By Moses Leos III
Whether it’s helping craft a business model, or preparing a client financially, the Texas State Small Business Development Center (SBDC) provides the base for small businesses to thrive.
The organization, which receives partial funding from the Small Business Administration, uses a three-pronged approach — mentorship, education and collaboration.
“We are technical assistance providers,” Joe Harper, SBDC director said. “We teach [small businesses] about business and we help them develop strategies to launch or expand their business.”
The Texas State SBDC has helped an average of 800 clients per year, spanning 12 Central Texas counties, including Travis, Williamson and Hays. They have helped 350 clients in the last five years in Hays County alone.
The SBDC uses all three methods to steer small businesses in the right direction. Through mentorship, the SBDC helps businesses launch or expand, attain sustainability, or retrench in tough economic markets.
Ultimately, the SBDC tries to fight the trend of small business failure — 4 out of 5 small businesses fail in the first five years in the United States.
“We want strategies to be sustainable enough to establish a market share and brand within a community,” Harper said.
Education is the next step, in which the SBDC helps develop strategies for all small businesses. That involves helping plan financially, or coming up with a business plan, securing a framework for success.
The final step involves the collaboration component. There, the SBDC works with agencies such as the Women’s Business Center or the Procurement Technical Assistance Center to tailor to businesses’ individual needs.
“We learn how to work with each other, and leverage each other’s resources for the benefit of the client,” Harper said.
According to the SBDC, assistance from the organization helps spur business development, both in sales and employment growth.
However, not every business can immediately benefit from the SBDC’s help.
Harper said the ideal candidates are businesses that are “executable” — businesses that have a business plan or model in place, and are ready to move forward.
“For our services and being good stewards of taxpayer dollars, we work with people that can execute strategies,” he said. “We have to make sure they execute.”
While the group doesn’t turn away those who aren’t ready, they work to get them as prepared as possible, depending on what is needed.
Even if a client is fully prepared, the turnaround for full preparedness takes as long as six months. It allows the SBDC answer any questions that may arise.
“Realistically, even in best case scenario, three months is about a short time frame as you can get,” Harper said. “You have to apply yourself. It’s a lot of work.”
But why use the SBDC?
Harper says it’s a service tax dollars already pay for.
But it also lets businesses see beyond the day-to-day operations, allowing them to grow.
“Mentors help to keep the big picture in front of businesses,” Harper said. “It also helps find the cause of struggles, and where to capture opportunities.”
Looking forward, the SBDC now eyes the rapid growth of the Central Texas region. With resources limited, the SBDC look at finding ways to help spread the wealth.
“Part of it goes back to collaboration,” Harper said. “Finding other partners that will provide service.”