Annual Survey of Brookhaven Businesses 2012

Brookhaven Business Advisory Council

Contributors
Editors
Bruce Newman
BBAC President

Table of Contents
DEMOGRAPHICS OPERATIONS STRATEGIC PLANNING 17 4 10

Managing Partner Cerini & Associates, LLP

Ken Cerini, CPA, CFP, DABFA

Lisa MG Mulligan

Brookhaven Director of Economic Development & CEO of the Industrial Development Agency

Michelle Cooper Dina Isola

BBAC Survey Committee

Associate Editor Data Collection Writer

Theresa Weston
Marketing Coordinator Cerini & Associates, LLP Pandora Marketing Consultants

Page Layout & Design

Carrie-Anne Gonzalez
Cerini & Associates, LLP Commercial Designer Pandora Marketing Consultants

A Word from bbac

Dear Brookhaven Business Owner, We are pleased to present the Second Annual Brookhaven Business Advisory Council (BBAC) Survey of Brookhaven Businesses. The Second Annual Survey, which received 153 responses, is designed to better understand and gauge the economic status of businesses in the Town of Brookhaven. The survey was initiated in 2010 as part of Town Supervisor Mark Leskos broader initiative to improve the climate for businesses in Brookhaven. Survey results were collected from a variety of business owners during the months of October, November, and December 2011. While survey results show that many businesses are very concerned with the weak economy, healthcare costs, and rising taxes, there were some favorable indicators for Brookhaven, including an overwhelming majority of respondents who view Brookhaven as a positive place to do business. We extend our sincerest thanks to Brookhaven Supervisor Mark Lesko, for supporting this publication and for his steadfast commitment to making Brookhaven the place to do business. We would also like to thank Lisa Mulligan, Director of Brookhaven Economic Development, and her staff for assisting in the production of this survey, the staff of Cerini & Associates, LLP who worked to aggregate the data, and Pandora Marketing Consultants for designing and producing this publication. We encourage you to take the time to review the survey. It puts into perspective the challenging environment that businesses face on Long Island while illustrating the strong optimism present within our business community. Please feel free to email us at bbac@brookhaven.org or call 631-451-6563 if you have questions or comments.

The 2012 Brookhaven Business Advisory Council Annual Survey of Brookhaven Businesses is brought to you by:

Bruce Newman BBAC President

Demographics

Type of Organization
We obtained responses from a large cross section of businesses throughout Brookhaven. The largest number of responses (54%) came from service providers, which included accountants, attorneys, advisors, etc. This was followed by other (28%) and retail (7%). Other principally represented nonprofit organizations and healthcare providers.

Number of Employees (Full-Time Equivalents)

Consistent with last years results, the level of staff employed by Brookhaven businesses is relative to the overall size of Town businesses. The largest segment of businesses employed between 1 and 10 employees (59% of respondents), with the second largest segment (22%) having no employees. Zero employee businesses were generally represented by small retail stores and nonprofit organizations with unpaid volunteers. Conversely, 8% of respondents had over 100 employees.

Revenue for 2011 as Compared to 2010

Forty percent of businesses responded that they anticipated an increase in revenue for 2011 as compared to 2010, which is 9% lower than last years results. There was a slight increase in respondents anticipating no change in revenue (35%) versus last year (28%), with 25% anticipating a decrease, which is consistent with last years 23%.

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Size of Business by Revenue

Revenue from Brookhaven businesses was fairly consistent with 2010 levels. This years results show that 41% of all respondents generated under $100,000 in gross revenue as compared to 38% for last year. The next largest segment was organizations generating between $100,001 and $499,999 (23%) in revenue, which is in line with last years results.

Size of Projected Revenue Increase for 2011 as Compared to 2010

Of the respondents projecting an increase in revenue, 39% expect an increase of up to 5%, with another 26% projecting increases between 6% and 10%. Interestingly, the number of businesses anticipating a 16-25% increase in revenue for 2011 nearly doubled to 17% over the previous year.
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Size of Projected Revenue Decrease for 2011 as Compared to 2010

The majority of respondents that anticipate a decline in revenue for 2011 expect decreases of between 6% and 10% (32% of respondents), which was an improvement over last years results, where the majority anticipated decreases between 11% and 15%. This is followed by 23% of respondents anticipating a decrease of over 25%, which is significantly higher than last years results, where only 7% anticipated such a decrease.

Change in Number of Customers Served in 2011 from 2010

Results for number of customers served remained consistent with last year, with 38% of businesses responding that they served the same number of customers (44% during 2010).

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Increase in Number of Customers

Of the respondents seeing an increase in customers served, most (43%) saw an increase by 1% to 5%, with 26% of respondents seeing an increase between 6% and 10%. On a combined basis, these two categories (69% of respondents) expected an increase in customers of up to 10% vs. the previous year when 61% of respondents expected a similar increase.

