Local Education, Networking Are 'So Valuable' to Budding Entrepreneurs

As a result of the tanking economy, some who were laid off decided to take the opportunity to pursue their ideas for products, services and small businesses.

For many, these ventures would be their first foray into the business and management world.

“These people are in the ideas stage without the experience of an entrepreneur,” said Connie Sparks, a business consultant who also runs workshops within the Small Business Development Center, based at College of the Canyons.

However, without the proper planning, startups have a poor survival rate. According to the U.S. Department of Commerce, only half of new businesses survive for five years and only a quarter of all small businesses last more than 15 years.

Through research, education and networking, a person with just the idea can move forward correctly in creating a business.

Research

The low survival rate of startups can be attributed to lack of preliminary research before diving into creating a business plan or approaching lenders, Sparks said. The first thing you need to do, she said, is determine where you see your product or service fitting into the economy.

“It may not be a good time to introduce your product,” she said. Second, you need to determine where you see the business in five years, and again, answering why this is the opportune time to start the business.

To achieve this, you need to research your intended market, the competition and the available supplies and vendors you could use. Without this research, “you’re going into the business blind,” Sparks said, which increases your chance of failure.

All businesses should do a personal inventory before diving in, called a SWOT – An analysis of your strengths, weaknesses, opportunities, and threats to your business. This will help you determine the best practice and approaches to take to ensure your business is going in the right direction, Sparks said.

Once you reach the point where you are confident in the product or service, there are many resources available to you in the Santa Clarita Valley that will help start and maintain a successful business.

Education

Most people who attend Sparks’ workshops are looking for a starting point because they have no idea where to begin, she said. She recommends that new entrepreneurs starting at ground zero try to enroll in secondary education Business 101 and Business Management 101 classes, like what the College of the Canyons offers.

“That will be their greatest resource,” Sparks said. “They will walk away with so much information and it will give them a level of confidence.”

When it comes to education specific to your business idea, Sparks recommends the bare minimum of an introduction How to Start Your Business Class, then a How to Write a Business Plan class, then a Financing class and finally a Marketing class (“Marketing will make or break you,” Sparks said). For a completely new entrepreneur, this will cover the basics that will get a business started.

Zayne Rose, a Santa Clarita resident who has spent years in radio and sales, did not have small business experience in 2009 when he came up with the idea for z1-1.com, a hyperlocal site for interaction and information for Santa Clarita residents that has been online since early December.

Since then, he has been to about a dozen of the workshops and classes offered by the SBDC.

His attendance at various workshops helped the business building process really take off, Rose said.
It was the business plan workshops in particular that helped Rose, who said multiple banks called his business plan one of the best they’ve seen. But he recommends the How to Start a Business Plan class as the best starting point when you have no idea where to begin.

The SBDC offers all these courses, but there are many local opportunities through private consultants as well. But workshops offer another benefit besides the education – networking opportunities. Workshops allow you to hear the questions and experiences of other entrepreneurs, which Rose said he benefitted from.

And beyond workshops, Sparks said, there’s a huge benefit in the other networking opportunities in the area.

Networking

For Sparks, any new business needs to get involved with the SCV Chamber of Commerce and its committees.
“I think it’s so valuable right now,” she said. “And a greater portion of support is coming from these groups.”

Mario Galvez, an agent for New York Life Insurance Company, said it is important for a budding entrepreneur to create a diverse networking circle. There are various groups in the area – the chamber, the Latino Chamber of Commerce, and Valley Industry Association, to name a few – and even further special networking opportunities within each group.

“We have so many venues to network,” Galvez said. “You won’t run into the same people at all of them,” which helps diversify where you’re gleaning wisdom and insight.

Galvez is a former chairman of the micro enterprise committee, an SCV Chamber group that meets monthly and mostly targets businesses with less than six employees. For a while the group practiced the Power of Three, which Galvez said was a successful networking opportunity for trios of entrepreneurs to meet outside of the committee to discuss their businesses on a more detailed scale.

Stephanie Graziano, owner of EmbroidMe and current chairwoman of the committee, said the participants tend to express the same struggles, from juggling time (“business owners having to wear too many hats” she said) to keeping up with technology.

The committee has evolved in the almost three years it’s existed, Graziano said. While it used to focus on roundtable discussions and basic networking opportunities, lately it has served as a place for businesses to share their resources.

Each meeting focuses on a different skill or topic, from social media to public relations to bookkeeping, with all sessions led by local business owners in these fields.

“Ultimately it’s about strengthening our business community,” Graziano said, “not being the only one with the knowledge.”