FAQs

Welcome to the Arizona Small Business Development Center (SBDC) Network's Frequently Asked Questions page. Find clear responses to common questions, guiding you through our resources to support your small business.

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About SBDC

The SBDC operates as a collaborative initiative between the state and federal governments.

The SBDC provides various training programs designed to educate and guide entrepreneurs across various stages of business development.  You can explore our training options HERE.

No. The SBDC operates as a non-governmental program in collaboration with the U.S. Small Business Administration (SBA). While receiving federal funding and support, individual SBDCs are hosted by community colleges throughout Arizona.

The Small Business Development Center (SBDC) in Arizona is a program offering business advisory services through a network of centers. Hosted by local entities, SBDCs in Arizona receive funding from the U.S. Small Business Administration (SBA), the state, and also local governments. The SBA, a federal agency, provides broader support for small businesses nationwide, including resources like loan guarantees and disaster relief.

The SBDC provides essential support to small businesses and entrepreneurs through personalized advising, training, and providing resources. Services cover diverse areas such as business planning, marketing, finance, and technology adoption. Whether seeking assistance with market research, access to capital, or navigating government contracting, the SBDC is a comprehensive resource to help businesses start, grow, and thrive.

The SBDC provides confidential one-to-one business advising with no fee. Some services, such as classes, have a nominal fee.

SBDC advisors typically have extensive business experience, advanced degrees, and professional certifications. They undergo specialized training in business advising, finance, marketing, and entrepreneurship to equip them with the knowledge and skills needed to assist small businesses effectively.

All client information shared with Arizona SBDC personnel is held in strict confidence. All staff are required to sign confidentiality statements. Client information is not shared outside of the Arizona SBDC staff unless approval is received in writing from the client.

Yes, special assistance is often available for minorities, women, veterans, and disabled entrepreneurs through various programs and initiatives. The Small Business Development Centers (SBDCs), as well as the U.S. Small Business Administration (SBA), offer targeted support for underrepresented groups. This assistance may include access to training, resources, mentorship programs, government contracting opportunities, and specific financing options designed to address the unique needs of minorities, women, veterans, and disabled entrepreneurs. Certifications like the 8(a) Business Development Program for minority-owned businesses aim to create an equitable business environment and promote the growth of enterprises owned by individuals from underrepresented groups.

About Client Services

The SBDC primarily assists small businesses but may provide limited support to nonprofit organizations. For specific details, it is recommended to check with your local SBDC center.

Appointments are required for all meetings with SBDC advisors. For those initiating a new business, thorough preparation is advised. Creating a list of questions and organizing your thoughts will enhance the advisor's understanding of your business idea and planning progress.

In a meeting with an SBDC advisor, you can anticipate receiving personalized guidance and support catered to your unique business needs. The advisor will engage in discussions about your business idea, offer insights into areas like business planning and marketing, and address any challenges you may encounter. Expect to receive resources, tools, and recommendations to make informed decisions and progress in your business. The sessions are collaborative, aiming to enhance your business skills and increase your chances of success.

The SBDC offers support for a variety of businesses covering basic start-up inquiries, assisting with financing, guidance on preparing business plans, and marketing. While specific legal or tax advice is not provided, we can offer information to aid in decision-making or refer you to additional resources if needed.

Numerous programs and services are available to assist small businesses. Nevertheless, the SBDC network distinguishes itself through key attributes.

Staff Expertise

The SBDC team are seasoned professionals who are experts in the specialty fields they advise and teach. Our Business Advisors receive regular training on the latest tools and resources available to small business owners, and most advisors have first-hand experience in business ownership.

