1. SMALL BUSINESS DEVELOPMENT NETWORK NEEDS ASSESSMENT OF COLORADO BUSINESSES Prepared by: Left Brain Concepts, Inc. Lakewood, Colorado August 2012

2. BACKGROUND Purpose: This report presents the findings of a survey of 150 Colorado businesses. The survey was completed for the Colorado Small Business Development Network to determine the needs Colorado businesses have for professional services that the SBDCs can fulfill. The survey tested people’s interest in a number of services that are available through the SBDCs. Methodology: The survey was conducted via telephone in July 2012 by the Lakewood, Colorado-based market research and marketing consulting firm, Left Brain Concepts, Inc. The titles of the people interviewed were CEO, owner, president, executive director, partner, principal, general manager, manager, office manager and administrator. The survey was written primarily by Left Brain Concepts, Inc. with input and final approval by Ms. Kelly Manning, State Director, Small Business Development Network. List: SBDN procured an exhaustive list of Colorado businesses from the database firm infoGroup. InfoGroup states in its promotional materials that it “has been in the database marketing business for the last 75 years. Our business and consumer information is updated continuously from new directories and other sources. It's hands down the best information available anywhere. InfoGroup has developed the most complete and accurate database of business information. Information in the database is compiled in two phases. First, infoGroup compiles 4,000+ telephone directories and over 350 new business sources such as Secretaries of State, county courthouses and public record notices. Second, infoGroup calls each business to verify the information and to obtain additional information. The coverage of the infoGroup database is intended to represent all active business sites.” Sampling: The businesses included in this survey were those that SBDN has deemed as prime candidates for its services: In business for 3 to 6 years. Having 5 to 25 employees.

3. KEY FINDINGS  Awareness of Small Business Development Centers: More than a quarter (29%) of management of these Colorado businesses have heard of the Small Business Development Centers.  Interest in SBDC’s areas of counseling services: As might be expected, people are most interested in counseling to help increase their businesses’ revenues and creative services such as webpage design and promotional materials. There is also strong interest in counseling in other areas of running a business - accounting, training, management, operations, financial literacy, financial assistance and human resources. However, far fewer people would like counseling regarding exporting and international trade. Only 12% of the people interviewed said they are not interested in the SBDC’s counseling services. And, only 6% could not state the areas of their business in which they would like to receive counseling.  Interest in SBDC counseling and training workshops: Two-thirds of management of these Colorado businesses are interested in webinars which can be accessed at any time of day (65%) and in workshops at central locations (65%) with a presenter. Fewer (33%) people would like to attend live on-line seminars with chat room capabilities. There is some interest in social media marketing (23%) and government procurement opportunities (15%). There is very little interest in export opportunities (4%). People who are interested in webinars would like to access them at both home and work (38%) and from their offices (49%). Few (11%) would like to attend the webinars only from their homes.  Preferred days to receive SBDC counseling: Management of these Colorado businesses mentioned every day of the week as being best to receive the SBDC’s counseling services.  Preferred hours to receive SBDC counseling: Management of Colorado businesses would like to receive the SBDC’s counseling services mostly during morning and afternoon hours. They are less interested in evening and weekend times.

4. KEY FINDINGS CONT’D…  Preferred method of communication from SBDCs: People would like to receive information about the SBDC’s counseling services primarily through electronic communication. They are also interested in receiving newsletters in the mail and to some degree, attending networking events. People are less interested in seeing radio, television and newspaper advertising.  Legal structure of the businesses included in the survey: Most of the businesses included in this survey are C corporations, S corporations or limited liability corporations.  Annual revenues of the businesses included in the survey: More than half (59%) of the businesses included in the survey have revenues of $1 million or less. The rest (41%) have revenues of more than $1 million.  NAICS codes of the businesses included in the survey: A wide range of industries were represented in this survey.  Titles of the people representing the businesses included in the survey: The people interviewed in this survey are owners and other senior management - people who have the authority to engage the SBDCs for services.  Veteran-owned businesses: Only 7% of the firms included are veteran-owned.  Comparison to 2011 survey: This needs assessment survey was also conducted in 2011. Key differences from 2011 is that more people are aware of the SBDCs (29% in 2012, 19% in 2011) and, there is noteworthy interest in two new SBDC services of social media marketing and government procurement opportunities.

5. CONCLUSIONS  There are no glaring negatives about the SBDCs from the perspective of Colorado businesses. The biggest obstacle to the SBDCs serving more Colorado businesses with its counseling services is to continue to make management of Colorado businesses aware of the services that are available through the SBDCs.  Once people learn about the SBDCs services, there will be few barriers to providing counseling and training to Colorado businesses. That is, after people were told about the services that are available through the SBDCs, almost all (senior management) at the businesses included in this survey would like to receive services from the SBDCs.  The SBDCs can best serve Colorado businesses by: Making people aware of the breadth of services that are available at the Small Business Development Centers. Continuing to make services available Monday through Saturday. Continuing to make services available from morning into the evenings. Offering opt-in electronic and newsletter communications. Holding periodic networking events. Continuing to provide workshops, webinars and on-line seminars.

