Recession is bringing tough times to downtown businesses

Here in Wilmington, the recession continues to hit downtown businesses with a one-two punch, leading some businesses owners to fear they will have to close their doors.

Small businesses play a huge role in our economy, but some of the shops we visited downtown said they are struggling to survive. Downtown Wilmington store owner, Judy Perkins said, “I’m barely surviving. It is a tough economy. In fact, I think it’s the worst I’ve seen it.”

After 30 years of working for GE, Judy dreamed of owning her own jewelry store. Today she runs JP Jewelry and Accessories on Front Street. She has been in business for one year, but the recession has turned her dream into a nightmare.

“I don’t know if I would have gone into business if I had known the economy was going to be like it is now,” she said.

Isaac Lazar owns Isaac Clothing Store, a Front Street staple for 34 years. He said business is the slowest it has ever been. “We’d like people to come back and start buying and spending; having faith in the economy.”

According to the Small Business Administration, small businesses make up 49 percent of North Carolina’s work force and the vast majority of businesses across the nation. So when they struggle, the country struggles.

Experts at UNC Wilmington’s Small Business Technology Development Center suggest these tips for owners:

1) Communication is key. Be honest with lenders, landlords or suppliers about your situation. Don’t be afraid to negotiate for better prices or payment terms.

2) Cut back on expenses. Find cheaper ways to run you business.

3) Focus on your existing customers. Ask customers for referrals. Offer rewards. They know your products and can offer ideas about who should do business with you.

Although Perkins said her business is suffering, she remains optimistic her doors will stay open. “I’m keeping the faith, and I’m hoping things are going to turn around.”

Many shop owners said they are offering more discounts and using special events to advertise and sell merchandise. UNCW’s Small Business Development Technology Center offers free workshops and seminars for businesses across area.

If you would like more information call 910-962-3744, or check out the Small Business and Technology Development Center website.