 If you own a small business in Rochester, NY, you’ve probably asked yourself this question: How do I get more customers?
Whether you’re running a retail store, restaurant, service business, home-based business, or growing company, attracting new customers is an important part of building a successful business. The good news is that getting more customers doesn’t always require a large marketing budget. It starts with understanding who your customers are, making your business easy to find, and building relationships within your community. Know Your Customer Before you spend time or money on marketing, make sure you know who you’re trying to reach. Think about your ideal customer. Where do they live? What do they need? What problem does your business solve? Where do they look for information or recommendations? For a Rochester-area business, your customers may come from your neighborhood, surrounding suburbs, or communities throughout the Finger Lakes region. Understanding where your customers are—and what matters to them—will help you focus your marketing efforts. Make Your Business Easy to Find When someone in Rochester searches for the product or service you offer, can they find you? Start with the basics. Make sure your website, Google Business Profile, social media pages, and other online listings have accurate information. Your hours, location, phone number, website, services, and photos should all be current. Online reviews matter, too. Encourage satisfied customers to leave reviews and take the time to respond professionally to customer feedback. You don’t need to be on every social media platform. Focus on the places where your customers are most likely to find you. Get Involved in the Community Rochester has a strong network of neighborhoods, local organizations, events, and small businesses. Getting involved can be a great way to build awareness and relationships. Consider attending local networking events, joining a business association, participating in community events, or partnering with another local business. A collaboration or referral from another business owner can sometimes introduce you to customers you wouldn’t reach through traditional advertising. Being visible and involved in your community helps people get to know, like, and trust your business. Take Advantage of Local Events Rochester hosts events throughout the year that bring residents and visitors into the community. Festivals, concerts, sporting events, conferences, and seasonal activities can all create opportunities for local businesses. Think about whether your business can connect with these events or reach the people attending them. A restaurant might offer an event-day special. A retailer might create a seasonal promotion. A service business might partner with another organization to reach a new audience. Look for opportunities that make sense for your particular customers and business. Turn First-Time Customers Into Repeat Customers Getting a new customer is only the beginning. Think about what will encourage that customer to come back. Excellent customer service, a loyalty program, personalized follow-up, special offers, and a positive experience can all help turn a first-time customer into a repeat customer. Referrals are another powerful tool. A satisfied customer who recommends your business to a friend, neighbor, or coworker can help you reach new customers without a large advertising expense. Track What Works You don’t have to try every marketing strategy at once. Start with a few approaches and pay attention to the results. Ask new customers how they heard about you. Track website inquiries, phone calls, referrals, social media activity, and sales from specific promotions. Over time, you’ll learn which strategies are bringing in the right customers. Focus your time and money on what works—and adjust what doesn’t. Remember, the goal isn’t simply to get more customers. It’s to get the right customers: people who need what you offer, value your business, and are likely to return. You Don’t Have to Do It Alone Figuring out how to attract more customers can be challenging, especially when you’re also running the day-to-day operations of your business. The Finger Lakes Small Business Development Center provides no-cost, confidential advising to entrepreneurs and small business owners throughout the Rochester and Finger Lakes region. An SBDC advisor can help you identify your target market, develop a marketing strategy, evaluate your sales process, and identify opportunities for growth. If you’re ready to attract more customers and grow your business, the Finger Lakes SBDC is here to help.
