Small businesses need solid game plan

STATEN ISLAND, NY -- ALL SHORES -- Despite being hammered by a turbulent economy, members of Staten Island's staggering small-business community should remain determined, local business experts advise.

However, they caution, an understanding of available financial tools and diligent networking may be needed for businesses to survive.

"The majority of businesses that I see right now are looking for financial relief," said Linda Baran, president and CEO of the Staten Island Chamber of Commerce. ". . . At the moment, we're really feeling the effects on Staten Island because people are pulling back on spending."

One way of meeting today's economic challenges head on is for business owners to put discouragement aside and continue networking. The Chamber can enhance the networking capabilities of entrepreneurs, and keep them abreast of the latest opportunities in the marketplace, Ms. Baran said during a seminar presented on Saturday by the Small Business Development Center (SBDC) at the College of Staten Island (CSI) that drew about 75 businessmen and women.

Ms. Baran was one of five speakers featured at the "Business Opportunities in Turbulent Times" seminar, which featured experts from the fields of banking, marketing and sales, and small-business ownership. In addition, Frank J. Ditto, economic development specialist and veterans affairs officer with the Small Business Administration (SBA), was on hand to share information.

"Most small businesses fear they will not make it through these times," said Dean Balsamini, Sr., director of the SBDC at CSI. But he went on to encourage the entrepreneurs by reminding them that "Small business is the economic sector that drives the economy."

The SBA and banks are there to help, and financing remains available to qualifying-entrepreneurs. Organizations such as the SBDC at CSI, can provide free guidance that will improve the chances of acquiring a loan.

Before you apply for your small-business loan, you will need to know what the banks are looking for -- and prepare a well-constructed business plan.

"The very first thing you need is a business plan," said Ed Piszko, a lending officer with CIT, the largest Small Business Administration lender in the U.S. Plans should include information like cash-flow projections, financing needs, financing strategy, and more.

"A good business plan will probably take anywhere from six weeks to three months to put together, Piszko said.

Getting what you want from a bank depends a great deal on how well organized an applicant is, according to Bob Rose, a vice president with TD Bank. "Power is what you need in this economy," said Rose. He advised entrepreneurs at the seminar to educate themselves about what banks look for before providing business loans.

An understanding of the "five Cs of credit" can bring a business person one step closer to obtaining a desired loan, Rose said.

The five Cs are: "Character" (of the person applying); "Capacity" (ability to repay); "Capital"(availability of equity); an industry's ability to control the effects of outside "Conditions," and "Collateral."

Perspective borrowers should remember that "banks are businesses, too," Rose said.

For most business owners coping with today's challenging economy, finding new sources of money can be beneficial, if not essential.

Enlarging your customer base, increasing the average value of a transaction and ramping up the frequency of transactions are ways customer revenues can be increased, said Bill Dubovsky, president of Comtel Information Services, Eltingville.

Reducing expenses is also a must.

"If you find about a 10 percent saving, you can just about double your profits," Dubovsky said.

And if you want to stay ahead of the curve when it comes to competing, "Total quality improvement is important in everything you do in your business," Dubovsky said.

Growing, becoming better -- and not giving up -- are keys to business success, said George Stern, a businessman and motivational speaker, as well as a lecturer at CSI.

"One of the great strengths of this country is the entrepreneur because, in order to survive, entrepreneurs have to keep on learning," Stern said.

For additional information about the SBDC at CSI, call 718-982-2560.