Tuesday, November 10, 2009

Contingency Planning- It's Not Just for Other People

By Dace Koenigsknecht
Economic Restructuring Specialist
Michigan Main Street Center
Michigan State Housing Development Authority


I digress in this blog, away from my series on defining Economic Restructuring to a subject both overdue and yet timely.  Equating, for a moment, that a continuity plan is to small-business like a will is to my life, then this is a subject I know all too well.  With each life event the conversation arose; from marriage and the birth of kids, to cancer and numerous ‘young’ deaths this year.  Yet…the will has not been written.

Much is the case, I imagine, for small-business owners and managers everywhere; I’ll think about it once I get the doors open, or I don’t have the money right now to worry about that, or whatever.  Why wait until the soaked sandbags prevent you from opening the doors or a fire takes the inventory you were going to sell to customers?  Now is the time to start thinking about the welfare of your family, your employees, and your business.

I have purposely refrained from referring to this topic as disaster planning, as that name may be part of the problem.  A disaster always happens to someone else, in a town not-here, and to people that should have been more prepared.  A disaster…just seems so big and unlikely…like the negative side of winning the lottery. 

However, we all know that Mother Nature is unpredictable; rivers will rise past the 100-year plain, tornadoes will erase towns from the map, and cancer will take bread-winners from our midst.  She not only works in the macro, with large storms that can be physically rebuilt after, but she also works in the micro – viruses, bacteria, molds, cancers.  The silent ‘disasters’ that cannot be seen coming on the horizon…or can they?

I mentioned above that this post was overdue, mainly due to the large scale natural disasters of the past few years – an increase in hurricanes, floods, tornadoes and the like.  However, it’s also timely in that we are mid-wave in the swine flu flood, awaiting an early crest of illness in a to-be-long flu season.  Before this, you recall, avian flu scared the eastern world but left us relatively untouched, reinforcing the idea that it only happens elsewhere.  If this current ‘pandemic’ is anything, it should be a wakeup to small-business to be prepared.

* Are you ready for you or your employees, or any of your families, to be sick enough that the doors might not open for a day – or several?

* What will the lost income do to your business and those that rely upon it?

* Do you, and your key employees, have the proper medical insurance?  …Lost-income insurance? ...Insurance to cover inventory spoilage?

* Do you even know who your key employees are? 

* What are your vital business operations, and can they be done offsite?  How will payroll continue?

* Who are your critical suppliers and customers?  Do they have continuity plans?

As a small-business owner/manager, or even an employee of one, it is important to identify the staff, materials, procedures and equipment that are absolutely necessary to keep the business operating.  Much of this preparation will cost nothing but time, and you have a lot more of that right now than you will in the midst of a crisis.  See www.ready.gov for lots of free information on continuity planning – both personal and small-business.

As for me, I’m off to download will templates…

Wednesday, November 4, 2009

A Love Letter to Marshall, Michigan

Editor's Note: We are very fortunate to have the 2009 Michigan Main Street Manager of the Year, Marshall's Diane Larkin, as our guest blogger this week. When given the opportunity to say anything to the Main Street universe, Diane's post (we named the post) can most aptly be described as a genuine love letter to her community. Enjoy!

By Diane Larkin
Main Street Manager
Marshall Main Street
Marshall, MI

As I pondered what words of wisdom I would share to inspire or impress you….or since this might well be the only time I am ever invited to blog for Michigan Main Street….what is most important to say…..I read back through past blogs for ideas and inspiration.  Travis, my counterpart in Manistee, be encouraged.  I have now been in Marshall for over three years and am still considered “new” to the community.  I figure you have at least another two years to use that “new to the area” excuse!

So, with a deadline looming, I decided to share my experience of finding a new home – in a most unexpected place – when I began an adventure as a Main Street Manager in October, 2006.