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 Why Isn’t My Business Making Any Money? 7 Things to Consider
You’re making sales. You have customers. You’re working hard. So why doesn’t it feel like there’s any money left at the end of the month? It’s a frustrating question, and one that many small business owners eventually find themselves asking. The answer isn’t always as simple as “you need more customers.” A business can have strong sales and still struggle to make a profit. Pricing, expenses, cash flow, margins, inventory, and even the way you’re tracking your finances can all play a role. The good news is that not making enough money doesn’t necessarily mean your business is failing. It may mean there’s an opportunity to better understand what’s happening financially and make some adjustments. Here are seven areas worth looking at if your business isn’t making the money you expected: 1. Are You Charging Enough? One of the first questions to consider is whether your prices are actually supporting a profitable business. It can be tempting to base your prices on what competitors charge or what you think customers are willing to pay. But your business has its own costs—and your pricing needs to account for them. Consider everything that goes into delivering your product or service: materials, labor, equipment, overhead, marketing, technology, and your own time. If your prices don't leave enough money after those costs are covered, increasing sales may not solve the problem. You could simply be working harder for very little additional profit. An SBDC advisor can help you take a closer look at your pricing, costs, and profit margins so you can make informed decisions about what you're charging. 2. Are Your Expenses Too High? Sometimes the problem isn't how much money your business brings in. It's how much money goes back out. Rent, payroll, insurance, inventory, software subscriptions, advertising, professional services, loan payments, and other expenses can add up quickly. Some expenses are essential to operating your business. Others may have made sense when you first started but deserve another look as your business has changed. The important question isn't simply, “What can I cut?” It's “Are my expenses appropriate for the revenue my business is generating?” 3. Are You Looking at Sales Instead of Profit? It's easy to feel encouraged when sales are increasing. But revenue is only part of the picture. Imagine that your business had its best sales month ever. That sounds like great news—but if the costs associated with those sales also increased significantly, you may not have actually improved your bottom line. This is why understanding your profit margins matters. You may also discover that some products or services are much more profitable than others. Knowing that can influence decisions about what you sell, how you price it, and where you focus your marketing efforts. 4. Do You Know Your Break-Even Point? Every business has a point where its revenue covers its costs. Before reaching that point, the business is losing money. After reaching it, additional sales can begin contributing to profit. This is known as your break-even point. Knowing your break-even point can help answer important questions:
Profit and cash flow aren't the same thing. A business can be profitable and still experience periods when there isn't enough cash available to pay its bills. For example, you might make a sale today but not receive payment for several weeks, while your expenses are due now. Cash-flow challenges can become especially important when a business is growing, purchasing inventory, hiring employees, expanding its space, or taking on debt. If you regularly find yourself wondering where the money went—or worrying about whether you'll have enough cash to cover upcoming expenses—it may be worth taking a closer look at your cash flow. 6. Are You Growing Without a Plan? Growth is exciting. But growth can also be expensive. Hiring an employee, buying equipment, increasing inventory, moving into a larger space, or spending more on marketing may all be necessary to grow—but they also require money. Sometimes a business owner sees increasing demand and assumes the answer is simply to grow faster. But growth needs to be financially sustainable. Before making a major investment, it's worth asking: Can my business afford this growth, and what will it take for that investment to pay off? 7. Do You Understand What Your Numbers Are Telling You? You don't have to be an accountant to be a successful business owner, but you do need to have enough information to make good decisions. Many small business owners are excellent at what they do. They're also busy running the day-to-day operation of their business. Finding the time to step back and analyze financial statements, margins, cash flow, and projections can be difficult. Sometimes the challenge isn't having the numbers. It's knowing what questions to ask about them. If you aren't sure why your business isn't making money, that's a good reason to get another perspective. So, Why Isn't Your Business Making Money? The answer could be one of these issues—or several of them working together. Maybe your prices aren't high enough. Maybe your expenses have grown too quickly. Maybe your most popular products aren't your most profitable. Maybe your business needs more sales. Or maybe you're dealing with a cash-flow problem rather than a profitability problem. The important thing is to understand what's actually happening before deciding what to change. You Don't Have to Figure It Out Alone At the Finger Lakes SBDC at SUNY Brockport, our advisors work one-on-one with small business owners to help them better understand their businesses and make informed decisions. Whether you're an established business struggling with profitability or a growing business trying to figure out how to become more financially sustainable, you don't need to have everything figured out before you reach out. An advisor can help you look at the bigger picture, ask the right questions, and identify areas that may need attention. If you've been wondering, “Why isn't my business making any money?”—let's take a closer look together. Connect with the Finger Lakes SBDC at SUNY Brockport to schedule a confidential, no-cost appointment with an advisor and take the next step toward a more profitable business.  Starting or growing a business often requires more money than you have available in your bank account.
