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-- I'd be happy small business center Wednesday -- Lawrence amenity thank you for joining us our Chad is opening Chad then tweet me at its amenities Lauren.
And first we got to start with the powerball the winning half a billion dollars a billion dollars in ticket sales is expected by tonight.
With everybody trying to -- -- one in a 170 million people that could possibly win that powerball jackpot so our question of the day for you is.
How do you spend 500 million dollars if you one.
He passed -- debt you donate to charity.
Buy a new car travel share -- family and friends and I'm sure he'll be getting a lot of new family and friends.
Or other so let us know I just don't know and they do with the money and ninety all of those things.
But for a business poignant -- The cash option for 500 million is 300 and funny or so million dollars.
Take out 25% for federal tax is about 46%.
-- state taxes in many cases.
And out couple other -- -- your lack of Mimi 225.
Million in the end just saying a lot of money out take it but less than half of the jackpot.
Our eight let's kick up the small business -- -- talking about the small business challenge.
And to have been joined by memories Lopez from mom Miami.
With some lessons that the small business.
Challenge definitely teaches the small businesses out there hey Maurice good morning good morning we'll learn her -- -- -- you.
Very good all right so tell me about the small business challenge when it is that your company early shares -- CEO your sponsor of it cracked.
Call -- when we we put the challenge together we're major sponsor where the financial contribution portion of the of the challenge.
-- the idea behind this was too.
Get small businesses use to the concept of social media as they.
As a resource.
Not only for marketing vote for funding and -- -- the jobs act has been passing the law.
Okay and done you have 1000 pages some more about a thousand businesses compete for a day.
Yeah it was a great success we had over a thousand companies applies enjoyment and entered -- contest -- with 30000.
Individuals who voted for these companies.
The first phase lasted about sixty days where companies could nominate themselves people could nominate a company and then it is good that company rallied.
-- social media their friends the FaceBook friends or Twitter friends or email.
And and got him to vote for them and in the image basically it was a very viral campaign.
And this challenge for the business as was they had to use their social media influence.
To get those votes -- it sounds easier than it is I mean a lot of companies thought.
Be very easy to get over the hundred you know the hundred qualifying votes to me to be considered in the finalists.
You know it's it's very difficult to get people this is not just a click on any email or click on the link and vote for you yet so there's a -- -- you know there was also about the video and image and a marketing.
How much time and effort you put into your campaign let's say.
The more votes -- got so and -- -- -- had a big a large following.
It made it easier to.
Right but getting it up and running that's always difficult so what are some of the top lessons that.
A small business challenge.
Taught -- all businesses out there aside from social media using it to their advantage what else.
I think you know I talked a few of these companies especially in in the in the final process.
And I I think it if it was a surprise to almost all of them Howell.
How much they don't communicate with their customers vendors friends.
About their business -- so you know I think that's you know you think on on ordinary.
Business and I do you really.
Sent his letter out to your vendors -- your friends into your customers or do you just only communicate with your customers.
-- -- the active customers -- this had you know this was.
Agree you know truly what kind grassroots effort almost like a politician's campaign -- had to go to ask everybody knew coming vote for you.
There wasn't just posting on FaceBook today by the way vote for me on this challenge and I was like it was hard work I mean you have to get 4500 votes took.
A lot of work for -- company so -- winners.
There was three companies that made the the the final Charlie brown and friends which is great -- -- -- New York.
Begin in the from details on their website.
Was mystery tackle box.
And third place was or a re organics which is a cosmetics companies and organic cosmetics company.
OK and I guess those are all you know with fishing company in there.
'cause -- an organic cosmetics company I guess one of the lessons would be that there's no shortage.
Of innovative new ideas and products out there right and despite this sluggish economy that many small businesses are indeed growing right.
Are absolutely I mean you know I don't know the numbers are this year -- you know the numbers offices open in the US but.
You know if we -- -- the pick up.
You know -- this year site which we're funding portal for companies and you know based on the jobs act.
We've received thousands of applications for funding and you see a growth and every month it's a little -- -- -- not necessarily our awareness.
The funding source or necessarily just the economy's getting better in a hole.
But it's surprising that a lot of the companies that not only apply for funding -- into the contents were non tech savvy companies are.
Warrant an -- company or or something that would be you know -- do you think of startups you think.
You know technology automatically you know -- aerial advertising companies you had.
-- -- we had a dog walking company in New York he had.
Really interesting very very widely demographic kind of businesses.
But -- to funding and it's one of the things that we learned was that the biggest concern.
For many small businesses is lacking capital to keep up with their operations.
Are banks helping out here.
I think banks are not lending the way they used to -- -- -- and -- fits specifically to businesses.
I remember you know.