Marshall, Michigan, is located at the crossroads of I-94 and I-69 in south-central Michigan and serves as the county seat for Calhoun CountyMarshall is a charming little city with a population of 7,200 – give or take – and a wonderfully intact array of nineteenth century architecture.  Once slated to be the capitol of Michigan, we have Capitol Hill School and a Governor’s Mansion where no governor ever lived.  We are home to the oldest continuously-operating fairgrounds in Michigan, the second largest National Landmark District in the country (small urban category), and more historical markers (per capita) than anyone else. One of my favorite local celebrities – Hans Schuler – fondly calls Marshall “the crossroads of the Big 10.”  He appears to be correct, as on any given Saturday during football season you will find Big Ten fans trekking past Marshall as they traverse I-94 or I-69, heading to stadiums in Ann Arbor or East Lansing, Indiana, Wisconsin, Illinois, Ohio, Pennsylvania or Minnesota.

However interesting, these facts and figures are not what drew me to Marshall three years ago.  In fact, when I ventured to this far-from-home region of Michigan for a job interview, I had to actually dig out a map to locate where Marshall was…exactly.  My previous fifty years of travel had taken me speeding across I-94 on my way to Chicago…or flying past Exit 36 on I-69 as I headed to Fort Wayne or Indianapolis…but never wandering off the expressways and into town.  A job posting for this interesting-sounding position of “Main Street Manager” caught my attention – and I was ready for a change – so I dug out my map and plotted a course to check out this little burg.

As I drove into Marshall for the first time I was awestruck by the stately mansions with impeccable landscaping that line North Kalamazoo Avenue.  Entering downtown I was captivated by the beauty of the fountain circle – and having navigated roundabouts while driving in Europe, I was able to take in the beauty of the fountain, flanked by graceful trees and welcoming park benches.  Driving down Michigan Avenue I was impressed by the architecture and interesting array of stores and restaurants.  A downtown with a hardware store?  And a gas station?!  And a bakery?!?!  And wait – a Rexall Drug Store!?!!  This must surely be the inspiration for Norman Rockwell’s depictions of life in America, and I felt transported back to the days of my youth.

As I continued to explore downtown Marshall, I couldn’t help but notice an occasional faded facade, a few errant weeds in the sidewalk, and some peeling paint.  This town wasn’t all just pretty planters and brick sidewalks.  It had a slightly gritty edge that made me feel it was real and well-used and loved…much like the Velveteen Rabbit, who found that sometimes becoming real means losing some of your fur and newness.  I felt this might just be a place where I could start the next adventure in my life and find a true sense of community with real people.

Three years into my new life in Marshall I still marvel at the simple beauty of colored maple leaves against the glistening white of the newly restored Brooks Fountain, set against the backdrop of a brilliant blue sky.  I am impressed with the passion of our people….people who are like family and might disagree on politics (and disagree passionately!) but band together to meet community needs –  be it fundraising for new textbooks, collecting food for the hungry, or raising $250,000 needed to restore the iconic Brooks Fountain (raised by our GIFT Committee – an amazing group of passionate volunteers who accomplished this feat in less than nine months in a “tough economy”).

I have often said I prefer passion to apathy any day, and in Marshall I have found it!  People with a passion for historic preservation, civic pride, selfless serving, creativity and a wonderful spirit of hospitality.  In just three short years I find myself “more at home” in this little community, than where I had lived for the previous thirty years.

Imagine a town that turns out to celebrate the Fourth of July – complete with decorated bicycles and a pet parade, a community band playing Sousa marches, blankets spread on the park grass with families gathering and children laughing, and barbequing chicken to feed a thousand.  Imagine a Blues Festival on a Saturday in July where 7,000 folks bring lawn chairs and sit on Main Street to enjoy barbeque and blues…and “celebrate community.”  Or a Christmas parade – with Brownie troops decorated like wrapped-up presents, Cub Scouts like elves, high schools bands, decorated floats and Santa Claus coming to town!

Ah…Christmas season.  No other place I know celebrates Christmas quite like Marshall.  With fresh evergreens strung across Michigan Avenue, thousands of twinkling holiday lights, big red bows and holly, carolers greeting shoppers, hot cocoa and mulled cider served with cookies, wonderful retails stores with unique gifts for everyone and anyone on your list, and the dancing eyes of children waiting to talk to Santa.

