How to Survive the Recession Storm

Recession survival 101: Hotel owners get firsthand lesson
October 7th, 2009 @ 2:17pm
By Becky Bruce
LAYTON -- Hotel owners and managers in Utah are learning how to survive the recession. It's a big topic of discussion at the Utah Hotel and Lodging Association Convention in Layton this week.
Managing Director of the Utah Valley University Small Business Development Center Ken Fakler told people at the conference they didn't have to lose money.
He said, "It's up to the management people, it's up to the owners, whether they're going to survive this or whether the ship's going to sink."
Fakler said a lot of expenses were negotiable, even if they didn't seem like they should be. The reason? Your business insurance company or landlord would much rather get a lower rate from you than no rate at all.
"Every expense item on the income statement is negotiable," Fakler said.

Marynika Miche, a counselor at the Small Business Development Center, agreed. She also added that you have to scrutinize every expense to make sure employees aren't taking advantage of you in the recession. In particular, she cautioned about abuse of company gas cards.
"It's petty theft," Miche said. "They don't consider it stealing. But with fuel prices going up, it's been significant for the employees and the employers."
Fakler warned about employees misrepresenting workers' compensation claims, either because they can't afford health insurance or their co-pays. He suggested businesses make sure every claim their insurance company handles really results from an injury on the job to avoid facing higher rates.
Fakler said regardless of which cost-saving measures a hotel or other business took, the important thing was not to wait.
"You've got to make really tough decisions right now, immediately," he stressed. "You've got to cut your expenses, yet you've still got to give superior, magnificent customer service."
You can learn more about UVU's program for small businesses here, and the Utah Hotel and Lodging Association here.

Bee Safe Systems

Bee Safe Systems, LLP
Bonnie and Terri Snow
795 W Center Street #2
Provo, Utah 84601

In 2002, during a family graduation party, seven-year-old Virginia Graeme Baker was out swimming in the families private pool and hot tub. Her sister ran to get her mom because something was very wrong. Nancy Baker jumped into the hot tub trying to pull her daughter free of the drain, but she was no match for the suction force of the drain. Two men took over and broke the drain in order to release Virginia’s body. The child was rushed to the hospital but was dead on arrival. Nancy Baker, in the midst of her grieving, consulted her father-in-law, James Baker III, White House Chief of Staff for President’s Reagan and Bush, to pass a law about anti-entrapment drain covers. The Virginia Graeme Pool and Spa Safety Act was passed in 2007, requiring all public pools to have proper anti-entrapment drain covers in place by December 2008. Many public pools across the country have closed for the summer of 2009 because they did not have the means and funding to put in place an approved anti-entrapment drain cover. Other pools that have been caught without proper security have received a $5000 a day fine until the facility is fixed or closed.
In 2005, Bonnie Snow and her daughter Teri read about the accident and thought this would be a possible invention to tackle. They spent many afternoons discussing possible solutions to such a problem. In 2006, Bonnie was doing an inspection for Utah County and fell into an insecure sewer drainage that collapsed. Breaking her back and destroying her knees. She was on bed rest for months. One day, Teri told her to start researching their idea more. Together, they thought of a contraption that would save lives. Thinking of a design like a bee-hive, with strong tubular joints, they started inventing a device.
In October 2007, Bonnie and Teri started coming in to see Ken Fakler. Ken pointed them towards many helpful resources such as Internet Marketing and QuickBooks classes, assistance with taxes, and people they would be able to make contacts with for developing their product. Of all the sources that Bonnie and Teri tapped into, Ken never steered them wrong. Ken also believed in them and never let them give up. After months of testing that failed on their product and wanting to stop, Ken kept pushing them forward. After two times of failed testing through the ISOD machine that checked plastic standing against UV Rays, Ken pushed them forward and explained that the testing might be faulty. Bonnie and Teri went back to find out that even ISOD created plastic could not withstand the testing. With this new knowledge, ISOD readjusted their scale and temperatures and Bee Safe Systems passed. The specialized plastics had to pass food grade plastics tests, strength tests, stretch tests, and many others. Bonnie found a company called Georgia Gulf to make the plastic. This company was so excited by Bonnie’s product, that they even helped fund the testing.
In March 2009 the product finally passed all the testing. By April 2009 the Snow’s made their first massive sale of $100,000. Sales continued strong throughout May, June and July. They just received another major order in Logan under Utah Plastics for August. Just recently, they received a letter from the Director of Health in Tennessee saying that he was so excited about their product that he has mailed their brochure to all public pools in Tennessee along with their yearly license safety renewals. Canada has just passed a similar law and they are planning to advertise their next.

