The Small Business Development Center network is a statewide program funded through the Small Business Administration, Washington State University, Western Washington University, several community colleges and economic development groups – and for the first time ever – the state of Washington, through Governor Gregoire’s “New Washington” initiative.
“To get the attention of the governor means we have proved we’re worth our dollars,” said Janet Harte, certified business advisor and director of the Southwest Washington SBDC.
The SBDC program has been helping Washington businesses employing fewer than 500 since 1980 with no-fee business counseling, low-cost training, and secondary business research. Areas of expertise include customer service, business plans, marketing, exporting, licensing, risk management, e-commerce, funding, human resource issues and business start-up.
“We’re a one-stop resource,” said Harte. “Our goal is to help businesses thrive and grow.”
According to Harte, SBDC clients fall into two main categories. First, there are those existing businesses that are trying to meet a particular challenge, such as resolving HR issues or finding funding. For example, Joe Day, co-owner of Vancouver-based Rain City Power Sports and Equipment LLC, had bought the business two years ago. This past summer, Day approached the SBDC to help him secure a business loan.
“We’re convinced (the loan) wouldn’t have happened without Janet’s help,” said Day. “It was a big shot in the arm for our business.”
Day, whose shop services “toys” such as jet skis, ATVs and snowmobiles as well as selling related accessories, continues to use Harte’s expertise in areas such as marketing, employee motivation, and company processes and procedures.
“Janet has helped us find bleeding areas in our business and fix them,” said Day.
The other main group of SBDC clients consists of “serious” start-ups. Harte said that, before they come to the SBDC, a start-up must have already done some “homework,” such as having completed a feasibility analysis. She suggested that start-ups may find it best to get started with SCORE, a volunteer-run group of retired executives that offers advice to businesses. Then, after they have refined their needs, use the SBDC to iron out the details.
Laura Lewis, principal of Battle Ground’s Anchor Point Counseling Center LLP, came to the SBDC a year ago.
“This was the first time for us,” said Lewis. “We needed a lot of direction.”
The SBDC was able to help Lewis flesh out her business plan, refine her marketing approach, and make realistic financial projections. After six months of working with the SBDC, Lewis opened her business, which provides alcohol, drug and domestic violence counseling, in March. Since then, the business has experienced nearly 40 percent growth.
“If we continue to grow the way we have, we’ll have to hire someone,” said Lewis.
Harte claimed that, like Anchor Point, “SBDC clients have a higher probability of success.” She attributes this in part to the organized, certified, experienced network of SBDC advisors, saying that “you get the whole network when you get one of us.” For example, Harte said she wasn’t an expert in obtaining venture capital. So, for one client she co-counseled with another SBDC advisor from Seattle.
This August, Jim Chrisman of Mississippi State University analyzed the impact of the SBDC program. According to the Chrisman study, statewide in 2006, the 27 SBDC centers provided 24,000 hours of counseling to 3,256 clients, helped them access nearly $100 million in capital and created or retained 2,110 jobs. Here in Vancouver, the SBDC set the following goals:
•Perform 900 hours of personal counseling (this works out to about 100 clients per year)
•Create $1 million in impact (that is, money spent starting or expanding a business)
•Create or retain 100 jobs
She said the center consistently meets these goals. For example, in 2006, the center served 103 clients, generated $1,767,500 in capital expenditure and created 85 jobs.
“So far this year, our impact is higher than last year,” said Harte, giving year-to-date figures as follows: 84 clients served, $2,157,208 in financial impact and 45 new jobs.
By offering technical management assistance to help business owners learn to better lead and manage their business, and in doing so, generating millions in financial impact and new jobs, which in turn generates tax revenue and increasing consumption power, the SBDC program is a powerful engine driving small business in Vancouver and across the state.
The Chrisman study showed that Washington SBDC clients generated more than $13 million in new sales tax revenue. Put another way, for every $1 invested in the SBDC, the state gained $4.18 in tax revenue, and $35 in capital expenditure. SBDC clients also had a greater impact on employment, increasing employment by 21.8 percent, versus a statewide average of only 2.3 percent.
“The program gives back more than it takes,” said Harte.
SBDC COMES TO LONGVIEW
As part of the new state funding of the Small Business Development Center network, Washington State University is opening three new SBDC centers – Grays Harbor, Pullman and closer to home – Longview.
Ted Sprague, president of the Cowlitz Economic Development Council reported that the CEDC had worked hard in the legislature this year to get the funding for the three new SBDCs.
“We’ve never had an SBDC before,” said Sprague. “That has been a big hole in our economic development picture.”
Sprague, who has served on the CEDC for seven years, said that the Council often gets inquiries from people interested in starting small businesses. And while the Council tried to be as helpful as possible, such as referring inquiries to Janet Harte with the SBDC in Vancouver, the Council’s real focus is on larger manufacturers.
“We didn’t have the time or the expertise,” said Sprague, who hopes that the new Longview SBDC, housed on the Lower Columbia College campus, will provide the high-touch input local small business people need.
The Longview SBDC will be directed by Susan Hoosier, who was hired in mid-September.
“It’s critical to have a face-to-face presence in this area,” said Hoosier, who sees Longview on the verge of a major growth and development phase. Indeed, that phase has already begun, with ten new manufacturing companies recently opening in Longview, creating 950 new jobs and representing $260 million in capital expenditure.
Sprague and Hoosier expect this growth to spur small business growth as well, hence the timeliness of the Longview SBDC. Hoosier comes well prepared to help Longview small businesses meet their challenges – she has owned two successful businesses herself, and was regional director for an SBDC in Minnesota that served 12 counties.
Hoosier has spent the last two weeks meeting with various groups, such as the president of LCC and the Kelso/Longview Chamber of Commerce.
“We’re off and running,” said Hoosier, “and we’ll continue to meet with business and community leaders to see how we can best meet the needs of the community.”
