Chicago Tribune - Optimism depends on type of work

January 16, 2006

By Joyce M. Rosenberg - Associated Press

It's a mistake to try to pin a label like "optimistic" or "pessimistic" on small-business owners as a whole. But those who are feeling upbeat about business in 2006 are likely to be in industries on the rise or in a market niche that ensures their companies will have solid growth.

Some are optimistic because they see signs of improvement in their clients' and customers' businesses.

Shelly Sun, chief executive and founder of BrightStar Health Care LLC in Chicago, is optimistic because her 3-year-old company, which arranges medical staffing for hospitals, nursing homes and school districts, has a market projected to expand rapidly in coming years.

Her company, which had $3 million in revenue last year, is expected to have at least $7.5 million in revenue in 2006, Sun said. It has two locations in the Chicago area and plans to open four more this year; it also is selling franchises.

Still, as optimistic as she is, her outlook isn't necessarily representative of other small-company owners. A survey of small-business owners taken in November by the National Federation of Independent Business found that while generally optimistic, they weren't as upbeat as they had been in October, and some were paring back 2006 job-creation plans. Worries about higher prices contributed to owners' uncertainty.

The Institute for Supply Management's recent report of a slowing in manufacturing growth also is likely to nip into some owners' outlooks.

But some owners are optimistic because business continues to improve from the downturn that came with the high-tech bust and the 2001 recession.

Chris Consorte, owner of Integrated Direct LLC, a New York-based marketing firm, has seen his company recover from what he called a trough year in 2000.

"We lost a lot of clients," Consorte said. "We started doing dot-com work, and everything dried up the first year we were in business."

Since then, "I've personally seen each year get better," he said. "Clients are reaching out to us, starting to work more again. There were so many years when we couldn't get clients to call us back."

He sees evidence of optimism among other small-business owners.

"People are doing marketing planning again, their budgets are lightening, they're hiring," he said.

Greg Brooks, who owns a Plattsburg, Mo.-based marketing firm, said he's optimistic because he sees other company owners running their businesses more prudently.

Brooks, owner of West Third Group, credits technology for helping many companies, allowing them to do business with clients and customers almost anywhere. He said none of his clients are local.

"We've got a client we've had for the better part of five years who we've never met face to face," he said.

Another factor contributing to Brooks' optimism is the economic boom in China, which he said presents opportunities for many U.S. companies.

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