Recent headlines about local and national economic turmoil have left many of you wondering how this will affect your small business. It may surprise you that a lot depends on you.
Locally, the economic and business news hasn’t been great lately.
Clearly there is uneasiness out there — the result of the dropping stock market, declining home values and a lack of confidence in our financial systems. Credit has seemingly dried up and the average consumer is holding on to whatever money they have left.
Duncan Milloy, one of Everett Community College’s entrepreneurship instructors and a small-business consultant serving clients in Snohomish and King counties, said that many of the small-business owners he works with tell him that the slowing economy has significantly affected their sales.
“Retailers of non-essential items have been especially hard hit, as nervous consumers cut back on discretionary spending. More browsing and less purchasing is being done,” Milloy said.
Louise Stanton-Masten, president and CEO of the Everett Area Chamber of Commerce, agreed.
“We are hearing from our members that they are feeling the impact, especially in the retail, restaurant and auto sectors,” she said.
Milloy also sees the pace of business closures increasing, with fewer new businesses being formed to backfill the vacancies.
Debbie Emge, the city of Snohomish’s economic development manager, is seeing similar struggles in her town.
“In Snohomish the small businesses are definitely being affected by the economic turmoil,” Emge said. “Unfortunately, I am aware of a couple of businesses that have decided to close or are in the process of evaluating their options. Our retailers are focusing on the upcoming holiday shopping season and trying to prepare their stores to be responsive to the customer.”
Milloy is recommending to his clients that while it may seem counter-intuitive, it is sensible for many small businesses to increase their marketing efforts in this challenging economic climate.
“By ramping up their efforts to generate sales, strong players will be able to leapfrog past their weaker competitors and increase market share. Cost cuts are best focused on non-customer facing activities,” Milloy said. “Renegotiating lease terms, reducing inventory carrying costs and making more efficient use of company vehicles should be pursued before trimming anything that would diminish a customer’s experience.”
Stanton-Masten and Emge are also emphasizing playing offense with a strong marketing plan to the small-business communities in Everett and Snohomish.
Stanton-Masten has noticed a 30-percent increase in attendance the last few months at the chamber’s Good Morning Everett networking breakfast.
“Our chamber members are taking advantage of an opportunity to make connections with other business owners and promote their business. We are also stressing being creative with your marketing dollars so you can take advantage of the opportunities in this down market,” Stanton-Masten said.
“Small businesses should stay connected to their customers by informing them how their stores can help ease customers’ pressures by offering them additional helpful perks, such as free shipping or gift wrapping, coupons and special offers,” Emge said. “Merchants need to keep a positive attitude and remember to take time to enjoy their customers and employees.”
Emge said some retailers have formed alliances and are offering one-stop shopping experiences.
“Snohomish has also established a ‘shop and dine local’ campaign that reminds everyone that by doing so they are supporting hometown jobs, businesses, services, non-profits and home values through the recirculation of funds within the community,” Emge said.
For our next column, we’d like to solicit comments from local small-business owners about how the economy is affecting your business and strategies you are implementing to weather the storm. Please send your thoughts and ideas to entrepreneurship@everettcc.edu.
Pat Sisneros is the Associate Vice President of Administrative Services at Everett Community College. Lynne Munoz is the director of EvCC’s School of Business Design.
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