CCBDC 2004 Annual Report

Jump to:

• Corporation Overview
• Personnel
• Board of Directors
• Advisory Committee
• Notes from the President
• Notes from the Executive Director
• Mission Statement
• Contracts
• Programs Services
• Client Meetings
• Doing Business As
• Microenterprise Development Loan Fund
• St. Bonaventure University
• The Future
• Representative Projects
• Quotes

Corporation Overview

The CCBDC is a not-for profit corporation that was formed in 1994 through a unique partnership between the Cattaraugus County Department of Economic Development, Planning & Tourism, BOCES, St. Bonaventure University, local banks and a cross section of business representatives.

The CCBDC provides services such as:

• One-on-One Business Counseling
• Educational Seminars
• Business Plan Assistance
• Administration of the Microenterprise Development Loan Fund
• On-going Business Assistance
• Grant Search Service and Grant Writing
• Community Activities and Projects
• Assistance to Dept. of Economic Development, Planning & Tourism
• A partnership with the St. Bonaventure Entrepreneurship Program

The CCBDC continues to respond to the small business community by continuously adapting our programs and offerings according to the current needs of the County entrepreneurs. In 2004, we partnered, for the first time, with the Seneca Nation Planning Department to offer advanced marketing classes. We also participated in the St. Bonaventure Entrepreneurship Program by having graduate student interns work with the Microenterprise Loan Program. Banks and public financing lenders continue to look to our organization for our expert assistance in business planning. At the end of 2004, we look back at the hundreds of entrepreneurs that have been assisted through this program and we look forward to fostering new entrepreneurs in 2005, which will aide in the continuing growth of our county.

Personnel

The CCBDC currently employs two, full-time business counselors, Laurie Andrews and Mike Winicki, who deliver the small business assistance program to county residents. The CCBDC also has a group of diverse and professional businesspersons that volunteer to lead the CCBDC Board of Directors.

2004 Board of Directors

• Russell Hahn
• President
• Rehabilitation Center

• Michelle Caya
• Treasurer
• Cayas Canopies

• John Sayegh
• Empire Zone Corporation

• Dr. Michael Fischer
• St. Bonaventure University

• Jim Snyder
• Snyder Manufacturing

Advisory Committee

• Thomas Livak
• Executive Director
• Cattaraugus County

• Jerry Burrell
• Legislator
• Ag & Development Committee Chairman

Notes From the President Russell Hahn

The Cattaraugus County Business Development Corporation (CCBDC) strives to meet the needs of Cattaraugus County Entrepreneurs by fulfilling the following objectives:

• Increasing the success rate of small business enterprises operating in the county
• Acting as a clearinghouse for all small business development and financing assistance programs available in the county.
• Assist start-ups and existing businesses with development, financial, managerial and marketing issues encountered by entrepreneurs of the County.
• Provide basic and advanced business training for business owners and new entrepreneurs

Cattaraugus County has suffered a continuous outflow of manufacturing jobs and decline of family farms in the last several decades, making small business development more important than ever. Many county residents turn to entrepreneurship as a means of generating income or supplementing existing income. Currently there are over 55 new "doing business as" certificates filed in Cattaraugus County each month. This is a large jump from the 25-30 certificates that were filed monthly just two years ago.

Since the inception of the CCBDC in 1994, over 900 existing and prospective entrepreneurs have received educational and technical assistance. The CCBDC has assisted Cattaraugus County in administering the Microenterprise Development Loan Fund providing funding for over 130 small businesses totaling $2.18 million dollars.

The CCBDC continues to respond to the small business community by adapting our programs and offerings according to the changing needs. We have restructured class offerings and formed partnerships allowing us to assist more businesses and individuals in a variety of ways. As 2004 ends, we look forward to assisting more entrepreneurs in starting their businesses and will diligently continue to help existing businesses grow and expand.

Notes From the Executive Director Thomas M. Livak

The statement "Small Business is the Backbone of the economy" is no more readily apparent than here in Cattaraugus County. This has been the philosophy of the Department of Economic Development, Planning & Tourism for many years and is evidenced by the type services offered at the County level. The CCBDC has evolved to become a major "small business development tool" for the Department since this not-for-profit corporation was formed over 10 years ago.

The entrepreneurship programming offered by the CCBDC integrates directly with on-going programs conducted by the Department. Direct examples of Department services that the CCBDC complements include:

• Tourism Promotion- which seeks to help promote all our tourism ventures especially smaller entities,
• Government Contract Assistance - targets primarily Small Business clientele interested in expanding their markets to include the government sector and
• Business Retention & Expansion - an economic development initiative that stresses nurturing of the businesses that we have, rather than struggling to attract new businesses that can be an extremely competitive and costly endeavor.

