Small Business resource guide SAN FRANCISCO EDITION 2020
START GROW EXPAND YOUR BUSINESS
San Francisco Edition 2020
Local Business Assistance 8 National Success Story Jerado and Joyce Reynolds know their local landscape for entrepreneurship support. 11 Local SBA Resource Partners 13 Your Advocates 14 How to Start a Business 17 Entrepreneurial Resources 18 Workforce Recruitment 20 Opportunities for Veterans 22 Write Your Business Plan 25 Cybersecurity Essentials for Small Businesses
26 National Success Story Jennifer and Jeff Herbert’s
meadery has expanded into a multimillion dollar enterprise thanks to SBA assistance.
29 SBA Lenders 33 Need Financing? 34 Go Global with
International Trade 36 R&D Opportunities for High Growth Startups 38 National Success Story
Cheeseburger Baby owner Stephanie Vitori persevered through a financial storm and a natural disaster.
42 Surety Bonds
44 National Success Story Jennifer Rahn steers the course for Admiral Engineering, succeeding as a small business subcontractor. 48 SBA Certification Programs 49 Woman-Owned Small Business Certification
ON THE COVER Cheesemaker Adilene Reyes of Point Reyes Farmstead Cheese, courtesy of Point Reyes Farmstead Cheese; Stephanie Vitori, courtesy of the SBA; Nona Lim, courtesy of Nona Lim; Nikolas Williams, courtesy of Workshops for Warriors
U.S. SMALL BUSINESS ADMINISTRATION A MESSAGE FROM THE ADMINISTRATOR
I t is my honor to serve as Administrator of the U.S. Small Business Administration, leading a dedicated team of talented individuals across America who are focused on helping entrepreneurs start, grow, and expand their small businesses. The SBA is here to support the prosperity and longevity of our nation’s small businesses with timely and innovative resources to help them thrive in today’s economy. America’s entrepreneurs are innovators, risk-takers, and the catalyst for employment opportunities within their communities, and they are what makes our economy so strong and dynamic. As we enter a new decade of possibilities, small businesses have a remarkable opportunity to continue building upon the success we’ve seen in our economy over the last three years. As the voice for America’s 30 million small businesses, I am eager to advocate on entrepreneurs’ behalf as a member of the President’s Cabinet. Whether it’s seeking access to capital, government contracting opportunities, business mentoring, or assistance with disaster recovery, the SBA is ready and determined to help our customers succeed. The SBA remains committed to continuing our support of America’s entrepreneurs and making an even bigger impact in communities across the country. In particular, the SBA is focused on elevating female entrepreneurs and our military veterans, expanding access to SBA resources
among entrepreneurs in disadvantaged communities, and continuing to prioritize disaster relief. Within this resource guide, you will learn more about the tremendous tools the SBA provides small businesses through our 68 District Offices and numerous Resource Partners, such as our Small Business Development Centers, our SCORE mentoring network, Women’s Business Centers, and Veterans Business Outreach Centers. Featured in this guide are some of the remarkable success stories of entrepreneurs who partnered with the SBA to take their businesses to the next level. The SBA encourages you to also utilize these resources to help strengthen and meet your business goals. Sincerely,
Jovita Carranza SBA Administrator
WE MAKE SMALL BUSINESS OUR BUSINESS. START • GROW • EXPAND • RECOVER
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Copyright: New South Media, Inc. Reproduction in part or whole is strictly prohib- ited without the express written permission of the publisher. © 2020 NEW SOUTH MEDIA, INC., ALL RIGHTS RESERVED The U.S. Small Business Administration’s Office of Marketing & Customer Service directs the publication of the Small Business Resource Guide under SBA Contract #SBAHQ-17-C-0018. SBA publication winter 2020 national edition #mcs-0134
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The SBA’s participation in this publication is not an endorsement of the views, opinions, products or services of the contractor or any advertiser or other participant appearing here. All SBA programs and services are extended to the public on a nondis- criminatory basis. Directory listings do not constitute or imply an endorsement by the SBA of any opinions, products, or services of any private individual or entity.
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SBA San Francisco District Office Serving Alameda, Contra Costa, Del Norte, Humboldt, Lake, Marin, Mendocino, Napa, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano, and Sonoma counties
455 Market St., suite 600 San Francisco, CA 94105 (415) 744-6820 email@example.com sba.gov/ca/sf @SBA_SF
District Director Letter W elcome to the 2020 edition of the U.S. Small Business American dream of small business ownership a reality. We are the only federal agency dedicated to helping small businesses start, grow, expand, or recover after a disaster. With an extensive network of business advisers, lenders, and other resource partners, we help California’s small businesses at every stage of development. If owning your own business has been your lifelong dream or a new opportunity has emerged, we know the many obstacles that entrepreneurs face. We salute your courage and creativity. Remember, everyone starts small with an idea. Across northern coastal California in the last year, we empowered the local small business community to: • Find an ally, advocate or mentor via our SBA Resource Partners in 26 locations across northern California, including SCORE mentors, Small Business Development Centers, Women’s Business Centers, and the Veterans Business Outreach Center. Administration’s Northern Coastal California Small Business Resource Guide. Our San Francisco-based office helps make the • Access $1 billion in SBA-guaranteed loans using local lenders. The 1,500 local businesses that qualified for SBA assistance have hired new employees, bought needed equipment, and built or renovated facilities. • Gain more than $1.1 billion in federal small business contracting awards. • Rebuild after devastating wildfires destroyed thousands of homes and businesses in northern California.
