Most entrepreneurs assume they need start up capital and many do. However, until you have completed a business plan which includes creating a budget and financial projections, there really is no way to know exactly what the financial needs of the business are. WBDC can help entrepreneurs with a business plan assist in determining what capital, if any, is needed and where and how it can be accessed.

Grants awarded to small businesses that are not non-profit organizations are almost non-existent. A grant is a contract that is awarded to an organization who will perform a service that meets the objectives of the funder and you must submit a winning proposal to be considered. At this time, Congress has not set aside any monies for grants to start and/or expand a small business. A few small grants have been awarded to residents of towns in the past-contact the economic development department of the town in which you reside or operate your business to find out if there is an opportunity to apply for a grant. In addition there may be opportunities for you if you live or have a business in an empowerment, enterprise or hub zone.

There is risk involved with any entrepreneurial venture and one way to experience opportunities and risks is to start small-perhaps at home-test the business concept, experiment with the marketplace, and keep a detailed journal. It is important to know that it may be tough to have a home-based business. If you have children, they may get in the way, you're on your own, and you will probably have to work late hours to accommodate the errands and childcare required of you during the day. On top of that, the Internal Revenue Service (IRS) makes life tough---that's one take-away from a new Small Business Administration Office of Advocacy-funded study entitled, Home-Based Business and Economic Regulation. The study follows up on previous research that shows small businesses (with fewer than 500 employees) are disproportionately affected by regulatory burdens. But, does this mean that the burden grows as the firm gets smaller? This new report indicates that this may indeed be the case. The IRS in their use of deductions penalizes home-based businesses, and zoning rules can complicate matters as well. The report suggests that the IRS consider easing its rules for home office deductions. Because so many other tax deductions are dependent on being able to deduct one's home office, this step would provide significant tax benefits to the 53% of small businesses based at home. WBDC clients who were surveyed commented, "There is no greater benefit than working from home... you have the freedom to make decisions and answer to know one but yourself - but you must be willing to give up or modify your own ideas and, respond to other ideas, and face your challenges head-on."

February 2004 report, Home-Based Business and Economic Regulation, by Henry Beale of Microeconomic Applications, Inc. is available at http://www.sba.gov/advo/research/rs235tot.pdf

The SBA offers numerous loan programs to assist small businesses. It is important to note, however, that the SBA is primarily a guarantor of loans made by private and other institutions.

PROGRAM: Basic 7(a) Loan Guaranty www.sba.gov/financing/sbaloan/7a.html

FUNCTION: Serves as the SBA's primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. It is also the agency's most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes.

Loan proceeds can be used for most sound business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets.

CUSTOMER: Start-up and existing small businesses, commercial lending institutions

DELIVERED THROUGH: Commercial lending institutions

PROGRAM: SBA 504 Program

An alternative form of expansion financing. Specifically the program has been created to provide second mortgage financing at low cost for small business concerns acquiring real property and equipment when such accommodation is not available from conventional sources. The loan proceeds may be applied to: the purchase of land and/or buildings; machinery and equipment, construction, related costs (architectural, engineering, etc.) Eligible businesses, under the Small Business Administration's small business classification, are defined as for-profit companies generating active (not investment) income whose total net worth is less than $7 million. The average net profit, after taxes, must be less than $2.5 million per year for the past 2 years.

I have had a small business for three years and am so busy that I have not had the time to do any marketing or seek additional funding. Should I hire a marketing and financial consultant to help me and if so, how much should I pay?

Before paying for any services you think you may need, take advantage of WBDC's counseling and assessment services. A WBDC assessment will help you determine what services you actually need and can not undertake on your own. WBDC can also provide business counseling services to you in most business disciplines. The WBDC counseling program gives you an opportunity to speak to a professional in a specific area of business which you need help in at a fraction of the going market rate.

I have been turned down by banks for a loan due to bad credit. Can you help me get my credit together and seek other funding options?

WBDC recommends its associates at Consumer Credit Counseling to assist you with getting your credit back on track.

WBDC offers entrepreneurial education and professional development training. If you are a committed entrepreneur with a desire to learn and accept the challenges of self employment, you can benefit from the services of WBDC. WBDC does not do the "launching" for you, but it will provide you with opportunities to increase your chances of success if you are committed to the process.

Yes, WBDC can help. In addition to entrepreneurial training, WBDC offers professional development, The Yellow Door. Services offered under The Yellow Door include one-on-one coaching sessions focusing on enhancing existing skills and developing new ones in order to increase opportunities for better jobs and/or self employment.

Specifically, The Yellow Doors Focus coaching program is an affordable way to experience the latest phenomenon in personal and professional achievement. WBDC's Focus program provides clients with three, one hour sessions with a licensed certified coach who will guide you thorough a plan of action to achieve your career goals. WBDC also assists clients with networking opportunities in the community.