Shop Local 2022

How consumers can help small businesses

million small businesses in the United States

Small businesses continue to be the backbone of the North American business community. According to the career resource Zippia, there are 33.2 million small businesses in the United States. Those organiza tions employ around 62 million people.

Despite the prevalence of small businesses and the abundance of people willing to become entrepreneurs, 20% of these firms fail within the first year, and only 55% survive five years or more, says Zippia. The Covid-19 pandemic was particularly harsh on small businesses. However, many of them survived through digitization that they plan to continue to utilize even when the pandemic is long gone.

Maintaining a small business through economic highs and lows and other issues often comes down to customer involvement. Consumers are the driving forces behind the success of small businesses. Here are some effective ways for consumers to help small businesses grow.

• Shop local. The “Shop Local” movement has been around for awhile but remains as relevant as ever. Shopping local means becom ing repeat patrons at the indepen dent businesses that comprise Main Street as opposed to the chain stores that dominate strip malls.

• Share on social. Social media can be a great way to spread the word about businesses you like and point out particular examples why you shop there. Utilizing social media platforms to highlight the positive attributes of a business can help that business grow.

• Call direct for take-out orders. Those ubiquitous third-party food delivery services may be convenient, but businesses have to share the profit from your purchase with the delivery service, cutting into their bottom lines. Pick up your order or rely on the restaurants’ own delivery teams.

• Engage with the business online. Complicated algorithms and other factors determine how a business’ website or social media page gets seen by the public. You can help things along by liking pages, visiting the website fre quently and sharing any posts.

• Speak about a business in person. When out and about, whether you’re dining with friends or chatting with a stranger, try to push and recommend businesses you support. If someone compliments your lawn, shoes or haircut, mention the businesses that did the work or sold you the products.

• Suggest opportunities for exposure. If you know about a school or organization looking for vendors, make the suggestion to a small business you use frequently. They may get new customers from participating in the event.

Small businesses are driving forces in the economy. Consumers can do their part to keep them thriving and profitable.

reasons to shop small versus big box

The importance of small busi nesses to the economy cannot be overstated. Though national chains often garner publicity, local businesses are equally, if not exceed ingly, worthy of attention.

What defines a small business as “small” varies significantly, but these businesses are generally privately owned and generate far less revenue than big corporations. General consensus also defines small businesses as companies with fewer than 500 paid employees, according to the U.S. Small Business Administration.

Here’s a deep look at why small businesses are so vital, and why consumers should direct more of their

purchasing power to smaller compa nies rather than the big box retailers and other national chains.

1. Autonomy and diversity

The layout and offerings at national chains will be identical whether you live in the mountains or at the beach. Big box stores follow a consistent marketing strategy and look the same regardless of where they are located. That familiarity can come at the cost of variety. On the other hand, an independent business offers the products and services that are reflective of the customers and the community they serve.

2. Local hiring strategy

Certain big box retailers will hire

local residents, but hiring policies may push for promoting from within the organization. This could mean relocating an employee rather than bringing in someone from the commu nity who may be more in tune with local sensibilities. Small businesses may be more inclined to hire residents they know and keep hiring centralized to the local area – something that keeps more resources and money in the community.

3. Adaptability and change

Local businesses can move more quickly to respond to economic factors that require change. Since they are focused more on the needs of their customers rather than stockholders, changes can be implemented rapidly without having to go through red tape, meetings and updates to corporate policies. Changes also can be custom ized to the local community at large.

4. Investing in the town

According to the financial resource Financial Slot, shopping at locally

owned businesses rather than big box retailers keeps more money in the community. Local property taxes and other taxes paid by the busi nesses go right back into the commu nity. This helps raise overall value for homeowners and can even reduce their taxes. The funding helps keep police, fire and school departments functioning properly.

5. Turnover is greater

While no one wants to see a small business fail, that fate is sometimes unavoidable. However, that turnover helps teach communities what was done poorly and helps others learn from those mistakes. It also means fresh businesses will come in and replace the old, driving new growth, opportunity and competition that keeps prices competitive.

The benefits of a thriving small business sector are numerous. Con sumers can do their part by patronizing these firms more frequently.

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3 fun event ideas that can benefit local businesses

METRO SERVICES

The shop local movement is a worthy endeavor. A thriving Main Street can foster a sense of community, encourage entrepreneurs young and old to pursue their dreams and expose residents to a host of new ideas and products. But the benefits of a strong local business sector don’t end there. In fact, communities have much to gain economically from promoting Main Street.

