Northern Colorado SBDCs boost small-business success

Small-business entrepreneurs are the explorers of our age: They have grand dreams, chart a difficult course and, with calm economic seas and good marketing winds, achieve their vision and reach their own New World. But, as with any voyage into new territory, it helps to have a map.

Colorado’s Small Business Development Centers are the mapmakers for Front Range Magellans, and our seas are getting crowded; Fort Collins/Loveland is among the nation’s top 10 regions for business startups, according to Inc. Magazine. And the phenomenal growth of the area promises to boost Northern Colorado even higher on the list. More new businesses may mean more opportunity, but it also means more competitors. That is where assistance offered by the SBDCs can be invaluable.

“Our mission is to provide high-quality, cost-effective small-business assistance, information and leadership activities that contribute to successful business growth and development resulting in a positive economic impact,´ said Mary Fischer, director of the Larimer County SBDC headquartered in Fort Collins. “The operative word for me is Ôsuccessful.'”

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Fischer’s office is one of 20 SBDCs in Colorado.

While the majority of business owners and would-be entrepreneurs who seek SBDC assistance are operating startups, many owners of existing, successful businesses are no strangers to SBDCs.

“Once they are on their way, they often come back for counseling, which is one of our goals,” Fischer noted. “We counseled 83 businesspeople in October. Of those, 51 were new clients, and 32 wanted follow-up assistance.”

Except for courses, which carry a nominal charge to recover costs, each SBDC and satellite office provides services free of charge. About 7,000 Coloradans have completed courses sponsored through an SBDC, and among the most popular are the Leading Edge and Leading Edge/NxLeveL courses. The Larimer County office also offers six other workshops.

“We have a checklist of things for people to do,” Fischer said. “One of the first things is to decide on a legal structure, because that determines how they will register their business.”

What kind of business are you starting? What is your level of financial risk? Is risk better managed through insurance or legal structure? Should you establish a sole proprietorship or a general partnership, an S-Corp or a limited partnership, a C-Corp or an LLC? Questions like these need the kind of competent professional advice available at an SBDC or through an SBDC referral.

“You should have an attorney, a CPA and perhaps a good insurance person in your hip pocket to help deal with complex questions and potential problems,” Fischer said. “We work with attorneys, marketing experts and CPAs who can provide assistance, and we get lots of help from SCORE, the Service Corps of Retired Executives.”

SBDCs are funded by money made available to the state of Colorado by the U.S. Small Business Administration. Funding is matched by a partner, often a local educational institution. Fischer’s Larimer County partner is Front Range Community College.

Ron Anderson directs the SBDC in Greeley, headquartered at the Greeley/Weld Chamber of Commerce. Its partner is Aims Community College. The Chamber of Commerce offers support in kind. Anderson says SBDC courses and counseling can spell the difference between success and failure.

“Small-business startups have a high rate of failure,” he said. “If a business owner cannot do the planning involved, that encourages a bad outcome. Sometimes business owners wait too long before asking for help.”

Success is the desired destination of every new business owner, and there is no better way to get there than through comprehensive planning.

“Success usually comes from taking a great idea and developing it into a comprehensive, well-thought-out business plan,” Fischer said. “Marketing and financial components are two of the most important in a business plan. They include identifying your target market and customer base and making reasonable financial projections.”

Services offered by SBDCs can help experienced business owners as well. “Maybe they need to tweak their marketing, or they are expanding and need a more generous credit line,” Anderson said. “Perhaps they need to expand inventory or decide what to do with an inventory surplus. We can provide the assistance to successfully manage these decisions.”

As we head into the next millennium, the perils that have always existed remain for small-business people. As ancient mapmakers noted on their horizons, where the flat earth was thought to end: “There be monsters there.” But opportunity, especially in Northern Colorado, is abundant, and SBDCs are helping Colorado entrepreneurs ease the dangers and enhance their chances for success.

“The tremendous growth The Front Range is experiencing certainly provides an optimistic business climate,” Anderson said. “The entire business climate of Colorado is very conducive to small business because of the amount of assistance out there.”