Cyndie Traner heard a lot of words of support for her business over the years, but words don’t pay the bills.
That’s what she told people who came into the C&R Mercantile in Hermiston for the vintage shop’s going out of business sale last week.
“People come in once a year and say, ‘See, I support your business,’ but you’re not showing me with your actions,” she said. “Actions speak louder than words.”
It’s a theme she said she has heard from other friends who have closed their small businesses over the years — people want the business to stick around as an option, but they don’t spend money there often enough to keep the doors open.
Eventually, some business owners like Traner decide they’re done.
“I lost a lot of time with my husband,” she said. “I lost a lot of money building something for my community that I could have been building up my own home. I just got tired of doing so much for so little in return.”
According to the federal Small Business Administration, about a third of businesses fail within the first two years and only half make it past five. Those odds are what have helped inspire “shop local” and pro-small business movements like Small Business Saturday, which encourages people to shop at a small business the Saturday after Thanksgiving.
Traner can name a lot of businesses that have come and gone in the last few years around Hermiston — home deçor shop Indulge, florist Bloomz, barbecue restaurant Sharon’s Sweet Treats and Catering, clothing shop Bare Necessities, craft store Defining Details, UFO Gaming, Crazy Mike’s Video and steakhouses Stockman’s and Stet’s, to name a few.
Often those spaces don’t stay empty for long, however, as a new group of entrepreneurs decide to take a gamble on opening up their dream business. UFO Gaming has been replaced by McLeod’s Bargain Bin, Defining Details is now Two96 Main and the former Indulge space has been taken over by N2N Integrations.
Susan Bower of Eastern Oregon Business Source said as new entrepreneurs decide to take the plunge, they face common challenges but they also share ways to help mitigate those challenges.
One of the biggest problems for new small businesses is having enough capital to get started and then ride through the rocky times. Passion is an important ingredient to success, but Bower said banks and potential investors are also going to want to see a plausible, concrete plan for financial success before they are willing to extend a line of credit.
“Having a business plan is critical, and following that plan is essential,” she said.
There are resources available to teach would-be entrepreneurs those types of skills, including the small business development center at Blue Mountain Community College and workshops by the chamber of commerce.
Business owners also need to have enough money in savings so their business won’t sink in the first few months as they start from scratch and attempt to build a customer base.
“You need some kind of support to get through the low times,” Bower said. “As a business owner you’re the last one to get paid, if you even get paid.”
Bower said entrepreneurs also need trusted advisors, including an accountant and an attorney, and some sort of bookkeeping software to keep their financial information organized. She said many business owners feel like they don’t have the money for those things up front, but she said it’s some of the “best money you can spend early on” to make sure the store or restaurant gets off on the right foot and doesn’t stumble into roadblocks that could devastate the business.
Other problems that can sink a small business are hiring the wrong employees, not marketing enough, poor customer service/product quality, not thinking outside the box or being pushed out by competition from other stores or changes in consumer habits.