Maybe you need equipment. Maybe you're opening a storefront, purchasing inventory, hiring employees, or simply need working capital to keep your business moving forward. Whatever the reason, a business loan can provide the capital you need to start, operate, or grow your business, but getting a business loan isn't as simple as filling out an application and waiting for a check. Lenders want to understand your business, how much money you need, what you plan to do with it, and most importantly, how you will repay it. The good news is that you don't have to figure it all out on your own. Whether you're a new entrepreneur in Rochester or an established small-business owner in the Finger Lakes region, preparing before you approach a lender can make the process much easier. Continue reading to see what you should know before applying for a business loan. 1. Determine Why You Need the Money Before you start looking for a lender, be specific about why you need financing. Are you using the money to:
Knowing exactly what you need the money for will help you determine what type of financing may be appropriate. It can also help you determine how much you actually need to borrow. Asking for too little could leave you without enough money to complete your project, while borrowing more than you need could increase your costs and repayment burden. The U.S. Small Business Administration (SBA) recommends knowing both the amount of capital you need and how you plan to use the funds before approaching lenders. 2. Figure Out How Much You Need Once you know what you want to accomplish, put a number on it. Start by creating a detailed list of the costs associated with your project or business need. If you're purchasing equipment, for example, include the equipment, installation, delivery, and any other related expenses. If you're starting a business, revisit your startup-cost calculations and financial projections. You should also think about how the loan will affect your monthly cash flow. A lender will want to see that your business can reasonably afford the loan payments. The goal isn't simply to determine how much money you can borrow. It's to determine how much financing your business actually needs and can realistically repay. 3. Understand Your Financing Options There isn't one business loan that works for every business. The right type of financing depends on what you need the money for, how much you need, how quickly you need it, and your business's financial situation. Here are some of the financing options you may encounter: 1. Traditional Bank Loans A traditional business loan from a bank or credit union provides a lump sum of money that you repay over a set period of time, usually with interest. These loans can be useful for larger, planned expenses such as purchasing equipment, expanding your business, renovating a location, or making other long-term investments. Banks and credit unions may consider your business's financial health, credit history, cash flow, collateral, and ability to repay the loan when evaluating your application. Requirements and terms can vary between lenders, so it can be worthwhile to compare your options. 2. Business Lines of Credit A business line of credit gives you access to a set amount of money that you can draw from as needed, rather than receiving the entire amount as a lump sum. For example, if you're approved for a $25,000 line of credit, you could use $5,000 to cover an immediate business expense while keeping the remaining credit available for future needs. With a revolving line of credit, repaying what you've borrowed generally makes those funds available to use again, subject to the terms of the agreement. Lines of credit can be useful for managing short-term cash-flow needs, seasonal expenses, inventory purchases, or unexpected costs. Unlike a term loan, you generally pay interest on the amount you actually use rather than the entire credit limit. Keep in mind that a line of credit is still debt. Before opening one, make sure you understand the interest rate, fees, repayment requirements, and whether the rate can change. 3. Equipment Financing If you need to purchase equipment for your business, equipment financing may be an option. This type of financing is designed specifically for purchasing business-related equipment, such as machinery, vehicles, computers, commercial kitchen equipment, or other necessary assets. Equipment financing is different from a general-purpose business loan because the financing is tied to a specific purchase. In many cases, the equipment itself serves as collateral for the loan. This can provide the lender with additional security if the business is unable to repay the financing. Equipment financing may be worth considering when you know exactly what you need to purchase and can demonstrate how that equipment will contribute to your business. 4. SBA loans The SBA's 7(a) loan program is its primary business loan program. It can be used for a variety of purposes, including working capital, purchasing equipment, acquiring or improving real estate, purchasing inventory, starting a business, and certain debt refinancing. The maximum 7(a) loan amount is $5 million[1]. The SBA also offers the 504 loan program, which provides long-term, fixed-rate financing for major fixed assets such as buildings, land, and equipment. The maximum 504 loan amount is $5.5 million[2]. For smaller financing needs, the SBA Microloan program provides loans of up to $50,000 through approved intermediary lenders. Microloans can be used for expenses such as working capital, inventory, supplies, furniture, fixtures, machinery, and equipment[3]. The right financing option depends on your circumstances. A traditional loan may make sense for a large, planned investment, while a line of credit may be better suited to ongoing or short-term cash-flow needs. Equipment financing may make sense when you're purchasing a specific piece of equipment. You don't have to determine the right option by yourself. An SBDC advisor can help you understand the differences between financing options and prepare you to have an informed conversation with potential lenders. 