The three basic considerations when entertaining starting your own business are:

Viability: is the business likely to succeed? Approximately 90 percent of new businesses fail in the first few years. Proper planning, structuring and utilizing a well- thought-out business plan can enhance your chances of viability. It is strongly recommended that you seek professional help in preparing this document. Volunteer organizations such as SCORE (Score.org, local chapter at 803-641-1111 or Small Business Development Center (SBDC- 803-641-3646), both of which offer free business counseling and are subsidiaries of the Small Business Administration may provide critical assessment of your ideas.

Other resources are professional fee-for-service individuals such as accountants, lawyers, and certified financial planners. No matter which of these you choose, see them early and often to get guidance and avoid the plethora of pitfalls that plague most start-ups.

Financing: The first rule of thumb is to avoid investing more than you can afford to lose.

Individuals utilize IRA’s, home equity loans, savings accounts, credit cards, loans from friends or family members, commercial loans from banks or credit unions, and rarely, grants to start the business. Common misconceptions are that there is “free money” available in the form of grants, or that the government (i.e. the U.S. Small Business Association – sba.gov) loans money. The grants are few and far between. The SBA has some outstanding programs, especially for women, minorities, veterans and others, but these are loan guarantees, and must be processed through usual banking channels. The SBA guaranteed over $200 million in loans in South Carolina in Fiscal Year 2014.

A relatively new program, Microloans, is available through one of the local banks. They require a well-thought-out, professionally mature Business Plan to even start the loan process. Contact Score or the SBDC for programmatic details. The Community Development Improvement Corporation, 803-663-6848, makes loans that are geographically restricted to certain areas of the county deemed needy of business growth.

Another financing option is through outside investors (angel investors) who are individuals desiring to put money in worthwhile and likely-to-succeed businesses. Their return on investment may be partial ownership of the company in the form of stock, option, or warrants to buy the stock at a predetermined price several years hence. By utilizing the angel investors, the entrepreneur gives up part ownership of his/her company for the benefit of having the necessary capital to start or expand the business. South Carolina, as do most states, offers tax benefits to those individuals willing to risk their money in this type of investment.

If you are using loans from individuals (family, friends, etc.), it is imperative to prepare a legally binding document including the amount of the loan, interest, repayment schedule, payoff details, and what happens if the company fails. This way, there can be no confusion as to who said what, and what the verbal agreement was.

Marketing: Although not a financing parameter per se, marketing your product or service is the key to success for small businesses.

An in-depth market analysis of competitors, need for the product, target audience, optimal marketing vehicle, competitive advantage, and cost of effective marketing weigh heavily in determining the likelihood of success. The old adage “if you can’t sell it, don’t make it” applies acutely to the decision making that one goes through in market projections and company viability.

Small businesses are the key to economic recovery and growth in this country. If you elect to go this route for your future, by all means reach out for help in your decision making. Too often family members are the only consultants used, and they may be seriously biased by your enthusiasm or the desire to see you get out of a job that is less than rewarding. Starting a small business is a major commitment of time, resources and energy. Good luck, but get professional help in making the decision before you leap.

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The August 2014 unemployment rate in the United States is 6.1 percent, down from 10 percent in October 2009. Interestingly, there is substantial variability among unemployment rates based on education. For example, the unemployment rate for individuals with less than a high school diploma is 8.6 percent whereas it’s 3.6 percent and 2 percent for individuals with a bachelor’s degree and a professional degree (e.g., nursing, engineering, pharmacy, education, or law), respectively. These figures show that more education increases the chances that you will be employed. Other government figures show similar results for salary. Individuals with more education possess characteristics and attributes that are valued more highly by the marketplace than individuals with less education.

Recently, U.S. News and World Report published its guide to “America’s Best Colleges” and USC Aiken is once again ranked No. 1 among public regional colleges in the South. As a financial economist, I understand the impact USC Aiken is having on the lives of individuals in the Central Savannah River Area and South Carolina. The university provides a quality, accredited education that helps South Carolina reduce unemployment and increase income per capita.