District Director Julie Clowes (415) 744-8474 firstname.lastname@example.org Deputy District Director Carlos Gutierrez (415) 744-8475 email@example.com Lead Lender Relations Specialist Marlow Schindler (415) 744-6771 marlow.schindler@ sba.gov Economic Development Specialist/ Administrative Officer Emily Navarra-Refugio (415) 744-6805 firstname.lastname@example.org Economic Development Specialist Noah Brod (415) 744-4244 email@example.com Business Opportunity Specialist Mark McComas (415) 744-6807 firstname.lastname@example.org
Program Support Assistants
Lalotoga Asoau (415) 744-9060 email@example.com Ginny De Shu (415) 744-8484 firstname.lastname@example.org Julie Yim (415) 744-6808 email@example.com District Counsels Eric Adams (415) 744-8440 firstname.lastname@example.org Christina Goebelsmann (415) 744-8494 christina.goebelsmann@ sba.gov
Regional Export Finance Manager Jeff Deiss (415) 902-6027 email@example.com
We know you have passion and talent for what you do, and this Small Business Resource Guide powers your dream of starting, growing or expanding your small business here in California.
Julie Clowes District Director
LOCAL BUSINESS ASSISTANCE
Diana Hagan, Lynn Stray & Jill Basch Owners, Point Reyes Farmstead Cheese Co. Petaluma, CA How We Did It
Cheesemaker Adilene Reyes
LOCAL BUSINESS ASSISTANCE
E ven after nearly 100 years of dairy farming on the northern California coastline, the Giacomini family is still keeping up with a changing marketplace. Diana Hagan, Lynn Stray, and Jill Basch are carrying on their family tradition with the help of the SBA. Using an SBA-backed loan, Point Reyes Farmstead expanded as an environmentally sustainable artisan creamery in Petaluma, CA. Challenge Access to capital is a big challenge when you have a small business. Our business grew tremendously over the last few years, and we found ourselves in need of a larger building to accommodate production, storage, and distribution. Even though demand was there and we were gaining loyal customers, we couldn’t find a traditional lender offering reasonable rates and terms. We grew up on the farm so we had the passion and the family support, but all of us had moved away to start other careers; we all had professional lives before pursuing our entrepreneurial dream together. We needed a lender to work with us as first-time business owners. When we took over after our father, we also set out in a new direction. That was not an easy decision to make because it would mean moving cheese production off the farm and into a facility. Solution After a significant amount of soul searching and getting the buy-in from our employees, we took our small business to the next level. We qualified for an SBA-backed 504 Certified Development Company loan from Capital Access Group. The SBA guarantees loans made by lending institutions to small business that cannot find financing elsewhere. Our SBA-backed loan allowed us to construct a $7.8 million creamery with a long-term, fixed- rate mortgage. Our new 20,000-square-foot facility gives us the room to manufacture large batches of our new flagship Toma-style cheese and age pasteurized cheeses. Benefit We employ 85 in the creamery, on the farm, and at the culinary event center. With our immediate and future growth plans in place, we've stepped up as women business leaders. North Bay agriculture, including our specialty cheeses, is appearing on tables around the world, and we couldn’t have gotten there without the SBA.
North Bay agriculture, including our specialty cheeses, is appearing on tables around the world, and we couldn’t have gotten there without the SBA.” Diana Hagan, Lynn Stray & Jill Basch Point Reyes Farmstead Cheese Co.
L-R, Jill Giacomini Basch, Lynn Giacomini Stray, and Diana Giacomini Hagan
LOCAL BUSINESS ASSISTANCE
No matter your industry, location, or experience, if you have a dream, the SBA is here to help you achieve it. Our SBA Resource Partners offer mentoring, counseling, and training to help you startup and thrive at all stages of the business life cycle. These independent organizations operating across the United States and U.S. territories are funded through SBA cooperative agreements or grants. SBA Resource Partners
SMALL BUSINESS DEVELOPMENT CENTERS
950 Small Business Development Centers + 20 Veterans Business Outreach Centers + 100 Women’s Business Centers + 300 SCORE chapters +
Achieve your dream of business ownership and remain competitive in an ever-changing global economy with assistance from your local SBDC. Access free counseling and free or low- cost training on topics like regulatory compliance, technology development, and international trade. Find an SBDC adviser at sba.gov/sbdc .
Join the ranks of other business owners who have experienced higher revenues and increased growth thanks to SCORE, the nation’s largest network of volunteer business mentors. Experienced executives share real-world knowledge to fit your busy schedule. SCOREmentors are available for free as often as you need, in person, via email or over video chat. Find amentor at sba.gov/score .
WOMEN’S BUSINESS CENTERS
Women entrepreneurs receive essential business counseling and training from this national network of community-based centers. Each center tailors its services to help you navigate the challenges women often face when starting or growing a business. To learn about SBA resources for women visit sba.gov/women .
