Salute to Small Business

2 | SALUTE TO SMALL BUSINESS | Friday | June 24, 2011

SBA 2011 Small Business Person of the Year Award:

Jim McCurdy & Jim Lynch, Maine Commercial Tire

By David M. Fitzpatrick BANGOR DAILY NEWS

It seems that anyone who knows Jim McCurdy and Jim Lynch, owners of Maine Commercial Tire, isn’t surprised that they won the SBA’s Small Business Person of the Year award for Maine. It’s McCurdy and Lynch who were a bit stunned.

“I was excited that we just got nominated — that really would have been enough for me,” said Lynch. “Then we actually won it, so that was fantastic. It was a real good slap on the back after everything that we’d all been through.”

“When we got the award, my first reaction was, ‘Okay, who else got an award?’” said McCurdy.

“They said … ‘You got the award for the whole state.’ And I’m thinking, ‘That can’t be right — we’re in the tire business.’”

McCurdy said retreading is about quality control, and while he can’t speak for his competition, he said MCT’s work is top-notch,

thanks in part to using Bandag equipment and rubber. It’s also thanks to the top-shelf employees who have made the company a story for the annals of Maine’s business history.

Old Town native McCurdy got into the retreading business in 1972 working for Noyes Tire Company in Portland. He began in the production shop and worked his way up to sales, and along the way observed and learned — and knew what mistakes he wouldn’t make if the business were his.

In 1985 McCurdy was recruited

by Reilly Tire of Vermont to manage its C.E. Noyes Tire division in Bangor. Lynch had been working at C.E. Noyes since 1979 and the two became fast friends.

In 1990, there were rumors that Reilly Tire was going under, and McCurdy and Lynch began planning their next move. When Reilly

abruptly locked all the doors one day, the duo was ready. “Jim and I already had a moral commitment to each other that we were going to do this,” McCurdy said.

They secured the franchise for Bandag, widely considered the premier retread company in the industry. Then they purchased Reilly’s assets out of bankruptcy, retained virtually all the previous production employees, and soon brought back several of the sales staff. McCurdy relocated to Bangor, and in the first year of operation, the new Maine Commercial Tire had $1 million in business, and increased it by $1 million every year thereafter.

Dark times came in the past few economically challenging years.

With fewer trucks working on Maine roads and drastically curtailed construction jobs, there were Continued on next page

BANGOR DAILY NEWS PHOTO BY TERRY FARREN

Jim McCurdy (left) and Jim Lynch, co-owners of Maine Commercial Tire and winners of the SBA Small Business Person of the Year award, pose with stacks of tires at their Bangor location.

Season of champions: saluting Maine’s small-business successes

By Eloise Vitelli Small businesses in Maine enjoy many champions – people and organizations willing to advocate for their chance to succeed – and

May was the month to celebrate these champions. National Small Business week, May 15 – 21, saw ceremonies in Washington, D.C., to honor nine such champions.

Maine’s senior Sen. Olympia Snowe was also honored in Wash-

BANGOR DAILY NEWS PHOTO BY DAVID M. FITZPATRICK

Maurice Dube, SBA District Director for Maine, addresses the crowd at the SBA luncheon in May 2011.

ington on May 4, by the Association for Enterprise Opportunity (AEO), a national organization dedicated to helping underserved entrepreneurs start and expand businesses. As ranking member of the Senate Committee on Small Business and Entrepreneurship, Snowe has a long track record of working to ensure small businesses have the tools, resources and regulatory environment they need to grow and thrive.

On May 5 in Maine the Small Business Administration held its annual awards luncheon in Bangor. Among those recognized were: Small Business Persons of the Year James R. McCurdy & James K. Lynch, owners of Maine Commercial Tire Inc.; Veteran Business Champion Kristine Schuman, manager of the Base Realignment and Closure Transition Center in Brunswick; Maine SBDC 2010 State Star Thomas Gallant; and Women, Work, and Community’s

own Erica Quin-Easter, Aroostook Microenterprise coordinator, as the Women in Business Champion of the Year.

These advocates were rightly applauded for their role in empowering entrepreneurs. While competition may be what motivates entrepreneurs – ‘I can build a better mousetrap’ – these public ceremonies give testimony to the important role advocates, advisers and admirers play in helping to sustain and inspire businesses through the inevitable ups and downs.

For those moments when doubt creeps in, exhaustion takes over, and questions outweigh answers, knowing there are champions out there can be the elixir that keeps one going.

“I love being a business owner,” said Gail Baillargeon, CEO of Acadia Clinical Research, a Bangor based medical research firm. After more than 20 years in the medical See CHAMPIONS, Page 6

This Salute to Small Business special supplement was produced and published by the

Editor/Layout: David M. Fitzpatrick Writers: David M. Fitzpatrick, Eloise Vicelli Photos: David M. Fitzpatrick, Terry Farren; some submitted by others Cover Design: John Koladish Sales: Linda Hayes To participate in next year’s Salute to Small Business special supplement, contact Linda Hayes at (207) 990-8136 or lhayes@bangordailynews.com.

