BUSINESS RETENTION BUSINESS RETENTION BUSINESS RETENTION

Transcription

1 BUILDING A STRONGER PROGRAM BENEFITS OF A STRONGER BUSINESS BASE Locate in small unique rental spaces. Often are property owners and generates retail sales and property taxes for City Enhances residents (current and prospective) lifestyles with more shopping and dining choices Provide jobs and opportunities for residents Attracts residents and business investment to area Multiplier effect of local $ PROGRAM A CRISIS IS A TERRIBLE THING TO WASTE Rohm Emanuel Difficult times for small business The consumer has changed. Consumer loyalty is harder to maintain Customer wants unique experience Needs and wants have changed Consumer has less credit Consumer has more choices Financing has changed. Collateral not business plan Terms and conditions have tightened Fewer lenders making inventory loans Fewer lenders making real estate loans Fewer Lenders

2 BUSINESS ACQUISITION Harder to buy or sell business Sales of businesses down 11% last year Value of business declined 5% 50% of businesses do not transfer to 2nd generation 60% of owners are baby boomers who will be retiring Positive trends Consumer confidence and spending is improving and retail sales are increasing Corporate spending is slowing rising Unemployment is leveling off Stock market is less volatile Credit crunch is easing Tip 5. Positive trends Small businesses are adapting to changing market Many own buildings or pay below market rents Stronger labor pool Frugality fatigue Trade area is expanding due to technology Rising gas prices keeping customer in town Understand changing customer base Define Trade Area Clarify Shopping behavior Develop Customer Profile Identify trends, opportunities and changes that impact retail sales. Tip 6. Identify issues that concern your businesses Review business newsletters Develop business data base Profit-loss Cash flow Debt-equity Return on investment Track real estate/rental costs Talk to lenders/investors/sba Identify issues that concern your businesses Survey businesses Personal interview Survey monkey Zoomerang Conduct audits Lack of inventory Turnover in sales help Cut back in ads Owner-tenant issues Personal problems

3 Monitor health of business district Develop list of at risk businesses Retiring Financial insolvency Wrong location or poor space utilization Insufficient sales Functional vacancies Work with Chamber and EDC to avoid overlap or turf issues Coordinate with Promotion and Design Committee ISSUES FACING SMALL BUSINESSES Retention objectives Help existing businesses become more profitable. Help businesses grow and expand. Help key retailers become truly destination retailers Strengthen existing business clusters or niche markets Help business owners plan for future. REGULATION MARKETING TAXES EXPENSES Main Street Focus INCREASE SALES Retail sales Special events Image Improved merchandising Main Street Focus REDUCE BUSINESS EXPENSES Improve business operations and efficiency Financial education and counseling Financial incentives/programs Energy efficiency programs Tax credits and abatements Rent or utilities

4 BUSINESS ENVIRONMENT Safety Cleanliness Parking Signage Walkability Overall appearance Retail sales Seasonal General Targeted Guerrilla RETAIL SALES RETAIL SALES Retail sales Seasonal Group RETAIL SALES RETAIL SALES Targeted Retail Promotions GUERRILLA MARKETING Social networking In-store events Grand openings Cross merchandising

5 RETAIL SALES Retail Promotions Revise Shop Local Campaigns Definition of local Benefits of participating Develop small targeted promotions Increase sales Special Events Holidays Heritage Home and hearth Wellness Local producers-stores Small indulgences (long-term) Assets Image Encourage more cross promotion Use Facebook to pool resources Co-produce an in-store demonstration, celebrity appearance, free service or lecture General PR es District IMAGE AND SPECIAL EVENTS SPECIAL EVENTS Differentiate yourself from competition IMAGE AND SPECIAL EVENTS Signature Event should be memorable Print Use smaller events to attract specific customer groups Website

6 BUILDING FACADES AND INTERIORS Buildings Façade Improvements Façade Improvements FAÇADE IMPROVEMENTS WINDOW DISPLAYS

7 WINDOW DISPLAYS WINDOW DISPLAYS Empty storefront Storefront graphics IMPROVED MERCHANDISING Highlight pending projects Web site /E-commerce Add new inventory lines Change store hours Change window or in-store displays Marketing Destination uses Destinations

8 REDUCE BUSINESS EXPENSES Main Street Focus REDUCE BUSINESS EXPENSES Improve business operations and efficiency Financial education and counseling Financial incentives/programs Energy efficiency programs Tax credits and abatements Rent reductions or allowances operation Workshops, Training, Seminars On-site specialists and Consultants Educational newsletters Mentors Partnerships with other organizations REDUCE BUSINESS EXPENSES Customer service SBDC Improve operation Knowledge of changing business regulations/taxes E-commerce operation Resource Guide Staff SWAT mentor team Cash management plan Succession plan-exit strategy One-one counseling Experiment with different types of communication Automated text messaging Webinars blasts Twitter, Facebook Encourage es to use E- commerce Downtown web store Develop virtual sales space Connect with larger community Exit Strategy Can business be sold? Is owner ready to sell? Valuation Buyers Financing

9 FINANCIAL RESOURCES Resources Bizbuysell.com Bizquest.com Broker Consultant Friends and family Specialty lenders SBA Community banks and Coops Regional banks USDA City Revolving Loan City façade grants BID, TIF Historic Tax Credits LLC Property owner PROGRAM Develop local sources of funding to support small business entrepreneurs and innovative concepts Partner with Govt. Agencies, foundations and Lenders to increase knowledge about programs Financial Assistance Friends and family Specialty lenders 401 K Conversion Franchise Lease equipment SBA programs: Lending up in last quarter SBA Small Loan Advantage and Community Advantage programs 75% up to $150,000 Buildings Rent and Utilities Landlord-tenant ombudsman Landlord advisory committee Energy audits and rehab loans Co-tenanting Co-op space Environment Streetscape Maintenance Parking Safety

10 STREETSCAPE Streetscape Streetscape 1. Add a few targeted events to promotion calendar 2. Improve communication 3. Signature special event 4. Annual workshop/seminar 5. New business guide 6. One-one counseling 7. Silent partners