Download - Goal of Economic Restructuring - mdf.orgmdf.org/documents/12-4MDCI-EPCG.pdf · Economic Restructuring Goal of ER Know Your Market —Market Analysis Business Retention--Break Business

Maine Downtown Center

Downtown Business Recruitment and Retention

Presented by Eaton Peabody Consulting Group

12/7/2009

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Maine Downtown Center Institute

December 4, 2009

Augusta, Maine

Presented by:

Noreen G. Norton and John P. Holden

Eaton Peabody Consulting Group


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


Eaton Peabody Consulting Group

To improve the economic condition of the commercial district by:

�Identifying new market opportunities,

�Supporting businesses, and

�Stimulating investment.


Goal of Economic Restructuring




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� Healthier downtown business mix

� Increased business activity, rents, property values, and investor confidence

� Market based rents and property values


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)


What ER success looks like


How Economic Restructuring Works

Know Your Market

Business Retention

Business Expansion

Business Attraction


Starting Smart…

Know Your Market

Asset AnalysisMarket Analysis

What Exists….

� Building inventory

� Business inventory

� Demographic and economic data

� Regulatory constraints

� Financing resources




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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


Business Visitation in Downtown

� Residents

� Shopping patterns

� Income

� Number in units

� Where they work

� What they buy and where

� What they want in DT


Questions to Ask

� Business

� Type of business matters

� Customers

� Product mix

� Costs of business

� Competitors

� What all will say


Questions to Ask




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� Visitation (survey) methods

� Focus groups

� Confidentiality

� Who should ask


How to Ask

� Research first

� Use of existing space (current business)

� Residential


Space Inventory

What data to collect:

� How much space?

� How is it used?

� Vacant or underutilized?

� Condition…renovation needed?

� Ownership


Building Inventory

� Don’t over-promise

� Referrals and follow up with referrals

� Data and information – for market analysis


Business Visitation Outcomes




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� Many techniques

� Different for each sector

� Housing

� Retail

� Professional (office)


Market Analysis

� Housing

� Stock, conditions

� Rental rates

� Ownership v. rentals


Market Analysis

� Retail

� Trade Area Analysis

� Many types

� Simple to complex –samples

� Variety (mix) of products, stores


Market Analysis

� What is the “nature of the community”.....

� …..of the downtown

� …..in relation to nearby places

� …..in relation to the larger “market”


Market Analysis – Human Factor




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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



� 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



� 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


Organize




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An effective positioning statement identifies:

• Realistic opportunities for the district;

• Primary markets and trade areas; and the desired mix

• General markets and/or niches


Positioning Statement


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


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”)


The goal is to find opportunities to strengthen and grow existing businesses

Waterville DT Properties

Heart of Biddeford brochure.pdf




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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


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


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


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





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Educate Businesses

� Through surveys find out what help they need

� Nominal cost to attend

� Partner -- SBDC, Chamber, Universities….

� Invite non-downtowners


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.


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


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


Business Attraction




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� Target market

� Use business visitation, market analysis

� What type of firms are expanding

� What types ‘fit’ into your downtown

� Get leads - how



� Business case for your downtown

� Economic return

� Why expand or relocate in your downtown?

� Testimonials

� Incentives



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


� Incentives

� Downtown TIF

� RLF

� Private investors

� ???






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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


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


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.


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





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� Don’t forget to expand your own

� Or seek local entrepreneur and provide incentive, training



� How to do it

� Visits

� Networks (from within town)

� Materials



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


� Be prepared

� Costs – time is money

� Costs - materials

� Timely – patience

� Approaches (who)






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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…


Guiding Principals for Success

� Focus

� Persistence

� Tools

� Communication and Collaboration


FocusYou can’t do everything at once…

…prioritize and then stay the course


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





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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/