SBDC Resources: Frequently Asked Questions
Below you will find a number of questions that you may have asked yourself as you begin the challenging and rewarding process of starting your own business. We have also included several questions that will be helpful if you have already established your business and are looking to take it to the next level. No matter what stage your business venture is in, we think you'll find these questions and answers to be a helpful tool.
1. What is the Pennsylvania Small Business Development Center Network?
The Pennsylvania Small Business Development Centers are committed to helping businesses start, grow and prosper. Learn more about the ways the Centers are assisting Pennsylvania's entrepreneurs and small businesses through consulting, education and business information.
2. What is the North American Industry Classification System (NAICS) and where can I learn more?
The North American Industry Classification System (NAICS) was developed to provide new comparability in statistics about business activity across North America. Learn more on the North American Industry Classification System site, where you can read about recent changes and look up codes.
3. What is the cost for SBDC services?
There is no charge for any of the SBDC consulting services. This is made possible by the tax dollars you give to the government. The SBDC is a not-for-profit organization that is funded on the federal level by the Small Business Administration (SBA) on the state level and by the Pennsylvania Department of Community and Economic Development (DCED). These agencies, along with our host university, the University of Pittsburgh, contribute to the financial support of the program.
4. I'm thinking of starting a business for the first time. Where do I begin?
The First Step seminar is designed for people who have never owned a business. Please keep in mind that owning a business is vastly different from being a manager of a business. First Step seminars are held at least once a month and will provide a great deal of information to help you decide whether you are ready to start a business. The Second Step seminar provides a closer look at one of the most important tasks in starting a business: writing a business plan. In both seminars, you benefit from the free exchange of ideas with other attendees, all of whom share your situation and questions. View our schedule of business programs to register for a First or Second Step program today.
5. How do I get an appointment with an SBDC consultant?
If you are just looking into starting a business, you will need to:
- Develop a preliminary business plan
- Submit a request for small business consulting.
You will then be assigned to a consultant who will assist you in finalizing your business plan and/or complete financial projections. The business plan is a joint venture with your consultant, and the SBDC consultant cannot write the business plan for you. The writing of the plan is an educational process in which you learn about your business and how you expect to operate. It should reflect your goals, objectives, priorities, and management style.
6 . How do I create a business plan?
Most financing options require a solid business plan. Learn all you need to know about operational and production planning, conducting market research, and creating financial spreadsheets to attract funding at our Second Step Workshop. The Second Step is a comprehensive workshop that will acquaint you with the necessary components of writing a business plan. We will cover topics including:
- Market Research: Websites, databases, journal and trade association links
- Production and Operation Plans: Job descriptions and time management
- Business Plan: Narrative, financing, supporting documentation
- Financial Plan: Break-even analysis spreadsheets
- Sources of Capital: Loans and investment funding
We offer this valuable workshop every month. View our schedule of business programs to register for a Second Step program today.
7. Do I have to meet any requirements to receive help from the University of Pittsburgh SBDC?
To receive assistance from the University of Pittsburgh SBDC, your business must be located in Allegheny, Washington or Greene County and fall under the federal guidelines for a small business, which generally means having fewer than 500 employees and no more than $10 million in annual sales.
8. Can you finance my business?
We do not provide financing; rather, our assistance is technical and educational in nature. We can, however, help you identify sources for financing and will work with you to meet the requirements of financing organizations.
We work with banks and other lending agencies and organizations to assist in putting together financial projections, but the actual financing comes from outside sources. Generally, you should start with the bank where you normally do business and have established accounts. You may have to apply with several lending institutions or look for alternative sources such as outside investors or special county loan programs.
9. What about loans to women-held or minority businesses?
Banks are no longer allowed by law to give preferential treatment to women or minorities when it comes to loaning money. The SBA does have a prequalification loan program for both women and minorities. Loans under this program are limited to $250,000 or less, and qualifying businesses must be at least 51 percent owned and managed by a woman or minority. These pre-qualification loans guarantee the loan repayment to the bank – they do not guarantee you a loan – and are accessed through your local bank. There are other eligibility requirements that your bank can describe to you, or you can contact us for further information.
10. What grants are available for my business?
Generally, grants are not available for starting a small business. There are grants through federal and state resources, as well as the private sector, for some research and development projects, high-tech businesses and other specialized areas. Your local public library will have complete listings in the Reference Department.
11. How soon can I see a consultant once all of the requirements are fulfilled?
Once we receive your completed Request for Counseling and the other materials mentioned above, a consultant will generally contact you within 7-10 business days.
12. What will my consultant do for me?
At your initial meeting, your consultant will review your business plan or proposal, determine a course of action, and identify areas that each of you will be responsible for completing. Your consultant will then follow up with an engagement letter detailing your meeting and listing the items each of you will work on, along with an estimated time frame for completion.
13. My business has been established for some time. What can the SBDC do for me?
The SBDC provides an array of services to established businesses, including:
- Small business consulting, planning, marketing and promotions
- Financial analysis
- Accounting
- Smart use of Information Technology
- A Procurement Assistance program for companies that want to bid on Federal government contracts
- An International Trade program for firms that want to enter or expand in the global marketplace
- An Environmental Management Assistance Program is also available
We also have four centers that can provide specialized services to meet your needs: a technology and innovation accelerator; a program for farmers and agricultural producers; a 10-month executive education program; and an expert family business center.
SBDC Program Funders:
