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Lessons from the Trenches by Marianne Scholl

As a business owner, one of the things I’ve noticed since the economic meltdown is how eager business owners have become to talk with other business owners. Many of us have given up on news reports and “key economic indicators.” Instead, we check in with each other to figure out for ourselves how the economy is faring.

I particularly like to talk to store owners to get a read on consumer confidence. They know right away when people are cutting back on spending, just as they knew the economy was slowing down early last year, about nine months before the recession was officially announced. They also know when people start loosening their purse strings to shop again. (Latest survey: Things are looking up!)

We have a lot to teach each other, so I thought I’d check in with some women business owners to see if they had any advice to share.

FOCUS ON THE POSITIVE

By February and March of this year, things were looking scary, says Kay Hirai, owner of Studio 904 on Mercer Island and in Pioneer Square. Business was down at her hair studios and, like everyone else, she wasn’t sure where the economy was headed. But instead of focusing on how bad things could get, she committed herself to being positive and doing things for the community.

“I think it helped to concentrate outward and to not focus so much on my own business, especially since I couldn’t do anything about it anyway.” Working through local churches, she gave free haircuts to people who had lost their jobs, and she held a fundraiser to raise money for Ginger’s Pet Rescue. Hirai is not new to community service, but she stepped it up significantly.

“I keep doing things to invite the community in and this really helps to create excitement in a place of business. It has brought new clients in, but it also helped me get through.”

Thinking positive is fundamental to Dianne Cumberland’s personal and business philosophies. As owner of Personal Training Team, Inc. in Redmond, her profession is helping women set and achieve goals. This makes her a firm believer in Henry Ford’s maxim “If you think you can do a thing or you think you can’t do a thing, you’re right.”

“Whichever way you think, you make yourself right,” she says. She refuses to buy into gloom and doom and focuses not on negatives or “what ifs” but on what she can make happen. She says that thinking this way helps her get through obstacles to reach the financial and growth goals she sets for her business.

Her team of nine nationally certified personal trainers uses this same “can do” attitude with their clients. “We have women come to us because they want to make changes for health or emotional reasons, and sometimes they come in feeling too old to make changes. We’ve disproved this again and again. Our motto is that it’s never too late to get in shape.”

Cumberland was recently selected as a finalist for the Women Business Owner’s Women of Excellence Award which is presented to a member of WBO who enhances the status of women entrepreneurs through her vision, leadership and perseverance. “Perseverance is definitely something I’m good at,” she says.

PREPARE FOR THE UNEXPECTED

Judy Ayers learned shortly after buying 4 Your Eyes Only Optical in Wallingford Center that she needed more than positive thinking. She needed a backup plan.

When a key employee left she was faced with the possibility of not being able to find a replacement because at the time it was difficult to find qualified staff who had experience working with eyewear. She hadn’t planned on working full time in the store, and it wasn’t something she was able to do because she also runs her own accounting business.

Her recommendation to other business owners: Think through different scenarios and figure out how you would handle them. What would happen if a vendor went out of business or no longer extended credit? What if an important employee quits without notice? What is your worst case scenario?

She likens strategizing on what might come her way to a city’s emergency preparedness plan. “If you have contingency plans and you’ve role-played a bit about what you’d do, you can get over things more quickly and move forward in solving your problem. You have a quicker response time and you’re not stuck in the shock of it.”

Ayers is now ready for anything. “It took me close to four years to realize that whatever comes my way, it won’t be a calamity. I may have to work a little harder than I want to. I may have to do a different job than I wanted, but I’ll get through,” she says.

It’s not that she dwells on all the bad things that could happen. She just feels more confident for having considered how she would deal with an array of business contingencies. She says tenacity is one of the most important qualities in running a business, and with planning she has gained the firm belief that she is tenacious enough to meet any challenge.

STOP MICROMANAGING

Anne Phyfe Palmer used to rely almost exclusively on her own intuition when making decisions about her business. She started 8 Limbs Yoga Studios in 1996 and now runs studios on Capitol Hill and in West Seattle and Wedgwood, with a new location set to open this summer. In 2008, she was one of the winners of the Mayor’s Small Business Award.

