Posts tagged as:

rural business

rural business fixed costsAn interesting read today in The New York Times, in “Nothing is Set in Stone, So Renegotiate:”

“Maybe your fixed costs are not as fixed you think.

With the recession continuing in full force, you may find that everyone — from the company that supplies your office with water to your neighborhood banker — is willing to renegotiate their existing arrangements with you to keep your business.

Closely analyze every contract you have and look for places where you think you can get a cost reduction. Then ask for better terms.”

The article provides several ideas along with additional web resources to help you prepare for discussions with landlords and others with whom you have a financial relationship or partnership. One specific area, negotiating to get lower rent, is especially timely:

“Tenants frequently have the upper hand in a renegotiation scenario,” write the people at Gaebler.com, a business incubator and holding company. “Unless the local commercial real estate market is red hot, landlords are hesitant to risk incurring an extended vacancy period by allowing the space to turn over.”

You can certainly ask for an immediate rent reduction, citing the tough economic conditions you face. The landlord is going to be more willing to grant it, however, if you agree to extend your lease at the new, lower terms.

“The best time to renegotiate a lease is six months to a year before your current lease expires. If the renegotiation fails, you will at least have enough time to properly consider alternative locations.”

As the author says - it may look and sound simple, but renegotiation of financial matters is rarely easy. Just sometimes necessary.

{ 0 comments }

rural small business newsHere are a few interesting blogs and online articles published this week that relate to Rural Small Business, ending March 28, 2009:

If you’re looking for an update on how the recession’s going this week, you’ve got several resources to take a look at.

To start with you can take a look at an article online at Forbes Magazine called The Recovery Has Arrived.

Although the author finds many signs of a recovering economy, he thinks these signals are really due to us just adapting to the bad situation and making the best of it - not to anything improving:

“The news of course has been horrible for months, but the numbers aren’t showing further deterioration; that means the economy has absorbed the bad news and has largely adjusted.”

Apparently the industries benefitting from our current economic conditions include road construction, bridge building, and health care, whereas industries associated with luxury living - equine businesses, landscape turf management, and the recreational vehicle industry with motor boats and Winnebagos are having the worst time. Day Care operations are also struggling in communities where they are viewed by some customers as ‘optional’ and not lifestyle requirements.

Not surprisingly, pawnshops report great sales with some up 60% as desparate people hock whatever they need to sell, and shoe repair shops are up 40% and find increased interest in their craft among younger generation.

Is Regulating the Credit Card Industry Good or Bad for Small Business? Not surprisingly, small business owners have pretty strong feelings on the issue as they endure increases in transaction fees that are supposedly needed to protect them against fraudulent transactions, but then charged for those transactions nonetheless. Small businesses also report that their credit limits are being drastically reduced, interest rates increased for no apparent reason, and accounts suddenly closed.

A new 34-page report by the Small Business and Entrepreneurship Council argues against government regulation of the credit card industry, claiming that it ultimately hurts small businesses, by making it harder for card issuers to stay competitive and offer the most flexible terms and best rates to businesses. The report can be downloaded here.

The rural economy has held strong over the last few months and appeared to be less affected than the overall national economy. However, in January apparently job losses in rural America and exurban America were more severe than city job loss for the first time.

Unemployment may be rising but apparently rural stock prices are too, at least according to the ‘Yonder 40 Stock Index’ a group of forty stocks selected to reflect the rural economy. Regardless of the economy’s ups and downs, it’s important that we keep looking on the bright side as we were reminded just last month:

“The rural economy may be as nasty as rusted wire,
but, hey, you can always hunt.”

{ 0 comments }

Business as Art

by Karen Wylie

in Inspiration

rural business inspiration

“To open a shop is easy,
to keep it open is an art.”

 Chinese Proverb

{ 0 comments }

rural-business-tourism-fishingThe Great Lakes Cruising Coalition is working to get more cruise lines enjoying the Great Lakes, to pull into port and visit their small towns. One of their members posted estimates on the economic impact for each day a cruise ship visits.