Decrease in Number of Customers

Of the respondents reporting a decrease in customers served, 23% saw a decrease by over 25%. The majority of respondents (40%) saw a decrease between 1% and 10% of customers, which is an improvement over the previous year when 46% of respondents anticipated a similar decline in their customer base.
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Does the Owner or President Reside in Brookhaven?

With many Brookhaven businesses employing a small number of employees, it is not surprising that 82% of business owners reside in the Town. This represents a modest increase from last years results (74%).

Location of Customers

As Long Island is comprised of a significant number of smaller businesses, it seems reasonable that approximately 30% of these organizations conduct business only on Long Island. Another 18% of respondents reported that they conducted business solely in Suffolk County, and 18% also indicated that they conducted business exclusively in Brookhaven. Brookhaven business owners also continue to pursue business activities beyond their immediate region, with 17% providing services nationally and 10% to international markets.

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Operations
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Anticipated Pay Raises

The majority of businesses in Brookhaven anticipate not giving their staff a raise in 2012 (66% of respondents), which is 12% higher than last years results. For those businesses providing raises, the most anticipated raises for 2012 are expected to be between 3% and 4% (15% of respondents), followed by projected raises of between 1% and 2%. None of the respondents anticipated giving a raise over 10%. One bright spot came from a reduction in the number of businesses that anticipated a decrease in employee pay. Only one percent of respondents projected a decrease in pay.

Projected Layoffs
Although many organizations do not anticipate pay increases or new hires over the next 6-12 months, the vast majority (89%) of respondents do not project staff layoffs. This is similar to last years survey, which showed that 92% of respondents project no layoffs.

Overall Plan to Hire

For many business owners, the turbulent economy continues to impact their confidence in hiring additional staff. Sixty-seven percent of respondents do not anticipate hiring new staff in 2012, which represents an increase of 9% over last years results.

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Levels of Anticipated Layoffs

Of the 11% of businesses that responded that anticipate layoffs, results show that 54% of the respondents expect layoffs of up to 5%, while 31% of respondents anticipate layoffs of over 25%. Responses indicate a positive shift toward lower levels of layoffs over 2010 when 37% of respondents anticipated layoffs of over 25%.

Levels of Anticipated Hiring Levels

Of those organizations that do anticipate hiring, 64% of respondents plan to increase their staff by up to 5%, which is a significant improvement from 2010, when only 48% of respondents anticipated similar hiring levels.
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Full-Time Jobs Added in 2009

Full-Time Jobs Added in 2010

Results were fairly consistent for jobs added in 2009 and 2010, with a mean of 75% of respondents not hiring any full time staff in 2009 and 2010.

Full-Time Jobs Anticipated for Year-End 2011

Projected full time job hirings by 79% of businesses in 2011 is fairly consistent with the prior two years mean level of 75%.

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Part-Time Jobs Added in 2009

Part-Time Jobs Added in 2010

The number of part-time jobs added in 2009 and 2010 were fairly consistent year to year, with an average of 73% adding no part-time staff and a mean of 22.5% adding 1 to 5 part time staff. In both 2009 and 2010, no respondents indicated adding between 11 and 20 part time staff. In both years, one percent of respondents indicated adding over 20 part-time employees.

Anticipated Part-Time Jobs for Year-End 2011

For 2011, estimates remained fairly consistent with prior years, with 78% of respondents indicating they did not anticipate adding any additional part-time hires to their staff and 18% adding between 1 and 5 employees.

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Do You Plan to Keep your Business in the Town of Brookhaven?

In spite of the tough economy, 94% of respondents were optimistic about keeping their businesses in Brookhaven. This is 13% higher than last years results.

Use of Social Media for Marketing Strategies

Businesses continue to place an emphasis on marketing through the Internet, including use of their website, outside vendors, and social media. Most of Brookhaven businesses (83%) responding to the survey are utilizing some form of social media. Most businesses are using Facebook (25%) and LinkedIn (20%) to communicate with their market, which is consistent with preferences reported by businesses in the prior year. Other primarily consisted of e-marketing campaigns through platforms such as Constant Contact, Google Ads, and utilizing Search Engine Optimization firms.
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Business Conducted on the Internet

With a majority of survey respondents providing their products and services primarily to the Long Island community, it is not surprising that most business is still conducted face-to-face. The majority of respondents (62%) are conducting less than 10% of their business online, which is consistent with the responses from 2010.

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STRATEGIC PLANNING
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Top Concern for Business Owners

While taxes and government regulation are often cited as the main impediment to local business, surprisingly the majority of respondents were most concerned with the weak economy (43%) and healthcare costs (24%) negatively impacting their business. Sales were deemed to be the next major concern by 15% of respondents, followed by taxes (10%), permits and ordinances (6%), and labor costs (2%).

Is Brookhaven a Positive Location for Business?

An overwhelming majority of respondents (81%) believe that Brookhaven is a positive location for business. Only 19% of respondents cited varying difficulties in rising taxes, high cost of living, the unemployment rate, and overall economic climate. These findings are consistent with the results from 2010, which found that over 80% of businesses saw Brookhaven as a positive place to operate.

