A. 

The AAEDC Mission is to serve business needs and to increase Anne Arundel County ’s economic base through job growth and investment.  This is accomplished by:

 

A. 

At Anne Arundel Economic Development Corporation (AAEDC), we are committed to supporting the growth and success of Anne Arundel County ’s businesses.  We provide services that are free of charge, confidential, and that address the needs and challenges of today’s business environment.  Read more

 

 

Can AAEDC help businesses find employees?  

 

Yes, we have an Anne Arundel Workforce Development Corporation liaison on staff to help you identify your workforce needs, assist in the screening and recruitment of potential employees, and direct you to programs that can help offset training costs.  Read more

 

 

Does AAEDC offer help for small businesses?  

 

AAEDC has a one-stop shop for small businesses at the Small Business Resource Center (SBRC). The SBRC can provide a wealth of information about many subjects that affect your small business, from planning and financing to marketing and insurance.  It has a business library, plus PC-based internet access for your research on a variety of business topics and counselors are on hand to offer guidance. Read more

 

How does AAEDC help minority owned businesses?  

 

Through the Small Business Resource Center , AAEDC can help minority owned businesses become registered and be placed on the Anne Arundel County Directory of Minority owned businesses.  Read more

 

 

A. 

AAEDC oversees Anne Arundel County ’s business incubator, the Chesapeake Innovation Center (CIC).  The CIC is a gateway between the fast-growing homeland security, communications, and information technology industries, and emerging technology companies.  Read more

 

AAEDC can provide the necessary interface with our financing partners at the State of Maryland and the Federal Government.  Read more

 

AAEDC supports the Chesapeake Regional Tech Council, which provides a forum for the county’s tech companies.  With more than 200 members and growing, the Chesapeake Regional Tech Council is fast becoming the greatest link to the county's fastest growing, most dynamic tech companies.  Read more

 

Can AAEDC help my business find financing?  

 

AAEDC can connect you with an array of financing options to fit your needs.  We can also link you to state services including business growth incentives, direct business loans, employment tax credits, and international trade opportunities.  Read more

 

 

The ABL Fund is a financial service of the AAEDC that can provide Anne Arundel County businesses with SBA guaranteed loans of up to $300,000.00. Read more

 

Will my voice be heard?  

 

AAEDC is a forceful advocate on behalf of our businesses, communicating Anne Arundel County ’s business voice to our elected officials.  Contact us and let your voice be heard. 

 

 

AAEDC has created a reference guide containing contact information frequently requested by our businesses.  Read more

 

Can AAEDC help businesses with the permitting process?  

 

With direct access to the county’s permitting system, we can assist you in navigating the permitting process to get your project moving on time and on schedule.  Read more

 

Where can I find Anne Arundel County market information?  

 

AAEDC is a clearinghouse for Anne Arundel County business and demographic information, made readily available on our web site. Read more

 

Where can I learn more about the impact of the Base Realignment and Closure (BRAC) on Anne Arundel County?  

 

The 2005 BRAC decision to consolidate key research and high-technology jobs to this region will have a tremendous economic impact on our economy.  AAEDC is involved in the Anne Arundel County/Fort George G. Meade Growth Management Committee and the Howard County BRAC Task Force, both of which are charged with ensuring a smooth and coordinated response as it relates to BRAC activities. Read more

 

AAEDC supports the Fort Meade Alliance, a membership organization focused on supporting the Fort George G. Meade mission.  Read more

 

Can AAEDC help with my real estate needs?  

 

The AAEDC staff of experienced economic development professionals will work to provide you with accurate information and confidential consultation by connecting you with our database of properties as well as the local brokerage and development community.  We will help you evaluate Anne Arundel County as a premier location for the development, expansion or relocation of your business. Contact Sarah Boone for more information.

 

 

SMALL BIZ Q&A:

Small Business Q&A answers questions from readers on a variety of topics of interest to our small business community. Answers are provided by experts affiliated with the Anne Arundel Economic Development Corporation’s Small Business Resource Center.

 

Q.
Cold calling has never been fun, but it seems as we get busier and busier, it gets harder and harder.  How can I warm up an otherwise cold call?  

A.
Shop Local & Put Your Purchasing Power to Work for You!
“Givers Get”—it is always easier to ask for business when you are offering business.
When you shop local for your business and personal needs you get a warm lead out of the transaction.  A cold call begins with the premise that the subject has not yet agreed to give you their attention.  When you have their attention during a transaction,  you have the opportunity to start a “who do you know who” conversation.  Showing a genuine interest in how a potential customer does business will result in a more receptive audience for your product or service.  While a given merchant or vendor might not need your product or service, chances are they know someone who does.  Making your business known as part of your personal and professional buying literally puts your purchases to work for you!

