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Small Biz Interview: The co-founders of Geeksmith
CAMILLUS — As high-school students in Camillus, Philip Impaglia, 23, and Michael Serrata, 25, played a lot of video games. Now, they still play video games, but as the co-founders and co-owners of Geeksmith Productions, they have transformed their hobby into a fledgling business. Starting as a “nerd culture” podcast in the fall of 2012 […]
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CAMILLUS — As high-school students in Camillus, Philip Impaglia, 23, and Michael Serrata, 25, played a lot of video games. Now, they still play video games, but as the co-founders and co-owners of Geeksmith Productions, they have transformed their hobby into a fledgling business.
Starting as a “nerd culture” podcast in the fall of 2012 discussing video games, comics, and movies, they’ve built the Geeksmith brand into an online community. With a dedicated staff of seven, they now record two podcasts, the Geeksmith Podcast and Comic Box, from their homes in Camillus. This year, Impaglia and Serrata launched a website (www.geek-smith.com) that hosts articles, interviews, videos, and game reviews. This October, shortly after pop culture consulting company ICv2 reported that comic-book sales have increased 35 percent since 2010, they self-published an original comic book, The Founding Fathers, written by Impaglia. The first issue of the series is available for purchase on their website.
The gamer community itself is changing and expanding as comic books and video games become more mainstream, say Impaglia and Serrata. A 2013 report by the Entertainment Software Association says 58 percent of Americans play video games, and the average age of a gamer is 30.
These self-labeled, self-taught businessmen haven’t quit their day jobs yet — Serrata is the manager at Hallinan’s Wine & Liquors in the Fairmount area of Camillus and Impaglia is about to begin a sales position selling Verizon FiOS services. But they’re working on turning their passion project into a business they can sustain.
The Business Journal New Network (BJNN) chatted with Impaglia and Serrata about the importance of networking, building connections, and the lessons they have learned so far.
BJNN: When did you two meet and decide to start working together?
Impaglia: It actually started with me and my friend in 2012. We were looking for an audio engineer. We weren’t thinking about making a company, just a podcast, and Mike mentioned he had a background in audio editing. So, he brought over some of his equipment, and from that day on he was on the podcast regularly.
Serrata: And we’ve both been playing video games and in nerd culture for as long as I can remember. Me, since I was 10.
BJNN: With so many podcasts available now, how do you produce one that stands out?
Serrata: That was something that we struggled with. Anybody can make a podcast. In the beginning, if you listen to our first couple of episodes, it’s not really that good. We knew that, so we experimented. We had interviews, we started making outlines, and we refined the process into what it is now. People want to listen to podcasts because they feel like they’re part of the group. It has boundaries, but it’s also free-form enough that people will be interested.
BJNN: When did Geeksmith become more than a hobby, and something you wanted to pursue seriously?
Impaglia: In 2013, we were in Boston covering a gaming festival called Penny Arcade eXpo and were sick of being ignored. So, we pretended to have a press pass. I flipped my regular badge backwards and made sure it wouldn’t flip over. Then, I literally walked past lines, walked into booths, and said, “I’m here with Geeksmith.” Now, we’re on the Adult Swim press list, and we’re talking to Nintendo a little bit.
Serrata: We started picking up all these contacts and being taken seriously, so we realized we might as well take ourselves seriously.
BJNN: Considering the historically negative social connotations of the word “geek,” why did you decide to brand yourself as “Geeksmith?
Serrata: I think gamers have long been pigeonholed as nerds. But those kinds of stereotypes only hold for so long. Now that gaming has such a mass appeal, that stereotype no longer fits. I think nerd culture in general is in a really good, weird transition period. It’s actually not just nerd culture anymore. I’ve been thinking about that a lot in terms of trying to describe the website in a single sentence. For the longest time it’s been a “nerd culture destination,” but more and more it’s becoming just a culture destination.
BJNN: How will you generate revenue from an almost exclusively online business?
Serrata: So far this year, we’ve had 15,000 unique regular visitors to our website. Ads on the site were only added recently because we’ve been focusing on building an infrastructure and an audience first. With our growing audience, we’re hoping the ad revenue will help us turn a profit next year.
Impaglia: We’re also in the middle of creating our own products. The comic book we recently released was a big one. We have some merchandise that sold pretty well at New York Comic Con, and I think we’re going to start putting it on the website storefront. We have personalized t-shirts, bags — pretty much anything with our Geeksmith logo on it.
BJNN: How do you get more content?
Serrata: We’re in the process right now of hiring writers — freelance writers, which is hard to do on a shoestring budget. Right now, we have a very small list, but our team is growing, so we’ll have more written content. We’re also working on video content.
BJNN: How are you expanding your audience?
Serrata: We are relentless on social media, whether it’s through our personal accounts or the Geeksmith accounts. We do shamelessly promote ourselves wherever we go.
BJNN: How did you manage to put together and publish The Founding Fathers independently?
Impaglia: Literally networking. It works. As long as you’re personable, you can make any connection you want. We had artists, and after a month and a half, a finished comic book. A regular comic- book team can have anywhere from six to 10 people working on it. But we had an artist in Boston, an artist in Pennsylvania, and an artist in Connecticut, and had to do everything over the Internet. Now we’re selling it in storefronts and on our website.
BJNN: How have you funded your venture?
Serrata: We funded it mostly through a personal loan from a friend of Phil’s, who is now an investor, and the rest was funded through personal finances. Between paying artists, printing, and distributing, the first issue of The Founding Fathers cost about $8,000 to complete.
BJNN: What have you learned from running your own business?
