Worker Stock Plan Is Target Of Feds’ Suit By CARLOS MARTINEZ Staff Reporter The U.S. Department of Labor has accused Sun Valley-based Westfield Precision Products Inc. of improperly appraising the value of its stock in order to profit from the elimination of an employee stock ownership plan. The suit, filed in U.S. District Court in Los Angeles, says company officials Ted and Alan Dearman violated the Employee Retirement Income Security Act by using an improper valuation of the company’s stock in order to redeem it at a fraction of its value. Westfield Precision Products is an aircraft parts manufacturer founded in 1963 by Alan Dearman and the late George A. Smith. Westfield, with 40 employees, had revenues last year of about $5 million, according to Anthony Vienna, an attorney representing the company. The suit, filed April 29 by the Los Angeles regional office of the Labor Department’s Pension and Welfare Benefits Administration, claims the Dearmans failed to serve properly as fiduciaries of the Employee Stock Ownership Plan. The suit seeks to recover the difference between the actual value of the plan and the amount employees received when it was dissolved, including lost interest. It also seeks to bar the Dearmans from serving as fiduciaries or service providers to any plan covered by the Employee Retirement Income Security Act. “ESOP fiduciaries must ensure that transactions in employer stock are based on appropriate values and that they act to protect the interests of participants as shareholders,” said Billy Beaver, regional director of the Labor Department’s Pension and Welfare Benefits Administration. Vienna, speaking for the Dearmans, denied any wrongdoing on his clients’ part. “The charges are based on incomplete information and are totally invalid,” said Vienna. According to the lawsuit, after its co-founder George A. Smith died in 1990, the company divided all 150 shares of its stock between the George A. Smith and Louisa Smith Trust and the Alan Dearman & Bobbie J. Dearman Trust. Later that year, the company established an Employee Stock Ownership Plan and the two trusts each sold half of their shares (a total of 74) to the program for $4.4 million, funded by a loan from the company to the plan. The deal made the employee plan the majority shareholder in the company. In 1991, the Dearmans, through their trust, bought out the Smith Trust for $1.6 million, or $42,564 for each of the 37 shares it owned. The deal gave the Dearmans 50.7 percent of Westfield’s outstanding stock. In November 1997, the company announced it was dissolving the Employee Stock Ownership Plan and the Dearman Trust agreed to purchase the Plan’s 74 shares of Westfield stock from its employees for $2,971 a share, or $219,854. The government contends that Alan Dearman and his brother Ted, who headed the Dearman Trust, undervalued the stock price in order to pay their employees only a fraction of what the stock was really worth. Only 32 of the 39 plan participants accepted the Dearmans’ price. Seven others filed suit against the Trust in May 1998, claiming the stock value was closer to the $42,564 paid to the Smith Trust seven years earlier than the $2,971 offered to employees. The Dearmans settled out of court for $1.25 million, or about $50,607 per share. The Labor Department’s Beaver said the final settlement with the seven plan participants included a confidentiality agreement that barred them from telling those employees who did not sue the Dearmans about the settlement. Former plan participants reached at the firm would not comment. Vienna said the company did not violate any laws, but admitted the situation is “complicated.” “Appraisers themselves differ about how much a company’s stock is worth,” he said. “It’s difficult to decide the value of a closely held business like this. You have to look at earnings history, the trends in the industry, the capitalization rate, a lot of things.” Vienna said he will file a formal response to the lawsuit by June 27. Kurt Kampe, a labor attorney with the Santa Clarita law firm of Kampe & Kampe, who reviewed the suit, said the government appears to have a good case. “If the allegations and complaints are true, this would appear to be a fairly clear-cut case with significant liability of the company and plan fiduciary,” Kampe said. “You don’t see these cases that often, but the allegations are that they did a lot of self dealing and put a lot of money into their own pockets, so the government can’t ignore that.” The fact the company settled a lawsuit for a much higher stock price than that offered others is perhaps the most damaging evidence against Westfield, Kampe said. But he cautioned that laws involving the Employee Retirement Income Security Act are complicated and violations are sometimes difficult to prove. “The real question becomes whether the company can survive a big payout, if it gets to that,” he said.

This Show Really Must Go On A trend toward frugality in the business world has a company that produces live shows for corporations reevaluating its business strategy. By JACQUELINE FOX Staff Reporter A slow economy, terrorist attacks and a general back-to-basics migration over the last decade have taken corporate culture a long way from the freewheeling days of the 1980s. Twenty or so years ago, large companies might have thrown lavish appreciation schmoozefests for their clients without batting an eye. Equally common were posh events for employees, as much to say thank you as to motivate the troops. But today’s corporate landscape has changed and, whenever there are budgetary concerns, the perks are typically the first to go. As a result, Lynn and Buzz Noe, owners of Capers Productions in Canoga Park, have seen their bottom line dwindle over the last few years, to the point where they are now shifting their strategy to accommodate the belt-tightening in business that is not likely to end any time soon. Capers offers live murder mystery dinners and themed events, primarily for corporate clients, at annual meetings, seminars, incentive conferences and awards ceremonies. The company also provides costumed actors for children’s parties, “temps from hell” for office pranksters, comedy camp workshops, silent movie parties and has even supplied the talent for living holiday greeting cards. Script lines are usually written around a client’s core business product or service, and the shows are interactive. The goal usually is not just to entertain, but to inspire and motivate the audience, whether it’s 500 AT & T; employees or 100 members of a local country club. “We find out as much as we can about the client and the product they offer beforehand and we customize the scripts to include aspects of the business,” said Lynn Noe. “And, because the productions are interactive, the employees and the heads of the companies get involved in something that revolves around what they do, which is a wonderful way to motivate.” The Noes not only put on the show, they play a role in each and every production, along with a revolving cast of professional actors. But the market for such high-end affairs, some of which were three-day productions for Capers, have turned into smaller, one-day events at best. The change is evident when the Noes draw up their balance sheet. Annual revenues in the mid-1990s hit the $100,000 mark, not too shabby for a two-person, home-based operation. But in 1998 revenues fell to $75,000 and have slipped every year since, bottoming out at $55,000 in 2001. “We had to take out loans and we were seriously thinking, ‘How are we going to survive?”