By Randy Fader-Smith
There he was referred to the college's small business development center, which helped him secure a $100,000 installment loan to help get him on solid financial ground.
Marvin Burk, co-owner of Manhattan-based West Group, a graphics design company, was looking to expand his client base. At the same time, Brian Lai of 10Q, a gourmet café in Long Island City, was interested in hiring a graphics designer to create a catering brochure. Through NY Designs' growing business network, the two men were hooked up.
When Yeon-Soo, an industrial/interior designer who co-owns Nuf Designs in Manhattan, decided to manufacture a line of furniture, she soon realized she did not have the business know-how to market her product. In need of ways to launch her venture, she enrolled in a NY Designs business course that showed her how to promote her merchandise.
These three New York City professional designers are among a growing number of burgeoning design companies that produce high-design and technologically advanced products for gift, home furnishings and the architectural and building markets that are taking advantage of the incubator's resources and expertise.
Launched in March with the support of a $5 million grant from New York state, the center, at 31-10 Thomson Ave. in Long Island City, provides clients with a host of professional business growth services. It also offers equipment rentals, individualized business counseling, business courses and professional service referrals.
“The design industry is a vital and thriving sector of the city economy,” said Mary Howard, director of the center, who pointed out that design businesses in New York generate more than $4.5 billion in annual payroll and employ more than 175,000 people.
“NY Designs was created to ensure that promising design firms grow into successful, vibrant businesses that contribute to the economic and cultural growth of New York City,” she said.
Research shows that incubation centers play a powerful role in the survival of fledgling businesses. A study by the National Business Incubation Association on the impact of incubators indicated that 87 percent of incubator graduates remain in business after the first five years while only 20 percent to 30 percent of small businesses overall succeed in the same period.
To ensure that this industry succeeds in an increasingly competitive environment, the Long Island City-based center offers affordable space rental, a vital resource. Within the pilot facility, 3,500 square feet of space has been set aside for production, which includes two studios, a prototyping workshop and a conference room. An additional 25,000 square feet will be available in January when the renovations are completed.
“The need for flexible rental space is a universal concern among designers,” Howard said. She noted that because of the high office rentals in Manhattan and the outer boroughs, the majority of designers have no option but to work out of their apartments while looking elsewhere for showroom, storage and conference space.
“These people are running all over the place to operate their businesses,” she said. “For instance, a designer may have his workshop in Greenpoint, storage space in New Jersey and a showroom at another location. We studied the situation and realized it would be extremely useful to put all these spaces under one roof.”
Clients can also rent equipment to produce product prototypes at the center.
Another concern that is being addressed is the need to help designers gain a better understanding of the business side of their creative enterprise. The center is offering a variety of courses including marketing, business plan development, the basics of self-promotion, professional three-dimensional model-making and online marketing.
“Designers have many new ideas but can be less confident of how to sell them,” said Natalia Arguello, the creative marketing director. “What we try to do is expose them to the business aspect so that they can take their business to a new level.”
Michelle Zaffino, client development director, added that their clients are “very close to the top, so your perception is that they are in a sound financial situation, but they are still struggling because they need to expand their knowledge of business practices.”
Yeon-Soo said that she fits into that category. “My design education did not cover marketing and other business areas,” she said.
The center also helps strengthen clients' business skills through individual counseling available for the flat fee of $25 per hour.
One Long Island City designer who took advantage of the service was Michael Davis, owner of Michael Davis Stained Glass Inc., a company that provides a full array of services for specialty glass ranging from glass-blown pieces, tableware and one-of-a-kind gallery works to commissioned and restorative stained glass.
“I am constantly trying ways to develop my business,” said Davis, whose pieces are sold in Tiffany & Co. and Barney's.
Noting that the business part of his enterprise is the last aspect he is trying to develop, Davis said he can rely on the center for advice on such matters as how to bid on a job and design a budget, as well as for ways to approach business situations. “For $25 I can really get some sound business advise,” he said.
If there is a particular service the center cannot provide, the center will act as a referral agency connecting designers with outside professionals. Arrangements are made with venture capitalist firms, real estate agencies, accountants and public relations firms.
This service helped Pellone, of the home and office accessories manufacturer Benza, during his “moment of crisis,” he said. A NY Designs counselor recommended the first order of business be to stabilize his 6-year-old company. She referred him to the college's Small Business Development Center, which helped him secure a $100,000 installment loan that helped get him on solid financial ground.
“He had the experience, he knew all the tricks and knew how to get there,” Howard said. “All he needed was money.”
Pellone noted that he planned to meet with a business consultant who was going to charge him $200 an hour and a lawyer who charged a $300-per-hour fee. “Aside from the loan, I saved thousands of dollars in legal and consulting fees.”
By bringing designers under one roof, the center has created its own internal network. “They are now all in the same orbit,” Zaffino said. “And all can benefit from this interactive structure that has been created.”
Burk, one of the center's clients who is benefiting from the network, sees the center as playing a vital role in the lives of the city's designers.
“It is wonderful that the center is reaching out to businesses in the arts,” he said. “I see it having a major role in the growth and vitality of this special community.”
Randy Fader-Smith is the associate director of public relations for LaGuardia Community College. This series is provided by the Queens Economic Development Corp.