Serrata: That in our community, whether it was the independent-games community or the comic-book community, people are so willing to help each other out. So many people have helped us out, and we want to be able to do that for other people when we get bigger. For example, Mugen Studios, an independent media production company, let us share their booth with them at this year’s New York Comic Con. We promoted some of their content and they liked working with us.
Impaglia: It’s that pay-it-forward type of thing. It’s important to build those connections in this community because it’s hard to build them with mainstream companies. The independent community can feel your pain. You guys in as much debt as we are? Sweet, I like you. But we’re doing well. We’re not even at the end of the year and our podcast hit 75,000 downloads. That’s huge.
Serrata: Not bad for some kids from Syracuse.
Contact the Business Journal News Network at news@cnybj.com

Architecture firm co-owner discusses his SBA management training
SYRACUSE — Christopher Resig, one of two co-owners of N.K. Bhandari Architecture & Engineering, P.C., participated in this year’s U.S. Small Business Administration (SBA) Emerging Leaders Initiative. Resig was among 15 small-business owners and leaders who graduated from the program in a ceremony the SBA held Nov. 5 at the SUNY College of Environmental Science
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SYRACUSE — Christopher Resig, one of two co-owners of N.K. Bhandari Architecture & Engineering, P.C., participated in this year’s U.S. Small Business Administration (SBA) Emerging Leaders Initiative.
Resig was among 15 small-business owners and leaders who graduated from the program in a ceremony the SBA held Nov. 5 at the SUNY College of Environmental Science & Forestry.
The SBA Syracuse District office collaborates with several organizations, including CenterState CEO, on the program that provides more than 40 hours of advanced-management training.
Business leaders participating in the program are often told, “You want to work on your business and not in your business,” Resig recalls.
The program encourages participants to look at the overall goals of their respective organizations, its financial health, its marketing and human-resources functions, and how they all “[fit] together” in leading the company into the future.
“One of the biggest elements for me was refocusing or retooling my efforts to be able to work on the business and not in the business,” says Resig.
He also felt the program taught him how to “scale” himself as an entrepreneur. The scaling of an entrepreneur, Resig says, is to be able to “empower others” to do what they need to do so that the firm can then achieve its goals.
“It’s allowing others to do what the firm needs to have done,” he adds.
In addition, Resig called it a “source of comfort” to see other small-business owners who are facing the same types of issues, concerns, and questions.
“We’re all in this together as small-business owners,” he says.
When asked if his involvement in the Emerging Leaders Initiative was related to a succession plan at his firm, Resig didn’t want to get specific.
“I would just simply say that … Jim and I are both owners of the firm and we are working through a transition plan at this point in time.”
He was referring to his brother, James Resig, who is the firm’s majority owner. Christopher Resig, the firm’s minority owner, rejoined the business in early 2010 after having initially worked there between 1983 and 1995, he says.
About the firm
N.K. Bhandari Architecture & Engineering (NKB) has operated in a roughly 7,000-square-foot space at the Rockwest Center in Syracuse since 1997. The firm previously operated in locations in the town of Salina and on James Street in Syracuse.
The company handles projects for companies and organizations in the health-care, defense, education, federal government, commercial retail, and corporate and industrial sectors.
For example, the firm is handling design work for projects at border crossings located in Ogdensburg in St. Lawrence County and at Rouses Point on Lake Champlain in Clinton County, says Resig.
NKB currently employs 10 full-time workers, a figure that includes the owners.
He calls the employee count “right sized,” noting technology allows small design firms to handle the larger projects that only bigger firms previously could handle.
“Technology allows us to implement larger projects and more complex projects very effectively with a small staff,” he says.
The firm currently works with 24 clients.
He declined to disclose the firm’s revenue information.
Company history
Narindar K. Bhandari launched the business as a sole proprietorship in 1980, providing structural engineering and construction-management services to a variety of federal, state, and institutional clients throughout upstate New York, according to the firm’s website.
In the mid-1980s, NKB expanded to include architecture and civil-engineering services. In 1988, NKB was restructured as a professional corporation under the new name N.K. Bhandari, Consulting Engineers, P.C.
The name would eventually return to N.K. Bhandari Architecture & Engineering, P.C.
Bhandari retired in 2008, and Jim Resig, who had worked for the firm since 1982, assumed ownership.
Contact Reinhardt at ereinhardt@cnybj.com
SBA Syracuse District loan approvals, dollar value rise in 2014 fiscal year
SYRACUSE — The Syracuse district office of the U.S. Small Business Administration (SBA) supported loan activity in fiscal year 2014 that represented a 10 percent increase in number of approvals and a 14 percent rise in dollar value over the last fiscal year. The agency backed 648 loans valued at nearly $147 million during the
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SYRACUSE — The Syracuse district office of the U.S. Small Business Administration (SBA) supported loan activity in fiscal year 2014 that represented a 10 percent increase in number of approvals and a 14 percent rise in dollar value over the last fiscal year.
The agency backed 648 loans valued at nearly $147 million during the fiscal year that ended Sept. 30.
That’s according to Bernard J. Paprocki, director of the SBA Syracuse District office.
The SBA Syracuse office made the announcement in a news release Nov. 13. Paprocki spoke with the Business Journal News Network on Nov. 17.
The SBA Syracuse District office helped generate that growth despite the federal government being closed for part of the beginning of fiscal year 2014, he notes.
“The government was shut down for a month, so we achieved these kinds of numbers in only 11 months, which is even more impressive, I think,” says Paprocki.
Area banks and lenders make the loans while the SBA guarantees them, enabling commercial lenders to make loans to small businesses that they would otherwise not have made, the agency contends.
The SBA backs loans in two types of loan programs.
The 7(a) loan program is the most widely used access-to-capital SBA program, with flexible use of proceeds and a loan maximum of $5 million. The 504 program offers long-term, fixed-rate financing for major assets such as land, buildings, and equipment, with a loan maximum of $5 million.
