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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
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