PDF - The Corridor

Long Island Small Business issue
Vol. 2 Issue 02
Once in a
Blu Chip Moon
Karin Caro – Up Close and Personal
Roslyn Goldmacher
“Where’s The Money?”
From Farm to
Vineyard
Long Island’s Agribusiness
Diversifies
Cornerstone
Interview
Neil Kaufman, Chairman of the
Long Island Capital Alliance
Is a Mega-Million$
Clean Energy Technology
Incubating at Stony Brook?
LIFT
Teaming Up to Win!
Small Biz Entrepreneurs:
The Mom & Pop,
The One Woman Show,
The Corporation
and The Serial
Entrepreneur
SAVE
the
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12TH ANNUAL
SMART
GROWTH
SUMMIT
Friday, November 22nd
Sponsorships are available!
8:00am-4:00pm
Melville Marriott
Contact Vision Long Island
Phone: 631-261-0242
Email: [email protected]
stay tuned for event details!
www.visionlongisland.org
Register Today! Sponsorships are available! 631-261-0242
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p.4
Great Ideas p.6
Editorial
Cornerstone Interview,
with Neil Kaufman
p.10
Welcome to Long Island’s
New Business of Businesses
--LaunchPad
p.12
Barbara Kent
Publisher/Editor-in-Chief
[email protected]
Economic Engines
Biz.org
p.14
Vivian Leber, Editor-at-Large
[email protected]
p.18
LIFT Teaming Up For
Success
p.19 Private Sector Sales
p.20
Affordable Health Care
Act—What Long Islanders
Need to Know,
Walter Oden
p.21 Goldmacher
Where’s The Money?, Roz
Is a Mega-Million$/
World-Changing Clean
Energy Technology
Incubating here, at
Stony Brook U?
Cover Story, Karin
Caro-Once in a Blu
Chip Moon
p.22
Chris Kent, Creative Director
[email protected]
Contributors
Vivian Leber, M.B.A.
John P. Wilson, Ph.D.
Shari Peyser
Umit Sami
Anthony Manetta
Walter Oden
Carlene Afetian
Jaci Clelment
Tom Scarda
Patti Bloom
Maria Prieto
p.24
p.28
Homegrown-LI
Agri-Business Diversifies
p.31
p.32
p.34
Cornerstone Interview
with Gloria Glowacki
p.36
Reaching the
Hispanic Market
Roslyn D. Goldmacher
[email protected]
Pamela Winnikoff
PAW Communications
[email protected]
Photography
Cover, Len Marks
www.LenmarksPhoto.com
631-367-1219
Vivian Leber
Barbara Kent
Entrepreneurs
Trade Show Tips,
John Hill
The Franchise Perspective,
Tom Scarda
p.40
Your Business
and the Media,
Jaci Clement
p.39
What if it Happens again?
Tips for Contingency
Planning, Patti Bloom
John Hill
Walter Oden
p.38
Thank you to our sponsors:
Blu Chip Marketing
Abrams Fensterman
Carter, DeLuca,
Farrel & Schmidt, LLP
LIDC
Melville Chamber
Vision Long Island
LIFT
www.TheCorridorLI.com
From the Editor’s Desk
Our inner beast is pleased with victory at any cost and trembles with
fear at the thought of competition. Fortunately the “inner beast” in
the very best cases has a “civilized intellect” over-lord, whose name
is “Collaboration”. Great for business. LIFT’s federally funded Small
Business Pilot Teaming project enables Long Island small businesses to
broaden their talent base and their market through collaboration and
diversification.
Barbara Kent
Publisher/Editor-in-Chief
We were very fortunate to have a close exchange with Karin Caro,
CEO of BluChip Marketing and owner or part-owner in eight other small
businesses. Our frank conversation is heart-warming and inspirational.
Welcome to her Blu Chip world.
I hope you find this issue as informative and exciting as I do. There is
never enough room or time to cover everyone so we try to choose topics
you might want to know a little more about. We found three people with
Great Ideas who are ready to find a manufacturer, expand a market and
develop a product further. It is our great hope that they find success with
this, their first-time publication.
The Entrepreneur is a special hybrid comprised of equal parts salesperson,
creator, and production manager. We asked four different genres of
entrepreneur-Sole Proprietor, Corporation, Serial Entrepreneur and Mom
& Pop what works for them and why they did it.
We took a road trip to the East End to talk to the farmers and vintners
who consistently produce highest yield in the state in some crops and
award winning wines. Agriculture is big business on Long Island, both in
crop production and tourism.
We’ll introduce you to a lot of people in this issue, and give you a rundown
of business organizations, chambers of commerce and economic engines.
This issue’s cornerstone interviews are fittingly, Neil Kaufman, current
Chairman of the Long Island Capital Alliance and Gloria Glowacki,
outgoing Associate Regional Director of the Small Business Development
Center (SBDC) at Stony Brook University.
We welcome LaunchPad, less than a year old, to the LI business community.
In addition to contributions by top guest columnists Roz Goldmacher,
Anthony Manetta, Walter Oden and Jaci Clement; tips, tools, advice,
resources, contacts and much more. Welcome to the Long Island Small
Business issue of the Corridor. I hope you enjoy it.
This issue of The Corridor is dedicated to the memory of Lawrence Kushnick, Esq., close friend of thousands, proud
steward of the Town of Huntington and graduate from and strong supporter of Leadership Huntington. His legacy will
live on with the Lawrence A. Kushnick Memorial Fund for Leadership Huntington.
To donate please go to www.LeadershipHuntington.org.
4
The Susan Satriano
Memorial Scholarship Foundation
3012 Waverly Avenue
Oceanside, NY 11572
The Susan Satriano Memorial Foundation
516-603-5520
www.susansatrianofoundation.com
~ Presents ~
Strawberry Fields Benefit Concert
Featuring the best
Beatles tribute band in the country!
The “fab four” had their debut performance in Broadway’s hit musical,
Beatlemania. The group will perform on
Oct. 26, 2013, 8:00 p.m. ~ Tickets, $25 each
Oceanside High School, 3160 Skillman Avenue, Oceanside, NY
Raffles, 50/50, snacks and refreshments will be available - doors open
at 6:45 p.m. For information, call 516-603-5520 or visit
www.susansatrianofoundation.com.
The Susan Satriano Memorial Foundation is a nonprofit organization launched in 2006 by
Oceanside resident and author, Joseph Satriano in tribute to his wife, Susan, who battled
breast cancer for thirteen-years. The Susan Satriano Memorial Scholarship Foundation
provides high school seniors with scholarships when a parent has suffered with cancer.
Since its inception, the foundation has awarded $300,000 to over 450 students across
Long Island and the nation. The foundation is funded by donations from family, friends,
businesses, as well as the net proceeds of Joe Satriano’s book, In Sickness and in Health:
A Memoir of Love.
Melt and the Clean Sponge
I’m a problem solver and the things I’ve developed are simply solutions
to problems I encounter going through life. Maybe more importantly, my
values imbue these products. It’s really important to me that if you’re
going to do something – anything really – then you have to do the job
honestly and “do it right.” I can’t stand half-baked results, poor effort or
laziness in general yet it seems I’m surrounded by exactly that topped off
with an extensive lack of integrity to boot. While that both
disappoints and upsets me, it also has some really
worrisome consequences: I have to automatically
assume that all product claims are BS, that things are
probably toxic (so I keep them away from my family)
and, at great expense of money and time, I have to
determine what actually works and what’s safe to
use. Why is knowing that a product is safe and will
work too much to ask? Unfortunately, it seems we
don’t really have that choice very often.
For this reason, all my products share the simple
characteristics of social and commercial
responsibility: they are real
solutions to real problems that you
and I can rely on. I have designed
them using knowledge from a
very broad array of fields and
I only release things that work
as well as I can make them. If
I don’t use a product at home
with my own kids and family,
or if I’m unsatisfied with its
performance, I won’t release
an invention. Very simply,
my products are a job well
done, or at least as well as
I can do it, and they work.
While I have many
prototypes, I’ve begun with
two. Please let me describe
them.
JOHN P. WILSON, Ph.D.
First is Melt™, a proprietary chemistry which melts away all those very
sticky things that won’t otherwise come off like adhesive or permanent
marker, while not damaging what you’re cleaning. I developed Melt™
after I used Goof Off™ on plastic. In this case it was my Petri dishes, and
it just completely destroyed the surface. Apparently I’m not alone: if you
Google “Goof Off damage” you get 170,000 hits. Melt™ hasn’t damaged
any surface I’ve tried it on yet including finished wood, Plexiglas and other
clear plastics. It comes in convenient small bottles for your house and
garage and it’s available in pine, citrus and lemongrass scents. It removes
adhesives (and thus stickers!), oils, waxes, permanent marker, greasy
smears and more. Put on a few drops and gently pull, on a price tag for
example, or rub with a soft rag or tissue paper. Any remaining Melt™ will
evaporate, leaving a clean surface.
The second is a solution to your home’s biggest biohazard: your kitchen
sponge. Your sponge contains 200,000 more bacteria than your toilet
seat[1] and 64% of sponges harbor medically serious pathogens[2] like
MURSA, E. coli O157, Salmonella, Klebsiella pneumoniae, Proteus,
Staphylococcus and even Campylobacter, which causes Guillain-Barre
syndrome and can lead to paralysis. Even if you think your sponge is new
or clean, there’s a 25% chance that it will still fail a hygiene test.[3] Despite
these real dangers, we somehow still keep this veritable household
biohazard under our noses, literally! We smear it on the surfaces we eat
from and cook on and unsurprisingly, 1 of 6 Americans get food poisoning
every year at a whopping cost of $77 billion with 3,000 people dying.[4]
Actually, I learned all these facts only after I solved the problem. I began
with genuine concerned for my family when I looked at our really scary,
really disgusting kitchen sponge.
Unfortunately, our sponge sometimes sits at the bottom of the sink and
one night when cleaning up, I was genuinely revulsed as I grabbed it:
at least if I were cleaning up after a dog, there’d be a plastic bag over
my hand yet my bare skin was in contact with that nasty smelly thing.
Annoyed, I decided to solve that problem. Many iterations later including
lots and lots of failed attempts at new chemistry, I invented Nanogreen™,
an integrated, patent-pending technology that kills >99.99% of bacteria
through a unique chemical composition of safe, non-toxic and 100%
natural ingredients (Fig. 1). Note that it’s not just microbiostatic (stops
things from growing), it’s actually microbiocidal: it actively kills bacteria,
mold, viruses and fungi dead.
Your Sponge
Nanogreen
Figure 1
6
>99.99% of bacteria are killed by Nanogreen™. I left a Nanogreen™ (right) and normal
sponge (left) right next to it in the bottom of our sink for a week. Plating the same
quantity of sponge juice, the answer was clear and striking.
In my house, Nanogreen™ has worked really well for us: months later our
sponges get tattered but don’t smell (and are sterile!). I made Nanogreen™
to protect my family and I suggest you do the same. So protect your family.
Get Nanogreen™.
Like all the products I make, Nanogreen™ sticks to the principles of social
and commercial responsibility. First of all, it really works (see Fig. 1). The
anti-bacterial sponges I tested didn’t actually kill bacteria. Second, if you look
carefully at most anti-bacterial sponges, they’re marked “not for aquarium
use” because they contain toxic chemicals. In contrast, Nanogreen™ is
completely safe and nontoxic to you and the environment. You and your kids
can grab it without worry; you can even chew on it if you really want to. The
sponge lasts just as long as other sponges and you use your Nanogreen™
sponge like any other. Nanogreen™ sponges simply won’t turn all stinky
smelly and yes, they’re just fine for fishbowls.
Dr. John P. Wilson is a Biochemist and Biophysicist officially working
as a Postdoctoral Researcher at the Pappin Laboratory of Protein
Analysis and Mass Spectrometry at the Cold Spring Harbor Laboratory.
He also founded and runs NYC Bio, a 501(c)3 with the mission of
fostering a thriving biotech cluster in the Greater NYC region. He can
be reached at [email protected].
Clever
Cocoon
Closet Cards
Shari Peyser
Clever Cocoon Closet Cards began when I joined a business
networking group that met every single week, and I realized that I
was going to have a problem with my clothes. The men wore suits
and ties, and the few women in the group were very well dressed. My
business is home-based, and while I do go out to see clients, I don’t
have a big wardrobe. I didn’t want to show up every week wearing the
same clothes. It was that simple.
The first thing I thought of was using index cards, so I punched a hole
in a card, wrote the name of the outfit and the date that I wore it, and
stuck it on a hangar. First problem – ink smudges. Second problem
– index cards aren’t that strong. I wanted to create something that
would have a little window, like an envelope, where you could see
the information easily but without getting ink or pencil marks on other
clothes. It had to be strong so it wouldn’t pull off of the hanger. It also
had to lie flat, so it wouldn’t take up a lot of space. And it had to be
easy enough to use, so that I could read it and decide what to wear
at 6:00 AM.
I ended up with a desk covered in scraps of paper, clear plastic,
envelopes and packaging with windows and five different kinds of
glue. My prototype looked like a bad arts and crafts project, but it
worked. A design professional helped refine how it looks, and taught
me about manufacturing. I hired a patent attorney, who helped me
get a patent and a trademark.
Clever Cocoon is really just starting. The next step is going after
companies that sell products for closets and housewares, setting up
a national media program, and attending trade shows. I know that
getting this off the ground is not going to be easy, but I believe that
Clever Cocoon solves a problem and that is what’s at the heart of a
successful invention.
Shari can be reached at 631-595-7150
Clever Cocoon Closet Cards, LLC
www.CleverCocoon.com,
[email protected]
7
GPS
at the
Mall
Umit D. Sami
LBS software systems (Location Based Services) that work seamlessly in junction with indoor navigation hardware
systems provide a unique set of opportunities for the future of the retail industry.
In LBS systems, also known as proximity services, the accuracy of the distance between the shop and the shopper is a
very important metric, in addition to speed reliability and the quality of the media content, simply because it allows the
system to perform a better, more relevant and accurate product search and recommendation services for the customer
who might be searching for a sale item on store shelves. One analogy that we use for comparison is the story of Yahoo
versus Google search. One may argue that what has essentially differentiated Google search from Yahoo’s search engine
was hidden in its simple webpage ranking method, a simple algorithm that has dramatically improved the accuracy of
search results in web browsers. An indoor navigation system that reports a shopper half a mile away from a GAP store in
the mall is not the same as the system that accurately reports that person, is only one foot or even one inch away, from the
same GAP store in the mall. r2sq Inc, which stands for “retail squares” is a Long-Island based pre-seed stage multimedia
technology startup that specializes in design, marketing, and delivery of information related to consumer products, such
as health, location and promotional content. r2sq’s multimedia technology platform is specifically designed for shoppers
who shop for sale items in retail indoor environments such as malls and supermarkets where GPS signal is not available.
One well-known approach that addresses this accuracy issue with indoor
navigation system is camera based computer vision systems that are
capable of identifying and tracking the shopper in indoor environments.
