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Pet Related
Opportunities
Special Report Section
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(ISSN 0193-3221)
contents
20
8
13
16
special report:
34
franchises
business opportunities
Central Bark Cofounder, Jackie Jordan P.16 Fast Food Outsourcing in Charlotte P.35
e
love
our pets!
And why not?
Theyre not just
loyal companions theyre
a part of our
families.
Opportunities
PetRelated
Thats up from an
estimated $17 billion in total pet
industry expenditures in 1994. Some
put the figure for
2008 even higher.
What is behind this
industry
growth
and size? In part, it
is as simple as consumers deep-seated love of their pets.
But also, pet ownership is growing. According to the American Pet Products
Association,
63%
of U.S. households
own a pet, which
equates to 71.1 millions homes. Thats
up from 56% of U.S.
households in 1988,
the first year the survey was conducted.
AlreadyBig,ButGrowingStrong
Plus, there are more and more products available for pets. Not
only has there been a proliferation of pet products, but also there
has been an increase in professional services available. From pet
waste removal, innovative pet (and owner!) training, doggy day
care, kenneling and grooming, to complete funeral services and
related memorialization services to address the grief of losing a
pet, todays pet lover has it all.
With many of these services available as franchised business
models, and with many of these services being relatively new in
comparison with other franchise categories, entrepreneurs interested in franchising should take a good look at the pet related
opportunities currently available. Many excellent territories still
exist.
As readers will see, a big caveat for many of the opportunities is
that entrepreneurs must first ask themselves, do I love pets? If
the answer is yes, then the time might be right for a good look
at pet related opportunities. In the pages that follow, Business
Opportunities Journal interviews executives from across the pet
related opportunities spectrum, including pet training (p. 8),
waste removal (p. 13), day care (p. 16), and pet memorialization
(p. 20). In addition, we have selected fifteen opportunities for inclusion in a directory of pet related opportunities (p. 28).
But what about the outlook given the current economic conditions? Many (including us, see our January 09 edition), have
predicted that pet related businesses may be more recession resistant than other industries. But what do the experts think? We
asked Pet Care Services Association CEO, Joseph Lyman, to comment on the current economic outlook (p. 24). In addition, take
a look at the American Kennel Associations recent member poll
(p. 26), which has some good news for the industry despite the
harsh economic times. --Mark Adkins
pet training
Bark Busters: A
Lot More to Say
than GDay
B
(Above) Bark Buster trainer Connie Archer & client in Houston, TX.
now. Well we got Buddy and we tried everything else that we had tried with previous
dogs and it just wasnt working. We were
at our wits end. We tried various trainers.
Then one day we spoke to our veterinarian.
Ironically, to this day, about 40%
of the work we receive or inquiries that we receive come from
recommendations from the vet.
So he said Call Bark Busters. So
we called them. We were just
absolutely blown away by how
quickly and effectively we were
able to train our dog Buddy.
That was it. We said we want to
do this for a living. So, with little
or no dog training background,
we were trained by Danny and
Sylvia, the founders, and here
we are today. Weve been doing
this since 1995.
as well. Also, dog walking services, pet sitting services, and poop scooping services.
The amount of money that is created by the
pet industry is just phenomenal. We want
to be able to tap into that to be able to enhance our existing franchise owners ability
to earn as a professional services provider.
BOJ: What are typical backgrounds your
franchisees have?
Liam: Weve got people from all different
walks of life. Weve got scientists, police
officers, teachers, former business owners,
all sorts of people. The fact that they
can be their own boss with the flexibility of the lifestyle in terms
of hours is a huge attraction
to people.
10
A Dogs Life
hosted by Greg Kleva
Bark Busters Dog Behavioral Therapist & Master Trainer
12
Greg Kleva, dog behavioral therapist and master trainer with Bark Busters,
the worlds largest home dog training company, will host A Dogs Life on
Martha Stewart Living Radio Sirius Channel 112. Greg will help owners
understand their dogs thinking, reduce problem behaviors and improve their
relationship. Many people go through their lives tolerating their dog's bad
behavior and never getting to the point where they have the emotional bond
Pet Butler
Pet Waste Removal
A Recurring Revenue Model
14
By the way, we do quite a bit of commercial business too, its not just residential.
