nmbc better business #1

Better BusinessIssue #1 - May/June 2012

Published by the National Minority Business Council, Inc.

The Man BehindThe Burgess Group

NMBC BETTER BUSINESS #1 / SPRING 2012 / Visit www.nmbc.orgPAGE 2

This Issue

Better BusinessIssue 1 - May/June 2012

4 32nd Annual Awards Luncheon

6 NMBC NewsEducation + Entrepreneurship

11 Technology NewsThe new iPad

14 Finance ServicesBusiness Plan

17 NMBC BriefsHarlem Entrepreneur Fund

7 Cover / Member ProfileThe Burgess Group

16 NMBC BriefsNMBC’s April Business Report

18 Global Business NewsPotential Customers

12 Business & CultureMulticultural Audience Devel-opment Program

Volume 1 - Issue 1 - Spring 2012

NMBC Better Business Staff

Publisher / Editor In ChiefJohn F. Robinson

Executive EditorDawn Henning Campus USA

Contributing EditorsAlan J. RudeAmanda Luz Henning SantiagoBreno PiresDonna WilliamsFritz E. McLymont

Design, Layout & GraphicsBreno PiresEizle-Bern Galang

AdministrationAlisson HodgesJaquaye Hughley

120 Broadway, 19th Floor(212) 693-5050 | fax (212) 693.5048New York, NY 10271

NMBC Better Business is a free digital publication for NMBC’s members, sup-porters and partners. Know more about National Minority Business Council at:

http://lnk.co/IRZ1L

http://lnk.co/IRZY5

twitter.com/USNMBC72

youtube.com/USNMBC

NMBC BETTER BUSINESS #1 / SPRING 2012 / Visit www.nmbc.org PAGE 3

Publisher Page

The NMBC is proud to release the NMBC Better Business magazine in digital format after a 22 year absence.

The digital format of NMBC Better Business includes many of the same departments that the hard version of the magazine contain from 1980-1990. Many new departments have been added in this digital version of NMBC Better Business magazine are relevant today but did not exist in content 22 years ago. For example, our technology news depart-ment clearly is one that reflects the times that we are living and doing business in today.

Another new department in NMBC Better Business digital format that was not part of the 1980”-1990” printed version of the magazine is our Business and Culture depart-ment that talks about what the Metropolitan Museum of Art is doing to reach business persons that would not normally patronize the Museum through its Audience Develop-ment Program.

Our cover story for this new digital version of NMBC Better Business magazine is a long time member of the NMBC and former Board Chairmen, Mr. William H.Burgess, 3rd of the Burgess Group an Executive recoupment and placement firm. Mr. Burgess has been associated with the NMBC for over 30 years.

We at the NMBC hope you find this new digital version of NMBC Better Business magazine as exciting and useful business wise as our readers found it during the 1980”-1990” timeframe when it was published in the print version.

I take great pleasure in bringing back NMBC Better Business magazine to a new gen-eration of NMBC members and entrepreneurs in general. Please let us know what you think of the new NMBC Better Business magazine via our email: [email protected]

In the future, we will offer many opportunities to advertise in NMBC Better Business digital.

Respectfully,

John F. Rob inson PublisherNMBC President & CEO

A new beginning


NMBC News

A lunch tocelebrateThe National Minority Business Council’s 40th Anniversary “Kick Off” was held at the 32nd Annual Awards luncheon, at The Marriot Maquis Hotel in New York City

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NMBC News

On February 29th 2012, the NMBC hosted their Thirty Second Annual Awards Luncheon at The Marriott Marquis Hotel in New York City. This is the first of many events this year celebrating the 40th Anniversary of the National Minority Business Council. The event honored individuals who have excelled in their fields during the year. Renée M. Brown, CEO of C.W. Brown, Inc , was the Mistress of Ceremonies and David L. Stew-ard was the Keynote Speaker. Steward founded World Wide Technology, Inc. (WWT) in 1990. With over 20 years of experience in the technolo-gy industry, WWT is an extraordinary company achieving honors, respected clients and exceptional services around the globe. This year, the NMBC honored 14 companies in 9 categories. Check out the pictures of the award recipients.

