Meet Utah business owners taking the plunge into start-ups

It’s possible that you’ve heard this stat before, or at least something like it, but here it is again: more than half of the companies in the Fortune 500 were founded during an economic recession. That’s true of some pretty big names, including GE, Federal Express, and Airbnb.

That stat is courtesy of Larry Jacob, the VP for public affairs at the Kauffman Foundation, a group that studies the success of start-up businesses. His view is part of a recent story from Utah Business that talks about the entrepreneurial spirit as it stands today.

Whether it’s because of a job or role loss or because of the chance of a life-long dream in place with the time to start putting it into action, hundreds of Utah business owners decided to turn what they were doing on the side into full-time businesses during this time of crisis. Their stories can be a guide to anyone on how to make the working life better for not only themselves, but also for others.

Making banking better for all Utah businesses is part of our mission at First Utah Bank, and with several loan options from which to choose, staying on course with the progress of your own entrepreneurship can be made easier.

Working outdoors and finding a business niche

One of the first stories told in the Utah Business article is from Megan Graves, who was working on commission in the home remodeling business when COVID-19 stalled her work. She then took this opportunity to start her own business, with a co-worker, called Nature Built Designs, which does landscape design including picnic tables and garden boxes for private homes.

“I never thought I would do something like this,” Graves tells Utah Business. “I always considered entrepreneurs to be risky people, and I would avoid dating entrepreneurs because I didn’t want a risky life. So it’s kind of ironic that I’ve become an entrepreneur.”

At this point, Graves is continuing to take some chances and pursue her business instead of going back to her previous role. She says that a company website is on the way, and she has started to do long-term planning to keep Nature Built Designs going. There’s even an interesting twist that goes beyond commerce: 

“The goal is to make it a social venture company, actually,” she says. “My goal would be, that for every purchase of garden boxes, a little bit would go toward a nonprofit. Maybe we could put the funds toward community gardens.”

Another Utah businessperson who turned to the outdoors for some relief from financial troubles is Paul Wolford. He started to work on commercializing an idea he had, subsequently named Lawn Fungus Fix, that would use a newly developed lawn care product.

This took place while he was still working full-time. 

Even when the pandemic hit, Wolford and his business partners decided to forge ahead, and they achieved more success than expected. The goal was for Lawn Fungus Fix to make $5,000 in its first month – instead, it doubled that. The plan now is for Wolford to take his company into the full-time realm as soon as possible.

“It ended up being a really good time to start,” Wolford says. “I think since a lot of companies were slowing down and there were some holes in the market, we were able to fill some of those holes and treat lawns.”

Entrepreneurship is on the rise despite the pandemic

Stories like these point to something that has happened often during recessions, according to Jim Herrin, director of the Salt Lake Region Small Business Development Center. He says that more entrepreneurs have been seeking advice from his center about how to begin their own businesses.

“Many people are realizing that starting a business is a viable alternative to finding a job,” he says, “especially when there are not many jobs available, and especially when they have an expertise or a skill they can build around.”

That finding of a skill is what has been a plus for many new business owners, who will go to places like Amazon or Etsy to start selling their wares via e-commerce. Herrin pointed that that some professionals in the medical or legal fields have also come to the center to find out the best ways to start an independent practice.

One down side to this idea is in size. According to Sara Moreira, an assistant professor at Northwestern University’s Kellog School of Management, businesses that begin during a recession hire five percent fewer employees than those that start at other points on the economic spectrum. Part of this may be because of lowered expectations in general, though. 

“That can affect businesses in the long run,” Moreira says. “Even if you want to double your capacity, you may not do that because it requires investment.”

Still, there are those like the others who are profiled in the article that want to continue to reap the benefits of owning their own business, including have a more flexible schedule than the 9-to-5 world could offer.

“None of us know what it’s going to be like in three or four months, but entrepreneurs are more willing to jump out and take risks,” Moreira says. “They’ll work the extra hours, or do whatever they need to reach out to people. So I think entrepreneurs will be very successful right now because they know how to change with the times. To them, this is like a great big bowl of ice cream.”

Lending options offer variety for Utah businesses in need of funds

When the need for more funding becomes a necessity, especially as a business starts thriving but needs some boosting to keep up the momentum, First Utah Bank can be there as an understanding guide to the ways these solutions can help with the needs of small businesses.

Term loans are one way to purchase assets that can help you keep your business on track, or they can be used as a set amount of money to fit a specific need as it develops. Among the many options for term loans that would make sense for a small business are business debt consolidation, investment in commercial real estate, commercial vehicle purchases or long-term working capital.

These types of loans are on a predetermined schedule based on interest payments and a monthly principal. A term loan is at a fixed rate, but our team can look into variable rates if that makes better sense for your business needs.

Talk to your Utah business loan officers to see how this, or other, lending options might benefit your business. Learn more at our term loans website, or call First Utah Bank at 801-308-2265.