We have hundreds of apartments and
multifamily communities around the
country that we service, whether it be the
pet stations or the actual service of cleaning up their properties.
Matt: Number one is to become a household name synonymous with the industry. By far the number one thing we are
all shooting towards is becoming that
household name that is the name of the
industry. Like the Kleenex, the Chapstick,
the Xerox of the industry. Beyond that, six
months before we launched our first franchise, back in 05 I set five goals and we
are exceeding every one of them so far.
They were to have a hundred franchises in
five years. Weve already surpassed that.
To operate in all of the 50 largest metro
markets. We are well on our way to that.
I think we are in 32 of the top 50 metro
markets right now. To offer service to 50
million people thats not provide, but
thats offer service to 50 million people.
To collect half a million dollars per week
for our franchisees. So basically do $26
million in five years. These were five year
goals. And then collectively to donate
$100,000 per year to family friendly organizations and another $100,000 a year to
pet friendly organizations. | BOJ
BOJ: How did Central Bark Doggy Day Care come about
as a company and then as a franchise?
Jackie: I have been running my doggy day care locations for almost 13 years. I started with one facility back
in January of 1997 in blue-collar Milwaukee, Wisconsin,
when no one had ever heard of doggy day care yet and
everyone said it couldnt be done. It was a challenge to
get people not to laugh at me! Eventually, I was able to
get a home equity line of credit to start my business.
I opened my second location within the next 2 and a
half years. I opened my third within 2 years after that.
Its done nothing but grow.
In the process I always thought of the idea of franchising but wasnt sure if thats the route I wanted to go. I
had a friend who was in the MBA program at the Uni Business Opportunities Journal
16
versity of Chicago and he did a venture capital challenge class which was a competition. You come up
with an idea, a business plan, a new one or existing one
you want to take to a larger scale. So he said Well lets
do doggy day care, and I said OK, fine Ill help you.
So in a world of high end technical, medical, computer
and all that kind of stuff, we were presenting doggy
day care. Everybody thought it was funny and cute but
we kept making the different levels of the competition.
We kept getting approved and getting approved and
passing to the next level. So finally were in the finals
of this competition, and we presented to a room full
of venture capitalists. They really liked the concept but
they didnt feel it was a VC type of opportunity but was
more of a franchise model. They wanted to acknowledge the plan so we won a fourth place acknowledgement. They really only had first through third but they
created fourth because they liked the idea so much!
BOJ: Did you just continue to grow the business organically?
Jackie: Organically. We decided that it was something
where we could get investors but we wanted to try doing it on our own. We didnt want to give up any kind of
really truly a Day Care. We offer 5 core services, but our bread and butter is the dog
Day Care. Id say 65-70% of our revenue is
on Day Care, then the rest is icing on the
cake. We also offer sleep overs. We dont
call it boarding. We dont call it kenneling.
Its sleep overs because your dog has to
be part of our Day Care program in order
for them to sleep over. So its very different. There are a lot of glorified kennels out
there that will try to have the Day Care
component to it, but we are truly the Day
Care model. The reason why we choose
to do that is because its whats best for
the dog. Anytime you have dog-to-dog
interaction there are potential problems.
If youre not putting the right dogs with
the right dogs. People can not get along
and argue, but the way dogs argue, its
with their teeth, so we want to make
sure that were screening the dogs really
well, that were putting the dogs with the
right playmates and making sure that
were creating the safest, healthiest, most
nurturing environment that we can for
the dogs. Were
about the dogs,
so the dogs
have to come
a minimum of
once a week in
our
program.
We dont take
the Gee, its
convenient for
me to get the
dog out of the
house because
the cleaners are
coming today
kind of customers. Were committed, and our
customers are
committed to
whats best for
the dogs. And
its a consistent
program. The
dog comes consistently, most
of our customers use us a
couple of times
a week, with a
17
BOJ: And you developed a franchise business model out of this research?
Matthews Cremation
H
Interview with Steve Schaal, Division Manager,Sales & Marketing, Matthews Cremation
about franchising, because we do all of it,
but we dont do franchising.
