By Davine Lopez
People do not plan to fail, they fail to plan. This is SCORE's main motto.
The SCORE Association (Service Corps of Retired Executives) is a nonprofit organization designed to develop effective business plans, advise and create strategies for potential business owners and help business expansion.
Bob Dore, a retired owner of True Value Hardware Store, is a SCORE volunteer. Dore was in business for 30 years and says he opened his store before the term "big box business" existed.
"I was here back in the '70s before these big box stores like Home Depot and Price Club opened, which would have made it much more difficult," Dore said. He said he is aware of challenges new business owners face today.
The 12-year volunteer said he enjoys his work immensely.
"I've worked for somebody else for several years, and the satisfaction of owning your own business is definitely a big plus," Dore said. "You're contributing to the community and the small businessperson is a very important part of our (United States') makeup."
The Tucson chapter has 40 counselors available five days a week. All scheduled appointments are free and confidential.
"We give them homework and suggestions. We don't do their work for them," Dore said.
Each potential business owner leaves with an outline of basic points that need to be considered when starting a business. This outline also aids them in creating a bank portfolio.
Then they are matched with a counselor who has experience in their field.
For example, someone who wants to open a restaurant is matched with a counselor who has experience in opening up restaurants, Dore said.
Karen Lebow, owner of Auntie Hilary's Toys & Books Inc, 6890 E. Sunrise Drive, opened her business two years ago and a few months later opened up a second location at 50 S. Houghton Road. She travels the world looking for specialty, educational and "edutainment" toys for her store. She also got her start by attending SCORE seminars.
Lebow consulted with them more than 20 years ago when she worked in a California Jewish community center.
"The financial system was such a mess, they helped me sort things out," Lebow said. "They came in very willing to help, and I'm really grateful."
The organization is helpful because the volunteers are not just teachers, they have years of experience, Lebow said. You can bank on them, she added.
SCORE has 12,400 volunteers nationwide and is a partner of the Small Business Administration (SBA).
Since 1964, SCORE has helped 4.5 million small business owners, and assists about 300,000 entrepreneurs annually.
Funding plays an important role in starting a business. SCORE offers several free and low-cost seminars, including Accounting 101 for start-ups, as well as loan information seminars. A prospective business owner must have money saved to open a business, Dore said.
"Most people don't realize that to open a business it takes money," Dore said. "Just like a loan for a house or anything else, you have to put money down."
Melissa Amado, account manager for business development finance corporation (BDFC) agrees.
"You'd be surprised at how many businesses don't take the interest expense into the monthly payment." When you sell your product you want to make a profit and have a business plan showing you can afford to be in business, Amado said.
BDFC offers a variety of loan programs business for start-ups and expansions. About $14 million in loans has been generated since 1981. Statewide, BDFC has financed more than 500 Arizona businesses, totaling more than $460 million.
With 12 employees in the Tucson chapter and eight in Phoenix, Amado stays very busy. She averages 20 to 30 calls per day statewide.
Amado also stays busy at the Pima Community College Small Business Development Center, where she teaches finance workshops. Amado recommends low-cost or no-cost programs like the Tucson Women's Business Center and SCORE that create strategies for business development and growth.
Tracey Gransie, the economic development manager for the Tucson Metropolitan Chamber of Commerce, said her organization has 3,200 business members. They lobby members who don't have the time or knowledge to deal with the logistics.
"We definitely recommend and send them to SCORE," Gransie said.
The most important thing in a business plan is a vision, Gransie said which helps prospective owners. "We send them to the right agencies such as SCORE, BDFC, Chicanos Por La Causa and a few others," Gransie said.
"There's no such thing as free money, that's why a businesses plan is so important," Gransie said.
Now, more than ever, low-interest loans for women and minorities are readily available, she said.
Owning your own business is not the easiest thing to do, Dore said. It requires ambition and drive, and its a lot of work, he added.
"You have to be convinced and know this is something you really want," Dore said.
The Tucson chapter needs Hispanic volunteers he added.
"I wished we had more Hispanic clients and Spanish-speaking business people willing to volunteer as little as four hours a week to attract the Hispanic community," Dore said.
"The success rate of new businesses is low. It's something like four out of five businesses fail in the first two years and one out of five have a chance at being successful, That's why were here, to improve those statistics."