annual program report The Educational Partnership That Produces Business Success

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1 2004 annual program Small Business Development Center report The Educational Partnership That Produces Business Success Through a network of 23 regional centers, the New York State Small Business Development Center has been delivering high quality business counseling and training to New Yorkers for over 20 years. NYS Small Business Development Center THE STATE UNIVERSITY of NEW YORK

2 Written by D. Michael Ross Design by David Schillinger The State University of New York Office of Design & Printing This publication is based upon work supported by the US Small Business Administration (SBA) under cooperative agreement number Z The SBDC is a program supported by the U.S. Small Business Administration (SBA) and extended to the public on a non-discriminatory basis. SBA cannot endorse any products, opinions, or services of any external parties or activities. A Partnership Program with the SBA, administered by The State University of New York With this issue of the Annual Program Report, we introduce our new NYS/SBDC logo, designed by Roberts Communications of Rochester, courtesy of Advisory Board Vice Chair Sterling Kozlowski and HSBC. The stylized arrow signifies solid economic growth built upon strong fundamentals in terms of small business and entrepreneurship.

3 For over twenty years, the New York State Small Business Development Center, administered by the State University of New York, and funded by the U.S. Small Business Administration, the State of New York, and host campuses, message from the governor has delivered the highest quality business counseling, training, and industry-specific research to help New Yorkers prosper as small business entrepreneurs. In these two decades, the SBDC has worked with over 225,000 citizens, providing them with the professional, pro bono assistance they have needed to invest Governor George E. Pataki over $2.6 billion in the state s economy and create or save over 107,000 jobs. Small business is the backbone of New York s economy and the SBDC does an outstanding job in helping New Yorkers prosper. George E. Pataki, Governor, New York State 1

4 message from the chancellor The State University of New York is a 64-campus network dedicated to the of all New Yorkers through education, research, and public service. This issue of the Program Report illustrates the strong ties between the SBDC and SUNY. For over 20 years, the SBDC has been an integral part of many SUNY campuses, helping area entrepreneurs develop effective business plans and locate sources of funding for their businesses; Chancellor Robert L. King as well as providing business training courses, and doing research vital for business. The SBDC is an excellent example of SUNY s commitment to New York s economic vitality and growth, and the SBDC s special programs directed toward high technology business development, manufacturing, and veteran entrepreneurs, to name just three show our responsiveness to this great state s constantly evolving economic priorities. Robert L. King, Chancellor, The State University of New York 2

5 The SBDC is a prime example of how the academic resources of the State University can help invigorate New York State businesses and local economies. SUNY faculty members are frequently called in to help solve especially complex marketing or financial issues for clients, and SBDC business training message from the provost courses are often offered in conjunction with college continuing education programs. At the same time, the SBDC serves as an important resource for all State University campuses. SUNY business students serve as interns at many SBDC Regional Provost Peter D. Salins Centers, working side-by-side with certified SBDC business counselors as they assist entrepreneurs. This vital collaboration once again illustrates how SUNY s positive impact reaches into every New York community. Peter D. Salins, Provost, The State University of New York 3

6 The North Country SBDC at SUNY Plattsburgh is a wonderful resource for the small businesses and entrepreneurs in our area. John Ettling, President, SUNY Plattsburgh 4 Vanessa Holsapple and Joseph Leto albany US Army veteran Vanessa Holsapple, and her partner, Joseph Leto, loved to vacation in southern Columbia County. They often stayed at a campground/rv park owned by a group of elderly investors who were not reluctant to put money into the facility, but found operating it burdensome. Holsappple decided she and her partner would make an offer to buy the property. A regional commercial lender helped them determine what they needed in funding. For help on the business plan, the bank suggested they contact the SBDC at the University at Albany. Albany SBDC business advisers helped Holsapple rewrite the business plan and sharpen the financial projections. The result was $772,250: $378,125 from the lender, $226,875 via an SBA 504 loan, and $162,250 in owner equity. Brook-N-Wood opened under new ownership in the spring of Veteran Business Adviser Howard Wildove and the Albany SBDC were very helpful, says Holsapple. They helped make a dream come true. The Educational Partnership that Produces Business Success For over two decades, the New York State Small Business Development Center (NYS/SBDC) has been providing New York entrepreneurs and small businesses with pro bono, confidential business counseling, business training, and focused, industry-specific business research of the highest quality. The NYS/ SBDC is funded by the U.S. Small Business Administration, with matching funds from New York State. Since the program was established in 1984, the SBDC has worked with more than 221,000 New Yorkers, helping them locate over $2.5 billion to start or grow their businesses, and creating or saving more than 107,000 jobs. The State University of New York (SUNY) administers the SBDC, and the SBDC s network of 23 technologically integrated service delivery centers located on SUNY campuses and the campuses of SUNY s educational partners, including City University of New York (CUNY) and private universities. From the start, this extraordinary education-government partnership has spelled business for New York. Small businesses, the backbone of New York s economy, are a significant component of campus economic development activities in communities around the state. The State University of New York and its educational partners demonstrate their commitment to the economic health of all New Yorkers through their active involvement in SBDC service delivery. SBDC Regional Centers, in turn, participate actively in the activities of their host campuses, and their explicit economic goals enhance the public service aspect of the campus s mission of education, research, and public service. Following is a brief overview of interactions between SBDC Regional Centers and host campuses. These few examples are representative of a wide spectrum of mutually beneficial activities. Numerous campuses on which SBDC Regional Centers are located offer undergraduate for-credit courses in entrepreneurship and business administration, business certificate and non-certificate courses as part of their continuing education programs, and business seminars open to the campus and surrounding communities. Jamestown Community College s SBDC will launch a three-credit-hour Entrepreneurship I course. The SBDC at the College of Staten

7 The SBDC serves approximately 1,000 clients a year in the greater Rochester and surrounding areas, filling an integral role in the College s outreach to the community. Island actively participates in teaching two business courses, Identity Theft and Starting Your Own Business, and provides guest lecturers for the college s Food Handlers Certificate Program. Many SBDC business training programs are presented in conjunction with the host campus, and faculty members help develop and deliver training modules. The SBDCs at SUNY Ulster, the University at Albany, SUNY Stony Brook and soon at Binghamton University participate in campusbased business incubators that provide entrepreneurs with a supportive infrastructure and business services at reasonable cost. Incubators are a proven method for jump-starting new enterprises. Often, ideas generated in research laboratories by faculty and students find practical development in incubators located in or near the campus. Many incubator tenants draw on the facilities and brain-power in university research labs. John B. Clark, Interim President, SUNY Brockport Many SBDCs at SUNY Canton, SUNY Plattsburgh, Niagara Community College, Boricua College, and the University at Albany, to cite just five examples draw workstudy business students and interns from their campus communities. In many instances, these students, under the supervision of SBDC business counselors, have the opportunity to work directly with entrepreneurs and small business owners. The SBDC at Jefferson Community College sponsors a disabled student intern. SBDC business counselors discuss small business concepts with students as guest speakers and lecturers in the classroom and in environments beyond the classroom. In certain instances, faculty members and graduate students are called upon by the SBDC to provide expert opinion in helping clients and in solving especially complex business development problems. The Field Center, located at Baruch College in midtown Manhattan, is a notable example. Students also work directly with clients to develop business documents, such as business plans, cash flow projections, and marketing strategies. Wherever SBDCs deliver business counseling services, they showcase their host campuses. For example, the Onondaga Community College (OCC) SBDC participates in Syracuse inner-city programs, which brings OCC into contact with the area s minority populations. The SBDC at Lehman College, in the Bronx, coordinates the college s HUD/HSIAC (Hispanic Serving Institution Assisting Communities) economic development grant program. The Boricua College SBDC, in Brooklyn, co-sponsors, with Congresswoman Nydia Velazquez, workshops promoting Successful Latina Businesses. When Steve Brooks, who worked for years for a national credit card company, grew tired of the constant business travel, he decided to apply his love of the culinary arts by opening his own restaurant. Brooks, of Jamaican extraction, had numerous distinctive recipes that would make his restaurant stand out. He came to the SBDC at Boricua College in Brooklyn for assistance. SBDC business advisers worked with him on a business plan and equity investment review, and reviewed bank loan requirements, as well as demographic information about the Greenpoint neighborhood. To prepare himself, Brooks attended the French Culinary Institute School and worked as a caterer. After a number of months, Brooks was approved for an SBA-guaranteed $100,000 loan from a local bank, combined with $175,000 in personal equity. Bleu Drawes Café, named for a signature dessert of sweet potato pudding cooked in a banana leaf, had a Grand Opening in Greenpoint in March Says Brooks, The SBDC helped me every step of the way with bank loan packaging, obtaining the required NYC regulatory licenses and permits, and moral support. They were great! brooklyn From left, John Tear, VP, Community Capital Bank; Frank Ditto, SBA; U.S. Congresswoman Nydia Velazquez, Steve Brooks, SBDC Business Adviser Miriam Colon 5