But I will share with you that there are many
that we have set up who are looking at
franchising, and are carrying a big picture
vision of what this truly could mean from
a national perspective.
BOJ: What do you see as the business
opportunity that is available for entrepreneurs in this field? Is it providing pet
memorial services from a more holistic
perspective, helping to take care of the
pet owners needs in the grieving process,
above and beyond the physical cremation
process?
Steve: What we are championing, and this
is a different model from the earlier pioneers, is were actually encouraging them
to invite families to come to their facility
and have an area laid out that not only is
professional in nature, but more importantly gives them a chance to sit down and
discuss the types of arrangements they
would like that can be as modest as the
service itself or may be a committal which
allows them a chance to have a minister
come in and provide a memorial service,
offer a variety of different products from
which to choose. From garden memorials
to burial products to scattering products,
all the things that you would find in the human side would be just as applicable to the
animal care side. Even including memorial
video tributes.
We just recently went through the loss of
a dog, our dog passed away, 11 years old,
and my children spent a few days going
through the albums, and we came up with
a collage of pictures that we put to a video
tribute for our dog Samantha. You know,
my children are older, but its funny, the
tribute they have is located on their Facebook page. My one son is 63, 220 and he
cant even talk about Samantha without
choking up with this video that he helped
create with us. Its been a wonderful relief
for him to occasionally be reminded, to
be able to turn it on and to work through
the celebration, as we like to call it, of
companionship.
BOJ: So it is a major shift toward serving the
pet owners grief, not simply providing the
cremation services?
Steve: There are many people carrying this
profound loss, and still hiding for fear of being minimized, the pain being minimized,
and there are many of those who until
you talk about it, until you identify it, until
you build the community network, the
awareness of it, theres a lot of them out
there that are simply just going through
the process and can not talk about it. And
this could be a death of a pet that could
have passed away years ago that theyre
still harboring inside. What were doing, the
movement that is happening, and believe
me, its being driven by the consumer, the
consumer is driving this direction, not
us, were simply recognizing the calling
and making it an opportunity across the
country. The fact is that theyre looking for
something that is appropriate and meaningful for them and the definition of that
can be anything. It could be someone that
says you know what, I really dont want
my pet back, go ahead and do whatever
you do, and they simply let the pet go. Or,
like we did, they say No, I want Samantha
returned, I want her back, I want to pick
out what were going to do, I want to pick
the right garden material, I want to pick
the right cemetery ground, I want to pick
what we believe is most appropriate for us.
BOJ: Are the services provided in the industry fairly uniform?
Steve: There are two types of services
that you will find when you are networking with these facilities and that is either
what is called a communal service or a
private service. You can imagine that the
communal service is nothing more than
a cremation taking place with a certain
quantity of pets, all being done at the same
time. The private cremation services are
obviously one pet only, one container at
a time being cremated so that way those
cremated remains are not comingled or
confused with any other pets. They are
21
piece that we include with equipment because when people look to buy equipment,
especially early entrepreneurs, there are
two things we try to provide. Number one,
we have a great finance network to help
people starting their business. Number
two, we love to give you all of the collateral
pieces at a modest cost, because we know
that advertising and brand developing
and all of the awareness components that
have to be a part of the equation can cost
a substantial amount of money. So what
we have done is we have built a boiler
plate for anyone wanting to get in that
can give you these tools that can literally
be branded. You can leave them as Faithful
Forever, which is our template, or you can
literally have it transferred as something
of your own. All of the pieces look and feel
exactly as you.
IVISION
TION D
CREMA
Matthews CreMation
stiMulus PaCkage
pet equipment
power pak Jr.
815
Online at www.matthewscremation.com
Email: sschaal@matw.com
CREMATION DIVISION
$
**Based on $55,000 budget, 84 month term, 20% PRO
Lease, first & last payments in advance plus processing
fee, requires financial statements, on approved credit.
A Month**
23
EQUIPMENT
SERVICE & SUPPLIES
E m b r a c E
t h E
o p p o r t u n i t y
guestexpert>>
Economic Outlook
Pet Care Services Association
This past month, the Pet Care Services Association performed an informal poll to ask members the following question: How much is business
down (in revenue) this year? Of the
2,400 members asked to complete
the survey electronically, 246 members answered, or
more than
10% of
those
it was
sent
t o
51% of those responding said
their revenue increased in 2008.
