GEORGE MARAGOS
Nassau County Comptroller
APRIL 4, 2017
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WELCOME
OFFICE OF THE COMPTROLLER
240 Old Country Road
Mineola, New York 11501
Tel: (516) 571-2386
Fax: (516) 571-5900
[email protected]
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January 13th, 2017
Dear Participant;
It is my pleasure to welcome you to the 2016 Nassau County Comptroller’s Entrepreneurial
Challenge. On April 4th, 2017, your school will join with over a dozen other High Schools at
the Nassau County Theodore Roosevelt Legislative & Executive Building to compete by
presenting your business plans.
This folder will contain all the information you will need to participate in the competition.
Presentation equipment, including microphones, a laptop and televisions will be provided during
the day of the event. This year’s competition will focus on online merchandising and Public
Safety Apps for Medical or Homeland Security.
In order to ensure that students’ names appear correctly on their County Citations, we ask that
you submit a complete roster of participants from your school/class as soon as possible to our
Gavin McCormick at [email protected].
We look forward to the opportunity to help facilitate our next generation of business leaders in
Nassau County and best of luck to all participants.
Sincerely,
George Maragos
Nassau County Comptroller
Nassau County Comptroller’s Challenge
April 4, 2017
COMPETITION OVERVIEW
Nassau County is eager to motivate young adults towards business initiatives that can lead to
rewarding and high paying careers. The ideas of young adults are usually the best source for
incubating the companies of the future. We want those new companies to be inspired here and to
stay in Nassau County. The Nassau County Comptroller’s Entrepreneurial Challenge
(“Challenge”) is in its inception as an annual high school business case competition sponsored by
Nassau County Government and local businesses. This year’s CHALLENGE will be held:
APRIL 4th, 2017 at the:
Theodore Roosevelt Legislative & Executive Building
1550 Franklin Avenue
Mineola, NY 11501
Entrance Points Available through the front (Main) and rear entrances.
From 9:00am to 3:00pm
(First Presentation to Start Promptly at 9:30 a.m.)
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ABOUT THE CHALLENGE:
Each participating school will receive a case packet containing information regarding
specific industries and potential markets for each in Nassau County, to be sent out on
January 13th, 2017.
Each participating school will be allowed up to three (3) teams. Each team must be
composed of at least five (5) individuals in roles such as Chief Executive Officer, a VicePresident of Operations, Vice-President of Finance, Vice-President of Marketing and
General Counsel, among others. The specific functions of each team member and the
information that they will be asked to research will be provided in the packet. For teams
with greater than five people, members can be split up into “departments” and complete
the same tasks.
These teams will have to conceptualize a product or service and develop a business plan
to start a hypothetical company in Nassau County. The business plan outline will be
included in the packet.
On April 4th, 2017, all teams will be asked to come to the Nassau County Legislature and
make a presentation of their concepts and business plan to a panel of local officials and
business professionals. During each presentation, the panel will be allowed to ask
questions of the students and grade each specific area of the plan.
At the end of the Challenge, we will announce the top teams from each of the three
groups. These finalists will then face-off in a final round where a champion will be
named. All students who participate in the event will be recognized for their hard work
and participation.
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AGENDA
PRESENTATIONS
Subject to Change
This is a professional competition and all students are encouraged to be dressed in formal attire.
Presentation equipment, including microphones, a laptop and television screens will be provided.
However, we ask that each team provide photocopies of your presentations or summary sheets
for the judges so that they may follow along. Completion of a formal written business plan is
not required.
Teams that are not currently presenting may either watch in the
Legislative Chambers or review their own presentations in the
foyer. Doors to the chamber will be closed during
presentations; however, students may choose to enter/exit the
chamber in-between.
If, due to an increasing number of teams, presenting time becomes limited, presentations shall
proceed through the time allocated for lunch, with all students having access to the food during
this time.
The format of the competition will be as follows:
ROUND 1 – “The Pitch”
Teams will be split into three groups, with each team having six (6) minutes to make
their presentation in front of judges.
