Peterson hosts business training seminar in Ritzville

Area entrepreneurs had an opportunity to work with Certified Business Advisor Allan Peterson from America’s Small Business Development Center (SBDC) Washington during a free business training seminar in Ritzville on Jan. 12.

The Adams County Development Council and Washington State University Lincoln-Adams County Extension sponsored the afternoon event.

The purpose of the training was based on individuals discovering what their value proposition is and beginning to develop a business model.

The group of nearly 25 individuals ranged in experience from current business owners, to former small business owners, to people trying to start a business for the first time.

Peterson addressed the group first about creating a business plan; a document crucial to the success of any business.

He explained business plans keep the owner focused and allow them to see the areas to improve on, while also serve as a vital document necessary to receiving funding.

The largest problem he sees with new business owners is they attempt to use a template for their business plan instead of creating their own. Peterson emphasized every business is different, and the model of which to use to determine a long term plan will change dependent on the type of business.

Peterson has been working with the local SBDC office since 2004, and before that he worked for 26 years in a chain drug store. He is one of 27 people who make up the local office.

Through SBDC, business owners and entrepreneurs can receive business advice, training and research for free.

Peterson explained once an individual becomes a client, the team works together to help grow, export, start, refer or market the business, whatever the owner needs assistance with.

The SBDC office is partially funded by a Washington State University grant and from Grant and Lincoln counties. Peterson said his service area follows the same footprint as the college.

When it comes to starting a business, Peterson first recommends for entrepreneurs to start with a business model canvas. The model focuses on three areas: value proposition, customers and process.

Peterson explained when starting a business, the first question to ask is “what problem are you trying to fix or overcome?” From there, it is important to identify who the primary cliental is, and determine why they are interested in the product or business.

The most important portion of the business model is the value proposition, Peterson explained, because all other facets of the business model are based around it. Business owners can identify their value proposition by asking, “why should they buy from you” and “what problems are you solving for them”, Peterson said.

From there, the business owner needs to move on to identify revenue streams, core activities, critical resources, supplies, partners and the core structure of the business.

Peterson said when operating a business, an important key to success is remembering the customer is not just buying the product; they are buying the benefits of the product.

Because of this, he explained the owner must focus on what it is they do, not how they do it.

The key to success is identifying what makes a business stand out in a competitive market, and there is a need to develop a unique selling point unlike other similar businesses. The value proposition is based around how an individual markets the business and their products, as that is what draws customers in.

Peterson said most new businesses struggle the most with identifying their market and finding customers.

Through SBDC, he explained they can run demographics and complete research to determine what groups may serve as the best consumer of the product.

When first starting a business, Peterson stated those in need of funding either through a bank or a private investor need to have a complete business plan before asking for money. A business plan, while developed for the owner, also shows potential investors the long-term plan for the business and allows them to decide if it is a wise investment opportunity.

Peterson said any potential business owner can contact him with questions and receive advice for free. Only after an individual makes the decision to become a client is when fees are applied. Peterson said all client information remains confidential.

For more information about SBDC, visit http://wsbdc.org or contact Peterson at 509-762-6040 or by email at [email protected].

For a list of upcoming business training seminars in Adams County, contact Julie Flyckt at [email protected] or by phone at 660-0966.