15% of those responding said
revenue was down 16% or more.
34% responded that revenues
had decreased between 0-15%.
However, the story is not in the numbers, it is in the details. After speaking
with a number of facility
owners to discuss the results, there were many
sides to what has happened with regard to
2008 revenues and
how timing has affected their ability to create
positive business conditions.
Wendy Oleksiak, R.N. of Cohasset and Duxbury Kennels located in Cohasset
and Duxbury, Massachusetts, respectively,
says that early
gains
she
saw at the
beginning
of the year
are just now
being
diminished by
the economic
downturn that
has affected the
24
fourth quarter
of 2008. She
says, While we
saw
revenue
growth in 2008
as
compared
with 2007, I
believe we are
now starting to
feel the impact Joseph Lyman, CEO PCSA
of the economic
recession in our area. The Thanksgiving season was up slightly in 2008
as compared with the same period
in 2007 (approximately 3% growth).
However, we saw a 25% decrease in
revenue during Christmas 2008. Our
next big focus is February vacation
and the winter ski season. These will
be good indicators for the balance
of 2009 and will help us understand
what we need to do to ensure a profitable year.
Others such as Nicole MacDuff of
Manoir Kanisha located in Montreal,
Quebec have not been affected by
the downturn, yet. However, this is
largely due to the fact that she has
been earning business from those
that were once customers of other
pet care facilities that have since gone
out of business. Nicole says, The
economic downturn is beginning to
affect the boarding industry in the
Montreal area. We have experienced
clients losing their job, therefore canceling their vacation and pet boarding reservations. However, the closing
of four local kennels & grooming facilities in our area has resulted in their
clients coming to Manoir Kanisha.
This has resulted in many new clients
and an increase of 14.6% in 2008 fall
revenues. The long term effects are
hard to quantify. The business of Pet
Relocation is driven by slightly differ-
Economic Outlook
seem to be consistent about. PetPartners, Inc., provider of the AKC Pet Healthcare Plan, says that sales rates
are holding up and owners are renewing their policies in consistently high numbers. This shows that pet
owners view pet insurance as a way to manage their
pets health care costs. Some dog owners have even
opted to purchase health plans for their dogs over
26
Pet C
a
ion
iat
ices
Serv Assoc
e
r
Ba
sic Training
OURREVIEWS
FEWOPPORTUNITIES
There are few business opportunities in life that will afford you
the freedom to do exactly what you wantfew opportunities that
will reward you financially for doing exactly what you enjoy.
THEEVENT
Join us for the Pet Care Services Spring 2009 Basic
Training at Tuscany Suites and Casino in Las Vegas,
March 15 - 18, 2009.
PCSAs Basic Training is the leading provider for all the information you need to develop and grow your pet care services business.
Learn the dos and donts of pet services,
Pinpoint ways to finance your facility,
Identify a plan for establishing sound business operations,
Develop an understanding of your target market,
Gain insight into staffing your facility, and
Find out how to provide expert customer relations
Grooming
Aussie Pet Mobile
Hydro-Groom
Pet Training
We picked the following 15 pet related opportunities to provide an at-a-glance overview of some key categories in the
field. There are many more opportunities available, but these
caught our eye for one reason or another. Please check with
the businesses for the latest information and disclosures.
Bark Busters
Number: 877-300-BARK
Website: www.barkbusters.com
Founded: 1989
Category: Dog Training
Number of Locations: Over 320
Description: Bark Busters provides in-home training services for pets of all breeds and ages. Having
trained over 500,000 pets worldwide, Bark Busters
has been named Best of the Best by the SPCA for
their global excellence in dog behavioral training.
Contraband Detection
Interquest Detection Canines
Number: 1-800-481-7768
Website: www.interquestfranchise.com
Founded: 1988, franchised in 1999
Category: Contraband Detection Canine Services.
Number of Locations: 40
Description: Interquest Detection Canines specialize
in detecting contraband, firearms and other illegal
items. Interquest Detection Canines are usually found
assisting local schools to detect substances that may
be harmful to the surrounding environment.