Internet Value versus Relationship Value
Price and convenience are the primary values to shopping online. However, it is important to realize, when you choose to do business online, you forfeit extended opportunities.  When considering your purchasing options, consider the real cost of the product or service as a dead-end transaction versus the greater value opportunity that comes with investing in a relationship.  It comes down to transaction versus opportunity shopping.  Opportunities may come in the form of potential customers for your business or in the shape of a local merchant who knows your preferences and serves as a personal shopper of sorts.  When you put the burden on local vendors to cater to your preferences it results in a win/win.  They get your business and you get better pricing and convenience on a local level.

Harness the power of your purchasing power and put it to work in the local community.
Remember, many local business owners and workers are also the volunteers in local community charitable organizations, they are parents, future employees, babysitters, neighbors— they have something at stake here.  When you keep your business local you leverage relationships to warm up the selling process and raise the bar in the community.  Chamber membership is a sure sign of investment in the business community and a welcome sign for relationship development.  The Annapolis and Anne Arundel County Chamber of Commerce offers several tools to make it easy to Shop Local: Look for the Chamber Seal in the window in the business an/or on brochures, advertisements, and websites.  Access the membership directory online or call 410-266-3960 for more information.  Shop local and warm up cold calls with the power of relationships!

Kent Drinker, Director of Membership
Annapolis and Anne Arundel County Chamber of Commerce


Q.
I work in my home part time. Can I take the home office tax deduction?  
Joan from Glen Burnie

A.
If you run a business out of your home, you may be able to take the home office deduction. This allows you to deduct a portion of your rent or mortgage costs, as well as some related costs -- such as utilities, insurance, and remodeling.  There are, however, strict requirements you must meet. For instance, you will not qualify if you use your office partly for work and partly for personal reasons or if you don't use the space regularly for business.
For more information, constult the IRS website or check with a tax professional.

 

Q.
Can I claim a deduction for business-related entertainment?  
Peter from Annapolis

A.
You may deduct only 50% of expenses for entertaining clients or customers for business purposes.  This is a change from a few years ago, when 80% could be deducted.  Qualified business entertainment includes taking a client to a ball game, a concert, dinner, or just inviting a few of your customers over for a Sunday barbecue at your home.

Keep in mind that if you are audited, you must be able to show some proof that the entertainment expense was either directly related to, or associated with, business. Be sure to keep a guest list and note the business relationship, or potential business relationship, of each person entertained. Parties, picnics, and other social events that you put on for your employees and their families are an exception to the 50% rule -- such events are 100% deductible, and you need not prove it was directly related to a business goal.  For more information, consult the IRS website or check with a tax professional.

Tom Francovitch, Senior Counselor

Q.
How do I determine whether I am capable of starting a small business?  
Don – Annapolis

A.
Compare your skills and expertise with those who are successful in similar business pursuits. Are you a risk taker?  Analyze what particular attributes and operational capabilities made other businesses profitable and viable in the marketplace. Can you duplicate and surpass the capabilities that other businesses possess? What unique skills or edge do you possess to gain a sufficient share of total market in the area you plan to serve? What level of capitalization, technical acumen, energy, passion, organizational strategy, and other resources or equipment can you incorporate into the business to command the market share to be profitable?

Review business journals and other comparative studies that identify the requirements necessary to operate such a business. Based on your findings, develop a strategy for what should be incorporated into the business operation. If possible, do a small sample survey and market penetration to test the waters in terms of business vulnerability.

 

Q.
How do I obtain funding or a loan for my business from the SBA?  
Edward – Annapolis

A.
The SBA enables its lending partners to provide financing to small businesses by guaranteeing portions of loans.  The SBA eligibility requirements and credit criteria are very broad in order to accommodate a wide range of financing needs.   Your first call should be to your bank to explore their terms for an SBA-guaranteed loan.  The Arundel Business Loan Fund, offered through the Anne Arundel Economic Development Corporation, is your best alternative source for SBA guaranteed business loans up to $300,000 in Anne Arundel County.  For additional information, visit the AAEDC website.