8 Wilcor International, Inc., has operated for more than 60 years as a family business with headquarters in Utica. The company distributes quality camping and wilderness products manufactured to Wilcor specifications. The company was founded by William J. and Claris Corrigan in 1935, and in 1950, their son, William L. Corrigan, following service in the Marines, became principal of the company. Wilcor employs 74 people in peak season and 38 yearround. As it expanded, the company needed a new, flexible 120,000-square-foot warehousing facility, along with a modern materials handling system. Mohawk Valley SBDC business adviser Sam Russo started working with William s sons, Shawn, Dennis, and David Corrigan in Together they prepared cash flow projections and financial pro formas. Materials from the SBDC Research Network provided important marketing information. The result was a $100,000 grant from Empire State Development Corporation, a $250,000 loan from the Herkimer County IDA, a $3,772,500 loan from a national commercial lender, and $727,500 in owner equity. Total funding package: $4.85 million. After an extensive search, Wilcor will relocate to the Schuyler Business Park and a modern 120,000-square-foot facility. Says Shawn Corrigan, Sam Russo worked with us for many months to help bring this expansion to fruition. The SBDC will always go the extra mile to help you succeed. Mohawk Valley From left, SBDC Director Dave Mallen, SBDC Business Adviser Sam Russo, Shawn Corrigan, William J. Corrigan, William L. Corrigan, David Corrigan, Karen Corrigan Rider, Dennis Corrigan 6 The SBDC at Jamestown Community College plays a key role in furthering our college s mission to support economic development. Greg DeCinque, President, Jamestown Community College SBDC Regional Offices support and coordinate visits by foreign business representatives. These visitors spend significant time with students and faculty in both formal and informal settings, sharing ideas and perspectives. Mercy College s SBDC, for example, has supported and hosted visits by senior officials from Pakistan, China, France, Hungary, and Canada. The statewide program prioritizes underserved populations, but works to improve the economic viability of all small businesses in the state. Statewide, of the 16,384 SBDC clients served last year, minority clients comprised over 34 percent. Of this number, 52 percent were African-American, 20 percent Hispanic, 14 percent Asian, six percent Puerto Rican, two percent Native American, and four percent of undetermined minority status. In all, slightly fewer than half of SBDC clients were women. Increasingly, small business ownership reflects the melting pot of New York s population. This diversity has strengthened the small business sector of New York and promises a bright future. The SBDC routinely asks clients to evaluate services provided by conducting a post-counseling evaluation survey to find out how we can improve services. Results from Year 2004 surveys indicate that almost all clients are very satisfied: 95 percent said their inquiries received prompt attention; 88 percent said they could not have afforded private counseling services; 97 percent said they would recommend SBDC services to other small businesses; and 89 percent said they received specific recommendations that improved the bottom line of their businesses. At the heart of every SBDC office are the talented, dedicated business advisers who have just one goal in mind: assisting small business owners and those who want to become small business owners. SBDC business advisers undergo a rigorous professional certification process to continually improve their expertise and sharpen their skills. The ambitious SBDC Business Certification Program has been augmented by an Advanced Certification Program, which requires at least two years of additional training and experience, as well as active participation in statewide program initiatives and in the local business community. John Narciso, veterans business adviser at the Farmingdale State University SBDC, is representative of the SBDC s highly motivated small business experts. Narciso, a mainstay of the SBDC s Veteran s Business Outreach Program since its establishment in 1999, has personally accounted for over $52 million in economic

9 The SBDC has helped us grow our local economy. We are proud to host this fine program. Deborah F. Stanley, President, SUNY Oswego impact in his 10 years with the organization. His work with SBDC clients has resulted in the creation and retention of over 2,700 jobs. He spent 30 distinguished years in the U.S. Navy, rising to the rank of captain, and has advanced degrees in educational leadership, personnel administration, and management. In May, Narciso was named this year s New York State outstanding SBDC business counselor. He received the Star Performer Award from the Association of Small Business Development Centers at its national convention in New Orleans. At its Annual Professional Development and Staff Training event this year in Corning, the SBDC recognized five outstanding business advisers with Adviser of the Year Awards, signifying consistent excellence in professional services, outcomes, and client satisfaction. The main determinant in making these awards is the degree of satisfaction expressed by the adviser s clients over the past year. Al Randzin (Mid- Hudson) received the top honor, followed by Lawrence Perras (Watertown), Allison Lehr (Midtown Manhattan), Joan Powers (Onondaga), and Ken Homer (Binghamton). Award-Winning Professionals The SBDC professionals who counsel and assist New Yorkers as well as their clients win numerous honors for themselves on the basis of their outstanding service. In the last year, for example, Joan Powers from the Onondaga SBDC was named 2004 Women in Business Advocate of the Year by the SBA s Syracuse District. Clarence Stanley, director of the Bronx SBDC, was honored with a community service award from the Hunts Point Economic Development Corporation in recognition of many years of leadership and activities in fostering small business in the Bronx. And Sidney Clanton, Jr., a client of the Buffalo SBDC, was named 2004 Veterans Business Advocate of the Year by the SBA s Buffalo District. Clanton, a veteran and president of Clanton Real Estate in Buffalo, was selected for the award because of his outstanding advocacy efforts on behalf of veteran-owned small businesses. SBDC Twentieth-Anniversary Celebration & Hall of Fame Late in March 2004, the NYS/SBDC celebrated its 20th Anniversary of service to the small business entrepreneurs in New York with a gala event in the well of the Legislative Office Building in Empire State Plaza, Albany. In connection with the event in Albany, Regional Centers across the state have held their own 20th Anniversary Open Houses to which they have invited campus communities and local legislators. SBDC Business Adviser Herb Rice with Marilyn Drayer jamestown Marilyn and Richard Drayer purchased Ashville Bay Marina on Chautauqua Lake in January In October 1997, Richard died suddenly, leaving Marilyn with a business to run. The location of the marina, on one of New York s most beautiful and popular recreational lakes, helped guarantee steady business. But the marina needed renovations and improvements. Revenues from summer dockage, winter storage, boat parts, service, and sales were insufficient to allow the replacement of 270 docks. Herb Rice, Jamestown SBDC business adviser, worked with Marilyn Drayer on cash flow projections, which led to a loan of $410,000 from a local lending institution. The new funding allowed Drayer to restructure her debt, improve cash flow, and inject working capital. The funding saved six jobs. Drayer can keep healthy a family business that will eventually be handed down to one of her three sons. When I met with Herb Rice, says Drayer, he helped me develop a business plan that secured the loan I needed to help my business grow. Herb was very insightful and supportive, giving me the confidence I needed to take the next step. 7

