Economic data can be misleading when the macro view is taken and applied to a local economy.  Yes, the stock market is hitting new highs and unemployment and inflation rates are under control, but these alone are not harbingers of good times on the local level. The local economy is affected by local issues because most of the earned income (wages) comes from local businesses and most of the sales dollars in the community come from those wage earners.

Begin with a dropping consumer sentiment (consumer confidence index) as reported by the University of Michigan, add a near-record drop in housing sales, throw in the uncertainty of whether one of the largest employers (Emergency One) will again consider building a new state-of-the-art manufacturing facility [which will open the door once more for other states and cities to compete with Florida and Ocala for the facility], and top the mix with the threat of layoffs in both the government and private sectors that will result from a drop in property tax revenues and you get a better 'picture' of what is affecting our local economy.

Consumers are threatened with increasing taxes like a ten percent fire assessment increase (Ocala Star-Banner, 5/17/07) and rising electricity and water rates (Ocala Star-Banner, 5/22/07).  Gasoline prices, already a big component of many family budgets,continue to fluctuate and trend upwards.  It's no wonder that sales are down at many small businesses!

In the last several weeks I have received an increasing number of calls from small business owners wondering what to do as their sales fall to the level where they have to consider laying off employees.  This sales drop is affecting different types of businesses at different rates.  The home builders, home renovators, and construction subcontractors are the most severely affected.  So are sellers of home construction or renovation related items: flooring, carpet, lighting, cabinets, kitchen appliances and so on. 

The sales drop is starting to 'trickle down' to restaurants that report more empty seats at meal time and car dealers reporting more browsers than buyers.  General retail shops report both a reduction in total sales and a drop in the average sale size as customers buy only items that fill an immediate need.

That's the bad news... now, what can be done about it?  First of all, your attitude is important: think of the glass as being half-full, not half-empty.  Then, start to look for alternatives you can offer current customers, and products or services you can market to new customers. Here are a few ideas for various types of businesses:

• Construction companies should consider that as people continue to move to our area, they will need rental housing if they can't afford (or want to risk) purchasing a house.
• Subcontractors can market renovation services to existing homeowners.  A family that was considering moving to a larger house in a good economy, may simply add a room or convert a garage to a room in a slow economy.
• Retailers can use some of their old inventory (the items that seem to sit on the shelves way too long) as loss-leaders to attract buyers into their store.  It is better to sell it at cost or even a loss than to have it sit there another year if doing so will attract a past or new customer who may then purchase other items.
• Restaurants can adjust by developing a new menu with less expensive ingredients and lower labor content in order to cut prices without cutting quantity or quality.  They can consider offering a 'daily special' if they don't already do so, as they will benefit from economies of scale.
• Used car dealers can look into 'zero-down' financing options and 'used car leasing' to convert browsers to buyers.
• Interior decorators can offer "Design on a Dime" type programs as well as designs that incorporate much of what the client already has (re-upholster rather than replace).
• Companies selling' big-ticket' items like kitchen appliances, central air-conditioning, or even lawn irrigation systems can look into financing programs they can offer to make the payments fit the customer's cash flow.

While there is no "magic answer" for any particular business, there ARE many options that can be considered.  As a business owner, you can network with one or more of the organizations that exist to help you achieve success.  These include, but are not limited to, Chambers of Commerce, Trade and Professional Associations, SCORE, and the Small Business Development Center.  You can also find free online publications and training classes from the U.S. Small Business Administration at www.sba.gov.