To reach a wide audience with your organization’s message, consider running your own special supplement locally, regionally, or statewide.

For information, contact Mike Kearney at (207) 990-8212 or mkearney@bangordailynews.com.

SALUTE TO SMALL BUSINESS | Friday | June 24, 2011 | 3

Continued from previous page fewer tires to be sold or retreaded.

And McCurdy and Lynch weren’t willing to lay off the workers who had built the business and given their loyalty to the company.

The pair went to Peoples United Bank and secured an SBA-guaranteed loan to refinance the business.

“They really saved our bacon,” McCurdy said. “If we hadn’t been able to get that refinancing, I don’t like to think about what would have happened.”

They didn’t cut health insurance, although it would have saved the company $250,000 a year. They didn’t cut pay. Instead, they asked everyone to come up with any ideas to save money — any ways to cut $100,000 a month out of operating expense. And everyone came through with common-sense ideas the men wish they’d thought of before — from as big as asking their vendors to cut them price breaks (which they did) to saving $600 a year by not tagging scrap

tires. Now, the company is leaner and tighter, with a new outlook on cost control.

But both men make it clear that the biggest single factor in the company’s success is its team of dedicated employees. At the SBA awards luncheon in May, McCurdy broke down during his speech when he talked about his employees. It’s a level of appreciation that he and Lynch feel can’t be high enough for the people who make their company what it is.

“We won the Small Business of the Year Award for the state of Maine because of them,” McCurdy said. “We survived the recession because of them. Our customers love us because of them. When you say ‘Maine Commercial Tire,’ you really say ‘Steve Robertson and Dana Pierce, Robbie Sicles, Blaine Blodgett, Tammy White, the guys in the retread shop, and all the others’ — that’s the company.”

The company has 58 employees, who the owners can trust to do

their jobs with minimal oversight and who are empowered to make on-the-job decisions that benefit the customer, the employees, and the company.

“We have a culture that we’ve developed — the way we want our customers treated, the way we want employees to treat each other,” Lynch said. “There’s just a lot of respect around here.”

The company has locations in Bangor, Augusta, Lewiston, and Scarborough; runs 14 service trucks; 8 route delivery trucks and retreads 35,000 truck tires a year servicing businesses across the entire state. McCurdy and Lynch have a unique relationship that keeps their company successful.

“We agree to disagree,” Lynch said.

“At the end of the day, if the decision is to be made, if we can’t agree, then… it’s not going to happen. We have to find a way to agree on it.”

McCurdy said “ Jim and I feel that we earned this SBA Award by

BANGOR DAILY NEWS PHOTO BY DAVID M. FITZPATRICK

McCurdy and Lynch at the SBA annual luncheon in May. From left: Angela Butler of Peoples United Bank of Bangor, who nominated them for the award; John Butera, Senior Economic Advisor to Governor Paul LePage; McCurdy; Lynch; Jeanne Hulit, SBA Regional Administrator for New England; and Maurice Dubé, SBA District Director for Maine

surviving the last two years and that was made possible by the

efforts of our employees, we thank them sincerely.”

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4 | SALUTE TO SMALL BUSINESS | Friday | June 24, 2011

SBA 2011 Women in Business Champion

Erica Quin-Easter, Women, Work & Community

By David M. Fitzpatrick BANGOR DAILY NEWS

“Have You Ever Wanted to Start Your Own Business?”

That’s what the flyer in the grocery store asked, and Lindy Howe’s answer was “Yes.” For 17 years, she’d built experience as a dogsled musher, mostly as a volunteer. “It was always a dream to do it as a business, but it didn’t seem like it could be something that could work,” she said.

She called anyway, and soon found herself taking a three-part course through the Presque Isle office of Women, Work & Community. Right out of the gate, her instructor, Erica Quin-Easter, made it all very easy.

“She was a wonderful teacher and really pointed out the direction of how to start your own business,” Howe said.

Howe then enrolled in the 12-week New

Ventures course, in which Quin-Easter covered everything she needed to know, and plenty she didn’t suspect, about running a business. By the time she returned for a January 2010 follow-up, she and her business partner had launched Heywood Kennels, taking people on wilderness dogsledding adventures.

“I couldn’t believe that it could really happen at first, but Erica was just right there through every step,” Howe said.

Howe never forgot Quin-Easter’s help. So when she learned about SBA’s Women in Business Champion award, she nominated her teacher. “Erica’s a wonderful person,” Howe said. “I know what she’s done for me, and I know what she’s done for hundreds of other people just like me.”

