|
By Mona
Mesri
Entrepreneur Center
Partnership
between the U.S. Small Business Administration, Cisco Systems, the
City of San Jose, and a number of national corporations and non-profit
organizations provide entrepreneurs a full range of support services.
Small
Business
Some of the most appealing aspects to starting a small business
include the intimate work environment, the feeling of empowerment
that comes from being one's own boss, and the potential to be involved
in something completely new. In recent years more emphasis has been
placed on the economic contributions to society made by small businesses.
The Small Business Administration (SBA) estimates that small businesses
employ more than 58% of the workforce, generate more than 51% of
the nation's GDP and are the principle source of new jobs. Unfortunately,
small businesses are in some ways at a disadvantage because they
may lack internal resources that are available to larger companies
in areas such as financing and human resources. While large companies
can often raise money with little effort either by self-financing
or because they have many assets and are perceived as highly stable
by banks, small businesses must often look for alternative forms
of financing if they are cash strapped. Small businesses also rely
on having a few very business savvy and well-rounded employees to
run every aspect of the company, whereas larger businesses have
the means to hire dedicated staff for almost any function. SBA*Cisco
Systems*San Jose Entrepreneur Center In light of these obstacles
facing small businesses, the SBA partnered with Cisco Systems and
the city of San Jose to create an organization that would provide
small business owners and entrepreneurs in Silicon Valley with the
entire spectrum or support services needed to realize their business
dreams.
With
help from numerous private and non-profit organizations, the SBA*Cisco
Systems*San Jose Entrepreneur Center (e-Center) opened its doors
to the public in October, 2000. This unique center serves as a centralized
location for small businesses to obtain management advice, financial
assistance, technology education, and mentoring from successful
business executives in the community. The center has several full-time
on-site partners providing these services, including the Service
Corps of Retired Executives (SCORE), the Silicon Valley Small Business
Development Center (SBDC), and the Center for International Trade
(CITD).
Entrepreneur
Center Services
SCORE, the SBDC, and the CITD all provide free counseling to small
businesses, each focusing their efforts on respective target markets:
start-ups, established businesses, and clients interested in international
trade. Aspiring businesspeople can visit SCORE to receive aid in
developing their business plans, organizing their finances, creating
a marketing strategy and much more. The SBDC provides its consulting
services to established business owners who find the need to expand,
or find their businesses stagnating. Anyone currently involved in,
or interested in developing their business export potential can
utilize the resources of the CITD to learn about different business
cultures, how to import or export, or even participate in trade
missions to foreign countries. The eCenter also offers as many as
70 training courses per quarter, on a variety of topics, including
How to Start and Manage a Business, Preparing a Business Plan, Financing
Your Business, QuickBooks, Honing Your Presentation Skills, Marketing
Online, How to Buy the Right Business or Franchise, Fast Track PR
and Marketing, Developing Your Own Web Site and Getting Started
in E-Commerce. For more information on current seminars, please
visit www.acteva.com/go/ecenter. In addition, several training classes
are currently available in Spanish, and the center is currently
developing courses in other languages.
Access
to capital is one of the leading challenges entrepreneurs face.
The e-Center provides entrepreneurs with access to financing that
can help them start or grow their business through a variety of
lending organizations located on-site. Entrepreneur Center lending
programs range from micro loans to SBA backed commercial real estate
loans to a community-based venture capital group. Most lending programs
are targeted to the low-income business owners or otherwise disadvantaged
business community. For more information about eCenter lending programs,
please visit us at www.ecenteronline.org/financial_assit.asp
The
eCenter also houses two valuable resources for the public. The Business
Information Center (BIC) is a comprehensive reference library containing
books, sample business plans, magazines, videos and computers. Individuals
are invited to use the library to research marketing, business planning,
international trade, and more. Another valuable resource available
at the eCenter is the Cisco Internet Development Center (CIDC).
The
SBA and Cisco Systems jointly developed the CIDC as a self-paced
online training environment that teaches business owners how to
integrate technology into their companies. The courses can be applied
to businesses in any stage of technological integration, whether
the company has yet to be connected, or is interested in developing
its already existing B2B infrastructure. Some of the courses included
in the curriculum are Internet Economy, How the Internet Works,
and E-business Basics.
For
more information about eCenter services, please visit www.ecenteronline.org.
