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Gov. Andrew Cuomo on Thursday announced $210 million in initial funding for the NY Green Bank, which he calls a new market-oriented approach to accelerate
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New York’s unemployment rate declined to 7.4 percent in November, from 7.7 percent in October, hitting its lowest level since January 2009. That’s according to
Upstate New York provides a great environment for entrepreneurial activity. One of the key ingredients to building a successful entrepreneurial ecosystem is mentorship. First-time or inexperienced entrepreneurs have a need for consultation and guidance. That mentorship provides for much greater outcomes as the business matures. Strategy, connections, insight, and a few gray hairs provide much-needed
Upstate New York provides a great environment for entrepreneurial activity. One of the key ingredients to building a successful entrepreneurial ecosystem is mentorship. First-time or inexperienced entrepreneurs have a need for consultation and guidance. That mentorship provides for much greater outcomes as the business matures. Strategy, connections, insight, and a few gray hairs provide much-needed support.
The mentors active in the region come from all walks of life and geography. Most importantly, they have had substantial success from which others can learn. One such mentor is Michael Duda. He’s a native of Syracuse and a graduate of St. John Fisher College, near Rochester. Upon graduation, Duda spent a couple years in Rochester before moving to New York City in 1995. He now resides in Connecticut with his wife and three children.
Duda is the co-founder/managing partner of Consigliere Brand Capital, a marketing-management consultancy with a venture-capital fund. Consigliere features a unique group of business athletes joined together to work with ambitious entrepreneurs to install fundamental marketing principles at the operational level to help propel brands to go further, faster. Consigliere’s portfolio includes the likes of Under Armour, Chobani, Warby Parker, Birchbox, and Harry’s — to name a few.
Previously, Duda spent 17 years in the world of Madison Avenue, the last 12 at Deutsch Inc. As partner, chief corporate strategy officer, he oversaw business development, corporate strategy, public relations, and agency brand development as well as relationships with brands ranging from the Fortune 500 to upstart firms closing in on them.
Duda is a board member of Syracuse University’s David Falk School, winner of Crain New York’s coveted “Top 40 Under 40” New York City business people award, and can often be found yelling at referees at sporting events.
Duda embraces his affinity for the upstate New York region by providing mentorship to early-stage companies. His passion and connection to the region can be felt in the answers he provided to the questions we asked him.
Q: Mentorship is an important ingredient to entrepreneurial success. Why is it important to you, and what propels you to take action given your busy schedule?
A: My dirty-little secret belief of mentorship is that I benefit as much, if not more, than the person seeking counsel. Meeting with all sorts of people helps me stay apprised of what’s going on across the business landscape as well as to identify incredible talent and teams. And as a good Catholic boy from St. Ann’s School in Syracuse, I feel it really is just the right thing to do.
That said, I wish I could point to being perfect on the time-commitment element. Unfortunately, as a fellow entrepreneur whose business is also driven by unforeseen marketplace or portfolio-company needs, I wish I was better at taking more action.
Q: How did you get connected into the entrepreneurial ecosystem in upstate New York after you left?
A: I grew up in an era where Syracuse was (perhaps painfully) transitioning from a thriving blue-collar city to health care, technology, and services. I still remember the day when Allied Chemical announced its pull-out. I did not realize the gravity of the situation, but knew it could not be good given how local news outlets were reporting it.
Over time, I came to appreciate that in the face of tough times, the pendulum must swing the other way. And it has been germinating for a while when you look at what Eric Mower, Mark Russell, and Pinckney Hugo have done in advertising, Welch Allyn in medical devices, and Chuck Stormon, Nasir Ali, and Mitchell Patterson in entrepreneurship in different ways. Then there are the Howard Dolgons, Bob Congels, Ray Halbritters, and Hamdi Ulukayas of the region. The list is deeper than people realize, and given the continued uncertainty of big companies like Lockheed Martin, the ability of entrepreneurs to light a number of mini-torches for growth will provide a great path for the region’s future.
Syracuse is too damn good of a town with great people to stay down for a sustained period. Those mentioned above, be it directly or indirectly, have motivated me to reconnect and help make the community where the bulk of my family lives everything it can and should be.
Q: A lot has changed in the region since you graduated from college in 1993. Why is it more advantageous for graduates to stay in the region today compared to then or even just a few years ago?
A: With the advances in technology and the strong education base, there are few reasons why the next great company can’t come out of a Syracuse or Madison, Wis. or Des Moines, Iowa. The idea that entrepreneurs must go to Silicon Valley, New York City, or Boston to make it is not true. Sure, those ecosystems are strong and bountiful, but those too have been self-built.
