BusinessDevelopmentCenter

NYS Small

THE STATE UNIVERSITY of NEWYORK

2006

programreport

annual

Education, Entrepreneurship,Economic Development

Small Business Development Center

www.nyssbdc.org

Written by D. Michael Ross

Design by David SchillingerThe State University of New YorkOffice of Design & Printing

A Partnership Program with the SBA,administered by The State University ofNew York

The NYS SBDC extends its services to thepublic on a non-discriminatory basis.Reasonable accommodations for personswith disabilities will be made if requestedat least two weeks in advance.

Funded in part through a cooperativeagreement with the U.S. Small BusinessAdministration. All opinions, conclusionsor recommendations expressed are thoseof the author(s) and do not necessarilyreflect the views of the SBA.

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The year 2007 marks the beginning of a new era – an era characterized byNew York’s re-emergence as a national leader in responding innovatively tosocial, political, and economic challenges. This era will see the reassertionof New York as the place of unparalleled opportunities for those willing todream and to work.

Of all the challenges in the opening decade of the 21st century, one of themost formidable is the revitalization of our State economy. A key to thisrevitalization will be the human creativity through entrepreneurship andthe formation of successful small businesses that will carry us farther intothe future.

Just as entrepreneurs and economic innovators have represented the bestaspects of New York’s past – building our unparalleled cities, infrastructureand communications systems – New York’s economic rebirth in theInnovation Economy of the future will come about as a result of a reinvest-ment in our greatest natural resource: human capital.

The SBDC partnership, between the State of New York, the US SmallBusiness Administration, the private sector, higher education, and adminis-tered by the State University of New York, has helped over 259,000 citizensexpand the economy of their communities, by assisting in locating over$3.1 billion to invest in their businesses, and, in the process, create and saveover 121,900 New York jobs. The SBDC helps dreamers overcome obstaclesand build futures through practical, hands-on experience, helping to illustratethe fact that in business, as in life, you cannot go it alone.

The SBDC is constantly evolving services to respond to our dynamic smallbusiness sector. Examples include the International Business Program,opening opportunities for New York companies in China, the VeteransBusiness Outreach Program, helping New York’s veterans and members ofactive Reserve and Guard units start or sustain their businesses, and finally,Economic Transition Assistance for regions impacted by dislocations.

We see the SBDC, in cooperation with its partners and the State University,continuing to play a pivotal role in our collective future, illustrating the truththat our destiny will never be a path to follow, but a trail to blaze.

Eliot Spitzer, Governor,New York State

Governor Eliot Spitzer

messagefrom the governor

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lems, as well as encouraging theformation of high technologycompanies and manufacturing inNew York.

Since the program was establishedin 1984, the SBDC has workedwith more than 225599,,000000 NNeewwYYoorrkkeerrss, helping them locate oovveerr$$33..11 bbiilllliioonn to start or grow theirbusinesses, and creating or savingmore than 112211,,880000 jjoobbss.

The State University of New York(SUNY) administers the SBDC,and the SBDC’s network of 23 integrated service delivery centerslocated on SUNY campuses as wellas the campuses of SUNY’s educa-tional partners, including CityUniversity of New York (CUNY)and private universities.

Any New York resident who wantsto start a small business – orimprove the performance of anexisting business –– can make anappointment at any SBDC RegionalOffice. Clients receive personalized,confidential business counseling andtraining, and focused, industry-spe-cific research related to the successof his or her business.

Several years ago, the SBDC imple-mented an electronic Request forCounseling form that enables anyNYS citizen to request assistance viathe Internet 24/7. Now the SBDChas implemented a Request forElectronic Counseling that enablesindividuals to receive assistance viaemail. Technology enhancementsare helping extend access to SBDC

For over two

decades, the

New York State

Small Business

Development

Center has been

providing New York

entrepreneurs and

small businesses

with pro bono,

confidential busi-

ness counseling,

training, and

industry-specific

business research

of the highest

quality.

Education,Entrepreneurship,EconomicDevelopmentThe SBDC mission is to counseland assist small business owners andthose planning to go into businesswith the help they need to be suc-cessful. SBDC Business Advisors do not supply the business decisionsor judgments; rather, they providethe education and tools needed sothat owners can make their owninformed business decisions. SBDCBusiness Advisors will make recom-mendations and suggestions asappropriate, based on their extensivebusiness training, experiences,and resources to assist you in yourbusiness decisions.

For over two decades, the New YorkState Small Business DevelopmentCenter (NYS/ SBDC) has providedNew York entrepreneurs and smallbusinesses with the highest quality,pro bono, confidential businesscounseling, training, and industry-specific business research.

Funded by a public-private partner-ship consisting of the U.S. SmallBusiness Administration, New YorkState, local communities, and pri-vate industry, as well as host educa-tional institutions, the SBDC worksto foster New York’s innovationeconomy by encouraging the appli-cation of technology-based solutionsto a wide range of business prob-

services far beyond traditional coun-seling hours and locations.

Approximately 50 percent of thebusinesses the SBDC assists areenterprises more than five years oldthat need help resolving marketing,financial, inventory, personnel,management or succession issuesthat are impacting profitability.Helping to stabilize existing localeconomies while assisting entrepre-neurs with new business start-upscontributes to New York’s dynamicbusiness environment. The SBDC’sassistance in blazing a trail throughthe forest of financial, regulatory,customer and competitor informa-tion for entrepreneurs and smallbusiness owners helps build and sustain a stable small business community.

An Emphasis on SmallBusiness and New York’sInnovation Economy

The New York State SBDC repre-sents an extraordinary education-government-business partnershipthat has succeeded in helping NewYork businesses succeed for over 20years. One of the SBDC’s top pri-orities is helping technology-basedbusinesses thrive in New York’s 21stCentury innovation economy.There are multiple reasons for thispriority. Among them:

Businesses based on advanced tech-nologies have higher growth poten-tial for their owners and for theState. Historically, high-technolo-

gy-based businesses provide morethan competitive salaries for theirworkers and are environmentallyfriendly. Higher technology com-panies require an educated work-force, and New York annually pro-duces more advanced degree recipi-ents – and more graduates in scienceand engineering – than almost anyother state.

As a consequence, the SBDC seeksout alliances with organizations thatcan help provide technical and/orengineering assistance for entrepre-neurs. SBDC regional centers onLong Island, in the Southern Tier,and in the Hudson River Valleyhave long-standing alliances withcampus, regional, and professionalorganizations with a technologyfocus. Several of the regional centersparticipate in campus-based incuba-tors that provide entrepreneurs witha supportive infrastructure and ser-vices, including business counseling.The SBDC Central Office is inves-tigating a future alliance with theBusiness Incubator Association ofNew York State.

SBDC Business Advisors, whilecounseling clients, always advocatefor appropriate computer technolo-gy to help entrepreneurs solve mar-keting, management, financial, andinventory control problems. Forexample, the computer software thatis currently available to small busi-ness has literally revolutionized busi-ness bookkeeping and inventorycontrol with major cost benefits tobusiness. SBDC Advisors help

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In 1991, Paula Ford, and her husband,Doug, turned their passion for baking anddecorating specialty cookies into a home-based business they named Paula Ann’s.The Fords stressed quality, took a con-trolled approach to sales growth, andearned acclaim from clients that includedfamous Buffalo restaurants and the BuffaloBills professional football team. When itcame time to take their business (nowcalled Delightful Cookies) to the next levelin February 2006 – opening a retail bakeryand store – they sought out the services ofthe SBDC at Buffalo State College. SBDCBusiness Advisor Marilyn Roach helped theFords prepare a comprehensive businessplan and financial projections. The resultwas $75,000 in financing from a commer-cial lender, with an SBA-guaranteed termloan and a revolving line of credit. TheDelightful Cookies bakery, which opened inOctober 2006, consists of a lower levelwith kitchen and creative classrooms; themain floor dedicated to retail space; andoffices and warehousing on the upperfloor. The air is filled with the smell of gin-gerbread, a signature product. Gift bas-kets, gingerbread houses, and householdgadgets are available for sale. Says PaulaFord, “All of this was possible only throughthe amazing help provided by our SBDCBusiness Advisor Marilyn Roach. We will continue to work with the SBDC as we grow.”

Paula Ford

Buffalo

Dr. Kelly Gough had over 15 years’ experi-

ence working as a veterinarian in a

Rochester practice. About a year ago, she

decided it was time to venture out on her

own. She left the practice and started mak-

ing “house calls” to patients while she

worked out the details of a business plan.

Her banker recommended she take her

dream to the Brockport SBDC’s Outreach

Office, in downtown Rochester. SBDC

Business Advisor Jim Soufleris helped her

complete her business plan and present it

to the board of directors of the local

Industrial Development Agency handling

the SBA 504 program. The 504 program is

designed to provide funding for “bricks-

and-mortar” projects. Funding of

$740,000 was approved, and work started

on a state-of-the-art veterinary medicine

facility in Webster, NY. In spite of a fire

that slowed construction, The Village Vet

opened late in November and is going

strong. “I can’t say enough for the SBDC

and Jim Soufleris,” says Gough. “They are

business planning professionals dedicated

to entrepreneurship and the economic

development of our region.”

Dr. Kelly Gough

Brockport

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clients find technical assistanceproviders in the community, includ-ing experts on the host campus,when needed.

Beyond technology-oriented firms,and manufacturing, the SBDC pri-oritizes assistance to small exporters,companies in economically dis-tressed areas of New York, and pro-jects that advance the job develop-ment, investment, and economicgrowth priorities of New York State.

The SBDC places special emphasison helping New York veterans andmembers of National Guard andReserve units succeed in small business. These patriotic men andwomen sacrifice years of their livesto defend us. Some are called on tomake the ultimate sacrifice. We canrepay our debt to them, in a smallway, by working to see they enjoythe benefits of the American way oflife they have helped to preserve.For more information about theNew York SBDC’s VeteransBusiness Outreach Program, see the section on veterans later in thispublication.

In addition to veterans, the SBDCtargets women, minorities, peoplewith special needs, and underservedneighborhoods and segments of thepopulation with business assistanceservices tailored to their specificneeds.

A Focus on Customer Satisfaction

The SBDC asks all clients to evalu-ate the services provided by con-ducting post-counseling evaluationsurveys to find out how we canimprove services. Results from Year2006 surveys indicate that almost allclients are very satisfied:

• 93 percent said their inquiriesreceived prompt attention;

• 83 percent said they could nothave afforded private counseling ser-vices;

• 98 percent said they would recom-mend SBDC services to other smallbusinesses; and

• 92 percent said they received specific recommendations thatimproved the bottom line of theirbusinesses.