10 Through their efforts in developing business plans and financial planning, the SBDC has had an enormous economic impact. Jonathan Gibralter, President, Farmingdale State University 8 Eric Helms pace In 1998, Eric Helms was managing a group of spas and health clubs in New York City when he decided to go into business for himself and open Juice Generation, offering fresh juices, smoothies, hot soups, healthy sandwiches, and herbal products in an inviting atmosphere and by a friendly and informed staff a concept that has caught on. Helms had worked with the SBDC at Pace University on locating funding of $140,000 for his second store. When it came time for him to open a third store on the Upper West Side in 2004, he contacted Pace SBDC business adviser Rawle Brown once again, and together they put together a ful business plan and financial projections. The result was a $160,000 SBA-guaranteed loan from a commercial lender. The latest Juice Generation opened in May 2004 and was an immediate. Rawle Brown and the SBDC were a great help to me over a number of years, says Helms. They bring together entrepreneurs and the lending community to produce small business. The highlight of the 20th Anniversary event was the formal induction of 32 outstanding New York small businesses into the NYS/SBDC Hall of Fame. All inductees were clients of the SBDC, and had made a long-term of their businesses as well as significant economic and public service contributions to their communities. Approximately 30 New York legislators attended the event and helped in making presentations to Hall of Fame recipients. The SBDC measures its one entrepreneur at a time, and Hall of Fame inductees were the stars of the evening. Inductees received framed color photos of themselves at their place of business, a plaque honoring their accomplishments, and businessmanagement software from Microsoft. Each participated in a taped interview by SUNY s New York Network, which was transmitted by satellite to the entrepreneur s local TV stations. A full set of the framed photos will hang in the central office of the SBDC in Albany, as well as in Regional Centers. There are photos of the Anniversary Celebration on pages The process of selecting members of the SBDC Hall of Fame was undertaken by a statewide committee of SBDC business advisers and center directors. The selection process began in January and was completed by March. The committee will review nominations from the Regional Centers and select new Hall of Fame members on an annual basis. New Hall of Fame members will be announced at the program s annual training event. See page 29 for a list of inductees National SBIR/ STTR Conference The NYS/SBDC focuses special attention on manufacturers, exporters, high-technology firms, and projects that advance the industrial development, investment, and economic growth priorities of New York State. The program s comprehensive business assistance includes counseling for individuals interested in moving a product or service from the research laboratory to the marketplace. In fall 2005, the SBDC, in partnership with the SUNY Research Foundation and Empire State Development, will host the National SBIR and STTR Conference in Albany. Sponsored by the US Small Business Administration and the National Science Foundation, the SBIR/STTR program annually provides over $2 billion to small high-technology businesses to encourage the research and development of advanced technologies with both government and commercial applications. The 2005 conference in Albany will bring together hundreds of small hightechnology firms from across the U.S. and representatives of 11 funding agencies for the purpose of sharing information and learning about opportunities.

11 ...the SBDC plays a major role in helping Lehman fulfill its mission to be an important resource in the economic development of the Bronx. Michael Paull, Dean, School of Continuing Education, Lehman College Visit the SBDC at In honor of the program s twentieth anniversary, the SBDC launched a redesigned website. Incorporating our celebratory logo, the site includes a special retrospective section devoted to the history of the program from 1984 to the present. Features include a timeline of significant events in SBDC history, and historical photos. Of highest interest is the gallery of the first inductees to the Client Hall of Fame. The Hall of Fame celebrates individuals who have distinguished themselves, overcoming significant obstacles in many cases, and serving as examples for emulation across the state. A photo and story of each business highlights their. This gallery will continue to expand with the induction of clients of significant achievement. Visit the twentieth-anniversary section of the website, at Anniversary/anniversary.html. Behind the scenes, our webmaster continues to implement changes to the website according to accessibility guidelines. The guidelines present several levels of standards that can be applied, thereby making the site easier to navigate for persons utilizing screen readers and other assistive technologies. These same techniques benefit other users as well. For all users of the SBDC site, the introduction of online business counseling is an important new feature. Launched in October, online counseling allows the user to access SBDC assistance via . A button on our homepage, links the user to an online counseling form; completion of this form is required to use this service. A certified SBDC business adviser will respond to all business-related questions and issues. In this manner, the SBDC can reach out to more entrepreneurs, especially those who might be unable to meet with a business adviser in person. Shrinking the World, One Small Business at a Time Developing business in the global marketplace and exporting goods and services to markets overseas represent a major growth opportunity for small businesses in the 21stcentury economy. The NYS/SBDC s International Business Program (IBP) has strategically positioned small- and medium-sized businesses in New York State to take advantage of trade and business development opportunities in the global marketplace. With a special focus on business opportunities for New York companies in China, the SBDC has nurtured contacts, resources, and an unparalleled network within government and business circles in China on local, regional, and national levels. With rapidly changing economic conditions in China, the IBP is working on revising existing partnerships and developing new cooperative Ann Yando, Jill Marshall, and Diane Warner are sisters and lifelong residents of Malone. They have also owned and operated a number of ful businesses. The sisters were concerned about the area s lack of high-quality, professional day care. In fall 2001, they took their vision to the North Country SBDC at Plattsburgh State University. The premium-quality day care center they had in mind required a new building with specialty furnishings like heated floors, cleanable surfaces, and video surveillance. Projected project cost: $434,829. Many lenders were skeptical. SBDC business adviser Rich Gottschall worked with the partners to develop a solid business plan that conveyed their assessment of the market and projections that demonstrated the feasibility of the investment. After approaching approximately 10 lenders, the funding was secured. Giggles and Wiggles Day Care opened in November It quickly reached capacity of 89 children. Seventeen highly qualified employees have been hired. Says Ann Yando, We could not have done it without the SBDC. Thank goodness for the exhaustive planning and projection process. They were right on! north country Standing from left, Ann Yando, Jill Marshall; (seated) Diane Warner 9

12 Allegiance Van Lines, Inc., founded in 1976 in Syosset, provides business relocation, warehousing, fixed asset management, and records management services to businesses around the world. The company filed for bankruptcy in 1999 and in the interim, implemented poor management decisions. Employees Joseph Lopez and John Tigar both with 14 years of service vowed to purchase the company and turn it around. They contacted the SBDC at Farmingdale State University for assistance. With their SBDC business adviser, they created a reorganization business plan. In February 2004, a commercial lender agreed to an 85 percent SBA-guaranteed loan for $150,000. This was combined with a $60,000 cash infusion from the partners. The renamed Allegiance Relocation and Warehousing, LLC has created 8 new jobs and saved 12 jobs, shaved operating expenses by 14 percent, and exceeded sales goals by 30 percent in the first six months. Our hats are off to SBDC business adviser Mark Wan, says John Tigar. His concern for our progress, even after the loan was approved, has been very helpful. I rave about Mark and the SBDC whenever I have the opportunity. farmingdale From left, John Tigar, Joseph Lopez Working together for 20 years, we have been able to actively advance entrepreneurship and small business as a central strategy for Buffalo s economic future. Muriel A. Howard, President, Buffalo State College arrangements with the Chinese, so that optimal service will be provided to SBDC clients who are interested or active in international business and trade. In the past year, the IBP has provided business counseling and service to hundreds of clients for international trade, market identification and penetration, feasibility analysis, project outsourcing, financial issues, regulations, customs, taxes, tariffs, and trade shows. Three agreements were signed by NYS/SBDC and the Ministry of Science and Technology, industrial parks, and local government agencies in China. By entering into cooperative agreements, the NYS/SBDC has helped create and maximize trade and business opportunities for more small businesses in a cost-effective way. To cite one example, with the assistance of the IBP, Hydro-Air Components, Inc., based in Hamburg, New York, entered into a trade and production agreement in the Tianjin Economic Development Zone in After only one year s operation, the company started expanding production and distribution in China. Hydro-Air is developing and manufacturing hydroheating equipment and products targeted to major Chinese markets, including the 2008 Olympics. This year they are also exporting to South Korea. So when you watch the indoor sporting events at the Chinese Olympic facilities in the next few years, remember that the athletes are competing in climates controlled by New York-based Hydro-Air Components, Inc. The IBP, together with SBDC regional centers, has organized training sessions, seminars, and business meetings that focus on business information, opportunities, challenges, and practices involved in international business and trade development. The IBP fully organized the first Small-to-Medium Business Exchange and Cooperation Conference in Shanghai that promoted exchange between businesses of both sides, maximized new opportunities, and helped expand the market there. Also, this conference paved the way for similar events to be held in New York next year, attracting more businesses to New York State for business cooperation and investment. In accordance with the US government s efforts for expanding overseas markets and a free trade agreement with other countries, the IBP is exploring opportunities in Mexico, South and Central America, Europe, and Asian countries other than China. Several meetings with representatives from these regions have been held and initial contacts and communications established. This is an important step in efforts to expand trade and create jobs for New York s small businesses. 10

