HOME     MENU     SEARCH     NEWSLETTER    
CUSTOMER RELATIONSHIP MANAGEMENT NEWS. UPDATED 14 MINUTES AGO.
You are here: Home / Business Briefing / Small Biz Learns Recession Lessons
Neustar, Inc.
Protect your website & network using real-time information & analysis
www.neustar.biz
Small Business Owners Learn Recession Lessons
Small Business Owners Learn Recession Lessons
By Joyce M. Rosenberg Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
JULY
07
2014
For some small business owners, the Great Recession turned out to be a lesson in how to run their companies better. Many owners whose businesses failed during the recession have taken the plunge again, restarting or opening new businesses. But they're not repeating past mistakes. Their companies are leaner, smarter and less risky.

There are no definitive numbers on how many small businesses failed during the recession. But there were 337,303 fewer companies with under 499 employees in 2011 than there were before the recession began, according to the Census Bureau. The government hasn't released more recent statistics, so it's not known how many new companies there are, or how many owners went on to start new businesses.

Here's how some of the companies are making sure they are more recession-resistant:

Internet. Not Inventory

Let someone else take the risk. That's the lesson Frank Muscarello learned from the recession, and the strategy he's used in building MarkITx, an online marketplace where companies from Fortune 500 corporations to the smallest businesses can buy and sell refurbished computers, servers and other high-tech equipment.

Muscarello started Chicago-based MarkITx in December 2009, right after he lost his previous business, Vision Point of Sale, in a bankruptcy auction. That company failed after its bank suddenly demanded collateral on a $3.5 million loan during the credit crisis in 2008. While Muscarello had cash registers worth millions of dollars, the bank considered them almost worthless because they couldn't all be sold within 90 days. Without collateral, the bank called the loan, and because Muscarello couldn't quickly sell his cash registers, he didn't have the money to repay it.

"I never wanted to be in the inventory game again," Muscarello says.

MarkITx doesn't hold any inventory. Its website lists equipment for sale, and helps sellers set a price. The company takes payment from buyers and holds it in escrow until the machines are delivered. It also arranges for equipment to be shipped to a separate company that inspects it and refurbishes it. The website, which began operating in April 2011, has more than 2,300 users.

MarkITx is less vulnerable to economic downturns, Muscarello says.

"I need an inventory-less business model to really grow," he says.

Scaling Back and Restarting

Mark Viggiano has improved his restaurant's chances of success this time around by scaling back. He's serving only dinner, not lunch, at Viggiano's BYOB, and is closed Mondays, typically a slow day at restaurants.

The Italian restaurant reopened in the Philadelphia suburb of Conshohocken a year ago after failing in 2009. By cutting its hours and opening only at its busiest time, Viggiano has lowered overhead costs. He employs a smaller staff. Since most customers make their reservations online, he no longer needs a hostess starting early to take phone calls. He's working in the kitchen, what he loves to do. The changes allow him to have a staff of 14, down from 55. (continued...)

1  2  Next Page >



© 2014 Associated Press/AP Online under contract with NewsEdge. All rights reserved.
 

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY INTEREST YOU
Neustar, Inc. (NYSE: NSR) is a trusted, neutral provider of real-time information and analysis to the Internet, telecommunications, information services, financial services, retail, media and advertising sectors. Neustar applies its advanced, secure technologies in location, identification, and evaluation to help its customers promote and protect their businesses. More information is available at www.neustar.biz.
MORE IN BUSINESS BRIEFING
Product Information and Resources for Technology You Can Use To Boost Your Business
© Copyright 2014 NewsFactor Network, Inc. All rights reserved. Member of Accuserve Ad Network.