The total loan-approval figure includes 606 loans from the 7(a) program valued at more than $126 million and 42 loans from the 504 program valued at nearly $21 million, the SBA Syracuse office said.
The 7(a) loan-program’s fee reductions and 58 active, commercial lenders in the district helped lead to the increases in the regional SBA loan approvals and amounts.
The average 7(a) loan size in upstate New York increased more than 20 percent over last year to more than $208,000, says Paprocki.
Onondaga County had the most loan approvals across both programs for the second straight year, totaling 104 loans valued at more than $30 million, he added.
The SBA Syracuse office used the same news release to recognize its most active regional lenders in its programs.
M&T Bank (NYSE: MTB), NBT Bank (NASDAQ: NBTB), and Adirondack Bank posted the highest number of 7(a) approvals in their respective categories based on asset size.
For the ninth consecutive year, M&T Bank topped all large commercial banks in the Central New York region and the entire 34-county Syracuse district.
M&T Bank in 2014 assisted Central New York’s small businesses with 78 loans at a value of $13.2 million and district-wide provided 161 loans totaling $24.3 million, the SBA said.
Adirondack Bank was the top small-community lender in Central New York for the sixth straight year with 15 loan approvals valued at $4 million.
Empire State Certified Development Corporation (ESCDC) was the most active 504 lender district-wide with 36 approvals valued at $19.4 million.
ESCDC was also the top Community Advantage lender in the district, approving 16 loans worth $2.1 million.
Community Advantage is a pilot 7(a) loan program that the SBA introduced in 2012 to meet the credit, management, and technical-assistance needs of small businesses in underserved markets with loan maximum of $250,000, the agency says.
Paprocki credits the relationships the SBA has with its lending partners; the 7(a) loan fee reductions, which will continue through 2015; and a streamlined applications process for the increased loan numbers in fiscal year 2014. And, he anticipates the rising activity will continue in this new fiscal year.
The SBA Central New York region covers counties that include Cayuga, Franklin, Fulton, Hamilton, Herkimer, Jefferson, Lewis, Madison, Montgomery, Oneida, Onondaga, Oswego, and St. Lawrence.
Contact Reinhardt at ereinhardt@cnybj.com

Paint and sip business, Art & Vine, opens in downtown Utica
UTICA — Art & Vine, Utica’s first “paint and sip” business, formally opened in downtown on Nov. 10. Located on 157 Genesee St. in a 1,419-square-foot space, the business is owner Connie Pratt’s first venture. In a “paint and sip” business, beer or wine is offered while patrons participate in an art class. The U.S.
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UTICA — Art & Vine, Utica’s first “paint and sip” business, formally opened in downtown on Nov. 10.
Located on 157 Genesee St. in a 1,419-square-foot space, the business is owner Connie Pratt’s first venture.
In a “paint and sip” business, beer or wine is offered while patrons participate in an art class. The U.S. Small Business Administration reported this year that the nation has 200 paint and sip businesses nationwide, most of them independent and artist-owned.
Pratt earned a master’s degree in fine arts in painting and drawing from Syracuse University, and has experience teaching both college and high-school classes.
She will continue to work at Westmoreland High School, where she teaches classes like digital photography and general drawing. She hopes her business will eventually grow into her primary source of income.
Pratt had no trouble acquiring the space — she and her husband Philip Szeliga have owned the building on Genesee Street for 11 years. Her personal studio is located on the third floor, and Szeliga’s engineering consulting business, Human Electronics Inc., occupies the second floor. A software technology company previously leased the first floor. When that business moved out last year, Pratt jumped on the opportunity.
“I just happened to see this type of business profiled on the ‘Today Show’, and I thought ‘I can do this. I teach every day,’” Pratt says.
Renovations to the space cost a total of $40,000, and Pratt and her husband used their own cash to fund them. One of the contractors they hired was Boscar Electric Co. Inc. of Utica.
Although the formal grand opening took place Nov. 10, Art & Vine began offering classes Sept. 18. Welcoming both public and private parties, Pratt says classes are “perfect” for corporate team building, fundraising, family paint days, children’s parties, birthday parties, and bachelorette parties. Walk-ins are currently available only Saturdays, and private parties can reserve the space on Thursdays. Both private and public classes cost $38 per person. The maximum capacity is 40 people per class.
Pratt provides customers with paint, a canvas, and brushes. Each session features one of her original paintings, and Pratt leads patrons step-by-step through her process. Participants can drink beer or wine while they paint, and at the end of the night, take home their completed paintings. Pratt is currently leading all the classes herself, but hopes to one day hire other local artists to offer classes featuring their work.
“People leave so happy at the end of the class,” says Pratt. “It’s nice to expose people to the process of painting. It’s definitely not a serious class. We have a lot of fun.”
Thursday and Saturday classes run from 7 to 9 p.m., but drinks are served at 6:30 p.m. As demand increases, she plans to add more walk-in sessions to the schedule. Classes can be reserved online at www.uticaartandvine.com.
Contact the Business Journal News Network at news@cnybj.com
Four employee crime schemes plague businesses, study reveals
Business owners buy insurance to protect their firms from a variety of risks, but they may be overlooking one critical risk. “Business owners spend a significant amount of time and resources protecting their businesses from a variety of risks, whether it’s liability for their products or services or severe weather,” Helen R. Savaiano, president of management
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Business owners buy insurance to protect their firms from a variety of risks, but they may be overlooking one critical risk.
“Business owners spend a significant amount of time and resources protecting their businesses from a variety of risks, whether it’s liability for their products or services or severe weather,” Helen R. Savaiano, president of management liability at The Hanover Insurance Group, Inc. (NYSE: THG), said in a news release.