The Christmas holiday season just might be the best time to visit Marshall.  From the Christmas Parade on November 30 to Christmas Candle Walk to Tea at the Governor’s Mansion to holiday music at the Franke Center to Retail Open House, to visiting Santa at The Toy Barn and all the wonderful, magical holiday moments in between, I invite you to venture off I-69 or I-94 and discover the magic of what real holiday shopping can be like in an authentic downtown like Marshall Main Street.  And while you’re here, you might want to help Schuler’s celebrate their 100th year as a family-owned restaurant…or try a “world famous Louie’s nut roll”…..or stay at the historic National House Inn…or try a national award-winning Dark Horse Brew….or visit one of our eleven museums…or….just come explore and discover the real experience waiting for you in my new home town – Marshall.

Note:  For a complete calendar of events, go to www.marshallmi.org

Wednesday, October 28, 2009

Big Box Stores and the Inevitable Guilt that Consumes Me

Editor's Note: This week's entry is a re-post from Sean Mann's recent contribution to letssavemichigan.com on the importance of shopping local. To see the original version (including photos), click here.

By Sean Mann

Alright, so I shop at the big box stores. Who doesn’t? They are modern marvels of consumerism where at any point of the day you can buy hummus, valve caps for your tires, an ottoman, live gold fish and a $3.99 sack of underwear. They’re amazing, although not nearly as amazing as the restraint of the checkout clerk who passes judgment but says nothing to me and my fellow retail urchins. Thankfully, most of these stores have converted to self-checkout lanes so I don’t have to make that awkward visceral connection with the checkout clerk and then feel compelled to explain why I needed to make the aforementioned purchases at 11:30 pm on a Tuesday night.

Obviously, I’m not alone when it comes to shopping at Wal-Mart, Meijer, Lowes, Target, or any of the other retail mega-stores. Americans are going to these big box national chain stores increasingly. They are even expanding here in Michigan during our historic recession, with Wal-Mart adding 13 stores in the coming year and ALDI adding another seven to Michigan’s chain retail potpourri. And the same could be said for chain restaurants, like Buffalo Wild Wings and so on.

It makes sense. The big box stores and chain restaurants offer convenience, merchandise at low prices, and familiar, generally non-threatening settings (excluding Long John Silver’s, obviously). But at what cost to our community and the things we value?

Of course the Big-Marts and PT O’Shenanigans employ people, and some may even offer decent wages and benefits, but what do they really give back to the community?  That question regularly crosses my mind as I pull up to a Box Store.  By the time I’ve traversed the football field of a parking lot, I can’t help but have a certain sense of guilt set in. Not because of the purchase I’m about to make, I swear I really did need that ceramic dog umbrella holder, but because I know the impact that the box stores have on my community and neighbors.

Locally owned businesses are the heart and soul of our communities. They fill up our Main Street storefronts, bring diversity in merchandise and experiences, and make our city distinguishable from the city at the next highway interchange.

But the argument for frequenting locally owned businesses over national chains goes beyond simple emotions and aesthetics, there’s a sound economic reason to do it.

 ·         A 2008 study in Grand Rapids estimated that $1 million spent at chain restaurants produces about $600,000 in additional local economic activity and supports 10 jobs. Spending $1 million at local restaurants, meanwhile, generates over $900,000 in added local economic activity and supports 15 jobs.

·         A recent study in San Francisco found that every $1 million spent at local bookstores creates $321,000 in additional economic activity in the area, including $119,000 in wages paid to local employees. That same $1 million spent at chain bookstores generates only $188,000 in local economic activity, including $71,000 in local wages.

·         Locally owned businesses employ an array of supporting services. They hire architects, designers, cabinet shops, sign makers, and contractors for construction. Local accountants, insurance brokers, computer consultants, attorneys, and  advertising agencies help run it. Local retailers and distributors also carry a higher percentage of locally produced goods than chains, meaning more jobs for local producers. In contrast, a new chain store typically is a clone of other units, eliminates the need for local planning, and uses a minimum of local goods and services.

·         Even though the chain stores boast of creating hundreds of new jobs with each new store, numerous studies indicate they actually displace as many jobs as they create.

·         Furthermore, the retail pie new chain stores are tapping into doesn’t tend to grow because of their arrival. One study found that 84 percent of Wal-Mart’s sales simply shifted dollars away from existing local (including some chains) retailers.

