Crains New York - May 27, 2013 - (Page 5)

SMALL BUSINESS Firms get back to growth mode For the first time since the recession, ramping up becomes an option for many BY CARA S. TRAGER Access to loans improves Whether sparked by a manmade development, like the subway’s construction, or a natural disaster, like Superstorm Sandy, some small businesses are beginning to experience the kind of healthy growth that was more common before the recession—and wrestling with questions like whether to add workers or buy new machinery. A recent TD Bank survey of U.S. small business owners found that more than half believe their firm is performing at expected levels in 2013; 46% of those in New York state see expanding their business as their greatest opportunity this year. In some instances, better access to credit plays a key role in owners’ ability to jump on promising business developments. In fiscal 2012, despite the expiration of incentives under the Small Business Jobs Act, banks made 1,917 loans, totaling $723 million, in the New York City area, with both figures representing the second-highest amounts ever for each, according to the Small Business Administration. At Indoor Environmental, a $25,000 line of credit helped “ramp up for the additional business,” enabling the firm to hire more employees, buy additional equipment and To sign up for Crain’s SMALL BUSINESS newsletter, go to www.crainsnewyork.com/smallbiz. buck ennis M aria Vizzi has been coping with a challenge many business owners haven’t seen since the recession: fast growth. Her 11-year-old Bronx company, Indoor Environmental Solutions Inc., has found itself in hot demand since last year, when the pollution-spewing vent stacks accompanying the construction of the Second Avenue subway sparked an upsurge in requests for its services: cleaning and sanitizing sooty airventilation systems. The accumulated pollution had driven nearby condos and co-ops to seek out Ms. Vizzi’s firm. Six residential buildings,some with as many as 300 apartments, signed on. The additional accounts helped the company achieve a 45% jump, or a $150,000 increase, in revenue last year over year-earlier figures. “The gain is our best since the recession,” said Ms. Vizzi, the profitable firm’s founder and president. PIPE DREAM: Indoor Environmental Solutions has seen a 45% revenue jump in the past year. add another van to its fleet, said Ms. Vizzi. “We’re in a position now to handle more business than ever before,” she said. But fast growth can be a mixed blessing. Without a strategic plan for growth and strong cash reserves or financing, companies can implode, promising customers more than they can deliver and tarnishing their reputations. Deciding whether to satisfy immediate, burgeoning demand is a matter of doing the math, said David Rudofsky, president of Rudofsky Associates, a consulting firm in Manhattan.“Losing some of your existing customer base can be expensive.” Adding new hires and buying more equipment can also put a company in a precarious position if its business upsurge proves temporary, said Mr. Rudofsky, who suggests options like leasing equipment and hiring temporary workers. Lighthouse Generator Systems, in Far Rockaway,Queens,continues to experience strong demand for its services because of Sandy. Since last November, the profitable two-yearold company has been busy responding to an increased demand to install generators, according Avi Satt, a Lighthouse owner. Bigger projects Lighthouse’s pre-Sandy projects encompassed private houses, supermarkets and office buildings, with each installation bringing in $6,000 to $11,000 in revenue. Since the superstorm, the firm has been serving larger commercial properties, too, with such projects representing $40,000 to more than $300,000 in revenue, depending upon the scale of the project. Unable to meet all the demand on its own, Lighthouse joined forces with other firms. It tapped a large electrical and plumbing outfit to work only on its installations, and it partnered with another company, said Mr. Satt,“to share the workload and meet the demand.” Ⅲ Help protect the victims. Join us at The Harry and Jeanette Weinberg Center for Elder Abuse Prevention At The Hebrew Home at Riverdale Second Annual Awards of Distinction Breakfast Tuesday, June 11, 2013 8:15 AM – 9:45 AM RSVP by May 31, 2013 Honoring Event Chair Lesley Rosenthal, Esq. General Counsel, Lincoln Center for the Performing Arts and Author, Good Counsel: Meeting the Legal Needs of Nonprofits Allen I. Fagin, Esq. Janet DiFiore Partner, and Past Chairman Proskauer Rose LLP Champion for Change Award Westchester County District Attorney Champion for Justice Award Past Honoree Ira M. Millstein, Esq. Weil, Gotshal & Manges LLP The Weinberg Center, the nation’s first comprehensive shelter for victims of elder abuse, and its legal team, provide direct legal services to save the lives of older adults. Our goal is to support victims of elder abuse and restore them to a life of safety and dignity. Call us at 718-581-1234 or email development@hebrewhome.org May 27, 2013 | Crain’s New York Business | 5 http://www.nyserda.ny.gov/energy-values http://www.nyserda.ny.gov/energy-values http://www.crainsnewyork.com http://www.crainsnewyork.com/smallbiz

Table of Contents for the Digital Edition of Crains New York - May 27, 2013

In the Boroughs
In the Markets
Small Business
The Insider
Business People
Opinion
Alair Townsend
Greg David
Steve Hindy
Report: Largest Companies
The List
Classifieds
For the Record
Real Estate Deals
New York, New York
Source Lunch
Out and About
Snaps

Crains New York - May 27, 2013