Since coming to USC Aiken five years ago, I’ve taught a course that requires students to develop, analyze, and present their own business idea. Around the same time Laura DiSano and Bob Clark started as business consultants at the Aiken Small Business Development Center, located on the USC Aiken campus. Together, we help interested students who take my course launch their businesses and help guide entrepreneurial minded students as best we can. Why look for jobs when you can create them? This may not seem like much, but students who have followed through with their ideas are filing patents and learning how to start small businesses.

In addition to efforts between USC Aiken and the Aiken Small Business Development Center, the USC system is continuing an entrepreneurial competition called the USC Proving Ground. The competition is awarding over $80,000 in cash and startup support for innovative business concepts. It is a three-month program that includes three rounds of competition with eliminations after each round. You must survive all three rounds to be eligible for prize money. The purpose of the competition is to foster a spirit of innovation and entrepreneurship, and I’m encouraging my students to submit their work. Students who are serious about winning prize money will benefit from seeking help from the Aiken Small Business Development Center or SCORE. Regardless of the competition outcome, local resources are working together to help students explore the world of entrepreneurship and test their business concepts against other high quality startups. Why look for jobs when you can create them?

Another local entrepreneurial resource is The Mill on Park’s Innovative Entrepreneurs Forum. This group was created by Laura DiSano at the Small Business Development Center and the USC Aiken School of Business. It is being sponsored by the Greater Aiken Chamber of Commerce. The goal of the forum is to identify innovative entrepreneurs within the Aiken business community and help them grow their businesses by providing them with support, education and mentoring. Through this collaborative effort, we hope to identify other local, innovators with novel products and services. The forum promotes dialogue, learning and communication to enhance business performance and development. Interested? Contact the USC Aiken School of Business.

A new effort in Aiken that is sponsored by the Greater Aiken Chamber of Commerce and hosted on the USC Aiken campus is the Young Entrepreneurs Academy. It is designed for middle and high school students. The goal of the academy is to develop business and social skills and foster an entrepreneurial mindset. I look forward to helping this new program succeed, and USC Aiken alumni and business students are ready to help these youngsters develop their own entrepreneurial spirit.

Finally, The Small Business and Entrepreneurship Council develops annual state rankings on policy measures and costs impacting small business and entrepreneurship. In 2013, South Carolina ranked 17th on the policy index and 17th on the business tax index. Rankings like these are important. First, statewide policies and tax structures help retain existing in state businesses and attract out of state businesses. Second, the rankings signal to entrepreneurs where it is more efficient and value enhancing to locate their startups. It’s important to foster a spirit of innovation and entrepreneurship within South Carolina and to have policies and structures in place to keep startups from leaving the Palmetto state.

As a USC Aiken professor, it gives me great satisfaction to see USC Aiken, state and local government, the local Aiken business community, and others working together to help entrepreneurs start and grow their businesses. USC Aiken business professors do not sit in their “ivory towers”, rather, we are active members of the local community who help others achieve their dreams and goals.

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As of late, we haven’t had much good economic news in Aiken. In particular, the sobering findings of an economic baseline study have been covered extensively in the pages of the Aiken Standard.

Even so, there are a few start-ups that show promise of being game changers. One of those is The Mill on Park, an office community for small businesses at the southeast corner of Park and Laurens, offered by Caradasa LLC, in partnership with USC Aiken.

One of the encouraging signs is the speed with which most of the available spaces at the Mill have been snapped up. However, an even bigger plus is its potential as a catalyst for what has become known around the country as urban “innovation districts.”

This phenomenon is described in the 2013 book, “The Metropolitan Revolution,” by Bruce Katz and Jennifer Bradley. Over the past decade, these innovation districts have sprung up in a variety of forms. Katz and Bradley cite evidence that a disproportionate percentage of our national economic recovery is happening because of the rise of these districts.

Most of them are in larger metropolitan areas; virtually every metro more than one-half million in population has one. However, it appears there is nothing to prevent the concept from working in smaller population centers such as Aiken.

