How Metro East entrepreneurs are weathering the economic storm

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How Metro East entrepreneurs are weathering the economic storm
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Small businesses are up against a lot these days. Online sales have taken customers out of stores, disposable income is nearly nonexistent and unemployment has risen every month for the past three months in Illinois (it's currently at 9.5 percent).

Some small business owners said they've had to cut employment, slash operating hours and even freeze salaries to keep their doors open. In 2009, the number of Illinois small businesses that went bankrupt was up more than 80 percent than the previous year. Closings rose by 2.5 percent.

It's hard to get ahead, they say, when customers are just as behind as they are.

Shirl K Floral Designs

Owner: Kathy Hamilton

Years open: 28

In a word, business is: "Slow."

Long gone are the days when anniversaries and birthdays drove the floral industry. Today, flowers are reserved for milestones: marriage and death.

"I always say flowers aren't a necessity," said Kathy Hamilton, who owns the Granite City shop. "People are going to pay bills first."

Bills are something Hamilton has plenty of: delivery truck maintenance, fuel, not to mention the money spent chilling flowers shipped in from hundreds of miles away.

"None of it's gone down," said Hamilton of the costs of running a small business. She's had to make some cuts to keep her head above water. The shop often closes early if business is slow, and she downsized her staff. Of starting a small business today,

Hamilton said, "I wouldn't advise it."

Mane Attraction

Owner: Carla Hall

Years open: 28

In a word, business is: "Fantastic."

Carla Hall has a business model that would make some nervous in a shaky economy. She raises prices every year, doesn't use coupons, isn't afraid to drop a dollar on advertisements and admits to being the priciest salon in town.

"I'm having a good year," said Carla Hall, who owns Mane Attraction, a Collinsville salon. "I've work very hard to get there."

While many small businesses are struggling, their customers pinching pennies rather than spending money on little luxuries, Hall said her clients are coming from as far away as Branson, Mo., to get their hair styled.

"My girls get the best education," she said "We have worked smarter and harder. We're not going to cut prices."

The economy has probably impacted business in some way, Hall said, but it hasn't hurt profits. She's made very little changes to the way she operates.

"You can always do better," she said. "But compared to everyone else, we're doing pretty well."

Belleville Bowling and Sport Shop Inc.

Owners: Richard Engle, Ollie Cardella

Years open: 32

In a word, business is: "Down."

Business and bowling were a lot more popular when Richard Engle and his partner bought Belleville Bowling and Sport Shop in the early 1980s. Before the era of online shopping, trophies and medals were big sellers. These days, not so much. In fact, business is so slow they had to cut all their employees.

"It's really been tough," Engle said. "One of us doesn't take a salary."

His partner, Cardella, works a few sides jobs to put bread on the table.

Online retailers like Amazon.com, where customers can get products at discounted prices, have really hurt his business. Vacant storefronts in Downtown Belleville aren't helping attract customers either. Last year, sales dropped 30 percent. Despite grim prospects, Engle said, the duo doesn't have plans to close.

Uptown Yoga

Owner: Suzanne Sweet

Years open: 5

In a word, business is: "Afloat."

After more than 20 years as a Waterloo police officer, Suzanne Sweet wanted a change of pace.

"A lot of the reason I got into yoga was to reduce stress," Sweet said. That didn't quite happen. Instead of stressing about crime, she's stressing about bills.

"The economy hurt us," Sweet said. "People are having difficulty making ends meet and yoga is part of the first things they can let go."

Enrollment has been down at her Waterloo studio since the YMCA began offering yoga classes. Sweet has only increased class prices once, but had to cut back on the number of classes she offers to balance the books.

"I don't make money at it," she said. "We pretty much break even."

Contact reporter Sarah Baraba at 618-344-0264, ext. 105

Copyright 2012 stltoday.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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