Lexington, KY - While some entrepreneurs are hunkering down, cutting expenses and trimming workforce, others are embracing the opportunities this downturn offers.
"2009 has been a tough go," said Michael Cox, Pieratt's marketing director. "We've worked hard to streamline operations, get competitive offers from our vendors, reduce advertising and refigure how to cut costs, but at the same time, we've been looking to expand for some time."
The downturn in real estate prices provided the opportunity they needed in Richmond Centre, at the EKU exit, off I-75.
"We'd been considering the Richmond area for some time, and finding the 25,500-square-foot showroom at the right price and the right location was a boon," he said.
Richmond Centre, the largest retail development between Lexington and Knoxville, Tenn., is designed to serve as a premier regional shopping and entertainment venue for south-central Kentucky. This new Pieratt's location - the company's first outside Fayette County - will include name-brand home appliances, high-definition televisions, home theater systems, mattresses, furniture and home accessories. Opening in the spring of 2010, the store will create between 12 and 15 new jobs in the area.
With financing for the Pieratt expansion coming from family members, employees and business partners, this 63-year-old family business continues to hold its own against national chains.
"We're looking forward to a great year," Cox said.
Rincon Mexican Restaurant owners Sergio Budar and Veronica Salas-Budar found their opportunity in a new shopping center, Harrod's Village, near Murray's on Harrodsburg Road.
"Our customers keep us busy and hopeful," Budar said.
Salas-Budar is part of the original family that started the Rincon Mexican Restaurants, and her parents own the Euclid operation.
"Customers at our Euclid restaurant kept telling us they wanted something on the south side," said Luis Castilo, the restaurant's manager. "It's a busy, exciting time for us."
It was late 1992 when Salas-Budar's three brothers opened their first restaurant. After three years of working on the Florida fields, picking oranges and strawberries, and working in restaurants across Georgia and Tennessee, they launched their own enterprise. Their parents supported them with money and encouragement, often selling their own belongings to enable the brothers to build the business.
Like others, Sergio Budar saw a decline in business in 2009.
"We had to cut hours for employees and reduce our advertising costs," he said. "People were cooking more at home; sales were down. But we always had optimism in our minds."
They were confident that their prayers, hard work and quality Mexican food would get them through. They used their own savings, as well as investments from friends and a line of credit, to get through the hard year.
The Budars expect to employ 17-25 new employees at the Harrodsburg Road location, offering the same menu as that in the other locations. "Our family is very committed to the Lexington area," he said. "I've been here 10 years - my wife, 13 years."
Trucks bearing the sign for Fayette Heating & Air
have been making their rounds all around town this winter. What the signs don't reveal, however, is that the company offers much more than HVAC solutions.
"We've listened to our customers and expanded our business lines around what they tell us," said Gwen Vujakovich, CEO of Fayette Heating and Air.
In 2008, Fayette Heating and Air acquired Lexington Windows and Siding, and the following year, they added a plumbing division, now called H2O Maestro.
"We're into complete home solutions," Vujakovich said. "Since we're already in the customer's home, doing HVAC work, they trust us. Why not do the plumbing or help them seal their homes with new windows and siding?"
Anther division, Energy Masters, offers an inspection of doors and windows, enabling customers to make their homes more energy efficient.
"We used to refer customers for these services, but it makes sense to increase the business lines so that we have a holistic approach to the home. Why buy a new HVAC system and not seal the heat in? What about the air quality in your home? The systems you install in your home can create cleaner air and water for your family."
People tend to buy in clusters, Vujakovich said, and that is what Fayette Heating & Air offers, along with lifetime warranties for their replacements.
Since 2009, the company has increased staff by one-third, adding nearly 30 new positions, and the company is outfitting 2,000 square feet of space dedicated to training personnel.
"We're hiring journeymen, master plumbers, HVAC specialists and sales people in 2010. I especially hope to have more women in the sales force this year," Vujakovich said.
Janet Steele Holloway is co-founder/executive director of Women Leading Kentucky and a freelance writer for womenentrepreneur.com and Business Lexington.