‘ said Buzz. The company was hit particularly hard by the events of Sept. 11. Just as the corporate holiday party season was beginning, companies that had booked annual holiday events on the West Coast simply cancelled and stuck closer to home. Local clients said they couldn’t afford the expense. “It’s just been devastating,” said Lynn, who also writes most of the scripts for the murder mysteries with titles such as “Peggy Sue Got Buried” and “Bonnie & Clide Get Married.” Capers gets most of its bookings through event planners like Newport Beach-based Fun Is First Productions, owned by Karen Warrick, who’s worked with the Noes for 16 years. Warrick agreed the market for high-end corporate events has hit a brick wall but, she said, the industry has always been vulnerable to economic downturns. “The business is still pretty up and down,” said Warrick. “People are being more conservative about what they are doing and they are also booking last minute. It’s very inconsistent right now, but I think it’s coming along. It’s about being resilient, and Capers is so creative and so professional in what they do, I think they will be able to ride this out.” Capers is in the middle of an overhaul of its marketing strategy, including the design of a new logo and collateral material, but the Noes also want to redouble their efforts to drum up business closer to their Canoga Park home base, perhaps cutting down on the expense that comes with mounting shows on the road. “We’ve done a heavy amount of business in Orange County, up north and in Santa Barbara over the last 10 years or so, and we forgot about our own back yard,” said Lynn. “We’re tired of being gypsies and we want to refocus our corporate image and our connection to the Valley business community.” According to Buzz, “the Valley just never has been considered a destination spot for our clients who come from out of state. But we think that’s changing, and we also see a lot of potential here for doing smaller events. While we don’t particularly prefer doing smaller events, they can provide the bread and butter for us in slow times.” The Noes are also trying to forge more direct relationships with their clients in an effort to take more control over the business. “Our long-term strategy is to beef up our corporate image and start working with more clients directly,” said Lynn. “That way, we get to know exactly what the client’s needs are and how they want things done.” The Noes are preparing an in-depth client survey to assess the marketplace. It’s the first time they have sought feedback to figure out what’s working and what isn’t, and it’s not something they found easy to do. “I think we’re pretty smart about running the business,” said Buzz. “But deep down, we’re actors, so we’ve always found it hard to seek out criticism. But it’s important that we do this now so we can determine what direction we need to be heading in.” SPOTLIGHT: Capers Productions Core Business: Murder mystery dinners and themed productions Revenue in 1998: $75,000 Revenue in 2001: $55,000 Employees in 1998: 2 Employees in 2002: 2 Goal: Concentrate on and expand the local corporate market Driving Force: Corporate clients wanting to throw entertainment-related events for their customers and employees

Stan Lee, With Spider-Man’s Help, Is Back in Business By CARLOS MARTINEZ Staff Reporter Even after losing more than $1 million of his own money on an ill-fated Internet site and missing out on the profits generated by the hit film, “Spiderman,” based on the character he created, Stan Lee is back in business. It was just a little over a year ago that Encino-based Stan Lee Media went belly up amid charges of mismanagement, alleged illegal stock sales and misappropriation of funds by Lee’s partner, Peter F. Paul, who was arrested in Brazil and faces extradition back to the U.S. Lee did receive a six-figure salary from Marvel Enterprises Inc. for his work as executive producer on the film, “Spider-Man,” but does not share in the blockbuster’s royalties. And even as he admits to having trouble pushing movie and television deals for his properties last year due to the Stan Lee Media problems, Lee has seen a resurgence in interest in his characters and stories because of “Spider-Man.” He recently signed deals with Metro-Goldwyn-Mayer Inc., worth about $2 million, and Cheyenne Entertainment Inc. to produce films and television programs. “Spider-Man” had the biggest opening weekend ever for a film with $114 million in ticket sales the weekend of May 3, according to Exhibitor Relations Co. It grossed $285.6 million in its first two and a half weeks of release. Lee created the character in 1962 with artist Steve Ditko, but Spider-Man is the property of Marvel, where Lee was editor and lead writer at the time. “It’s not my character,” he said. “It belongs to Marvel and they get all the money.” Still, Lee said the film’s success has made it easier for him to market other characters that he owns outright. Besides that, his autobiography, “Excelsior! The Amazing Life of Stan Lee,” was released to coincide with that of the film earlier this month. At about the same time most of the deals involving “Spider-Man” were being made in 2000 without him Sony Pictures Entertainment was agreeing to develop his “Hulk” character into a live action movie set for release later this year. “And we’re already in the process of developing three motion pictures for MGM based on my new characters,” said Lee, who would not reveal their identities due to contractual agreements with the studio. Lee is also developing a show for cable’s The National Network titled “Stripperella,” an animated series starring Pamela Anderson, who will do the voice of a crime-fighting stripper. Lee signed the three-movie deal with MGM through his newly created Purveyors of Wonder Entertainment Inc., or POW Entertainment. “These are movies that have been green lit and, if they are successful, they could make the deal worth millions upon millions of dollars, so it’s hard to say how much it’s really worth,” said his attorney, Arthur Lieberman. Lee’s development deals are in stark contrast to the trouble he found himself in last year when Stan Lee Media closed for good amid charges of mismanagement and fraud. Lee himself owned shares in the company that at one time were valued at more than $90 million. “But it’s just paper now,” he quipped. The firm was started in 1999 after Lee left Marvel Comics, then struggling through near-bankruptcy itself. It was dedicated to creating and licensing characters and stories based on Stan Lee-owned properties, along with providing an outlet for new cartoons on its Web site. Stan Lee Media completed a successful initial public offering in February 2000. The company spent millions rounding up talented writers and artists, but reported little in tangible revenue. In 2000, the company posted a $23.9 million loss on $1.3 million in revenue. The company’s stock went from a February 2000 high of $28 a share to 13 cents a share when Nasdaq halted the stock’s trading in November 2000, pending an investigation of alleged stock manipulation by Paul. Stan Lee Media ceased operations the following month. Lee, cleared of any wrongdoing, blames himself for not questioning his partner’s business practices earlier. “I was totally trusting in the past, I left the business decisions to him and it was a mistake,” Lee said. “I’m more on top of things now.” Paul, former Stan Lee Media COO Stephen M. Gordon and Gordon’s brother, former Merrill Lynch & Co. financial consultant Jonathan Gordon, were indicted last October on 13 counts each of defrauding the Internet company, US Bank and Merrill Lynch of $3 million with a check writing scheme. Paul and Gordon also face separate charges in New York involving stock manipulation. All the cases are still pending. Lee said he’s still counting his losses as a result of the fiasco. His reputation and efforts to market his characters suffered too. “You can’t do business when you have something like that going on,” he said, “and it hurt me personally.” Lieberman said, “He got connected by forged signatures to a lot of these things. We were able to show that these were indeed forgeries, but there are still other cases we’re working on.” John Barnes, a marketing and licensing consultant in New York, said he’s not surprised by the revival of Lee’s career. “He’s a known commodity with a lot of success behind him,” he said. “Something like a failed Internet venture wasn’t going to stop him when you have ‘Spider-Man’ mopping up at the box-office.” Likewise, Melissa Read, an agent with the Jim Preminger Talent Agency in Los Angeles, said the “Spider-Man” success is all Lee needs in Hollywood. “If you’re successful with something, they’re going to forget that you ever messed up,” she said.

