Small Businesses Persevere

Originally Published June 2010

Quad Cities Business News

Small businesses can get excited about the future, according to a 2010 study by Forbes Insights titled Lessons Learned—A Case for Greater Optimism.  The study declares that even though small businesses were “working harder and longer for less” in 2009, the future holds positive growth for small business across the nation.

The case for optimism can be seen in the Quad Cities.  Local small business owners appear to be persevering despite the economic recession.

Prescott Valley’s Economic Development Manger, Greg Fister says, “…As the economy improves and the credit market becomes a little more accommodating, I think more and more entrepreneurs will take the plunge and open their own businesses.”

Local small business owners also sense the recession coming to an end and business increasing.  Kay Luckett of Get Organized, a professional organizing service in Prescott, is optimistic about the future.

“I feel like the recession is lifting,” says Luckett.

In the meantime, Luckett is networking and marketing her service in inexpensive ways.  Much of her business comes through word of mouth. She increases her exposure by distributing brochures about the business and writing an article for Coffee Talk Light News.  Luckett hopes to create more opportunities for her services by volunteering them to non-profit organizations, especially those that help animals.

“As the word gets around more [customers] will call,” says Luckett.  “I’d rather work for nothing than not work at all.”

The economy has not drastically hindered other small business owners in the Quad Cities. One local small business owner, Angie Moran, notes a small reduction in new customer leads, likely a result of poor economic conditions.

Moran has owned and operated Completely Clean, a small home and business cleaning service for the last four years.  She is passionate about strong leadership, customer relations, and improving her business in tough economic times and as regular practice. 

“I’ve taken this opportunity to get better at my business,” Moran says.

She is not alone in this approach.  Forbes Insights indicates that 59% of small business owners have taken time to improve their efficiency and 42% have decided to concentrate on already established customers.

She works hard to keep her prices competitive while staying within the quoted timeframe for service.

“I like to cultivate rich relationships [with customers].” Moran said.

A special report from Guardian Life Small Business Research Institute (Guardian) highlights several strengths of successful small business owners, including an in depth focus on customer relations.  The Guardian study also identifies social media resources, such as Facebook and Twitter, as important tools for marketing.

Two new local business owners are proactive in their networking, which includes social media and other Internet resources. Denise Mueller and her daughter, Nicole Mueller, opened their business, Herman & Lily’s Distributors, LLC. 

(Herman & Lily’s), in October 2009.  The mother-daughter operation provides assistance to individuals with end-of-life preparations.

The Muellers utilize social media and the Internet by maintaining a blog and a Facebook site for the business. They joined the Prescott Valley Chamber of Commerce and visited assisted living facilities to network locally.

“This [strategy] is about building good solid relationships,” says Nicole Mueller.  “It doesn’t cost [us] anything to talk to people.”

Recession commonly brings to mind liquidations sales and vacant storefronts.  According to William J. Dennis, Jr., Senior Research Fellow of the National Federation of Independent Business Research Foundation, an economic downturn sparks business starts on the way out of recession.

“There are two types of business starts - one is called an ‘opportunity’ start and the other is a ‘necessity’ start.  The first occurs when a person sees an opportunity that he/she tries to capture.  The second is when a person has no other option and is forced into it.  Recessions typically cause a large expansion in the number of necessity businesses, ” Dennis says.

Herman & Lily’s opened in October in the thick of the recession and appears to be an exception to this trend.  The business started after seeing an opportunity to provide an uncommon service.  Denise and Nicole plan to expand their business statewide.

“If you’re passionate, it will work out,” says Denise Mueller.

The economic shifts have not gone unnoticed in the Quad Cities.  However, small business owners have applied ingenuity in networking and fine tuning their products and services.  These steps have carried them to what they believe is the end of the recession.

Thoughtful Managing Style Behind Raven Café Success

Originally Published April 2010

Quad Cities Business News

The Raven Cafe is more than food and coffee.  It is a uniquely popular establishment in downtown Prescott.  This cafe serves up specialty beers, fine wines, art, independent musicians, and movies.  Designed by owner, Ty Fitzmorris, as an environmentally sustainable business, it is frequented by just about everyone in town.

A familiar face at the restaurant is Tone Passarelli, the general manager.  He looks over the Tuesday afternoon crowd of mothers with young children, college students, and a few older couples. 

“There is no typical Raven customer.”  Says Tone Passarelli, the Raven Café’s general manager.  “I really love that about us.”

He has been the general manager at the Raven Cafe for the past 2 years.  While Mr. Passarelli says he didn't seek out a “green” business, he now speaks of it with passion.

“I really enjoy helping [Ty] facilitate his vision, taking that on as my own.”  He says.

A tour of the Raven Cafe reveals that sustainability is built in.   The remodeling of the storefront space and construction of both the downstairs and rooftop bar has all been done with a particular goal in mind; leaving the smallest environmental footprint possible.  The wood was harvested from a barn at a nearby Chino Valley farm and the original metal tile roofing has been used to decorate the bar fronts.

The daily grind at the Raven Cafe is fueled by sustainable practices as well.  The cafe has its own garden less than a mile from downtown.  The food is all grown locally in their own garden or other local community gardens.  Leftover food is composted and given back to the same farms that grow the food they serve.

Mr. Passarelli discusses with enthusiasm engaging and supporting the local community.  The Raven Cafe acts as the hub for the Prescott social community. Charitable fundraisers and other community events are held in the cafe throughout the year. One of the establishment’s busiest times of year is the week prior to Tsunami on the Square, an annual performing arts event held on the Courthouse Square.  Mr. Passarelli notes that preview performances are scheduled at the Raven Café all week long.

Mr. Passarelli takes a direct approach in managing the restaurant and its employees including his daughters Rachel, 17 and Samantha, 21.  He focuses on teaching his employees to work in a way that is “all about the business.”

“It’s like creating a culture.” He says.  When problems arise, he puts the success of the business and the vision of sustainability at the center of the discussion.  He believes that problems among the employees are usually a result of someone not feeling valued as part of the company.  Acknowledging the value of his employees guides his approach to management.

The Raven Cafe's general manager has a little-known passion for music that he says is more important than he lets on at work. Mr. Passarelli loves to sing and says that he doesn't spend enough time doing so.   He’s a fan of Tony Bennett and Frank Sinatra.  If he didn’t love his current job, he might be pursuing a career in entertainment.

He met his wife 5 years ago over karaoke at Matt’s Saloon, where he was working at the time.  However, he hasn’t been singing much these days. Mr. Passarelli hopes to focus more energy on singing now that he’s settled into his responsibilities at the café.

“I really have no excuse,” he says, referencing his access to a performance stage, sound equipment and a steady audience. It seems as though this is something that he's hoping to change in the future.  Perhaps, we’ll soon be hearing his rendition of “I Left My Heart in San Francisco” from the stage at the Raven Café.