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CAN WE HELP SMALL BUSINESSES?

By
Neal Boortz
@ January 12, 2009 9:05 AM
Permalink | Comments (40) | TrackBacks (1)

Have you visited your local strip mall shopping lately? It is starting to get depressing (no pun intended). It seems that in some local malls there are more empty storefronts with signs advertising their availability than there are occupied spaces open for business. Almost every empty storefront represents a small business that has failed and closed.

These small businesses are the backbone of American commerce and employment. Not only is every empty storefront a lost dream for a business owner, it represents lost jobs for employees. Small businesses employ about 70% of the American workforce and account for 80% of a new jobs in our economy.

Is there anything we can do while our esteemed Congress sets about the task of stroking larger businesses and campaign contributors? Yes. We can go out of our way to become small business customers. I now do everything I can to buy whatever it is I need from a small business. I'll try to stay away from the big box scores as much as practicable. Groceries, socks, hardware, restaurants ... whatever ... I'll look for the small independent businesses. If more people would do the same we might be able to help some of these small businesses stay alive until this economic crisis has passed. Certainly worth a try.



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What others are saying

  • Small business
    Sorry, but if big business offers cheaper goods, that's where my money goes. I will never understand the appeal of these mom-and-pop businesses which charge so much more for the same things I can get cheaply at Wal-Mart. Maybe when government stops taking so much of my money I'll be nicer to small business, but right now I'm perfectly happy to let Neal take up the slack.
  • Small Business
    Neal-why don't you put your money where your mouth is--and stop advertising for the 'big guys'?
    Stop promoting ProFlowers.Com,and start promoting the local florists in each of your markets? Or any other local business in your radio markets?
  • CAN WE HELP SMALL BUSINESSES?.
    Neal-why don't you put your money where your mouth is--and stop advertising for the 'big guys'?
    Stop promoting ProFlowers.Com,and start promoting the local florists in each of your markets? Or any other local business in your radio markets?
  • It is an interesting idea. People can choose where they take their bussiness. I was under the impression that we needed government and police power to protect small businesses.
  • local stores
    I have been doing this for years. I live in Floral City Florida and we are a one blinking lite town. Our local businesses are our backbown, do not buy from them them you get a box store. I hate box stores. I go to Jims hardware and Anthonys pizza. It is better than any huge store.
  • shopping locally
    My husband and I have always tried to make it a practice to patronize our local shops in the little towns we've lived in around the country. Times have now changed. He's disabled, I'm working part-time. Money is tight. Yes, we try to buy bread at the little bakery on the corner, then we have to fill it with the Velveeta at the cheapest sale price at the local chains. Local Dollar stores are another life-saver. "Those that be" haven't a clue. Neal, I love you. You have so many good ideas. But I can't picture you scavenging through the dented cans bin in the grocery store. So as much as we support and agree with your thoughts, it just can't happen for a lot of people (maybe more than you think). And it's only going to get worse. I WANT to be part of the solution. I WANT to help my community. But imagine it here in Detroit.. who seriously has any hope?
  • Capitalism
    Where do you buy your gas? Do you got out of your way to pay .02/gal more to a small business owner?
  • Russ's Comments
    Russ, a tenant has every right to ask for a reduction in their rent. A smart landlord would be wise to educe their rentals during the recession / depression in order to keep a tenant at all. A lot of property owners, though, are only looking at the short term and not the long term. I just asked my landlord for a reduction this summer. My landlord, who owns his property free and clear, refused to give me a break, so I moved my business to a cheaper location down the street. If my original landlord had been smarter, he would have lowered my rent the small amount I asked for, instead of losing my rent altogether. BTW, in a lot of businesses, people are asking for discounts on all sorts of things you wouldn't expect it on.
  • Business Environment
    Not all businesses are failing...and it is not always about price. If you have something that is of value to people, extensively researched the local area that would benefit from that need where you plan to open the business, marketed your value well, positioned yourself so that you are available at convenient times and offered outstanding customer service, there is a very high chance your little business will thrive.
    If any of the above changes then close the business quick or figure out how to change to keep your customer base. Otherwise your business will most likely become unprofitable. The strip malls are empty because they either could not attract suitable vendors that met the needs of the neighborhood or the neighborhood changed. The same is true for rural stores or big city malls.

    I also could mention two other factors regarding small business success...the owners lack of management knowledge and greed but they have less to do with strip mall store success.

    You are not guaranteed success when you open a business...you have to earn it. Success comes with planning, preparation, luck and a great deal of work.

