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Main Street Reimagined Podcast
This is a podcast for dreamers, creators, developers, and entrepreneurs to learn, share, and be inspired to change your community through small business.
Main Street Reimagined Podcast
Episode 4: From Passion to Profit...Starting a Successful Retail Business with Luke Henry
What if you could turn your passion into a thriving retail business? Join me, Luke Henry, as I guide you through the essentials of starting your own venture on this special solo episode of the Main Street Reimagined podcast. We revisit crucial insights from our first three episodes, highlighting the Japanese concept of Ikigai—a harmonious blend of what you love, what the world needs, what you excel at, and what you can be paid for. Learn the foundational elements of a successful business plan, including pinpointing your target customer, defining your unique product, and crafting an effective marketing strategy. Discover invaluable resources like business plan competitions and the Small Business Development Center (SBDC) to help you secure funding and bring your vision to life.
But that's not all—taking a step beyond planning, we delve into the practicality of testing your product. Learn how to leverage low-risk environments such as craft shows and pop-up shops to gather essential feedback and refine your concept before making significant investments. Understand the deeper motivations behind customer purchases and the importance of continuous self-education through various resources and visits to similar businesses. Finally, we underscore the vital role of community support in revitalizing small-town downtowns, especially across Ohio and beyond. Your participation and shared belief in this mission can spark growth and innovation in these cherished local areas. Thank you for being an integral part of our community and for your unwavering support in fostering positive change.
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Henry Development Group:
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Luke Henry:
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Hey friends, luke Henry here with the Main Street Reimagined podcast, and this is a special solo episode. So this is our fourth episode and what I wanted to do was just go back through and take away some key points from our first three episodes. Our first three guests, I think, really brought a lot of value. I hope that you loved hearing their stories as much as I did and just hearing their passion, hearing their passion for the work they're doing and the places that they've created and the teams that they're building and their plans for the future. So it's really exciting and I'd like to think that somebody out there has been listening and thinking about a dream that they've had. Maybe you are discovering this a few years in the future even, and you've listened to these episodes and it's got your wheels spinning about possibilities for your business or a business that you could start. Maybe you've dreamed of something and this podcast is helping lead you in that direction, and maybe you're thinking about taking the leap. So what I wanted to do I just jotted down a few notes from our first few episodes and I want to talk about what it takes from what we've learned and what I've learned in working with a number of different tenants and also launching some retail businesses myself to get a retail business started. So here goes Number one start with a product or products you can really be passionate about and we heard about this from really from all three guests, where they connected with a certain product that really lit them up, that they could be passionate about and that they could talk to others passionately about. So it's not selling when you are so passionate about something and you're able to serve people, you're able to connect them with what your product can do to make their lives better. So this reminded me of a concept, a Japanese concept, of ikigai. So maybe you've heard of this, but basically it's four things that go together and this is a great way to think about what would be a good business for you and especially, you know we're talking in the world of retail.
Speaker 1:So first is what you love. Second is what the world needs, or maybe more specifically, if you're looking at it. What the world needs, or maybe more specifically, if you're looking at something in a smaller community or brick and mortar what does your community need? What are you great at is number three. And then number four what can you be paid for? So, what you love, what the world needs, what you're good at, what you can be paid for. World needs what you're good at, what you can be paid for, and the place where those all overlap is this concept of Ikigai. That's the winner, that's the thing that could really bring value to others, bring value to you, be a viable business and something that you could operate long term because it's something you're good at and you're passionate about. So that's a great filter to run these ideas through if you're considering an idea for a retail business.
Speaker 1:So next is to put together a business plan. Now, this doesn't have to be something super fancy, but something special happens when you start to write out your plans. You know sometimes you have kind of these just like nebulous ideas that are floating around. And when you start to actually write it out, put pen to paper or type it out, who is your customer going to be? What product are you going to offer? Or product suite of products? Where are you going to buy them? What are you going to sell them for? Are you going to make them or buy them? How much are you going to sell them for? How much are you going to buy them for? Is that gross margin going to be something that is sustainable? Are you going to be a sell enough by building out an expense plan? What is rent utilities if you're going to have people working for you? How many hours are you going to be open times? What do you need to pay those people? That can give you a rough idea of what weekly costs you're going to need for payroll, what equipment, fixtures, supplies, those sorts of things. So you build out a budget. Just that basic information. How are you going to market your business? How are you going to make sure that people know about you? How are you going to get people in and how are you going to bring them back? So those are just some general concepts. Obviously, you can get kind of a framework on the internet if you wanted to put a business plan together that way.
