Issue 10
Fall/Winter 2008
SBDC NEWS
www.sbdc.psu.edu
The Penn State Small Business Development Center ...helping small businesses create big futures
PENN STATE SMALL BUSINESS DEVELOPMENT CENTER * 003 KELLER BUILDING * UNIVERSITY PARK PA 16802 * 814-863-4293 MIFFLIN COUNTY OUTREACH OFFICE * 152 EAST MARKET STREET, SUITE 100 * LEWISTOWN PA 17044 * 717-247-1280
SUCCESS STORY!
“The planning and building of my business would not have been possible without the invaluable help of the Penn State SBDC.”
— John Daughenbaugh n 2005 John Daughenbaugh graduated from the Pittsburgh Institute of Mortuary Science. For nearly two decades John had worked in the service industries, but with his recently earned accolades as a licensed funeral home director, he now had the chance to follow his entrepreneurial spirit and open his own business. John recognized a distinct
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opportunity for his expert funeral home services in the Snow Shoe community and decided this was an optimal place to open, where a funeral home had been located previously. Due to the many issues involved with successfully starting his own business, John contacted the Penn State SBDC for assistance. After initially meeting with John and discussing his situation, the consultant and John decided to pursue the project and work through each of the steps of starting a business. The SBDC assisted John with market research, financial projections of necessary startup costs and operational expenditures, exploring the best-suited marketing options, the acquisition of capital funding, and understanding needed state and local legal compliances. In addition, an Environmental Management Assistance Program specialist talked with John about environmental issues concerning property acquisition. Research was needed to determine if the market could support the funeral home; financial projections were needed to fully understand the
capital infusion needed to start up and run the business; and marketing strategies would be crucial in building a strong and trusted name in the community. After the needed research, planning, and projections were completed, funding was secured, and a proper location in the town of Snow Shoe was acquired. After remodeling the property, purchasing needed equipment and supplies, and becoming state certified, John opened his doors for business on August 8, 2007. By being the only funeral home in the central Snow Shoe area, the Daughenbaugh Funeral Home is able to provide convenient and personalized services to the Mountaintop region. Working in this close-knit community, John is able to do what he loves by providing high-quality services and guiding families through difficult times. John has stated that, “The planning and building of my business would not have been possible without the invaluable help of the Penn State SBDC.” S
CONSIDER OUTSOURCING PAYROLL
You have just hired your first employee, and they need to be paid. What do you do? Large companies often have a payroll specialist on staff to ensure that their employees get their paychecks on time and that all taxes are remitted on a timely basis. However, many small- to medium-sized businesses choose to outsource the payroll function, leaving to a payroll service many of the technical issues that might be encountered. A payroll processing company will calculate tax, insurance, and retirement deductions. They will also monitor tax code changes, process new employee paperwork, and track sick leave and vacation time. They may issue the payroll checks or prepare the direct deposit file. They will also complete payroll tax returns and file them before the deadlines. They charge a reasonable fee for their services, usually either a flat rate per payroll period, or a charge for each paycheck processed. For a small business owner, the main benefit of outsourcing payroll is that it frees up the owner’s time to concentrate on managing and promoting the business. The owner’s time can be spent on capturing new customers, improving employee performance, and growing sales, rather than studying tax tables and writing checks. Additionally, the processing company is generally liable if there are any problems with the calculation or remittance of payroll taxes. The premium paid for the service is an inexpensive “insurance policy” to cover any possible errors. Finding a suitable payroll service is not difficult. Ask your current tax professional or CPA if that is a service they provide. If not, ask them for a recommendation. You can also check the local phone directory under Payroll Preparation Services. An Internet search should also yield names of local services. Be sure, however, when deciding upon a service, to ask for references.
THANK YOU, SEMINAR CO-SPONSORS!
The Penn State SBDC and Environmental Management Assistance Program (EMAP) would like to thank the following financial institutions for their sponsorship seminars and events in 2008. Their generous support enables us to continue to offer high-quality educational training and events to our local business community. Ameriserv Financial Fulton Bank Kish Bank M&T Bank Reliance Bank If your organization is interested in providing a 2009 sponsorship, please call 814-863-4293 for available opportunities.
