New Entrepreneurs Must Be Ready To Pay A High Price

By Tyler McMenemy

Owning & Running a Business

Nov. 7, 2014

 

Windsor entrepreneurs, both experienced and unexperienced, are having to deal with a lot of unexpected and sudden expenses.

Mary Beth Regier has been running the Mrs. Jones Café & Cheesecake Co. for the past five years. Regier said the restaurant holds about 18 people, but even small business owners like her can have high expenses.

“Property taxes are steep in Windsor. Challenges are situational though in a restaurant,” said Regier. “You have to have your ducks in a row. It’s a lot of money and a lot of your time. At any moment, any of the utilities could short, the grill could stop working, our oven could die out, a staff member could quit. It’s just a lot to manage sometimes.”

Having to pay a lot of money does not take away from the experience of this business owner.

“Overall, it’s a great, rewarding experience,” said Regier. “It feels like home.”

More experienced entrepreneurs are still dealing with the everyday challenges after being around for so long. Dan Orman, who has co-owned Freeds of Windsor for the past 15 years said he still runs into some problems.

“Everybody is our competition,” said Orman. “The curious consumer goes over to the states (U.S.). It gives them a new sense of what else is out there for a consumer.”

Freeds has been in families of Orman and Ari Freed for more than 85 years and has been passed down from generation to generation. But Orman said even starting out owning a successful business can come with surprises.

“The biggest surprise was I never realized how much outside sources would affect what you do inside the store,” said Orman. “The Canadian-American exchange, the auto industry going south for a bit. We’re an automotive part of this world. So everything plays into how you do business.”

Orman has dealt with a lot of issues but has persevered to maintain his store the way he wants.

“Once you’ve experienced the things that are out of your control, you are able to handle it with less emotion and you try to create a situation where you can move day-to-day, week-to-week as you wish,” said Orman.

Some issues are getting harder to deal with for store owners as the world moves on. Arnold Blaine has been the owner of Karens 4or Kids since 1973. He has also learned to adapt to time moving forward.

“We’re needing to constantly update our advertising, our product, our technology,” said Blaine. “We also have to keep a good eye on our competition.”

Blaine also stated that it isn’t competition from Windsor that he’s worried about.

“Increases in internet selling and cross border sellers in Detroit can hurt us. Their minimum wage is lower, and their shoes can be made cheaper. If a shoe’s made cheap, it sells cheap,” said Blaine.

Blaine also said credit card companies charging more for use of their products is an additional thing to deal with.

“User fees with MasterCard and Visa have increased over the past five years,” said Blaine.

In Windsor, property taxes have increased over the past five years, according to the City of Windsor. In 2014, they lowered slightly. Property owners around the city have to deal with more than the general public realizes.