Small business struggles against big box culture
Small business struggles against big box culture
Written by Rachel Youens Wednesday, 07 November 2007
Michael Re faced all the expected difficulties a small business owner comes up against regarding advertising and customer service, but one year into his ownership the game became much more difficult. In the same shopping center as his cell phone store, Digital Planet, a corporate Sprint store moved in.
“There is a challenge as a business competing with corporate companies,” Re said. “Building customer base and loyalty is my biggest challenge. It isn’t pricing. It’s the perception by the customer that they have to go to big boxes and corporate stores.”
Re’s challenge isn’t unique among Northwest Austin businesses. A variety of organizations are trying to help the cause through education of both owners and shoppers.
Educating consumers is one of the primary missions of the Austin Independent Business Alliance. Similar to a chamber of commerce, businesses can join AIBA and the organization will work on behalf of the businesses using banners and printed directories to spread the word about Austin’s local businesses.
“For every $100 spent at a local business, $45 of that $100 stays local,” Cindy Reed. “The same amount spent at a chain store only leaves $13 staying local - that’s a huge difference. For holidays, put your dollars locally and you can benefit the vitality of Austin so much more.”
In order to make a change in shopping habits, businesses must educate their customers. Re says this has been a trial and error process for him. The past two years he’s made signs, run ads and networked with chambers in an attempt to connect with his customers.
Most businesses join AIBA as a district. The retail strip along North Loop Boulevard is one example. AIBA will debut their first two north Austin districts this winter across from Northcross Mall along Anderson Lane where it meets Burnet Road. In 2006 it was announced that Northcross Mall would be converted to a Wal-Mart.
The group Responsible Growth for Northcross is currently in court with the city trying to keep the store out of the area.
Beyond the struggle of making the sale, there are many other little things that business owners find themselves dealing with daily, from graffiti on their buildings to providing benefits to their employees.
The chamber has its own small business division for businesses with 50 or less employees, which works to help these businesses thrive in the city. This year, the small-business division of the Greater Austin Chamber of Commerce is offering members a chance to be part of a health coalition so that employers can affordably offer health insurance to their staff.
“For 2008, the chamber is going to be working with the City of Austin’s small-business program on programs and classes teaching new owners how to get their business started, and for old owners, how to continue with their business and grow it,” said Cathy York, chamber small business representative. “These programs focus on specific areas like sales, marketing and customer service that have the biggest impact on these businesses.”
The city’s small-business program offers everything from classes to databases to discounted printing services that will give small businesses a professional edge.
Northwest Austin got its own chamber of commerce in 2004 when a group of area businesses came together after deciding the Greater Austin Chamber had more of a focus on downtown and large businesses, according to member Steven Bray.
“Austin is a big city, even if we’re in one small region of it,” Bray said. “People in Northwest Austin tend to stay and shop in Northwest Austin so advertising on TV and in publications like the Austin American-Statesman doesn’t really do as much good as networking does.”
Bray says the chamber helps many businesses by giving them direct referrals.
In 2008 the Northwest Austin Chamber is planning their own educational program similar to that of the Greater Austin Chamber, providing low-cost classes to members in business development.
Although Re has not used these services, he says he uses networking groups like the Rotary club to get the message across on the importance of local business.
“What they don’t understand is they can get the same products with competitive pricing from independent businesses like me.”
Resources for small business owners
The Greater Austin Chamber of Commerce, Northwest Business Council
A division of the city’s larger council, this group was formed in 2005 and encompasses businesses in the 78613, -27, -29, -50 and -59 ZIP codes. The group meets once a month at Northwest Austin restaurants and the Austin Country Club.
Contact: www.austin-chamber.org, 322-5613
Northwest members include: Kabloom Florist, Austin Mobile Drug Testing
Northwest Austin Chamber of Commerce
This independently-run chamber covers the area between RM 2222, RM 620 and IH 35. The chamber meets on the fourth Thursday of each month at the Balcones Country Club, inviting visitors relevant to Northwest Austin including members of the city’s planning and zoning department and Capital Metro.
Contact: www.nwaustinchamber.org, 407-3130
Northwest members include: Lone Star Lending, Heritage Body and Frame
Austin Independent Business Alliance
Founded by a group of concerned local businesses in 2002, this alliance has grown to represent 300 members. The alliance focuses on working with public policy makers, business leaders and community representatives to make sure the interests of local businesses are taken into account. AIBA has helped businesses around the city organize into districts, such as the North Loop area, where all the members can join together to increase visibility.
Contact: www.ibuyaustin.com, 441-2123
Northwest members include: Alamo Drafthouse, Planet K, PC Doctors, Bettysport
Small Business Development Program
This city-funded part of the Economic Growth and Development office offers technology, referral services and resources to business owners. Business owners can get free access to software that assists in analyzing demographics or get help writing a business loan. The ultimate goal of the department, located along Barton Springs Road, is to foster job creation and support the growth of new and existing businesses.
Contact: www.cityofaustin.org/sbdp, 974-7800
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