FAQ

The founding members of this team are important for establishing the enthusiasm, momentum, professionalism and organization that will be needed.  They need to be problem solvers and advocates for downtowns.  This team and the recruitment process need effective and enthusiastic leadership to stay on track and be organized.  Funding and in-kind services will be important to this committee.

Select the Team

To begin the recruitment process, a proactive business recruitment team needs to be assembled.  This team should bring a clear and realistic understanding of the market analysis, have skills in economic development and real estate along with connections to local decision-makers, and have an ability to sell and follow through.  Training for the team may be necessary.  A team of five to seven participants could include:

• Established (and retired) business owners;

• Local real estate professionals;

• Current building owners who are interested in exploring various uses for their property;

• Bankers;

• Local entrepreneurship and development organization representatives;

• Elected officials; 

• Chamber of commerce and visitor bureau directors, Homeowner Association Board Members and their Managers; and

• Community Publication and Newspapers.

The team will help serve as a management entity for recruitment efforts, focusing on those properties and areas that are critical for the economic success of the business district.  Through the process, the team will coordinate efforts with local real estate professionals.  A strong leader is necessary to maintain momentum of the team.

Before beginning a business recruitment effort, it is important to understand its objectives.  Unlike other business district efforts, ours is centered upon one property under common ownership.  The space opportunities are known and proven winners.  For most districts, the effort should help:

• maintain and develop the district as a mixed-use, multi-purpose center; and

• strengthen the businesses and the business mix to enable the district to compete successfully in the market.

The purpose of the effort should also articulate a clear market position statement for the district that characterizes the type of retail mix, business opportunities, the shopping environment, and the target customer market.  The statement distinguishes your district from surrounding shopping districts.  Often, a community’s market position statement will serve as background for identifying the types of businesses that could be recruited.

Draft a Work Plan

The first step for this group is to develop an initial work plan. All work plan action steps should be listed and prioritized.  Sample work plan components might include the following:

• gather data about the community from the market analysis;

• inventory the real estate in the various business districts, particularly the vacant or underutilized buildings;

• survey the business situation by looking at the present businesses and why they are working, who are the “anchor” tenants, as well as the previous failures or relocations;

• meet with the property owners of these buildings to garner their support in the process;

• outline all incentives for business development, create a simple sales package; and

• develop your prospect list, etc.

Realistic timeframes need to be assigned to every step.  The right team member(s) need to be assigned to every step (match skills to tasks).  Most importantly, involve the broader community in your work and seek assistance, ideas and contacts through the process.  This work plan should be reviewed, updated and modified as needed.

This requires using the information on a community’s targeted retail categories as well as where business in these categories should be physically placed.  Compare these categories with available real estate.  Ideal businesses will blend with and enhance existing businesses, utilize the available vacant space wisely, create synergy and offer unique merchandise or style.  It may be useful to first list your vacancies on paper.  Identify the vacancies and acknowledge their size and relationships to other businesses.

Opportunities that are supported by the Market Analysis

To explore business categories with high potential for success, market analysis findings could be summarized in a format similar to the following:

Prepare a Worksheet Summarizing Opportunities Identified in Market Analysis, the opinions detailed and supported through the "lenses" of all technques of evaluation in study efforts:

• Focus Group Results

• Consumer Survey

• Business Owner Survey

• Business Mix Analysis

• Demographic Analysis

• Surplus/leakage  Study

Creating a Business Wish List

A wish list of potential businesses should be developed by the team. These potential businesses should complement and strengthen the existing businesses and reflect the market position statement. Realistic annual recruitment goals (number and type of businesses) should be set.

To identify appropriate business candidates (retail, service, restaurant, etc.) for your community, first analyze your list of market opportunities (see preceding example). Those categories that make market sense are then analyzed to make sure they fit into the niche, space utilization (specifically clustering) and marketing (specifically target market) recommendations.

Use the following criteria in finalizing your wish list:

• Is there appropriate space in the district for this type of business?

• Will it complement existing businesses?

• Will it serve targeted market segments?

• Does it fill an important gap in the business mix?

• Will the business strengthen an existing cluster of businesses?

• Was this business category identified as important in local consumer research?

• Does market demand and supply data support the need for this types of business?

• Does the business fit it with the market position and vision statements?

Volunteering along side and not in competion with ownership's team, the community team’s next mission is to find appropriate businesses that might be interested in a site in your market area or need new space to expand.

Sources of Leads

Leads can be broken down into four general categories:

Existing Businesses within or near the business district – Often the best leads are found near home. Leads might include existing businesses seeking more space or a better location in the business district. Owner ongoing conversations and personal contacts of the recruitment team, chamber of commerce and other economic development professionals can help identify these leads.