“But what can sometimes be overlooked are the risks presented by unscrupulous employees, and unfortunately those types of losses happen more often than business owners think.”
The Hanover, a Worcester, Mass.–based insurer that has a Syracuse regional office in Salina, identified the following four common crime schemes in business, based on a study of insurance claims:
1. Billing and vendor schemes — Employees set up false vendor accounts and bill a company for non-existent parts or services.
2. Check-tampering schemes — Workers use company checks to pay themselves or reissue the firm’s old outstanding checks and make themselves the payee.
3. Payroll schemes — Employees manipulate the amount on the check, or create duplicates of the check to cash more than once.
4. Expense-reimbursement schemes — Staff members submit additional expenses that never occurred or were not of a business nature and are then reimbursed for those bogus expenses.
Many business owners don’t realize they could have been protected from fraud committed by their own employees until it’s too late, according to Jeffrey Gordon, vice president of fidelity and crime at The Hanover. While insurance protection is available through some carriers for this and other crimes, not all business owners secure coverage.
“We always advise owners to work with a knowledgeable independent insurance agent to ensure they have the right coverages, like fidelity and crime coverage, and place that coverage with a carrier who has expertise, so they can meet the specific needs of their business,” Gordon said in the release.
The Hanover recommends business owners consider the following best practices to avoid being victimized by employee theft:
– Perform thorough background checks (in accordance with the law) of all potential hires; don’t take shortcuts.
– Make sure there is clear accountability for every position in the organization and no position has broad enough power to authorize payments without the consent of another individual. Seek to set up a system of checks and balances.
– Set up a tip line for the organization, guaranteeing anonymity, in order to allow for the reporting of any suspicious activity or suspicious business practices.
– Encourage all employees who handle accounting and payment functions to take vacation time, with another person handling their work in their absence.
– Communicate often and clearly about the company’s policy on employee conduct.
– Don’t allow discrepancies to be attributed simply to the cost of doing business. Be sure to conduct a thorough investigation of discrepancies.
For more information on protecting your business from employee theft: visit http://bit.ly/1kU3Cz8
The Hanover Insurance Group is the holding company for several property and casualty insurance companies. It says it ranks as one of the 25 biggest property and casualty insurers in the U.S.

New owner wants Syracuse Crate to include more local favorites
CLAY — Syracuse Crate, a six-year-old online retailer of gift boxes that include products made in Central New York, has a new owner who has plans to expand the offerings. It’s a method for people and businesses to ship the area’s “iconic” foods around the world, says Thomas Connors, sole owner of Syracuse Crate. “There’s
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CLAY — Syracuse Crate, a six-year-old online retailer of gift boxes that include products made in Central New York, has a new owner who has plans to expand the offerings.
It’s a method for people and businesses to ship the area’s “iconic” foods around the world, says Thomas Connors, sole owner of Syracuse Crate.
“There’s an emotional attachment to things [such as] Hofmann’s Hot Dogs and Hinerwadel’s salt potatoes,” says Connors, a 1993 graduate of Bishop Ludden High School.
Connors spoke with the Business Journal News Network on Nov. 13.
Syracuse Crate is a way for someone in Alaska to share a salt potato or for someone in North Carolina to share Grandma Brown’s Baked Beans. Its Facebook page describes Grandma Brown’s Baked Beans as the “pride of Mexico, N.Y.”
“It’s a great way to bring the best of Central New York to the rest of the world,” says Connors.
Even though Syracuse Crate has mostly featured food items, Connors wants to add other cultural items to the package options, such as an historic Syracuse calendar or a compilation CD with songs from local artists.
“It started off as a food thing but I want to grow it into a Central New York cultural package,” he says.
Operations
After purchasing Syracuse Crate in June, Connors handled all operations from his home in the town of Camillus. That included acquiring supplies, keeping track of online orders, and assembling the orders by hand in his basement, he says.
“My plan was, in a year, to outsource it to a fulfillment company where they would be able to house all the inventory, [and] I [would] just keep them stocked,” says Connors.
One day he was visiting Pioneer Warehousing & Distribution in Clay, where Pastabilities, a restaurant in Syracuse’s Armory Square area, stores its Hot Tomato Oil, an item that Syracuse Crate includes in one of its crate packages.
That same day, Pioneer’s management asked if Connors needed any help with his fulfillment efforts.
“I’m at that point because I’m spending four or five hours per day, running around, trying to build crates, and hurrying up trying to get them to UPS in time to make the cut off [for shipping],” Connors recalls explaining to Pioneer management.
After a few meetings on the topic, he described the packing and shipping process and Pioneer provided him a flat rate per order, which he declined to disclose.
Connors has an agreement to use 500 square feet of space at Pioneer’s facility, and they’ll discuss a different rate once he exceeds the agreed-upon space allotment, he says.
Connors added Pioneer to Syracuse Crate’s operations in September, he says.
Purchasing the business
Connors first became familiar with Syracuse Crate after reading a newspaper article about it in 2008.
“I just thought it was an amazing idea,” says Connors.
He would buy the products and take them with him when he was living in both New York City and later Philadelphia after graduating from Fordham University in 1997.
When he returned to the area in 2007, he would perform music at local venues, such as Kitty Hoynes in Armory Square. While doing so, he met Luke Naughton, who originally launched Syracuse Crate, and the two developed a “great friendship,” says Connors.
The two started discussions in late 2013 about Connors leaving his position as manager of domestic-transportation services at Mohawk Global Logistics and helping with the operation of Syracuse Crate.
“In the spring, Luke informed me that he was going to be leaving Kitty Hoynes and opening …the Pale and Bucket … and he wasn’t going to have time for Syracuse Crate,” says Connors.
