Interesting comment from Saratoga Springs business owner

This comment was posted below (in a post about Maestro's) by someone identifying themself as a Saratoga business owner.  Because you may have missed it, I am posting it here for your information:

Comment:
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This is not the right place for this comment, but Maestro's not moving to the doc's site brings up a connection to an article which ran in the Schenectady Gazette titled Broadway rents force out Saratoga Springs shops.  Being a shop owner in Saratoga I took offense to a couple statements made by a commercial realtor from Roohan who stated that why so many businesses are going under is because they didn't start with a solid business plan.  Sorry, but what a bullshit statement.  Who could possibly foresee a recession 5-10 years ago? She seemed to think that the rental prices in Saratoga were just fine.  Is this woman on crack?  This lady needed to do some research.  Saratoga rental prices are equal to those in Chicago, NYC, Atlanta, and Minneapolis.  Last time I checked Saratoga definitely did not have the volume of people those major cites have - which equals less shopper/diner traffic. Just take a look at this month - I know of three businesses that are closing end of January
.  Does anyone think that they are closing because that business plan just wasn't what it should be?  Maybe - just maybe - it is because factors have gone belly up, which means no financing for stock. Or maybe because there is not shoppers which equals no sales.  OR - gosh let's just go out on a limb - that they needed to use credit cards to purchase stock, and then had their credit card raise interest rates to 20-30% and a yearly fee of $100.  Hmmmm - rents at 40sqft, triple net, utility rates sky high, decrease of sales...  yeah - it is definitely due to a poor business plan.  What a stupid statement.

Comments

[Ellen]

I was sad to learn that Saratoga Needle Arts is closing the end of this month. I went there so often and it was a big part of my life when I lived there. In her case, I believe, the landlord decided to not let them renew the lease. They were trying to find a new location in Saratoga, but it didn't work out. Hoping someone buys the business so it can continue. This is a big blow to the area's knitter/crocheter fiber arts community.

[Jay]

My wife called me and had me read the article in the gazette. I had much the same reaction to the comments made by the commercial realtor from Roohan as the business owner above. I actually hope her comments were taken out of context.
Our business has been on Broadway for many years and we have never struggled like we are right now. And yes, much of that is due to the very high rent we pay and the sharp decrease of sales.
Small business bankruptcies are up in every state - 81% in California alone. And many small business are personally guaranteed, so personal bankruptcies are tied into that. And this is not because the business didn't form a solid business plan.
We revise our business plan bi-yearly. This past year we sat with a business advisor and our banker to layout our plan. And frankly, even the "experts" had no solid advise. They could not estimate our yearly sales, or estimate how long the recession will last or when unemployment will ease. It was a crap shoot.
The statement that rents are "on par" in Saratoga was laughable. Saratoga is very much a seasonal town, however the rents remain the same throughout the year. The town is not the same as it was 10 or 15 years ago when your summer income could pad you through the long winter months. Maybe that is due to the Racino taking people away from the town? I do not know. But I do know that are are hurting.

[Suzanne]

I was going to comment about Saratoga Needle Arts and saw that Ellen already did. It is very sad. It sounds clear to me that this shop owner wasn't even considering closing until the rent went too high to manage. Again, it has nothing to do with a business plan and everything to do with the rent.

[Laura]

Last Vestige and Saratoga Needle Arts closing is very distressing. These are two of my personal favorites and really isn't another store in the area that fits their niche. Saratoga thinks it lives in a bubble, and thinks the high rent -- both commercial and residential -- are completely justified. But, as Jay said, these people are all clearly smoking something.