VETERANS BUSINESS OUTREACH CENTERS
Veteran and military entrepreneurs receive business training, counseling, and referrals to other SBA Resource Partners at a Veterans Business Outreach Center, sba.gov/vboc . Receive procurement guidance to better compete for government contracts. VBOCs also serve active duty service members, National Guard or Reserve members, veterans of any era, and military spouses.
LOCAL BUSINESS ASSISTANCE
SBA’s Resource Partners are independent organizations funded through SBA cooperative agreements or grants. Our Local SBA Resource Partners Small Business Development Centers Alameda County (510) 516-4118 acsbdc.org Contra Costa County (925) 222-5228 Santa Cruz County (831) 479-6136 santacruz sbdc.org Solano County (707) 646-1071 solanosbdc.org Sonoma County (707) 595-0060
Women’s Business Centers AnewAmerica Fruitvale Serving East Bay (510) 532-5240 anewamerica.org AnewAmerica San Jose Serving South Bay (408) 326-2669 anewamerica.org Renaissance Entrepreneurship Center
napasonomasbdc.org Tech Futures Group Serving high growth/high tech companies on an application basis (415) 494-7232 techfuturesgroup.org SCORE Visit sba.gov/score to start working on your business goals. Contact your local office to schedule an appointment. East Bay Serving Alameda, Contra Costa, and Solano counties with offices in Oakland (510) 273-6611 eastbay.score.org North Coast Serving Sonoma, Napa, Mendocino, Lake, and Humboldt counties with offices in Santa Rosa (707) 571-8342 northcoast.score.org Santa Cruz Serving Santa Cruz and Monterey Counties with offices in Santa Cruz (831) 621-3735 santacruz.score.org Silicon Valley Serving Santa Clara County with offices in San Jose (408) 453-6237 siliconvalley.score.org San Francisco Serving San Francisco, San Mateo, and Marin counties with offices in San Francisco (415) 764-4964 sanfrancisco.score.org
Serving San Francisco and surrounding bay areas with offices in Bayview, Soma, mid- peninsula, and Richmond (415) 541-8580 rencenter.org West Business Development Center Serving Mendocino County with offices in Ukiah and Fort Bragg (707) 964-7571 westcenter.org Veterans Business Outreach Center (916) 527-8400 vbocix.org Export Assistance SBA Export Finance Manager Jeff Deiss 75 Hawthorne St., suite 2500 San Francisco firstname.lastname@example.org (415) 902-6027 U.S. Department of Commerce (415) 705-2300
contracostasbdc.org Del Norte County (707) 464-2168 northcoastsbdc.org Humboldt County (707) 445-9720 northcoastsbdc.org
Lake County (707) 964-7571 mendosbdc.org Marin County
(415) 482-1819 marinsbdc.org Mendocino County (707) 964-7571 mendosbdc.org Napa County (707) 256-7250 napasonomasbdc.org San Francisco County (415) 937-7232 sfsbdc.org San Mateo County (650) 574-6402 sanmateosbdc.org Santa Clara County
This SBDC also hosts groups for Santa Clara’s Hispanic (se habla español) and Vietnamese communities. (408) 385-9800 svsbdc.org
LOCAL BUSINESS ASSISTANCE
Your Advocates The SBA offices of advocacy and ombudsman are independent voices for small business within the federal government.
To report how a proposed federal regulation could unfairly affect you, find your regional SBA advocate at sba.gov/advocacy . To submit a comment about how your business has been hurt by an existing regulation, visit sba.gov/ ombudsman/comments .
The SBA’s Office of Advocacy also independently represents small business and advances its concerns before Congress, the White House, federal agencies, federal courts, and state policy makers. Ombudsman Entrepreneurs who have an issue with an existing federal regulation or policy can receive assistance from the SBA’s national ombudsman. The ombudsman’s office can help you: » resolve regulatory disputes with federal agencies » reduce unfair penalties and fines » seek remedies when rules are inconsistently applied » recover payment for services done by government contractors
Advocacy When you need a voice within the federal government for your interests as a small business owner, the SBA’s regional advocates are here to assist. The advocates analyze the effects of proposed regulations and consider alternatives that minimize the economic burden on small businesses, governmental jurisdictions, and nonprofits. Find your regional advocate at sba.gov/advocacy . Your advocate helps with these small business issues: » if your business could be negatively affected by regulations proposed by the government » if you have contracting issues with a federal agency » when you need economic and small business statistics
Make your voice heard by participating in a Regional Regulatory Enforcement Fairness Roundtable or a public hearing hosted by the SBA’s national ombudsman. These events are posted periodically on the ombudsman website, sba.gov/ombudsman . To submit a comment or complaint through the online form, visit sba.gov/ ombudsman/comments . Your concerns will be directed to the appropriate federal agency for review. The SBA will collaborate with you and the agency to help resolve the issue.
LOCAL BUSINESS ASSISTANCE
Adriana Medina, owner of Fuerte Fitness, in Seattle, WA, received counseling from a SCORE mentor and a Women's Business Center adviser.