13 ...the SBDC staff is working with our students to ensure that they have the knowledge they will need over the course of their careers. Joseph L. Kennedy, President, SUNY Canton For more information on IBP, consult the NYS/SBDC website, at At the website, click on the button labeled International at the bottom of the front page for information about the International Business Program. Turning Information into Profits the SBDC Research Network What national trade associations are based in New York? What is the small business profile of the Congressional districts for New York City? What are the trends in Internet advertising? Access to dependable and accurate information is the means by which ideas are translated into action. If used properly, such knowledge can orient a small business on a path to true, and enable the SBDC to implement effective new programs and policies that help its small business clients. New York State is one of a handful of SBDC programs in the nation to have a business library. The SBDC Research Network (as it is known) is available not only to clients of New York SBDC advisers, but is increasingly relied upon by the SBDC s program partners within SUNY and state government to assist in the development of their initiatives. Each year, this library provides value-added research services to answer thousands of questions like those above. The Research Network, created in 1991, is located at the SBDC Central Office. It is staffed by highly trained library personnel including interns from the University at Albany s School of Information Science & Policy who access a diverse collection of print, electronic, and Internet-based resources to obtain information needed by in-house staff, regional SBA offices, departments within SUNY, offices of state government, and, most prominently, the entrepreneurial clients of the SBDC. In addition to providing research services and administering an everchanging library setting, the staff of the Research Network is immersed in other projects that serve the NYS/SBDC's mission. These include content management for the organization's website, oversight of the library internship program, and acting as the SBDC liaison with the State Data Center (a state outpost of the US Census Bureau). In the past year, the Research Network has more actively sought membership in local library associations, in order to access professional development events to improve their craft. In April 2004, the New York SBDC published What's Your Signage? How On-Premise Signs Help Small Businesses Tap Into a Hidden Profit Center. Its appearance was the culmination of eight months of From left, Lee and Pat Furlong, Susan and Steve Gioia oswego For over 50 years, the place to be on summer Saturday nights is the Oswego Speedway. The Speedway has a nationwide reputation as the Home of Supermodifieds small, nimble racecars that can achieve speeds up to 150 mph. Despite the facility s history, it had been losing money for years. Steve and Susan Gioia, and Lee and Pat Furlong saw this as an opportunity. The Gioias own a thriving racing tire and parts business; Steve is ranked fifth among supermodifed drivers. The Furlongs run a ful carpet business and two modular home sales centers. With help from the Oswego Outreach SBDC, the partners analyzed the Speedway s financial records, prepared a business plan and financial projections. The result: a $1.2 million funding package that included a loan and line of credit from a local commercial bank, an SBA 504 loan, and support from the City of Oswego s Community Development Office and the Oswego County Industrial Development Agency. Twenty jobs were saved. The Speedway is generating more touristrelated income than ever before. SBDC help was invaluable, says Steve Gioia. They had the experience and expertise to bring together the financial resources we needed. They were terrific. 11

14 Through the efforts of our SBDC staff and programs, local citizens become involved in educational solutions to real business challenges found here in the Southern Tier. Floyd F. Amann, President, Corning Community College Zhi Guo (left) with SBDC Business Adviser Brian Yeung queens In January 2004, when Zhi Guo contacted the York College SBDC in Jamaica, Queens, he wanted to open an ice cream retail store and thought a prominent national franchise chain was the answer. Upon reviewing projected cash flows and capital requirements with SBDC business adviser Brian Yeung, however, a smaller ice cream franchiser with more reasonable up-front costs emerged as a much better opportunity. Since the ice cream business is seasonal, Guo needed to move quickly. With advice and assistance from the SBDC, Guo acquired a business using $100,000 in personal capital. One month after contacting the SBDC in February 2004 Guo opened his shop at 302 Broadway, in Astoria, Queens, and the business is going strong. The SBDC understood my priorities, and worked closely to help me achieve my goals, says Guo. They have a deep commitment to your. 12 research, writing, and editing by three Research Network staff. The book was developed under the sponsorship of the Signage Foundation, a nonprofit group dedicated to informing the business sector about the legal and economic impact of well-designed signage. An initial run of 10,000 books was printed. Copies were distributed to SBDCs and other SBA-managed business assistance providers around the country. The book has been made available for sale to the public as well. It has been advertised on the website of the International Sign Association, and was promoted in an article in a leading sign industry trade publication. New projects relating to the sign industry, as well as other initiatives are planned for the upcoming year. In each case, the Research Network will continue to be called upon for its information-gathering expertise. Saluting all Veterans Five years ago, the New York State SBDC was one of four organizations in the country selected by the US Small Business Administration to participate in the Veterans Business Outreach Program (VBOP) a pilot entrepreneurial assistance program directed at veterans and especially service-disabled veterans. VBOP provides outreach in the form of targeted business training, counseling, and mentoring for eligible veterans. The program focuses on veterans who want to start their own businesses or who own businesses and want to improve profitability. As part of VBOP, special Veterans Business Outreach Centers were established at the Farmingdale, Buffalo, and Albany SBDCs, each with a dedicated veterans business adviser. In June 2002, Congressman James Walsh (R-Syracuse) made possible an increase in business-counseling services to veterans in Central New York and elsewhere in the system where the need was greatest. As a result, dedicated veteran business advisers were added to the Onondaga SBDC office, the Binghamton SBDC office (serving the Southern Tier), and the Bronx SBDC, to provide assistance for veterans in New York City. By going to the SBDC website veterans page vboc you will find information about VBOP and an easy-to-fill-out electronic application for business counseling. An important ancillary program is the Veterans Behind Bars (VBB) initiative. VBB is a partnership program with the New York State Department of Correctional Services, and is directed at veterans who are within three years of release or parole. At Groveland Correctional Facility, a medium-security facility near Rochester, SBDC business advisers provide free business planning seminars and business plan

15 Small Business Development Centers help to turn ideas into action by providing entrepreneurs with the tools to launch these ideas. preparation workshops to veterans who sign up for the voluntary program. The program will expand in 2005 to include the McGregor Correctional Facility in Wilton. In five years, New York s VBOP has provided counseling to over 7,000 veterans, trained more than 6,000 veterans, and located over $100 million in funding for veterans businesses. According to its federal sponsor, the New York SBDC program is a national model for providing business assistance to veterans. One of the most exciting things happening within the New York VBOP is the development of a special web-based or CD-ROM-based interactive educational program that teaches veterans how to be ful entrepreneurs and small business owners. EntreSkills for Veterans is based on a very ful EntreSkills program developed over the last two years by the NYS/SBDC s Office of Entrepreneurial Education; this program is currently being used in over 150 high schools and middle schools across New York. The six VBOP business advisers have been working on upgrading and refining this material to make it suitable for veterans and active military personnel. EntreSkills for Veterans takes veterans through cumulative stages as it helps them refine and develop a small business concept, address legal and marketing issues, prepare financial statements, and, ultimately, prepare a finished business plan. Joseph Olson, President, Jefferson Community College Transitioning Defense Industries to Commercial Enterprises The Defense Economic Transition Assistance (DETA) program was authorized by the US Small Business Administration in 1995 to enable SBDCs to assist small businesses impacted by reductions in defense spending and the closing of military bases. The New York State DETA program provides an array of no-cost business services to help reposition these defense-impacted businesses to commercial markets. Initially, four SBDC DETA centers were strategically positioned throughout New York State in Utica, Farmingdale, Plattsburgh, and Stony Brook to provide assistance to heavily impacted areas. In FY 2003, the SBA awarded the NYS/SBDC a new contract to expand services to Watertown and Rochester. In 2003, the DETA initiative in Plattsburgh was suspended as the demand for services waned. The Manufacturing and Defense Development Center (MDDC), located in Rensselaer, now supports DETA business advisers at the regional centers mentioned above. The MDDC and DETA centers have created strategic partnerships with organizations statewide including aerospace industry associations and technology research and development programs to address issues impacting businesses adversely affected by reductions in defense spending. They are developing new Steve Johnson is only 28 years old, but he has already made his mark. A graduate of Buffalo s Culinary High School, Johnson trained as a chef, but then channeled his creativity into clothing design. His inspired casual apparel is now featured in over 20 high-end stores across the US. Johnson began working with SBDC business advisers at Buffalo State College in At the time, he was operating his design business out of his home. To grow the business to the next level, he needed funding and had identified a potential investor and partner in Karachi, Pakistan. The SBDC helped find a lawyer skilled in setting up international partnerships. The SBDC also put him in touch with a bank that could handle international transfers of funds and helped in other aspects of his expansion. Johnson now employs five people, and his company has been featured in the Buffalo News and Challenger, an African-American weekly. I can t say enough about the SBDC and the services they provide, says Johnson. They have the know-how to help you launch your business and direct it toward, and they are flexible. Whatever obstacles your business faces, the SBDC has the skills and the answers you need. buffalo Steve Johnson 13