These camera vision systems are solely based on the appearance of the
shopper which might be used as unique identifiers to tag that person in
the tracking software - such as the person’s clothing, facial characteristics,
body shape and or accessories they might be wearing that day.
The main challenge with the computer vision approach is that all
vision systems require multiple cameras, are very CPU intensive,
very expensive and difficult to maintain. In most cases 100
up time is not possible. From the technical standpoint
object occlusion and background clutters are some
of the well-known problems that prevent vision
systems to reach beyond the 70-80% accuracy
threshold.
Another well-known well-studied tracking and
navigation technology is radio frequency (RF),
which involves installation of wireless routers on the
ceiling of the building and use of wireless triangulation
algorithms to track the smart-phone carrying shopper
in the store (similar to L1 signal that we receive
in our Smartphone from 24 GPS satellites that are
located around the globe). Unfortunately years of
research have proven that RF approaches are
not accurate enough for tracking shoppers in
indoor environments. Radio waves are
subject to interference and multi-wave
propagation delay and various other
environmental challenges. It is
also an expensive and labor8
intensive technology to deploy and maintain in store
environments.
The best-known alternative to CV (Computer Vision) and
RF (Radio Frequency) is INS (Inertial Navigation Systems)
technology, which essentially is a 9-axis MEMS chip that is
capable of tracking your location by counting your footsteps
against its own gravitational force. Despite its heavy use and
adaptation in various defense and industrial applications,
consumer grade INS chips are still in their infancy and
actively being developed in commercial and academic
research labs. Thanks to applications of nanotechnology
and semiconductor industry in a broader sense. There
are also several commercial chip vendors out there who
manufacture INS chips for consumer applications such
as smart-phones and other related wearable electronic
gadgets, STMicroelectronics and InvenSense are just a
few names that shine in that space. However, it is also
important to mention that no smart-phone manufacturer
has yet been able to use these INS chips to accurately track
shoppers in indoor environments. Therefore, the ultimate
quest for the holy grail of indoor navigation is still very much
intact and alive. The main issues with the use of consumer
grade INS chip for tracking a user in indoor environments
is actually in the chip’s initialization and calibration process.
In other words, the user who is carrying an INS chip must
tell the device as well as the underlying mapping software,
where he/she is initially located in the building to activate the
navigation software. Only then the INS chip can initialize
the user and start counting the user’s actual footsteps,
hence, estimating his/her location, relevant to his/her initial
starting point in the building. The other problem with INC
chips is calibration. Current INS chips that are sold in the
market tend to drift away from their calibrated specs just
after a few minutes of use. Almost in all test cases they
report inaccurate location information - unless of course the
user is willing to manually reset them (re-calibrate the chip).
Overlapping this INS sensory information with proper GIS
mapping data is also a very challenging task. The third
problem, which I think is the most important one, is the fact
that MEMS based INS chips require the user, the shopper,
to carry it on their body inside some wearable gadget such
as a Smartphone, smart-watch or Google glass like device,
which can be frustrating to wear or navigate (may or may
not result in the desirable shopping experience).
Beside these three mainstream technologies (CV, RF and
INS) there are a few other emerging technologies that can
be used to target this indoor navigation challenge and
r2sq is one of those startups that have been working on
this grand challenge for a number of years. r2sq research
team claims that it has found the best possible solution to
this indoor navigation challenge, which if proven to be a
viable solution, will become the enabling technology for its
flagship retail multimedia products. The system is currently
in early R&D (prototyping phase) and is being patented
and developed in private research labs in the United States
with very limited resources. If everything goes well r2sq’s
engineering team is planning to release a commercially
viable version of the indoor navigation system, a hardware
device, before the third quarter of 2014.
Another key advantage of r2sq multimedia e-commerce
platform is the immersive and interactive nature of the
media content that is presented to Smartphone enabled
customers. r2sq multimedia systems use the latest voice
and vision algorithms to interact with the consumer. For
instance, r2sq’s mobile augmented reality e-commerce app
will allow the vendor to effectively communicate the value
of its product to the shopper in real-time with embedded
and interactive 3D graphics – a unique and fun shopping
experience in itself. And while all of that is happening
in the front-end r2sq’s back-end engine will use big data
and machine learning techniques to sense the shopping
characteristics and habits of the consumer, which in turn
can arm the consumer with more actionable shopping
intelligence as she/he scans over the store shelves
for specific sale items. r2sq’s engineering team has
projected that the complementary mobile and the back-end
e-commerce software will be available for distribution in the
commercial markets at some point before the forth quarter
of 2015. The following is a simple pictorial representation of
the r2sq multimedia technology system in action:
In closing, by means of core innovation and superior
engineering as well as the algorithmic intelligence and
the sophisticated media and marketing content that will
be delivered to the end-consumers in real-time, r2sq is
confident that its upcoming multimedia technology platform
will revolutionize how shoppers in indoor environments
interact with vendors and their products while also
fundamentally redefining how companies spend their
advertisement dollars on marketing initiatives. Also from
the consumer’s prospective the value proposition is very
clear. The end-customer gets access to r2sq’s multimedia
platform free of charge and is able to leverage its unique
information sharing platform to make more intelligent
shopping decisions, all of which is done in real-time, at
the point of purchase. By sharing valuable side product
information such as health and safety labels, fun facts,
product recommendation services and a few other things,
r2sq instantly improves the quality of life for the shopper –
not to mention that its money saving promotional coupon
system has the potential to significantly affect that shopper’s
bottom line everyday, on a day-by-day basis.
Umit Sami can be reached at HYPERLINK “mailto:Umit.
[email protected]”[email protected] or (516) 5516599.960 Wheeler road, PO box 5081, Hauppauge,
11788
9
CORNERSTONE INTERVIEW
Neil
M.
Kaufman
Chairman of Long Island Capital Alliance
by Vivian Leber
Some years ago, one of Neil Kaufman’s clients at Abrams Fensterman, a law practice in Lake Success where he is
a partner and chairs the Corporate Department, received early-stage financing from the Long Island Capital Alliance
(LICA), and he thought, “what a great organization.” He soon joined its board, and in June 2012 became LICA’s
chairman, succeeding Jeffrey Bass, who after serving for 25 years now is Chairman Emeritus.
LICA is possibly the oldest continuously operating
organization of its kind in the U.S. As a not-for-profit
group, it does not take an investment stake in companies;
it connects the investment community to Long Island
businesses, which may range from early-stage to
mature companies that are seeking growth capital. LICA
also helps businesses form strategic relationships with
customers, suppliers or business partners, and links
them to expert business advisors.
“In my view, we need to focus on helping our local
companies grow through every stage in order to
create a more vibrant economy,” Kaufman says. LICA
is collaborating with the region’s accelerators and
investment firms. “We want to facilitate a more integrated
stepping-stone approach, so as to avoid situations where
a business gets some capital in one stage, and then is
left as an orphan.” As Kaufman explains it, a company
that is funded with LICA as facilitator and mentor would
instead step directly into a structured pipeline, so that
partners such as Accelerate Long Island and the Long
Island Angel Network, and in later-stages, debt funders,
would be available with guidance and stand ready to
continue with support at each growth step.
LICA is in the process of formulating a strategic plan
that, Kaufman says, will build on its strengths and
continue to address regional challenges. “We’ve seen
the frustration of fiefdoms doing their own thing. We are
committed to working closely and collectively with all
other organizations for the common purpose of building
the LI economy. LICA is committed to making even
further progress.”
“We’re doing better as a region than people realize. A
lot of manufacturing is tucked away in Long Island’s
industrial parks. Sure, it’s expensive here, but with
10
our workers among the most productive in the world,
and with our world-class science research, I don’t
see why we can’t be competitive with other high tech
regions.” Kaufman notes that LI has more than 20 public
companies and hundreds of successful middle-market
family and privately owned companies, not household
names, yet generating significant economic activity.
A lot of investment activity on LI flies under the radar and
is thus being underestimated, according to Kaufman.
LI has a long tradition of raising money through private
placements which are not counted in traditional tallies of
VC. Once pending regulatory rules for private placements
are written, in theory, that will open another door – it
would be allowable then to promote such instruments to
accredited investors. “We’ll see what the rules say before
we decide how to proceed,” he says.
The four Capital Forums that LICA runs each year cover
sectors deemed to have solid growth potential. Starting
with the most recent and indicating partner organizations,
its forums have covered the fields of Biotech, with Cold
Spring Harbor Laboratory, Health Care, with Stony Brook
University, Social Media, with Accelerate LI and Social
Media Association, Inc., Cyber Security, with LIFT and
LISTnet, and Technology Transfer, with Brookhaven
National Laboratory. On September 13, LICA will hold a
Consumer Products Capital Forum, and on December 13,
one for Manufacturing, with LIFT. A future Biotechnology
Capital Forum is in store, with the Feinstein Institute of
the North Shore Health System and Cold Spring Harbor
Laboratory as partners.
Each forum books up to six presenting companies seeking
capital, who are selected from a large pool of applicants.
LICA gives them a template for the presentation, provides
them with a coach, and rehearses them.“ Kaufman
notes that the companies find the process extremely helpful
in refining their business plan. Each presenting company then
gets eight minutes to make its case, followed by an expert panel
analyzing an issue common to many entrepreneurs seeking
capital. September’s Consumer Products (and Retail) Forum
reached its quota for investor-attendees long before the event.
“Presenters have active discussions with investors and deals
get done after each Forum,” Kaufman says. Applicants who
don’t get to present are referred to other LI organizations based
on their development stage and field.
A+ Technologies, an established and growing company which
presented at the Cyber Security Forum, was able to raise $12
million in capital. Long Island Fiber Exchange got funded and
later sold. Population Diagnostics received some funding.
Kaufman sees evidence that biotech companies have strong
expansion potential on Long Island.
Kaufman describes working with his legal practice’s clients to
build companies as “one of the most fun and rewarding things I
do.” He explains that with three decades of experience helping
to buy and sell businesses, and having learned how Wall Street,
financial markets and boardrooms work, it was natural for
him to want to give back by helping companies and research
institutions to grow on Long Island.
Back when hardly any LI law firms handled corporate and
securities matters, Kaufman took a chance on an opportunity
that opened, a choice that has enabled him to take on many
roles and still see his family. “After working at a big Wall Street
firm and living in Manhattan, I made a life choice with my wife to
live and work on Long Island, where we both grew up, to have a
backyard and put my kids to bed at night.” Kaufman’s daughter,
now in her mid-20s, is a teacher living in Chicago, and his son
will begin NYU Law School, Kaufman’s own alma mater, this fall.
“I made a life choice with my wife to live
and work on Long Island...”
Kaufman also serves as president of the LI Chapter of Financial
Executives Institute (FEI), is on the Corporate Advisory Board of
the DNA Learning Center at Cold Spring Harbor Laboratory, and
is on the Board of Advisors of LI Invest. FEI works to influence
federal regulatory policies, statutes and regulations that affect
capital formation. FEI brings together comptrollers, CFOs and
other financial executives to meet in private to discuss common
concerns and opportunities. A separate monthly meeting brings
in speakers and provides a forum for community interactions.
Neil Kaufman appears to relish wearing multiple hats to help
promote Long Island growth through business and capital
formation, and says, “I don’t think Long Island is as difficult as
people make it out to be.”
Mr. Kaufman is a partner and chairman of the Corporate
Department of the 55-lawyer firm Abrams Fensterman (Abrams,
Fensterman, Fensterman, Eisman, Formato, Ferrara & Einiger,
LLP). He represents early stage to mature public companies
and investment firms, with respect to corporate, securities,
financing, borrowing, merger & acquisition and other legal
matters covering the entire life cycle of companies. Contact him
at [email protected] or 516-368-9411.
11
NEW BUSINESS
LaunchPad Brings the Vibe of
Shark-Tank to Long Island as the
New Hub for Startups
by Vivian Leber
To help startups, Long Island has venerable small business advisory agencies, and several incubators, accelerators and co-working spaces.
LaunchPad is the first one-stop center to combine those elements under one roof and channel capital to nascent or early-stage companies. A
number of Long Island’s business and legal luminaries mentor LaunchPad clients, serve as board directors, and bankrolled the building’s spaces
and equipment. Stony Brook University and Hofstra Zarb School of Business provide speakers and advisors. All those involved are hopeful that the
venture will help to leverage Long Island’s technology assets to move the needle on jobs and boost its profile as a vibrant hub where entrepreneurial
zeal and brilliant innovations converge.
After the gut renovation of
an outwardly drab threestory building in Mineola,
next to the LIRR Train
Station, LaunchPad’s doors
opened in February with
sleek décor, meeting spaces
that invite collaboration,
and a games lounge. The
building’s features, functions
and walkable downtown
location won LaunchPad
and collaborator LISTnet
the Vision Long Island 2013
Smart Growth Award for
“Best Mix of Uses.”
partner, can write additional
checks for up to $2.5 million.
Together they helped to
capitalize the Hauppaugebased
GroupGifting.com,
which allows social media
friends to buy giftcards
for other friends. Digital
technology startups represent
60%
of
LaunchPad’s
commitments; another 40%
run the gamut.
12
At the well-attended monthly
Pitch-Night, five presenters
have minutes to showcase
their business plan and
answer a panel’s questions;
LaunchPad is a for-profit
Pitch-Night resulted in a tie-win between Joseph Triglia of Jubilee Flooring and
the audience then votes.
business that takes an June’s
Tonia Torrellas who invented It’s My Bag, shown with Richard Foster and Andrew Hazen
Winners get a month of office
investment stake in promising
companies which it also systematically nurtures; other companies as space, feedback from the co-working community, mentoring from
tenants gets some services without the stake. Simply cohabitating and Hazen and Foster, and second opportunity to pitch potential investors.
enjoying occasional free food with other keen minds is energizing for the
entrepreneurs, and visits to a Manhattan collaborator would take only “Early stage companies can get some money from crowd-funding, but
30 minutes by train. LaunchPad charges reasonable fees for co-working then what? Through LaunchPad they get the right advisors and back
space, private offices, conference rooms, and ancillary services. It holds office team,,” Foster says. Hazen adds, “Those who pitch us and don’t
meetups, a summer Accelerator camp, and a speaker series. LaunchPad get selected still get tremendous feedback. We throw questions at them
and LISTnet will co-present a new type of event for Long Island on that they never thought of. When we’re finished working with them,
December 11th-- LAUNCH YOUR STARS. Nominated companies, some even pivot and transform their business model.”
entrepreneurs and small business owners, who must be under age 35,
will get to present their transformational ideas or endeavors in competing Hazen and Foster have aspirations for LaunchPad’s next few years.
for 15 winners’ places and for the attention of investor groups.
