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What’s holding back coastal towns?
5 reasons to take the plunge
Imagine that I have a little business in a small seaside town. A hair and beauty salon perhaps. The town did well enough once upon a time. The visitors flocked here, they were never part of my core business, but it kept the town vibrant and the winter months were a well-earned rest rather than a nervous break for businesses wondering whether another wet season might possibly be their last. So as you might guess, the town is looking pretty run down these days. And my business? Well, there’s no point spending money doing it up is there? I’m always pretty busy, recession or not, I’ve got a loyal clientele and the people around here can’t afford to pay much more than they already do; how would I make my money back?
There, in the snip snip it takes a hairdresser to say “Going anywhere special for your holidays?” is the challenge for those of us working to regenerate seaside towns and the tourist industry. The tourism ‘offer’ is a product of place and people; a healthy local economy is not built by tourist businesses alone. So every hairdresser, solicitor and fruit shop matters; the way locals greet each other in the street matters; and, as I have heard so often this season, it is about getting good at doing business like our overseas competitors. It is about rebuilding the pride that has shopkeepers sweeping and washing their front step every morning.
Yet ask current visitors what they want out of our seaside resort and there’s a good chance they will describe what they are already being offered, that’s one of the reasons they come after all. The same may be said of many businesses, if there is a captive market and competitors offer very similar product ranges (yes, we’re back to the hair and beauty salon again).
The lack of business investment in seaside resorts has contributed to the decline in quality of the tourism product, that much is evident. Yet it is a product that still attracts a loyal, niche, following; a following that perhaps finds the decline endearing, a bit like coming to terms with one’s own aging. But after aging comes death, in product lifecycles as in the human condition. It doesn’t matter whether you are selling your product to the telecommunications or tourist industry. Even hairstyles and hair care products come and go.
If the product is the town and all that’s in it, not just individual businesses, then it stands to reason that the whole community, particularly the business community, needs to step forward to do its bit for regeneration. And, if the spirit is willing, is there the necessary entrepreneurial skill? Well, here’s some food for thought:
Growth comes with change
Someone’s got to make the first move; whoever does starts getting the benefits soonest. Why wait for the local council to take the lead – their budgets are tight too – and there’s a lot a community can do for itself, even if it is just washing down that front door step. Be the first to offer the next new thing – even if it’s the same thing as before but better quality.
Our future visitors aren’t necessarily our current visitors
If the town is in decline then current visitors will peter out and so will the businesses. Entrepreneurs find out what would attract those who don’t already visit, and those who have stopped visiting, and they adapt their offer to match. Be sure it’s good quality though – you want your new visitors to be so impressed they’ll come again.
We reap what we sow
When a business promotes itself the task should be easier if its location adds kudos rather than doubt to its reputation. The location gains kudos if its businesses and community are actively making their location the very best place that it can be. Develop quality, add value.
Everyone benefits
Good business generates good jobs. Good jobs provide good incomes for households and for businesses. Good jobs demand good skills. If you want a share in those good local jobs you are more likely to work to develop those skills, making you better able to help your children develop good skills etc. etc. Again, it’s quality all the way.
Sink or swim
The do nothing or more of the same approach must surely be a strategy for a slow death – for individual businesses and consequently for the seaside resorts they populate. It is better to look to the land beyond and swim for it, rather than tread water and wait for a lifeboat in a shipless sea – isn’t it?
Not everyone approaches business like Lord (formerly Sir Alan) Sugar, but trying to maintain the status quo in a business, rather thank trying to grow it, is a high risk strategy too. When the world is moving forward, standing still is effectively stepping backwards. So here’s the question – what will it take to encourage businesses in seaside towns to dip their toes in the icy water of investment just at the moment?
Quantitative Easing had a few key objectives - it has succeeded in allowing companies to raise funds in the capital markets but has so far failed to convince banks to lend money to smaller business enterprises and individuals. However, careful preparation by business owners and investment in the right advice when approaching funding sources can still bear fruit. I do believe that now is a great time to re-evaluate business plans and identify exactly where investment now will yield greatest future reward.