The heart of the idea is that various business enterprises and other activities (cultural, governmental, educational, etc.) choose to locate in close proximity to each other, in order to benefit from resulting synergies and innovation that allow each to thrive more than they would have separately.

As a result, people not only want to shop and work there, but want to live right in the middle of this activity hub. Affordable housing then booms as part of the mix, and adjacent public spaces become venues for all manner of entertainment and cultural activities. In his book “Walkable City,” Jeff Speck relates the astonishing percentage of people, both in the under-40 crowd and the over-60 demographic, who now prefer to live in such settings.

And one of the best aspects of these urban innovation districts is that they often happen without public sector tax dollars coming into play. In many instances, the main role for government has been simply to relax some of the outdated mid-20th century zoning regulations that would otherwise prevent some of the creative mixed uses that are essential to the vitality of such a district.

In fact, it might be argued that downtown Aiken is already primed to become such a space, because of the unique blend of businesses, governmental offices and enjoyable public spaces. This transition can be accomplished while still preserving the unique character of Aiken.

At present, Aiken City Council is considering options for improvements to The Alley, repurposing the downstairs of the Municipal Building, and possible redevelopment of the property immediately to the east of that, along The Alley and Newberry.

What next steps might attract increased business development, more meeting space and public events, and affordable residential for young professionals and retirees? And can The Mill/USC Aiken partnership provide some of the heretofore missing ingredients to help enable that transition?

According to its developer Catie Rabun, The Mill does not aspire to be a “business incubator” of the sort that is driving much progress in larger communities such as Greenville and Charleston. That model would limit her tenancy strictly to business startups. “Really, we are just a facility that helps any small business of any size or age thrive in a downtown setting because of the proximity to other similarly sized business within the building, but also because of the proximity to an active, mixed-use, walkable downtown (opposed to a secluded home office, garage studio, or suburban office building).”

How cool would it be if an enterprise such as the Mill could help catalyze the crucial next steps for downtown Aiken to become an innovation district? It could be just the jump start Aiken needs in order to revitalize its economy without changing who we are.

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What does a seamstress, an inventor of spices, an individual with a patent pending on a device for caring for homebound elderly and disabled, a fashion designer, a scientific consultant or a biopharmaceutical company have in common? They are all clients of the Small Business Development Center at USC Aiken.

For 20 years, the Center, which has been hosted on the USC Aiken campus, and recently established an additional office at “The Mill on Park” as a new, collaborative business community – has provided expert business consulting at no charge to existing and emerging entrepreneurs.

The Mill on Park, USC Aiken and the Small Business Development Center have entered a formal collaboration to support economic development through servicing small business clients in our community.

The mission of the Small Business Development Centers, a network that spans the state of South Carolina and the nation, is “to advance South Carolina’s economic development by helping entrepreneurs grow successful businesses.”

The centers are hosted by universities and colleges and work closely with their communities, economic development partners, Chambers of Commerce and local governments, and are recognized as “the gateway and proven provider of small business assistance driving entrepreneurial growth and success.”

The services provided by each Small Business Development Center include: business planning, marketing and social media, financial planning and budget development, preparing clients for seeking financing through traditional and nontraditional sources, assisting in buying/selling a business, procurement opportunities and franchise opportunities. The Small Business Development Center also offers a variety of seminars in such areas as IRS tax workshops, QuickBooks, business research and education on U.S. Small Business Administration programs. We work with every type of prospective business owner – women, men, veterans, minorities and those with disabilities. The Center’s clients number in the thousands and span every ethnicity, economic background and religious affiliation.

Our goal is to serve all citizens of our community and we are supported by federal funds, matched by funds provided by the State legislature and county governments. In addition, the university provides Small Business Development Center office space and support services.

