Q&A With German Zavalza, Valley Sierra Small Business Development Center

The Valley Sierra Small Business Development Center has assisted thousands of local entrepreneurs and businesses in the Modesto area plan a new business, launch a business, expand a business, and improve business operations.  The SBDC is a key resource for local business.  If you aren’t aware of the SBDC, you should be. 

We sat down with German Zavalza, the Chief Innovation Officer and SBDC Director of Opportunity Stanislaus, and asked him business questions on your behalf.   German’s answers are right to the point and should help you decide if you could or should become an SBDC client.

German, the Valley Sierra Small Business Development Center is the go-to resource for entrepreneurs and small businesses to start and grow in the Modesto area.   Thanks so much for taking time from your busy calendar to offer some observations and advice that can help our local businesses thrive.

Thank you.  I'm excited to be here and to discuss how the Valley Sierra Small Business Development Center can support local businesses in Modesto. Small businesses are the backbone of our community, and it’s essential that we provide them with the resources and guidance they need to thrive. The City of Modesto is a vital partner for our center, and I look forward to sharing insights and strategies that can help entrepreneurs navigate challenges and seize opportunities in today’s market.

 

What are the most frequent assistance requests you receive at the VSSBDC?

We frequently receive requests for general startup assistance, as many aspiring entrepreneurs are looking for guidance on how to launch their businesses. This includes help with crafting business plans and understanding the correct entity for their business.

Another common request is for access to capital. Many clients seek support in navigating funding options, whether it’s loans, grants, or investment strategies.

We also see a significant interest in marketing support, particularly in social media marketing. Businesses want to enhance their online presence and engage effectively with their customers.

In addition, financial management assistance is popular, especially with tools like QuickBooks. Clients often need help managing their finances, tracking expenses, and streamlining accounting processes.

Lastly, established businesses often reach out for advice on growth strategies, looking for ways to scale operations and explore new market opportunities. We’re dedicated to providing tailored support to meet the diverse needs of our local business community.

What are typical services that your clients are receiving?   How much do they cost?

The bulk of our work at the Valley Sierra Small Business Development Center involves one-on-one consulting, tailored to meet the specific needs of each client. Thanks to our funding partners, including the SBA, Cal OSBA, and organizations that invest in our host, Opportunity Stanislaus, all of these services are offered at no cost to our businesses.

In addition to one-on-one consulting, we provide workshops in collaboration with our partners across Stanislaus and Tuolumne counties. These workshops cover a range of topics designed to equip business owners with essential skills and knowledge.

We’re also seeing increased interest in our cohort-based programs, such as the Loan Readiness Program and Business Bootcamp, which help participants prepare for growth and secure funding. Looking ahead, we’re excited to introduce new programs next year, including a procurement program aimed at helping businesses navigate contract opportunities.

Overall, our services are designed to be accessible and relevant, fostering the growth and success of our local business community.

How does a business become a client of the VSSBDC?  How can the business prepare to make the most of a relationship?

To become a client of the Valley Sierra Small Business Development Center, businesses need to complete an application for services at valleysierrasbdc.com. Once the application is submitted, our team will contact the business for an initial discovery session, which we refer to as an intake. This session is crucial as it helps us capture the clients baseline information which will be used to measure progress and ensure that clients understand the effort required to start or scale their business before we formally accept them as clients.

I want to emphasize that 100% of our consulting is confidential and is protected by legislation. However, we also need to communicate that our funding relies on the economic impact we help our clients achieve. Therefore, we ask clients to keep us informed about their progress.

To make the most of our relationship, I encourage potential clients to come prepared and ready to put in the work. While we’re here to support and guide them toward their goals, it’s important to remember that our clients are ultimately in the driver’s seat of their journey. Together, we can help them reach their aspirations!

What advice would you offer to entrepreneurs thinking about starting a business?  Or expanding a business?

Well, the advice differs depending on whether someone is still considering launching a business or if they’re already in operation.

For those thinking about starting a business, my first piece of advice is to conduct thorough market research. Understanding your target audience, competitors, and industry trends is crucial for developing a viable business plan. Don’t rush the planning phase, take the time to refine your ideas and strategies.

Networking is also key. Connect with other entrepreneurs and industry professionals, as these relationships can provide invaluable insights and support. Additionally, seek out resources, like our SBDC, to guide you through the startup process.

For entrepreneurs who are already in business, networking becomes even more crucial. We’re fortunate to have strong chamber partners in our community, including the Modesto Chamber, Turlock Chamber, Stanislaus Latino Chamber, and many others, all of whom work closely together and are eager to assist in building valuable connections.

For those looking to expand, I recommend conducting a SWOT analysis, evaluating your strengths, weaknesses, opportunities, and threats. This exercise will help you pinpoint areas for growth and identify potential challenges you may encounter.

Additionally, it’s vital to ensure your financials are in order. Take the time to assess your current financial situation and explore funding options that can support your expansion. Just as with startups, staying connected to your network and seeking guidance from mentors or consulting services can be instrumental in navigating this next phase of your business journey.

Overall, whether you’re just considering a launch or are ready to expand, be prepared to adapt and learn along the way. The entrepreneurial journey is filled with challenges, but with the right preparation and support, you can achieve your goals.

Businesses often wonder, "is everyone having this problem, or is it just ours?" What are some of the big trends and changes in business conditions you've seen in the past couple of years?

That’s a great question, and it’s completely normal for businesses to feel isolated in their challenges. Over the past couple of years, we’ve observed several significant trends and changes in business conditions that affect many industries.

Firstly, the shift to digital has accelerated dramatically. Many businesses have had to enhance their online presence and adapt to e-commerce platforms to reach customers effectively. This trend isn’t just about sales; it includes digital marketing, customer engagement, and even remote work.

Secondly, supply chain disruptions have been a widespread challenge. Many businesses are facing delays and increased costs, prompting them to rethink their supply chains and explore local sourcing options. This has led to a greater emphasis on resilience, efficiency, and flexibility in operations.

Another significant trend is the growing impact of artificial intelligence. Businesses are increasingly leveraging AI for data analysis, customer service, and process automation. This technology can streamline operations, improve decision-making, and enhance customer experiences, but it also raises questions about workforce changes and the need for upskilling employees.

Finally, workforce dynamics have changed significantly. Businesses continue to navigate challenges related to hiring and retention, as many employees seek better work-life balance and more fulfilling roles. This has prompted companies to reassess their workplace cultures and benefits.

 

Thank you German for your valuable insights and advice!

German Zavalza, Chief Innovation Officer and SBDC Director of Opportunity Stanislaus