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Confidence Rating Regarding the National Economy

Respondents were asked on a scale of 1 to 10, 1 being negative and 10 being positive, what their satisfaction rating was regarding the National Economy. With the majority (76%) giving a neutral to negative vote in overall confidence, only 1% felt positive about the national economy, whereas 12% gave a negative confidence rating of 1. The results indicate a four-fold increase in the number of respondents from 2010 that gave the national economy a negative rating. The average confidence rating for the national economy was 4.08, the lowest economic ranking out of the three geographic areas covered in the survey. This is down from a 4.78 confidence level reflected in last years results.

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Confidence Rating Regarding the Long Island Economy

Sixty-nine percent of the Brookhaven business respondents felt neutral to negative in their confidence of the Long Island economy, with 24% ranking the economy at a five. Zero respondents felt confident in the economy being a completely positive environment, while 8% marked their confidence rating at 1. The average confidence rating of the respondents was 4.59, which is below last years level of 5.17.

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Confidence Rating Regarding the Town of Brookhaven Economy

The majority of businesses (61%) felt neutral to positive about Brookhaven being a positive place for doing business. The remaining respondents (39%) rated Brookhaven between 1 and 4. Again, results were directly related to concerns regarding the unemployment rate, cost of living, and tax structure of Long Island. The average satisfaction rating for respondents doing business in Brookhaven was 4.83, which is down from last years 5.41 level.

View of Leading Market Indicators

Forty-four percent of businesses anticipate that the leading market indices will remain flat for 2012, while 27% anticipated a decrease.

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Real Estate Prices on Long Island

Reflecting on-going concerns about the local and national economy, most Brookhaven businesses anticipate that real estate prices will remain flat on Long Island. While 27% anticipate decreases, only 16% anticipate an increase.

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The Brookhaven Business Advisory Council Annual Survey of Brookhaven Businesses is made possible through the collaborative efforts of the Town of Brookhaven and business leaders noted below.

Jill Clough-Johnston Small Business Liaison Officer, Brookhaven National Laboratory Jim Guma Director of Operations, D. James Marketing Corp. Joann Dobrowolski Principal, YPI Consultants, LLC John Heimmer Ceo, Partech, LLC John Mallano Lender Relations Specialist U.S. Small Business Administration Joseph N. Campolo, Esq. Managing Partner, Campolo, Middleton & McCormick, LLP Keith Miller Relationship Manager, Business Services Suffolk Federal Credit Union Michael Dickson Michael T. Dickson, CPA, PC Michelle Cooper Contract Specialist, Brookhaven National Laboratory Reeni Brill Publisher, Passport Publications of Long Island Robert Larson Vice President, Suffolk County National Bank Ronni Rosen Senior Business Advisor & Workshop Coordinator, Small Business Development Center - Stony Brook Salvatore Incardona Vice President, J.P. Morgan Chase Shirley Singletary President, Greater Gordon Heights Chamber of Commerce; and Search World, Inc. Susan Petrosino-Reid Director of Small Business Consulting Services, CDC of Long Island Thomas Peterson President, Splash Social Marketing Jocelyn Brinka Annmarie Hallock Vicky Minaudo Jo-Ann Stefan Marge Keddy Town of Brookhaven Economic Development

TOWN OF BROOKHAVEN
Supervisor
Mark Lesko

Steve Fiore-Rosenfeld District 1 Jane Bonner District 2 Kathleen Walsh District 3 Constance Kepert District 4 Timothy P. Mazzei District 5 Daniel Panico District 6

Council Members

Town Clerk

Patricia Eddington

John Rouse

Highway Superintendent

Louis Marcoccia

Receiver of Taxes

TOWN OF BROOKHAVEN BUSINESS ADVISORY COUNCIL

President
Bruce Newman Principal, Pipeline LLC

Secretary

Kevin McCormack CFO, Raw Energy Fran Ericsson Business Banking Relationship Manager, Citibank, N.A

Treasurer

Town Liaison

Lisa MG Mulligan Director of Economic Development & CEO of the Industrial Development Agency

Anthony Attina Anthony Attina, CPA, PC

BBAC Council Members

Brian Cohen President, Strategies of Success Dina Isola President, Real$martica, Inc. Eliatt Di Lieto Partner, Cerini & Associates, LLP Elizabeth Malafi Coordinator, Miller Business Resource Center at The Middle Country Public Library Gloria H. Glowacki Associate Director, Small Business Development Center - Stony Brook Henry Bramwell President, Visionary Graphics

PRODUCTION ASSISTANCE

For questions regarding this survey, please email the Brookhaven Business Advisory Council at bbac@brookhaven.org, visit our website at www.brookhavenbac.org or call 631-451-6563.

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The Brookhaven Business Advisory Council

2012 Annual Survey of Brookhaven Businesses is brought to you by:

Survey and Results Booklet Designed and Produced by Cerini & Associates, LLP in conjunction with Pandora Marketing Consultants.