Blog

Even though the economy has been dismal and unemployment has been on the rise, a fascinating phenomenon suggests that small businesses and boutique firms stand to gain customers in these trying times.  Let’s face it, whether times are good or bad small businesses have never been able to afford the luxury of being wasteful, inefficient, or careless with money.  Large corporations, on the other hand, which are bureaucratic by their very nature, have a tendency to become highly inefficient and wasteful when times are good.  When faced with an economic downturn, the inevitable occurs in a large corporation—mass downsizing resulting in a loss of valuable talent and customer service.  Consequently, the large name brand company that customers were paying for tends to lose its luster in the face of lost relationships and customer support.

Peter Bregman, CEO of Bregman Partners, Inc., a global management consulting firm, also believes that small companies will win in this economy.  He states that “Small is the new big.  Sustainable is the new growth.  Trust is the new competitive advantage.”  He says that “small companies with low overhead, reliable owners, a small number of committed employees, personal client relationships, and sustainable business models that drive a reasonable profit are the great opportunity of our time.”  To read more about Bregman’s point of view on this topic visit his article Why Small Companies Will Win in This Economy.

The tenants of the Brentwood Business Center, the Sand Creek Business Center, and the Sand Creek Plaza are all too familiar with this mantra.  The majority of the tenants renting space in these Brentwood business centers are small local vendors with a particular focus on sustaining clients through relationships and keen customer service.  In fact, KMB Management, the managing firm over these properties, has developed a philosophy that embodies the spirit of Bregman’s slogan:  “Small is the new big. Sustainable is the new growth.  Trust is the new competitive advantage.”  Each new customer and/or potential customer at KMB Management is treated with respect, professionalism, kindness, and commitment. 

In closing, if you are a small business in this trying time don’t lose heart.  This is your golden opportunity to take advantage of the niche opportunities that are out there.  Just remember that small is the new big and the power of the personal relationship can never be underestimated.  Creativity may also be your number one asset in attracting new business and retaining loyal customers.  The business expert Peter Drucker once said that, “Business has only two basic functions—marketing and innovation.”  Therefore, turn your creativity into innovative marketing endeavors! 

This question has been at the forefront of our minds for a long time.  Analysts, speculators, and business people alike have been desperately trying to wrap their minds around the enormity of this problem for the past few years.  According to the National Bureau of Economic Research, the United States has been in a recession since December of 2007.

Economic insight and analysts from the Wall Street Journal speculate that the American people will have to hold out until 2010 for the National Bureau of Economic Research to make an end-of-recession declaration.  In Washington last week, the chairman of the Federal Reserve, however; publicly declared that the recession was over.  He did qualify this statement by saying that there would not be a “splashy return to economic boomtime anytime soon.” 

Bernanke attributes the end of the recession to several factors as follows:  a rise in retail sales for the month of August, a rise in housing sales in key markets, and a rise in median home prices in Southern California markets, one of the hardest hit boom-to-bust areas in the country.  All of these factors combined serve as key economic indicators to market stabilization and recovery.  To read more about these factors visit Yahoo Real Estate News.

Unfortunately, unemployment is the wild card in this recession equation.  Even with the end of the recession drawing near, unemployment will not have a speedy recovery.  According to Robert Gordon, a Northwestern University economist and member of the Business Cycle Dating Committee, unemployment will peak sometime between December of 2009 and March of 2010.  Nevertheless, Bernanke says that the vast majority of Americans who are employed saw wage increases this year up to 5% marking the largest gain in fifty years. 

The experts are declaring that the recession is either over or coming to a close which is very good news for everybody.  This is certainly optimistic news for businesses both small and large who are anxiously awaiting the return of the market.  For local businesses like those located in the Sand Creek Business Center and the Sand Creek Plaza, this may stimulate expansion or growth plans for the coming years.  In which case, commercial building owners will be ready to meet this need with prime office and retail space. 

At some point, your plans to start a new business may lead you on a search to find a suitable location. If you pick the right location, you'll be made in the shade. Pick the wrong one, and your business could be over before you know it.

Selecting an office space can be a rather difficult endeavor. To try to make the process a little easier, we're listing some things your should consider about any prospective rental property.

The square footage of the property is important. But, don't just think about the rentable square footage, which is the figure the landlord will give you. Instead consider the usable square footage of the office space, the amount of the property which you will actually be able to use. To get this figure, measure the interior of the office space where you will actually be working. Make sure the usable square footage is enough for your business.

Next, find out about utilities. For some properties, the utilities are included in the lease. But, for others, whoever rents the office space is responsible for paying for the heat, electric, and water bills. If you are responsible for these bills, it can obviously make a big difference in the amount you are paying each month for your office space.If you depend on foot traffic for retail sales make sure your office space is visible from the street and that there is adequate parking. Don't rent an office space that is secluded unless your business does not rely on customers or clients coming in.

If you do have customers during the day, be sure the location has adequate parking. You do not want customers or clients choosing not to stop at your business because the parking lot is full.

Find out about outside signage ordinances for the area. In some cases the landlord is responsible for providing signage, which saves the tenant money. In some cases the city or township may have certain laws about what types of signs an office space is allowed to have. For example, you may not be allowed to put up a neon business sign or a billboard that is taller than six feet. It is important to check the ordinances so that you do not get fined and so that you do not have to take down any expensive signage.

Lastly, ask about the onsite management services and get to know who's managing the building. An onsite management team is indispensable. Should an issue arise, an onsite team can act immediately, responsively and effectively. Look around, is the place clean? Attentive onsite management teams routinely take care of the details that keep the building running smoothly.

Finally, be diligent. Get as much information as possible, and work to understand issues before you make your selection. By sticking to these principles, you decision will always be the wise choice. Never overpay, but if the numbers are right, don't be afraid to pay a little extra for that perfect location. In the end, the building should contribute to your company's bottom line.