After the presentation, judges will have three (3) minutes for a Question & Answer
period.
FINAL ROUND – “The Elevator Speech”
The top team in each group will advance to the final round.
Each team in the finals will have four (4) minutes to briefly summarize their business
plan in front of a full panel of judges.
After the presentation, judges will have two (2) minutes for Q&A.
***
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LUNCH
Lunch for all students will be provided courtesy of the below sponsors. Anyone with specific
food allergies or dietary restrictions is encouraged to contact our Office for more information.
TBA
***
After the presentations, as the results of the scoring are being determined, students will be able to
interact with the judges in an open-forum discussion about their plans. Some of the judges will
speak to participants about their own experiences and specifically what they liked or areas they
felt needed improvement on the whole.
***
AWARDS PRESENTATION
Immediately after the student interaction period, the awards presentation will be conducted. The
first, second and third place teams will each be awarded a plaque in recognition of their success
at the event, sponsored by MINEOLA TROPHY & AWARDS.
Additionally, thanks to sponsors TBA, students in the top three teams will receive a scholarship
award. More information will be provided in March. All students will also receive an Official
Citation from the Nassau County Comptroller in recognition of their participation in the
Challenge and take photos with the Comptroller and other judges.
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THE CASE
INTRODUCING
5 Years of NO Property Tax, NO Sales Tax, & NO Rent for your Business
NOTE: Although some of the facts in the case are based on real information, they may have been
altered for purposes of this competition. Therefore, do not rely on information that is not
discussed. Feel free to make any reasonable assumptions necessary if the fact pattern does not
address a particular issue; however, always make sure that these assumptions are disclosed and
easily understood by the judges.
MAKE SURE TO READ THE CASE AT LEAST TWICE BEFORE GETTING STARTED.
***
THIS YEAR’S COMPETITION WILL FOCUS ON ONLINE
MERCHANDISING AND PUBLIC SAFETY APPS FOR MEDICAL
OR HOMELAND SECURITY.
You and your team members have just finished graduate school in various disciplines (business,
law, engineering, etc.) and returned home to Nassau County this fall. You have all kept in
contact throughout college and have always committed to working together on starting a
business when you graduated; that time has finally come. A great idea surfaces for the “NEXT
BIG THING,” that will generate millions. Although it was not a serious idea at the time, by
graduation, it was clear that everyone’s unique education and work experience would fit
perfectly in this brilliant business venture. When your team hears that the County has just
unveiled its latest program to stimulate economic growth in the County, START-UP NASSAU
COUNTY, everyone realizes that this is the perfect opportunity to launch this new venture. You
immediately call the Nassau County Industrial Development Agency to inquire about the
program; below is the information you receive:
To qualify, a new Nassau County business must:
1. Be located on or near an existing College, University or Medical campus in Nassau
County (Sponsor University),
2. Align with an Academic Program at that local College or University,
3. Create new jobs where 25% or more of your employees are entry-level positions sourced
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from graduates of the Sponsor University,
4. Contribute to the economic development of the local community, and
5. The program is NOT available to Food Service (fast-food franchises, restaurants, etc.) or
Retail businesses.
In return, Nassau County has worked with New York State to offer the following incentives
for your new business:
1. No New York State corporate income tax for 5 years,
2. No New York State or Nassau County Sales tax for 5 years,
3. No New York State Personal Income tax for employees earning less than $200,000 for 5
years,
4. A Payment In Lieu Of Taxes program (PILOT) for the first 4 years:
a. If you will be building and owning a new facility, Nassau County will reduce
your estimated property taxes by 100% in Year 1, 75% in Year 2, 50% in Year 3,
and 25% reduction in Year 4.
b. If you are renting, Nassau County will pay 100% of your rent in Year 1, 75% of
your rent in Year 2, 50% in Year 3 and 25% in Year 4.