Secession Foes Say Vote Is Still No Sure Bet The Secession Question By JACQUELINE FOX Staff Reporter Opponents of a Valley breakup say they intend to take full advantage of the 30-day reconsideration period and challenge the recent decision to place a secession initiative on the Nov. 5 ballot. Proponents say they expect challenges but do not consider them a threat, even if they come in the form of lawsuits. The nuts and bolts for the framework of a new Valley city were finally approved in a historic 8-1 vote May 22 and compiled in a 29-page resolution by the Local Agency Formation Commission (LAFCO). That was the difficult part for LAFCO, the nine-member team of city and county officials that, after six years, finally gave Valley secessionists what they’ve spent decades fighting for: the chance to vote on the matter. Now begins a whole new phase of political, social and, some say, emotional wrangling certain to gather more and more steam as a June 26 deadline to challenge LAFCO’s ruling approaches. Proponents of a breakup can rest assured that, barring a petition challenge by 50 percent of the voters in the city, the resolution to carve up Los Angeles, as it stands today, isn’t likely to change, said LAFCO Executive Officer Larry Calemine. “This is it,” said Calemine, the day after an eight-hour marathon hearing that included heated exchanges between LAFCO members and Mayor James Hahn and testimony by some 30 residents, city officials and Valley business owners all before a battery of TV, radio and print media. Should the voters approve the initiative, the new city will get most of L.A.’s assets in the Valley, including police stations, libraries, parks and the Van Nuys Airport. It would also continue to own a stake in the Department of Water and Power and residents would be charged the same rates as those in other parts of Los Angeles. But there is a very strong possibility LAFCO will face legal challenges over its decision. Jeff Daar, co-founder of the anti-secessionist One Los Angeles, said his group would meet to discuss whether to file a suit or mount other sorts of challenges over the next week or two. No matter what, he said, his group would continue to press LAFCO to consider separate elections for the secession issue and council and mayoral seats for a new city. LAFCO has proposed simultaneous elections for city council seats and the secession initiative itself. Daar’s group wants secession to pass or fail first and, if it passes, to hold races for city seats in March. “I can’t say right now one way or another if we will file a suit or not,” said Daar. “I wouldn’t rule it out or in. We are considering all options.” Daar said his group is also examining “other issues” it intends to challenge, adding details would be revealed over the next few weeks. Perhaps the smallest, but loudest, group opposed to a breakup at the May 22 hearing was the five-member contingent of female senior citizens from the San Fernando Gray Panthers, a local advocacy group representing Los Angles residents. According to Panthers Chairwoman Lillian Kohn, her group may consider its own lawsuit. “We are going to have a board meeting next Tuesday and that is certainly an issue we intend to take up,” said Kohn. “To me, (the LAFCO vote) looked like a railroad job. The five of us that were there thought there was so much that was ignored, and we just aren’t sure that we want to sit back and let it continue to be ignored.” One entity that won’t be challenging the decision is the city of Los Angeles itself. The day after the LAFCO vote, Hahn stood beside former Mayor Richard Riordan at a press conference and said he would not be filing a suit because “the people have said they wanted to vote and they should have that opportunity,” according to his press secretary, Julie Wong. The mayor, nevertheless, has vowed to raise a $5 million war chest to defeat the issue. Valley VOTE President Jeff Brain said, while he expects challenges during the reconsideration period, they’d do little to change the resolution or the process from here forward. He also said there was scant reason to believe that a lawsuit brought against LAFCO would be taken seriously by any judge in the county. “Yes, I think there could be a lawsuit, and I think that would be unfortunate,” said Brain. “But we’ve had our lawyers and experts looking into this for a while now and we’ve been told that legal challenges before votes are held are typically dismissed because there’s nothing to sue over. Nothing has happened yet.” Another potential challenge could come from the largest union representing city workers, the Service Employees International Union, Local 347. Union General Manager Julie Butcher has said all along that her members would “fight the good fight” to keep the city whole. Concerns about pensions and benefits are among the top issues for the union, as it is with the unions representing the city’s fire and police personnel. Although LAFCO’s resolution stipulates that the new Valley city would have to honor all accrued sick and vacation day time for employees that might transfer from the employment of one city to another, the panel declined to rule on whether pensions for some city workers would be kept intact. Under the L.A. city charter, police and fire personnel who transfer out of the city cannot take their pensions with them. Instead, LAFCO said the city of Los Angeles has full legal authority to make those pensions portable through voter-approved amendments if it chooses to do so. Although a rough draft of the resolution presented prior to the May 22 hearing stipulated that Valley VOTE would be responsible for all legal costs of a suit against LAFCO, the final resolution shifted that responsibility to the new Valley city. Finally, there is concern by Valley VOTE regarding the start date for the new city. One of Brain’s last-minute requests before LAFCO approved the resolution was to have the new city incorporate Jan. 1, 2003, instead of the proposed date of July 1, 2003. During the hearing, Brain asked that the city merely be allowed to form Jan. 1, and that proponents would agree to hold off on transferring assets until July, but that request was denied. The January-July window, said Brain, “just presented too long of a time frame for the city to create all kinds of mischief for the Valley,” including transferring city equipment and employees, initiating development projects, and even canceling planned improvements for Valley streets and neighborhoods. Brain suggested that the mayor and city officials use the next few months to prepare what would be left of Los Angeles if secession is successful. “The mayor is playing a reckless game here,” said Brain. “The fact that the city is not taking steps to prepare itself for secession is very harmful. They are going full board with developments downtown, including a football stadium, without considering bond issues and what kind of an impact secession may have on the rest of the city.”

