d137-Business Association

Business Owners Association

Business associations are formed in the hopes that coordinated effort will result in positive gains for all businesses. They are not meant to be regulators or enforcers, but are organizations which represent and speak for business owners directly.

Every downtown business owner has a stake in its survival and viability. It must be recognized that there is much to gain, and little to lose, in working cooperatively through a business owner's association to enhance the commercial environment of this district.

The aim of a business owner's association should include being "pro-active" rather than "reactive." Instead of waiting for problems or circumstances to arise, and then dealing with them, an association should establish a set of general goals and specific objectives which pro-actively encourage positive change.

To gauge the effectiveness of an association, it is necessary to have a clear understanding of what constitutes "effectiveness." An association may be said to be effective:

when the major complaints of its members have been satisfied;
when it is of greater advantage to the individual merchant to pay something for what he gets from it than it is for him to remain out of it.
when it is clear to the membership that the Association serves a utilitarian purpose and everyone recognizes and accepts both the goals and limitations of the organization.
when the trend toward area deterioration and subsequent business decline typical of stores in a highway commercial district has been halted or reversed; with positive gains made in other endeavors.
when a single voice represents the varied interests within the Association's membership; and the cooperation and support of government officials and departments, so necessary to the success of the district, is achieved.
when a level of accomplishment has been realized so that the desperate need for an Association no longer exists and yet the Association remains an active, functional mechanism which, by its very existence, prevents new problems.
when a spirit of mutual purpose, friendship and cooperation is created among businesspeople, replacing a petty internal competition; and as such reaffirms the idea that the strength of the whole is greater than the strength of the sum total of the individual parts.
when the local residents and merchants feel part of an overall, mutually benefitting community; and when there is an enlightened realization of the business interests who back the Association that the health of the commercial district depends in major part upon the health of the entire community in which it is located."¹

This type of organization can provide tremendous impetus for a coordinated program of change and revitalization. When members of an Association's Board are primarily downtown property and business owners, the Association has the best chance of both representing the interests of others in the downtwon and also encouraging others to cooperate with revitalization strategies. A program for change should come from within the structure of the business community, and not necessarily from consultants or local officials. However, the Association Board should include one or two local officials as members as a way to encourage linkage between private and public interests.

A business owner's association should meet on a regular basis, even if not often. Anything from a monthly breakfast meeting to a quarterly general membership meeting may be appropriate, but each meeting should be structured to include specific, goal-related and measurable objectives.

The activities of the Association may include:

Membership: A goal should be that at least one-third of the downtown's businesses be represented as regular dues-paying members of the association. Dues need not be high, and should be seen primarily as a token of commitment by a business owner to the association.
Regular communications: Either through regular general meetings or an association newsletter, all of the business community should be kept aware of activities that would have an impact on the downtown, including new businesses, physical improvements, regulatory or program changes from local or state government, etc.
Promotions: A series of seasonal promotional campaigns should be coordinated by the association. These may include the use of a district promotions "logo," the use of coordinated signage, the institution of special hours during special promotions, etc. Promotions may also include promoting the district in general as a place for new businesses to locate.
Business retention and development: With the recognition that healthy business promotes the health of other businesses, a system of advising new business owners on business practices and techniques would be beneficial. This could simply be a listing of "veteran" businesspeople who would be willing to share their experience with new entrepreneurs. Like a Welcome Wagon, such a policy promotes good personal and business relationships.
Self-regulation of standards: Local government has ordinances and regulations which control and regulate the business environment. Although business owners sometimes feel these are in conflict with their own interests, the association should take an active role in proposing modifications to these ordinances and regulations (e.g., the sign ordinance) where it is appropriate to their own long-term goals, and then encourage self-regulation among its own members.
Awards program: An effective incentive for business owners is to receive recognition for good deeds. A liberal use of annual awards would encourage a positive atmosphere among association members. Awards could be given for physical improvements, promotional ideas, even community service, and recognition given with articles in the local press or in an association newsletter.

Following are sample objectives for a business association.

Objectives:

To foster and advance the interests of those who are engaged in or who are directly or indirectly connected with commercial, financial and professional undertakings and endeavors in the downtown district.
To represent the members of the association in any matters pertaining to or affecting their business or professional undertakings and endeavors in the district.
To support, oppose or promote, as the case may be, any contemplated legislation by local or state government insofar as it may affect the district.
To endeavor to achieve a closer relationship and a better understanding among the association members and local government.
To endeavor to settle differences among association members and to promote good relations and a closer understanding between the members and the community.
To cooperate with other organizations which have objectives similar in whole or in part to the objectives of the association.
To collect money by way of donations or membership fees, as permitted by law, to use to further enhance the objectives of the association. ²

¹ Ted Silberberg, et.al. 1976. The Guide of The Revitalization of Retail Districts. Project: Saving Small Businesses, Toronto. p. 16.
² Adapted from Downtown London (Ontario) Association: Objectives and Constitution. 1972.

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