Thriving in Risky Industries

Four Chamber Members Share Successes

Deborah Henriksen succeeds in retail by attending trade shows, creating a niche market, and updating her business plan.

You have overcome the initial hurdle of starting your business. The next question is, How do you survive long term? According to a study by the Bureau of Labor Statistics, only 44% of new businesses make it to year four.

While there are no clear government statistics on business success rates by industry, experts and economists agree that certain industries are riskier than others. Following are some tips from Chamber members who have overcome the odds in four high-risk industries.

Apparel and Retail

Deborah Henriksen has designed and sold her streetwear for skateboard enthusiasts under her Equillibrium Clothing label in shops for the last six years and opened her own shop two years ago. "No day is safe, and every day is better than the last-so don't give up," Henriksen says about owning her business. Now she's looking to expand beyond the Colorado region. Industry Challenges-Changing consumer behaviors and tastes; corporate competition.

Survival Tips

Attend trade shows to network and gain national exposure.
Create your own niche market. Henriksen sponsors contests and events for skateboarders.
Have a business plan and update it, even if you aren't seeking financing. "That thought process is necessary for creating consistency," says Henriksen.

Restaurants and Bars

Beverly Morton Billand took a leap nine years ago when she opened her Restaurant at Patowmack Farm in the barn on her 40-acre organic farm in Lovettsville, Virginia. "You have to have a vision and know what direction you want to take, but you must also be flexible," Morton Billand says. Industry Challenges-Hiring and retaining staff; attracting repeat customers.

Survival Tips

Promote your business at all times. Morton Billand is revamping her Web site and taking advantage of more networking opportunities.
Work with other businesses in similar industries. Morton Billand partners with local bed and breakfasts, antique shops, and hotel concierges to drive more customers to her restaurant.

Transportation

Mary Kisseberth has taken her trucking company, Major Carriers Inc. of Aurora, Colorado, from a $20,000 per year company in 1997 to $1.5 million last year, but not without encountering difficulties along the way. "We've been hit by every pitfall there is in the business world-overspending, underspending, overpaying, you name it." Industry Challenges-Intense competition in transportation hubs; labor shortage.

Survival Tips

Use independent contractors, thus reducing payroll and insurance expenses.
Get a bank line of credit to help meet payroll and operating costs.
Establish open communication and good relations with creditors and the IRS so that you can pay off debt and unpaid payroll taxes gradually through a payment plan.

Telecommunications

Don't be fooled by the name. Founded in 1995, Cellular and Pager Warehouse, which has 11 locations throughout Arkansas, also sells satellite dishes. Ben Thomas, company president, says that offering new products is required for success. "You start as a small entrepreneur and before too long you have to deal with change." Industry Challenges-Corporate restructurings among carriers; rapidly developing technology.

Survival Tips

Invest in employees. Train them in the latest innovations.
Establish strong partnerships with carriers to ease transitions during corporate restructurings and mergers and acquisitions.
Borrow ideas. After visiting upscale electronic stores with "live" technology that allows customers to use the products in the store, Thomas is now doing the same in some of his stores.