Small Business: SCORE Volunteers
SCORE District Chapter Meeting
Volunteer and meet quality people helping your community.
For a change of pace, I’m providing info on our local SCORE activities. Ken Yancey, SCORE CEO, will be joining us for a regional meeting. This is one of many benefits associated with volunteering with SCORE; you get the chance to meet quality people helping your community.
The Virginia District Chapter Chairs, District Staff and volunteers are meeting in Richmond, VA at the Sheraton Richmond West Hotel on Thursday, November 12, 2009. More than forty (40) volunteers from SCORE Chapters throughout the District will be in attendance.
Mr. Ken Yancey, SCORE CEO, will personally take us through the new SCORE Business Model which will provide the framework for the strategies that will amplify our efforts to help new and existing businesses succeed in the future. A copy of the Agenda is attached for your reference.
I look forward to seeing you all at the meeting on Thursday. Thank you for all that you do for SCORE and the clients we serve.
Sincerely,
Alan Wonsowski, District Director
SCORE Virginia District
Let us know if you’re a Virginia volunteer planning to join us – thanks!
Add comment November 6, 2009
Finance: Is The Money Available?
Funding Your Business
In my continuing quest to receive input on whether the market has embraced the financing initiaitives that the SBA has created, it seems getting banks to participate is an on going challenge. I’ve attached a copy of correspondence between a reader of this blog and myself that validates the current “state of affairs.”
“Hi Steven I left a comment on your blog about the Arc loan program. It is one of few that even mention anything about it. I myself am disheartened about the whole program. I was very disappointed in what the Arc loan program has become. It was a great idea that is now in the hands of banks and has gone no where.
I myself have a small business for the last 8 years and I am ashamed and appalled that this great program wasn’t able to become a success story.
I have been selling my product to local businesses around the Country all this time. I like other small businesses around the Country are what made this great Country. So to see us small businesses overlooked like this is sad. Thanks for touching on this subject.
My other question is that I wanted to know how I would go about creating some sort of Union for Small Businesses. I feel there is no voice for us as a whole. We need to have our words heard.
Any thoughts or ideas would be greatly appreciated
And my response: “thanks for your e mail regarding the failure of ARC this year. I posted last week a comment to your frustration on the blog and can empathize. I currently work with a client for the past 4 months to close a 15k Community Express loan. She has great credit, been in business 3 years and still is being put through a “wringer.” This is not how the program should work.
Forming a small business group to provide direct feedback in theory is a good one, but there are a number of national organizations that purport to do the same. NFIB is the largest and there are at least a dozen more. The challenge is not having programs available, there are a few good ones on the books, it’s getting banks to cooperate. Congress and/or SBA can’t force them to participate. Truth be known, small loan origination, processing, closing and administration is not profitable to banks.
Good Luck and Success for the Future.”
Keep your cards and letters coming. 
Add comment November 4, 2009
Structure: Limited Liability Company
Is an LLC Right for You?
(This information is provided for guidance only.)
All 50 states and the District of Columbia now recognize this popular business type. Because of its simplicity, flexibility and pass through tax characteristics, it is becoming the preferred form of business entity for many small businesses.
This business structure has many advantages, including:
- Independent legal structure separate from its owners
- Helps to separate owners’ personal assets from their business debts
- No loss of power to a Board of Directors.
- Much less administrative paperwork and record keeping.
- Owners have limited liability for business debts and obligations
- Pass-through (Sole Proprietorship and Partnership) taxation (i.e. no double taxation) .
- No limit to the number of owners. One owner may form a single member LLC
- Owners do not need to be U.S. citizens or permanent residents
- Owners can be individuals or other companies or mixtures thereof.
- LLCs do not need to hold annual meetings or record meeting minutes (though strongly recommended).
- Governed by operating agreements. You need a strong operating (partner) agreement.
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The main disadvantages are:
- LLCs may not issue stock to attract investors.