Everyone pools their graduation gifts and savings together to cover initial and startup costs; all
together you are able to pull together $250,000 in equity. When you tell your parents and close
friends about the idea, they decide to contribute an additional $250,000 (total) to help you out in
return for a 50% equity stake in the company and control of the Board of Directors. Furthermore,
one of your teammates knows a bank, IOU Savings & Loan, whose firm is willing to extend your
company a $500,000 line of credit (debt) if the County approves your application. If you decide
to use some or all of this credit, the interest rate will be 15% per year. You are not required to
use any or all of this credit line. There are no other equity financing sources available, unless a
government grant exists to subsidize part of your business. If you need or find another source of
funding not previously discussed, please be very specific and disclose all assumptions made
regarding that source.
$1 million is a great start; but you still need to get the vital tax incentives from Nassau County
and New York State for the business to be successful. You receive an appointment for April 6th
at 9 a.m. to meet with County officials, local business leaders and representatives from sponsor
universities in consideration of your proposal. If the panel likes your presentation and vision for
this new business, your application will be approved and incentives will start January 1, 2016.
Nassau County requires that your management team contain at least five (5) individuals in the
major roles below (if a team has more than five members, multiple students may be assigned to
work in the same function or “department.”)
1. Chief Executive Officer
2. Vice-President of Operations
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3. Vice-President of Finance
4. Vice-President of Marketing
5. General Counsel
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“GETTING STARTED” – DESIGNATING ROLES
This year’s competition will focus on online merchandising and
Public Safety Apps for Medical or Homeland Security.
Understanding Your Objectives:
1. Select a the type of APP and Industry in which to start your business (Public Safety,
Homeland Security or Healthcare):
2. Select a Sponsor University that has a program in your area to partner with.
3. Find a Location on campus for your new business; you can either Rent ($30 per square
foot annually) OR build a New Facility (building cost of $47.00 per square foot and
annual property taxes of $15.00 per square foot). You may use websites such as
Zillow.com to find commercial and office space near the University or look at existing
on-campus buildings that could suit your needs.
4. Create a PowerPoint presentation detailing your 10-year business plan, starting in
2016 (remember that Start-Up Nassau incentives end in Year 5). A written plan is not
required; however, teams are encouraged to have a 1-page summary outline for the
judges, as well as any other handouts that you feel may enhance the presentation. Last
year, some of the more creative ideas were creating business cards, floor plans, brochures
and 3-D mock-ups.
5. Split your team into different roles or departments and start your business.
**COMPTROLLER’S FOCUS**
1. If you select an industry from the list below, Comptroller Maragos will allow your team to
start the competition with Two (2) Bonus Points:
Healthcare
Public Safety
Homeland Security
1. Chief Executive Officer (“CEO”) –The CEO will first present the venture opportunity and
feasibility of the new company. The CEO must exude excitement and confidence in the team’s
venture. As the CEO, you are the entrepreneur and visionary of this company. It is your
responsibility to develop, assemble and manage the presentation of your team’s proposal and
verify that all the requirements have been met. This is the most challenging role in the
competition because you must think and critique your business plan like a judge. Additionally,
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you are expected to complete what is known as a “SWOT” analysis. In SWOT, you must analyze
the business plan internally (Strengths & Weaknesses) and externally (Opportunities & Threats).
The key is discovering your new company’s place in the industry: identify who is your target
market, who are your competitors and how to compete. You may want to start by:
Explaining “What is my product/service and why should someone buy it?”
Define strategic vision of your company; what is your competitive advantage and
sustainability of your market?
Introducing your management team and why are they important to the success of your
new company, and
Summarize your business plan.
How will your business contribute to the economic development of the local community?
How many jobs will you create, is the local labor market educated to perform those tasks,
how many other businesses or jobs will be created on Long Island as a result of your
company?
***
2. Vice-President of Operations – The VP of Operations will present the plan for distributing
the product/service and supporting organizational structure. You will be responsible for figuring
out what facilities you will need (i.e. manufacturing plant, offices, etc.) and what are their
respective costs. Work with the VP of Finance to see what your budget allows you to
construct/purchase and what activities you can do in-house and which need to be outsourced.
