Sunday, June 27, 2010
Startups in lean times
The recession drew some people into self-employment, but for others, it's happenstance.
MATT GENTRY The Roanoke Times
Fred Cook (left) and Rishi Ishairzay discuss the user experience of their Actifity social networking software design in their Virginia Tech Corporate Research Center office.
SAM DEAN The Roanoke Times
Star City Gardens owner Amanda Bass opened the business at 4701 Melrose Ave. N.W. in April.
JUSTIN COOK The Roanoke Times
Anne Giles Clelland of Handshake Media works out at the Weight Club in Blacksburg. She says that she is able to mentally zone-out during her workout and think creatively.
The latest from The Ticker blog
Last year was the year of the entrepreneur.
The number of Americans starting businesses increased 4 percent from 2008, according to a May report from the Ewing Marion Kauffman Foundation . About 340 people launched start ups every month in 2009, with the largest increases among 35- to 44-year-olds and 55- to 64-year-olds. The Kauffman Index of Entrepreneurial Activity reached its highest level in 14 years, exceeding even the 1999-2000 technology boom.
The catalyst of that business innovation?
The recession drew some people into self-employment because of job cuts, said Mike Smith, director of Roanoke College's Center for Leadership and Entrepreneurial Innovation . Other people, boosted by a second round of college, a business plan and dreams, couldn't resist renting vacant prime property, Smith said. Banks are reluctant yet still willing to lend, he added.
But the recession hasn't motivated all new business owners. For some, it's happenstance.
Planting new roots
Amanda Bass moved to Roanoke County in January when her husband changed jobs. Three months later, she opened Star City Gardens garden center on Melrose Avenue Northwest in Roanoke. Bass, 33, started her career in her family's plant wholesale business, Carolina Nurseries , in South Carolina.
Q: What made you want to start a retail store?
A: I've always wanted to start a business. I've always loved garden centers, and I had the chance. Most people when they come to garden centers are happy, so garden centers should be happy places. You get to be outdoors. Y ou get to move around.
Q: Why was now the right time?
A: Most of the horticulture business is in the spring, and if you miss that spring, you're going to struggle for the rest of the year. We found the property, and we said we might as well try now.
Q: Does the financial side of doing this worry you?
A: No, not really, because I've been in the industry long term. If you manage your inventory well, garden centers can usually keep plugging along. Right now, it's easy to manage.
Q: Why is this area a good place for a garden center? You have to compete with big-box stores, like Walmart and Lowe's, selling plants in Northeast and Southwest Roanoke.
A: If you try to compete with Walmart, Home Depot and Lowe's, you'll go crazy -- and you won't make any money. If you buy a $2 plant there, it doesn't mean you're getting the same customer service or the right plant. You'll pay a little bit more, but every single person who works here is very knowledgeable about what you're putting in the ground.
A profound influence
Fred Cook, 24, has a master's degree from Virginia Tech in engineering mechanics, b ut he'd rather go into business.
Cook and Tech student Rishi Ishairzay built their business, Actifity , this spring after Cook's graduation. The site is a social network that tracks users' health and fitness. It will launch publicly at the end of the summer, Cook said.
Q: What made you want to start something on your own rather than find a company or firm to work for?
A: I've always had an inkling that I wanted to be an entrepreneur. Looking at the various things one can spend their life working on, it seemed to me the people who were most successful that I knew worked for themselves.
I figured it was at least worth a shot.
In terms of why right out of college: So on April 16, 2007, there was this shooting here at Virginia Tech.
I was in a classroom with an instructor named Liviu Librescu. We were in the second floor, Norris Hall. There were 15 of us or so in that room, and about 12 of us jumped out of the second-story window to escape. Dr. Librescu was killed, and another student in our class was killed. Several students in our class were injured.
That had very profound influence on the way that I had planned on living my life. It made me think that sitting down and saying, "OK, I'm going to work at a company for a few years, I'm going to learn these things," and lay out a life plan -- it wasn't something I was going to do anymore.
I don't plan on ever working for somebody or working on a project that I wasn't passionate about and that I wasn't believing in.
Q: So did the state of the economy factor into your decision at all?
A: No. Not at all.
Q: Does the current economy make it easier or harder?
A: I don't know if it would be any easier. Consumer spending is down, so in that sense, that makes it a little bit harder.
But the opportunities are absolutely still there, and they're not going to go away.
A much greater context
Anne Giles Clelland is the owner of Handshake Media in Blacksburg. She began the social media services company in late 2008, after 15 years in teaching. She's 51 years old.
Q: Why are you doing this?
A: It's the possibility to make a change. It's the possibility to offer opportunity to others.
Q: Is this your first business venture?
I had a Web site development company 10 years ago. It was not profitable, and I had to close it down. I am the classic "yes, I have failed" entrepreneur. I am not going to fail this time.
I'm a woman. I'm 50. I'm a sprint triathlete, and I have seen some things. It seems like the perfect culmination and synthesis of my life experience, my credentials and my expertise.
Q: What's it like to start a business that late in life?
A: My father's 77. My grandmother's 100. I have only begun my career. I have a long, healthy life ahead of me, genetically.
Q: Are there benefits or challenges because of your age?
A: It's the best time to start a business in almost every way. What is it that I have now at 50 that I didn't have at 25? I have perspective. I have a vista. I can see how pieces can fit into a wider view. I have a much greater context in which to make choices.