A second site is set to open in Huntington Village (named LaunchPad
Huntington), in a collaboration with GroupGifting.com which is taking
LaunchPad co-founders Andrew Hazen and Richard Foster are veteran the space and will lead the effort. The founders also envision teaming
entrepreneurs and investors. Hazen, an attorney with Ruskin Moscou with more colleges, syndicating deals with other VC groups, and
Faltischek, built and then sold his Melville-based digital marketing agency growing their portfolio of investments and next-level enterprises. “We’d
and founded Angel Dough Ventures. Foster started his first company at also like to make deals with more women-owned companies.” Hazen
age 14 and now, at age 24, holds numerous patents and equity-partner says.
stakes. Hazen and Foster seeded LaunchPad with $250,000 with which
to make equity picks. The Long Island Angel Network (LIAN), a key Contact LaunchPad at [email protected], or 1-855-8-Launch,
and visit www.launchpadli.com.
JOIN THE CELEBRATION
18 years of Developing, Connecting and Engaging Community Leadership in the Town of Huntington
Leadership Huntington Foundation
Gala and Graduation of the Class of 2013
Wednesday, October 16, 2013, 6-10PM at The Huntington Country Club
Please join us in celebrating the Leadership Huntington Class of 2013
Nishi Behl - Courtney Bynoe - Helen Crosson - Luann Dallojacono - Lora Gellerstein
Ray Homburger - Ellen Mazzeo – Rose Molfetta – Paul Imbriale – Michael Lantier
Michael Raspantini – Michael Schoolman – Peter Tonna
and Honorees
Dianne Parker
Founders Award
Les Bluestone
Outstanding Community Trustee
Sara Bluestone
Graduate of Distinction
Announcing Keynote Speaker:
Donald Monti, Renaissance Downtowns
Tickets $125. Sponsorship and Journal Advertisement Opportunities Available.
Visit www.leadershiphuntington.org for registration.
Contact 516-921-4896 or [email protected] for more information.
Economic
Engines
The Chamber of Commerce
Operating a business of any size comes with a mix of challenges and is a tall order for even the most seasoned, most
savvy professionals. Fortunately, there are organizations that businesses can turn to for help, whether they’re a startup,
existing business looking to grow or well-established concern vying for market leader distinction.
Lynchpins for economic and community development, our Chambers of Commerce help businesses advance their
mission while driving forward the collective interests of their members. Throughout history, they have served as a vital
force in advancing economic and community development. Surprisingly, many were formed even before the formation of
the jurisdictions they represent. Largely self-funded, with a handful of paid staff and
groups of volunteers, they enact significant, often-needed
community reform. Catalysts for economic development,
they play a significant role in promoting our communities as
vibrant places to live, work, invest and transact commerce.
More than 100 operate across Nassau and Suffolk,
affording members a mix of important services, programs
and networking opportunities. Let’s take a look at what
three right in our own backyard are up to.
Melville
The Melville Chamber had its roots with humble beginnings
etched on a napkin at
the Sweet Hollow Diner
when Mike DeLuise and
a local real estate leader
brainstormed ways to resolve
a major issue along the 110
Corridor: Business was being
adversely impacted by traffic
congestion. DeLuise recalls
the timeframe as 2002. He
was reaching out to all the big
guns he knew for help.
“I called local, county and
state offices. I called the
LIA and every chamber
and business organization in the region. No organization
was interested in our mission.” The mission was to ease
commuter congestion at the intersection of Route 110
and the Northern State Parkway. “At the time, creating
a business organization was the furthest thing from our
minds.”
14
With continued futile attempts to engage support from
others, he and a small group of like-minded cohorts took
matters into their own hands. “We contacted the State
and found there were no business organizations focused
on serving the 110 Corridor and applied to become a
Chamber.”
As its President for over a decade, Deluise has achieved
some major milestones. “You can blame or praise us for
the current construction aimed at traffic easing along the
Corridor. Our initial suggestions and ongoing requests
were fast-tracked with government support and the arrival
of Canon’s move to our neighborhood.”
Other missions he’s tackling include calling for the
resurrection of the LIRR station at Republic Airport,
teaming with the County (Suffolk), State and Town
(Babylon) to explore a Rapid Bus Rapid Transit System for
a north/south route on the Corridor and other high-traffic
routes and promoting economic and business development
throughout the area. “We are most proud that as a volunteer
organization, we never focus on ‘getting the credit.’ Sharing
our success and efforts with the community is what we are
all about.”
Huntington Township
Since its formation 85 years ago, the Huntington
Township Chamber has served members by advancing
government advocacy initiatives, offering networking
opportunities,
community
development programs, public
policy activism and educational
programs.
One
distinctive
benefit of membership in the
Chamber is afforded through
its partnership with Adelphi
University: Members can take
courses leading to the fulfillment
of an MBA Degree at its office in
Huntington. The unique program
enables members to advance
their careers while developing a
strong interconnectedness with
other area executives.
Long Island’s Film Window on the World!
The Chamber announced several new initiatives at
its recent annual network meeting. Among them: a
new upgraded website, 2014 Gala Event, memberto-member discounts and “Hot Deal Advertising”
opportunities. Late incoming Chairman, Larry Kushnick
said in his State of the Chamber Address on May 26th
“We’ve accomplished so much within the past few years.
These accomplishments provide a great platform to
launch even more initiatives to support local companies
and businesses within the Huntington Township so they
can continue to stimulate business, drive innovation, and
support our community. By supporting local business on
a grassroots level, we can build a strong foundation for
our members to thrive and grow.”
Three current board members, Robert Bontempi, James
Kelly and Bob Scheiner, are stepping up to fill Kushnick
shoes, “With the full agenda Larry put forward, we feel
that between the two past Chairmen and one ChairmanElect, we can divide the responsibilities and the three of
us together can achieve the job that the one Chairman
would have.” Larry’s were big shoes to fill and he will be
sorely missed.
Hicksville
The Hicksville Chamber of Commerce was born in 1926
and has experienced a more than two hundred percent
increase in membership
over the last five years
since current president
Lionell Chitty arrived at
its helm. With a full time
staff of half a person, the
Chamber is a powerhouse
of community activity..
423 Park Avenue, Huntington, NY • 631-423-7610
• Celebrating 40 Years in Huntington •
Now featuring 2K Digital Projection!!!
Presenting the best in International
and Independent movies,
Classic Revivals, Documentaries,
Filmmakers and Stars In Person,
Silent Movies with Live Music,
Cult Movies, LGBT Films, and more!
Enjoy our
Cafe Garden!
Visit www.cinemaartscentre.org
to join our mailing list, and see our program schedule
The Chamber sponsors
numerous events and
programs to continuously
improve the quality of
life residents and area
employees and is a
staple of progress in both
Hicksville and outlying
towns.
Chitty urges
members to take a look around and ask themselves
“What the Chamber can do for them?” He observes
the expansive reach of the Chamber to points east and
west with members extending into Queens, Jericho and
further out into Suffolk.
A key focal point of the Chamber is a revitalization initiative
to increase business and commerce in downtown
Hicksville. A cooperative venture with advocate and
partner Vision Long Island, the program is focused on
bringing new business into the area. The Chamber’s
annual roster of events includes a Summer Street Fair,
Golf Outing, Workshop Series and networking events.
Members can participate in the Chamber’s Health Plan,
banner ads, Web Banner Ads, email blasts, business to
business mailers, print advertising discounts and other
major benefits and perks.
15
Biz.org
Business Organizations Who Needs Them?
It can be very difficult for small business owners, who spends
most of their time tending the business, to engage in anything
else. Advice and “presence” can be expensive and not a
budget line-item. Some of the entrepreneur’s needs can be
met by chambers of commerce, networking or professional
organizations, all of which occasionally overlap. The Business
Organization has a different role.
Membership organizations offer perks, services, events,
mentoring, education, networking and more. The cost is
marginal considering the opportunities they provide. It requires
an investment of your very hard earned dollars. We’ve chosen
three of what we consider the most cost-effective, involved
and dynamic business associations on Long Island. They
feature charismatic leaders, solid programs, great events and
a hands-on approach to the support of your small business.
LIASB also maintains the lowest starting annual membership
dues and the most educational and free resources, ROI on
Long Island. Perhaps most impressively 100% of membership
funds are re-invested in programs and resources for small
business membership. There are no high salaries, no
overhead and LIASB is 100% volunteer-driven.
Students: FREE
Associate-Start-Up (less than 2 years in business): $99/year
Regular: (1-9 employees) $199/year
Corporate: $750/year
Our first choice is The Hauppauge Industrial Association, the
largest industrial association in the North East. Extremely
efficient, very cost effective, with numerous affordable
events through the year, and a very successful annual trade
show. The HIA shares a working knowledge of how small
businesses should be run, with the tools at the ready to run
it with. Membership fees are scaled to the business’s sales:
LIMBA, Long Island Metro Business Action, led by Ernie
Fazio. LIMBA’s fees are a little higher, but offer the small
business owner the same access to high profile business
celebrities that the larger organizations do, in a more intimate
setting. Instead of watching the star over a thousand heads
at lunch, you are likely to be seated within a table or two.
Guests and members alike are permitted to participate.
$475 for Companies with 200+ employees
$400 for Companies with under 200 employees
$200 for Not-For-Profit Companies
$100 for Young Entrepreneur’s under the age of 40 and in
business for 5 years or less.
Individual $170
Not-for-Profit $300
Small Company Sponsor Member $400
Sponsor Corporate $850
There is no doubt that as an entrepreneur, you need a
business organization to watch your back. If you can belong
to two or three, you become part of a whirlwind of connections,
comrades, networking, events and education. When you
combine these memberships with a professional organization
and a chamber of commerce, your business should evolve
rapidly.
LIASB, the Long Island Advancement of Small Business led
by Mr. John Hill, Author and Trade Show guru, is our second
choice. Founded in 2009 by Mr. Hill to meet professional
needs that he felt the larger associations could not, the LIASB
is currently the only Not-for-Profit business association
dedicated 100% to Small Business. Which means they do
16
not have a large, corporate connection and they will not seek
one in the future.
Abrams Fensterman is one of the largest full service law firms based on Long Island. We
solve our
client
with
sound
counsel,
innovative
solve
ourclient’s
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problembybyproviding
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area from offices in Long Island, New York City, Brooklyn, and serve upstate New York
from our Rochester office.
The firm is a leader in representing health care providers in all aspects of health care
law, including hospitals, nursing homes, physicians, medical societies, dentists,
podiatrists and chiropractors. We also have practices which are widely recognized as
leaders in their fields in areas such as corporate and securities, mergers and
acquisitions, matrimonial and family law, and mental health law.
We also have active practice areas in commercial litigation, estate planning and
administration, guardianships, employment law, real estate, elder law, personal injury
litigation, white-collar criminal defense, and land use planning.
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Criminal Law
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Elder Law
Employment
EmploymentLaw
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Nursing Homes
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Rochester- 160 Linden Oaks, Suite E, Rochester NY 14625 – (585) 218-9999
Visit us on the web at www.abramslaw.com
17
Teaming Up for Success
Third article in a series about LIFT, whose mission is to commercialize and gain
market access for LI’s manufacturing technology companies.
by Vivian Leber
Opportunity came calling when the Federal Small Business
Administration created the Small Business Pilot Teaming
Project. LIFT was one of only 11 economic development
organizations nationwide to win the demonstration project,
and has received, to date, a grant award of $700,000. Now
ending its second year, the project is paired with LIFT’s
RAIL Alliance. Rail and surface transportation is a behemoth
market; moreover, the
region’s MTA accounts
for an estimated 40%
of all US rail spending.
Long Island technology
and manufacturing firms
stand in the sweet spot
given their competencies
and location, where even
a slightly larger piece of
that market could produce
large returns.
LIFT counted 80 Long
Island companies that
were already supplying
the rail market with
controllers,
switches,
communications, lighting,
and other components
and services. The thinking
was, couldn’t other LI
small
manufacturers
also diversify into surface
transit?
LIFT and its branch organization, The RAILS Alliance, hosted a workshop in June
introducing the Small Business Pilot Teaming Project to business owners considering
participation. Representatives of the consulting firms Logistics Specialties and BidSpeed
join LIFT staff: (1st from Left) Lois Greaux, (3rd) Terry Culhane, (4th) Diane Muscarella,
(6th) Kenneth Bauer.
RAIL Alliance Chairman Kenneth Bauer says, “I am blown
away by the talent and product we have among our NYS
aerospace and technology companies. We know they have
the capability to diversify into transit.”
In a survey, manufacturing and technology companies were
asked how they would wish to expand “if only we had abc”
and “if only we could compete in the xyz market.” The Pilot
Teaming Project seeks to fill in some of the missing pieces by
connecting small businesses with complementary skills and
capacities to jointly bid for contracts that neither might win
alone. As partners, they would have better access to bonding
and insurance. Teaming also reduces overhead, mitigates
18
risk to each party, and allows more efficient bid pricing.
Federal procurement processes have gained complexity
with the JOBS ACT of 2012. For example, stricter guidelines
now apply in meeting minority- and women-owned business
targets (MWBE) Teaming helps to fill gaps for the bidder and
its subcontractors.
One teaming success
story is that of Matrix
Railway Corp., a firm
located in West Babylon
that engineers and
designs LED lighting
and other subsystems
for railcars. A North
Carolina producer of
customized
buses
wanted to bid for
public
sector
bus
contracts. Lacking the
requisite engineers and
designers on its own
staff, it approached
LIFT. Through teaming,
Matrix has adapted
to this new market,
generated
new
revenues and avoided
staff cutbacks.
Another Long Island
teaming pair formed by the RAIL Alliance, VCORE Solutions
LLC and Intralogic Solutions, a Massapequa-based firm,
recently started work on a contract integrating their software
for use in the LIRR’s new Incident Command Center.
VCORE is a growing company that was incubated by LIFT
and remains its tenant in the Morrelly Center for Homeland
Security, in Bethpage. Intralogic teamed again with two other
LI small businesses, the woman-owned KND Electric and
the minority-owned Big Ant Electric, to develop, install and
maintain a security fire/alarm system for LIRR stations.
Small businesses may overlook requests-for-proposals (RFPs)
using their customary parameters for search, but the teaming
concept allows them to broaden their scope and raise their
sights. LIFT Executive Director Bill Wahlig explains that the
LIFT staff scours the procurement websites each week
for suitable RFPs, identifies prospective contractors,
makes matches, mentors the clients, and develops
supply chains. “Our goal is to build an opportunity
pipeline for LI and NYS partners to expand in the federal
and private transportation and related security markets,”
Wahlig says.
LIFT and The Rail Alliance have partnered with two
consultancies: Logistics Specialties, Inc., to help firms
interpret opaque RFPs and to shepherd them through the
daunting federal procurement process; and BidSpeed,
to help firms mine federal contracting databases using
its proprietary search engine. Under the Pilot Program,
LIFT held a seminar and a webinar series to brief LI
companies on how to use these resources at no cost
for a trial period. LSI’s past “win rate” has been an
astonishing 85% for federal contracts that it helped its
clients to procure.
Thus far about 75 companies have registered by
uploading their profiles to both the databases of
RAILSUSA.org and the BidSpeed. As more companies,
both on Long Island and in NYS, populate the sites,
not only LIFT staff but the site tools themselves will
systematically identify best matches of paired companies
that should respond to RFPs for larger contracts.