Memo to the Media: Welcome to the Secession Circus Politics by Jacqueline Fox Rumor has it that Los Angeles Times media critic David Shaw is preparing a lengthy piece on the media coverage of the drive to break up Los Angeles over the last year. I suppose it was a good thing he decided to attend the May 22 hearing of the Local Agency Formation Commission because, for once, there was something to see. From where I sat, it was difficult to tell which there were more of this time around, press passes or “Let The People Decide” placards. But, after more than a year covering secession for this publication, I couldn’t help but ask him: What are you going to write about? “That’s a good question,” said Shaw. Unless Mayor James Hahn was scheduled to speak at a LAFCO hearing or a time-line decision by the nine-member “Team LAFCO” was on the agenda, public hearings on secession over the last year may as well have been held in Executive Officer Larry Calemine’s living room. You couldn’t give away a seat two rows from the front on most occasions. On others, there were literally people nodding off sometimes me and the one or two other reporters in the room. In short, until it became apparent earlier this year that secession wasn’t going away, there was little TV or radio coverage anywhere. Not to say there haven’t been news stories. The Daily News has followed the issue with every resource it’s had, covering every angle from assets to aqueducts, and even came through with a recent three-part series on the history of the Valley’s push to form its own city. But there has been little beyond the who-what-where-when-and-why’s and here’s what I think is behind it: The editors were too busy weeding out any attempt by their writers to analyze what they were reporting in an effort to make sure they weren’t one step ahead of those writing for the editorial page every single copy of which pro-secessionists ought to copy verbatim and use in their “Yes” campaign. Take the Times and you’ve got the same story pretty much in reverse, with one difference: The opinion pages have recently begun to note that the Valley secession movement is actually gathering steam. A collection of writers, business leaders and social commentators, for example, weighed in a week or two ago with their own takes on what being an Angeleno means. One contributor wrote from the perspective of her past life in the Valley and her new perch overlooking what sounded like the Verdugos, not the dirt roads and chicken farms of Pacoima. Times columnist Steve Lopez got on the bandwagon with his own for-or-against piece last week. Secession is gonna die, Lopez wrote after making a trip to the Valley to get a feel for where folks stood on the issue. Maybe. The Times’ own poll showed recently that a near-majority of voters citywide support secession and that the numbers who oppose the idea have dwindled over the last few years. We know where Lopez stands on the issue. And he may have thought he got an accurate view of what secession really means to Valley residents, but the problem is he got it from a few folks hanging around an upscale, air-conditioned coffeehouse near Ventura Boulevard in the middle of a workday. I suggest Lopez move a little farther north to places like Arleta or Sylmar where graffiti-plagued walls, dirt for sidewalks and the smell of poverty have been part of the neighborhood fabric for so long making the area more livable could be considered a threat. It’s pretty clear all the TV stations are looking for are good sound bites when they decide to do a secession story. Radio correspondents from local stations and even National Public Radio got in on the action during the historic vote May 22 to put the initiative on the ballot. Clearly, they all got what they were looking for. Hahn and LAFCO Commissioner Zev Yaroslavsky, also a county supervisor who represents the Westside and parts of the Valley, traded barbs for several minutes. He was just one of roughly 30 who signed up to speak during the public testimony period. I caught a few TV camera operators yawning. Why? Because, in typical fashion, Hahn didn’t make it to the podium until nearly two hours into the hearing. The poor guys had to sit through hours of dry legalese before they got their golden nugget. Maybe Shaw is headed in a direction that’s not yet on my radar, but it seems to me he’s only got to go back a few months for anything meaty, and there’re only a couple of outlets in town he needs to archive. Still, I was happy to see the news vans parked outside the Hall of Administration as I headed into the LAFCO hearing last week. Even if, once inside, they broke my concentration and blocked my view while clamoring for a shot of senior citizens in floppy hats and anti-secession slogans hand-scrawled in glitter across their T-shirts. That’s all right. I say: Welcome, it’s been lonely out here. Jacqueline Fox is politics reporter with the San Fernando Valley Business Journal. She can be reached at [email protected].

The Franchise Factor at Work By JACQUELINE FOX Staff Reporter Two years ago Jeff Bresin was a special effects crewman, his wife Dana worked at a children’s social club. With a new baby on board, strikes in the film industry pending and a softening economy already taking a toll on their pocketbooks, the couple decided enough was enough. They wanted to run their own show, and they wanted to run it together. So, the Bresins pooled their resources, applied for a small business loan to make those resources stretch a little further, and bought a My Gym Children’s Fitness Center franchise from the Sherman Oaks-based Gym Consulting Inc. GCI is one of about 1,500 firms in the U.S. you can buy a franchise from. It offers non-competitive classes in gymnastics and other skill-enhancing courses to children between the ages of three months and 9 years. The facilities can also be rented for group birthday parties. As a small business, franchises provide a viable option for people who may not have an idea or product of their own to peddle, but still want to be their own boss. In many cases franchises come “pre-packaged,” complete with products, established operational procedures and training programs in place. For new business owners with little experience and limited resources, the system tends to make start-up costs cheaper than setting up a business from scratch and provides the assurance of an institutional history of what works and what doesn’t. But because the concept behind a franchise is that the consumer is looking for consistency, buyers have to also be willing to follow the company’s pre-established formula for success. That formula usually includes strict guidelines on how to hire, train and manage employees, where to set up shop, and, in many cases, even what color of paint you slap on the walls. “Franchising is certainly not meant for everybody,” says Steve Olson, president of Long Beach-based Olson & Associates, which helps emerging franchisors establish programs for their franchisees that foster growth and keep pace with market trends. “Franchises are not right for an entrepreneur,” said Olson. “An entrepreneur wants his own thing and should go that route. But they can be an excellent option for a small business for anyone who can keep to corporate guidelines.” And, said Olson, “for companies considering franchising their businesses, it’s the most successful expansion strategy in the world because you are able to effectively penetrate a market regionally, and you can do it more cheaply because it’s your franchisees who will be funding most of the expansion.” Franchises come in many industry categories, ranging from fast food to home health care to automotive repair, with the children’s and senior markets among the sectors most recently offering the fastest-growing business opportunities. Because work in the film industry was already becoming spotty, the Bresins began saving for a business of their own a few years ago. They also had a windfall from the sale of some stock they’d purchased together. So funding was not a big issue, and neither was choosing the type of business to go into. But weighing the pros and cons of a franchise over their own product or service, however, took a little work. “We were both very active and involved with kids. That was the easy part,” said Dana. “Then we had to run the numbers through on every detail for setting up our own gym, or buying a franchise. In the end, it was cheaper for us to go with My Gym. They got us from point A to point Z, and we were able to save money in the process.” Typical start-up costs for a My Gym franchise run between $120,000 and $150,000. Franchisees must have between $30,000 and $45,000 of their own capital and GCI will typically work to get them approval for SBA funding for the balance. As with any small business, being in charge also means being accountable. Corporate won’t step in and unlock the door for you if you have a sick child at home and not a single employee to cover for you. The hours can be brutal, especially in the first year when the focus is on establishing and building up the customer base. Dana puts in about 40 hours a week at the couple’s Northridge store, Jeff logs closer to 60. “I initially thought we’d run it together,” said Dana. “It hasn’t worked out that way.” And, even with a corporate success formula to use as a roadmap, results vary, sometimes with little or no explanation. The Bresins opened their gym in January 2001 and are just now breaking even on sales with about 250 enrollees well below the franchise firm’s average of about 475, according to Jamie Bertisch, GCI’s chief financial officer. Something else to consider about franchising is the fact that the parent company could be bought out down the line and potentially force franchisees to adhere to new guidelines and new corporate personalities. “You aren’t in control of the future of the franchise system,” said Olson. “You might be protected with your agreement, but you could have a whole new management team coming in and you might not like the direction of that organization.” And, the parent company usually collects monthly royalty fees off gross sales, ranging from 3 percent to 6 percent, so it takes the same bite out of the franchisee’s income regardless of how well the franchise is performing. On the plus side, when you buy a franchise you immediately buy an established brand something an entrepreneur can spend years trying to build for his own product or service. “With job security a thing of the past, many managers and ‘downsized’ former managers in the corporate and technology sectors are taking a hard look at their careers. They are looking for ways to use their business skills that will give them greater control of their futures,” says Don DeBolt, president of the New York-based International Franchise Association. “At the same time, consumers, abandoning the freewheeling spending habits of the ’90s, are looking for the value and consistency of established brands before parting with their money,” he said. “This combination adds up to an increased demand for franchised businesses, which offer the opportunity to own a small business that has the name recognition to attract brand-conscious customers.”