16 Rick Kovacs attended the Forest Ranger School in Wanakena and fell in love with the northwestern Adirondacks. Several years after graduation, Kovacs was residing in Vermont and decided to build a hunting camp on Tooley Pond, near his alma mater. In 2001, Kovacs began working with Michelle Collins at the SUNY Canton SBDC. Together they worked on the business plan and financials he needed to obtain funding. There were challenges along the way. A building on the property intended as the main lodge turned out to be structurally unsound; a new building was needed and the funding package had to be restructured. Finally, in the summer of 2003, Kovacs and his wife, Angie Oliver, opened Packbasket Adventures, an oldfashioned Adirondack lodge and guide service, with $319,500 in funding from NYBDC, a regional commercial bank, North Country Alliance, and AEDC. The new lodge attracts tourists to historic Wanakena; Packbasket Adventures provides contracting opportunities to the area s many certified independent guides and is thriving. I can t say enough about the help I received from Michelle Collins and the Canton SBDC, says Kovacs. They are committed to the economic development of the area and its residents. canton Ron Kovacs and Angie Oliver 14 SBDC assistance in helping entrepreneurs start and grow businesses is very important to the economy of New York City. John Elliott, Vice President & Dean, Zicklin School of Business, Baruch College programs, seminars, and strategies to assist companies in increasing productivity, efficiency, and competitiveness in order to compete in commercial markets. The MDDC applies new technologies (including technology-based inventory control), identifies new domestic and foreign markets for products, and redesigns operations. Since its inception in 1995, the NYS DETA Program has provided business counseling to over 2,750 companies adversely affected by defense cutbacks. Assistance is now focused on helping companies and individuals transition from defense to commercial markets. As a direct result of the NYS DETA Program, clients have accessed over $69 million in capital and over 2,300 jobs have been saved or created. You can access additional information about DETA at Empowering Individuals with Disabilities The SBDC assists approximately 500 self-identified disabled clients every year with business planning, market strategies, and help in locating capital for business enterprises. In an average year, these clients invest about $1.5 million in their New York State businesses. Since its inception, the SBDC has assisted more than 7,400 disabled clients, and about 2,400 of those individuals were referred to the SBDC by Vocational and Educational Services for Individuals with Disabilities (VESID). Between 1984 and 2004, disabled clients working with the NYS/SBDC invested more than $32 million in their businesses. VESID is a NYS Department of Education program designed to return individuals with disabilities to the work force through selfemployment opportunities. VESID does this by making funds available, primarily for business-related equipment to qualified individuals with disabilities. Once they qualify, VESID clients are assigned to an SBDC business adviser, who helps them write a business plan to apply for bank financing. Financing ranges, on average, from $6,000 to $12,000 per client. Both the SBDC and VESID follow up after the client has been in business for six to twelve months. On average, the SBDC has found that 25 to 30 percent of these clients are still in business after five years, and 12 to 15 percent remain in business after 10 years. The SBDC also partners with the Western New York Independent Living Project, Inc., to provide entrepreneurial training and assistance to the managers of independent living centers (ILCs). ILCs serve individuals with all kinds of physical and mental disabilities and provide core services such as peer counseling, independent living skills, information and referral services, and individual and systems advocacy. The centers are looking to the SBDC to provide business

17 Workforce education is a key component of OCC s mission; therefore, we highly value the SBDC as a partner. Debbie Sydow, President, Onondaga Community College modeling services, financial projections, and recommendations on access to capital. The collaboration between the New York State Small Business Development Center (NYS/SBDC) and the Centers for Independent Living (CIL) began in 2001 with two training events designed to introduce not-for-profit independent living centers to the concept of business planning. The NYS/SBDC and CIL have established a relationship to provide training and business assistance to independent living centers interested in developing forprofit ventures. Currently, the SBDC and CIL are collaborating on a manual to provide guidance for center managers that want to establish a for-profit venture. An Activist Advisory Board The NYS/SBDC Advisory Board consists of individuals from small business, banking, government, and industry who have a commitment to the future of small business in New York. Most of these people own and operate their own small businesses or provide services to the small business sector. The Chairperson, Loretta Kaminsky, owned her own specialty chocolate business, and is now a vigorous advocate for small business in New York and nationally. Ms. Kaminsky is a past Chairperson of the SBA s National SBDC Advisory Board and is a leading speaker on issues affecting women in business. The mission of the statewide Advisory Board is to advise, counsel, and confer with the State Director of the Small Business Development Center in working to constructively advance and improve the New York State Small Business Development Center program. Advisory Board members provide input on program goals and objectives, review program performance, inform the State Director about economic conditions in their home regions, and advocate for the program with legislators, sponsors, and other interested individuals. In addition, the Advisory Board has standing committees that provide important feedback to the Lead Office on programmatic, advocacy, and operational activities. The Advisory Board also forms ad hoc committees to come to grips with issues as they occur. Office of Entrepreneurial Education The Office of Entrepreneurial Education (oe2) is the educational arm of the NYS/SBDC, promoting interest in entrepreneurship through educational programs. In 2003, oe2 developed and launched EntreSkills I, an interactive, web-based program providing students with an introduction to entrepreneurship and sharpening the skills they need to open and run a ful small business. The development of EntreSkills I will continue, based on formal and informal feedback from educators. (Continued on page 18) From Left, Bronx SBDC Director Clarence Stanley, Stephanie Mack, SBDC Asst. Director Cleavan Daniel bronx Stephanie Mack, a registered nurse and former health care executive, knew that many health care facilities were not disposing of confidential medical records in line with federal guidelines. Mack saw a business opportunity. She took her idea to the SBDC at Lehman College in the Bronx. Working with SBDC business adviser Cleavan Daniel, she prepared a detailed business plan. The SBDC worked with her in obtaining minority certification status in New York City, and with an application pending for New York State. The SBDC also assisted Mack with her SBA 8(a) application. Just-N-Time Dynamics, Inc. opened in January, The firm recently obtained a major contract with NYC Health and Hospital Corporation. Projected sales for 2004: $125,000, and for 2005: $300,000. Just-N-Time Dynamics, Inc., was featured in Crains Magazine, and accepted into the William Jefferson Clinton Foundation Small Business Initiative a program to help minority businesses grow. The SBDC at Lehman College is part of that initiative. There s no doubt in my mind that the SBDC helped me succeed. They understand business and what it takes to grow and prosper in diverse markets. 15