Naugthon told Connors he could sell the business to him or to someone else. The two worked out a deal that would make Connors the next owner.
“I had great visions for it immediately,” he says.
Connors declined to disclose how much he paid to purchase the company, but indicated he used his own money to complete the transaction.
He left his previous job at Mohawk Global Logistics in June, he adds.
Generating sales
Connors believes Syracuse Crate has, up until now, served mostly as a holiday business with about 90 percent of its sales occurring between November and December. But the customers who would ship crates as gifts during the holidays would also ship them throughout the year for occasions such as birthdays, he notes.
Connors wants to highlight a monthly reason to purchase a crate, such as Valentine’s Day, March Madness and St. Patrick’s Day, Mother’s Day, and Father’s Day.
“The goal is to make this a year-round thing,” he says.
Connors has turned to social media to generate awareness about the business, saying he was “surprised” at how many people weren’t aware of the company.
He’s also working on advertising for both television and radio.
Connors says the firm’s revenue is up 300 percent compared to 2013 and he expects the upcoming holiday season to be “robust.”
“If we can keep building the business, then … our goal of doubling [revenue] next year is very reasonable [and] attainable,” says Connors.
Contact Reinhardt at ereinhardt@cnybj.com
Making Self-Promotion Work For You
There’s nothing complicated about being successful in business. It’s simple and it goes like this: “It’s all about making a name for yourself.” That’s it, self-promotion or getting known. Whether it’s finding and impressing prospects, keeping current clients, or moving ahead in a career, volunteering has long been the platform for gaining visibility. For some,
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There’s nothing complicated about being successful in business. It’s simple and it goes like this: “It’s all about making a name for yourself.”
That’s it, self-promotion or getting known.
Whether it’s finding and impressing prospects, keeping current clients, or moving ahead in a career, volunteering has long been the platform for gaining visibility. For some, it’s serving on company committees and taking on extra assignments, or having a reputation as the “get it done” person.
In the community, self-promotion ranges from sponsoring or coaching youth sports teams, working charity fundraisers, belonging to a service club or fraternal organization, serving on nonprofit boards, chairing special events, or helping with alumni and civic projects.
Awards and commendations help, too, along with photos in local, business, alumni, and online publications. For added visibility, pursuing elected local office and moving up from there raises the bar even higher. Facebook, LinkedIn, and other social-media platforms can also ratchet up the getting well-known possibilities.
It boils down to getting as much consistent “exposure” as possible, and hoping there will be a worthwhile payoff. But, that takes work — lots of it. And there is no guarantee that the payback, if any, will justify the investment of energy and time.
While this may seem like a bleak picture, fraught with too many hurdles and not enough assurances, there is another way to look at it — a different perspective that acknowledges that being known is an essential component in achieving success.
At the same time, trying to get there can be like driving at night without headlights. Because of this, many who attempt to become “well known” make a fatal mistake. They assume that getting as much visibility as possible is what will get them there. Unfortunately, others find such behavior off-putting and negative.
Yet, “being known” can have immense value by letting the spotlight shine on what you do, not who you are, and that means always asking one question: “How can I help?”
In other words, with the proper focus, marketing or selling yourself can lead to success without going on an endless ego trip that alienates others.
And here’s how to do it. Pushing aside the absurd “self-made man” myth and currently popular “bootstrapping,” the unavoidable fact is that we all need help in reaching our goals. Think about it. Whether it’s getting a latte on the way to work, choosing what to wear for a special event, deciding on a dream home, doing a better job managing money, having career mentors, or simply figuring out a home-improvement project, we need help.
What we don’t want is hype. In fact, we reject it. The immense success of online peer recommendations makes it clear that we trust our friends, associates, and neighbors far more than we do “sponsored” endorsements or the slick and senseless words of clever copywriters.
It goes even further — much further. We reject anyone who tries to “sell” us, including those who try to “sell” themselves. We refuse to be told how to think, what to buy, or how to live.
And our customers want exactly what we want: they want helpers, even if they don’t come across them very often. Yet, they know them when they see them.
They respond to those who are skilled at identifying problems and crafting workable solutions. And they’re more than willing to plunk down their dollars for what makes sense to them.
If there were ever “magic words” in business that express exactly what customers are waiting to hear, here they are: “How can I help?” These words totally change the agenda by announcing that someone is willing to listen, learn, and share — not just get.
When “How can I help?” becomes the mantra, something remarkable happens. It makes people comfortable so they are more open, rather than wary and doubtful. They’re also more willing to tell others about their experience.
That’s the way it is with a long-time central Iowa builder, who says, “I love to serve. I did my own punch lists on my homes before turning them over to my customers. If I can serve you somehow, let me know.” He gets it.
After Condé Nast Traveler named XV Beacon in Boston the number one hotel in the country, The Boston Globe interviewed several guests. One said, “Everyone knows me by name, everyone understands my preferences … I don’t have to even ask for things. They just magically appear.” This is why 50 percent of the guests are repeat customers. It’s not magic. Like the builder from Iowa, the hotel staff gets it. They love to help.
Serving and helping are the best ways to get referrals and recommendations. People become your ambassadors and are eager to talk about how you have helped them, rather than what you sold them.
It’s helping that attracts and keeps customers, and here are some suggestions for engaging customers in a helping way:
1. Focus intently on what customers want. Note the little, seemingly insignificant, things that make them smile. These make the difference, so keep track of them.
2. In the same way, keep a record of dislikes, the bothersome things that can add up fast and create discontent.
3. Put yourself to the test by asking if a proposed solution will really help your customer or prospect reach his/her goal. If there’s doubt, reject it.
