Fixing Broken Business Associations: Cliques, Cash, and Chaos

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Local businesses face many challenges, so the roles of downtown associations, chambers of commerce, and business alliances have never been more important.

Yet over and over, I hear of low participation with finger-pointing about who is not doing what.

How can these organizations, created to unite people, better serve their members and communities? I asked business owners to share their thoughts on improving local business associations. Their illuminating responses revealed common frustrations and innovative ideas for positive change.

Boosting Participation and Engagement

One of the most prevalent themes in the responses was the need for increased participation and engagement from all members. Many business owners felt that the success of these organizations hinges on active involvement from the entire business community.

Rachelle Trefz succinctly stated the core issue: "Participate and attend meetings. Not expect everything done for them." This sentiment was echoed by several others, highlighting the importance of showing up and contributing. Many feel the burden of involvement often falls on a select few, leading to burnout and limited perspectives.

Cyndi Edelman Rich expanded on this, pointing out the financial aspect of participation: "Understanding that it takes some skin in the game for everyone if you really want to affect change. I've experienced it several times when many businesses complain about lack of business, foot traffic, etc., but are unwilling to contribute funds to promote the businesses, etc. They want someone else to do it so they can benefit from it. It's exhausting."

I spoke at a community gathering in Virginia, and a participant asked me the loaded question: "Isn't it the Downtown Association's job to bring visitors to make my business better?" I responded, "No, it's your job to bring visitors to make all of you better." 

There is no magic, but there can be fabulous collaborations like the Historic Kennet Summerfest, which became a ticketed event because demand was so great.

However, one or two businesses or one executive director can't put something like that together unless everyone sees the value before the plan is executed.

To address this, business associations could consider:
• Implementing a rotation system for event planning and committee leadership
• Offering incentives for active participation
• Regularly surveying members to ensure activities align with their needs and interests

Fostering Collaboration and Community Spirit

Another key theme was fostering collaboration rather than competition among local businesses. Many respondents emphasized the need for a united front to support the local economy.

Ginger Cook Bauer captured this idea: "Don't think of it as a pie that has to be divided up. Work together to make more pie." This metaphor effectively illustrates the potential for collective growth in trade when businesses support each other.

Rachelle Trefz reinforced this point, stating, "Also, getting shops to understand there is 'Power in numbers'. Community over competition!" This mindset shift could lead to more coordinated marketing, events, and customer service efforts across the business community.

Once Is Not Enough Boutique highlighted the importance of leading by example: "I notice that the younger business owners need to promote buying small/local to their own family, especially their Gen Z kids, their staff, their city councilors, the government-funded workers, i.e., nurses, teachers, etc. Business owners era have to walk the talk!"

To nurture this collaborative spirit, associations could:
• Organize cross-promotional events between complementary businesses
• Create a mentorship program pairing established businesses with newcomers

Implementing Operational Improvements

Many respondents pointed out specific operational changes that could significantly improve the effectiveness of their business associations. These suggestions ranged from adjusting business hours to enhancing communication strategies.

Josh Umhoefer emphasized the importance of reliability on members of business organizations: "Posted open hours on the door (and online) and reliably followed them." This simple yet crucial practice can greatly enhance customer trust and satisfaction across the business community.

Kira Connally echoed this sentiment, suggesting businesses "Kept consistent hours and enough of them?" Consistent operating hours across a business district can help maintain steady foot traffic and improve the overall shopping experience.

Garnetta Sullivan raised an often-overlooked issue: "Quit parking on the street in front of their business neighbors and taking up all the parking that should be for customers." This highlights the need for business owners to consider the broader impact of their actions on the entire business district.

This is one of the most significant ways to say, "I'm in it for me alone," when an owner takes up a space customers would want on the street. You can't demand that people build a new parking lot for shoppers, but you can find ways for business owners to work together to solve the age-old problem of parking their own vehicles.

To address these operational concerns, associations could:
• Develop and promote standardized business hours for the district
• Implement a parking management plan that prioritizes customer access and encourages ridesharing
• Create a communication channel for quickly disseminating important information to all members

Enhancing Leadership and Governance

The responses revealed a desire for more effective and representative leadership within business associations. Many felt that current leadership structures were outdated or unresponsive to the needs of the broader business community.

