It’s no secret that Washington State is in the middle of an economic boom. From 2014-2018, Washington ranked solidly in the top 10 of CNBC’s America’s Top States for Business, ranking number one in 2017. Thurston County is deeply involved in this economic growth. The county’s strong economy results from a combination of diverse business sizes and types—public and private industry, with a variety of non-profit organizations thrown into the mix. The Thurston Economic Development Council (EDC) recently shared that private sector job surpassed public sector jobs as the main provider of incomes at 56-59 percent. Of those private sector jobs in Thurston County, 94 percent are from companies that have less than 10 employees. Many small businesses may be wondering how to take advantage of the strong economy. Olympia Federal Savings cares about the strength of small businesses and they have brought together some local experts to give you advice on how to expand your small business during these strong economic times.
Carrie Whisler, VP and commercial relationship manager of OlyFed, Cheryl Selby, mayor of Olympia and former small business owner, Aslan Meade, director for strategic alliances with the Thurston EDC, and Celia Nightingale, director for the Center for Business & Innovation have some great recommendations for small businesses looking to grow, while offering some warnings about pitfalls that business owners should try to avoid.
Look at the “What if?” and Develop a Business Plan
Brain-storming about the “what if?” is a good first step says Whisler. Small business owners should think about the different ways they could expand their business, and also how those expansions would impact their current business. This brainstorm should be used to influence and develop a plan. “Take a step back and do a thorough business plan,” says Selby. “I know it sounds like a broken record, but businesses that fail to plan, plan to fail.” Many small businesses have great ideas and a lot of passion, but that passion can only go so far. It can create a lot of energy, but when a business starts to grow, a solid plan will help direct the momentum so the business can continue to thrive.
Utilize Available Resources
The Thurston EDC is a phenomenal resource. “There are great tools available through the Thurston EDC to help you adjust your plan as your business grows so you aren’t exposed to as much risk when the market turns,” says Selby. Small businesses of all types will find experts available for coaching as well as classes that can help their business thrive. Many of the benefits available at the Thurston EDC are subsidized by local municipalizes like the City of Lacey and the City of Olympia, so they are free or offered at a very low cost to the business, says Meade.
Ways to Expand
Every business is different, but there are a few ways to expand a business. Some of these methods can protect the business in the event of a downturn. Nightingale suggests that you diversify your income streams and also get a really good look at your cash flow. While the business and economy are strong, it is also a great time to look at streamlining efficiency. “When economic times are hard, or the business is faltering, it might be too late to sort out inefficiency,” says Nightingale. Now is also the time to think about investing strategically in income producing assets which can pay off down the line.
What kind of innovation do you have in your products and services? “Consider innovation in product offerings,” says Nightingale, “and think about how your products and services relate to the regional values of our area, whether it be art, nature, non-profits or another aspect of the local community.” Meade echoes this sentiment. “Think about the unique traits that represent Thurston County and how they relate to your business,” he says, “whether it be natural and organic products, craft brewing and distilling, or the food and flavors of the area.”
Pay down debt and build reserves
Many businesses use lines of credit and this is a good time to pay down any higher interest debt that you may have accumulated, says Nightingale. It is also a great time to start saving for a rainy day, or for the next big expenditure that will help your business in the future.
Make Some Long-Term Goals, Develop Long Term Relationships
The day-to-day responsibilities can make small business owners a little near-sighted. It’s important to look ahead and plan for the future with realistic expectations. Selby offers a warning to business owners. “Strong economic times can lull a business owner into thinking the good times are here to stay,” she says. “It is important to stick with your business plan and save each month according to that plan.” Nightingale reminds business owners to continue to cultivate strong customer and professional relationships, which will help stabilize the business across the peaks and valleys of any economic climate.
Small businesses are the heart of Thurston County. It isn’t just the economic value that they bring to the area, but they also bring the unique qualities of their business that cannot be found anywhere else. Thurston County supports the culture of small business, building a strong local community in which we all thrive.
If you are looking to grow your small business, you can find a lot of great resources at the Thurston EDC website. If you are in need of funding to help your business grow, contact Olympia Federal Savings to keep your money local and help other small businesses in the area. Mayor Selby will be hosting an introductory workshop in Tenino on October 18 and in Yelm on October 29 with the Washington Center for Women in Business. Please follow the links to register online for either of these free events.
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