4. Express appreciation. Say thank you for the opportunity to help.
5. Keep customers and prospects top of mind by always being alert for helpful ideas to share with them.
6. Respond promptly to all messages, not just the ones you think are important. People want to know you received the message they sent. It’s a unique way to help.
Nothing contributes more to success than helping. It sends a clear message that you know what has value to your customers.
John R. Graham of GrahamComm is a marketing and sales strategist-consultant and business writer. He publishes a free monthly eBulletin, called “No Nonsense Marketing & Sales.” Contact him at jgraham@grahamcomm.com
Here we are, nearing year-end, and everyone’s favorite topic — income-tax planning. This year you should be hearing your CPA mention things like net investment income tax and the unknowns around the fate of the “extenders.” While the net investment income (NII) tax is not pleasant, it exists and can be counted on as a
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Here we are, nearing year-end, and everyone’s favorite topic — income-tax planning. This year you should be hearing your CPA mention things like net investment income tax and the unknowns around the fate of the “extenders.” While the net investment income (NII) tax is not pleasant, it exists and can be counted on as a concern unlike the aforementioned expiring provisions which seem to fall in the “anyone’s guess” category.
Many experts believe the provisions that have expired will be extended, based on the premise that the economy is largely impacted by an active consumption base and many of the extenders are consumption oriented. Bonus depreciation comes readily to mind. As the House and Senate wade their way through the legislative process, taxpayers were assured of limited answers until after the distraction of the elections, at best.
What is a taxpayer to do? Turning to the traditional year-end approach makes sense at this point. By looking over investments you can determine if there is anything you should do before year-end to land in the best position regarding capital gains, losses, and the 3.8 percent tax on investment income. Good planning may help you keep items out of the NII category. There may be an opportunity to “bunch” deductions, maximizing the potential for dollars spent. Phase-outs and limitations make these decisions less than straight forward, so a comprehensive look at tax planning is wise.
More important than ever is the marginal tax bracket. You may have opportunities to leverage your marginal tax through a combination of income deferral, income shifting, and contribution of appreciated assets. In other words, be wary of tunnel vision. Just because something may seem like a good move before year-end, be sure to consider the potential benefits of a transaction that occurs next year. That next-year trigger might even be the first business day of the following tax year. Having said that, never put off saving for retirement. The dollars you save now will earn returns tax deferred or even tax-free.
If you have working-age children, consider helping them establish a ROTH IRA. Did I mention that it is never too soon to begin saving for retirement?
Many times tax planning is looked at simply in terms of reducing this year’s balance due. While this is clearly an important lens, there is more to consider. Have you thought about long-term gifting plans to children? Keep in mind that you can make tax-free gifts up to certain limits each year. Taking this approach, you will be reducing your taxable estate, shifting income-producing (read: tax-liability producing) assets and potentially sheltering assets from future exposure.
While trusts and annuities may seem scary, “trust” me — they can be highly effective and may well go a long way toward protecting your assets, your family, and ensuring that your philanthropic objectives are met.
Your best bet for a successful plan is to get one in place. Don’t wait for mid-December, call your CPA today and enjoy the luxury of holidays without tax planning hanging over your head.
Gail Kinsella is a partner in the accounting firm of Testone, Marshall & Discenza, LLP. Contact Kinsella at gkinsella@tmdcpas.com
“The only thing that saves us from the bureaucracy is its inefficiency.” — Eugene McCarthy We’ve all seen the news reports on the ability of “computer hackers” to access electronic information that is reportedly well protected. These reports are relatively ominous. Millions of individuals have had their credit-card information illegally obtained. Hackers around the globe
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“The only thing that saves us from the bureaucracy is its inefficiency.”
— Eugene McCarthy
We’ve all seen the news reports on the ability of “computer hackers” to access electronic information that is reportedly well protected. These reports are relatively ominous. Millions of individuals have had their credit-card information illegally obtained.
Hackers around the globe have had success in penetrating what we would normally consider to be the most secure electronic information. For example, the National Security Agency database as well as the Defense Department and major international banking institutions have all been made keenly aware of system firewall vulnerability.
Most of these data breaches have resulted from the trend toward cloud computing. In simple terms, cloud computing is the mass centralization of computing resources that is made available to a multitude of users.
I recently spoke with Carl Cadregari, a certified information systems auditor in the Enterprise Risk Management Division of The Bonadio Group, and Alfonzo Cutaia an attorney in the Information Technology & Internet Practice Group of the Buffalo law firm Hodgson Russ LLP about this topic. The purpose of this column is to examine the multitude of compliance and security considerations that must be evaluated, particularly if you are using cloud computing.
Regulatory compliance in the cloud
You may need to Google some or all of the acronyms in order to fully understand regulatory compliance requirements in this area — FISMA, HIPAA, HITECH, GLBA, PCI DSS, FERPA, CIPA, SOX, MASS201, SB1386, NYISBNA, and 21CFR11. If any of these sound familiar, then you know you must have auditable requirements and actions in order to maintain your compliance with these and other data-security regulations.
Therefore, you need a thorough understanding of how using cloud computing affects your responsibilities and compliance actions. Generally, most laws and regulations require that you demonstrate that your cloud provider (or ASP, SaaS provider, and/or outsourcing host) has at least the same or similar controls as you have in place in your internally hosted systems to protect the data as required by law.
So, if your organization relies on a cloud-based, third-party payment processor that also has collection responsibility, and to which you send personally identifiable information, what does that cloud provider have to do? What do you have to do? And what happens when data is lost, inappropriately accessed, or otherwise compromised?
