Have any of you guys heard of www.score.com ? It’s a non-profit organization that networks small business owners to people who volunteer their time to coach small business owners. You basically sign up, look at a big list of volunteers, and pick the one you’d like to talk to based upon that person’s experience. You basically look at the person’s resume. Then you communicate with the person via email or phone, and ask them whatever questions you may have. Most of the volunteers are retired business people looking to help out others, its really a great resource. another great website is www.sba.gov its the small business association. its got a lot of great info.
Have any of you guys used SCORE before?
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I did. The Service Corp Of Retired Executives, is an SBA program. Very good.
I had a Biz plan to get $$$ for an adventure off the ground, but they'd not loan me less than 100K, and for each 20K IIRC , I would have had to create one full time employee. I also only wanted 20K, but they'd not waiver.
SCORE has some real good benefits for the hows and whys of the SBA, and this was back before email was an option, I am sure it has only gotten better.
Duane,Tell me a bit about the SBA loan situation, can you?SamT
Sure Sam, I have a minute before I need to head out.
In about '87-88, I was making those wooden sno-flakes. I mean MAKING them, I could produce upwards of 500-600 a DAY. My cost worked out to 1/10 of 1 cent each. I was selling them like ice cubes in hell, for 2.00$ each, discounts for quanity over 100 etc.
Finally decided to really market them...needed packaging equip., Help, and more production machines. I had prospective buyers that wanted freaking container loads to ship overseas...we are talking millions of product pieces.
One company ( Harriet-Carter IIRC) was willing to front me about 500K start up $$$. Being a tad wary of biting off more than I could chew ( and a sixth sense I would have a divorce in the up coming years) I chose to seek other funding, with out the strings attached.
So I contacted the SBA. Generated a biznezz plan with the help of a SCORE rep. and filed it. I was accepted for the 100K minimun that they'd provide ( I don't recall the interest% or pay back schedule, but 5 yrs sounds like the yrs. I had to repay), provided I created x amount of full time jobs.
This was a bit more than I felt comfortable with ( kick myself in the azz NOW, tho') so I declined it. I then went to my local bank and secured a line of credit for 50K, easy as just showing them the product ( hell, I sold a gross to the loan officer, that day) and explianing my "plan" .
I stuck it out and never used the credit over 8K at most, bought shrink wrap tunnel and pasteboard precuts, printed backing sheets, and began flooding the market in and around SE Pa.
Did pretty well, pulled in 11k in one memorable month..but the wear and tear started to get to me, I was operating alone..manufacture, sales, packageing.....uuuughhhh.
I went slowly into a "crash and burn" , I got sick of looking at the damm things, I just burnt out.
Thats about it. I stillmade a few each yer ( a few is a a couple hundred) as gifts and small sales in specialty shops..but full scale packaged products were not in the plan any longer.
When I moved to NC ( after that divorce I saw coming) my shop was lost in a fire, set by a maniac on Coke and Michelob instead of his Lithium...I lost almost everything, including the packaging and equipment to package..I had no insurance either.
So, all in all, I am glad I had enough sense to not get the SBA funding, and get the biz really going, cuz the ex would have it now.
When times got real $$$ scarce, I always could crank out sno-flakes, it was like printing money.
If you use them, dont get discouraged if they dont help you the first time.
My first time was a bust. Most are very knowledgable.
ALL (not most) of the SCORE guys are retired, at least the ones that I've met with. It's a great resource. I met with my guy in person the first couple of times at a local library. Lately, we meet for coffee once in a while. He had no construction industry knowledge, but a whole career worth of general business stuff. It's likely that you may not find someone who did exactly what you do for a living but there's a lot more to this industry than banging nails. If you don't click with the first guy you meet with, you can keep looking for a better match. Nothing ventured, nothing gained.
Also, check to see if there are any Microcredit groups in your area. That's another great business resource that is almost free (my local group charges $2/month for dues).
I have done it twice.
The first time did not produce much( maybe 15 years ago)
second time( last summer)---was MUCH more helpfull----by that time i had a lot more business experience my self----and much more specific questions and problems to bounce of the counselors head!