Speaker 1:We talked on the episode with Chris Rennick about his experience with the Forge business plan competition, which is a kind of like a pitch competition that is offered here in Marion once a year. Something like that exists in some other communities, so if you're in another area, that might be something that you look into. Or we have locally the SBDC, that's the Small Business Development Center, and these are centers. They're throughout Ohio and they're kind of broken into different regions, and there's individuals at the SBDC who will help you write a business plan. It's one of the main things that they're there for is to help with this step in the planning process and help you really to flesh out some of these details.
Speaker 1:So those really, more than anything, help you flesh out your ideas, think through a lot of the details, take it from concept down to some concrete principles, and also help to inform how much money is going to be needed for this venture, and so then you can get into looking at what do you have in savings that you can put towards this? What might you be able to get financed through a bank, and those especially you know banks typically will help with. Things like equipment is something that you often can get. Bank financing for Friends and family might be another source of funding to get this business going. Unfortunately, a lot of people have this idea that there's like all these different kind of grants and stuff out there to start a new business, and while there is a little bit of that, some of those are very niche for different areas, different demographics, and so they often don't widely apply, and so you're likely going to need to look at different funding sources, but as you build out this plan, you're going to be able to help. You're going to be able to see how much money is needed. So once you get past the business plan step, the next is that I really recommend people do is to test your concept.
Speaker 1:So again, we heard about this in our episodes Chef Chris. He went out and started catering. He started taking food to people, both for free and for money, and getting their feedback, and that gave him a great short feedback loop on what he was offering, what price he could get for those items and whether people actually liked them. Is this a viable business? He had a theory that Marion, ohio, was a great opportunity for comfort food, and he needed to get out and actually give that a shot, though, and see if people were going to pay for that food. And going out and doing that without investing all the money and sinking life savings and bank loans and stuff into launching a restaurant. He could test his concept first in a much less risk situation to be able to do that.
Speaker 1:Chelsea talked about how she started her business online. She started it with an online boutique and starting to just start with a small amount of pieces and products and sizes and just see what the market told her, and she had those offerings online. She talked about how she would do Facebook Lives and sell that way kind of display the product and again, very short feedback loop where if something didn't sell or people said they don't really care for that or they need that in a different size or really would prefer that in a different color, she starts to get this feedback from her customers and can test her concept. So those are great options.
Speaker 1:Some other things that we kind of touched on and that I've heard from others is if you're making a product, get that out and get it to craft shows, handmade markets, pop-up shops. You know we've offered a lot of those different opportunities through our time in getting concepts going in downtown Marion. So if you're making a product, hey, we'd like to connect with you, and if you're in a different market, there's others that would like to connect with you to allow you an outlet to sell that product at a. You know these are typically like low, like booth rent situations. You're going somewhere for a day or a weekend or maybe a week or a month, even where you can for a lot less money than signing a long term lease and really jumping in the deep end. Right away. You can test your concept and see how it goes, you can get feedback and you can also try different kind of niche markets and see how your product performs in those areas. And so see about testing your concept and starting with like the minimal viable product I call it, or the minimal viable model, where you can get it out there.
Speaker 1:And I think the really important piece of it is will people actually pay for what you're selling? I heard about a study in a book or something a while back where they talked about they were doing some testing and they had I think it was a clock, and so they took it around to people and they said hey, here's this clock, here's all the features of it, all the bells and whistles. Would you pay $20 for this clock? Do you think that that's a fair price $20 for this clock and most people said yes, and so they made note of that. And then they said, ok, would you pay us right now, $20 for this clock? And very few, if any people actually did the transaction, and so I think that's another way that you can really see if people are willing to put their money where their mouth is.
