Hauppauge Businessmen Give Advice For Success

Hauppauge businessmen shared their tips for running a successful company in today's economic environment at the Hauppauge Industrial Association's "Connect With The CEO" on Tuesday. 

Clear Vision Optical, Irwin Contracting, Long Island Cares and The Tiffen Company presidents made up most of a five-member panel, including Melville-based architectural engineering firm H2M, to offer their personal experience to growing a business in a downturned economy. Diversifying, closely managing cash flow and bringing in outside perspectives to evaluate practices were repeatedly mentioned as keys to success.

David Friedfeld, president of Clear Vision Optical that produces sunglass and optical frames, said his company made several changes that gave rise to its growth in winning HIA's 2007 small business achievement award to winning the large business category in 2008.

"We looked for new channels of sales, which we've done. Typically, in the past, we sold to small independent chains but recently began selling to Lenscrafters," Friedfeld said.

Construction-based Irwin Contracting President and Founder John Irwin said his family-based business has also begun to expand its markets to find sources of revenue. Traditionally, the general contracting company has focused on work for municipalities, but with budgetary problems has moved more into commercial real estate.

"I see the private sector coming through on work, as they held back a little bit before but now they are starting to spend and go in on projects," Irwin said.

Hauppauge-based nonprofit organization Long Island Cares has expanded its core mission beyond serving food to the hungry, diversifying by offering services to help the needy in getting back on their feet, Executive Director Paul Pachter said.

"We reached out to many of our major funders, including the government, to reorienentate them to what LI Cares is about, and reposition ourselves in the economy as we knew the issue we address was going to be paramount in the mind of America," Pachter said.

Steve Tiffen, president of The Tiffen Company, who produces lenses, filters, flash brackets, camera gear and other accessories in Hauppauge said his business is fairly diverse due to the number of industries they manufacture products for. However, he said they have looked at profitable niches and founds new ways to exploit them.

Another key to success was taking income earned on sales, and making sure cash was being spent efficiently, panel members agreed.

"We went inside the company to find various inefficiencies. We talked to our partners to find ways to partner with them better. We found ways  to lower costs within the organization to fund internal growth," Friedfeld said.

At Clear Vision Optical, he made the decision to hire an addition employee for the accounting group at their request, claiming it would allow them to collect owed money faster. Friedfeld said the employee's salary may have cost $50,000, but the move generated more than $1 million in increased cash flow.

Others turned to experienced businessmen willing to give an outsiders perspective on how to improve the companies.

"It's really critical to choose a board who can help you understand issues in your business and look at your business from an outsider perspective," Tiffen said.

Both Tiffen and Pachter have shaken up their boards, either by expanding and/or changing its membership to get individuals passionate about their company but willing to challenge policy in issue areas. In recent years, LI Cares' board of director has grown from 14 to 24 members, and the organization now has a food industry council and music industry council.

"Board members, advisors and consultants that challenge you are very healthy," Friedfeld said.

While each company's presidents defined success in a different way when asked, it was clear they have used similar methods across industries to thrive in the current economy.