Lexington, KY - Can we finally start loosening the financial belts we tightened two and a half years ago? If you're like these small-business owners, the answer is "not really." Certainly not by an entire notch.
Rhonda Bartlett, president RB Design Studio, LLC:
Since I started my business back in 1998, I have always been very careful with spending.
My decision-making skills about spending have been honed during the tough economic times. I did find myself carefully considering costs of everything from office copy paper, pens, etc., more often. I would catch sales, as in "back to school," where those items can be found for excellent prices, and I would buy a little extra at that time. I have a business credit card, but I always pay off the balance when the bill comes. I do not like paying finance charges and bank fees. I prefer to pay with cash. I intend to keep doing what I have been doing all along: be careful what I spend, always resist impulse purchases (or at least allow enough time to sufficiently consider whether or not that item is truly needed) and buy wisely after investigating whether the item is a good value for my dollars. I intend to keep striving to be as economical as possible in both my business and my personal life.
Nick Esselman, president/owner New Horizons Computers:
We looked at every expense, line by line, and found the bulk of savings in phone and data plans. The contracts had met term and were running month-to-month based on pricing models from prior to 2005. Prices were as much as 35 percent higher for less service. I would strongly suggest shopping any contract that has met term, including phone, data, office equipment and vending machines. On a personal level, I am a strong advocate of shopping insurance (car, home, life, umbrella, etc.) every two years. It is also important to ensure that any advertising you are doing has measurable results - using alternate phone numbers, codes, websites - because we found many areas of advertisement yielded zero results. We are still very cautious discretionary spenders - however, employee compensation plans have all been adjusted for the improving business conditions in 2011. Austerity has taught us to look beyond the immediate month and to improve our forecasting. There is more consultation within our team when making decisions about advertising and discretionary spending.
Michelle Lowe, owner Ideally Done:
I started my business in June 2009 and did not have any startup investment at the onset. Being a corporate event planner, you have to be creative, flexible and budget-conscious for your clients. The market does seem to be getting better, but corporations are still not going to spend money on extra "frill" for no particular reason. I think practical, simple, more streamlined events are going to remain the trend. A great example would be the royal wedding - the decorations were kept to a minimum, with simple, undecorated green trees lining the aisle. It was elegant without looking overdone. Being the mom of two small children (3Ω and 4 months) I have definitely altered spending habits personally as well as professionally. I think my austerity will be somewhat difficult to break since I have constantly been on a tight budget professionally from the onset, but I would like to invest for growth as my vision for Ideally Done continues to blossom and thrive financially.
Janie Olmstead, owner Images Model & Talent Agency:
The economy has definitely affected my small business. When income is down, spending is down. Normally a sizable amount of our expenditures is allocated to advertising. Now we try to figure inexpensive ways to keep Images in the public eye. Our website reaches so many interested people, both young and old. We answer e-mails immediately. We are also on Facebook. We try to become visible at fairs, community and charity fashion events, and we donate modeling scholarships for silent auctions. I maintain active membership in several professional organizations, including the Miss Kentucky Alumni Association, NAWBO, BBB, PWF, IMTA and the Fashion Collaborative Group. And we never turn down requests for speaking seminars or donating modeling scholarships. We have cut phone book advertising, which saves a bundle. My first goal when I began Images was for it to be a household name. I believe we've reached that goal, so word of mouth and satisfied clients are our best form of advertising.
Kathie Stamps posts grammar tips at www.facebook.stampscommunications.com.