More than a source of financing, the U.S. Small Business Administration provides a wealth of advice for people who want to start new businesses or expand existing ones. The Business Record took a few moments last week to talk with Dave Lentell, public information officer for the agency’s Des Moines office, about the SBA’s programs.

Q: A business starts with an idea, obviously. But where should someone go after that?

A: Find a niche and fill it. The next thing they need to do is put together a business plan. A lot of people think they can come up with an idea, hang a sign that says, “I am now open for business” and do well. If they don’t have a road map as a guide for their business, that’s going to hurt them. The lenders looking at making an investment in your idea are going to want to see what you’re planning and how long it will take you to get there. Even if you don’t need financing, doing a business plan gives you, the business owner, an idea of what your strengths and weaknesses are.

Q: What would a business plan include?

A: Cash flow projections, marketing strategies and product pricing, just to name a few things. Generally, you want to plan as much of your business as you can for a three- or five-year cycle. And it’s important to update it as you go along because things change. Market conditions change. The competition changes. Employees might leave. The first place we recommend people visit is our Web site, www.sba.gov. We’ve set up a step-by-step procedure for all aspects of starting a business, including financing and finding business opportunities. Next, we like to refer people to one of the 13 Small Business Development Centers in Iowa. We also have a free packet we send people. Call us at (515) 284-4522. One of the more useful things in it is a listing of most, if not all, of the state and federal agencies that a new business owner in Iowa will have to work with. After that, we’d recommend that you approach a local lender.

Q: The dollar value of SBA loans in Iowa shot up 18.4 percent in the fiscal third quarter ended June 30. Why?

A: Generally speaking, when the economy is in a more conservative state, we see a lot of people who want to take control of their own economic futures. Maybe they’ve been laid off, or they’re afraid they’re going to get laid off, or their 401(k) isn’t doing too well. We see a lot of people who have been thinking about starting a business, and they say, “Hey, I am going to do this. I am going to go out and be my own boss and take control of my future. I’ve got nothing to lose.” It’s also true that when the economy is more conservative, lenders are more interested in making an SBA-backed loan.