18 SBDC Twentieth-Anniversary Late in March 2004, the NYS SBDC celebrated 20 years of service to small business owners and entrepreneurs in New York with a gala event in the well of the Legislative Office Building at Empire State Plaza in Albany. The highlight of the Albany event was the formal induction of 32 outstanding New York Small Businesses into the NYS SBDC Hall of Fame. The approximately 30 New York legislators that attended the event made special presentations to the Hall of Fame members. All of the inductees were clients of the SBDC who have made a long-term of their businesses, as well as significant economic and/or public service contributions to their communities. The SBDC measures its one entrepreneur at a time, and Hall of Fame inductees were the stars of the evening. Inductees received framed color photos of themselves at their place of business, a plaque honoring their accomplishments, and business-management software from Microsoft. For a complete listing of 2004 Hall of Fame Inductees, see page 29. The host for the event was New York State Senate Majority Leader Joseph L. Bruno. Sponsors included: Fleet Bank, Key Bank, First Niagara, Intuit, and Nowicki and Company. From left, Peggy Swigonski, State Senator Raymond Meier, Robert Swigonski In connection with the Albany event, Regional Centers across the state held Open Houses throughout the year to mark the program s 20th anniversary. These regional events featured noteworthy speakers and attendees that included campus officials, local legislators, SBDC clients, and resource partners. On March 22, 2004, eight pages of The Legislative Gazette were devoted to the program. The text and pictures in the special section highlighted the programs and services the NYS SBDC has provided to small business between 1984 and

19 Celebration & Hall of Fame From left, George Rodriguez, Maria Rodriguez, State Senator Frank Padavan, Diego Rodriguez From left, Assemblyman Joseph Saladino, William Levine From left, Business Adviser Dale Rice, State Senator James Wright, Walter Planty, Donna Planty, and Diana Goolden From left, Karen Hartgen, NY Senate Majority Leader Joseph Bruno, Ursula Garreau- Rickenbacher From left, Pat McGee, Bia & Khalid Khan, Assemblyman William Parment 17

20 The SBDC has been an integral part of a host of programs at the University that support the Long Island economy. It is a program that I am very pleased to have here at Stony Brook. Dr. Yacov Shamash, Vice President for Economic Development and Dean of the College of Engineering and Applied Science, Stony Brook University Frank Lopa, Jr., (right) with his brother Paul Lopa staten island Frank Lopa, Jr., belongs to a second-generation Italian family that settled on Staten Island and has realized the American Dream. His father worked for the City until his savings enabled him to buy buildings and upgrade them for commercial and residential use. His mother and sister operate a real estate brokerage firm. In 1999, Lopa contacted the College of Staten Island SBDC and discussed his plans to own a real estate development business. SBDC business advisers helped him develop his business plan and locate sources of funding. These efforts resulted in $1.4 million from the Community Preservation Corporation. In four years, Lopa has constructed and sold a number of houses on Staten Island, and is currently constructing two projects totaling eleven residences. Total investment: $5,326,742. Thirty-eight jobs have been created. The company is thriving. The SBDC s assistance has been invaluable, says Lopa. Whatever the small business problem that needs solving, they are the people to turn to. 18 For example, during the summer of 2004, the oe2 team held a teacher focus group to solicit information about the use of EntreSkills in the classroom. Over the summer, the oe2 team also developed and mailed a survey to educators to collect information about tools and processes used to teach entrepreneurship in their regions. The oe2 continues to promote EntreSkills through direct mail campaigns, presentations and exhibits at conferences, and attendance at regional meetings of business and marketing teachers. Two oe2 staff members attended the annual Business Teachers of New York State (BTANYS) meeting in the fall to provide EntreSkills training and promote the program. One of the highlights of the conference was a session by high school educators that outlined creative uses of EntreSkills in the classroom. In 2003, oe2 was the recipient of the Hobart H. Conover Friend of Business Education Award, recognition from the Business Teachers of New York State that underscored the importance of oe2 s mission. The award recognized oe2 s participation in the NYS Department of Education s Summer Enrichment workshops for business and marketing educators. Visit for more information. Acknowledging Dynamic Alliances The of SBDC clients can be attributed to their vision and sweat equity, to the hard work of SBDC staff across New York State, and to the active support of key SBDC economic development partners on numerous projects and initiatives. The SBDC s most important partners are the US Small Business Administration, the State of New York, the State University of New York, City University of New York, and host campuses. Other key partnerships include, but are not limited to: Empire State Development (ESD): The state economic development agency that provides assistance and service to businesses to foster economic investment and prosperity in New York State. ESD works closely with businesses to identify creative solutions to challenging problems, generate enhanced opportunities for growth, and help businesses achieve their uniquely important short- and long-term goals. The Director of ESD s Division of Small Business, Jeffrey Boyce, serves on the SBDC Advisory Board. New York Business Development Corporation (NYBDC): A private corporation that works in conjunction with leading New York banks

21 Stony Brook s SBDC has once again proved a valuable resource for the people of New York. Small businesses remain the most important engine of job creation in our economy. and thrift institutions to provide creative and innovative financing to small businesses across New York. NYBDC co-administered, with the NYS/SBDC, the World Trade Center Small Business Recovery Fund, a revolving micro loan fund for small businesses in NYC affected by the September 11, 2001 terrorist attack. New York State Department of Taxation and Finance: Taxation and Finance is an agency that provides a fair system of tax administration, is accessible and responsive to taxpayers, and contributes to a favorable economic climate. The agency has a close working relationship with the SBDC. Department of Taxation representatives routinely participate in SBDC-hosted workshops throughout the state for small business owners. The agency provided critical collaboration with the SBDC and NYBDC in providing information to the World Trade Center Small Business Recovery Fund to facilitate the approval of bridge loans to WTC disasterimpacted applicants. Business Council of New York State (BCNYS): The primary advocacy group for business in New York State, supported by some 4,000 member companies and chambers of commerce from around the state. The BCNYS partners with the SBDC on special projects and initiatives targeted at small businesses in NYS. Shirley Strum Kenny, President, Stony Brook University National Federation of Independent Business (NFIB): The largest advocacy organization representing small and independent businesses in the US. NFIB provides timely informational resources to help business owners succeed. NFIB partners with the NYS/SBDC on special projects and initiatives targeted at small businesses in New York State. Service Core of Retired Employees (SCORE): An SBA-sponsored program dedicated to aiding in the formation, growth, and of small businesses nationwide. NYS/SBDC Regional Centers work hand in hand with local SCORE chapters around the state. Women s Business Centers (WBCs): An SBA-sponsored resource partner that promotes the growth of women-owned businesses by providing business training and technical assistance, access to credit and capital, federal contracts, and help identifying international trade opportunities. SBDC regional centers work closely with staff at the WBCs to assist women clients at every stage of developing and expanding ful businesses. US Department of Energy (DOE): DOE is in charge of Brookhaven National Laboratory on Long Island. The Stony Brook SBDC maintains an outreach office at Brookhaven to provide business Over twenty years, Jeffrey Gold worked his way up through executive management and sales positions in various communications companies. When his former employer declared bankruptcy, and the telecommunications industry collapsed, Gold lost most of his retirement savings, but none of his resolve. He pledged to himself and his family that he would start his own business and become economically self reliant. He investigated a number of business opportunities in the Rochester area. Finally, in early 2002, he had an opportunity to purchase the Buckmans Car Wash chain in Monroe County. A commercial lender referred Gold to Pamela Hillengas, business adviser at the SUNY Brockport SBDC. Working together, they were able to develop a unique financing plan which included securing an SBA-guaranteed loan in 2002, combined with an infusion of private equity that enabled Gold to purchase the Buckmans Car Wash chain. In October 2004, Gold announced an expansion into three additional locations in Gates, Spencerport, and Penfield again with SBDC assistance. One hundred people in the community now have jobs as a result of Gold s entrepreneurial spirit. I have worked with the Brockport SBDC and Pam Hillengas for over three years, said Gold. They are totally committed to regional economic development and small business. brockport SBDC Business Adviser Pam Hillengas with Jeffrey Gold 19