I can’t tell you, without reeking of hypocrisy, to abandon going to nationally owned businesses. They are too ingrained in our lives, and in certain cases offer things that local stores cannot. All I would suggest is examining how you spend your money and see in what ways you could spend your money as wisely as possible to support local businesses. 

The most striking finding of the 2008 study of Grand Rapids and surrounding Kent County, was that if residents were to redirect just 10 percent of their total spending from chains to locally owned businesses, the result would be $140 million in new economic activity for the region, including 1,600 new jobs and $53 million in additional payroll. Shopping at the local store on Main Street is not about being anti-Wal-Mart, and goes beyond conservative or liberal labels, it’s about supporting your neighbors and maintaining the character of the community you chose to live in.

I honestly don’t think I’m saying anything too controversial here. Just think. If I asked you to name your favorite restaurant or store where you have the best experiences, I would wager easy money that your favorite establishment is locally owned. So support them and their brethren as frequently as you can.

Tuesday, October 20, 2009

Don't Stop Fundraising Now!

Last week, the National Trust for Historic Preservation held its annual conference in Nashville, Tennessee. As a part of the many sessions was one entitled, “Don’t Stop Fundraising Now!” The session featured the National Trust’s David Cooper, Vice President of Resources Development. While the presentation was geared toward traditional historic preservation entities, there is a lot of applicability for Main Streets. Below are David’s top bullets for fundraising. 

By David Cooper
Vice President of Resources Development
The National Trust for Historic Preservation

- Focus on “warm prospects.”

- Thank donors.

- Keep close ties to donors and shore up relationships with grantmakers.

- Look for ways to save money on fundraising, especially with events.

- Don’t treat giving as a financial transaction.

- Be creative: matching gifts, collaborations, etc.

- Be concrete in making the case for giving.  Don’t rely on your organization’s reputation.

- Be as gracious when donors say “NO” as when they say “YES.”  Preserve the relationship.

- Focus on people who lapsed last year.  Donors are very hard to get back after two years of not giving.

- Consider focusing on the economic development case for preservation.

- Emphasize the good a gift will achieve, not bad things that will happen if donors don’t give.

- Begin planning for future fundraising efforts now.  Think long-term.

- Scale back ambitious campaigns, but don’t give up on them.

We hope these tips help. We are thankful to David for allowing us to blatantly repackage his presentation.

Tuesday, October 13, 2009

The Buy Main Street Story

Editor's Note: Two weeks ago, the Michigan Main Street Center @ MSHDA released the "Buy Main Street" video. The response nationwide has been astounding. Last week, STARS Director Joe Borgstrom was asked to write a guest blog for the National Trust for Historic Preservation's website, PreservationNation.org. Below is his blog. 

By Joe Borgstrom, Director
Specialized Technical Assistance
& Revitalization Strategy Division
Michigan State Housing Development Authority

In all honesty, it started with a conversation at the 2009 National Main Streets Conference between me, Arkansas’ Cary Tyson, and Ohio’s Jeff Siegler (directors of their state’s respective Main Street programs). We were talking about the need for somebody to do a video that told people, in a light-hearted way, about the importance of supporting Main Street districts. We didn’t want to hit people over the head with it, but simply wanted to remind people of the many reasons to shop their local Main Streets. The conversation ended there and we all went about the rest of the conference.

A week or two later, I came across a video entitled Built to Last. It promotes some of the ideas from the Charter of New Urbanism. It’s hip and funny and it had a tremendous run on social media. As of this writing, the video has well over 70,000 hits on YouTube. I thought to myself, “This is exactly what we should do.” I fired off the link to the video to Cary and Jeff. Both agreed this was in the vein we were talking about.

Within a few days, I sat down with our Promotions, Arts & Culture Specialist Jodie Willobee, MSHDA’s communications manager, and several members of our marketing firm (a FANTASTIC group named Pace & Partners), to have our first project meeting. I’m not entirely sure what the folks from Pace & Partners first thoughts about this project were, but I’m pretty sure it was something along the lines of: “These people are nuts.”

