The Entrepreneurial Supports Steering Committee was established as part of the process of revisiting the West Side Community Collaborative Plan.  Our committee made several recommendations to enhance the creation of small businesses. Although the overall effort is focused on the West Side of the City of Buffalo, our recommendations could be applied throughout the city.

1. The committee seeks to identify or establish an advocate/ombudsman to assist entrepreneurs through the permitting process, especially within Buffalo’s City Hall.
2. The committee seeks to promote strategic planning within City Hall for small business development. Elements of such a plan might include:

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  • Market analysis to determine the viability of new business ventures;
  • Active recruitment of local, independent businesses to participate in development projects; and
  • An increase in the number of available Individual Development Accounts and innovative lending products that help credit-challenged entrepreneurs access capital, improve success and establish a positive credit history.

To move forward with recommendation number 1 (above), representatives from PUSH Buffalo, WEDI and MicroBiz met with Kathy Peterson, Economic Development Assistant for the City of Buffalo.  During the meeting, we expressed our concerns and ideas about some solutions to both of our issues: the ease of getting through the licensing process and promotion and support for micro-lending. Fortunately, Kathy identified herself as the “point” person for entrepreneurs seeking guidance and assistance with permits and licensing through City Hall. 

Now, what should you do first when you want to start a business?

MicroBiz recommends prospective entrepreneurs first get a business plan template.  Download a template and print it out.  Read through it carefully and make notes about how your ideas will fit into the plan and write questions down in a notebook.  You have already started writing a business plan!  Now you should make an appointment at SCORE or the Small Business Development Center to talk about your ideas and get answers to the questions you have about how your business fits into the business plan template.  By now, you should have a pretty good idea about the permits and licenses you will need to open and operate your business.  It is at this time, we recommend you contact Kathy for the first time.  After that first contact, it is up to you to routinely check the progress of your permit and license applications.  If you are dissatisfied with City Department response times, you should ask Kathy to help you.

As for micro-lending, this is an ongoing process to develop funds and build programs which can respond to the needs of the entrepreneur.  We will keep you posted as news is available.

Call Kathy at (716) 842-2667 ext. 111 or email her kpeterson @ berc.org to request Kathy’s assistance.

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Consider attending no-charge counseling sessions at SCORE’s office within the SBA (fifth floor at 130 South Elmwood Avenue in Buffalo - Ste 540).

SCORE also holds one-on-one counseling sessions specifically on Marketing at the Buffalo & Erie County Main Library - SCORE conference room - Tuesdays and Thursdays @ 1:30-4:30 pm.  There are no charges for these counseling sessions.

Call 716-551-4301 for appointments, and plan to attend a business workshop during August.

Starting and Managing Your Business
North Tonawanda Public Library
505 Meadow Drive
N. Tonawanda, NY 14120

This workshop is a must for new business startups to learn all the elements of business management required for success. It is also very helpful for those in business that may be experiencing problems, or want to fine-tune their business for greater efficiency and success.

You will learn about marketing research, marketing, business planning, insurance, federal and state taxes, legal structures, government resources, financing, counseling and more. Representatives from the private sector, SCORE, and government agencies will make presentations. SCORE members will be available for counseling if desired.

Fee: $30 - Includes coffee and donuts.

Wednesday, August 25, 2010; 8:30 AM - 4:00 PM

MicroBiz Buffalo Calendar

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Pricing for Maximum Profit - by Kenyon Riches of the Buffalo-Niagara Chapter of SCORE

An often complex business decision is how to price your product so that you can maximize your earnings.  In order to do so, several factors must be considered and understood:

1. value to the user
2. sales volume sensitivity to price
3. competitor offerings
4. manufacturing/service costs
5. promotion costs
6. distribution costs
7. manufacturing capacity/servicing capability
8. Inventory levels, obsolescence  and seasonal considerations
9. alternative opportunities

In addition, since you may serve many market segments, these values and costs may differ within different market segments. It may be beneficial to establish different pricing in different market segments through alternative packaging, different features, selective discounting, product coupling, and different marketing channels.

1. The upper end of the pricing choices would be the Value to the user, which requires an analysis of how the user would use the new product, what alternatives the user has to use of the product, and what advantages and value - to the user - the product has over these alternatives.

2. Although the greatest unit margin may be realized by Value pricing, the maximum total margin can only be realized by understanding how the volume of sales increases with decreased pricing.  This may be determined through test markets or selective discounting.

