A look at how small businesses are faring

We're nearly halfway into 2010, a good time to assess how the suburban small-business community is doing. Is 2010 any better than the previous two years?

To find out, I asked four people whose opinions I value what they hear when they talk with smaller businesses. Their paraphrased responses follow.

• Diane Middlebrooks, senior vice president and Women's Initiative Coordinator, Itasca Bank & Trust Co., Itasca: It's still tough, but things are getting better. Manufacturing is doing better. Some are buying new equipment and hiring employees. Companies are making money again. The general mood is more optimistic. The focus is determining what customers want today, which isn't the same as it was three years ago. Many businesses might need to change their message. This is a different economy, and customers are in a different mood. People are more serious.

• Ed Breclaw, president, Renaissance Executive Forums Chicago West, Glen Ellyn: There's more optimism than the last six or 12 months, but still a lot of anxiety - especially in construction. In accounting, IT and engineering services, those who have had a good plan and right sized are doing well. There's a lot of uncertainty, though, about the state's finances, health care and the banking industry. It's hard to get capital.

• Tony Massaro, tax partner, Porte Brown, LLC, an Elk Grove Village CPA firm: Different types of businesses have different results. Small manufacturers are having a decent year. Inventories have gotten so low that many of their customers must restock.

• Paul Heinze, president, Paul M. Heinze Co., Barrington, a growth, acquisitions and exit strategy adviser: It's very clear that a traditional recovery is not in anyone's future thinking. Better-managed companies are looking at strategic alliances and licensing. Some are acquiring smaller companies, but they're not acquiring real estate or manufacturing assets. They're acquiring accounts, good inventory, key people.

There's no question that recent statistics are showing growth. The cost of money is almost free - if you can get it. Credit restrictions are still very tight. Businesses are mildly optimistic, but caution is built into their response.

• Questions, comments to Jim Kendall, JKendall@121MarketingResources.com

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