The Daily Star, Oneonta, NY - otsego county news, delaware county news, oneonta news, oneonta sports

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December 19, 2009

Small businesses learn to thrive

It's a tough time to be in business, particularly in a small business, but some are thriving despite the drumbeat of bad news.

The national debt is soaring, New York state is nearly broke, counties are cash-strapped, credit is tight, utility bills are high and property taxes are rising.

Commerce is slow because people are striving to spend less as they cope with job losses, benefit cutbacks, medical bills and general uncertainty.

As people spend less to preserve what they have, the economy slows, which leads to more layoffs, furloughs, tax delinquencies, unemployment and demand for public services.

The plight of those who fail drives up expenses for those who survive, making them more susceptible to failing, too.

However, some local businesses are holding their own, even expanding to meet a rising demand for their products and services.

And many people want to start their own enterprises, according to Carolyn Lewis, Otsego County's economic developer.

``There seems to be a real desire for people to be entrepreneurs,'' she said. ``We're hearing from more and more people who want to start a business, but sometimes they don't know how to put a business plan together or how to secure appropriate financing.''

Lewis and her staff talk to prospective business owners, ask them what they plan to sell and why people would buy from then, rather than someone else.

``Their marketing plan has to make sense,'' she said, for a business must be well thought-out to attract financing or ever turn a profit.

Rob Robertson, chief executive officer of the Otsego Chamber, said financing is not a problem for the best commercial prospects.

``If the project flies on its own, then it's bankable, and if it won't fly on it's own, then you're not going to go anywhere,'' he said.

Mary Beth Silano, executive director of Delaware County's Chamber of Commerce, said the key to success is offering people something they need at a competitive price.

This, many local small businesses do, so they're surviving and some are even thriving, she noted.

``There are bright spots. We have restaurants that are doing very well. We have a new shoe store in Margaretville and Tractor Supply is coming to Delhi,'' she said.

If utility bills were more reasonable, credit easier to obtain, and state taxes and fees less onerous, businesses would be doing much better, she said.

But there is opportunity, even in a downturn, even in New York State, and the owners of small business are adapting to changing conditions.

The Midtown Grille Restaurant and Bar, Delhi

This restaurant at 97 Main St. in Delhi is about to double its capacity, from 40 to 80, because of customer demand, according to owner Aurora Bagatta.

"We're doing well, and we want to expand, so we can seat more people and do more catering,'' she said.

In the summer, the Midtown Grille sees lots of tourists, and in the winter, local residents who want to dine out fill the chairs.

``Our business is pretty steady year-round, which is good,'' she said.

One secret to success is experience, said Bagatta, noting that her husband, chef Giorgio Bagatta, has operated four successful restaurants before and knows the business well.

Another, of course, is offering excellent food and service at a reasonable price.

And to finance their expansion, the Bagattas have not taken a bank loan, she said, but are using capital derived from their success.

``We've worked very hard in our two years here so we are able to do this,'' she said.

Willis Monie Books in Cooperstown

A decade ago, Willis Monie Books, at 197 Main St., counted on customers walking in the door.

Now, while people are still welcome to browse the shelves for everything from Bibles to vintage copies of ``Life'' Magazine, a large portion of the trade comes over the Internet, according to Willis Monie Jr.

This business, which sells the most traditional of items, has continued to flourish by using the latest in commercial technology.

``The Internet has been good for business, but there are good and bad things about it,'' he said.

With the proliferation of sellers online, competition has driven down the price of some books, he noted.

And with the ease, and anonymity, of Internet sales has come a decline in quality in some instances.

``With the non-book dealers, customers sometimes don't get what they think they're buying,'' said Monie, something that wouldn't happen if people were able to leaf through a volume before plunking down their money.

In the summer, this store draws in tourists, who have come to see the National Baseball Hall of Fame and other area attractions.

In the summer of 2009, the walk-in trade was slow, but at the same time, Internet sales remained strong, as customers from all around the world continued to buy vintage books at www.wilmonie.com.

Alpine Ski Hut in Oneonta

Eduard Hofbauer is coping with recession by downsizing and focusing on his core business, the sale of downhill and cross-country ski equipment.

``I've been doing this 42 years and I like what I do, but we had to downsize this year,'' he said.

Gone are the lines of ski apparel and accessories. Gone even is Alpine's sign in the doorway at 150 Main St.

``When we downsized, we decided to move into the basement and lease the upstairs,'' said Hofbauer.

Now the entrance to his business is on Water Street, and a McLaughlin's Department Store occupies the upstairs.

Still, with lease income and his product line down to what he knows best, Hofbauer is content and is not going to market his skis on the Internet.

``The younger generation buys a lot on the Internet, but we're doing OK with what we've always done: selling good equipment, giving good service,'' Hofbauer said.

Alpine does have a website, he said, but it's there mostly to guide people to the store's new location.

Skiers who purchase high-quality equipment can expect years of enjoyment and for that, they should visit the store to be outfitted, he said.

Williams Tire Centers, state Route 80, Pittsfield

Williams Tire Center of Pittsfield is not only holding its own, but expanded a couple of months ago by opening a third shop, the former Tim's Garage in Edmeston.

``We're doing pretty well, I think because we give people what they need,'' said owner Jeff Williams.

Old cars, new cars, trucks, tractors, four-wheelers, everything that runs on wheels needs a periodic change of tires, insulating this type of business a bit from economic cycles. A blast of winter might freeze up sales at many outlets, but it brings motorists flocking here to have their winter tires put on.

And in the summer, they have to come off again.

In addition to tires, Williams Tire Center services vehicles and performs state inspections, making it easy for customers to accomplish a lot in one stop, he noted.

Experience also counts in this kind of business, said Williams, who worked there for years before buying the business.

Cooper Country Crafts in Cooperstown

Business has been a bit slow this year at Cooper Country Crafts, an 18-member cooperative of artisans at 2 Doubleday Court in Cooperstown.

But these producers of high-quality handmade items stay in business by cutting their expenses to nearly nothing.

``We try to do everything ourselves,'' said Judy Curry, a quilter and founding co-op member. ``We have someone who does electric, someone who builds shelves, and we take turns in the store,'' she said.

By keeping expenses to a minimum, the crafters earn a profit from the sale of jewelry, stained glass, pottery, wood carvings, hand-tied flies, folk art , rustic furniture, greeting cards and many other items on display in their store.

Cooper Country Crafts had its best years in the late 1980s, especially 1989, the 50th anniversary of the National Baseball Hall of Fame, when record crowds came to Cooperstown, she said.

But the cooperative spirit and a conservative business plan have helped every year, even in a downturn, said Curry.

``Everyone pitches in and we don't ever go into debt,'' she said. ``If we don't have the money for something, we just don't buy it.''

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