    Just wait... something else will replace those strip malls. It's all about meeting the needs of the neighborhoods in many cases.
  • can we help small businesses?
    Neil,

    I live in Roswell GA. I believe we are the capital of strip malls. I recall going to a meeting where Jerry Wood, our future x Mayor along with some very aggressive developers were proposing putting all of the "Under-Developed Land" to good use? They want to place a Nail Salon and Gem Clip store on every spot of land. Why??? Ok, all of the strip malls, (empty or full) have a pretended value. All of the undeveloped land also has a value, (much lower). If the city and county gain via over development, what do you suppose is gonna happen? Yep, you got it, more strip malls and a greater revenue stream.
    It almost sounds like business, (a entity that grows only to create profit through revenue resulting in employ of more people.) The difference here is government has no profit motive. It's a lot like a Homeowners Association that has no controls. Set the fees and spend the money. Need more money to spend, increase the fees. Write checks with no accountability.
    Part od the problem is we don't have enough people to visit all of the strip malls. Now that you can't get a home loan without proving income, you're actually gonna use the money to buy a house that someone truely owns with clean title, we've narrowed down to expendable income opportunities.
    In Roswell, it's a result of bad management of government resources. Translation; using tax dollars to grow more government with no accountability.
    Anyone in Roswell, have you noticed the government making your life better? More importantly, do you want the government trying to make your life better, or just concentrate on the basics, control of our borders, oversight of our Banking system.
    For laughs, google House Financial Comittee. Who was supposed to provide oversight? Who failed in the oversight? I'm not certain these guys could help businees if they were given a plan that had a history of successes.
  • Todd's Comment
    Todd,
    Why should the landlord lower the rental agreement just because your business isn't doing so well? I'm not sure what kind of business you ran, but I have never walked into a convenience store and seen someone try to buy a candy bar for less than the sticker price by saying, "Look, I know the candy bar costs $1.30, but I only have $0.85 in my pocket. Will you take that?"
  • Too late for my business
    Unfortunately, this comes too late for me. My business closed as part of my New Year's Resolution, maybe the first one I have ever kept.
    Where's my bail out (/sarc)?
    Yeah, I will take what I have left over, which isn't much, and try something new. It probably won't happen in the USA at this time, though.
  • Buying stuff
    Suggesting you support your local merchant is a nice suggestion. Insisting that you do, is not a free economy. Personally, as an employee of a wholesale club - I find that I would encourage you to save money and help me keep my job and the jobs of many small businesses who supply us by shopping at our club. Maybe you could call us a "small" business in the realm of wholesale clubs, since we have less than 200 stores up and down the eastern seaboard (you know our initials) - so shop with us! Then I also encourage you to be in constant contact with your representatives insisting they support free enterprise.
  • Don't forget about the internet...
    Many of these small business have moved to the internet - bigger possible market with much less direct overhead costs. Toss in the no-sales tax advantage of eCommerce and it's hard for a physical store to compete.

    The whole concept of going to the store to buy something is gone for many things already - and going away for many more. With the exception of groceries, one could easily go months without having to enter a storefront - and save at least 10% across the board. (Done this...)

    Something things will likely never move entirely online (buying a car) but I'd be astonished if we're not back to the Sears mail order store front model in 10 years.

    As an example, it's 3-4% cheaper to go to walmart.com & have them ship it to your local store for pickup instead of going there directly and taking it off the shelf yourself. If you don't absolutely need it right now - you'd be better off lighting $20 bills on fire than actually going to the store to buy things directly.

    Things are changing. This is a good thing. People will adapt.
  • Montgomery, AL
    Is that old Service Merchandise building at the corner of East Blvd. and Woodley Rd. still a ghetto flea market, and the old pharmacy next to a hair extension/gold tooth emporium?
  • Help Small Businesses
    I am part of a small movement in Newnan Ga. that is trying to save our downtown. We have just started blogging about it on blogspot. savedowntownnewnan.blogspot.com
    I was shocked to hear Neal talking about this issue today after we just officially organized this movement down here. In Newnan we have 2 empty Belk buildings in old shopping centers as Belk keeps moving to new spaces where they don't have to pay rent as an "anchor" store. Thanks for talking about this Neal.
  • Think About It
    To the detractors that are trying to point out an inconsistency between Neal's statement and his libertarian beliefs, you're going down the wrong road. Neal didn't say "we need to pass a law to force people to shop locally". That's the kind of thing that you would hear from a socialist. There's nothing inconsistent about supporting the free market and its principles, while also (with YOUR OWN MONEY) looking out for the little guy.
  • Quality vs. Price vs. Budget
    We shop at a local grocery store which carries a much higher quality of produce, meat & dairy, which I'm willing to pay extra to get the better quality. They are considered by most to be "high-end" and most of the prices are slightly higher, but not outrageously so. The customer service far exceeds any of the big chain stores.
    My local grocer also makes a practice of identifying the items they sell which are grown locally, so I know the local farmers are also getting my business!

