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Rural Small Business

small business move homeSome small business owners are choosing to save money and in some cases save their businesses by moving their offices home, according to this article in the Dallas Morning News.

“We’re seeing probably twice as many businesses doing that compared to a year ago,” says George Cloutier, founder and chief executive officer of American Management Services, an Orlando, Fla.-based consultant to small businesses.

The article discusses the unique difficulties a small business owner may encounter moving their business to their home, including business image, zoning and tax issues, employee perceptions, moving costs and the distractions that must be managed when working within your home and family environment.

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rural small business newsHere are a few interesting blogs and online articles published this week that relate to Rural Small Business, ending March 21, 2009:

According to agricultural executives, the U.S. rural economy is coping with the global recession better than other sectors and this is due to “steady demand for agricultural products, stable land prices and healthy credit lines for farmers.”

“When you consider the impact to the rest of the economy, agriculture has (had) very little impact in comparison,” said Jim Borel, group vice president, agriculture, of DuPont Co. “Fundamentally, food demand is there. People need to eat, so that helps to stabilize things.” Prices for agricultural commodities have fallen sharply from highs reached during the summer of 2008 but are still well above historical trends.

This allows producers to maintain profits even as the global economy has soured.

“We have found that food demand, grain demand, oilseed demand tends to be pretty insensitive to what the global economy is doing,” said Mark Palmquist, chief operating officer at CHS Inc, an energy, grains and food company.

“It is really driven by demographics. We keep adding mouths to feed.”

The 41-member strong Congressional Rural Caucus has asked President Obama to create a White House Office of Rural Affairs, if Obama creates a White House Office of Urban Affairs, as expected. Because of the recession, lawmakers are worried that concerns specific to Rural America will be overlooked.

“There are so many issues that cut differently in rural American than urban America,” said Chuck Hassebrook, executive director of the Center for Rural Affairs (located, appropriately, in Lyons, Neb., pop. 963).

A much higher percentage of the rural workforce is self-employed or works for a small business, Hassebrook noted. For one thing, that means a national healthcare plan which doesn’t reach down to this level won’t be effective in rural areas which have some of the biggest healthcare problems.

The traditional conception of the country is that of a healthier alternative to cities, but with fewer hospitals, doctors and recreational facilities, Hassebrook said, “the reality is we’re less fit.”

The New York Times has taken a good, hard look at issues related to rural broadband over the last couple weeks. Letters to the Editor and online comments in response to the stories make for an interesting read in The Broadband Gap: Your Take on the Issue.

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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.”

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rural business newsHere are a few interesting blogs and online articles published this week that relate to Rural Small Business, ending March 7, 2009:

I’m struck by the theme I see among so many of this week’s news stories. They seem to all be about -

Values Clarification.

Our economic worries are prompting many of us to take time and think, to explore our personal attitudes and clarify our values. When there’s less money to go around, what do we choose to spend it on? That can only be determined by thinking through answers to some tough questions, like what’s important to you? What are your priorities - for yourself, your family, your business, your community? What are you willing to give up, and what are you determined to preserve and protect?

Some of us are choosing to make changes in our small businesses, while other business owners are choosing to pursue changes in their rural communities so that their new business directions can be pursued. Even large social institutions and governmental agencies are getting in on the process, clarifying their values and communicating what’s important to them.

Small Business Owners

As small business owners try to cope with economic pain, they are forced to make tough choices and achieve a new balance between home and work. If they need to cut staff, they have to increase their own hours. Perhaps some of your customers still want to purchase your services, but can’t afford as much or to buy as often as they used to. But when a small business owner is literally the only game in town, the need to get permission from your community before making a change in your business can be particularly tough, as it apparently is for Jose Ascua and his wife, outside Salt Lake City, Utah:

Ascua opens the town’s only retail outlet, In Solo Town, at 6 a.m. every day and closes around 9 p.m., or whenever the last customer leaves. He has a hot-breakfast and dinner menu, and stocks groceries and dry goods that residents might need to avoid a last-minute drive to Heber City, 15 miles north along a mountainous highway with no services in between.

When Ascua, 55, started falling behind on his bills, he asked the town to grant him a license to sell six-packs of beer, one of the items customers repeatedly requested. But by a unanimous vote last month, Wallsburg council members turned down a beer permit, a decision that Ascua says could put him out of business.

“I don’t know what else I can do,” Ascua said, while unlocking his store to cook chicken fajitas for two diners after the Thursday night town meeting at which his fate was cast. He has no employees, works more than 100 hours each week and he closes only on Christmas Day and New Year’s Day.

Small Business Owners and Communities

The choice to sell alcoholic beverages or not is still a controversial one in many rural communities, including my own. Despite loss of almost all manufacturing industries and struggling with a high school dropout rate of more than 40%, some people in Mitchell County, North Carolina like things just the way they are. They’re worried that the tourists who might enjoy a glass of wine - at the hotels and restaurants that might be built if alcohol was legal - might ruin everything for us.

Ninety-eight of North Carolina’s 100 counties allow alcohol, including those that surround Mitchell County, meaning that residents who want to purchase alcohol can literally drive 100 feet into the next county, buy it, and then drive back home. Mitchell County is one of just two dry counties still holding the brown bag.

