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When John Ringwald and his son, Mike, of Coopersburg,Pennsylvania, decided to buy a Postal Annex franchise, theyweren't much different than most entrepreneurs.

They didn't know how to write a business plan. Theydidn't really comprehend the cost of carrying inventory such asenvelopes, stationery and packing materials. Nor did they know howto plan for seasonal changes in business volume.

A one-day seminar, "The Keys to Business Success,"offered by the Service Corps of Retired Executives (SCORE), wasjust what these entrepreneurs needed.

SCORE seminars, offered monthly or quarterly in major citiesacross the country, provide entrepreneurs with the basics of owningand operating a business. The topics covered include everythingfrom cash flow and marketing to the legal aspects of businessownership and how to write a business plan, says Jack Cleek of thePhiladelphia office of the Small Business Administration (SBA),which funds SCORE.

In February 1994, three months after attending the seminar, theRingwalds opened a franchise of Postal Annex, a retail outletoffering packing, shipping, copying services and businesssupplies.

The assistance from SCORE the Ringwalds and other entrepreneursreceive is very affordable. "I think the attendance fee isonly about $10 for the pre-business workshop," says Cleek.

In addition to answering the Ringwalds' questions aboutbusiness plans, inventory and seasonal cycles, the seminar madethem more informed participants in lease negotiations andfinancing, they say.

The Ringwalds also utilized SBA information booklets on avariety of topics including budgeting, record keeping, evaluatingfranchises, choosing a location, cash flow, advertising, businesslaw and additional government resources. "It really opened myeyes," John says, "as far as all the informationthat's available."

Though SCORE seminars teach the basics, they're not designedto get every attendee into business. "I think SCORE'sattitude is very cautious," says John. "They want you toreally do your homework on the franchise you're looking at,your demographics and your finances."

"We really don't encourage people who have a great ideabut no experience," says Cleek, "because of the poortrack record of those who go into business withoutexperience." Someone who lacks experience but has a good ideawill be encouraged to team up with someone who has experience butlacks a good idea. Sometimes SCORE can even put an aspiringentrepreneur in touch with a potential business partner. As Cleeksays, "Then they make a dynamic duo and aresuccessful."

Entrepreneurs can get further assistance from local SmallBusiness Development Centers (SBDCs), also funded by the SBA. Forinstance, an entrepreneur seeking assistance from the SBDC atLehigh University in Bethlehem, Pennsylvania, can team up with anMBA student who will do research related to the entrepreneur'sbusiness. The businessperson gets the assistance for free, whilethe student earns credits toward his or her master's degree,says Kathryn Frazier Remillard of the Lehigh SBDC.

The Lehigh SBDC also employs full-time MBA students as staffconsultants to assist entrepreneurs. "All of our MBA studentsmust have full-time work experience before they come here,"says Remillard. Staff consultants at Lehigh have an average ofseven to eight years of work experience.

Staff consultants work with entrepreneurs interested in findingout how to get work from the government or market their servicesand products overseas, or who need assistance with managementissues such as financial analysis, growth or hiring.

"If we look into some kind of expansion down theroad," John says, "I'd go to the SBDC."

In addition to offering seminars and instruction, the SBAguarantees small-business loans of up to $750,000 (made bycommercial lenders), thereby making it easier for entrepreneurs toget financing. Borrowers have as long as 25 years to repay, Cleeksays, though most loan terms are less than 10 years.

Borrowers are advised to go to their community bank first. Theexception is female borrowers, who can go directly to the SBAthrough the Women's Prequalification Loan Program, whichassists them in developing a business plan. The SBA then providesqualified women with a letter guaranteeing SBA backing on a loanobtained through a commercial bank.

"Women historically have had a tough time getting past theloan officer at the bank," says Cleek, explaining the reasonfor the distinction in procedure. "Of course, women can stillgo through normal channels." Male borrowers should take apolished business plan to the bank. However, male entrepreneurs arereminded that the SBDC can assist them with their businessplans.

Regardless of gender, borrowers must have experience in theirchosen field and a clear idea of how they will repay the loan. If aborrower qualifies for financing backed by the SBA, the bank willgenerally contact the SBA on the entrepreneur's behalf.

"We have such a good relationship with the loan officers atthe banks that they know what we'll accept," Cleeksays.

If a borrower defaults, the SBA will pay off the bank and thentry to work with the borrower to get caught up on payments. If theborrower cannot pay, however, the SBA will go after any propertythe borrower has put up as collateral. Overall, the SBA has a lossrate of only 2 percent on its loans, which Cleek says is betterthan the loss rates of some banks.

Because the Ringwalds opened a franchise, they were also able toutilize resources offered by their new parent corporation. Forinstance, Postal Annex offers newcomers a multitude of tips forsuccess from franchisees who generate as much as $1 million ingross sales annually. The input of these successful business ownersis used by the corporation to develop instructional forms andbooklets. The "Monthly Operating Expenses Work Sheet,"for example, forces start-up business owners to consider suchspecific details as the cost of using an accounting service,maintenance contracts on equipment, and postage.

Additionally, the corporation encourages cooperation amonglocations. The elder Ringwald, who says his weaknesses are salesand marketing, relies on assistance from Diane McDonald, owner of aPostal Annex in Trexlertown, Pennsylvania, about 30 miles from hisstore. His son, whom he describes as much more outgoing, has alsoworked with McDonald to land corporate accounts.

The Ringwalds initially considered different franchises, but theothers seemed to offer less support than the one they eventuallychose. "I think if we had gone with another franchise, wemight have had to use the SBDC a little more," John says.

Trade associations can also serve as valuable sources ofinformation and assistance. To find one in your field, contact yourlocal chamber of commerce or visit your local library.

Despite all the help available, the Ringwalds say they stillexperienced a "learning curve," as actual hands-onexperience taught them what texts and seminars couldn't--andtheir skills in networking, making contacts, and impressingcustomers have improved as their business has grown.

Still, the information available through the SBA made theprocess of starting a business easier than it would have beenotherwise.

Remember: Starting a business is not easy. Fortunately, plentyof help is available. By utilizing resources available through theSBA, SCORE and local SBDCs, your success as an entrepreneur is thatmuch more attainable.