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1. Outstanding Educational Institution Award Pace University | Lubin School of Business, Interactive & Direct Marketing Lab

2. Outstanding Minority Business Award CPS Union | Virtcom Consulting

3. Special Achievement Award - Metropolitan Museum of Art’s Multicultural Audience Development Initia-tive

4. Dena Coye Outstanding Woman Entrepreneurship Award - Peak Diversity Search, Inc. | The Studio | Spanier Building Maintence

5. Outstanding Technology Firm Award Info People

Outstanding Corporate Supplier Diversity Award 6. Northrop Grumman Corp. 7. BNY Mellon8. Outstanding Global Business Award

China International Exhibition Promotion9. Outstanding Veteran Owned Business Award

Compu-Tech10. Charles T. Haffey Community Service Award

Asian Americans for Equalityt


NMBC News

A five track comprehensive educational pro-gram and practicum to prepare business owners and their senior staff to grow and compete in the Global Economy. Program workshops will be taught by working professionals who are experts in their fields and who understand the needs of entrepreneurs. Participants will be able to take back what they learn in the classroom and apply it immediately to their businesses.

THE PROGRAM STRUCTURE & LEARNING TRACKSA. Management, Leadership & Strategic Plan-ning1. Personal financial planning and wealthbuilding strategies2. Developing personal leadership skills3. Special issues of minority and women ownedbusinesses4. Strategic planning & managing riskB. Growth Strategy & Financial Management1. Business plan development2. Accounting principles, financial analysis andcash flow management3. Business valuation, banking relations,preparing a loan package4. Raising private equity, venture capitalC. Brand Management & Marketing Strategy1. Developing a customer focused sales strategy2. Selling and sales negotiating tactics3. Developing marketing, advertising and

communications strategies4. eMarketing & social mediaD. Procurement, Alliances & Compli-ance1. Negotiating supply contracts2. Strategic supplier partnerships & alli-ances3. Responding to a bid invitation, pre-paringan RFP4. Survey of business, employment & intel-lectual

property lawsE. Human Resource Strategy & Develop-ment1. Talent acquisition and human resourcesmanagement2. Managing a technology based business3. Risk management principles4. Information systems for business ownersFor more informa-tion, contact the NMBC at [email protected].

Education + Entrepreneurship =

EMPOWERMENTThe National Minority Business Council, Inc. (NMBC), Monroe College and BNY Mellon have created the NMBC Executive Management Program for Minority & Women Business Owners


Member Profile

A successful entrepreneur since when he was a kid winning scientific awards and academic scho-larships, William H. (Bill) Burgess, III raised, sold and experimented on chickens, ran an art gallery and a high end office furniture dealership while serving on Museum boards. Those special quali-ties came from his family. No Burgess male since slavery has worked for anyone. Bill’s great, grand and father had their businesses and so had his grandmother. According to Bill, one of the greatest things about being an American is that one has the ability to determine one’s own destiny. “The most important thing about our capitalistic system is that it affords every American the freedom and opportunity to create and define themselves”.

In 1994, Bill launched The Burgess Group – Cor-porate Recruiters International, Inc., a mid to senior level retained executive search, diversity recruit-ing, training, human resources and management development consulting practice in New York City and New Fairfield, Connecticut with affili-ate offices in Birmingham, Alabama and London, England. The Burgess Group has distinguished itself for successfully placing mid to senior level minority, women and majority executives in major Fortune 100 companies in the consumer product goods and services industry; as well as in national and inter-national institutions, associations and organizations. The Burgess Group specialize in “strategic place-ments from the manager/director ranks through senior management and the corporate board room”. As demonstrated by its outstanding Client List, The Burgess Group is known nationally and internationally for identifying exceptional manage-ment and administrative talent for both profit and not for profit sector corporations and organizations

The Burgess GroupCorporate Recruiters International, Inc.In our global economy DIVERSITY matters and makes good business sense

(70/30%). It has extensive professional networks and associa-tions representative of all US populations and industry disci-plines. As a general-ist, retained search firm, The Burgess Group provides their clients an inclusive candidate slate on every search and guarantees their hired candidates for one (1) full year. Posi-tions recruited by The Burgess Group start at $75K and above. The best and the brightest diverse and majority tal-ent are built-in to its database and propri-etary search processes. The Burgess Group is certified with all city, state and federal agencies nationally.