The economy of Cattaraugus County has evolved over time. A greater diversity has developed across the business sectors. Agriculture, Manufacturing, Wholesale, Retail, Services, Transportation and Construction all make appreciable contributions to this balance. The Hospitality Industry has risen to bolster many of these business sectors. The Hospitality industry is not unlike many other sectors where a few larger businesses have induced tremendous growth for the economy which includes countless small "Mom and Pop Shops" that have sprung up to fill various niches in the market place. A cross section of CCBDC clientele indicates a significant number are involved in tourism-related businesses and that trend will likely continue. The Department and the CCBDC continue to make adjustments to programming to proactively respond to the changing economy. The CCBDC is itself a very small nimble organization that will be able to respond very quickly to changing demands of the economy and the marketplace.

In the end, our goals are the same:

• Encourage Investment in our area
• Create jobs
• Improve Quality of Life for Residents
• Attract Visitors and New Residents
• Provide Viable Economic Opportunities for our Residents

Mission Statement

The Mission of the CCBDC is to provide services and support to new and existing microenterprises and entrepreneurs through education, counseling, and mentoring.

Contracts

In 2004, the CCBDC operated under three contracts with Cattaraugus County:

• The General Small Business Development contract for $40,000 allows the CCBDC to serve any and all clientele that may approach the County for help. Assistance covers a wide range of projects from home-based business to operations that employ dozens of people.
• The U.S. Housing & Urban Development Microenterprise Development Loan Fund contract for up to $20,000 covers administration and program delivery for all HUD loans made to microenterprises since 1995. This program targets low-to-moderate income entrepreneurs.
• The New York State Governor's Office for Small Cities contract for up to $70,000 covers the administration and program delivery for the most recent grant money received by Cattaraugus County to recapitalize the Microenterprise Development Loan Fund.

Programs and Services

Classroom Instruction

The CCBDC offers existing and potential business owners the opportunity to participate in numerous entrepreneurship and marketing courses held throughout the year in rotating geographic locations throughout the county.

Individual topics covered during these courses sessions include:

• Business Planning
• Sales
• Financial Management
• Taxes
• Marketing
• Employee Issues
• Microenterprise Loan Fund Guidelines
• Advertising
• Available Funding Options
• Basic Accounting Requirements

2004 Entrepreneurship Courses were held in:

• Olean during January and February
• Randolph during April and May
• Ellicottville during September and October

2004 Advanced Marketing Seminar was held in:

• Salamanca and Irving, via teleconferencing during June

Each Entrepreneurship course runs for seven weeks. A total of 21 training classes were taught during 2004.

The Advanced Marketing Course ran for four weeks for a total of 4 training classes in 2004.

175 entrepreneurs or potential entrepreneurs were awarded completion certificates for those courses.

Other Seminars and Community Activities

In the Spring of 2004, staff of the CCBDC addressed business classes at the JCC Olean campus concerning all aspects of entrepreneurship. Topics included "boot-strapping" and "guerilla marketing".

In the Fall of 2004, the CCBDC staff participated in at a one-day seminar in West Valley outlining the business aspects of the Alpaca industry. Business planning, financing, business operations and marketing were all discussed.

During 2004, the CCBDC assisted over 20 clients of the Seneca Nation of Indians Economic Development Corporation (SNIEDC). Clients were assisted in completing business plans resulting in the opening of several new Native American owned businesses within Cattaraugus County.

The CCBDC also collaborates with other not-for -profit businesses. In 2004, the CCBDC staff helped the Cattaraugus County Cornell Cooperative Extension rework their marketing materials for their farm-help seminars.

For the first time the CCBDC jointly sponsored a 4-week advanced marketing course with the Seneca Nation Community Planning and Development Office. The course was held in the Distance Learning Center on the Allegany Territory and was video- conferenced to the Cattaraugus Territory in Irving. Over 30 participants received certificates of completion for this course.

The CCBDC has conducted several grant searches services for not-for-profit agencies and municipalities such as the Little Valley Volunteer Fire Department, The City of Salamanca and The Rock Environmental Center.

2004 Client Meetings

In 2004, CCBDC Business Counselors conducted 198 client meetings, that lasted 30 minutes or longer (not including travel time or preparation time). The industries the CCBDC serves is very diverse. Of the 198 client meetings:

• 14 were manufacturing businesses
• 58 were retail businesses
• 67 were food service businesses
• 43 were service-related businesses
• 16 were professional service businesses

"Doing Business As"

One marketing method the CCBDC uses to attract clients is to contact new businesses that file a "doing business as" certificate with the County Clerk's office. The Clerk's office averaged 57 new businesses in Cattaraugus County each month in 2004. There were a total of 688 "doing business as" certificates filed in the Clerk's Office in 2004.

Microenterprise Development Loan Fund

The Microenterprise Development Loan Fund (MDLF) is administered by the CCBDC on behalf of Cattaraugus County. The CCBDC works with loan applicants one-on-one with their business plans and loan applications. A loan committee, made up of private individuals with business or banking backgrounds, reviews each applicant's business plan, financials, credit reports and the practicality of the business before deciding to fund the project. Of the 17 business plans presented to the loan committee, 15 were approved and 2 were declined. Of the 15 that were approved, 2 declined to accept the loan and 13 loans were closed and those businesses subsequently opened.