Speaker 1:And oftentimes people will tell you one thing and they'll say, yeah, yeah, I think that's a great idea, or yeah, our community needs that, or yeah, that seems like something that people would like. But until you actually get out there and have people trade money for whatever it is that you're selling, you don't actually know. And so if you can get out and do something on a minimally viable basis before you launch into building an entire store or brand around that, that's going to be really, really helpful. So I just want to I've said this two or three different times but in this phase of things and really throughout your entire business, if you're going to be successful, you have to be able to get feedback, and you need to be able to receive that feedback in a way that you don't get defensive, you don't take it personally. People don't like your product or your idea. People are giving you a great gift when they give you feedback constructively, because most likely they're telling you something that's going to help you and it's going to probably prevent you from getting like lit up by the the keyboard warriors on Facebook or Google reviews when you actually launch if you get and receive that feedback early on in the process and can put it to work. And so feedback is so crucial. It allows you to learn about who your customer is and what they want, and, again, I think all of our guests so far have alluded to that. That part of their journey has been learning about their customer and responding to that customer's feedback and their needs. Chelsea and Jenny both talked about it quite a bit, and also they talked about what a joy it is for them to be able to connect with their customers and really learn who they are, and not just what they want, but why they want it, and that is such a critical piece to understand as well.
Speaker 1:Why is it that people are buying your product or service? There's a reason, and oftentimes it's maybe not as obvious as it might seem. So for a restaurant. Why are people buying your product? Well, they're hungry. Well, maybe that's part of it. Oftentimes they're going to come in, they're going to be hungry, but most likely they want your specific product because they're maybe celebrating a birthday or an anniversary or a special event, and so they're coming into your restaurant, and so the way that you treat them, the hospitality that you have is important, the main reason that they're there. The food might even be secondary, but they're coming there for the way that you make them feel. That's the real why.
Speaker 1:With clothing, we talked about this with Chelsea, where people are coming in, yes, superficially they're coming in to get clothes or to buy a gift, but what they're really maybe underneath of that, the why is because they want to feel a certain way, they want to feel confident, they want to feel beautiful, and if you can help them do that through clothing, then you're giving them a great gift. And, of course, in exchange, they're giving you a gift as well by being your customer and hopefully you're creating customers for life or for a long term because of the way that you really understand the why and you can build your process. You can build your store, you can build your experience around the why beneath the what. The what is the product, but the why is that deeper meaning that people are wanting from the experience that you're giving them. So really understand that.
Speaker 1:So next in the process is just to educate yourself, and of course, there's so many resources. We touched on a few of those that were shared by our guests, so if you didn't catch those, you can listen back through guests. So if you didn't catch those, you can listen back through. But also, just you know, as we all know, there's a ton of information on the internet, on YouTube. There's specific podcasts that are created just to you know, really getting in the weeds of certain types of retail or restaurant, and so look up those resources.
Speaker 1:And what I really recommend and again we heard this from our guests is going to similar businesses in other communities Maybe it's different towns in Ohio, maybe it's completely different states or even countries where you're getting inspired, you're learning from them, you're seeing what works, you're looking at their space, you're looking at their product mix, you're talking to the owner of that business and they're telling you some of their secrets, some of their, their kind of battle, hardened lessons that they've learned, and people are generally very open, especially if you're in a non competitive space. You know, if you're in a non-competitive space, if you're 100 miles away or 50 miles away or even less from where you would be opening a business, and you're asking them some questions about their store, they're most likely going to be happy to help you, and so that can be so valuable. And some of those individuals. We've even seen where they've offered some services maybe for free or maybe for a fee to help you launch your business because you really like their model or you really feel like working with them would shorten the amount of time that it would take you to launch something, and so those can be really great options as well. So, educate yourself, really understand what it is that you're looking for.
Speaker 1:And that goes into our next point, which is finding the right space. And again, I think this is one of those things that, as you observe places, you might pick up on nuance and how much space they have allocated for this or that, or how big their back room is or other small items like that. But really talking with someone who's operating a business day in and day out, their experience they can really help guide you on some of those finer points, and so I think that that is really important to learn from them, to question them. So, again, if it's a restaurant or retail, how much room do you need for seating for kitchen space? If you're looking for spaces, is the plumbing that you need or the handicap accessibility or the clear height for the ceiling adequate for what you need to be able to do with that space and we talked pretty extensively with Jenny Lust as well in her interview that her space being historic being high ceilings, pressed tin, beautiful lighting and natural light and the windows that we added for her space, that those really worked in concert with the product she was offering, and so the space was so critical as a piece of the vision that she had for her place and, again, ultimately creating an experience for her customer that's going to make them feel a certain way and make them want to come and then come back frequently, and that's part of what's driven a lot of her success is she has two stores that have an absolutely beautiful physical space that complements her product and vice versa.
