Good afternoon! The following information is from the Agurban's Boomtown USA.
"We received a great email this week from Frankie Gilliam, CEcD and Community and Economic Development Specialist at ASU Delta Center for Economic Development in Jonesboro, Arkansas, introducing us to Cinda Baxter and the 3/50 Project movement. Below are the key points of The 3/50 Project, as outlined on their home page.
3 - What three independently owned businesses would you miss if they disappeared? Stop in. Say hello. Pick up something that brings a smile. Your purchases are what keeps those businesses around.
50 - If half the employed population spent $50 each month in locally owned businesses, it would generate more than $42.6 billion in revenue. Imagine the positive impact if ¾ of the employed population did that.
68 - For every $100 spent in locally owned independent stores, $68 returns to the community through taxes, payroll, and other expenditures. If you spend that in a national chain, only $43 stays local. Spend it online and nothing comes home.
1 - The number of people it takes to start the trend - you!"
Thursday, December 2, 2010
Friday, November 5, 2010
Trade Shows
According to recent LinkedIn threads, economic developers across the country are tightening their trade show budgets in these lean times. It's more important than ever to get the biggest bang for your buck.
Here are some tips from Anya Codack. Her company, YFactor, is currently working on a GIS-based, data-rich web site for the HOTEDD which should roll out early this spring. She says:
--when going to a trade show, focus on pre-marketing and post-marketing
--collect business cards, but also work the entire delegate list for potential contacts
--use all those contacts in an ongoing social-media communications strategy.
Thanks, Anya!
Here are some tips from Anya Codack. Her company, YFactor, is currently working on a GIS-based, data-rich web site for the HOTEDD which should roll out early this spring. She says:
--when going to a trade show, focus on pre-marketing and post-marketing
--collect business cards, but also work the entire delegate list for potential contacts
--use all those contacts in an ongoing social-media communications strategy.
Thanks, Anya!
Tuesday, October 19, 2010
The 20 Most Important Questions In Business
by Christopher Steiner and Brett Nelson
(I got this from an email called "The Agurban," and they sourced this material from Forbes Magazine.)
Entrepreneurs can't completely inoculate their businesses from the vagaries of the market. What they can do is wrestle with the fundamental questions that govern the fate of any enterprise. We've done our best to compile the 20 most important ones...
1. What is your value proposition?
2. Does your product address a viable market?
3. What differentiates your product from the competition?
4. Does the business scale?
5. How committed are you to making this happen?
6. What are your strengths?
7. What are your weaknesses?
8. What price will your customers pay?
9. How much power do your buyers have?
10. How much power do your suppliers have?
11. How should you sell your product?
12. How should you market your product?
13. How big is the threat of new entrants:
14. How do you protect your intellectual property?
15. How much start-up capital do you need?
16. How will you finance the business?
17. How much cash do you need to survive the early years?
18. What are your financial projections?
19. How do you keep the help happy?
20. What is your end game?
For more information, see Forbes at http://www.forbes.com/2010/06/17/most-important-questions-in-business-entrepreneurs-management-small-business_slide_2.html
(I got this from an email called "The Agurban," and they sourced this material from Forbes Magazine.)
Entrepreneurs can't completely inoculate their businesses from the vagaries of the market. What they can do is wrestle with the fundamental questions that govern the fate of any enterprise. We've done our best to compile the 20 most important ones...