The nomination paid off; Erica QuinEaster is the 2011 Women in Business Champion. “I’m just thrilled,” Quin-Easter said of the award. “It’s particularly heart-

BANGOR DAILY NEWS PHOTO BY DAVID M. FITZPATRICK

Erica Quin-Easter at her office in Presque Isle. Her wall is adorned with clippings from various stories about the programs at Women, Work & Community and the students who have gone on to launch successful small businesses

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warming because one of our New Ventures graduates locally nominated me for the award … It’s been such a pleasure to see her growth.”

Quin-Easter worked for 10 years in the non-profit sector as a fundraiser or director for organizations such as Maine Audubon, EqualityMaine, and the Center for Cultural Exchange. A few years ago, she and her wife, Kate, took some time off to travel the country, but planned to settle in Aroostook County, where Kate had grown up. They were in Arizona when Quin-Easter saw the job opening online, and she applied and soon landed the job. It was a perfect fit for

her, geographically and philosophically.

“I love doing public-sector work; I love working with volunteers, working with individuals who are trying to follow their dreams,” she said, “It seemed like a really exciting and unique organization to work with.”

Like Howe, many students have graduated from the 12-week New Ventures and gone on to run successful businesses. QuinEaster and WWC also run shorter courses and workshops covering all manner of business-oriented topics that give students the See QUIN-EASTER, Page 11

The members and staff of the Maine Motor Transport Association would like to offer our sincere

L U ATIONS!!

T A R G N OC to Jim McCurdy, Jim Lynch and everyone at Maine Commercial Tire for being recognized for their company’s excellence and leadership SBA 2011 Small Business Persons of the Year

SALUTE TO SMALL BUSINESS | Friday | June 24, 2011 | 5

SBA 2011 Veteran Small Business Champion

Kristine Schuman, BRAC Transition Center

By David M. Fitzpatrick BANGOR DAILY NEWS

In 2005, the Base Realignment and Closure committee announced that Naval Air Station Brunswick would close in 2011.

Plans began moving into place to offer reassignments to the 7,000 people who were either active-duty personnel or families of active-duty personnel, but there were two other major concerns in Brunswick.

First, Brunswick’s local economy would certainly be affected by the loss of several thousand people when the base closed. The Midcoast Regional Redevelopment Authority began plans to take control of the base, and has been instrumental in its redevelopment, both in bringing new businesses in and in converting the airfield into a private airport.

But what about the 700 civilian employees who lived and worked on the base, more than 400 of whom were veterans? Many had ties to Brunswick or Maine and didn’t want to leave. But while MRRA’s efforts to bring new jobs to the old base would create jobs for some, the Brunswick area didn’t have the available jobs for the rest, and many of them needed retraining in new fields.

Thanks to funding via a National Emergency Grant for a program ultimately operated by Goodwill Industries, Kristine Schuman was chosen to head the BRAC Transition Center. And for her efforts leading her eight-person team in a five-year reemployment and retraining push for those people, she’s earned the SBA’s 2011 Veteran Small Business Champion award.

“I was pleasantly surprised,” Schuman said of winning. “For me, it’s an honor, and I’m very happy to be recognized for the work that we do. I will take credit for leading

Venturing Forth?

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BANGOR DAILY NEWS PHOTO

BY DAVID M. FITZPATRICK

Kristine Schuman departs the stage with her award at the SBA luncheon in Bangor in May.

our team, keeping the Transition Center running, and keeping the relationships up that needed to be nurtured in order for us to stay being able to do what we do. But the work with the individual folks on the base — it’s a team effort.”

Schuman’s center set up on base in early 2006. It isn’t typical to have a five-year lead time for a base closure, and certainly not typical to have a civilian group on a base that early to begin the process of reemployment and retraining of civilian personnel.

Thanks to collaboration with many people and organizations at the federal, state, and local levels, including Maine’s congressional delegation, the combined effort paid off.

“Really great things happen when everybody works together,” Schuman said.

“Maine has learned how to do that well, and it has led to good results.”

The primary goal was to retrain and reemploy people. The secondary goal was to keep them in the area. “We always, of course, want to keep people in Maine,” she said. “And for the most part people want to stay in Maine — even if somebody is losing their job off the base, they likely have a spouse or children who they don’t want to relocate as well.”

Every case was different. Some people found jobs in the area or elsewhere where they could continue their careers. Others took the opportunity to train for new careers — often things they’d always wanted to do. Still others had ample skills but lacked the proper certifications needed in the outSee SCHUMAN, Page 11

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6 | SALUTE TO SMALL BUSINESS | Friday | June 24, 2011

Unlocking money you didn’t know you could get Launching or expanding a business with an SBA-guaranteed CDC/504 loan By the SBA The CDC/504 loan program is a long-term financing tool, designed to encourage economic development within a community. The 504 Program accomplishes this by providing small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.

A Certified Development Company is a private, nonprofit corporation which is set up to contribute to economic development within its community. CDCs work with SBA and private sector lenders to provide financing to small businesses, which accomplishes the goal of community economic development.