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If not operated as a Company, the “corporate veil can be pierced”. In other words, if it is used as a personal piggy bank, the IRS will disallow the corporate structure. Articles of Organization are filed with the Secretary of State. The enabling legislation is so general and unrestricted that legal advice and great care in preparing the agreement are essential to obtain the desired benefits. The name of the company must include the words “Limited Liability Company, ”L.L.C.”, “LLC,” or “Ltd. Co.” in its name.
Add comment November 4, 2009
Finance: Challenges Revisited
Expert Answers to Your Loan Questions
I received a comment from Johnny on one of my previous blogs regarding a lack of capital available to small business. I’m always interested in your comments and experiences so please share your thoughts with the rest here on the blog or in SCORE’s online community.
Johnny’s comments are as follows:
The Arc loan program started out as a great idea and that’s it. The banks have taken this great loan idea and have done nothing. Many banks are not even involved. One of the major banks in the United States (Bank of America) always professing they are the leaders in looking out for the small business is not even involved.
I have a small business for the last 8 years. I sell my product to Boutique stores across the Country. What I do and others like me are helping to push this economy into a better place. This Country was built by small businesses and now when we need the help of banks and our government we get nothing. There is no voice for us small businesses. I am appalled and ashamed for a recovery loan program that had so much promises and potential, fizzles out in the hands of our American banks. All while our government and elected officers do nothing. This country is run by our major banks and what financial gain they can get. The small businesses are pushed aside.
And my response:
Johnny I understand your frustration and my experience is that your financing challenges are systemic. One important clarification, there are a number of new initiatives currently being formulated inside the SBA to try to provide more liquidity to the capital markets. The issue is not whether SBA understands the problem, its that solutions currently provided can not be force fed to SBA lenders. Let’s all hope that the new program upgrades will provide capital to a very important part of our GDP: SMALL BUSINESSES just like yours.
Add comment October 28, 2009
Start: Writing Your Partnership Agreement
Key Items to Include
1. Name and location of the enterprise.
2. Duration of the enterprise. Define method of termination.
3. Purpose and goals of the business: roles, duties and responsibilities.
4. Capital contribution of each party.
5. Whether the Parties may make additional contributions, and, if required, what if one Party refuses to contribute.
6. The level at which Capital Accounts of the Parties must be maintained.
7. Participation of each Party in profits and losses.
8. A wage for actual time spent running the business (Guaranteed Payment to Partner (Members).
9. Acceptable level, timing and treatment of party draws or guaranteed distributions.
10. Duties, responsibilities, authority and limits of authority of each party.
11. Amount of time to be contributed by each party.
12. Prohibition of outside business activities by parties that would be in competition.
13. Will the enterprise be managed by the parties or appointed managers?
15. Method of admitting junior parties, without capital.
16. How a party’s share of the business is to be valued.
17. Method of determining the value of Goodwill.
18. Method of liquidating the interest of a deceased or retiring party.
19. Process for continuing the business if a party dies or wants out.
20. Age at which a Party must withdraw from active participation, and arrangements for adjusting his salary and equity.
21. Period of time in which retiring or withdrawing parties may not engage in a competing business.
22. Basis for expulsion of a party.
23 How the protracted disability of a party will be handled.
24. Prohibition of the owners or their heirs pledging, selling, or in any other manner disposing or transferring their interest in the enterprise except to other owners, and/or provisions that the other owners have first refusal to acquire such interest, including reasonable time periods for making payments therefore, and the basis for computing the value of such interests. (There can be substantial consequences from an owner’s buyout, depending upon how the agreement is worded – this should receive professional assistance.)
Add comment October 28, 2009
Small Business: Google Tools
Google Tools to Enhance Your Biz
Google offers a wide variety of free tools that help small business owners manage documents, photos, blog subscribers and the list goes on. Here are a few of the tools my company frequently uses:
- Google Docs: Share documents on the web with your associates, clients and business partners. Instead of emailing attachments back and forth, creating multiple versions, share your documents online and everyone can edit the same document (one copy, no more hunting for the latest version).
- Upload from and save documents to your desktop
- Edit anytime, from anywhere
- Pick who can access your documents
- Share changes in real time
- Files are stored securely online and best of all, it is free.
