8
2013
RESPONSE PERCENT
SBDC ANNUAL REPORT 2013
SBDC
FUNDING OPTIONS The news continues to report on how difficult it is to fund small business. Here is what our locals
2013
experienced in 2013.
Resources:
How did you finance your business in 2013? (Check all that apply.)
RESPONSE PERCENT
RESPONSE COUNT
Personal Resources
(self-financed)
13%
5
Loan from a Bank
26%
10
Loan from Savings & Loan
3%
1
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
0%
0
Loan or Investment from investors
3%
1
Credit from Vendor
5%
2
Credit Card (s)
3%
1
or other community agency
EDC or other
0%
0
Other
0%
0
Ag Lender
3%
1
Not Applicable
50%
19
or supplier
2013
Resources:
Were you able to get all the financing needed in 2013?
Client Survey
2013
RESPONSE PERCENT
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
Yes
49%
20
38%
18
No
7%
3
15%
7
Not applicable
44%
18
47%
23
From our first-time client surveys: “Gina was REALLY awesome, her enthusiasm for my idea was nearly greater my own. Honestly, for the first time in a long time I had the feeling that someone was really trying to help me accomplish something. She was doing her best to help me create some good luck by doing the smart things at this early stage; I’m excited to see what the next few weeks will produce.” — Anonymous Submission
SBDC ANNUAL REPORT 2013
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SBDC 2013 Client Survey
FINDING APPROPRIATE ASSISTANCE Many resources exist to help entrepreneurs and small business owners. This section indicates the public awareness level of various resources and programs.
Resources:
Which of the following business resources are you familiar with? (Check all that apply.)
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
New Markets Tax Credits WT Small Business Development Center
23%
9
18%
8
85%
33
84%
38
WT Enterprise Center
72%
28
71%
32
WT Contract Procurement Center
54%
21
58%
26
SBA Loan Guarantees
85%
33
71%
32
EDP Plus Program
8%
3
4%
2
West Texas Angel Network
38%
15
29%
13
Equitrend Capital
23%
9
16%
7
TPRDC Microloans
31%
12
22%
10
WT Sponsored Research Services
26%
10
22%
10
Accion Texas
8%
3
2%
1
Amarillo Enterprize Challenge
74%
29
58%
38
Emerging Technology Fund
41%
16
22%
10
Texas Mezzanine Fund
18%
7
13%
6
Crowdfunding and Peer to Peer Lending
38%
15
11%
5
AEDC Interest Rebate Program
31%
12
18%
8
Center City Facade Grant
31%
12
27%
12
USDA Value Added Grant
26%
10
16%
7
USDA Biomass Grant
8%
3
7%
3
Route 66 Grant
10%
4
9%
4
Small Business Innovation Research Grant
31%
12
13%
6
Texas Panhandle Regional Development Corp. at Amarillo EDC
10
2013
RESPONSE PERCENT
SBDC ANNUAL REPORT 2013
SBDC 2013 Client Survey
FINDING APPROPRIATE ASSISTANCE (continued)
2013
Finding Appropriate Assistance:
Did you use any business services from WTAMU in 2013?
RESPONSE PERCENT
(Small Business Development Center, Enterprise Center, Sponsored Research, etc.)
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
Procurement Center
Contract
12%
5
13%
6
Enterprise Center
10%
4
13%
6
SBDC
29%
12
37%
17
Sponsored
2%
1
0%
0
No, didn’t use any of these
63%
26
59%
27
Research Center
Finding Appropriate Assistance - For "yes" responses:
2013
Do you feel that the business services from WTAMU helped your business in 2013?
RESPONSE PERCENT
(Small Business Development Center, Enterprise Center, Sponsored Research, etc.)
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
Yes
100%
15
100%
19
No
0%
0
0%
0
Will these government initiatives help or hurt your business? (Enter one choice for each initiative.)
2013
HELPS
HURTS
NO EFFECT
RESPONSE COUNT
Obama Care
2
27
7
36
Reducing the Federal Deficit
17
2
11
30
From our first-time client surveys: “You guys are wonderful! We had so many questions and felt a little overwhelmed when we left at the magnitude of opportunities you provide for someone who is willing to work at making big things happen. We realized there is no limit to our potential with you on our team. Thank you so much for your devotion to the common man.” — Anonymous Submission
SBDC ANNUAL REPORT 2013
11
SBDC 2013 Client Survey
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 2013:
2013
Marketing:
In 2013, did your marketing activities…
RESPONSE PERCENT
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
Increase
32%
13
43%
20
Decrease
7%
3
4%
2
Stay about same
59%
24
47%
22
Not applicable
2%
1
6%
3
2013
Marketing:
In 2013, what types of marketing did you use?
RESPONSE PERCENT
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
Billboards
18%
7
9%
4
TV
15%
6
14%
6
31%
12
45%
20
Direct Mail
36%
14
41%
18
Radio
26%
10
23%
10
59%
23
50%
22
Website Promo Items
77%
30
77%
34
33%
13
36%
16
Yellow Pages
36%
14
45%
20
Vehicle Signage Store Signage
10%
4
20%
9
(outside your location)
18%
7
27%
12
Sales Calls
(door to door)
0%
0
11%
5
Telephone
(outbound calls)
3%
1
25%
11
Search Engine Marketing
21%
8
*20%
*9
Face to Face
networking
49%
19
68%
30
Facebook, Twitter, etc.