Typically, a CDC/504 project includes: • A loan secured from a private sector lender with a senior lien covering up to 50 percent of the project cost • A loan secured from a CDC (backed by a 100 percent SBAguaranteed debenture) with a junior lien covering up to 40 percent of the project cost • A contribution from the borrower of at least 10 percent of the project cost (equity) This type of setup means that 100 percent of the project cost is covered either by contribution of equity by the borrower, or the senior or junior lien.

Champions Continued from Page 2 research industry as an employee, she likes being in control, having the flexibility, and the responsibility to make her own decisions that being a business owner affords her.

Baillargeon said it does get lonely sometimes, but “we have a rich environment here in Bangor in terms of people willing to help. You can get an ‘aha’ moment from one conversation. Networking is important – a lot of people want you to succeed and are willing to listen.”

Before launching Acadia Clini-

How 504 Funds May Be Used.

Proceeds from 504 loans must be used for fixed asset projects, such as: • The purchase of land, including existing buildings • The purchase of improvements, including grading, street improvements, utilities, parking lots, and landscaping • The construction of new facilities or modernizing, renovating, or converting existing facilities • The purchase of long-term machinery and equipment The 504 Program cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing.

Maximum Debenture. The maximum SBA debenture is $1.5 million when meeting the job creation criteria or a community development goal. Generally, your business must create or retain one job

for every $65,000 provided by the SBA, except for small manufacturers which have a $100,000 job creation or retention goal (see below).

The maximum SBA debenture is $2.0 million when meeting a public policy goal. These include: • Business district revitalization • Expansion of exports • Expansion of minority business development • Rural development • Increasing productivity and competitiveness • Restructuring because of federally mandated standards or policies • Changes necessitated by federal budget cutbacks • Expansion of small business concerns owned and controlled by veterans (especially service-disabled veterans) • Expansion of small business concerns owned and controlled by women The maximum debenture for small manufacturers is $4 million.

A small manufacturer is defined as a company that has its primary business classified in sector 31, 32, or 33 of the North American Industrial Classification System and all of its production facilities located in the United States. To qualify for a $4 million 504 loan, your business must meet the definition of a small manufacturer and accomplish one of the following: • Create or retain at least one job per $100,000 guaranteed by the

cal Research more than six years ago, Baillargeon enrolled in Women, Work, and Community’s New Ventures class where for 10 weeks she was guided in developing a business plan. Part of the class put Gail and other students in touch with an array of community resources including accountants, lawyers and Maine Small Business Development Center counselors.

She continues to tap into many of these resources.

Cal Hancock, owner of award winning Hancock Gourmet Lobster Co., based in Cundy’s Harbor, also started her business as a second career.

“When you are doing what you really want to do, something you chose, you become your own champion,” said Hancock.

And that makes it easier to turn around and encourage others to do the same. “If I can do it, others can as well,” insisted Hancock, a sentiment echoed by Baillargeon.

“I find common ground with others in business – there’s a collaborative, mutual support community among other food producers,” Hancock said.

A member of the Maine Food Producers Alliance, Hancock has found both friendship and business support within the group. She

Eligibility. To be eligible for a CDC/504 loan, your business must be operated for profit and fall within the size standards set by the SBA. Under the 504 Program, a business qualifies as small if it does not have a tangible net worth in excess of $7.5 million and does not have an average net income in excess of $2.5 million after taxes for the preceding two years. Loans cannot be made to businesses engaged in speculation or investment in rental real estate.

SBA • Improve the economy of the locality or achieve one or more public policy goals Collateral. Generally, the project assets being financed are used as collateral. Personal guaranties of the principal owners are also required.

Interest Rates and Fees. Interest rates on 504 loans are pegged to an increment above the current market rate for 5-year and 10-year U.S. Treasury issues. Maturities of 10 and 20 years are available. Fees total approximately 3 percent of the debenture and may be financed with the loan.

CDC Processing Fees. Consistent with the Recovery Act’s temporary elimination of CDC Processing Fees, CDCs will no longer be allowed to collect deposits from can pick up the phone and pose questions to problems she may be facing around packaging or other day to day concerns.

For the thornier issues, Hancock relies on her partner in crime: her husband joined the company several years ago. “Having a partner is the best thing that’s ever happened.

You need someone you can be super honest with, that you trust.”

Every day entrepreneurs are finding ways to survive and thrive, often against the odds. Lynn Bromley, SBA Small Business Advocate and former state senator, thinks women in particular are adept at fostering connections and

small business applicants that would have gone towards payment of the CDC Processing Fee upon loan approval. SBA will reimburse the CDCs for the waived CDC Processing Fees.

The SBA will pay CDCs twothirds of the estimated CDC Processing Fee at the time of loan approval or upon the issuance of a loan number for a loan approved under the Premier Certified Lenders Program.