Coupled with the rise of the Millennials, a generation intent on having strong personal goals as well as a business, Syracuse is a great place to live and raise a family. That matters.
Ultimately, those who have the drive, passion, vision, and a chip on their shoulder tend to lead the way. And, I think that is happening right now in the 315 area code.
Q: The region has tremendous untapped value that can lead to exponential growth. What valuable characteristics do you see that maybe others don’t?
A: The biggest negative of the region is a too-widespread mentality that the glass is half empty, that in the wake of economic decline, the doldrums are the new mainstay. And for a while, I think a lot of people have been waiting for someone else to do something.
But the people in the Syracuse area tend to have a lot of genuine heart, hustle, and work ethic in their bones. They care for others. They are proud, and even those who might self-loathe about the area will be the first ones to speak passionately about it to out-of-towners.
On top of that, the region has some tremendous minds and young ones who might be wonderfully naïve enough to not know what they can’t accomplish when you look at Cornell University, Syracuse University, and other schools.
More people are asking, “Why not?” than thinking “Cannot.” And, that’s why I am bullish on Syracuse and Onondaga County.
Q: If people reading this decided they wanted to become a mentor, what are some steps they could take in order to make that happen?
A: Figure out what you know and have the mindset built on empathy for the person across the table. Rinse. Lather. Repeat.
Robert M. (Rob) Simpson is president and CEO of CenterState CEO. Contact him via email at: rsimpson@centerstateceo.com. Kyle Blumin is an entrepreneur in residence at Syracuse’s StartFast Venture Accelerator. Contact him on Twitter at @kyleblumin
ENDICOTT — In 1984, at age 16, Larry Wilson walked into BSB Bank and asked for $300,000. This wasn’t a holdup; the teenager wanted a loan to start a video business. His collateral was $42,000 of Victory Markets stock he had parlayed from a $3,000 investment. BSB said yes to Wilson’s request, and three years
ENDICOTT — In 1984, at age 16, Larry Wilson walked into BSB Bank and asked for $300,000. This wasn’t a holdup; the teenager wanted a loan to start a video business. His collateral was $42,000 of Victory Markets stock he had parlayed from a $3,000 investment. BSB said yes to Wilson’s request, and three years later loaned him another $2.1 million. The entrepreneur sold the 33-store chain, Video King, to Blockbuster in 2006.
In 2005, Wilson and his partner Scott Searles opened their first Moe’s Southwest Grill franchise restaurant in Vestal. On Dec. 12, 2013, they opened the most recent location at 7560 Oswego Road in Clay. Moe’s is a rapidly growing, national, fast-casual restaurant chain headquartered in Atlanta that appeals to young people with its signature dishes such as the Homewrecker burrito, the Close Talker salad, and the John Coctostan quesadilla.
Wilson and Searles now have Moe’s restaurants in Auburn, Binghamton, Camillus, Cicero, Clay, DeWitt, Ithaca, New Hartford, North Utica, Vestal, and Clarks Summit, Pa. The pair will open a location in Rome in February 2014 and are projecting more openings later that year. “Moe’s is on fire,” says Wilson. “Our units have the second highest volume [in the national franchise], and we are opening stores at a [blistering] pace … The store footprint is around 2,800 square feet, and we [generate] 15,000 single transactions a month … The average sale is $8.78 [which yields] … more than $1.5 million annually per store.”
FOCUS Brands, Inc., which owns the Moe’s Southwest Grill chain, is careful to find qualified candidates for its expansion. Each franchisee must have restaurant-management experience as an owner or operator, have a net worth of $1.5 million and liquid assets of $500,000, and be capable of opening a minimum of three restaurants, according to the Moe’s website. The initial franchise fee is $30,000. In addition, the franchisor charges 5 percent for a royalty fee and another 4 percent for marketing. The marketing fee is returned to the franchisee if his marketing is approved by the home office. “When we started with our first Moe’s, it cost $350,000 to open a store,” says Wilson. “Today, it’s closer to $650,000. We generally lease our space, but I bought the [7560 Oswego Road, Clay] building, which was originally occupied by Friendly’s [Ice Cream, LLC]. The … store cost $1.7 million for the land, the building, and the build-out.”
The national office recommends that Moe’s be sited in “strong anchor centers or highly visible convenience centers” that offer a strong retail synergy. Within a two-mile radius, there should be a minimum population of 30,000, of whom 15,000 are employed. The median income is $50,000, the “median age is 40 and below, and the household size is 2.5+,” according to the Moe’s site. While Wilson and Searles generally follow the guidelines, “we prefer to be in neighborhoods where families live, play baseball, and go to school,” says Wilson. None of the Moe’s has a drive-through. The DeWitt store offers catering, of which 90 percent is to area businesses.