Social Media
46%
18
34%
15
Other
8%
3
5%
2
Pay per Click
5%
2
–
–
Online Newspaper
15%
6
–
–
Printed Magazine
26%
10
–
–
Online Magazine
15%
6
–
–
Yellow Pages/
10%
4
–
–
(Not Pay per Click)
(Google Adwords for example)
Phone Book ONLINE
*Internet (ads/leads) 12
SBDC ANNUAL REPORT 2013
SBDC 2013 Client Survey
MARKETING (continued)
2013
Marketing:
RESPONSE PERCENT
What social media did you use in 2013?
RESPONSE COUNT
56%
10
94%
17
50%
9
Google+
22%
4
11%
2
Tumblr
6%
1
YouTube
17%
3
11%
2
Blog (you own)
22%
4
Other
0
0
Vine
6%
1
2013
Marketing:
Do you think social media marketing helped your business in 2013?
RESPONSE PERCENT
RESPONSE COUNT
Yes
72%
13
No
6%
1
Can’t Tell
22%
4
Our online training includes, “Introduction to Business Ownership” “Everyone even thinking about starting a business should be required to take that course, download and print the booklet and fill in the startup expense forms. It was great!” —Mr. Russell
SBDC ANNUAL REPORT 2013
13
SBDC 2013 Client Survey
EMPLOYMENT & HEALTHCARE Employer-sponsored healthcare is in for a change in the coming years; these questions reflect the thinking of our respondents on the subject.
2013
Health Care:
Did you offer healthcare to your employees in 2013?
RESPONSE PERCENT
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
Yes
54%
22
49%
23
No
34%
14
30%
14
No employees
12%
5
21%
10
2013
Health Care:
Do you plan to offer healthcare to your employees in 2014?
RESPONSE PERCENT
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
Yes
54%
22
53%
25
No No employees
37%
15
30%
14
10%
4
17%
8
(in 2013)
THE OUTLOOK These results speak for themselves.
2013 vs. 2012:
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.)
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
Better
51%
21
48%
22
Worse
15%
6
17%
8
About the Same
34%
14
35%
16
2013
2014 vs. 2013:
Do you believe that 2014 will be better for business than 2013?
RESPONSE PERCENT
RESPONSE COUNT
2012
RESPONSE PERCENT
RESPONSE COUNT
Yes
59%
24
57%
27
No
5%
2
28%
13
Don’t know
37%
15
15%
7
E nd of Sur v ey
14
2013
RESPONSE PERCENT
SBDC ANNUAL REPORT 2013
SBA Announces 2013 Small Business Person of the Year LUBBOCK, TX. – The U.S. Small Business Administration (SBA) is proud to announce Casey & Brandi Cowan of Watonga Cheese Factory of Perryton, Texas are the recipients of the 2013 Small Business Person of the Year for the West Texas District. Casey and Brandi Cowan, owners of Watonga Cheese Factory, were nominated by the West Texas A&M Small Business Development Center in Amarillo, Texas. Watonga Cheese Factory manufactures, distributes, and sells their products through their local storefront, online, and in local grocery stores. They are now offering their products at over 30 locations throughout Texas, Oklahoma, and Kansas. “We are proud of Mr. and Mrs. Cowan for their outstanding contribution to the Perryton small business community. This award is a tribute to their dedication and hard work,” said West Texas District Director, Calvin Davis. “We are excited to have this opportunity to recognize them.”
SBDC ANNUAL REPORT 2013
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2 0 13 SBD C 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.
P.J. Pronger, Director Certified Internet Webmaster M.P.A. in Accounting
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.
David Dickerson, Assistant Director Bilingual English/Spanish M.B.A. in Finance
Gina Woodward, Business Consultant B.B.A. in Marketing, B.S. in Psychology Social Media Manager
Rick Palmer, Program Manager Contract Procurement Center B.S. Industrial Distribution
Ana Ramirez, Consulting Coordinator Bilingual English/Spanish B.B.A. from WTAMU
Jaclynn Sidney, Student Assistant
Values – The values governing the SBDC’s activities include: • • • • •
Professionalism Competence Accuracy of Knowledge Ethical Conduct Real Value to Clients
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.) While we don’t market our services outside this area, we are free to assist clients in other locations upon their request.
SBDC ANNUAL REPORT 2013
Dallam
Sherman
Hansford
Ochiltree
Lipscomb
Hartley
Moore
Hutchinson
Roberts
Hemphill
Oldham
Potter
Carson
Gray
Wheeler
Deaf Smith
Randall
Armstrong
Donley
Collingsworth
Parmer
Amarillo
Castro
Swisher
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 in program funding received, the SBDC generates $3.55 in new tax revenue. There is also a multiplier effect — every $1 expended on the SBDC operation was leveraged by $25.93 raised in new capital by clients. Source – The Chrisman Report
16
Service Area
Activities 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.
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 2013 are as follows:
METRIC
GOAL
ACTUAL
340
487
2,200
1,722
New Businesses Opened
45
47
New Jobs Created
185
197
New Capital Formed
NA
$4,211,870
Training Sessions Held
30
53
600
626
Clients Served Total Client Hours
Training Attendance
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 notary services for DBA filings, and we maintain an online portal creating DBA forms at www. assumednames.org.
Collaborations The SBDC makes every effort to coordinate and collaborate with other organizations involved in economic development. In 2013 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
SBDC ANNUAL REPORT 2013
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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.