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BusinessFlare Approach Downtowns Investment Drivers Quality of Life

Ciao San Fran! Part 3

Will Remote-Work Policies Lead to a Bay Area Exodus?

Will Remote-Work Policies Lead to a Bay Area Exodus? (Infographic)

Highlighting our opinion on one of the five investment drivers, Labor, is the continuing exodus from the San Fransisco area, once a thriving, authentic and awesome city that has ignored resident quality of life. while demanding more and more from those residents. This is great news for those communities that are actually creating great public places where people want to live.

Cities that embrace and understand the changing landscape of the labor markets and focus on quality of life as an economic development strategy will position themselves for success. Read more of our short opinion on this.

This is great for downtowns

This is great for Florida

This is great for Tennessee

This is great for Texas

From Entrepreneur Magazine – “the next question those companies’ employees will likely ask themselves is natural: Why would I stay in the Bay Area if I’m not going into the office? Long the epicenter of tech in the U.S., the Bay Area has become prohibitively expensive for all but the highest-paid workers. Its housing costs are among the highest in the nation, and it’s gotten so bad that companies like Google have pledged staggering sums to help solve the shortage of affordable housing.”

Read more… https://www.entrepreneur.com/article/351172

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BusinessFlare Approach Entrepreneurship Investment Drivers Quality of Life

Investment Driver: Labor

Why Resident Recruitment is as Important as Business Recruitment, and Quality of Place is the Best Incentive There Is.

How are employees coping with remote working? | HRD New Zealand

There is the adage that retail follows rooftops. Well, business follows talent, and now more than ever talent seeks out quality of place.

More and more, people in general, and especially the talented workforce, are looking for real, authentic places where they can be part of a community. Places that have character and history, community gathering spots, and opportunities to engage with each other.

Cities that embrace and understand the changing landscape of the labor markets and focus on quality of life as an economic development strategy will position themselves for success. Thirty years ago, when a company advertised for a high-skill job, 10-15 prospects would show up for an interview, and one of them would receive the job. They wanted the job and would accept it on the company’s terms (location, salary, hours, etc).

Fast forward to today. 10 companies might advertise for a high skill job, and one person might be qualified. Today, the worker is in charge, not the company. The worker will set the terms regarding location and telecommuting, salary, hours, etc.

What does this mean for cities?

Similar to the skilled worker/company dynamic, it is now the workforce that is in charge of where they decide to live, and they will make that decision as part of a balance of different lifestyle choices that include housing characteristics, transportation and commuting, school quality, social and recreational activities, and many other factors, even including the presence of craft breweries. As previously mentioned:

Cities that embrace and understand the changing landscape of the labor markets and focus on quality of life and quality of place as an economic development strategy will position themselves for success.

Categories
Entrepreneurship Small Business

This is NOT Impossible

The 3 Most Dangerous Words In Entrepreneurship: “This Is Impossible”

The 3 Most Dangerous Words In Entrepreneurship: "This Is Impossible"

Great article in Entrepreneur Magazine by Jason Feifer. Gives a good example about the search for “surgery without pain”, and the naysayers that said anesthesia didn’t exist.

The lessons:

  1. If we say something is impossible, then we stop pursuing it.
  2. If we stop pursuing something, then it never gets accomplished.
  3. If something never gets accomplished, then the naysayers were right: It was impossible.

It’s a self-fulfilling prophesy. The phrase “This is impossible” creates impossibilities.

Entrepreneurs prove that nothing is impossible!

Read more… https://www.entrepreneur.com/article/351173

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COVID-19 Entrepreneurship Small Business Starting Over

New Online Ventures

We keep telling you, Start Your Business NOW!

The Covid Quarantine Is Fueling a Boom in New Online Ventures

The Covid Quarantine Is Fueling a Boom in New Online Ventures. Out of work and with more time on their hands, more people are setting up new websites for entrepreneurial endeavors.

Another example of how this can be the best time to start a business, and starting a new business or entrepreneurial effort is likely a much better use of your time than a constant job search or lounging at home collecting unemployment. This also works for bricks and mortar businesses that have limited or no online presence.

From this article from Inc. Magazine: “Until mid-March, Zach Sass was the executive chef at Nashville Underground, a popular tourist spot known for its hot chicken on Music Row in Nashville. Sass, 31, had been a chef for 12 years, working all over the country and putting in 60- to 70-hour weeks. After Covid-19 forced Nashville Underground and other businesses to close, Sass found himself at home with time on his hands.” 

“Sass also needed to figure out a way to earn a living, which is how he came to launch his first website to promote the live cooking classes he’s begun teaching via videoconferencing software. He set up the site with GoDaddy, the Scottsdale, Arizona-based domain registry and web-hosting service. “I’m not savvy when it comes to computers and technology,” Sass says. “I was scared not having any skills.” And yet, he got his site online and has begun teaching online classes, helping people to cook using the ingredients they have on hand in their kitchens and asking for donations between $10 and $100. Much of Sass’s inbound traffic comes from LinkedIn, and he recently started using Google Ads to grow the business.”

