Long-time friend of MANA Bob Reiss has graciously allowed Agency Sales magazine to serialize his book Bootstrapping 101: Tips to Build Your Business with Limited Cash and Free Outside Help, available now on Amazon.com. The book looks at surprisingly effective low-cost and no-cost ways to acquire the resources you need to run your company. Whether your company is an existing enterprise or a start up, a manufacturers’ representative company or a manufacturer, this book will introduce you to innovative ways to cut your costs and drive more of your income into bottom line profits.

“Government help” may sound like an oxymoron to many people. I know that I never believed any help from the government that was free was of value. I also felt the paperwork that came with it was probably not worth the effort.

In exploring this avenue, I was pleasantly surprised to discover all the high-quality assistance that is available to start-ups and existing small business that is free. In this chapter we will take a look at some of these government entities, such as SBA, SCORE, SBDC, PTAC, Department of Commerce, U.S. Customs, U.S. Embassies, and others.

However, there seems to be one common thread with all these entities. Most small and wannabe business owners that I talk with are unaware of these agencies. If they have heard of them, they don’t know how they can benefit from them.

We will highlight each entity in this chapter. Hopefully, you will be able to benefit from their free help and advice.

SBA

SBA stands for Small Business Administration. It’s a large agency of the Federal government whose mission is to counsel, assist, and protect the interests of small business as well as to assist in the economic recovery of communities after disasters. The SBA states that they are here to help Americans start, build and grow businesses.

The SBA is the prime source of money for SCORE, Small Business Development Centers (SBDC), Women’s Business Centers (WBC), and Veterans Business Outreach Centers (VBOC). All are discussed separately.

One of the major contributions SBA makes to small business is their loan program. They do not lend money directly to businesses. Rather, they guarantee 75-85 percent of the loan that your local lender (mainly banks) will make. Applications for loans must be made to your local lender. They will ask you to fill out their forms and conduct their due diligence. If you fall short of their criteria, then the SBA guarantee can put you over the top for getting the loan. The maximum SBA loan is $2,000,000. In 2008, SBA approved $17.96 billion in loans at an average size of $183,000.

You should be prepared to pledge assets and sign a personal guarantee for the loan. The small business district offices, SCORE, and SBDC can help businesses fill out the loan application and guide you through the process. SBA will back loans for start-ups and existing small businesses.

The SBA website: www.sba.org can tell you the location of the nearest office to you and detail all their services. Their phone number is (800) 827-5722.

SCORE

Large companies, despite a great number of highly paid staff, hire outside consultants to advise them on myriad matters and pay them a great deal of money. There is a non-profit association that can act as your consultant: its point of difference is that it is free. The organization is called SCORE (formerly called Service Corps of Retired Executives) and is now referred to as “Counselors to America’s Small Business.”

SCORE’s mission is to provide resources and expertise to maximize the success of existing and emerging small businesses.

SCORE has offices spread out over the country with 370 chapters.

They have more than 11,200 volunteer executives to counsel business people who approach them for help. The business could be a start-up enterprise or an existing one. Their service is open to everyone regardless of education level, race, religion, resources, etc.

SCORE was founded in 1964 and has helped millions of businesses strive for success. SCORE counselors are uniquely qualified to help you. They have real world experience. They have specific industry and general business experience. They have a record of success in their careers. All counselors receive training in problem solving, listening and counseling skills. They are here to provide general business advice on how to start, manage and grow your business and are partially funded by the U.S. Small Business Administration.

Most counselors are retired, but many are still active in their own businesses. The one thing they all have in common is they are highly motivated to give back to the community by helping enterprising business people succeed. All are volunteers and have no hidden agendas.

Personally, I think they could improve in one area: the marketing of themselves. Too few know who they are.

So, I am telling you loud and clear that SCORE is there, waiting for you to call for their assistance. There is no recruiting. You have to take the first step, which is a great bootstrapping one. All this help for free, nothing, zip. Got it? In this case free and quality go hand in hand.

SCORE will also provide you 24/7 help via their Internet site: www.score.org. There are scores of counselors with every skill available to assist you online. Your query will get an answer within 48 hours.

So, how do you get started? The first step is to find the nearest chapter to you. This can be determined by going to their website or by calling (800) 634-0245.

When you call your local chapter, you will be asked something about your business or would-be business. This gives them the ability to match you with the most appropriate counselor. Then you’ll get an initial one-hour appointment. Most likely, the counselor will give you some homework to do before your next appointment. There are no limits to the number of appointments you can have. There can be follow-up mentoring via phone and e-mail. However, be aware, do not expect the counselor to do your work for you. They will guide you in developing a road map to success and will also point out possible pitfalls and act as the devil’s advocate. Your success is dependent on your hard and smart work. Also know that SCORE does not provide money for anyone. They will, however, counsel you on all your options to raise it.