Though the numbers vary from year to year, a recent report from the U.S. Small Business Administration indicated that, for every $100 a consumer spends at a small business, $48 remains in the community where that business is

located. By contrast, just $14 out of every $100 remains in the community when that money is spent at a big-box store or national retailer.

With so much to gain from a thriving local business scene, community leaders and residents can plan and embrace events that showcase the many small businesses that make their towns and cities unique. There are many ways to promote local businesses, and the following are three creative event ideas to get locals and non-locals alike excited about the businesses that offer so much to your community.

• Shop local at night: Many commu nities participate in restaurant weeks that draw scores of visitors to the cafes and eateries in their town. A similar approach

can be employed to bring people to Main Street for something other than food. A shop local at night event can feature special discounts during a time of year when business might otherwise be slow. Community organizers can close Main Street to vehicle traffic throughout the week to encourage people to walk around and visit all the small businesses in their communities.

• Holiday festivals: Holiday bazaars may be most often associated with the holiday season that runs from Thanks giving weekend to New Year’s Day. But there’s no reason why communities cannot plan and promote similar festivals during other popular holidays, such as Memorial Day, Independence Day and Labor Day. A Valentine’s Day festival the

week before the holiday can encourage locals to get out and shop for that special someone, while a Halloween festival can encourage people to spend time out doors patronizing local businesses during a time of year when the weather is welcoming for all.

• Workshop week: Workshop weeks can be great ways for local businesses to inspire interest in their offerings while showcasing the many talented individuals who help them thrive. Each night can feature a different workshop hosted by local businesses. For example, a Monday night restaurant workshop can feature chefs from local restaurants teaching locals how to prepare a certain dish. Another night during the week can feature local artisans offering lessons on the basics of their skills, such as wood working, framing or gardening. Such an event is a great way for local businesses to put a face on their companies and meet locals who appreciate their talents.

There’s no shortage of ways to promote local businesses. Special events in which local businesses are the star is a great way to inspire locals to support the companies that help make their communities unique.

How communities can work together to revitalize Main Street

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No community stays the same forever. Despite the sense of familiarity individuals may feel when visiting their hometown, those communities have undoubtedly under gone significant changes over the years.

Over the first two decades of the 21st century, small towns have been forced to confront an assortment of changes and challenges, including the Covid-19 pandemic. Main Street is what makes most towns unique, and many communi ties recognize how vital a thriving local business scene is to the survival of their towns and cities. As public health advocates and politicians increasingly declare that the pandemic is nearing its end, communities can work together and

take these steps to revitalize Main Street.

• Recognize there’s no magic formula. When attempting to revitalize a community business district, it’s impor tant that elected officials, business owners and residents recognize that what worked for one town or city will not necessarily work for their town. This is an important recognition, as it underscores the benefits of listening to everyone’s ideas and considering new approaches, even if they don’t have a proven track record.

• Identify what makes your community unique. Each community has its own unique assets, and case studies conducted the U.S. Environmental Protection Agency have found that identifying these assets offer the best

opportunities for growth. For example, a community with a rich history can make that history a focal point of their revital ization efforts. If a community is located on a lake or another body of water, revitalization efforts can be focused on capitalizing on the allure of waterfront dining and entertainment.

• Make it easy for investors. Revitalization efforts require investment. Towns and cities that have seen better days may not generate the level of tax revenue necessary to finance revitalization efforts, necessitating outside investment. It may require walking a tightrope, but local officials can explain strategies to encourage outside inves tors to residents and current business owners in their communities. These strategies may involve offering new incentives to investors, but residents and business owners may be more likely to support such measures if they’re kept

enabled towns and cities that success fully revitalized to leverage the assets that each party brought to the table and make the most of local resources. By emphasizing the many benefits of a collective effort, local officials can reassure residents and business owners that they aren’t just paying lip service but putting a community’s willingness to work together to use in service of everyone.

Successful efforts to revitalize Main Street have often been found in commu nities that have worked together to identify their assets and sought input from residents, business owners and even outside investors.

5

tips to consider before starting a start-up

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Building a small business from scratch can be an exciting endeavor that poses some significant challenges. With the right resources and support, entrepreneurs can turn their dreams into successful businesses.

According to Innovation Science and Economic Develop ment Canada, there were 1.2 million small businesses in Canada in 2019. Add that to the roughly 33 million small businesses in the United States, and it’s clear to see how small businesses dominate the economic landscape.

