What’s Happening on the Peninsula?
with Michael Russell

As published in 65 degree magazine, July 2010 issue


As President of the 28-year-old Carmel Business Sales and Peninsula Consulting Group, Michael Russell has the opportunity to observe many different businesses from an insider’s perspective. In this interview, he discusses the Peninsula’s business climate from his vantage point.

Q: How do you see the business climate over the last year or so and where do you think it might be heading?

A: Over the past 18 months, we’ve seen profound challenges; the severities of which have not been faced for a long time. But the turbulent times we all experienced also brought about opportunities and lessons for business owners and individuals. A good example of this is the cooperation we were able to orchestrate between landlords and tenants to keep businesses viable in these tough times. In the last year, Carmel rents have reduced approximately 25-50 percent and retail/restaurant vacancies have dropped from 30-plus to less than half a dozen. This is evidence of an economy on the mend.

Q: What are successful businesses doing to thrive in the current economic climate?

A: We see that well-run and well-controlled businesses that adjusted their business models continue to do well, hold value, and expand. Business owners who could not adapt were either forced to sell their businesses at substantially lower prices or no longer had anything to sell and closed their doors. However, this situation provided opportunities for individuals who were able to purchase businesses at prices they never thought possible several years ago. The key is good business acumen—re-advertising, contemporizing, etc.

Q: Should we be optimistic right now?

A: Yes. In spite of daily vacillation of economic indicators, we have seen a marked increase in business sales and in the interest of potential buyers from out of the area since the beginning of 2010. Fifty percent of our buyers are from outside the area—most are from more than 100 miles away including Russia, France, Thailand, and Italy. The trend is continuing with more transactions going into escrow over the next few months. Also, bank financing, such as SBA, is available to qualified buyers. Seller-assisted financing is also something that has become more prevalent in recent times. Being flexible and creative goes a long way towards completing a transaction. It might not be too far from now when potential buyers will be saying “I wish I acted sooner.” Clearly, this is not a time for the timid.

Q: How can we turn challenge into opportunity?

A: The key is for business owners to apply “best practices” into their planning strategies and disciplines. Today, owners have to be on top of their operations and costs. Business models have to be reviewed constantly for viability. The customer is looking to spend his or her dollar wisely.

Hopefully we are now smarter about running our businesses, knowing full well that we are better leaders and can no longer operate our businesses as we did in the past. 

Compliments of 65 Degree Magazine.



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