Even in a shaky economy, some local businesses continue to grow, thrive and spend. And one group that’s especially bullish on the economy is women presidents of companies, according to a new study.
The Women Presidents’ Organization surveyed more than 1,400 female presidents and chief executive officers at privately held, multi-million-dollar companies about their corporate spending habits.
The 2010 Buying Behavior Survey shows women business owners spend more than $500,000 annually on company expenses, which include insurance, financial, travel, shipping, technology, retirement, legal and training services.
Linda Price, chairperson for the organization’s Connecticut chapter, expects women to continue to spend on their businesses as long as the economy keeps showing signs of improvement.
“This is a strong sign that we’re recovering from the economic downturn,” said Price. “Many of our chapter members in Connecticut used the recession period to get stronger and more innovative.”
“They expanded their companies by developing new products and services for existing markets while introducing their businesses to new markets,” said Price. “Now these women are coming out in a strong fashion and ready to spend money.”
Church Hill Classics, for example, used the downtime to expand its product line and grow its workforce from 48 to 52 people.
Most recently, Monroe-based Church Hill Classics left 30,000 square feet of leased space when it purchased a new 47,000-square-foot building that includes manufacturing and office space, said Lucie Voves, who started the specialty frame business in her basement 19 years ago.
The company makes custom diploma and photo frames and desk accessories for corporate clients and professional organizations. The company, which has partnerships with more than 700 colleges and universities in the U.S., provides frames and gifts for 50 Greek organizations and the U.S. military.
“It’s a tough period right now for many businesses,” said Voves. “Despite the economic slowdown, we’re continuing to grow. For the past three years, we have invested heavily in buying a building, upgrading our IT system and training people.”
“This is the perfect time for us to streamline our operations and position our business to do better when the economy turns around again,” she said. Church Hill Classics, which posted $5.8 million in sales last year — a slight decline from $6.1 million in 2008 — continues to spend money on things like technology, travel and training, said Voves, one of 19 WPO members in Connecticut.
“We’re looking carefully at where we spend our money and how the investments benefit our company,” said Voves.
Church Hill Classics is on track to earn $6.3 million this year, according to company officials.
Optimistic about the local economy, women business owners in Connecticut like Voves are digging deeper into their pocketbooks to pay for company-related expenses like office supplies, airline tickets and training courses, according to a new study.
Nationally, WPO members shelled out an average of $135,926 for health care; $99,187 for banking services that includes credit card fees, cash management and credit line charges; $49,886 for travel-related expenses; $47,040 for shipping; $53,361 for technology, computers and software; $48,350 for retirement programs and $32,387 for insurance.
Members of the group spent a combined $52,497 for legal, office and corporate training and continuing education courses, according to the study, which also found that women business owners are accessing capital and utilizing their purchasing power.
The majority of respondents obtained all of the credit they wanted in 2009 and indicated that the amount of credit currently available to them is about the same as was available prior to the recession, according to Marsha Firestone, president and founder of the organization.
Based in New York, the Women Presidents Organization is a peer advisory group that connects women entrepreneurs who own multi-million dollar companies. Members have an average of $13 million in annual revenues, 97 employees and more than 20 years in business.
The nonprofit currently boasts 82 active chapters throughout the U.S. and Canada.
