Together with their colleagues, SCORE volunteers, from left, Joe Horowitz, Dan Frisch, Marvin Strauss, and Norman Wellen pool their expertise to offer free counseling to anyone wanting to start a small business or solve problems with an existing one.
Photo by Elaine Durbach
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July 9, 2009
After all the economic ups and downs they have witnessed, local retirees might be forgiven for preferring to watch from the sidelines as others battle with the current recession. Instead, they are drawing on their wisdom to help others weather the storm.
Volunteers with the local chapter of the Service Corps of Retired Executives, a nationwide organization, offer face-to-face, e-mail, and phone advice for would-be entrepreneurs and small business owners.
SCORE matches retirees with those seeking advice on everything from drawing up effective business and marketing plans and obtaining loans to controlling costs and generally keeping a successful enterprise afloat.
Nationwide, around 10,000 retired businessmen and -women serve with the organization — which functions in partnership with the federal government’s Small Business Administration.
Chapter 15, chaired by Roger T. Ellert of Cedar Grove, is the largest of the nine in New Jersey. It covers Essex, Union, and Hudson counties. The counselors see clients at SCORE’s main location, at the Small Business Administration office at 2 Gateway Center, Newark. They also meet with people and hold workshops at satellite offices and at venues like libraries, universities, chambers of commerce, Rotary clubs, and Veterans Administration hospitals.
There is no official tally, but for some reason, Chapter 15 has a preponderance of Jews — some 27 out of its 48 counselors, according to one of its members. That person, who asked not to be named, suggested that was simply because so many people in the community have a background in business or accounting and a cultural or religious inclination to help others. They’ve done well, he said, and want to express appreciation for their own good fortune.
Joe Horowitz, an attorney from Springfield and a member of the local Reform congregation Temple Sha’arey Shalom, has worked with SCORE since his retirement 11 years ago. “I needed to keep active and give back to the community,” he said.
One of his proudest achievements was helping a client set up a successful United Parcel Service store.
When clients ask him about starting a new business, he says he tells them to be very careful about the type of business they choose, and to take advantage of more liberal SBA-guaranteed loans, especially the ARC program that provides loans of up to $35,000. “The drawback with this program is the huge amount of paperwork involved, which results in banks shying away from it,” he said. “The paperwork needs to be simplified.”
Marvin Solomon of Livingston, a longtime member of Temple Emanu-El of West Essex, is a former vice president of marketing. He joined SCORE 10 years ago. “I was born and raised in Newark, so this is giveback,” he said.
Asked for a favorite counseling success, he cited a person who had worked in computers and parlayed his skills and experience into establishing a cleaning service. Starting such a service would be harder today. “It’s become tough to get money and really good credit is required,” Solomon said.
Nevertheless, he said, he urges clients to keep their expenses under control, and to keep promoting their products or services.
Richard Berek of Morristown believes everyone should give something back to the community, based on their experience. He was involved in marketing pharmaceuticals, and for the past four and a half years has been marketing chair for the chapter.
His client success stories include a prospective “green” cleaning service, a photography service for funeral parlors to provide visual remembrances, and an office cleaning service.
He said he is seeing more people aspiring to have their own business as the job market shrinks. But not everyone has what it takes to go it alone. He said he urges clients to “determine if they have the emotional, financial, and skill levels to be able to undertake risk of business ownership.”
For those already in business he tells them “to tighten cash flow, increase productivity, and update marketing strategies.”
He’d like to see access to funds made easier and with less documentation. “Even with more liberal SBA guarantees at present, banks still hold a tight purse,” he said.
Accountant Daniel Frisch lives in Union and is a member of Oheb Shalom Congregation in South Orange.
“At the beginning of the slow-down appointments actually dropped in number,” he said. “Then it turned around as more people were laid off. But most who want to start their own firms are not qualified, either financially or emotionally, and they’re not experienced in the field they are considering.”
He says he is giving the same advice as always: “Get firmly grounded in all aspects before entertaining [the idea of] a particular business.” He emphasizes the need to write business plans.
Talking to those who already have a business, he urges them to maintain their workforce. He said he advises them to cut employees’ hours rather than lay people off.
Marvin Strauss, an accountant who lives in South Orange, joined SCORE 14 years ago. He and Frisch, as cochairs of the Union County section, initiated a number of outreach programs, including seminars at local libraries. That example has been followed in Essex and other counties and by other chapters around the state.
Strauss said he tries to boost the confidence of those who have lost their jobs. He tailors his advice closely to his clients’ needs and plans, but in general he tells them to pay close attention to cash flow, productivity, expenses, and marketing.
To get help starting or saving a business, or to volunteer, call 973-645-3982 or visit the Chapter 15 website, www.scoremetronj.org; the national SCORE website, www.SCORE.org; or the SBA website, www.SBA.gov.
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