Indies redefine innovation to survive

How are independent businesses surviving the recession?

I interviewed a diverse group of businesses in Greeley to see how they’ve used innovative strategies to weather the economic downturn in late 2009, and discovered that some businesses have actually redefined innovation.

In the pre-recession world, innovation was often associated with technology, expansion and expense. The independent businesses, or “indies,” interviewed had a different view of innovation after a year that required creative business strategies. Everyone said they are improving customer service by focusing on existing customers, responding to changes in customer purchasing, and strengthening customer loyalty.

As Wes Daniels of Accelerated Automotive Specialists commented, “A customer is someone you sell to, but a client is someone you have developed a relationship with.” He realized that he needed to retain his existing customers and strengthen their loyalty, so he put a stronger emphasis on marketing and clarifying his message. The payoff has been referrals and repeat customer visits.

Cleaners and coffee shops

Innovation was not at the forefront of Jim Nixon’s thinking when he founded Nu-Way Cleaners/Foothills Cleaners in Greeley 37 years ago. The company has 11 locations, in Greeley, Fort Collins, Windsor, Johnstown and Loveland, employing 55 people.

“For 36 of the 37 years I did not do a lot of innovation, even the things others across the country were doing,” he said.

Five years ago Nixon switched to eco-friendly cleaning solvent and began recycling wire hangers, but that was about the extent of his innovation, until early 2009. Then he and his partners, Mary and Brad Ewing, realized that they needed to differentiate the business in the local market. They made a commitment to implement pick-up and delivery services, which caused a shift in personnel and required more cross-training of existing employees.

Nu-Way also used its 1,500-person mailing list to offer a variety of discounts and coupons via mail and telephone – with an innovative twist. Customers could write “50 percent discount” on a piece of paper with the day’s date to create their own coupon. The do-it-yourself discount coupon was in addition to regular mailings.

Five coffee shops in Greeley closed their doors in 2009. The Buzz Coffee and Gelato, however, has actually expanded through commitment and creativity. Randy Francis and his wife, Roxanne, founded The Buzz in 2007 as a local coffee shop that keeps revenues in Greeley and helps the community. As the business grew in the first year, they needed more space and added a conference room.

In 2009, they saw the impact of the economic downturn on customers, who began purchasing a $2 drink instead of a $4 item. In response, The Buzz innovated with 99-cent lattes and gelatos, buy-one-get-one-free offers, and other affordable options.

Unique and independent

A Greeley business that was transformed through innovation is King’s Clocks and Unique Gifts, a unique business involving clocks of all types. Originally, owners Charles and Patricia King focused strictly on repair. Today, King’s Clocks is a service center for many major clock brands, offering new clocks, seasoned clocks and many unusual gifts.

The Kings responded to the downturn by offering customers smaller items such as ceramic figurines, metal signs and other merchandise with a ticket price of $30 to $35. They continue to provide excellent customer service, and the owners believe the store has transformed in 2009 from a clock store to a boutique-style gift store.

Independent book sellers have long been an endangered species. Ann Lacefield, owner of An Open Book Bookstore in Greeley diversified her inventory by having clients donate carefully read books that she resold at half the cost. Ann did cut back on employees’ part-time hours and found affordable ways of advertising newsworthy events such as author signings and book discussions.

Lacefield, a former teacher, has a loyal client base and works closely with the local library and school district. “I’m so thankful that I own my own business as opposed to being a franchise held by a larger corporation,” she said.

Indies made decisions to market creatively, offer affordable products and services, and give customer service a higher priority to cope with this recession. The innovations are transforming how business owners think about their customers, products and services – a “survival of the innovative” dynamic that may last even after the economy eventually rights itself.

Whether you are a business owner or employee, think about the changes you are making to adapt to the new world. We all learn, grow and adapt even when it is difficult. Adaptation equals learning and in the process innovation is being redefined.

In what ways has your business redefined innovation?

Shirley Esterly is a master facilitator and systems thinker who works with clients to build sustainable business practices. She can be reached at

[email protected].