Plenty of resources available to start a small business

Starting a small business in Maryland does not have to be a lonely endeavor, say industry and state agency leaders. Ready-made tips and guidance for each kind of business are just a few clicks away.

A good place to start, said Michael L. Higgs Jr, is with resources online at the Maryland Business Express. “We were able to get 14 state agencies on the topic and we are keeping it up to date, says Higgs, director of the Maryland Department of Assessment and Taxation. The two-year-old Express site is “heavily trafficked” he said.

Express features “Business Chat Mary,” what it says is a first-of-its-kind chat room for business startups. Chat Mary receives 70 percent of all technical support by the Express, gets a 95 percent approval in post surveying, and 31 percent of Mary’s chatting comes after business hours, according to data from Higgs’ special assistant, Kory Boone.

Higgs added, “We really want to help foster entrepreneurship in Maryland and strengthen existing businesses.”

A state “Business Resources” page outlines essential “must do’s” for starting a business at https://open.maryland.gov/business-resources/starting-a-business/. The page is designed to help or remind newcomers to determine a business type, register the new business, know appropriate permits and licenses, getting set up for taxes, and developing a business plan.

Funding is critically important to start a small business but should not necessarily be the first consideration, said Glenna E. Cush, director of marketing for the Small Business Development Center. She said the most important aspect of starting a new business is to conduct a lot of research on the entrepreneur’s chosen industry. “Unfortunately, lots of new businesses close down if they don’t (do diligent research). We advise on the need for lots of details as well as how much financing someone will need. They will also need a board of advisers, or if not a board a good number of advisers to get started on the right path.”

In five regions of the Maryland SBDC — western, northern, corridor, eastern and southern — consultants experienced in many industries guide new business applicants. “One of the roles is to help better paint an accurate picture of what it takes to start a business,” said Cush. “We can gently prod them along in the beginning and then find appropriate lending sources.”

The Maryland SBDC is part of a nationwide network. Its consultants can direct entrepreneurs wanting to launch in other states.

Other resources available too

Each of the state’s industry sectors offer resources for starting a new business, such as in manufacturing, said Michael Kelleher, executive director of the state’s Manufacturing Extension Partnership.

“We offer ways of great interactive mediating to help a new small businesses can grow with introducing them to specialists in many fields (appropriate to the industry). We also go out to advise and guide them with ideas and opportunities for growth, free coaching if they qualify in manufacturing. Also we can either provide direct financial assistance or help them obtain funding assistance at the state or local levels.”

Kelleher offered two suggested paths: 1.The MD MEP Incumbent Worker Reimbursement Program to offset 50 percent of training cost for manufacturing companies to upskill their work force, and 2. The MD MEP’s The Impact Driven Incentive Program for new businesses that want to reinvest and MEP can offset some cost.

Other Maryland industry sectors offer guidance:

• BioHealth & Life Sciences: Maryland Tech Council https://mdtechcouncil.com/
• IT & Cybersecurity: Cyber Security Association of Md. https://www.mdcyber.com/
• Manufacturing: state government’s Manufacturing Extension Partnership http://www.mdmep.org/
• Aerospace & Defense: Aerospace Industries Association https://www.aia-aerospace.org/
• Financial Services: Maryland Bankers Association https://www.mdbankers.com/
• Energy & Sustainability. State government’s Maryland Energy Association https://energy.maryland.gov
• Agribusiness Maryland: Farm Bureau https://www.mdfarmbureau.com/
• Building: https://web.marylandbuilders.org/events & Maryland Construction Network https://www.mdconstructionnet.net/
• Fishing and aquaculture: Maryland Watermen’s Association http://www.marylandwatermen.com/
• Retail: Maryland Retailer’s Association: https://www.mdra.org/

Small business loans

A small business loan from a bank can be the best option to get started, said M& T Bank’s Matt Cohen, a regional manager for Baltimore City and Baltimore County. He said the bank has advantages over other lending groups by M&T’s long experience in the field and familiarity with communities and industries in each region of the state.

Cohen said not only is M&T the largest bank in Maryland by the number of branches, but it is also the leading Small Business Administration lender for the 12th straight year in number of loans and total dollars lent. Still, size matters less than individual size, he said. “We can provide our lenders that work within the bank, we call relationship managers, who know how to navigate information well.”

Most other Maryland banks handle SBA loans. In addition, there are 98 venture capital organizations in Maryland with about 1,600 current investments, according to business platform Crunchbase. The Maryland Venture Fund is a $110 million early-stage, evergreen fund dedicated to providing direct investment in Maryland companies, thereby “growing the next generation of exceptional businesses,” its website says.

Economically and socially disadvantaged entrepreneurs can “gain viability and expansion” of business at the Maryland Department of Commerce’s, Small Business Development Financing Authority.

The federal Small Business Administration site, www.SBA.gov, also has information on starting a new small business. The SBA doesn’t lend money directly to small business owners but sets guidelines for its lending partners, such as M&T Bank branches. The SBA reduces risk and makes loans easier.

The SBA “Learning Center” is interactive and offers courses for starting and running a business.