Economic Realities ~ Small Business ~ Taking the next HIT!

The reality of the economy is starting to show in our commercial market.

Small business owners are resilient. They work more hours, they change faster to keep business going.

Small business owners drop employees to reduce payroll. Before they cut an employee they look for other cuts first. Most small business owners become friends with their employee because of the more hands-on approach. Small business owners cut personal items and services to meet existing payroll. They cut budgets to survive. As a last resort they cut staff.

It isn't a stimulus package that is going to keep their doors open. It is doing business and making the monthly payment on the building and equipment. Paying for inventory. No wonder the current administration's policies have not been accepted with open arms. It hits the core of small business owners.

This morning I received another call....a local small business owner wants to must sell his commercial property. At this point he wants to survive. He can always buy another building.

A beautiful building with two drive in doors 10' x 14 approximately 3000 sq. ft. building. It is close to a major artery and within view of a very high traffic street. It is perfect for a service business. It was perfect for him...but the economy has caused his business to slow.

He serves the construction industry...which currently has so few starts that lawn sprinkling installations are not like they were 2 or 3 years ago....or 5 when getting up early and home late was normal. It's painful to go from 14 employees to two. (Him and his Wife)

Small business owners are the largest job producing sector in the US. Small business is also one of the most fragile business sectors because they usually don't have a lot of working capital. The ones that do have, worked so hard they tend to reward themselves after years of hard work. Who wouldn't reward themselves for a job well done?

The problem is, if you rewarded yourself with a new home, boat or second home just before the recession hit....you may not be able to afford your rewards any longer. If you viewed your business as many small owners do.... to grow you need to get bigger. Buying a larger building with long term growth in mind, could be your undoing in this economy and the recession that has ensued.

How are small businesses fairing in your community?

Live in Grand Rapids or West Michigan area, not under contract? Like to sell or buy a home....give me a call. It could save you thousands in your next real estate transaction. Always confidential, Never Pressured.

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