28
Number: 866-799-2275
Website: www.centralbarkusa.com
Founded: 1997
Category: Day Care and Boarding
Number of Locations: 32
Description: Full service facilities
for day care, boarding, supply shop,
grooming, vet care and canine cab
pick-up and drop-off service.
Day Care
Home away from Home
Number: 866-338-2463
Website: www.fetchpetcare.com
Founded: 2002; Franchised in 2004
Category: Day Care and Boarding
Description: Pet care service that provides in-home pet care visits in over
1,700 cities. Visits include waste management, dog walking and dogsitting
(both daily and overnight), as well as
regular household maintenance like
watering plants and retrieving mail.
Waste Removal
Pet Butler
Number: 1-800-PET-BUTLER
Website: www.petbutler.com
Category: Pet Waste Removal
Number of Locations: 132
Description: Pet Butler is a pet waste
removal service, providing professional removal of pet waste to private
residential areas and community
parks. Other services include yard
maintenance to ward off bugs and
maintain lawns and patios.
Dogtopia
Number: 240-514-0210
Website: www.happytailsdogspa.com
Founded: 2002; Franchised in 2005
Category: Daycare and Boarding
Number of Locations: 50
Description: Services available at Dogtopia locations include day care, overnight boarding, spa services, dog training and a gift boutique.
Photography
DoodyCalls
29
Pet Food
& Supplies
Number: 888-332-0307
Website: www.justdogsgourmet.
com
Founded: 1998
Category: Pet Food
Number of Locations: 41
Description: Just Dogs! Gourmet
specializes in baking hand-cut, allnatural dog treats.
30
s
w
e
N
g
n
i
k
a
Franchises M
Licensing key for Einstein Noah growth in 09
AP Wire Service
The fast-casual coffee and bagel chain said this month that
it plans to open six to eight new restaurants on its own,
matched with the same number of franchise restaurants
this year, where franchisees develop a new store that meets
company guidelines.
Advertise in the
Einstein Noah started the year with 648 Einstein Bros. Bagels,
Noahs New York Bagels and Manhattan Bagel restaurants.
A little more than one-third were franchised or licensed
locations. The company aims for about half its restaurants
to be franchised or licensed by 2012. Einstein Noah had 612
total restaurants at the end of 2007.
BusinessOpportunitiesJournal
We specialize in covering the serious
business of franchises, business opportunities, and real estate investments.
FRANCHISING NEWS
By GARRET FELDER
West Central Tribune
32
store in Mora.
``We were in a lot of small towns, Gordon said. ``And at
that time, in 86, we were the first chain that was delivering in these small towns. You did not see delivery service
in small towns in those days, and I think that was a niche
for us.
Soon, Gordon, his wife, Jana, and Gordons parents were
operating five pizza stores per couple and then selling
them to store managers.
Jana said the family found that ``every town has its own
personality and its always kind of a challenge to see
what works in what town.
Over 10 years and numerous stores later, the state of
Minnesota contacted Gordon about the business arrangement he was making with his store managers. The
state said Gordon needed to protect the new owners
using the brand name by making Jimmys a franchised
company.
The Gordon family is glad it did. As of December, Jimmys Pizza Inc. has 44 franchise stores spread among the
smaller towns of Minnesota, Iowa, Wisconsin, the Dakotas and one store in Colorado. Expansion into Nebraska
also looks imminent, Gordon said.
Gordons oldest son, Jimmy, is leading the Nebraska
expansion project, and the 21-year-old already owns
stores in Isanti and in Watertown, S.D. Gordons 18-yearold daughter, Justine, works as an assistant manager for
the Willmar corporate store, which is used as a training
ground and showroom for prospective franchisee owners.
Gordon made Willmar the corporate center because it
was close to his familys fall hunting grounds near Raymond. And it probably doesnt hurt that Minnesota is
the land of 10,000 lakes. Gordon is also a professional
fisherman for the FLW Walleye Tour.
``Not only do we sell it, we believe it, Gordon said.
``When we say family business, its been a family business.
Gordon said he wants his three youngest children to
try something else before following the family path like
their older brother and sister.