4. Know What Lenders Will Look At When you apply for financing, the lender is trying to answer a basic question: Can this business repay the money it borrows? To make that determination, a lender may look at factors such as your personal and business credit history, revenue, cash flow, financial statements, business experience, existing debt, collateral, and business plan. The SBA's Lender Match guidance specifically recommends that prospective borrowers be prepared with a business plan, a clear understanding of the amount and use of funds, credit history, financial projections, and information about collateral[4]. If you're a new business without a long operating history, your personal financial history and the strength of your business plan may be particularly important. That's why it's worth preparing before you apply. 5. Prepare Your Business Plan and Financials Your business plan isn't just something you write when you're starting a business. It can also be an important part of a financing application. A lender needs to understand what your business does, who your customers are, how you make money, what your competition looks like, and how the loan will help your business. You'll also want to have realistic financial projections that show your expected revenue, expenses, cash flow, and ability to repay the loan. The more clearly you can explain your business and your numbers, the easier it is for a lender to evaluate your request. 6. Gather Your Documents Loan applications can require a significant amount of documentation. Depending on the lender and the type and size of loan you're requesting, you may need documents such as:
Every lender is different, so ask what documents you'll need before you begin the application. Getting your paperwork organized ahead of time can help prevent unnecessary delays. 7. Find the Right Lender Once you're prepared, it's time to find a lender. You don't necessarily have to start with the first bank you see. Different lenders may have different products, requirements, rates, fees, and appetites for different types of businesses. Consider talking with banks, credit unions, community lenders, and other financing organizations to find out what options may be available. If you're interested in SBA financing, the SBA's Lender Match tool can help connect businesses with participating lenders. 8. Explore New York State Financing Options A traditional bank loan isn't your only option. New York State's Empire State Development (ESD) offers several capital access programs designed to help small businesses access financing. For example, the Small Business Revolving Loan Fund provides loan capital to participating Community Development Financial Institutions (CDFIs), which then lend to eligible small businesses. The program is designed to help businesses that may have difficulty accessing traditional credit[5]. New York State also offers a Capital Access Program (CAP), which works with participating lenders to expand financing opportunities for eligible small businesses. Current ESD materials describe CAP as a program intended to help small businesses that have had difficulty securing financing for working capital, expansion, or upgrades[6]. Programs and eligibility requirements can change, so check the current information directly through Empire State Development before making a financing decision. 9. Apply for the Loan Once you've identified a lender and financing option, you'll submit your application and supporting documents. Be prepared to answer questions about your business, your finances, your credit history, the amount you're requesting, and how you plan to use the money. Remember that applying for a loan doesn't guarantee approval. The lender will evaluate your application based on its own requirements as well as the requirements of the particular loan program. 10. Compare the Terms If you receive multiple financing offers, don't automatically choose the one with the lowest advertised interest rate. Look at the entire cost of the loan. Consider:
The SBA recommends asking lenders about interest rates, minimum credit scores, cash flow requirements, prepayment penalties, grace periods, and other qualifying factors. A loan with a slightly lower interest rate isn't necessarily the best option if it has other terms that don't work well for your business. Make sure you understand the agreement before you sign it. 11. What If You Don't Qualify? Being turned down for a loan doesn't necessarily mean you can't get financing in the future. A lender may be able to tell you what prevented approval. Perhaps your credit needs improvement, your business doesn't have enough operating history, your cash flow isn't strong enough yet, or you need to provide more documentation. That information can help you identify what to work on before applying again. There may also be alternative financing options worth exploring, including SBA microloans, community-based lenders, and New York State financing programs. The important thing is not to assume that one "no" means there are no options. You Don't Have to Navigate the Process Alone Get stuck on any of these steps? That's where the Finger Lakes SBDC comes in. Our advisors can help you understand your financing options, prepare your financials, strengthen your business plan, and get ready to meet with a lender. We have many financial partners willing to meet with you and discuss their role on your business team. Best of all, SBDC advising is free. Visit our website to schedule a free advising appointment today: https://www.sbdcbrockport.org/ [1] https://www.sba.gov/loans/7a-loans/ [2] https://www.sba.gov/loans/504-loans/ [3] https://www.sba.gov/loans/microloans/ [4] https://www.sba.gov/loans/lender-match/ [5] https://esd.ny.gov/sites/default/files/media/document/Small-Business-Revolving-Loan-Fund-Flyer-11-13-23.pdf [6] https://esd.ny.gov/sites/default/files/media/document/2025-MWBE-Forum-Connections-Guidebook.pdf  Starting a business is exciting, but it can also be overwhelming. There are a lot of questions to answer before you open your doors: Is there a market for your idea? How much will it cost? What type of business should you form? Do you need a license? How will you pay for everything?