You should know that anything you tell your counselor is held in the highest confidence. All SCORE counselors sign a code of ethics agreement that protects and honors the privacy of the client’s information.

There are no tests to pass or birthright qualifications to get an appointment. I can’t see why any small business would not avail themselves of this free, high-quality resource. I wish that I had known about SCORE when I was starting all those different businesses over my career.

SBDC

SBDC stands for Small Business Development Centers. There are nearly 1,000 centers in the United States. They are partially funded by the Federal Government through the Small Business Administration (SBA). They form a cooperative effort with the private sector, the educational community, and local government. SBA will match the amount of money contributed by the private sector and educational partner in order to operate a Small Business Center. Each year SBDC offers assistance to more than one million small business owners and aspiring entrepreneurs.

SBDC’s mission is to provide management and technical assistance to current and prospective small business owners. They offer one-stop assistance to individuals and small businesses by providing a wide variety of information and guidance in central and easily accessible branch locations.

Their advice and counsel are confidential and free of charge.

There are no eligibility requirements to get their assistance. Everyone can use them. In 2008, 46 percent of SBDC business consulting clients nationwide were women, 35 percent were minorities, and nine percent were veterans. Their counseling is on a continual basis if the entrepreneur wants it and does his or her homework.

SBDC counselors are paid employees with real business experience. SBDC regularly conducts seminars on appropriate subjects for wannabe and current business owners. They offer an extensive array of continuous courses to help you in your business and in specific industries. There are in-person and online courses. Courses cover writing business plans, accessing capital, marketing, regulatory compliance, international trade, selling, customer service, accounting, and much more. These courses are offered at modest fees, and this is in addition to the free face-to-face on-going counseling.

The Association of Small Business Development (ASBDC), located in Burke, Virginia, states as its mission “to represent the collective interest of our members (all 1,000 SBDC Centers) by promoting, informing, supporting, and continuously improving the SBDC network which delivers nationwide educational assistance to strengthen small/medium business management, thereby contributing to the growth of local, state and national economies. Their website is www.asbdc-us.org. It will give you a good understanding of SBDC and most important give you the location and address of the SBDC closest to you.

Each individual SBDC center has its own website. What is most interesting to me is that each individual center of the 1,000 center nation-wide network is free to adapt programs to their own environment. They are individually entrepreneurial.

If I were to start a new business today, I would definitely avail myself of their free counseling. They are a great bootstrapping asset.

PTAC

PTAC is a government agency funded primarily by the Department of Defense plus local government, educational institutions, and businesses. It stands for Procurement Technical Assistance Center. There are 253 centers in the country.

The PTAC’s mission is to maximize the number of capable U.S. companies participating in the government marketplace by:

• Providing businesses nationwide with an understanding of the requirements of government contracting and the marketing know-how they need to obtain and successfully perform federal, state and local government contracts.
• Supporting government agencies in reaching and working with the suppliers they need. (The government is committed to allocate a substantial amount of purchases to small business.)

PTACs provide a wide range of assistance — most free of charge — to businesses through one-on-one counseling, classes, seminars and matchmaking — all with the goal of helping you secure contracts with all government entities including military post exchanges. They look to help all sized companies; and there are opportunities for every type of company, whether service or product oriented. The company should be in business for at least one year. Their free-of-charge counselors are full-time employees.

Here are some of the specific ways they can guide you through the labyrinth of procedures and regulations. Imagine, this is an agency that does more than offer counsel. They actively help you get orders with a customer who can pay their bills.

Here are some of the specific activities they perform for you:

• Determining Suitability for Contracting — The government marketplace poses unique challenges that can overwhelm or even ruin a company that does not have the maturity or resources to meet them. A PTAC counselor can help you determine if your company is ready for government opportunities and how to best position yourself to succeed.
• Securing Necessary Registrations — our PTAC can help make sure you are registered with the various databases necessary for you to participate in the government marketplace, including the Department of Defense’s Central Contractor Registration (CCR), the SBA’s Dynamic Small Business Search, and other government vendor databases.
• SDB, 8(a), HUBzone and Other Certifications — Certain small businesses are eligible for preferred status in some solicitations. A PTAC counselor can help you determine if your company is eligible for any of these certifications and guide you through the steps necessary to secure them.
• Researching Procurement Histories — “What agencies have bought products like yours in the past? Which companies have been awarded these contracts? How much have they been paid?” Answers to questions like these are necessary to guide your marketing strategy and give you a competitive edge. Your PTAC can help you ask the right questions and get the information you need to succeed.
• Networking — Most PTACs sponsor regular “matchmaking” events, providing critical opportunities to connect with agency buying officers, prime contractors, and other businesses that may offer teaming or subcontracting opportunities.
• Identifying Bid Opportunities — A PTAC can make sure that you are notified — on a daily basis — of all government contract opportunities that your company is eligible to bid on.
• Proposal Preparation — A procurement specialist can help you navigate even the most difficult solicitation package, including securing necessary specifications and drawings and determining pricing. You will never need to pass up a great contract opportunity just because the solicitation is too complicated.
• Contract Performance Issues — Even after you’ve been awarded a contract, your PTAC may be able to help with certain contract performance issues, such as:
  • Negotiating and interfacing with the agency.
  • Developing a cost-accounting system.
  • Bonding and interim financing.
  • Developing environmental, quality control and accident prevention plans.
• Preparing for Audit — When it’s time for your contract audit, your PTAC can make sure you know what to expect and what you will need to have all documentation in order.

