The Art of Attracting Businesses

The same things happen in every downtown during the first quarter of the year - packing up all the holiday cheer, planning for your next event season and watching some of your businesses close their doors.  In my experience, this is the most "popular" time of year for businesses to make that fateful decision.  In truth, many make that decision the year prior, but go through one last holiday season to either give it one last try or to make as much money as possible before they throw in the towel.  Any business closing is sad, but it also has to be looked at as an opportunity.  Whenever a space becomes available, this is your time to forge a relationship with that property owner (if you don't already have one) and to find a business that fills a gap in your downtown business mix. Even if your occupancy rate is high, you should always be on the look out for new businesses so you can build a strong prospect list.

How Do You Know What Fits?

Take a look around.  As a manager, you should have your finger on the pulse of what your community needs.  Who is your primary customer?  Look for businesses that will give your customers another reason to come downtown.  You always want to be cautious to protect your existing businesses.  The goal should always be to enhance the existing mix.  Be careful of looking for businesses that are "on trend" right now.  As quickly as they are the new hotness, they will be forgotten and out of business.

So Where Do You Find Them?

I'm not a big fan of cold calling.  It's rarely effective, and just plain awkward.  I prefer the personal approach so I like to visit other downtowns and shopping centers. I don't walk around with a stack of brochures, passing them out to any merchant who will take them. I visit businesses, usually ones that I have done research on first.  I walk the floor, assess the merchandise and try to picture how it would go in our downtown.  If I like what I see, I introduce myself to the manager and inquire if they would ever consider opening a second location.  Never, ever ask a business to move from their downtown to yours. I had another Main Street Manager try that in my town once.  Let's just say, it wasn't pretty.


To Packet Or Not To Packet?

I'm sure everyone has an opinion, so here's mine.  It's tempting to want that pretty four-color folder with printable inserts like all the big developers do.  Don't waste your money.  I did once and after an incredibly painful committee process, we finally printed a packet.  It was very attractive, but in the long run the use did not justify the cost.  What we did find useful was creating an organizational brochure that focused on what we as an organization do and how we can help businesses.  It has many uses beyond business recruitment and is easily updated.  Your sales pitch should go beyond demographics, and focus on why your community would embrace and support that business.

So where is the best place to find a new business?  As Dorothy once said, "If I ever go looking for my heart's desire again, I won't look any further than my own backyard".  You might be surprised how many of your downtown businesses are thinking of expanding or spinning off a separate brand.  As they say, it's easier to keep an existing business than to find a new one, so make sure you keep your businesses in the loop when new opportunities become available.  Business recruitment is an unpredictable combination of timing and pure luck.  But if you're in the right place at the right time, you never know how much it can benefit your downtown!

Kristi
The Downtown Geek