General Questions

Is there any business assistance available?

The SBDC provides a variety of management and technical assistance services to small businesses and potential entrepreneurs.

What business should I choose?

Usually, the best business for you is the one in which you are most skilled and interested. For example if you are trained as an auto mechanic, you may want to consider opening a shop related to auto repair. As you review your options, it is advisable to consult local expert business persons about the growth potential of various businesses in your area. Matching your background with the local market characteristics will increase your chance of success.

What do I need to succeed in the business?

There are four basic needs for success in small business:

Sound Management Practices
Industry Experience
Technical Support
Planning Ability

Few people start a business with all of these bases covered. Honestly assess your own experience and skills, and then look for partners like the SBDC or key employees to compensate for your challenging areas.

How do I get started in a business?

Small Business Development Center (SBDC) provides a wealth of information on starting a business. You will find information on writing a business plan as well. We provide free one-on-one counseling to those interested in starting and expanding a business. This includes critiquing your business plan, legal requirements, marketing, and licenses needed for your business. To set up an appointment with one of our counselor, please call or email us at

Fresno / Madera: (559) 230-4056
Visalia: (559) 625-3051
Email: info@ccsbdc.org

Business Planning

What is a business plan and why do I need one?

A good business plan is a crucial part of any loan package. A business plan precisely defines your business, identifies your goals and serves as your firm's résumé. Its basic components include a market study, marketing/promotional strategy, current balance sheet, and income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications and make the right decisions. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals.

How do I write a business plan?

If you go to the Starting A Business page and select “Business Plan,” you will find information on starting a business and writing a business plan. Our Small Business Development Center also provides workshops and FREE one-on-one counseling in the area of starting and expanding a small business. We can assist you by critiquing your business plan and your business ideas.

Financing

How much money do I need to get started?

One of the leading causes of business failure is insufficient start-up capital. Once you've taken care of your building and equipment needs, you must also have enough money on hand to cover operating expenses (see fixed and variable costs) for at least one year. These expenses include your salary, as the owner, and money to repay your loans. Consequently you should work closely with your SBDC to estimate your cash flow needs and writing a business plan which will provide you with accurate information on your needs for capital.

You should prepare a business plan, including your loan proposal, and submit it to a local lender. If the lender is unable to approve your loan, you may request that your application be submitted, by the lender, to the SBA. The SBA can guarantee up to 80% of a small business loan; however, the lender must agree to loaning the money with the SBA guarantee. The lender will then forward your loan application and a credit analysis to the nearest SBA District Office. If the lender needs SBA applications and/or guidance it may contact the nearest SBA District Office by going to SBA. Upon SBA approval, the lending institution closes the loan and disburses the funds.

What type of collateral do I need for a loan?

Repayment ability from the cash flow of the business is a primary consideration in the SBA loan decision process but good character, management capability, collateral, and owner's equity contribution are also important considerations. All owners of twenty percent (20%) or more of the business are required to personally guarantee SBA loans. The SBA does not deny approval for a SBA Guarantee Loan solely due to lack of collateral; however, it can be used as a reason in addition to other credit factors.

What are the alternatives in financing a business?

Committing your own funds is often the first financing step. It is certainly the best indicator of how serious you are about your business. Risking your own money gives confidence to others who may invest in your business. You may want to consider family members or a partner for additional financing. Banks are an obvious source of funds.

Other loan sources include commercial finance companies, venture-capital firms, and local development companies. Your SBDC can put you in touch with a wide variety of lending opportunities, help you evaluate their risk and opportunity, and work with you to prepare all necessary loan documents.

What should I know about accounting and bookkeeping?

The importance of keeping adequate records cannot be stressed too much. Without financial records you cannot determine how well your business is doing or where it is going. At a minimum, records are needed to substantiate:

Your tax returns under Federal and State laws, including income tax and Social Security laws
Your request for credit from vendors or a loan from a bank
Your claims about the business, should you wish to sell it

But most important, you need them to run your business successfully and to increase your profits.

What legal aspects do I need to consider?

Licenses, permits, zoning laws and other regulations vary from business-to-business and from state to state. You will need to consider requirements of the Americans with Disabilities Act in order to accommodate needs of your customers and your employees. Your local SBDC office can provide you with general information about acquiring a business license. You also must decide about your form of organization (corporation, partnership or sole proprietorship).

Marketing

What does a marketing strategy involve?

Marketing is your most important operational concern. There are four basic aspects of marketing, often called the “four P's”:

Product: a description of the item or service you provide
Price: what you charge for your product or service
Promotion: how you inform your market as to who, what and where you are
Place: the distribution channels you use to offer the product to the customer

Your understanding and application of the answers to such questions play a major role in the success or failure of your business. As you can see, marketing encompasses much more than just advertising or contact local selling. In addition, while writing a business plan, a market analysis needs to be done to help the business owner decide the feasibility of their product in the available market.

In addition, the major part of marketing involves researching your customers:

What do they want?
What can they afford?
What do they think?

Funded in part through a cooperative agreement with the U.S. Small Business Administration and the University of California, Merced. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. The Central California Small Business Development Center is funded in part through a subcontract between the California State University, Fresno Craig School of Business and the University of California, Merced under the current cooperative agreement with the U.S. Small Business Administration.