You may want to start by:
Diagraming your company’s organizational structure,
Determining if you will build new or rent an existing building and why did you select that
particular location?
What will be your fixed and variable costs? Inventory costs?
What type of labor will you use, part-time, full-time and how many of each? What will be
their salaries?
Do you need any other types of facilities and where will they be (factory, retail outlets)?
***
3. Vice-President of Finance – The VP of Finance will present the current financial structure of
the company and a financial plan describing sales and expense projections over a 5 year period.
Expense projections should include both fixed and variable costs of production of sales. Every
VP of Finance is expected to know one simple answer to the question: “What is the bottom
line?” Take your revenues and subtract out your expenses; what is left is your net profit (which is
divided proportionally among your equity owners as dividends). The difficult part, and the one
you need to focus on, is where do the revenues come from and what are your expenses? Work
with the VP of Operations to develop an idea of what your rent and labor costs will be and how
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much supplies will cost. Make sure to develop a budget for the VP of Marketing and VP of
Operations so they know what they have to work with. Consider your initial funding sources and
what these funds will be used for. You may want to start by:
Diagram your Debt and Equity financing sources, what annual dividends will you pay
equity holders and how much interest do you owe per year?
Create a 10-year financial plan of projected revenues and expenses. Include your lease
payments, interest on loans, taxes, salaries etc. (bring a copy for each judge),
Create an annual budget for your VP of Marketing,
Will you be using the credit-line from IOU Savings & Loan? If so, how much and what
expenses will you be paying with those funds?
What are some of the important financial ratios in your financial plan?
***
4. Vice-President of Marketing – The VP of Marketing will describe the target market,
competitive advantage and marketing strategy to gain a desired market share. As the VP of
Marketing, you must describe the target market, competitive advantage and marketing strategy.
The VP of Marketing must also manage active (finding customers) and passive (helping
customers find you) marketing. Active sources may include targeted mailings (such as
catalogues), social media, or networking/referrals. Passive sources, on the other hand, are
methods that help customers looking for particular products find companies that sell that product.
Examples of passive marketing methods include websites, print, online & television advertising,
Google ad words and sponsorships of area sports teams and events. You may want to start by:
What are your main Active and Passive marketing sources? Don’t be fooled, these two
types of marketing are very different and very necessary.
A very important part of being a VP of Marketing is to be conscientious of costs and to
stay within the budget. Every company would like to run a Super Bowl commercial, but
at millions of dollars per 30-second spot, not every company can afford it.
How are you going to monitor the programs that you run and how do you know if they
are working or not?
Consider starting social media accounts for your company (with your teacher’s
permission). Start a Facebook account, Twitter or another platform. Drive up “views,”
“Likes,” and “Follows” to test the popularity of your product and/or idea.
***
–
The
General
Counsel
(“GC”)
is the individual responsible for all the legal
5. General Counsel
affairs of the corporation. Depending on the structure, the GC may also be impacted when
calculating potential tax liability; so make sure that you and the CFO are on the same page. In
addition, consider who is the regulatory body, who has oversight over your business and if they
have any additional requirements that you need to be aware of. Ask yourself if your industry is
one that typically has union representation of the workforce, and if so, what labor unions will
you be expected to work with? Are there any legal pitfalls that the management team needs to be
aware of, such as potential lawsuits or international law considerations if doing business with
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overseas suppliers? You will also need to look at the Operations and Finance departments and
develop solutions to any foreseeable problems you may have in your current strategies.
Diagram the Board of Directors and controlling interests in your company. Will it be an
LLC, Corporation or some other form? Why did you select that particular type?
What are the legal implications of your business? Are there any particular lawsuits that
are typical to this business, and if so, what type of damages would a claimant look to
collect in court? How much would your company be expected to pay for an average
lawsuit and where would that money come from?
Do you need any Local, State or Federal permits or licenses to operate your business? If
so, which ones and how do you acquire them?
