By American Express open, helping you get business done. Hi everyone, im j. J. Ramberg and welcome to your business, the show dedicated to growing your business. Small business saturday is only a couple of weeks away, and small retailers across the country are gearing up their marketing plans to get customers through their doors. But thats an issue even big retailers have been struggling with. We met two Online Companies who say the problem isnt that people arent shopping, its that businesses are stuck in the old way of doing things when Shopping Patterns have changed. Both m. Gemi and parachute are trying out approaches to retail that has online and offline sales booming. Youve seen the headlines. The 5 trillion retail industry. Macys, sears, toys r us have all closed locations. Smaller stores are struggling to get customers in the door. Seems like a bad time to open a retail shop. Right . The founder of m. Gemi and parachute feel otherwise. We always thought that it would come to life in a physical wear. Sheryl kaplan is cofounder of m. Gemi which she started in 2014. It started as a purely Ecommerce Company which was bucking the trend of traditional luxury shoe sellers. We drop shoes every monday. In traditional retail you look at that or you look at reports and say thats great, thats wonderful for us to know. And next year when we do that shoe, or this shoe, well take that into account. For us, we can do that realtime. The company hit a nerve with shoppers. Who like both the styles and the prices m. Gemi was offering. But the founders knew that something in the formula was missing. One thing that ecommerce doesnt do is it doesnt allow for tangibility. Doesnt allow you to touch, to feel, it doesnt allow you to interact directly with human beings. Their data showed that First Time Buyers were hesitant to take the plunge. We knew that buying footwear online could be tricky. So we had to remove every hurdle that we could in an effort to try to get men and women to try us for the first time. So they opened their first store front in 2016. In the heart of new yorks soho neighborhood. With a second boston location in 2017. From the outside, m. Gemi may look like a typical store but the experience is far from typical. Its not transactional. You dont walk in and say i need that shoe and youre in and out. Theres no Cash Register in sight. And you cant walk out with your purchases. This isnt a store. Its a fit shop. Instead of shoes for sale, the store carries every style in every size for customers to try on. And then a Sales Associate orders the shoes for you online. The foot shops are truly about trying on the shoe, maybe being a little adventurous, trying on something that you might not have bought online but you try it on. What we find as a result is weve created this super consumer and what that means is they buy more when they come to the store. They return less. They frequent our website more often, after. Founder of Home Essentials brand pair schut also started her Company Online in 2014. We were able to reach a lot of people and overcome those geographic constraints that you can on the internet and collect a lot of information about our customers not in a creepy way but in the really important way. But similar to m. Gemi the data showed that customers wanted the option of a more hands on approach. So two years after its start parachute opened a store front underneath its headquarters in santa monica, california. This is a category thats super focused on touching products and feeling them. It made a lot of sense to go offline. They spend 45 minutes in the store becoming true brand advocates. You dont get that online. You dont get people on the website for 45 minutes. They may have come in for a set of sheets but all of a sudden they want to buy towels and tablecloths. The shop helps people experience the brand in a tangible way but aerial never wanted to create a store in the old model of retail. In order to build a true lifestyle brand you have to think about selling experiences. Building relationships that go beyond that first purchase is so important. So, parachute rented space above the store and funished a rentable one bedroom apartment decked out with their products. The parachute Hotel Concept was born. They sleep between our sheets and use their towels. Felicia booked the hotel for two nights. She said it made her a true parachute believer. It felt true to their aesthetic. This is what it means to have a parachute lifestyle. You want to buy into everything, not just the primary item which were the sheets and the bedding and the comforters. They also host events in the apartment. Often in partnership with other brands, in order to get their products in front of new potential customers. What weve seen by having a space for us to host, weve been able to connect with so many people that we would never otherwise been able to connect with. Its a perfect way to showcase the product for people who may not have ever walked in to the store. People go upstairs and they know that theyre not going to be sold to but theyre reminded of all the beautiful things that we make. For mott m. Gemi and parachute most customers still find them for the first time online. But if things keep going the way theyre heading, the old school in person experience with a modern twist is going to continue to be a part of their growth. Today, theres so many brands and so many people trying to sell the same thing in order to stand out and really connect with customers. You have to do something different. One of the important parts of working retail is not allowing the experience to get stale. You cant allow the experience to become expected. And you really need to create something that people want to be a part of. And being flexible, and agile, i think, is the key. One small town