Social Involution? The Impact of Economic Restructuring on ...
Goal of Economic Restructuring - mdf.orgmdf.org/documents/12-4MDCI-EPCG.pdf · Economic...
Transcript of Goal of Economic Restructuring - mdf.orgmdf.org/documents/12-4MDCI-EPCG.pdf · Economic...
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
1
Maine Downtown Center Institute
December 4, 2009
Augusta, Maine
Presented by:
Noreen G. Norton and John P. Holden
Eaton Peabody Consulting Group
Downtown Business Recruitment and Retention
Agenda
Main Street 101 Overview –Roxanne Eflin
Certificates of Completion–Roxanne Eflin
Introductions
Economic Restructuring
� Goal of ER
Know Your Market
—Market Analysis
Business Retention
--BreakBusiness ExpansionBusiness AttractionQuestion & AnswerWrap up
What Action Step will you pursue / organize for by January 15, 2010?
Downtown Institute, 12/4/2009
� A multi-disciplined consulting team providing an array of services in the field of economic and community development
� Business Development Assistance� Community Development Assistance� Public Affairs Assistance
� Services to downtowns
� Downtown Tax Increment Financing� Market Analysis� Strategic Planning� Organizational Development
Downtown Institute, 12/4/2009
Eaton Peabody Consulting Group
To improve the economic condition of the commercial district by:
�Identifying new market opportunities,
�Supporting businesses, and
�Stimulating investment.
Downtown Institute, 12/4/2009
Goal of Economic Restructuring
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
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� Healthier downtown business mix
� Increased business activity, rents, property values, and investor confidence
� Market based rents and property values
Downtown Institute, 12/4/2009
What can you expect to achieve?
� Maintain and strengthen existing economic assets (retention)
� Identify and support existing business expansion opportunities (expansion)
� Physical expansion
� Revenues, season, profitability
� Diversify and expand economic activities and offerings (new business attraction)
Downtown Institute, 12/4/2009
What ER success looks like
Downtown Institute, 12/4/2009
How Economic Restructuring Works
Know Your Market
Business Retention
Business Expansion
Business Attraction
Downtown Institute, 12/4/2009
Starting Smart…
Know Your Market
Asset AnalysisMarket Analysis
What Exists….
� Building inventory
� Business inventory
� Demographic and economic data
� Regulatory constraints
� Financing resources
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
3
Downtown Institute, 12/4/2009
Starting Smart…
Know Your Market
Asset Analysis
Market Analysis
What Is Possible….
� Existing Business Survey
� What would support their success
� ID businesses types that would complement existing offerings
� Downtown user survey
� Market area surveys
� Who to visit
� Businesses
� Residents
� How to visit
� In person
� By whom
� What to ask
Downtown Institute, 12/4/2009
Business Visitation in Downtown
� Residents
� Shopping patterns
� Income
� Number in units
� Where they work
� What they buy and where
� What they want in DT
Downtown Institute, 12/4/2009
Questions to Ask
� Business
� Type of business matters
� Customers
� Product mix
� Costs of business
� Competitors
� What all will say
Downtown Institute, 12/4/2009
Questions to Ask
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
4
� Visitation (survey) methods
� Focus groups
� Confidentiality
� Who should ask
Downtown Institute, 12/4/2009
How to Ask
� Research first
� Use of existing space (current business)
� Residential
Downtown Institute, 12/4/2009
Space Inventory
What data to collect:
� How much space?
� How is it used?
� Vacant or underutilized?
� Condition…renovation needed?
� Ownership
Downtown Institute, 12/4/2009
Building Inventory
� Don’t over-promise
� Referrals and follow up with referrals
� Data and information – for market analysis
Downtown Institute, 12/4/2009
Business Visitation Outcomes
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
5
� Many techniques
� Different for each sector
� Housing
� Retail
� Professional (office)
Downtown Institute, 12/4/2009
Market Analysis
� Housing
� Stock, conditions
� Rental rates
� Ownership v. rentals
Downtown Institute, 12/4/2009
Market Analysis
� Retail
� Trade Area Analysis
� Many types
� Simple to complex –samples
� Variety (mix) of products, stores
Downtown Institute, 12/4/2009
Market Analysis
� What is the “nature of the community”.....