PTAC can also help minorities locate the special opportunities, mainly set-asides available for them.

You can go to www.aptac-us.org to locate the PTAC near you. PTAC is a strong bootstrapping tool.

MBDA

MBDA stands for Minority Business Development Agency. They are a part of the U.S. Department of Commerce. The mission statement of the agency is to enhance the growth and expansion of minority business enterprise.

Their definition of minority encompasses all ethnic categories. Women are not considered a minority in this agency. They do not lend money. Aside from advice, they seek to help minority small businesses get government contracts.

Their website www.mbda.gov shows the closest office to your location. They are not in all cities.

VBOC

VBOC stands for Veterans Business Outreach Center. They have five locations in the country, each covering multiple states. Their website: www.vboc.org will give you phone numbers, contacts and states covered for each.

VBOC centers are designed to provide entrepreneurial development services such as business training, counseling and mentoring, plus referrals for eligible veterans owning or considering starting a small business.

Any former member of any branch of the U.S. Military with an honorable discharge can seek their services free of charge. They don’t lend money but can help you with counsel to raise it. In some states, there are set-asides for disabled veterans. For those veterans who do not live near the five locations, they can be served by SBDC or SCORE.

Department of Commerce

This is a large government agency whose head has cabinet rank. They have offices throughout the world. The mission of the Department is “to foster, promote, and develop the foreign and domestic commerce” of the United States.

There are many agencies under the Department of Commerce’s jurisdiction. Some are Bureau of the Census, Economic Development Administration, Minority Business Development Agency (MBDA), U.S. Customs, and others. We talked about the MBDA. I think the Commerce Department offices in foreign countries and U.S. Customs offer specific bootstrapping opportunities. We’ll explore them here. For other information on this vast department with large amounts of information, you can visit their website: www.commerce.gov. Their Washington phone number is (202) 482-2000.

The Commerce Department’s office in Hong Kong was very helpful to me when I was in the watch business. At that time, most of the knock-offs were coming from Hong Kong (pre-China). A number of our copyrighted watches were being copied and were showing up in the United States. We couldn’t locate the culprit. On one of my visits to Hong Kong, I dropped into the Commerce Department offices and explained my dilemma. They went out of their way to solve my problem. Through their extensive database of all manufacturers on the island, they discovered the company that was copying my watches. Knowing they had no legal authority, the entrepreneurial officer at the agency nevertheless wrote a firm letter on U.S. Commerce stationery to the head of the company that was manufacturing these infringed watches. That alone was enough to halt the making of these watches. My problem was solved at no cost to me. You might call this luck. However, when you think about it, one of the Commerce Department’s missions is to help U.S. business in the country where they’re stationed. It was obvious to me after I went there that few Americans avail themselves of this resource. Commerce would have also been a valuable asset in recommending appropriate manufacturers and providing information on the climate for conducting business there.

A number of agencies under Commerce are involved in issuing and enforcing intellectual property rights.

There are three types of rights you can register for. I believe you can apply for two of them yourself and save legal fees by doing so.

Copyright

Copyrights protect original works of authorship such as literary, musical, sculptural, and pictorial works, motion pictures, sound recordings, computer software, and videogame software that have been fixed in a tangible medium of expression. Copyrights are registered with the United States Copyright Office.

Trademarks and Trade Names

A trademark is a word, name, symbol, device, color or combination thereof used to identify and distinguish goods from those manufactured or sold by others and to indicate the source of the goods. Trademarks must be registered with the United States Patent and Trademark Office (PTO) on the Principal Register to receive IPR protection from Customs.

A trade name is the name under which a company does business. Trade names are not registered with the Patent and Trademark office, but may be recorded with Customs if the name has been used to identify a trade or manufacturer for at least six months.

Patents

A patent is a legal monopoly, granted by the U.S. Government, which secures to an inventor for a term of years the exclusive right to make, use, or sell his invention. The U.S. Patent and Trademark Office issues patents for novel, useful, non-obvious inventions, including processes, machines, manufactures, compositions of matter, or improvements thereof.