Fifteen or seventeen years ago -- our company Miami and walked in the Barnett bank wouldn't exist anymore than bought a couple times.
But it was our first start up close probably twenty some years old had two partners walked and and walked out with 75000 dollars in -- what alone would not you know no collateral based loans and basically.
Non collateralized loans and -- today that's and that's that's impossible let's say the least I mean.
Even SBA programs we have now I think we're an all time low.
I believe that this and there -- there or 8% approval rating SBA loans and a majority loans -- get approved or.
Owner occupied real estate property loans.
So you know first for -- about working capital loans expansion capital loans or even startup loans.
Those are you.
Existence to say the -- -- say the least.
Do you worry now more on them alternate sources of funding in the next segment -- -- need to interrupt you -- about.
None of them though that was that I mean you know we're we're we're coming in order to the most creative ways that -- America.
How well you -- we will definitely get warranted -- but I have to bring in the chat right now -- -- asks -- companies developing and employing apps.
More and more today to communicating -- with their customers so.
Our our many of these small businesses that you work with developing -- grown ups.
Think so I think you know people developing apps as a commercial for -- -- product to sell.
I think very few companies that I'm aware of that that actually are.
Creating an app for something to communicate -- well I mean there's so many tools out there.
I mean the size -- traditional social media.
Company you know your FaceBook Twitter etc.
There you know -- -- -- interest now you've got -- you know I think there's somebody told people can use to communicate.
I don't think.
Businesses are creating.
Apps to communicate their customers a -- -- via.
So with this prize money right these companies -- three winners have.
More money to play with what are they doing with it they upgrading there a -- -- they hire ring the opening new locations where they doing.
-- each one of the company that -- had to provide you know basically three pieces of information besides their company information contact information it was like.
You know why we enter this contest felt a little bit about their company.
What they would use with the prize money and how they're create how they would create more jobs in what we know what they're playing.
Other place in in the marketplace as far as job creation.
And you know there it -- I mean all -- comes at a different story.
But the majority of them were expansion capital there weren't really started -- none -- these particular is that one of the worst start -- percent.
They're all looking for expansion capital.
Because there would be this focus on this was job creation.
The problem is anything you're talking about 25000 dollars of cash and prizes.
You don't create you can't really create a lot of jobs of that immediately write a check for 25000 dollars a company -- -- -- barely pays for one person for -- -- So did the idea of the contest was not too so much you know give them a check that they can pay for -- person.
It would be how can we make a business.
Become a better business that would create a number of jobs.
So we broke up the contest -- into money and then we also bought and and partner with advertising companies that would help them advertising grow their business so.
We did a partnership with -- ads in Miami which is a global partner which they do in a display ads and and an AdWords ads and actually optimizes -- to the company gets a lot of traction sales out of it.
Then that we -- that partnership with a company called lonely brands in Chicago which is a social media blogging grassroots effort to -- the market it all the marketing for us and be.
-- company would love those guys.
Then we had HMM media -- -- California which is a video production company debut.
XM radio ads and and and and also -- different including Fox News.
I think we had our ad running on -- But so.
We were you one of the give the tools not just a prize money.
Because we don't think you know you can just write somebody check gonna put that on the balance sheet and great administrations helping for the company is hopeful that company.
But it's not you know -- -- you might not be isn't packed full.
As a professionally.
Done marketing campaign that's funded.
And as well as some cash so the idea this is really how do we make -- business better and create more jobs not just you know here's prize money great you know he did a great job.
So there was there was it was pretty it was it was a fun right.
Thank you so much for bringing small businesses the opportunity and sharing your story -- Lopez.
Early shares dot com.
But since sun screen being so much for coming on and being big mini 3235.
-- Thank you learn.
Big -- 8323 chatting and right now saying if I was a bank -- -- only lend money to folks I think we'll Pena back.
And it sounds like a good business models made no sense it's common sense big -- -- you talk about that in our next segment.
After this break we'll be back.
Welcome back -- question today what would you do with half a billion dollars weigh in on our website yesterday donates to charity buying a car travel share with.
Fans and friends or something -- let us know looks like posting your paying off your debt will go ahead for good consumers and investors and financially savvy Americans I guess today with our new found possible winnings OK I don't want segment -- Lopez is telling -- fell one of their gripes that small businesses have.
-- they can get money from banks in fact according to a recent survey.
88 percent to small businesses said that the banks are not really supportive of them and there.
Plans to expand so we're talking this segment about some alternate financing and we have on set with us now so Nina.
As well as Russell -- And you're both with and -- -- -- financial.
-- Harvard -- financially OK so that basically is an alternative alternative lending company that has to work together they founded the company three years ago and here we are now.