Sole Envy

Sole Envy
Laura Felt
1200 Town Centre Blvd #1142
Provo, UT 84601

Laura started out working in Claire’s Boutique as a retail manager. She enjoyed her position, but wanted to go to law school. Once she stopped working retail she realized how much she missed it. She knew what she really wanted was her own retail store. Laura had married into an entrepreneurial family and she and her husband dreamed about opening their own retail place. One day, while driving around, they decided that it was time to stop talking about their dream and start living it. They started researching the Provo Towne Centre to see what was missing from the mall. They decided that there really was not enough reasonably priced shoe stores. The only competition around was Famous Footwear.
Laura dove into research and decided she wanted to stay within a moderate price of $17-$24 per shoe pair. She looked into chic companies such as SODA, Cupid and Wild Diva. Laura scoped out the competition, camping out in front of other small retailers, finding out just what were the desirable and less desirable traits of each place. She decided she wanted to own a place that was shopper friendly with great customer service. She wanted to have well trained and helpful employees but also make it easy for customers to help themselves.
It wasn’t always easy for Laura to be successful. She came to Ken Fakler needing help to get a business loan. With the way the economy was heading, no bank was willing to finance a 22-year-old wanting to open a shoe store. Ken pointed Laura in the direction of Zion’s Bank as well as private investors and he helped her get a business plan together that won over both bank and investors.
Laura’s next hurdle was the Mall lease. The bank and mall could not come to an agreement about a lease plan. The Mall’s rules were that they can kick out anyone the first 90 days if you do not meet your goals. Once an agreement was finally reached and the Mall saw what a success Laura’s store was, she received invitations to franchise and spread throughout the Ggp (a mall organization that is in charge of 669 malls nationwide).
Before Laura opened her store she hired a designer to help with the store layout. She decided to keep everything at eye level, with deep enough shelves that all the sizes were available on the floor. She went with long mirrors on the walls that made the space look bigger. Laura chose furniture from IKEA, so that it looked modern and yet very inviting. She also spent hours making her window displays unique and eye catching. The result was the Sole Envy of the mall.
Even with the current economic downturn, Laura’s store has been recession proof. Within her first four months of business she was able to reach 62% above her projected sales. The sales were thousands of dollars above her projected monthly goals. Part of what makes Sole Envy such a success is that people always need shoes, and this is a lower priced, yet chic option. Another success maker for Laura is that she puts her employees first. She makes sure that her employees are very well trained and customer oriented. In return for their excellent service she is willing to help them out with their college education. Laura has been able to accomplish all of this at the young age of 22 and as a new mom, thanks to her dedication, the strong support of her family and the SBDC.

Downtown Philly Cheese Steak

The Downtown Philly Cheese Steak
Matt Hassler and Nick Rhodes
1665 West Towne Center Drive
South Jordan, Utah 84095
801.878.8450

