22
Jan
09

Opening (and Keeping) a Business in Downtown Salem

I was saddened to hear about the closing of New Civilitea this month;  it pains me to hear about any new business closing in the downtown, but especially one in our own building, and one that opened close to  the same time we did.  New Civilitea had a wonderful product, and it distresses me that it did not work out.  I don’t know any of the details of their closing, but it prompted me to think about exactly what it takes to make a business successful, and to be more specific, what it takes to build a successful business in downtown Salem.  I’m not saying we have perfected all these things – we’re constantly striving to improve and figure out what works and what doesn’t, but I think some general principles are worth remembering:

  1. Sell a great product, and more specifically, sell a product that both locals and tourists want and need all year long.  Salem has a surplus of tourist and gift shops that do wonderfully during the Halloween season, but perform miserably the other  10-11 months of the year.  Some of these businesses are built exclusively around Salem witches, and while that works well during peak tourist season, new businesses should think about what they are going to do to make money in the winter and spring.  Of course, there are exceptions to this rule, and there are stores that make enough money during tourist season to survive the rest of the year.  But for new businesses opening, ask yourself whether your businesses will do enough business to survive in down times.  Web sales may make up for lack of foot traffic during the off season, but are you prepared to look outside your store doors for other revenue streams?  Continuous marketing, web offerings, business-to-business sales and services supporting the local community can make a big difference to your bottom line; don’t fool yourself into thinking that “if you build it, they will come.”
  2. Offer great customer service.  I’m amazed to see the number of businesses who seem to believe that treating customers like junk will allow them to stay in business for years to come.  Perhaps it’s a symptom of having a store in a tourist town; “we’ll never see that person again anyway.”  I’m not a subscriber to the “customer is always right,” but I am a believer in treating every person who walks through our doors with respect, kindness and good service until they prove they don’t deserve it.   People who walk through our doors are often surprised at how friendly the staff is, and it’s something we require right off the bat from our people – we’re a “no attitude” bookstore.  Maybe it’s my own hostile reaction to booksellers who put on the “hipper than thou” act.  Add to that the willingness to go the extra mile to help the customer find what he or she is looking for, and it’s something that will stand you in good stead during the non-tourist months.
  3. Consider staying open late(r) and often.  Many businesses close too early in Salem – tourists and locals are looking for stores to visit after they’ve had their dinner or after work, and Salem has an active nightlife.  Unfortunately, when too many stores close early, it leads those same people to believe that the city is “dead” at night, which feeds into the perception that Salem is not serious about its downtown business, and more distressingly, that the downtown itself is faltering.  We stay open 7 days a week, usually until 9pm; that may be too ambitious for some businesses, but even 7pm or 8pm on Thursday through Saturday sends a good signal about your business.  If you are closed more often than not or you adjourn at 2pm for the pub, please see number 5 below.
  4. Serve the community.  Let’s face it; folks can easily spend their money elsewhere.  The internet, malls and big box retailers offer unprecedented choice to the consumer.  If they can’t get it from you, they’ll get it from someone else, and complaining about it won’t do you any good.  You absolutely must, in order to survive, offer something that the other guys aren’t.  So while Wal-Mart can beat you on price, and Amazon can beat you on convenience, none of those businesses can serve your local community the way you can.  Stop and think about what it is you can do for people and businesses and institutions around you.  Find out what’s needed in your community, and offer it, not only within your doors, but by taking it out to the folks who need it.
  5. Don’t be a “fly by night.”  Honestly, if you are doing this as a hobby and are not one thousand percent committed to devoting your heart and soul (and money) to a business in Salem, don’t bother.  Your customers will know you are not serious.  This means doing all the things above and more.  Running a small business is hard, hard work – you will constantly have tasks to do – paying bills, watching the budget, finding new customers, keeping the ones you already have.  If you aren’t willing to commit yourself completely, you’ll join the many businesses that have tried and failed. 

I want to emphasize right here that the above is in no way a reflection on New Civilitea; I have no idea what their circumstances were, and I can only say that I’ll truly miss them and wish them a heartfelt farewell and best of luck.  I continue to be eternally optimistic about business in downtown Salem  — let’s pitch in and do what we can to continue to make it a place we can be proud of.

Gil


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