1. HOME
2. ABOUT US
3. SERVICES
4. RESOURCES
5. CLIENTS
6. FAQS

Frequently Asked Questions

1. How do I start a small business?
2. Where can I get money to start a business?
3. Can I get a grant?
4. How much money will I need to start?
5. How long will it take to start a business?
6. What kind of business should I start?
7. What is a business plan? Do I really need one?
8. How much does the SBDC at Blinn College charge for its services?
9. I'm not in your area of service. Is there an SBDC office near me?

Q: How do I start a small business?

A: Begin with a feasibility study that answers these questions:

• What is it I am going to do?
• Is there a market for my product or service?
• What will it require in money and skills?
• What will it give me in terms of money and satisfaction?

For help in developing a feasibility study, CONTACT US.

Q: Where can I get money to start a business?

A: Three out of four new business start-ups use only the owner's or owners' savings. Here are a few other options:

• Some start-ups can borrow from banks, but it is difficult. You must have a good equity investment--in the 20-30% range--and you must have a sound business plan.
• The SBA (Small Business Administration) will guarantee a bank loan for a new start-up or expansion that encourages banks to make small business loans. The SBA also has requirements for equity and business plans.
• Personal and business credit cards can provide money for a business, but it comes at a high cost. It is recommended that credit cards be used sparingly and only for short term needs.
• Relatives and friends often can provide money, but be careful! Mixing business with family relations and friendships can be risky. You are encouraged to keep such lending relationships as business-like as possible.
• Mortgaging personal assets and borrowing against cash value life insurance can also be a source of start-up money.
• Finding investors who will contribute money in return for partial ownership in the business is occasionally possible. These types of investors are often referred to as "angels" and the money they provide is called "angel-capital".
• Venture capital is another possibility, but usually not for amounts of under $1-3 million. These are organizations or individuals that pool their money to buy into high-growth start-up businesses.

For help in finding financing for your business, CONTACT US.

Q: Can I get a grant?

A: Contrary to popular belief, grants of cash for business are virtually non-existent. There are rare instances where a cash grant has been given for some highly specialized type of business or for an unusual situation, but for the great majority of business situations, there are no cash grants.

There are many government grants designed to assist business, but these usually don't go directly to the business. Instead, they go to agencies and organizations that perform some service for the business or benefit business in some way. The Small Business Development Centers throughout the United States operate partly on a grant from the federal government.

The books and late-night television infomercials that tout government grants for business are usually exercises in cleverly misleading information. Read the fine print carefully and "buyer beware."

For help in finding financing for your business, CONTACT US.

Q: How much money will I need to start?

A: Money used to start a business is called capital. You will need two "pots" of money. One is to pay for the things you need just to get your new business started. This is called starting capital. The other "pot" of money is to pay your operating costs until you begin to make a profit. This is called working capital.

For help in figuring a dollar amount you need for capital, CONTACT US.

Q: How long will it take to start a business?

A: As long as it takes you to complete your feasibility study, prepare your business plan, gather together your money, buy what you need to buy, and arrange your business operation affairs. This could take several weeks or months. If you have difficulty with any of these items, the time to learn and to solve problems must be added.

It is critical that you not allow your enthusiasm or your desire to get started to push you into business before you are ready. Premature starts are a common reason for small business failure.

For help in deciding if you are ready to open, CONTACT US.

Q: What kind of business should I start?

A: Choose a business activity that you will enjoy doing. Look at your interests, hobbies and aptitudes. What are you good at?

Make sure that the product you want to make or service you'd like to provide will have a market. There are a lot of small business start-ups that are doomed from the beginning because there simply are not enough customers wanting that particular product or service. If you look in the back of some magazines, you will find many products and services being offered as potential businesses for which there is very little market potential.

For help in determining the market potential for your idea, CONTACT US.

Q: What is a business plan? Do I really need one?

A: A business plan is a road map for your business. It tells what it is, where it is, how it operates and whom it serves. It includes information about your customers, your employees, your policies and you.

The numbers that make up a business plan are especially important, for they translate the anticipated activities of your business into the language common to all businesses. If your business plan will be viewed by bankers or other financial types, your income statements, balance sheets and cash flow statements will take center stage. You will use them to paint a picture of your business's near-term financial future.

For a BUSINESS PLAN WORKSHOP or help in creating a business plan, CONTACT US.

Q: How much does the SBDC at Blinn College charge for its services?

A: Our counseling service is available at no charge. There is a small fee for most of our training workshops and seminars.

To arrange for counseling or register for a workshop, CONTACT US.

Q: I'm not in your area of service. Is there an SBDC office near me?

A: There is a network of Small Business Development Centers across the United States. You can find your local SBDC through the Association of SBDCs' website. Type your zip code or state in the "Search By" field and click on the Go button. A nearby SBDC office should be listed in the the results.

These are a few of the questions we are most often asked about starting a new business. We are eager to help you find answers to all of your business questions.