BusinessReport.com

POSITION: Owners

COMPANY: Bethdales Fine Lamps and Home Accessories/BD Kitchen Co.

WHAT THEY DO: Retail specializing in lamps, home décor and kitchenware

REVENUE: Over $500,000 in 2009

NEXT GOAL: Expand into other metropolitan markets in two to three years

In an environment dominated by headlines screaming about economic recession and plummeting profits, conventional wisdom suggests that small businesses hunker down and avoid major changes.

But for Bethdales Fine Lamps and Home Accessories owners Ronny Daley and William Bethea, buying out Kitchenary in Towne Center at Cedar Lodge represents a way to branch into a similar business while returning to core values at their first store.

While an array of lampshades sends a warm greeting to every customer that walks into Bethdales, Daley and Bethea found that a crowded sales floor was not necessarily the best way to present merchandise to their clientele. The new store, slated to open mid-February as the BD Kitchen Co., solves that problem by featuring cookware, kitchen décor and the special collection items that currently take up about 20% of the retail space at Bethdales. The shift will allow more room for lamps—the main selling point—along with wall hangings, mirrors and other home accessories in the original store.

While Bethdales, like most other retailers, has seen a pullback in spending due to the economic downturn, Bethea says the business has seen consecutive growth since it opened its doors in 2005. Recession is no reason to ignore a potentially advantageous opportunity. When presented with the choice of starting a new business from the ground up or buying an existing one, he and Daley found it easy to decide.

“It’s the old adage of buying low and selling high,” he says. “This is just a better opportunity right now to buy another business than to try to pay for a buildout or a brand new inventory by yourself. This is providing us a good opportunity to get in on the ground floor of kitchen wares.”

Ultimately, Daley says, it’s about observing the needs and spending habits of customers while providing them with the products they want. For example, while kitchenware isn’t necessarily recession proof, it might be easier to justify a purchase of new cookware versus a new pair of shoes. Understanding where and how customers choose to spend their money is key to success.

“We’ve had to change a lot of product mix in the store to accommodate this,” Daley says, “but so far it’s been for the win.”