Wisconsin SCORE: An Overview 2016 LENDERS CONFERENCE ALL THE PLAYERS. Foster vibrant small business communities through mentoring and education.

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1 2016 LENDERS CONFERENCE ALL THE PLAYERS ALL THE PLAYERS Panel Members Dave Maaske, SCORE Luke Kempen, SBDC Wenda Roycraft, Lincoln Opportunity Fund Mike Hetzel, WWBIC Dave Kircher, WI Minority Chambers Patrick Drinan, WEDC Justin Kirking, USDA / Rural Development Moderators Rich Diemer, WBD Wisconsin SCORE: An Overview Mission Foster vibrant small business communities through mentoring and education. Vision Every person has the support necessary to thrive as a small business owner. *Source: Gallup & Price Waterhouse Cooper SCORE Client Outcomes Survey

2 Small Business Huge Impact In 2015, SCORE helped Create over 53,000 new businesses (655, WI) Create over 65,000 new jobs (932, WI) Over 40,000 businesses with increased revenue Small Business Huge Impact SCORE offers over 10,000 volunteer business mentors including more than 220 in Wisconsin Small Business Huge Impact SCORE has over 300 chapters across the nation including 7 in Wisconsin 2

3 SCORE Wisconsin County Coverage SCORE Capacity By Location Location Mentors Small Businesses Total Services SE Wisconsin (Milwaukee) ,066 3,980 Madison 38 84, Western WI (Eau Claire) 10 62, Fox Cities (Appleton) 51 44, Wausau 5 28, Green Bay 30 36, Central Wisconsin (Marshfield) 17 18, Total Wisconsin District ,357 6,890 Who Are SCORE Clients? Pre- Startups 31% Startups 31% Firms in Business for a Year or More 38% Opening Growth Research & Planning 3

4 Why SCORE Works You Don t Have to Go It Alone Free Mentoring provides improved chances for startup and success through one-on-one business coaching and access to a national network of experienced volunteers. Workshops provide training on critical topics in an environment where you can learn from experts and likeminded entrepreneurs. Online Resources can be your playbook to provide step-by-step outlines for small business strategies. Mentoring Free. Personalized. Confidential. Expert Advice For the Life of Your Business Every SCORE chapter offers expertise in a variety of fields and industries. The national network of 10,000 mentors provide co-counseling in virtually every industry. Virtual mentoring is available from the national network at Who are SCORE Mentors? Men and Women Both Retired and Working Diverse Successful Business owners and Corporate Executives Real World Experience Trained and Certified in mentoring 4

5 Workshops Free, Low Cost and Face-to-Face Over 150 Sessions in WI Programs for Start-Ups Programs for Existing Businesses Internet Marketing and Social Media Online Resources FREE Templates. Tips. Blogs. Workshops. Tools for Business Success Available 24/7 Get access to over 1,800 templates & tools, 1,000 blog posts, and 100 LIVE webinars/workshops to help you start and grow your business. Templates & Tools - Articles, assessments, outlines, templates, and other resources that you can use to learn and implement new strategies SCORE LIVE Webinars - Live,1-hour presentations by mentors and partners on a variety of small business topics and trends Online Workshops Over 260 archived business training modules on score.org National Mentor Access Searchable national mentor database to match clients with mentor profiles Conclusions SCORE has the potential to impact many more small businesses in Wisconsin, creating growth and jobs. SCORE s experienced local mentors and national network provide great value. Local mentors, chapters and branches complement other development organizations bring SCORE resources to entrepreneurs. 5

6 Thank You Wisconsin Small Business Development Center Network Luke Kempen, CPA Director, Wisconsin SBDC at UW Eau Claire Wisconsin SBDC Network Four Regions 11 Service Centers Statewide network supporting entrepreneurs and business owners through no cost, confidential consulting and educational programs. Local SBDC experts facilitate improvement and growth for small and emerging mid size companies and help launch successful enterprises. 6

7 Wisconsin SBDC Network Funded in part through UW Extension and a cooperative agreement with the U.S. Small Business Administration. Partnered with UW System Campuses leveraging resources and expertise. Core SBDC consulting services Lean Startup & business planning Finance & capital access Marketing & sales growth Financial management Management, operations & strategy Wisconsin SBDC Impact 2015 Over 2,300 clients served Clients made over $66 Million in capital investment in their businesses Assisted 213 clients launch new business ventures 7

8 Two Service Paths Start Up Companies /New Entrepreneurs Referrals and Requests for Consulting Second Stage Companies Been in business and looking to take the next step/go to the next stage Typically 2 50 employees Start ups and New Entrepreneurs Entrepreneur Training Program (ETP) 8 12 week program to evaluate a business idea, develop a business model and write a business plan One on One Consulting Business model, business plan, marketing and financial projections Referral to other resources and partners within the SBDC network Referral to other resources outside the SBDC network Second Stage Companies Companies with 2 to 50 employees looking to expand or go to the next stage. Typically are seeking capital to expand and grow Typically do not have expertise on staff to work through financial analysis and projections Often do not understand the process Often not aware of financing alternatives available to them Often not aware of other resources available Often need help with marketing and assembling a management staff to support growth 8