Web Sites to Visit Pa. Small Business Development Centers: www.pasbdc.org Pennsylvania Department of Revenue: www.revenue.state.pa.us EMAP: www.askemap.org Pennsylvania Open for Business: www.open4business.state.pa.us
THE ALTERNATIVE ENERGY INVESTMENT FUND
To help families and small business save money on their energy bills, Governor Ed Rendell signed into law a new fund that supports investments in energy conservation and efficiency. As part of the $650 million package, residential consumers and small businesses will be eligible for $92.5 million in loans, grants, reimbursements, and rebates to support energy conservation and weatherization projects that can ultimately reduce energy bills. Another $40 million is available to provide financial assistance through the state’s Low-Income Home Energy Assistance Program and establish an energy efficiency loan fund through the Pennsylvania Housing Finance Agency. Households and small businesses can also qualify for $100 million to support the installation of solar energy technology. Solar power is a key cost-saving technology that enables homes and businesses to generate their own electricity and sell any excess power back to the grid through net metering. These kinds of investments are important today because consumers who find it difficult to pay for gasoline, diesel fuel, natural gas, and heating oil will face greater financial hardship when the generation rate caps expire, leading to double-digit electric rate increases. Some of these new energy programs will take effect in a few months. Staff from the state departments of Community and Economic Development, Agriculture, and Environmental Protection are developing guidelines and application procedures for the new energy programs. For information regarding the energy programs that apply to your small business contact Penn State SBDC EMAP consultants, Heather Fennessey or Denise Bechdel at 814-863-4293.
GREEN YOUR BUSINESS BY USING THE EMAP BUILDING BLOCKS
GOING GREEN MAKES BUSINESS SENSE
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Save money. A business that increases Take one step at a time to discover how energy efficiency, reduces waste, achieves sound environmental practices make good regulatory compliance, and streamlines business sense. purchasing will successfully improve the ENERGY: Determine bottom line. ways to decrease your energy use, increase • Earn consumer and community trust. efficiency, and possibly Clients and customers want to know that the get “off the grid” entirely. businesses they patronize exhibit corporate responsibility.
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Comply with government regulations. Companies should always ensure regulatory compliance. Being out of compliance can be dangerous and costly.
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Create new market opportunities. As the market trends toward sustainable processes and products, going green can help a business be competitive.
MATERIALS: Carefully c ho o se how y ou u se , reuse, and dispose of materials. Incorporate green building techniques. ASSURANCE: Build a strong foundation for your business through smart environmental management. Reporting and recordkeeping are key. PURCHASING: Think about what you buy and use—how it affects your customers, your employees, and the environment. To help your small business go green by using our easy-to-follow building block approach, contact Penn State SBDC EMAP consultants Heather Fennessey or Denise Bechdel at 814-863-4293.
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Increase efficiency and productivity. By implementing smart greening strategies, a business will streamline its processes, run more smoothly, and be cost effective.
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Cultivate employee trust and loyalty by creating a safer, healthier workplace. Involving employees in the process of going green can incite enthusiasm and increase commitment to the company.
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Reduce your carbon footprint by r e duc i ng gr ee nhouse g a s e mi ssio ns. Businesses that take steps to go green can greatly decrease their environmental impacts.
UPCOMING TRAINING EVENTS
The First Step of Starting a Small Business A FREE seminar from 9:00 a.m. to noon: Nov. 4 and 18 in State College Dec. 2 and 16 in State College Jan. 6 and 20 in State College Feb. 3 and 17 in State College The Second Step of Starting a Small Business, an interactive workshop on preparing a business plan Seminar from 9:00 a.m. to noon in State College ($30 fee): Oct. 30, Dec. 11, Jan. 29 and Feb. 26 Government Contracting Opportunities Nov. 12 in State College, 9:00 a.m. to noon (It’s free!) Tax and Bookkeeping Nov. 13 in State College, 9 a.m. to noon ($30 fee) Cash Flow 101 Nov. 20 in State College, 9:00 a.m. to noon ($30 fee)
More information about registration and fees is available online at www.sbdc.psu.edu or by phone at 814-863-4293. Please visit our Web site at www.sbdc.psu.edu/calendar.htm
This publication is available in alternative media on request. Funding support and resources are provided by the Commonwealth of Pennsylvania through the Department of Community and Economic Development; through a cooperative agreement with the U.S. Small Business Administration, and through support from The Pennsylvania State University. All services are extended to the public on a nondiscriminatory basis. Special arrangements for persons with disabilities can be made by calling 814-863-4293. All opinions, conclusions, or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. Penn State encourages persons with disabilities to participate in its programs and activities. If you anticipate needing any type of special accommodation or have questions about the physical access provided, please contact the appropriate department or the Office for Disability Services in advance of your participation or visit. Penn State is committed to affirmative action, equal opportunity, and the diversity of its workforce. 09-0475/09-SBDC-003