Diane De Witt Moore provided a detailed critique: "Get rid of the dead weight. There are people on the board who have retired from whatever job they had in the town and are gone all winter who are still on the board and who are so out of touch that a big chunk of every meeting is trying to bring them up to speed." This highlights the need for engaged, present leadership that truly understands the current business landscape.

Amy Samuels Rowbury called for more proactive leadership: "I spoke up, spoke out, and got the Chamber to actually do something to help our small businesses." She further critiqued her local chamber's focus, suggesting a disconnect between its activities and the needs of small businesses.

A particularly poignant example comes from Alderson's Store, who shared a troubling experience: "None of the heads of our local Main Street organization own a business. I have only seen a couple of them shop in my store a couple of times." They further described a disconnect between leadership and local businesses. They recounted how a former president admitted to doing all their holiday shopping online, seemingly unaware of the impact on local retailers. This anecdote starkly illustrates the need for leadership that understands and actively supports the local business community.

To improve leadership and governance, associations might consider:
• Implementing term limits for board members to ensure fresh perspectives
• Creating advisory committees of active business owners to inform board decisions
• Regularly reassessing the organization's mission and activities to ensure alignment with member needs
• Ensuring leadership positions are filled by individuals with direct experience in local business ownership or management

Promoting Inclusivity and Representation

A final theme that emerged was the need for greater inclusivity and fair representation within business associations. Several respondents felt that certain businesses or areas were prioritized over others, leading to feelings of exclusion.

Kevin J. Coolidge pointed out a common issue: "Ours is pretty much a clique. It also ignores most things not on Main St." Others echoed this sentiment, feeling that their business associations were too focused on specific areas or types of businesses.

Heather Miller said, "I feel that the only people who benefit from the chamber are the restaurant owners. They have events at the restaurants, and everybody gets together and has cocktails/food, so they support the local restaurants but not any of the retail stores."

Diane De Witt Moore added, "I automatically belong to my Downtown Wheaton Association because I own my building. If I had to pay, I wouldn’t. I had been on the board but was not reelected because I wanted accountability. We’d spend money on consultants and NEVER implement anything (and because an old fart owned eight buildings and got eight votes). I participate in all of the activities—wine walks, trick or treating, scavenger hunts, etc. The retail committee hasn’t met since pre-pandemic. We used to meet monthly."

Property owners find it especially hard to move off the "Wait and see" game of leaving buildings to decay and not fix up because the owners see it as a foolproof investment.

It isn't if they don't keep it up. If enough people don't come to the trade area, the entire area - and their original investment - is at risk.

Muldoons Mens Wear shared a personal experience highlighting this problem: "The problem with our Chamber of Commerce here in Eau Claire, Wisconsin, is that it concentrates on downtown while I'm up here on Hastings Way and probably the only one that joins the chamber." This underscores the importance of considering all member businesses, regardless of their location within the community.

Alderson's Store also highlighted how some organizations may resist change, even at the cost of valuable resources: "The organization left the National Main Street organization years ago because they didn't want to follow the rules. They had an AmeriCorps position where the person started some festivals, but they dropped it because they didn't want to follow the rules." This resistance to external guidance and structure can limit an organization's effectiveness and ability to serve its members.

To promote greater inclusivity, associations could:
• Conduct outreach to underrepresented business sectors or geographic areas
• Rotate meeting and event locations to different parts of the community
• Ensure diverse representation on the board and committees
• Regularly reassessing the organization's affiliations and programs to ensure they provide maximum benefit to members


A Call to Action for Stronger Business Communities

The insights these business owners share paint a clear picture of the challenges and opportunities facing local business associations. These organizations can better serve their members and strengthen their local economies by focusing on increased participation, fostering collaboration, implementing operational improvements, enhancing leadership, and promoting inclusivity.

Paula Severson, an executive director of a buy local organization, summarized the potential impact well: "By joining, businesses not only contribute financially but also help build a network of support that amplifies local voices, creates collaborative opportunities, and promotes a 'shop local' culture."

Both business associations and their members must heed these insights. By working together, staying adaptable, and focusing on the collective good, we can create thriving business communities that benefit everyone involved.

As Margot Nicolson-Trott wisely suggested, the key is to go beyond complaining and "provide possible solutions to the issues."

It's time for all stakeholders to step up, engage, and actively contribute to improving our local business ecosystems.