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.
Three traditionally offline industries that are going online. This list features some all-star companies that did a brilliant job at digitizing on the fly.
Major museums are reopening with restrictions, limited admissions, and extra safety measures.
In great news for the economy, June Retail Sales results would be a good report without the virus, with year over year sales up compared to June 2019, and a 7.5% increase from May 2020. Although the spending is in different categories from the norm, it is a good sign for overall consumer spending patterns since this will be a consumer-driven recovery. New unemployment claim trends continue their gradual decline, with 1.3 million for the week ended July 11 compared to the late March peak of 6.9 million.
New legislation would grant automatic forgiveness of PPP Loans under $150,000. The smallest of small businesses may be able to avoide hassling with additional documents, worksheets and payroll/tax forms. This will be important for the vast majority of the 65,000 businesses in Greater Miami that received PPP loans, where the average loan amount was $29,000.
Eviction looms for millions who can’t afford rent. The federal eviction moratorium expires in July along with enhanced jobless benefits.
Despite calls to defund the police, some cities are spending more. San Diego is increasing its police department budget by 5%, the largest boost by a major city this year.
How small businesses can leverage AI to battle bigger competitors. Increased productivity and better data collection are some of the key tools.
ew legislation would grant automatic forgiveness of PPP Loans under $150,000. The smallest of small businesses may be able to avoide hassling with additional documents, worksheets and payroll/tax forms. This will be important for the vast majority of the 65,000 businesses in Greater Miami that received PPP loans, where the average loan amount was $29,000.
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?
Six theories on why fast growing startups seem to be disappearing. One possibility is that people are more motivated by the idea of beinig an entrepreneur than by having a great business concept.
Biotech properties draw billions of dollars as other real estate languishes. As we work on an exciting initiative to attract additional federal investment into biotech research, this article helps bolster our position that the investment is justified and that there will be a significant economic benefit.
With play on pause, sports teams forge ahead with real estate projects. Amid lack of ticket sales due to coronavirus, alternative revenue streams could become increasingly important for sports teams.
And finally from Entrepreneur, how to craft an elevator pitch that gives people chills in under 20 seconds.
What we’re paying attention to today:
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.
Great interviews with 12 business leaders on rebuilding in the post-pandemic economy by Authority Magazine. Follow this link for the highlights.
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.
Is reshoring real? “Kearney recently released the seventh edition of their annual Reshoring Index, which attempts to do just that. The U.S. Reshoring Index tracks total manufactured goods imports from 14 traditional offshoring partner countries including China, Taiwan, Malaysia, India, Vietnam, Thailand, Indonesia, Singapore, Philippines, Bangladesh, Pakistan, Hong Kong, Sri Lanka and Cambodia, as a percentage of U.S. domestic gross output of manufactured goods.”
Today in our world:
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?
In the residential market, housing is the most optimistic indicator so far during the recovery. Sales of new single-family homes rose 16.6% from April to May.
Barron’s today is guiding business owners on ways to save taxes, including switching the method used to estimate taxes, changing accounting methods, taking advantage of federal relief, and reconsidering the business structure.
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.
If you are considering buying a business, you should read this article from Entrepreneur. about the 3 questions you must ask. Barron’s this morning also has a good roundup of nongovernmental sources of financial aid for businesses.
Entrepreneur webinars are great and insightful. There are three coming up: How to get to market fast and lean; followed by how restaurants can survive in the new normal, closing with How to start a side hustle with little or no money.
Here is a good interview with Amy Liu from the Brookings Institute about the future of the Urban Economy.
What is the impact of the lockdown on your job prospects if you were forced into bankruptcy for reasons outside of your control?
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.
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.
Read more… https://www.entrepreneur.com/article/351078
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.”
What happens after the Great Shutdown?
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.
Read more… https://www.entrepreneur.com/article/351099