Small businesses thriving despite national woes

The economy's not all bad.

Some small businesses in the area are continuing to see growth or plan for future expansion despite the national economic downturn.

Brian J. Fraser, owner of Sundance Leisure in Watertown, said his business has increased 10 percent over 2007.

In large part, that's due to high fuel prices over the last year.

"That had a lot of people buying pellet stoves and wood stoves," Mr. Fraser said. "It's an expense that will pay for itself."

Sales of wood-burning stoves and wood-pellet stoves surged from May through October and dropped off only recently before returning to average levels.

And because many people didn't drive or fly for vacations, swimming pool and hot tub sales also increased.

"There are only two dealers statewide that had more pool sales — us and one in Herkimer," Mr. Fraser said. "It's because we've been here so long. We get a lot of business off referrals."

The surge of sales this year will lead to more consistent income in the future with sales of pool chemicals, wood pellets and service.

"The more pellet stoves we sell, the more people out there who need pellets," he said.

Sundance's stock of wood pellets is about 70 tons, with two tractor-trailer loads coming in this week.

Mr. Fraser found a third supplier to give him enough to meet the demand. "We have a pretty good supply," he said.

Sundance, at 19281 Route 11, has installation or maintenance contracts with Fort Drum and St. Lawrence University, Canton, that also give consistent income.

"The continued expansion of Fort Drum has had a ripple effect in the north country, as businesses that serve the military base grow to meet the needs of soldiers and their families," said Bernard J. Paprocki, district director for the U.S. Small Business Administration, by e-mail. "Small businesses are more nimble and can react to changing conditions more quickly than larger businesses."

SBA has seen more calls on its small-business economic hot line, especially from auto dealers and restaurants.

F. Eric Constance, director of the Small Business Development Center at Jefferson Community College, said the center has seen slightly fewer visitors interested in starting or expanding a business and more who are seeking counseling.

In general, he said, Jefferson County seems to be pretty stable. But restaurants — especially those locally owned — are having a tough time.

"That's the worst extreme out there," Mr. Constance said. "There are spiraling costs, and even the best managers have trouble dealing with those costs and the seasonality here."

But there are a few that have managed to make changes to deal with the costs.

One example is Mr. Rick's Bakery, 525 Mill St.

In the face of nearly tripled flour costs, astronomical fuel costs and high utility prices, owners Paul G. and Frances M. Alberry cut costs, changed delivery policies and raised some prices.

They upgraded the air conditioning and compressor and installed a new seal and plastic curtains on their walk-in refrigerators.

"We saved $500 in one month by holding the cold air in," Mr. Alberry said.

The bakery dropped deliveries for orders less than $20. "We didn't want to do it, but we had to," he said.

And the cost of a loaf of Italian bread increased from $1.35 to $1.85 in February. The Alberrys decided increasing the cost would be better than cutting the size of the loaf.

They've also added business in Lewis County and searched for off-season customers, such as snow resorts.

"I hit the street," Mr. Alberry said.

The bakery has grown from 10 to 200 clients in seven years. It uses up to 5,000 pounds of flour each week to make 500 loaves of bread and 30 pounds of muffins each day.

But no matter what happens, the Alberrys are not skimping on taking care of their 10 employees.

"You've got to get good help and treat them well," Mrs. Alberry said. "Your employees are the backbone of your business. Without them, you can't do it."

Mr. Paprocki said, "Small businesses can survive and thrive in economically challenging times by evaluating the financial underpinnings of their small business, reconnecting with customers to demonstrate that their product or service has value, looking at their business with customer eyes, and cutting the extras."

Chiropractor Danielle L. Lundy, owner of Chiropractic Wellness Center of Northern New York, said her practice hasn't seen a slowdown since it opened in September 2007 in Madison Barracks, Sackets Harbor, and Freedom Plaza, Evans Mills.

"The economy is not affecting our business right now," she said. "We are doing better than projected for the down season in Sackets Harbor."

The summer season is busy in Sackets Harbor with snowbirds, while the winter brings more teachers into the Evans Mills office as part of their routine. And this winter the spa at the Madison Barracks office is seeing an influx of clients from gift certificates from the holidays in 2007.

Ms. Lundy credits the use of massage in the chiropractic visits.

"What we do is so unique and therapeutic for patients," she said. "They get better faster and are keeping better longer."

As a native of Beaver Falls, she said she'd like to open an office in Lewis County. At Madison Barracks, she eventually wants to expand the practice into a second floor with services in nutrition, physical therapy, dermatology and counseling.

Mr. Constance said this year's holiday season will be important to many north country small businesses.

"I get really nervous about the rest of the country," he said. "If we can keep ourselves above what's going on, we'll be doing pretty well."