- Feedburner: If you own a blog, you probably want to give your site visitors the opportunity to subscribe so they can automatically receive updates when published. Feedburner is an excellent tool for this purpose.
- Picasa: Fast and easy photo sharing that allows you to organize and edit your digital photos and create online albums to share with business colleagues and clients, as well as your friends and family.
- Blog Search: Keeping track of blog updates and news specific to your industry can be a real challenge. Using “blog search” helps you find news and info from just blogs.
- GOOG-411: Google’s 411 service is free and easy to use. It allows you to find and connect with local businesses using the phone. Just dial: 1-800-GOOG-411 (1-800-466-4411).
Tell us about your favorites – leave your comments – thanks!
3 comments October 23, 2009
Success: SCORE Salutes Small Biz Success
ECCO Wins Outstanding Socially Progressive Business Award
The first-ever SCORE Awards was held to recognize the success of America’s small businesses during a time of economic recovery.
SCORE honored East Cooper Community Outreach (ECCO) with Outstanding Socially Progressive Business Award. ECCO was initially conceived in 1989 by Monsignor James A. Carter, pastor of Christ Our King Catholic Church, in response to the devastation caused by Hurricane Hugo. ECCO’s ministry of “Neighbors Helping Neighbors” works to improve poverty, substandard housing, lack of access to health and dental care, hunger, and the threat of homelessness challenged a prospering community.
In 2007, ECCO turned to Coastal SCORE to help grow services. Volunteer experts from SCORE helped ECCO analyze its computer servers and made recommendations to upgrade the hardware, significantly improving ECCO’s performance. SCORE also offered strategic planning support and gave advice on ECCO’s micro-loan initiative. In 2008, ECCO provided at least one basic need service to more than 5,000 clients.
Learn about all the 2009 SCORE Award winners.
Add comment October 22, 2009
Small Business: SBA Loans
SBA States Loan Volume is Increasing
I received from the SBA the following release and wanted to share with you:
September loan volume highest since August 2007
WASHINGTON – Changes under the American Recovery and Reinvestment Act to U.S. Small Business Administration loan programs led to a rebound in SBA-backed loans for small businesses and greater access to much-needed capital.
Since the Recovery Act was signed on Feb. 17, SBA has supported more than $11.3 billion in lending to small businesses through its two largest loan programs and seen its average weekly dollar volume increase by more than 60 percent in comparison to the weeks before the Recovery Act. Additionally, the average number of loans approved per week has increased by more than 50 percent. The dollar volume for September 2009 ($1.9 million) was the highest single-month total since August 2007.
This is obviously encouraging news, but my personal experience has been that banks are still NOT lending in the Atlanta market. Georgia has been faced with a number of community bank closings and lender’s underwriting has under gone significant changes. Minimum credit scores approaching 700, detailed financial statements and completed business plans are the norm.
This isn’t a “bad thing,” prudent lending practice should require strong borrowers and verifiable collateral. What is distressing is that even with strong borrowers, finding a bank to provide funds is still a challenge. One of my clients had a $475000 recent appraisal with no debt on the property and she wanted to fund a $100000 loan secured by a first mortgage to fund a business opportunity. She was turned down by 2 banks before a local credit union figured out that a 25% loan to value ratio was strong collateral for a loan even in a distressed real estate market.
I’d like to hear from you about what is happening in your area and is funding opportunities improving.
Add comment October 20, 2009
Marketing: LinkedIn Advertisements
Learning About Online Advertising
LinkedIn reaches over 41 million users and is the premier social networking site for professionals. The site makes it easy for companies to advertise. The company breaks advertising down into two methods, one for small companies and one for larger companies with a budget of $25,000.
LinkedIn provides DirectAds for smaller companies. These ads consist of targeted text ads based on geography, seniority, industry, job function, company size and more. Each text ad can be up to 60 characters. Pay plans work based on clicks or impressions. Minimum required cost is $50 USD and a minimum daily cost is $10 USD.
Look before you leap. Investigate online advertising to determine if it’s a fit for your business. Learn more about LinkedIn ads.
Add comment October 19, 2009
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