The economic impact of the pandemic hit Shenandoah Valley and Central Virginia small businesses hard — particularly businesses that rely on corporate and tourism travelers. In February 2020, for example, leisure and hospitality jobs accounted for 10.9% of non-farm employment in the region. Yet, by April 2020, that figure had dropped to 7.6%. Fortunately, however, small businesses across Central Virginia found new ways to survive and thrive during these stressful and uncertain times and now continue to experience boundless growth and success.
From food truck to brick-and-mortar restaurant
Angelic Jenkins took the leap to launch her business full-time once the pandemic hit. She promptly expanded her food truck, which served soul food staples with a modern twist to locals in Pantops, to numerous neighborhoods across Central Virginia. World Central Kitchen, a global nonprofit that delivers meals to food-insecure communities, were responsible for the bulk of her sales. By working with the Community Investment Collaborative and Stony Point Development Group, Angelic then soon successfully secured the grants and loans needed to open a brick-and-mortar restaurant. Angelic’s Kitchen opened in the Dairy Market food hall in December 2020.
“It was really scary,” Jenkins says of the past 16 months, “but everything ended up working out.”
Four businesses, one owner
Owner of Albemarle Limousine, Andrea Saathoff, saw 90% of her transportation business evaporate in early 2020 as her main sources of revenue (namely, weddings and business travel) dried up. Rather than face defeat, however, Saathoff opened Ace Bicycle Charlottesville in the same building to meet the newly-booming demand for bicycle maintenance services. Her employees already had the required skills to make the pivot successful. Additionally, Andrea worked with her employees to expand her long-time car washing and detailing service side-business, Virginia Auto Detailing. “We used our time where we were not providing transportation to try to grow and develop and nurture these little businesses,” she said. “In a way, surviving the pandemic requires the same kind of skills that entrepreneurship requires … You have to be ready to quickly take advantage of changing opportunities and changing trends.”
Saathoff also soon began looking for larger premises to house her ever-growing detailing business, which would also facilitate car repair with in-house mechanics. So, when nearby Edgecomb’s Auto Sales and Service closed permanently, Andrea secured loans from the Central Virginia Small Business Development Center to purchase the property and opened Ace Auto Center Express in the beginning of 2021. Now, all four of her businesses are booming, including Ace Bicycle, which she calls a move of “pure desperation” that ultimately paid off.
The great outdoors and wine delivery
In early 2020, George Hodson, CEO of Veritas Vineyard in Nelson County, initially thought he’d need to find a way to maintain his vineyard and production levels despite all events and restaurant and retail activity coming to a standstill. However, he was surprised to find the lockdowns actually sparked a boom in business as a surge of customers started coming to Veritas Vineyard to enjoy nature and fresh air.
“We had more families, more people here for a much longer time,” Hodson says.
In turn, Veritas also launched Phase II, a pop-up restaurant featuring igloos to allow for cozy winter dining. Moreover, the lockdowns also hastened an existing phenomenon in the wine industry: home delivery.
“People have been predicting this tide for years when consumers stop buying wine in stores and get it shipped to their homes,” he said.
Being at home more often meant people were able to take deliveries and provide signatures during the working day, which had previously been something that prevented widespread online alcohol purchases. In fact, Veritas experienced a 500% growth in its e-commerce sales in 2020.
Starting a new business successfully
Residents across Shenandoah Valley and Central Virginia looking to start a new business need to prepare thoroughly and take the time to create a solid business plan beforehand.
This involves first defining your target customers and ultimate purpose on the market, as well as assessing your finances to figure out how you’re going to fund your endeavor.
Before registering the business, owners also need to decide on a legal business structure, which legally impacts things like tax filings and personal liability.
For example, an LLC (limited liability company) is a common structure for small businesses. It provides the legal protections afforded to corporations along with the tax benefits of partnerships. LLC filing companies like LegalZoom, for example, can also help people with the process of forming an LLC. By carefully reviewing an in-depth LegalZoom LLC review, soon-to-be business owners can find out about this service’s features and packages.
Supporting Central Virginia’s small businesses
Fortunately, support is available to help Central Virginia residents dive into the world of entrepreneurship.
The Central Virginia Small Business Development Center (SBDC) recently announced an expansion of its Starting Your Business class and the launch of its new entrepreneur certificate. In a new series of four classes, SBDC clients will be able to learn how to successfully start their own businesses, while the entrepreneur certificate is designed for anyone who wants in-depth knowledge on the skills and steps required for successful entrepreneurship.
Class topics include: “Starting Your Business; Marketing, Sales, and Your Brand; Business Model and Pricing; and Cash Flow, Record Keeping, and Funding”.
To earn the certificate, students need to complete all four classes and meet with their designated CV SBDC adviser who helps them with assignments in between classes. Upon completion of the program, each entrepreneur should have created a business model or plan ready to put into action.
“Initially there was a fair amount of panic and concern across all industries, but I think we saw pretty quickly a considerable ability to pivot business models and try to be resilient,” said Charlottesville Economic Development Director Chris Engel.
Indeed, many of Central Virginia’s small businesses have successfully demonstrated how to adapt to changing situations and thrive during unprecedented economic times.
Story by Megan Haddon
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