Valley Forum: How Do You Sell Secession? The firm of Goddard Claussen Porter Novelli has been hired by Valley VOTE to devise a campaign strategy that will assure passage of Valley secession in the Nov. 5 election. The firm says it is now coming up with a concept for slogans, commercials, etc. So, the San Fernando Valley Business Journal asks: If it were up to you to sell secession to the public, what is the slogan you would use? Larry Cohen President Glyphix Woodland Hills “I leave LA.” Chris Garland Creative Director Xeno Design Van Nuys “Valvista, the City of Courage and Change.” The concept needs to be forward-thinking and inspirational. It should set a leadership tone to the community to rally around. Natalie Vu Marketing Coordinator Impress Communications Inc. Canoga Park “With over 1.6 million voices in the Valley, we still can’t be heard.” Alan Kassan Executive Vice President Beitler Commercial Realty Services Sherman Oaks Borrowing from the dairy people, how about, “Got Valley?” Or how about, “Divided we stand, united we fall.” One last feeble attempt, “E Pluribus Valley City.” Michael Haag Senior Biotech Recruiter Technology Network Encino I have no comments on the slogan. But as far as the resources, we would be more in control when issues are addressed. We have complete attention and focus in our area. Here’s a question to think of, ” If you live in the San Fernando Valley, which is more important, Los Angeles or the San Fernando Valley?”

Small Business Profile: Going Small Like many before it, Data Systems Worldwide had to think quickly in order to boost sales after it got burned in the dot-com debacle. By CARLOS MARTINEZ Staff Reporter Woodland Hills-based Data Systems Worldwide Inc. has what sounds like a familiar story. The information technology provider began its rapid growth in 1990 with revenues topping what seems now like a modest $2.4 million. Two years later, revenue nearly doubled and, by 1995, had reached $9.3 million. But that was just the beginning. In 1997, the company embraced the dot-com market as it became the latest thing, serving as IT specialists and Web site hosts for a number of online startups. By 2000, the hot sector made up 40 percent of the company’s $35 million in total revenue. “We thought dot-coms were the way to go, so we got heavily involved in that market and it just took off,” said company founder and chairman Frank Mogavero. But a year later, the market had all but disappeared and DSW was faced with a huge revenue shortfall and some tough choices. When the dot-com boom went bust, the IT specialist saw 40 percent of its business go with it. Revenues dropped to $23.4 million last year as the dot-com market disappeared. “We took a chance and we got burned,” said Mogavero. That should come as no surprise, said Stephen Lane, research director of IT services for Boston-based Aberdeen Group Inc. “You saw 20 to 30 percent of IT companies disappear during that time and a lot of the ones left are mere shells of what they used to be,” Lane said. “And there aren’t many that are recovering.” After losing scores of customers like Commission Junction Inc., an online advertising firm, and Clicktex.com, an e-commerce business for the apparel industry, the company realized it would have to rethink its business strategy. “Or we wouldn’t be in business for much longer,” said Mogavero’s son Phil, DSW’s CEO, who took over company operations from his father in 2000. Two years later, DSW is regrouping by lining up as clients small businesses not generally considered the traditional IT service users, along with a few larger firms that no longer can afford or feel they need their own in-house staffs. DSW’s revenues are still well below those it recorded a couple of years ago, but Phil Mogavero believes it is slowly recovering market share by aggressively pushing its Web hosting service and offering its IT packages for small business. DSW expects 2002 revenue to reach about $22.4 million, pick up significantly in 2003 and reach $32.7 million in 2004. Meanwhile, just to survive, DSW cut its staff of 110 to 70 and went to work aggressively marketing to smaller firms that so far didn’t know what the Internet could do for them. “Our goal really is to help companies use technology to operate more efficiently,” said Phil Mogavero. “We give companies ways to keep track of their sales and inventory and keep track of what is selling and what isn’t.” For instance, a company can track trends and buying patterns and make automated purchases of needed products to keep up with the demand, Phil Mogavero explained. Santa Fe Springs-based office equipment maker Accuride International Inc. last year eliminated its own servers and is now hooked up to DSW’s as part of a business-to-network business, resulting in a $250,000 annual savings. “We were on Oracle’s 10.7 financial application and they told us that they weren’t going to support that version in 2001, so we needed to upgrade… but in the end we felt outsourcing would be the best solution,” said Trang Nguyen, financial analyst for Accuride. “There is an upsurge in some segments like retail and manufacturing and health care, and that’s helping IT,” said Arun Gollapudi, CEO of Glendale-based Systech Systems Inc. “Owning and maintaining all that hardware just isn’t cost-effective.” “We see tremendous potential out in our (business-to-network) business as we continue to develop it,” said Phil Mogavero. It was 1971 when Phil’s father, Frank, founded a small typewriter repair shop in Beverly Hills that would later sell the first IBM personal computers. Eventually, the company would move to Sherman Oaks, offering computer repair and IT services, becoming DSW. SPOTLIGHT: Data Systems Worldwide Inc. Core Business: Information technology Revenue in 2000: $34.7 million Revenue in 2001: $23.4 million Employees in 2000: 110 Employees in 2001: 70 Goal: To grow client base through diversified information technology services Driving force: More companies seeking to reduce the costs of information technology services

The Year of Living Dangerously: Stories of Survival If you’re thinking about going into business for yourself, take heed: That first year is a killer. While it’s hard to get a handle on the diverse range of enterprises known as start-up businesses, the U.S. Small Business Administration estimates that somewhere around 60 percent don’t make it to their fifth year. The reasons are well known: lack of sufficient capital, lack of a good business plan, sometimes just simply not enough sales. Still, every day more brave souls are going into business for themselves and making a success of it. Here are a few stories from the owners and founders of successful San Fernando Valley small businesses about that treacherous first year, and how they survived it. Conscience and the Cats Topanga Oil Products Sylmar The turning point for Henry Spitzer might have been the cats, a couple of hundred of them in a kennel in Topanga Canyon. “We didn’t understand we were in a service business,” Spitzer said. Today he runs his $16 million wholesale oil products business with 35 employees from a warehouse complex in Sylmar. But it started out when the then-salesman for educational films and his wife decided in 1973 they wanted a little sideline, “a business we could have some control over.” So, they paid $6,500 for Topanga Oil Products, a business distributing heating oil to residents in Topanga Canyon. At first, it meant his wife would drive a truck around the canyon one day a week, delivering heating oil 30 or 50 gallons at a time. A few years later, a man with a similar company in Van Nuys asked Spitzer to buy him out. That company came with something Spitzer did not realize at the time was that significant: a Valvoline