Taking a chance

At least 900 new businesses opened in Clark and Cowlitz counties in the last six months, facing the double challenge of turning a first profit while consumer confidence lags.

Thanks to increased activity in Vancouver and Longview, that’s up about 27 percent from April through October 2007, when the nation’s economic woes were just beginning. Aside from Castle Rock, which is up 75 percent, new business activity in smaller cities is down about 31 percent.

For large retail operations, such as Goodwill Industries, JCPenney, Lowe’s and The Olive Garden, bringing a store to the area was the result of several months, if not years, of preparation. But for some smaller businesses, the slow economy has been a prompt to open up shop or expand.

Growth follows growth

Portland-based Goodwill Industries of the Columbia-Willamette opened a Battle Ground thrift outlet Sept. 25 after at least three years of preparation and is planning two more openings.

The area’s population growth was a draw for the retailer, said Dale Emanuel, media relations manager.

“We go where services are needed,” she said. “People shop usually within a 3- to 5-mile radius of their homes.”

Goodwill might have an advantage during slow times because it targets thrifty shoppers.

The 38 Goodwill stores in the Vancouver-Portland metro area sell more than any Goodwill chain in the nation, and more than any thrift chain in the Pacific Northwest. That includes Target, Wal-Mart, Ross and Marshalls, Emanuel said.

In Clark County, the nonprofit’s sales are up 5.6 percent from fall 2007.

A means to expand

Shannon Caicedo, owner of Vancouver-based The Futon Store, was able to open a second location at Westfield Vancouver Mall Sept. 26 because the mall offered lower short-term leasing rates to attract businesses as tenants vacate.

“There is no way I could have afforded to come into the mall otherwise,” she said.

Under The Futon Store’s lease agreement, the store would have to vacate within 30 days if another company wants its space long-term.

“As long as I can, and (as long as) they want me here, I plan on staying,” Caicedo said.

To keep sales up, Caicedo targets mid-range pricing and pays sales tax for her customers.

“I’m not going to say it’s not scary, but I’ve got high hopes and there’s definitely the traffic,” she said.

New frontiers

Mickey Lane launched liquidgratitude.com Aug. 30 after she took a severance package from a college publishing company in December.

She and her husband began plans for the web-based specialty gift business in the spring, but grew anxious as gas prices rose and consumer confidence fell.

“Things kept spiraling downward,” Lane said. “It forced us to be more frugal and revisit our business plan.”

Lane said she had sales “right out of the gate” and hopes to recoup start-up costs within eight months, banking on her low overhead and the consumer appeal of online shopping.

“People always give gifts,” she said. “I don’t think that will ever change So if we can provide them with value and a good user experience, I think that will help.”

All in the planning

Trevor Bryant, franchisee of Max Muscle Sports Nutrition in Vancouver, is resting on savings and a cautious business plan to get him through.

He and his wife, Tracy, began plans for the franchise in Nov. 2007 and opened Aug. 25.

The store has beaten the Bryants’ expectations from day one – performing 50 percent better than projections, he said.

“I had planned on a good six months of not needing to make money,” Bryant said.

The couple also benefit as franchisees, he said, because “you’re getting valuable information from someone who’s figured out the right way to do it.”

Filling a need

Jennifer Rieman and her mother, Karen Scott, opened Café Jennifer in Battle Ground Aug. 5 after less than four months of preparation.

“Everything just fell into place and we said we’d go for it,” Rieman said. “It was a gamble for sure at this time in the economy, but we figured if anyone could do it, we could do it.”

The duo are first-time owners, but have worked in the restaurant industry for 47 years combined.

Business at the family dining spot has been up 20 percent over projections. And in a town that’s sparse on dining options, Rieman doesn’t anticipate things slowing down.

She sees a definite lag, though, when bad economic news hits the papers.

“If it’s on the front page of the paper, you’re dead that day. But by lunch it’s picked back up,” she said.

WHY OPEN OR EXPANDNOW?

“I really feel my business will be a little isolated because my price points are so low. People are going to eliminate the $20 meal before the $3 taco…The hardest thing is keeping labor costs under control.”

—Scott Holzinger, owner of Woody’s Tacos, Vancouver

“When times get tough, people will indulge themselves in the things they really want…It just seems pointless not to have a retail presence.”

—Georgann Anderson, co-owner of Oh Fudge! and Daisy Maiz Kettle Corn, Vancouver

“This is a slow month for us because of the season, economy or not. I have to wait until next March until I can tell…The first four days we opened we had 700 clients.” 

—Amy Lam, owner of LaBelle Nails, Vancouver

NEW BUSINESS LICENSES COMPARISON

April through October — 2007/2008

Vancouver — 308/492

Battle Ground — 59/46

La Center — 6/2

Longview — 274/296

Kelso — 57/45

Castle Rock — 12/21

Year-to-year data was not available for Woodland, Ridgefield, Amboy, Camas-Washougal or Yacolt.

Source: VBJ research

 

Charity Thompson can be reached at cthompson@vbjusa.com.

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