Getting business rolling: Finding a niche and becoming an expert is the key to entrepreneurial success in a soft economy
Getting business rolling: Finding a niche and becoming an expert is the key to entrepreneurial success in a soft economy
John Burns is no wheeler-dealer, despite the fact that his recession-era business is holding its own in what can be described as a flat-tire economy.
Burns opened The Bike Garage on Battleground Avenue in downtown Greensboro in October 2008, about the time the brakes were squealing on subprime mortgages, banking and American consumer confidence. Nearly a year later, Burns is paying the bills and seeing a steady stream of loyal customers who share his predilection for cycling.
He credits his enchantment with bicycles as part of the reason he’s still in business.
“I’ve been working in bike shops on and off since I was in high school,” says the Grimsley High School alum, “and I guess it’s always been in the back of my mind to have my own shop one day and be able to do what I love. It’s not so much like work when it’s something you care about.”
Building upon one’s expertise and finding a market niche is key in this economy. Mike Collins, president of Raleigh-based The Perfect Workday Co., says the two biggest mistakes small-business owners make are opening a business that doesn’t fit them and not doing their homework. The process of launching a new business should begin with a little common sense, he says.
“You need to ask yourself simple questions like, ‘Am I a morning person or an evening person?’ And if you are the former, then don’t open a bar,” Collins says. “And not doing your homework comes down to being under-capitalized, and that’s a recipe for failure.”
Burns, 40, has had his share of burn-out gigs. He spent more than a decade in the kitchens of several Greensboro restaurants.
“I loved the cooking part, but restaurant work takes it out of you,” he says, referring to the stress.
Even with his bike knowledge, he didn’t jump right into entrepreneurship. Working on bikes provided Burns a refuge from the chaos of the kitchen, and Dale Brown, owner of Cycles de Oro, a bicycle shop in Greensboro, “always let me put on an apron and work for him when I needed that,” Burns says.
He brought his own skills to the table, but learned more about the repair side working for Brown.
In 2005, Burns started to consider opening his own place.
“I really got the bug and thought for three solid years about it seriously,” he says.
Burns caught a break when his apartment landlord mentioned that his commercial property, the old Cox Radiator Co. garage on Battleground Avenue, was up for lease. It was reasonably priced, so Burns hit his parents up for a small loan. About a month and $8,000 later, The Bike Garage was born.
He set some ground rules for his new business, thanks to his experience working for Brown.
“I made a pact (with) myself that I wasn’t going to steal clients. We got customers via word of mouth, fliers, handing out cards in bars,” Burns says. “I learned a lot about business integrity from (Brown) and I think that means a lot, especially in today’s economy when people want to work with people they trust and give money to people they respect.”
The Bike Garage, which specializes in repairs and sells used and consignment bikes, has also morphed into something that Burns holds near and dear: a place to hang out.
He set up a coffee and juice bar “as a place where people can sit and relax or refuel while they ask questions or get their bike worked on,” he says.
As for the business side of the coin, Burns says he learned most of it from managing kitchens over the years. He also attributes his business’ success to the current economy, not despite it.
“I think people are enjoying going back to basics, respecting the environment and avoiding high gas prices,” he says. “I love the way other cultures revere the simple things like a good meal instead of luxury purposes. America is relearning that.”
If you can get the funding, the economy provides advantages for startup businesses, Collins says.
“People are hungry for work, so you can get better talent at a lower cost,” he says. “And as long as you have great credit, start small and stay flexible, you can survive.”
He suggests getting started by calling 10 people associated with the business you want to create and start asking questions.
“Potential suppliers, professional organizations, potential customers and successful existing businesses outside of your market are usually more than willing to share all the information that you need,” Collins says.
Burns has tapped into the environmentally friendly market by addressing his customers’ interest in the recycling aspect of fixing up old bicycles or buying consignment rather than buying new. It also has helped him save money and keep his prices low.
“We have everything from 40-year-old Schwinns to modern-day racing bikes, and because we have little in the way of retail inventory, we save on overhead and order when we need it and charge less for tune-ups,” Burns says.
So what are his tips for starting up a new business in the current economy? He says to scout your location and aim for high visibility, start small, do something you know and love, and streamline expenses.
The homework should also involve studying the rules of the game, Collins says. “Above all — be legal,” he says. “Know what licenses you will need and what your liability is, and if you need to incorporate.”
Sam Funchess, president and CEO of Nussbaum Center for Entrepreneurship, a business incubator in Greensboro, encourages new entrepreneurs to become experts in their niche.
“Get customers to visualize what you are doing,” Funchess says. “Build client relationships and find a way to be considered exclusive. Constant networking is the way to grow and build new relationships.”
John Burns 090609
Even as the economy began taking a slide in 2008, John Burns successfully launched his business, The Bike Garage, a bicycle repair shop on Battleground Avenue in downtown Greensboro.
Nancy Sidelinger Special Sections PhotographerIs entrepreneurship right for you?
Running a business is not for everyone. There is always risk involved, but entrepreneurs can improve the chances of success with good planning. Start by evaluating your strengths and weaknesses as a potential owner by asking the following questions:
• Are you a self-starter? It will be entirely up to you to develop projects and organize your time.
• How well do you get along with different personalities? Business owners need to develop relationships with a variety of people, including customers, vendors, staff, bankers and others.
• Can you deal with a demanding client, an unreliable vendor or a cranky receptionist if your business interests demand it?
• How are you at making decisions? Business owners are required to make decisions constantly, often quickly, independently and under pressure.
• Do you have the physical and emotional stamina to run a business? Ownership can be exciting, but it’s also a lot of work. Can you face six or seven 12-hour workdays every week?
• How well do you plan and organize? Research indicates that poor planning is responsible for most business failures. Organizing finances, inventory, schedules and production can help you avoid many pitfalls.
• Is your drive strong enough? Running a business can wear you down emotionally. Some business owners burn out quickly from having to carry all the responsibility for the success of their business on their shoulders. Strong motivation will help you survive slowdowns and periods of burnout.
• How will the business affect your family? The first few years of business can be hard on family life. It’s important for family members to know what to expect and for you to be able to trust that they will support you during this time. There also may be financial difficulties until the business becomes profitable, which could take months or even years. You may have to adjust to a lower standard of living or put family assets at risk in the short-term.
Source: U.S. Small Business Administration, www.sba.gov