You don’t have to answer all of those questions at once. While every business is different, there are some common steps that can help you move from an idea to an operating business. Here’s an overview of what you should consider when starting a business in Rochester, New York. 1. Start With Your Idea Before you start filing paperwork, take some time to understand your business idea. Who are your customers? What problem does your business solve? Who are your competitors? What makes your business different? The U.S. Small Business Administration recommends starting with market research and competitive analysis1. Market research can help you understand potential customers and their needs, while competitive analysis can help you understand the businesses you’re competing with and identify opportunities to stand out. This research can help you determine whether there is a market for your product or service and give you a better idea of what it will take to compete. 2. Write a Business Plan Once you’ve researched your idea and your market, it’s time to put your plans on paper. A business plan is a roadmap for starting and managing your business. It can help you think through your company’s goals, customers, competition, products or services, marketing strategy, management, and finances. A traditional business plan may include an executive summary, company description, market analysis, organization and management, products or services, marketing and sales, funding requests, and financial projections. The SBA also recognizes a lean startup plan, which focuses on the most important parts of your business and can be much shorter. A business plan isn’t only useful when you’re starting out. It can also help demonstrate to lenders and investors that you’ve thought carefully about your business and its financial future. Here is an example of a traditional business plan and a lean startup plan. 3. Calculate Your Startup Costs Before you open your doors, you’ll probably have bills to pay. Your startup costs will depend on the type of business you’re starting. A brick-and-mortar business, an online business, and a service-based business may have very different expenses. Some common startup costs include:
You can also calculate your break-even point—the point at which your total revenue equals your total costs. Understanding your break-even point can help you determine how many products or services you’ll need to sell before your business begins generating a profit. 4. Figure Out How You’ll Fund Your Business Once you understand your startup costs, you’ll have a better idea of how much funding you’ll need. There are several ways to fund a business. Self-funding allows you to maintain control over your business, but it also means taking on more of the financial risk yourself. Loans can allow you to maintain ownership while providing capital to start or expand your business. Banks and credit unions may consider your business plan, expenses, financial projections, credit history, and other factors when evaluating an application. Investors may provide capital in exchange for an ownership stake in your business and, in some cases, a role in decision-making. Crowdfunding allows businesses to raise money from a large number of people, often through an online platform. The right option depends on your business and your financial situation. 5. Choose Your Business Structure One of the most important decisions you’ll make is choosing your business structure. New York recognizes several types of business structures2, including:
Each structure has different legal and tax requirements. For example, a sole proprietorship is relatively simple to form and gives the owner complete control, but the business and the owner are not separate legal entities. An LLC can provide liability protection for its owners while offering flexibility in how the business is taxed and managed. Corporations are separate legal entities with their own requirements. There isn’t one structure that’s right for every business. Your choice can have important legal and tax consequences, so you may want to consult an attorney or tax professional about your particular situation. 6. Choose Your Business Name Your business name is an important part of your brand, but there are also legal considerations to keep in mind. New York distinguishes between a business’s legal entity name and an assumed name, commonly called a DBA. If you intend to operate under a name other than your legal business name, you may need to register an assumed name. The requirements depend on your business structure. It’s also helpful to understand that a DBA, trademark, entity name, and domain name are not the same thing. A DBA allows you to operate under another name, but it does not provide the same type of legal protection as a trademark. 