distributorship, the value of which became more obvious as time went on. But in that first year, the rudest awakening was “understanding what kind of business we were in,” Spitzer said. It was the service that was important, not the product. “If we had a customer up in Topanga and it was a cold night,” Spitzer said, “we had an unhappy customer.” Like the woman with the cat kennel. “The last thing I wanted on my conscience was a bunch of dead cats.” Michael Hart The Fine Print All Phase Electrical Systems Van Nuys Red tape. That’s pretty much all James Cordaro remembers from 1984, his first year in business as owner of All Phase Electrical Systems. According to him, navigating the city’s policies on business permits, its tax structure and operational regulations for electricians was the most difficult part of that first year. “I would have to say that not knowing all the rules and regulations that the city places on everyone before you can actually pull a permit was the toughest part for me,” said Cordaro. “The city never really had anything spelled out for me and I had to go to so many different departments to get answers. There was no one easy way to get information, so it was a real learning curve getting the business off the ground.” “Then, some of the pitfalls of day-to-day operations on top of those had to do with managing people for the first time in my life,” said Cordaro. “Many think it’s great to work for yourself, and it is. But then you get an employee and insurance, and other issues kick in. It’s a whole new world, and I think there should be a one-stop shop for people to go to that has classes that are reasonably priced to teach business owners how to keep doing all these things correctly and efficiently. Even now, 12 years later, every day there is a new law and a new regulation trying to squeeze you out of business.” Jacqueline Fox Get Your Footage in the Door The Footage Store Burbank Matthew Cramer had been in the entertainment industry for some time when he decided to open The Footage Store in Burbank three years ago. He knew the ropes, where to go and how to get it done. Still, he says, “There’s things I wish I could have done. I wish I had more money for actual advertisements.” Cramer’s business, leasing stock film footage to entertainment and production companies, as well as advertising agencies and corporate marketers, relies on getting the phone to ring. “The hardest part was getting the name out there,” says Cramer. “Just letting people know.” Cramer built a Web site and got his company listed in what he calls “the right directories and trade publications.” He also spent time making sure that The Footage Store appeared on popular search engines and, when potential clients did find the site, that it conveyed the right image. But in a business where competition is fierce, and many of his rivals are far larger operations, some with multi-national locations, more conventional advertising vehicles can be a tremendous help. “Getting a Web presence is relatively inexpensive compared to taking out ads in the backs of publications,” said Cramer. “At the same time, when every dollar that comes in goes to paying rent and putting food on the table, you have to sacrifice some things for others. You go for what is the most cost-effective way to get your name out there.” The Footage Store began with what was primarily a wildlife footage library because, Cramer said, “it seems to be something people are always looking for.” Later he branched out into other areas. In the first years, he said, “you really have highs and lows.” “There’s that excitement factor in starting up your business for the first time,” Cramer said. “When you finally see your name in print, when you start to get lots of phone calls, and somebody says, ‘Hi. I’m looking for such and such,’ and you know you reached them. It’s a good feeling to know your hard work paid off.” Each year since opening, he has done better than the last, although business has slowed considerably this year as the entertainment industry has cut back. Still, Cramer says he is doing what he set out to do be his own boss. “Anybody who starts their own business,” he said, “doesn’t expect to get rich overnight.” Shelly Garcia Give the Guy Credit Cyber F/X Inc. Glendale Dick Cavdek thought he had the right idea about using computer scanners for something different. So he started Cyber F/X Inc. in 1992, using high-end scanners and other sophisticated machining equipment to create something nobody else had. “I thought a lot of people would want to have sculptures of themselves, but it didn’t happen,” said Cavdek, who at the time was a computer programmer and head of research and development at a camera firm in Los Angeles. “I got $60,000 from my father to get things going, but nothing was happening for the first six months.” Then when things did start cooking, he found the companies he wanted to lease equipment from skeptical of his prospects. “I had my own credit record but no background in business, so for the longest time I couldn’t get anyone to lease me equipment,” he said. “I had to wait a couple of years in some cases.” Cavdek’s plan was to scan people’s bodies and then use the digitized information and specially designed machining equipment to recreate a three-dimensional version out of plastic or metal. Finally, thanks to some friends in the entertainment business, Cavdek’s name came to the attention of the Academy of Television Arts and Sciences in North Hollywood which was interested in commissioning a bust of Emmy-winning television producer David L. Wolper. “That was our break, and we’ve been working with Hollywood ever since,” said Cavdek, whose firm makes statues for films along with full-bodied models of celebrities for costume fittings. “It’s expensive to a studio to have celebrities spend hours at a costume fitting when they could have a celebrity come in for a few minutes and get their body scanned,” he said. Carlos Martinez Feeding the Fund Adams Monaci Consulting Sherman Oaks Sheri Adams has started four companies so far. And the latest, a consulting firm that helps companies evaluate their technology and their operations that took form in 1989, began not very differently from the others in its earliest conception. The biggest concern, Adams said, is “the threat to your capital.” The obvious challenge is, well, obvious. “You’re wearing so many hats,” she said. “You have to market, you have to sell, you have to keep accounts, service clients, do billable hours.” And when you begin to experience a little success, it only gets worse. “You’re selling more work than you have the resources to perform,” Adams said. Once she began to get commitments on a few projects, it became clear that the little consulting business she thought she could run out of her home for a few years just wasn’t going to work. “The budget I had anticipated for two people suddenly is five people,” she said. Turning work down at that stage wasn’t an option either. “Projects that are due to start don’t always start, so you always have to have your pipeline full.” Cash, consequently, to fund this success, to move her firm out of her living room and into a real office, was the challenge. “First, I funded it from deposits I got from projects,” Adams said. “From a $5,000 deposit, I took $2,500 for equipment and furniture.” She dipped into her savings. “And when all else failed, I went into the credit cards,” she said. “In the end it all worked out. I’m still here. But it’s very frightening because at the time you don’t know how it’s going to work out.” Michael Hart On Your Own Really Promotionally Minded Encino Hank Yuloff went into business for himself in 1987 in competition with the boss he’d just said goodbye to. As a result, Yuloff, owner of