Despite the hard-hitting recession, many small business owners in northern Nevada and across the nation remain upbeat about the future.
The Small Business Index, a poll conducted in the first two weeks of April by Wells Fargo and Gallup, found 61 percent of 602 small businesses polled were optimistic about the next 12 months. About 23 percent planned to increase capital spending, a rise of 44 percent from the previous quarter. The index score reflects six key measures: financial situation, cash flow, revenues, capital spending, job hiring and credit availability.
Many small business owners in the Truckee Meadows share that optimism.
Brad Stout, co-owner of Nevada Auto Sound at 2966 S. Virginia St., which celebrates its 40th anniversary on July 31, says his business enjoys a strong financial position.
"We have been very fortunate most of our competitors have gone out of business," he says.
Stout says business has increased from last year, though it is still down from three years ago.
Nevada Auto Sound doesn't borrow money, he says, so availability of credit isn't a concern. There is marginal capital investment involved with the business: Stout and co-owner Curtis Weethee began remodeling the store last year, painting the building inside and out and adding new display shelving and flooring. Three years ago they purchased the 11,000-square-foot parcel located across the street from the Peppermill Resort Casino.
"Everything looks great," Stout says. "We really haven't been as bad as some companies out there. We have been here 40 years, and we don't advertise; it is all referrals or word of mouth."
Others must work a little harder to gain exposure for their business.
Dave Winchester, co-owner of Black Rock Pizza Company at Pyramid Way and McCarran Boulevard in Sparks with his wife, Linda, says business has dropped about 14 percent since March.
But the Winchesters recently branched out into catering and have been putting effort into getting their restaurant's name in minds of the hungry. To increase their catering business they have provided free food for community and service organizations, and they also have tried to increase their presence on the Internet.
"We are working hard to make it work," says Dave Winchester.
Hiring has never been a challenge for Black Rock Pizza, which employs 32. The Winchesters once placed newspaper ads but shifted advertising efforts to Craigslist. The restaurant also sees a lot of drop-in job seekers.
Still others say running a successful business during a recession means knowing your business and believing in your abilities. Karel C. Ancona-Henry, owner of Moonbean Publishing LLC in Dayton, says securing funding to publish projects has been a nightmare, but her company still should be in the black at year's end.
"It has been horrifying I had to change the business model because the economy started to slide and banks weren't lending," Ancona-Henry says. "There is very little money out there from actual bank sources for small businesses unless your credit is absolutely impeccable. It is very challenging."
Moonbean Publishing pursued alternative funding sources for its most recent book project, due out at the end of June.
The publisher says due to extensive staff-thinning in the newspaper industry, there's been no shortage of talented help
"There is an amazing talent pool as far as photography, research and writing," she says.
Capital investment is ongoing at Moonbean. "That will be the lifeblood of funding the next project," Ancona-Henry says. "Ensuring that is in place is the No. 1 priority behind making sure royalties are paid."
Despite the financing challenges, Ancona-Henry says the next 12 months will be "wonderful."
"If you have got a solid product, and you know how to market your specific product, then all bets are off it's as good a market as any," she says.
Other companies are finding it hard to remain upbeat about the future as they see their revenues shrink. Doug Krogh, co-owner of the Kro-Built Company in Reno, a custom metal fabricator, says revenues are down 8 percent.
"Our financial position is OK for now but I have seen it much better," Krogh says with a robust laugh.
Krogh has seen little uptick in business during the normally busy spring and summer months due to weak RV sales. Kro-Built typically performs work on the brakes and axles of large recreational vehicles.
"It is pretty slow, Krogh says. "Normally this time of year we are usually booked two or three weeks out, and right now I am booked about half a day."
Kro-Built has reduced the number of its technicians, but may hire an additional welder, Krogh says. The company has not needed any credit to continue operations or secure parts, but parts have become much harder to get as manufacturers and suppliers shrink their inventories.
"A specialty brake job on boat trailer is taking a week to two weeks to get parts to do the job," Krogh says.