The issue comes up every year or two, and from the full page ad sponsored by just about every church in town that appeared in this week’s newspaper, it’s going to be another tough vote. The battle between those who vote ‘yes’ and those who vote ‘no,’ is as much about trying to keep tourists away as it is about alcoholism, domestic abuse, and the Bible.

Of course, there are always other solutions to a rural community’s economic worries, sometimes particularly creative ones.

As an example - You can get a bottomless cup of coffee at a topless cafe by stopping by the Grand View Coffee Shop in Vassalboro, Maine, a community of 4500 residents. Seriously. The fifteen newly hired waitstaff (10 women, five men) say they are happy to have a job, since most were laid off in recent months.

Talk about values clarification.

It’s not just rural business owners and communities thinking through their priorities and what’s important to them.

The Catholic Church

For Catholics, it’s Lent, the season of sacrifice and repentance - which somehow seems especially relevant this year given all our financial concerns and cutbacks. It’s back to one very important question: What are you willing to give up? Although he was initially thrilled with social networking and used it himself to send out prayer requests when he traveled, the Pope has changed his mind. He is now asking Catholics to give up social networking sites and social media technology for Lent. Facebook, Twitter, MySpace, iPhones, the works. And he did so making an address on YouTube.

And last but not least -

Government Agencies

Even government agencies are rethinking their priorities, and the relationships they are going to have with their customers.

The rural community in Williamsville, Virginia may lose its post office. Apparently, the US Post Office will close post offices and abandon rural towns entirely, if buildings leased to house them can’t be renegotiated. This situation isn’t really new -they were mentioned when the Post Office first announced the possibility of reducing its delivery days back in January.

But driving an hour and half to pick up your mail?

And the Small Business Administration (SBA) has even created a FORUM for the very first time to connect with small business owners across the country. It is believed to be the first governmental sponsored online community built for small business owners.

What’s most important to you? What are you willing to give up during tough economic times? And what aspects of your business are you determined to preserve and protect?

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

The statistics this week describe huge job losses in rural America.

From December 2007 through November 2008, rural counties throughout the country lost a total of 15,000 jobs.

But in December 2008 alone, rural America lost 297,000 jobs. The highest unemployment rates were in Michigan, where 20 of the 50 rural counties in the US with the highest unemployment rates in that state alone.

You can view a chart that details unemployment rates for December 2008 in all fifty states at Job Losses Explode in Rural America.

Whether you’re looking for additional sources of revenue for your existing business or to build new skills for the future, you may want to take a look at how small business owners are using social media to network.

Dipping Your Toe Into the Social Media Pond by Mark Hayward suggests ways to get started exploring these new tools ranging from blogs to Twitter, Facebook, Flickr and others, and identifies some important benefits for small business owners who use them:

“Preferably, small business owners would start to use social media before a financial crisis hits, but no matter what your current situation, just ‘getting started’ today (not tomorrow!) is the most important thing.

The beauty of leveraging all of this social media ‘stuff’ for business promotion is; it does not have to be expensive, complicated, or overly time consuming.

In fact, it has been my experience, through my own small biz D.I.Y. social media activities that over time it can provide such benefits as:

* improved brand awareness
* increased search engine rankings
* quantifiable cost savings and increased profits
* enhanced networking opportunities
* the chance to help others and continue learning”

Learning to use social media to broaden your network is an important skill. But you may also want to consider new ways to network in person with those in your rural business community by checking out several articles this week discussing the emerging trend of ‘Co-Working’.

Co-working is when independent contractors, freelancers or professionals who usually work at home or on-the-road choose to ‘work together’ in a setting that combines separate work space with opportunities for social interaction.

The amenities shared in a physical setting like conference rooms, kitchens, office equipment and sometimes common support staff all provide opportunities for support, collaboration and synergy, rather than isolation.

You can read more about ‘co-working’ in “Where the Coffee Shop Meets the Cubicle”.

These new co-working models are significantly different from business incubators and executive suites that typically share physical space to minimize expenses, but still reinforce separation of each business and provide little to no social opportunities.

Who participates in co-working spaces is also different. Space in business incubators has usually been assigned to businesses whose approved strategic plan and investor list make the business likely to grow and provide jobs for its local community.

In contrast, the co-working model is more flexible and open. It provides a net for those newly laid off or downsizing their business; for the entrepreneur working on a new idea; as well the established one-person business, perhaps a web entrepreneur who would like more connection to the real world, not just the virtual world.

The support and encouragement needed by entrepreneurs varies person to person, as well as by age and generation. Yet the approach to entrepreneurial support in most of our rural communities is highly traditional, primarily focusing on incubators and obtaining investing angels.

More rural communities are looking for ways to retain their teachers and other professionals who feel isolated after moving to rural areas (and move within a year or two). And unfortunately we’re losing too many of our entrepreneurs too. If we want Gen Y to feel comfortable building businesses in our rural communities, odds are we need to consider creating some ‘third places’ or entrepreneurial nests that will foster business creativity as well as social belonging in ways they want and need.

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