The fax plus -- -- so it gives us a little bit more about what you.
Well it's me and I have the active career together on Wall Street analysts.
A little longer than -- -- -- -- on Wall Street on some of the more esoteric.
The financial stuff that they -- used to.
And -- -- CDS this up that's I try to claim they've always have made it ruined economy but in any event.
And I'm seeing exactly.
And -- 2000 -- to me and I found ourselves and in.
You know figuring out something else to do.
And given only turmoil on Wall Street we saw an opportunity to.
And in need for small businesses get credit obviously it's no -- terrific news.
That small business environment tough time getting loans and so we started -- code to do a couple things.
Working capital small businesses so people can afford to -- Those those businesses that.
That's tonight customer demand can still -- -- could afford -- actually fulfill that demand.
And then we sent -- -- -- into.
Doing some direct investing in companies.
OK so how much money are we talking about so far.
-- typically we're working with customers hip hop between one and fifty million in sales of as soon established.
Company established unhappy a lot of companies out of that are coming to -- either -- turn around the city of have had some troubles during the financial crisis and are looking to turn -- -- themselves around now he just little bit more working capital to turn everything back.
Over boring really -- companies that are high growth meant so they're really just starting out and the growth that they're expecting in the next.
-- six months one year is just too too too much to handle without -- but it's almost like you become their psychologist right.
Men -- easier work do we think that aids can do what they think they can do and you know if -- Grant you can get a lot.
In many cases where we're talking to and that's -- -- the fascinating thing about this from the transformation of the economy that's going on.
You read the headlines they're kind of Cologne when an individual pockets of the people that we know if people are seeing opportunity not safe and that.
Yeah they're saying my customers.
Want my product we're actually able to talk to their customers and saying yeah I want to help finance delivery on this problem.
So -- the banks not giving them money.
Yeah I think thanks -- now aren't necessarily -- -- look at businesses that are still in this turnaround mode and they're not really -- Able -- -- -- working capital needs properly and there's not equipped to -- provide the -- at this time so I think what's -- really see a turnaround until the start to get more active but not.
Not tell them and we get your money from.
When he comes from or if it's funny -- have a career on Wall Street you realize that one day you're likely Yucatan peninsula that's that's please leave.
We were able to save some money over time and we also have.
High net worth investors -- -- prospect that.
You know are on -- four from then it's an -- that's probably less correlated to the rest of the things in their portfolio and investment.
So when you say yes to these businesses went wedding -- stadium how relieved are today.
How could I get velocity -- of -- often from our businesses in particular when -- how I've you know.
A scenario where they need to know the money for payroll and they're -- telling -- -- sent some relief and it's the greatest relief.
I think -- -- like.
Clapping yeah fanning out really any Asian tennis -- watching it that folks that we actually it's really tremendous.
We finance all kinds of businesses ranging from you know manufacturers.
To medical facilities to distributors.
We have one that's out in California it's actually -- it's alcohol recovery clinic and refinance because their waiting for a while to get paid by the insurance for that happens and there's a it's called in Malibu beach recovery.
And this woman Joan who runs that she constantly sending Selena flower -- every six months it's like a couple hours from -- yeah.
That's how it is nice.
Yes -- he had a trend in net in that kind of businesses that.
Need -- financing alternatives or you really disparate.
-- really ask.
Across the board and a small business his I -- -- there is turnaround or hyper growth so.
We haven't really seen it.
Specific to any industry and what is it on rebuilding after insanity.
He's seen and need for businesses.
From money because in the storm now moving.
We have it you know I guess the closest thing we have to it.
We have -- a client that's called titan energy needs and the they are in the business of supplying.
Very large backup generators to.
Both residential and commercial facilities and so.
They found a spike in demand and we're expecting Terrell.
Being consistent and to grow their portfolio of business because of a -- -- in any bad decisions.
Of course how many.
-- -- Fortunately.
-- -- spent a lot of time underwriting our our -- and trying to get to know the people and it's always.
Part of the trick of what we're trying to do with people is to get them to want to actually pay us back by right -- have a vicious and mean how many companies have not Katie back.
Almost none really what are the terms -- the repercussions if they -- Typically you know we're like any land there we have personal guarantees -- -- we have leans on their assets -- -- But it in general were working together to work through it if and that's one of the things that were able to do that is even bigger companies like us no more bureaucratic so make it possible volatile thing I've got an issue and yet it sounds kind of work.
-- Russell Hackman Sanmina crash -- thank you so much you guys are with -- clothes -- up on the screen right now and now we're gonna go to a break we'll be right back.
Welcome back on Lawrence amenities so here in New York City you've got fashion we've got food we've got -- believe it or not not on Silicon Valley.