1. What is your value proposition?
2. Does your product address a viable market?
3. What differentiates your product from the competition?
4. Does the business scale?
5. How committed are you to making this happen?
6. What are your strengths?
7. What are your weaknesses?
8. What price will your customers pay?
9. How much power do your buyers have?
10. How much power do your suppliers have?
11. How should you sell your product?
12. How should you market your product?
13. How big is the threat of new entrants:
14. How do you protect your intellectual property?
15. How much start-up capital do you need?
16. How will you finance the business?
17. How much cash do you need to survive the early years?
18. What are your financial projections?
19. How do you keep the help happy?
20. What is your end game?
For more information, see Forbes at http://www.forbes.com/2010/06/17/most-important-questions-in-business-entrepreneurs-management-small-business_slide_2.html
Monday, October 4, 2010
Final Installment: SBA Information about Tax Relief to Help Small Businesses
New Law Provides $12 Billion in Tax Relief to Help Small Businesses Invest in their Firms, Create Jobs
• Extension, Expansion of Tax Cuts – 8 Tax Cuts
1. The highest small business expensing limit ever, of $500,000
2. Carry-back provisions on net operating losses of up to 5 years
3. Accelerated/bonus depreciation
4. Zero capital gains taxes for those who invest in small businesses
5. Increased deductions for start-ups
6. Deductions for employer-provided cell phones
7. Deductions for health insurance costs for the self-employed
8. Limitations on penalties for errors in tax reporting that disproportionately affect small business
Beyond SBA:
• Small Business Lending Fund – $30 billion (administered by Treasury)
o The law will provide smaller community banks with low cost capital (as low as 1%) if they go above and beyond 2009 small business lending levels.
• Establishes State Small Business Credit Initiative (administered by Treasury)
o The law will provide up to $1.5 billion to States to support state run small business lending programs
• Extension, Expansion of Tax Cuts – 8 Tax Cuts
1. The highest small business expensing limit ever, of $500,000
2. Carry-back provisions on net operating losses of up to 5 years
3. Accelerated/bonus depreciation
4. Zero capital gains taxes for those who invest in small businesses
5. Increased deductions for start-ups
6. Deductions for employer-provided cell phones
7. Deductions for health insurance costs for the self-employed
8. Limitations on penalties for errors in tax reporting that disproportionately affect small business
Beyond SBA:
• Small Business Lending Fund – $30 billion (administered by Treasury)
o The law will provide smaller community banks with low cost capital (as low as 1%) if they go above and beyond 2009 small business lending levels.
• Establishes State Small Business Credit Initiative (administered by Treasury)
o The law will provide up to $1.5 billion to States to support state run small business lending programs
Friday, October 1, 2010
More SBA Information - 3 of 4 Posts
New Law Promotes Small Business Exporting, Building on the President’s National Export Initiative
• Export Express Pilot Becomes Permanent
o The law turns the Export Express pilot loan program into a permanent program with 90% guarantees for loans up to $350,000 and 75% for loans between $350,000 and $500,000.
• State Trade and Export Promotion Grants Pilot
o The law provides $60 million in competitive grants over next three years for states to help small business owners with exporting.
• Increased Staff and Strengthened Export Counseling Resources.
Law Expands Training and Counseling:
• Major Investment in Counseling and Training
o The law provides $50 million in grants available to Small Business Development Centers.
• More Opportunities in Export Counseling (see above)
• Export Express Pilot Becomes Permanent
o The law turns the Export Express pilot loan program into a permanent program with 90% guarantees for loans up to $350,000 and 75% for loans between $350,000 and $500,000.
• State Trade and Export Promotion Grants Pilot
o The law provides $60 million in competitive grants over next three years for states to help small business owners with exporting.
• Increased Staff and Strengthened Export Counseling Resources.
Law Expands Training and Counseling:
• Major Investment in Counseling and Training
o The law provides $50 million in grants available to Small Business Development Centers.
• More Opportunities in Export Counseling (see above)
Thursday, September 30, 2010
More SBA Information About New Legislation
New Law Strengthens Small Businesses’ Ability to Compete for Contracts, Including Recommendations from the President’s Task Force on Federal Contracting Opportunities for Small Business
• Equal Treatment across Federal Contracting Programs
o The law reaffirms “parity” among federal small business contracting programs. Contracting officers will be free to choose among businesses owned by women and service-disabled veterans, as well as those participating in HUBZone and 8(a) programs, and soon the women’s contracting program when conducting contracts that are set-aside for small business.