Do any government grants exist that may add additional funding to your business? If so,
what are they and what requirements do they hold?
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ADDITIONAL RESOURCES
Business Development Unit
http://www.nassaucountyny.gov/agencies/EconomicDevelopment/
Entrepreneur.com’s Small Business Guide
http://www.entrepreneur.com/smbresourcecenter/
Empire State Development Corporation
http://www.esd.ny.gov/BusinessPrograms.html
Investopedia Business Terms Dictionary
http://www.investopedia.com/dictionary/
Long Island Chambers of Commerce
http://www.chamber.li/
Long Island Index
http://www.longislandindex.org/
Nassau County Industrial Development Agency
www.nassauida.org
Nassau County Comprehensive Annual Financial Report
http://www.nassaucountyny.gov/agencies/Comptroller/Finances/index.html
New York Department of Labor
http://www.labor.ny.gov/home/
New York State Small Business Development Center
http://www.nyssbdc.org/
SCORE.ORG – Free Online Business Planning Tools
http://www.score.org/
United States Small Business Administration
http://www.sba.gov/
United States Census Data
http://www.census.gov/
Vision Long Island Smart Growth Resource Page
http://www.visionlongisland.org/vli_resources.htm
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THE JUDGES & SCORING (Subject to Change)
Hon. GEORGE MARAGOS,
Comptroller
Nassau County
Two-term Nassau County Comptroller, George Maragos is using his years of experience in the
financial sector to watch over the County’s $2.6 billion dollar budget. Mr. Maragos is the
founder of SDS Financial Technologies, a growing organization providing financial information
and online trading services to the financial industry. SDS has been in business in New York for
over 20 years.
Mr. Maragos has over 35 years of senior management positions and accomplishments with
leading organizations in Banking, Consulting and Information Systems. As president of SDS, he
guided the firm’s growth for 20 years. Prior to SDS, Mr. Maragos was a Vice President of
Citicorp and the Director of Telecommunications for Treasury Systems. Prior to Citibank, Mr.
Maragos was a Vice President at the Chase Manhattan Bank where he held various senior
systems management positions. He was responsible for planning and implementing the global
electronic financial systems and the telecommunications networks that supported the global
banking network. Earlier positions held by Mr. Maragos were with Booz Allen and Hamilton as
an Associate and with Bell-Northern Research as manager of Communications Planning.
Mr. Maragos holds Masters in Business Administration (1983) from Pace University in New
York City and a Bachelor of Electrical Engineering Degree (1973) from McGill University in
Montreal.
***
PETER GOLDSMITH,
Chairman
LISTnet.org
Peter Goldsmith worked for CBS Records as Director of A&R Operations under the mentorship
of Clive Davis. He then joined Grumman Data Systems from 1975 – 1995 and was Director of
Operations. In this capacity he traveled around the country supporting the many Grumman won
Information Technology programs at NASA and other government sites. In 1995 he was put in
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charge of Project Long Island, a program designed to grow and keep the High Tech industries on
the Island. It designated five High Tech areas, one of which was computer software and
technology.
In the Fall of 1997, as an outgrowth of that committee, an independent not for profit organization
was formed called the Long Island Software and Technology Network or LISTnet. Peter was
elected Chairman and President of LISTnet and in 16 years it has grown to over 1,000 member
companies, with 80 Corporate Sponsors. Some of LISTnet’s major events are LISA (Long Island
Software Awards), Tech MELT, BEST, T³ (Twenty Top Techies) and the Diamond Awards.
There are also 14 Special Interest Groups (SIG’s) and 4 Councils for CEO’s, CFO’s CIO’s and
ECHO. Peter also started the LI Tech COMETS mentoring program for tech startups in July,
2012.
He has a BBA from CCNY and received a MBA with honors from St. John’s University in 1978.
