Economy, rising costs doom Jabo's

|Jabo's Coffee was a local coffee shop that maximized on a homeyfeel.

The owners, married couple Janelle (Ja) and Bob (bo) Anderson,pronounced (jay-bows), made good on their promise to provide thevery neighborhood flavor they were hoping for last April.

With innovative ideas such as free wireless Internet for dine-in customers, curbside delivery, local art for sale, musicalentertainment and a kiosk near Montgomery Regional Medical Center,the owners thought they would find success at 50 Merrimac Road inChristiansburg.

However, the small business closed for the last time Friday.

Janelle Anderson said most sales came from students who ordered acup of coffee, used the free wireless Internet connection andfilled the small parking lot.

"We added food to the menu, which we thought would help sales,"she said. "I tried adding events like local music, but thatstimulated sales temporarily."

Struggling sales were just part of the problem. Janelle Andersonsaid the business struggled with payroll expenses while she hadmedical issues, a less-than-ideal location and, finally, theinability to get two applications for loans approved.

"Those things caused us to close the doors," she said.

Bob Anderson said other things working against the business werethe rising minimum wage and electricity rates, and increasingcredit card interest rates.

"We tried different brokers, but no one was able to provide uswith supplemental funds," he said. "It is hard to keep expensesdown for small business owners."

David Shanks, director of the New River Valley Small BusinessDevelopment Center at Radford University, said the federalgovernments stimulus plan "hasn't really hit the street for smallbusiness agencies here."

He said government contractors, construction and school systemsseem to be reaping most of the benefit of billions of dollars ingovernment help.

And he said that diminishing lines of credits and rising interestrates are hurting even those who previously had good financialhistories.

"If you want to have success starting a small business in thiseconomy, make sure you have a good portfolio and experience," hesaid.

The prospective entrepreneurs who achieve the most success aremanaging their projected profit margins strictly, proving they havea productive market base, and are able to provide money out ofpocket, if necessary.

"People who are getting loans have to prove that they wereprofitable, and can be profitable again in the future," Shankssaid.

It seems that past small businesses that were granted loans mayhave been rewarded in a much too optimistic fashion.

Several small business owners have tried unsuccessfully toprocure loans for their businesses in the New River Valley.

"In this area, there are businesses that are doing really well."Shanks said. "Some businesses are making more money than they evermade. ... You have to have more working capital than in the past,but we have one of the strongest economies in Southwest Virginia."

Though Janelle and Bob Anderson aren't impressed with thefinancial market for their past two business endeavors (Jabo's andAdventure World), they are looking to the future with hopefulprospects within the job market.

The couple plan to regroup locally, but Jabo's owners said theywill miss the people they met.

"They are the best part of running this business," JanelleAnderson said.

She points out an inspiration quote on the wall at Jabo's:

"He, who can give thanks for the little, will always find he hasenough." It's one of the many verses in the coffee shop.

Janelle Anderson will move on to tutor seventh-grade students fortheir standardized tests, but still will offer premium coffeeonline at www.jaboscoffee.com.

The Web site is under construction, but boasts hope.

Bob Anderson is working as a courier, which has kept the familysupported in the lacking economy.

A graduate of the now-closed Life Bible College, he has seen howthings can change.

"I don't want other locals to be discouraged in opening a smallbusiness, just know the market you are getting into," he said.

The husband-and-wife team is looking forward, simply noting ontheir Web site: "That everyone may eat and drink, and findsatisfaction in all his toil -- this is the gift of God."