General Information

What's the difference between the SBA and the SBDC?

The U.S. Small Business Administration (SBA) is a federal agency that connects business owners with financial resources, organizational tools, business development, growth strategies and counsel, and disaster assistance.

With our help, businesses can fulfill their mission, thrive in various economies, and succeed in their goals. SBDCs are at colleges and universities nationwide and offer one-on-one, no-cost, confidential counseling and low-cost workshops.

SBDCs are part of the nationwide Association of Small Business Development Centers (ASBDC). The Idaho SBDC is funded in part by the U.S. Small Business Administration (SBA). Matching funds come from the state of Idaho, partner colleges and universities, and contributions from other sponsors throughout the state.

When you contact the Idaho SBDC, an experienced business consultant will guide you in your business development, no matter what stage you are in. Certified Business Advisors are on staff to provide entrepreneurs with business assistance and tools to aid in their success – at no-cost to your business.

Not only do we help businesses starting, growing, or selling and closing. We also assist established businesses and offer training and one-on-one guidance on a variety of topics, including:

Business planning

Financial analysis

Web development

Legal contracts

Marketing

Accounting

Cash flow projections

Business feasibility

If you are interested in setting up an initial appointment, please complete our online client registration, click on “Contact Us” below, or click here.

No! The SBDC business counselors are with you every step of the way. Whether you’re just starting, maintaining, growing, or exiting your business, we can help you succeed. We can also help with the buying or selling of businesses.

Every day, small to large business are reaping the benefits of SBDC expert assistance. Grow with us.

You can set up an appointment by calling one of our regional office or visit our Twin Falls SBDC registration page. Otherwise, click “Contact Us” for our address, phone number, and email.

Each consultant sets their own hours. Contact your consultant directly to schedule a meeting. They may schedule a meeting via Zoom as well.

Business Certifications

Certification is useful only when pursuing federal and state contracting opportunities. You may qualify for certification as a disadvantaged business and you can even self-certify by indicating your status as a minority, disabled, or veteran-owned business in any of your marketing materials.

Find out how to qualify and learn more about state or federal contracting programs by contacting Idaho PTAC (Procurement Technical Assistance Center).

Managing Business

As a client, you have access to our many resources to help you identify new customers and revenue streams. We use the Business Model Canvas, Lean Launchpad, Profit Mastery, Reference USA, and various databases to help you develop a growth plan, reduce costs and increase efficiency.

One needs to look no further than the newspaper industry today to realize that even the most notable business models need to reinvent to survive. Successful companies change their catalyst for growth. Understanding your industry and the direction it is going is key to successfully reinventing your company and planning for change.

You need to identify your business assets, core values, and competitive strengths. With that knowledge, you can build a toolkit that will reinvent the way you manage your business while adjusting for change. If you haven’t already, apply to work with an SBDC business advisor, for free, to guide you through the next stage of your business.

You can set up an appointment by calling one of our regional offices or visit the registration page.

Startup Information

You will be your own most important employee, so an honest appraisal of your own strengths and weaknesses is essential. Some questions to ask yourself are:

Am I a self-starter?

How well do I get along with a variety of personalities?

Can I make tough decisions objectively?

Do I have the physical and emotional stamina to run a business?

How well do I plan and organize?

Are my attitudes and drive strong enough to maintain motivation?

Can I afford to start a business?

How will the business affect my family and are they supportive of the time and financial commitments?

Think of the four entrepreneurial Cs:

Control of your time and income.

Creativity in your profession.

Cash on hand and the possibility to create more than a regular paycheck.

Challenges to embrace.

If you can have a positive feeling or response to these AND you are willing to withstand risk and potential failure, you may have what it takes to be an entrepreneur.

The basic skills include:

Product or service knowledge as it relates to your business

Record keeping

Financial management, including breakeven analysis

Personnel management if you have employees

Marketing and market analysis skills

Legal structures

Federal, state, and local taxes

Communication skills

Besides these technical skills, it is most important to have a willingness to learn, adapt, and make adjustments in a timely fashion.

Usually, the best business for you is the one in which you are most skilled and interested. As you review your options, you may wish to consult local business experts, such as an SBDC counselor. Do your market research, both locally and nationally, to understand the growth potential of your business idea. Matching your background with the needs of the local market will increase your chance of success.

It depends on how long you take to complete your feasibility study, prepare your business plan, gather your money, buy what you need, and arrange your business operation affairs.

This could take a few weeks or many months. If you have difficulty with any of these items, you must add in the time to learn and solve problems.

One of the most important things to do before starting your own business is to complete a feasibility study. You must research your business idea to ensure it has a favorable chance for success, that it will meet your expectations, and will provide an adequate reward for the risk involved.

It is wise to validate your beliefs about your business concept through research and careful planning, because you will not have time to do it once you start your business.

The type of business license you need depends on the type of business and profession you have. For example, a plumber or a cosmetologist needs a professional license in Idaho, but a retail store does not. Some municipalities require business licenses and some do not. Your city clerk can tell you if you need one and we can help you sort through the licenses and permits (such as a sales tax permit) required.

Please Note: Licenses also differ depending on the type of legal entity you choose for your business (e.g. LLC, sole proprietor, C Corp). You need to register your entity type with the Idaho Secretary of State before you apply for licenses and permits.

When starting an online business, we suggest you treat it exactly the same as a brick-and-mortar business. Start with research and planning.

Is there a market for your products or service?

Do you have experience working with the audience you want to attract?

What value are you bringing your potential customers?

How are your competitors doing, and what are they doing to attract online customers?

What startup expenses will you have? Do you have the technical skills needed to manage an online marketplace or can you learn them?

Do you have reliable high-speed internet service?

If you answered these questions and would like to move forward, make an appointment with an SBDC consultant to discuss your idea and plans.

Business Plan

Any business needs to have a competitive advantage and value proposition to compete in their industry. A business plan can act as a guide to stay on track as you define your mission, vision, values, and goals. A business plan describes your business, identifies your goals, and serves as your firm’s resume.

Check out our business planning training and workshops.

The business plan details:

The products and services you will sell

Your ideal customers.

Production plan.

Company management.

Marketing activities.

Projected profit or loss.

The business plan is a valuable tool that helps you make better business decisions that can affect your future.

Completing your plan doesn’t have to be overwhelming!

With our open-style collaboration, workbooks, and resources, you will have everything you need to craft a living document that grows with you and your company. With a well-written business plan you have:

A tool to examine future decisions regarding management, marketing, personnel, and finances in a realistic and organized way.

A projection of the sources and uses of financing needed for start-up or change up of your business.

A cash flow projection for certain types of businesses and a plan for securing capital.

An owner’s manual guides your daily operations and activities.

Existing businesses, as well as start-up firms, benefit from writing and regularly updating their goals, plans and activities. A well-researched and written business plan is especially essential when seeking funding.

While we can’t write the plan for you, the SBDC will assist you in developing and reviewing your business plan.

We offer workshops and online training courses that will assist you in writing your business plan.

Creating the plan causes you to look in-depth at your business, what you’ve accomplished, and what you are building. Writing the plan yourself forces you to think through issues that you may not have considered. After all, you know more about your business than any outsider. However, meeting with an SBDC consultant can help you avoid pitfalls in the planning process.

Start by jotting down:

Your products and services.

Who your customers are.

What you need to have in order to get where you need and want to be.

Where you will market and advertise your business.

Your current income and expenses.

You can also write your thoughts, plans, and ideas regarding:

Your business structure.

Your customers and the value you provide.

What your goals are.

What you would like to achieve.

Ideas on your business’s mission, vision, and values.

By working through your thoughts, you will foster a personal connection to yourself, your business, and your customers. With the assistance of an SBDC consultant, we can help you formalize the document and get it ready to present to investors.

Start with analyzing your competitors. Understanding who they are, what makes them successful, and how you can set yourself apart will help you in your planning and give you the competitive edge you need.

The data you collect on your industry, product, and market will provide you with vital information on how to navigate and strategize your business decisions and set you up for success. A solid business plan paves the way to success.

Some data you will want to research includes:

Industry growth projections

Employment opportunities

Factors that affect your business

Local industry and business trends

Demographics and customer segmentation

Financial statistics and costs

Industry trends and insights

Your SBDC consultant can help you get a variety of information from SBDCnet, IBIS World, and other databases that could be helpful. It will also benefit you to look at your own statistics and start building a database. You will probably need to secure vendors for supplies, service providers, and investors. Identify their costs and your expenses to give you a better idea of cost flow.

We have planning templates and samples that will help you document everything and work it into your business plan. Once your drafted plan is complete, your business consultant will review it and offer feedback.

Schedule your planning session today!

There is no way to gauge the time it will take for you to develop your business plan and secure financing.

After gathering your research and compiling your information, have your plan examined by your business consultant. They will carefully analyze the information you’ve gathered and help you get it ready for financial review.

The time this process takes is determined by the amount of work you put into it. There is no one right way to write a business plan, but investors will look at certain factors to determine feasibility and return on investment.

The Idaho Secretary of State handles the registration of business names and can help with organizational structure. While you do not have to be registered to operate an independent business in the state of Idaho, it is something that can affect your legal liability, taxes, and other important items.