Starting Your Business / Business Plans
The Entrepreneur Centerââs clientele consists largely of individuals
interested in starting their own business. The eCenter staff believes
in the philosophy that the first step to starting a successful business
is creating a sound Business Plan. The Business Plan is considered
the blueprint for a business. It identifies why a business is unique,
and how it will succeed, above all others. A good business plan
will prepare a company for all of its developmental stages by requiring
the company to precisely define its markets, goals, and how to achieve
them. It is also one of the most important tools a business has
when attempting to raise capital. It provides a potential lender
or investor with a financial overview of the company, along with
an indication of how the company plans to run its business.
Structure
of Business Plan
A business plan begins with an Executive Summary. It previews all
of the ensuing elements of the plan: the Organization Plan, the
Market Plan and the Financial Plan. An investor will read the Executive
Summary, and decide if the rest of the plan is worth his time. Because
of its importance, the Summary should be clear, succinct and very
thoughtfully written. It must convince the reader that the business
has been well designed and will be profitable. The Executive Summary
is followed by the three analysis oriented components of the Business
Plan. The Organizational Plan is designed to provide an impression
of how well the business is structured by describing the business
itself, its operations and the management and organization. This
precedes the Market Plan, which proves to the investor that the
business provides a product or a service that is in demand, and
that the product will successfully reach those who need it. The
final segment is the Financial Plan. Once a company has convinced
an investor that it is structurally sound and has a superior product
and public need, it must demonstrate that its financial structure
is in order by showing detailed financial projections. Each of these
sections includes charts and other reference material that is found
at the end of the plan, in its Appendix.
Organizational Plan
An Organizational Plan will often open with a brief overview of
the business itself, including its history, the major products and
services it provides, and the company's strengths and weaknesses.
It continues by describing the physical operation of the business.
This includes the schedule of operation, the supplies and equipment
needed, and how it will organize its inventory. The bulk of the
Organizational Plan defines the legal and organizational structure
the business will have. It discusses the skills and the positions
that the management team hold, along with a review of the functions
that personnel must perform and the policies and compensation packages
available to them. It also discusses the professional resources
that are available to the company.
Market
Plan Ê
The Market Plan gives the business an opportunity to differentiate
its product from the competition. To do so, it begins with a study
of the industry the business is involved in, including any government
regulations that may affect it. It then goes into detail about its
location with respect to competitors and distribution channels.
It is then prepared to delve into details about all the products
and services the company provides, including information about pricing,
break-even points, and patents. The discussion about products is
not complete without an analysis of the companyÕs target market
and the companyÕs competitors. The Market Plan must detail the differences
between the companyÕs products and others on the market, And why
its products will sell, including how the company plans to advertise.
Financial
Plan
The Financial Plan provides the proof of profitability. To do so,
it should include monthly financial projections for the first year
and annual projections for the following two years. It should contain
an income statement, a balance sheet, and cash flow projection for
the business. All of the data should be analyzed using break-even
analysis and business ratios. Also, if a business is looking for
investors, the Financial Plan must include a precise description
of how the attained funds will be used. How the Entrepreneur Center
Can Help with Your Business Plan. The Entrepreneur Center has many
resources to help companies develop their business plans. The Business
Information Center possesses valuable research guides regarding
business plans, including numerous reference books and several volumes
of business plans in specific industries, such as consulting, retail,
food services, and technology. The BIC also has Business Planner
Pro and BizPlan software available on its computers. Both of the
programs guide an individual through the creation of his Business
Plan. The software prompts the user for information specific to
his company, and then organizes the data into a cohesive, structured
document. Once an individual has created a draft of his Business
Plan, he is encouraged to make an appointment with a SCORE counselor.
The volunteers in SCORE focus their efforts on helping entrepreneurs
establish their businesses. The SCORE counselors believe that a
well thought out business plan is the most vital component of a
successful venture. The volunteer spend many of their counseling
hours reviewing drafts of Business Plans and constructively aiding
individuals to improve their plans.
The Entrepreneur Center is open to any small business owner or entrepreneur,
and exists only to help small businesses like yours succeed. The
eCenter is located on 84 W. Santa Clara St., on the corner of Market
and Santa Clara in downtown San Jose. Its general operating hours
are from 9 am to 5 p.m., although many of the training classes are
held in the evening, after 6 p.m. For more information, please visit
www.ecenteronline.org
|
