What do business tax incentives buy? The State of Florida let the Qualified Target Industry tax refund program expire at the end of June. I’m not a big fan of incentives anyway, especially this type of incentive that is often more of a bidding war between locations. I prefer incentives that are focused on actually changing market conditions to improve investment, such as occurs in CRAs. Incentives should be a last resort, with more focus on doing what can be done to improve market position to attract businesses through placemaking, infrastructure, and quality of life improvements. That’s why I especially like working on consumer-based industries such as retail, restaurants, live music, craft breweries, entertainment, etc. If you don’t have the customers, no amount of incentive is going to help a business. After all, the most important incentive is the market, and there are better, more sustainable and resilient ways for locations to compete for investment and business.
A bittersweet ending for the Maker Community’s Biggest Supporters. Jules Pieri and Joanne Domeniconi helped more than 3,000 entrepreneurs launch their businesses, and now have been ejected from their own.
Businesses face existential threats, made worse by politicians. What happens when a second round of business closures hits on top of months of low to no revenue? It isn’t good. This is probably the most important article today.
This startup is taking on Amazon to help independent bookstores. Digital sales and affiliate payouts from the nonprofit platform Bookshop are helping some small booksellers survive during the pandemic. Unfortunately and fortunately, Amazon has transformed the written word. It has hurt local booksellers, so kudos to Bookshop for working to keep them alive, but Amazon also made it SO much easier to launch the BusinessFlare Publishing Group and publish our first book, Governing for Economic Development, in English and Spanish as paperback and eBook. The English version can be downloaded for free today, July 14, 2020.
Speaking of independents, did you see this CNBC interview a couple of weeks ago with our favorite bookseller, Mitchell Kaplan?
Entrepreneur interviews AirBnB CEO Brian Chesky, who talks about the future of tourism, and how in 6 weeks they almost lost everything that took them 12 years to build. I know that local governments don’t like AirBnB, but local governments better listen to his insights into the travel market regardless.
The retail trends initiated or accelerated by the pandemic continue, and the CEO of private label credit card provider Synchrony Financial gives her insights on it to Barron’s.
Here is some information on increasing the amount of your Economic Injury Disaster Loan (EIDL) from the U.S. Small Business Administration
We love everything about markets, so we especially were interested in this article about how COVID-19 was tamed in one of the world’s largest food markets, Central de Abasto in Mexico City.
Yesterday we mentioned how the most optimistic part of the recovery may be in homebuilding. Well today we follow up with an article from Miami Today about how low mortgage rates may be a driving force in the recovery of the real estate market in Greater Miami. Well, I would think in at least certain parts of Miami, not necessarily some of the overpriced and saturated luxury condo submarkets.
Also from Miami Today, the multi-whammy impact on the Miami Beach municipal budget. Now, the Beach’s economy is more diverse than people think, but could become more diversified in not only the mix of businesses that are located but even more importantly in the industry mix of the resident workforce. Look at the difference in how the resident work forces of Miami Beach and Coral Gables are contrasted. Anyway, the Beach demonstrates the hard decisions facing local municipalities, some which will be aggressive in trying to restore economic growth and others that may continue to focus on over-lockdown which will cause even larger budget holes to fill, risking the health safety and welfare of the citizens. Good luck to them, glad I’m not the policymaker.
Everyone knows we love markets, especially farmers markets, but we also love growing stuff (we even own a spice business on the side). Well, did you know that even though there is a trend for victory gardens, you should have a 70/30 split between blooms and vegetables?
While there are more and more stories about businesses pivoting in response to the pandemic, Inc has a great interview with Our Place owner Shiza Shahid, who did not pivot. Additionally, here is Inc’s coverage of the SBA’s new loan forgiveness application for the Paycheck Protection Program.
A few weeks ago we told you about the challenges in Bristol Tennessee/Virginia, since state allowed businesses to reopen faster than the other, putting businesses in Virginia at a disadvantage. Well, its happening again in the Quad Cities, where sales on the Iowa side are booming while those in Illinois face continued financial disaster.
Everyone knows that we are big fans of startups and entrepreneurial ventures that are launched during economic downturns. In this interview, Big Ass Fans founder Carey Smith talks about building a $500 million company during the Great Recession.
Local and state governments made you shut down your business. Can they also make you reopen? This article explores why a business may not be ready, or may not want to reopen quite yet.
The National Multifamily Housing Council reported the 89% of renters that it follow made payments for their June rent, which is near the historical norm. There is, however, concern that while tenants of professionally managed apartments were able to pay their rent, renters outside of this segment are experiencing hardships. There is concern about this market going forward, especially for smaller properties and rental units that are individually owned such as single family homes and condominiums.