Microenterprise Development Loan Fund Facts:

• Established in 1996 with a grant from U.S. Department of Housing & Urban Development
• Loans range in size from $5,000 to $25,000
• Interest rate is typically 5%
• Loan terms are 5-7 years
• Low-to-moderate income requirements must be met by all applicants
• 73 current loans with outstanding balances
• 45 loans have been paid in full
• The current loan portfolio totals $1.3 million with an outstanding principal balance of $645,337
• Total amount of loans since the inception of the program is $2,237,079
• Total principal payments made since the inception of the program total $1,410,650
• Total interest payments collected since the inception of the program total $228,439
• Total charge-offs since the inception of the program are $183,452
• Out of 133 loans made since the inception of the program ,only 14 loans have been charged off. This gives Cattaraugus County an 11% charge-off rate.
• 13 loan applications were funded in 2004 for a total of $273,000
• There is over $600,000 available to loan to businesses in 2005, due to the successful payback rate

MDLF Loan Repayments

The Microenterprise Loan fund is set up as a revolving loan fund - after loans are paid back with interest there are funds to loan to the next business that needs it. The following repayment chart and graph illustrate the ebb and flow of money as it is paid back and loaned back out.

HUD MDLF Repayments

St. Bonaventure University

Under the guidance of Dr. Todd Palmer, St. Bonaventure University has initiated an Entrepreneurship Program. As part of this program, the staff of the CCBDC and Dr. Palmer have been working together to match graduate students, eager to learn real world experience with CCBDC projects. In 2004, the CCBDC was assisted by graduate student, Aaron Steve. Mr. Steve was given a list of loan clients, along with a set of questions. He then conducted a follow-up visit with each client, assessing the continuing needs of each business. This partnership provided a "win-win" situation for each partner. Mr. Steve gained "real-world" experience and the loan recipients received one-on-one assistance from the CCBDC.

The Future

The CCBDC is taking into consideration several projects for the future such as

• Training classes specifically designed for tourism related businesses within the county. The CCBDC recognizes the potential of tourism in Cattaraugus County and strives to help businesses make the most of the opportunity afforded to them. A personnel issues class is also being planned to assist small businesses with employment laws compliance.
• A "Business Initiative Project" will seek to develop a database for potential businesses in a specific community. On-going surveys and research will yield what types of businesses are needed. Identified needs can be offered as a springboard for entrepreneurs who lack specific ideas, have ideas lacking a high probability of success or have a concept that duplicates services. The CCBDC will provide specific business start-up information for these potential opportunities. The CCBDC is not offering a guarantee of future success, but educational and researched opinions of what businesses have the best chance of success within a specific community.
• The "Marketing Services Project is a project designed to enable the BDC to assist small businesses with specific marketing services needed by the business to grow to the next level. The CCBDC has access to a range of expertise that is either not generally available or is costly. The CCBDC's efforts will make these services more easily available to our small business community.
• We plan to enhance the CCBDC web site to offer more small business resources "on line".
• We plan to digitalize many of the forms used by the small business in order to make information readily available in an electronic format, saving on paper and mailing costs.

Representative Projects

"The Mustard Seed"-Owned by Annette Puleff. South Dayton

Annette is a business veteran. She, with her partners, bought a profitable but barely prosperous restaurant in the Blasdell area and turned it into a $1,000,000 per year restaurant. Over time, Annette longed to go back to her home area of South Dayton. In the fall of 2003, she purchased a large home on Main Street in South Dayton. She had hopes of converting it into a moderately-priced, sit-down, restaurant and café. The buyout agreement she had with her former partners allowed her to purchase the property. She also needed a loan to finish off the interior and purchase additional equipment. Annette began writing her business plan in February 2004. Her loan application was approved in the fall of 2004. Due to construction challenges "The Mustard Seed" has not yet opened for business as of the end of 2004, but the grand opening is tentatively planned for early 2005.

"Ellicottville Oasis"-Owned by Joanne Timkey. Ellicottville

Joanne is a licensed massage therapist who was applying her trade in the Ellicottville area. And while she was already somewhat independent because she was considered a "contractor" for another business, she wanted her "own" business; including her own building and the freedom to run the business her way. She attended the Entrepreneurial Training Course and our Advanced Marketing course. Her business plan was put together over the first 6 months of 2004. Her loan was approved in late summer and her business served its first customers in the fall of '04. Today the business is continuing to grow and Joanne has begun adding employees to the payroll.

"The Essential Salon"- Owned by Sarah Zariczny. Salamanca

Sarah attended our first Advanced Marketing Course in the spring of 2002. At the time she was a beautician for a salon in Ellicottville, but dreamed of owning her own shop. Sarah had several consultations with the staff of the BDC over the course of two years. She continued her education by attending our winter 2003 Entrepreneurial Training Course. Multiple issues kept her from starting as quickly as she would like, but she kept persevering. Finally, in the winter of 2004, she had the right pieces to the puzzle. She completed her business plan and it was approved. By the end of June 2004 her business, opened at Grand Center Station in Salamanca. Today Sarah reports that business is great and she couldn't be more pleased.

Quotes From Entrepreneurship Students