As the local economy staggers toward the close of 2001 — with thousands of layoffs and early retirements slowing local spending — a growing number of Tristaters are going to work for themselves.

        “I wanted to do something I enjoyed,” said Ginny Sampson, a West Chester resident who found herself without a part-time job in June when International Paper in Loveland laid off workers across the company.

        “I loved shopping for clothing,” so that's what she's selling now in her own business.

        It appears she isn't alone in striking off on her own. Mrs. Sampson's Formals for Less is one of hundreds of new companies created in the region in the past year as a result of the layoffs from a lagging economy.

        Trends in new company creation are difficult for experts to assess. But one concrete measure of more people opening their own businesses can be found at theNorthern Kentucky University Business Development Center, where free seminars are regularly presented about how to start an enterprise.

        “Our attendance the past month has been through the roof,” said Sutton G. Landry, director of the Northern Kentucky University Small Business Development Center.

        “When the economy is doing great, we don't see a lot of folks. When the economy is not doing as well, we see lots of people.”
       

New business growth

               Last November, the center held a three-part series of seminars called Building a Better Business that led 96 people to enroll. A year later when the same seminar was offered, the university had 116 people lining up for the session.

        “That's a 20 percent increase,” Mr. Landry said.

        The Small Business Administration found that in 2000, the last year that figures are available, about 612,400 new employer firms were created.

        The SBA office of advocacy research found that in 2000, Ohio had a net growth of about 4,300 new businesses. There were 570,875 businesses in Ohio in 1999 and 575,134 businesses in Ohio in 2000.

        Meanwhile, self-employment in those two years grew by 10,800 businesses, while businesses with employees declined by 6,500. The recent spate of layoffs this year may bring the birth of many new companies, according to a local SBA official.

        “So many large firms are contracting or decreasing their business — narrowing their scope,” said Ron Carlson, branch manager of the Cincinnati office of the Small Business Administration. “That's a lot of extremely experienced and talented people being laid off.

        “Those people are potentially going to have difficulty finding a job they deserve, and I have a feeling that one of their options will be self-employment — doing what they do best.”
       

Career transition

               Experts caution that nobody should start a business without doing a hefty amount of research.

        When people are displaced from a job through downsizing or a new corporate focus, many have a fairly sizable amount of savings or a hefty severance package, said Carmen Sarge, co-managing director of the Career Center at the Firehouse at Adams Landing.

        The center, which is owned and operated by Burke & Co., offers career advice to individuals who have lost a job or are thinking about making a job change.

        The problem with many entrepreneurs, he said, is that they sometimes become emotionally attached to an idea or business plan without taking a hard look at the economic reality of the business.

        “These are often ill-advised and emotionally driven ventures,” he said. “Everyone will go through deep emotional swings early during a career transition.”

        The traits and skill sets needed to pilot a successful new business venture are not usually the same as those used during a successful corporate executive career, he said.

        He suggests that anybody considering starting a new business should consider at least three aspects:

        • The interests and skills of the individual.

        • An analysis of financial goals and an individual's wherewithal.

        • The individual's morale and motivation.

        “A close circle of friends and loved ones, while very important, are not the only and most appropriate people to give sound advice about starting up that "ice cream shop on the beach,'” he said.
       

Ready for customers

               Mrs. Sampson is poised to fire up her formal wear endeavor.

        She has a Butler County vendor's license, about 250 prom and bridesmaid dresses and about 60 wedding dresses and all are now for sale. Sales will be by appointment only.

        Ms. Sampson, 31 and a chemist by training, turned to the Internet to research other job opportunities and decided that creating a formal and bridal clothing shop had real potential.

        She found a Peoria, Ill., company that was going under and wanted to liquidate its $200,000 in inventory.

        She made a low-ball offer for the clothing, and when it was accepted, the new bridal, formal and evening wear shop was born.

        She is more than a little optimistic about this new venture:

        “I think even with the economy not doing well, people are still getting married and my prices are not going to be really high.”

        Her husband, Peter Sampson, is the director of customer assistance for Computer Sciences Corp., which supports about 700 Defense Department and university researchers.

        He never expected to be in the formal clothing business but believes that it's a venture worth pursuing.

        “We have a four-bedroom house and one child,” he said. “Now we have a use for all those extra bedrooms and we have a confused three-year-old. We are hoping for the best and keeping our fingers crossed.”

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