    Of equal importance, when I do my grocery shopping there, I don't end up blowing my budget by browsing and buying items which are not "grocery" items, and I could do without.
  • Small Business Prices
    I would support small businesses, but I cannot afford to pay $6 for a half-gallon of milk or $3 for a loaf of plain white bread. When they bring their prices down to a reasonable level, I will shop there. They don't have to be as low as Walmart, but they definitely don't have to be as high as they are.
  • Landlords take some blame
    Neal, I had to close down my small business. Customers were off quite a bit, but if my landlord would have lowered my rent, and let me stay, maybe I would still be open. My $0.02. Todd...out
  • Rob has a point
    Are these "space available" signs only due to businesses closing? Almost all of the commercial development over the past 10 years in northern Cobb County (GA) has been strip malls. There are several intersections (which was open land 15 years ago) that have dry cleaner storefronts on all 4 corners. I'm sure the economy has threatened and killed some small businesses. But I don't think the number of available storefronts is an adequate measurement of the economy.

    The store that gets my business is the store that gives me the best value. The best value does not necessarily mean the lowest price.
  • Buy good goods, not cheap goods!
    "I try to buy my goods at the lowest possible cost." If you buy the lowest cost goods, or get the cheapest services that is what you end up with. Cheap goods and services. Wal-Mart sells cheap clothes that don't last for a little less than you can buy good clothes that will last. The terrain is littered with stores and manufacturers that Wal-Mart has put out of business.

    Neal is right we need to shop locally owned. If you go to quality local businesses and buy quality merchandise you will save in the long run.
  • Free Market
    As someone stated before, I buy from whomever offers me the best price for the products I desire. If that happens to be a small business, good for them.

    The fact of the matter is that many of these small businesses would fail regardless of the economy due to poor and ridiculous business models. Many developers over the past 5 years put up strip malls before even having contracted any tenants. No different than the condo-flippers that went under these past 2 years.

    For instance, over the past week, I have seen ridiculous small business shops that I fully expect to fold anytime now. One was a Calendar Store. Are you kidding me? A store dedicated to calendars? Then, I saw a Christmas store - a store soley dedicated to Christmas decorations. Good grief. How long can that last?
  • bailout for small business
    Neal, I was very disappointed to hear you saying the above on your show this morning in the 9 o'clock hour. What happened to free market? Its okay for the auto companies to go out of business but not the small cd shop on the corner? Very very disappointed in the inconsistencies of your statements sir. I thought you were all for capitalism, the strong survive. But you would have us and yourself pay more for goods in order to help those not doing as well. Sounds like that socialism you are always preaching about!
  • Small Business
    And that lovely CPSIA (to test everything intended for children under 12 for lead and phthalates) is going to drive more small businesses to close. It's not a free market when the government interferes with everything.
  • Is this freedom?
    Neal, you make it sound like the big box stores opened up 50,000,000 locations one weekend and starting putting people out of business. These stores grew from small businesses the succeeded with good service and a healthy business model. Yeah, their service sucks now, but if it was a bad business, it would close like the other stores. I'm saddened a free market guy like Neal doesn't see this.
  • Nature abhors a vacuum
    I wonder what they'll put in all those empty store fronts. How much bigger can that "For Lease" company get?
  • Small businesses in politics
    Small businesses dont make enough money to donate to politicians, therefore they get no love.

    Reality man
  • strip malls
    If you want confirmation of Neal's statement about closed storefronts, just drive up the East Boulevard in Montgomery, Alabama and see for yourself...
  • Build more strip malls?
    I've seen the same... strip malls sitting half empty everywhere. Judging by what I see, local government and developers must think the solution to this is to build more strip malls. New ones are still going in all over the place... again, with few if any renters. Go figure!
  • Small Businesses
    Empty strip malls are not necesarilly due to the lack of small businesses.I have watched developers in Florida and in Texas overwhelm formerly residential/agriculture zones with storefronts without having renters.It is especially frustrating to watch as big retailers (Wal-mart,Target,Home Depot,ect.)open up one of these areas outside of already established business zones,as this inevitibly creates heavy traffic to roads and highways that are not ready for the increased congestion,not to mention inflating property values of nearby residents who are suddenly in a "business area" with the resultant tax increases.
  • Free Markets
    I buy from whomever offers me the best price for the products I desire. If that happens to be a small business, good for them.
  • Not everything deserves to survive
    There's a lot of brand new construction here in my area, beautiful brick clad construction, filled with non-sensical small businesses like "No-Brand Computers" (where you know last years products line the shelves under a patina of dust, and the guy behind the counter doesn't know any more about computers than you do), and "Yet Another Nail Salon and Tuscan Day Spa" (as if the tanning bed upstairs in the spare room equate to "Day Spa", and you add "Tuscan" to lend it some panache), and GOP Party HQ (which I'll assume isn't a full-time enterprise, or a small business even).