How to Start a Business in the Northern Coastal Area Thinking of starting a business? Here are the nuts & bolts.
The Startup Logistics Even if you’re running a home-based business, you will have to comply with many local, state, and federal regulations. Do not ignore regulatory details. You may avoid some red tape in the beginning, but your lack of compliance could become an obstacle as your business grows. Taking the time to research regulations is as important as knowing your market. Being out of compliance could leave you unprotected legally, lead to expensive penalties, and jeopardize your business.
Market Research View consumer and business data for your area using the Census Business Builder: Small Business Edition, https:// cbb.census.gov/sbe . Filter your search by business type and location to view data on your potential customers, including consumer spending, and a summary of existing businesses, available as a map and a report.
LOCAL BUSINESS ASSISTANCE
You can file W-2s online or verify job seekers through the Social Security Number Verification Service. Employment Eligibility Verification The Federal Immigration Reform and Control Act of 1986 requires employers to verify employment eligibility of new employees. The law obligates an employer to process Employment Eligibility Verification Form I-9. The U.S. Citizenship and Immigration Service offers information and assistance through uscis.gov/i-9- central . For forms, see uscis.gov/forms . For the employer hotline call (888) 464-4218 or email Iemail@example.com. E-Verify is the quickest way for employers to determine the employment eligibility of new hires by verifying the Social Security number and employment eligibility information reported on Form I-9. Visit e-verify.gov , call (888) 464-4218 or email firstname.lastname@example.org. Health & Safety All businesses with employees are required to comply with state and federal regulations regarding the protection of employees, visit employer.gov and dol.gov . The Occupational Safety and Health Administration provides information on the specific health and safety standards used by the U.S. Department of Labor. Call (800) 321-6742 or visit osha.gov . » Cal/OSHA dir.ca.gov/dosh Employee Insurance Check with your state laws to see if you are required to provide unemployment or workers’ compensation insurance for your employees. For health insurance options, call the Small Business Health Options Program at (800) 706-7893 or visit healthcare. gov/small-businesses/employers . Association Health Plans allow small businesses, including self-employed workers, to band together by geography or industry to obtain healthcare coverage as if they were a single large employer. For information, visit dol.gov/general/topic/ association-health-plans . » Covered California State assistance is available for small businesses that must comply with environmental regulations under the Clean Air Act. State Small Business Environmental Assistance programs provide free and confidential assistance to help small business owners understand and comply with environmental regulations and permitting requirements. These state programs can help businesses reduce emissions at the source, often reducing regulatory burden and saving you money. To learn more about these free services visit nationalsbeap.org/states/list . » Environmental Protection Agency Small Business Division epa.gov/resources-small-businesses » California Environmental Protection Agency calepa.ca.gov coveredca.com/forsmallbusiness/mandate Environmental Regulations
Business License & Zoning Licenses are typically administered by a variety of state and local departments. It is important to consider zoning regulations when choosing a site for your business. Contact the local business license office where you plan to locate your business. You may not be permitted to conduct business out of your home or engage in industrial activity in a retail district. Name Registration Register your business name with the county clerk where your business is located. If you’re a corporation, also register with the state. » California Secretary of State
1500 11th St. Sacramento (916) 653-6814 sos.ca.gov
Taxes As a business owner, you should know your federal tax
responsibilities and make some business decisions to comply with certain tax requirements. The IRS Small Business and Self- Employed Tax Center, irs.gov/businesses/small-businesses- self-employed , includes information on paying and filing income tax and finding an Employer ID Number. As the IRS continues to implement some of the Tax Cuts and Jobs Act provisions, your tax obligations may change. For the latest tax reform updates that affect your bottom line visit irs.gov/tax-reform . » IRS Tax Assistance Centers irs.gov/help > California Oakland 1301 Clay St.
(510) 907-5000 San Francisco 450 Golden Gate Ave. (415) 553-8990 San Jose 55 S. Market St., suite 100 (408) 283-1569 Santa Rosa 777 Sonoma Ave.
(707) 535-3859 Walnut Creek 185 Lennon Lane (925) 974-3898
» State Taxes California Tax Service Center taxes.ca.gov Social Security
If you have any employees, including officers of a corporation but not the sole proprietor or partners, you must make periodic payments, and/or file quarterly reports about payroll taxes and other mandatory deductions. You can contact the IRS or the Social Security Administration for information, assistance, and forms, at (800) 772-1213 or visit socialsecurity.gov/employer .
