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Tools to Strengthen and Retain Downtown Businesses
By Doyle G. Hyett and Dolores P. Palma
HyettPalma, Inc.
Making Downtown Renaissance a Reality
Communities across the country are placing renewed emphasis
on strengthening their Downtowns. And, a high priority item in most of
these efforts is to strengthen and retain Downtown’s current businesses.
Local elected officials and Downtown leaders have found that a number
of tools are helpful — and necessary — for these business retention
efforts to succeed. A sampling of effective tools is shown below.
Market Analysis
A realistic, professional analysis of Downtown’s retail and office
potential is needed in every Downtown. The market analysis should quantify
Downtown’s potential as a location for specific types of retail and office
businesses — and define economic niches which can be created in Downtown.
Having this information allows all of Downtown’s business owners to understand
what Downtown’s unique economic “theme” can and should be. And,
this information should be used to help business owners better serve the
marketplace.
One-On-Ones
Throughout the nation, the most successful business retention
technique is “one-on-one counseling.” Widely used in Downtowns
and other types of commercial developments — such as shopping malls and
retail strip centers — it involves offering individual business owners
the opportunity to meet privately — and on an on-going basis, if they’d
like — with someone who can advise them on how to grow their business.
The goal of the counseling should be to
give Downtown’s existing business owners the first chance to take advantage
of the opportunities identified in the market analysis.
The topics usually covered in the counseling sessions include how business
owners can create a unique niche that allows them to successfully attract
additional customers; appropriate ways of improving and maintaining the
building in which the business is located; and techniques the business
owner might use to more effectively market the business.
In-Store Diversification
Based on the market analysis, Downtown business owners can consider
strengthening their business through diversification — experimenting
with new products within the walls of their existing businesses. Owners
can accomplish this by allotting a small percentage of their “buy
budget” for buying new lines/products when they go to market. Care
should be taken, however, to ensure that the new items are of the types
recommended in the market analysis and that their customer appeal is tracked.
Business Hours
Downtown business hours must be “customer-driven” rather
than owner-driven. This means Downtown businesses must be open when customers
want to — and do — shop rather than the hours owners want to work. The
market analysis will help identify Downtown’s potential customer groups.
With this information, business owners can determine the best customer-driven
hours for their business. Often, owners find they can keep “smarter”
hours instead of longer hours, often by shifting hours — i.e., opening
later in the mornings and being open later into the evenings.
Window Shopping
Many Downtown business owners have discovered an easy, inexpensive
way to lure customers to their businesses — keeping their display window
lights on long into the night. This encourages pedestrian strolling, window
shopping — and pedestrians return during business hours as customers.
By keeping their lights on until at least 11 PM, business owners realize
an increase in customer traffic and the whole Downtown is made to feel
festive and safer at night.
Service
The most successful Downtown business owners nationwide have
found that customer service is extremely important in growing their businesses.
Regardless of type, every Downtown business must offer superb and memorable
service to each and every patron. This is a low-cost/high-reward tool
for developing a loyal customer base. Because it is so important, Chambers
of Commerce and Downtown organizations often offer customer service seminars
for Downtown business owners and their front-line employees.
Municipal Services
While many of the tools shown above entail self-help by business
owners, municipalities also play a strong role in a Downtown’s ability
to keep and grow its existing businesses. Specifically, local government
must do those things which only it can do well — keep Downtown’s public
improvements attractive and well-maintained; keep public spaces clean;
ensure Downtown is safe; and be pro-business and pro-quality in working
with Downtown business owners, property owners, and investors.
About the Authors
Doyle G. Hyett and Dolores P. Palma are
the founders of Hyett Palma, Inc., the only national consulting firm specializing
in the economic renaissance of Downtowns. For more information about HyettPalma,
please visit www.hyettpalma.com.
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