He is on the Board of the Long Island Angel Network and is also an Adjunct Assistant Professor
at Hofstra University. He is on the Stony Brook Universities’ Computer Science Advisory Board
and their College of Engineering & Applied Sciences Dean’s Council and the Board of
Governors for Touro Law School. He was awarded an honorary Doctorate degree from
Briarcliffe College in May 2001, received the “Have a Heart” Award from the American Heart
Association in 2004, and was the 2006 recipient of the “Friend of Justice” Award from Touro
Law School. Married to Joyce, they have one son, Matthew, who is a criminal attorney in
Manhattan.
***
ANDREW HAZEN,
Serial Entrepreneur
Venture Capitalist
@AndrewHazen
Andrew is a successful serial entrepreneur with 15+ years of experience providing individually
tailored internet marketing solutions including Domain Investing & Domain Name
Development, Search Engine Optimization (SEO), Paid Search (PPC), Email Marketing and
Social Media Marketing. In both 2007 & 2008, Prime Visibility, the company he founded, was
listed on the INC List of Fastest Growing Companies in the US. Thereafter, Prime Visibility was
sold in 2007 to private investors and again in 2011 to a public company. Andrew Hazen is an
angel investor, serial entrepreneur, attorney, author and self-admitted domain name & startup
addict.
In 2012, Andrew founded Angel Dough Ventures, which is a startup accelerator and seed fund: a
place where new business ideas and opportunities are identified internally developed, and new
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products & services are launched. Angel Dough Ventures presently has ten Portfolio companies.
Having a very strong passion for startups, Andrew founded LaunchPAD to help entrepreneurs,
startups and early-stage companies achieve their true potential! Our process is simple: educate
and provide mentors who have successful experience founding, growing and selling their
companies! Andrew is also a Board member at LISTnet.org and the Long Island Angel Network
***
Additional Judges TBD
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Comptroller's Challenge Business Case Competition
Judge’s Scorecard
High School / Team Name: ___________________________________________________
(Rating system: 5 = excellent, 4 = very good, 3 = good, 2 = fair, 1 = poor)
1. Market opportunity
5
4
3
2
1
(There is a clear definition of the product/service offered and the market needed to be served, as well
as a way to take advantage of that market need. The target customer and market size are well
defined and quantified. The market shows high potential.)
2. Competitiveness
5
4
3
2
1
(The competing products/services and their marketers are analyzed well. The company provides
something novel/unique/special that gives it a competitive advantage in its target market. Its plan to
develop and commercialize their product/service is clearly described and is credible.)
3. Managerial Vision
5
4
3
2
1
(The team can effectively develop this company and handle the challenges associated with the
venture. If the management team does not have any required skill or experience, a credible plan has
been provided to access it, e.g., via an advisory board. )
4. Financial Understanding 5
4
3
2
1
(The team has a solid understanding of the financial requirements of the business. The bases for
revenues, expenses, capital expenditure projections (if applicable), as well as external funding
requirements, are clearly described and are credible.)
5. Investment Potential
5
4
3
2
(The venture’s profitability, risk and return on investment profile are attractive. The business
represents a real investment opportunity complete with milestones at the different stages of
product/concept development in which you would consider investing. )
1
6. Presentation
5
4
3
2
1
(The team presented their venture in a logical, persuasive and professional manner. The team’s attire
was professional and their presentation was well rehearsed and coherent.)
__________
RAW SCORE (add 1 thru 6):
FOR MODERATOR USE ONLY
BONUS:
_______________
Business Concept Investment Recommendation Points (30 Total Points Available)
Major Adjustments Needed, Not Fundable
1-10
Minor Adjustments Needed, But Fundable
11-20
Invest Now, Great Job!
21-30
TOTAL (Raw Score + Bonus):
____________
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OFFICIAL PARTNERS
NASSAU COUNTY COMPTROLLER’S OFFICE
240 Old Country Rd., Rm. 210 ● Mineola, New York 11501
Phone: 516.571.2386 Fax: 516.571.5900 ● [email protected]
facebook.com/NCCOMPTROLLER ● twitter.com/NCCOMPTROLLER ● youtube.com/NCCOMPTROLLER
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