The Small Business Administration identifies small businesses as those having fewer than 500 employees, while the Government of Canada lists SMEs (small and medium-sized enterprises) as small (having 1 to 99 paid employees) or medium (100 to 499 paid employees).

The process of starting a small business varies depend ing on the industry, location and other factors, but here’s a generalized look at the steps to be expected early on.

1. Figure out your idea and research it

Coming up with a successful idea is one of the first steps to take when starting a business. It’s possible to take an existing type of business and customize it for a given community, or to create something new and innovative. After the idea is put on paper, it’s important to research the potential competition and decide if the business will have a competitive advantage to survive. Market research is crucial.

2. Write a business plan

A business plan helps formalize the ideas of the business and lists the necessary steps to take. By thinking through the process methodi cally, a potential business owner can figure out where problems may turn up and where to devote the most attention to help make the business profitable. It also helps if one thinks through how he or she will secure the capital for starting the company.

3. Choose the right time

Prospective business owners need to assess whether the time is right for starting a business. While there may never be a perfect time, it’s best to engage when there are fewer obstacles in the way. You want to devote full attention to the business. If that’s not possible, then it’s likely best to delay. Times when starting a business may not be ideal include when battling an illness, during a family move or right after the death of a loved one. Economic factors beyond your control, such as a downturn or recession, also may affect the potential success of a business venture.

4. Pick a business structure

Involving a business attorney in this process would be in a person’s best interests. A business can be legally structured in certain ways, and how it is structured will affect registration requirements as well has how much a business owner pays in taxes. The structure also can affect personal liability. Speaking with a lawyer will highlight the pros and cons of structuring and help a person make the best decision possible.

5. Speak to other business owners

A potential entrepreneur can pick the brains of small business owners to figure out what worked and what didn’t when they were first starting out. This can help entrepreneurs avoid certain pitfalls and uncover proven paths to success.

Starting a business can be a worthwhile undertaking, especially when entrepreneurs consider a variety of factors before getting started.

How entrepreneurs can approach funding their businesses

METRO SERVICES

Successful entrepreneurs often say that few, if any, professional endeavors are as rewarding as starting a business and ultimately seeing it become profitable. The journey from start-up to profitable business is long, and it starts even before many companies open their doors. Funding is a significant factor when starting a new business. In fact, the U.S. Small Business Administration notes that choices regarding how to fund a business are among the most important decisions business owners make. Funding a start-up can seem like a daunting task, but the SBA offers the following tips to help entrepre neurs get their busi nesses off the ground.

• Determine your needs. Entrepreneurs should not begin to seek funding until they've first determined just how much money they will need. These costs will be different for every business, and calculating them requires a detailed analysis of your start-up expenses (i.e., office space, insurance, equipment, licenses and permits, etc.).

• Determine your own contributions. Startups will not necessarily require outside funding. Many entrepreneurs dip into their personal funds to help get their businesses up and running. This, too, requires careful consideration, especially for entrepreneurs who already have significant financial obligations, such as a family, a mortgage or even another business. The SBA notes that self-funding entrepreneurs may use money from their savings and even retirement accounts, though some may be unwilling to do so. While self-funding entrepreneurs take on all the risk, this approach affords them the chance to maintain complete control over the business. Deciding if reducing risk or maintaining complete control is more important is part of determining if the business will be self-funded.

• Consider raising funds through venture capital firms. The SBA notes that venture capital

firms typically focus on high-growth companies, so this might not even be a consideration for entrepre neurs starting small businesses that they hope to keep small. If venture capital is an option, entrepre neurs must recognize that venture capital is not a loan, but rather money offered in exchange for an ownership stake in the company. That stake comes with decision-making rights, which means entrepreneurs will not have full control or owner ship of the company.

• Seek a small business loan. Unlike venture capital, small business loans are primarily designed for entrepreneurs who do not expect their businesses to become high-growth compa nies, at least not anytime in the near future. Banks and credit unions issue small business loans, but entrepreneurs who want to secure them must provide detailed business plans, expense sheets and financial projections for the years ahead. The more detailed these plans are, the more entrepre neurs will know what to ask for and the more likely the lender is to approve a loan.

Entrepreneurs can raise funding in various ways. Choosing the best option requires careful consideration of a host of factors.

6 obstacles small businesses often face

METRO SERVICES

Rewarding but tough may be the general consensus established entrepreneurs use to describe owning a small business. When working for someone else, individuals primarily only need to concern themselves with their own role in the company. When a person owns a company, the weight of that responsibility rests primarily and exclusively on his or her shoulders.

