Business flood recovery team shifts focus to long-term needs

CEDAR RAPIDS - A business flood recovery unit of the Cedar Rapids Area Chamber of Commerce has shifted gears to focus on advisory and educational help for small businesses.

Tuesday's Cedar Rapids Prevail event at Theatre Cedar Rapids will kick off a series of workshops planned by Business Success Initiative, formerly Business Long-Term Recovery. Author Garrison Wynn will speak on overcoming obstacles and finding success in two 90-minute sessions.

The chamber formed Business Long-Term Recovery in 2008 to help business affected by the record Cedar River floods with state disaster assistance funds, and expanded the effort to 10 members in the fall of 2010 with  Community Development Block Grant Funds. The project is funded through the remainder of 2011, according to  Case Management Team Leader Bob Harschnek.

Harschnek said the closure rate of businesses following the disaster here is considerably lower than national statistics for other disasters, but much of the credit goes to the businesses themselves.

“Our businesses really helped themselves,” Harschnek said. ” They depleted their personal assets. They took reduced or no pay just to keep their doors open.”

Funds from the state's JumpStart II programs are now being released to qualifying businesses, and Harschnek said face-to-face conversations with business owners indicate they will definitely help businesses regain their footing.

With most of the state and federal assistance work completed, Harschnek said the chamber unit wants to focus on the other needs businesses face. A series of workshops will be announced throughout the year.

A tax workshop in January offered business owners advice on tax treatment of disaster assistance funds. A big topic in future workshop will be on marketing and sales promotion.

Marketing is a huge issue for businesses, Harschnek said. Sales dropped by an average of 30 percent at flood-affected businesses, Harschneck said, while many businesses saw their debt load increase by 60 percent due to recovery costs.

In addition to marketing better, Harschnek said many businesses need to look at adjusting their mix of products because of changes in the marketplace.

The future of the 10-member unit is unclear after the end of the year, Harschnek said. The chamber is pleased by what the group has been able to accomplish, however.

“We've had some really good success up to this point and look for some great success this year,” Harschnek said.

Tuesday's Cedar Rapids Prevail event has been opened to the public after initially being offered exclusively to the group's clients. Wynn is the author of “The Real Truth About Success.” Harschnek said his speaking style is dynamic, entertaining and humorous.

The sessions are at 9 a.m. or 1:30 p.m. Although the event is free, seating is limited. Reservations should be made in advance on the chamber's web site: www.cedarrapids.org

Additional information on the event is available by contacting Jennifer Jentz at 319-731-5843 or e-mailing

jjentz@cedarrapids.org.