When Albert Lean Mike Lee was let go from Daisy Blue Naturals earlier this year, he at first walked around shell-shocked, he said.

“Part of the shock of being let go from something that you’ve done for the last eight years, the first couple weeks I wondered what I was going to do,” Lee said.

But when the shock wore off, he said he realized that he has many gifts and traits to draw upon to start his own business.

He used to own the Coffee House on Main in Austin, and he said he knows how to market a business and to network with others.

“That’s really what kind of let the idea be planted,” Lee said.

A close friend pointed out his talents, and he decided he wanted to pursue an opportunity.

He is one of thousands across the country who are becoming part of a trend of starting a business in a down-turned economy after previously being let go from employment.

“I think as Americans we have kind of a tradition and a history and a desire to do our own thing,” said Albert Lea Economic Development Agency Executive Director Dan Dorman. “I think that sometimes being laid off will force you to follow your dream. The necessity of it might stimulate that and give you the opportunity to do something you haven’t been able to do with a secure job.”

According to the Minnesota Secretary of State’s Office, so far in Albert Lea in 2009 there have been 124 new business filings; in Alden, 13; in Clarks Grove, 17; in Emmons, 3; in Glenville, 6; in Hayward, 1; and in Hollandale, 6.
Business starts

New business filings in Freeborn County cities:

2005 2006 2007 2008 2009

Albert Lea 117 109 116 98 124

Alden 8 7 10 7 13

Clarks Grove 5 7 8 4 17

Emmons 5 4 3 2 3

Glenville 6 4 8 9 6

Hayward 2 1 1 14 1

Hollandale 6 4 4 12 6
Those are significant increases in Albert Lea, Alden and Clarks Grove from 2008.

Records state there were 98 new filings in 2008 in Albert Lea; seven in Alden; and four in Clarks Grove.

Hayward saw a major jump in 2008 to 14 new business filings, while in 2006, 2007 and 2009 there were only one each year.

These numbers include Minnesota business corporations, Minnesota and foreign limited liability companies, Minnesota nonprofit corporations, assumed names, foreign corporations, Minnesota and foreign limited partnerships, and Minnesota and foreign limited liability partnerships.

Lee said though his business opportunity is still in the planning stages, he thinks he has an idea that will be successful.

Though he didn’t want to expand on the specifics of his new business plan, Lee said he’s taking the concept from the Coffee House and running with it.

“People still want to eat, they want to be entertained,” Lee said. “They want to be able to sit down and relax. Sometimes in a down economy, there are things people still want to spend money on.”

The business will not involve a national chain, and hopefully, he noted, it will become a source of community pride.

Lee said he’s approached Albert Lea-Freeborn County Chamber of Commerce Director Randy Kehr with the idea and is also reaching out to SCORE, which used to stand for Service Corps of Retired Executives, and others who can provide low-interest loans or grants. He’s also met with several Albert Lea landlords who are excited about his idea.

“If people can just draw on their strengths,” he said. “Being let go from a position that you’ve had for so long, it can be emotionally scarring if you focus on it. But once you get over the initial shock and hurt, the fog lifts and you start to see the opportunities that are there.”

Dorman encouraged people to take advantage of their dreams if they find themselves in a situation similar to Lee’s.

“If you’ve got the capital that you can take that risk with, and you’re not giving up a job, then you may as well take that job, follow that dream,” he said.

Most of the jobs created in the last 10 years are coming from entrepreneurs in small business such as these, Dorman noted.

He pointed out there are services offered in the Small Business Development Center in Albert Lea for people who would like to get help starting a business.

Dave Lundak, Small Business Development Center counselor, said he has had several clients who have considered a new business because of displacement. However, he doesn’t think there’s been an increase compared to previous years.

He said he does think there’s been an increase in people who are coming to him looking for financing or refinancing for a business that has had some cash-flow issues.

For people interested in starting a business or getting help for a current one, the Small Business Development Center provides the following services:

Helping a new business owner obtain information on regulatory requirements, market conditions, industry trends and technologies.

Reviewing a new developer’s current business situation and making recommendations that will help him or her to capitalize on strengths.

Reviewing a new developer’s business plan.

Analyzing the new business owner’s financial situation and identify sources of financing and how to apply for those loans.

Offering advice for developing a solid marketing plan.

To contact Lundak at the Small Business Development Center about starting a business call 373-3930.