Guest guest Posted February 19, 2009 Report Share Posted February 19, 2009 http://www.democratandchronicle.com/article/20090218/BUSINESS/90218031 8/1001 How many people eat vegan, gluten-free donuts? That's a question Jeaninne Ottman, 41, of Gates had to ask herself when developing a business plan for her new South Wedge bake shop, Eco Bella Bakery. She sells only vegan baked goods, which means they don't contain any animal products such as milk, eggs or honey, and about 50 percent are gluten-free, meaning they're made without the grains that contain the protein substance. There's a market for such a business as more is learned about Celiac disease, whose sufferers can't physically tolerate gluten, and more people are turning to veganism for ethical and health reasons. But are there enough people demanding rare goods and services to keep niche businesses like Eco Bella afloat while major chains designed for a mass audience like Starbucks and Macy's are closing stores in an ailing economy? Ottman thinks there are, and so do Heidi Kaufman and Bonnie Cameron, two other local women who recently launched specialized businesses. Kaufman opened PeaceFull Kids, a yoga studio for children in Pittsford, at the end of January. Last summer, Cameron started Baby Moments Ultrasound & Pregnancy Spa in Penfield, where women can get " 3-D " ultrasounds of their babies while their families and friends watch. All three see their businesses weathering the recession — not to mention the struggles every new business faces — but they know this is a hard time to make a go of it. " I love a challenge, " said Ottman, who invested about $10,000 in her business, half of which was savings. Challenges are inherent in any new business venture, but they're multiplied when the business enters the market during a recession and the business is aimed at a small pool of potential customers like pregnant women or vegans, said Daniel Tessoni, assistant professor of accounting at Rochester Institute of Technology's Saunders College of Business. " Failure rates are over 90 percent within a couple years. As the economy gets worse, the risk increases, " Tessoni said. " Generally speaking, as consumers' discretionary income decreases, niche businesses are going to struggle to meet their revenue (estimates). " Niche businesses generally deal in services and goods that aren't necessities, Tessoni said, which makes it harder for them to survive a recession. But Ottman, who is also a nurse, is selling something relatively affordable — her brownies, cupcakes, cookies and other snacks are in the $2 to $3 range — which she thinks helps her odds. And while vegan gluten-free baked goods aren't necessarily a necessity, they mean a lot to people with few choices, she said. Those people showed up in droves when she started selling her vegan goodies at the Rochester Public Market in late 2007. They came back repeatedly for foods they said they couldn't find anywhere else, she said, and soon she was getting requests from the gluten-free crowd. As she crafted her business plan, the economy started to falter, but she felt her built-in following justified a bricks-and-mortar business. " I was a little hesitant, but then I realized I had a solid base of customers that would come and find me because I had such a niche product, " she said. Dina Massaro, 40, lives a short walk from the bakery and stops in frequently. Massaro is a vegetarian who likes to eat healthfully, and she plans to go vegan in the future. She said most of her friends have already stopped in at the bakery, and some are willing to travel for Ottman's goods because they are locally made with high-quality ingredients and meet their diet requirements. " I will definitely walk down there and get her baked goods because it fits my lifestyle, " she said. " I will hold off on a candy bar and get something there because it's healthier. " Kaufman, who owns the yoga studio, said health plays a big role in why she thinks her business will last. " It definitely is not an ideal economy for people in business, and people are cutting back on things, " Kaufman said. " But what remains a priority is health and wellness, for good reason. " Her classes for kids, which cost $99 for a 10-week session, include traditional yoga poses and feature time for self-awareness and reflection, but they also include physical activity to keep kids engaged and moving. Kaufman said heightened awareness of the benefits of yoga bodes well for her business as does increased knowledge of obesity, anxiety, attention deficit disorder and other issues some kids face. The parents who bring their kids in, Kaufman said, are looking for ways to enhance their children's well-being — something that's worth spending money on even in a recession. Kaufman, a 41-year-old Pittsford resident with four kids, used her savings and an interest-free credit card to get the business up and running and said she used her knowledge as a certified public accountant to develop a solid business plan. She has amassed about 25 students in her first few weeks and supplements the studio's income by teaching classes in schools and working with high school coaches looking for ways to help reduce injuries and increase flexibility in their athletes. She thinks the value of what she's offering will keep PeaceFull Kids up and running. Cameron, 38, of Webster feels the same way. She got the idea for her business while she was five months pregnant and on vacation in California. She saw an ad for a company that provided elective, upgraded ultrasounds that better showed the baby's facial features in a setting where several family members could also watch. She said the experience was amazing and allowed her and her husband and their two sons to bond with her daughter months before she was even born. She found the experience so moving, she started planning a business to offer the same service here in the Rochester area, along with pre- and postnatal massage and products for pregnant women and new mothers. Since opening in July, the business has attracted a steady stream of clients even as the economy has faltered. Cameron said her clients come from all areas for the service. Packages, which include a 15- to 20-minute ultrasound shown on a large screen in a room with seating for five, a CD of the visit's images and photographs, among other things, start at $139 and go up to $279. Cameron said she's optimistic about the business even as she competes for an increasingly smaller pool of discretionary dollars, because she offers something so rare. She said she was sure about going forward with the business regardless of the economy. " I just felt in my heart that this was something that I wanted to bring to our area, " she said. Tessoni, the RIT professor, said that's important for niche business owners who often find themselves working against the odds. " People that do these businesses have to really like that type of work and enjoy themselves, " he said. KPERRY Quote Link to comment Share on other sites More sharing options...
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