• Better Playing Field for Small Businesses – more accountability, integrity, transparency
o The law gives agency procurement officers more ability to provide both large prime contracts and mircocontracts to small businesses. The law makes it harder for agencies to “bundle” contracts, a practice that often takes opportunities away from small business. The law also has stronger enforcement so agencies will be held more accountable for reaching small business goals.
o The law enforces stronger subcontracting plan requirements for large prime contractors to ensure small businesses are utilized in subcontracting. It also discourages late payments to small subcontractors.
o The law enforces SBA’s continuing efforts to combat fraud, waste, and abuse. Federal agencies, including the Department of Justice, will have more ability to vigorously pursue companies that win contracts by misrepresenting their small business status.
• Small Business Teaming Opportunities
o The law provides $10 million for a new pilot that provides grants that will help small businesses team up with each other to compete for larger and more complex federal government contracts.
• Equal Treatment across Federal Contracting Programs
o The law reaffirms “parity” among federal small business contracting programs. Contracting officers will be free to choose among businesses owned by women and service-disabled veterans, as well as those participating in HUBZone and 8(a) programs, and soon the women’s contracting program when conducting contracts that are set-aside for small business.
• Better Playing Field for Small Businesses – more accountability, integrity, transparency
o The law gives agency procurement officers more ability to provide both large prime contracts and mircocontracts to small businesses. The law makes it harder for agencies to “bundle” contracts, a practice that often takes opportunities away from small business. The law also has stronger enforcement so agencies will be held more accountable for reaching small business goals.
o The law enforces stronger subcontracting plan requirements for large prime contractors to ensure small businesses are utilized in subcontracting. It also discourages late payments to small subcontractors.
o The law enforces SBA’s continuing efforts to combat fraud, waste, and abuse. Federal agencies, including the Department of Justice, will have more ability to vigorously pursue companies that win contracts by misrepresenting their small business status.
• Small Business Teaming Opportunities
o The law provides $10 million for a new pilot that provides grants that will help small businesses team up with each other to compete for larger and more complex federal government contracts.
Wednesday, September 29, 2010
SBA Fact Sheet on New Legislation Affecting Small Businesses
The Small Business Jobs Act, signed by President Obama on September 27, will provide critical resources to help small businesses continue to drive economic recovery and create jobs. The new law extends the successful SBA Recovery loans while offering billions more in lending support and tax breaks for entrepreneurs and small business owners.
New Law Puts More Capital in the Hands of Entrepreneurs and Small Business Owners
• Recovery Act Loans Extension – $14 billion more in lending support
o The law will extend SBA Recovery loans (with the 90% guarantee and reduced fees) through December 31, 2010. The $505 million for Recovery loans in this new law will support about $14 billion in overall small business lending. More than 1,400 small businesses that have been in a queue waiting for this bill to become law will be funded in a matter of days.
o Since passage of the Recovery Act, SBA has supported nearly 70,000 Recovery loans, turning $680 million in taxpayer dollars into more than $30 billion in lending support.
• Higher Loan Limits – significantly increases maximum loan sizes in top loan programs
o The law will permanently increase 7(a) and 504 limits from $2 million to $5 million (for manufacturers in 504 loan program, up to $5.5 million).
o The law will permanently increase microloan limits from $35,000 to $50,000, helping larger entrepreneurs with start-up costs and small business owners in underserved communities.
• Alternative Size Standards – more small businesses eligible to get SBA loans
o The law expands the number of businesses eligible for SBA loans by increasing the alternate size standard to those small businesses with less than $15 million in net worth and $5 million in average net income.
• Temporary Enhancements to Help with Working Capital, Commercial Real Estate Refinancing
o The law will increase maximum amount of SBA Express loans from $350,000 to $1 million (expires 9/27/2011).
o The law will allow some small businesses to refinance their owner-occupied commercial real estate mortgages into the 504 loan program (expires 9/27/2012).
• Dealer Floor Plan Pilot Extension, Expansion
o The pilot program (begun 2009) will be extended to 2013.
o After the $5-million loan limit is implemented, this will help even more small businesses owners who sell cars, RVs, boats, other titleable inventory.
• Small Business Intermediary Lending Pilot
o The law provides $16 million over the next three years for an intermediary-facilitated microloan program that will target small businesses needing microloans up to $200,000.