Speaker 1:To create that experience. We talked about it with Chef Chris, with Atta Boys and the space that they have. These would be much, much different experiences if they were in a strip mall or a sheetrock box somewhere. That's, that's just. You know all white walls and there's, you know, no kind of soul or special aspect to it. So that's really important for you to see the space, to understand the parking dynamic, the traffic dynamic, the signage, availability and just learning what it is that you need to look for and to move forward with that.
Speaker 1:So one way that we work with our teams with Main Street Reimagined, which is part of our Henry Development Group, is we work with potential entrepreneurs here in downtown Marion to create, to help them kind of flesh out their businesses. We share some of our best practices that we've learned from operating these different types of small businesses as well as tenants that we have that are operating maybe similar type businesses, and then we've also networked pretty extensively with people that are running businesses in other communities too. That we've learned from that we can connect those people from as potential suppliers, mentors, advisors, and trying to make sure that we're doing everything that we can to make them successful. We can also help in many cases with some private or bank financing and helping make connections there to help the financing piece of it, whether it's for build out, for the space or whether it's for hard assets like equipment, furniture, fixtures, that sort of thing. And that's a really unique model because a lot of landlords, especially if you go to bigger cities or you're working with strip malls or larger landlords, they're going to throw you the keys, say, hey, sign the three or five year lease. Here's the keys. Any improvements you want to do any inventory, any kind of prep you need to do running the business. That's all on you. Good luck to you.
Speaker 1:Make sure you send us the rent by the first of the month, and we've really taken an approach where we want to come alongside, help you, resource you, connect you, educate you and then work beside you with the physical space to create something that's going to be really special, because we want to see small businesses be successful. It's in our DNA, it's what I'm passionate about and it's really part of what we're building here in downtown Marion to create these different specialty and unique boutiques, dining experiences, entertainment options, and all of these take passionate, special people that are operating these businesses, but they're often mom and pop operators and maybe it's their first business, maybe they've had some experience in the past, but it's a new venture for them, and so we're trying to make sure that we're doing everything we can to advise and equip and set them up for success. We're not going to meddle, we're not going to get in the middle of the business or run it for you, but we want to share the resources and the lessons that we've learned. So part of that is the reason for launching this podcast and also for doing this little bit of a solo episode and summary of some of the lessons that we unpacked by talking with some of our local business owners who are just doing a fantastic job. Are they perfect? No, they make mistakes, they're continually learning and I have a lot of those conversations with them on a regular basis, just about them sharing feedback. They've received mistakes they've made and pivots that they're making to do better as they go forward, and that's all that any of us can do to improve our businesses. So those are some steps that hopefully are helpful to outline to you if you or someone you know is looking at starting a small business, particularly I've used a lot of examples around retail or restaurant type businesses. But you get to that point and eventually it's going to be where it's time to take the leap.
Speaker 1:And we've had that segment in every show where we've talked about the emotion that comes with that and you're prepared and you've done everything you can. But then there comes a point where you've got to take the leap and I encourage you to do that. If you've went through these steps and you've seen the success, you've truly worked through these things and it's time to go all in things and it's time to go all in. I want to encourage you to do that. We're going to have a lot more different guests and discussions coming up that'll cover a lot more topics. We'll probably cover some of these types of concepts in different contexts. We'll talk about operating businesses. We'll talk about developing. We'll delve into working with community partners, whether the Chamber of Commerce, the Convention and Visitors Bureau, different agencies like that that are working also alongside small businesses, and so we look forward to a lot of those great conversations. So I hope that this has been helpful. I hope that you're enjoying these episodes so far and that you'll stick with us as we continue to build into additional interviews here, and I'm excited to bring them to you.
Speaker 1:So thanks again for listening to the Main Street Reimagined podcast. I ask you once again a personal favor to me if this has been helpful, if you'll share it with somebody who you might know that it would benefit. Again, they don't have to be local to the area here. I think that this message and this type of work is so critical to lots of different small towns and communities around Ohio and beyond, throughout the United States, because I go to a lot of these towns and I see the downtowns that need some love. They need people to believe in them, they need entrepreneurs to step up and do some of these things that we're talking about and bring some wonderful things to the world and to those specific communities in particular. So thanks again for being part of our community here and listening in. I hope that you'll continue to Thanks again.