Q.
What is a business plan and why do I need one?  
Nancy -  Kent Island

A.
A business plan precisely defines the business, identifies goals and serves as the company resume. It illustrates the operational and financial aspects of a business. It assists in the resource allocation, minimizing unpredicted complications, allowing owners to make good decisions.  Because it provides specific and organized information about the company and how borrowed money will be repaid, a good business plan is a crucial part of any loan package. Additionally, it tells personnel, suppliers and others about company operations and goals. This roadmap for the company operation should be reviewed and updated annually. Business plan formats are fairly standard; the same format may be used by someone who wants to start an electronics firm as a person seeking to start a daycare center.  Business plan templates can be found on SCORE’s website.  

Bill Kennerly, Counselor
SCORE “Counselors to America’s Small Business”

Q.
I’m starting up a technology-related business in the area – where should I go to get plugged into the community?  
-- Jack, Annapolis

A.
Anne Arundel County’s tech industry is rather vast.  Area tech sectors that are growing include defense/homeland security, software development (specifically for processing and analyzing data) and data hosting and storage. Even if your company isn’t in one of these particular areas, chances are your technology still plugs in to the equation for supporting those growing sectors.  You can find links to state and area technology resources and tech-specific news information at the Chesapeake Regional Tech Council website.

Depending on what type of business you’re starting, you may be able to tap into one of the many programs designed to fund and forward innovative technologies.  The Anne Arundel County Small Business Resource Center connect you to a variety of these programs.  The recent Small Business and Entrepreneur’s Resource Guide for Anne Arundel County contains articles by area experts on a variety of small business topics and could also be a great resource for you.  


Q.
I’m a small business owner – what is a must-do when it comes to maintenance for my computer?  
-- Lisa, Annapolis

A.
In today’s high-tech world, every single business relies on the data and information we use and access each day, and it’s imperative you take the minimum steps to ensure its safety. What every small business – or large business, for that matter – must do is:

Executive Director
Chesapeake Regional Tech Council

Q.
I have just opened a small retail business and have difficulty competing with the prices offered by larger chain stores.  How can I attract and keep customers?  

A.
A small business has 2 competitive strategies, according to Albert J. Bartlinski, Business Development Specialist:

In reality, differentiation is the primary strategy available to small businesses. With this in mind, the first step is to find out what customers value about what you and your competitors do and how you do it.  Ask your customers what they like and dislike about the competition and your business. It's simply a matter of doing more of what they like and less of what they dislike. This will be the basis of your marketing message.
 
For example, if one customer is irritated by late deliveries from a chain store, then your marketing message may be something like: "Tired of (name the issue). We guarantee ..."
 
Which leads to a good source of differentiation---guarantees. In any business transaction, the seller is asking the buyer to take risk. Eliminate that risk in a way that your competitors wouldn't ever consider doing, and you now have a double edged differentiator.
 
Develop low-cost ways to market your product or service such as: referral programs, frequent buyers programs, flyers, post cards, host/beneficiary relationships, cross market to other businesses (non competitors) that have the same type of customers that you have. Always have several campaigns going at the same time.
 
Yes, it sounds simple. But, it's not necessarily easy.  Your local Chamber of Commerce can help by putting you in touch with other businesses that may have the same challenges.  Other business organizations in the region, such as the Fort Meade Alliance, the Chesapeake Regional Tech Council, and the BWI Business Partnership, may provide valuable networking opportunities.  Resources exist to help you succeed so start today!


Q.
I have recently started a home-based business and was told I should join a business organization.  How will that benefit my business?  
 
A.
Business organizations such as the Chamber of Commerce give you an excellent rate of return on your membership investment.  You are listed in the Membership Directory and are given a link on the organization's web site.  This is a good way for new businesses to get recognized in the community.  You also have access to membership labels which can be used for your special business promotions.    Most business organization expenses are tax deductible, which can also help your bottom line.   Your local Chamber of Commerce office provides a display area for your business brochures.  You can't put a price on this type of free advertising.  But the most important reason to join a business organization is to network with other businesses.  Your membership provides you with a wealth of contacts and resources.  Take advantage of these high profile opportunities by becoming involved in the organization's networking activities and expanding your business connections.  When you add up all the benefits associated with belonging to a business organization, you'll find that membership doesn't cost--it pays!
 
