Tuesday, November 24, 2009

Shoppers: Be Responsible. Downtown Retailers: Be Worthy

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

We’re coming up on one of the most sacred holidays in the retail world…Black Friday. Shopping centers everywhere will be swarming with deal hunters. I’d like to take just a minute to say something to both shoppers and downtown retailers before the blitz of holiday shopping begins: Shoppers, be responsible. Downtown retailers, be worthy. What do I mean by this? This is what I mean…

Shoppers, before you put on the eye black and shoulder pads for some full contact shopping, take a few minutes to think about the impact your purchases will have. I don’t mean on the recipients. I mean on your community. Do you want your holiday gift to take your money out of your community, or be reinvested in it? Last year, Local First of Grand Rapids did a study on the impact of spending money locally and made some pretty startling discoveries. Chief among them, there is a major difference between buying an item at a chain store or buying the same item at a locally owned one. For every $100 spent, $30 more stayed in the community when it was purchased at a locally owned store.

How is that possible? Well, locally owned stores have owners that live…wait for it…locally. Locally owned businesses tend to hire other locally owned businesses for services that corporate chains hire other corporate entities elsewhere to do. Add to that the profits that would be shipped to corporate headquarters in New York or California stay in your community instead and are spent elsewhere in your community supporting other local businesses, charities, and paying taxes.  

Downtown Retailers, while everything I wrote above is true, do NOT take that as a license to slack off. You have the moral high ground; don’t give up that ground by not taking full advantage of your strengths.

Back in college during my very first marketing class, I learned the acronym, USP, or unique selling proposition. In short, your USP is what makes you different than the competition. Downtown retailers have been getting smarter and smarter about their USP and using their environment to their advantage. They are realizing that by offering a unique experience with superior service in a one-of-a-kind location they can compete for customers on a front where the competition can’t.

This advantage is multiplied when downtown retailers join forces to cross promote each other. The advantage is amplified again if downtown retailers use the built in nostalgia that their environment has during the holiday season. Currier and Ives never painted a holiday picture of people in sleeping bags camping in front of the Buy More waiting to purchase the latest installment of “Shoot ‘Em Up 3.” I’m pretty sure Norman Rockwell
didn’t either. 

By creating a warm, welcoming, customer-centric environment, downtown retailers can offer the epitome of the traditional holiday shopping experience. (CAUTION: retailers and their supporting Main Street organizations have to have the experience to back it up. As I posted after last holiday season, nothing can do more harm to your district’s image than over promising and under delivering.)

Downtown retailers can offer simple, low cost ways to increase the “warm and fuzzies” of the shopping experience. Free gift wrapping, hot cocoa, and great customer service are just a few ways. Don’t stop there, your downtown district could gather volunteers to carol, or have your own downtown Santa. In short, provide an environment, the products, and the experience that make you worthy to spend the money on.

Have a great Holiday season!

Tuesday, November 17, 2009

Time to be Thankful

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

It’s hard to believe that Thanksgiving and the holiday season is only a week away. It seems that as I get older, time seems to pass quicker every year. Which means, the hours in a day are even more precious than what they were before and, I seem to find myself being spread relatively thin. I’m a firm believer that this is the case with most people today. So, when you find a good volunteer, it is important to let them know that you are thankful for their dedication and hard work. With Main Street being volunteer-driven, it is vital that volunteers are thanked on a regular basis – and not just from the Main Street manager. Of course the Main Street manager is thankful for the volunteers; they reduce the number of hours the manager has to put in ever day. However, it is important that the thanks come from more than just one mouth.

Generally, volunteers should be thanked in three ways: personally, publicly and in a written format. Of the three, personally is the easiest. It certainly doesn’t take much time or effort to walk up to someone on and simply say “thank you for taking the time to help.” Despite this, I’m amazed at how often people forget this simple task and how many volunteers are lost because they don’t feel their time and efforts are appreciated. Be sure to not just say thank you when they arrive and when they leave, but while a volunteer is in the midst of volunteering. Often, when someone is arriving or departing, they are in the midst of some confusion. Be sure to say thank you at a time when it will be remembered and not just expected.

Second, recognize people in writing. A simple, hand-written, thank you note goes a long way. You don’t need to do this for every person every time they volunteer, but this should be done at least once a year and especially when a volunteer takes on a particularly trying task. Another simple way to recognize a large group of volunteers in a written format is to utilize technology and do a group email thank you. Many programs will even take your database and personalize the blanket email with an individual’s name. This is often best done after a large festival or clean-up event when a large group of people are volunteering for a relatively short period of time. However, don’t forget to include that hand-written thank you at some point. This is also a great way to promote the program as many people save those thank you notes, pinning them to bulletin boards or sticking them to the fridge.

Finally, be sure to say thank you in a public manner. This helps to achieve a number of things, including showing that your Main Street program has a diverse pool of volunteers, the sheer number of volunteers required to man a Main Street program, as well as making your volunteers feel special and needed. You can publically say thank you in a variety of ways, the most common being an annual volunteer dinner or awards ceremony. Choose the volunteer who went above and beyond and name them the “volunteer of the year” or choose a more committee-oriented path like “design committee member of the year.” You could also go another route and make the awards more specific like “most likely to be seen planting a flower” or “most likely to be seen supporting the local bakery.” Another simple public recognition method is an article in your Main Street newsletter or on the website. The point is, let a large group of people know that you appreciate your volunteers.

Last but not least, don’t forget to say thanks to your Main Street manager and their family, as the Main Street manager is typically the programs biggest volunteer. You can generally find them working evenings, weekends and holidays to make the Main Street district a wonderful destination.

So, in this season of reflection, thank you for all that you do to make Michigan Main Street communities a better place!

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.