Q&A: SBDC director talks small business costs and preparation

Editor's note: This is one in a continuing series of state-of-the-entity interviews with local officials. Sandra Taylor-Sawyer is the director of the Small Business Development Center at Clovis Community College.

Q: Are you seeing an increase in clientele (people who seek to start new businesses)?

A: Yes, we are. Really, since 2021, we have seen an increase in the number of people who are wanting to start to expand or diversify their business.

Q: How well-prepared is a typical client about starting a business?

A: Well, that's why I have a job, right? A lot of folks are very knowledgeable, of course, that's why they would like to go into business, based on their skills, whatever type of service or product that they're going to offer.

It has always been, in the 30-plus years that I've been doing this, it's really what we like to call the business side of business. When it comes to record keeping, the accountant, keeping the books. I would say it's not the only important part of the business, but it's definitely a main part of the business.

You really have to know what your numbers are telling you, so you can make a good business decision on whether to hire more employees or maybe increase or even decrease your prices. You're really not going to be able to have all the information to make those decisions if the financials aren't up to par.

Q: Is it true or just a myth that most small businesses fail in five years?

A: According to the Small Business Administration, year after year, yes. Over half small businesses fail within five years, and then probably another 25% will fail, I can't remember if it's in another five or 10 years. Our percentage is not as high as they had from those businesses. But yes, average nationwide.

Q: How much is inflation increasing startup costs and has that discouraged potential clients?

A: I know several businesses that needed to either remodel, or even build a totally new structure. But because of the crisis, you know, they have waited. And this has been waiting over a year.

I know of one business in particular, that they are looking at building from the ground up, in a new location. They've been put on hold for, I think it's going to be definitely over a year.

I know there are businesses that because of the cost of building new, they have decided not to go into business.

Even the remodeling I believe, I don't think they're quite open just yet. But they have definitely had to go through some delays because of price and regulations.

I would not say that they're not wanting to get into business, but more that they're maybe prevented from starting up. There's still a hunger out there for people to want to have their own business.

Q: What are the most popular lines of businesses people are thinking of venturing into?

A: Still a lot of service- versus product-based businesses, we see a lot more service-based versus product-based.

Q: What is the market telling SBDC about the most areas for new business in rural areas? Is there more interest in certain areas?

A: Our service area covers Curry and Roosevelt counties. We have seen people that have been interested in both locations. And just because Clovis is bigger, of course, the majority have been for Clovis, so there's a higher percentage. But, we still see that they want to open their business in both of those counties.

Q: What areas are people strongest and weakest in when it comes to putting a new business into operation?

A: It really varies. It really does. The financial and the business side of business, I would say, seems to be probably the weakest that I have seen from the majority of the businesses. They do know their product or their service, whatever they're doing. Probably marketing would be another area that may be somewhat of a weakness. And when I say the markets, that means really knowing their customer.

Those two together and really all of it, all of them are risks.

I know a lot of people don't like to hear this, but starting a business and having a business is a gamble. And a lot of people don't see it that way. Yes, you do want to plan, and you do want to strategize. That's one of the reasons why we highly encourage people to come talk to us at the Small Business Development Center, so that we can help them go through that risk assessment.

Q: What do you all have going on right now with SBDC?

A: We're really excited about the two-day summit that will take place on (Tuesday and Wednesday). It is an all-day food summit conference called the Brazos River Headwaters Local Food Summit.

We've partnered with both chambers, Clovis and Portales, and our economic development department. Also, Ogallala Commons. This is really just to encourage those that are already in those types of businesses, whether it's growing fruit, food in the ground or for animals, and then producing those. There may be individuals that are looking at improving their gardening skills and wanting to start some sort of business with that.

- Compiled by Landry Sena, the Staff of The News