Meanwhile LIFT has been meeting with other
manufacturing and economic development agencies
around NYS so that they in turn will champion the project.
“The more in the system, the more good matches. We
are getting commitments.” Bauer remarks. “Our vision
is to have one database for businesses producing rail,
surface transit and security products that the primes will
come to rely on for their supply chain.”
Regrettably, due to the federal budget constraints now in
effect, funding for the program’s third year, which begins
this October, will not be forthcoming from the U.S. Small
Business Administration, according to Wahlig. “We are
exploring alternative paths for funding support from New
York State agencies and from the companies themselves
which benefit from this program,” he says. “Fortunately,
we can count many friends of The RAIL Alliance who see
the value of the Teaming concept, who have watched it
bear fruit this past year. We are committed to sustaining
that progress.”
Transportation, security, emergency management, big
data management− according to LIFT President Frank
Otto, these are all linked dynamic markets where LI
businesses are strong. The Teaming concept should
be in theory applicable and expandable across the
spectrum of manufacturing, technology and service
businesses.
For further information about the Teaming Project contact: LIFT
Rails: 631-846-2730 or [email protected], For general
information contact: [email protected] or 631-969-3700. Visit http://
www.lift.org and http://www.RailsUSA.org. LIFT’s upcoming
events include “Manufacturing Day” –an Open House showcase,
on October 4th.
Private Sector Sales
Approach to Retaining &
Growing Business
By Anthony Manetta
No business can survive with the premise “They know where to find us”. If
you are not marketing your goods or services to gain clients or customers,
then you will be sure not to succeed. Whether you are a manufacturer, a
start-up software company, a retail store or a main street business, selling
your brand vis-à-vis unique selling points is important.
Suffolk County has unique selling points which makes us one of the most
desirable areas in the Country to both work and live. We certainly have
our challenges too including high property taxes and high energy costs.
The combination of a talented workforce, quick access to New York City,
our educational systems and regional innovation however, is what roots
our businesses here. Government plays a critical role in fostering a probusiness environment, if government is pro-active in its approach and if
they can provide the tools for business owners to grow locally. If not, then
government malaise can actually fuel a negative business environment.
The Suffolk County IDA has turned the page in its approach to change the
business climate for the better.
County Executive Steve Bellone came into office with economic development
a priority of his administration. He brought on two private sector individuals
to lead the way; Joanne Minieri and myself, Anthony Manetta. The County
has become more proactive in the way it communicates its message to
our area companies through innovative programs, events, marketing and
highlighting many success stories.
Growing our small businesses into larger employers is one of the new
focuses at the IDA. This is accomplished by our Boost Program which
creates cost-effective means for companies in information technology, life
and bio sciences, green and energy to build their companies here. Ideal for
early stage and start-up’s the program provides property tax incentives and
sales tax exemptions on the setting up of new space.
Building off the Boost program the IDA will hold a series of events to
showcase area start-ups and new product development through its “Startup Connect” initiative. The first event was held in April of 2013 that brought
together 300 entrepreneurs, their employees, investors and public officials
at the Paramount in Huntington Village to build relationships and gain
insight into the emerging tech community on the Island.
Aggressively communicating our economic development programs gained
traction by the IDA approving dozens of deals over the past year. The agency
has retained and created thousands of jobs in the County. The companies
we work with are across industries from manufacturers, tech companies,
pharmaceuticals, fabricators, bio-sciences and green companies. They
range in size from 10 employees to 1500 employees.
One of the key elements of the IDA is the assistance we provide businesses
on an array of issues. It is our new policy to ensure that companies maximize
all benefits that are available to them, as well as facilitate any matters they
may have within County Government. This new hands on approach allows
business owners to gain entry into programs across government and within
trade associations.
The IDA has become part of the business community working with small
and large companies to retain and grow our jobs and build confidence in
our local economy.
19
Affordable Healthcare Act:
What Long Island Businesses Need to Know
Walter Oden
Here at the U.S.
credits to provide
Small Business
insurance to two
Administration,
million employees.
we know that
SBA is continuing
health
care
to work with our
remains a top
federal partners,
concern
for
c o m m u n i t y
Long Island Branch Manager, U.S. Small Business Administration
small business
organizations,
owners across the country, and I want you to know that trade groups, and resource partners across the country
the Affordable Healthcare Act takes significant steps to help small businesses understand how they can
to make healthcare coverage more accessible and best benefit from the ACA. We’ve trained more than
affordable. Currently small businesses pay as much 2,200 members of our field staff, federal staff from other
as 18 percent more than their larger competitors for the agencies, and our SBA resource partners to be help to
same coverage, and many employers who may want to inform their small business communities on what’s in
provide coverage to their employees often can’t afford to. store next.
There are two critical ways that the ACA will help small
businesses: by increasing access and by offering
affordable options.
The law provides access to
better health care options for both the employer and
employees. Additionally, the law will lower the growth of
premium costs and provides a number of key benefits for
small businesses. These benefits include tax credits, as
well as the opportunity for small businesses to leverage
their buying power with other small businesses in the
new Small Business Health Options Program (SHOP)
Marketplace, also commonly known as the Exchange.
The ACA will also make sure that insurance companies
are spending at least 80 percent of consumer premiums
on actual medical care, and not salaries or administrative
costs.
You may not know that the ACA is already helping small
businesses today, and that there are 360,000 small
businesses that have already taken advantage of tax
20
Starting January 2014, coverage through the competitive
health insurance marketplaces for individuals and
small businesses will be in place, with open enrollment
beginning October 1, 2013. The new employer shared
responsibility rules will take effect in 2015, and the
majority of small businesses will not be affected. In
fact, businesses with fewer than 50 full-time or full-time
equivalent employees are not subject to these rules, and
that’s 96 percent of our businesses. For those businesses
with 50 or more employees, the majority already provide
coverage that meets the health care law requirements.
As these dates approach, be sure that you have all the
information and resources available to you to understand
how the ACA will affect your business. As with any
business decision, we encourage small business owners
to learn the facts and consult their tax legal advisors
when making a decision about what works best for their
business.
Where’s The Money?
Roslyn Goldmacher, CEO - Long Island Development Corporation
Small businesses need money. That’s a fact of doing business.
Typically, when a small business has a financial need, it heads to its
bank of account. There are times, however, when the bank cannot say
yes in a manner that fits the needs of the business. Banks have a difficult
time in lending to start ups, undercapitalized businesses,
struggling businesses or certain industries. The good
news is that there are alternatives to conventional (bank)
funds. Following are some of the financing resources
available to small businesses on Long Island:
Venture Capital Venture capital can be in the form of equity
and/or debt. It is available for startups and for existing
companies in growth mode. The LI Angel Network, a
group of local investors providing equity and debt financing
to entrepreneurs- www.liangels.net. Other sources of
venture capital: US Small Business Administration Small
Business Investment Companies- debt & equity capital for
high growth companies- www.sba.gov/sbic; US Small
Business Administration SBIR- competitive program
providing grants for r&d, prototype creation, etc.- www.
sba.gov/content/small-business-innovative-researchprogram-sbir; LI Capital Alliance- capital forums to showcase products/
services to potential investors-www.licapital.org; Tri State PIN-matches
startup and early stage companies to financing- www.angelinvetorfunding.
com; NYS Venture Capital Funds through intermediaries
–www.topspinpartners.com; www.canrockventures.com.
financing and tax abatements-contact your local IDA or see list in www.
lidc.org/LI resources; NYS Minority & Women Business Development
Loan Program-up to $500,000 for women/minority owned companiessee www.esd.ny.gov.
Micro Loans Micro loans typically go up to $50,000 but
there are varying levels depending on the lender. Active
micro lenders on LI are: SBA Micro Loan Programup to $50,000, one year in business minimum- see
www.cdcli.org; LI Small Business Assistance Corp.up to $10,000- start up or existing- see.www.lisbac.
org; La Fuerza Unida CDC-up to $35,000-start
up or existing- see www.lafuerzacdc.org;Accionup to $50,000- 6 months in business or moresee www.accionusa.org;
NYBDC credit card up to $25,000 - see
www.nybdc.com; Hempstead Town RLF- up to $10,000 www.townofhempstead.org.
Geographically Targeted Programs HUD 108/CDBG
covers grants and loans for façade improvements in
certain communities-contact the community development agency in
your area or see www.lidc.org/li resources for info.
Another type if venture capital is found in Cloud Funding- cloud
based or crowd funding-online platforms to raise capital from
multiple investors such as www.kickstarters.com, www.gust.com,
www.angeldoughventures.com.
Other Funding Sources Financing for your business doesn’t just come
from investor equity or loans. It may come in the form of abatements/
incentives/free or subsidized services. Reach out to your utility to see if
you are eligible for free energy audits, abatements or other incentives for
your business or community. The federal and state departments of labor
have programs designed to help employers hire and train employees
with free or subsidized incentives. Local colleges and other institutions
have entrepreneurial training programs which may be free or low cost
to help small business owners start and improve their businesses.
Service Corps of Retired Executives (SCORE) provides business
mentors and seminars to help businesses- see www.scorelongisland.
org. Small Business Development Centers (SBDC) provide business plan
help and other services for businesses- www.farmingdale.edu/sbdc;
www.stonybroook.edu/sbdc.
Working Capital Working capital loans can be used for any business
purpose. Popular sources of working capital include: SBA 7A Loanslong term loans up to $5 mil from banks and nonbank lenders licensed
by US Small Business Administration. For a director of SBA lenders,
see www.sba.gov; LI Targeted Industry Rlf-sponsored by NYS and US
Dept. Commerce, long term fixed rate loans up to $500,000 for eligible
industries- see www.lidc.org; Business Growth Fund- up to $100,000
– see www.cdcli.org; Credit for Success Loans- up to $150,000- see
www.nybdc.com; SEEDCO Financial-up to $750,000- see www.seedco.
org; Ex-Im Bank-Global Credit Express- up to $500,000 for exporterssee www.exim.gov.
The first step in accessing funding for your business is to have a good
business plan. Talk with your accountant, lawyer, financial advisor or
resources such as SCORE/SBDC and make sure you have documented
the information needed by an investor or lender. Next, decide how much
money you need, for what purposes and devise a plan for repaying it if
you are looking for a loan. Then, talk to your bank of account to see if
they have a product in house or a suggestion for financing. Look to your
chamber of commerce, trade association and professional association
for resource links and suggestions. Finally, review the sources of funding
listed above. The most important thing is to approach the right investor or
lender for your business need.
Capital Asset Loans Such loans are for capital assets such as building
purchases, renovations, machinery & equipment. SBA 504- fixed rate
long term second mortgage loans up to $5.5 mil- see www.nybdc.
com/504; NY Job Development Authority-fixed/variable rate long term
subordinate loans up to $2.5 mil- see www.esd.ny.gov/jda direct
loan program; Industrial Development Agencies- taxable & tax exempt
Roslyn D. Goldmacher, Esq. is President/CEO of the Long Island
Development Corporation- a 35 year old non profit economic
development organization providing low cost loans, free seminars and
technical assistance to LI small businesses and not for profits. See
www.lidc.org or contact her at [email protected].
A type of venture capital is Seed Capital- money to help start a business
or start a new division may be accessed from Accelerate LI Seed Fund/
LI Emerging Technology Fund-www.accelerateli.org/funding; the New
York Investment Network-www.newyorkinvestmentnetwork.com; local
sources that provide seed capital and support services such as Launch
Pad-www.launchpadli.com.
21
Is a Mega-Million$/World-Changing Clean
Energy Technology Incubating here,
at Stony Brook U?
Clean Energy Technologies Shape Up as
Businesses Primed for National Markets
by Vivian Leber
The best of the best clean energy technologies that
germinate in a university laboratory or in the mind of an
entrepreneur on Long Island are finding their way to the
Clean Energy Business Incubator Program (CEBIP),
established in October 2011 with funding from the
state agency NYSERDA. According to CEBIP Director
of Business Development David C. Hamilton, “Our
task is to work with clean energy companies that have
disruptive, transformative, high-impact but early-stage
technologies that, given the right attention, will produce
economic growth and highly skilled jobs for Long Island
—especially those in manufacturing.”
David Hamilton, CEBIP’s Director
Young ventures at the pre-seed stage, many with just
one or two individuals who may have partly proven their
technology’s feasibility in a lab, receive CEBIP’s intensive
resources and services to help them map their pathway
to commercialization and financing. CEBIP operates
out of Stony Brook University’s Advanced Energy
Research & Technology Center. Hamilton needs only his
notebook computer, cellphone, a cubicle, and use of a
meeting rooms to bring to the incubator’s 13 start-ups
(at present) all the powerful resources of Stony Brook
University and the Brookhaven National Laboratory,
the counsel of CEBIPs eminent advisory board and
partners, and effective mentoring programs. Four clients
are physically working in three of the University’s four
incubator buildings, others receive services wherever
domiciled on the Island. Long Island’s first and largest
incubator, the LI High Technology Incubator at Stony
Brook, oversees CEBIP’s funding and operations, and
22
both are part of the SBU Economic Development effort
supervised by Dr. Yacov Shamash.
“The Advisory Board meets monthly with our clients
to give them ‘tough love’,“ says Hamilton. It helps the
businesses decide how and when to enter the market,
and helps them build and ready their team. “The quality
of the team is as critical as the technology,” he says.
CEBIP vets and prepares the client companies so that
funders (it works mostly with and the Long Island Angel
Network and Accelerate Long Island) see a concise
business plan presented to demonstrate the company’s
readiness for commercial development. Thus far, results
have been impressive.
One client, Green Sulfcrete, is now a semifinalist in a
prestigious contest, the Northeast Clean Tech Open.
Green Sulfcrete and its CEO Bill Biamonte joined
CEBIP last winter, bringing a process licensed to it by
Brookhaven National Laboratory. The disruptive concept
is to process sulfur, a fossil fuel waste byproduct, to
make a more durable form of concrete, one which does
not require any water and consumes far less electricity in
its manufacture. CEBIP is helping it decide how to scale
up; one option may be to first build a test plant on Long
Island, and then license the product to other existing
production facilities. Creating manufacturing jobs on LI is
a key strategic goal of CEBIP, but hybrid solutions often
are necessary given the prohibitive capital costs to build
new facilities, according to Hamilton.
ThermoLift, Inc. and WATT Fuel Cell are the two most
mature of CEBIP’s clients. In August, ThermoLift was
awarded a competitive grant of $750,000 from the U.S.
Department of Energy.
ThermoLift and its founder and CEO Paul Schwartz, a
Long Island native, joined CEBIP in April 2012. Schwartz
went from having a one-man plan to amassing $1.63
million in May this year through equity financing from
the Long Island Angel Network and Topspin Partners,
another LI-based investment firm. The immediate goal
is to finalize the prototype, with help from Stony Brook
University’s Mechanical Engineering Department.
ThermoLift’s energy-efficient air conditioner and heat
pump uses the chemical energy in natural gas and the
heat in the surrounding environment to power a
single efficient central system--without electricity-that would replace a typical homeowner’s HVAC and
hot water units. If the ThermoLift product were to be
widely used, summertime electric load would drop
steeply, cheaper NG would save consumers money,
and the national market potential would be limitless.