For More Information. There are about 270 CDCs nationwide, each covering a specific geographic area. If you are interested in applying for a 504 loan, contact the CDC nearest you. You can get a listing from your local SBA District Office.

The information presented here is in an abbreviated format due to space considerations. Read more about this by visiting www.SBA.gov.

show courage and grit as entrepreneurs and as innovators.

“It is a unique and profoundly humbling privilege to be in a position to support and advocate for these small business owners,” said Bromley. “They are the job creators and the real champions of our economy.”

Eloise Vitelli is program director for Women, Work, and Community, a statewide organization that has provided training and assistance to startup entrepreneurs since 1984.

She is the 2006 recipient of the Maine SBA McGillicuddy Entrepreneurial Excellence Award.

SALUTE TO SMALL BUSINESS | Friday | June 24, 2011 | 7

Winged pigs? Breadmaking brothers enjoy 15 years of success

Andrew had worked closely with small

By David M. Fitzpatrick businesses seeking to grow, so partnering BANGOR DAILY NEWS with Ron was a perfect fit. The brothers worked 20-hour days in the beginning, and Ron Siegel had worked in, and owned, they did it all: making and baking, slicing restaurants, but he had a dream to start a and delivering. bakery. He began by practicing breadmakDemand grew quickly, and within ing in his kitchen, but most people thought months they hired their first employee. he’d get his bakery off the ground “when They moved to York they rented 2,000 pigs fly.” When he finally launched it in square feet. Six months later, they dou1993 in rented space in Wells, he knew that bled their space. A year after that, they had to be the name. were out of room again.

He baked 80 loaves “Our main goal was This time, they needed that first day, and help. trying to get our brought samples to local They went to their bread out to as restaurants and stores. bank, Kennebunk Savmany people who ings Bank, with a plan to The business quickly took off, and caught the purchase land and conwould enjoy it. If attention of Ron’s brothpeople wanted it, struct a 10,000-squareer, Andrew, who visited we wanted to bake foot building. Their relafrom California that tionship with KSB had it for them.”

May. Andrew, an always been a good one, accountant with a degree from the first day when Andrew Siegel, co-owner from the University of Andrew stopped in at 5 When Pigs Fly Southern Maine, was so a.m., covered in flour impressed that he quit and dough, to open an that career to partner with his brother one account. The bank president had taken care year later. of him personally, and that quality of serv“We wanted to grow the business,” ice has been there ever since.

Andrew said. “Our main goal was trying to This time, with financing options being get our bread out to as many people who slim, KSB helped them through the process would enjoy it. If people wanted it, we See PIGS, Page 11 wanted to bake it for them.”

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PHOTO COURTESY OF WHEN PIGS FLY

Brothers Andrew (left) and Ron, owners of When Pigs Fly, pose in the bakery.

8 | SALUTE TO SMALL BUSINESS | Friday | June 24, 2011

The secret to launching/expanding a small business Small-business lenders give their advice on preparing to secure funding

By David M. Fitzpatrick, Bangor Daily News Starting a new business can be a daunting process. And if it seems easy, you’re probably not doing it right. It’s impera-

What’s the secret to a small-bbusiness owner securing funding?

Chris Kehl, VP Commercial Lending, Kennebunk Savings Bank (Granite State Development Corporation’s Lender of the Year for SBA 504 loans in Maine) Preparation and attention to detail prior to meeting with your lender will make a tremendous difference in a successful financing request. The quality of a business plan and associated financial statements are a direct reflection of a business owner or potential business owner. Your lender will need to present your request to an underwriter or credit committee for approval; he or she will need a complete and accurate package to be successful. Anticipate potential questions or concerns and address them with supporting information and mitigating factors ahead of time. This is especially critical for a new or start-up business with limited historical background. Avoid presenting a “me too” business plan – show your lender how your business will stand out from the

tive to have all your ducks in a row before you start your business, so you can better understand what you’re getting into.

And it’s vital to have things figured out when you go to see your potential lender. We’ve asked lenders throughout

competition. Most important is to find a lender that you can build a relationship with. Knowledge and experience are critical, but your lender also must be willing to listen to your needs, provide financial counsel and advice when appropriate, and advocate on your behalf.

What is the first thing a prospective smallbusiness owner should do to begin the process?

Ann McAlhany Certified Business Counselor Maine SBDC Get the family to buyin. Owning a business often requires sacrifices and carries its own set of challenges.

Conduct a SWOT analysis and honestly assess your strengths, weaknesses, opportunities and threats.

Yours personally, as well as the proposed business. Do you bring passion and knowhow? What makes your product or service different, better, faster, cleaner, etc., than the competition? Identify the down sides too.

Maine to give us some expert advice about working towards securing funding for a small business. Here’s a stack of fantastic inside tips on how to make sure you do it right — whether you’re just launching a small business or looking to expand.

What skills are you missing? How much demand do you need to make a living, pay the bills on one side, and keep inventory going on the other?

