Small businesses can face especially rough rides through economic downturns due to skimpier resources than bigger companies.
But their smaller size also means owners can be more nimble in responding to the tough times.
“Successful businesses will tell you they had to go back to the drawing board,” said Jerry Wheeler, president of the Huntington Beach Chamber of Commerce. “Just cutting jobs doesn’t do it.”
Home Run Media Group had to reinvent itself during the recent recession—and not for the first time. Founder and Chief Executive Patrick Brenden started the Huntington Beach-based software-distribution company in 1992, and by mid-decade was dealing with a shift from physical media to online product distribution.
Home Run kept on swinging and eventually evolved into a one-stop shop for marketing professionals, with a sideline in printing and promotion.
Then came the recession.
“We got hit hard in the middle of 2009,” Brenden said. “The third quarter was a disaster, and by the fourth quarter we were wondering if we could keep our doors open.”
Staff was pared and remaining employees accepted pay cuts.
“Luckily, we were able to sell some additional real estate, which saved us by allowing us to pay off our debt and keep the company healthy,” Brenden said. “It was a very sobering experience, and the first time we had gotten so close to disaster. We realized we could never afford to become complacent and had to learn to keep costs under control.”
The company has returned to an aggressive posture on new business. Home Run recently hired a sales director, launched a redesigned website and invested in online marketing and other promotion, including YouTube videos and social media (see related story, page 22).
Orange-based All-Safe Pool Safety Products Inc. was recently recognized as family-owned business of the year by the local office of the Small Business Administration.
The pool cover company experienced rapid growth for many years. The recent accolades stem more from its ability to turn the page on a tough chapter in its business history.
“Our sales tumbled to about half of what they were at the peak,” Chief Operating Officer Reed Hauge said. “We were forced to downsize, cut back hours, reduce pay and benefits and even lay off team members. It was a very painful time.”
The company became leaner and more efficient.
“We improved our product and figured out ways to do more with less,” Hauge said.
“There was no room for errors or waste. We learned how to work smarter.”
Bouncing Back
Business is bouncing back as a result of the company’s moves, he noted.
“We’ve been hiring team members and rebuilding our inventory,” Hauge said. “Our focus has switched from cutting costs to maximizing sales and fulfilling orders. We are back into growth mode, and very grateful.”
Wendy Navarro is the owner of Costa Mesa-based Saige Nicole’s Specialty Baby & Toddler Boutique. The SBA recently awarded Navarro’s business the national winner of the Small Business Week awards in the home-based small business category.
The baby boutique started in 2006 as an online-only destination for fashion-forward moms run out of Navarro’s home in Tustin. She opened her Costa Mesa storefront last summer.
Navarro attributes her success during the recession to pacing the growth of the business carefully, as well as going above and beyond to meet customer needs.
“When the recession hit, we put the money straight back into the business, so we could maintain the quality of customer service and quality of products,” she said.
Networking
Networking helps Navarro connect with other business owners in the community and form relationships with designers to improve the variety of product offerings.
Her advice to others: “Seek out mentors and networking opportunities, then find out how they became successful. Success doesn’t mean you’re making millions overnight; it takes time.”
The Orange County Institute for Women Entrepreneurs is an SBA-funded nonprofit program, part of a national network of women business centers designed to help women start and grow their businesses. The institute helped about 150 businesses in the county and had about 800 clients attend workshops last year.
“Most of our clients have survived by tightening their belts, refining their expenses and streamlining processes to be more efficient,” said Kari Irwin, director. “Second thing they’ve done is enlarged their market and expanded their services to existing clients.”