The “right” cheese is the Cheez Whiz. The City of Philadelphia is known for their delicious Philly Cheese Steaks, Tasty Cakes, and Birch Beer. If you are a Philly native, or happened to live in the surrounding area, giving up these delicatessens is just too hard. This is what Matt Hassler experienced. Matt spent two and a half years in a sales job in Philly and got addicted to these wonderful foods.
When Matt moved to Utah he met Nick Rhodes. They were both salesmen for a company, and both of them knew that their true calling was in the food industry- both of them realized that they would like to attend Culinary School. They decided to start their own Philly Cheese Steak House- and that is how the ‘The Downtown Philly Cheesesteaks’ idea came into existence.
Matt found the Small Business Development Center four years ago, but shelved his business ideas due to lack of funding. They decided to give the SBDC another try, and this time found Ken Fakler. They bounced idea after idea off from Fakler, and received many helpful answers. They found out what to expect in a lease, how to set up a business, and they received valuable information fast. They were able to find a good location with heavy foot traffic and tender an offer on needed equipment. The building was ready to open, without needing a build out. Ken sat down with Matt and Nick and checked over their lease before they signed.
A big challenge they faced was financing. Most SBA Loans were not structured for new business startups. They would need access to a quarter million dollars in assets to apply for the loan as a new business, and they just didn’t have that kind of money. They ended up fronting their own money by borrowing on their own houses and credit cards. Their goals was to make a substantial profit in the first year, and they are well on their way to reaching that goal. Also, they are planning to open a second store in the Salt Lake area this year; and eventually have 5 stores in the greater Salt Lake area.
Matt and Nick make the ‘Best Philly Cheese Steaks in Utah’ and couldn’t have done it without their very supportive wives – their wives quit their jobs and are working in the business. Matt believes that “People should open their own business” because “it is so rewarding to work for yourself”. He has “learned more in the last 3 months about business than in taking business classes for many years and reading business books.”
The Downtown Philly Cheese Steak provides a true Philadelphia atmosphere when you walk through the door and authentic Philadelphia food. Their most popular subs are the traditional steak which is filled with steak, fried onions, and cheez whiz or American cheese; and the Garlic Steak which is filled with steaming steak, mushrooms, tomatoes, onions, garlic butter, provolone and cream cheese. It makes your mouth water just reading about them! Matt, Nick, and their wives are making their dreams come true with the help of the Orem SBDC. See the SBDC to help you make your dreams come true, too.

Stephanie and Christian Nielson's Plane Crash

A woman originally from Provo is one of three people involved in a fiery plane crash in Arizona. The victim's parents are well connected to Utah politics. The woman and her husband are now in a burn unit in a Phoenix hospital.
Stephanie Nielson grew up in Provo. Her father is Stephen Clark, a member of the Utah House of Representatives, while her mother Cynthia is on the Provo City Council. And even though she lives in Arizona, Stephanie keeps in touch with a lot of people here locally, through her blog, which has become very popular.
Stephanie's blog, the NieNie Dialogues, is now asking for prayers. Both she and her husband, Christian, were critically injured Saturday night in a plane crash in St. John's, Ariz.
Doug Kinneard, a flight instructor also on board the small plane, died in the crash, while Christian and Stephanie suffered severe burns.
Cynthia said, "It looked a lot worse than what we anticipated, it was shocking actually."
Family members say the Nielsons are no longer considered trauma patients, but they are sedated much of the time because of the pain from their burns. When they are conscious, family members try to give them encouragement and talk about their interests. "We talk to them about BYU Cougars football," Cynthia said.
Aviation has been a longtime interest for Christian Nielson, and he recently earned his pilot's license. The couple have four children, and the family has had many flights together, with many photos posted on Stephanie's blog.
Family members are now caring for the couple's children at their home in Mesa. While both Christian and Stephanie face a long road to recovery, their family is holding onto hope. "Everyone has a lot of faith, and we know the Lord will intervene one way or the other," Clark said.
It is still unclear who was at the controls of the plane when it went down and what may have caused the plane to crash, but an investigation is underway.

To get more information please go to cjanerun.com where the family is posting updates.

There has been a fund set up of Stephanie and Christian, whose recovery will cost in the millions. You may donate at any Bank of America under: "Stephanie and Christian Nielson Rehab Fund" or WellsFargo under: "Stephanie Nielson Fund."

Our thoughts and prayers are with you.

August Success Story- Jones Mobile Marine Service, Inc.

Jones Mobile Marine Service, Inc.

Kevin Myers

946 West Utah Avenue, Unit B - Payson, UT 84651

801.427.0668

http://www.jonesmobilemarine.com/

Boating is a huge past time for families in Utah. There are so many beautiful lakes and reserves in this desert; and what better way to spend a day with the family than relaxing on the water in the sun or skiing behind a speeding boat. Kevin Myers grew up with boats around him. As a kid he worked in his dad’s and uncle’s business named Eagle Marine. His goal was to own his own place someday, and that dream came true in 2001 when Eagle Marine closed its doors. Kevin purchased all the inventory and tools from Eagle Marine when it closed, and started his business working out of a garage. He named his business Jones Mobile Marine Service, Inc. He quickly realized that the purchased inventory contained many boat parts manufactured from 1950-1990 parts that are not manufactured any more parts that a boat owner will pay a good price just to find them. This is one of Kevin’s distinct competitive advantages.

