Sullivan County Grants for Workforce Training and Development

Sullivan County Community College (SCCC) has access to training funds to support the start of a new business, expansion of an existing business, or increased productivity. If you think skill development can help enhance your company’s performance, you owe it to yourself to find out if these grants can help your company.

Here are some points to keep in mind:

SCCC will work with you to prepare and submit proposals for training.
The maximum award is for is $ 50,000.
· The employer must contribute at least 25% (of the total project cost) in matching funds. At least 10% must be in the form of cash. The remaining 15% may be comprised of in-kind commitments such as training materials and trainee release time.

· Employers must be able to document the benefits and impact of training upon completion of the project

· Projects may be scheduled to begin on September 1, 2009 and continue until August 20, 2010. All proposals must be postmarked by the deadline of Friday, July 31.

If you are interested attached is a list of guidelines.

For more information, please contact Stephen Mitchell, Dean of Workforce Development at 434-5750 x4337 or smitchell@sullivan.suny.edu.

What are Loan Covenants?

With greater attention being paid to the details of commercial lending, we get asked more and more about loan covenants. Loan covenants are conditions a borrower agrees to comply with when accepting a loan from a bank. Loan covenants are put in place to ensure the bank has a continual understanding and report of business condition and actions. It is important for a business to comply with loan covenants as failure to comply can put the loan into default.

Banks usually put loan covenants in place to accomplish the following:

Maintain Loan Quality,
Keep adequate cash flow,
Preserve equity,
Maintain an updated picture of the borrowers financial condition.

Some common loan covenants are:

Maintenance of adequate Hazard and Content Insurance coverage,
Key Main Life Insurance,
Payment of income and property taxes, fees and licenses.

In addition to these types of covenants, lenders also add covenants that ensure borrowers maintain certain key financial ratios.

These include:

Minimum Quick and Current ratios, which demonstrate liquidity,
Minimum Return of Assets and Equity, which demonstrate profitability,
Minimum Working Capital, Equity and Maximum Debt to Net Worth, which demonstrate leverage.

These financial indicators and ratios are checked annually when a lender reviews financial statements and tax returns.

Lenders will also have loan covenants that restrict borrowers from doing things that may be detrimental to the condition of the business.

These may include:

No change in management or merger without prior approval,
No additional loans without prior approval,
Limited dividends and owner withdrawals.

The more mature the relationship between the lender and the borrower, the less need there may be for loan covenants. The covenants are listed in the loan agreements between the business and the bank. A business should review these covenants with their banker and their legal counsel prior to moving forward with a loan agreement. It is important that the business owner is aware of these covenants, as they must be complied with. Banks use the loan covenant to ensure the original conditions they provided financing under are maintained and that any negative changes to these conditions are uncovered before it is too late.

Meet my new friend James

Sorry for the long gap between posts. I am looking forward to getting back into the swing by providing great tips and resources to help your business.

I have been taking my own advice and having some excellent business lunch dates with local business people and members of my BNI chapter. Yesterday I went to lunch with James Danella of Media Vison Advertising.

It was a great opportunity to learn a little about each others businesses. You can look forward to hearing more from James in coming posts on this site. I will alos share the link to his blog as well.

James has been in the advertising production and agency for 25 years. Even shocked himself. He specializes in providing high quality and impactful advertising solutions to small businesses. He takes the time to learn the needs of the business and then provide solutions that can be monitored for effectiveness in driving sales.

There was more to our lunch, but as we both talked and talked I will need time to process what we discussed and I’ll gladly share this information when I better undestand it.

You can look forward to more information from James regarding marketing and advertising. If you need this information sooner email him from here.

James can be reached on line at jamesd@mediavisionadvertising.com

Being a Winner Is No Longer Enough, , Business Professionals Must Focus On Becoming a Champion

I was working with a business coach a few years ago who would challenge me to keep at the forefront of my mind a focus question. The question was “what would a winner do?”

When I get up in the morning, when I get to the office, when I was faced with a challenge this question would drive my behavior focusing attention on the thoughts, feelings and actions of a “winner.” That was five years ago.

I realized on Monday, December 29, 2008 that being a being a winner is no longer enough, in sports, business and in life. The firing of the National Football League’s New York Jets’ Head Coach Eric Mangini opened my eyes to this phenomenon. Mangini, having just completed his third season with the Jets with a winning record of 9-7, just one year removed from a 10-6 season and a berth in the playoffs, lost his job.