A commercially viable product will be ready in 2014;
production would start in 2015, Hamilton predicts.
Hamilton calls WATT Fuel Cell ‘a rock star.’ The
company has developed a compact, cost-effective
solid oxide fuel cell (SOFC) product that operates
cleanly and quietly on readily available fuels such as
natural gas and propane. Initial commercial products
are destined for the marine and recreational (RV)
markets, and, starting in 2014, the technology will
be incorporated into the products of Parker Hannifin
Corporation. WATT also has an eye on military
applications. Its office and manufacturing facility is
located in Port Washington, where president and
CEO Dr. Caine Finnerty leads the WATT team.
CEBIP has helped WATT secure financial benefits
from LIPA that reduce its operational costs and
is working with the company to identify contract
manufacturers and partners within New York State.
Jubilee Flooring, a CEBIP client for two years,
and its founder Joseph Triglia, will move into the
AERTC building this fall. The company’s patented
microwave technology dries and straightens lumber
used in flooring and cabinetry, but requires only a
fraction of the time and energy needed by machines
currently in use. Jubilee has won private placements
and is in talks with CEBIP’s capital partners for more
funding that would allow it to scale up.
COAWAY LLC, led by George Hendry, offers a
system that captures from the air large quantities
CEBIP clients take part in SBU’s Innovation Boot Camp.
CEBIP clients participate in a Stony Brook University program
for entrepreneurs
of CO2, a greenhouse gas, and cleanly redeploys it for
industrial applications. Solar Cool Technologies (profiled
in the CORRIDOR’s last issue) employs a solar-powered
refrigeration technology, which CEO Ryan McCann is
working to commercialize for large-scale commercial
refrigeration, for medical and disaster needs, and as a
portable cooler for consumer use.
CEBIP’s Advisory Board includes Kevin Law, Long
Island Association President, attorneys, technology
and business experts, Stony Brook and Brookhaven
National Lab department chiefs and professors, and
other arms of Stony Brook’s economic development
enterprise. Hamilton notes that Stony Brook University
is commercialization-friendly. Inside the incubator, while
Stony Brook or BNL professors and the laboratories
are providing it with valuable services, a venture’s
intellectual property is retained and owned by the client.
Another benefit of joining an incubator, even for
companies that do not encamp, is the opportunity to
mingle and develop a common culture. With that intent,
Hamilton announces, in the coming months a 1,000
square foot shared co-working space will open at the
nearby LI High Technology Incubator, with rented desk
space made available to nascent CEBIP clients. Other
enrichments enjoyed by clients include the annual threeday SBU-hosted Long Island Innovation Boot Camp
(where the majority of participants have been CEBIP
clients), and the Entrepreneur in Residence program,
which pairs clients with successful business owners and
executives who serve as mentors. Additionally, students
from Dr. Gerrit Wolf’s MBA entrepreneurship program
at the University provide consulting services free of
charge, in particular helping some clients to develop
their marketing plans.
Taking stock of changes over the past three to five
years in the world’s aspirations regarding clean energy,
Hamilton views solar technologies as having improved
“by leaps and bounds, operationally and in cost,” and also
sees progress in load management and conservation.
CEBIP’s clients are indicative of the progress yet to
come in improved technologies for alternative and fossil
fuels. “Good commercial products are here now, they
just need to keep getting better,” he says.
For further information, visit www.cebip.org; contact
David Hamilton at [email protected].
23
24
Karin Caro, Up Close and Personal
Once
In a
Blu
Chip
Moon
By Barbara Kent
Karin Caro, wildly successful by any standard, is owner of and partner, with her husband, AJ Caro, of nine
independent, stand-alone businesses based on Long Island, several of which have a national reach: Knight
Security, Central Insurance Agency, Community Care Companions, Bridge Business & Property Brokers,
Arrow Security, Strategic Healthcare Staffing, Blu Chip Marketing, Blu Chip SEO and Daily Blu, in addition to
CharitaBlu, a non-profit organization that utilizes the resources of Blu Chip marketing techniques to increase
the efficiency and presence of non-profit organizations.
Several years shy of 40, Karin Caro stands on the massive construction site of what will be the new home
for some of these independent small businesses. How did she get here, from a very humble background
compromised by homelessness, which forced her to live in her car at age 17?
25
“I came from a family that I don’t think was very
motivated, determined or entrepreneurial. In spite of
that I felt deep inside that I wanted to do great things
to help people -- that was clear to me at a very early
age. I once asked my mom “How come we don’t have
our own business? How come we don’t do volunteer
work?” Her answer was curt, as she explained that she
didn’t want liability issues to deal with. Karin continued
dreaming of someday owning a business and helping
others.
It is however, one thing to have the desire to DO
something and another to actually accomplish it.
“The first business I was involved in was probably
ballroom dancing. My mom and dad enrolled me in
dance school at a very early age and by nine I learned
ballroom dancing. I was always “the boy” because I
was really tall. It really annoyed me, but after leaving
home at 17 years old, the education of “being the boy”
was critical to my development. I immediately got a
job at Arthur Murray, and was able to make a lot of
money.”
A shy teen-ager, Karin was “discovered” by her
Centereach High School Principal, Martin Bedowski,
who saw something inside her that she didn’t
realize existed, and asked her to “Do the morning
announcements and spread your charm!” She did the
morning announcements for three years and loved
it. Aware of her family situation, Principal Bedowski
encouraged her to apply for a college scholarship.
“If I hadn’t won that scholarship,” Karin said, “I think I
would have pursued the dance career because I was
good at it. I was good at “being the boy”, I was good
at teaching it and I was good at relating to people. I
was one of the top three worldwide at selling dance
programs. It helped put me through college along with
the scholarship that Mr. Bedowski helped me obtain.”
It was a television commercial by the notorious
Carleton Sheets, author of the “No Down Payment”
home study course, that struck a chord in Karin, which
propelled her into her first entrepreneurial move. “I
sat up nights thinking about how I could make a lot of
money fast. Here I was on my own with bills at 19 years
old. I enjoyed the dancing but I knew that I wanted to
own a business. One night I saw a commercial on TV.
It was for a $150.00 program that taught how to buy
a house with no money down, and how to purchase
foreclosures. The author promised that anyone could
make money if they followed his instructions. I needed
a house and I needed money so this made perfect
sense to me. I followed his method and at the age
of 19 bought my first house. It was a foreclosure at
auction, and I had to go to the auction to fight for it!
The bidding started at $37,000 and I won it at $72,000!
I wasn’t going to lose it! I wanted this house! I was
in love with it! It was a little cape in Centereach, and
I’m really fortunate because that put me in a home,
26
made me feel secure and proud, and eventually I made
a great deal of money from that house. There’s nothing
as empowering as going to Home Depot and doing
tile and learning how to spackle a wall. There’s a great
feeling and a sense of pride…”
At age 19 she was not old enough to drink and still
was a student. Coming from a tumultuous childhood,
she chose to declare her major and earn her degree in
child psychology. “I wanted to help kids who came from
precarious or abusive situations. Unfortunately I found
it very hard to work in that field, dealing with people
who reminded me where of where I came from.” This
was the foundation for her eventual creation of “Tikkun
Mentoring,” a program to assist low level offenders
get back on their feet and break the cycle of violence.
This is accomplished by matching the individual with
a mentor who will help, guide and even go to court in
support of the offender.
Karin. “He’d come home at night and say “I started
a cleaning company!”… “I started a construction
company!” Karin was used to the spotlight, but took
a backseat and devoted herself to her young family.
“While the children napped,” she said, “I’d make sales
calls for the new companies.”
AJ, the ultimate entrepreneur, leapt up the ladder of
success. He was among the first on Long Island to
purchase a fleet of environmentally friendly vehicles and
won the LIBN’s 40 under 40 award. It is no surprise
that the concept of “Blu Chip Marketing” was his. He
suggested to Karin that since she did so well marketing
their many businesses, that she should try marketing for
other companies as well. Karin realized in a flash that
he was right. He knew she was serious, he knew she
was smart and he knew she was capable. He knew she
was blue chip stock all the way. Today, Karin owns The
Daily Blu and Blu Chip marketing.
Karin overcame her childhood and
was still teaching at Arthur Murray
when on July 7, 1997, at 7:30 pm
a man danced into her life who
was destined to partner with her,
although not exactly in the way
she thought. He wanted to learn to
dance and Karin sold him a program.
He said to her “…I’ll learn to dance
but it won’t be with anyone but you.”
“I didn’t see any love interest at all”
said Karin, but after working with
him for a while, I thought he’d be a
good business partner-- so I asked
him if he wanted to buy houses. He
said “yes” right away and I thought
this is a man I can invest with!”
“I didn’t have romantic feelings
for him at first, but I knew I wanted
to partner with him so we looked
at foreclosures and bought a few
together. Then came the whirlwind.
He swept me off my feet. We met in
July 1997 and married in May 1998. Then we had four
kids, one year after another. I had all my kids before I
was 25 and before he was 30.”
Marriage and almost-instant parenthood changed the
young couple’s life dramatically. With a wife and four
children to support, AJ rapidly advanced and expanded
his own business interests. Unlike Karin who was
homeless at 17, Caro, at that age controlled the largest
transportation company on Long Island, with more than
100 employees. At age twenty-three, he purchased the
struggling Arrow Security and built it into one of the
most recognized global brands in the industry. “I didn’t
realize what he had in him, what he was capable of,
until we bought a number of businesses together,” said
We asked Karin where she sees herself in five years,
when she actually is 40? “I see my kids working with
us”, she said. It’s not just wishful thinking either. Karin’s
children help in the “shop” as many other children of
entrepreneurs do. Her talented children are skilled at
social media, video and charity. They have also learned
their mother’s proclivity for philanthropy and have
teamed their talents. Alex, the eldest, created sister
Brielle’s website to sell jewelry online for charity, and
son Brendon collects food for the local food pantry. “I…
have a burning desire to make a difference,” says Karin.
“I have not come even near to doing what I want to. I’m
just getting started.”
Long may you run.
27
:
Ho
nd
m
e
ong Island’s
L
n
o
n
Eas
w
o
tE
gr
Farms & Vineyards
Agri-business adapts, with specialization,
organic labels, and award winning brands
by Pamela Winikoff
Agriculture, along with fishing, Long Island’s oldest industry, produces over $1 billion in annual sales, provides 10,000 jobs, and generates
considerable tourism, travel and hospitality revenues. A moderate climate, adequate rainfall and well-drained soil allow for an extended
growing season. Proximity to New York City’s retail and wholesale markets and day-trippers add to the sector’s enduring health and vibrance.
East End farms, which include some family farms dating back to the 1800s, also whip up homemade jams, pies, dressings, precut vegetable
assortments and mouth-watering baked goods. Legendary drives out to the “U pick” orchards –from early strawberries to late season
pumpkins—are a memorable day away from suburban density. At least 45 wineries, vineyards and tasting rooms on the North Fork offer
visitors tours and tastings.
The Corridor visited five East End growers to learn how they got their start, what challenges they have had to overcome and what spurs them
to get up every morning before sunrise and toil long hours.
Davis Peach Farm
284 Boyle Road, Port Jefferson Station, 631-509-5033
In her farm-stand shop, standing near a display of freshly-picked
peaches, Christine Davis recounts how her former husband David,
now in his 80’s, took over the family farm at age 14 after his father
passed away, to work seven days a week. After a while, he phased
out crops that were time- and labor-intensive and focused on more
profitable ones, eventually perfecting the art of peach growing.
28
Christine recounted how David’s mom supported them by breeding
irises, starting her day at 3:00 AM. “They lived on $1,000 a year
for roughly 15 years and did whatever they could to survive.” One
Christmas, David and his mother received letters from several
creditors releasing them from the debt David’s father had accrued.
“Who does this today?” she said.
Long days at the farm stand and early morning hours baking are
taking their toll on Christine, who manages the operation with
her daughter and a small staff. She travels every day between the
As the former owner of a wholesale import wine business in
Atlanta, Russell McCall developed a formidable education in the
wine business that he applies to managing his 22-acre vineyard in
Cutchogue. He and his wife Nicola produce several varieties of
Merlot and Pinot Noir, reserve varieties of each, Bordeaux Blends,
Chardonnays, Sauvignon Blancs, Rose Pinot Noirs and others, many
of which have received high acclaim.
homestead where David lives and the farm in Mt. Sinai, to her home
and commercial kitchen in Farmingville where she bakes, to the
preserve farmland and orchard in Wading River, to the farm stand in
Port Jefferson. “It’s a lot of driving and it’s exhausting.”
“During the economic downturn money was tight and we were hit
hard. We depend on tourists and with high gas prices, we lost a good
part of our sales. That’s when I got the idea to extend our offerings
and started our homemade line, with sangria, jams, jellies and salsas
in addition to pies.”
Davis grows peaches, apricots, cherries, strawberries, blueberries,
blackberries, raspberries, persimmons, figs, kiwi and irises. “I grow
the irises to connect with David’s mother.” The farm produces over 80
varieties of peaches across its 64 acres as well as innovative offerings
like plumcots (cross between a plum and apricot), apriums (cross
between a plum and apricot) and donuts (flat peaches). Visitors
are welcome to enjoy the Davis family orchard and visit the farm
animals on Hulse Landing Road in Wading River.
McCall Wines
22600 Main Road, Cutchogue, 631-734-5764
McCall’s is one of the smaller wineries on the North Fork, and offers
a truly idyllic setting. An old barn overlooking the vineyards serves
as the rustic, stylishly-done tasting room. A slab of wood stretched
across two barrels serves as the bar and stalls converted into tasting
rooms comprise the sampling area. Visitors can also sample the
vintages outdoors, at picnic tables overlooking their expansive fields.
Stalls on the backside of the barn are tenanted by handsome polo
ponies.
Nicola McCall, who with her husband Russ, produces some of LI’s top wines
The McCall’s got their start in the wine making business in the mid
90’s, Russ told us. “We planted 28 acres of vineyard here at that time
while I working in Atlanta. We waited 10-12 years for the grapes to
mature. In 2007, our eleventh year, we had our first vintage. If you
stay small you can have these long time lines and they work fine,”
he added. Russ sold his successful business of 40 years and moved
North. “We knew we didn’t want to put our name on a bottle unless
we had a great product.” While many larger wineries produce and
market as many varieties as possible, “We found one or two things
we’re good at and we continue to strive to do them well,” he explains.
Long Island wine makers had a strong year in 2007. “Our wines
turned out really well.” McCall Pinot Noir, Pinot Noir Reserve, Ben’s
Blend and Merlot were all hits. He explains, “We got a great write-up
in the Wine Spectator and our Merlot was poured exclusively by the
glass at New York’s Gramercy Tavern. Our Pinot Noir was described
by Howard Goldberg in the New York Times as ‘star quality’ and
‘world class.’ In the space of a few years I accomplished everything
I could have wanted. Once you’ve done it once, the problem is to do
it again. It’s a trick.”
