SBA's SCORE counseling program grows with Las Vegas

Steve Diskin spent more than five years learning how to craft art framework before establishing his own shop.

He had the know-how and talent when it came to framing, but the business end was unfamiliar territory.

Six months into the project Diskin found free help, thanks to SCORE. Comprised of retired business people, SCORE offers free counseling on most every phase of commerce -- business plans, taxes, bookkeeping, marketing and complying with regulations.

Operated under the auspices of the U.S. Small Business Administration, SCORE helps people with good ideas translate that inspiration into sound business. Its 389 chapters across the country assist roughly 300,000 entrepreneurs each year.

"Just having a good idea is not good enough," said Sherman Kerner, chairman of the Las Vegas SCORE chapter.

Diskin got help from counselor George Hamblet, who has a background in setting up small manufacturing operations. Together the pair made incremental changes in Diskins' business, Four Corners Archival and Fine Art Framing.

More and more SCORE clients are using the group on an ongoing basis. Since 1994, the Las Vegas SCORE Chapter has counseled about 900 new clients each year. But the number of follow-up cases continues to grow, from about 37 follow-up cases in 1994 to 250 follow-up cases in 1997. Nine months into the group's 1998 fiscal year, there are 244 ongoing follow-up cases.

For Diskin, that has meant counseling with Hamblet on one area of his business at a time. First was changing the set-up of the shop. With some lighting changes, the combined store and workshop became more appealing.

"Once it became more inviting, the price of my pieces went up," Diskin said.

Hamblet also prompted Diskin to stare into the face of something many fledgling small business owners fear most -- financial records. Diskin had been keeping some financial information on scrap paper. And he had enlisted the help of his sister to keep tabs on the books.

But once he started concentrating on them himself, he found areas where he could make his money work better for him by buying certain supplies in bulk and setting up credit accounts with suppliers.

Though many small business owners prefer to leave the financial record keeping to an accountant, which leaves the owner time to concentrate on other parts of the business, it is important they know where their money is going.

"Get involved with your books," SCORE counselor Bill Graven advised at a recent workshop. "You're putting your hand on the pulse of your business when you do that."

Aside from giving tips on keeping books, SCORE also helps with marketing and business plans. Hamblet counseled Diskin on how to prepare for downward cycles most businesses normally encounter. Hamblet also aided in marketing, helping Diskin tailor a mailing list targeted to high-income ZIP codes -- the areas where people who need his services are likely to live.

Those are all the kinds of problems SCORE counselors help solve. One-on-one counseling is available to business owners on an ongoing basis. SCORE also offers periodic workshops aimed at people contemplating starting their own business.

Kerner said developing a business plan is crucial. Bankers like to see a plan when making loans and the plans provide a road map to shepherd the business through its early days.

"In counseling sessions, subconsciously, people turn off when we talk about business plans," Kerner said. "They think their business is too basic for a plan."

Entrepreneurs-to-be who have used SCORE say the advice counselors give is beneficial. Bruce Erickson moved to Nevada from Michigan to do business. He said he had used SCORE in Michigan, and wanted its help in his aircraft sales business in Nevada.

"I've heard a lot of smoke and mirrors about no taxes in Nevada," Erickson said after a SCORE workshop. "I wanted to find out what's real."

Tony and Susan Servino said SCORE gave them tips on tax and business structure as they planned to start a hot air balloon business.

"Taxes were one of the things we were concerned about," Susan Servino said. "You just hear bits and pieces. They gave us some resources."

SCORE counselors say they can be of more benefit if they are consulted on the front end rather than in a crisis situation.

"Sometimes when they call, they are dialing 911 when they should be calling the coroner," Kerner said. "Don't wait until you need a coroner, because by that time you may have lost everything."

And even on the front end, the business veterans at SCORE don't give false hope. SCORE counselors say they want to get business owners to look at their idea realistically before starting a business.

"Our job is to get them to look at the issues," Kerner said. "We don't apologize for opening someone's eyes to reality. If we save someone from losing their equity, I think sometime's that's our job."

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