New York, New York - if I can make it there, I can make it anywhere!  Actually, it may be easier than you think!

We are blessed with working and living in the largest metropolitan area in the country…yet many of us don’t take advantage of what’s sitting right under our noses.

Let me throw out some of the latest New York statistics available from the Small Business Association:

• In 2002, women-owned firms totaled 505,183, an increase of 28% from 1997 and firms owned jointly by women and men numbered 129,465.
• In 2002, Hispanic-owned firms numbered 163,659, an increase of 57% from 1997; African American-owned firms numbered 129,339, an increase of 50%; Asian-owned firms numbered 145,626, an increase of 19%.
• There were an estimated 62,854 new employer businesses in 2004, 3.8% more than the previous year.
• Income from small businesses in New York (excluding farm proprietors) increased by 5.3%, from $70.9 billion in 2002 to $74.7 billion in 2003.
• The most common industries for small businesses (less than 100 employees) in New York are the following:
  • Retail trade
  • Professional, scientific, & technical services
  • Manufacturing
  • Healthcare and social assistance

So you’re thinking, what do all these statistics mean to me?  They mean that:

• There is a HUGE number of small businesses in New York which keeps growing each year.
• Small businesses in New York can be accessed through niche marketing initiatives based on gender, race, and/or industry.
• Small businesses in New York have purchasing power to pay for benefits.

You may think, “OK, that’s great, Jim, but most of the business out there is already controlled by the bigger brokerage and consulting houses.”

WRONG. In fact, many of the larger brokerage and consulting houses are looking to divest themselves of groups with less than 100 eligible employees. The big firms are focusing on what they feel is a more lucrative 100+ market…leaving many small employers wanting for professional benefit consulting and brokerage services.

Some believe that marketing to small businesses is too difficult.

Granted, it’s not easy, but you should develop your marketing plan from a small, incremental, and attainable perspective. Define a small, manageable, and measurable target market: Hispanic female-owned daycare centers in Staten Island, for example. Learn what makes that target tick; find out exactly what that particular group of business owners have in common with each other, what industry publications they subscribe to, what trade shows/conferences they may participate in. Then, through a logical marketing campaign, promote your services, follow-up on your promotion, evaluate your success, and continually adapt your approach. Only once you have mastered this small target market, should you expand and move onto the next.

Another misconception I’ve heard is, “I don’t have an office located in Manhattan because it’s too expensive. Therefore, I can’t be successful in NY.”

If you, as a business owner, think it’s expensive to be in Manhattan, what do you think other small business owners think? Unless the business is in retail (yes, retail does make up a high percentage of small businesses in NY), many small employers are located in one of the other four boroughs, in Westchester, Rockland, Nassau, or Suffolk Counties where expenses are lower. Locate your business there, too, and you’ll still have a significant volume of groups right next door to call upon.

Lately, there is also a commonly held belief that the market is becoming too technical in nature, and group medical insurance rates are too high to provide small employers any relief. This is where you look to who your business partners are, specifically your general agent, and ask yourself the following questions:

• Has your general agent explained how to use their simple, online rating engine to generate cost quotations in a flash?
• Has your general agent showed you how to cut your employer-client’s premium by 30% or more with a high-deductible health plan, packaged with first-dollar benefits for employees through a simple Health Reimbursement Arrangement (HRA) or Health Savings Account (HSA)?
• Has your general agent sat down with you to sketch out a marketing plan to help increase your business?
• Has your general agent provided you with ONE point of contact who is ultimately accountable to you and your organization, to ensure that you get the correct answers and the appropriate information in a timely fashion?
• Has your general agent provided you with a comprehensive online resource, available 24 hours a day, complete with up-to-date technical, legislative, and product information at your fingertips?
• Has your general agent provided you access to turn-key group client services containing a benefit website, payroll services, and COBRA administration?

Let Savoy Associates help you grow your small group business in New York. Regardless if you are located at 55th & Broadway, on Utopia Parkway, Linden Boulevard, Central Avenue, Victory Boulevard, Route 17, or anywhere in-between, there is an opportunity waiting for you within the small employer community in the Empire State.

Please visit www.savoyassociates.com for more information on how we can help; or do not hesitate to contact me personally at 800-237-4009, x102 or JimL@savoyassociates.com.

We look forward to hearing from you.

Read Jim Lardiere's professional biography.