Let’s talk about how you entered the business world. I was dating a woman who worked for Xerox. She earned more than I did,

even though I was the Director of the Brooklyn Children’s Museum’s MUSE at the time. She thought I could be a good Sales Representative, earn more money and suggested that I interview to work at Xerox. I got the job without even wearing a suit and later always exceed-ing my sales quotas knocked on every single door in the Empire State Build-ing and the garment district of New York City selling Xerox’s

“The most important thing about our capitalistic system is that it affords every American

the freedom and opportunity to create and define themselves”.

William H. (Bill) Burgess, III


Member Profile

complete line of reprographic equipment includ-ing the then newly introduced facsimile and color copier machines. At Xerox I decided that I wanted to sell office furniture because I could use more of my design background calling on major corporate facilities and architect and design firms. In 1982, I partnered with three office furniture dealers in New York City that owned Furniture Consultants, Inc., the best full service professionally run office furniture dealership in the metropolitan New York area at that time. Prior to that, I had been Director of National Accounts Marketing for the Gunlocke Company. The president of the Gunlocke Company was trying to buy the company from its owner, Sperry Hutchinson, which he did. He asked me to help him by bolstering national sales and main-taining market share and in return he would help me go into my own office furniture dealership franchise with Furniture Consultants if the buy-out deal went through. I agreed and made sure our sales and marketing numbers were up and at levels that were in sync with the business plan projections.

What can you say about starting your own company and what would you advise new minority and women entrepreneurs? It was inevitable that I would own and operate my own company. My Dad drummed it into me from when he taught me how to write my name and count my time tables. He was strict and my Mother was a school principal and artist and I did everything they both told me to do with pride and honor. New minority and women entrepreneurs must first decide what they are passionate about. What professionally moves them, be it a particular industry, discipline, product or service. And then, they must really know the field they are embark-ing upon from soup to nuts. If financing is an issue, they should secure partners who can bring addi-tional financing, expertise, and contacts to the table. This will make them stronger in knowing about and battling against their competition and facing the many prospective client rejections they will en-counter. They must be focused and committed but

willing to be flexible and open to compro-mise, i.e. a piece or percentage of a deal is better than holding out for an all or noth-ing decision. Always give credit and thank the people, your cus-tomers and network associations that have helped you. Be sure to give back by buying and selling from each other and mentoring future entrepreneurs.

How do you think NMBC can help companies to grow? For many years I have been a mem-ber of the National Business Council, this 40 year old as-sociation has been dedicated to assisting minority and women owned businesses in obtaining procure-ment opportunities and contracts with national corporations and major govern-mental agencies. I first became a member in 1982 when I launched my office furniture dealership in Garden City, Long Island. I later directed the Membership Commit-tee before becoming an award winning MBE of the Year

firm and later Chair-man of the NMBC Board of Directors. During that period, the NMBC was well known and highly regarded for its MWBE procurement training and devel-opment programs it conducted in conjunc-tion with Fortune 500 corporations, fellow not for profits and city, state and federal agencies. Dur-ing my administra-tion of the Board, we started the NMBC Women’s Commit-tee which published its own national directory of women owned businesses and held the first of now an annual tradition of Women Business Owner Conferences with the continuing sponsorship of the Bank of New York Mellon. Another growth attribute of the NMBC has been its many membership business network-ing sessions, expos, seminars, events, and best practices presen-tations it has hosted on behalf of promot-ing MWBE, SBE and DBE enterprises.

What is the


Member Profile

current state of the economy as it relates to recruitment and what industry disciplines are recruiting? Since my business is about job creation, recruitment and diversity hiring and retention at the mid to senior levels, plus fine art sales; like all businesses, the 2007/8 near economic collapse and consequent down turn has made the subsequent recovery we are now going through extremely sluggish and painful. We have had to lay off staff, cut expenses, but now I can say there seems to be light appearing at the end of the proverbial tunnel. Industries that seem to be doing the most hiring have been in construction and all its discipline parts, engineering, project management, real estate development, architecture and facilities; education; healthcare, technology and security.

How does The Burgess Group view the future of mid-to-senior level professional recruitment? The Burgess Group has established itself as one of the premier retained executive search firm in the consumer product and services industry, over the past 18 years, yet economic market forces have necessitated that we become a more “one stop shop” source of recruiting, diversity search and human resource services. Our total programmatic offer-ing includes targeted executive search, diversity recruiting, corporate board governance consult-ing and soon will also offer temporary staffing services. This four-prong approach is The Burgess Group’s response to our clients recruiting require-ment requests and current economic conditions in the business world. However, in order to become a “single source human resource practice” for our past, current and future clients, the plan is to extend our offerings by adding temporary staffing services. Due to the increasingly adaptable necessity of the labor market and companies continuing desire to cut costs makes this new service a convenient tool to better satisfy all of our clients’ temporary, contingent and strategic employment requirements in volatile, competitive national and global eco-nomic markets. The Burgess Group’s main goal is: to become the retained executive search and diversity recruiting firm of choice for major domestic and

international compa-nies, governmental agencies, institutions, associations and orga-nizations worldwide.