� …..of the downtown
� …..in relation to nearby places
� …..in relation to the larger “market”
Downtown Institute, 12/4/2009
Market Analysis – Human Factor
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
6
Downtown Institute, 12/4/2009
Now you know…what do you do?
Business Retention
Business Expansion
Business Attraction
Use what you’ve learned to develop your business retention and business recruitment (attraction) strategy
Downtown Institute, 12/4/2009
Now you know…what do you do?
� Organize
� Create a market positioning statement with strategies
� Identify key businesses
� Present analysis data in clear format
� Assemble the tools for business assistance
Business Retention and
Expansion
Downtown Institute, 12/4/2009
Now you know…what do you do?
� Develop personal connections� MS to business
� Business to business
� Communicate and collaborate
� Learn to identify warning signs
� Plan for business transitions
Business Retention and
Expansion
Establish a team
� Ideally as subcommittee of ER Committee
� Meet regularly
� Develop the Positioning Statement
� Develop and implement BRE strategies
Downtown Institute, 12/4/2009
Organize
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
7
An effective positioning statement identifies:
• Realistic opportunities for the district;
• Primary markets and trade areas; and the desired mix
• General markets and/or niches
Downtown Institute, 12/4/2009
Positioning Statement
Downtown Institute, 12/4/2009
Positioning Statement
Sample Strategies:
• To be an interesting and attractive destination for heritage tourists;
• To serve the needs of the district’s employees and residents for goods and services;
• To be a regional destination for dining, arts and entertainment.
� Anchors and traffic generators
� Longstanding businesses
� Creative “model” businesses
� Large employers
� Growth potential
� Unique or niche
� That serve residents
� Are consistent with strategies
Downtown Institute, 12/4/2009
Identify Key Businesses Share Research Findings
� Communicate market opportunities
� Share Position Statement
� Promote the Strategies / market focus
� Appeal to the qualitative and the quantitative
� (emotions and “numbers”)
Downtown Institute, 12/4/2009
The goal is to find opportunities to strengthen and grow existing businesses
Waterville DT Properties
Heart of Biddeford brochure.pdf
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
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How Businesses Grow and Expand
� Attract more (new) customers in same niche
� Increase repeat customers
� Motivate existing customers to spend more
� Identify new markets for current products
� Add new product lines
� Adapting to market trends
� Modify image to capture new or wider market
� Expand or relocate to larger space
� Open “boutique” shops within existing business
� Open companion shops that support each other
Downtown Institute, 12/4/2009
Assemble the Tools
Needs of Existing Business:
� Financial
� Management
� Marketing
� Regulatory Processes
Support Services/businesses:
� SBDC
� SCORE
� Local Banks
� Councils of Government
� Local Economic Development Office
� Town Hall
Downtown Institute, 12/4/2009
Develop personal connections
Main Street to Businesses:
� Shop, eat and walk downtown
� Invite businesses owners to participate
� Communicate positive activity
� Seek their input� Seek their input
Promote Business to Business Relationships:
� Encourage cross-selling� Seek opportunities for
businesses to interact with each other
Downtown Institute, 12/4/2009
It’s all about people…
Communicate & Collaborate
� Internal
� Business to business
� Committee to committee
� Committee to Board
� External
� With Town, Chamber, Growth Council, IDC
� With community, prospects, investors
Downtown Institute, 12/4/2009
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
9
Educate Businesses
� Through surveys find out what help they need
� Nominal cost to attend
� Partner -- SBDC, Chamber, Universities….
� Invite non-downtowners
Downtown Institute, 12/4/2009
Know the Warning Signsof potential business failure
� Low or slow moving inventory;
� Reduced staffing, hours;
� Drop in advertising;
� Poor building, display maintenance;
� Rumors of slow payment; other rumors
� Owner change in lifestyle;
� Owner personal crisis;
� Owner nearing retirement age with no apparent transition plan.
Downtown Institute, 12/4/2009
Plan for Transitions
…role of the Retention Team
� Liaison between owner and potential buyers
� Identify potential buyers;
� Develop financial incentives
� Help set up an employee purchase program;
� Provide information & resources to owners;
� Help prepare marketing materials;
� Coordinate with brokers and real estate professionals
Downtown Institute, 12/4/2009
Business Investment - Attraction
� What is the target
� What is your message (business case)
� Don’t forget to expand existing business
� Who is successful elsewhere –but not too close
� How to do it
� Be prepared, costs, time
Downtown Institute, 12/4/2009
Business Attraction
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
10
� Target market
� Use business visitation, market analysis
� What type of firms are expanding
� What types ‘fit’ into your downtown
� Get leads - how
Downtown Institute, 12/4/2009
Business Investment - Attraction
� Business case for your downtown
� Economic return
� Why expand or relocate in your downtown?