Read more… https://www.inc.com/matt-haber/covid-domain-registration-launch-new-websites.html

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COVID-19

Unemployment Pays

$600 Unemployment Benefits Are Keeping People From Returning to Work, Fed Says – Barron’s, May 28, 2020

“Give a man a fish and he’ll eat for a day. Teach a man to fish and he’ll eat for the rest of his life. Give him an extra $600 a week not to fish, he’ll stay home and open cans of tuna—especially if he can avoid contracting coronavirus and his wife needs help with the children.”

Read more… https://www.barrons.com/articles/600-unemployment-benefits-are-keeping-people-from-returning-to-work-fed-says-51590624390?mod=hp_DAY_6

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COVID-19 Small Business

Retail Recovery

The Recovery of Bricks-and-Mortar Retail Will Be Staggered. Here Are the Early Winners and Losers. – Barron’s, May 28,2020

Placer.ai is a location-data analytics company that tracks more than 30 million mobile devices in the U.S.

A year-over-year comparison shows that gyms, hotels and apparel shops have been hit the hardest by the pandemic and likely won’t see an easy recovery even after reopening. Nationwide visits to those three groups of retailers remained down 87%, 79%, and 72% down, respectively, from the same period last year, while superstores like Target (ticker: TGT) and Walmart (WMT), and the grocery sector saw visits up 13% and 6% year-over-year.

The nature of different reopening policies and loosened restrictions, depending on the state, also have a clear impact on how retailers are doing. For instance, Georgia and South Carolina, among the earliest states to reopen in late April, are seeing significantly better recoveries among retailers, while California—where phased reopening didn’t start until the second week of May—is still seeing much less traffic to shops and restaurants.

https://www.barrons.com/articles/the-recovery-of-bricks-and-mortar-retail-will-be-staggered-51590681052?mod=hp_LEAD_3

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BusinessFlare Approach COVID-19

Its all about Cash Flow

Restaurants Say Socially Distant Dining Rooms Could Wipe Out Business – Wall Street Journal May 28, 2020

Businesses prohibited from opening were offered PPP loans to pay employees to not work. Unemployment compensation is higher than some workers were making so they aren’t going back to work. Will they have jobs when the dole runs out?

And now, businesses are expected to operate at 25% or 50% capacity, mostly businesses that operate on thin margins. This equals negative cash flow in most cases. Clearly many of these policy makers missed our BusinessFlare® Academy Economic Development for Local Elected Officials class. From our textbook (soon to be available online, in print, and in audiobook!):

“Cash Flow is King – The bottom line for economic development is cash flow. Cash flow is the key to a business’ success, and it is important to remember that there are only two things that improve cash flow: increasing revenues and/or reducing expenses. This is important to remember because there are so many things that a community can do that impact a business’ cash flow including how policies are implemented and what those policies are to begin with.  That said, elected officials have a role that is broader than economic development, and which includes the health, safety and welfare of the community. Therefore, policies will be implemented that have a negative impact on cash flow. In those cases, it is important to understand and respect the impact of policy decisions and implementation of those policies on business cash flow to maintain credibility with the private sector.” – From “Governing for Economic Development

Clearly the last sentence has been ignored in many places.

Read more… https://www.wsj.com/articles/restaurants-say-socially-distant-dining-rooms-could-wipe-out-business-11590671435?mod=hp_lead_pos13

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Craft Breweries

Craft Breweries

New page to highlight buildings (especially historic ones) that would make great locations for craft breweries and/or distilleries.

http://businessflare.net/craft-brewery-sites/

Categories
COVID-19 Small Business

Small Business Saturday

Good coverage yesterday and today from Barron’s about the nation’s small businesses and their challenges and opportunities.

Rich Rewards. High Risks. Here’s How to Buy a Small Business. https://www.barrons.com/articles/rich-rewards-high-risks-heres-how-to-buy-a-small-business-51590176701?mod=HP_DAY_RELATED_1

Small Businesses Are the Key to Reviving the Economy. They Face an Existential Threat. https://www.barrons.com/articles/americas-small-businesses-are-sputtering-why-that-matters-for-the-economy-51590141602?mod=hp_HERO

Retailing Is a Jungle That Will Keep Favoring Giants. Mom and Pop, Look Out. https://www.barrons.com/articles/retail-giants-will-keep-gaining-ground-in-a-post-coronavirus-world-51590193284?mod=hp_LEAD_1

Small Businesses Are in Fragile Shape, Chamber of Commerce President Warns. Here’s What They Need to Survive. https://www.barrons.com/articles/what-small-businesses-must-have-to-reopen-public-health-clarity-liability-protection-federal-aid-51590141600?mod=HP_DAY_RELATED_2&tesla=y

PPP Delayed the Day of Reckoning for Small Business. Now, Time Is Almost Up. https://www.barrons.com/articles/ppp-delayed-the-day-of-reckoning-for-small-business-its-almost-here-51590102090?refsec=small-business

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BusinessFlare Approach COVID-19 Investment Drivers

Investment Driver: Land

With Economic Development, ultimately, it’s all about the LAND…

J.C. Penney’s Bankruptcy: It’s All About the Real Estate

Barron’s coverage about J.C. Penney’s expected bankruptcy filing, which will split it in two, with one entity remaining as a retailer, and the land becoming property of a real estate investment trust (REIT). At a time when no one knows the value of that land, at least nor for the moment.

https://www.barrons.com/articles/j-c-penneys-bankruptcy-its-all-about-the-real-estate-51590192816?mod=hp_DAY_11