Small Business Development Centers Provide Expert Consulting to Entrepreneurs
One of the best and most cost effective resources for small business owners is the Small Business Development Center Network. I was introduced to the SBDC by clients who had worked with SBDC staff to craft their first strategic plan. The clients invited me to a follow up session they were having with their SBDC consultants to review how their actual progress over the past year compared to their original plan, and to make revisions for the future accordingly.
As a result of this experience I felt it was important to include the SBDC as a resource in The Complete Idiot’s Guide to Low-Cost Startups. In order to provide a more in-depth look at this organization, I recently interviewed Sharon Macaluso, the Area Director for the Dekalb County SBDC in Georgia.
GMR: I understand that the SBDC is a “joint program” of SBA and the State University Systems of individual states across the country. Your website uses the term Network in its description of the Georgia SBDC. How do you explain exactly what the SBDC is?
SM: The Small Business Development Center Network is a nationwide program. One-third of the funding comes from the SBA (US Small Business Administration) with the remaining two-thirds provided by State Universities on a state by state basis. There are centers in all 50 states. Each state creates a separate structure with its own mission and goals.
In the early days (the 1990s) SBDC consultants would meet with anyone who had an idea for a startup. Today the Georgia SBDC network has developed a protocol that focuses its one-on-one activities with existing small businesses throughout the state. We also put a great deal of effort into a wide range of classes that are open to anyone who wants to participate. This is reflected in the Georgia network’s mission statement….
“To enhance the economic well-being of Georgians by providing a wide range of educational services for small business owners and aspiring entrepreneurs.”
GMR: What can a prospective client expect from a relationship with the SBDC?
SM: We provide hopeful entrepreneurs, solo-preneurs and micro businesses with a series of seminars that we hold at our offices throughout the year. Anyone can attend these professionally taught seminars. We charge a low fee (typically in the $59 range) to cover our costs.
The efforts of our consultants are focused on emerging and existing companies with revenues in the $500,000 to $15,000,000 range. We work with the owners to develop a solid business plan as a first step. But with our goal of “increasing Georgia commerce and creating jobs” we realized that we had to go beyond the planning stage to actual hands on assistance with implementation of the business plan strategies.
Too many companies will invest sizeable sums in hiring outside consultants to help them write a plan. Then the consultant moves on to his or her next client, leaving the owners on their own to implement the plan. Often strategic planning remains just a vision that no one makes the time to execute. This is where the SBDC has really invested our energies over the last 5 years. We go back to the company two weeks after the planning session and see what they have managed to implement on their own. Then we stay the course with them to make sure they turn the plan ideas into real tactics that get the company to the next level.
GMR: The SBDC’s January 2010 Newsletter states that SBDC clients actually experienced 15% sales growth in 2009 when other Georgia businesses (and those across the country) saw revenue declines. To what do you attribute this remarkable success?
SM: Each of the consultants in Georgia has a specialty area that we are required to maintain and for which we are continually expanding our skill set. For example, my area of expertise is in Marketing, which complements my graduate studies (Sharon received a Masters in Marketing from Kennesaw State University). Although we work for a specific office within a certain region of the state, our consultants call upon each other as a resource to come in and work with a client in certain strategic area if they feel our expertise can help them achieve specific goals in the business plan.
GMR: How do you publicize the SBDC?
SM: About 80% of our one-on-one consulting clients come to us through referral sources. These include referrals from other clients, local Business Associations, Chambers of Commerce around the state, Congressional offices and of course through our Website.
GMR: What criteria do you use to determine if a prospective business is eligible for your services?
SM: In order to qualify for one-on-one consulting, prospects must have a well established company with 15-20 employees. This typically translates into $3,000,000 in gross revenue each year. If the business meets these criteria we may suggest that they attend our Entrepreneur Success Series (ESS). This program uses the Fast Trac Program created by the Marion Kauffman Foundation. It was created for companies that have $200,000 to $14,000,000 in revenue. The participants must have employees and complete an application to be accepted into this program. The Georgia SBDC has the exclusive rights to present this program in our state. This program, underwritten by Georgia Power, helps owners to work “On” not “In” their business. Once a participant completes this series we decide if they have the commitment required to benefit from one-on-one coaching.
GMR: Do you only serve people in your geographic area? Do you cross refer to other SBDC locations depending on the prospects location?
SM: A prospect may choose which location in the Georgia network of SBDCs they would like to work with. Sometimes the choice is made purely on a geographical convenience basis. Other times the prospect may have a particular area they might want to focus on. For example, I have clients outside my Dekalb County area that choose to work with me because they need to focus on their marketing strategy.
GMR: Is the Dekalb office (and each SBDC site) specifically affiliated with one or more GA universities?
SM: Yes. For example, our Dekalb office is directly aligned with the University of Georgia in Athens, GA while Kennesaw State University has an SBDC office to which it dedicates its resources.
GMR: The SBDC website has a specific area dedicated to Commercialization. Is this an academic term for what laypeople would call –business consulting services? I see that in encompasses business plans, marketing, and capitalization – can you break this down for me in simple terms?
SM: This is a new focus for the Georgia SBDC – the emphasis here is on business expansion. The goal is to help existing businesses get their new ideas and products to market. One way we help these clients is by facilitating equity forums (think a kinder, gentler “Shark Tank”) where they have the opportunity to seek prospective capital sources.
Another example would be helping a company that is on the verge of expanding its customer base to larger players in their market. An example would be a newly patented product company experiencing rapid growth might be a target client for our new Commercialization division.
GMR: You’ve been with the SBDC since 1994. What is it about your work that has held your interest all these years?
SM: My motivation comes from the fact that I am constantly learning new concepts and tools for helping clients. My work is varied, full of experiences with many different kinds of businesses. It is never boring.
GMR: Is there anything else you would like to add?
SM: The Dekalb SBDC is the organizer of an Annual Professional Women’s Luncheon and Trade show which is being held at Villa Christina in Atlanta on June 4th 2010. This event is designed to give women entrepreneurs an opportunity to showcase and sell their products and services, network, and learn from experts on topics of interest to today’s professional woman.
Do you have an experience with an SBDC in your area? I welcome comments and stories from those small business owners who have.
May I know does SBDC provides business development plan services for any type of business?And what are the strategies that they use?