Are you becoming more global? If so, how? If not, why? Absolutely, and we are. We have clients in France, the Neth-erlands, Switzerland, Australia and China. For international expansion, we use our office in New York for western hemisphere Ameri-cas, and our affili-ated office in London for penetrating all other world markets. London, being one of the other major

business centers in the world is viewed as a perfect location to base our expansion into Europe, Asia, and Africa. We are currently developing a timeline to achieve our overall interna-tional objectives, and since we already have a presence in London, our expan-sion is significantly underway and we will definitely con-tinue to take The Burgess Group diversi-ty recruitment brand global.Visit www.The BurgessGroup.com and www.Burgess FineArts.com.

WHB,III: “One of the greatest things about being an American isthat one has the ability to determine one’s own destiny”.

PURPOSE

The National Minority Business Council, Inc. (NMBC), a not-for-profit 501 (c)(3) corpora-tion, was founded in December 1972. The primary purpose of the organization is to enhance the success and profitability of the small business community through the provision of high-quality services, programs, advocacy and networking support. The secondary purpose is to

act as an information clearinghouse for the women- and minority-owned business enterprise (MWBE) community.

SERVICES

The NMBC is an umbrella organization that encompasses hundreds of small businesses lo-cated nationally and internationally. Given the various levels of managerial expertise among

the membership, the NMBC strives to develop programs that are suited to the needs of the novice as well as the seasoned entrepreneur. Current services include: an Annual NMBC

Vendor Directory, an Annual Corporate Purchasing Directory, Purchasing Exchanges, a Pro-curement Bulletin Service, the International Trade Program, the Export Management Train-ing Program, the Electronic Data Interchange (EDl) and Electronic Commerce (EC) Training Program, the Mentorship Management Training Program, and the NMBC Business Report Newsletter and Cable Television Show. In addition, the NMBC sponsors networking gather-

ings to help members learn from each other and gain business leads.

GOVERNANCE

The NMBC is governed by an eleven-member elected Board of Directors. To ensure that the NMBC’s governing policies are in line with the needs of the M/WBE community, only mem-bers are eligible for election to the Board of Directors. The officers of the Board are: Chairman,

Vice Chairman, Secretary, Treasurer, President and CEO.

SUPPORT

The NMBC is a private sector initiative funded by membership dues and contributions from foundations and major corporations. The Annual Business Awards Luncheon is the NMBC’s

principal fund-raising event. Each year NMBC supporters and friends gather to acknowledge the efforts of both large corporations and small, minority and women-owned businesses. Cor-

porations are acknowledged for their development of effective minority business development programs, while small, minority- and women-owned businesses are recognized for their sales

productivity.

ACCOMPLISHMENTS

The NMBC’s ability to be effective is strengthened by its history of strong program initia-tives, the active participation of its membership and its relentless pursuit of opportunities for its members. It has gained the respect and support of the corporate community by offering its members management expertise and entrepreneurial opportunities they desperately need to

develop viable businesses.

For more detailed information about NMBC initiatives, please call the NMBC at (212) 639-5050 or visit our Websites: www.nmbc.org, www.nmbcglobal.org.


Technology News

The new Apple’s success iPad was recently re-leased with new features that should impress and help not only customers, but companies that can use the mobile touch computer in their business.Four times more pixels then iPad 2, the new retina display transforms the entire iPad experience: everything looks and feels incredibly lifelike and perfectly detailed with 2048x1536 pixels of reso-lution in the same 9.7 inch space size. All of that thanks to the new technology combined with the new A5X chip with quad-core graphics.With 10 house of battery life you can use a lot of the new 5 megapixel iSight camera. The camera records HD videos in full 1080p using a new five-element lens structure.Now you can get high speed internet anywhere inside your network area with 4G connection available.

dar, Message center and much more, like business apps made exclusively for iPad.You can choose be-tween Wi-Fi only or Wi-Fi + 4G models and their 16GB, 32GB or 64GB versions, starting at US$ 499.