Customs’ authority to enforce patents is much more limited than its authority to enforce trademarks and copyrights. Customs may not make legal determinations of patent infringement. Its patent enforcement authority is limited to enforcing exclusion orders issued by the U.S. International Trade Commission (ITC).

You can obtain copyrights and trademarks without needing a lawyer. Patents are more complex and hiring an intellectual property attorney is recommended.

The cost of a copyright is $35 if you apply online and $45 with a mailed hard copy application.

You can apply online for a copyright at www.copyright.gov or phone (202) 707-3000 for any questions.

Trademarks cost $325 online and $375 if you apply with a hard copy through the mail.

You can apply online through the United States Patent and Trademark Office at www.uspto.gov. For questions, call (800) 786-9199.

After you have received your copyright, trademark or patent, you can then litigate to stop infringers. Litigation can be a costly process, and I would advise that you try to negotiate a settlement, rather than go to court. This is easier to do on copyright infringement as illustrated in our experience below.

If your protected product is copied overseas and imported to the United States, there is a cost-free way to halt these imports. Contact the U.S. Customs office and record with them your registered intellectual property. Their website is www.cbp.gov. They can then look for the infringers’ shipments at our entry ports and confiscate them. This will abruptly stop the offender. However, you cannot collect damages using this route — but it is cost-free. To collect damages, find out the U.S. users of the product and use a lawyer to proceed with negotiating or litigating a settlement.

When we were in the watch business, we added 50+ new designs (new watches) each year. These were all original art that was done by outside freelance artists for us. We took out a copyright for each one. We did not use an attorney. Our secretary filled out each application and mailed it in to Washington, D.C., with a check for $30. Usually, within six weeks, we received our copyright approval with a unique number.

Copyrights are easy to circumvent. All you have to do is just change a portion of the art. However, most knock-off perpetrators are lazy and copy your art exactly. This happened to us quite often, and we won two suits a year. We never had to go to court. Our lawyer’s letter, at a small cost, usually did the trick. If a customer was the infringer, we often settled for increased business rather than a cash settlement. Our motto became “Sell rather than Sue.”

WBC’s

WBC stands for Women’s Business Centers. They are an agency that gets most of its funding from the SBA. They have 115 centers in the country. Their association website: www.awbc.biz can help you locate the center nearest you. Their mission is to help women in every phase of starting and growing a business. Their services are free of charge and are open to all women.

They can be a valuable asset to help the new entrepreneur find a female mentor. They do not loan money but can assist and counsel you on the “how to’s” of raising it. Their services are similar to SBDC and SCORE with the added benefit of insights on dealing with women’s issues in the workplace.

U.S. Embassies

The United States has an embassy in almost every country in the world. You can go to the State Department website (www.state.gov) for a list of all the countries and the contacts there.

The embassy is an out-of-the-box entity for a small business source. My personal story in using a U.S. embassy was when I had my watch company and acquired a license for an Elvis Presley watch. I had noticed earlier that many retailers sold musical Mickey Mouse watches, and my research showed that these watches were made by Seiko, which owned a patent on the musical part of it. Seiko was a Japan-based company. I tried to contact them regarding obtaining a license or to have them make the movement for me with the Elvis tune that we would supply, and I was prepared to visit them in Japan. It was an easy stop off for me when I visited China where our watches were made. Despite numerous attempts to contact Seiko to set up an appointment, my entreaties were greeted with silence. So, as a long shot, I contacted the U.S. Embassy in Japan to ask for help in getting an appointment with Seiko. I was pleasantly surprised at their timely response in contacting management at Seiko on my behalf. This was quickly followed by my receiving a warm response from a high Seiko official, inquiring when I would like to set up an appointment to see them. When I did see them in Japan, I was ushered into an elegant conference room where 12 Seiko people were sitting, waiting to hear my story. This was an amazing outcome in my mind to a simple inquiry. A small business guy (although I was physically taller than everyone) all alone with 12 managers of one of the largest companies in Japan.

When you think about it, one of the missions of an embassy is to assist American citizens visiting their country. My inquiry was a rarity and therefore got their attention. Compared to the complex problems they frequently encounter, this was an easy good deed for them to accomplish. An official request from an American embassy can carry great weight with a foreign business in a friendly country.

The old maxim “nothing ventured, nothing gained” applies here. I believe this is as good a source to use as any to get an introduction to a firm you want to sell.

The back end to this story is after a lengthy, cordial meeting, they refused to sell me or license me their technology. They did offer to sell me their musical clocks, which I somehow believed were not good sellers for them.

Fortunately for me, six months later, someone invented a new musical watch chip, much less expensive than Seiko’s, which I was able to successfully use.

Libraries

The oldest source of research is still alive and well. Your local library, now equipped with computers and helpful librarians as well as quiet, can be a valuable resource for your business.

They are still free. Visit them.

MANA welcomes your comments on this article. Write to us at [email protected].