Giving Small Business a Boost
By Miriam Rosenberg
The Coalition for Far Rockaway’s Women’s Economic Empowerment Committee made becoming an entrepreneur not so far out-of-reach as it presented leadership training on "Staring a Successful Microenterprise" last month at the Joseph P. Addabbo Family Center in Far Rockaway.
Joyce Moy (the Director of the Small Business Development Center at LaGuardia Community College) and Brian Gurski (a Loan Consultant for Accion) explained what it takes to get a mircoenterprise up and running.
A microenterprise is different than other small businesses. Its startup cost is $10,000 or less and is not the usual type of business that traditional lending services invest in.
Accion is an alternate source of finance for new businesses who can’t quality for a bank loan said Gurski. They provide loans from $500 to $50,000 to qualifying individuals.
"[Accion] works with people who have no credit or damaged credit," Gurski said.
Moy told those attending the seminar that before even starting up a new venture they should put their personal finances in order, obtain reports from all three credit bureaus to check for errors, and be prepared to make the kind of commitment that will be needed to succeed in business.
"Put in time to go to seminars," said Moy. "You need time to educate your- from page 36
self to succeed. "You take the time to plan what you are going to wear to a wedding85take the time to plan [your business]."
Though the Small Business Admin istration does not give direct loans, they do give guaranteed loans through from page 36
banks that guarantee the agency will pay a certain amount if the entrepreneur defaults said Moy.
Business plans and structures are very important to starting up a new enterprise.
If something should happen to the principal owner a backup plan is needed – like getting a spouse or partner to keep the business running Moy told those at the seminar.
There are several types of business structures that new business owners could use. These structures include a corporation (where shareholders are not liable for the debts of the business) and a LLC (in which an owner’s liability is limited to the amount of capital invested in the company.)
"An LLC is better suited to smaller companies85not looking to land up on the stock exchange," said Moy.
The major reasons businesses fail is lack of planning concluded Moy.
"If you plan and build a foundation you can, [in time], access capital to meet your business goals," Moy said.
New business owners or those thinking about starting a business can reach Accion at 212 387-0494. Their website is www.accionnewyork.org. Moy can be reached at LaGuardia Com munity College’s Small Business Development Center at 718 482-5303.