Some longtime community businesses are closing for good. What, if anything, could have helped them?
By Diana Fairbanks
Thursday, October 15, 2009 at 1:08 p.m.
Read more: Local, Economy, Business, Business, Traverse City, Chamber, Diana Fairbanks, Fact Finder, Fact Finder
We've done stories about businesses of all kinds downsizing or closing their doors. But a drive through Traverse City these days and you will see more of these businesses are ones that have been around for 20 years or more.
A viewer wondered why and if there was anything that could have been done to save them.
We took a closer look in tonight's Fact Finder Report.
For more than a generation they were the places you went to workout, dress up, grab a bite, plan a party, or paint a picture: the Fitness Center, T. Moeggenbergs, South City Limits, Sladek's Catering, and Deyoung's Art Supply.
But now these businesses, and more like them, are closing their doors for good. And while they are not all closing for the same reasons, there are some similar trends.
Tino Breithaupt says, "you're talking about being in a business world today that's not like it was 20 years ago."
Breithaupt is the Senior Vice President of Economic Development with the Traverse City Area Chamber of Commerce.
"20-30 years ago things were much much different. You didn't have a lot of big box retailers moving in to compete with family businesses."
And he says not only are some family owned businesses unable to compete with the big box stores, but some family businesses don't cross the generation gap.
Breithaupt says, "many of these businesses you've seen that have gone out typically a family owned business that has gotten close to retirement they may or may not look to turn that business over to the next generation. that next generation may or may not want to move forward with the family business.
One thing that will move the family business forward is technology. Breithaupt says that's been one of the biggest changes in the last 20 years and will be the key to a businesses success in the next 20 years.
"this is at every level. You can be IT service, or a retailer, or restaurant. You need to have technology as part of your businesses because if you don't someone else is going to."
And there are places to go for help, like the small business technology and development center.
He says, "in many cases you have these companies that have a need to re-invent themselves from what they were 5, 10, 20 years ago for new products, new markets that kind of thing. we can assist, we can help them understand where to take their business plan."
But this kind of help can take time. And the time to ask for help is when you start to see the early warning signs.
Breithaupt says, "the early warning signs are cash flow. when you start to see cash flow go in a different direction than you are used to it's time to get to the bottom of it."
And while he admits this is an economic downturn like many of us have never seen before, there are still signs of hope on the horizon.
"When you think about the number of businesses closing their doors relative to the number still moving forward we have a number that are bucking the trend."
Do you know businesses that are bucking the trend? I want to hear about them. What businesses will you miss the most that have decided to close? Leave your comments below.