We must have gone through a dozen creative ideas in a matter of a half hour. Finally, the folks from Pace were able to corral us into thinking through what were the most important points we wanted to talk about. We came to one central theme. If people wanted to save their Main Streets, they had to support them financially. The team from Pace were given the task of coming up with a creative concept around that with one caveat: Whatever the creative pitches they were going to make, we didn’t want to people to feel like they’d been beaten into submission by a “Thou Shall Buy Local” edict. We wanted to inform and inspire, not lecture.
A few weeks later, the team from Pace came back to pitch ideas. They gave us three options. The one we all collectively liked the best was the concept aptly named, “Open.” The concept was simple. Tell the story through various “We’re Open” signs. The script was written brilliantly by Pace & Partners’ namesake, Dennis Pace. Though he, Jodie, and I went round and round about some tone and specific words, Dennis’ flair for writing is one of the things that makes this video so powerful.

One of the things we wanted to do in this video was to feature all the great communities that were a part of the Michigan Main Street program. Unfortunately, we didn’t have the budget that would’ve afforded ALL of our communities to be involved due to the time and distance between all of them. We narrowed down the candidates to the four Main Street downtowns that we filmed: Marshall, Howell, Niles, and Lansing’s Old Town.

We sent our crews out to film and take pictures of these communities, the businesses, residents, and other things about them that make them great Main Streets. All of the Main Street managers were fantastic in lining up folks for shots. Marshall’s Diane Larkin even pulled people into stores who were walking by. Niles’ Lisa Croteau appears in the video as the “Come on In” lady. They were all invaluable to the process.

Last, but certainly not least, the production crew and staff of Pace & Partners and Such Video put a whole lot of time in on the project. Notably, Christina Jackson, Rob Wesson, and our irrepressible account manager Debbie Horak, who had the unenviable task of trying to herd the cats as we all wanted to go in our own creative directions.

The story of this video is not over though. Pace & Partners, recognizing the situation many of our Main Street coordinating and local programs are in, asked our permission to use our video as the basis to create a more generic version (at their cost) to share with ALL Main Street communities. At last word, this video is two weeks away from release. We hope people are impacted by the video. We hope it makes people think a bit differently about how and where they spend their money, what it means to the local economy, and that it helps them to make a choice to Buy Main Street.

Tuesday, October 6, 2009

Economic Restructuring Defined (Part II)

By Dace Koenigsknecht
Economic Restructuring Specialist
Michigan Main Street Center
Michigan State Housing Development Authority

As promised, this blog continues defining the amorphous cloud of Economic Restructuring. Below I will finish describing the first cog in the wheel, Downtown Monitoring, by detailing what’s involved in Monitoring & Reporting Current Economic Performance. 

Downtown Monitoring

A brief recap: Downtown Monitoring is simply understanding and constantly evaluating the economic health of the commercial district. The Baseline Assessment, described in my previous blog, has been completed, and the current condition of the district has been documented. What now? 

Monitor & Report Current Economic Performance: Utilizing the Baseline Assessment as the foundation, constant evaluation of the district’s business climate allows for identification of changes in the district - whether positive or negative. For example, answers are sought for the following questions: ‘What businesses and/or retail activities are most successful?’, or ‘What customers do we attract?’

      Tour the District. Often times, during our everyday business in the commercial district, we’re not really paying attention to our surroundings. Take time to walk around and look at the downtown with fresh eyes. While the Main Street Design committee deals directly with the exterior of the building, the Economic Restructuring committee is concerned with the interior space and its occupants. 
          Occupied Space: Look at how the space is utilized, whether: efficient or haphazard, inviting or sterile, well merchandised or cluttered, etc. Overall, is the space being used profitably?
          Unoccupied Space: NOT to be seen as a liability, but rather as an opportunity. Healthy commercial districts need some vacant space for new or expanding businesses, however the goal being only minor turnover. Is the unoccupied space move-in ready or require construction? Why did the previous tenant/owner leave the space? And, most importantly, are there potential businesses that could use this space?

     Inventory Existing Buildings. While the MS Design committee is the lead for this project, the ER committee will be assisting with data collection and entry. It is necessary for the building inventory to be kept up-to-date so the information is on hand to share with potential investors (business or property) - being organized assists your community’s sales pitch.
          Collect all relevant information: on vacant spaces and/or businesses for sale within the commercial district. Then, be ready and willing to share that information when inquiries come in. Be proactive at advertising the opportunity when there is not a confidentiality issue – be sensitive to owner needs.