``Were a lot closer than your normal family, Jimmy Gordon said. ``I know I spend probably how many hours a
day talking to my grandparents and (my parents), Jimmy said. ``(The pizza business) is in your blood. Its like
an addiction.
FRANCHISING NEWS
MARTINIZING TURNS 60
34
You always like to have a strong relationship with your customers, which in our case are our franchisees, but our relationship with them transcends that, Strike said. The franchisor-franchisee relationship is a very strong bond. We view our
franchise owners as our partners.
CHARLOTTE, N.C. (AP) _ A fast-food giant has been trying to determine whether its easier to place your drive-through order with
someone around the world instead of around the corner.
AP Wire Service
Jack in the Box Inc. has been outsourcing order-taking for some
Charlotte-area restaurants to a call center elsewhere, testing
whether the idea could improve efficiency.
``I had noticed it (several months ago), but I just thought the person taking the order was somewhere else in the store where we
couldnt see them, said Elizabeth Banks, a Charlotte teacher and
mother of three. ``It never occurred to me they might be out of
the country.
``You want someone whos friendly and articulate and who can
understand ... different nuances, Mosteller told the Observer.
``(Otherwise) youre going to know youre (being routed) somewhere else, and thats exactly what you dont want to do.
FRANCHISING NEWS
``Events are where Id like the lions share of the profits to come
from, Hausher said. ``Its great exposure for the product, its great
exposure for the company, and were able to give a little back.
``Our goal is to do as many outside sales as possible -- fundraisers, catering, corporate events ... anything fun, said Hausher, a
franchise industry and corporate American veteran. ``Id like to
take the three franchise locations that I have now and develop
an attraction in each area where Dippin Dots is the go-to company when you want to raise money.
At $12,500 each, his new firm Ryadd LLC of Tulsa acquired franchise kiosks from the 22-year-old ice cream chain at the Towne
East Mall in Wichita, Kan., at the Northwest Arkansas Mall in Fayetteville, Ark., and at Tulsas Promenade Mall.
While these kiosks offer lower costs, Hausher said the smaller
platforms not only restrict the number of flavors he may stock _
such as Strawberry Cheesecake, Java Delight or Birthday Cake _
but also dont allow room for distinctive products like Dot Cakes,
Dotwiches, or Dotsn Cream.
``She cant wait to help out in outside events this summer and
learn the ropes, he said. ``Maybe one day shell have an empire
to take over.
That depends on his starting and building a business under one
of the worst economies in decades. But with long-term relationships under two lenders to draw from, Hausher remains optimistic.
And theres definitely no room for shakes, malts, sundaes or other traditional treats made more distinctive by the cryogenically
frozen pellets, which must be stored at 40 degrees below zero.
He has already fielded expansion offers from other malls in Oklahoma. In February he intends to launch a Dippin Dots vending
machine in a Bartlesville shopping center. The Dripping Springs
Yacht Club at Grand Lake may receive one this summer.
An inline store at Quail Springs Mall also may develop this year,
providing a similar events platform in Oklahoma City.
``We just watch how we expand and do it very methodically and
definitely not try to overexpose ourselves, he said of expansion.
But he also pointed all such moves to one foundation for success.
``Thats the beauty of it, he said. ``You dont have such a vast
menu that your labor eats you up.
The extra room at Promenade allows Ryadd to stock and manage
offsite events, either through direct sales or by staffing booths.
He already has deals to sell Dippin Dots at festivities with Union
High School and Guts Church in Tulsa.
36
$1,300,000+
$700,000+
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Opportunity barks
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We recommend that you make your own investigation and determine whether the All American Pet Resorts Businesses are profitable. We recommend that
you consult with an advisor of your choosing. Even though the above figures are actual results, the FTC requires us to include the following statement in
this advertisement - Caution: These figures are only estimates. There is no assurance or guarantee that you will do as well. If you rely upon our figures,
you must accept risk of not doing as well.
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Report: NV ranks
2nd for smallbusiness climate
AP Wire Service
The pies were hugely popular and Don Callender eventually came up with the idea
of opening a pie and coffee shop in Orange in 1964.