I did some research and found that of the five other NFL head coaches given pink slips immediately after the completion of the most recent season, fifty percent of them had won at least as many as they lost. Two of those three had winning records and had won at least one Super Bowl during their overall tenure with those teams. Interesting.

I decided to look deeper. In 2008 four Major League Baseball Managers were fired, all during the season. Only one of those four had a winning record at the time of their firing. But two of the four were just a few games shy of a winning record and were released before the season reached the half-way point.

Now, for the really absurd. In the National Hockey League (the sport I follow most closely) three coaches were fired in the fall of 2008, less than one-third of the way through the current season. One of those won a Stanley Cup Championship just three years ago and one of those three came off a winning season last year. And then there is the story of Claude Julien, former head coach of the New Jersey Devils in 2005. After winning the division championship with a 49-24-9 record and qualifying as the top seed for the playoff tournament, he was fired between the end of the regular season and the first game of the playoffs (this year Julien’s Boston Bruins lead the league with a 33-8-4 record, look out Claude!).

What this means for those in the business world is that it is time to think about how performance is managed. Is mediocrity accepted in your organization?

Not one business leader I’ve spoken to regarding the personnel changes they have had to make during their career expressed regret that they pulled the trigger too early. Every one lamented they waited too long to make the change.

It’s time to move beyond hoping to hire winners for your organization. It’s time focus on hiring and developing Champions. As you can see from the recent examples of professional sports franchises, being a winner is no longer enough.

 Striving to be a winner puts the focus on just winning more than losing. A winner needs to win one more game than they lose and that is mediocrity. In sports that is never enough to get a team into the playoff tournament for a chance to win the Championship.

There are five personality traits of a Champion in Business. I will be sharing those in a workshop on Tuesday, January 27th at the Orange County Chamber of Commerce from 8am – 10:30am. Tuition is only $20 and all proceeds benefit The Community Foundation of Orange & Sullivan. To register please visit:

http://www.weismansuccessresources.com/championworkshop.

SBA Programs for American Veterans

The Small Business Administration (SBA) has a variety of services available to American veterans who are looking to transition from the military to small business owner in the private sector. Each SBA office has a designated Veterans Business Development Officer. Their role is to help veterans prepare and plan for their new business venture. The Veterans Business Outreach Program provides business development training, counseling and mentoring to eligible veterans. Small Business Development Centers (SBDC) and SCORE (Service Corps of Retired Executives) provide management experience to veterans whoa re current or prospective business owners.

 

The Patriot Express Loan program is one of steps the SBA has taken to increase their ability to help veteran owned businesses. The following groups are eligible for the Patriot Express Program:

·        Veterans;

·        Service-disabled veterans;

·        Active-duty service members who are participating in the military’s Transition Assistance Program;

·        Members of the Nation Guard and Reserve;

·        Current spouse of any veteran, (except if dishonorably discharged)

 

The Patriot Express Loan can be used for most business purposes.  These include start-up expenses, equipment purchase, working capital and inventory. In some cases real estate purchases related to the business may also qualify. Follow this link to find out more. http://www.sba.gov/patriotexpress

 

The SBA also offers special assistance for Reservists and National Guard soldiers who are called to active duty. Reservists and National Guard members who have an SBA loan for their business my request rate reductions and loan payment deferrals from their lender after they receive activation orders.

 

The Military Reservist Economic Injury Disaster Loan Program provides low interest rate loans to eligible small businesses to cover their operating costs as a result of the loss of a key employee who is called to active duty. The SBA has set up a special web page to provide more information about this program. Click on the following link to learn more. http://www.sba.gov/aboutsba/sbaprograms/reservists/index.html

 

The SBA has also established the Office of Veterans Business Development (OVBD). The OVBD develops and distributes materials such as the Veterans Business Resource Guide, VET Gazette and Getting Veterans Back to work. These resources can be accessed on line at http://www.sba.gov/VETS

 

Hopefully these resources are helpful for your new business or are able to provide assistance for your existing business. Please cal or email me with any questions. Like you, I am a Veteran and would like to help you navigate your way to the right program for you.

Empire State Development’s Linked Deposit Program Helps Businesses

Empire State Development offers a program to New York State businesses called the “Linked Deposit” Program. The program is designed to help New York State businesses compete in our changing economy. The program is designed to encourage eligible businesses to make investments and undertake projects that will contribute to and improve their competitiveness within their markets.

