By PATRICK DONOHUE
pdonohue@beaufortgazette.com
843-986-5531
Published Monday, Nov 17, 2008 12:00 AM
Operating a small business in an economic downturn is difficult enough without having to combat rumors the business is going under.
Several Beaufort-area business owners have found themselves on the defensive recently, beating back rumors that they are going out of business, and in some cases, already closed.
"People have told us that they don't come here anymore because they think that we are closed," said Silvia Kuhn, owner of Silvi's European Cafe on Ribaut Road in Port Royal. "People are not showing up for their reservations or call to ask if we're still open."
Unfounded, rampant speculation about a business closing can affect its customer base, its employees and relationships with vendors, said Martin Goodman, regional director of the Small Business Development Center at the University of South Carolina Beaufort.
"Rumors can be very dangerous to a small business, particularly in this economic climate, when it's becoming tougher and tougher just to stay afloat," Goodman said. "If your customers or prospective customers think you're closed, they're not going to bother to drive by or call to see if you are actually closed."
Goodman said employees working for a business rumored to be going under are far more likely to be looking for other job opportunities, regardless of the validity of those rumors.
"In today's world, and especially in a town like Beaufort, you want the best employees you can find and if your employees think you're about to close, they're going to start looking at jobs someplace else," he said. "So in turn, you lose quality employees, and it ultimately makes the business less successful."
To help combat toxic rumors, the Beaufort Regional Chamber of Commerce sought to set the record straight with its newsletter, devoting a chunk of its most recent edition to de-bunking myths about a half dozen local businesses. That practice likely will continue, according to chamber president Carlotta Ungaro.
"There's always a lot of rumors going around Beaufort, but in this business environment, those rumors can be especially hurtful," she said. "Every time I get a call about a business, we're going to call and check to see if they're still open. It's important that people know the truth."
The chamber's list of businesses rumored to be closing but still open for business included Palm and Moon Bagel, Albergotti Grill inside the Beaufort Holiday Inn, Barefoot Bubba's on Bay Street, and even the chamber's Visitor Center, when residents thought the center had closed after its large sign out front was removed.
Another of the businesses featured in this week's newsletter was Butler Chrysler Jeep on Salem Road in Beaufort.
Keith Hart, general manager of the dealership, said the business appreciated the chamber clarifying that the business was still open, a rumor that affected the dealership's employees more than its customers.
"Our employees were especially concerned when they heard those rumors, especially with it being so close to the holidays," Hart said. "So I pulled them together, and let them know that the rumors aren't true and that we're going forward."