Another measure of the program isits fiscal effectiveness, which relatesto the satisfaction of a different setof customers, SBDC’s federal andstate funding sponsors. An indepen-dent review of the effectiveness ofthe SBDC program is conducted bi-annually by Dr. James Chrisman atMississippi State University’sDepartment of Management andInformation Systems. Dr.Chrisman’s latest report, datedSeptember 2006, stated that “com-pared to the total cost of operatingthe SBDC, the consulting providedto both established business andpre-venture clients generated

Since 1889, the R. A. Miller HardwoodCompany, in North Tonawanda, hasexcelled in manufacturing and wholesalingthe highest quality kiln-dried hardwoods tolumber companies throughout the UnitedStates, Canada, Europe, and the Far East.Export amounts to approximately 25 per-cent of its sales volume, and is growing.Employing 53 workers, this is a fourth-generation, family-owned New York com-pany. As a result of a devastating fire inSeptember 2005, Miller Hardwood lost allof its manufacturing capabilities. Two boil-er rooms, two kilns, and a pre-dryer weredestroyed. Five other kilns sustainedextensive damage. For the first time in itshistory, Miller Hardwood was forced to layoff employees. Miller Hardwood consid-ered rebuilding in other parts of New York,as well as in Pennsylvania and WestVirginia; but management felt that employ-ees were the heart of the business and didnot want to relocate. Owners RobertMiller, Christopher Miller, and ElizabethBarnett were referred to the SBDC by theLumber City Development Corporation(LCDC) and the Niagara County IndustrialDevelopment Agency (NCIDA). NiagaraSBDC Business Advisor Deanna AlterioBrennen worked with management on abusiness plan and filing numerous loanand grant applications. The result was$2,647,000 in funding that will allow MillerHardwood to rebuild manufacturing capa-bility, rehire laid-off employees, and addemployees to regain sales momentum and maintain a 119-year tradition.

(Left to right) Robert Miller, KevinBarnett, Chris Miller of Miller Hardwood

Niagara

$12.10 in tax revenues in one yearfor every $1 spent on the entire pro-gram.” In addition, the report notesthat “every dollar expended on theSBDC operation was leveraged byapproximately $58.16 in new capi-tal raised from external sources.”SBDC’s funding sponsors are quitesatisfied with the numbers reportedby Dr. Chrisman.

Award-WinningProfessional BusinessAdvisors

At the heart of every SBDC productand service are the talented, dedicat-ed Business Advisors who have justone goal in mind: assisting smallbusiness owners and those whowant to become small business own-ers. SBDC Business Advisorsundergo a rigorous professionaldevelopment and certificationprocess to continually improve theirexpertise and sharpen their skills.The ambitious SBDC BusinessCertification Program has been aug-mented by an AdvancedCertification Program, whichrequires at least two years of addi-tional training and experience, aswell as active participation instatewide program initiatives and inthe local business community.

The SBDC’s support of continuouslearning results in Business Advisorswith more in-depth knowledge,experience, and expertise. Theseskills enable SBDC Advisors toguide entrepreneurs and small busi-

ness owners through the rough ter-rain often encountered while explor-ing new business opportunities.

All SBDC professionals are versedin the latest technology to assistwith financial and managementtools available to small businesses.SBDC Advisors openly advocate for the adoption of appropriatemoney-saving technology for theirclients’ businesses. SBDC BusinessAdvisors identify business technolo-gy options that best suit small busi-ness needs. The SBDC Advisor willreview software or hardware optionsand lead the small business owner to the best decision for his or herbusiness.

SBDC Advisors are effective guidesfor clients, not decision-makers. Itis up to the client to choose the bestproduct and price according to hisor her needs. Advisors do not makerecommendations regarding thepurchase of goods or services fromany one individual or firm. TheSBDC does not endorse any singleindividual or business supplier.Likewise, if a client needs to retainlegal, business accounting, or busi-ness insurance help (and almostevery business requires theseresources at some time), the SBDCprovides a list of professionals in theclient’s area, and characteristics toconsider when choosing an attorneyor CPA or other professional. It isup to the client to decide which service providers best suit the smallbusiness’ needs and budget.

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After 16 years in industry, a life-threateningillness helped convince Robert Skelly that itwas time to start a business of his own.He knew he wanted to open a liquor storein the village of Baldwinsville. He found aliquor store for sale in the Seneca KnollsPlaza, south of the town. With help fromOnondaga SBDC Business Advisor JoanPowers, Skelly purchased the businesswith a $38,000 home equity loan and$6,000 of his own money. Roberts Wineand Spirits had a grand re-opening in timefor the 2003 holiday season. In a little overtwo years, it became clear that the storeneeded to expand. A new space in the mallthat almost tripled the size of the storefrom 750 to 2185 square feet becameavailable, and Skelly returned to the SBDCfor assistance. Joan Powers helped himwith a business plan and the SBDCResearch Network provided valuable salesdata on similar businesses. The result wasan SBA-guaranteed loan for $125,000 froma local bank to fund expansion and forworking capital. Skelly was able to hiretwo more part-time employees. RobertsWine and Spirits continues to grow at aphenomenal rate, fueled by services like a wine club and the ability to locate hard-to-find products that customers request.Says Skelly, “The SBDC is the place to go, not just for starting a business, but for creative assistance in helping youexpand and grow.”

Robert Skelly

Onondaga

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At the Annual Staff Developmentevent this year, the SBDC recog-nized seven outstanding BusinessAdvisors from across the state with“Advisor of the Year” Awards, signi-fying consistent excellence in profes-sional services, outcomes, and clientsatisfaction. A key determinant inmaking these awards is the degree of satisfaction expressed by theAdvisor’s clients throughout the pastyear. Walter Reid (Farmingdale)received the top honor in 2006, followed by John Narciso(Farmingdale), Bill Greishober(Buffalo), Myriam Bouchard (Mid-Hudson), Patricia Karlak (StonyBrook), Ulas Neftci (MidtownManhattan), and Serge Spak(Binghamton).

Sam Kandel, Business Advisor atthe Mid-Hudson SBDC, located atUlster Community College, washonored with the “Star PerformerAward” by the Association of SmallBusiness Development Centers atthe national convention in Houstonin September. In just the last twoyears, Kandel has counseled morethan 450 small business owners andentrepreneurs. The businesses hehas assisted have invested over $18million in capital in their local communities, and have created andsaved over 325 jobs. He is symbolicof the dedication and expertise ofthe SBDC’s extraordinary cadre ofBusiness Advisors.

A Diverse Clientele

Despite the perception that theNYS/SBDC focuses primarily on“mom and pop” enterprises just get-ting started, the program actuallyworks with an equal number ofstart-up and existing businesses.SBDC-assisted businesses, whetherstart-up or existing, are exceptional-ly diverse, including high tech man-ufacturers, pizza parlors and delis,software developers, artists andcrafters, physicians, clothing design-ers, inventors of state-of-the-artprocesses and devices, and othersrepresenting innumerable industryniches.

The diversity of the businessesassisted is testimony to the range of expertise among SBDC CenterDirectors and Business Advisors.Did you know, for example, thatamong the businesses assisted by the SBDC are a high profile bicyclemanufacturer; a landmark hotelrestored to 1912 elegance; severalgourmet food creators; a mine thatsells tons of rock salt to NYS andnearby states; several restaurants and eclectic cafes; a manufacturer ofarmor plating for Humvees; a farmthat converts cow manure into elec-tricity; a research firm developing ahuman blood replacement; a world-famous designer of women’s cloth-ing; a NY harbor tug boat operator;and a company that monitors driver licenses for corporations andgovernment agencies; to name just a few.

Bobby Kumar, a licensed optometrist with over 10 years’ experience in the field,discovered the SBDC at LaGuardiaCommunity College on the Internet. His dream was to open his own completeoptical service business, and he had signeda lease on roughly 900-square-feet ofoffice space in Jackson Heights, but need-ed help with business start-up issues,including business planning. LaGuardiaSBDC Business Advisor Brian Gurskiworked closely with Kumar on his busi-ness-marketing plan; he advised Kumar oninsurance issues specific to his industry,and he led him to resources to help himacquire business licenses and permits.Working with budget worksheets, theydetermined that the business needed aninitial capital investment of $45,000. Aprospective business site visit wasarranged, involving a loan officer from alocal commercial bank. The result is thatthe bank funding has been approved in theamount of $75,000, and Laxmi AmericanOptical has opened in Jackson Heights,creating five jobs and offering a full line ofeyewear as well as optical examinations. “I am so grateful I learned about BrianGurski and the SBDC,” says Kumar. “Theyhelped me create a practical plan to openmy business and helped me prepare forand get financing. I know I can alwayscome back to them for more help.”

Dr. Bobby Kumar

LaGuardia

The NYS/SBDC recognizes out-standing small businesses as successstories in this report and presentsEntrepreneur of the Year awards atits annual conference. In addition, a committee of regional centerdirectors and advisors selects “thebest of the best” for induction intothe SBDC Client Hall of Fame thatwas established in 2004. As of2006, 35 exceptional businesseshave been named to the Hall ofFame. You can read about many ofSBDC’s diverse and successful smallbusinesses at the NYS/SBDC Website, www.nyssbdc.org.

The SBDC Small BusinessHall of Fame

In 2004, the SBDC inaugurated the NYS/SBDC Hall of Fame andinducted 32 outstanding New Yorksmall businesses. All inductees werelong-term clients of the SBDC, and had made a success of theirbusinesses over the course of years,overcoming obstacles and adjustingin response to changing market conditions. In addition, and just asimportant, these companies hadmade significant economic andpublic service contributions to theircommunities. In their deep com-munity involvement, each Hall ofFame inductee symbolizes the long-term impact of a healthy andvibrant small business environment:success and prosperity for the entre-preneur/owner and employees, aswell as of the New York communi-

ties in which they do business, andfor the State as a whole. The SBDCmeasures its success one entrepre-neur at a time, and each Hall ofFame inductee represents thousandsof New Yorkers who contribute tothe economic health of the state by starting or expanding a smallbusiness.

Three businesses were formallyinducted into the Hall of Fame in2006:

License Monitor, a rapidly growinghigh tech company that electroni-cally reviews driving records to thebenefit of companies that dependon safety-conscious drivers for thedelivery of goods and services.Michael Garvey, founder and ownerof License Monitor, is a client of theWestchester SBDC.

Matrix Imaging Solutions inSanborn NY, provides customizeddocument processing and mailing asan outsource function. Its officers,Alan Olivero,, Richard Profeta,David Basta, and Daniel Hare areclients of the Niagara SBDC.

Relax on Cloud Nine began as amassage therapy business and grewinto a full service spa. DoreenZayer, owner and operator of Relaxon Cloud Nine, is a client of theStaten Island SBDC.

