Strategizing Small Business Support

Posted on by Department of Housing and Community Development

Small businesses are the heartbeat of Main Streets everywhere, providing the economic engine that drives thriving downtowns. Earlier this month, Main Street America (MSA) published the results of their Spring 2024 Small Business Survey, which reflected the experiences of 996 businesses across 46 states and offered a snapshot of the state of local businesses across the country. The reported findings noted that the confidence of small businesses has gone down in recent years and that small capital investments ($25,000 or under) are a critical missing piece for growing businesses.

The 2024 Small Business Survey reveals that small businesses are facing ongoing challenges, particularly with rising costs and shifting consumer behaviors. Despite these difficulties, many businesses are optimistic and are actively seeking ways to adapt and innovate. Key strategies for success include embracing digital tools, enhancing customer engagement and leveraging community support.

Regarding leveraging community support, two Advancing Virginia Main Street (AVMS) Executive Directors, Jackie Fox Wood with Luray Downtown Initiative (LDI) and Rebecca Logan of Main Street Lexington (MSL) were asked to offer their insights and expertise on what they do to support their downtown businesses.

Key LDI strategies include:

  1. Personalized Support: The director’s role involves regular visits to local businesses, providing tailored support and guidance. This hands-on approach ensures that business owners feel valued and supported.
  2. Promotional and Aesthetic Enhancements: By improving storefront displays and outdoor features such as hanging baskets and planters, the program enhances the visual appeal of Main Street. These efforts not only attract customers but also create a welcoming atmosphere.
  3. Encouraging Collaboration: Promoting business-to-business interactions help to create a cohesive business community. This network effect can lead to shared promotions and mutual support among downtown businesses.
  4. Open Communication: Downtown Luray Initiative emphasizes the importance of clear, honest communication. By keeping stakeholders informed and addressing both positives and areas for improvement, the program builds trust and fosters a collaborative spirit.
Downtown Luray

Main Street Lexington takes a different yet equally effective approach. Their efforts are centered around financial incentives, educational initiatives and robust communication strategies.

Key MSL strategies include:

  1. Gift Certificate Program: In 2023, Lexington sold nearly $60,000 in gift certificates, with over 95% of retail businesses in the downtown district participating. This program benefits businesses by ensuring they receive 100% of the redeemed certificate value, while the MSL office absorbs all processing fees. This initiative not only supports local merchants financially but also encourages community members to shop locally.
  2. Main Street Mornings: These monthly meetings provide a platform for downtown merchants to connect and share ideas. The program includes valuable sessions such as a marketing series conducted by a local marketing expert and presentations from various community representatives.
  3. Grant Program for Signs and Awnings: To further enhance the physical appearance of downtown businesses, Lexington offers grants for signage and awnings. This financial support helps businesses invest in improvements that attract customers and enhance their brand image.
  4. Regular Communication: Main Street Lexington maintains consistent contact with businesses through both in-person meetings and electronic communication. This ensures that businesses stay informed about opportunities and updates.

These practical approaches to connecting Main Streets with small businesses can create lasting community relationships that grow and sustain downtowns. Whether through personalized support, promotional efforts, financial incentives, or educational initiatives, these efforts are integral to the success and vitality of our downtowns. By adopting similar strategies and maintaining strong, communicative relationships with business owners, other communities can also create thriving, supportive environments for their local businesses.

Images provided by:
Luray Downtown Initiative and Main Street Lexington