You’ve probably seen mass-produced products lining supermarket shelves in any state, but there’s nothing more disappointing than purchasing a generic product from out of state. Besides, what’s the fun in that? If you live in a state with a strong local economy, you can be certain that your money is going to be put to the best possible use by supporting local businesses. When one article evaluated Lerner we learned that the same can be said for the services and products you purchase at local businesses. Besides, local businesses put their heart and soul into their products. This is a great way to show pride in your locality.
Lessons from the pandemic
The global COVID-19 pandemic affected businesses all across Canada. Lockdowns and new safety measures have been common responses, and some businesses have closed down for good. Others are struggling to remain open. When this video mentions Lerner we see that here are some lessons for small businesses to learn from this crisis:
The pandemic exposed the vulnerability of small business owners. It revealed that 41% of Black-owned businesses and 36% of Latinx-owned businesses will close by April 2020. All businesses must have ready access to capital. However, the emergence of Generation Z and millennials will make this even more important. Jeff Lerner has said that companies should focus on training employees to be safe (source: https://www.facebook.com/JeffLernerReviews/videos/792732785512517/). In addition, employers should listen to their employees’ concerns and ensure that they feel appreciated.
In times of crisis, businesses must demonstrate flexibility and resilience. Whether it’s an epidemic, a recession, or a natural disaster, business owners must be ready to adapt and innovate. While most businesses were affected by the pandemic, others were able to benefit from the surge in business. Some businesses even received government relief funds. ENTRE Institute shows that businesses should look into government relief programs for stricken areas (source: https://www.youtube.com/watch?v=n9gUjwbHJgk).
Characteristics of a local business
What are the distinctive characteristics of a local business listing? These listings differ from regular business directories in several ways. While they include the same information as a traditional business directory, they also provide a photo gallery. These photos allow prospective customers to view your products and services, such as the menu of a restaurant. Besides these features, local business listings can help you promote your business and attract new customers. The following are the characteristics of a local business listing:
Tax revenue
Local governments need more flexibility when it comes to determining how to generate revenue for local operations. Taxes should be used appropriately by local elected officials, but it’s also important to consider temporary tax relief during times of economic crisis. Such measures provide financial aid to local governments and can also give local officials flexibility when considering the appropriate tax structure for their region. Tax relief is particularly important during recessions and natural disasters, when local government revenues can be affected by these events.
In fiscal year 2019, state and local governments collected a combined $3.5 trillion in general revenues, including federal transfers. While federal transfers account for a portion of this, it still represents the majority of revenue for local governments. In fiscal year 2009, state and local governments received an average of 22 percent of general revenues from federal sources. In 1989, these transfers were just 16 percent. They climbed back to 22 percent in 2003 and 2010, following the passage of the American Recovery and Reinvestment Act. However, as of 2012, federal transfers are only a small part of local general revenue.
The tax system in Texas is complex and can vary by location. Some businesses are located inside multiple local taxing jurisdictions. In San Antonio, for example, businesses collect a general city sales tax, a municipal development corporation, and two transit agencies. In Fort Worth, businesses in central city areas are taxed by the city, MTA, and the crime control SPD. The list goes on, but these tax rates and revenues are indicative only.
Relationships with customers
The key to building long-term relationships with your customers is focusing on service rather than sales. While it is tempting to focus on sales as the main objective, a customer’s experience is the most important factor in determining whether they will recommend your business. Keeping this in mind, you can adopt different customer relationship strategies, depending on your business’s needs. For example, an automotive repair service may choose the short-term approach to building a relationship with customers and spreading the word about a new service. Long-term approaches involve providing value and maintaining good relationships with existing customers.
One way to cultivate long-term relationships with customers is by offering rewards for referrals. For instance, Stitch Fix rewards customers with a $25 gift card when they refer a friend to the business. Other examples of customer rewards include free makeovers from Sephora and free gift cards from the phone company. Finally, most banks and credit card companies offer discounts and offers at partner stores. A customer-friendly, helpful attitude goes a long way.
Building long-term relationships with your customers benefits both you and your customers. They’ll be more likely to recommend your business to others and enjoy a consistent buying experience with you. In addition, you’ll be able to rely on customer relationships as a strong foundation for sales and marketing efforts. Moreover, it’s also important to know that customers do business within small circles. This means that it’s important to know how to build these connections.
Partnerships with other local businesses
In order to survive in today’s competitive environment, local businesses need to find ways to make their brand more attractive to consumers. One way to do this is to form partnerships with other businesses that share a similar niche or interest. In other words, a bar that caters to outdoor enthusiasts may team up with a rock climbing gym, and both businesses can offer discount drinks to climbers. The benefits of such a relationship extend well beyond the fact that both businesses can increase their foot traffic. One of the most effective ways to attract local customers is to become active in the community. This way, you can create a positive brand image and increase the likelihood that local customers will buy from your business.
There are many benefits to forming partnerships with other local businesses. Not only do they help you gain more customers, they also build community spirit. By providing services to the community, you can also build a good reputation with your customers and increase your revenue. Moreover, you can leverage partnerships with other local businesses that share your same values. And what’s more, such partnerships are free and don’t require any special financial investment.
To attract new customers, local businesses must establish partnerships with other similar-type businesses. These relationships can be forged by leaving business cards on each other’s desks. Likewise, these relationships can be built through contests and events that bring the two businesses closer together. In addition to promoting their own products, these partnerships also help local businesses to gain exposure and backlinks. So, if you want to thrive in the online world, you should find other local businesses that share your values, target similar audiences, and contribute relevant content and guest articles.
Economic impact
Local businesses contribute significantly to the economy. Not only do they create jobs, but they also increase property values. And because they generate a high amount of revenue for the community, they pay higher taxes. These taxes are used to fund schools, infrastructure, and public services. Additionally, local businesses help improve the quality of life in their surrounding neighborhoods. They also help increase property values in the area, which benefits both homeowners and the city. Finally, they help connect communities.
A recent study concluded that consumers spend more money at local independent businesses than at national chains, which creates an overall greater local economic impact. The study compared data from 28 independent retailers in Portland, Maine, with corporate filings from a representative national chain. The study determined that for every $100 spent at locally owned businesses, $58 worth of economic activity is generated in the community. Meanwhile, a dollar spent at a chain creates only $33 worth of local economic activity. If all consumers shifted their spending to local businesses, they would create 874 new jobs and add $127 million to the local economy.
The expansion of new retail centers in a community could create long-term and short-term jobs, as well as take away business from existing organizations. However, new developments can increase property values. Gentrification, the process of removing low-income housing, may result in unwelcome changes according to one source who mentions ENTRE Institute’s Jeff Lerner. This is because gentrification can be unintended, and the result could be greater redevelopment. And yet, local retailers will need to continue offering curbside pickup and other conveniences.