Yet relying on intuition meant she had to be involved in every decision, which eventually began to hamper her ability to grow the business. “I was often the bottleneck people had to get through to get stuff done. I’ve learned to shift to empowering people and letting people make decisions, even if they might make a mistake,” she says.

She had to figure out how to translate the way she made decisions into guidelines for her employees and managers so they were empowered to make decisions that fit with her vision and beliefs about the company. In the process of giving up some control, she found that staff members were happier in their jobs and more likely to remain with the company.

Inez Gray, owner of Habitude in Ballard and Fremont, firmly believes that you can’t give employees responsibility without power. “There is a point where you need to embrace who people are and what they bring to the table. Otherwise, she says, you are just a big fireman trying to squelch fires as they break out.

In staffing, she stresses that it is really important to set high expectations and to take good care of the people who work for you because they ultimately are your business. “You need to thank them and love and amaze them for what they are contributing,” she notes.

It’s also important, especially in a service-based business, to recognize when an employee isn’t a good fit. She recommends being faithful to the values of the company and to your customer service standards. If an employee makes mistakes or doesn’t fully understand your expectations, give them opportunities to improve. If it still isn’t working, then it’s time to let them know that it’s a poor match. “I want people who want to have Habitude and be Habitude. If it doesn’t work, then I graciously and respectfully let them know and want them to graciously and respectfully follow their life’s path somewhere else.”

WATCH YOUR FOOTPRINT

Expanding too fast or without sufficient research can also trip up successful business owners. When 8 Limbs Yoga expanded to West Seattle, Palmer ambitiously leased a whole floor in a beautiful old building. The renovation costs, combined with the high rent and the time it took to gain new students, ended up threatening her whole company and put her under enormous stress.

Fortunately, she was able to lower her overhead by subleasing some of the space. She also found a local teacher who could take over responsibility for the studio and who connected well with the community. The West Seattle yoga studio is now thriving.

One of the things Inez Gray is focusing on these days is using her business space more effectively. Her two locations are now open from 9 a.m. to 9 p.m. and are stretching existing staff as much as possible.

Even though Habitude’s spa services in Ballard are high-ticket items, Gray has seen very little drop in sales. Still, she has created a small boutique in part of her building that carries handbags, cards and jewelry. She recognized that if clients were going to be at the spa for a few hours, they might like to shop while being pampered. It makes the space she’s leasing thatmuch more profitable.

At her Fremont location, Gray introduced the CRUX Advanced Academy, which provides six months of advanced training to stylists who have completed school and are just entering the profession. They provide $20 haircuts and $40 color services, an innovation that helps retain clients who are facing economic challenges. It has also helped differentiate between her Fremont and Ballard locations and opens her services up to a wider clientele.

DON’T FORGET TO FOLLOW THE GOLDEN RULE

Business is still booming at A Perfect Fit, a cozy tailoring shop in Seattle’s Crown Hill neighborhood. The philosophy of owner Pauline Metcalf is to treat everyone who walks through the door as if they were family. “I treat them like I treat myself,” she says. “They aren’t just a number, and then there is a real connection.”

Her shop is celebrating its tenth anniversary, and she feels the home she’s made for her employees is also part of what makes her shop inviting to the community. She is very aware that her shop is where she and her employees spend most of their time and stresses that it’s important for it to be a space where they can all grow and develop. They all recently started taking juggling together, and on Friday they juggle for an hour with customers often joining in.
Metcalf feels that part of her success comes from the fact that the community wants her to succeed. She attributes this to her involvement with the community outside the shop, but also to the welcoming environment she’s created within it. “People come in just to check in on how we’re doing,” she says.

“Creating community” has become a buzzword, but it definitely seems to be a key ingredient in all of these women’s success. While a lot of businesses are focusing on creating virtual communities online, these women know that building strong connections with both their customers and their staff in real time and in real places makes all the difference in the world.

Marianne Scholl co-founded Seattle Woman in 2004 to help connect women in the Seattle area.

©2009 Caliope Publishing Company