Business owners struggle in struggling economy

WEST MICHIGAN (NEWSCHANNEL 3) - There's been a lot of talk about the financial markets, the proposal of a $700 billion bailout and major financial firms going under have all dominated headlines around the country and the world.

But what does the latest news mean for you, and how are folks preparing for the worst.

Newschannel 3 went to find out.

As Congress tries to get a bailout plan worked out, those left in the middle are still just trying to make better lives for themselves, especially business owners who are trying to keep people employed and make a profit for themselves.

In Wyoming, one of the newest and nicest salon and day spas says that they offer the luxury of beauty at a reasonable price, but you couldn't find a better example of a victim of the credit crisis than the owner of Karisma Salon and Day Spa.

Kari Lindsay says it's hard to believe she's still open a year after her grand opening. But a closer look at the South Wilson Centre off 56^th Street shows why. Across from Karisma, empty, next to Karisma, empty buildings all around the Spa.

"It would help us if we had even a restaurant or something in this strip mall," Lindsay said, "because people think we're still building, that we're closed."

Karisma sits in a brand new strip mall that was built in 2007, but there are only two businesses in a facility that could hold so many more.

Lindsay wanted to build her dream of owning her own business, but to nobody's surprise, she couldn't get any help from the bank in 2007.

"We couldn't get a business loan, so this was all our money when we opened," Lindsay said.

Lindsay made the investment not realizing that other prospective business owners also couldn't get a line of credit to open up shop, it was a risk with the economy as it was.

"The issue is everybody is paralyzed," said Randy Swanson, a business owner, "people are not wanting to take chances, not wanting to take risks."

So as Congress continues to go back and forth over what to do with bad debt, Lindsay's business stands alone in the strip mall. She plans to hang on through the tough times by herself in the plaza, hoping that she'll get some company.

"We're a little squeaky in the joints," Lindsay said, "but we're trying real hard."