The reasons for Moe’s popularity are many. The chain insists on fresh foods including cage-free chicken, steroid-free pork, grass-fed steaks, and only fresh produce. Moe’s uses no microwaves or freezers, no trans-fats, and no MSG. For those who favor vegetarian, low-calorie, or gluten-free selections, there are plenty of choices, along with a kids’ menu. On Mondays, Moe’s features the $5 burrito. Many of the menu items are named for popular TV and movie characters, and the background music suggests a “hip” atmosphere. Convenient locations and ease of parking also ensure Moe’s popularity.
Wilson and Searles established Southwest Grill of NY, LLC in June 2004. Headquarters is located at 111 Grant Ave. in Endicott. Each location is incorporated separately. Wilson and Searles are the two principals in the business.
Diversifying into yogurt
Last year, Wilson’s son Christian, now a freshman at Binghamton University, came to his father with another idea for an eatery. The concept was to create a frozen-yogurt venue where the customer picked the toppings and paid for the dessert based on the weight. The key was to use fresh dairy products and real fruit purees cut fresh daily. Keeping to the healthful theme of yogurt with its vitamins, minerals, and pro-biotics, most of the flavors would be gluten-free and certified kosher.
Twenty-four toppings would add variety and flavor.
Not one to dawdle, Larry Wilson opened his first Hoopla! Frozen Yogurt store this year on Aug. 1 in Binghamton. More stores followed in Cortland, Auburn, and North Utica. The New Hartford store opened Dec. 20, with additional store openings planned. Wilson and Kevin Blake are the principals in this company, along with investors Travis Hayes, Todd Mansfield, Scott Searles, and Christian Wilson. “We see a synergy between Moe’s and Hoopla,” says Wilson. “That’s why we plan to locate the two franchises together. Both [restaurants] focus on fresh food and appeal to the same people … Eat at Moe’s and have your dessert at Hoopla … The Hoopla footprint is smaller than Moe’s, around 1,500 square feet. We get the same traffic count, about 15,000 transactions a month, but the average sale is only $3.89. Where Moe’s stores average $1.5 million a year [in revenue] Hoopla’s stores average around $700,000.” Wilson says he hasn’t decided yet whether he and his partners will become a franchisor of Hoopla, but the answer is “probably.”
By February, the two principals will have opened 12 Moe’s stores, following the Rome opening. “We’ll have 15 open next year and 19 by 2015. Combined with Hoopla’s growth, our revenues should double in the next 36 months to $45 million a year … That means the current 450 full- and part-time employees are projected to grow to 1,000 by 2016 … Our [expansion] strategy will take us south to Lancaster [Pa.] and York. Next, I’m looking at Cleveland,” Wilson says.
For Wilson, training is a key to success. “We bring up a trainer from Moe’s in Atlanta for two weeks of every month, both for in-store and class training,” declares Wilson. “It’s a [sizable] expense, but that’s what really separates us from the competition. Our employees need to know not only our [offerings] but also the Moe’s experience. You don’t come here just to eat Mex–Tex. It’s the fun atmosphere [that sets the stage]; customers come for the total experience.”
Never one to miss an opportunity, Wilson incorporated Southwest Grill Maintenance, LLC in June of this year. He is the sole stockholder. “We do all of our own build-outs, now,” says Wilson. “Currently, we are working on four locations [simultaneously].”
Wilson attributes the success of Moe’s, in large part, to the management team, which includes Wilson, Searles, Joe Tebsherany as the store operator, and Chris Heirman as CFO. He also notes his long-standing relationship with M&T Bank. “They are fantastic,” says Wilson. “They have never said no.” He has also been a client of Binghamton–based Piaker & Lyons [,P.C.] since he was 16 years old and has relied on The Law Office of John G. Dowd Attorney for his legal work. “Our major food suppliers are Rinehart Food out of Sunbury [Pa.] and Syracuse Banana for our fresh produce,” avers Wilson.
At 45, Wilson says he will work five more years. “Then I would like to turn it over to my three children … I want to help the kids run the business,” says Wilson. “Life is great. It’s been a blast … My father always told me to give the customers what they want and when and how they want it. It’s great advice that I’m passing on to my children.”
Wilson and his partners are on a tear to open Moe’s and Hoopla stores. At the rate he’s going, the companies could hit $100 million in sales by the time he retires.
Contact Poltenson at
npoltenson@cnybj.com
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