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September 8, 2006

Big Box Swindle

What is a local, independent business, really...

Is there a standard definition of what a local, independent business is? Or in other words, when does an independent business become a chain? There's probably no better person to ask than Stacy Mitchell, a senior researcher at the Institute for Local Self-Reliance and author of the just-released Big Box Swindle: The True Cost of Mega-Retailers and the Fight for America's Independent Businesses.

An excerpt from the book:
"There is no commonly agreed upon definition, but in this book, a locally owned, independent business is majority owned by one or more people who live in the community, who have full decision-making power over the business and operate few enough outlets that they remain personally connected to their employees and customers. This excludes most franchise outlets, like McDonald's and Subway. These are ostensibly owned by a local entrepreneur, who invests time and money in the business, but does not have full decision-making power and must follow rules handed down by the franchise corporation, which also takes a share of the profit. As for the last characteristic, there is no hard and fast rule about the number of outlets before a independent business begins to function more like a chain, but the regular presence of the owner working at the stores is a good sign. Businesses with two to three outlets usually pass the test, and those with more than a dozen rarely do. Those in between might fall on either side." End of excerpt.

Stacy continues, "Many independent business alliances have also created membership definitions. This is the definition my local alliance in Portland, Maine, adopted (it's a variation on a model definition written by AMIBA)":
"The business must be in Portland and must be locally owned and independent. We define those terms as follows:
"Locally owned" means the business is privately held and the owner or the majority of the owners live in, or in close proximity to, Portland at least part of the year. This includes employee- and cooperatively owned businesses, as well as nonprofits, but not government units. The business must be registered in Maine with no corporate headquarters outside of the state.
"Independent" means the owner or owners have full decision-making authority over the business, and the business has no more than 10 outlets, with the majority located in Maine.
"Have full decision-making authority" generally excludes franchises. We picked 10 as the number beyond which you are a chain. It's a subjective call, obviously, but at some point the owner is no longer really engaged with customers and employees, and at that point you lose much of the community and social capital value of local ownership."

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September 7, 2006

Rockland, Maine

A next gen vision for Maine region

Continuing our look at yesterday's entry on Maine's Midcoast Magnet group of proactive creatives and entrepreneurs, here's a look at where they perceive things are, where they'd like it to be, and how they plan to get there.

First, 400 of them were surveyed, and below are percentages of how many of them felt the particular asset was important to whether they stayed or left, followed by what's actually there. You can see why people flee.

Cost of living: 90%
- Perceived as above average: 35%
Higher Education opportunities: 77%
- Perceived as above average: 8%
Job opportunities: 78%
- Perceived as above average: 7%
Places to socialize: 70%
- Perceived as above average: 8%
Diverse population: 66%
- Perceived as above average: 8%

So, what's the plan? 300 of Maine's creatives collaborated over three forums in 2005 to come up with a vision, a pre-cursor to the beta community if you will.

1. Market the Midcoast: Establish a creative class jobs portal and a visionary "hot list" of real estate development opportunities (very beta community)
2. Create cool events: Cult movie night, dinner theater, open mic, outdoor game rooms, progressive book clubs, under-$100 art night...
3. Promote cool creative goings-on: Portal for all arts and entertainment events (kinda like this?)
4. Support more third places: Encourage the development of and patronize third places
5. Build better higher education in the Midcoast: Advocate, advocate, advocate.
6. Develop more accessible housing: Support multi-family housing developments
7. Encourage entrepreneurs: Improve air service, cell phone and wi-fi coverage, and entrepreneurial workplaces.

Any similarities in your community? What would you add to the plan? Do you think they'll achieve their goals? Why or why not?

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September 6, 2006

MidCoast Magnet, Maine

Maine's creative class establishes a group for action

The creative class population of Maine's northern MidCoast region longed for more of the kinds of jobs, housing and entertainment/nightlife they felt was necessary to retain them and attract others to Maine, so they took it upon themselves to make that message clear and established Midcoast Magnet, "a non-profit organization of people dedicated to vibrant culture, entrepreneurship, and bringing people together socially and professionally". The governor was so impressed that he had the state throw in a matching $25,000 grant to help get the group going.

Their goal is to "bring people together to develop innovative projects that support creativity, livablity and economic sustainability" - which is essentially what the CoolTown beta community is all about - establishing a community of future tenants that invest in and design the very buildings they'll eventually move into.

Why is establishing a creative class talent pool so important to the region? As Noah Keteyian, Midcoast Magnet's executive director says, "Companies need to see a talented pool of workers who understand how to work with creativity and innovation. Those are the companies that are fastest moving, that are providing the best jobs."

So, what is the detailed vision of the Magnets (as its members are called), and what is their strategy to get there? More tomorrow.

We profiled another such creative class group previously, CreativeTampaBay.

Do you know of any other similar grassroots groups? Are you interested in starting one in your community? Do you see such a group making a difference?

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September 5, 2006

The Hubworking Centre, London, UK

Free wi-fi office space in the heart of London for entrepreneurs

If you're a member of any one of 29 entrepreneur/business networking organizations, this recently opened workplace - The Hubworking Centre (THC) in downtown London is indeed free. The membership requirement is simply to ensure that it's frequented by people who are running their own businesses, mainly because people enjoy being there to network with other entrepreneurs.

First question I'm sure is, how does the place make money? They do so by charging for the following additional services:
- workstations ($9/hr., $67/day)
- meeting rooms ($9/hr./person)
- permanent mailing address for your business ($47/mo.)
- telephone answering service (by request)
- special networking events
It uses the same business model as FreeConferenceCall.com, eFax, and 800-FREE411 where the basic services are free - really. Oh yes, and the tip is free too.

Still, it's better to get an opinion of the place from someone who's actually a THC member:
"You have done an outstanding job in creating what feels like a sanctuary in the middle of the City - the atmosphere is calm and relaxing, great views, lots of natural light and I really love the artwork on the walls. Last night's networking event was a brilliant success: it all felt seamless, everyone loved the venue and the food was excellent..."

Ok, so maybe the place needs hardwood floors with rugs (to attenuate the noise) and the ceilings need to be a couple of feet higher without the ceiling panels...

What would be an ideal workplace for you as a mobile worker? How far away from home? What kind of events would you like to see?

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September 4, 2006

Enjoy your Labor Day

Or, un-labor day, as it's supposed to be. Perhaps a time to ponder starting your own business if you haven't already?

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