Assuring your cloud
The use of cloud resources can be highly beneficial to most any business — but you should always know the risks, use the appropriate resources and experts from the audit and legal community, and be prepared to answer the following questions. These questions are the most basic that should be answered when contemplating the use of a cloud provider; you should be prepared to have in-depth technological, legal, and business conversations on each. In all cases, an uncertain or negative answer from the vendor should be considered a potential deal breaker since even one poor control could be used to exploit all of your data.
One overarching question needs to be answered for your entire project: Who is your independent auditor for all of these areas, and how often does it perform audits?
Security
– How is data encrypted at rest and in transit?
– How is data protected from unauthorized access?
– How is data disposed of?
– How is cloud provider internal security handled?
– Administrative controls
– Physical controls
– Logical controls
– What rights and abilities do we have in the case of a breach (e.g., right to audit, ability to perform forensics investigations)?
– What reporting obligations does the provider have to notify users of security breaches (e.g., indemnification for breaches)?
– What actions have you/the provider taken to prevent attacks?
– What protections do you require we have in place?
– How do we reliably demonstrate and communicate security procedures to clients?
– How much ability do you give to your customers to perform their own assurance procedures, such as security scanning or audits?
– How do we handle overlapping or contradictory interstate regulations on data privacy?
Compliance
– What compliance standards do you meet?
– How do you maintain compliance before, during, and after a move to cloud computing?
– What third-party assurance (e.g., SAS 70, WebTrust, Systrust, etc.) documentation is in place assuring compliance?
– How can you track the physical location of your data for compliance (e.g., certain laws prevent data being stored in certain countries)?
– Beyond just data security, what documentation will the vendor provide that will allow us to maintain compliance requirements such as those in Sarbanes-Oxley?
– Are we prepared to maintain the needed internal controls and compliance to the levels required by all of our data?
– At what point are we providing too much information regarding internal controls and procedures, and endangering our business?
Availability
– How much uptime is guaranteed?
– Is there a guaranteed service level? Who monitors it? What reimbursements will occur if the guaranteed level is not met?
– Now that we access all services over the Internet, do we have enough bandwidth for all employees, and/or does our provider have enough power and bandwidth to service our needs?
– Can our service be interrupted based on the activity of non-related cloud consumers (e.g., hard-drive subpoena)?
– How is information segregated between clients?
– How will assurance be provided by the cloud company regarding availability?
– To what level are you (cloud provider) responsible, fiscally, legally, or otherwise, for lost business as a result of your service outages or issues?
– What are your disaster recovery and business-continuity plans now that we have a cloud infrastructure?
Operations
– How can we monitor the load and performance of the cloud?
– How can you assure me that we are being billed fairly for our usage?
– What tools are available and allowed to monitor security in our cloud?
Cost of a data breach
In the current environment, misappropriated data, stolen and lost physical assets, and unintentional and intentional breaches occur with frightening regularity to every type and size of business. The recent initial study done by the Ponemon Institute, a prominent research firm on this topic, regarding the cost and frequency of cyber crimes shows that the companies surveyed each had at least one successful cyber crime per week. And, the annual cost of managing those attacks exceeds $3.8 million.
The report detailed costs in most every business area affected, cyber-crime detection, avoidance, incident management, asset loss, etc., but did not include non-compliance fines, sanctions, and lawsuits, which could easily double the true costs. Just look at some of the fines being levied: Rite Aid to pay $1 million for a HIPAA violation, $40.9 million for TJX for lost credit-card data, $750,000 for Health Net of NE for a lost hard drive, and California’s health agency fines six hospitals more than $790,000 for a privacy data breach. The list goes on and on.
As cloud computing grows, so will its exposure and use in criminal activity, as will the need for cloud forensics. Case in point, just take a look at any of the recent headlines or on any of the data breach websites like www.cloutage.org (founded by the Open Security Foundation). In 2010, of the 322 incidents reported, 54 incidents identified data lost, the cloud provider was hacked or a cloud vulnerability was found.
Remember, it is always your responsibility to keep your data confidential, maintain its integrity, assure its availability, and meet your obligations under regulations and laws; just don’t lose your head because of the cloud.
Gerald J. Archibald, CPA, is a partner in charge of management advisory services at The Bonadio Group. Contact him at garchibald@bonadio.com

Junior Achievement ramps up to serve Central New York
Junior Achievement (JA) of Central Upstate New York is reconnecting with Central New York businesses and professionals to bring its programs back to area schools. After the CNY chapter of JA formally dissolved at the beginning of 2014, the Rochester chapter announced in February it had assumed responsibility of the CNY region. Now covering 25
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Junior Achievement (JA) of Central Upstate New York is reconnecting with Central New York businesses and professionals to bring its programs back to area schools.
After the CNY chapter of JA formally dissolved at the beginning of 2014, the Rochester chapter announced in February it had assumed responsibility of the CNY region. Now covering 25 counties, the organization serves the largest geographic area of any JA chapter in New York state.
JA’s mission is to work with volunteers in the community who go into classrooms to teach essential life skills focusing on financial literacy, entrepreneurship, and work readiness.
JA hired Steve Vonderweidt as executive director of the Syracuse region. He started on April 1 and currently operates from a small office in the Thruway Office Building in Salina. JA of Central Upstate New York is headquartered in Rochester and has another satellite office in Elmira to cover the Twin Tiers region.
The Rochester chapter started with six counties to cover, and then increased its territory in 2008 by merging with the Twin Tiers chapter, gaining Steuben, Schuyler, and Chemung counties.
Each region — Rochester, Twin Tiers, and Syracuse — has its own advisory board and focuses on raising funding and delivering programs in its respective counties.
The organization has eight full-time employees, including Vonderweidt and Tammy Schoonover, executive director for the Twin Tiers region. JA relies heavily on volunteers to deliver its programs to students.