The new iPad

Chose over 200,000 apps from the App Store, enjoy the stabil-ity of the iOS system, iCloud and Dictation advantages and you can stream wirelessly whatever is on your iPad screen to your TV through the Air-Play. It comes with new Safari naviga-tor, Mail, FaceTime, iBooks, Maps, Calen-


Business & Culture

The 14-year-old Multicultural Audience De-velopment Initiative reflects The Metropolitan Museum of Art’s founding mission to educate and inspire by reaching out to all of its constituencies, including the many diverse communities of the Tri-State Area.

The goals of The Museum’s Multicultural Audience Development Initiative are to increase awareness of the Met’s programs and collections, to diversify Museum visitorship and Membership, and to increase participation in Museum activi-ties. The Initiative was founded in 1998 with a meeting of senior Museum staff and leaders from eight prominent African-American civic organiza-tions that include the arts in their programming: 100 Black Men, Inc., Jack and Jill of America, Inc., Delta Sigma Theta Sorority, Inc., The Greater New York Chapter of the Links, Inc., Boys Harbor, Inc., The National Black MBA Association, The National Medical Association, and the New York Coalition of 100 Black Women.

The purpose of this gathering was to articulate a strategy for establishing a mutually beneficial alliance with these organizations that would foster interest in The Metropolitan Museum. At the same time, Museum staff and Trustees sought

The Multicultural Audience Development InitiativeMetropolitan Museum of Art’s founding mission to educate and inspire by reaching out to all

to develop an un-derstanding of the concerns and needs of these organiza-tions. The Museum then established The Multicultural Advi-sory Committee, com-prising representa-tives of New York’s African-American, South Asian, Asian-American, Hispanic/Latino, American Indian, LGBT, Mus-lim and interfaith cultural leaders and organizations.

The Multicultural Advisory Committee meets on a regular basis with Museum staff to pursue its ongoing goals. The Committee articulates a strategy for estab-

lishing a mutually beneficial alliance between the local community and Museum whereby interest in the Muse-um is fostered among the Committee’s constituents and the greater community. We achieve these goals through several outreach activities, including:

• Receptions, tours, gallery talks, and lectures that are in-spired by the cultural diversity represented in the Museum’s col-lections;

• Support for and participation in many cultural and civic events that af-fect communities in


Business & Culture

New York and the Tri-State Area;• Collaborations with The Studio Museum in

Harlem, El Museo del Barrio, The New-York His-torical Society, The New York Times Community Affairs Department, Museum of Chinese in Amer-ica, and many other institutes, and organizations;

• Celebration of annual heritage months;Through all these joint ventures we invite guests

from participating institutions to discover the breadth of the Museum’s collections. Strengthen-ing our efforts through the media is also part of our objective. We are expanding our Initiative to reach community newspapers, radio, and televi-sion through advertising, press releases, and media alerts. We are also extending our Internet out-reach through the use of social media.

Examples of programming in recent years includes several family festivals such as ¡Fiesta!, which attracts Hispanic and Latin American con-stituencies, and a Lunar New Year celebration to help expand our Asian-American visitorship. The Initiative also hosts an annual LGBT “Post-Pride Party” around our roof garden and The Costume Institute exhibitions.

To prepare for the reopening of the Museum’s New Galleries for the Art of the Arab Lands, Turkey, Iran, Central Asia, and Later South Asia, MADI contacted over 100 leaders from New York-based Muslim organizations and interfaith groups such as American Muslim Peace Institute, Anti-Defamation League, The Interfaith Center of New York, Islamic Cultural Center of New York, St. Peter’s Church, The Tanenbaum Center for Interreligious Understanding, Women in Islam, and many others. MADI hosted several recep-tions and meetings to welcome these guests to the Museum and brief them on the new galleries and collections.

In addition to its pursuit of all these goals, the Met Initiative also strives to reach out to differ-ent age groups through The Mentoring Program, The College Group at the Met, and Spectrum. The Mentoring Program is designed to encourage college juniors from underrepresented communi-

ties and a variety of backgrounds to pur-sue museum careers. Mentees receive an honorarium to work in one of the Mu-seum’s departments for 10 weeks during the summer. The Mentoring Program also pairs mentees with Museum men-tors who provide career guidance and support. This program extends an inclusive and infor-mative hand to the college community at large, and provides new opportunities to college students interested in museum careers. In turn, men-tees spread the word at their universities about the Museum and its internship programs.