Emerging Entrepreneurs – Downtowns and business districts are often attractive to independent businesses. Accordingly, leads might include home-based or garage-based businesses seeking more fitting space and a convenient location for their customers. These leads might include managers of existing businesses wishing to go into business on their own. Commercial lenders, business schools, Small Business Development Center (SBDC) counselors, Main Street program business specialists, Service Corps of Retired Executives (SCORE), chamber of commerce and other public or private small business professionals should be asked to help identify these leads.  See toolbox section on entrepreneurship.

Existing Local or Regional Businesses – Local or regional businesses, particularly those that have branch stores and are ready to expand, are often excellent prospects. These business operators typically have a good knowledge of the market area, and may already have multiple stores. They are often interested in expansion as a way to improve their penetration of the market. These leads can be identified through your team’s knowledge of the business mix in other communities in the region and information collected from your local consumer research. In addition, realtors, commercial brokers, sales representatives and supplies that work within the region can be helpful.  Sometimes ads in regional business, real estate and regional lifestyle periodicals can generate leads.

National Chains – If local or regional businesses are not interested in expanding, larger national chains can be contacted. It is important to be realistic about the kinds of chains that might be interested in a small community as their market, store size and parking requirements may preclude them from considering your district. Leads can be identified through directories and private databases listing chain site selection criteria and contacts. In addition, leads can also come from commercial brokers, trade shows, “deal making forums,” and conferences such as those offered by International Franchise Association or the International Council of Shopping Centers.

Ensuring a Good Fit

Once leads have been identified, a retail assessment checklist can be developed to ensure quality standards for prospects and to make sure the business would fit the market. The checklist could be completed by a team member on a reconnaissance visit to the business.  It might include:

• Business category (type);

• Target markets;

• Businesses’ location requirements;

• Image;

• Inventory and selection;

• Pricing;

• Presentation;

• Exterior appearance;

• Interior décor, lighting and fixtures;

• Service; and

• Traffic generated.

Without doubt, letter writing will be our focus on this Gold River effort.  The final and ultimate responsibility for this material is the owner group.

Attractive recruitment and marketing materials should be developed to convey the market potential of the business center.  Business recruitment materials must help convince a business operator that your site is unique and that it offers a competitive edge over other locations.

General Marketing Materials

Market analysis data already collected earlier in your study will help potential business operators evaluate the potential for their venture. When developing marketing materials, provide only relevant information to avoid information overload.  Consider the following:

• Letter of introduction including compelling reasons to consider your district;

• General information and photos of the community highlighting its assets;

• Market position and vision statements;

• Wish list of new businesses supported by market demand and supply data;

• Information on past openings and closings of businesses;

• Trade area geographic definition and demographic and lifestyle data;

• Trade area economic data including actual and potential sales data if available;

• Nonresident consumer data (including daytime population, employment and recreational visitation);

• Descriptions of target market segments served;

• Major employers and institutions;

• Vehicle and pedestrian traffic volume;

• Mix of existing retail, service, dining, housing, office and lodging in the district;

• Press coverage and testimonials highlighting success stories;

• Promotional calendar; and

• Summary of financial incentives and other business assistance services available in the business district.

Assemble Maps

Graphs and maps are particularly effective ways to describe the region, the local area, retail competition, and development trends. For the business district and trade area, include:

• Current district vacancy map;

• Business mix and clustering map displaying information on all district buildings;

• Major employers, institutions and points of interest map of area;

• Traffic volume map;

• Trade area maps defined by customer origin and drive-times; and

• Consumer spending demand and supply or surplus/leakage maps.

When targeting retail prospects, remember that not all retailers have the same requirements. A grocery store typically requires a different market than a general merchandise store. Communities should customize information to fit the needs of the particular prospect.

Building/Site Specific Materials

In addition to market data, information on specific buildings may also be useful. Secure the cooperation of the building owners and the real estate brokers if the property is listed for sale or lease. This information might include:

• Maps and photos describing the location, building and it history;

• Complementary businesses/clusters nearby;

• Sales and rent per square foot (with comparison market data);

• Available commercial and residential space and floor plan;

• Operating expenses including utility rates and taxes;

• Zoning and building code conditions or restrictions;

• Current tenants and how the building could be optimally reused; and

• Property owner or other contact for more information.

When completed, recruitment and marketing materials should be assembled in an attractive packet and possibly offered online. Quality content, graphics and formatting are required to support your community profile and image. Develop a simple sales package that is interesting, informative, honest and current, one that describes your community as a good place to do business.