Want to start a small business in Shreveport? Here are tips. | Business

Over the past 10 years, over 1,700 small startup business owners have come into the Entrepreneur Accelerator Program that is part of BRF in Shreveport to share their business ideas in a “blue couch” session.

Of those 1,700, says Senior Financial Analyst Julie Milam, EAP has offered additional services to more than 500 and of those, EAP has assisted about 200 small businesses in finding some type of funding, from an angel fund, a private investor, or a bank. All told, she said, EAP has been the conduit to nearly $262 million for entrepreneurial businesses. 

Having help and finding funding can be the difference between a small business succeeding or failing. On Tuesday, four people familiar with the challenges of going it small and alone gathered on the Advocate stage at the Red River Revel to share hard-earned small business knowledge.

Finding seed money and working capital

All entrepreneurs need money, and only some will get it. BOM Bank President Ken Hale says there are things that will give you an edge when asking for it.

“What we would like to see is some sort of business plan and, you know, that can be as simple as someone literally typing it up themselves on a Word document. Just explain their business plan. Along with that business plan, a bank loan would require corporate or commercial tax returns, a financial statement, a personal statement of your net worth.” The bank would also look at any collateral that might be pledged.

If that bar is too high, Hale said a Small Business Administration loan through an SBA lender bank might be the way to go.

How much money do you need to start a small business?

Milam says there are different financial models you can use to determine that, but the number 18 is a good assumption.

“We have something that we call the valley of death in entrepreneurism. Most startup companies, unfortunately, fail in their first 18 months simply because they run out of money. And so I try to encourage entrepreneurs, if you’re going to start this journey, make sure you’ve got 18 months of operating cost in the bank ready to go.”

Hale says having money in the bank is important even after you have made it past the dreaded 18.

“You might be selling like crazy. But if it takes you 90 to 120 days to get your money, if you want to turn around and buy something to sell, if you want to build have stuff to continue to sell, you’ve got to have the capital and liquidity, liquidity to be able to do that. So sometimes your business can be successful. It’s just as hard to get going unless you have the savings.”

It’s good to learn hard lessons early.

Bob Thames is a popular former sales manager at Shreveport’s Great Raft Brewing. He is now co-owner of Single Source Business Solutions, a company that provides financial services for small businesses. One of his first contracts, he said, was one of the worst projects he ever worked on.

“It all crumbled kind of in front of us within about six months. And I look back on it now, almost a year and a half later, and I I’m so thankful for it, which sounds crazy, but there’s so much opportunity as an entrepreneur the moment you let go of the idea that you have to take on everything.”

He said though the temptation is to take every job, don’t. “Now I get to be really selective with who I’m working with and what I’m doing. And that’s such an empowering position as a person.”

Don’t try to be good at everything.

Kalli Combs grew up watching her entrepreneur father who owned a business, sold it and profited from it, and she profited from his advice when she went out on her own, first as a Realtor and then with her marketing company, Social Pal Kal.

“You need four people in your life when you start a business, you need a banker, you need a CPA, you need an attorney, and you also need someone that’s going to be honest with you and tell you the truth,” she said.

Milam agrees. “I try to tell entrepreneurs, if you’re going to go at it alone, I hope that you are multifaceted, and I hope that you don’t need to sleep. It typically takes a village. It takes a team.

“We have a saying, ‘Sometimes you’re not always betting on the horse, you’re betting on the jockey’ that that startup company is going to succeed. Who’s on your team, who’s there to help you with all the different facets of actually running a company?”

Advice to take with you

“Advocating and building relationships is super important in my industry, because it sustains us for the long haul.” — Kalli Combs

“Keep the wheels turning, keep the ball moving forward. That’s all you can do as being an entrepreneur, is keep pushing forward.” — Bob Thames

“We will help you map out your business model, your business plan, financial model, and the EDA (grant) is actually going to pay for that. And so come sit on the blue couches and let’s talk about it.”  — Julie Milam

“If you have a passion for something and it’s something you really want to do, you know, maybe keep your full time job, but make it a hobby at first, and see how it goes, see how it grows, and if it takes off, you can always go in and tell your employer, ‘I’m sorry, I love my job, but this is my passion.’ We only live once.” — Ken Hale

You’re invited to attend The SBC Advocate’s free Lunch and Learn at 12:15 p.m. Wednesday at the Advocate stage adjacent to the train depot at the Red River Revel. 

There, we’ll be talking to local Realtors, brokers, and bankers about ways to be successful in buying or selling a house. Been thinking that now is right to make a move? You’ll want to hear this talk. 

This story was edited for length and clarity.