The College Group at the Met (CGM) is comprised of local students who plan and produce events and programs for other students at The Metropolitan Mu-seum of Art. CGM’s mission is to enhance Museum program-ming with regard to college students, to connect campus communities with

the Museum, and to increase student engagement at the Museum. Through a wide range of programming, CGM creates opportunities for all students—from all backgrounds and academic majors—to encounter and ex-plore the Met’s collec-tion in new ways.

Finally, Spectrum is an initiative orga-nized by Museum staff to target post-graduate-age visitors by providing fresh perspectives on the Met’s collections and special exhibitions. Spectrum events offer the chance to interact with contemporary artists, to discuss art, music, video, and new media, and to socialize with other Museum fans.

Donna Williams, The Metropoli-tan Museum’s Multicultural Au-

dience Development Initiative


Financial Sevices

How to Write an Effective Busi-ness Plan for Financing Growth

Reasons for Having a Business PlanThe most important document for an entrepre-

neur wishing to grow his or her business is the BUSINESS PLAN. However, many enterprise owners regard the preparation of a business plan with dread or at least extreme distaste. Business plan writing is viewed as a necessary evil best done during periods of ‘dead time’ and even better done by outside “professional consultants” who specialize in preparing plans.

A good business plan serves you, the entrepre-neur in two ways: 1) It is a selling document which can be presented to potential investors and lenders to obtain expansion financing and 2) it is a blueprint for you to best measure your perfor-mance. With regard to the first: it is likely that eventually you will be approaching investors or banks for the financing for expansion or for work-ing capital. These will require a complete business plan. Regarding the second purpose, without a plan you ‘will be flying blind’ without the ben-efit of having a road map to compare actual to planned performance.

If you are serious about expanding your en-terprise, you will regard the development of a business plan as a critical function, every bit as important as marketing, production or sales. It is important that you provide most of the input for the business plan. There are consultants who assert that they can write business plans which will result in successful fund raising. However, you should be extremely wary of these consul-tants and their services; investors and lenders can spot ‘canned’ presentations easily. Consultants are useful in assisting in structuring and packaging of plans, but the real heart of a business plan must

come from you, the business owner. Business Plan Format

When you prepare a business plan with the goal of raising capital, you should be aware of the importance of get-ting the attention of the target inves-tor or lender. The typical investor sees hundreds of busi-ness plans each year. This is especially true of private equity or venture capital firms. It is a chal-

lenge to have your plan stand out in this crowded field and the correct format is essential.

The format of a standard business plan is somewhat flexible but all plans should at a minimum contain: 1. Executive Sum-

mary 2. Key Investment

Considerations- the compelling reason to invest

3. Business Descrip-tion

4. Summary of Prod-


Financial Services

ucts and /or Services5. The Market – demographics, growth potential6. Marketing Strategy and Sales Plan7. Description of the Competition- why you are

different/better8. Technologies and Proprietary Position (where

applicable)9. Management and Ownership10. Capital Requirements and Use of Proceeds 11. Long-Term Development and Exit Strategies12. Financial Reports and Projections

While this is a great deal to cover, try to be as concise and clear as possible. Plans of more than 30 pages cause readers to have the MEGO (“My Eyes Glaze Over”) effect.

Readers of business plans almost always go im-mediately to two sections – the Executive Sum-mary first and then the Financial Projections. The Executive Summary has to provide a compelling story in a few words; ideally in no more than three pages. It should never be too cute or ‘gim-micky’. Your readers are serious people making serious investment decisions. The Executive Sum-mary will cover most of the items listed above but in abbreviated form and should always contain summary financial projections going out three years. Two points which are must be, but often are not, addressed in the Executive Summary are: 1) the amount of capital sought and 2) the contact information for the company and the names and addresses of the owners/founders/entrepreneurs. Not including these points will almost automati-cally send your plan to the ‘circular file.’