22 David Lee Holland has jewelry design in his blood. His parents are longtime designers in Selma, Alabama. His own creations, Designed by David Lee Holland/Inspired by Nature, are made of 18k gold and precious gems. After years of operating a home-based business, Holland and his partner, John Kyriazis, decided in 2002 to expand to a retail store in the SoHo district of Manhattan. Financing was necessary, so the partners talked to the Midtown Manhattan SBDC at Baruch College, part of the Field Center. An SBDC business adviser and MBA intern from the Field Center worked closely with them to prepare a loan application. Because the new store would be located within the 9/11 disaster area, the SBDC recommended an application to the World Trade Center Small Business Recovery Fund, administered by the SBDC and New York Business Development Corporation. The result was a $50,000 loan plus $300,000 in private equity. The store opened in December New York Magazine featured the store soon after the opening and named it in fall 2004 as one of New York City s best stores. The SBDC was a great help to us, says Holland. They had the expertise to help us move to the next level. manhattan John Kyriazis (left) and David Lee Holland 20 Pace University s SBDC is playing an increasingly important role in the Business School s entrepreneurship and economic development agendas. Arthur L. Centonze, Dean, Lubin School of Business, Pace University The SBDC, through its work to encourage strong, profitable, and growing businesses, strengthens our region and helps develop the area s workforce. Lois B. DeFleur, President, Binghamton University counseling to companies developing technologies that evolve from research at Brookhaven. This is the first SBDC office on site at a national laboratory. It also represents the first joint venture between the SBA, the SBDC, and DOE. Catskill Watershed: The SBDC has established an Outreach Office in Margaretville, NY, in partnership with the Catskill Watershed Corporation (CWC). The outreach office is the result of close cooperation between the SBDC and the Margaretville, Arkville Community (M-Ark) Project. The CWC outreach office is attached to the SBDC Mid-Hudson Regional Center affiliated with Ulster Community College and is based in Kingston, New York. At the CWC SBDC Outreach Office, Watershed residents, or those considering locating or moving a business into the Watershed area, can receive help preparing business plans, or simply getting answers to questions about marketing, production issues, finance, and other topics. New York State Department of State: Through a partnership with the DOS Division of Local Government, the SBDC provides entrepreneurial training to high schools in the Southern Tier through a federal grant from the Appalachian Regional Commission (ARC). Local government s mission is to provide training and technical assistance and to help local officials solve problems involving a variety of topics including community development. The division is also responsible for management of the ARC program, which provides financing assistance for economic and community development. SBDC s Office of Entrepreneurial Education participates in ARC s initiative on entrepreneurial education and training that helps states provide quality entrepreneurial training to youths, students, and businesspeople, and to strengthen existing businesses and help start new ones, a goal shared by SBDC, the NYS DOS, and the ARC. New York State Department of Education (NYSED): Officials at NYSED support the SBDC s entrepreneurial education initiatives by providing information about schools and educators, guidance with learning standards and assessment exams, and by helping to promote SBDC educational programs and services in their publications.

23 The SBDC s ongoing efforts in assisting small businesses are essential to the growth of our economy, helping to create jobs, thereby ensuring a stronger future for the Niagara region. James Klyczek, President, Niagara County Community College Mercy College s partnership with the SBDC is vital to the economy of the communities in which we live, work and educate. NYC Department of Small Business Services. Small Business Services (SBS) provides a variety of resources, from free seminars to publications on everything from financing to incorporating. The SBDC collaborates with SBS to help small business owners and entrepreneurs find the appropriate resources to resolve a range of business issues. In Staten Island, the SBS and SBDC are working to establish a communitybased Business Solutions Center. Interagency Small Business Task Force: The SBDC is an active member of the Task Force, a group established to address small-business issues and programmatic policies that affect small business. The task force targets areas of high priority to the New York State s small-business community, including taxation, insurance, banking, and regulatory reform issues, as well environmental and energy concerns. The Task Force also maintains a Web portal to small business information provided by state agencies as well as non-governmental organizations focused on small business. NYS Tribal Nations: The SBDC values its good working relationships with tribal nations around the Louise Feroe, President, Mercy College state, including the St. Regis- Mohawk Nation, the Onondaga Nation, the Seneca Nation, the Shinnecock Nation, and others. Local and Regional Chambers of Commerce: All SBDC regional centers work with Chamber of Commerce offices in their designated service areas. The good working relationships developed with local chambers and other local business and economic development organizations are critical to the of the program. One of the advantages of having a regionally distributed service delivery program is that each regional office can set up working relationships with other local small business service providers that are appropriate to that area s economic development priorities. Private-Sector Partners: The SBDC appreciates its alliances with privatesector organizations, including American Express, Intuit, Microsoft, Coca Cola, Key Bank, Deutsche Bank, and others. These privatesector partners provide financial and other support for a wide range of special projects and initiatives, including the program s annual staff development conference and other special events. Aaron Hart binghamton Aaron Hart s Station PE, Inc., produces CDs that facilitate elementary/middle school physical education programs. His high-quality products are sold to educators through catalog companies and trade shows. In February 2004, he came to the Binghamton University SBDC for help in expanding his two-year-old enterprise. SBDC business advisers worked with Hart to produce a business plan and accurate financial projections, and facilitated contacts with banks. In April, Hart received $240,000, including an SBA LOWDOC guarantee for $142,000. Since then, he has expanded his product line to include books, academic integration programs, lesson plans, and on-line educational resources, and he has filled six new positions. A website ( provides lesson plans and information for teachers, product information/sales, and a kids feature for fun and instruction. Station PE, Inc., markets products and programs across the country and is involved in fitness, wellness, and education programs jointly with the NYS Department of Health. Hart is also active with the Cortland County Health Department in promoting the Eat Well, Play Hard program. SBDC business adviser Ken Homer was a tremendous resource in helping my company grow to the next level, says Hart. 21

24 From left, Gary Butcher, Cookie Butcher, John Butcher niagara John and Gary Butcher established Summit Graphics in 1984 in the town of Lockport with a leased printing press in their living room. As the company grew, the Butchers needed a larger facility. The brothers contacted the SBDC at Niagara Community College. Assistant Director Lynn Oswald helped prepare a business plan and funding projections. Funding in the amount of $162,000 was secured. Summit Graphics now occupies a 3,000-square-foot facility with seven employees and over 300 steady clients. It has become Summit Print & Mail, LLC, and has expanded into direct mail advertising: newsletters, postcards, and self-mailers under the direction of Cookie Butcher, John s wife. The company received the Eastern Niagara Small Business of the Year Award in 2000, the Crouser and Associates 2003 Award, and the Niagara SBDC 2004 APEX Award. The SBDC was instrumental in making our business possible by providing us with timely and accurate financial projections, says John Butcher. We couldn t have done it without them. Kerry Irwin and Steve Saturno mid hudson Kerry Irwin and Steve Saturno own Golf Cars Unlimited in Vails Gate, NY, which they purchased from a former employer. They focus on selling and servicing new and used golf cars, selling new replacement parts to golf courses and other users, and providing rental cars for use in golf tournaments, seasonal recreational activities, and special events. They trace their friendship back to When the opportunity arose to acquire Golf Cars Unlimited, the partners had no idea whether they could get the financing they needed and were overwhelmed by the enormous number of details. Fortunately, they took their business plans to the Mid-Hudson SBDC in Newburgh. Business adviser Myriam Bouchard worked with the partners on a business plan and accurate and realistic financial projections. The result was funding in the amount of $270,000 from a commercial lending institution. The business is growing steadily. Myriam Bouchard and the SBDC were there to help us every step of the way, says Irwin. We couldn t have done it without them. 22

