Economic Restructuring Defined Part III

By Dace Koenigsknecht, 
Economic Restructuring Specialist
Michigan Main Street Center
Michigan State Housing Development Authority
 
Ah, I can hear the groans from the readership, ‘another dry monologue from that ER fool’. Yes, and No. While this post is intended to be dry like only the best wine, it’s still from that ER guy from Michigan. The philosophy below is part of the holistic reason Michigan's Main Street communities continue to fare better in this recession than their neighbors, despite our state's economic struggles.

Business Assistance
This section could easily be several posts long, but I am going to keep it to just this one (can I get an Amen?!).

After studying the economics behind a Main Street district (previous ER Defined I & II blogs), it’s time to use the data to generate measurable results. There are many ways to measure success, but one of the most important is the financial success of the district. I like to say that it’s hard to have a Central Business District (CBD) without the Business. If you’re like most non-Main Street communities, now is the time when you blurt out ‘we need to recruit more businesses’. All in due time my friends…

I deliberately entitle this section Business Assistance, for it includes Retention, Expansion, and Recruitment. The order here is very important, as this is the tricycle of a successful business district. Retention is the front wheel, in a sense guiding the efforts (rear wheels) of Expansion and Recruitment. The effort of any local Main Street program should be focused on this lead wheel. The economic vision for the district stems from the existing, healthy business mix, which leads to successful expansions and complimentary recruitments.

I talk a lot within ER about building foundations to ensure future success, and this is no exception. The ER Committee is charged with the constant task of diagnosing business problems within the district, and then making every effort to resolve them – whether themselves, through partnerships, or hiring professional assistance. Happy business owners are THE key result. This is relevant in two ways: first, a successful business owner wants to expand in the supportive environment that enabled initial success (ie. Expansion); second, a successful business owner will cheerfully advocate the district to potential entrepreneurs (ie. Recruitment).

To put it another way: opening shop is much like buying a house. I find an attractive area with a cute little house and a white picket fence, what then? I talk to the neighbors to get the scoop, to answer my questions, and to address my concerns. Likewise, a potential entrepreneur is going to find an attractive district (physical and economic), and will talk to the retailers and service providers ‘in the neighborhood’ to get the scoop. What are your business owners saying about your district? Do they feel wanted and supported? Or do they feel like they’re adrift at sea, left to their own cunning to survive?

The common theme: Business Assistance is ALL about relationship building. I wrote in a previous blog that the days of isolated entrepreneurship are gone, and the inherent grassroots aspect of Main Street is the perfect forum to facilitate and build a ‘business community’. I’ve heard time-and-again how business owners in the same district were introduced to each other, and their respective stores, for the first time through Main Street. Their sphere of influence and support just went from four walls to the four points of the compass. 

As social animals we are genetically wired to bond socially, with a desire to help and to feel part of something bigger. Members of a local MS business community find real value – to themselves, their neighbors, and their city – to get involved rather than cloister themselves behind the sales counter. Everyone can, and should be given the opportunity, to contribute positively to the world around them. We all have a talent or interest that a neighbor may find of infinite value…especially in times of unrivaled economic stress.

As a wise man once said, “United we stand, divided we fall.”

As always, feel free to add your thoughts regarding this topic below…