“We work very hard. All vintages aren’t the same.” Luckily, 2010
came along and it was another great year for McCall. “The work of
a small company like most companies is in the details. If you get the
details right, everything will work out.”
McCall Wines continues to impress - On August 13th, with Gov.
Andrew Cuomo on hand, it was named as the 2013 NYS Winery of
the Year based on the quality of its entries at the New York Wine &
Food Classic, held in Watkins Glen.
Pindar & Duck Walk Vineyards
Pindar
37645 Main Road, Peconic 631-734-6200
117 Main Street, Port Jefferson 631-331-7070
Duck Walk
44535 Main Road, Southold, 631-765-3500
231 Montauk Highway, Water Mill 631-, S726-7555
The best known and largest winemaker on the East End, Pindar
harvests 17 varieties of grapes across its 500 acre vineyard. While
producing 75,000 cases that bear the Pindar label, the winery is
still run as a family business, according to Alexander Damianos.
Damianos is general manager at Pindar and their sister vineyard,
Duck Walk-- a smaller operation that produces about 35,000 cases
a year.
We sat with Alex in Duck Walk’s tasting room to learn more about
both operations. Pindar was the vision of Alex’s father, a physician
by trade, who had a passion for agriculture and grapes in particular.
In 1979, he bought a parcel of farmland in Peconic and within three
years harvested and marketed his first wines. The elder Damianos
continued buying more land and is credited with being one of the
earliest pioneers in Long Island’s winemaking industry.
“Our success is the culmination of hard work, commitment and
capital investment,” Damianos says. One investment paying high
dividends is the integration of sustainable farming technologies in
the operations of both Pindar and Duck Walk. In December 2011,
Pindar commissioned South Hampton based GreenLogic Energy, in
partnership with LIPA, to install a 150 foot tall wind turbine at its
North Fork Winery location. According to Damianos, the turbine
is the largest in Southold and produces electric power for 80% of
the winery’s operations, generating over 100,000 KWH. The winery
sells back excess electricity to the power company.
Pindar also has a significant composting operation, thus avoids the
use of chemical fertilizers and pesticides in the vineyards. Clippings
from local landscapers, refuse from wholesalers and grape skins
are composted in massive piles referred to as “The Himalayas.”
Empty bottles from the tasting rooms are also recycled and compact
fluorescent bulbs replace higher-wattage incandescent bulbs
throughout the retail space.
Damianos, in his earlier days, pruned the vines, drove the tractor
and helped to run the wine making business. While still in school, he
regularly put in 8-10 hours a day, not just during summers. When he
had the opportunity to acquire an operational winery that was being
family acquired acreage in Florida to support growing operations
during the winter months and over a span of decades, expanded their
distribution to points between Montreal and Miami, becoming the
largest wholesaler of Asian vegetables on the East coast.
A city girl who grew up in Boston, Karen helped run the business
after her father-in-law passed away and Frederick took over. “It’s
been a lot of learning for me and a lot of hard work. I felt very
strongly about growing our crops organically and so, gradually, as
we added new crops, we applied organic growing methodologies to
each of them.”
The impetus behind the organic certification came out of challenges
the couple experienced labeling their produce “naturally grown.”
Customers continually asked what those words meant. They finally
bit the bullet to initiate the paperwork, have the inspections and go
through the expense of getting certified. The process is complex.
“When you become certified organic you have to have the land
cleaned of all pesticides, and there are many specific restrictions
and regulations to comply with. Also, the certifying agency takes a
percentage of the sales of each product,” Karen explains.
Karen and Fredrick operate the farm with their children and a small
staff. “Fresh-Lee-Cut” vegetables are sold at their farm stand, local
farmer’s markets and a Community Supported Agriculture program.
The farm also sells homemade dressings, dips, pickled items and
cooking sauces. Cheese and meats as well as a wide variety of
garden plants are delivered from other farmers and are sold in the
farm’s shop. Public tours operate on Saturdays.
Satur Farms
4195 Middle Country Road ,Calverton, 631-734-4219
Growing up on a farm in Central Pennsylvania, Paulette Satur
Müller was a natural at growing things. She pursued agriculture
academically, earning degrees in horticulture and plant physiology
and went on to run a successful wine distribution business in New
York City. Feeling isolated from the land, she and husband Eberhard,
a transplant from Germany’s Black Forest, bought their first piece of
farmland on the East End in 1997.
Eberhard had been the chef and a partner at New York’s one-time
famed Lutèce restaurant. He grew up eating frisée in Germany, but
had trouble finding it and other fresh, locally grown produce and
(Cont’d on pg 41)
sold, he jumped at it. “We began operations under the new name,
Duck Walk Vineyards, in 1994, and built it to what it is today.”
Between their two operations, the Damianos family produces many
sought-after labels like Mythology, Sauvignon Blanc and Winter
White.
Sang Lee Farms
25180 County Road 48, Peconic, 631-734-7001
Frederick and Karen Lee didn’t start out as certified organic
farmers, but today they are committed to organic growing practices
and complying with NOFA-NY (Northeast Organic Farming
Association) certification requirements. Family-owned and managed
from its earliest days, Sang Lee Farms grows over 100 varieties of
specialty vegetables and herbs that can be found at its retail stand in
Peconic and the three farmers markets its seasonally attends.
Sang Lee Farms started as a conventional farm in the 1940’s, run by
Frederick’s dad and uncles, who grew only Asian vegetables, which
they initially supplied to buyers in Chinatown. In the late 1950’s the
30
CORNERSTONE INTERVIEW
Gloria Glowacki, Champion of the Entrepreneur, Retires
by Vivian Leber
Gloria Glowacki, shortly before her retirement (4th from left), shown with SBDC-Stony Brook Business Advisors and
other staff: Ritu Wacket, Ronni Rosen, Pierre Lespinasse, Glowacki, Intake Coordinator Leslie Rurup, and Bernie Ryba.
Gloria Glowacki’s retirement announcement in July produced an outpouring
of praise and good wishes. For 18 years she managed many of the critical
services that offer a lifeline to small business through the New York State Small
Business Development Center (SBDC) at Stony Brook University. Glowacki ,
as Associate Regional Director, chiefly interacted with the NYS Small Business
Administration, which, together with the University and the federal SBA, provides
support to the SBDC. Dr. Jeffrey Saelens is the center’s Regional Director and
has worked closely with the economic development projects of Stony Brook
University.
“Small business owners are too busy just running their businesses, ” Glowacki
says, “So now, in retirement, I’ll have the time to be an advocate for them as
a writer and in other ways.” Known as a vocal and effective champion of the
independent business owner, she had been named three times as New York
State Business Advisor of the Year.
“The business outlook now is slightly better but when small businesses were
slammed by Sandy…that put a wrench in everything,” Glowacki says, adding
that it will take close to two more years to fully emerge from “this mess.”
The SBDC at Stony Brook never turns away businesses needing services.
At most they will wait two weeks for an appointment with a certified advisor,
including specialists on staff in exporting, technology, manufacturing, food
services, government certification, and women-owned businesses. Two more
staff were added after Sandy deluged the office with urgent requests for loans,
grants and advice. All SBDC services are confidential and cost-free.
“We are the unemotional force that helps businesses improve their planning
process to succeed and grow as well as to navigate the obstacles,” Glowacki
notes. “We know so much already; why start at square one, we can get you
50% there.”
Recognizing that Hispanic-owned businesses needed a bridge to expand beyond
marketing to one another, Glowacki developed an “English for Entrepreneurs”
Saturday program, started production of bilingual publications, and added a
full-time bilingual advisor. The successful program has attracted many partner
organizations and business opportunities for its clients.
Many Long Island banks, because of the SBDC’s outreach, now, instead of
taking in, processing, but in the end declining small business loan applications,
will immediately redirect applicants who aren’t quite ready for bank credit to the
SBDC. After being guided to develop a business plan, research the market,
identify all available resources, only then will the SBDC help them prepare
qualified applications for borrowing, equity or grant financing. Advisors also help
clients understand the new Affordable Health Care law, minority contracting
(MWBE) requirements, and the employee-versus-contract-agent legal standard
in hiring. “It’s easier to do the right thing the first time than to untangle your
mistakes later on,” she tells clients.
About half of the SBDC’s clients are existing firms and the other half are startups.
Asked to identify the currently fastest-growing small business sector, Glowacki
points out that all aspects of health care—products, services, instruments, home
care—are seeing new business formation and expansion.
Clients tend to return over the years, Glowacki says, first using the program as a
startup and return when seeking capital, new premises or an expansion strategy.
Stafford Associates is a family-run, certified woman-owned provider of cloud
computing and network integration services, with 32 employees. It has expanded
its market by building a state-of-the-art data center that opened in Setauket in
2010. Glowacki and staff reviewed their business plan, smoothed their path to
securing SBA and bank financing, and helped them navigate municipal approvals
before the Gold-LEED center could commence construction. Tragically, Delores
Stafford’s husband, Eugene, who performed the firm’s R&D and was a computer
science professor, passed away before the building opened.
Glowacki nominated and in 2012 Delores was awarded the title of NYS-SBA
Small Business Person of The Year. “Gloria was our guardian angel. Whatever
our need, she helped us or directed us to the right person at every step. She
knows everyone and is very much respected,” Stafford says.
Glowacki’s mission to become an advocate is fueled in part by frustration.
“I’d like to see us have better public-private partnerships that help individual
small businesses. We have enough organizations already, but we should have
the technology leaders and companies that have gone the whole path and
succeeded share their know-how one-to-one. They don’t have to give away their
trade secrets to help small businesses explore new opportunities.” For now, she
admires the incubators and accelerators that are getting at least some of this
job done.
There are other irksome problems for Long Island that require more energetic
focus, she says, including the plight of older workers who have been downsized.
“You don’t walk away from these highly educated and smart people. We should
have better resources for cross training.” The youth-exodus is another area
where she thinks we’re not doing enough to keep businesses and a workforce
here. “Downtown revitalization I think it’s absolutely brilliant, but it’s a slow
process.”
“I don’t have all the answers, But I think there should be a group to put together
more solutions,” Glowacki says.
Contact the SBDC at Stony Brook University at [email protected], or 631631-9070. Contact the SBDC at Farmingdale State College (Lucille Wesnofske,
Regional Director), which generally serves Nassau County businesses. at
[email protected], or 631-.420-2765. Both SBDC offices also operate
satellite centers.
31
Entrepre
The
One Woman
Show
2M Technologies
By Manny Morales
By Carlene Afetian
Veronica Rayne is a contemporary women’s boutique, which
carries clothing, footwear with an urban edge, outerwear, and
accessories from select lines and designers. My merchandise
is item driven not trendy.
I help my clients shop, style and build their wardrobes. I
opened my business in 2003, when my son was 8 months old
and I needed clothes! The shops in my area didn’t carry what
I wanted so decided to do what i do best --shop! I worked in
the fashion district for years for DKNY, Polo jeans, RL, among
others, producing & styling visuals for print/web.
I started 10 years ago in a small location and started buying
the lines I wanted to wear with my credit card, no loan, and
just kept flipping my merchandise. It took off…
I carry lots of indie designers & made in the USA brands,
because I think it’s important to support the US economy and
the quality of the garments are amazing. I mix in plenty of well
know lines also.
The economic downturn allowed me to negotiate a new,
larger retail space. I brought in lines with a lower price point.
The competition was also eliminated--other clothing stores
were dropping like flies.
Veronica Rayne Boutique
66 Main St.
Northport Village, NU
631.261.2080
32
2M Technologies is a Computer and IT Solutions provider. We make customer pain-points go away, generally
although not necessarily, through the application of some
kind of a technology solution. Our primary strengths are
in application development and integration, and we are a
Microsoft Silver Level Partner. At a time when you could make money on computer
hardware, and software was secondary, we saw an
opportunity to provide software development and support
to the Long Island and NYC business community. I was 27
at the time, and my feeling was – if I tried and succeeded,
GREAT! If I tried and failed, I’d never have to say “I wish
that I had…”.
I’ve been in business Since 1987. The computer industry
has changed a lot, and we say that we are a lot like
Madonna – we reinvent ourselves every few years. We put
a high value on the customer, and that’s probably helped
to differentiate us in the long run.
We were self-funded to start. We worked on projects
after hours and on weekends to build a little cash before
going at it full time. We used cast-off equipment that we
could come up with as our platforms. We worked at the
customer site quite often and setup offices in my partner’s
basement and in mine; we were like rebels, living out in
the hills. There were two economic downturns – one in the early
2000s, the DOTCOM bust, and the more recent one
that is really still going on. The downturns were both
instrumental in affecting the way we did things. We had
to lay off workers in the earlier downturn – something
that nobody enjoys, but we probably wouldn’t be here
if we did not. Every dollar is tougher to come by, so
we’ve needed to demonstrate real value in projects – true
savings, improvement of efficiencies, etc – a real ROI. Also – take nothing for granted; if you’re not listening to
your customers and talking with them – someone else is.
If you value them, show it.
2M Technologies, Inc.
700 Veterans Memorial Highway
Suite LL05
Hauppauge, NY 11788
neurs...
Tru Salon
By Cheryl Duignan
Tru Salon is a hair only, high-end
boutique salon with a unique haircare line called “Tru The Product.”
Our salon is “Earth friendly!”
Brian my husband and partner of
Tru salon and I decided to create
these businesses so we can put
our visions to work - this line called
“Tru The Product” consists of
about 25 products from shampoos
and conditioners to styling and
finishing products. We use a lab in
California to produce the product
line.
We have been in business for 10
years and all our funding was from
savings, lines of credit and family .
We started the salon and the
product line because we had our
own vision of what this industry
needed. We were tired of the big
companies using our ideas without
giving credit where credit was due.
The industry is losing the boutique
lines and businesses to big chains
and we wanted some of that back
. All our artists specialize in one
area of hair-care and our products
are hand-picked and created for
the comfort of both the stylist and
the client.
The economy down turn affected us
because people really embraced
the chains. We had to scale back
a little just like everyone else. We
started to focus our advertising in
social media. We eventually want
a Hampton location, and are just
waiting for the timing to be right.
437A North Country Rd.,
St. James, NY
(631)584-2210
[email protected]
La-Cook-a Racka, LTD. By Nicolas Stanco
I have always owned businesses, but the Taco Rack was born out of
necessity. My family got tired of all the stress and mess of making tacos, so
I designed and patented the Taco Rack and formed the company La Cook-a
Rack-a LTD. The Taco Rack is stainless steel taco cookware that allows the
commercial or home chef the ease of preparing cooking and serving hot
crisp oven baked tacos that stand straight-up and not flat on the plate with
the ingredients spilling out. The best part of making oven tacos on the Taco
Rack is after you bake the shells and fill them with your favorite chicken,
meat or fish, you top them with cheese and place them back in the oven to
melt the cheese.”