Named after his mother,
Marie Callenders Pie Shops
Inc. was so popular that Don
Callender opened two more
stores in the region.
Those shops only sold pies
but Don Callender wanted
to add other dishes, so after
experimenting with various
recipes he went on to add
hamburgers, ham sandwiches, chili and cornbread to the
menu.
By the time Don Callender
sold the company in 1986 to
Ramada Inc. for a reported
$80 million, the chain had
grown to 120 locations nationwide. The restaurants
are now a subsidiary of Castle Harlan Inc.
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39
BUSINESS OPPORTUNITIES
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Scourge of forest beetles turned into a profit
That could make the business less competitive when oil is cheap.
Crude has given up two thirds of its value since peaking near $150
over the summer, which led to sharp increase in sales for wood
pellet producers, particularly in the Northeast where heating oil
is used widely.
``We really believe the growth is in the industrial side and commercial application of this product because of gas and oil and
all the other energy products, said Kostelac, who came out of
retirement to run the company.
The beetles that have scarred breathtaking vistas from Alaska and
British Columbia to the Southwest have spread because warmer
winters allow more to survive, according to the U.S. Forest Service.
Forest Service officials believe most lodgepole pine _ the predominant pine tree at higher elevations _ will be killed by 2013
and it could take decades before they return.
The predominant use for beetle-killed trees is still housing lumber,
but the downturn in real estate has piqued interest in harvesting
more dead trees for fuel, said John Swaan, executive director of
the Wood Pellet Association of Canada.
40
NEW YORK (AP) _ Times are tough for small business owners,
those whom politicians tout as the backbone of America. As the
recession marches on, its those businesses _ which employ about
half of the countrys private-sector workers _ that are particularly
vulnerable to the squeeze.
To cope, small business owners _ from neighborhood plumbers to
graphic design firms _ are paying employee salaries before their
own, trying to renegotiate leases and pleading for customers on
neighborhood blogs. But despite their best efforts, the customers arent there.
We can put
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That means when they hurt, everyone feels the pain. Closures
affect communities, where friends are co-workers and customers, and the cost-cutting creates a hard-to-stop cycle. Charitable
donations wilt. Storefronts sit empty. Cities and towns get less
tax revenue, and have to cut their budgets. And people wind
up spending even less as those who are unemployed _ or those
who worry they will be _ trim their own budgets at the expense
of other businesses, large and small.
While falling sales and the credit crunch have made headlines,
the small business owners left standing are facing problems as
varied as the businesses they run. Manufacturing is slowing.
Layoffs are looming. Financing is hard, if not impossible, to
come by. Vendors are being skittish about extending credit for
inventory. Rents are rising. And profits are falling _ or vanishing
altogether as sales slip.
Ajay Ekesa, 29, worries that his Kahawa Coffee House in Chicago
may not last through the spring. Hes spreading flyers around
41
BUSINESS OPPORTUNITIES
said. ``Im heartbroken.
Odland.
``I do what Ive got to do to keep the business running and the employees paid,
said 36-year-old Parrish Walker, who owns
Walkers Oak and More Furniture store
in Fort Oglethorpe, Georgia. ``Its really
having to think about every purchase and
decision instead of buying willy-nilly.
By DAVID TWIDDY
AP Business Writer
sumers.
The company has seen its stock price rise 76 percent to $25.90
since mid-November when its shares were relisted after it spent
three years dealing with an internal accounting matter.
``It is still an incredibly great value, Kelly said of pasta. ``For about
$5, you can feed a family of four.
Ph : 800.538.5466
www.1-800getlimo.com
2009 1-800-GET-LIMO. 1-800-GET-LIMO is a registered trademark of 1-800-GET-LIMO. All Rights Reserved. All services subject to
availability, acceptance and review. All service subject to a definitive agreement and terms may be changed without notice.
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Real Estate
Opportunities
US foreclosure filings up 81 percent in 2008
By ALAN ZIBEL
AP Real Estate Writer
of America.
``His remarkable life stands as a testament to hard work, visionary leadership, and the unlimited potential of
the entrepreneurial spirit, said Bob
Sulentic, CEO of Trammell Crow Company. ``We deeply mourn his passing.
