Rethinking the rules. Reworking the formula. Knocking down walls. Finding new paths.
Memorial Day serves to remind us of the privileges we enjoy in our great country. The opportunities awaiting us are without number, and the possibilities are limitless. Yet it seems to be human nature that when blessings are plentiful, we oftentimes take these things for granted and end up wasting opportunities to take steps that would have had a positive effect on our communities.
For example, most of us enjoy shopping at local stores and eating at our local restaurants, but most chambers of commerce find the need to continue to urge residents in their areas to shop locally. A Main Street Association study showed that $100 spent with a locally-owned independent business resulted in the retention of $45 in that community, compared to only $14 retained in a community as a result of $100 spent with a corporate business, such as Wal-Mart. The communities in which we live are our homes, the owners of our local stores and restaurants are our neighbors, and these establishments are important to our local economies. Why, then, would we need a reminder to support our communities?
The Asset Development Division of Mississippi Development Authority (MDA) can help communities support and grow their local retail presence with a Pull Factor Report. A Pull Factor Report is an analysis of local sales tax revenues that help identify opportunities for retail growth, as well as areas where sales revenues are “leaking” to other communities, with residents going elsewhere to make purchases. An annual review of the pull factors in your community will help you track progress made as a result of efforts to encourage local spending and retail growth.
TenantSearch is another tool recently purchased by MDA to help communities support and grow their local economies. This tool contains a compiled listing of chain businesses that are expanding around the country, the demographics each chain business requires and the contact information for each business. Building capacity to attract more people to your town through the recruitment of chain retailers and restaurants can also help local independent businesses in your area if you plan your recruiting efforts strategically.
Franchise businesses offer an attractive blend of independent and corporate business. A franchised business is owned by an independent owner who has the support of a corporate office. Corporate support for franchises can include a good business plan and a successful business model, and some franchise organizations even offer financing. According to Buxton, a leading customer analysis company, a franchise business has an 80 percent survival rate compared to a rate of only 20 to 30 percent for independent start-ups.
Big box retail stores generate sales tax income for communities, create local jobs, and usually are valued corporate citizens. Every choice made in life has advantages and disadvantages associated with it, and the same holds true regarding the types of retail businesses your community wants to attract or expand.
Regardless, having more information readily available allows communities to make more informed decisions. The Pull Factor Reports and the TenantSearch program allow community leaders to access valuable information regarding their current retail climate and future opportunities.
In America and in Mississippi, we are offered so many opportunities that it is easy to take them for granted, but informed decisions and strategic plans can generate real value and positive change within our local communities.
I hope you had a happy Memorial Day and that a positive and productive summer awaits you!
