Cornell Business

Issue date: 5/10/10 Section: Johnson News

On a brisk spring evening, Steve and Anne Sierigk met Jeffrey Witty in United Way's Livermore Building on Aurora Street. Steve and Anne run Acorn Designs, an eco-friendly paper products company, out of their farm house in Trumansburg. Jeffrey, known to his customers and friends as "Ru," is the owner of Providence Hobbies on Seneca Street. Being seasoned business owners, they immediately began swapping best business practices. The topics ranged from when to incorporate a sole proprietorship to how to use social media like Facebook to reach potential customers.

The occasion that brought them together was the first annual Community Appreciation Event held by Big Red MicroCapital ("BRM"). BRM is an organization run by graduate business students from Cornell University's Johnson Graduate School of Management ("the Johnson School").

Launched in January 2009, BRM provides personalized coaching and micro-lending services to self-employed individuals in and around Tompkins County. To do so, BRM partners with Alternatives Federal Credit Union, Cornell University's Center for Sustainable Global Enterprise, and community organizations such as the United Way. By connecting Johnson students with local small business owners, BRM aims to support inclusive wealth creation and economic development while offering students performance-learning opportunities. Acorn Designs and Providence Hobbies are among nine businesses currently participating in the coaching program. To close out the school-year, BRM hosted the Community Appreciation Event to thank its clients, community partners, and the numerous Johnson students who have contributed to the year's successes.

Originally conceived as a microfinance program to serve Tompkins County, BRM has been adapting to the needs of its clients. Business owners contacting BRM have largely been more interested in the coaching program than in getting a loan. "We've realized that what a lot of small business owners need is someone to talk to and bounce ideas off of - someone else who understands and cares about their business," said BRM's Director of Operations, Shannon Higgins (MBA '10).

To ensure a lasting impact, BRM trains its student coaches to provide coaching services, rather than consulting services. A BRM coach is an advisor who helps the client meet his objectives. Coaches will listen to a client's business challenges, help create action steps toward goals, and identify additional resources as necessary. Coaches will not carry out tasks on behalf of the client or push specific recommendations. Robyn Stokes, Director of Client Support Services, explained, "Recognizing that we students are a transient population, we really want our clients to internalize the process of tackling their business challenges and to feel ownership over both the thought process and the solution."

BRM has received positive feedback from clients. After finishing a Masters in Entomology at Cornell, Steve started Acorn Designs in 1981 as an outlet for his own nature-based artwork. As his business grew, he built up an image library that includes the works of 30 artists. Each notecard, journal, and stationery set is printed on 100% post consumer recycled paper and comes with a story about the image. Acorn Designs sells to national parks, bookstores, and natural foods stores across the country, as well as in local stores like GreenStar and Wegmans.

Steve and his wife, Anne, initially approached BRM to explore the possibility of moving their operations from a renovated corn crib into a space that can double as their storefront. But after working with their coach, Alessandra Zielinski (MBA '11), they have identified a more pressing need to increase traffic to their website and to optimize its usability. "It's really nice to talk to someone else about our business, someone more connected with the business world," Anne said. "We're usually focused on the immediate tasks so it's been valuable to make the space to think and plan." Steve echoed her sentiments, adding that, in Alessandra, they have found "an ally to help see things objectively and with fresh eyes."

Jeffrey modeled Providence Hobbies on the hobby shop his grandfather operated years ago on Providence Street in Philadelphia. He designed everything in his store - from the display cases to the font used for the store name - to evoke nostalgia and to transport customers to a time when families built model airplanes together. While he has added modern touches, such as holding game nights for Dungeons & Dragons Encounters and Warhammer tournaments, he still focuses on providing an old-fashioned hobby shop experience to his customers. Jeffrey knows his customers by name and focuses on teaching his employees to deliver the same product knowledge and service he does.

Jeffrey was initially skeptical about working with BRM. "I worked with Cornell students years ago and it wasn't productive. There was no accountability," he related. But his coaching relationship with Jonathan Schaffer (MBA '10) and Aleda Schaffer (MBA '10) changed his mind. He has found value in sharing and pooling ideas. "Some things they suggested, I have tried before and I know doesn't work. Other things they suggested, I have been afraid to try. But because of the coaching, I've tried it and it works!" He credits his coaches with enabling him to reach the objective he set at the beginning of his sessions - to return to his pre-downturn revenue levels.

Jeffrey is now setting new objectives and looking forward to the fall when he will be working with his new coach, Bukola Ekundayo (MBA '11). "You've put together a program that I am proud to be a part of," he said. "Our community and our small businesses need programs like yours."

BRM's student coaches have also benefited from the program. Mike Merrell ('02, MBA '10) has been working with Eli Carmichael (MBA '11) to coach the owners of the Piggery, a Trumansburg farm that raises heritage pigs and handcrafts charcuterie to sell at the Ithaca Farmers Market. Having attended Cornell as an undergraduate, Mike enjoyed the exposure to a different side of Ithaca. "Ithaca is a great place to go to school. I think it's our responsibility to help maintain and improve it," Mike said. "BRM is one of the best avenues available to Johnson students to use our classroom training to give back to the community in a meaningful and lasting way."

To date, BRM has served 14 clients in the coaching program but has not given out any loans. This is something the organization hopes to change. "We haven't given up on our loan program," says Director of Finance, Cindra Maharaj (MBA '10). "We're trying to better understand our client needs and explore different ways to serve those needs. This may be through re-evaluation of our loan criteria or development of new loan products."

Having launched less than two years ago, BRM still sees itself as a start-up organization. "We are still so young," commented Tyeise Huntley, Director of Community Partnerships. "I feel like we and the previous Directors have accomplished a lot, but there is so much potential."

The clients agree. As Steve said at the end of the Community Appreciation Event that spring evening, "It feels like this can develop into a long-term relationship."

For full disclosure, the writer served as BRM's Director of Human Capital and thoroughly enjoyed her experience with the organization.

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