Sink or swim: Small business owners speak up about what it takes to succeed

"Experience is a cruel teacher," says Bill Vickery. "Effective, but cruel."

As the director of the Small Business Development Center in Cape Girardeau, Vickery is well acquainted with the risk of opening a new business. According to the U.S. Small Business Administration, only about 44 percent make it through the first four years.

"The No. 1 business failure is from lack of planning prior to opening doors," Vickery says. "That would include making sure they have sufficient capital, pricing, profitability, cash flow. It's all part of the planning process."

LOCAL STORIES

Prior to opening Grace Cafe, a Cape Girardeau coffee shop, Grace Parry and her husband spent years traveling to Paducah, Ky., St. Louis, even Colorado in search of ideas. They did research online and joined the Specialty Coffee Association.

The couple originally thought of the cafe when the organic tea and coffee samples at their small store, A Touch of Grace, got enthusiastic feedback. With a lunch time crowd from their very first day, it was obvious the Parry's careful research paid off.

"We had no real business plan but a fast learning curve," says Parry. "Even with a plan, though, nothing could have prepared us for what we ended up having to do. You just have to be very flexible, creative, and resourceful."

The Parrys' cafe has also been actively involved in the community, welcoming area musicians and student groups, donating to projects such as Empty Bowls, and building networks with local farmers. They also make themselves available online through a Web site and Myspace page.

Parry says being a "gathering place" is a priority, as is the commitment to fair trade and organic products as well as fresh, local produce.

"That requires more vigilance, and more upkeep," Parry says, but the commitment draws patrons who share their priorities.

Parry is as selective of the cafe's employees as she is its coffee. She decides who gets an application, which then involves essays and multiple choice questions. She listens to the suggestions of her employees.

"When you're a small business you've got to have people who work together well -- in their values, their work ethic, and so on."

Once hired, there is extensive and continuous training.

But, obviously, not all Cape Girardeau small businesses enjoy the same success.

BUSINESS CHALLENGES

Rich Behring kept his kitchen appliance specialty shop, Kitchen Gizmos and Gadgets, open for three years before closing last November.

"We started on a shoestring budget," says Behring, recounting the difficulties he faced in getting financial backing. The former military cook with experience in retail began his small business with a simple plan.

"I knew how much I opened with and how much I had to make per month," he says.

Although he tried some advertising, Behring says the lack of capital limited his opportunities. Even after three years, people would come in having never known the business was there.

Part of the problem, in Behring's mind, was the store's location.

"When I look back, I'd reopen the store in a heartbeat if I could find a better location," he says. Being on Main Street, or one of downtown's more major thoroughfares, could have helped with the visibility issues that a lack of advertising created.

Behring's biggest obstacle, though, was keeping the store open for consistent hours from week to week. Even with the help of his wife, Dotty, and their daughters, the store could not maintain a schedule.

"Sometimes we were only opened for two days a week," he says.

Despite loyalty from several customers and the support of other downtown businesses, it became clear that Kitchen Gizmos and Gadgets was not sustainable. "In terms of overall support, there wasn't enough there on a daily basis," says Behring. However, he doesn't regret taking the risk and feels that he did the best with the resources available to him.

ADAPTING TO CHANGE

Consistency, which Behring struggled with, is the strength of American Ice Cream in Jackson.

A month ago, the Thompson family decided they did not want to make the changes demanded by the Dairy Queen franchise. So, after 50 years, they changed their name. And that's all.

Sarah Thompson, whose father ran the store until retirement, is now the manager. Since the name change, she has had several conversations assuring people that they are still the same owners.

"I think a lot of people in a town like this are loyal to a place that's been here this long. It doesn't matter what it's called as long as the service and product is the same," she says.

On average, Thompson has a 60- to 70- hour work week. She cites having a young workforce as one reason for the long hours.

"If a machine breaks down, you just have to come in," she says. One of Thompson's longtime employees, Kim Mangels, says, "I think a lot of (entrepreneurs) don't realize how much time owners spend on their business. They're used to working hourly and getting a weekly paycheck."

But Thompson says there isn't a choice, owners are at the mercy of their business.

"My house payment depends on whether people are buying ice cream," she says with a shrug.

Grace Parry, too, emphasizes the unpredictability of small business ownership. "Monsoons and earthquakes impact coffee prices. The freeze will impact the cost of produce. You can't really sit back and cry. It's part of owning a business," she says. "Everything takes careful planning and always looking at the budget."