Regardless of their industries, small business owners often encounter similar obstacles. A greater awareness of such obstacles can help entrepreneurs ride the waves and be better prepared.

1. Client diversity: Putting all of your eggs in one basket can be an issue when running a business. An obstacle some businesses face is relying too

heavily on the support and financial contributions of one client. Diversifying a customer base is the key to growing and maintaining a business.

2. Financial management: Some people are ideas people, some people are customer service people, and others are money people. Everyone handles these tasks differently. Properly managing the finances of a small business is essential to keeping it running smoothly. If it's possible to hire an accountant or bookkeeper knowl edgeable in finance, all the better. However, software can assist novices with keeping the books in check.

3. Burnout: Small business owners often take on extra hours and responsi bilities to see their companies grow. Also, owners may not bring on adequate staff in an effort to save money or ensure their

YEAR MAKE

vision is adhered to. A lack of help can lead to fatigue and burnout. Trying to go it alone is one of the biggest mistakes an entrepreneur can make.

4. Overdependence on a founder: The business needs to be able to run smoothly even when the founder or owner isn't on the premises. If the owner becomes ill or takes an extended vacation, operations need to flow. If the company is dependent solely on the owner being around day in and day out, it can staunch potential.

5. Quality and growth balance: Every small business wants to grow and continue to see profits rise. However,

when growth starts to impede on the quality of the service or product, it may not be so beneficial. Business owners need to strike the right balance between expansion and quality.

6. Customer service: Business owners have to devote the right resources to maintaining optimal cus tomer service. A happy customer often is a returning customer. Failure to address negative reviews or compromised service will make it harder to succeed.

Small business owners can learn about the common obstacles entrepreneurs face and then devote resources to avoiding them.

FIREPLACE THE HEART OF

Small businesses have adapted to

key consumer demand

METRO SERVICES

Convenience might be the first word to come to mind if consumers are asked why they rely so heavily on big-box retailers. Such retailers can offer a variety of products their smaller counterparts may not be able to match, and subsequently deliver those products with a speed that the average momand-pop operation cannot possibly keep up with. But the tide in regard to online buying is shifting, as surveys show a growing satisfaction with small business' online offerings. A 2021 survey commissioned by the digital marketing platform Sendinblue found that 58% of consum ers in the United States prefer the online shopping experience with small businesses over their larger counterparts due to the former's ability to provide a more personalized and customized online shopping experience. In addition, 53% of consumers surveyed indicated they preferred online shopping with small businesses because they felt they received superior customer service with these firms when compared to larger online retailers.

Did you know?

METRO SERVICES

Consumers who want to help the local businesses in their community succeed and attract more customers should know that the overall star rating a business has on online review sites such as Google and Yelp can go a long way toward compelling prospective customers to patronize a business. In their Local Consumer Review Survey 2022, the marketing experts at BrightLocal found that 85% of consumers indicated overall average star rating was an "important" or "very important" factor in determining whether or not they would patronize a business. That star rating can be especially valuable when consumers are trying to choose which business to support, as 76% of survey respondents indicated their decisions would be influenced if one business had a higher average star rating than another they were considering. Consumers can consider these findings as they decide which site to utilize when they decide to write a review.

Questions to ask when soliciting customer feedback

• How did you hear about us?

• Did we meet your expectations?

• Was the staff helpful?

• How could staff be more helpful?

ating them from

of firms reported a

in revenue after implementing strategies to improve the customer experience.

to improve the customer experience, business owners must first recognize what their customers want. Soliciting feedback from

can help business owners identify what their customers want. Thanks to email, social media and online services like Google Reviews,

• What was the most enjoyable part of your experience with our business?

• What do you most enjoy about our products or services?

• Did you shop online or in store or both?

• How can we improve your in store or online shopping experience?

• Are you likely to recommend us to friends and family?

• What would you change about your experience?

it’s now easier than ever for busi nesses to solicit and identify cus tomer needs. In addition to asking patrons to review their experiences online, business owners can ask the following questions to improve experiences for their customers. These questions are straightfor ward and can be answered in a matter of minutes, but honest feedback from customers can be incredibly valuable to business owners. Feedback also can be valuable for customers, especially when they feel their voices have been heard. In fact, a recent report from Apptentive, who specialize in customer feedback services, indicated that 97% of customers are somewhat likely to exhibit brand loyalty to a company that implements their feedback.

How to make a review as beneficial as possible for local businesses

METRO SERVICES

Patronizing a business and thanking its staff on your way out can help business owners and their employees feel good about the work they're doing. Though such gestures will never go out of style, customers can do even more to help the small businesses in their communities.