After the Executive Summary, the typical reader will go to the financial section. This will be divided into two parts: 1) actual (historical) financial statements, and 2) financial projec-tions. Your accountant (CPA) will prepare the actual statements whether they are compiled, reviewed or audited and will also assist in pack-aging the financial projections. However these projections should truly reflect your vision for the business and is the primary basis by which the

investment/lending commitment will be made. They will also establish the benchmarks against which your com-pany’s performance can be measured. Just putting year-by-year numbers on a spreadsheet is not enough; underlying the numbers should be specific, clear and well-thought out assumptions regard-ing every aspect of the business. A word of warning: in developing the financial projections, avoid the ‘hockey stick’ where sales and income of the busi-ness in the ‘out’ years (years 4 and 5) show huge increases

over the earlier years and when graphed, take the shape of a hockey stick. While prospective inves-tors prefer enterprises which can demon-strate ‘scalability’, that is the ability to achieve significant growth, they are sensitive to unrealistic projections and as-sumptions.

Finally, when you have completed your business plan, make sure to have your at-torney review it.

In summary, a clear, concise and compelling business plan is critical to obtaining financing and in measuring your progress as your business grows.


NMBC Briefs

NMBC’s April Business Report

The National Minority Business Council (NMBC) is pleased to announce that, working through R. W. Wentworth & Co, a new financ-ing initiative is now being offered to NMBC members and other business persons. Work-ing with Small Business Investment Companies (SBICs) in seven states and DC, we are able to provide lending and credit facilities to firms with a track record of successful operations.

SBICs are public /private partnerships oriented toward small business and to the creation of jobs in that sector. As such, SBICs can offer financing generally at more competitive rates and with fewer restrictive conditions than bank financing. The time from applying for a loan to approval is short; one month or less.

Of special interest to our membership are the SBICs in New York State, New Jersey, and Con-necticut. Companies wishing to access funds from the SBICs in these states must be headquartered in and have 80% of their workforce located in those states.

The range of funding we can offer is between $500,000 to $3.5 million for businesses with revenues between $1 million and $50 million. These investments are for companies that are at or near profitability and need additional capital to finance growth, but are beyond the risk param-eters of commercial banks. We have the flexibility to consider loans under a variety of structures, depending on the particular needs of the borrower.

For our debt investments, we look for the follow-ing attributes in prospective companies:

• An experienced management team in the industry

• Adequate near-term cash flow to service the

loan• Value in the

underlying business that may support a loan

• Strong growth prospects for the com-pany and industry sector

We have recently completed the first stage of a seven- fig-ure financing for an industrial firm. The loan was for a maxi-mum of 30 months with an interest rate of 12%. There were no closing costs and there will be no pre-payment penalties.

This initiative is designed to supple-ment the new JOBs Act in ensuring that small businesses have adequate financing as they expand. The JOBs Act, signed last Friday by President Obama, aims to make it easier and less expensive for small companies to grow and take their

company public, decreasing regulation around raising new rounds of funding for initial public offer-ings. The new JOBs Act makes it easier to raise funds through advertising, and direct solicitation of small investors while at the same time it eases detailed SEC re-porting and disclosure requirements. How-ever, to take advan-tage of the provisions of the JOBs Act, firms will have to reach certain milestones; our SBIC initiative provides the fund-ing to achieve those milestones.

To take advan-tage of the above financing programs being offered by the NMBC through R.W Wentworth & Co. , please contact Mr. Alan J. Rude at [email protected] or call the NMBC at 212-693-5050.


NMBC Briefs

Harlem Entrepreneu-rial Fund

The Harlem Entrepreneurial Fund (HEF) is an economic development initiative designed to help small businesses by providing loan capital and technical assistance.

Harlem Commonwealth Council, Inc. (HCC) is a not for profit, 501 (c) (3) economic development corporation founded by a group of Harlem com-munity leaders, professionals and business leaders in 1967.

HCC is dedicated to the empowerment of the Harlem community through education, entrepre-neurship, ownership and job creation.

Basic Eligibility• Bronx and Harlem-based small businesses• Three to four year track record• Start-ups may be considered• New York State organized entity

• A business plan• Good credit score

Products and Ser-vices for Eligible Borrowers

• Loans up to $25,000

• Low interest rates• One to three year

loan terms• Accounting and

business literacy seminars

• Small business financial man-agement

• Provider referrals

How to applyPick up and ap-

plication at our offices or download an application at our website: www.har-lemcommonwealth.org/hefapplication.

Submit a complet-ed application and interviews will be expedited.

361 West 125th Street, New York, NY 10027 (212) 749-0900 ext. 122, Fax: (212) 749-1042


Global Business News

Are you ignoring potential customers?