A good business plan answers these and many more questions. Product feasibility is important, so is the ability to produce or deliver the service at a value people will pay, that is, once they find you — which means you also need a marketing strategy. To keep them coming back and recommend your business, a positive experience is critical so people skills are also important.

Although the product or service may be top rate, if the numbers don’t add up and skill sets to operate or run the business are missing, instead of being a dream come true, the business can become a constant source of frustration.

What is the most overlooked aspect in business planning that should not be overlooked?

Carla Booth Loan Officer CEI Inc. Small businesses are at most jeopardy when they underestimate the working capital needs of their business. Without sufficient

working capital, even the best-operated business can collapse.

Particularly in a slow economy, every small business should prepare themselves should their cash flow can become stressed, and maintain a good relationship with their lenders and financial advisors.

Why is it so vital to do a business plan right?

Roxanne Jobe, Marie Hayden, Kimberly Moore, and Tracy Knights Eastern Maine Development Corporation There’s an old saying, “if you don’t know where you’re going, how are you going to get there?”

A business Continued on next page

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Call one of our business counselors or visit www.emdc.org to learn more.

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SALUTE TO SMALL BUSINESS | Friday | June 24, 2011 | 9

Continued from previous page

plan is your road map. It brings your idea into focus. It shows your knowledge of the industry and supports the viability of your idea. Most financial institutions require a prospective borrower to provide a plan, your business has to make sense. Getting it all down on paper is one of the best ways to that. Connect with an organization in your area that offers free business counseling and help writing a business plan.

Many do this for free. That’s a great first step!

How does one avoid looking unrealistic with expenses and income on a business plan?

Susan Snowden Director of Consumer Banking Bangor Savings Bank A business plan should not be considered simply an exercise in order to get bank financing; but rather a tool to test your business model, check your ability to meet obligations through cash flow, and set other desired financial goals. It is best to enter into any business venture with a realistic vision of what results might look like in year one, and even over the first two to five years. That way, a prospective business owner can make an informed decision regarding debt load for the business, and can better manage personal expenses while the business ramps up.

There is plenty of great information available on the Internet to help an entre-

preneur set realistic and inclusive projections. We always recommend time with an advisor — a counselor from the Small Business Development Center is a great place to start. A second viewpoint is a healthy test of assumptions and can catch oversights in a business plan; an SBDC counselor can certainly help. And in true Maine spirit, we always find owners of existing businesses very willing to assist new start-ups by sharing business insights and advice. Lastly, be sure to find an experienced banker who will be thorough and candid in their assessment of the plan; their advice can be invaluable in the early years of any business.

What key thing can a prospective smallbusiness owner do to make his case to a lender?

Maureen Vanuden Small Business Market Manager, Northern New England and Upstate New York TD Bank A complete business plan is key when applying for financing. An effective business plan should include a resume and personal financial statement for each owner, a business balance sheet, income statement and cash flow projections. Information and assumptions on revenue and expenses, net worth, and descriptions of assets and liabilities. Most importantly, make sure your business plan proves reasonable and positive cash flow. Specify what a new loan would be used for as well as a detailed repayment plan.

Continued on next page

Grow and Prosper!

We know what it takes to make Maine businesses grow like crazy.

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Member FDIC

10 | SALUTE TO SMALL BUSINESS | Friday | June 24, 2011

Continued from previous page

SCORE are valuable resources for preparation assistance.

What are the key things lenders look for when considering a commercial loan for a small business?

Peter Godsoe Regional VP, Commercial Lending Norway Savings Bank The key qualifications that lenders look for when considering a commercial loan are sufficient historical cash flow to comfortably afford repaying the debt request, collateral as a secondary source of repayment, an equity contribution of cash in to the request, a good credit history and industry specific experience. An applicant can best prepare to fulfill these qualifications by having an advance conversation with their banker and prepare a complete loan application that covers all these areas in detail. The Small Business Development Center and

If people feel overwhelmed with lenders, how can they best prepare themselves for meeting with them?

Steven Byrnes Senior VP for Business Banking in the Maine District KeyBank (the number-one lender in SBA 7(a) and 504 loans in 2010) It helps to work with a lender who will listen and ask questions. The more we learn about you and your business, the better we can provide insights and tailor unique financing strategies and plans to fit your business.

Lenders want to see a solid business plan, yet often people in the early stages of planning are unsure. When clients need additional help, we often recommend Maine’s

Congratulations Jim McCurdy & Jim Lynch of Maine Commercial Tire!

Maine SBA’s 2011 Small Business Persons of the Year

Small Business Development Centers and other business counseling organizations.

They provide free expertise, guidance, and educational workshops. They can also help you manage your cash flow, forecast cash needs, and position your business for successful financing and future growth.

