Business Retention is Business Recruitment!

So how many new businesses opened in your downtown this year?  Often, this is the only number used to gauge the success of a business recruitment program.   I believe that there are a lot of things behind that magic number, not the least of which is business retention.  You can recruit new businesses all day long, but if you are not stabilizing those businesses all you are really doing is creating a revolving door effect which certainly doesn't help the overall perception or image of your district.  So how do you retain businesses? 

Let me state for the record that I am not suggesting that you are solely responsible for their success, but you can't just cut the ribbon with the big scissors and wish them luck.  There is a middle ground between hand-holding and hands-off and it should have three elements - communication, partnerships and education.

You need to establish an open line of communication or open door policy with your businesses.  Make sure that they know that you are available to them anytime.  How do you communicate this?  You have to be out there, visiting the stores.  Let this be the first step in forming these relationships.  You know the signs when a business is in trouble - limited hours, lack of participation, elimination of advertising, no new merchandise, etc.  Be aware of what's happening so you can respond to businesses at risk immediately. 

While your relationships with your businesses are a great tool, it's even more important to encourage partnerships with fellow merchants.  They can become a source of mentoring, a confidant or even an opportunity to share customers through special events and cross-promotions.  Being an independent business owner doesn't have to mean that they are on their own.  Small businesses locate in downtowns because they want to be a part of a community.  It is that community - both the businesses and residents - that will help them succeed.

I'm a big fan of teaching people how to fish.  Sure, it might be easier and quicker to do it for them, but then what have they really learned?  You're not always going to be there, looking over their shoulder (nor should you).  In addition to including quick-hit marketing tips in our monthly Merchant Forum meetings, we also offer a quarterly Speaker Series.  The series is a more intense, workshop-style seminar.  Topics are selected based on merchant input and key topics in the marketplace. 

Six years ago, we added an aggressive business retention element to our business recruitment program and in the last few years, we have started to reap the rewards.  This year, we are on track to open over 30 businesses and should finish the year with a 96% retail occupancy rate. Even more exciting, 10 of our existing businesses have expanded, relocating to larger spaces within the downtown.   It doesn't take a big budget, just a consistent, long-term strategy that is focused on both recruitment and retention.

By integrating communication, partnerships and education into your business retention efforts, you can execute a comprehensive approach that will foster a business-friendly environment in which small businesses can thrive. And that's just another selling point in your business recruitment pitch!

Kristi
The Downtown Geek

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