R.I.P. Niche small biz

I love capitalism, and how it allows anyone to have their own business, but in the last 5 years I have seen some business ideas that have no long term future. Shops that are just for .5% of the market have stolen business from larger businesses because these niche shops connect better to customers over the last 5 years. Shops that sell only mugs that you can paint with your children. Scrap book shops. Dog clothing shops.

What caused this? the de-regulation of banking. (a good read from MoneyMorning.com) Loans for everyone because money grows on the banking trees of the federal reserve. POP…oh wait…no it doesn’t.

The recent economy has change this. These small businesses have closed down. It’s sad because these small businesses made us feel good. They connected with our needs and desires where the big biz fell short. They provided the extra advice the joe smith at best buy couldn’t (and they didn’t smell).

In the coming year we will see more small businesses fail than ever and that is why I urge you to keep giving your business to these small businesses while they are around. Only the strongest will survive, so lets make the strongest.

For the shops that focused on extra, want only items, that have already closed, lets remember to never create those again. All of that is a waste of American money that could have been spent on house payments, and our future. I’m not saying to not spend time with your child or anything. But maybe these shops need to start out smaller first, and not rush into a small business loan backed by your home.

Good luck Obama. May the light of the past guide you, and the hope of the future keep you up on those long nights while you serve your country proud.

Link: http://www.nytimes.com/2009/01/17/business/17services.html