LOCAL BUSINESS ASSISTANCE
acf.hhs.gov/programs/css/employers . Send questions to email@example.com. » California Department of Child Support Services childsup.ca.gov Intellectual Property Patents, trademarks, and copyrights are types of intellectual property that serve to protect creations and innovations. For information and resources about U.S. patents and federally registered trademarks consult uspto.gov , call(800) 786-9199 or visit the Silicon Valley office in San Jose, California, uspto.gov/ siliconvalley . For inventor entrepreneur resources visit uspto.gov/inventors . • Utility patents may be granted to anyone who invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement. • Design patents may be granted to anyone who invents a new, original, and ornamental design for a manufactured article. • Plant patents may be granted to anyone who invents or discovers and asexually reproduces any distinct and new variety of plant, other than a tuber propagated plant or a plant found in an uncultivated state. A trademark or service mark includes any word, name, symbol, device, or any combination, used to identify and distinguish the goods/services of one provider from others. Trademarks and service marks can be registered at both the state and federal level. The U.S. Patent and Trademark Office only registers federal trademarks and service marks, which may conflict with and supersede state trademarks. Visit uspto.gov/trademarks . » State Trademarks California Secretary of State
1500 11th St. Sacramento (916) 653-6814 sos.ca.gov
HOW THE SBA HELPED ME SUCCEED Nona Lim started up her business in Oakland thanks to assistance from her SCORE mentor and the Renaissance Entrepreneurship Center, a Women’s Business Center. Nona received an SBA microloan fromWorking Solutions in order to grow her soup, broth, and noodle manufacturing and distribution business. Accessibility & ADA Compliance For assistance with the Americans with Disabilities Act, call the ADA center at (800) 949-4232 or the Department of Justice at (800) 514-0301. Direct questions about accessible design and the ADA standards to the U.S. Access Board at (800) 872-2253, TTY (800) 993-2822, firstname.lastname@example.org or visit access-board.gov . Child Support Employers are essential to the success of the child support program and collect 75% of support nationwide through payroll deductions. You’re required to report all new and rehired employees to the State Directory of New Hires. If you have employees in two or more states, you may register with the Department of Health and Human Services to report all your employees to one state. Find electronic income withholding orders and the Child Support Portal, which can be used to report information to nearly all child support agencies, at
Copyrights protect original works of authorship including literary, dramatic, musical and artistic, and certain other intellectual works, such as computer software. Copyrights do not protect facts, ideas, and systems, although they may protect the way they are expressed. For general information on copyrights, contact: » U.S. Copyright Office U.S. Library of Congress James Madison Memorial Building 101 Independence Ave. SE Washington, DC (202) 707-3000 or toll free (877) 476-0778 copyright.gov Economic Development California Governor’s Office of Business and Economic Development business.ca.gov
LOCAL BUSINESS ASSISTANCE
Regional Innovation Clusters Create jobs and grow the economy through an SBA Regional Innovation Cluster. Who should join Small businesses driving innovation in one of these tech industries: • advanced composites • agTech • bioscience • food processing • data sciences
Online Learning Find free short courses and learning tools to start and grow your small business at sba.gov/learning . The SBA’s free Online Learning Center is a great resource for every entrepreneur, especially rural business owners looking for easy access to vital business training. Courses include: • writing your business plan • understanding your customer • buying a business • marketing to win customers
• medical sciences • power and energy • unmanned aerial systems • water tech • wood products
• legal requirements • financing options • disaster recovery
How it works Each industry cluster is based in a geographic region. Your small business must be located in or near that region in order to join the cluster. For example, the AgLaunch Initiative cluster, which focuses on agricultural technology, is located in the Tennessee area. A small agTech business in or near Tennessee will connect with other agTech suppliers, service providers, and related institutions through that innovation cluster. How it benefits you Network with other industry innovators and connect with resources that will help your small business find funding. You’ll also receive guidance on how to better compete for government contracts and other opportunities for growth and expansion. Receive free technical and legal assistance to develop your tech and get it to market for government and industry buyers. Get involved Find an SBA Regional Innovation Cluster near you by visiting sba.gov/localassistance . Select the regional innovation clusters on the drop-down menu.
Native American Workshops Tribal enterprises and business organizations can receive entrepreneurial training at an SBA Entrepreneurial Empowerment Workshop. These workshops cover business concepts important for starting, growing, or expanding a small business. RedWind instructors identify and help participants avoid common pitfalls. Learn how to prepare a business plan, gain access to capital, and basic book keeping. Request a workshop in your area by visiting nativesmallbusiness.org .
LOCAL BUSINESS ASSISTANCE
Vocademy in Riverside, vocademy.com , trains underserved populations for vocational careers in manufacturing. Indiana Ruckus Makerspace in Indianapolis, ruckusindy.com , provides coaching and job placement complementing day-to-day job skills training. Massachusetts The Clubhouse-to-Career Pathways to Success program in Roxbury, flagshipclubhouse.org/c2c , places its participants in meaningful employment matching their skill sets. Missouri Rightfully Sewn in Kansas City, rightfullysewn.org , prepares at-risk women and underserved populations for entry level sewing positions, increasing their tailoring and production management skills. New Hampshire Monadnock Art x Tech Makerspace in Peterborough fills the need for qualified welders in construction and industry, visit monadnockartxtech.org . New Jersey New Jersey Institute of Technology Makerspace in Newark connects participants with entry level advanced manufacturing jobs, in addition to an apprenticeship program, visit njitmakerspace.com . New York The Foundry in Buffalo, thefoundrybuffalo.org , operates four makerspaces, metal and wood shops and tech and textile labs, in support of education and entrepreneurship. North Carolina Forge Greensboro connects untapped talent to employment opportunities through pre-apprenticeship programs and accreditation, visit forgegreensboro.org . Oklahoma Fab Lab Tulsa prepares participants with high-value skills to secure careers as operators and technicians in digital fabrication, visit fablabtulsa.org . Pennsylvania NextFab’s Furnishing a Future program in Philadelphia places trained carpenters, visit nextfab.com .
