Nonprofit group helps guide would-be entrepreneurs

It can be a scary world out there for those who want to start a business. Fortunately for them, SCORE is there to help ease the way.

SCORE is made up of business people who know what it's like to be your own boss. Best of all, it's a free service.

The SCORE Association (formerly the Service Corps of Retired Executives) is a nonprofit organization that operates in partnership with the U.S. Small Business Administration. There are 364 chapters across the country.

Raj Tumber, a SCORE mentor who specializes in media relations, said the biggest mistake most first-timers make is not completing a business plan.

The business plan is a road map one should create before taking any other steps. Just sitting down to write one, he said, points out areas that need addressing and research that needs to be done.

"It helps you understand your own business better," he said.

A business plan, he said, helps you achieve your goals. It takes into consideration all facets of a new company, including identifying your target market, how best to sell to them and how to distribute your product.

It also tackles the budget issues, such as startup expenses, break-even analysis, a cash flow statement, a cost analysis, sales forecasting, financial history and ratios. It's a lot of work but worth it, he said.

"A business plan is like eating broccoli," Tumber said. "When you're young, you hate eating broccoli, but you do it because you know it's good for you."

To make it easier to swallow, SCORE offers a business plan template on its website, score.org, that can be tweaked to whatever product or service is being considered.

One thing SCORE can't do is hand out passion for one's chosen product.

"Be careful you're not going into business for the wrong reasons, like, 'I don't have a job, so I may as well start a business,' " said Lori Murphy, a SCORE representative who owned a commercial sign company for 20 years.

The city of Las Vegas has a healthy relationship with SCORE.

"We really rely on (SCORE) to refer people, for getting advice," said Karen Duddlesten, business license manager for the city. "They worked with us on the list of business essentials of what you would need to know."

Out in the community, SCORE holds seminars to familiarize people with their services and schedules workshops for those ready to test the waters. There are also free, online workshops and webinars that cover specific topics such as how to secure funding. It offers the would-be entrepreneur an education to help format the fledgling company with an eye for future growth.

But it's not just seminars and workshops that make SCORE invaluable to many startup companies. It offers valuable one-on-one mentoring, matching the entrepreneur with someone who knows the ropes and can guide them through the challenging and often confusing startup process. The mentor offers a sounding board when it comes to decisions such as choosing a brick-and-mortar location or choosing between cash and accrual accounting and how each affects the bottom line.

In this day and age, new businesses must also be aware how social media can be utilized. Similarly, SCORE offers e-commerce information for online selling.

One of the biggest stumbling blocks entrepreneurs face is funding. While there are institutions willing to loan money, Tumber said, they require assets or collateral to guarantee that the loan is paid back. People who have blown through their 401(k) or who were hoping to use a devalued house to secure funding will find it difficult to get a loan.

Contact Summerlin/Summerlin South View reporter Jan Hogan at jhogan@viewnews.com or 387-2949.