When small businesses need a helping hand
FGCU's Small Business Development Center offers guidance, loans expertise
WILSON After Jim Wilson bought the Downtown Health Club in Fort Myers with his wife, Cindy, they found themselves stuck with aging cardio equipment, not enough space for new members and no money left to expand.
In 2006, after the housing bubble burst, Mr. Wilson said, "I could see the writing on the wall."
But he couldn't get a loan to make
improvements. A banker, who was a member of Mr. Wilson's club, referred him to the Small Business Development Center at Florida Gulf Coast University's Lutgert College of Business.
After discussing the situation with Assistant Director Suzanne Specht, he learned about a loan offered by the Small Business Administration called Community Express. The federal government pays back 80 percent if the business fails. Mr. Wilson ultimately qualified for a $50,000 loan after applying, with Ms. Specht's help.
"It put me in a much stronger position," he said. "It's probably the only reason I made it through the downtown (Fort Myers) streetscape project. I was landlocked for two years. And then the bottom fell out of the economy. We're slowly coming back now."
EVAN WILLIAMS/FLORIDA WEEKLY Entrepreneurs and business owners listen to Jim Greenwood, founder of Greenwood Consulting Group, Inc., explain how to do business with a government entity, one of many seminars the Small Business Development Center presents at FGCU. Mr. Wilson is one of thousands who have taken advantage of the array of counsel and advice the SBDC offers — confidential, one-on-one and at no charge — to small business owners and entrepreneurs in Southwest Florida.
The center, which is funded by public and private dollars, offers six certified business analysts, government experts, private-sector professionals and school faculty to aid business owners.
"We're a resource for small businesses to get through the questions and barriers that they may not think about when they start their business," said Dan Regelski, executive director of the SBDC, and a marketing instructor at FGCU. He came to the university 15 years ago after working as a certified business analyst at Edison State College, to start the state-wide program there.
The SBDC also hosts about 120 seminars per year (some for nominal fees) on topics that include doing business with the federal government, marketing, credit repair, understanding contracts or employee retention.
The Center partners with other offices throughout the country, as well as local economic development offices and chambers of commerce.
"We're a whole network of SBD centers nationwide," said Ms. Specht. "Mostly we are found in colleges and universities."
Besides the Southwest Florida headquarters at FGCU, there are satellite offices in Naples, Immokalee, Fort Myers, Cape Coral, Port Charlotte and elsewhere. Visit www.floridasbdc.com for more information.
Business growth accelerating
Most of the SBDC's clients are existing business owners and about 40 percent, like Ms. Gluski, are considered startups — people in their first three years of business. Last year, the SBDC helped about 1,200 clients for a total of five hours each, on average.
Lately, Mr. Regelski said, a greater number of entrepreneurial dreamers are seeking help as they look to reinvent themselves after other businesses or job prospects failed during the recession.
"The numbers are going to far exceed (1,200) this year, without question," he said. "We see an influx of people losing their jobs or baby boomers retiring. We're incredibly busy."
A small business may be defined by the federal government in various ways, depending on what it makes or the service it provides. Generally, businesses that do not dominate their field or compete on a national level are considered small ones.
Records show the vast majority of businesses in Lee and Collier counties employ less than 49 employees. According to Economic Development Office records, 16,303 out of 19,518 businesses have less than 10 employees in Collier County; in Lee County, 10,545 businesses out of 13,768 employ less than 10 people.
"Small businesses are the lifeblood of the economy," said John Brock, an economic research analyst with the Economic Development Office of Lee County. A changing marketplace
Before the housing bubble burst, there was a high concentration of small business plans in agri-business, real estate and construction management companies at the SBDC, but that's changed. Now, there's more interest in "green" businesses, like those that deal in biofuels.
Bill Russ, who moved to Florida in 1997, got out of the real estate business in 2007 and looked for other work. He used the SBDC for help making business plans and networking. He became an independent contractor in Southwest Florida for Bio Green. The Nevadabased company sells organic fertilizer used for grass, trees and plants.
His product took off after being endorsed by the Environmental Protection Agency and Mr. Russ gained clients like the Southwest Florida International Airport, Naples Equestrian Challenge Inc., Bonita Bay Community Association, landscaping companies, apartment complexes and private homeowners.
Parts of President Barack Obama's stimulus plan to create infrastructure could mean business for Mr. Russ as well. They might, for example, want his product to aid in landscaping on a median or at a school. He could use the SBDC for help applying for contracts with government agencies.
"It is unique to me to have somebody there, without their hand out, to help you," said Mr. Russ, owner of Bio Green Earth LLC. "Even the chamber of commerce requires you to write a check before they put you in. The thing with this (SBDC) is they're sitting there with time on their hands ready to help you."
Heidi von Korff, 26, started a full-service green consulting firm for builders in Southwest Florida last year, Sustainable Civil, LLC, based in Naples. The SBDC helped her write up her business plans.
"It's nice to have someone there that's been through it a couple of times," Ms. von Korff said.
Last month, they asked her to come back to FGCU's business college to deliver a seminar on green businesses due to the increased interest. Ms. von Korff spoke to a standing room only crowd, a few of whom will no doubt be among the new talent entering the marketplace this year.
"From this economy will emerge some icons in business," Mr. Regelski said. "We won't know they're icons for 15 years, but they will have emerged in the 2009 dip."