How can we save the disappearing small business?

Recession and the internet have diminished the needs of shopping in person.

More and more we are seeing brick and mortar stores going out of business. The empty shopping malls and decaying buildings have made once prosperous areas seem like ghost towns and ghettos. These non-existent shops leave us to wonder where our local economies are headed and what we can do to revitalize our markets. Is there an answer?

Many can blame the closings on a recession. Others blame the internet. Small business owners now lie between this rock and hard place. Unless you have a specific niche or process that can only be utilized through your store; you may be out of luck.

The recession causes the community to spend less and save more. This wounds the business and causes them to discount.  At this point, their profits are too miniscule to recoup the loss. One can only discount so much until they are forced to close. In this case, the business would do well to open an online shop to expand their global presence instead of the lacking local need.

The internet has also caused Mom and Pop stores to close. The web can offer us any product from anywhere with two day shipping. It also provides the largest competition for your business. I have researched many online businesses that only make .0132 percent profit from each item they sell. How do they do it? Buy at cost and sell as many as possible at the lowest price. Eventually they will make money little by little. Their idea is that people will come back to them and buy other items that have higher profit margins (ie: Target bolsts this process with their PFresh sections).

How can Mom and Pop keep their business alive with things like the internet available? 3 ways: Change their marketing scheme, sell online to broaden products globally or improve their customer service. Good customer service is key to any business. Just like when you find a good mechanic...you never leave them and continue to go back. Mom and Pop can sustain business simply by becoming the staple in quality service and clientelling.

Business is meant to evolve. Products become outdated and require upgrades or fusions. If you cannot change the product you're selling then change the way you sell it. Quality service, niche selling sites or popular branding are some of the ways to stay in business. Recession and internet aside, business is business. If you do not stay ahead of the game you are no longer in the game. Review your processes and product, they may be holding you back.