Local business owners use creativity to survive the economic downturn

2008-11-07 / Business

By Sylvie Belmond belmond@theacorn.com

Running a business in this economic environment isn't easy. Local plant nurseries, restaurants and retailers are suffering because fewer customers are spending their money on nonessential goods and services.

Tom Lucas, the owner of Performance Nursery in Moorpark, sells plant products—considered luxuries, not necessities—to homeowners, landscape contractors, developers and gardeners. Lucas operates growing yards at four locations in Southern California, including Moorpark and Somis.

The company began in Long Beach in the late 1970s, and the Moorpark location opened in 1985.

Although the work force numbered 114 not too long ago, Performance was compelled to downsize to 75 this year because of the weak economy, the water shortage and increased fuel costs, Lucas said. Truck drivers now work fewer hours to help preserve the jobs of co-workers.

"It's really a humbling time for me right now," Lucas said. "Having to let go of people has been heartbreaking. I hope to hire them back, but in the meantime, since farming is still doing pretty well, I provided information to employees that had to be let go so they can find new work."

The tough business environment has prompted Lucas to seek new ways to help his company prevail both locally and on the international front in a changed market.

"You must think outside the box to see if there are other possibilities out there," said Lucas.

Locally, he's going to implement new watersaving techniques in his growing yards, and he hopes to partner with irrigation companies who offer watersaving tools to help his customers save money as well.

Lucas will also host free seminars this winter and next spring to help homeowners incorporate water-wise plants in their gardens. The seminars will cover other topics, like planting in the winter and special care for certain plants, he said.

On the international front,

Lucas said, there may be opportunities for him to expand his business in Dubai, which he's visited twice recently.

"There's great demand for landscaping in Dubai," he said.

Another possibility involves creating business partnerships between Dubai and India, a country that Lucas also visited during a mission with the Rotary Club. In addition, he's working with an Australian partner who wants to get a business started in that part of the world.

"We could probably learn from what they're doing there (in Dubai) to rebuild our economy here," Lucas said. Oilrich countries know that supplies of the precious fuel are not endless and new ways to sustain their economies must be developed, he said.

With respect to the downturn, Lucas said if people continue to keep their money in their pockets because they're concerned about their finances, the problem will keep getting worse.

"If nobody is buying anything, we fall further back—it's kind of a self-fulfilling prophecy that is fear-driven by the media," he said. "If we stick together and put our money to work out there, we can all get through this."

Meanwhile, Lucas said, he will be visiting customers face to face and seeing what their personal needs are.

The restaurant industry also faces challenges.

Richard Lester, a restaurant consultant who is in negotiations to purchase Romio's Pizza and Pasta in Moorpark, said restaurants also have to readjust their business strategies to survive the changing economy.

"If they drive their own sales properly, they will survive the economic downturn," Lester said.

Higher-end restaurants are hurting, but quickserving mediumstyle and fastfood restaurants can make it if they provide discounts and deals to attract customers, he said.

Moorpark is a niche community where residents will still go to the local joint that has attractive specials, a decent atmosphere and good food, Lester said.

Also, restaurants must try to predict their business flow so they don't waste food, he said.

"If too much food goes to waste, it destroys your income."

Location is also a factor that must be considered, said Lester. He cited two food outlets in the newly completed Campus Plaza that are online on Craigslist: The owners are seeking buyers for the businesses.

"Part of the problem with some restaurants that have challenges now is that their originating business plan was faulty and skewed," said Lester. The two small retailers in Campus Plaza are not alone in their struggle, he said.

The local businessman is trying to purchase Romio's because he believes the Italian eatery in the Village at Moorpark shopping center has a lot of potential. But he's realistic about his expectations, he said.

"It takes three to five years before a restaurant makes a profit. That's why there is a 98 percent turnover for restaurants," Lester said. He doesn't plan to take a salary for his work during the first year to focus on maximizing profits for investors.

If the deal goes through, Lester said, he would control costs through restructuring of salaries and employees and develop the catering side of the business.

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