Since the internet became such a vital part of life, online reviews have become increasingly important for small businesses. According to BrightLocal's Local Consumer Review Survey 2022, 78% of consumers use the internet more than once a week to learn about local businesses. What's more, the survey found that a whopping 99% of consumers have used the internet to find information about a local business in the last year.

The BrightLocal survey also found that positive reviews can be especially beneficial to local businesses. Consumers indicated that written reviews describing a positive experience and reviews with a high star rating were

the most significant review factors to make them feel positively about a local business.

The value of positive reviews for local businesses in undeniable. Con sumers who want to help the small businesses in their communities can consider these tips to ensure their reviews prove as beneficial as possible for local businesses.

• Go to the right place. A review is only helpful if it's seen. The BrightLocal survey found that, in 2021, Google (81%), Yelp (53%) and Facebook (48%) were the three most utilized sites or apps to evaluate local businesses. The popularity of Google and Yelp in particular grew considerably between 2020 and 2021, suggesting that con sumers can do the most good by leaving positive reviews on one or both of these sites.

• Recognize that recency matters BrightLocal notes that the number of consumers willing to trust reviews left as long as year ago is on the rise. However, consumers who have already reviewed a company in the distant past

should know that only 7% of consumers feel that recency of review does not affect their decision. Consumers who really to want to help a local business they've already reviewed can leave a new review if their previous one was posted more than a year ago.

• Leave a review even if the business already has plenty. The value of recent reviews has already been noted, but it's equally important to point out how valuable the volume of reviews can be. The BrightLocal survey found that 39% of consumers indicated a business having more reviews than another business they're considering is one of a handful of deciding factors when they must choose which firm to patronize. So even if a business already has lots of positive reviews, one more positive review can still prove beneficial.

Consumers can tailor their online reviews so they're as beneficial as possible for the local businesses that help their communities thrive.

consumers use the internet more than once a week to learn about local businesses

Pay it forward: Local businesses can help each other

of small businesses is immense. However, starting a small business is no easy venture. The financial resource

states that roughly 22% of small businesses will fail in their first year of operation. Thirty percent fail

they run out of cash. One of the ways a small business can do better is to utilize the support of other local businesses.

Business owners often conduct market research to identify who their competition is and to determine if there is room in the market for their products or services. It's just as important for established business owners to keep up with the who's who in the business community, as doing so can pave the way for collaborative efforts that benefit all local businesses. Here are some ways small business owners can support one another.

• Offer reassurance: Simply knowing they are not alone can help a small business owner survive. Owning a business can be stressful, and having another person acknowledge that it's alright to feel overwhelmed at times can be the spark owners need to press on.

• Share opportunities: A business owner who discovers a resource or an opportunity that worked for him or her, or even one that didn't work but may for another, can pass on the information to another small business owner. It's not about driving others down, but lifting them up.

• Cross-promotion: Business owners can show support by promot ing other businesses in their communi ties. Make a bulletin board (either in-person or online) of other local business cards to recommend. This exhibits your community spirit and builds camaraderie. Use every

opportunity to refer complementary businesses. For example, a local pet shop may recommend a pet groomer or veterinarian.

• Organize networking events: Whether it's done through a local Chamber of Commerce or individual efforts, small business owners can spearhead events that get other business owners together to network and share ideas. These meetings can be informal to help others let off steam at the same time.

• Volunteer and donate: Small businesses can meet other business owners, but also become more involved in their communities through volunteer events. Partner with charities or other local businesses to promote philanthropic efforts. School supply giveaways, beach sweeps, community park refurbishments, or even support ing efforts to clean trash from Main Street are great ways to get involved.

Small business owners willing to work together can collectively improve their communities, which should benefit everyone's bottom line.

We are thankful for your local business!

Roughly 22% of small businesses will fail in their first year of operation

consumers who want to help local entrepre neurs thrive may not need any extra incentive to support small businesses in their communities. However, that doesn’t mean it isn’t worth noting the tax benefits of buying local compared to buying online or in other towns or cities. Small businesses pay sales taxes to the city and county where the business is located, which means a significant amount of the money spent at local businesses is ultimately going to the community at large. In addition, local businesses tend to hire local residents, who pay taxes on their incomes. Those taxes also benefit the towns and cities where workers live and work. This ripple effect of supporting local businesses is one reason why the Small Business Adminstration estimates that, for every $100 consumers spend at a small business, $48 remains in the community.

every

consumers spend at a small business,

remains in the community.