SBDCMichigan.org

Michigan Small Business

Development Center

SBDCMichigan.org

WHO ARE WE?

• Michigan’s most comprehensive small business assistance program

• Funded through three sources:

– Small Business Administration (SBA)

– Michigan Economic Development Corp. (MEDC)

– Local network of partners in universities, colleges and economic development offices

SBDCMichigan.org

WHAT DOES THE MI-SBDC DO?

THE MI-SBDC IS:

– Client centered

– Efficient (triage system)

– Collaborative

– Focused on economic impact• Jobs – created and retained

• Sales

• Capital – loans, owner investment, outside investment

• New business starts

SBDCMichigan.org

WHERE ARE WE LOCATED?

• State HQ

– GVSU: Grand Rapids

• West Michigan Region– Kent

– Ottawa

– Muskegon

– Allegan

– Ionia

– Barry

– Mason

– Lake

– Osceola

– Newaygo

– Mecosta

– Montcalm

• Satellite Offices– GVSU Holland Campus

– GVSU MAREC-Muskegon

– Grand Haven Chamber

– Allendale office

SBDCMichigan.org

OUR TEAM

• Regional Consultants

– Lead consultants – maintain ongoing relationship

– Core services – deliver or build team for client needs

• Growth Group

– Well established / 2nd stage business specialists

• Manufacturing Assistance Team

– Manufacturing finance and diversification specialists

• Technology Team

– Innovative technology-based business specialists

SBDCMichigan.org

OUR TEAM

• Regional Consultants

– Dante Villarreal, Region 7 Director

– David Sayers, Senior Business Consultant

– Brooks Kindel, Business Growth Specialist

– Jeanne Ferro, Business Consultant

– Joe Walker, Business Consultant

SBDCMichigan.org

WHAT ARE OUR CORE SERVICES?

BUSINESS COUNSELING/COACHING – no cost/confidential

SECONDARY MARKET RESEARCH– low or no cost

BUSINESS EDUCATION– low or no cost

Counseling ▪ Training ▪ Market Research

SBDCMichigan.org

WHAT KEY THINGS DOES A BUSINESS CONSULTANT ASSIST A CLIENT WITH?

Counseling ▪ Training ▪ Market Research

• Business Plan Development

• Financial Analysis

• Capital Access Planning

• Cash Flow Management

• Strategic Planning

• New Market Development / Diversification

CORE SERVICES: COUNSELING

SBDCMichigan.org

• Analyze data from financial statements for past 3-5 years:

• Breakeven

• Profits: Gross, Operating and Net

• Working Capital, Inventory and Accounts Receivable

• Asset Turnover, Return on Assets

• Cash Flow, Interest and Debt Service Coverage

• Benchmark company against industry financial ratios

• Identify performance opportunities - “What If” and scenario building

Goal: Assess company’s financial health and increase understanding of

opportunities to improve financial position

CORE SERVICES: COUNSELING

HOW DO WE ASSIST A BUSINESS IN THE AREA OF FINANCIAL

ANALYSIS?

SBDCMichigan.org

CORE SERVICES: COUNSELING

• Assess capital and cash flow needs

• Assist with development of a business plan, financial forecast, loan proposal, and lender presentation

• Educate clients on financial ratios and lending criteria used by financial institutions

• Connect the business owner with appropriate funding sources

• Post-funding consulting to maximize success and promote an ongoing strong relationship with the bank or other funding source

WHAT IS THE ROLE OF A CONSULTANT RELATED TO ACCESSING

CAPITAL?

SBDCMichigan.org

CORE SERVICES: MARKET RESEARCH

• No Cost

• Counselors support clients with market, industry and competitive information

• Available from two dedicated research gathering centers at:

– Seidman College of Business at GVSU

– University of Texas San Antonio

HOW IS MARKET RESEARCH OBTAINED?

