Las Vegas NowBack to Business in Bad Economy

Back to Business in Bad Economy

Amid all the bad financial news, the government reported Thursday the economy is growing again. That's a relief for business owners suddenly caught up in the economic slump.

Just over a year ago, Channel 8 visited Nothing Bundt Cakes on Sahara and Durango to see how the recession was affecting them. Back then, the stock market made a record dive. The financial meltdown was scary, but this small business is confident in a comeback.

The retail bakery has expanded to 15 locations in seven states. A year ago, the recession had co-founder Debbie Shwetz worried about the economy. "We kept a better eye on our own business. We also reduced operating costs by closing some corporate offices and coming back to the store level," she said.

Since last October, Shwetz has noticed a turnaround. More customers are buying up their Bundt cakes and that signature cream cheese and butter frosting. "Our customers are coming in often. We find that their attitude is happier," said Shwetz.

Sales are up nearly 15-percent over last year and franchising for Nothing Bundt Cakes is growing. "We find that many of our applicants can self-fund a franchise, which is great because they don't have to go through the banking arena," said Shwetz.

On the downside, the housing crisis still plagues Las Vegas, the gaming sector is down on its luck and Nevada's unemployment rate is over 13-percent. But some analysts see the U.S. economy breaking free of its grip. "The positive GDP report tells us the recession ended this summer and the recovery has begun. It does not tell us that we are 'recovered,'" said Lakshman Achuthan.

The Center for Business and Economic Research at UNLV says travel and tourism will recover before the hard-hit construction industry, but Las Vegas is still not out of the woods. Some experts fear our jobless rate will skyrocket to 15-percent next year.

Running a successful small business hasn't always been a cakewalk over the last 12 years, but Shwetz believes the economy is heading in the right direction. "We're not going to give up and roll over. We're going to continue to work hard and grow our company," she said.

They continue to get a lot of applications for franchising. One setback though, is that many have trouble getting a loan from the Small Business Administration.