According to the Office of the US Trade Repre-sentative, 95 % of the world’s consumers are out-side of the United States and they represent 75% of the world’s purchasing power. Could some of those consumers use your products? If so, why aren’t you selling to them?

• Fear of nonpayment ?• Lack of working capital? • Inability to compete with non-US competitors

who offer more liberal credit terms? The National Minority Business Council, Inc.

(NMBC), an advocate of minority-owned busi-nesses, is partnering with the Export-Import Bank of the United States (Ex-Im Bank) to assist you.

Bruce Drossman, Export Finance Manager of Ex-Im Bank, visited the NMBC recently to discuss two programs intended to help small businesses access necessary capital and manage risk: the Work-ing Capital Guarantee Program and Export Credit Insurance.

The Working Capital Guarantee Program

The Working Capital Guarantee Program (WCGP) provides export working capital financing through commercial lenders, guaranteed by Ex-Im Bank. According to Ex-Im Bank’s website, financing can be used for “purchasing fin-ished products for ex-port; paying for raw materials, equipment, supplies, labor and overhead to produce goods and/or provide services for export; covering standby let-ters of credit serving as bid bonds, per-

formance bonds, or payment guarantees; and financing foreign receivables.”

To qualify, at mini-mum, you must have US based business op-erations and provide reasonable assurance of repayment (i.e., one year operating history, debt service ability, adequate capitalization relative to the requested loan amount).

Worried about your eligibility? Don’t rule yourself out before learning more about the program on www.exim.gov. Drossman described the typical program borrower as one with a large contract in relation to its balance sheet and “tight li-quidity, negative cash flow; losses or erratic earnings; minimal net worth; short operating history; and collateral shortfall; [with] work-in-progress financing needed.”


Global Business News

Need help? The NMBC offers assistance with the application process as part of their effort to help U.S. businesses expand and succeed internationally. “We rec-ognize the importance of providing the technical assistance and support that is necessary to ensure that each firm develops the capacity to succeed in the global marketplace over the long term, by tak-ing advantage of the current opportunities,” noted Fritz-Earle McLymont, Managing Director of the NMBC Global.

Are your working capital financing needs small? In March 2012, Ex-Im Bank announced it would soon be rolling out Global Credit Express, a pilot program to improve access to financing for small businesses with working capital needs less than $500,000. Drossman explained that although the WCGP has no predetermined minimum size limi-tations, “it has proven difficult to attract interested lenders under the Guarantee for small amounts. To address this, Ex-Im Bank announced the pilot introduction of Global Credit Express, which will provide for Ex-Im Bank direct-funded export work-ing capital facilities up to $500,000 in size to qualifying companies under referral from Origi-nating Financial Institutions.” Drossman expects the referral banks to be announced soon.

Export Credit Insurance Fear of nonpayment prevents many small busi-

nesses from succeeding internationally. Export Credit Insurance reduces the risk involved in extending credit to foreign buyers by providing up to 95% payment default coverage for commercial risks like bankruptcy and certain political risks like war.

Allergic to red tape and long application processing times?

Apply online for Ex-Im Bank’s Express Insur-ance. If you need a credit decision on one or two foreign buyers, and each buyer exposure is less than $300,000, Ex-Im Bank will process your online

application, make a credit decision on two buyers, and send you a policy quote within five (5) business days. Transactions over $300,000 take longer.

To qualify, appli-cants must be SBA defined small busi-nesses and have: “at least a year’s operat-ing history and a positive net worth; an average of less than $7.5 million in export credit sales over the last 3 years (excluding Canadian sales and any under letter of credit, cash, or sight payments);

an existing file with Dun &Bradstreet; and ten or fewer foreign buyers on credit terms. See the Ex-IM Bank website for more information.

Want the inside scoop on Ex-Im bank’s applica-tion process ? Visit NMBC.org to read notes from my Q&A session with Bruce Drossman, during which he spoke candidly about the elements of a success-ful application and provided recommen-dations for improving submissions.

©2011 The Bank of New York Mellon Corporation.

Diversity paints our world.

We value diversity in the workplace and in the marketplace.

In building an increasingly diverse supplier pool, we are able

to work toward our goal of offering priority suppliers real

procurement opportunities as they arise.

BNY Mellon is pleased to announce on-line registration.

To register, visit www.bnymellon.com/suppliers

select the Supplier Profile Form and follow the directions.

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