In 2013, the South Carolina Small Business Development Center network helped clients to create or save 1,059 jobs, as well as $41 million in Capital formation, $26.4 billion in government contract awards and 121 new business startups and served 4720 small businesses and individuals. In Aiken, the Small Business Development Center worked with 120 clients, provided close to 700 hours of one on- one counseling, helped to create 26 new jobs and 4 new business starts and offered multiple workshops to hundreds of citizens. For every dollar invested in the South Carolina Small Business Development Center, $10.15 is returned to the public in state taxes. In April 2014, the USC Aiken center received two prestigious awards.

The Small Business Administration District Office of South Carolina selected them as the “Center for Excellence and Innovation” for all of South Carolina. In addition, we were named as the Small Business Development Center of Excellence by the Small Business Development Center Statewide Leadership Group. We have recently launched, in conjunction with the USC Aiken School of Business, the first Innovative entrepreneurs’ forum to cultivate the development of innovative businesses with a regional, national or global reach.

Sponsored by the Aiken Chamber, this is a key city goal recommended by the Blue Ribbon Commission to foster new and innovative small businesses and secure Aiken’s economic future.

If you currently own or are contemplating establishing a small business, please call at 803-641-3646 or email SBDC@usca.edu. We look forward to continuing to support the economic development goals of Aiken through serving our small business community.

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There is a buzz in the air in Aiken these days, as many local residents and businesses are excited about the growing interest in enhancing the economic vitality of our community through a renewed interest in entrepreneurship.

At USC Aiken, we want to help our fellow residents fulfill their entrepreneurial dreams. Many of our alumni fall in love with Aiken while they are attending college here and choose to remain in town after they graduate from USC Aiken.

About 5 out of 6 of our graduates do not earn a business degree, yet many of them end up working in a business capacity in their organization or starting their own business.

Often, these graduates realize that it would be beneficial for them to return to school and get some formal training in modern business skills. Earning a Masters in Business Administration, or MBA, would help them to advance in their current organization or give them the background needed to be successful in starting their own business.

To help meet this need in our community, the School of Business Administration at USC Aiken has developed an innovative new MBA program designed exclusively for non-business students in the Aiken area. Pending final approval from our accreditation agency, the MBA for STEM and Liberal Arts will admit its first class for the Spring 2015 semester.

A part-time evening MBA program that can be completed in two calendar years, classes will be held on weekday evenings on the USC Aiken campus. In contrast with traditional MBA programs, which usually require non-business students to take a number of introductory business classes before beginning their MBA program, the MBA for STEM and Liberal Arts will integrate this introductory material into the required coursework. Admitted students will begin their MBA coursework from the start, without any required foundation or “catch-up” courses.

While there is no shortage of MBA programs available through various forms of distance learning these days, many people would prefer to earn their MBA via a face-to-face method of instruction. The MBA for STEM and Liberal Arts will be the first opportunity for Aiken residents to earn an MBA in a traditional classroom setting without having to drive to another town. As students proceed through the program, there will also be opportunities for them to engage in real-world projects with local businesses and entrepreneurs, particularly those who have offices in the new Mill on Park in downtown Aiken.

Finally, the MBA for STEM and Liberal Arts will also have a separate optional track for those non-business students with strong quantitative skills from one of the STEM fields (science, technology, engineering or mathematics). This STEM track is designed for students who are employed in technical organizations or manufacturing firms, with an emphasis on supply chain management and project management skills.

The School of Business Administration at USC Aiken recognizes the importance of enhancing the economic vitality of Aiken. We believe that bringing this unique new MBA program to Aiken will help to advance that goal and accelerate the new wave of entrepreneurship in our town.

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From the downtown addition of The Mill on Park to plans for the University of South Carolina Aiken’s new MBA program in early 2015, there’s a renewed spirit of entrepreneurism buzzing around Aiken these days. Along with these initiatives, the Greater Aiken Chamber of Commerce in partnership with USC Aiken and Aiken County Schools has an exciting new program focused on young entrepreneurs.

Last year the Aiken Chamber created a 24-member Blue Ribbon Panel to identify the next big ideas for our community. The panel was comprised of Aiken’s best strategic thinkers who looked for best practices, innovations and programs/projects that could add to the quality of life for the Aiken area.

