Oswego County Business Magazine

Monday July 27, 2009

Record Number of People Seeking Help at SUNY to Start a Business

Major trend is the age of people looking to open businesses for the first time?50 and older

By Dola Deloff

An uncertain economy is bringing with it a record number of people seeking a different type of employment—self-employment, according to Larry Perras, a senior business adviser with the Small Business Development Center at SUNY Oswego.

“We’ve been quite busy,” Perras said about his office over the past three months. Not since 2004 has the agency seen such a surge of interest in people owning their own business.

“We average around 80 clients during this time period. This year—98,” he said. “People are concerned about their jobs and potential lay-offs.”

The business clients looking to open a business are diverse, according to the business adviser—restaurants, bakeries, the majority in retail.

John Halleron of the Self-Employment Assistance Program with the New York State Department of Labor, is seeing another trend.

“There’s a lot of creative people out there,” he said. “They’re choosing businesses with which they have experience or a special interest.”

Another trend, according to Perras, is the age of people looking to open businesses for the first time—50 plus. “These people, for the most part, have seen a drop in their investments,” the adviser said, referring to the recent downturn in the stock market. “They see their own business as a better investment.”

Vital resource

The services the SBDC provides have been useful to many, according to the senior adviser. Perras said that roughly 30 percent of the inquiries actually turn into actual business owners, many of them taking advantage of the agency’s micro-enterprise course which leads students through the process of opening a new business from researching to building a business plan to seeking financing.

Perras emphasizes the importance of research. “Some people don’t want to come see us until they’ve done the research on their idea,” he said. “We prefer they see us first.”

The agency, he said, can provide valuable information that would be challenging for most people to find on their own.

“We can look at demographics and see if there are potential customers in the area in which the potential business owner is seeking to open that business,” Perras said. “We can look at psychographics. For instance, many wine drinkers happen to be avid readers.”

The purpose of psychographics is to examine lifestyles and interests of customers of various products and services. “It helps with marketing and can be valuable information,” the adviser said. “If you’re looking to open a wine store, for instance, you may want to consider a location near a bookseller.”

Rave reviews

Fred Greco, co-owner of Greco’s A Touch of Country, a bakery/café in Mexico, received the services of the Small Business Development Center while his family was going through the process of opening their business. “The information and assistance we received from them was very helpful,” Greco said.

The consultants at the SBDC can also put potential business owners in touch with other agencies that can provide additional assistance, such as the Community Development Office, Operation Oswego County, and the Department of Labor for information about the SEAP program.

The SEAP, of which Halleron is an adviser, is for displaced workers receiving unemployment benefits who would like to open their own business. “The program makes it possible for clients to continue receiving benefits while they are receiving training and even once their business is open,” Halleron said.

There are strict requirements for the program, the adviser said. The potential business owner must complete 24 hours of classroom training in starting a small business. The micro-enterprise training program offered by Perras’ agency fulfills this requirement, Halleron said. Next, the client must complete two one-on-one sessions with an “experienced mentor” such as Halleron or Perras, who help with paperwork and further development of the business plan and securing financing.

Typically, the participant in SEAP completes the training within the first 13 weeks of receiving unemployment benefits. Most clients can continue receiving the remainder of their 13 weeks of benefits even if their earning money with their new business. “This is definitely what attracts many people to this program,” Halleron said, adding that it’s a safety net of sorts. Clients cannot, however, obtain a part-time job outside their business and continue receiving unemployment benefits, the adviser added.

Halleron said that lately there has been an increase in interest in SEAP, but he cautions that it’s not for everyone. “It’s an option to explore,” he said, “but there are definite requirements.”

The Small Business Development Center and Perras can be reached at 312-3492, and Halleron’s office for information about SEAP can be reached at 312-5498.