New Law Puts More Capital in the Hands of Entrepreneurs and Small Business Owners
• Recovery Act Loans Extension – $14 billion more in lending support
o The law will extend SBA Recovery loans (with the 90% guarantee and reduced fees) through December 31, 2010. The $505 million for Recovery loans in this new law will support about $14 billion in overall small business lending. More than 1,400 small businesses that have been in a queue waiting for this bill to become law will be funded in a matter of days.
o Since passage of the Recovery Act, SBA has supported nearly 70,000 Recovery loans, turning $680 million in taxpayer dollars into more than $30 billion in lending support.
• Higher Loan Limits – significantly increases maximum loan sizes in top loan programs
o The law will permanently increase 7(a) and 504 limits from $2 million to $5 million (for manufacturers in 504 loan program, up to $5.5 million).
o The law will permanently increase microloan limits from $35,000 to $50,000, helping larger entrepreneurs with start-up costs and small business owners in underserved communities.
• Alternative Size Standards – more small businesses eligible to get SBA loans
o The law expands the number of businesses eligible for SBA loans by increasing the alternate size standard to those small businesses with less than $15 million in net worth and $5 million in average net income.
• Temporary Enhancements to Help with Working Capital, Commercial Real Estate Refinancing
o The law will increase maximum amount of SBA Express loans from $350,000 to $1 million (expires 9/27/2011).
o The law will allow some small businesses to refinance their owner-occupied commercial real estate mortgages into the 504 loan program (expires 9/27/2012).
• Dealer Floor Plan Pilot Extension, Expansion
o The pilot program (begun 2009) will be extended to 2013.
o After the $5-million loan limit is implemented, this will help even more small businesses owners who sell cars, RVs, boats, other titleable inventory.
• Small Business Intermediary Lending Pilot
o The law provides $16 million over the next three years for an intermediary-facilitated microloan program that will target small businesses needing microloans up to $200,000.
Monday, August 30, 2010
Ozone in the Heart of Texas
The air monitor in Waco, which measures ozone and other chemicals, is one important piece of equipment - and it's especially important right now.
The Environmental Protection Agency issues a standard that describes how much ozone, an air pollutant, is healthy for people to breathe for extended periods. That standard will be lowered in October.
The readings on the Waco monitor will determine whether parts of the Heart of Texas Region gain a new and negative distinction: designation of "Nonattainment" of the ozone standard. When announced, the new standard will look back over the past three-year period. The month of September is historically a high-ozone period in the Heart of Texas, so the next few weeks will largely determine whether the Waco monitor's readings land the area in the "Nonattainment" range.
In addition to health and safety concerns, a "Nonattainment" designation carries heavy regulation as well - regulation that could place limits on some kinds of development and could impact existing residents and businesses. Some group of "control strategies" would have to be adopted, and those control strategies could include a wide variety of measures. Control strategies that have been adopted in other areas include emissions testing for motor vehicles, the requirement of vapor-capturing apparatus at fuel stations, and enhanced pollution-prevention measures at industrial and other facilities.
There is much that is unknown for now. Not only the exact number of the new standard (which could fall anywhere between 70 and 60 parts per billion,) but also which counties, if any, besides McLennan would be judged to be part of a "Nonattainment" area, are still in doubt.
For more information about what individuals can do to help, or to learn more about the Heart of Texas air quality planning process, please visit www.BreatheEasyWaco.org.
The Environmental Protection Agency issues a standard that describes how much ozone, an air pollutant, is healthy for people to breathe for extended periods. That standard will be lowered in October.
The readings on the Waco monitor will determine whether parts of the Heart of Texas Region gain a new and negative distinction: designation of "Nonattainment" of the ozone standard. When announced, the new standard will look back over the past three-year period. The month of September is historically a high-ozone period in the Heart of Texas, so the next few weeks will largely determine whether the Waco monitor's readings land the area in the "Nonattainment" range.
In addition to health and safety concerns, a "Nonattainment" designation carries heavy regulation as well - regulation that could place limits on some kinds of development and could impact existing residents and businesses. Some group of "control strategies" would have to be adopted, and those control strategies could include a wide variety of measures. Control strategies that have been adopted in other areas include emissions testing for motor vehicles, the requirement of vapor-capturing apparatus at fuel stations, and enhanced pollution-prevention measures at industrial and other facilities.
