There Are No Dumb Questions

Before starting any business, first ensure that the idea is feasible. Creating a comprehensive business planning packet is a great first step. In doing so, you will ensure that all of the necessary pieces are present to be successful. Once you determine your idea is feasible, look up federal, state, and local requirements for the business type. View our License, Permit & Tax Requirements for Arkansas Small Business Guide, or attend one of our upcoming ASBTDC training events. You can also check out archived events on our YouTube channel to start preparing right now.

Business planning packets vary by project type. In general, a business planning packet includes a business plan narrative, a comprehensive set of financial projections, and supporting market research. In some cases, historical business information may be important to include (i.e. tax returns, profit/loss statements, a current balance sheet, etc.). We encourage you to reach out to your local ASBTDC team to discuss your specific project with one of our small business advisors.

The most successful entrepreneurs are great at identifying a problem they can solve or an opportunity they can capitalize on. While the ASBTDC cannot instruct you to start a business within a particular industry, our team of market researchers can help you better understand your local market and assess the need for specific products or services. Our team of small business advisors encourages startup clients to consider their skills, knowledge, and expertise when exploring options.

If you are successful in your first location, we encourage you to examine the attributes that led to that success. Do you get a lot of vehicle traffic? Are you near complementary businesses? Are you embedded within a residential area? Do you have easy access to major roadways? Once you determine the factors at your current location that have led to your success, seek out similar properties in the area where you want to expand. Our market researchers can help… Reach out!

Hiring the first employee can be very nerve-racking! Start by examining your business’s needs. Which skillsets are most important? Which knowledge bases will best complement your own? After determining your needs, work to draft a detailed job description and include the required skills and knowledge. In some cases, it may make sense to enlist the assistance of an employment agency. Finally, setting clear expectations that align with the company culture and customer needs are key to finding long-term employees.

Most businesses want to attract more customers, but strategic business owners want to attract profitable customers. ASBTDC small business advisors encourage clients to first examine their existing customer bases and determine “who” generates larger returns on investment. When defining your target market, think in terms of demographics (age, gender, race, household income, etc.) and consumer behavior (spending patterns, likes and dislikes, etc.). Once you thoroughly define your target, work to position your marketing messages to get in front of that specific target audience.

Yes! Our small business advisors can work alongside you to better understand the financial position of your business in the past, present, and future sense. Additionally, our high-powered market research can benchmark you against your peers. Taking a look at where you’ve been, where you are, and where you’re going, our small business advisors can help you set realistic goals and aid in tracking your progress.

To our knowledge, there is no grant money available for starting a small business. In some cases, grants may be available for existing small businesses, usually for very narrow purposes, such as providing a lunch program for a day care or encouraging research and development for technology businesses. Most small business owners have to look to personal resources and loans to finance their small business. Nonprofit, 501(c)(3) organizations are the most likely candidates to receive grant monies.

Unfortunately, the ASBTDC does not provide financing for small businesses. Our team of small business advisors help prepare clients to obtain financing to start or grow their businesses. Our team is well-connected with traditional and alternative lenders throughout the state. Reach out to your local ASBTDC team to get started.

The length of time needed to obtain financing from traditional and alternative sources varies from project to project and person to person. Factors including loan size, complexity of the project, and participation in guaranty programs may affect the length of the application and approval process.

The term “bankable” describes people who have sufficient cash, credit, collateral, and capacity to accomplish the capital access goals for their small businesses. Generally, traditional and alternative lenders require borrowers to have “skin-in-the-game” to show their commitment to the project.

Not likely. If you have poor credit you will need to seek an alternative source for capital: personal savings, family/friends, or owner financing. We encourage you to take action to improve your credit situation today to be bankable in the future.

Yes. At a minimum, banks want small business owners to inject personal savings, aka cash, into the project. As a rule of thumb, lenders expect the small business owner to put 10% to 30% cash into the small business project, leaving the lender to fund 90% to 70% of the project.

Yes, but remember the assets you purchase with loan proceeds can be pledged as collateral on the loan, and SBA guarantees can mitigate collateral shortfalls. 

ASBTDC small business advisors work with businesses of different sizes, at different phases, across all industries, and through all challenges. Our advisors have seen it all, and are ready to help! We take a strategic approach with every client, working to accomplish goals and solve challenges. Our statewide presence and investment in professional development ensures that we “have an expert for that”!

No one knows your business idea better than you! Therefore, ASBTDC small business advisors do not write business plans for clients. However, we have templates to get you started, and we offer comprehensive reviews of business plans to help you perfect yours. For a business plan narrative template, take a look at our To The Point Business Plan Outline.

ASBTDC small business advisors are committed to helping clients be successful. For some clients, the preference is to meet more often. For others, an initial meeting allows the client and advisor to lay the foundation for the work to be done and fewer meetings are required to accomplish goals. Projects are based on a scope-of-work and tailored to individual client needs.