“We couldn’t deliver our mission without volunteers who bring the world of business into the classroom,” says Patricia Leva, president and CEO of Junior Achievement of Central Upstate New York, who is based in Rochester.
Volunteers are needed to teach classes for one hour a week for five to seven weeks, depending on the grade level. Prior to going into the classrooms, volunteers take a 90-minute training course to cover lesson plans, conduct in the classrooms, and key terms and concepts.
“Volunteers really do get to change lives. [They] open the children’s eyes to experiences they haven’t thought about,” says Vonderweidt. “Without volunteers, we can’t serve any more kids.”
JA programs, Vonderweidt says, can show students how to use the resources around them to start businesses, which the region needs.
Regional coverage
So far, Vonderweidt has been reaching out to schools in Onondaga, Madison, and Oneida counties to reestablish JA programs. A few Utica–area businesses and volunteers reached out to Vonderweidt, eager to bring JA programs back to their students.
With nearly 77,000 students enrolled in Onondaga County public schools alone, Vonderweidt estimates that, hypothetically, JA would need at least 3,000 volunteers to reach those students.
“There’s no way I can serve all of them by myself,” he quips.
But growing the local office will happen slowly and strategically. The goal is to make sure every kid has an excellent experience and you can only do that by being strategic, Vonderweidt says.
He compares his strategic approach to that of a three-legged stool, with the legs representing fundraising, volunteers, and schools. Fundraising is needed to provide the material for the programs, volunteers are needed to teach, and schools are necessary for hosting JA programs.
“If you grow one of the legs too much or too little, the stool is going to fall over,” Vonderweidt says. “Every part of the stool is important.”
While the goal is to deliver services to as many students as possible in the JA regions, Leva says, “staffing [increases] will occur as it makes sense for our business model.”
In the Twin Tiers region, JA provided programs to almost 1,800 students in 58 classrooms in 18 different schools during the last school year.
JA partners with the Greater Binghamton Education Outreach Program (GBEOP), a nonprofit affiliate organization of the Greater Binghamton Chamber of Commerce, to deliver its programs. JA is one of GBEOP’s four main programs. This past spring, more than 600 students in 32 elementary, middle school, and high school classrooms in Broome County participated in the JA program, according to the Greater Binghamton Chamber of Commerce’s July Chamber Report.
On Oct. 2, the Syracuse region JA was one of four area nonprofits to receive part of a $125,000 grant from First Niagara. Vonderweidt says that the grant money will go toward programming in Syracuse, Binghamton, Utica, and the area in between.
“We’ll be able to serve hundreds of kids with this grant,” says Vonderweidt.
JA generates total gross revenue of about $800,000 annually. In the Syracuse region, the goal is to raise $150,000 to $200,000 for the year. The Twin Tiers has an annual goal to raise around $100,000 each year.
“We’re a fiscally stable entity,” says Leva.
For three years in a row (2011, 2012, and 2013), the JA of Rochester Area has received the Junior Achievement USA’s Peak Performance Award for demonstrating “a strong financial position and positive student growth.” Only 12 offices among all 115 JA offices nationwide receive the award, according to JA.
Coming home
A native of Ithaca with a professional background in nonprofit administration, Vonderweidt spent the last 10 years in Louisville, Ky. While there, he earned his MBA from the University of Louisville’s entrepreneurship business program. He was the director of Bridges for Hope Neighborhood Place, a regional service center in Louisville, prior to joining JA.
According to Leva, Vonderweidt had the experience the nonprofit was seeking in an executive director in Syracuse. He had experience running a nonprofit, managing a large board, and an entrepreneurial thought process that could help rebuild the JA brand in the area, says Leva.
JA also fit the bill of what Vonderweidt was looking for in a career — merging business entrepreneurship with helping people. Accepting this position also allowed him to accomplish another goal — moving back to the area with his wife and four children to be closer to family. “To quote Dorothy, ‘There’s no place like home,’” says Vonderweidt.
Contact Collins at ncollins@cnybj.com
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Junior Achievement of Central Upstate New York
Syracuse Region
290 Elwood Davis Road, Suite 290, #6
Liverpool, NY 13088
Phone: (315) 744-7934
Twin Tiers Region
1600 College Avenue
Elmira, NY 14901
Phone: (607) 734-0562
www.juniorachievement.org
Key Staff
President & CEOPatricia Leva, Junior Achievement of Rochester
President & CEO compensation from 06/30/2013 IRS Form 990 $87,070
Executive Director, Syracuse RegionSteve Vonderweidt
Executive Director, Twin Tiers RegionTammy Schoonover
Greater Syracuse Advisory Board of Directors
Chris Cartmill
Karen Dejarnette
Michael Dermody
Robert Ellis
Lisa Kerns
Michael Kroll
Mark Lesselroth
Evelyn Liddle
Jim O’Brien
Steve Vonderweidt
Zachary Zuckerman
Greater Twin Tiers Advisory Board of Directors
Charles Bright
Steve Burns
Kristine Dale
Mark Fife
Russ Heft
Karen Miner
Tammy Schoonover
David Stewart
Theresa Stewart
Kirk Vieselmeyer
Kristi Wead
Anne Welliver-Hartsing
Mission
To inspire and prepare young people to succeed in a global economy.
Programs & Services
More than 20 different programs that help prepare young people for the real world by showing them how to generate wealth and effectively manage it, how to create jobs which make their communities more robust, and how to apply entrepreneurial thinking to the workplace.
Revenue Sources
Contributions & Grants: $686,440
Program Services: 0
Investment Income: $6,480
Other: -$65,320
Total Revenue: $627,600
Expenditures
Salaries & Employee Benefits: $357,124
Other: $174,891
Total Expenses: $532,015
Surplus for the Year: $95,585
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