7. Register Your Business Once you’ve decided on your business structure and name, you’ll need to complete the appropriate registration. How and where you register depends on your business structure and location. New York State’s Business Express is a useful starting point for determining which requirements apply to your business. New York’s official startup guide recommends using Business Express to help navigate the requirements and regulations involved in starting a business. Visit New York Business Express Remember that starting a business in New York can involve both state and local government requirements. 8. Get Your Federal and State Tax IDs Your business may need tax identification numbers at both the federal and state level. A federal Employer Identification Number (EIN) is issued by the IRS. An EIN may be needed for purposes such as filing taxes, opening a business bank account, applying for a loan, or meeting other business requirements. You may also have New York State tax registration requirements depending on your business and its activities. For example, if your business intends to sell taxable goods or services, New York State says you should apply for a Certificate of Authority from the Department of Taxation and Finance. Apply for an EIN through the IRS 9. Find Out What Licenses and Permits You Need Not every business needs the same licenses and permits. Your requirements may depend on the type of business you’re operating, what you’re selling or doing, and where you’re located. New York State recommends using Business Express to identify the licenses and permits that may apply to your business. And because you’re starting a business in Rochester, it’s important to remember that local requirements may apply in addition to state requirements. The City of Rochester provides information about local, state, and federal programs and resources for businesses, including information related to business support and development3. If you’re not sure what your business needs, don’t assume. Take the time to find out before you begin operating. 10. Get the Right InsuranceInsurance is another area where requirements vary depending on your business. New York State says that, depending on factors including your business structure, location, and number of employees, your business may need coverage such as:
You may also want other types of insurance depending on your business and industry. Because insurance requirements can be complicated, it’s worth discussing your specific situation with a qualified insurance professional. 11. Open a Business Bank Account Once you’ve established your business, it’s important to set up a system for managing your finances. The SBA recommends opening a business bank account as part of the process of launching your business. You’ll also want to think about bookkeeping, accounting, tracking your income and expenses, and preparing for your tax obligations. Keeping your business finances organized from the beginning can make it much easier to understand how your business is performing. 12. Get Ready to Operate Once the paperwork is done, the real work begins. You’ll need to find customers, market your business, manage your finances, and continue making decisions about how to operate and grow. The SBA’s business guide includes resources covering everything from managing finances and hiring employees to marketing, sales, taxes, legal compliance, and business growth. But you don’t have to learn everything before you get started. You Don’t Have to Do It Alone Starting a business can feel like a lot to take on. There are decisions to make, paperwork to complete, numbers to understand, and questions that don’t always have straightforward answers. Fortunately, Rochester-area entrepreneurs have access to a number of organizations and resources that can help. The City of Rochester maintains a directory of local, county, state, and federal programs available to businesses, including financing, grants, technical assistance, market research, and other resources. And, of course, that’s where we come in. The Finger Lakes Small Business Development Center, hosted by SUNY Brockport, provides business advice and consulting to entrepreneurs and small-business owners throughout the region. Whether you’re still working on an idea, preparing to launch, or trying to figure out what comes next, you don’t have to have everything figured out before reaching out. If you’re thinking about starting a business in Rochester or the surrounding region, we’re here to help. Visit the Finger Lakes SBDC to learn more and connect with our office 1 https://www.sba.gov/counseling/ 2 https://dos.ny.gov/types-businesses-operating-new-york-state 3 https://www.cityofrochester.gov/departments/neighborhood-and-business-development/business-services-city-state-and-federal-programs |
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The Small Business Development Center at SUNY Brockport is part of a partnership program with the U.S Small Business Administration and administered by the State University of New York. Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the U.S. Small Business Administration. All U.S. Small Business Administration funded programs are extended to the public on a nondiscriminatory basis.