Under certain circumstances, the SBA will provide partial guarantees to financial institutions on projects which meet their criteria; guarantees which make the difference in marginal loan approval. Conscientious financial institutions, however, should still ensure that collateral and cash flow are sufficient for the benefit of the borrower.

What are the key financial challenges small-bbusiness owners overlook or don’t consider strongly enough?

Craig Staples Vice President and Commercial Services Officer Katahdin Trust

What should a smallbusiness owner consider when planning to refinance?

Angela Butler Commercial Loan Team Leader People’s United Bank

Many small business owners are, by necessity, focused on the delivery of their products or services. When the owners have a loan need, however, they often discover they have neglected cash flow and appropriate collateral. We would be remiss to our customers if we failed to review cash flow in light of projected payments: we will not knowingly place a loan customer in a situation where cash flow isn’t sufficient. It is also necessary for business owners to offer collateral, available in many forms, to secure their loan — whether it is a start-up, operating, expansion, real estate or equipment loan.

When considering refinancing, the first thing a business should evaluate is its ability to pay the debt — how long will it take, and how will the payments impact the company’s cash flow? The next consideration is how to secure the debt, and if there is a shortfall the borrower can explore options to help mitigate the lender’s risk; a good option might be an SBA, Rural Development, or FAME guaranty. Borrowers should also choose lenders who are comfortable working with businesses and understands the borrower’s needs.

For the perfect starting point for beginning the process of starting or expanding your small business, visit the Small Business Administration’s Web site at:

www.SBA.gov For Maine-specific information, visit:

www.SBA.gov/me Business Plan Development, Marketing and Financial Management Assistance

207-942-4800 | peoples.com

Congratulating

Tom Gallant 2011 SBDC State Star Director, Bangor Small Business Development Center at Coastal Enterprises Inc.

Wiscasset, Portland, Bangor and 8 other statewide locations.

©2011 People’s United Bank | Member FDIC | Equal Opportunity Lender

Call 207-882-7552 www.ceimaine.org

Call about CEI s SBA small business loan programs Flexible capital for equipment, working capital, leasehold improvements, and inventory.

Quin-Easter

SALUTE TO SMALL BUSINESS | Friday | June 24, 2011 | 11

ness plans come out of the course,” she said.

“And phenomenal businesses following those plans.”

From the Fall 2009 course alone, in addition to Howe’s dogsled business, start-up business plans included a bed and breakfast, a campground, a retail store, a fabric shop, a dog breeding kennel, a veterinarian, and new technology for manufactured homes.

She said it’s great to see people come in with the big idea and the dream and help them figure out whether their ideas are feasible and how they can make them happen. “It’s

very exciting to take those bright ideas and put some backbone behind them so that people can really start a successful business,” she said.

Everyone’s needs are different, from available cash to the client’s desired outcome.

And as important as all the businesses that are born out of the program are those students who realize they’re not ready to go into business at that point. There’s no easy checklist system that fits everyone, although the process on Quin-Easter’s end of how to go forward is the same.

“Each participant, each entrepreneur, brings a lot of skills and experience and ideas to the table that are more than the sum of the parts — or more than I can stand up as a talking head and bring,” Quin-Easter said. “That’s really the joy of it, too — I learn every day from the people I work with.”

Quin-Easter is extremely avid about the job she’s landed in. “It’s a gift,” she said. “I feel very lucky to be able to do this work, both with the entrepreneurs that I work with and the organization that I work for.”

resume or gone through a job interview before, so Schuman set up everything from classes to workshops to mock interContinued from Page 5 views that were videotaped so the subjects side world. could learn how to improve their interThose who had been on active duty and view skills. were retiring often had never prepared a The process has meant a lot of on-the-job education for the eight-person team.

“We have worked to think outside the box and approach reemployment strategies from different angles,” she said.

“We’ve had to stay flexible, and we’ve had to offer a variety of services to meet everybody’s needs.”

That’s no small feat when you’re effectively trying to relocate and retrain an entire city. The base had physicians, BANGOR DAILY NEWS PHOTO BY DAVID M. FITZPATRICK nurses, dentists, HR Kristine Schuman in Brunswick. people, hairdressers,

florists, aerobics instructors, maintenance crews, public works, education assistants, and just about anything you’d find in a city.

All told, the BTC helped over 1,000 people: including over 100 veterans, 260 civilian and contract workers, 200 military spouses, and others.

“It’s been a really fun, positive population to work with,” she said. “And because they’re so diverse, we’ve been able to tap into a lot of other opportunities — our veterans programs, the military spouse programs. It hasn’t been the same thing every day.”

The grant runs through September, but she hopes to get an extension through June 2012. But she’s already moved her office off the base, which officially closed May 31.

Up next for Schuman is likely more of the same. She hopes to keep working with National Emergency Grants that are awarded for big layoffs under the Workforce Investment Act, as there will always be big companies that turn over.

“I’ll continue doing what I’m doing for now,” she said. “It’s been a very, very fun ride, and I’m honored to be a part of it.”