    It's amazing what Business Plans banks are providing loans for because an awful lot of people are otherwise willing to risk their livelihoods on endeavors that just don't make good financial sense.

    Yes, yes, maybe you want to sell beads, you want to be the Beading Czar, and you're willing to sit in a chair for hours on end, just not on Sunday, mind you, and have people browse the bead bins to make their perfect bangle chain. But does that make you automatically a success? Do you deserve to succeed because you have a passion for beads and you're willing to live in a bead store selling them? Do we need a bailout for bead stores??

    And is your failure indicative of a bad business environment?

    Was it really Bush's fault, c'mon, don't we all know who they're going to blame?, that nobody wants to buy a cell phone, or beads, or any number of other "small business" type products, from your store, one of fifteen in the same mall?

    When folks complain about losing jobs overseas, they aren't complaining that the "Measuring Cup Pantry" was moved overseas. And, conversly, is America going to survive with nothing but small business bringing in paychecks?

    I'd imagine we'd get more bang for the buck assuring the survival, and sound fitness, of the big industries which fueled our emergence as a civilization.

    I'd say people should be working for businesses and industries that make sense. The Mom & Pop's should be the exception that adds the spice and flavor, and not the backbone.

    Naturally, I don't want them infecting that backbone with the cancer of onerous taxation or government control either.
  • You're darn tootin'!
    My wife left corporate America back around 1993, and started her own business. She is a graphic and web page designer. Business hummed along nicely for about 15 years. Now her business is in the toilet. Luckily, she went back to college and, after pulling a 4.0, they asked her to stay on and teach. If it weren't for that, I don't know where we'd be.
    We also had about $500K in stock, which we inherited.
    Now we are thousandaires.
    Support your small businesses. Please.
    We, too, buy from the locals when possible. When we walk in, they know our name and face. We buy our prescription drugs from a local pharmacist because instead of a blank stare, we get stellar service.
    That, and all his pharmacy technicians are major babes.
  • Small Business IS America
    If people understood that small business - NOT GOVERNMENT - is what empowers the real America... sadly, small business will continue to suffer as taxes and regulations continue to grow.
    Brent Riggs
    www.riggsreport.com
  • Small Business
    By all means, support the small guy. Buy that coffee from anyone but "bigbucks" and go out to eat anywhere but the big chain restaurants. Remember, the little guys are your neighbors, give them a hand, cause they won't get a handout from congress.
  • Empty Strip Malls
    It isn't always because of failing businesses. In some areas, the empty storefronts are due to excessive and unnecessary construction. Over the last 3-5 years in Kansas City, construction of new commercial space has drastically outpaced the rate of growth of the local economy. I've watched developers build entire strip malls without a single tenant lined up, and they just sit there for a couple of years. It has happened with residential development in KC as well. It's clear that the construction industry here was blind to the fact that conditions had changed.
  • Aren't you a Libertarian?
    Strange words coming from a Libertarian. Isn’t this the invisible hand of the free market eliminating those businesses less fit to survive. Globalization giving the megacorporations such an overwhelming advantage is good, right?
  • By online also!
    NEal thats a great point. Everyone is still going to want the cheapest price but thinking that Walmart or Bestbuy has the cheapest price is a just a gimmick. It's all in the marketing. They market that they have the lowest prices but many small businesses will put their items from their brick and mortar store online. Just check out ebay and you will see how many home based businesses there are and not because they are expensive but because they are cheaper than the competition. Abebooks has book stores listing their inventory for sale. the list goes on. Plenty of sites to google for any products you "feel" are cheaper in the discount stores including Costco and BJ's. Plus you are helping the other types of commerce involved ie shipping companies, packaging etc. So, just because you want to help a local business does not mean you have to go to their actual store, you will be surprised how many local stores actually have a website! My local grocer even has a website and will deliver grocery's for free:) Besides, who doesn't want to shop in their underwear!
  • Capitalism
    I try to buy my goods at the lowest possible cost. That gives me more money to buy more stuff.
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