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Len and Terry Bernardo were determined tobuild a large family entertainment facility –with a difference. They wanted a placewhere young people in Accord, NY andsurrounding areas could find not onlyhealthy entertainment, but a chance forpersonal growth in a congenial atmos-phere. The Bernardos were referred to theSBDC by the Ulster County DevelopmentCenter. Mid-Hudson SBDC BusinessAdvisor Sam Kandel helped them prepare a business plan and financial projections,and make contact with various fundingsources. The Bernardos decided to invest$2.1 million of their own to make theirdream a reality. Skate Time 209 opened inApril 2006. It contains a new 11,000-square-foot roller skating floor, and a10,000-square foot skateboard park. Kidscan take classes in artistic skating, speedskating, hockey, and skateboarding. Thehigh-tech arcade offers only non-violentgames. Students can receive professionalmentoring from volunteer coaches. SkateTime is a great success. At the end of May,the Bernardos received the Ulster CountyYouth Bureau Community Asset BuilderAward, as well as Certificates of Merit fromthe New York State Assembly and StateSenator John J. Bonacic. Seven full-timeand 31 part-time jobs were created. SaysTerry Bernardo, “We wouldn‘t have beenable to make this dream come true withoutSam Kandel and the SBDC.”

Len and Terry Bernardo

Mid-Hudson

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A Web-BasedManagement TrackingSystem

One of the keys to success for theSBDC over the past 22 years hasbeen an electronic managementtracking system, called MQS (forManagement Quality System).MQS enables the 23 regional officesto manage client relationships andclient-based information. Thisstatewide tracking enables theSBDC to anticipate changes andtrends in the New York small busi-ness community, generate and dis-tribute accurate and detailed period-ic reports on progress and servicesrendered, and ensure that individualclients receive the highest qualitybusiness counseling, training, andresearch. MQS maintains therecords of over 259,000 New Yorkbusinesses and entrepreneurs thathave been served.

Launched on April 15, 2005, thenext logical stage in this evolution,WebMQS empowers regional center and central office staff toenter data and review counselingand training activity in a real timeenvironment via a secure Web site.The real-time nature of the systemprovides an up-to-the-minute viewof the entire NYS/SBDC network,expediting assessment of services.The new system enables programleaders to routinely conduct a highlyaccurate analysis of demographicsand economic trends across theentire state.

Visit the SBDC atwww.nyssbdc.org

The New York State SBDC Website strives to use technology to fur-ther small business success, educatevisitors, and inspire and attractpotential clients. A major revisionof the Web site was launched at theend of 2006. The updated site tellsthe stories of SBDC successes byinterweaving photos and narrativesabout our clients, and offers on thehome page a dynamic list of recentarticles featuring the SBDC.Additionally, a new “OnlineResource Center” presents a widerange of SBDC publications,resources, and related links to sitevisitors.

The SBDC Web site is a valuabletool for reaching new clients. Byvisiting the site, an individual canmake an appointment to meet witha Business Advisor in person. Therevised site also provides visitors theopportunity to ask a question of aBusiness Advisor – often the firststep to a counseling relationship.

Several features of the Web siteenable visitors to view real-time dataand information about the SBDC.The SBDC’s impact on the state’seconomy is updated on a real-timebasis, displaying economic impactfor the state as a whole, as well asfor each of the 23 regional centers.Real-time updates for statewidebusiness training events are availablethrough a link on the home page.

Beverly Welsh was pursuing a successfulcareer in finance and advertising when shewas laid off after a slowdown in the localeconomy due to troop redeployments atnearby Fort Drum. She decided this wasan opportunity to pursue a longtime dreamfor self-employment. Qualifying under theDETA – Defense Economic TransitionAssistance – program, Welsh enrolled inthe Entrepreneurial Training Course at theWatertown SBDC, and worked with SBDCBusiness Advisor Sarah O’Connell on awinning business plan and financial projec-tions. The result was a micro loan fromthe Jefferson County Job DevelopmentCorporation that enabled her to hire twoemployees, and open “Dust-Busterz” jani-torial service. Two years later, when busi-ness opportunities opened up at FortDrum, Welsh worked with O’Connell toregister with the Federal government’sCentral Contractor Registry (CCR), as wellas the SBA HubZone program. When FortDrum hired a private company to overseeexpansion and maintenance of on-posthousing, Welsh used the CCR andHubZone certifications to win a $168,000subcontract for construction cleaning. She has grown her staff to 12 employees,and continues to expand her business. In 2005, Welsh won a Small BusinessExcellence Award from the SBA’s SyracuseDistrict. Welsh says, “I came to the SBDCwhen I didn’t know where to begin. Now I have a successful company, and I still depend on Sarah O’Connell for business advice.”

Beverly Welsh

Watertown

Details for each event are housed ina database accessible to all users andupdated remotely by all regionalcenters. Each center can postpone,reschedule, or cancel events whennecessary. These features deliver themost current information to Website users at their desktops.

Expanding Opportunitiesfor Small Businesses in theGlobal Market

Developing business in the globalmarketplace, and exporting goodsand services to markets overseas,represent a major growth opportu-nity for small businesses in NewYork’s 21st -century innovationeconomy.

The NYS/SBDC’s InternationalBusiness Program (IBP) is strategi-cally positioned to help small- andmedium-sized businesses in NewYork State take advantage of tradeand business development opportu-nities in the global marketplace.The SBDC has nurtured contacts,resources, and an unparalleled net-work within government and busi-ness circles in China on local,regional, and national levels. Withrapidly changing economic condi-tions in China, the SBDC/IBP isworking with existing partnershipsand developing new cooperativearrangements, so that optimal tradeopportunities will be provided toSBDC clients who are interested oractive in international business andtrade.

Each year, the IBP provides businesscounseling to hundreds of clientsfor international trade, market iden-tification and penetration, feasibilityanalysis, project outsourcing, finan-cial issues, regulations, customs,taxes, tariffs, and trade shows.Agreements were signed byNYS/SBDC and the Ministry ofScience and Technology, industrialparks, and local governmental agen-cies in China. By entering intocooperative agreements, theNYS/SBDC has helped create andmaximize trade and business oppor-tunities for more small businesses in a cost-effective way.

For example, with the assistance ofthe IBP, Gorbel Inc., headquarteredin Fishers, New York is expandingmarkets and manufacturing opera-tions into China. Founded in 1977– and with factories in New Yorkand Alabama – Gorbel is a worldleader in the specialized craneindustry, dedicated to providinginnovative, high-quality overheadmaterials handling solutions formoving products through variousmanufacturing processes. Gorbelmaintains an extensive dealer net-work and its products are a main-stay in mechanical and electricalindustries. Gorbel built a facility inthe Tianjin economic developmentarea, roughly two hours east ofBeijing, to serve Chinese markets.

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When Penny T. Richardson started PennyT’s Express Van Service in early 2004, thebusiness barely grew. She went for help tothe Small Business Development Center atYork College, in Queens. Business AdvisorBrian Yeung started by contacting theSBDC Research Network. The InformationSpecialists there provided a wealth ofindustry-specific data, including trade peri-odicals, pertinent DOT regulations, andtrucking industry trends. She needed alarger truck and that required approximate-ly $25,000 in capital. Yeung recommendedthe SBA Community Express Loan pro-gram, designed for small companies withlimited resources. Yeung helped with abusiness plan and loan application, andtwo days after she submitted the loanrequest, a commercial bank granted theloan. As required by the SBA program,Richardson will continue revising andupdating her business plan. She will alsointegrate technology into her operations,including the QuickBooks accounting sys-tem. She will rent warehouse space tostore cargos, turning her company into aone-stop shop for customers. Richardsonis now applying for women-owned busi-ness certification that will qualify her forgovernment contracts. Says Richardson,“I know of no organization better qualifiedor positioned to help your small business.Brian Yeung and the SBDC have made allthe difference for me.”

SBDC Business Advisor Brian Yeung with Penny Richardson with her son, Jordon Biggs

York

10

In the past year, the IBP collaborat-ed with SBDC regional centers toorganize training sessions, seminars,and business meetings that focus onbusiness information, opportunities,challenges, and practices involved ininternational business and tradedevelopment. The IBP specialisttranslated two SBDC brochuresinto Chinese, both of which can beread at the NYS/SBDC Web site.

This year, the IBP successfully organized the “US-China TradeBusiness Development Conference”in Albany, an event that providedthe latest information on opportu-nities for business and trade, pro-moted an exchange and cooperationbetween businesses of both sides,and maximized trade opportunitiesthrough matchmaking meetings.The two-day event helped NewYork companies initiate and expandtrade in Chinese markets as well asdevelop new global business strate-gies. The conference paved the wayfor a similar event to be held inwestern New York in 2007 involv-ing New York small business ownersand officials of the U.S. andChinese government and industry.

In November, the IBP assisted a delegation from the City Universityof New York (CUNY) – consistingof the CUNY Chancellor and fivesenior officials of the university –in visiting Jiangsu Province toexplore opportunities for collabora-tion between CUNY and Chineseuniversities, as part of CUNY’s“Decade of Science Initiative”.

In accordance with the US govern-ment’s efforts for expanding overseasmarkets and a free trade agreementwith other countries, the IBP is currently exploring opportunities in Mexico, South and CentralAmerica, Europe, and Asian coun-tries other than China. Severalmeetings with representatives fromthese regions have been held andcontacts established. This is animportant step in efforts to expandtrade and create jobs for New York’ssmall businesses.

For more information on theInternational Business Program,consult the NYS/SBDC Web site, at www.nyssbdc.org. At the SBDC Web site, click on the“International” button at the bottom of the front page for information.

Adapting to the Times —the SBDC ResearchNetwork

Another way in which the SBDCadvances New York’s innovationeconomy is through the ResearchNetwork. Since 1991, the SBDCResearch Network has served as theinformation clearinghouse forSBDC clients, as well as for partnerswithin SBA regional offices, theState University of New York, thestate government, and other affili-ates. Its highly-trained staff pro-vides intensive, value-added researchservices in response to thousands ofquestions that spring from the cre-

Brothers Chuck and Michael Sadallahwanted to open a retail bakery and coffeeshop in New Hartford, NY. They carefullyresearched Daylight Donuts, a unique fran-chise that sells bakery equipment and rawmaterials for baked goods; they require nofranchise fee. When the opportunity cameup to purchase a site, they needed financ-ing to construct the building, purchaseequipment, and for working capital. Aregional bank referred the brothers to theMohawk Valley SBDC, where SBDC SeniorBusiness Advisor Norm Ruzinsky workedwith them to prepare a winning businessplan narrative and three years of projectedfinancials. The plan quickly won approvalfor funding of $545,000, consisting of a$425,000 conventional business loan and$120,000 in personal equity. DaylightDonuts opened on December 8, 2005.When an opportunity arose in July 2006for the Sadallas to open a second store, thebrothers returned to the SBDC and askedRuzinsky to do an analysis of expectedcosts. His financial projections indicatedthat it would be a good fit. They were ableto borrow an additional $50,000 from acommercial lender and hired 14 additionalemployees – six full-time and 8 part time –for the new location. “The SBDC are thepeople to go to if you want to start a busi-ness,” says Michael Sadallah, “and they are also the people to go to if you want to expand your business.”

Chuck Sadallah

Mohawk Valley

ative imaginations of New YorkState’s entrepreneurs.