Fran Schmidt, Executive Director
Northern Anne Arundel County Chamber of Commerce

Q.
What do I need to know about financial statements in order to start or manage my small business?  
Marty, Severn

A.
First, you need to know which financial statements are important. Important financial statements include a balance sheet, showing the financial conditions of your business at some point in time; a statement of operations (sometimes referred to as a profit and loss statement), which shows whether or not you made a profit during a particular period of time; and a cash flow statement, which shows what happened to your cash position during a specific period of time.
You should have a basic understanding of each of these statements in order to compare them with statements for the prior period and determine whether something is happening in your business that needs your special attention. Your accountant can prepare these statements for you from the data that you supply. Also there are a number of computer software programs that will help you generate these statements from input of regular transactions-such as sales, collections, purchases, payments and payroll.
Another source available is the Small Business Accounting workshop offered by SCORE,  or Counselors at the Anne Arundel County Small Business Resource Center.


Q.
How do I know if I’m capable of going into business?  
Ann, Crofton

A.
The two most important questions for you to ask are Can I compete? and Can I make money? Compare your skills and expertise with those who are successful in similar business pursuits. Analyze what particular attributes and operational capabilities made other businesses profitable and viable in the marketplace. Can you duplicate and surpass the capabilities that other successful businesses possess?  What unique skills or edge do you possess to obtain a sufficient share of total market in the area you plan to serve? What level of the capitalization, technical acumen, energy passion, organization strategy, other resources or equipment can you incorporate into the business to gain the essential market share for viability?
Review business journals and other comparative studies that identify the requirements necessary to operate such a business. Based on your findings, develop a strategy for what should be incorporated into business operations. If possible, do a small scale sample survey and market penetration to test the waters in terms of business vulnerability.

Bill Kennerly, Counselor

Q.
How do I position my company to bid on contracts with Anne Arundel County?  

A.
Your first step would be to call the purchasing office at 410-222-7620.  The Anne Arundel County Purchasing Office maintains a list of items which are bid upon annually.  Once you determine what procurement opportunities are available, you will need to speak with a County buyer.  Key questions to ask include;

Anne Arundel County, like other jurisdictions, posts formal bids over $25,000 on its website.  All bids over $5,000 are posted on eMarylandMarketplace.  Vendors must register with eMarylandMarketplace to access bid opportunities on this State-wide portal.  The Marketplace includes bids from towns, cities, hospitals, and universities/community colleges, as well as, State and County governments.

The County does not maintain a separate bidders’ file but uses firms listed with the State of Maryland.  For further information regarding County bidders, the Office of Central Services maintains a special online Directory of Minority & Women-Owned Businesses which is used by County staff, contractors and the community at-large.  Firms located in Anne Arundel County can list business information in this directory.

Engineering and architectural firms are pre-qualified by the Department of Public Works using forms prescribed by the Purchasing Office.  If you are a construction contractor, all capital construction projects are listed on the County’s website AND eMarylandMarketplace.

Joanne Jackson, M/SBE Coordinator
AACo Office of Central Services

Q.
I’m working on my business plan now. When do I contact my banker about financing?     

A.
There are two answers to that question.   Part one: contact your bank immediately with a few objectives in mind.   First, determine if your bank has an interest in doing the loan.   Introduce yourself to your branch manager, not to solicit a loan, but to get information.  The information you need is relatively straightforward.  Does the bank make small business loans?    The bank’s branch staff will be able to assist you in establishing business accounts, but most likely, another decision maker will be addressing your loan requirements.  Therefore, ask who in the bank you should contact regarding small business loans.   Is the institution interested in financing entrepreneurs and younger businesses?   What is the smallest loan request that the bank will consider?   What information will the bank need to evaluate your request?  What are the guidelines as to collateral requirements?   What are the bank’s standard terms?  (You’ll need this loan-repayment information in preparing your budget projections.).   Besides conventional financing, find out if they offer the alternative of SBA financing, which involves the bank securing a guarantee from the Small Business Administration.  

P.S.  If you need guidance in assembling your business plan, I encourage you to review the extensive information available from the Anne Arundel County Small Business Resource Center.  


Part two: Once you’ve completed your business plan, you are ready to make a formal request for financing.   If you’ve done your research with the first contact noted above, you have begun developing a relationship with a bank and your potential loan officer.  Don’t just mail the business plan.  Preferably, give it to the lender, verbally highlighting your competitive advantage.   Answer the key concern of any lender:  how are you going to repay the loan?


Q.
What is a common mistake made by business owners and entrepreneurs seeking financing?  

A.
If this is the first time a business owner is seeking a loan, that individual is likely to underestimate the time required to underwrite, approve and close a loan.  That time frame can be reduced if the business plan is complete and feasible.  It can be longer if the loan request involves real estate that requires an appraisal and an environmental review.  Ask your lender about the typical time required to process and close your particular loan.

Joseph Timer
Vice President of Financial Services
Anne Arundel Economic Development Corporation