  • Our Network. Despite the expertise of our highly trained local team, It’s impractical to be experts in every conceivable area of business assistance.  Hence, we collaborate closely with our large network comprising SBDCs, federal, state and local agencies, local businesses, and industry experts to help fill the gaps.  Should there be any gaps in assistance our Advisors will connect you to the appropriate individuals or agencies to provide the support you need. 
  • Market and Industry Research. Our SBDC possesses access to extensive industry and market research databases that can help you gain insights into the trends and developments that influence your business environment.  Our skilled staff can provide you with reports and the tools needed to take advantage of a constantly changing business environment.
  • Long-term Focus. We are committed to the long-term success of your business. We work with clients at every stage of the business and will keep working with you throughout your journey.
  • No Fee. The SBDC provides confidential one-to-one business advising with no fee.
  • Rules, laws, and practices in different jurisdictions are subject to variation. You must verify the information with local sources before you rely on it for important business decision-making. Verification and further information can be obtained from your local SBDC, local accountants and attorneys, county and state business assistance agencies and offices, libraries, colleges and universities, and recently published materials.
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Small businesses are defined uniquely for each industry. As per the SBA size standards, a small business is defined as a business that employs a maximum of 250 employees or earns a maximum of $38,000,000 in annual revenue. Using the SBA Size Standards Tool, you can also check whether your business is small.

Explore the SBA Glossary for definitions and frequently used business terms.

Legal and financial advice tailored to your unique situation can only be provided by your attorney or financial professional.

SBDCs offer one-to-one advising to small businesses, providing personalized support.

The SBDC provides confidential one-to-one business advising with no fee at no charge. Some services, such as classes, have a nominal fee.

For established businesses, the SBDC can offer valuable assistance in areas such as strategic planning, marketing strategies, financial management, expansion planning, technology adoption, and accessing new markets. Their expertise can help enhance your business operations and promote sustained growth. We can help you:

  • Conduct financial analysis and improve profitably
  • Develop competitive strategies
  • Design a marketing plan
  • Hire and manage employees
  • Understand & secure loans/other sources of capital
  • Keep abreast with current technology
  • Research suppliers & customer leads from a comprehensive business databank
    • Seek capital for expansion or a line of credit
Business Funding

The SBDC focuses on technical and educational assistance, not direct financing. While we collaborate with lending institutions to help with financial projections, actual financing comes from outside sources. Our strong relationships with these institutions enhance the chances of finding a lender suitable for your business, increasing the likelihood of securing financing.

Entrepreneurs typically seek debt financing through commercial lenders such as banks for existing and start-up businesses. Banks vary in their lending practices and understanding a bank’s lending guidelines is crucial before applying for a loan.  Key factors considered by lending officers include: 

  • Business ideas usually explained in a business plan
  • Collateral available to secure the loan
  • Down payment (equity for ongoing business)
  • Credit history
  • Personal financial net worth
  • Management ability
    • Ability to repay the debt
    • Economic and market conditions

A borrower's credit score significantly influences commercial loan approval, with most lenders preferring a score of 650 or higher. While occasional exceptions exist, a recent bankruptcy within the last seven years is typically a significant obstacle to approval.

Grant monies are usually not available for profit-seeking businesses, with a few exceptions. You can find grant information at:

  • Credit-reporting agencies:  
    •  Equifax, Experian, and TransUnion are the three major credit reporting agencies. You can request a free copy of your credit report from each agency once a year through AnnualCreditReport.com.
  • Credit Monitoring Services:
    • Several online services offer free credit monitoring, including access to your credit score. Examples include Credit Karma, Credit Sesame, and WalletHub.
  • Credit Card Statements:
    • Some credit card statements provide your credit score as a part of their monthly or quarterly reporting.
  • Banking Apps:
    • Many banks now provide your credit score through their online or mobile banking apps. Check with your bank to see if this service is available.
  • Credit Score Websites:
    • Some websites offer free access to your credit score without requiring a credit card. However, make sure the site is reputable and secure.

Yes. There are several kinds of non-traditional sources of financing such as microlending programs, angel investors, venture capitalists, and various other non-bank lenders. For insights into these ideas, contact the SBDC.

