My ‘Main Street’ is SW Hocken Avenue

a guest post by Monique Hayward

(www.bizchicksrule.com) — Now that we have a bailout package from our politicians in Washington, let’s hope that small business owners really begin to see the signs of a turnaround. I wrote an editorial for our local newspaper that ran on Oct. 1, and I appeared on CNN’s "Newsroom" program on Oct. 3 to highlight the effects of the financial and economic crisis on "Main Street." And I can tell you from the emails, phone calls, and text messages I received from entrepreneurs from all walks of life, we are all feeling this pain.

I own Dessert Noir Café & Bar (www.dessertnoir.com) in Beaverton, Oregon, and restaurants are on the front line of consumer sentiment. My "Main Street" is "SW Hocken Avenue," and this crisis has already been very close to home for a long time. I saw the first signs of today’s economic troubles in April 2007, well ahead of last summer’s bad news. Back then, I lost customers who teetered on the edge of personal economic failure, living beyond their means in houses they couldn’t afford.

Without the “sub-prime drop-ins,” I counted on my core customers who still felt secure in their jobs and investments. However, Wall Street’s meltdown and the resulting impact on the economy and credit markets have changed that picture dramatically. Now even my most affluent, fiscally prudent customers are running for cover. Times are tough for them, too, as gas still hovers close to $4/gallon, food and energy prices continue their relentless rise, and their investment portfolios dwindle in value.

Here’s my question: Where’s the middle ground?

Most people are so far “underground,” endangering the survival of small businesses that create the vast majority of our jobs and fuel our local economy. I think there’s a fundamental lack of understanding among the "body politic" about how our financial system works. Citizens decry the rescue of "fat cats" on Wall Street, looking upon our government’s actions as yet another giveaway to big corporate interests at the expense of the middle class. However, the ability to take advantage of the credit marketplace is critical to the success of the economy. If credit dries up, that means entrepreneurs cannot fund day-to-day operations, expansion plans, or hire new employees. And that has significant ramifications on Main Street: We are the growth engine for jobs and investment in America, and with no “fuel,” the engine doesn’t keep running for long.

Therefore, community support for small businesses is especially critical during a downturn, when you hear about the Starbucks and Home Depots of the world “catching a cold” and figure that the “little guy” has “pneumonia.” As consumers cut back on spending and banks stop lending, that leaves small business owners like us in a bind – i.e., not generating enough revenue to cover expenses and having no access to working capital to get by in the meantime. With both ends playing against the middle, I’m closing early, sending staff home, and keeping inventory levels as low as possible to save costs. You can see the ripple effect: My vendors, suppliers, and service providers, most of whom are small businesses themselves, feel my pain because restaurants like mine are placing smaller, less frequent orders; deferring maintenance projects; and delaying equipment upgrades and purchases.

So much is at stake – my investment in my business, my community, my employees, my financial future. The national debate about how to resolve the financial crisis must include direct investment in the communities where folks are really hurting and measures that increase consumer confidence to get you spending your money with hope and certainty about the future.

As business owners, we also must put a "full-court press" on our customers to make room for us in their personal and family budgets. Rise above the bad news and realize that communities live and die by local neighborhood bistros, flower shops, wineries, repair shops, and the vast array of other small businesses so critical to their success.

We’re in it together.

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Monique Hayward is President & CEO of Nouveau Connoisseurs Corp., which she founded in April 2004 and owns and operates the award-winning Dessert Noir Café & Bar in Beaverton, Ore. Monique was recently named a winner of the Make Mine a Million $ Business program, a collaboration between Count Me In for Women’s Economic Independence and OPEN from American Express to assist women entrepreneurs with achieving the million-dollar revenue mark.

Enter to win a free copy of QuickBooks Simple Start with Learning Accounting Essentials! Deadline: Monday, October 13.

(image: Newscom)

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