Consult with your accountant and attorney before choosing a business structure. They will help guide you in researching whether you should set your business up as a sole proprietorship, Limited Liability Company (LLC), partnership, or corporation.

Visit with your consultant first and start the process by researching legal structure. After getting an idea of what each entails, you can have an educated conversation with an attorney and a CPA.

One thing to keep in mind, the higher your personal net worth, the more protection you will need, so your business structure may need to change.

The Business Model Canvas is a great visual tool to chart business elements that describe your business’ products and/or services. You can quickly sketch out plans for a successful business, the value you give customers, organization of revenue sources, thoughts and ideas, and much more.

This is a visual map and strategic management tool all in one, as it can help define and streamline your business.

Another important part of your business planning includes preparing a feasibility study.

This document serves as evidence that your business is profitable, or at least workable for profitability.

You will want to give facts and projections that outline possible future scenarios for your business, what will drive change, and foster success. It will also give you an idea of whether your proposal is likely to succeed and the opportunity to make strategic changes that will better serve your business.

A business person or investor will look at probable outcomes before significant spending, so make sure you have the best data you can to prove their investment is worth the risk.

These studies vary in length as they contain details about cost of production, pricing of product, technical prospects, launch scheduling, and many other factors regarding projections of expenses and revenue, the operation of the business, growth prospects, and proof of success.

There are many templates and study examples. Work with your consultant to determine how to hone in on the important pieces of this study.

When pursuing business development, it is easy to get carried away in the big picture and you can quickly lose sight of your goals and strategies, resulting in a chaotic mess.

By defining your business, you can focus on your goals, financial investments, and the value your company brings. Your detailed description of the solution your business provides can reveal potential untapped markets and help you determine exactly what your business purpose is.

The length of these definitions can vary depending on the complexity and uniqueness of your business. You’ll first need to determine exactly what type of business you have.

Do you want to sell?

Do you want to create?

Do you want to provide solutions?

Ponder what you seek to provide from your business and analyze your profit and cost margin.

For example, a watch shop owner was in the business of selling and repairing watches. After analyzing his operation, he realized he spent most of his time repairing watches while most of his money went to expenses.

He finally decided he was in the repair business and discontinued the sales operations. As a result, his profits improved dramatically. By defining, strategizing, and narrowing the focus, your business will provide much better services and production as well as operate more efficiently.

Yes.

Every business should have some element of insurance. This is the only protection business owners have from litigation. To understand your risks, consult with an insurance agent. The agent can also give you quotes to help you develop accurate cost projections.

Typically, the insurance of a small business owner will need to consider are:

Liability

Property

Worker’s compensation

Bonding

For more information, contact your business consultant and read more on insurance.

Cash Flow Management

Absolutely. If you’re worried about your cash position or wondering whether you’re going to be able to pay your bills later this year, then it’s time to do a cash flow and profit plan projection.

A profit plan and cash budget forecast will help you make sure you keep enough cash on hand to pay bills, meet payroll, and plan for one-time expenses such as equipment purchases or tax payments in the coming months. Ultimately, it will help you sleep better at night. If you haven’t already, make an appointment to work with an SBDC advisor on these crucial steps.

Financial projections are estimates of the financial future of your business. Creating financial projections is an important step in determining the feasibility of your business. To ensure sufficient cash is available for operations, you must be aware of your business’s current and future financial position.

Additionally, financial projections are a critical part of your business plan and/or loan proposal. Although the numbers are based on estimates, do not consider such projections as “a guess.” Research plays an important role in accurately determining future sales and costs. The projections serve as a basis for planning and are likely to change as more information becomes available. Creating financial projections may seem intimidating. It is important to remain conservative as you develop them. In other words, understate revenues and overstate costs.

Research your industry, look for trends you may be able to take advantage of, look at the past, figure out what you might do differently going forward, look at details, test the market, and look at your social media presence. Be the most informed person possible on the subject of your business.

Your SBDC consultant can help with the process. Keep your notes because if you apply for funding your banker may want to know how you came up with specific numbers.

Business Accounting/Budget

Yes, we can help. Our advisors are able to review your financials and credit situation to help you develop a strategy to consolidate your debt and manage your cash flow.

We would be happy to help you. SBDC advisors have extensive experience analyzing small business financials and they are also certified Profit Mastery instructors.

Financing/Capital

No, the SBDC does not offer loans. Our services are technical and educational in nature. SBDC consultants will assist in developing your business plan, calculating financial projections, comparing loans, and preparing you to meet with and select a lender.