Basically I am interested in targeting a specific neighborhood and demographic----SCORE matched me up with a man whose family owns a gourmet food market right in the middle of my intended customer base( the market is pretty consistently ranked as one of the nations 10 best specialty markets)----he knows the clientelle inside and out.
in addition to being something of a local business legend and a guy I would certainley never have met any other way----he was actually interested and helpfull----providing insights into a cultural and economic mindset I would not have been quite aware of.
frankly i am a little star struck with the guy--------because loooong before the meeting he had actually been something of an inspiration for me. I try to steal good ideas from other industries and apply them to my own little mom and pop operation----- i mentioned this at our meeting and Russ remarked that he does the same----he said if you copy an idea from one other company-------that's "stealing an idea"----but if you copy ideas from 10 other companies-----it's " market research" !!!!!
anybody who can turn essentially a mom and pop corner grocery store into a luxury market where people stand in line to pay $4-5 for a can of tomatoe soup------and where people drive in from out of state to shop the wine department------well that's a guy who can directly teach me a thing or two about marketing,consumer psychology, and giving back to the community
he is marketing mundane products(groceries)at a premium price----and I try to do the same thing with MY product( roofing)----through much the same techniques
actually---thanks for reminding me---- i want to meet with my guy later this fall when things calm down a bit( if they EVER calm down)
Stephen
One thing that I didn't mention in my post was the fact that one of the most important things that my SCORE guy taught me was that success in just about any business was highly dependent upon the owners willingness and ability to network. It is the least expensive and most effective form of advertising.
RedfordHenry,
both of the guys i met with offered to introduce me to some other folks they felt might have helpfull info for me------and for several reasons i did not follow through at the time
probably a big mistake on my part
in person---i am not a social animal----and have a pretty narrow comfort zone.
ironically-----last week i finished a project in my newly targeted neighborhood(cedar shingles on a sidewall)----most of the time I was working their I was afraid I had somehow pizzed off the homeowner and his wife----they really wouldn't talk to me-----in fact on saturday the homeowner worked 15 feet away from me all day on his own project---- i doubt we spoke 100 words all day
but after completion they mailed me a check with a GLOWING letter of satisfaction offering to be a reference anytime
so----perhaps i should expand my comfort zone.
unfortuneately---- i am now booked rock solid untill next may replacing hail damaged roofs in my usual neighborhood------and won't really be able to develope business in the newly targeted area
effing hail storm sets my plans to retire from roofing back about 24 months
stephen
I have met with two different councelors.
The first one was 16 yrs ago when I first started. As a small self-employed we had little in common, as he had run a commercial sheetmetal shop with over 200 employees. We only met once, he sort-of reviewed my business plan, and asked a few questions, but that was it. I was his first match.
I did get two statements from him that I should have paid more attention too: 1. "You will have higher highs and lower lows than you ever thought possible." 2. "Your projections for billing 35 hours a week are probably not realistic as a start up. You should probably use more like 20 billable hours."
Funny thing is after a couple of years of struggling, I actually started to track my billed hours and came out to averaging just under 21 for a year. So i changed my rates, and considered a lot more of my time "billable" when doing projects, but pizzed away 3 years before figuring that out.
The second time was maybe 3-4 years ago. Different guy, met once, and that was before I had re-written my business plan. I was looking to generate more leads, and wanted some input. It was not productive. He had run an engineering and design company.
When I got the name of the guy I would meet with, I was doing a kitchen for someone with the same last name. Without saying how I new him, I asked my long time customer if she new this guy. "Know him???? He is my weasel jackazz brother in law" Then I got an earful of bad-blood type stories. So my experience may have been tainted off the bat.
SCORE does put on small seminars maybe every other month and I have gone to some of them. Some good, some less than worthwhile. Like someone else mentioned I went to practice networking.
I think the SBA sponsors an extention of the University here. I had been matched with a councelor, but her basic focus was only marketing that didn't work for me. However by being associated with the program I was able to attend some other full-day seminars that they put on. Those cost $125 each, and that was 15+ yaers ago, but were worth it.
Bowz