     Gather Primary Information. An interactive survey process by which answers to the following questions (among many) are sought:
          - Identify groups of businesses that appear to be doing well, and not so well – what are their issues and roadblocks?
          - Identify types of customers who currently shop in the district, and the desired ones that do not frequent local businesses – why and what can the district do differently to attract them?

     Detailed Business Information. Based on the primary data collected above, all relevant business information needs to be maintained in a database for easy maintenance and reporting. While information like store hours and product mix is important, the crucial answer lies in Technical Assistance – find out what issues these people have so that proper training or incentives can be provided in the future.

     Identify Business Clusters. Simply stated, a technique for leveraging your existing or potential niches by spatially arranging them to generate the most foot traffic, and to positively impact sales. A lesson to be learned from mall management where anchor businesses are located with smaller attractions in between. Ideally, complementary businesses are located next door to each other. For example, hair salons next to dress shops. The ladies visit next door while waiting for their stylist to finish the previous appointment.
Clustering requires more education of property owners; as working to spatially arrange the businesses may benefit the district as a whole more than them personally – at least in the short run.

      Provide Information & Data to Everyone. And I mean everyone: from existing businesses that can use the data for merchandise & inventory alignment (or expansion!) to potential businesses and property owners, and from developers and public officials to customers and the general public. That last group should not be overlooked, as nothing spreads faster than word-of-mouth - whether good or bad - so make positive use of it. Besides, you never know who-knows-who.

Why do all this work? The goal is for targeted recruitment (or expansion) based on the district’s unique business mix and market. It’s about doing homework before legwork. It’s all about setting the stage for success.

Feel free to add your thoughts regarding this topic below.

Tuesday, September 29, 2009

The Joy of Work Plans

By Jamie Schriner-Hooper
Organization Specialist
Michigan State Housing Development Authority

It’s that time of year. Kids are heading back to school, clubs are starting and Michigan Main Street Communities are starting to make plans for their upcoming years. Just like a teacher puts together a syllabus, strong communities have a plan for their Main Street program.

One of the strong tenants of Main Street is that it is a grassroots driven program. The community decides what is best for the community, with a little guidance from a few key national and state Main Street professionals. In order to keep things organized and steer away from a room full of people who just talk about what should be done, the Michigan Main Street program helps communities to put together work plans – essentially their syllabus for the year’s projects. These include a well thought out list of each step involved in a project; a budget and timeline for each step; the specific person assigned and any notes that may be necessary. Once the project is finished, volunteers add the actual budget and project evaluation.

Now, those of you who may be hyper-organized may find the thought of putting together long lists and budgets to be great fun. (Side note, if any Main Street communities know of people like this, grab them and become their friend!) Though the word “organization” is in my title, the thought of work planning makes my mouth go dry and the rest of me sweat. I tend to be a bit of a fly-by-the-seat-of-my-pants gal, which is exactly the reason work plans exist. If you have a committee full of these types of people, you’ll get things done, but they certainly won’t be in the order that you would ideally like them and, you’ll likely end up with a few people carrying the entire workload. This is a great way to burn out volunteers, staff and those close to them. How we at the Michigan Main Street Center define that is a “staff-driven program.” That is, work is getting done, but only a few people know the steps, the proper contact people and what was learned from the prior year. Though you may have some great and visible achievements, this is extremely hard to sustain.

Main Street is grassroots and volunteer driven. I know that I’ve already said this, but it is so important. Without a specific plan, it makes it really hard to recruit and retain good volunteers, which is what the program is all about. If you can give a volunteer an exact list of the tasks you’d like for them to complete, along with an estimated timeline, you both know what they are signing up for. Once they’ve started to work on a project, they can be a part of the work planning process the following year and hopefully become a life-long Main Street volunteer.

So, long story short, don’t panic and throw tomatoes when Michigan Main Street staff come into town to do work plan training. We’re here to help! We’ll be there right along with you for the painful work planning process. But once you have a finalized work plan, you’ll be in for smooth sailing for the rest of the year.