One topic that quickly appeared on the panel’s radar was entrepreneurism and the need to stimulate growth of new and ongoing ventures in our community. The topic became the impetus for one of our key initiatives for 2014 – expanding the Chamber’s economic vitality emphasis, to include creating a program that fosters an entrepreneurial culture in young people, educators and the community while instilling personal, social and economic values. To accomplish this goal, the Chamber partnered with a proven national program, the Young Entrepreneurs Academy or YEA! And we are especially thrilled to be the very first YEA! program in the state of South Carolina.

YEA! is a groundbreaking after-school program that transforms local middle and high school students into confident entrepreneurs. Through the year-long program, students generate business ideas, conduct market research, write business plans, pitch to a panel of investors and launch their very own companies. From local business guest lecturers to dynamic field trips to local companies, students learn how to develop and run a real enterprise in a real-world, projects-based approach.

Students in sixth through 12th grade are eligible to participate in the program; typically students are between 11 and 18 years of age. In the 2012-2013 school year, YEA! helped 495 students start 345 businesses. Statistics from previous classes show: YEA! supports under-served populations, 100 percent of YEA! students graduate high school on time, and 99 percent of YEA! graduates enroll in college. Beginning this fall, the first Aiken YEA! class will host up to 24 students from public, charter, private and home schools in a 30-week program at USC Aiken. If you know young people who could benefit from participating in this program, encourage them to do so. You can learn more about applying to the program at www.aikenchamber.net or by calling the Chamber at 803-641-1111.

The Aiken Chamber is very grateful for the businesses who have stepped up to invest in young entrepreneurs through YEA! including: EDTS and Margaret’s Garden Adult Daycare as Champion Sponsors; Bridgestone and SRP Federal Credit Union as premier sponsors; B&S Machine Tool Inc., Manpower, MAU Workforce Solutions, Real Estate One, Serotta Maddocks Evans, CPA’s and URS – Professional Solutions as invest panel sponsors; and DayBreak, EZ Go, Mobile Office Management, State Farm – Denny Michaelis, VistaBank and Wayne’s Automotive and Towing Center as program/scholarship sponsors.

A program that encourages the next generation of entrepreneurs can be the fuel that really ignites and diversifies our local economy. I can’t wait to be inspired by Aiken’s bright young minds as we celebrate creativity and innovation through YEA!

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Shadowing the recent efforts by the Greater Aiken Chamber of Commerce and the City of Aiken with the development of 2014 goals, the Aiken Downtown Development Association will continue to strive to be an advocate for local small businesses. In the coming months citizens will notice a variety of programming that will offer community members opportunity to support the downtown core. Not only is it essential that we support businesses that put dollars back in our local economy, but buying local also ignites a sense of pride in supporting home-grown businesses that are locally owned and operated. Our downtown business owners continue to give so much back to our great city. Through community support and the “shop local” initiative Aiken can strengthen, and in turn, grow what downtown offers.

Beginning next month in June, the Alley in downtown will host the Aiken Farmer’s Market on the first Thursday evening of each month. The collaboration between local growers and downtown businesses attest to the renewed efforts to bring diversified shopping opportunities to Aiken consumers. Partnering two established institutions like the Farmers Market and the downtown community help solidify the Aiken Downtown Development Association’s commitment to bringing quality products and entertainment to the Aiken community.

Change is coming now. An example is the recent opening of The Mill on Park and the partnership it has with USC Aiken. Collaborative efforts like this help build a spirit of entrepreneurship within the community and represent a new wave of fresh ideas. By offering support services that foster ultimate success, The Mill will spawn innovative small businesses that will go on to create jobs and offer products and services that enhance the local economy. These startups have the potential of changing the face of downtown Aiken as they grow into established small businesses and take residence in other spaces in and around downtown. Their success ultimately represents our community’s collective growth! Concepts that are a focus of ADDA such as mixed-use development, rehabilitation and reuse, and pedestrian orientated design, all major characteristics found in The Mill project, are vital to developing a viable downtown district.