6. AWARENESS OF SMALL BUSINESS DEVELOPMENT CENTERS Question: Have you heard of the Small Business Development Centers? A quarter (25%) of management of these Colorado businesses have heard of the Small Business Development Centers. But, about two-thirds (65%) had not heard of the SBDCs. Another 4% know very little.

7. AWARENESS OF SMALL BUSINESS DEVELOPMENT CENTERS Question: How did you hear about the Small Business Development Centers? More than three-quarters (84%) of management of these Colorado businesses are not sure how they heard about the Small Business Development Centers. Another 10% knew through networking events and (5%) were referred by a friend.

8. INTEREST IN SBDC’S AREAS OF COUNSELING SERVICES Question: The Small Business Development Centers provide counseling at no cost and training at either no cost or low cost to Colorado businesses in all areas of running a business. When you think of improving the success of your company, what disciplines come to mind? (Accept multiple responses) As might be expected, people are most interested in counseling to help increase their businesses’ revenues and creative services such as webpage design and promotional materials. People are also interested in counseling in other areas of running a business - accounting, training, management, operations, financial literacy, loans and human resources. But, they are far less interested in counseling regarding exporting and international trade. Only 12% of the people interviewed said they are not interested in the SBDC’s counseling services. And, only 6% could not state the areas of their business in which they would like to receive counseling.

9. PREFERRED DAYS TO RECEIVE SBDC COUNSELING Question: Consulting and training services are available at SBDC offices throughout the state. If you were to explore receiving counseling and/or training from the SBDC, what day or days of the week would be best for you? You can give me multiple days, but SBDC offices are not open on Sundays. Management of these Colorado businesses mentioned every day of the week as being best to receive the SBDC’s counseling services. Many do not have a preference.

10. PREFERRED HOURS TO RECEIVE SBDC COUNSELING Question: And, if you were to explore receiving counseling and/or training from the SBDCs, what times of day would be best for you – morning, afternoon, evening or weekend? Again, you can give me multiple responses. Management of Colorado businesses would like to receive the SBDC’s counseling services mostly during morning and afternoon hours. They are less interested in evening and weekend times.

11. PREFERRED METHOD OF COMMUNICATION FROM SBDCs Question: The SBDCs are committed to assisting Colorado businesses and keeping people informed about the services it provides. How can the SBDCs best communicate its offerings to you - e-mail, newsletters sent through the mail, media such as radio, television and newspaper ads and/or networking events? Management of these Colorado businesses would like to receive information about the SBDC’s counseling services primarily through electronic communication. They are also interested in receiving newsletters in the mail and to some degree, attending networking events. People are less interested in seeing radio, television and newspaper advertising.

12. INTEREST IN SBDC COUNSELING AND TRAINING WORKSHOPS Question: The SBDCs offer a variety of counseling and training workshops. Please tell me if you would have an interest in the following. About two-thirds of management of these Colorado businesses are interested in webinars (65%) and workshops at central locations (65%). Fewer (33%) people would like to attend live online seminars with chat room capabilities. There is some interest in social media marketing but less in government procurement opportunities. Few are interested in export opportunities.

13. ATTENDING WEBINARS Question: (Among those who are interested in webinars), where would you prefer to access the webinars, from home or from work? People would like to access webinars at both home and work (38%) and from their offices (49%). Few (11%) would like to attend the webinars only from their homes.

14. LEGAL STRUCTURE OF THE BUSINESSES INCLUDED IN THE SURVEY Question: What is the legal structure of your business – corporation, partnership, sole proprietorship? Most of the businesses included in this survey are C corporations, S corporations or limited liability corporations.

15. ANNUAL REVENUES OF THE BUSINESSES INCLUDED IN THE SURVEY Question: Let me read a range of annual revenues. Please stop me when your company’s revenues fall into a category. More than half (59%) of the businesses included in the survey have revenues of $1 million or less. The rest (41%) have revenues of more than $1 million.

16. NAICS CODES OF THE BUSINESSES INCLUDED IN THE SURVEY Question: What is your business’ NAICS code? (If they were not sure, we recorded it from the infoGroup list). As the following graph illustrates, businesses in a wide range of industries were included in this survey.

17. TITLE OF THE PEOPLE REPRESENTING THE BUSINESSES INCLUDED IN THE SURVEY Question: What is your title? The people interviewed in this survey were owners and other senior management - people who have the authority to engage the SBDCs for services.

18. VETERAN OWNED BUSINESS? Question: Are you a veteran-owned business? Only 7% of these firms are veteran-owned.

19. NUMBER OF EMPLOYEES AT THE BUSINESSES INCLUDED IN THE SURVEY Question: Number of employees. By design, the number of employees for the businesses included in this survey ranged from 5 to 25.

20. YEARS IN BUSINESS FOR THE BUSINESSES INCLUDED IN THE SURVEY Question: Year first appeared. By design, businesses included in the survey have been in business for 3 to 6 years.