SBDCMichigan.org

CORE SERVICES: MARKET RESEARCH

• Provides secondary data including, but not limited to:– Industry Overview and Trends

– List of Competitors

– Demographics

– Psychographics

– List of Competitors

– D&B Reports

– RMA/Ratio

– Best Customer Profile

– Sample Business Plans

TYPES OF DATA

SBDCMichigan.org

D&B

27.41%

J.J. Hillsearch

24.35%Scan US

14.53%

Other

13.22%

Internet

9.66%

Ratios

6.38%

Lifestyles

4.16%

BizComps

0.29%Dun & Bradstreet 653

J.J. Hillsearch 580

Scan US 346

Other 315

Online Research 230

RMA Ratio Comparisons 152

Lifestyles Market Analyst 099

BizComps 007

CORE SERVICES: MARKET RESEARCH

Data from 2009

WHAT ARE OUR SOURCES OF DATA?

SBDCMichigan.org

CORE SERVICES: TRAINING

• Training programs serve as an efficient method of increasing entrepreneurial skills prior to or in conjunction with counseling

• No to Low Cost Programs are offered for all stages of business development

– Start up (< two years)

– Emerging (< five years, < 10 employees)

– Established / 2nd Stage (>10 employees / $1million in sales)

WHAT BUSINESS EDUCATION IS PROVIDED?

SBDCMichigan.org

CORE SERVICES: TRAINING

Start-up and Emerging Businesses may do half-day Entrepreneurial Series Programs

– Pre-Business Orientation

– Fundamentals of Starting a Business

– Fundamentals of Writing a Business Plan

– Fundamentals of Marketing Your Business

– Fundamentals of Finance

– Fundamentals of Business Legal Issues

WHAT TRAINING IS AVAILABLE FOR EARLY STAGE

BUSINESSES?

SBDCMichigan.org

CORE SERVICES: TRAINING

We also offer the Venture Plan Online program for start-ups

– Developed and provided through the MI-SBDC and the Start, Run, Grow curriculum

– An in depth, 8-week, online certified facilitator-led program

– Supported by ongoing and follow-up MI-SBDC counsel for participants

– Goal: A strong business plan

VENTURE PLAN ONLINE PROGRAM

SBDCMichigan.org

ADVANCED TOOLS: TRAINING

Advanced training programs target businesses with >10 employees or >2 years history

– Venture Plan Online Program

– Know Your Numbers – 5 Keys to Using Financial Statements

– PeerSpectives “CEO Roundtables”

– Retail Survival Guide

– The Successful Contractor

WHAT ABOUT TRAINING FOR ESTABLISHED / 2ND STAGE

BUSINESSES?

SBDCMichigan.org

• Strategic Needs Assessment• Financial Analysis• Capital Needs• Organizational Development ************************************************************************

• Strategic Actioning• Marketing Edge• Process Improvement• Capital Access• Internal Management Tools************************************************************************

• Monitor and Analyze Metrics• Implementation Accountability• Quarterly Variance Analysis • Leadership Coaching

Step 1: Assess and strengthen company

Step 2: Assess future growth opportunities

Step 3: Implement growth plan & monitor

Counseling ▪ Training ▪ Market Research

ADVANCED TOOLS: SPECIALTY TEAMS

WHAT TOOLS ARE USED TO ASSIST THE BUSINESS OWNER?

SBDCMichigan.org

ADVANCED TOOLS: SPECIALTY TEAMS

Technology Company Definition:

A business in which research and development brings forth an innovative product or process. The innovation typically involves intellectual property that contributes to a strong competitive advantage in the marketplace, and serves as a foundation for a high rate of growth.

Key Services that Specialists Provide Include:

• Intellectual Property Guidance

• SBIR/STTR Assistance

• Preparation for Angel/Venture Capital Pitch Presentation

• Commercialization Planning via Technology Roadmapping

• Management Team Assistance

• Strategic Alliance Building

• Marketing

TECHNOLOGY ASSISTANCE

SBDCMichigan.org

REFERRAL PROCESS

A client contacts the MI-SBDC office either by phone, electronically, or walk-in and is triaged based on their needs:

• Phone: Client phones the center directly or a Partner phones our office to refer the client to MI-SBDC for services and support. Our Intake Consultant will provide support which may include referring the client to a training or to the appropriate staff member for additional support

• Electronically: Client completes our online counseling request form. Our Intake Consultant will follow-up via email and/or phone to inform them of next steps and begin the intake process

• Walk-in: Client makes an unscheduled visit to the office at which time the program assistant provides the client with program information and begins the registration process

HOW DOES A CLIENT ENGAGE THE MI-SBDC?

SBDCMichigan.org

QUESTIONS ?