Survivors include Crows wife, Margaret; six children: Robert, Howard,
Harlan, Trammell S., Lucy Billingsley
and Stuart; 16 grandchildren and three
great-grandchildren.
47
By CHELSEA SCHNEIDER
The Arizona Republic
``We may never get what we could have, with our houses having
these lower-cost homes next to us, Foster said. ``They are the
same square footage but are lower-quality.
The new models havent been built yet in Freeman Farms, but
Fulton Homes went to the Gilbert Town Council for approval on
the changes.
Residents opposed the builder at the meeting, but the plan was
approved. Fulton Homes President Norm Nicholls did not return
calls.
The changes are a result of builders adapting to radically different market conditions. Houses that sold in 2005 and 2006 arent
selling as well now because many buyers prefer good deals to the
lavish features so popular in the boom.
``We love our house. We dont want to move, but we dont want
to be made fools of, said Teri Jaress. ``We feel like weve earned
what we have, and now its been taken away from us.
Wayne Balmer, planning manager for Queen Creek, understands
Builders are trying to get their house prices down from well over
Business Opportunities Journal
48
residents plight. Even one subdivision that deviates from a neighborhoods plan can cause property values to fall, he said.
One of the challenges Mesa is facing comes from the high number
of less-expensive houses in the city, said Balmer, an authority on
urban planning in the area. The houses attract first-time buyers,
who live there temporarily and then move on, which can affect
schools and peoples participation in the city.
Less stable neighborhoods also have an impact on sales-tax collections and the ability to pass bonds in elections, Balmer said.
Queen Creek would like to maintain its second-time home-buyer
niche because thats the house people usually settle in for a long
time.
``They need to ask, Is it a neighborhood that will stand the test
of time positively and be an asset to the community? `` Balmer
said. ``Or are we having an area of the community that wouldnt
maintain the standards wed like to have?
Now more than ever, buyers are in the market for a deal.
``Most people are trying to find the best and biggest bang for their
buck, said Sabrina Porter, vice president of sales and marketing
for Trend Homes. ``Most customers want a good-sized home. They
want it to be beautiful with architectural details at a low price. As
a home builder you just have to decide what are the most valuable items for your customers and try not to do away with those.
AP Wire Service
Last year, the vacancy rate settled at a bit more than 7 percent. A
report by Colliers Monroe Friedlander estimates that figure will rise
to more than 8.5 percent this year.
The firm predicts the vacancy rate will rise to 9.5 percent next year,
the equivalent of an empty 13- or 14-story building.
However, anything below a 10 percent vacancy rate is considered a
normal market and not likely to cause alarm. The rate in 1998, for
example, was 14 percent, and in 2006, it was 7 percent.
While vacancy rates are on the rise, rents have slightly increased
in recent years. Full-service gross rent last year rose to an average
of $2.84 a square foot, the result of higher operating expenses for
common areas.
``Its not the end of the world, said Jay Shidler, chairman of Pacific
Office Properties Trust Inc., which owns seven Honolulu office
buildings. ``I think were in a period of steady uncertainty, where
nothing dynamic is happening. Were OK.
Still, the Colliers report expects rents to drop a bit and landlords to
offer more concessions this coming year as owners look for ways
to hold onto current tenants and attract new ones.
49
value.
For many, the role of landlord is something theyd never considered. If done
right, however, renting out a home can
help the owner ride out the housing
slump, said Vakulenko, of Tampa4U.
com. But the process does require
doing some research, said Vakulenko,
who owns five rental properties.
She often refers clients to property
management companies who can determine what their home would rent
for and whether theres a market for it.
Homeowners are often disappointed
to learn that their home would rent
for less than their mortgage payment,
added John Nuzzolese, president of
the Landlord Protection Agency in East
Meadow, N.Y.
50
paying rent.
--Perform a walk-through of the property with the tenant before he or she
moves in. During the walk-through,
make notes and take photos of any
property damage such as chips in the
tile, spots on carpeting, etc. You and
the tenant should sign the paper as
an acknowledgement of what condition the property was in at the start of
the lease.
--Ask for references. Call former landlords and ask about the persons rental
history. Verify that the references listed
are really landlords and not the applicants friends posing as landlords.
51
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