3. Competitor offerings may place a cap on the prices you are able to achieve, and requires an analysis of competitive products, prices, and market positions.  If your product has advantages that justify premiums over competitive products, you may be able to help underwrite the costs of market introduction with premium pricing.  If this is not possible, you may have to accept lower profits (or losses) in order to launch your product.  An entrenched competitor may be difficult to displace, and you must also consider how competitors will react to your new product. Alternative marketing channels might also be considered.

4. Manufacturing costs or costs of services must be understood in order to determine your margins.

5 & 6 Promotion and Distribution costs must be understood to understand margins within each market segment.

7. Manufacturing capacity/servicing capability must be coordinated with expansion so that a low price doesn’t generate sales that overwhelm your manufacturing/service capability.

8. Inventory levels, product obsolescence and seasonal considerations are short-term pricing considerations.

9.  Alternative opportunities for manufacturing/service capabilities should always be considered, especially when margins fall.

Other factors to consider are possible competitor actions, what barriers must be overcome for competitor entry, and the timeline involved.  Obviously a unique and patented product has a big pricing advantage over a me-too or only slightly improved product.

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A Brief History of Business Incubator Programs

By: Samantha Sorrentino

Business incubators are programs intended to help small business owners get off the ground through an array of business support, consulting, and resource services (USLegal.com).

The first incubator program was identified as the Batavia Industrial Center Warehouse, located in Batavia New York and was opened by Joseph Mancuso in 1959. By 1980, approximately 12 business incubators were operating in the United States - all of them in the industrial Northeast, which had been hard-hit by plant closures in the previous decade.  The National Business Incubation Association (NBIA).

By 1984 there were 20 businesses operating in incubator programs. The NBIA, a private membership only organization consisting of industry leaders was launched in 1985, and originally had 40 members and today has over 800 members. As of 1997, the number of business incubators expanded to 550 and as of October 2006, there were more than 1,400 business incubators in North America.

The 1990s saw an increase in businesses using incubator programs. As with traditional Incubator programs, Internet versions also provide business information, advice, financial assistance, and management. This kind of assistance provides entrepreneurs with essential tools to increase their sales and profits via on-line. With today’s internet economy, internet marketing is more than a driving force; it could be the difference between success and failure of a business.

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Marketing a Business

By Ashley Schoenhardt

You may think that marketing your business would be a difficult task, but there are so many things that you can do to get your name out there.  Below is a list of different ideas to help market your business.

1.       Blogs - Blogs are a free form of advertisement; it’s a great way to introduce your business. You can write different articles about your business and also post photos.  [Blog posts also offer a way to demonstrate your expertise. (Turcotte)]

2.       Facebook - By marketing your business through Facebook, you have access to millions of Facebook users.  When you create a page for your business you are able to post information about your business and pictures.

3.       LinkedIn - LinkedIn is a great tool to connect with businesses and other business professionals. This tool will help market your business and get your name recognized.

4.       Flyers and Brochures - If you have just started a new business, or are having a big sale/event at your store, you could print out some flyers advertising it.  You could place them on cars close to your business, and also in other businesses.

5.       Word of mouth - Word of mouth is the best form of marketing [and is difficult to earn (Turcotte)].  By pleasing your customers, they will have a pleasant experience and tell their friends and family about.  You could also collect some testimonials from your customers, and post them to your blog, website, and other social networking tools.

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By: Samantha Sorrentino

Guerrilla marketing, defined by Jay Conrad Levinson in his book Guerrilla Marketing, is the act of executing an unusual or unexpected marketing activity in a common, everyday place in order to generate a buzz for products or services.

Levinson identifies the following principles as the foundation of guerrilla marketing:

• Guerrilla marketing is specifically geared for the small business entrepreneur.
• Instead of money, the primary investments of marketing should be time, energy, and imagination.
• The primary statistic to measure your business is the amount of profits not sales.
• The marketer should also concentrate on how many new relationships are made each month.
• Create a standard of excellence with an acute focus instead of trying to diversify by offering too many diverse products and services.
• Instead of concentrating on getting new customers, aim for more referrals, and more transactions with existing customers, and larger transactions.
• Forget about the competition and concentrate more on cooperating with other businesses.
• Use current technology as a tool to build your business.
• Messages are aimed at individuals or small groups, the smaller the better.
• Focuses on gaining the consent of the individual to send them more information rather than trying to make the sale.