Kevin’s start-up year was difficult- because of Kevin’s youth and lack of credit history, banks were unwilling to loan him money. Also, the garage he worked out of was too small for working space and storage. As a result Kevin transformed into a mobile boat service and would work on the boats at the customer’s home. This was difficult, time consuming, inefficient, and expensive for the boat owner. Kevin needed money for a shop location large enough to service multiple boats and store parts. He had his wife Carly contacted Ken Fakler at the Orem Small Business Development Center. Ken helped him create a business plan that resulted in a loan from a local bank. Also, Ken helped him locate a building and forge an acceptable lease with the landlord. The result was that the new efficient business has resulted in a doubling of sales each of the three years he has been in business; the need to purchase a larger building to keep the business growing; and the hiring of his father (who has years of experience) to keep an acceptable turnaround time on contracted work.

The rising price of gas has not affected Kevin’s business. His sales are still climbing and he is still booked one to two weeks out for work. He has added a new service where he picks up and delivers boats to customers; this helps to lock people into doing business with him. When Kevin purchases that new building, he hopes to start selling a line of small fishing boats and will expand his boat trailer services, boat detailing services, and his parts offerings. Also the expansion will help them maintain their personal, attentive service with his customers. Kevin knows what service really means.

With the help of the Orem SBDC, Kevin and Carly are making their dream come true. In passing, Carly just had their second child; nothing like another good family business to make America the most economically advanced country in the history of the world!

June Success Story: Flirty Aprons

Flirty Aprons, LLC

575 East University Parkway

Orem, Utah 84058

http://www.flirtyaprons.com/

Flirty Aprons began as a concept on Mother’s Day 2007. Jamie Taylor was looking for an apron for her mother on Mother’s Day, and found nothing that was remotely appealing. So she started her first sewing project, and created her own apron. Then, in December of 2007, Jamie met Heather Hansen, who was in training to replace her at her current position. The ladies started talking; and together with their husbands, Spencer and Joseph, decided to start a business together. The two couples put together ten business ideas each, and from these forty ideas - they chose to sell aprons. They considered this idea to be the quickest way to raise money for a larger venture. Little did they know, they had stumbled upon a business that would grow very quickly and become their “large venture.”
Throughout the startup phase of the business, the Taylors and Hansens ran into several unexpected hiccups. Finding a manufacturer was difficult, until they found a fabulous one that was right in their backyard - someone that was close enough to supervise and make sure the design was being printed and made as desired. The next obstacle was getting funding. After being turned down by numerous banks, they discovered America First. At the time, Joseph and Heather Hansen were also going through a home purchase and America First assisted them with both loans. Unfortunately they had to first get approved for the home loan, and only then were they able to apply for the business loan. This delayed the opening date slightly, but they finally obtained their first business loan.
Joseph had previously found the Small Business Development Center online while exploring the possibility of starting a gym in the Alpine area. He had taken the ‘Internet Marketing’ and ‘Start Smart’ classes at the Orem Small Business Development Center and learned a great deal from those classes. Then he met with Ken Fakler about the ‘Flirty Apron’ concept. When Ken introduced him to the SBDC Joseph said, “this is a hidden gem no one knows about.” Spencer said that “Ken has given a lot of advice. He has helped shape the company, given us direction, and been so encouraging.” The Hansen’s and Taylor’s also read the book ‘The E-Myth Revisited.’ This book has been a guideline for them as they’ve started. It has shown them that having a business model rather than just being self employed is the key to success.
Flirty Aprons was expected to be a small side business for these families. They were hoping to sell a few aprons to stores like Bed, Bath and Beyond. However, after opening their first store in March 2008, they quickly discovered, that flirty attractive aprons was a concept that no one had tapped. They found that it was not just a local need, but a concept that had worldwide appeal - one that was worth expediting. Within the first three months of opening ‘Flirty Aprons’ their actual sales tripled over their projected sales. Furthermore, within a two week period the company earned enough capital to pay off all start up costs. Their beta test was a resounding success and taught them many valuable lessons to expand to the next level. They are now preparing to open a second location in mid July, 2008. They are also expanding their website and setting up their distribution network from which they hope to go nationwide, soon. A simple household need has turned into the venture of a lifetime- what a ride for four more entrepreneurs.