In order to maintain the high levelof service demanded by SBDCclientele, the Research Networklibrarians must act like small busi-ness owners who are striving forsuccess: they must listen to theircustomers. So, in early 2006, thelibrary conducted a needs assess-ment survey of New York’s SBDCBusiness Advisors. Among the dis-coveries was an overwhelming desireto have more information deliveredelectronically.

Soon thereafter, the library obtaineda multifunction printer that, amongother things, enables rapid scanningof print-based items into PortableDocument Format (PDF) files(without violating U.S. copyrightlaw, of course). These digital filesare then attached to an e-mail andsent to the Advisor that requestedthe information.

Very large PDF files, however, can-not be handled by certain electronicmail servers. As a response to this,the Research Network commis-sioned a password-protected site onthe SBDC Web site, wherein a verylarge PDF file could be “dropped”by RN staff, and then retrieved bythe Advisor who requested theinformation. This “documentdownload” site is maintained by theSBDC’s Web content manager,who, for security purposes, deletesolder files every Friday.

The Research Network also adaptedthe spirit of digital conversion to its own internal operations. An outdated, paper-driven system oftracking information requests wasreplaced in late summer 2006 witha Web-driven portal system.Requests are now tracked online,which has greatly improved thelibrary’s efficiency.

With the recent changes, theResearch Network operates in anearly paperless environment.Delivery time for information hasimproved, and paper costs in theorganization have decreased considerably.

In addition to providing researchservices, the staff of the ResearchNetwork is immersed in other pro-jects that serve the NYS/SBDC’smission. One of these projectsrelated to signage. On the heels ofthe publication of the “What’s YourSignage?” handbook, the SBDCembarked on the development of aWeb site that features the mostsalient features of the book. In earlyOctober 2006, the What’s YourSignage? Web site was launched.Located at http://www.whatsy-oursignage.com, the site is a collab-oration between the New YorkSBDC and the International SignAssociation (ISA). It enables smallbusiness owners across the county to learn more about this complexsubject. In addition, entrepreneurscan electronically communicatetheir signage needs to several ISAmember companies in their areathrough the Web site.

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New York State produces 25 millionbushels of apples annually. Part of thishuge industry, the Goold Orchard inRensselaer County has been growing andmerchandising the highest-quality applesand related products since 1910. Witheight full-time and 70 seasonal employees,Goold gives back to the communitythrough the NYS Farm To School Program,supplying local schools with fresh apples.The company applied for a grant to pro-duce and sell a line of bottled wine underthe U.S. Department of Agriculture’s ValueAdded Business Producer Grant; but thisrequired a strong business plan anddetailed financial projections, so Goold’sowners sought out SBDC expertise at theUniversity at Albany. SBDC BusinessAdvisor Homer Lavoie worked closely withSue Goold Miller and Ed Miller to docu-ment the new venture successfully. Theplan enabled the company to apply formatching funds from the USDA and theNYS Dept of Agriculture & Markets to purchase commercial-grade equipment and supplies. In September 2006, GooldOrchards received the NYS FarmlandViability Grant, which helped launch theirnew winery. Sales have exceeded projec-tions, and Goold is purchasing additionalequipment and supplies. “Homer Lavoieand the SBDC were a great help to us,”said Sue Goold Miller. “They understandwhat businesses need to succeed.”

Sue Goold Miller with SBDC BusinessAdvisor Homer Lavoie

Albany

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Continuing technological advance-ments enable small businesses tocompete in the global marketplace.The New York SBDC is committedto guiding small business throughthe changing international businessenvironment, and will continue toinvest in the tools that enable theResearch Network to provide theresearch required by businesses inNew York State.

Saluting and SupportingNew York State Veterans

In 1999, the NYS/SBDC was oneof four organizations in the countryselected by the US Small BusinessAdministration to participate in theVeterans Business OutreachProgram (VBOP). TheNYS/SBDC VBOP continues toprovide outreach in the form of tar-geted business training, counseling,and mentoring for veterans – ser-vice-disabled veterans in particular.The focus on veterans who want tostart their own businesses or want to improve the profitability of anexisting business is particularlytimely during this period of wide-spread military deployment. In NewYork at this time, the need is partic-ularly acute, as seventy percent ofthe New Yorkers wearing militaryuniforms are in the Reserve andNational Guard. The small businessowners in this group have been sig-nificantly affected by deployment toAfghanistan and Iraq.

There are special Veterans’Business Outreach Centers at theFarmingdale, Buffalo, and AlbanySBDC regional centers, each with a dedicated Veterans’ BusinessAdvisor. At the veterans’ pageon the SBDC website –www.nyssbdc.org/vboc – you will find information about VBOPand an easy-to-fill-out request forbusiness counseling.

An ancillary VBOP program,Veterans Behind Bars (VBB), is anSBDC partnership program withthe New York State Department ofCorrectional Services. VBB servicesare directed at veterans who areincarcerated and within three yearsof release or parole. At GrovelandCorrectional Facility, a medium-security facility near Rochester,SBDC Business Advisors providefree business planning seminars andbusiness plan preparation work-shops to veterans who sign up forthe voluntary program. TheDepartment of CorrectionalServices has noted the positive influ-ence the entrepreneurial preparationhas had upon the veteran inmatepopulation, and is interested inexpanding the program to otherfacilities in the state.

In six years, the NYS/SBDC’saward-winning program has provid-ed counseling to more than 8,000veterans, trained nearly 8,000 veter-ans, and located over $117 millionin investment funding for veterans’businesses. The US Small BusinessAdministration has called the New

Harley Davidson of Jamestown has been afamily-owned business since 1975. DavidReid, founder of the company, has beengradually turning over the management ofthe company to his two sons, Brian andKevin. A while ago, the family decided thatin order to remain competitive, and retainfuture growth potential, the company need-ed to expand into a larger facility in a betterlocation, with improved product displayand service capabilities and more customeramenities. The Reids took their dreams tothe Jamestown SBDC at JamestownCommunity College. SBDC BusinessAdvisor Herb Rice worked with them todevelop a comprehensive business planwith detailed financial projections. Theresult was $3.2 million in funding, includ-ing $700,000 in owner equity, $2.2 millionfrom a commercial bank, and $300,000from the local IDA. The new five- acre,28,000-square-foot facility—scheduled toopen in fall of 2007—will include a servicearea with state-of-the-art equipment, and atemperature- and humidity-controlled cus-tomer cycle storage area. The dealershipcurrently employs 20 people full-time, andanother six part-time. The expansionshould create another five jobs. Says BrianReid, “There is no aspect of businessgrowth and management that the SBDC isnot well versed in. Herb Rice is very pro-fessional and has helped us enormously.”

Brian and Kevin Reid with SBDCBusiness Advisor Herb Rice (center)

Jamestown

readiness in assisting veteransthrough the end of the decade andbeyond, as long as assistance isneeded.

Transitioning DefenseIndustries to CommercialEnterprises

The Defense Economic TransitionAssistance (DETA) program is amajor tool for assisting manufactur-ers and other businesses in NewYork. DETA was authorized by theUS Small Business Administrationin 1995 to enable SBDCs to assistsmall businesses impacted by reduc-tions in defense spending and theclosing of military bases. DETAassists not only manufacturers nega-tively impacted by shifts in militarymateriel priorities; it also providesfunds to assist businesses in commu-nities adversely affected by troopdeployments.

The New York State DETA pro-gram provides an array of no-costbusiness services to help repositiondefense-impacted businesses tocommercial markets. Initially, fourSBDC DETA centers were strategi-cally positioned throughout NewYork State – in Utica, Farmingdale,Plattsburgh, and Stony Brook –to provide assistance to heavilyimpacted areas. As the Utica andPlattsburgh areas recovered frombase realignments and closures, theDETA program was re-focused toother areas of the state. In 2003,

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York SBDC program a nationalmodel for providing business assistance and targeted outreach to veterans.

One of the most innovative devel-opments within the New YorkVBOP is the creation of a Web-based or CD-ROM-based interac-tive educational program that teach-es veterans how to be successfulentrepreneurs and small businessowners. “EntreSkills for Veterans TM”is based on the successful EntreSkills TM program developed by the NYS/SBDC’s Office ofEntrepreneurial Education (oe2)implemented in over 150 highschools across New York. VBOPBusiness Advisors developed anupgraded and targeted version ofthe material to be more appropriatefor veterans and active military per-sonnel. EntreSkills for Veterans TM

takes veterans through cumulativestages as it helps them refine anddevelop a small business concept,address legal and marketing issues,prepare financial statements, and,ultimately, prepare a finished busi-ness plan. The SBDC is workingwith the New York State Office of Veterans Affairs to qualifyEntreSkills for Veterans TM for veterans’ educational credit.

In June 2005, the New York SBDCre-upped for five more years of ser-vice to veterans, with funding assis-tance from the US Small BusinessAdministration. The NYS/SBDC isprepared to maintain a high state of

Wayne Brown – a US Army veteran –and his daughter, Christina, build bridges.Christina runs Echo Bridge, Inc., a design,sales, and engineering company. Wayneruns Decker, Inc., a steel truss bridge fabri-cation and construction company in Elmira.Over the last quarter-century, these family-owned businesses have completed over700 vehicular and pedestrian bridge pro-jects throughout the Northeast. The twocompanies have succeeded by offeringhigh-quality, innovative bridge design, pre-fabrication, and installation practices tocustomers that include state, county, andlocal municipalities, golf courses, andhousing developers. When it came time toposition the businesses for future growth,Corning SBDC Business Advisor ScottBloor worked with the browns to develop awinning business plan and loan proposalthat resulted in an SBA-guaranteed loanand line of credit totaling over $450,000.The financing enabled the companies toretain 12 jobs, target new markets, andplan for expansion over the next quarter-century and beyond. “I’d recommend theSBDC to anyone,” says Christina Brown.“Scott Bloor helped us get through a chal-lenging process. They know what it takesto help a business grow.”

Wayne Brown

Corning

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the NYS/SBDC expanded servicesto Watertown, and in 2005 toBinghamton.

The DETA centers have createdstrategic partnerships with organiza-tions statewide – including aero-space industry associations andtechnology research and develop-ment programs – to address issuesimpacting businesses adverselyaffected by reductions in defensespending. The DETA staff routine-ly develops new programs, seminars,and strategies to assist companies inincreasing productivity, efficiency,and competitiveness in commercialmarkets. The DETA centers helpbusinesses apply new technologies(including technology-based inven-tory control), identify new domesticand foreign markets for products,and redesign of operations.

Since its inception in 1995, theNYS DETA Program has providedin-depth business counseling tomore than 4,555 companiesadversely affected by defense cut-backs. Assistance is now focused onhelping companies and individualstransition from defense industry-related sales to commercial markets.As a direct result of the NYS/SBDCDETA program, clients have accessedand invested over $112 million incapital and more than 3,900 jobshave been saved or created.

You can access additional information about DETA atwww.nyssbdc.org/services/MDDC/mddc.html.