Jay Levinson is the author of “Guerrilla Marketing” and is best known as The Father of Guerrilla Marketing. His “Guerrilla Marketing” series of books have sold more than 15 million copies worldwide and have been published in 44 different languages. To read more about Jay Levinson, please click on the links below.http://www.gmarketing.com/articles/author/1/ & http://www.guerrillamarketingassociation.com/

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Written By: Derrick Martin Bryant & Stratton BBA Student

What does it mean to be an entrepreneur? What does it take to succeed in the business world as your own employer? Some entrepreneurs start out small and take their ideas and ambitions to the next level and turn it into a service or product to make profit and be recognized throughout the business world whether small or big. Some popular names that come to mind when thinking of successful entrepreneurs are Bill Gates and Henry Ford. The correct definition of an entrepreneur according to the Business Dictionary is:

Person who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what, how, and how much of a good or service will be produced. 

Every entrepreneur has to start somewhere and most start out as small businesses even though starting out is just the start of their worries.  Susan C. Awe states that:

New entrepreneurs especially will need professional, expert help to start and run a small business effectively and successfully. One skill they must develop is to identify when and how best to ask and receive that assistance. 

This is important to consider when starting out on your own with little to no experience or knowledge of what you’re getting yourself into.

It’s important to seek outside resources and information in order to ensure that one doesn’t fail like so many other small businesses did before them. The key to longevity in the business world seems to be having a good grasp on what one wants to do, focusing on strengths while improving on weakness, and having a good branding image and message that is clear and easily recognizable. There are classes and seminars that can instruct entrepreneurs to better handle their business in marketing, budgeting, and managing their businesses in a way that is profitable and self-sustaining.

Getting started is the easy part, but being able to stand the test of time along with overcoming trials and obstacles will determine your success. There are always risks involved when starting on the road to being your own boss, but the rewards can sometimes outweigh this in the long run. Our country was built upon the American Dream that anyone can make it as long as you have the drive and motivation to succeed. Where would we be without the Henry Fords, the Bill Gates, or the Donald Trumps? Hopefully in the future younger generations will say the same about a new company that was created by someone with a vision and purpose.

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Written by: Nishi Dickens, Bryant & Stratton BBA Student

If you choose to use social media to save on your company’s advertising, there are a few pros and cons to consider.  Most employers do not allow their employees to access social media sites while on the job, but they can’t control what happens when their employees are not at work. An employee may not realize how blogging, tweeting, or Facebooking may affect their job and the company’s image. 

Every one of these social media websites ask the account holder for personal information such as who you work for. Even if you are blogging at home, you are still representing your company. When we access Facebook, twitter, or blogs, we tend to write what is on our mind. If we have a bad experience at work or at a retail store, we are quick to write about it and share it with everyone on social media.  This tarnishes the company’s image, and can cause them to lose customers. 

Facebook often asks users “What’s on your mind”?  I often read status updates that are directly regarding an experience someone is currently having with a customer at work.  Social media are very accessible and users tend to post status changes many times during the day via a blackberry or iPhone which can be harmful to companies.  Having quick access to the Internet via a cell phone lets everyone know how you are feeling about what you’re experiencing at that moment, good or bad.

According to Scott Horton, an attorney with Jaeckle, Fleischman and Mugel LLP, we can leak important information by posting about our bad day (Chandler, 2010, p. 12).   Sexual harassment, discrimination and defamation are all real risks as employees tweet, blog and Facebook (Chandler, 2010, p.13).  If an inappropriate photo is posted of an employee wearing company uniform while drunk or not fully clothed, that could be grounds for action (Chandler, 2010, p.13).  Companies should include a social media policy in their employee handbook to make all employees aware of the risk of using social media to post information that can be linked to the company and possibly destroy its image. 

Social media can be used in a positive way to grow your business if used properly (Chandler, 2010, p. 13).  I have seen many people use Facebook to advertise their business, and for the most part it’s a positive experience.  You can make a page to represent your business, but that page is only monitored by you and anyone can write a comment for others to see.  Be aware that the fast-paced Internet can easily destroy your small business reputation if something negative or false is posted regarding your business.

Social media users need to be cautious when posting comments, photos, or status updates. Employers should protect themselves with a social media policy.  Everything done online spreads like wildfire, and you really don’t know who’s watching what you’re doing.  Employers have become more knowledgeable about social media and can often find out about you if they use Google to search for you.  The results found on the Internet can cost you your job if you are not careful. 

