1. “Tops in Sonoma” Business Outlook September 2009

2. We Asked: How is your business doing? Plans and outlook for the coming year? Issues you are facing?

3. Who Answered: 15 of our “Tops in Sonoma” businesses  70% in city, 30% outside or both  Lodging, retail, auto, hardware, food, wine  2,000 jobs

4. How is your business doing compared to this time last year? Far Worse: 24% Slightly Worse: 47% About Same:18% Slightly Better: 12%

5. Workforce changes in the past year… 41% - cutbacks through attrition and/or reduction in hours 35% - layoffs 24% - no significant changes 12% - added positions 6% - added hours

6. During the next 6 – 12 months, do you believe the economy will: Improve slightly: 38% Stay the same: 56% Worsen slightly: 6%

7. Looking Ahead 6%24%70% 12%24%64% 12%29%59% Employment Capital Investment Profits

8. Workforce “ We are usually able to find qualified employees without difficulty.” (44%)

9. Looking Ahead: LOCATION & FACILITIES What’s LIKELY? Make improvements to existing space  Energy efficiency: 69%  Other: 77% Open additional locations: 31%

10. Looking Ahead: MARKETING Will be doing more of: Using Social Networking Tools (75%) Web-based Advertising (62%) E-Mail Marketing (53%) Will be doing less of: Print Advertising (47%)

11. What are the STRENGTHS of doing business in Sonoma County? Location (94%) Quality of Life (88%) Community Support (59%)

12. What are the WEAKNESSES of doing business in Sonoma County? Affordability (86%)

13. What can local government do that would help your business succeed? Signage Parking Crime Permits

14. “Tops in Sonoma” Business Outlook September 2009