Empowering New Yorkerswith Disabilities

The SBDC assists approximately500 self-identified disabled clientsevery year with business planning,market strategies, and help in locat-ing capital for business financing. Inan average year, these clients investabout $1.5 million in their NewYork State businesses. Since itsinception, the SBDC has assistedmore than 7,400 disabled clients,and about 2, 500 of those individu-als were referred to the SBDC bythe Office of Vocational andEducational Services for Individualswith Disabilities (VESID). Between1984 and 2006, disabled clientsworking with the NYS/SBDCinvested more than $32 million inbusinesses owned by disabled NewYorkers. Over $9.6 million hasgone to VESID clients.

VESID is a NYS Department ofEducation program designed toreturn individuals with disabilitiesto the work force through self-employment opportunities. VESIDdoes this by making funds available,primarily for business-related equip-ment to qualified individuals withdisabilities. Once they qualify,VESID clients are assigned to anSBDC Business Advisor, who helpsthem write a business plan to applyfor bank financing. Self-employ-ment opportunities range, on aver-age, from $6,000 to $12,000 perclient for individuals referred byVESID. Both the SBDC andVESID follow up after the client

Dan and Tina Mullin spent several yearsworking in the local restaurant trade, andalso provided Gouverneur, NY and the sur-rounding area with catering services duringthe summer months, specializing in out-door barbecues for individuals and organi-zations. Then, in 2005, the Mullins saw anew opportunity and seized it. They deter-mined they could expand their cateringbusiness into a 12-month service, as wellas offer a daily takeout menu that providedbusy working families with home-cookedmeals. The Mullins needed funding, andthey took their dream to the SBDC at SUNYCanton. SBDC Business Advisor MichelleCollins worked with them to develop abusiness plan and financial projections.When environmental problems wereuncovered at the site they proposed to pur-chase, the Mullins found an alternate loca-tion and Collins completely revised thefunding package to present to privateinvestors and commercial funding sources.They were approved for a total of $97,000in funding: $20,000 in personal equity,$30,000 from a private investor, and$47,000 from New York BusinessDevelopment Corporation. Mullin’sCatering and Take Out opened for businessin June 2006, providing employment forten. Says Tina Mullin, “Michelle Collinsand the SBDC were a tremendous help tous. They know what it takes to succeed in business.”

Dan and Tina Mullin

Canton

has been in business for six to twelvemonths. While these clients do not,relatively speaking, have the samedollar impact on the economy thatother groups may have, they eachrepresent a life transformed by self-employment and self sufficiency,and there is no way to attach a dollar figure to that.

The SBDC and the Western NewYork Independent Living Project,Inc. collaborated on a workbookentitled, Being Entrepreneurial; ABusiness Guide for ILCS, to provideinformation about for-profit busi-nesses to managers of independentliving centers (ILCs). ILCs serveindividuals with all kinds of disabili-ties and provide core services; suchas peer counseling, independent liv-ing skills, information and referralservices, and individual and systemsadvocacy. The workbook is avail-able electronically on the SBDCWeb site – www.nyssbdc.org.

Office of EntrepreneurialEducation (oe2)

The NYS/SBDC’s Office ofEntrepreneurial Education (oe2)promotes interest in entrepreneur-ship through educational programs.The primary focus of activities ishigh school students. In the lastyear, oe2 expanded its focus by conducting two business planningworkshops for high school businessand marketing teachers. The oe2

team continues to provide teachertraining via the Web using Voiceover Internet Protocol (VoIP), inaddition to presentations at regionaland state conferences for businessand marketing teachers.

The online interactive educationaltool, EntreSkillsTM, was furtherenriched by the oe2 team with theaddition of new Web resources andactivities to the Teacher Resourcespage. In addition, the oe2 teammade progress in adding new mater-ial to the EntreSkillsTM curriculum.The team recruited the BuffaloSBDC to draft a new chapter onRisk Management for SmallBusiness and the Westchester SBDCto draft a new chapter onSuccession Planning for SmallBusiness. The oe2 team receivedexcellent final drafts from the twocenters and is preparing the chaptersfor release, initially on CD-ROMand then online.

The oe2 team completed the firstphase of development of EntreSkillsfor VeteransTM, a version ofEntreSkillsTM developed by VeteransBusiness Advisors for veterans andmembers of the active Reserve andNational Guard. The oe2 developedand distributed a new brochure,along with demonstration CDs, topromote EntreSkills for VeteransTM

at veterans’ events in the fall.

15(Continued on page 18)

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messagefrom suny chancellor

John R. Ryan, Chancellor,The State University of New York

The State University of New York – with a 64-campus network, and 424,000 matriculatedstudents—has as an overarching goal of improv-ing the quality of life for New Yorkers. In imme-diate terms, this includes hiring additional full-time faculty, as well as adding research faculty,improving educational affordability and accessi-bility, and at the same time, enhancing studentacademic performance.

The impact of all these initiatives will be toimprove constantly the vitality of the University’sperformance as an economic engine in NewYork; in other words, expand economic opportu-nities for all of our citizens. A vital element in this economic impetus is our New York State Small Business Development Center.

From the time of its establishment in 1984, the SBDC has been adminis-tered by the State University of New York. SBDC Centers are located on16 SUNY campuses; with seven offices on the campuses of our educationalpartners, led by the City University of New York and private universities.Over the course of 22 years, we have watched the SBDC in New York growto be one of the most results-oriented SBDCs in the country. We are certainthat one of the main reasons for this impressive record is the close educa-tion-economic partnership that exists between the SBDC and SUNY.

The SBDC is a key bridge for SUNY and our partners to the small businesscommunity. SBDC business development training is often co-sponsored bythe campuses, frequently leading to further coursework. SBDC staffs callupon host campus business faculty to help solve complicated business issues,conduct research and provide students with hands-on experience as interns.Similarly, every campus is enriched by community involvement small busi-ness brings.

It seems clear that for New York’s Innovation Economy to succeed and NewYork regain our leadership position in the world economy, we require anextraordinarily educated workforce and a small business network that isdynamic, flexible, and up-to-the-minute in the assistance we offer. Learningis a lifetime commitment just as change is a constant in life, and at the StateUniversity; we pledge to help meet tomorrow’s requirements through a qual-ity education today.

John R. Ryan

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Risa Palm, Provost,The State University of New York

messagefrom suny provost

In many of New York’s towns and municipalities,the local SUNY College or university is thelargest employer. With SUNY’s talented andmotivated graduates helping to give New Yorkone of the most highly educated work forces inthe country, and its creative and accomplishedfaculty doing pacesetting, world-class research,it is no exaggeration to say that there is not atown or municipality in New York that is notpositively impacted by the SUNY system.

In a dispersed system, each campus structured torespond to the needs and priorities of surround-ing host communities. How appropriate then--given SUNY’s mission of public service to the State--that many of thesecampuses include offices of the Small Business Development Center.

At these regional SBDC centers, experienced and professional businessadvisors work directly with approximately 15,000 New Yorkers every year,helping each of them overcome the numerous hurdles and obstacles thatstand between them and the realization of their dreams. In many instances,these are existing small and medium-sized businesses that need to respondto shifting market conditions, explore export opportunities, or handle familybusiness succession issues. In other cases, they are start-up businesses,initiated by New Yorkers who want to be in charge of their own destinyand shape a bright future for themselves and their families.

SBDC business advisors are thoroughly versed and experienced in businesseconomics, demographics, management, and marketing. And they aredeeply invested in their communities: on a first-name basis with local bankloan officers and key officials of industrial development agencies, chambersof commerce, and others devoted to economic development. In short, NewYork’s entrepreneurs could not find better assistance in meeting and over-coming the challenges of business success.

The SBDC is a vital component of SUNY. I salute the New York SBDCand its over two decades of partnership with SUNY in serving the residentsof this extraordinary state.

Provost Risa Palm

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messagefrom cuny chancellor

Scientific literacy is the sine qua non of an edu-cated citizenry. Yet today, with student proficien-cy in science, technology, engineering, and math-ematics declining, our country’s preeminence inscience education and innovation—and by exten-sion, its continued economic leadership—is inquestion.

The business and research communities havetaken notice. The Business Roundtable recentlyled a call to double the number of college gradu-ates in science, technology, engineering, andmathematics by 2015. The New York StateBusiness Council has called for an increase in stu-dents taking postsecondary education in science, math, and engineering, aswell as the education of new, highly qualified teachers of math and science.

Last year, representatives of the SBDC International Business Program traveled to China with a delegation from City University of New York toexplore opportunities for collaboration between CUNY and Chinese univer-sities, as part of CUNY’s Decade of Science Initiative. This is just a recentexample of the longstanding partnership between the SBDC and CUNY to help produce benefits for all New Yorkers.

Dating back to 1985, the SBDC has been a forceful and dynamic presencein New York City, helping residents realizes the dream of economic self-suf-ficiency and independence through entrepreneurship. Five CUNY campus-es host SBDC Centers; these centers work cooperatively with other NewYork City economic development offices to deliver a wide range of pro-bonoservices to residents who want to become part of the City’s robust small-business community.

CUNY, the nation’s largest urban public university, works on a number offronts to help make sure that New York City remains the world’s center offinance, business, the arts, and intellectual inquiry. This work includes pro-viding students, regardless of their financial status, with the finest educationavailable, fostering research initiatives, and attracting and nurturing out-standing faculty.

Working with organizations like the SBDC, CUNY’s investment in the people of our extraordinary City continue to help yield the supportive androbust economic climate that will guarantee our children’s future. Therefore,I am pleased to join SUNY’s Chancellor John Ryan and our fellow highereducational institutions in partnering in the success of the SBDC and oursmall business constituency.

Matthew Goldstein

Matthew Goldstein, Chancellor,City University of New York

Dr. Oyenike Kilanko, a graduate of NYUSchool of Medicine, is a staff gynecologistat a public hospital in Brooklyn. not farfrom the offices of the Brooklyn SBDC, atBoricua College. Discovering the SBDC’soffices there, she stopped in and made anappointment. For years, Dr. Kilanko hadbeen curious about the rapidly growingfield of skin care and appearance enhance-ment. Careful research led her to anArizona franchiser that offered superiormicro-derma-abrasion techniques, facialpeels, laser hair removal, and laser removalof varicose veins. Brooklyn SBDCBusiness Advisor Miriam Colon helped herreview the pros and cons of a franchisebusiness, providing information on bankloan requirements, as well as the elementsof a successful business plan. Dr. Kilanko,and her business associate, Dr. NgoziKeshinro, invested $100,000 in personalequity, obtained a business loan of$75,000, and a $250,000 loan from a capi-tal investment firm. Their laser and skinclinic opened for business in January2005, and is serving a growing clientele.Says Dr. Kilanko, “Miriam Colon and theBrooklyn SBDC helped me in numerousways. I can’t imagine an aspect of smallbusiness success with which they are notfamiliar. They are dedicated to serving thebusiness needs of all entrepreneurs.”