La-Cook-a Racka was funded personally, which allowed them to purchase
their first set of stamping dies and to hire the marketing firm Luce Creative,
Inc. whose principal is Elaine De Luca Byrnes. Elaine did such a great job…
taking a real diamond in the rough and made it shine with a new web site,
new packaging and media coverage, I decided to offer her shares in my
business. The bad economy never affected our business, we have grown steadily
each year. I think the reason for that is because tacos are very inexpensive
to make and they have become as American as hamburgers and hot
dogs. When restaurants like the Cheesecake Factory started to offer tacos
on their menu you knew they were no longer just for Mexican restaurants. Matter of fact, not only have our web sales increased, Amazon.com has
ramped up their orders consistently each year, Whole Food Markets in the
Northeast region placed a big order of Home Series Taco Racks and chefs
from all over the world are ordering our Chef Series product line. We are on
Royal Caribbean Cruise Lines, in Dave and Busters on the West Coast, in
restaurants throughout the South and Southwestern states as well and New
York City, Las Vegas and throughout Canada, England and Australia. We
just placed an order with a chef in Sweden… I can only imagine they will be
serving a lot of fish tacos in that restaurant. La Cook-a Rack-a, LTD
[email protected]
Phone: 631-265-5975
Web: www.TacoRack.com
33
Trade Show Tips
By John Hill
Companies that play “Trade Show Roulette” do not have successful trade shows. Companies develop
business plans, marketing plans, new product development plans, but when it comes to trade show
marketing, in many cases they prefer to play “Trade Show Roulette,” spending for the space, then
just standing in the booth hoping that someone will stop by and see their products or services. Their
pre-show effort too is at best half-hearted, accompanied by logic such as, “Well, I sent them an e-mail
and they didn’t come to the show,” or “This is only a local show so it’s nothing to get excited about
if we don’t get any leads,” or the best that I’ve heard, “We’re only in it to support the organization.”
My question for companies that say such things is, ”How much is your time and effort worth?” Every
show is important whether it’s a global expo, an association show or chamber trade show. Your
company is on display. What type of impression do you give to the attendees if your display is not
up to date, or your booth personnel are less than enthusiastic in presenting products or services?
Businesses should abide by the rule that if they are going to do a show then they must give it 110%.
Otherwise, why waste the time, effort and money at all?
34
When I interview a company interested in doing
a trade show, we interview each other, with my
initial goal being to determine if I will take them
on as a client. Considering that only one out of
seven companies that take part in a trade show
will be successful, I only work with companies
that want to be that company, successful in
their effort. The first thing that we talk about is
their plan and what they want to accomplish. If
a company does not have a plan or they have
no intention of developing a plan, and they still
want to exhibit at a show, they really are just an
attendee with a booth. “If you fail to plan, you
plan to fail” I am sure we have all heard that
before, but it is still true. When you do a show
regardless of the size or location you should
develop a plan. Once the plan is in place, you
can start delegating the requirements. When a
small company participates in a trade show, all
of the company departments should be involved.
You want, and need a total commitment and total
support.
A trade show is like an Iceberg. The trade show
itself is only a small but important part. This is
where the exhibitor is on stage, as the tip of the
iceberg. The Pre-Show and Post Show efforts are
where a company will work to insure trade show
success.--the behind the scenes effort, or what
you don’t see, below the water. The following are
the steps that should be taken to insure Trade
Show success:
• Make sure that that the show you have
chosen is the right one for your company.
• If you are going to exhibit in a trade show,
give yourself at least 6 months to plan and
execute the effort for success.
• Develop a plan, detailing what you
want to accomplish at this show, such
as to contact a number of strategic
partners, or develop a number of leads.
The
• Then you must let everyone know that you
are going to be in this trade show: Clients,
Prospects and Suspects.
• Target 10 companies that you want to do
business with. That is, you have checked out
these companies and you have determined
that they can use your products or services.
Then invite them to the show. There was a
study done by a university in New England,
which asked: “Why didn’t you attend that trade
show.” Over 40% responded, “Because no
one invited me.” People want to be asked. If
they are asked, and they go, now they are on a
mission. They have a destination and someone
to see. Now it makes the trade show for both
the attendee and the exhibitor worthwhile.
• Call, write and even visit these 10 companies
to insure that you have done everything
necessary to see that they will be attending
and visiting your booth.
• Write the copy for your e-mail blasts, and
plan to send out these e-mails at least 6 times
before the show.
• Also use social media to get the word out.
• Develop a script for your booth personnel to
make sure that everyone is on the same page.
Include answers to questions such as: When
will the product be available, how much does it
cost, how many can you deliver?
• Questions that you should be prepared to
ask visitors to your booth may include: Do
you have a budget? How much were you
looking to invest? How many are you looking
to purchase? When do you need them? Who
else is involved with the buying decision?
• Once you have leads from a trade show, follow
up is critical. Without follow up, all of your
time and effort has been wasted. Your mission
should be to follow up until all of your leads
have been accounted for.
This list is a good start but each small business should
develop a plan customized to its target market. Once
you have a detailed plan, you should find it easier
next time to adjust it to each new trade show. You will
be on your way to trade show success!
John Hill, President & CEO
Long Island Advancement of Small Business
One Hewitt Square #217
East Northport, NY 11731
T:516.473.7202
Email: [email protected]
Website: www.liasb.com
KING
Networ
David Gussin is the hyperkinetic, ever energetic Host/
Toastmaster/Innovator of 516ads.com. In the course
of five years he has racked up awards and honors,
most recently the ‘Champion for a Cause’ Award
from the Hispanic Network, and raised thousands of
dollars and thousands of articles for various charities.
AMONG his very solid contributions to society are the
“invention” of the “Everything Bagel” and author of
the rapidly growing movement L.E.A.R.N., Let’s End
All Racism Now…and more. He has written for The
Corridor, has been featured in Newsday and The New
Yorker and “roared” at his televised CNN interview.
He is one of us, and we follow him around as if he
were the Pied Piper.
His method is simple. Have a heart with infinite
capacity, invest every corpuscle of your being, scream
until your throat is raw and give selflessly to all who
need you.
David not quite demurely states that what he does is
“The only thing I even remotely have a skillset for!
It’s a great idea! A beautiful mixture of business.
community, web and warmth. The idea of building a business-community network
would be good for any region. We happen to be on
Long Island, NY, a great place to do it. On one end,
the business community comes together, building
their own “resource” in the community. In addition
to dramatically cutting costs, this resource offers
businesses a variety of unlimited tools to help them
market their services. Since it’s community based,
in addition to the web; the warmth is created when
business owners and professionals come together in
a variety of formats. In addition to what I call ‘igniting business’, which
is to create smart business activity and proactively
make things happen, we or any business-community
network can seamlessly mix in and raise awareness of
and supplies for charities. A wonderful combination!!!”
Branding matters too! The idea of building a businesscommunity network is smart no matter what the name.
But, for it to work, you have to capture the attention
and memory of the community. Name recognition
matters! On Long Island the 516/ 631 LI area codes
work. In NYC it could be 212Ads, in Westchester 914,
and so on. The choice of a name within the community
has to be unforgettable. It’s the business community
that puts great products and resources behind it.” 35
The Hispanic Market:
A Tale of Two Cities
Maria Morales-Prieto, President & CEO of The Hispanic Network LLC
By now most every business owner is aware that the Hispanic market is growing exponentially so its spending power is also
naturally increasing with each passing year. Ignoring this fact is what I call the “Ostrich Factor,” which is detrimental to
business growth. Just because you ignore it, doesn’t mean it will go away. Any business owner with vision knows they have
to come up with a strategic plan to target this lucrative market. But how does one go about doing this?
You may be surprised to learn that the Hispanic market is a
“Tale of Two Cities” in that there are really only two distinct
types of Latinos. Yes, there are many ethnicities, colors,
dialects and cultural traditions but most importantly there is
a “Bilingual Barrier.”
The majority of Hispanics in America have been here for
many years and generations so even though their last name
is Fernandez, they watch TV, listen to radio, read and speak
predominantly in English, using Spanish only when dealing
with an older relative or when coming across Spanish
dominant Latinos, our “Second City.” They are the more
recent arrivals and most likely grew up during their formative
years in their mother country. So, the former group, being
affluent, English dominant Latinos, really controls the purse
strings while the latter is making huge strides in the small
business world in search of their “American dream.”
Keep in mind that the daughter of the Latino mowing your
lawn today will be your grandson’s pediatrician tomorrow.
Immigrants aren’t coming here to have their future
generations struggling doing manual labor. Just like every
other immigrant group that has come to America, Hispanics
come for the future of their families and the great rewards that
come with a higher education.
Affluent Hispanics, who have been here for generations, now
total 15 million, which is about 12% of all U.S. households
according to a study conducted by Nielsen and released by
The Association of Hispanic Advertising Agencies (AHAA).
Representing close to $500 billion in current Hispanic
consumer spending power, the affluent Hispanic market is
expected to grow to 18 million by 2015 and to 35 million by
2050.
How does this translate to Long Island numbers? According
to a study by Adelphi University, there are approximately
20,000 Hispanic owned business on Long Island and more
than half a million consumers!
A common misconception by non Latinos forming a
marketing plan to target Hispanics is that they need to
translate their marketing materials and website. Sometime
you do but many times you don’t. It totally depends on what
you’re selling. If it’s a product or service everyone uses such
as a grocery store or bank, then it’s prudent to do so because
36
you need to reach the Spanish dominant Latinos too, who are
undoubtedly clients.
If you have a product or service that is not used by the masses
such as a boutique, a car dealership, printing company, office
supplies, graphic designs, alarms and surveillance, you
should be targeting the affluent Hispanic market who really
only needs to see a Latin looking family in your English
language marketing materials - a simple nod acknowledging
respect for the market and its ever-growing numbers.
Keep in mind, though, that if you’re planning to target the
Spanish speaking population by translating your marketing
materials, you need to have staff on board who speak the
language fluently. You can’t have marketing materials
designed to bring in a target group you’re not ready to service.
Hiring someone bilingual should be your first priority.
After all, it is only natural for a consumer to feel more
comfortable making a sales transaction with someone who
speaks their language especially if the product or service is
one of an intimate nature like financial planning, banking,
accounting, legal issues and medical procedures.
“Within the Hispanic community being fluent in Spanish
earns their trust,” explains Mike Diaz of Nationwide Credit
Counseling & Buenos Diaz BBQ, “Conversely, though, a
thick Spanish accent makes it difficult to earn the confidence
of non-Hispanics. The new immigrant community needs
to learn that they can indeed trust government entities such
as the SBA, which holds business development classes in
Spanish,” which brings us to the other side of the coin - how
does the Hispanic business owner make inroads into the nonLatino market?
“Easy,” explains Helen Zagaro of Star Promoz. “Spanish
dominant Hispanics need greater access to English as a
Second Language (ESL) classes so they can do business
with their non Hispanic counterparts. It is their only hope
to growing their company and happily assimilating into
American society.”
One thing is for certain. Both markets need each other in
order to keep the American economy growing. So if you’re
an “Ostrich,” pull your head out of the sand, open your eyes,
get with the program and stop passing on doing business with
a market share that will certainly help your business expand.
Sandy Recovery Continues-Lesson Learned:
“You Need a
Contingency Plan”
by Vivian Leber
A Conversation with Lucille Wesnofske, Regional Director
NYS Small Business Development Center at Farmingdale State College
Lucille Wesnofske, Regional Director of the NYS Small Business
Development Center (SBDC) at Farmingdale State College, started
in that position three days before 9-11-2001, after working for 14
years as a business advisor and as Associate Regional Director
at Long Island’s other SBDC office at Stony Brook University— so
she is no stranger to disaster response
and recovery. After Superstorm Sandy,
Wesnofske served on the Small
Business Administration’s task force
charged with taking stock of lessons
learned from this latest disaster to
improve disaster planning and response
for “the next time.”
Wesnofske wishes that more small
businesses would do contingency
planning both by taking commonsense measures and seeking expert
advice. That includes but isn’t limited
to disaster planning. Does the business
have a contingency marketing plan
if a sales strategy doesn’t pan out?
What is the business interruption plan?
Has the owner read the fine print in
insurance policies? In addition, she
advises business owners to ask their
accountant, “Based on my tax return,
am I bankable?” When disaster hits, in
other words, does the small business
show enough profit over several years
to qualify for favorable governmentbacked loans or has it expensed every
last dollar to the point that it will appear
to be a poor lending risk?
In a typical year approximately 1,100 small business clients receive
the Center’s free, confidential business consulting services, 40% of
those being startups. Since the storm, with additional staff members
and emergency centers that were opened (those in Island Park
and Lindenhurst remain open), the Center has guided hundreds of
impacted businesses along the South Shore coastal communities
of Nassau and Western Suffolk in applying for NYS Emergency
Loan Fund and SBA Disaster Loan applications. “The SBDC’s
reputation for excellence is such, that the SBA came to us after
9-11 and the state designated us right after Sandy to administer
their respective grant programs for recovery.”
Recovery funds are still flowing. The most recent program to come
online is New York Rising, which offers both loans and grants; grants
are for $50,000 or more depending on the business’s qualifications,
with coastal and seasonal businesses, such as fishermen or
marinas eligible for higher amounts. The funds are available to fill
unmet needs in the recovery process, including reimbursement of
the business owners’ cash outlays. “Long Islanders are resilient
and are like bulldozers, so businesses patched things up and got
running again in any way they could,” Wesnofske says. To date,
her office has facilitated nearly 1,000 New York Rising applications.
Wesnofske’s staff of 11 includes Erica
Chase, Associate Regional Director, Walter
Reed, a business advisor who works
with inventors and importers/exporters,
Michael Gragg, who helps Veterans start
businesses, and others who have expertise
in writing business and marketing plans
or in bank lending. “If we don’t have a
particular expertise here, I can post a
request to our LISTSERVE to reach every
SBDC business advisor in the state and
they will have an answer or a referral,”
Wesnofske notes. Earlier in her career with
the SBDC, Wesnofske developed business
plan software for and advised child care
centers, which is a key service industry for
Long Island.
“The people who work for the SBDC
all through our state are a very special
group. They truly care about their clients
and want them to succeed,” Wesnofske
emphasizes. Her office also works
closely with Farmingdale State College’s
economic development and business
education programs. SBDC advisors have
guest-lectured to classes and judged
the business plans of students studying
entrepreneurship. The College, as part of
SUNY, provides the SBDC with administrative services and space.
Wesnofske has more advice for small business owners that aspire
to grow. “Technology is changing how small businesses operate.
By using it smartly, you can expand your markets and be more
productive. Learn all you can about technology, software and social
media, identify what you don’t know, and get what you need in the
way of help.” In addition to free one-on-one advising, the SBDC
offers low-cost workshops for small businesses in QuickBooks,
how to market through E-mail and social media, how to write a
business plan and more. “You are not alone, we are here to help.”
Contact the SBDC at Farmingdale State College at 631.420.2765
or e-mail [email protected]. The office operates weekdays
8 AM to 4:30 PM. Satellite offices are in Brookville, Hempstead,
Lindenhurst, and Island Park. For Veterans’ business services,
contact 631.370.8891.
