It’s been two months since Mike Young has cut himself a paycheck. He’s trying to avoid layoffs at his Bellevue-based company, Sound Electrical Contractors.
Things aren’t much better for his eight employees, who’ve had to share a handful of hours each week for several months.
Skipping paydays and rationing hours is just one way small-business owners are trying weather the recession. But there comes a point where it’s no longer enough to absorb the impact of an economic downturn.
“I’ve wiped out all my savings,” Young said. “My wife’s been great about it, but we’re getting late on payments.”
Eventually, Young had to change his focus and go where the work exists – what little could be found.
Sound Electrical used to deal mainly with spec homes, but that market dried up once residential construction ground to a halt. Now Young is drumming up work with remodels and commercial construction.
“We’re doing everything we can to find jobs,” he said. “It’s starting to pay off. It’s getting busier.”
While business is slowly picking up, Young said it’s still hard to work with vendors. That’s because everything has to be paid for up front these days.
It makes for tough going as Young tries to get his one-year-old company in the black.
“It’s a battle, but we’re starting to get an edge,” he said.