Drs. Oyenike Kilanko and Ngozi Keshinro

Brooklyn

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In 2006, the NYS/SBDC presentedits second “EntrepreneurialEducator of the Year” award toJoAnn Bagnoli, a teacher from FortPlains High School in the MohawkValley. The program selected Ms.Bagnoli for the award because of hercommitment to educating studentsabout business, her work with oe2

in mapping EntreSkillsTM to NYSlearning standards, and her effortsto encourage other teachers to useEntreSkillsTM in the classroom.

This year, oe2 completed itsAppalachian Regional Commission(ARC) entrepreneurship initiativefor high school educators and stu-dents in the fourteen-county NewYork State Appalachian Region.Through the ARC grant, theEntreSkillsTM curriculum is supple-mented with internships for stu-dents, incentive awards for out-standing business plans, assistancein identifying guest speakers, andprovision of entrepreneurshipresources for teachers. In August,three high school students from theSouthern Tier received awards foroutstanding business plans.

Dynamic Alliances Are Essential

The NYS/SBDC is able to offercomprehensive business and man-agement assistance because of col-laborative relationships with innu-merable partners and allies. Theentrepreneurs and small businessowners who choose to work with

the SBDC definitely benefit fromthe active alliances SBDC maintainswith a wide range of organizations.Effective working relationships withthese organizations, as well as affilia-tions with chambers and other localbusiness and economic developmentagencies, are critical to the success ofthe SBDC program – and to SBDCclients.

The SBDC’s principal partners arethe US Small Business Adminis-tration, the State of New York, theState University of New York, theCity University of New York, andnumerous host campuses. TheSBDC works hand in hand with itsSBA resource partners, SCORE andthe Women’s Business Centers, bothof which are dedicated to assistingin the formation, growth, and suc-cess of small businesses nationwide.Other key partnerships include, butare not limited to:

Federal agencies, including theDepartment of Labor, OccupationalSafety and Health Administration,and the Department of Commerce;

State agencies such as the EmpireState Development Corporation(ESDC), the state economic development agency, and theDepartment of Insurance;

Regional agencies such as theCatskill Watershed Corporation(CWC) and Catskill BusinessRoundtable, organizations that create jobs and improve the economic climate of the region;

In 2002, Ed Singer came to the StatenIsland SBDC to attend one of the frequentVeterans’ Outreach Seminars offered jointlyby the SBDC and the SBA. A Vietnam-eraveteran, Singer had worked for over 30years on Wall Street before being laid offafter the 9/11 terrorist attack. He wasinterested in self employment and in open-ing a UPS retail franchise store on StatenIsland. SBDC Business Advisor JohnBlohm introduced him to an organizationcalled VetFran, which links over 1,000national franchisees that provide discount-ed franchise rates and other incentives toUS military veterans. Blohm and Singerworked together to produce a winningbusiness plan, and approached a bank thatis a large SBA lender in the metropolitanarea. The result was a $155,000 SBA-guaranteed loan. Singer opened his storein August 2004. Two full-time jobs andone part-time job were created. After aslow start, business has steadily improved,with revenues nearly doubling in the pastyear. Singer understands the value ofhands-on, personal service and is behindthe counter, serving customers every day.Long hours? Not compared to a daily four-hour commute to Wall Street, he responds.Says Singer, “I got a lot of useful informa-tion and help from John Blohm and theSBDC. They really are committed to helping veterans succeed.”

Ed Singer with his wife, Rochelle

Staten Island

City and municipal agencies such asthe New York City Department ofSmall Business Services (NYC SBS),an agency that provides a variety ofresources, from free seminars topublications, covering topics fromfinancing to incorporation;

The Interagency Small BusinessTask Force, composed of representa-tives from state agencies, establishedto target areas of high priority to theNYS small business community andserve as a collaborative forum toresolve issues;.

Small business technical assistanceproviders such as Space AllianceTechnology Outreach Program(SATOP), Technology DevelopmentOrganizations (TDOs) andRegional Technology DevelopmentCenters (RTDCs) around the State,Long Island Forum for Technology(LIFT), and the Alliance forManufacturing and Technology (in the Southern Tier);

Professional, business and tradeassociations, including the BusinessCouncil of New York State(BCNYS), the NYS chapter of theNational Federation of IndependentBusiness (NFIB), and numerousChambers of Commerce;

Traditional and non-traditionallenders and the New York BusinessDevelopment Corporation(NYBDC), a private corporationthat works in conjunction withleading New York banks and thriftinstitutions to provide creative andinnovative financing to small busi-nesses across New York;.

Private sector partners includingAmerican Express, PrincipalFinancial Group, Coca Cola,Deutsche Bank, Intuit, andMicrosoft that provide financial andother support for a wide range ofspecial projects and initiatives.

There is not enough space in thispublication to acknowledge all ofthe organizations that collaboratewith the NYS/SBDC to help smallbusinesses in New York grow andthrive. The NYS/SBDC appreciatesthe contributions of all of its alliesand partners in the effort to informand assist small businesses.

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Dr. Ivan Hernandez has dedicated himself to alleviat-

ing pain and restoring mobility to injured limbs. After

earning his Doctor of Physical Therapy degree from

New York University in 2001, Dr. Hernandez prepared

himself to pursue his goal of opening his own

practice. A friend recommended he check out the

services provided by the SBDC at Mercy College.

Starting in 2006, Hernandez met with SBDC Business

Advisor Tony Presti. Their meetings covered goals

and parameters for the practice, along with a com-

prehensive review of the business plan. They

assessed the financial needs, and operating parame-

ters for the facility. Over the following months they

visited numerous potential office sites before settling

on a location on North Broadway in Yonkers that pro-

vides excellent patient access and fits their financial

model. On October 6, Dr. Hernandez celebrated the

opening of Executive Park Orthopedic and Sports

Physical Therapy. In addition to his general practice,

Hernandez specializes in sports and orthopedic thera-

pies. To achieve his goal, he invested $125,000 in

personal equity and hired two full-time employees.

Says Hernandez, “I would not have moved forward

had it not been for Tony Presti’s guidance. Without

hesitation, I would refer aspiring entrepreneurs to

the SBDC.”

WestchesterDan Kerning is a 16-year veteran who served as a US Navy aviator in Operation Desert Storm. In 1997,Kerning established WebHouse, Inc., a full-serviceInternet hosting company that quickly became a one-stop shop for telecommunications and informationtechnology services for small businesses, offeringeverything from state-of-the-art phone systems,development and marketing services, to informationstorage and technology solutions. Recently,WebHouse has focused its business on data storage,with Network Appliance, a publicly traded NASDAQentity, as its premiere product line. Serving a grow-ing number of private, for-profit clients, WebHouseexpanded rapidly over the past nine years. In July2005, when Kerning wanted to expand his company’sclient base to include state and federal governmentagencies, he contacted John Narciso, VeteranBusiness Advisor at the Farmingdale SBDC. Narcisohelped Kerning get his business certified as a ServiceDisabled Veteran-Owned Business. Narciso helpedget WebHouse on the General Services Administra-tion’s schedules for federal contract announcements.(The GSA is one of the federal government’s largestagencies, purchasing billions of dollars of goods andservices every year.) In addition to pursuing its ownGSA contracts, WebHouse is subcontracting withcurrent contract-holders to sell storage solutions, forexample, to New York City’s Department ofInformation Technology and Telecommunications.WebHouse ended the year with sales close to $10million, and Kerning projects sales increasing to $30 million over the next few years. “John Narcisoand the SBDC have been a great help to us,” saysKerning. “They understand markets both in the for-profit and not-for-profit sectors.”

Dan Kerning

FarmingdaleDr. Ivan Hernandez (left) with SBDC

Business Advisor Tony Presti

21

Mitch Goss, founder of Zeroin Media (ZIM), is a

pioneer in the 21st-century digital signage industry.

The concept entails strategically installed Internet-

controlled digital displays (such as plasma, LCD, or

LED) in public spaces to distribute real-time informa-

tion, entertainment, and advertising. ZIM’s first pro-

ject was a plan in 2001 to install large displays at the

South Street Seaport in Lower Manhattan, shortly

before the terrorist attack. While the South Street

Seaport project was eventually completed, the effects

of 9/11 on ZIM and on tourism in New York lasted for

years, strapping the young company of badly needed

cash. Fortunately, ZIM sought the assistance of the

SBDC at Pace University. Business Advisor Catalina

Castano worked with Goss on a business plan and

approaches for obtaining an SBA-guaranteed loan.

She helped him with the loan process and made valu-

able introductions that led to funding from a private

capital company. ZIM used the funding for operating

capital and is now a profitable and rapidly growing

concern and a resident of Pace University’s Incubator

Program. ZIM manages digital signs ranging from

small 17-inch displays to huge, Times Square-style

digital billboards in about 100 commercial locations

nationwide, including dozens of ShopRite

Supermarkets, over 50 banks, numerous retail loca-

tions, the Empire State Building, and on Hollywood

Boulevard in Los Angeles. “I owe a great deal to the

Pace University SBDC and the business expertise of

Catalina Castano,” says Goss. “They are up-to-date

on the latest technology and marketing strategies.”

Mitch Goss

PaceWhen Dominic Eisinger and Laurie Stephen, of LakePlacid, decided to start a biotechnology company,their first stop was the North Country SBDC at SUNYPlattsburgh. They needed a business plan and fund-ing – in addition to personal equity – for their enter-prise. Starting in February 2006, SBDC BusinessAdvisor Tony Maglione helped them write a winningbusiness plan, including detailed financial projec-tions. The SBDC also counseled the clients on differ-ent business structures, as well as the pros and consof taking on additional equity investors. As a result,Eisinger and Stephen attracted $233,000 in funding –including a $150,000 loan from Lake Placid’sRevolving Loan Program – added to $140,000 in per-sonal equity. In April, they started renovations on anold warehouse in Lake Placid. The lab was complet-ed in June and the company hired its first twoemployees on July 1. Today, Multiplex Biosciences,Inc., (MxB) is a New York State C-Corporation, pro-viding R&D and manufacturing services to biotech-nology companies and institutions worldwide in thefield of multiplex immunoassays. One of the fastestgrowing areas of biotechnology – multipleximmunoassays can simultaneously measure multipletypes of proteins in a single sample. Proteins are keyelements in most biological functions. In August,MxB signed an agreement with BioLayer Corp. ofAustralia to collaborate on product development,technical support, and licensing. According to LaurieStephen, “Tony Maglione and the SBDC were atremendous help to us. They understand what ittakes to succeed in business and in high-techendeavors.”