With just two tourist vessels scheduling 12 stops in one city for 2009, the direct and indirect economic impact is estimated to be more than $523,000. That’s right - a half million dollars with one vessel in port for each of just twelve days:

“Working to bring the vessels here and keeping the operators satisfied takes a lot of effort and over 40 local businesses, many small operations, benefit economically. In fact, despite the vessels only being in port a total of 12 days, the financial impact spread across the tour operators, visitor attractions and vessel support services will create almost 2 full year equivilants of employment. While that doesn’t seem like a lot, every job counts.”

As owner of a rural business that values the tourists who visit us, I am always interested to see how tourism is promoted in other areas of the country. For me, this article also highlighted several other important factors that any tourism-oriented business can keep in mind:

(1) Create Partnerships

Working to create partnerships with tourism organizations and group tour operations makes good sense, because they can bring hundreds of people into an area at a time.

Focusing on your individual customer is always important. Events and ‘consumer shows’ where many chambers of commerce and regional tourism groups promote their geographical area usually focus on attracting two or three visitors at a time. But creating partnerships with tour groups that control where hundreds of people go, and the things they see when they visit, should be an important goal for tourism businesses.

Most large multi-million dollar regional attractions employ full time staff that specialize in the group tour market to promote their attraction. It’s not surprising that they receive the bulk of group tours. But large regional attractions aren’t the only places tourists get to see when they visit an area. And if the large attractions are always the centerpiece of tours, they can actually become a disencentive for visitors to return, simply because visitors aren’t excited about seeing again what they’ve already seen, not to mention they don’t want to pay the expensive admission tickets again!

Most new visitors to an area certainly want to see the large regional attractions on their first trip, but once they’re seen them, it’s the ’secondary’ attractions - like rural areas and the agritourism and artisans they often showcase - that bring tourists back to visit a second time and more.

(2) Analyze Access Networks

Analyzing how tour groups can most easily reach you is important to you as an individual business owner, even if only to provide directions and maps! But understanding the ‘network’ of other tourism oriented businesses and groups in your region will help you identify those to align with, so you can target communication with those travelers most effectively and inexpensively. Easy access to regional attractions and the support activities around it, as well as a region’s access to ports, airports and major highways can be leveraged to develop new opportunities for a region and its rural communities.

(3) Market The Rural Experience

More than ever, tourists are choosing where to visit based on the experiences they believe they will have, and NOT the destination itself. In fact, the number of travelers who value ‘experience seeking’ in their vacations is estimated to be seventy-five percent (75%).

As we all know, what rural America certainly can offer travelers are memorable experiences, so it seems we have what the majority of tourists want! We need to help our visitors better understand the experiences available to them, so they can select the experiences they would enjoy most. And if we understand better what they’re looking for, we can create rural experiences that better provide what our visitors need and want.

Helping tourists find their way around the back roads of a rural community is one strategy. Helping rural business owners figure out what to do once the tourists visit them is another.

Learning how to describe and market the experiences that visitors can enjoy when they visit rural America is our ultimate challenge.

It’s easy for any of us to take for granted what we have to offer to those who visit our rural communities on vacation. Each Summer I am reminded just how jaded I’ve become, and how I underestimate the power of each and every mile of a trip.

But then every time a child excitedly tells me about seeing their first cow, or when another child won’t get out of the car for fear of the golden retriever with the wagging tail on our front porch, I am reminded of how important the most simple rural experiences can be.

If you like what you’re reading, you can receive our blog updates via Feedburner or you can Subscribe to Backroads Business by Email.

{ 1 comment }

rural small business ownersHere are a few interesting blogs and online articles published this week that relate to Rural Small Business, ending March 14, 2009:

With all the talk about tough times these days, it’s interesting to note what products are doing well, and what some small rural towns and business owners are doing to keep things going.

