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Millennial Money: Small Shopping Makes a Big Impact | Business

all right. Shopping on Amazon is easy. Are you running out of toilet paper? Do you need a light bulb? Want a whimsical bus caddy? With just two clicks, you’ll have less thought and you’ll find what you need, what you want, and what you want right next to you. Often within 48 hours.

You need to think more to shop locally. Supporting small businesses is a deliberate act — something that moms and pop shops in your neighborhood need to desperately make you.

Over the past year, tens of thousands of SMEs have been closed, many of them permanently closed. Each time it closes, there is a gap that is deeper than the empty storefront. The community loses dollars, jobs, and resources that would now have closed businesses circulating back to the local economy.

SME reinvestment

According to the US Small Business Administration, if you spend $ 100 on a small business, $ 48 stays in the community. If you spend the same $ 100 at large stores and retail stores across the country, you’ll only stay $ 14.

why? Local businesses depend on other local businesses.

Kela Nabors is the founder and CEO of Organically Bath & Beauty, an organic vegan skin care line and shop in San Antonio. She uses local companies for marketing and financial services whenever possible. The cards she puts into each gift set are from another local company, Bell & Union.

“We keep it local as much as possible,” says Nabors, who works with a local food bank to help and often go to other small businesses for her personal shopping.

If her business fails, much like last year, the loss will spread to the entire community. However, Nabor’s customers came in to buy merchandise and advertise her store.

“Some people were buying something every day to send to people they knew,” says Nabors. “It really helped us to create new relationships with people outside our core (customer) base.”

Turn on the light

For many businesses, only local support continues to illuminate. In some cases, the light will turn on again.

According to a January 2021 report from Facebook and the Small Business Roundtable (a coalition of businesses and entrepreneurial advocates), some small businesses that had to close early in the epidemic were mostly We were able to resume for customer support.

According to the report, 25% of SMEs were closed in December 2020, an improvement from 31% in April 2020. Of the SMEs that closed and later reopened, 31% said that was why customer support was able to do so. The company also cited measuring social distance (40%) and relaxing restrictions (30%) as factors that made it possible to resume.

Nabors had to close its storefront early in the pandemic when sales plummeted from about $ 15,000 a month to just $ 500 in March.

“I thought,’I can’t make this rent,’ so we put everything back home,” says Nabors.

The customer stayed in touch, asked Nabors to add the product to her website, and encouraged her to do more outreach on social media. Her online sales increased from about 10 per month to 50 to 100 per day. She reopened in May and is now aiming for expansion.

“We were able to actually prosper and grow during the pandemic,” she says.

Hire local shops locally

Companies will need to staff when resuming and gradually return to pre-pandemic levels. Tom Sullivan, vice president of small business policy at the US Chamber of Commerce, said the employment will be local.

“SMEs have their own advantages when it comes to hiring. It’s a different community network than Indeed and LinkedIn,” says Sullivan. “There will be more emphasis on local recruitment than ever before.”

Nabors is already considering hiring. Her business went from three pre-pandemic employees (two of whom later moved) to one employee and a small family in the early months of the pandemic. She currently has five employees, is purchasing warehouse space, and plans to hire 22 new employees.

Uptrend

There is a saying: the rising tide lifts all boats. That means everyone benefits from a good economy. This also happens at the micro level.

National Main Street Center Inc is a non-profit organization that works to revitalize historic commercial districts as property values ​​rise and housing demand increases when there are healthy small business districts in towns and neighborhoods. Says Matt Wagner, Chief Program Officer of.

Owners of other small businesses will also notice.

“It has a trendy effect that more entrepreneurs want to enter the market,” says Wagner. “Most of it has to do with having small businesses there, such as breweries, coffee shops, grocery stores, etc. It’s a neighborhood.”

The small business district is a point of pride as a place to be proud of when friends and family visit.

“It has become an amenity in some ways. It’s like having a robust school system, park or trail system,” says Wagner. “People may have taken it for granted before, but now it can be gone, which has a huge impact on your personal quality of life.”

Millennial Money: Small Shopping Makes a Big Impact | Business

Source link Millennial Money: Small Shopping Makes a Big Impact | Business

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