Workshops for Warriors welding student Nikolas Williams trains in the San Diego makerspace, which receives SBA funding for its welding and machining programs. Workshops for Warriors places program graduates into advanced manufacturing careers nationwide.
Workforce Recruitment Find qualified workers at these makerspace initiatives fund d by the SBA. If you are a small business employing skilled laborers, access a new talent pool for recruitment at your local makerspace. How it benefits you These community operated workspaces provide training and resources to better prepare workers for the jobmarket, offering job-specific and soft skills training. Connect with one of these organizations to see if thesemakerspace participants could work for your small business. California Workshops for Warriors, wfw.org , trains, certifies to national standards, and places veterans into advanced manufacturing careers nationwide.
LOCAL BUSINESS ASSISTANCE
HOW THE SBA HELPED ME SUCCEED U.S. Navy veteran Roberto Ortiz puts his 40 years of aviation management experience to use as a small business owner in Chesapeake, VA. Bert expanded AVMAC Inc. into the government sector fulfilling aviation and maritime logistical services with the help of his local SBA Veterans Business Outreach Center. VBOCs are the first stop for military community entrepreneurs looking to start, grow, or expand a small business. The VBOC located at Old Dominion University helped Bert obtain government contracting business certifications. With support from his local VBOC, Bert has strategically position AVMAC in the federal marketplace to better compete for large-scale government contracts. From AVMAC’s first contract in 2010, this veteran-led company has nearly doubled in revenue and grown to over 400 employees.
AVMAC President/CEO Bert Ortiz, left, and fellow U.S. Navy veteran and electrician Ken Morey manufacturing a power panel bracket.
Opportunities for Veterans
Military community members become more successful entrepreneurs with the help of the SBA.
Who’s eligible? Service members transitioning out of active duty and military spouses. Boots to Business: Reboot, for veterans, National Guard or Reserve members and military spouses, teaches this entrepreneurship curriculum off base in communities. Register for either B2B program at https://sbavets.force.com . For women veterans Receive entrepreneurial training geared toward women veterans, service
members, and spouses through these SBA- funded programs: » Veteran Women Igniting the Spirit of Entrepreneurship in Syracuse, New York
Entrepreneurship training In Boots to Business, explore business ownership and other self-employment opportunities while learning key business concepts. Walk away with an overview of entrepreneurship and applicable business ownership fundamentals, including how to access startup capital using SBA resources. Boots to Business is conducted on all military installations as part of the Department of Defense’s Transition Assistance Program.
» LiftFund in San Antonio, Texas For service-disabled veterans Learn how to start and grow a small
business using these SBA-funded programs: » Entrepreneurship Bootcamp for Veterans with Disabilities in Syracuse, New York
LOCAL BUSINESS ASSISTANCE
» Veterans Entrepreneurship Program at the Riata Center for Entrepreneurship, Spears School of Business, Oklahoma State University in Stillwater, Oklahoma » Veteran Entrepreneurship Jumpstart at St. Joseph’s University in Philadelphia, Pennsylvania » Dog Tag Inc., affiliated with Georgetown University in Washington, DC
Financing Employee called to active duty?
You can receive funds that enable your business to meet ordinary and necessary operating expenses when an essential employee is called up to active duty in the military reserve. Ask your local SBA specialist or lender about the Military Reservist Economic Injury Disaster Loan. Government contracting Veteran-owned and service-disabled veteran-owned small businesses that want to better compete in the public market receive training from the Veteran Institute for Procurement, nationalvip.org . VIP Start Enter the federal market and become ready for procurement. VIP Grow Strategize to expand and operate within the federal marketplace. VIP International Enter or expand your federal and commercial contracting opportunities overseas. Get certified Learn about the service-disabled veteran- owned small business certification program on page 49. Need assistance? Veteran and military entrepreneurs receive business training, counseling, and referrals to other SBA Resource Partners at a Veterans Business Outreach Center, sba.gov/vboc . For veterans business information visit sba.gov/veterans .
LOCAL BUSINESS ASSISTANCE
Write your Business Plan
Your business plan is the foundation of your business. Learn how to write a business plan with the help of an SBA Resource Partner. TRADITIONAL BUSINESS PLAN FORMAT
When you write your business plan, you don’t have to stick to the exact business plan template. Instead, use the sections that make the most sense for your business and your needs. Executive Summary Briefly summarize your company and why it will be successful. Include your mission statement, your product or service, and basic information about your company’s leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing. Company Description Go into detail about the problems your business solves. Be specific as to audience and location. List out the consumers, organizations, or businesses your company plans to serve. Explain the competitive advantages you have that will make your business successful. Are there experts on your team? Have you found the perfect location? Your company description is the place to boast about your strengths. Market Analysis Demonstrate a solid understanding of your industry outlook and tar- get market. This is where it pays to partner with an experienced busi- ness counselor fromyour local Small Business Development Center, SCORE, Women's Business Center, or Veterans Business Outreach Center—all these SBA Resource Partners provide free or low-cost business assistance. Competitive research will showwhat other busi- nesses are doing and their strengths. In your market research, look for trends and themes. What do successful competitors do? Why does it work? Can you do it better? Now's the time to answer these questions. Organization and Management
Business plans help you run your business. A good business plan guides you throughmanaging your business. You’ll use your business plan as a roadmap for how to structure, run, and grow your new business. Business plans can help you get funding or bring on new business partners. Investors want to see a return on their investment. Your business plan is the tool you’ll use to convince people that working with you—or investing in your company—is a smart investment. Brain storm with a business counselor (visit one of our SBA Resource Partners detailed on page 10) and write a traditional business plan , which uses a standard structure and detailed sections. Once you've got it all down, you can then condense it to a lean startup business plan, which typically contains key points on only one page.
