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SDSPA Business Development: Preparing for Financing

MATTY KERR, BUSINESS CONSULTANT

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What is the SBDC?

  • SBDC = Small Business Development Center
  • Program of the Small Business Administration (SBA), funded federally and statewide via SD Legislature.
  • Goal is to provide one-on-one business counseling, training, and technical assistance.
  • Primary counseling activities are assistance with:
    • Business plans
    • Developing financial projections
    • Market research and analysis
    • Marketing/Advertising resources

https://sdbusinesshelp.com/

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What to expect in an SBDC one-on-one:

  • Intake process varies by office
  • Goal is to learn what you need assistance with
  • Develop a plan of action

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SBA’s “10 Steps”: Steps #1 - #3

  1. Conduct Market Research - understanding competitors & validating revenue potential
  2. Write your business plan – taking your idea & putting it on paper
  3. Funding your business – What is involved in your operation currently and what do you need to grow/expand/improve?

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Writing a business plan

  • Verbalizing your idea/venture so anyone could remember
  • Can serve as a roadmap for growth & funding
  • Key sections (summary, goals, analysis, strategy, management)
  • Should be viewed as a living document → updated as business evolves
  • Examples:

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Funding your business

  • Financial projections would include:
    • Revenue
    • Startup costs – i.e., equipment, licenses, inventory
    • Recurring expenses – i.e., rent, payroll, insurance, marketing
  • Ability to forecast revenue & break-even point
  • Helps to validate that your idea cash flows
  • Explore funding options (so many possibilities!)

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Contact information

Matty Kerr

Business Consultant

Brookings Office

605-696-5600

Matty.kerr@visionbrookings.com

https://sdbusinesshelp.com/

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