DATE: Monday, June 23, 1997                 TAG: 9706210536

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

TYPE: Q & A 

SOURCE: BY MELISSA GUNDEL, STAFF WRITER 

                                            LENGTH:   71 lines

FLEXIBILTY IS THE KEY TO BEACH FIRM'S LONGEVITY

The military's effort to close and realign bases turned out to be an opportunity for S3, a Virginia Beach-based firm. S3 started as a software firm in 1985, but the base-closing efforts caused it to shift focus to staffing services. Today, with offices in Chesapeake, Turnersville, N.J., and San Diego and 560 employees, it's one of the fastest growing firms in Virginia. S3 has popped up on Virginia Business Magazine's Fantastic 50, the Hampton Roads Chamber of Commerce's Rising 25, and Hispanic Business Magazine's 500 largest Hispanic-owned businesses. William Casanova, 52, a retired Navy lieutenant, is the founder and president.

Why did you change your company's focus?

Originally we started out as a software development company. In 1993, the vision changed for the company as a result of the BRAC commission. We found ourselves winning more contracts where the product or software was not the issue - we found ourselves winning contracts where the people were the product instead of the software being the product. We started staffing people to run the facility instead of just developing the products.

What is the company's main emphasis now?

We staff organizations and activities by seeking long-term commitments, whether those organizations are in the federal government, state government, city or private enterprise.

Why did you want to start your own company?

In the Navy, I was a telecommunications officer and I felt confident in what I had learned. I had had 20 years, I had good skills and I thought I could do it on my own.

What steps did you take to open the business?

I worked for two years with two other companies learning the services aspects of contracts. I then took all of my family's savings and placed them in the business and prayed to God that what I did was right. Additionally, my wife, Alma and two other stakeholders took part in the beginning. Ultimately, my wife and I were left to fend for ourselves. We continued to seek small financing to keep the beast going and we looked for small sub contracts and small work we could manage ourselves so we wouldn't have to have a large staff. At the same time, we applied for participation in the Small Business Administration 8(a) program (for disadvantaged businesses), and ultimately, the business started gaining contracts and growing as time went on.

What are your goals?

My goal is becoming a staffing services firm that can provide long-term outsourcing persons to large corporate clients and continue the massive attack on government contracts where government is privatizing or outsourcing. I would also like to go public.

What advice would you give to someone wanting to start a business?

You must have perseverence. You can't throw in the towel after the first failure and you have to learn to accept rejection. There are more opportunities today in particular for women and minorities to obtain financing and be successful at your own business. Also, stay informed. Most of that can come from establishing strategic liaisons with other companies that have been through all the rough times. Be honest with those you seek to do business with because the business relationship basics haven't changed - those things are integrity, commitment and quality of service. MEMO: If you have an idea or know of anyone in the business community

who would make an interesting business profile, please fax your ideas to

Melissa Gundel at 446-2531. ILLUSTRATION: William Casanova

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