9 Second Stage Companies Capital Infusion In 2015 the Wisconsin SBDC Network helped clients secure over $66 million in capital investment into their businesses. Referral sources to the SBDC include Local economic development corporations and entities Past clients/word of mouth Bankers Second Stage Companies One on One Consulting Business plan and financial projections Financial management issues Marketing consultation Strategy and other issues Referral to other resources and partners within the SBDC network Referral to other resources outside the SBDC network What we do to assist with capital investment Ask questions Educate client Facilitate the process Discuss revenue scheme Talk through staff needs Counsel on gathering information Prepare financial projections Set the client up for success! 9

10 Financial Projections SBDC Template 3 Years Historical Statements 3 Years Financial Projections Sources and Uses of Funds Statement Income Statement, Balance Sheet and Cash Flow Year 1 Monthly Year 2 and 3 Annual Supporting Schedules Revenue scheme and details Cost of Goods Sold details Employee/Staff schedule and details Loan amortization schedules Resource Partners with the Wisconsin SBDC Network Other Wisconsin SBDC Network centers Wisconsin Innovation Service Center UW Whitewater Marketing and market assessment Manufacturing Outreach Center UW Stout Center for Technology Commercialization Madison Wisconsin Law and Entrepreneur Clinic 10

11 SBDC Tools Foundational Tools 1. Business Model Canvas/ Lean Start up 2. Live Plan Business Plan Software 3. Wisconsin SBDC Financial Template for Financial Projections Other tools GrowthWheel PROBE assessment tool Many others Thanks to our valued partners! Funded in part through a cooperative agreement with the U.S. Small Business Administration. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. Overview All the Players 11

12 34 What is the WBD Advantage Fund? Certified as SBA Community Advantage Lender Designated as SBA Microloan Intermediary CDFI Community Development Financial Institution Operate in markets underserved by traditional banking industry Disadvantaged small business focus Financing products Development Services 35 Programs & Services SBA Community Advantage Loan Program SBA Microloan Program CAP Loan Loss Program Direct or Referral Technical Assistance Support Minority Chamber Underwriting Support 36 12

13 Purpose Job creation & retention mission Other economic development activities Strengthen strategic & client partnerships Increase SBA 504 loan project activity 37 Program Parameters Loans up to $250,000 SBA program standards Credit underwriting risk outside traditional bank lending policy Technical support low to moderate need Collaborative financing package Potential to graduate to traditional bank relationship 38 Process Direct outreach or referral activity Pre qualify prospective applicants Potential ideal applicant or referral network opportunity Loan application process Loan structure proposal/acceptance Loan approval process internal/sba 39 13

14 Wisconsin State wide Service Area 40 Accomplishments Total loans originated SBA CA 9 loans/$1,183,500 SBA Microloan 13 loans/$358,465 Approved loans created or retained 56 jobs National CA production ranking: 22nd in Units (7 loans) 25 th in Dollars ($961,500) 41 Team Members Wenda Roycraft, President wroycraft@wbd.org (920) Vicki Stone, Community Lending Manager vstone@wbd.org (920) Jeff Sheffler, VP WBD Loan Officer jsheffler@wbd.org (920) Robbie Secker, Loan Servicing Specialist rsecker@wbd.org (920)

15 Empowerment through Entrepreneurship Michael W Hetzel Director of Lending WWBIC Wisconsin Women s Business Initiative Corporation ( WWBIC ) Who We Are: A leading innovative statewide economic development corporation Putting Dreams to Work since Who We Care About: Individuals who face barriers of traditional means. Wisconsin Women s Business Initiative Corporation ( WWBIC ) What We Do: Open doors of opportunity by providing targeted individuals who are interested in starting, strengthening or expanding businesses with access to necessary resources and tools such as quality financial and business education, and responsible financial products 15

16 Job Creation Social Goal and Indicators Higher Credit Scores Improve the economic wellbeing of targeted individuals by building assets and advancing selfsufficiency. Businesses Started, Expanded, Strengthened Increased Assets Increased Individual Income WWBIC -Impact -Jobs Microbusinesses compromise 85% of all business in Wisconsin (462,000) and employ large numbers of individuals* If each microbusiness in the United States would simply hire one more individual- we would be at full employment in our nation! *Association Enterprise Opportunity 16

17 WWBIC s Mission Our Primary Services Business and Financial Education Programming Micro and Small Business Loans One-on-One Business Technical Assistance Financial Capability Programs and Individual Development Accounts (IDAs) Entrepreneurship as an Employment Option Utilize existing skills & talents Satisfaction, success and personal ownership in self-employment It s already working! 17