Continued from Page 4 chance to decide if New Ventures sounds right for them.

Quin-Easter conducts workshops and classes in Caribou, Houlton, Madawaska, Presque Isle, and elsewhere. The typical New Ventures class size tends to be 10-15 people; there’s a 15-person maximum, and there can be as few as six or seven.

“We’ve had some really phenomenal busi-

Schuman

When Pigs Fly Continued from Page 7

of attaining an SBA-guaranteed loan. They built with expansion in mind, and, sure enough, added another 15,000 square feet in 2000.

Today, When Pigs Fly has locations in York, Kittery, Freeport, Portsmouth, N.H., Somerville, Mass., Brookline, Mass., and Jamaica Plain in Boston. Its bread can be found at about 300 outlets in Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, and New Jersey, or you can buy it online. From one man with 80 loaves in one day, the business has grown to as many as 12,000 loaves per day with 60 employees working around the clock.

Fifteen years later, the bread is still made the same, with natural grains and flours.

Everything is hand-prepared and freshly produced, and anything day-old is donated to charities. June 23 marked the grand opening of the brothers’ first restaurant, a wood-fired-pizza place with 20 local draft beers and the first of its kind in Maine to do draft wine. They’ll grow many of their own herbs and use local resources for other products, such as fresh cheese made daily in Massachusetts.

Andrew says he doesn’t know where the Siegel brothers will be in another 15 years, but he’s sure it will be something unique and different.

“Hopefully it will be really fun, really creative, and there will be lots and lots and lots of people enjoying whatever it is that we do,” he said.

When Things Get Tough - Call the Authority!

The Finance Authority of Maine can help Maine businesses with innovative financial solutions.

Our team of experts is here to assist you.

For information on FAME’s innovative finance programs, please visit our web site or give us a call.

www.famemaine.com 1-800-228-3734

12 | SALUTE TO SMALL BUSINESS | Friday | June 24, 2011

Tips to make your start-up small business a success

Becoming a business owner is a goal for many women. Starting a business is seldom easy, but the process can be streamlined when a person knows the steps to take.

The Center for Women’s Business Research indicates that on average, women own over 10 million businesses in the United States and employ around 20 million workers. Female-owned businesses account for over $2 trillion in sales. Female entrepreneurs are collectively known as “Janes,” and they are a big part of the country’s financial landscape.

For women who want to become Janes, there are certain steps to take to develop and launch a business. There are many resources that can help women and men start a company. The Small Business Administration is one of them. Here is some of their guidance in doing so.

Find a mentor. There are organizations like SCORE and Women’s Business Centers that provide free resources online and locally for the prospective small business owner. Individuals also can connect with current business owners in the neighborhood and pick their brains about the best way to begin.

Write a business plan. This may seem like an intimidating part of starting a business, but getting thoughts written out in black and white can be a good organizational step. However, there’s no specific formula for a business plan.

Listing the type of business, marketing ideas, competition, and financial data is a good place to start. Also, having a business plan in place may make it easier to secure a loan.

Secure funding. Businesses require start-up capital. Some

small business owners have their own savings they’ll be devoting to the business, while others solicit investors. The majority of business developers apply for a business loan. This is where a business plan can be an asset. Also, grants may be an option. According to the SBA, some business grants are available through state and local programs, nonprofit organizations and other

Bettina knows how committed we are to Maine business.

We are to hers.

groups. For example, some states provide grants for expanding child care centers, creating energy efficient technology and developing marketing campaigns for tourism.

Secure legal representation.

There are certain business laws and employee laws that an individual will need to know to avoid fines and other legal recourse.

Securing legal representation

ahead of time can help prospective business owners navigate the legal system.

Budget and plan for marketing and advertising. It’s important to get the word out about the new business. While this can start with family and friends, eventually the efforts will have to go beyond.

Think about community-based activities that can advertise the new business. Work with schools and community organizations if yours is a niche business for children or seniors. A Web site and newspaper advertising, both in print and online, can be a good starting point.

Keep in mind that it can be a few years before small business owners start to realize a profit on their efforts. So don’t give up too easily and soon another successful “Jane” will be part of the economy.

“We’re as focused on creating a great guest experience as we are focused on the wine itself. We didn’t start with Bangor Savings Bank, but I got to know the people and how the bank was run, and when they asked me to bank with them, I said yes. They think about holistic solutions and how to address each individual client’s needs. In this day and age of cookie-cutter financial services, you don’t experience that with Bangor Savings. Give them a call.” 1.877.Bangor1

“Bangor Savings Bank is uniquely good at the people side of the business. I’ve met many different people, from branch employees to senior management. All the way through, you feel their sense of pride in what they are doing. They’re all impressive.”

(1.877.226.4671) www.bangor.com

Bettina Doulton Owner, Cellardoor Winery

Member FDIC