Duvall & Associates, Inc.
BUSINESS ADVISOR NEWSLETTER
 

Small businesses face tough odds

- by Alan Duvall 

Published in Dayton Daily News   November 26, 2006 

Last week, I ate dinner at the Blue Moon restaurant in the Oregon District. 

As usual, a wonderful dining experience.  But this meal was particularly poignant since the occasion was initiated by a predecessor Dayton Daily article advertising the fact the Blue Moon may soon close due to financial difficulties.   

I have a soft spot in my heart for the plight of small business operators and my meal that night was a personal vote of confidence for a struggling entrepreneur. 

Long-term success in small business is always constant warfare.  Success of any kind in the restaurant industry is nothing short of miraculous.  A recent survey of independent eateries opening in the Columbus, Ohio market displayed a failure rate of 26 percent in the initial year, 60 percent within a three-year period.  The study did not indicate the percentage of survivors earning a decent living. 

An industry article lists restaurateur success parameters as requiring a “broad-based knowledge of marketing, financial management, business planning, purchasing, inventory management, business law, insurance, advertising and personnel.”   

Renaissance entrepreneur – that’s an abundance of intellectual hats to simultaneously adorn one person’s head.  After all, restaurateurs cannot economically avail themselves of a full-time staff of business consultants.  But such is the nature of independent restaurant owners - the complexity of their work literally consumes their lives. 

The Dayton Daily article cited the opening of several new chain restaurants in the area as generating a negative impact on Blue Moon business.  Formulaic food chains not only draw customers from local restaurants but employees as well, thus increasing costs and attendant prices. 

Ironically, phoenix-like CoCo’s has resurfaced around the corner on Wayne Street - a new development which also had to play a huge part in the patronage of Blue Moon.  Contrary to views of misguided pundits - new competition is not always good for business.     

I fervently believe the unique character of a city is largely articulated by the quality and variety of its locally-owned restaurants.  It’s difficult to reflect on visits to San Francisco, New Orleans or Charleston, SC without drooling over memories of dining experiences.  

If you too feel such sympathies, attempt to evolve from knee-jerk chain impulses and visit locally owned fine dining restaurants.

Alan Duvall is a certified public accountant in Dayton.  Contact him at Alan@Duvallcpa.com.