Promotionally Minded in Encino, which sells promotional products for trade shows and corporate clients, has some simple advice: leave much of what you learned behind when you go. “Obviously, a big challenge my first year was generating cash flow,” said Yuloff, who started his company in 1997. “But in order to do that successfully, I had to rethink the way I worked. Before I had worked for our competitor and I had a difficult time getting it through my mind that this was my own business. I had to convince myself that I could set up my own rules and policies. It took me a while to figure out how to do that and effectively work with clients.” “I had worked for someone else for a little more than 10 years, and I was subject to their whims and sometimes seemingly emotional decisions,” said Yuloff. “I just continually had to remind myself and catch myself in old patterns and ask myself if something I was doing was an old habit or something I created and wanted to hang on to.” Jacqueline Fox It’s Who You Know Alfaro & Alfaro Van Nuys As independent contractors assisting attorneys with legal services, Carlos and Jose Alfaro saw what could happen to a business’s financial footing if it was hit with a lawsuit. So when the brothers decided to start their own business, one they could build and grow and that could offer workers the chance for a career, they settled on an insurance company specializing in asset protection. Alfaro & Alfaro opened on March 1, 1997 in Van Nuys. By March 15, the company had its first client. “But that was one client,” said Carlos Alfaro. “After three months, you’re saying, ‘How do I take this one to another level?'” The partners were getting calls from the advertising they invested in, but Alfaro & Alfaro was one of a long list of insurance companies callers were contacting for quotes. Most cared little for the particular services geared to asset protection and risk management that the partners wanted to offer. “The types of calls we were generating, the majority were not interested in learning about the personalized service,” said Alfaro. “We were looking at the amount of energy and resources we were spending on print advertising, and we did the math and we soon realized it wasn’t making sense for us.” The Alfaro brothers switched gears. They joined the Latin Business Association. They began networking at community organizations and not-for-profit events. They sponsored community events where they could build one-on-one relationships with law firms, CPA’s and professional organizations that could be a source of referrals. Slowly they began to identify insurance programs and services geared especially to risk management and asset protection for e-commerce companies, manufacturers and contractors, not-for-profits, distributors, law firms, medical facilities and CPA firms. The changeover took time. Business declined at first, but by the third year Alfaro & Alfaro had developed a sufficient base of business to sustain itself. Today, the company boasts a long list of local and international clients and employs six people. In September, on the occasion of Hispanic Heritage Month, the company was selected for special honors for its commitment and contribution to the local business community by KCET’s Community Advisory Board and Union Bank of California. If they had it to do all over, Carlos Alfaro said the two would have spent more time working within the insurance industry before striking out on their own. Shelly Garcia Thanks, Dad Capital Office Products Pacoima Carolyn Nelson remembers her first year in business as “a blur.” “I’ve never been so scared in my life,” said the owner of Pacoima-based Capital Office Products, an office supplier in business since 1994. Nelson and her husband Richard went into business for themselves after her father-in-law sold the company Richard had grown up in and Carolyn had sold office supplies for. At first, both Nelsons went to work for other people. “Which didn’t work out,” Nelson said. “Surprise, surprise.” They had both spent too many years in a family business, so her father-in-law didn’t have to work too hard to talk them into trying it on their own. “But then my husband was always saying, ‘My father forgot to tell me about this, or forgot to tell me about that,'” Nelson said. That first year, Nelson and her husband faced three major obstacles, all at once: lack of cash flow, trouble getting vendors to extend them credit and long, long hours. “My husband would start every morning at 3 a.m. (to prepare the orders he would deliver himself) and work until 7 p.m.,” Nelson said. Eventually, three months into the business, Nelson hired two more sales people, who brought along a few of their own accounts. That enabled Capital Office to hire a driver and an office assistant. “But my husband still kept that schedule up for three years,” she said. As far as the cash flow situation was concerned, “Luckily, we had our father-in-law who loaned us money,” she said, and eventually a few vendors remembered the Nelsons from the previous business. In the first full year in business, Capital Office Products had $800,000 in sales. This past year, $2 million. The Nelsons now have nine employees. “The prospect of having to work for somebody else kept us motivated,” Nelson said. Of going into business for themselves, she said, “It’s been the best thing that’s ever happened to us.” Michael Hart Always Be Closing Edge Industrial Design Westlake Village When Bob Hess and Jonathan Oswaks opened Edge Industrial Design nine years ago, e-mail was new and the Internet was more a dirt road than a superhighway. While the lack of technological sophistication made it less expensive for companies like Edge to get started there was also less technology in use for product design it also meant that there were fewer ways for a new company to get in front of potential customers. “Getting the word out and the capabilities of the company and getting people to take a chance on the business” was the most challenging aspect of the startup, said Hess, executive vice president of the Westlake Village-based industrial design firm. Edge, which designs everything from audio speakers to turbine generators and medical appliances for companies ranging from Agilent Technologies Inc. to JBL Professional and NordicTrack, also faced another challenge. The business turns on fresh ideas and new blood. That meant one good job done for a client would not necessarily insure that Edge would land the second assignment. “It’s not an industry with the greatest level of loyalty,” Hess said. As the partner in charge of sales and marketing (Oswaks, who is president, is the industrial engineer), Hess said he put a lot of time into direct mail campaigns and cold calling to get leads. The initial sales and marketing approach was twofold. Hess sought to identify companies in the region that were potential users of Edge’s industrial design services, but he also tried to target those businesses where the staff had prior product design experience. “You’re in a better position to sell those jobs,” Hess said. The strategy paid off. The partners initially expected it to take between 18 and 24 months to establish themselves. “It was in reasonable shape after 18 months and we were profitable and could make a living,” said Hess. His advice to those starting a venture, particularly if, like himself, they come from large organizations? “It’s something I take from ‘Glengarry Glen Ross’,” he said. “Always be closing. If you look at the way a larger corporation operates, you spend a majority of time in meetings and dealing with politics. You have to cut all that out if you’re going to be productive and nimble.” Shelly Garcia Out of the Bedroom Novalogic Inc. Calabasas John Garcia worked out of