Soundview Business Consulting

WELCOME to SBC's New & Noteworthy page, where you will find recent news about SBC and its clients, noteworthy information regarding various business topics and trends, useful web links, and more.

SBC NEWS 

New!    The Brooklyn Economic Development Corporation (BEDC), in conjunction with New York City Small Business Services, has invited Brendan T. Guastella, principal of SBC, to conduct a two-day workshop "Diagnosing the Health of Your Business," on March 24, and March 25, 2010, from 8:30-10:30am, at Capital One Bank, 356 Fulton Street, Brooklyn, NY.  RSVP at 718-368-6790 or at www.bedc.org. 

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Jan. '10  - SBC is pleased to have assisted noted restaurateur Rafael Palomino with the opening of his latest establishment, Black Rock Tavern, in Fairfield, CT.  Mr. Palomino currently owns and operates six restaurants in New York, Connecticut and Pennsylvania, and is planning new ventures in Virginia and Florida.

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Nov. '09 - SBC successfully brokered the sale of Renaissance Java Cafe in Boerum Hill, Brooklyn.  The new owners will continue to operate the business under its current name.

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Sept. '09 -   Brendan T. Guastella, principal of SBC,  delivered a workshop on September 24, titled Understanding Cash  Flow, sponsored by the Brooklyn Economic Development Corporation (BEDC).  Brendan has previously conducted entrepreneurial training classes for BEDC's Summer 2009 LAUNCH program.

"Brendan, thank you for delivering an invaluable service to our clients....you've shown such care and dedication." -- Mercedes Gomez, Director, BEDC LAUNCH Program. 

For more information about BEDC programs and services, go to bedc.org.

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Sept. '09 -  SBC acted as broker for the sale of the restaurant  formerly known as Maki Sushi, on Fort Hamilton Pkwy, Windsor Terrace, Brooklyn.  The space is expected to re-open shortly as Brancaccio Food Store.  SBC located the buyer, negotiated the terms of sale, and worked with the landlord to obtain its consent to the sale.

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Feb. '09 -  SBC was featured in The Brooklyn Ink's report on financial difficulties facing the local restaurant industry:  http://thebrooklynink.com/featured/restaurants-closing-shop  

Feb. '09  - SBC has successfully obtained federal trademark registration of Pongo Power Inc.'s stylized name/logo.  Pongo Power operates a personal fitness studio in Brooklyn, NY. 

NEWS, IDEAS AND TRENDS

For many local businesses, energy costs can take a huge bite out of the bottom line.  Energy costs are unusually high in New York State due to high taxes and fees, and a regulation that requires utilities to use expensive natural gas rather than coal. Energy in New York costs 21.2 cents per kilowatt hour, while the national average is just over 10 cents.  Yet a recent study indicates that only about 1% of small businesses in New York City have tapped into a variety of federal and state programs that offer energy audits, grants and other incentives.  For example, ConEd recently launched a small business program offering up to $100 worth of energy-efficient equipment, but only a handful of businesses have taken up the offer. The program has funding for 6,000 customers a year, and can also pay for up to 70% of the cost of large-scale installations.  The reasons for these small business programs being so under-utilized?  The primary culprits appear to be poor marketing and time-consuming application requirements that scare off potential participants.  SBC believes that for many businesses the potential long-term cost savings makes it worthwhile to explore these energy programs.

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Although franchises have not been immune to the recent economic difficulties, they remain a strong and potentially profitable alternative for the new entrepreneur.  In certain segments, franchises experienced strong growth in 2009, especially those that served the needs of belt-tightening consumers (think of Subway and its $5 footlongs).  Some of these opportunities also come with a relatively low cost of entry, including franchises in such areas as personal fitness, childrens' services and cleaning services.  For a wide ranging discussion of the franchising world, see the January 2010 issue of Entrepreneur Magazine at www.entrepreneur.com.

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A contentious battle is shaping up over a Paid Sick Leave bill introduced in the New York City Council.  The proposed bill would require all New York City businesses, regardless of size, revenue or nature, to provide employees with up to nine paid sick days. The bill further expands the definition of sick days beyond federal guidelines and penalizes employers ($1,000 per instance) if found in violation of the law - including any actions broadly considered retaliatory.  Although mandatory paid sick days may sound like a good idea to some, opponents claim the bill is is bad for business and employees because (a) many struggling small businesses cannot afford the additional expense; (b) it will lead to excessive absenteeism; (c) the bill prohibits employers from challenging the validity of an absence until the employee is out three days; and (d) employers will offset the additional costs by hiring fewer employees or scaling back other benefits.

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Despite recent federal programs to increase the flow of loans to small businesses, bank lending remains tight.  Many entrepreneurs and small businesses have relied on non-bank sources to finance their startups or to stabilize cash flow.  Examples of such financing sources include factoring (where the factoring company  purchases accounts receivable at a discount and handles the collection themselves); asset based lending (where loans or lines of credit are furnished, backed by the borrower's accounts receivable, inventory and other hard assets); and peer lending (individuals or pools of individuals who use the web to match up with borrowers).   As bank lending constraints have increased during the recession, the use of these alternative finaincing methods has increased dramatically.  Contact SBC for more information about non-bank finaincing.

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The recent federal stimulus plan and small business initiative contain many programs and provisions designed to assist the small business community.  For example, did you know that anyone who buys stock in a small business between the enactment date of the stimulus package and 2011 is eligible for future capital gains tax breaks?  If the stock is held at least five years, 75 percent of any gain can be excluded - up from the current 50 percent – from an investor’s tax liability.   Contact SBC today to see if your business can take advantage of any of these new programs.

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