Individuals interested in starting a small business in the area got many helpful hints from the Small Business Administration during a workshop in Sidney Thursday night.
“This is one effort to keep creative juices going to improve the economy of our area,” Leslie Messer, executive director of Richland Economic Development, said at the meeting.
Organizing the event were Richland Economic Development, the Sidney Area Chamber of Commerce and Agriculture, the Eastern Plains RC & D, Great Northern Development and the Small Business Administration.
Messer said financial assistance to small businesses from Richland Economic Development might come from the organization’s revolving loan fund. “That is going to be launched probably in a month, month and a half,” Messer said. “We’re very excited about this. We’ve already had people come in thinking about the loan.”
John Klaman of the Small Business Administration provided the following suggestions before starting a small business:
Research your idea and self-evaluation. Does your idea sound good to others? Does it fit a need?
Selecting a name. Your name projects an image. Use your own name as part of the name if applicable.
Researching your market. You have to know or determine if there is a market. Know your competition.
It’s vital to have a good attorney and accountant.
Record keeping. All businesses need a daily bookkeeping system.
Prepare a business plan. It forces you to think through aspects in starting and operating a business. “If you’re going to get money from a lender, a business plan must be done,” Klaman said.
Marketing. Discuss the products and services your company will offer. Identify customers’ demand for your products and services.
Financial management. What is the source and amount of your equity capital? Prepare a monthly cash flow for the first year of operation.
The Cs of Credit. Character, controls, critical employees, capital, collateral, capacity and conditions.
Fitting the loan to the need. Short-term debt, intermediate debt, long-term debt.
Packaging of a loan. Business plan; articles of incorporation, partnership agreement; licenses, permits and registrations; lease agreements; if you have other loans, list the collateral and repayment terms; how will you reach your goals.
editor@sidneyherald.com
Comments