Explain how your com- pany will be structured and who will run it. Describe the legal structure of your busi- ness. Statewhether you have or intend to incor- porate your business as a C or an S corporation, forma general or limited partnership, or if you're a sole proprietor or limited liability company.
Want to see an example of a business plan? View examples of business plans at sba.gov/business-guide/plan/ write-your-business- plan-template
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LEAN STARTUP PLAN FORMAT Write a lean startup plan if requested from an investor, or if your business is relatively simple or you plan to regularly change and refine as you go. Lean startup plans use more visual organization tools and only a handful of elements to describe your company’s value proposition, infrastructure, customers, and finances. They’re useful for visualiz- ing your company's fundamental facts. Your business counselor can help you edit down into the Business Model Canvas, used here—the most well known style, or another lean startup template. Key Partnerships Note the other businesses you’ll work with--suppliers, manufactur- ers, subcontractors, and similar strategic partners. Key Activities List the ways your business will gain a competitive advantage. Will you sell direct to consumers or use technology to tap into the sharing economy? Key Resources List resources you’ll leverage to create value for your customer. Your most important assets include staff, capital, or intellectual property. Leverage business resources that might be available to women, veterans, Native Americans, and HUBZone–certified businesses. Value Proposition Make a clear and compelling statement about the unique value your company brings to the market. Customer Relationships Describe how customers will interact with your business. Think through the customer experience from start to finish. Is it auto- mated or personal? In person or online? Customer Segments Name your target market. Your business won’t be for everybody; it’s important to have a clear sense of who you serve. Channels List the most important ways you’ll talk to your customers. Cost Structure Will your company focus on reducing cost or maximizing value? Define your strategy, then list the most significant costs you’ll face. Revenue Streams Explain how your company makes money: direct sales, member- ships fees, selling advertising space? If your company has multiple revenue streams, list them all.
Use an organizational chart to show the hierarchy. Explain how each person’s experience will contribute to the success of your venture. Consider including CVs of key members. Service or Product Line Describe what you sell or what service you offer. Explain how it ben- efits your customers and the product lifecycle. Share your plans for intellectual property, like copyright or patent filings. If you're doing research and development for your service or product, explain it. Marketing and Sales Your marketing strategy should evolve and change to fit your needs in each context. Describe how you'll attract and retain customers. Show how a sale will actually happen. You'll refer to this section later when you make financial projections, so be thorough. Funding Request If you're asking for funding, outline your funding requirements. Specify whether you want debt or equity and the terms you'd like. Your goal is to clearly explain how much funding you’ll need over the next five years and how the investment will be used. Specify if you need funds to buy equipment or materials, pay salaries, or cover specific bills until revenue increases. Explain how ❒ Executive summary ❒ Company description ❒Market analysis ❒ Organization and management ❒ Service or product line ❒Marketing and sales ❒ Funding request ❒ Financial projections ❒ Appendix TRADITIONAL BUSINESS PLAN CHECKLIST
you'll pay off the debt. Financial Projections
Supplement your funding request with a prospective financial outlook for the next five years. Show how your business will be a financial success. If your business is already established, include income state- ments, balance sheets, and cash flow statements for the last three to five years. List collateral you could put against a loan. Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, be even more specific and use quarterly—or even monthly —projections. Make sure to clearly explain your projections and match them to your funding requests. Use visual organization tools--graphs and charts—to tell your business's financial story. Appendix Here you'll attach supporting documents or other requested materials. Common items to include are credit histories, CVs, product pictures, letters of reference, licenses, permits, patents, legal documents, and other contracts.
LEAN STARTUP PLAN CHECKLIST
❒ Key partnerships ❒ Key activities ❒ Key resources ❒ Value proposition ❒ Customer relationships
❒ Customer segments ❒ Channels ❒ Cost structure ❒ Revenue streams
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You hear about cybersecurity constantly, here’s how it applies to you. Cybersecurity Essentials for Small Businesses
Malicious code and viruses are sent over the internet with the goals of finding and stealing your files; deleting critical data; or locking your computer or system. They hide in programs or documents and replicate themselves without your knowledge.