I said joining me now on -- we have -- -- the founder of the zip Mendes.
And it wouldn't and the topic is how -- New York City is.
Helping this tech boom but also.
Does it -- -- this kind of same day shipping model which wal -- now on Amazon so -- it is is booming field so picking up where every flight schedule.
And it's a great time here be talking about delivery and that's the business.
Whenever I'm thinking -- -- holiday shopping and what are they gonna get those items that they ordered.
I know a lot of guys who are gonna say on December 24 inning getting with -- -- -- that's been around -- -- -- in my -- will be instead -- you know ended -- That's the business we're doing one of those guys.
I don't and I definitely see the value.
But -- it's I mean -- we did we did recently moved the company here to New York we are in the business of same day delivery so basically we're helping businesses and consumers get items delivered within.
Hours of purchasing things online.
Well it's not easy it's been so moving to New York is really helped us build out our system to really face the challenges we're gonna have yet we scale.
And Michigan from Michigan that's right so I'm here earlier this summer and -- and got to work right away we had piloted the service in the midwest and kind of -- the model and you know kind of figured out what our challenges will be we thought until we came to New York mom which just saying it's such a great place for start -- I mean I would I would.
Recommend any start up to consider New York home because.
You know there's a lot of challenges that sort of face one of them is that they have a sense of false positive sometimes -- -- get something going to get some initial traction.
And they think they've got it figured out.
Come to new York and that you'll start to see where you may have made some wrong assumptions in your business model and so for us.
You know the challenge of moving things from point a to point B may seem simple in midwest environment suburban type of area.
In New York City when you're dealing with the security issues of buildings have you're dealing with just the infrastructure -- have to contend with all new challenges a rose in any.
Had to -- business -- local that's right let's pull up a full screen now where you can -- the digital -- -- index of hearing your city can see we're actually down quite a bit from 97 back in 2007 -- At 118 in 2010 and now.
Just fourteen this year and that is discouraging how there.
Digital media companies here in the Big Apple these are -- look at that 470.
Is the latest numbers and that's pretty encouraging so competition is fierce -- and imaginative you can make an -- can make.
Today in New York has done a great job of reaching outside of the area you know again we coming from Michigan you know when we were introduced to the area by the New York economic development corporation and then there investor and our company now we're proud to say.
And we've we also have investors from -- our capital here in town as well.
And they really help that transition go a lot smoother than maybe it would have -- I think would any start -- would find coming into New York is it's a very hospitable environment and of course you're gonna have challenges doing business in New York it's a big place but there's a ton of support here for startups and so we're really happy to be here Tony dilemma for.
Well we work for local retail primarily that's our focus but really the service is available to any small business large business any individuals who need something delivered very quickly what are the rates.
Well it like -- -- it did it differs try based on distance and size but in Manhattan you're talking somewhere between ten and twenty dollars for something within ourselves so it's pretty have a good and then what -- find -- just like with Wal-Mart and others.
The retailers often will subsidize delivery costs if you're ordering a certain you know number dollar amount on line.
And so what we're really focusing on is trying to drive.
And affordable model for everybody affordable for the the customers but also.
To allow the service providers to have you know of a reasonable income as well they're working really hard as we know the messengers here in New York City do.
Right right and a lot of them are from different companies right that's right sound so we're building -- -- platform were were working side by side with companies were working side by side with independents to really -- -- provide.
Greater efficiency to the model that already existed here how is -- Cyber Monday for -- It was busy you know that we can always is it busier I think is all retailers they know that that's that time -- -- you really took insurgency which are made of and so coming into the city you know we were little concerned about what we can do their but I think you know as we search the scale we're gonna continue to.
You know evaluate the man trying anticipated ahead of time and then you know as a -- ball freer rein them this holiday -- the last couple months of the year big time for everybody -- delivery you know all the way down -- from our little sort of always up to FedEx and UPS were all hands on that.
Black and management you don't like we have five fault folks are locally full time we've got a couple in Michigan as well but a co founded the company and then we work with a lot of independent careers and messenger companies in the area so we -- -- consider them all part of the family.
Right across some thank you time my story eight.
Local story for us here and it's a new kids same day delivery we'll see with the big guys -- -- really Amazon's of this world do.
I guess a question for you guys is how much would you pay to get an item on the same day I guess in an hour and right it's -- what would you -- lesson to 29.
Statutory dollars -- -- subsidized you know your retailers are going to be helpful in that it could be as low as five dollars.
Yeah you know I think I think it's gonna mark -- people -- -- -- -- that -- we -- -- that the good to see it thanks for coming on Gary poll.
And the website is on the screen.
And thank you so -- expert for joining us today you will be back here tomorrow have a beautiful -- everybody.
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