 

The Linked Deposit program provides affordable capital based on interest rates that are subsidized by state deposits. The business owner needs to decide on the project, apply for financing through their commercial bank and apply for the Linked Deposit program. If the project qualifies, they close the loan with the bank at the full rate. A rider is added to the loan documents, which reduces the rate based on the qualification (up to 3% is certain cases). Once the loan is closed, Empire State Development opens a CD for the loan term with the commercial bank. The bank pays reduced interest to Empire State Development and uses the rest of the interest to offset the loan payments. The Business Owner and the Bank win.

 

The rate reduction is not automatic and some thought has to go into the process and the application.  The business owner must demonstrate the following:

 

            The project must improve competitiveness and profitability

           

The importance of the reduced cost of the borrowing to the ability of the business to take on the project.

 

The number of jobs that will be created or retained in New York State by the project.

 

 

The reduced interest rate is available up to 4 years. The business owner may take a loan with a 5 or 7-year term, but they will only get the reduced rate for up to 4 years. Most businesses will qualify for a 2% rate reduction if they meet the criteria mentioned above.

 

Some business may qualify for up to a 3% rate reduction. Business that are:

 

            Located in NYS Empire Zones with less than 100 employees.

           

Projects that will create full-time permanent jobs within the Empire Zone.

           

Businesses in Highly Distressed areas

           

Certified Minority or Women Owned Businesses (must meet certain criteria)

 

Defense industry manufacturers looking to reduce their dependence on DOD or other military contracts.

 

Many business owners have or are considering stopping expansion or waiting to put on equipment for new processes for fear of economic conditions or because they feel the cost of borrowing is too high. This program enables these businesses to reexamine these plans and move them forward if they qualify.

 

If you business is considering an expansion, a new equipment purchase, or would like to know more about this program, please email me at JKlassen@ MTB com. You can also call your local Empire State Development office. This information is on the web at www.nylovesbiz.com.

 

Don’t quit yet. You may be able to launch your project ahead of the next boom.

Keeping your Account Receivables rolling in

With the condition of the economy everyone is feeling the pinch. Businesses that never had problems collecting from their “good clients” are waiting longer and longer to get paid. Yet your vendors still want to be paid on time.

I took the time this week to ask a couple of my clients how they were handling this and they were happy to share their ideas.

Richard Pencak of Pencak and Company, a Custom’s House Broker started to see this in his business. He has his staff proactively call clients after a couple of days. Sometimes this works, obviously sometimes it does not. When it goes beyond 5 to 7 days he calls the company principal and has a business owner to business owner chat. This has yielded him the best results. The staff still works the process, they just get him involved sooner. This also helps him to keep a sharper eye on the activity of the business.

Michael Martin of the Martin Law Group PC has added a credit card payment option. This makes it easier for his clients to pay  a retainer upfront. It is also easier than writing a check. This has helped him to increase the amount of the retainer he asks for and ensures he gets paid for his work. This is becoming a very popular option for Attorney’s and Accountants.  Mike says, ”It eliminates the uncomfortable conversation when the work is complete and the client doesn’t want to pay the full amount owed.”

Early payment discounts are used by some businesses to reward clients for early payments. Make sure you don’t over reward folks. They should pay on time anyway.

Factoring is yet another option. A factor evaulates your receivables and purchases them from you at a discount. Once they purchase your receivables, your clients pay the factor. Some companies use a factor when they are unable to obtain traditional lines of credit to finance their receivables. You should consult with your Attorney and CPA prior to considering this option.

There are certainly other options to consider if you are not being paid. Collection companies can help once things have gone too far.  Staying involved makes it easier to catch potential problems early and creating and easier system to receive payment can help you avoid problems.

Take Advantage of Networking Opportunities

Networking is a way of creating value for yourself by seeking out and cultivating relationships with other business professionals. To be effective, you not only need to take advantage of an opportunity when it’s presented to you, but also actively create value for your networking partners. This is how you make yourself attractive — by adding value and helping others achieve their goals. As Zig Ziglar said, “You can get anything in life you want if you will just help enough other people get what they want.”

For networking venues, consider joining private clubs, business organizations or a structured networking group. An excellent example is Business Networking International. Chapters are located throughout the country and you have the option to start your own. Each chapter consists of 20 to 40 people who gather weekly to build relationships, share referrals and increase business. To limit competition, no two members of the same chapter can belong to the same profession. A membership committee checks the references of each candidate to ensure they’re reputable.

Networking can also be done online. The largest business network online is called LinkedIn www.linkedin.com. It has 20 million members from around the world, representing 150 industries. Linked In is free to join. Paid accounts are available that offer more tools for finding and reaching people.