• CNN reports nearly half of the data breaches that Verizon recorded in 2012 took place in companies with fewer than 1,000 employees. • A Symantec report showed that 31% of all attacks in 2012 happened to businesses that had fewer than 250 employees. What are common cyber threats and crimes? There’s a broad range of information security threats. Some of the most common include website tampering, data theft, denial-of-service attacks, and malicious code and viruses. Website tampering can take many forms, including defacing your website, hacking your system, and compromising webpages to allow invisible code that will try to download spyware onto your device. Data theft can come in various forms, and the problems that come with it depend on what kind of data is stolen. Some examples include: • Theft of computer files • Theft of laptops, computers, and devices • Interception of emails • Identity theft A denial-of-service attack happens on a computer or website and locks the computer and/or crashes your system. This results in stopped or slowed workflow and prevents communication. The ultimate goal of this kind of attack is to prevent you from conducting business with your internetconnected systems.
What can I do to protect my business?
The first step in protecting your business’s information is establishing comprehensive, up-to-date security policies. Make sure your employees know and adhere to your policies and best practices for internet and email. Here are just a few to keep in mind: • Don’t respond to popup windows telling you to download drives. • Don’t allow websites to install software on your device. • Don’t reply to unsolicited emails. Use screen locks and shut off your computer at the end of the day. Ensure that your computer hardware and software are updated regularly on all devices throughout the company. Change passwords periodically and use firewalls to protect your systems. You should also consider backing up your data on a regular basis so that if anything is compromised, you have a copy. Want to learn more about how to help make your business more cyber secure? Check out “Cybersecurity for Small Businesses” in the sba.gov Learning Center, which features more tips and additional resources to help you along the way.
Cyber threats are an issue for everyone, and small businesses are targets for such threats and crimes because they often have fewer preventative or responsive resources. So, what do you need to know? What is cybersecurity? With the help of technology and best practices, cybersecurity is the effort to protect computers, programs, networks, and data from attack and damage. Why is cybersecurity so important? Consider all the information you have that needs to be secure: • Personal information for employees • Partner information • Sensitive information for customers/ clients • Financial and sensitive business information It’s essential to do your part to keep these details safe and out of the hands of those who could use your data to compromise you, your employees, and the foundation of your small business. Think it can’t happen to you?
written by Katie Murray , contributor
FUNDING PROGRAMS Financing Your Small Business
Crafting a Business SBA-backed financing helped Superstition Meadery expand into a multimillion dollar enterprise. written by Becky Bosshart How We Did It
Solution Thanks to guidance from an SBA Resource Partner, the Small Business Development Center at Yavapai Community College, Jennifer and Jeff learned about financing that worked for them. The SBA guarantees loans made by lending institutions to small business that would not otherwise be able to obtain financing. Their small business qualified for two SBA-backed loans totaling more than $600,000. The Herberts’ first SBA-backed loan allowed them to acquire commercial property to design and build their mead production facility. Their second SBA-backed loan provided the funding for professional brewing equipment to complete their 7,450-square-foot production space. The Herberts recently purchased a historic building in downtown Phoenix, Arizona to open a mead-pairing restaurant. Benefit The Herberts started with two employees and now have over 20 producing 29,000 gallons this year. From a homegrown setup, Jennifer and Jeff are now charting revenue in excess of $2.6 million and distributing to 37 states, across Europe and Southeast Asia. They have plans for another expansion, including a shipping warehouse to manage their online retail and wholesale orders.
ennifer and Jeff Herbert’s home-based brewing has expanded into a global, multimillion dollar enterprise thanks to SBA
assistance. Using Arizona honey and ingredients they’ve sourced from around the world (such as Tahitian vanilla and Moroccan saffron), the Herberts are selling nearly 30,000 gallons annually of their honey-based fermented beverage. They operate a downtown Prescott, Arizona tasting room and state-of-the-art production facility, creating jobs and building a local craft industry. The Herberts, founding members of the American Mead Makers Association, have traveled around the world hosting pairing events and pouring at craft beverage festivals. Challenge The Herberts wanted to scale up their meadery while also staying true to their values of quality ingredients and craft process. It is often difficult for new entrepreneurs or unique concepts like a meadery to get traditional financing, even though they knew they had a great idea, the backing wasn’t there to expand. They say that choosing to do something new breaks the mold, which can be uncomfortable for traditional lenders.
5 Tips for Success Get guidance. Develop a working relationship with an SBA Resource Partner (see page 10) to help you find the funding that works best for you. Define your lending needs. Determine if a loan is right for you. Is this the right time? How much do you need? What are you going to use it for? Talk to multiple lenders. See who best matches you and your business. Has the lender successfully worked with other businesses in your industry? Check all options. Consult with your lender to see if you’re eligible for SBA financing programs, determined by your industry & experience; collateral; credit score; and the relationship & transparency you develop with the lending agent.
Be ready for the ups and downs.
Your entrepreneurial endeavor will be a roller coaster ride filled with challenges and successes. The path is all consuming so make sure that you love what you do. Passion is the price of admission.
Jeff & Jennifer Herbert, owners of Superstition Meadery, completed their 7,450-square- foot production space and opened a tasting room in Prescott, AZ with the assistance of SBA-backed financing. See their story on YouTube by searching for the 2019 National Small Business Persons of the Year.
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