Defying the downturn

Five small businesses hiring staff, expanding, and laying plans to thrive in a recession.

•  Read on for more about Apple Bakery's plans to push sales to $1 million this year.
•  Share your slump-busting strategies in our forum.

As the local economy began slowing in recent months and four big retailers closed nearby, she noticed that her walk-in trade was dwindling. Even regulars she had once seen five days a week were cutting back their spending and stopping in less frequently.

Looking to expand her customer base, she spent seven months studying natural foods and talking to her customers about their needs. As a result of that research, she invested $30,000 to develop gluten-free cookies. The product line, introduced in October, has been a hit: The nine new cookies accounted for 2% of the bakery's fourth-quarter sales, and Ardapple plans to release a line of gluten-free bread and muffins.

"I'm more optimistic today than I was five years ago," says Ardapple. "And it's because the tests and trials of a troubled economy encourage me to seek greater opportunities than I did the year before."