says shop local starts with work local. And to keep their main street vibrant, this town has made an allout bid to transform the economy from manufacturing to text thanks in part to the efforts of some farsided planners and one of the wealthiest women in the state. We went to beloit, wisconsin, to find out how thats working. Ten years ago beloit, wisconsin, was in trouble. Ten years ago, wed go to lunch, there would be nobody at the restaurant. We could come and work on sundays and sit outside and watch no one drive down the streets. Growing up if you wanted to do something you left beloit. To understand why, just look around the town. You see powerful smoke stacks. Brick factory buildings. And imposing store fronts. Structures that once symbolized the pride of downtown america. Now, for most of us, these represent nothing more than long neglected icons of rust belt obsolescence. Well, today, the town of beloit is scraping off the rust and reconfiguring those Old Buildings into centers for new Tech Industry. And if we redo that, i think that might be the best path. Theyre repurposing the buildings, and the town, to support tech sector jobs that now drive todays economy. You have to remake yourself. And thats what were doing here in beloit. This is never going to be a heavy manufacturing city again. Diane hendricks is one of the town leaders making this possible. You cant fix downtown without jobs. As a key actor in the local business community, she wants her energy, and her money, to do more than rehab a few Old Buildings. She wants to rehab the towns whole economy. Not just build the buildings and make it look pretty. But put lives in there. She and her late husband ken made billions in the Construction Supply industry. They then applied their skills, and millions of their own dollars, into buying up many of those neglected buildings. Today, she and the town are bringing in Tech Industry tenants to replace the long gone manufacturers. The town is transitioning. Its going through a digital transformation. You know, were literally in the remnants of a factory. And now we have people Programming Software code. Troy is part of that transition. As a tech startup investor, he says the developing beloit economy is itself a kind of startup. Were creating a vibrant startup hub that is going to only increase in prominence. Weve got new restaurants. We have new businesses and theres 2,000 something employees in this building now. And just five, six years ago there was a couple hundred. Richard is the founder of acculynx. Com a multimillion dollar Systems Software company. While he could have easily located the business in silicon valley, his Strong Family ties to beloit, and this building in particular, have kept him close to home as an anchor tenant in dianes iron tech incubator. I was born at beloit hospital. My dad went to beloit memorial high school. My grandpa worked in this building, actually, for a Company CalledBeloit Corporation for 42 years. Being part of the rebirth of this towns economy is a point of pride. Not everybody wants to move to california, or boston, or new york. I mean, theyre great communities. Theyre great cities. But its also nice here in the midwest. They didnt just fix it up. They elevated it to chicago high end office space. And the companies started coming. We actually are going to rent 20,000 square feet from them next year. Just signed the lease. Steve edred is the fourth generation owner of beloits national bank. He says dianes enthusiasm has energized Business Owners like himself to expedite and refine earlier redevelopment plans, begun by this father and others 20 years ago. Shell tear down a building downtown, and i may own a building across the street, and shell call and say you need to renovate your building. So then ill renovate a building or renovate two buildings. And then i call her and say, you need to renovate one across the road from me. So it becomes very competitive. That sounds like somebody i know, but his name is steve. We compete a little bit. And its fun. A little bit of that competition is great. Its actually helped things grow even further. Rob is the president and ceo of Hendricks Commercial properties. The real estate arm of dianes sprawling business interests. He says beyond the refurbished buildings, tech tenants also require an updated main street. Definitely its not just fixing up an old building. Thats the easy part. Having the restaurants, having the gift shops, having the hotels, is highly important. You need to bring the employees and put life within those buildings. And thats the key component that has made what were doing in beloit so successful. Were seeing an increase in business from those people that are coming to work here, along with the fact that people are now traveling here, so theres business travelers that come to town. Jackies stand witch shop book store pickle factory may look a little rough around the edges but she says not only does her business bushel and peck benefit from the growing tech economy but her rehabbed location is also what draws those tech businesses into town. The relationship goes both ways. We benefit the recruitment of those employees that are going to come to work in this community. They need innovation in what theyre seeing in their personal lives too. I think theres definitely a ripple effect. They identified their problems, they understood what they were, and they worked together. Marjorie driscoll and her husband brendan recently located their startup images business peer canvas in the beloit iron tech incubator. Theyre grateful for the commitment made by the towns Business Leaders to rebuilding the local business community. Im sure they had some ideas but they probably have no idea how far reaching what they do meebs. And to be a part of bringing it back, i mean