Astorino says collaboration key to economic growth BY JOHN GOLDEN jgolden@westfairinc.com
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ounding a political mantra of “collaboration” at the start of his second term in office, Westchester County Executive Robert P. Astorino said his “fast-acting, pro-business” administration will continue to work closely with the private sector to promote economic growth in the county. Savoring his more than 12-point margin of victory in the November election and citing the roles of county development agencies in leveraging business and nonprofits’ investments that retained and added private-sector jobs here, Astorino spoke to a breakfast audience of about 300 Westchester County Association members and guests Jan. 23 at the Westchester Marriott in Tarrytown. Likely disappointing some in his audience, he made no mention of his expected run for governor this year as the Republican Party’s candidate against the heavily favored Democratic incumbent and fellow Westchester resident Andrew M. Cuomo. Astorino indirectly joined Cuomo’s many critics reacting this week to the governor’s recent remark during a radio interview that “extreme conservatives” have “no place in the state of New York.” Noting “the ‘we’ in Westchester,” the county executive said he had learned “the power of collaboration” in his first four-year term, reaching
out to ethnic and racial minorities that historically have not voted Republican. “Whether you are liberal, moderate or conservative, there is always a place for you in Westchester,” he said. Astorino said fees paid to the county Industrial Development Agency by businesses granted tax exemptions and other financial incentives for their job-creating projects are a “growth dividend” used by the IDA to support small businesses through SCORE Westchester, the Women’s Enterprise Development Center and the Procurement Technical Assistance Center for government contracts. He said the IDA this year will also support the WestchesterPutnam Workforce Investment Board and One-Stop Employment Center and Community Capital New York, the nonprofit alternative lender to small businesses. He said $100,000 of IDA revenue will be used to launch Hire Westchester, a Workforce Investment Board program. It will pay employers up to 50 percent of the cost of on-the-job training for hired workers, with a maximum payment of $20,000 per business. Astorino, a member of the state Thruway Authority’s mass transit task force for the new Tappan Zee Bridge, said he will continue to push for rapid transit lanes on the bridge and along the Interstate 287 corridor. “We need to build a bridge that can help serve as a catalyst for bringing business to Westchester.”
Mortgage tax revenue hits 5-year high Westchester County’s mortgage tax receipts rose nearly 23 percent in 2013 from the previous year, as the county’s recovering real estate market lifted tax revenue from residential and commercial property deals to the highest level since 2008. The county clerk’s office reported collecting $16.9 million in mortgage taxes last year, an approximately $3.2 million increase from 2012. State, county and local tax revenue were still 12 percent below total mortgage tax collections in Westchester in 2008. In 2005, the peak year for the coun-
ty real estate market before the Great Recession, mortgage tax revenue totaled $39.8 million, more than double the 2013 total, according to the county clerk’s office. Westchester County Clerk Timothy C. Idoni in a press release said the 2013 mortgage tax figures “reflect a very robust third quarter real estate market, followed by a December drop-off similar to yearend declines in 2011 and 2012.” Idoni said it is difficult to predict the immediate impact of stricter mortgage financing rules that took effect in January. – John Golden
Citrin Cooperman Corner 2014: The Year of the Entrepreneur By William T. Conron, CPa CiTrin CooPerman With the start of a new year, entrepreneurs are eager to know what the market is like for starting a new business and the steps they need to take to help turn their vision into a reality. UPBEAT BUSINESS CLIMATE There is no question that the environment for starting a business is now the best it has been in recent years. We make this assessment based on the economic outlook of our clients and input Christian Morris from funding resources in the region. In addition to an improved financing picture, both the private and public sectors seem to have an increased appetite for funding early-stage businesses. That said, it is vitally important that aspiring entrepreneurs do their homework before launching their business enterprise. For that reason, we have put together the following recommended action plan. William T. Conron, CPA
HOW TO SUCCEED IN 2014 • Don’t be afraid of failure. Starting a business is difficult. Understand that you are going to face many hurdles. Successful entrepreneurs take risks and know that failure is an obstacle they will have to overcome to attain their goals. • Make sure your concept is sound and economically viable. Is there an existing market for your product? Who is your competition? How many competitors do you have? Who are your prospective customers? What is the annual revenue of the market? • Structure is important. Each business structure has advantages and disadvantages that should be considered at the time of formation. • Seek the proper type of funding. You will eventually require some form of outside investment. Which form of outside investment is right for you and your business? Each form affects you and the business differently. State grants generally require a matching equity contribution and a commitment to increase jobs within the business. Traditional bank financing may require preparation of financial statements. Angel & venture capital reduce the founder’s ownership of the business. • Seek funding when the time is right. “Timing is everything,” notes Christian Morris, entrepreneur and managing partner of SmartPath Labs. “Many successful entrepreneurs bootstrap their startup or begin their new venture as a part-time business. This gives them time refine the product, provide market validation, and make early mistakes on
their own dime. Many public and private programs will not consider a company’s application for grants or financing until it has been an active business for at least a year.” • Practice your pitch. Keep in mind that you will be among many vying for the attention of investors, which makes it imperative that your business plan and pitch clearly describe your value proposition and distinguish your product or service from the competition. • Leverage social media to reach your audience. Social media will play a significant role in growing your business. Determine which social media platforms—Facebook, Twitter, LinkedIn or a combination of these and others— will be best to attract and engage your desired audience. Video is also a critical medium. “There are 100 hours of new video content uploaded to YouTube every minute. One company, dollarshaveclub. com, used their entire marketing budget on this one medium, with great success,” adds Christian. • Have a cause. Supporting a local charitable organization is a great way to increase visibility and build goodwill in the community. Donating your time will not only make you feel good about yourself but will often lead to recommendations and business referrals. The cause should mean something to you personally to keep you engaged. Christian, whose father himself was an entrepreneur and passed away three years ago from cancer, is a board member of Sound Affects Life, a non-profit that provides grants to earlystage bio entrepreneurs in oncology. • Seek advice from a colleague or even a potential competitor. Many successful entrepreneurs collaborate with their competition to achieve mutually beneficial business goals. Being open-minded is a key to survival in an ever-changing business climate. While success is never guaranteed, 2014 could turn out to be a banner year for those passionate about starting a new business. William Conron, CPA, a partner in Citrin Cooperman’s Connecticut office, provides consulting and compliance services to individuals and emergingto-mid-sized businesses in a wide range of industries, including financial services, real estate and technology. He can be reached at 203-847-4068 or wconron@citrincooperman.com. Citrin Cooperman is a full-service accounting and business-consulting firm with offices in White Plains, NY; Norwalk, CT; New York City; Livingston, NJ; and Philadelphia, PA. Christian Morris is the Managing Partner of SmartPath Labs; a Westport, CT-based software development, marketing, and business advisory firm that services the healthcare, financial and hitech industries. He can be reached at (203) 216-0464 or cmorris@smartpathlabs.com.
A MESSAGE FROM CITRIN COOPERMAN WCBJ • February 3, 2014
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