Laurie Stephen, Dominic Eisinger

North Country

22

Anthony Caserta is an engineer and a practicaldreamer. He worked for the Grumman Corporationon Long Island for many years. In the 1990s,Caserta and his son, Charles, began designing anamphibious vehicle with pontoons and retractablewheels that could travel on land or water. His patent-ed “Pontiphian” has been sparking interest as a solu-tion to the potential problem of evacuating LongIsland in the event of a natural disaster like HurricaneKatrina – especially if bridges are knocked out. Theinventor also sees Pontiphians replacing schoolbuses. (The conversion of all 7,000 Long Islandschool buses would permit the emergency evacua-tion of Long Island in as little as 24 hours.) Casertahas been working with Stony Brook SBDC BusinessAdvisor Bernard Ryba at the Long Island Businessand Technology Center on resolving managementand business issues. Anthony and Charles wererecently approved for $250,000 in Phase II fundingfrom the New York State Energy Research andDevelopment Authority (NYSERDA) to construct a30-passenger prototype, which will be finished inspring 2007. They have also received support fromthe Long Island Development Association, the LongIsland Forum for Technology, and the New YorkDepartment of Transportation. Over the years,approximately $1 million in equity has been commit-ted to the project. Says Caserta, “SBDC BusinessAdvisor Bernie Ryba is a key member of a team ofadvisors I rely on. The SBDC understands what’sinvolved in building a technology business.”

Anthony Caserta

Stony BrookAnnoyed when his shower curtain clung to his body

as he showered, Patrick Raymond invented a simple,

effective solution: a light-weight rod that attached

easily to the curtain rod and held the curtain in place.

But between inventing a consumer product and its

appearance on store shelves, there is much to be

done and many decisions to be made. Patrick came

to the SBDC at Baruch College for help with the

process. He and SBDC Business Advisor Pavan

Mirpuri discussed the pros and cons of licensing the

invention versus manufacturing and marketing it

himself. After weighing a number of funding options,

Raymond opted for investor financing. The Business

Advisor arranged for him to participate in a venture

capital conference held at the college, and reviewed

his prospectus to strengthen its investor appeal. He

even sat in on an investor conference call. The result

was more than $300,000 in owner and investor

equity. After a year of successful product develop-

ment and consumer testing, the ShowerBow has

been accepted at national retailers like Linens n’

Things, Bed, Bath, and Beyond, and will be on their

shelves in March. With an attractive website

www.showerbow.net , media attention (including

Newsday and CBS Channel 2), and an advertising

campaign on national cable stations like CNN and the

History Channel, Patrick Raymond and ShowerBow

are on their way. Says Raymond, “Bringing an inven-

tion to market is an involved process. I appreciate the

expertise provided by Pavan Mirpuri and the SBDC.”

Patrick Raymond

ManhattanMid-town

23

Looking at a traditional restaurant that had been

located for years on City Island in the Bronx, Noberto

Rodriguez saw a golden business opportunity. The

Bronx had no Japanese hibachi restaurants and

Rodriguez wanted to open one. But this would

require extensive financing to renovate and expand

the existing facility into a full-service, modern restau-

rant. Rodriguez’s efforts to get the needed capital

ran into difficulties, and a bank referred him to the

SBDC at Lehman College in the Bronx. SBDC

Business Advisor Alzie Glickstein worked with

Rodriguez, his accountant, and an SBDC intern

to prepare a detailed business plan and financial

projections. The result was $2.7 million in funding

to purchase the restaurant and transform it into

Ohana Japanese Hibachi Seafood & Steak House,

which opened in Spring, 2006. Ohana derives most

of its luncheon clientele from the Bronx business

community, while its dinners draw patrons from

Westchester, Connecticut, Queens, and Manhattan.

Eight jobs have created, and six jobs have been

saved. “Alzie Glickstein and the SBDC worked with

me and the bank to make this happen,” says

Rodriguez. “I’d recommend the SBDC to anyone

serious about business success.”

Roberto Rodriguez with SBDC Business Advisor Alzie Glickstein

BronxStarting in 2001, entrepreneurs Joshua Auerbach and David Raphael developed a small, specialtyKosher cookie-manufacturing business in Manhattan,selling original-style New York Black and WhiteCookies over the Internet. In 2004, when they decided the time was right to expand their businessand move it to Binghamton, they contacted the SBDCat Binghamton University, asking the business pro-fessionals there for help in refining their businessplan, locating a suitable production facility, andsecuring funding for site improvements, equipment,and supplies – estimated at approximately $500,000.After almost 20 months of effort – including severalunsuccessful real estate deals – The Black and WhiteCookie Company was fully equipped in its new loca-tion and began production in July 2006. The princi-pals also launched a serious marketing effort pro-moting their all-natural product. As a result, theywere interviewed on “ABC Money Matters” in April,and presented their products with great success at the NYC Fancy Food Show this past summer. Now the company sells in both retail and wholesalevenues, and offers cookies with custom logos(including the Binghamton University logo) and edible-image cookies over the Internet, atwww.blackandwhitecookies.com. Employees includedevelopmentally disabled individuals. This year thecompany expects sales to reach a half-million dollars.Says Auerbach, “Business Advisor Ken Homer andthe SBDC worked with us over the long haul toachieve our goals. They are professionals and knowthe keys to entrepreneurial success.”

(l to r), Joshua Auerbach, Peter Metralexis, and David Raphael

Binghamton

24

For more than two decades, the NYS SBDC has been an outstanding provider of small business man-agement and technical assistance, and the program’sexcellence has been noted by a range of agencies andassociations. Beginning in 1997, when the NYSSBDC received the Governors Award for SmallBusiness Not-for-Profit Organization of the Year the program has received eighteen awards for excellent service, special programs, disaster recovery efforts,business education, and advocacy for small business.

The awards are due in large part to the atmosphere of excellence created and sustained by high qualitySBDC business professionals that devote significant

time and expertise to counseling and training entre-preneurs and small business owners in New YorkState. The commitment to small business resonatesthroughout the program, extending to Advisory Boardmembers who are intensely interested in helping smallbusinesses grow stronger. A number of our BusinessAdvisors and Advisory Board members have been recognized by the U.S. Small Business Administrationwith “Small Business Advocate” awards.

This atmosphere also dramatically impacts the smallbusinesses assisted by the program, several of whichhave also been recognized for their contributions tothe community.

An Atmosphere of Excellence

Advisors of the Year – l to r, John Narciso, Farmingdale-First Runner-Up; Myriam Bouchard, Mid-Hudson – Third Runner-Up; Walter Reid, Farmingdale- Advisor of the Year; Bill Greishober, Buffalo – Second Runner-Up; Ulas Neftci, Baruch-Fourth Runner-Up; and Serge Spak, Binghamton- Fourth Runner-Up. Not pictured, Patricia Karlak, Stony Brook-Third Runner-Up.

25

2005 NEW YORK STATE NOTABLEDOCUMENT AWARD for What’s Your Signage? How on-premise signs help small businesses tap into a hidden profit center to The Small BusinessDevelopment Center Research Network

2005 MOHAWK VALLEY CHAMBER OFCOMMERCE BUSINESS OF YEAR AWARD,non profit category, to the Mohawk Valley SBDC

2003 SBA NATIONAL PHOENIX AWARD forOutstanding Contributions to Disaster Recovery by a Public Official to Jim King and the NYS/SBDC

2003 GOVERNOR’S AWARD FOR SMALLBUSINESS NOT-FOR-PROFIT ORGANIZATIONOF THE YEAR for the World Trade Center SmallBusiness Recovery Loan Fund to NYBDC and theNYS/SBDC

2003 OUTSTANDING PROJECT OF THE YEARAWARDS from the National Association ofManagement and Technical Assistance Centers (NAMTAC) for disaster assistance to LichtensteinCreative Media (Midtown Manhattan SBDC),and for the Veterans Business Outreach Program(SBDC Central)

2003 HOBART H. CONOVER FRIEND OFBUSINESS EDUCATION AWARD from the BusinessTeachers of New York State awarded to the SBDC’sOffice of Entrepreneurial Education

2002 OUTSTANDING PROJECT OF THE YEAR AWARD from the NationalAssociation of Management and Technical AssistanceCenters (NAMTAC)

NYS SBDC for Small Business Disaster RecoveryEfforts in New York City

2002 SBA TIBBETTS AWARD Mohawk Innovation Technologies, Inc.(MDDC - Albany SBDC)

NEW YORK STATE 2002 SMALL BUSINESSADVOCATE OF THE YEAR AWARD Loretta Kaminsky (SBDC Advisory Board)

2001 OUTSTANDING PROJECT OF THE YEAR AWARD from the NationalAssociation of Management and Technical AssistanceCenters (NAMTAC)Square One Taxi Company (Albany SBDC)

2001 SBA TIBBETTS AWARD Integrated Sensors, Inc. (Onondaga SBDC)

2000 OUTSTANDING PROJECTS OF THE YEAR AWARDS from the NationalAssociation of Management and Technical AssistanceCenters (NAMTAC)Aurora Project (Binghamton SBDC)APACE, Inc. (Stony Brook SBDC)Kosnal Floating Derrick Co. (Staten Island SBDC)

1999 OUTSTANDING PROJECT OF THE YEAR AWARD from the NationalAssociation of Management and Technical AssistanceCenters (NAMTAC)American Rock Salt (SUNY Geneseo SBDC)

1999 SBA VISION 2000 MODEL OF EXCELLENCE AWARDWomen’s Business Roundtable(Corning Community College SBDC)

1999 SBA VISION 2000 MODEL OF EXCELLENCE AWARDKidBiz (SUNY Buffalo State College SBDC)

1998 SBA VISION 2000 MODEL OF EXCELLENCE AWARDNative American Initiative (Jamestown Community College SBDC)

1998 SBA VISION 2000 MODEL OF EXCELLENCE AWARDSelf-Employment Assistance Program(In partnership with the NYS Dept. of Labor)

1998 CHAIRMAN’S AWARDNational Association of Small Business DevelopmentCenters Outstanding Achievement and Excellence

1997 GOVERNOR’S AWARD as the Small BusinessNot-for-Profit Organization of the Year

NYS/SBDC National and Regional Awards

26

Mid-Hudson SBDC Advisor Sam Kandel receives his Star Performer award at the ASBDC Conference inHouston. L to r, Stephen Little, sponsor of the award reception; John Massaua, Chair of the ASBDC Board;Arnaldo Sehwerert, Mid-Hudson SBDC Director; Sam Kandel; and Antonio Doss, Associate Administrator,SBA Office of Small Business Development Centers.

The International Business Program has signed a cooperative agreement with Heilongjiang Province Productivity Promotion Center in China.

SBDC visits Capitol Hill, l to r, State Director Jim King, NYCongresswoman Nydia Velazquez, Sue McCartney, Buffalo; andArnaldo Sehwerert, Mid-Hudson.

The IBP expedited a CUNY delegation’s visit to Jiangsu Province in China for the purpose of fostering science education cooperation.

27

The SBA visits the North Country SBDC at SUNY Plattsburgh. l to r, Dan O’Connell, SBDC Project Officer; B.J. Paprocki,SBA Syracuse District Director; David Ettling, President, Plattsburgh State University; Bill Manger, SBA Region IIAdministrator; and Dee Clark, Director, North Country SBDC.

