John Newby: Communities should discover their distinctive area of interest | News

We have all known businesses that failed. They had big dreams, a great work ethic and small budgets. They hadn’t budgeted marketing and hoped word-of-mouth would spur business growth. They hoped great customer service would set them apart. They hoped the affordable, out-of-the-way location would still attract customers. They had the passion and hoped hard work and a great attitude would overcome the expected obstacles normally encountered. In short, they had far too many hopes, poor planning and lack of community support.

When the dust settled, they learned through the school of hard knocks that hope really makes a poor business strategy. It takes far more than hope, hard work and perseverance to succeed.

While every community with a truly local mindset will try to support local business, it isn’t only the community’s job to ensure new businesses succeed. Many businesses lack many of the skills and funds needed before they even get started. That said, it is in a community’s best interest to provide a winning business climate and support networks that increase the odds of success for new or expanding business owners.

Expanding and forward-thinking communities understand this. What are the best practices communities can employ to further create an innovative and entrepreneurial mindset throughout their community?

First, and foremost, create a hyperlocal state of mind throughout the community. Forward-thinking communities have embraced this concept from the top down. They would never consider a government purchase outside of the boundaries of their community before exploring all local options. Every tax dollar kept local benefits the city many times over.

Second, they create networks that support local business development. The more individual the local business community is, the more it conveys the vibrancy needed to foster further growth. While we all want large employers or manufacturers to come to town, the reality is that communities can have equal results one new local business at a time. Ten new businesses with five employees opening each year will equal one 250-employee business moving to town every five years. Additionally, local businesses need fewer tax breaks, fewer amenities and are more active in the community.

Third, communities can work with businesses to meet some local demands not currently filled by local businesses. Helping to support local steakhouses, entertainment and various retail services are great starts. Not every business idea makes sense for every community, and knowing the kinds of businesses needed can be helpful as you seek to expand your community. Often, community leaders court national chains with their track record of success to fill their needs. Doing this comes at the expense of your local entrepreneurs able to fulfill those needs with a little push and assistance to meet those same demands. Local restaurants, entertainment and retail with a unique flavor always draw better than chains.

Last, we’ve mentioned on more than one occasion developing a tourist mentality is critical. Most communities can attract tourists through events or destination marketing. Communities must view each new tourist as $1,000 walking into your community to spend money now. View each hundred tourists as $100,000 walking into your community. Communities need not be New York, Chicago, Branson or a spring training site of Major League Baseball to draw tourism. Today, tourists are staying closer to home seeking unique attractions, unique events, unique downtowns, unique retail experiences. Find your niche, build upon it and then let the world know.

John Newby, of Pineville, is author of the “Building Main Street, Not Wall Street” column dedicated to helping communities combine synergies with local media companies allowing them to not just survive but to thrive. His email is john@360mediaalliance.net.