There is also more coverage about the future of restaurants and the easing of regulations by cities to help restaurants recover. This has not been a uniform process around the country, or even within states. In Florida (and the U.S.) Tampa was ahead of the curve with its restaurant strategy while other locations such as Miami Beach lagged behind. New York and Los Angeles are still scrambling to finally help their restaurants.
Interesting that today, as we move forward planning mobile apps for our services, Entrepreneur gives us the five reasons that eCommerce needs mobile apps immediately. They provide a better user experience, access features only available on cellphones, are great marketing channels, easy checkout and interactive customer experiences.
Its not enough to get your brand out there through all mediums, you need a brand to resonate with your customers. What do you stand for, compared to what customers think you stand for? What need to you serve, and can you serve that need better?
Up in one of our favorite areas, Florida’s Space Coast, Space Perspective will take tourists to space in the Spaceship Neptune balloon!
Looks like Nashville business owners, who have already suffered tornadoes, COVID-19 and civil unrest, will now have to endure a 34% property tax hike (paywall). On the positive side, California-based health care firm QTC will open an operations hub in Music City, creating 410 new jobs over the next five years. Another example of business flight from California to places like Texas and Nashville. Florida needs to get in on this action. Nashville will begin Phase 3 reopening on Monday, June 22nd. allowing bars and clubs to start operating again.
Here’s what I found interesting in the news today.
The Wall Street Journal has an interesting op-ed questioning if there is another exodus ahead for U.S. cities in the wake of COVID-19 and the recent civil unrest. What are the lessons from the prior exits from cities, and what are the factors that impact it this time and ways to address them? What about public sector unions, gentrification, and education? It includes a link to an interesting discussion about public sector unions, and how politics distinguish between organized labor that excludes include police, and the police unions.
I loved this article from Inc Magazine about an entrepreneur that was told by a venture capitalist that he had a billion dollar idea. He passed and leads a much happier life than if he had taken the VC up on it. He did have the luxury of having been through the VC process before with other projects, and decided it was time to stop so much focus on advertising, he would get to see his kids more, and no more chasing unicorns.
Entrepreneur had four articles today. The first was 4 tips for simplifying due diligence.
Business pivots in response to COVID-19 are one of our special interests. This article explores the “9 bloody brilliant ways businesses are navigating meat prices”
I found this article about how Company Builders help startups and entrepreneurs in Latin America, where the fundraising and investor environment is more challenging, valuable given our interest in economic development and revitalization in that region.
The best of them all was an article about the 5 reasons that millennials are embracing solopreneurship – the digital revolution, flexibility, ethics, money money money, and the new options for traditional benefits.
Forget the Moat and Make Your Startup a Tropical Island.
Good article from Entrepreneur.com. Interesting because this approach can work not only for startups, but will also fit into the BusinessFlare Approach to Economic Development and help guide cities and communities.
There are four ways for a business to become an island, according to the author.
1-Aim to Please. Focus on serving their customers. This is as relevant, if not more so, to local governments, especially ones that are looking to attract new businesses, workers, and residents. This is where most local governments need to focus since one of the most consistent complaints from consituents (customers) is that cities have poor customer service.
2-Don’t Copy. Move Beyond. Businesses should not replicate what others are doing. Get inspired, then use your strengths to go beyond. This is a good economic development lesson, because cities can’t replicate the success of another city due to many factors. Your city can get inspired by the San Antonio Riverwalk, but you can’t have it so don’t try. Learn from it, then chart your own authentic path.
3-Build on your Strengths. Every business is unique and should function based on individual strengths and weaknesses. Same for cities. Start with who you are, what you know and who you know.
4-Maximize Value, not Output. Valuable experiences are what a business’s customer craves. Keeping costs down is important, but increasing value is more so. The same applies to city services. Increase the value for the cost and economic growth and quality of life will follow.
Much of decision-making is grounded in historical data, but there’s something just as important to consider when making decisions: your instincts.
One of my favorite quotes is from Albert Einstein (at least, according the that so very reliable internet): “Not everything that counts can be counted, and not everything that can be counted, counts.” In my work I spend alot of time crunching numbers and analyzing data, but I don’t let the data drive desicions or plans. There is so much more to it, and what can’t be quantified, especially in revitalization and economic development, is crucial to success.
“For entrepreneurs and startups forging new paths, there may not be enough data to inform the best decision. Historical patterns — the causes and effects of prior decisions, either yours or from companies that inspire you — may not repeat themselves in the same way they did before. This is especially true in the current economic conditions; the COVID-19 pandemic has altered the present and future for both existing companies and entrepreneurs alike. The past may be a poor indicator of what’s to come.”
Entrepreneurs are constantly seeking an edge or an advantage. In fact, most entrepreneurs are wired to look at the world from an opportunist’s perspective and are regularly working an angle, an approach, or a way of attacking a business opportunity that others have missed or have left exposed.