Source:  Chandler, M. (2010, May 3). Savvy with social media. Buffalo Law Journal, volume 82 (35). May 3, 2010.

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Written by: Tamela Peacock, Bryant & Stratton BBA Student

How do I go about starting a business? What steps do I take to become an entrepreneur and succeed?  These are the questions that I have not asked myself before as I have never thought about starting a business before. The thought of becoming an entrepreneur is frightening to me. Some of the things I have thought about are: Will I succeed or fail? and .. How do I get the finances to support any business that I would like to start?

I decided to seek out and find as much information on an entrepreneur as I could. I decided to interview a friend, Ieisha La’Porte-Mack, who is the wife of entrepreneur Neil Mack Jr. She gave me her advice on what steps she and her husband took in order to start their own business from the ground up.

She explained to me the steps that she took at the start to become an entrepreneur. First, she had to look at the demographics of Buffalo, then she had found out what was lacking in the community. After researching and finding the information she needed Ieisha LaPorte-Mack start formulating ideas. Her next step was to go to the library and find a business management book. She then wrote a business plan and got a copyright on her idea.

So, she went to the City Hall and filed for a DBA and got a business license. She said the average cost was $50-$100. Then she had to get an attorney and that cost her about $500 in order to set up a LLC (Limited Liability Corporation). She also said that she went online and found a website called ASHOKA.COM. This site, she said, “sponsors entrepreneurs and help them to financially start their business”. ASHOKA.COM is an organization that helps the growth of the global citizen sector. Being that Ieisha Mack is trying to run a non-profit organization. ASHOKA.COM was a great place to go and get the help that she needed.

Ashoka envisions an Everyone A Change maker world. A world that responds quickly and effectively to social challenges, and where each individual has the freedom, confidence and societal support to address any social problem and drive change. Ashoka strives to shape a global, entrepreneurial, competitive citizen sector: one that allows social entrepreneurs to thrive and enables the world’s citizens to think and act as change makers. (ASHOKA INTERNATIONAL WEBSITE, 1980.

Rather than leaving societal needs for the government or business sectors to address, social entrepreneurs are creating innovative solutions, delivering extraordinary results, and improving the lives of millions of people (ASHOKA INTERNATIONAL WEBSITE, 1980)”. When Ieisha LaPorte- Mack found this website she was very pleased to find out that this organization was the perfect match for her nonprofit organization.

The rest was a piece of cake, she said, “all I need now is sponsors for food, entertainment, decorations, and clothes.” Her last step was to make sure that she marketed and advertised really well in order to have people know about the events that would be coming up. 

ASHOKA INTERNATIONAL WEBSITE. (1980). Retrieved May 29, 2010, from ASHOKA.COM: http://ashoka.com/about

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Written by: Edward Thomas III, Bryant & Stratton BA Student

Living in Buffalo, New York for the majority of my life, I have come to realize that this is a great place to start and build a small business. All over the city, one can see Mom & Pop kind of stores, Pizzerias that aren’t part of any major chain company, and little shops and boutiques. One prime example of this is the Elmwood Village. But starting a small business isn’t something you can just say and it happens; there are steps that one must take in New York State in order to try to have success at opening a small business.

The first step I believe one would take in opening a small business is find someone that they know that is a successful small business owner that they could use as a mentor to help them and guide them when needed. Ask them questions on how they became successful with their small business so one could try to follow in their footsteps. According to Business.Gov (2010) there are about 10 steps one should take when starting a small business in the State of New York and they are the following:

1. Research & Plan Your Business,
2. Get Business training & Expert Advice,
3. Select a Location,
4. Finance Your Business,
5. Select a Business Name,
6. Determine the Legal Structure of Your Business,
7. Get an Employer Identification Number “Federal Tax ID Number” (EIN),
8. Register for State Taxes,
9. Obtain Business Licenses & Permits, and
10. Employer Responsibilities (As for hiring staff).

One key factor stated by Business.GOV would be location. I mention this because it is important to be in a place with heavy traffic of those interested in their products and/or services. Places like Bidwell, Elmwood Village, Allentown, and Amherst along Niagara Falls Boulevard or Sheridan Drive would be some good locations and even around local colleges and universities if products and/or services can be used by students.

Following the steps stated above would help one in the Western New York area begin the adventure of becoming a successful small business owner. Networking can be a key as well. One should try using local companies for their needs to help grow the local economy. One could also use this site, MicrobizBuffalo, for networking purposes.

For more tips on starting your own business also check out this link.

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