SBDC Approach To Economic Gardening

In 30 minutes…..  Market research  Newton approach  MyEntreNet  Business Succession

Iowa SBDC System  Training and business counseling - aspiring & existing business owners  13 locations – soon to be 14  10,000+ people per year - counseling/training  Average client grows 25% faster

SBDC Approach  Our purpose – help growth oriented companies grow faster/less mistakes  Temperament – “high impact”  Commodity trap – “competitive advantage”  Bottom line – better information = better decisions = faster growth

Where We’ve Been  Our research into research  Pilot – Central IA & Waterloo area  Expanded to all Iowa SBDCs  Individual centers  Key – garbage in/garbage out

Examples  Northern Iowa manufacturer – NEW!  Location – W. Iowa health food store –Identified target market –Used software – how many in x mi radius  Business Trainer –Profile existing clients – 80/20 –Narrow group – most of profit –Helped design campaign – get more

Current State  National SBDC market research arm with GIS  Weighing alternatives – many options Central source Include Universities and students  Goal - “Re-open” for business by January 1

Newton Program  1:1 counseling  Smart Start workshops  Market research  Development of mentor network  Topical workshops

MyEntreNet 1. Community Empowerment - Preparing the community 2. Business Assistance - Training, counseling, mentoring 3.Capitalization - Review financial options - small business 4.Networking - Recognizing and connecting entrepreneurs regionally

Online and Onsite Clayton County, Iowa FastTrac® Class, Fall 2005 MyEntreNet Online Web Conference

Economic Impact To Date For Every 100 Entrepreneurs…. 20 Start or Expand a Rural Business Creating…. 75 New Full Time Jobs Leveraging…. $3.5 Million in New Commercial Investment

Get Connected! Register at Register at Application available online Application available online Letter of intent to apply – Nov. 3, 2006 Letter of intent to apply – Nov. 3, 2006 Application deadline – Dec. 1, 2006 Application deadline – Dec. 1, 2006 Announcement – Jan. 16, 2007 Announcement – Jan. 16, 2007

Iowa Challenge  “Transitioning our own” large part of economy in Iowa next 15 years  Aging business owners 28% of Iowa business owners 55 or older 28% of Iowa business owners 55 or older  Lack of succession planning 39% of family businesses will change 39% of family businesses will change leadership - next five years 66% of businesses - no succession plan 66% of businesses - no succession plan 55% of owners die without valid will 55% of owners die without valid will

Business Succession Impacts when done well: Storefronts occupied Higher tax revenues Greater philanthropy More business diversity Spiral effect Succession IS economic & community development!

Definition Business continues in some form Transfer of small business to new owner: Transfer to family member(s)Transfer to family member(s) Inside sale – key employee(s)/ESOPInside sale – key employee(s)/ESOP Sale to outsiderSale to outsider

All Successful Transfers Answers 3 Key questions 1. How much do I need when I leave business and where will it come from? 2. When will I leave? 3. Who is going to take over (and how will I prepare them)?

Statewide program  Advisory committee Statewide – broad background  Succession resources Family business consultants, ESOP experts, attorneys, CPAs, business brokers, SBDC & others  Developing - comprehensive web site Links, articles, service providers

Iowa SBDC Lars Peterson