that gives me goose bumps. It can be tough for local businesses to break through all of the noise during the Holiday Season. So teaming up with other businesses for Small Business saturday can be a great way to encourage shoppers to shop local. Here with some strategies to help you band together with other businesses are rhonda abrams, a usa today columnist and president and founder of planning shop a Publishing Company that creates content about business, planning, and entrepreneurship. It is so good to see you, rhonda. Hello, j. J. Its always nice to be with you. All right. You have been working with small Business Owners for many, many years, and so you are the expert. On this very topic. Lets talk about how you get them to work together. Well, first of all, lets talk about Small Business saturday which is right in front of me here. And it is my favorite holiday of the year, basically. For almost almost a decade, about eight years now, it has really become the day that reminds people during the busy Holiday Season to go out there and shop small. The saturday after thanksgiving has now become the day to shop small, and its also brought small Business Owners together as youve mentioned. One of the great things about Small Business saturday is the ability for business districts, Small Businesses in an area, to come together to make their area destination. Lets talk about some of the events you can have one suggestion ive heard you say is plan something for children which i think is brilliant. Because, its saturday. And you want to be with your kids on saturday. Right . Youre working all week. Or, or you know they dont have school that day, and so that gives you a chance to shop while theyre doing something else. Well, its also the saturday after thanksgiving so youve all been around one another a long time. So youre ready to get out of the house and go do something. So neighborhoods that have pulled together and done something for kids can be something as simple as face painting. You know, having doughnuts. Having various different kinds of things. Anything will draw a parent out to come out and do things with their kids, and then draw shoppers in to your own neighborhood. Im holding up my little shop small love. I like your heart there. Show the love. There it is. It is my heart. Shopsmall. Com. And shopsmall or smallbizsaturday are things to make sure youre putting on your social media. I love this idea of getting together with other businesses to put together some gift package and maybe its that you get something and its like, you pay for it one place and you go to the sfa here and the restaurant here, and pick up a gift here so that it gets you in to many Different Stores. I love getting not only does it get you into many Different Stores but remember, a small retailers are really always having to come up with creative ways to fight those big Online Companies that they have to go after. And by pulling together bundles, whether its within your own store, or even creatively among a number of different kinds of businesses in a neighborhood, you know, you might do a nail salon, a spa, or a hair salon and a spa. You might do a restaurant with a cooking store, to have a variety of different packages together. A bundle of Gift Certificates that gets people into a number of Different Stores. Gets them shopping to the. Gets money into all those stores pockets and its something you cannot buy online. And then finally, a last idea to get people in many stores is a passport program. Something where you get stamped at each place. And you can get that material online at shopsmall. Com. And ive seen this done in ashland, oregon, a couple years ago and they had a passport and each of the different businesses that were participating offered a discount, but when you filled in your whole passport, got starves at each store that you went to, then you got a special present, might have been a tote bag like shop small. You know rhonda, i feel like what else is going to come out of your magic hat that you have there sitting on your lap. All right. I have so much shop small swag i just love it all. Its all going to be falling out of your jacket as you get up. I love seeing you. One last i want to give you one second to give a shoutout to your favorite independent store that youre going to be shopping at on Small Business saturday . Well, i love them all. But probably a book store. Because independent bookstores are really great. Probably be going to templers and buying a whole bunch of gifts for the holidays. All right, rhonda, happy Small Business saturday. Have a fabulous season and hopefully well see you soon. You, too. Thanks, j. J. It is important as a Business Owner or a Decision Maker to stay on top of whats going on in your industry, and in the world at large. So here are five easy ways to make sure your company is staying current. One, watch web videos. Youtube has exploded with expert users generated content on just about everything. So if youre trying to figure something out, chances are youll be able to find the answer. Two, look at your own sales trends. Are a lot of people buying things they didnt buy before. Are they asking for something new . Monitor your sales and up your customers to identify new trends. Three, read trade magazines. Its not enough to just subscribe to the trade magazines. Read them. They are dedicated to giving you targeted actionable information. Four, track your competitors. Check to see if theyre investing in new products or services. Or if theres a place for you to fill a void to do something better. And five, follow Industry Leaders on social media. You can get uptothe minute information on just about everything. Use it strategically and follow the right people to stay ahead of the curve. Were here in sams club in secaucus, new jersey t