Business center reports high returns

For every state and federal tax dollar used to fund the ESU Small Business Development Center last year, $28.11 more revenue was created in the local community, according to the center's recently released annual report.

The center measures its impact by the number of jobs it helps create, the increase in local sales, and the state and federal taxes paid by its clients.

"We also look at whether or not clients who needed financing were able to obtain it - in the form of a Small Business Administration loan, bank loan or money from a private investor," said center director Lisa Brumbaugh.

Last year, the center helped local businesses create 71 new jobs and save an additional 96 jobs. The center helped businesses generate over $2.5 million in new sales. It also helped 21 clients secure $1.8 million in financing. Nine of the centers clients started new businesses last year.

But according to Brumbaugh, her strong showing this year is due in part to the quality of her clients.

"A good example of a start-up is someone with a good idea who has a little money saved and wants guidance on what to do first and how to start business," she said. "They want to go through a business plan outline because they're eager to understand everything they need to do to make their business successful."

Clients usually begin with a detailed questionnaire that reveals the strengths and weaknesses of the new business proposal. Brumbaugh also suggests that all her clients create a business plan to help them foresee problems that may arise. Once a client is open for business, Brumbaugh makes follow-up visits and provides assistance in managing debt, reviewing profit-loss statements and other issues.

The report cites Marlina Poff, owner of Tranquility Day Spa and Salon, as one of its recent "success stories." In 2001, Poss began working with Brumbaugh to develop her presentation for bank loan officers.

"I set up a portfolio and a complete presentation for her," said Poff. "I got together information about my business, about spas in general, my vision and my pricing structure."

"For me, Lisa was a help to give a stronger and better presentation to the bank when I went there to get a business loan. She was able to be a mentor for me and show me aspects of business I hadn't considered. Anyone getting into business needs some kind of guidance or a sounding board, someone with Lisa's many years of experience," she said.

For Mel Reed, another of this year's "success stories," the main issue was confidence. He had worked for another tire business in Emporia for 26 years but wasn't sure he was ready to make it on his own. Brumbaugh told Reed that his name recognition and good reputation would help drive his business.
"She helped me believe in myself," said Reed.

Brumbaugh also helped with plans and financial projections, helping Reed make sure he had enough capital and cash flow.

After 13 months, Mel's Tires has 4,000 regular customers and an original staff of five employees has grown to eight.

Long-term clients, such as Colleen Janssen, owner of the Fabric Corner, believe they developed a good foundation through their initial work with the center.
"When I was approached to take over an existing business, I didn't know how to learn about the niche market for fabric sales. I went to Lisa to look over my business plan and point things out to me I needed to think about. She also helped with market research," said Janssen.

The Fabric Corner opening in 1992 with 900 square feet but has grown to 6,500 feet. A staff of two employees has grown to nine, and the value of her inventory has grown from $20,000 to over a half million dollars. Last year, Janssen opened a second store in Topeka.

This year, Janssen won a Kansas Business Appreciation Award based on Brumbaugh's nomination. According to Janssen, the Kansas Department of Commerce and Housing, which gives the award, was impressed by her community service project called "charity sews" that offer free classes to community groups such as the Girl Scouts.

The Small Business Development Center is a partnership program between the U.S. Small Business Administration, the Kansas Department of Commerce and Housing and Emporia State University. Since 1983, the ESU center has served small business owners in Lyon and surrounding counties.

 

Last Updated July 2, 2007>