Business Planning
  • A business plan is a comprehensive document defining, acting as its resume. It accomplishes this by:
    • Identifying your business goals
    • Describing products and services 
    • Defining target customers
    • Outlining production, management, and marketing activities
    • Projecting potential profit or loss 
  • Your business plan acts as a guide ensuring alignment with goals. While SBDC advisors don’t write business plans they assist in the refinement and assessment of the plan, offering recommendations for success.

A feasibility study is a detailed preliminary evaluation of your business idea to see if it is worth pursuing. A feasibility study includes the assessments of the management team, market prospects, and potential pitfalls.

Using business planning software can help aid in effective and streamlined business planning.  Your local SBDC office can provide you access to tools that will help you craft an effective business plan.

No. An experienced Arizona SBDC advisor will lead you in developing a comprehensive business plan, offer guidance on cash flow and capital requirements, and assist in assessing and planning for sales and marketing needs.

The time required to write a business plan varies, but on average, it may take anywhere from one to three months, depending on factors such as the complexity of your business, research needs, and your familiarity with the industry.

Starting a Business
  • Starting and owning a small business requires a unique set of skills distinct from managing or working for a larger company. Arizona SBDC offers valuable resources through informational workshops and events, covering essential aspects of business initiation and growth. Explore the Events page for upcoming sessions at your nearest SBDC Center. Schedule an appointment with an AZSBDC Business Advisor by calling your local Center or submitting an Online Request for Counseling HERE. Benefit from free and confidential assistance in developing your business plan. How much money do I need to get started?
  • The required initial capital for starting your business depends on factors such as facility and equipment needs, operating expenses, and loan repayments. It is recommended to collaborate with an accountant for a precise estimation based on your business plan.
  • The specific registration and licensing requirements can vary by several factors including location, industry, and the type of business you are planning to operate. Here are some typical licenses entrepreneurs commonly require. 
    • Business Registration: You may need to register your business with the Arizona Corporation Commission. This could include obtaining a trade name or filing articles of incorporation.  
    • Business License: Most local governments will require a business license.  The requirements and fees vary between municipalities. 
      • State: You may need to register for state taxes, such as sales tax or state income tax, depending on your location and the nature of your business.
      • Federal: In the United States, most businesses need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This is used for tax purposes and is essential for businesses with employees.
    • Local Permits and Zoning Approvals:
      • Your local municipality may require specific permits based on your business activities. Industry-Specific Licenses:
      • Certain industries have specific licensing requirements. For example, healthcare providers, contractors, food establishments, and financial services may need industry-specific licenses.
    • Professional Licenses:
      • Some professions require individuals to obtain a professional license to practice legally. This includes professions like law, medicine, architecture, and others.
    • Environmental Permits:
      • Certain businesses, particularly those in manufacturing or with environmental impacts, may need permits to comply with environmental regulations.

Navigating the legal landscape for starting a business involves considerations such as obtaining the necessary licenses, adhering to zoning laws, and understanding various regulations that can vary based on the nature of your business. Explore our Resources page for valuable links, including information from the Arizona Corporation Commission. Additionally, you'll need to make critical decisions regarding your business structure (corporation, partnership, or sole proprietorship) and tax status (e.g., type of corporation or LLC). Seek guidance from a legal professional and/or an accountant to ensure the proper formalization of your business. It's important to note that Arizona SBDC advisors Business Advisors don't provide legal or accounting advice, but they may offer referrals to qualified experts who can assist you in these areas.

Owning and managing a small business can be rewarding, but it comes with its own set of challenges. To assess if you have what it takes, consider the following factors:

  • Evaluate your passion and commitment to your business industry
  • Do you possess an entrepreneurial mindset?
  • Assess your resiliency. Are you able to bounce back from challenges
  • Do you possess the decision-making, leadership, and problem-solving skills required for entrepreneurship?
  • Are you able to adapt to changing environments?
  • Do you embody a customer-focused mindset?
  • Are my networking skills sufficient for achieving success?
  • Can I sustain a balance between work and personal life, and what impact might this have on my family?
  • Do I plan and organize well? Am I detail-oriented?
  • Is my drive strong enough to keep me motivated?
  • How will the business impact my family?
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