An SBA loan is a loan provided by a bank or other lender that has been guaranteed (backed) by the U.S. Small Business Administration. The SBA does not make loans. The guarantee assures the lender that it will be repaid a portion of the money it loans even if the borrower fails to repay the loan.

As a business owner, you will make a request to a lender (usually your local bank) for funds needed for your business. The lender will evaluate your request and decide whether it can make the loan to you on its own. If a lender feels the request has merit but cannot make the loan without additional support, then the lender can request an SBA guarantee.

SBA considers issues such as collateral, credit, equity, and loan repayment ability when deciding on a loan. SBA does not provide grants to small businesses. With the exception of disaster loans, SBA does not provide direct loans. Your SBDC consultant can provide more information on SBA loans.

What do I need to get a business loan?

In order to apply for a loan, you will need at least three year’s worth of tax records for the business or personal tax records if you are not yet in operation; a personal financial statement, good credit and copies of any outstanding contracts (for example, your lease). The lender will usually want to see a thorough business plan that includes cash flow projections, a market analysis and an operational plan. Your SBDC consultant can help.

How should I prepare to meet with a business banker?

First, set an appointment. Then write down why you need the loan and how much you need to borrow. Bring a copy of your business plan, including financial statements and projections.

If you do not have three years of history with the business, are not making a profit, or don’t have substantial security to offer, be prepared to be turned down. Your SBDC consultant may be able to help you prepare for the appointment. If you are turned down, an alternative lender may need to be considered.

What alternatives are there for financing a business?

Committing your own funds is often the first step in financing. It is certainly the best indicator of how serious you are about your business. Risking your own money gives confidence for others to invest in your business. Seeking a loan from family and friends is another option.

Think very carefully before you take on partners or investors in your business. Talk with an attorney or an SBDC consultant before agreeing to a partnership or outside investor.

In order to apply for a loan, you will need at least three year’s worth of tax records for the business or personal tax records if you are not yet in operation; a personal financial statement, good credit, and copies of any outstanding contracts (for example, your lease). The lender will usually want to see a thorough business plan that includes cash flow projections, a market analysis, and an operational plan. Your SBDC consultant can help.

First, set an appointment. Then write down why you need the loan and how much you need to borrow. Bring a copy of your business plan, including financial statements and projections.

If you do not have three years of history with the business, are not making a profit, or don’t have substantial security to offer, be prepared to be turned down. Your SBDC consultant may be able to help you prepare for the appointment. If you are turned down, an alternative lender may need to be considered.

Committing your own funds is often the first step in financing. It is certainly the best indicator of how serious you are about your business. Risking your own money gives confidence to others to invest in your business. Seeking a loan from family and friends is another option.

Think very carefully before you take on partners or investors in your business. Talk with an attorney or an SBDC consultant before agreeing to a partnership or outside investor.

Buy/Sell a Business

Whether you are considering selling, merging, or closing your business, an SBDC advisor can help you prepare an exit strategy before you actually need it. Where do you want to go with your business and what is your desired exit?

If part of the exit plan is to sell your business, do you know what your business will be worth when you sell it? No matter what exit you have envisioned, proper planning will help you make the most of the transition and help to ensure that you realize the real value of your business. If you need assistance, contact the SBDC office nearest you. Click here to be taking to the registration website

Business valuation is one of the many ways our SBDC advisors can assist you when you are considering buying a business or franchise or selling a business.

Marketing/Sales

SBDC advisors have access to SBDCNet which is a national clearinghouse of market research data such as industry reports, articles, and archives. Our advisors also have access to university databases such as Business Wizard, Reference USA, and federal databases like the US Census Bureau and IBISWorld.

Google My Business is a free service Google provides to help your business claim and manage its free Google listing. The listing contains details about your business. Your listing appears in the right side of the search screen whenever a user searches for your business by name. The Boise SBDC office has an employee who is a certified Google business consultant. She is happy to meet with you in person or via Zoom to help you establish your Google My Business listing.

Human Resources/Managing Employees

To register as an employer, you need to obtain a Federal Employer Identification Number (EIN) from the IRS and secure workers’ compensation insurance. You then need to establish state income tax withholding and unemployment insurance tax accounts by filing IBR-1.

All employees will need to complete the required employment forms, these forms will be kept in their personnel file. The documents to be completed and filed are: Employee’s Withholding Certificate W-4 obtained from the IRS and Employment Eligibility Verification Form I-9 obtained from the U.S. Department of Immigration and Naturalization.

You must withhold federal and state income taxes, contribute to unemployment and workers’ compensation systems, and match Social Security contributions. You may also wish to inquire about key employee life or disability insurance and consider establishing an employee health insurance program and an investment (retirement) option.