American Popcorn, the makers of Jolly Time, survived the Great Depression and many other economic changes. But apparently one thing that is always up in a down economy is popcorn.

“The entire microwave popcorn category and home consumption of popcorn is up and it’s up because people are staying home and they’re entertaining themselves at home and when they do, they do entertain themselves with popcorn,” said Smith.

Smith says sales have gone up 10-percent overall from this time last year. And since their “Healthy Pop” was recently endorsed by Weight Watchers, sales of that kind of popcorn have jumped by 40-percent.

“Weight Watcher consumers are very loyal consumers so we’re really excited about this and we’ve seen healthy pop sales go up dramatically the last two months,” said Smith.

Maine Town Offers Small Business Loans

In this time of recession, many small businesses around the country are having difficulty getting start-up loans, or lines of credit to keep going. Not so in Madison, Maine, where the Town of Madison has come up with an unusual effort aimed at keeping local residents employed and perhaps even attracting a few new businesses.

“Madison economic development officer Joy Hickel, a former commercial banker, dreamed up the so-called Economic Development Incentive Program. Its funding comes from tax increment financing targeted for economic development. The loan is interest free, but must be paid back in six months. But there’s another incentive attached. Hickel says at the end of six months, the loan is credited $600 for every job created or retained for a Madison resident and $300 dollars for each employee who lives outside of town.

As far as anyone knows, it’s the first town in the state to offer loans to its small businesses. “I did want to make a difference in a business and I was looking at what potential we could do for actually developing the downtown area,” Hickel says. “I also, when I developed this program, was hoping that it would be enticing for some professional person that didn’t have quite enough funds to start up, maybe an optometrist or something like that, to come to Madison to see that their business would grow.”

The community role of small business continues during times of economic stress. Businesses are working hard just to keep their doors open, but it’s also a challenge to entertain customers and give them a reason to come back. In rural upstate South Carolina, small business owners rise to that challenge day after day by becoming involved in their community as described in “Small entertainment-based businesses are the heart and souls of communities:”

“The town of Anderson and the Upstate of South Carolina have always been a haven for the small business. While chain stores are and always will be the queen ants of the mound, the small, entertainment-driven businesses are the workers, striving to better themselves and the community.

It’s local helping local and that is what every community has to rely on now.

During an economic downturn like the entire country (and world) is going through now, many small business owners believe it is shops like theirs that will keep things going and keep people sane. After all, entertainment is what distracts us from the doldrums of daily life, and if we can get away from that life for a few hours, all the better.

“You go to a local business to meet and support friends,” said Mark Harris, 36, a Pendleton-area resident. “When you meet the owner and get to know them and their family, you want to make sure they are there when you want to go back again.”

The legacy of family business continues even when the next generation has no interest in continuing it, as described in “Business owner finds joy in running family store.”

“Like her mother before her, Betty McCall Smith hasn’t let advancing age stand in the way of her work.

Smith, 81, owns and operates McCalls, a shop at Reynolda Village that sells fine linens, gifts, maternity clothes, and baby and children’s wear. Despite heart problems that led to surgery two years ago, Smith works full time, six days a week. Her father, William McCall, founded the shop in downtown Winston-Salem in 1925.

The Winston-Salem Journal reported that Smith took full responsibility for McCalls in 1994, when her 89-year-old mother stepped down.

She greets her customers like old friends - and many of them are. When new customers come in, if they stay long enough, she finds out all about them.

Sandy Adair, a nurse clinician who met her when Smith had her heart surgery, said that Smith’s love for people and love for life comes through to everyone.”She treats everybody she meets - all of her customers - as if they are the most important people.” Adair, whose connection with Smith runs deep, has tried without success to keep Smith from working so hard. Adair has seen Smith in action at her shop.”

Related Posts with Thumbnails

{ 0 comments }

Technorati Tags: , , ,
Add to: | Technorati | Digg | del.icio.us | Yahoo | BlinkList | Spurl | reddit | Furl |