Mohawk Valley SDBC Director Dave Mallen (on the right) counseledsmall business owners in New Orleans impacted by Hurricane Katrina.

Newly certified advisors l to r, Pavan Mirpuri, Baruch; Ulas Neftci, Baruch; Bernadette Mroz, Watertown/Oswego; David Ruiz,Baruch; and Jose Manuel de Jesus, Brooklyn.

Senator Joseph Bruno with SBDC State Director Jim King at welcom-ing reception for Chinese delegation visiting the Capital Region.

28

2006 SBDC Entrepreneurs of the YearCatskill was the site in May of the 2006 SBDC Staff Training and Professional Development Conference hosted by the SBDC Central Office. The highlight of the event was the Awards Banquet honoring nine outstanding Entrepreneurs of the Year. The award winners are pictured below. For more information

about these entrepreneurs and their businesses, visit the SBDC Website at www.nyssbdc.org.

RURAL ENTREPRENEUR OF THE YEAR

Douglas Shelmidine – Watertown SBDC

MINORITY ENTREPRENEUR OF THE YEAR

Rohan Scarlett – Bronx SBDC

FEMALE ENTREPRENEURS OF THE YEAR

Leslie Summerson, Keli DiRisio –Brockport SBDC

ENTREPRENEUR EDUCATOR OF THE YEAR

JoAnn Bagnoli – Office of Entrepreneurial Education

HIGH TECH ENTREPRENEUR OF THE YEAR

Alan Olivero – Niagara SBDC

VETERAN ENTREPRENEUROF THE YEAR

Daniel Burritt – Canton SBDC

START-UP COMPANY OF THE YEAR

Rachel & Norman Karp – North Country SBDC

MANUFACTURER OF THE YEARChris Clemans –Onondaga SBDC

ENVIRONMENTAL ENTREPRENEUR OF THE YEAR

Daniel Montiegari – Stony Brook SBDC

29

The NYS SBDC Hall of Fame, which was establishedin 1984, is now 35 members strong. In June 2006, threenew members were inducted at a ceremony in Albany.Matrix Imaging Solutions and Relax on Cloud 9 wereselected for addition to the Hall of Fame in 2005;their descriptions were included in last year’s AnnualReport. This year, those outstanding selections werejoined by another extraordinary small business,License Monitor, a client of the Westchester SBDC.

The owners of the businesses, Alan Olivero (represent-ing the four co-owners of Matrix), Doreen Zayer(Relax on Cloud 9), and Michael Garvey (LicenseMonitor) traveled to the State Capitol after the cere-mony and listened as Senator George Maziarz read aresolution recognizing their businesses as outstandingsmall businesses in New York State.

2006 NYS SBDC Hall of Fame - New Members

Sen. Thomas Morahan (38th), Michael Garvey, License Monitor, Thomas Morley, Westchester SBDC Director

Doreen Zayer, Relax on Cloud 9, Sen. John Marchi (24th), Dean Balsamini, Staten Island SDBC Director

The Hall of Fame Selection Committee is once again soliciting nominations for new Hall of Fame members from the regional centers.

License Monitor – Westchester SBDC While Michael Garvey was serving as a sergeant in theClarkstown, NY police department he realized that asignificant number of people continue driving cars inNew York, even after their licenses have been revokedor suspended as a result of numerous traffic violations.Some of these people apply for and get delivery jobs inservice industries, putting their employers at greatfinancial risk. Statistics show that drivers with numer-ous moving violations are three times as likely to getinvolved in accidents that lead to fatalities or seriousinjuries. Garvey founded License Monitor in 1999and patented a software application that providesemployers – whether private companies or govern-mental organizations – with real time records ofemployee driver license activity. The software enablescompanies to use DMV information to keep driverswith license issues off the road, preventing potentialaccidents and potential fines. The company has grownsteadily. Today, among License Monitor’s over 100clients are: Metropolitan Transportation Authority(MTA), Cablevision, and other large employers.

Alan Olivero, Matrix Imaging Solutions, Sen. George Maziarz (62nd)

30

Business Sectors Economic Impactfrom Inception

Millions of Dollars

Thousands of Jobs

Retail

Serv.

Whol.

Manu.

Const.

Ag.

Other

0 100 200 300 400 500 600 700 800 900 1000

0 5 10 15 20 25 30 35 40 50 55

Program Inception to September 30, 2006

Total Investment Impact: $3,071,326,245

Total Number of Jobs: 119,791

Investment in niche market and specialized manufacturing continues to grow in New York.

180

160

140

120

100

80

60

40

20

0

70

65

60

55

50

45

40

35

30

25

20

15

10

5

0

Millionsof Dollars

Hundredsof Jobs

Retail Service Whole. Manuf. Const. Ag. Other

FundingJobs

October 1, 2005-September 30, 2006

Total Investment Impact: $245,310,006

Total Number of Jobs: 6,261

Business Sectors Economic ImpactLast Year

In just the past twelve months, SBDC clients invested almost$270 million to impact over7,500 jobs.

31

Thousands of Clients

Thousands of Hours

0 5 10 15 20 25

0 25 50 75 100 125

Counseling Statisticsfrom Inception

85/86

86/87

87/88

88/89

89/90

90/91

91/92

92/93

93/94

94/95

95/96

96/97

97/98

98/99

99/00

00/01

01/02

02/03

03/04

04/05

05/06

Other$8,349,764

Equity Collateral$7,617,291

Private Investor$18,551,008

Equity Cash$59,944,968

Commercial Lender$107,570,063

Public$47,723,580

Other$24,744,716

Private$202,033,094

October 1, 2005 - September 30, 2006

Total Investment: $245,310,006

Scarce owner equity is leveraged by public and private funding to bring entrepreneurs’ dreams to life.

Funding/InvestmentLast Year

The number of clients and counselinghours increased significantly in 2001-2003 after the terrorist attacks.

32

SBDC ADVISORY BOARD

CHAIRPERSONMr. Sterling KozlowskiPresident, Key Bank50th Fountain Plaza, 17th FloorBuffalo, NY

VICE CHAIRPERSONMr. R. Wayne DieselConsultant22 Yardley CourtLoudonville, NY 12211

EX-OFFICIOJohn R. Ryan, ChancellorVice Admiral, USN (Ret.)The State University of New YorkState University PlazaAlbany, NY 12246

EX-OFFICIOMr. Lee BorlandBorland Product Development, Inc.P.O. Box 124Speculator, NY 12164

EX-OFFICIOMr. Daniel O’Connell, Project OfficerCapital Business Resource CenterUS Small Business Administration1 Computer Drive Albany, NY 12205

MEMBERSMr. Robert Andrews, PresidentMorse Manufacturing727 W. Manlius StreetE. Syracuse, NY 13057

Mr. Jeffrey BoyceAssistant Deputy Commissionerfor Manufacturing Services

Empire State Development30 South Pearl Street, 7th FloorAlbany, NY 12245

Ms. Shirley Felder, PresidentSullivan County First Refuse andRecycling, Inc.

482 Hasbrouck DriveWoodbourne, NY 12788

Mr. James HartmanGrant Development Seminars11 Cottage Street, Apt #5Saratoga Springs, NY 12866

Mr. William KahnCPA, PartnerUHY Advisors NY, Inc.66 State Street, Suite 200Albany, NY 12207

Ms. Loretta Kaminsky42 Thamesford LaneWilliamsville, NY 14221

Mr. Patrick MacKrellPresidentNew York Business Development Corporation

50 Beaver Street, 6th FloorAlbany, NY 12207

Ms. Linda McQuinnPresident and CEOtasmithassociates, inc. Consulting ServicesP.O. Box 544Ogdensburg, NY 13669-0544

Mr. Raymond M. NowickiManaging MemberNowicki and Company, CPAs LLP3198 Union Road, Suite 100Buffalo, NY 14227

Mr. Brad RosensteinPresidentJack’s Oyster House42 State StreetAlbany, NY 12207

Dr. Richard SteinerSenior Associate ProvostThe State University of New YorkState University PlazaAlbany, NY 12246

Mr. Ronald C. ThomasAssociate Dean for Institutional Advancement

York CollegeThe City University of New YorkJamaica, NY 11451

STATE DIRECTORMr. James KingState DirectorNew York State Small BusinessDevelopment Center

The State University of New York22 Corporate WoodsAlbany, NY 12211

SECRETARYMs. Mary Hoffman, Associate State DirectorNew York State Small BusinessDevelopment Center

The State University of New York22 Corporate WoodsAlbany, NY 12246

The NYS SBDC Advisory Board serves the program by providing insight, guidance, and support to the State Director and the network

of regional centers. The Board members, a diverse group of small businessowners and others with small business interests meet a few times a year to discuss SBDC and small business issues. In 2005, more AdvisoryBoard members attended the annual Staff Training event than in any

previous year. Their annual meeting with the business advisors provided valuable feedback for the program’s leadership.

We appreciate their tremendous contribution to the program.

7.1.84 Albany7.1.84 Binghamton7.1.84 Buffalo7.1.84 Niagara

10.1.85 Farmingdale10.1.85 Mid-Hudson (Ulster County

Community College)4.1.86 Watertown7.1.86 Jamestown7.1.86 Utica / Rome

9.20.86 Syracuse10.1.86 Pace University / Manhattan4.1.87 Corning4.1.87 Brockport / Rochester

The statewide network of 23 SBDC regional centers – and numerous full-time outreach locations – is a fully integrated and interactive small business consulting and training delivery system. The New York State SBDC Central Library in Albany supports the systemwith up-to-date business information and electronic search mechanisms. When you seekbusiness counseling at one of the SBDC’s regional centers, the resources of the entire systemare at your disposal. The centers and founding dates:

8.15.88 York College (CUNY)/ Queens8.15.88 Stony Brook9.1.93 College of Staten Island

(CUNY) / Staten Island6.1.94 Manufacturing and Defense

Development Office9.1.94 Baruch College (CUNY) /

Manhattan10.1.98 SUNY Canton12.1.98 SUNY Plattsburgh1.1.00 Lehman College (CUNY) Bronx1.1.00 Boricua College (Brooklyn)

10.1.01 LaGuardia Community College (CUNY) / Queens

10.1.02 Westchester (Mercy College)

SBDC REGIONAL CENTERS

SUNY PlattsburghSUNY Canton

Jefferson CC

Niagara County CC

SUC Buffalo

Jamestown CC

SUC Brockport

Corning CCSUNY Binghamton

Onondaga CCSUNYIT

SUNY AlbanySBDC (System Administration)

Manufacturing and Defense Development Office

Ulster County CC

Lehman College (CUNY) Bronx

SUNY Stony Brook

SUC Technologyat Farmingdale

York College

Boricua College (Brooklyn)

College of Staten Island

Baruch College (Mid-Manhattan)Pace University

LaGuardia Community College

Mercy College

www.nyssbdc.org

NYS SMALL BUSINESS DEVELOPMENT CENTER

The State University of New York 22 Corporate Woods, 3rd Floor

Albany, NY 12246