� Testimonials
� Incentives
Downtown Institute, 12/4/2009
Business Investment - Attraction
Business Recruitment: Things to Know� Market analysis should identify
potential new businesses & entrepreneurship
� Trained recruitment team to assist in the recruitment process.
� Understand wants and needs of prospective businesses.
� Scout \ identify potential prospects.
� Best prospects are existing businesses.
� Publicize needs-let the community know Main Street is active in recruitment
Downtown Institute, 12/4/2009
� Incentives
� Downtown TIF
� RLF
� Private investors
� ???
Downtown Institute, 12/4/2009
Business Investment - Attraction
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
11
Financial Incentives
� A critical component to a successful downtown revitalization program.
� Incentives must address critical priorities/issues.
� Multiple incentives/packaging efforts are becoming the norm.
� Business development activities most often stimulates building improvements.
After
Before
Downtown Institute, 12/4/2009
Incentive Programs� Small-scale
improvements/business development purposes: � matching grants for
storefront/sign/façade improvements
� low-interest/revolving loan funds
� inventory grants
� micro-loan programs for business start-ups/expansion
� design assistance
Downtown Institute, 12/4/2009
Other Incentives� Major building rehab
� Low-interest/revolving loan fund.
� Public sector- TIF, loans.
� Federal and State historic preservation tax credits.
� New Markets Tax Credit.
� Other tax credits.
� State programs/ DOT Transportation Enhancement Program.
� CDBG (HUD) funds.
Downtown Institute, 12/4/2009
What underutilized space?
� Vacant lots
� Vacant first floor spaces
� Marginal first floor businesses
� Vacant upper floor spaces
� Unimproved upper floor spaces
� Parking lots and pocket parks
Downtown Institute, 12/4/2009
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
12
� Don’t forget to expand your own
� Or seek local entrepreneur and provide incentive, training
Downtown Institute, 12/4/2009
Business Investment - Attraction
� How to do it
� Visits
� Networks (from within town)
� Materials
Downtown Institute, 12/4/2009
Business Investment - Attraction
Recruitment Packet� Vision Statement� Market Position Statement� Market Information� New market opportunities� Upcoming events (and
how to benefit from those events)
� Available resources (people and publications)
� Tips of the trade� Business guidelines� Experience-based retailing
Downtown Institute, 12/4/2009
� Be prepared
� Costs – time is money
� Costs - materials
� Timely – patience
� Approaches (who)
Downtown Institute, 12/4/2009
Business Investment - Attraction
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
13
Overwhelmed?� Think Incrementally
� One small step at a time
� Change Attitudes and Practices� Particularly attitudes toward
entrepreneurs
� Strive to do what you do a little better than you did before� Set and/or provide an example for
downtown businesses (personal trainer analogy)
� If each business and property owner spent a little extra time each day improving…
Downtown Institute, 12/4/2009
Guiding Principals for Success
� Focus
� Persistence
� Tools
� Communication and Collaboration
Downtown Institute, 12/4/2009
FocusYou can’t do everything at once…
…prioritize and then stay the course
Downtown Institute, 12/4/2009
Persistence
� Incremental progress (remember…stay the course)
� Positive results will generate interest
� Consistent positive results will motivate new positive actions
� The Tipping Point: How Little Things Can Make a Big Difference by Malcolm Gladwell
Downtown Institute, 12/4/2009
Maine Downtown Center
Downtown Business Recruitment and Retention
Presented by Eaton Peabody Consulting Group
12/7/2009
14
In closing… � Mark Twain…
� Dale Carnegie…
� Get your facts first, then you can distort them as you please.
� Flaming enthusiasm, backed up by horse sense and persistence, is the quality that most frequently makes for success.
Some resources…� http://www.umaine.edu/soe/
� http://www.extension.iastate.edu/community/economicdevelopment/
� http://www.uwex.edu/ces/cced/downtowns/index.cfm
� http://localecon.osu.edu/BRnE/