25 Billy Gooshaw and Kit Bauer corning Kit Bauer and Billy Gooshaw dreamed of opening a wine and liquor store in Elmira featuring wines from New York s Finger Lakes. They needed a good business plan before they applied for funding to make the dream a reality. SBDC business advisers at Corning Community College helped them develop a plan for a high visibility store within a newly renovated shopping center on the south side of Elmira. The plan was revised and approved for funding by a local commercial bank for $125,000, with an SBA guarantee, combined with $40,000 in personal equity. However, a state moratorium delayed the issuance of a liquor license for the store. Though disappointed and frustrated, the partners made use of the extra time by taking courses at the SBDC to learn the fine points of managing a small business. In October 2003, the moratorium was lifted and, with the encouragement of family and friends, Lighthouse Liquors and Wines of Southport opened in May, 2004 in Southport Plaza. We appreciate not only the professional assistance we received at the SBDC, but also their advice throughout this long process, says Kit Bauer. We never lost sight of our goal, and the SBDC was always there when we needed them. SBDC Business Adviser Mike Rosario with Josie Mertens onondaga Josie Mertens runs Colors Painting, Inc., a painting contractor in Manlius, New York, which is a certified Women s Business Enterprise. Having landed three large painting contracts with public agencies in the area, she needed an infusion of working capital, as well as a consolidation of credit card debt incurred in conducting her business. She met with Mike Rosanio, Business Adviser at the Onondaga Community College SBDC. Rosanio worked with Mertens on the best way to present financial information to potential lenders. They reviewed her tax returns for the previous three years. They worked together on cash flow projections. As a result, Colors Painting, Inc., was approved for a $40,000 loan under the SBA Community Express program (50 percent guarantee) from a commercial lender, added to $10,000 in private capital that put her company in a better position to satisfy current and future contracts. Four jobs were created; and five were saved. The SBDC has the expertise you need to help keep your business on track, says Mertens. They understand how business opportunities can be maximized. 23

26 From left, SBDC Business Adviser Pat Karlak, Dwayne Early, David Borders stony brook Scoshire Kennels, in Aquebogue, on Long Island, was founded in 1960 for breeding purebred dogs. When Dwayne Early and David Borders purchased Scoshire in 1997, they included boarding services and realized the business could not handle the demand. Their goal was a state-of-the-art facility that combined breeding, boarding, grooming, obedience training, and show handling classes. They came to the Stony Brook SBDC after they had difficulty obtaining funding because of poor cash flow and inadequate financial records maintained by the previous owner. SBDC Business Adviser Patricia Karlak helped them reorganize their financial data into acceptable accounting format, develop combined financial projections, and prepare a business plan. The result, after several months of negotiating, was a $650,000 SBA 504 loan involving a lending institution, Long Island Development Corporation and New York State Business Development Corporation. According to the partners, The SBDC worked with us for as long as it took to get the job done. I don t think we could have done it without them. (Left to right, back row) Asst. Dir. Westchester SBDC Jerry Kobre, ARC s Joe Jamin, Kevin Kading; (front row) Sheng-Huei Chang, Mark Westfield westchester After the terrorist attacks of September 11, 2001, improved high-technology methods of detecting explosives, hidden weapons, and other threats became critical to government and industry. With this in mind, engineer Mark Westfield and his partners formed Advanced Reconnaissance Group (ARC) in 2003 to develop advanced sensors capable of looking more deeply inside an image and analyzing accurately what they found there. Cutting edge ARC technologies run the gamut from airborne monitors for land mines and improvised explosive devices to agricultural imaging for improved farming and forestry management. The partners took their business goals to the Westchester SBDC. SBDC business advisers helped them develop their business plan and analyze market data, so that they could access capital and navigate government procurement systems. As a result, ARC has acquired several million dollars in equity capital to fulfill multi-million dollar contracts from commercial and military customers. The SBDC was vital to our, says Westfield. They understand high technology business opportunities and can help you open many doors. 24

27 Darrin Prance La Guardia SBDC Acting Director Rosa Figueroa (left) with Tara Mendez watertown laguardia For over two decades, Darrin Prance worked in the Canadian tape manufacturing business owned by his father. The company manufactured athletic and adhesive tape. In 1991 the company expanded, and Prance moved to Watertown to work in the US outlet. Five years later, an outside group that had purchased the business closed the New York plant. Prance, out of a job, saw a golden opportunity. He and a partner began looking for a plant site, machinery, and financing. Prance was referred to the Watertown SBDC through the New York State Self-Employment Program. With SBDC assistance, he eventually secured $2,436,000 to start up his business, including an SBA loan, an Employee Skills Grant from Empire State Development Corporation, loans from two local IDAs, and private investment. North American Tapes, LLC opened in January 2004, and will eventually bring nearly 40 high-paying jobs to the local economy. He was honored in May with an SBA Excellence in Small Business Award. Launching this company was complex and time-consuming, says Prance. Fortunately, I had business adviser Sarah O Connell and the SBDC to help bring the elements together. If you re looking for business assistance, they re the people to turn to. Tara Mendez, trained as a paralegal, wanted to open a day spa catering to the health and beauty needs of people in Kew Gardens, Queens. She knew she had what it took to make a of the business, but her financial skills were not strong. I m not good at financial analysis or projection, said Mendez. The bank just handed me a folder with the paperwork. Fortunately, she found help at the La Guardia Community College SBDC. After several consultations with the SBDC, Mendez not only filled out the paperwork, she qualified for the $53,000 loan she needed. Ascend Day Spa, Inc. opened in December 2003 and is going strong. When you apply for a loan, says Mendez, you have to list everything you need, and the SBDC helped me include items important to my business like a credit card machine and what it would cost per month. If it wasn t for Rosa Figueroa and the La Guardia SBDC, I don t think I d be in business. 25

28 2004 SBDC Business Advisers of the Year (left to right): Ken Homer (Binghamton), Joan Powers (Onondaga), Allison Lehr (Midtown Manhattan), Lawrence Perras (Watertown Oswego Outreach), Al Randzin (Mid-Hudson) U.S. Congressman Gregory Meeks (left) with SBDC State Director Jim King In May, New York State secondary school teachers met with the SBDC s Office of Entrepreneurial Education to make recommendations on EntreSkills I entrepreneurship training program for high school students. 26 NY Assemblyman Robin Schimminger with SBDC Advisory Board Chair Loretta Kaminsky From left, SBA Administrator Hector Barreto, SBDC Buffalo Director Sue McCartney, SBA Region II Administrator Michael Pappas

29 Last November, SUNY IT at Utica/Rome was the site of a press conference promoting Healthy New York s health insurance coverage for small business. From left, Mohawk Valley SBDC Director Dave Mallen, Assemblyman David Townsend, NY Lieutenant Governor Mary Donohue, Oneida County Supervisor Joseph Griffo, NYS Insurance Commissioner Gregory Serio. The SBA s New York SBDC Project Officer Dan O Connell spoke at the Staff Training Conference in Corning In 2004, the SBDC's International Business Program co-organized with the Shanghai government a Small-Medium Business Exchange and Cooperation Conference in Shanghai to maximize opportunities for New York business in China. From left, 2004 New York SBDC Star Performer John Narciso, Gail Narciso, SBDC Farmingdale Director Lucille Wesnofske, State Director Jim King KidBiz, a national-award-winning program of the Buffalo State SBDC, trains youngsters in grades three through six in entrepreneurship. Over the summer, the kids open their businesses next door to the Farmer s Market in Buffalo s Bidwell Park. In 2004, 120 young entrepreneurs made over $5,

30 2004 SBDC Entrepreneurs of the Year Corning, NY, was the site in May of the 2004 SBDC Staff Training and Professional Development Conference, hosted by the Corning SBDC. The highlight of the event was the Awards Banquet honoring seven outstanding Entrepreneurs of the Year. The award winners are pictured here. For more information about these entrepreneurs and their businesses, visit the SBDC Website at RURAL ENTREPRENEUR OF THE YEAR Nancy Tabor Richards - Corning SBDC MINORITY ENTREPRENEUR OF THE YEAR Sally Sola - Bronx SBDC WOMAN ENTREPRENEUR OF THE YEAR Robin Wysokowski - Onondaga SBDC VETERAN ENTREPRENEUR OF THE YEAR Ken Palmer - Farmingdale SBDC GROWTH COMPANY OF THE YEAR Angelo & Deborah Rosato - Mohawk Valley SBDC 28 START-UP COMPANY OF THE YEAR Ron London - Watertown SBDC MANUFACTURER OF THE YEAR Phil Frederick - Albany SBDC