Another consideration is industry-specific online business networks. The largest is ActiveRain www.activerain.com. It has approximately 90,000 members and is a cross between a business network for real estate professionals and a blogging platform. Another is called Zolve www.zolve.com. Both are free and provide a place where you can network, set up a blog and share local market expertise.

Strategically Grow Your Company in 2009

The media has focused on the challenges of today’s economy and the lack of credit in the marketplace. Politicians have used this fear as fuel for their campaigns. It is tough out there.This makes it imperative that business owners begin to take control of their own destiny.

To help business owners and CEOs of small to medium sized business do just that a webcast is scheduled for Monday, October 6th at 2pm Eastern time called, “How to Strategically Build Your Business Using the Business Growth Calculator.”

Participants will be exposed to a powerful worksheet that will allow them to look strategically into the financial aspects of their business vital for growth and success.  All participants will also be offered the opportunity to download their own worksheet they can use to apply the process specifically to their own business and plot a strategy for success in 2009.     

To register for this poweful webcast click this link:
www.WeismanSuccessResources.com/webcasts

Jeanie Beers of the Newburgh BNI Chapter

Jeanier Beers is a member of the Newburgh BNI Chapter. She has forwarded me the following informaton to post. She recently attended the Shaklee National Sales Convention in New Orleans. Sounds like it was a great time. Best of luck Jeanie.

NEW ORLEANS, Louisiana. August 10, 2008– Jeanie Beers of Montgomery, NY recently joined thousands of social marketing entrepreneurs from the U.S. and around the world at the Shaklee Global Conference in New Orleans, Louisiana, August 6-10. Shaklee, the number one natural nutrition company in the U.S., holds its Global Conference annually to recognize and congratulate members of the Shaklee family for their successes and achievements.

 

This year, developed after years of research, Shaklee unveiled Vivix Cellular Anti-aging Tonic, a revolutionary breakthrough dietary supplement in the fight against cellular aging. In laboratory studies, Vivix ingredients have been shown to impact the four key mechanisms of cellular aging: DNA damage, genetic regulators, declining cellular energy production and the formation of Advanced Glycation Endproducts (AGE) proteins. Vivix ingredients help protect and repair cellular DNA and positively impact genetic regulators which help turn down cellular aging. The ingredients in Vivix also promote mitochondrial biogenesis, helping to increase mitochondrial efficiency in our cells to create energy, and are ten times more powerful than resveratrol alone at slowing AGE protein formation which can cause cellular damage that can compromise cell integrity and longevity.*

 

“We are proud to introduce the world’s best anti-aging supplement,” said Dr. Jamie McManus M.D., Chairman of Medical Affairs, Health Sciences and Education, Shaklee Corporation. A 30-day supply of Vivix delivers the equivalent amount of resveratrol found in 3,000 glasses of red wine, and Vivix ingredients have been shown in laboratory studies to be 10 times more powerful in slowing a key mechanism of aging than resveratrol alone.”*

 

Exclusive to Shaklee, Vivix is all-natural and formulated with clinically tested key ingredients. Shaklee has worked for years to isolate a unique profile of polyphenols that have been shown in laboratory studies to fight cellular aging, and has filed for multiple patents to protect this innovation.* Just one of the ingredients in Vivix has been referenced in more than 2,000 research publications. Vivix ingredients also support heart health, brain health and cardiovascular function, enhanced immunity, and joint health.*

 

“Shaklee is committed to creating the best all-natural nutrition products available based on extensive research,” said Beers, “I know that my clients and I can trust that Shaklee products are not only safe, but provide the best supplemental nutrition on the market.”

 

Beers started her natural health business eight years ago, and has found that helping others spread the word about health, opportunity and a better world has led to a successful home-based business.  For more information, contact Jeanie Beers at 845-457-9330 or visit www.OfficialHealthCounselor.com or www.shaklee.net/Products_4_Health

 

 

 

About Shaklee Corporation

For 50 years, Shaklee has been a leading provider of premium quality, natural nutrition, and personal care products, environmentally-friendly household products, and state-of-the-art air and water treatment systems.  In 2000, Shaklee became the first company in the world to be Climate Neutral™ certified to totally offset its CO2 emissions, resulting in a net zero impact on the environment. With a robust product portfolio, including more than 50 patents and patents pending worldwide, Shaklee has more than 750,000 Members and Distributors worldwide and operates in the U.S., Mexico, Canada, Japan, Malaysia, Taiwan, and soon, in China.  For more information about Shaklee, visit Shaklee.net/Beers.