The phrase “reduce, reuse, recycle” is more than a motto, it is an important piece to a more sustainable downtown district. We all share the same goal of living in healthy, vibrant communities where we can live, work and prosper. ADDA is excited to be working with Dumpster Depot on green initiatives to improve recycling efforts and be more environmentally conscious. By choosing to grow in a smarter, greener, more sustainable manner; we can preserve our historical inheritance, protect our environment, and enhance our quality of life, all while growing our economy.

Collectively, our downtown businesses define what is unique about Aiken. Established small businesses currently serving downtown play a vital role in offering a variety of services to support the demand of a growing Aiken community. With new industry and expansion of old, downtown retailers have answered the call by offering more diversified products for consumer enjoyment. To sustain and ultimately grow our downtown, it will be a combined effort for the small businesses to continue and answer to the needs of the consumer and too, for the consumer to support these businesses so that they may see continued success.

The future is bright and because of efforts and programming as offered by the ADDA many great things can be expected from the Aiken downtown community. Local Leaders and small businesses must continue to champion cooperation between the public and private sectors. Aiken will continue to see success and growth from small businesses in and outside of Aiken’s downtown for years to come.

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The Aiken Chamber Means Business – today and tomorrow.

Last year, the Aiken Chamber of Commerce created a 24-member Blue Ribbon Panel to identify the next big ideas for our community. The panel was comprised of Aiken’s best strategic thinkers who looked for best practices, innovations, and programs/projects that could add to quality of life and/or economic value to the Aiken area.

One topic that quickly appeared on the panel’s radar was entrepreneurism and the need to stimulate growth of new and ongoing ventures in our community. The topic became the impetus for one of the Chamber’s key initiatives for 2014 – Expand the Chamber’s Economic Vitality emphasis, including the following two items: • Explore and evaluate programs that develop and deliver experience-based entrepreneurship courses to youth • Create a program that fosters an entrepreneurial culture in young people, educators and the community while instilling personal, social and economic values The Chamber’s 2014 program of work begins a multiyear process that creates viable, proactive mechanisms that drive a force for Aiken’s prosperity in the 21st century.

The program of work is based on the need for public and private partnerships with a focus on those things that promote job creation and upward mobility.

Such public/private partnerships are already underway.

On April 1, the Aiken Chamber announced the launch of the Young Entrepreneurs Academy, a nationally recognized program that transforms middle and high school students into real, confident entrepreneurs over the course of an academic school year. Through the program, students set up, own and operate fullyformed and functioning businesses, which may be carried on after their graduation from the program.

The academy was established in 2004 and is the first of its kind in South Carolina and Georgia. The venture is a partnership of the Aiken Chamber, Aiken County Public Schools, and the University of South Carolina Aiken.

The Mill on Park is also a public/private partnership that supports economic vitality and focuses on Aiken’sfuture prosperity. The partners consist of Caradasa LLC, the University of South Carolina Aiken and the Aiken Small Business Development Center.

The Mill, set to open its doors this month, is a downtown Aiken office community. The 19,000-square-foot facility is located at the former Regions Bank operation center at the corner of Park Avenue and Laurens Street.

The Mill leases office space to those who may work at home or who don’t require larger office space; it can accommodate up to an office of five. Tenants have access to conference rooms, office equipment and other services as part of their monthly rent.

The goal of this new facility is to attract new microbusinesses, entrepreneurs and small, established firms.

Entrepreneurism has driven our community for almost 200 years; you may recall it was the railroad that led to the establishment of Aiken back in 1835. Lately, it seems, though, that our entrepreneurial drive has waned, or perhaps our community has gotten a little complacent about the future of this wonderful place we call home.

It should come as no surprise, then, that the Blue Ribbon Panel work emphasizes entrepreneurism and the need for business growth and job creation.

The time to reawaken and to re-engage in our future is now. Get ready, folks. The entrepreneurial spirit is about to soar once again in Aiken.

The Aiken Chamber will always mean business.

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