There is much that is unknown for now. Not only the exact number of the new standard (which could fall anywhere between 70 and 60 parts per billion,) but also which counties, if any, besides McLennan would be judged to be part of a "Nonattainment" area, are still in doubt.
For more information about what individuals can do to help, or to learn more about the Heart of Texas air quality planning process, please visit www.BreatheEasyWaco.org.
Friday, July 30, 2010
Texas Leverage Fund: $14.3 Million Available for Loans in the Heart of Texas
In a previous post, we noted that the Texas Leverage Fund makes loans to 4A- or 4B-taxing Economic Development Corporations. These loans basically advance the EDC its future sales tax revenues, and can be spent just as their sales tax revenues can be spent.
The Heart of Texas Region cities have a combined $14.3 million in loan availability, and interest rates are currently just over 3%.
Individual cities vary in their lending limits. Cities with over $1 million available are Mexia, Bellmead, Fairfield, and Hillsboro. Cities with between $500,000 and $1 million are McGregor, Clifton, and Groesbeck. Cities with between $100,000 and $500,000 are Hubbard, Itasca, Meridian, Rosebud, and Wortham. Cities with between $50,000 and $100,000 are Lott and Crawford.
For more information on how to access this fund, email Megan or Kathy or visit the Texas Economic Development Bank, part of the Governor's Office of Economic Development and Tourism.
The Heart of Texas Region cities have a combined $14.3 million in loan availability, and interest rates are currently just over 3%.
Individual cities vary in their lending limits. Cities with over $1 million available are Mexia, Bellmead, Fairfield, and Hillsboro. Cities with between $500,000 and $1 million are McGregor, Clifton, and Groesbeck. Cities with between $100,000 and $500,000 are Hubbard, Itasca, Meridian, Rosebud, and Wortham. Cities with between $50,000 and $100,000 are Lott and Crawford.
For more information on how to access this fund, email Megan or Kathy or visit the Texas Economic Development Bank, part of the Governor's Office of Economic Development and Tourism.
Friday, July 2, 2010
Economic Development Financing Tool: Texas Leverage Fund
Staff is excited to learn about an economic development financing tool that 4A and 4B corporations can use. It's basically a loan from the State to do a project, and any project that would be eligible for your regular 4A or 4B sales tax would be eligible for this funding.
Two things are great about this money: first, it has a very low interest rate (about 3.25% as of this writing,) and second, it is securitized by your future revenue - so you don't have to pledge assets to secure the loan. This is good if you don't have any assets, but it's good even if you do: not having to tie up your assets means they're free to use for future projects.
Look for future posts, when we'll share more information about communities' borrowing abilities under this program, and Happy Independence Day!
Two things are great about this money: first, it has a very low interest rate (about 3.25% as of this writing,) and second, it is securitized by your future revenue - so you don't have to pledge assets to secure the loan. This is good if you don't have any assets, but it's good even if you do: not having to tie up your assets means they're free to use for future projects.
Look for future posts, when we'll share more information about communities' borrowing abilities under this program, and Happy Independence Day!
Thursday, May 13, 2010
New Planner Starts Monday
Please help us welcome Kathy Kieran, the new Community and Economic Development Planner, who will begin work Monday, May 17. Not only does Kathy bring considerable skill and talent to the position, but the position itself is expanding to full-time to take on the exciting challenges laid out at the Economic Development District Board Retreat in March.
While Kathy will spend quite a bit of her early time on the job learning about the region and its communities, she will also jump into current projects, including:
--evaluation of potential data sources for use in lead-response, grantsmanship, and other projects;
--application for funding to seed a Revolving Loan Fund;
--developing an inventory of resources for the region's small businesses; and
--maintaining and expanding the Economic Development Inventory of the region.
Kathy's background, which includes extensive communications, research, and workforce development work in addition to business operations, ensures that she will hit the ground running.