Photo: Lucille Wesnofske, Regional Director and Erica Chase, Associate Director, helping small businesses recover, one business at a time.
37
What if it Happens Again?
Contingency Planning in Uncertain Times
by Patti Bloom
“Superstorm Sandy” hit Long Island on October 30-31, 2012 and has been recorded as one of the most destructive and second costliest
hurricanes next to Katrina, with economic losses estimated at $100 billion, in United States history. The economic impact of Superstorm
Sandy has cost the country $65 billion in lost business and killed 159 Americans. Sandy disrupted more than 265,000 businesses and destroyed
305,000 housing units in New York. In addition, Federal Emergency
Management Agency disclosed that Superstorm Sandy damaged
or destroyed 95,534 buildings in Nassau and Suffolk Counties
and left behind 4.4 million cubic yards of debris. To date, the U.S.
Small Business Administration has approved loans in the amount
of $18.4 million to 208 small to mid size businesses in Suffolk
County. That amount does not include Nassau County statistics
or private insurance disbursements made to business owners of
both counties.
The 2013 hurricane season began June 1st and will officially end
November 30th. Extreme weather events like the devastating
tornado which tore through North-Central Texas, May 15th 2013;
the terrorist bombs that exploded at the Boston Marathon, April
15th 2013; active shooter incidents in the workplace, Virginia Tech,
April 16th 2007 and Sandy Hook Elementary School, December
14th 2012; the August 15th Blackout of 2003; an outbreak of a flu
virus that spirals into a pandemic; a key employee suddenly falls
ill or dies; or an internet provider or your server “goes down” are
all examples of “unexpected business interruptions.”
C-level executives need to prepare for any potential disruption that
can affect the ability to sustain business operations. “Resiliency”
begins with opening a collaborative dialogue among trusted
advisors, Crisis Management Teams and Subject Matter Experts
to assess the corporate risks and financial costs associated with a
business interruption. Business Continuity Institute reports that
82% of organizations with Business Continuity Management in
place mitigated the impact of disruptions, 77% recovered faster,
55% saved money and protected their revenue stream. Recent
events have proven that small and mid-size business owners
cannot afford to wait!
The following is a brief “to do” list as you begin your journey toward a
business continuity plan and disaster recovery strategy:
1. Recognize the need to have a plan!
2. Perform a Business Impact Analysis to identify critical functions
and financial systems that must be sustained during and after a
disaster and to develop strategies for recovery.
3. Include a Risk Assessment, which would identify vulnerabilities
affecting your operations or those of your suppliers.
4. Evaluate communication systems with your employees, vendors and
customers; authorize a spokesperson to handle the press/media
5. Document work-flow procedures of employee job functions
6. Back-up important documents in a remote location
7. Implement redundant systems to maintain access to the Internet
8. Determine technology recovery point objectives and recovery times
Bloom Resource Group, Inc.
700 Hicksville Rd, Suite 104
Bethpage, NY 11714
V: 516-777-0-BRG (274)
F: 631-427-0757
E: [email protected]
www.BloomResourceGroup.com
9. Have systems in place to meet payroll obligations
10.Consider a contract at an alternate location where key employees
can work
11.Update and modify the plan regularly
12.Practice the plan frequently!
The lesson learned from “Sandy” provides business owners the opportunity to transform their approach to business
continuity. Advance preparation and planning results in a faster recovery. Most of the time rebuilding antiquated
systems is not the best solution. “Best in class” methodologies keep you ahead of the competition and allow you to gain
the competitive advantage
Ms. Bloom is President of Bloom Resource Group, Inc. and sits on the following Boards of Directors: ACP Long Island
Chapter, LIFT-IT and SCWBEC.
38
HOW
ARE YOU
MEDIAWISE?
By Jaci Clement
Is your organization one of the “Best-kept Secrets on Long
Island”?
I hear that one all the time from nonprofit bosses, eager
startups and established local businesses. Some even
wear the moniker like a badge of honor. Others, though,
use it to express their frustration at not being able to grow
their organizations.
If you’re among the latter, take heart: We can help. Here’s
an executive summary of what you need to know right now.
Just as every enterprise needs a business plan, you
should also have a communication plan in place. It
should align with your organizational goals, and hold your
communication professionals accountable. Yes, you read
that right. Communicators should have definable goals, so
they know how they’re doing their jobs – and you know
why you’re paying them.
Realize that not all communicators are created equal.
Before investing in people to help market, brand and raise
awareness of your organization, you need to know how
you want to do that and hire people with the right skill sets.
Media relations is not the same as public relations, which
is not the same as marketing, which is not the same as
branding, investor relations or event management. Now,
there are lots of communicators that will bill themselves as
jacks-of-all-trades, so beware.
When I was a business reporter, I spent two years covering
startups. There was one question I asked them all: What
makes you different? Every one of them had an answer
– and it was the same answer. ‘Our customer service is
what sets us apart,’ I was told, each and every time. The
problem? If everyone actually had excellent customer
service, then it’s not what sets you apart from the pack. It
is, in fact, what makes you the same. The bigger problem?
The majority of the businesses I interviewed were out of
business by year three. The moral of this story: Know your
strengths. It’s a vital first step to defining your brand and
carving out your niche.
You know all those companies in the news today, the ones
generating all the buzz? The ones finding ways to stay top
of mind with their customers -- even in an age when the
average attention span is a mere five minutes? They place
a premium on communications being a business driver.
Traditionally, organizations have treated communications
as an afterthought. If your key communicator doesn’t
have a seat at the senior management table, you’re losing
business. Welcome to the Information Age.
Last but not least, media changes constantly. As it does,
it takes your audience with it, fragmenting it and making
it harder for you to reach the people who would be your
customers or clients. And not only does media change, but
the people working in the media often turnover even faster.
That means to get your stories in the news – read: free
publicity – you always, always have to work it. By staying
in touch, you’ll remain on top.
There’s lots more to getting media savvy, but how much
you’re willing to invest comes down to one thing: How
much do you want to succeed?
Jaci Clement is executive director of the Fair Media
Council, a 501c3 nonprofit with 200-plus businesses and
nonprofits from the New York metro area as members. To
get media savvy, log on to www.fairmediacouncil.org, call
516-224-1860 or email [email protected]
39
So You Want
to Work for Yourself...
Franchising on Long Island
By Tom Scarda, Franchise Consultant
Franchise outlets have dotted the American landscape for
decades but didn’t gain popularity until the mid-fifties when
automobile ownership skyrocketed. Perhaps the American
auto culture drove the growth of franchises in America?
Actually, what fueled the franchise industry’s growth was
the Federal Trade Commission that stepped in to regulate
it in the 1970’s. Franchise laws in America make buying a
franchise a much safer investment than in previous years
when some unscrupulous people ran business scams and
called it franchising. Franchise sometimes still suffers from
a bad rap because of the past, unregulated times.
I think a franchise business can be looked at like a business
with training wheels. For folks who have been downsized,
outplaced and aged-out of great jobs, franchising could be
an alternative to trading their time for money. Some view
business ownership as an opportunity to take their career
into their own hands, invest in themselves and not worry
about the next round of layoffs. This has been a trend
we have seen in franchising since the 2008 economic
downturn.
Because of the disgruntled corporate refugees and the
grand opportunity here in Long Island’s two Counties, the
number of franchises has been growing on Long Island
faster than dandelions on a summer lawn. Long Island has
always been a sought after area for growing franchised
outfits. Long Island is a bubble of more than three million
people who drive, have houses, kids and dogs that all need
to be repaired, maintained and fed. In terms of business,
an entrepreneur couldn’t ask for a better demographic.
The International Franchise Association in Washington,
DC projects that 2013 will see a 2% increase in new unit
40
openings around the country. As a reference point, in
2012 there 825,000 franchise businesses across 300
business lines, which supported nearly 22 million jobs
and generate $2.1 trillion of economic output to the U.S.
economy. The Franchise trade is the largest employer by
industry second only to the US Military. For Long Island
last year, we had more than 56,000 people employed by a
franchise operation somewhere on the Island within 4,579
franchised business units.
Route 110 alone is experiencing a franchise growth spurt
of it’s own. You can patronize everything from household
brand name such as Dunkin Donuts, 7-Eleven and Subway
to newer entries into franchising such as The Melting Pot
and Buffalo Wild Wings. On other parts of the Island we
are seeing personal care and health and fitness concepts
open their doors. These particular two industry segments
are anticipated to expand this year throughout the country
and Long Island according to the International Franchise
Association.
Franchising often gets a bad rap because the belief is that
they are huge conglomerates that put the mom and pops
out of business. However, the franchise that opens in your
town is typically owned by a Long Islander, so, in a way,
it’s still a local business. The good news is that for every
franchise unit that is opened, an average of 10 jobs are
created in that local community. That sounds like a special
sauce to me.
Tom Scarda is a FranChoice Consultant and a writer. He
can be reached at 866-545-6191. www.FranChoice.com/
Tscarda
Serving the Small Business Community of
Long Island for Thirty Two Years
With Low Cost Loans & Technical Assistance
1980 - 2013
LONG ISLAND DEVELOPMENT CORPORATION
400 Post Avenue, Suite 201A
Westbury, NY 11590
516-433-5000
www.lidc.org
(Farms - Cont’d from pg 30)
quality herbs when he moved to New York. Frisée was one of several
produce items and herbs that the Müllers decided to grow themselves
for Eberhard’s restaurant business because they couldn’t get them
through domestic channels.
Friends in the restaurant business wanted to buy their produce. “We
would leave the city on a Friday night after work and drive out to Long
Island, water and feed the produce all weekend, then wake up before
dawn to drive back into the City, make deliveries up Park Avenue to
Gramercy Tavern, the Four Seasons and other stops and head off to
our respective jobs on Monday morning,” Paulette explains.
With a network of restaurateurs as customers, the business grew.
“When we first started, there was no ‘locally- grown’ movement,” she
recalled. “We eventually hired someone to weed, feed and harvest.
We tried to get a distributor and no one was interested. So we sold
wine and produce out of taxi cabs.”
Paulette left her job in 2000 to focus full time on the business. From
an eight-acre planting footprint the operation has grown today to 180.
They tried selling direct to stores and found that they were pioneers.
“We didn’t know anything about retailing and retailers didn’t know
how to stock and display fresh produce. They would put it on an end
display with a sign ‘local grown’ and at the end of the day it was
wilted. They didn’t know the produce needed to be refrigerated.”
The Saturs placed a call to Fresh Direct, whose business model
made sense to them. With a few tweaks the relationship has worked
beautifully. “At first, we didn’t know how to pack for retail but we
mutually educated one another. We wanted to deliver at least three
days a week, which was not common back then. Now we deliver fresh
six days a week.”
Today Satur Farms products can be found in Gourmet Garage, Dean
& DeLuca and other high- end markets. They added Whole Foods
eight years ago. Paulette recalls how one evening at the end of a
long day and exhausted, an idea for a line extension came to her. “I
was getting ready to go home and make dinner when I spotted three
different heads of vegetables. I asked one of my kitchen staff to cut me
up one of each. Seeing them laid out, the light bulb went off--I could
sell a new product, our Hearty Vegetable Mix.”
“Everything was serendipitous, from starting the farm to the line
extensions we’ve added over the years.” Their success, however, was
also more strategic. “We chose crops that would do well growing here
and which were easy to automate. Baby leaf salads for instance, have
many rotations in the year. If you grow varieties like grapes or corn
that have a single rotation, one mishap and you’re knocked out for
the year. That’s why we stick with spring mix, wild arugula, spinach
and others.”
The Müllers use conventional growing methods. “We don’t grow
organically. It’s too complicated. If you’re next to a vineyard you
need a 200-foot buffer. There would be nothing left for us with that
requirement.”
From baby beets and eggplant, to edible flowers, tomatoes and
cauliflower, the menus at top restaurants and fast-serve chain
restaurants alike, in NYC and Long Island, boast of the Satur Farm
name on their menus.
Photos by Vivian Leber
41
Your Industry,
Your Market,
Your Story
First Anniversary Issue
REAL ESTATE AND
BUILDING ARTS ISSUE
THE
MONEY ISSUE
KING
OF THE
CORRIDOR
Reflections of a
lifetime on Rt.110
with Joe Gazza
Energy and the Environment
Closing the Books
MidSummer Arts Issue
Also in this issue:
Real Estate
Round Table
Discussion
What happened? What’s
going to happen? Top
residential and commercial
realtors discuss the industry.
Is it Spring yet?
Sidewalk Café Architect
WHEN THE FAMILY
BUSINESS GOES DOWN
Long Island law Issue
The Financial Vigilante
A Debtor’s Solution
Building Arts and Real Property Issue
Charge Large
Turn Credit into
Child’s Play
Making it Work
Taking Advantage of a
Weak Economy
This Man saves
Hundreds of People
Feb. - Mar. 2009
Vol. 1 Issueof
002 Dollars a Year
Millions
Energy & The Environment Issue
Also in this Issue
Spring 2010
Inside this issue:
The Smart Grid Defined, The Wind
Industry On Long Island (No we
The articles
Cinema Arts Centre
don’t mean politics!) and
LongDr.
Island’s
by LIPA CEO, Kevin Law,
John Favorite Cinema Heroes
Restaurant Row
Robke’s of Northport
The Long Island Network
April - May 2009
Vol. 1 Issue 003
Vol. 2 Issue 01
Marburger, Dr. Yacov Shamash,
January-February 2010
Our Island Paradise
Robert Catell and more…
Vol. 1 Issue 006
Staycationing on a Tank-full of gas
Guide to the Arts
Visual and Performing Arts
Action Long Island
The biggest little committee
you never heard of
Inside this issue:
Pro se Litigation-Navigating the
Underbelly of the Legal System
July - August 2009
Vol. 1 Issue 005
Leviton—
The Next Hundred Years
Rt. 110:
The Heart of Long Island’s
Economy
The Big Idea!
Marketing the Legal Profession
New Business on the
“Hauppauge Corridor”!
Inside this issue:
Real Estate Round Table:
Breakfast Conversation with the
Professionals.
Bringing Markets to Technology
Long Island Forum for Technology,
Closing the Skills Gap:
Education from S.T.E.M. to
Adult Ed, High School Robotics—
School-Business Partnerships of
Long Island
Vol. 1 Issue 008
April-May 2010
Vol. 1 Issue 007
Anne Shybunko— GSE Dynamics
Rides Composites Wave, Wins
High-Value Contracts
LISTnet— Creating a Forum for
Tech Success
Can we do that here?
Outsourcing—The Great Debate
We Want To Know All About It!
For Sponsorship, marketing and editorial opportunities
Call 631.683.4660 or email [email protected].
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We specialize in the procurement and protection of
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development, and marketing efforts.
We are dedicated to providing first-class, yet costeffective legal services, with the attention to detail and
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CARTER, DELUCA, FARRELL & SCHMIDT, LLP
445 BROAD HOLLOW ROAD, SUITE 420
MELVILLE, NEW YORK 11747
TEL (631) 501-5700
FAX (631) 501-3526