Jonesboro's new business numbers down

JONESBORO, AR (KAIT) - Warm, gooey and home made donuts are a favorite American past time for the very young and old. However, in a slumping economy would it really be a good idea to open a brand new donut shop? The owners of Jonesboro's new Shipley Do-Nuts say "why not?".

Jim Khuth and Tera Heang say this is not their first go around with a donut shop.

"My husband he is a baker back in 1994 and 1995 and I was a sales clerk you know I sell the donuts so we kind of hooked together," says Heang.

The donut shop duo says as long as they can keep their price point low enough, they'll be around for a long time to come.

So how does a new business manage to open and stay afloat in an economy where the Bureau of Economic Analysis estimates people are now saving 3.9% compared to just 1.5% back in 2007?

The owners of Shipley Do-Nuts say when opening a business in this economy the best thing you can do for yourself is choosing a good location. In their case they opened right across the street from a church who probably likes their donuts on Sunday morning.

The number of business building and renovation permits being pulled are drastically down in the city of Jonesboro.

Terry Adams, the chief building official for the city, says the brave few who are still pushing forward are cutting costs when either renovating or building.

"The contractors with the owners are trying to keep the cost down because there is not as much money out in the economy to accommodate for what they really want to do," says Terry Adams.

The Shipley owners say compared to opening their past donut shops getting an inexpensive contractor this time around wasn't hard to come by.

"Right now it was easier. Anything right now is a good time to get a good deal," says Heang.

While the lower building costs may be good for the new businesses it is affecting the amount of revenue the city can charge for their permits.

Adams says if more businesses like Shipleys don't ship up and open their doors in Jonesboro there is a chance the cost for a business building permit will rise in the next two to three years.