While Kathy will spend quite a bit of her early time on the job learning about the region and its communities, she will also jump into current projects, including:
--evaluation of potential data sources for use in lead-response, grantsmanship, and other projects;
--application for funding to seed a Revolving Loan Fund;
--developing an inventory of resources for the region's small businesses; and
--maintaining and expanding the Economic Development Inventory of the region.
Kathy's background, which includes extensive communications, research, and workforce development work in addition to business operations, ensures that she will hit the ground running.
Monday, May 3, 2010
Best Wishes, Dedri!
Dedri Hafer's last day is tomorrow, as she's taken a job with the Hill County Sheriff's Office. She has done a wonderful job for HOTEDD, and we will miss her!
Friday, April 23, 2010
Successful Forum Held in Marlin
The Economic Development Forum hosted by the Marlin, Rosebud, and Lott Chambers of Commerce on April 20 was a pleasure to attend. The venue, the historic Allen House, was a beautiful reminder of the rich history of the Heart of Texas Region. Denny Lessman and others from Marlin and Falls County shared reasons past and present for their pride in their communities.
Bobby Gierisch of Texas Rural Innovators facilitated a discussion among the communities represented, in which each highlighted areas of current community and economic development activity. Golinda, for example, has contracted with a private company to clean up all the city's streets. Fairfield recently added over 100 acres to its industrial park. Community events in Rosebud and Mexia bring visitors and overnight guests to those communities, and Marlin has begin a revitalization effort combining outside expertise with local know-how and commitment to the community.
After the forum and excellent luncheon catered by John and Cynthia Dees, the golfers of the group adjourned to the Marlin Country Club for a round of nine.
Thanks so much to those who hosted and attended this successful event!
Bobby Gierisch of Texas Rural Innovators facilitated a discussion among the communities represented, in which each highlighted areas of current community and economic development activity. Golinda, for example, has contracted with a private company to clean up all the city's streets. Fairfield recently added over 100 acres to its industrial park. Community events in Rosebud and Mexia bring visitors and overnight guests to those communities, and Marlin has begin a revitalization effort combining outside expertise with local know-how and commitment to the community.
After the forum and excellent luncheon catered by John and Cynthia Dees, the golfers of the group adjourned to the Marlin Country Club for a round of nine.
Thanks so much to those who hosted and attended this successful event!
Tuesday, April 13, 2010
We Remember Sharon Barnes
When I first met Sharon Barnes, we were working together as advocates for our region in creating the Texas Brazos Trail Region. Her knowledge, energy, and commitment to Groesbeck and to economic development were inspiring to me.
Over the following ten years, my admiration for Sharon grew: she continued to work, to advocate, to think creatively and to work for her community. And she continued to fight cancer, holding it at bay while she lived an extraordinary life.
Sharon passed away just before Easter. Her fight is over, but I and HOTEDD remember her and honor her legacy.
Over the following ten years, my admiration for Sharon grew: she continued to work, to advocate, to think creatively and to work for her community. And she continued to fight cancer, holding it at bay while she lived an extraordinary life.
Sharon passed away just before Easter. Her fight is over, but I and HOTEDD remember her and honor her legacy.
Friday, April 9, 2010
We're All A-Twitter!
This marks the first day of HOTEDD's online presence, and we look forward to hearing from the region. In addition to the blog space, users of Facebook can become fans of Heart of Texas Economic Development District, and users of Twitter can follow us by our username, HOTEcDevDist.
We plan to use this blog to communicate news and information, to post resources such as economic development tools and strategies, and to discuss ongoing projects and initiatives.
In the coming months, viewers can expect to see posts on the evaluation of different online data tools, resources for responding to leads, and business retention and expansion strategies.
I hope you find the blog helpful! Please let us know how to make it valuable to you.
-Megan Henderson
We plan to use this blog to communicate news and information, to post resources such as economic development tools and strategies, and to discuss ongoing projects and initiatives.
In the coming months, viewers can expect to see posts on the evaluation of different online data tools, resources for responding to leads, and business retention and expansion strategies.
I hope you find the blog helpful! Please let us know how to make it valuable to you.
-Megan Henderson
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