Frequently Asked Questions about Washburn SBDC and its services

What does the Washburn SBDC do?
Our mission is “Growing Kansas Entrepreneurs.” We do this by providing free and confidential, one-to-one consulting and low cost training seminars to existing and start-up small business owners and managers.

Who do you work with?
We work with for-profit companies that are classified as “small” by the SBA. Generally, “small” is defined as less than 500 employees, but does vary by industry. You may visit the SBA website www.sba.gov for a complete definition. The Washburn SBDC serves Shawnee, Geary, Riley, Pottawatomie, Jackson, Wabaunsee, Nemaha, Brown, and Marshall Counties through our offices located in Topeka and Manhattan.
How do I become a client of the WASHBURN SBDC?
All you need to do is complete our new client application form, or call our office at (785) 234-3235 to schedule an appointment. The form can be picked up at our offices or can be downloaded here.
Where do I find grant money?
Unfortunately grant money for for-profit companies is not nearly as available as those who are selling the “how to” books and seminars for grants would like you to believe. Finding grants is a competitive and research-intensive process. We do not want to discourage you from seeking grants, though, you should be aware that most small businesses obtain their financing through more traditional means (see below). Researching grants can be done on the internet and at the public library. Some websites you may wish to visit are… www.kansasgrants.org; www.kansascommerce.com; www.grants.gov; www.cfda.gov; www.sba.gov. You may also wish to contact the local economic development agencies to see if they have specific grants for the geographic area.
Why should I write a business plan?
There are several reasons. First, if you are searching for financing assistance, it will be a requirement. And even if financing is not an issue in your case, you will want a plan to ensure that you are directing your time, energy, effort and money all in the best direction. A business plan helps to clarify the vision that you have for your company. In many ways a business plan asks you to answer all of the questions that you will eventually have to answer anyway in the context of your business. Through strong planning, you will be better equipped to answer these questions proactively instead of from a reactive posture. Business planning is a critical step in the success process.
Where can I get the financing to start my company?
There are multiple sources, but the first thing you want to do is complete a business plan. We offer several seminars that teach you how to do this in detail. In addition, the public library has an extensive business reference center that has a great deal of information on business plans. Once that plan is in place and the funding requirements are identified, you can review your funding options, some of which are listed below. Some sources of small business financing are…
- Owner Contribution
- Loans from family and friends
- Bank financing
- SBA guaranteed loan programs
- Economic development loans
- Venture capital companies or “Angel” investors
- Personal financing (credit cards or home equity loans)
Do I need to get a business license?
You may or you may not, depending on the type of industry you are in and where your business is located. To find out this information, first contact the First Stop Clearinghouse at 785-296-5298, a state program from the Kansas Department of Commerce. They will provide you information on licensing and permit requirements for your industry. You should also contact your city and county offices (clerk’s office, zoning / planning) to ensure that you comply with city and county registration requirements.
Do I need to get insurance?
Probably. But the best thing to do is speak to your insurance agent. In many situations, even if your business is operated out of your home, homeowners insurance will not cover items used for a business (such as computers, equipment, etc). As well, your auto insurance may not cover using your personal vehicle for business purposes. Types of insurance small businesses usually consider include a general liability policy, protecting assets (autos, equipment, etc), product liability, health insurance, and workers compensation insurance. Developing a good relationship with an insurance agent is yet another key relationship you should develop as a resource for your business. For more information, you can visit the KS insurance commissioner’s website at www.ksinsurance.org.
Do I need to get a Federal Employer Identification Number (EIN)?
If you are a sole proprietorship (or single member LLC) and will not have employees, you can generally use your social security number as the business ID. If you will have employees, or have a legal structure other than a sole proprietorship, you will usually need to apply for a Federal Employer Identification number (FEIN) number. For additional requirements and instructions for obtaining the number online, we recommend you visit www.irs.gov.
What type of legal structure should I choose?
We would recommend that you speak with your attorney or accountant regarding the appropriate legal structure for your business.

Another resource on legal structure is the Kansas Department of Commerce’s book on Steps to Success: Starting a Business In Kansas. This publication can be downloaded at the Kansas Department of Commerce site, www.kansascommerce.com.

Do I need an attorney? What will they help me with?
It is a good idea to have a lawyer as a member of your business support team. You never know when you may need legal advice or assistance, so having an established relationship can be a big help. There are many ways that lawyers help small businesses, but some include choosing and establishing a legal structure, contract writing and review, human resources issues, patents and trademarks, taxes, and buying or selling a business. The best way to find an attorney is to ask others that you know in business who they use and then conduct several interviews. You want to have an attorney that you can trust and feel you have a good personal connection with. We will also be happy to provide you a list of attorneys in the local area.
Do I need an accountant? What will they help me with?
The answer is very similar to that above with attorneys. A good accountant is an invaluable resource to a business owner. Accountants can assist with establishing a bookkeeping system, generating financial statements, tax planning and preparation, assistance with budgeting / financing, legal structure, and as a financial consultant in your business.
Where can I find FREE demographic / marketing research information?
There are a large number of resources for free marketing research information and our consultants will be happy to help with this too. In general, libraries and the internet are excellent resources. Specifically, here are some great resources for the small business owner:

www.sbdcnet.org – General information and demographic links and information
www.census.gov – US Census data
www.thomasregister.com – Company information
www.freelunch.com – Links to many informational resources
www.tscpl.org – For Shawnee County residents

Where can I get small business information in Spanish?
Both the SBA and the IRS have great websites that feature small business information in Spanish. These websites are www.sba.gov, www.score.org, and www.irs.gov respectively.

The Washburn SBDC consultants will be happy to sit down and discuss any questions you may have. Please either email us at sbdc@washburn.edu or contact us at 785-234-3235.