his bedroom when he started Novalogic Inc., his software and video game development business. With $1,000 sunk into computer equipment, Garcia began in 1985 what he would eventually turn into a successful video game company. “All John had was word of mouth to get him business and an old car that he drove around in,” said Novalogic President Lee Milligan. When Garcia left his job as a programmer with DataSoft Inc. to create software and games for other firms in the fledgling video game market, he had only his Rolodex and a small group of contacts. “Getting customers was always a battle at first, but people started to take notice. It took a year, but it was a start,” Milligan said. The company soon began making PC versions of popular arcade games like PacMan for a number of companies. Building and developing new relationships was the key to eventually moving out of the home office into a storefront in Woodland Hills, Milligan said. It would take four more years before Novalogic could create and market its own games, but its first year was more about finding a niche in the video game market. Carlos Martinez Oh Yeah, Customers Mosaic, The Ad Shoppe Sherman Oaks Helping clients find customers is what the folks at Mosaic, The Ad Shoppe do, building advertising campaigns for department stores, large automotive chains and other retailers. But Bob Charney, the company’s president, started his business back in 1989 without a single customer of his own on board, counting on a background in sales to jumpstart his new career in advertising. Certainly, switching careers was a risk, starting a company without even the first business prospect made it even riskier. “My biggest challenge was, simply, sales,” Charney said. “But I had 18 years of prior marketing experience at the time, so I tapped into my network of friends and business associates for referrals and client leads.” Then Charney realized there was another challenge: his wasn’t the only ad shop around. How then to make Mosaic stand out? Charney decided to do for his own business what he does for others and turned the office into a retail store, complete with a selection of books on retailing, a cashier at the front desk, a moving escalator and a workspace littered with promotional products featuring the Mosaic “brand.” Jacqueline Fox Gimme Just One Customer Infinity Financial Woodland Hills Going from stockbroker to mortgage lender sounded like a good idea three years ago to Milan Vukovic who, along with two partners, founded Infinity Financial Inc. Although the company is today profitable and located in a Warner Center high-rise, Vukovic said he won’t soon forget his company’s first-year struggle to get customers. “I’d go to work and sit at my desk and there wouldn’t be any customers for weeks,” he said, recalling that some of his former Merrill Lynch clients advised him to return to brokering. The hours he spent networking, both in person and on the telephone, seemed useless as he and his partners fought to get their first customer. It took two months, but eventually the long hours spent telephoning potential clients and sending out waves of mailers started to pay off. “Getting customers to know we were here was the biggest hurdle,” he said. “We were trying everything short of putting commercials on TV or radio. But we weren’t getting anything until finally people started calling us. It was amazing.” Although there was no revenue for three months, the company was prepared for a full year without income if necessary, Vukovic said. “It was really the word of mouth that did it. They knew we really wanted their business and that we tried harder than anyone else they tried,” he said. Carlos Martinez

Resources for San Fernando Valley Small Businesses Living Dangerously: Small business in 2002 It was only a few months ago that North Hollywood resident Deborah Doster, 37, found herself in dire straits. Attempting to leave an abusive marriage, she and her children were forced into a temporary shelter and, along with everything else, lost her job as a part-time aerobics instructor. As she began to put her life back in order, Doster came to a decision: she wanted to resume her work as a fitness instructor, but she wanted to work for herself. However, she had no experience running a business, no training and very little capital. A counselor referred her to the Valley Economic Development Center in Van Nuys, the largest nonprofit business development agency in Southern California and perhaps the Valley’s primary one-stop shop for anyone who wants to set up their own small business or needs help with an existing one. The VEDC has been offering training, consulting and technical and financial assistance to small and medium-sized businesses for 26 years. Doster got help developing her first business plan and obtaining approval for a small business loan of $3,900. She graduated from the VEDC’s Enterprise Training Program, which helped her learn bookkeeping and other business skills. In January she launched Tellitlikeitiz/noexcuses, a fitness-training boot camp course, which she markets to corporate groups. Her first class filled to capacity with 25 members. The VEDC is one of several Valley organizations whose primary mission is to assist new and established business owners get off the ground, expand and get their voices heard on state and federal issues affecting their businesses. Here are some of those organizations, a brief description of what they offer and contact information. Jacqueline Fox VEDC (Valley Economic Development Center) Nonprofit business development corporation offering financial assistance, consulting, training and business solutions for small and medium-sized companies. 5121 Van Nuys Blvd., Third floor Sherman Oaks (818) 907-9977 Web site: www.vedc.org SCORE (Service Corps of Retired Executives, sponsored by U.S. Small Business Administration) Los Angeles County Chapter 9 Offers monthly workshops and seminars for business owners on a variety of topics including financing, marketing and public relations 330 N. Brand Blvd. #190 Glendale (818) 552-3206 Web site: www.score.org VITA (Valley International Trade Association) Nonprofit association provides local businesses assistance in competing in the global marketplace 5121 Van Nuys Blvd., Suite 200 Sherman Oaks (818) 379-7000 Web site: www.vitainternational.org SMA (Small Manufacturers Association) of California Provides public policy representation as well as financial, educational and networking assistance for manufacturing firms with fewer than 500 employees Southern California Office 1603 Don Carlos Ave. Glendale (818) 242-7658 Web site: www.schobers.com/sma VICA (Valley Industry & Commerce Association) A private, nonprofit business advocacy association comprised of volunteer businesses owners and civic leaders 5121 Van Nuys Blvd., Suite 203 Sherman Oaks (818) 817-0545 Web site: www.vica.com The Economic Alliance of the San Fernando Valley Conducts economic research, educational programs, seminars and support services through a network of partnerships with local businesses owners, residents, civic leaders and state legislators 5121 Van Nuys Blvd., Suite 200 Sherman Oaks (818) 379-7000 Web site: www.valleyofthestars.org United Chambers of Commerce Comprised of 22 member chambers of the San Fernando Valley, representing more than 8,000 businesses 5121 Van Nuys Blvd., Suite 208 (818) 981-4491 Web site: www.unitedchambers.org Mayor James Hahn’s Office of Economic Development/L.A. Business Team Provides local businesses assistance navigating the permitting process, financing availability and other city business-related services Valley Office Hours: Every Wednesday, 9 a.m. to 5 p.m. 5121 Van Nuys Blvd., Third Floor Sherman Oaks (800) 472-2278 Web site: www.lacity.org