Tom Lunney, Buy Local Cincy

Tom Lunney is a financial investment advisor who works with a number of local initiatives that support and retain small businesses. Lunney is a counselor with SCORE, the counseling arm of the Small Business Administration, and an advisor with Mayor Mallory's Shop 52 initiative, designed to attract and retain businesses in Cincinnati. Inspired by his work with local business owners and a desire to create a better way for them to connect and prosper, Lunney founded Buy Local Cincy.

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Q: You've just launched Buy Local Cincinnati. Could you tell us more about what inspired you and what do you hope to accomplish?

A: My work with local business owners moved me to try and find a solution to their problems that was implementable on the local level.  I was reading the book Switch by Chip and Dan Heath.  In it they discussed what a bunch of high school students did to save their town by asking the local residents to spend 10% of what was already being spent in the local community.  This generated over $15.4 million in revenue for their small town of 1000.  I was impressed that a group of students could do this by just making the town residents aware of the power of Buying Local.  I work with Mayor Mallory on his Shop 52 initiative and this was natural fit for that.

Q: In light of our economy the past two years, have we been successful in increasing small business ownership here and what role does Shop 52 play?

A: No, we have not been successful in increasing small businesses in our area.  Not being able to borrow the necessary funds for startups is only part of the reason.  We are living in a deflation though process.  This means people aren't buying hardly anything now thinking that if they wait the "item" will be cheaper tomorrow.  Merchants have responded and strengthened this idea with the current sales to promote Black Friday business.  Shop 52 is trying to bring to light that small businesses in our community will bring us out of this deflation mindset and have proven to help.  That is the message of Shop 52.

Q: What are Cincinnati's greatest assets in attracting, developing, and grooming sustainable, locally owned businesses?

A: Probably the best asset we have is community pride.  I was totally unaware that we had 52 communities that made up the Cincinnati area until I started working with the Mayor.  It has been my experience that when people are made aware of what spending just 10% of their income that they are already spending within their local community does for their local community, they tend to do this.

Q: I understand you got your first opportunity to see the residential and commercial development happening in the Gateway Quarter. What was your impression? How do you get people to support the revitalization of one of our older urban neighborhoods?

A: I moved to Cincinnati in 2000 and the change to this area is unbelievable.  I was there during the lunch period on a Saturday so there was not a lot of pedestrian traffic in the area.  I understand from some of my younger friends that the nightlife in the area is very attractive.  The way to get people to support this and similar efforts to come to areas that can or have been revitalized is to invite them.  This is a slow process.  The other is to address the concerns people have about traveling to downtown.  The main concern is "where do I park?" as I have heard many times.  I believe the use of social media and short video documentaries made by residents and visitors to the Gateway Quarter will go much further than any type of formal advertising campaign.

Q: Most headlines are about how cities work overtime to keep and retain large corporations. Without undermining the impact these companies make, aren't small businesses equally important?

A: Yes they are.  Large companies do support their local communities with employment, taxes, and contributions to local events and charities.  Small businesses will employ more people.  Also, the assets small businesses generate within the local community are circulated in the form of local attorneys, banking, local goods purchased, and employee related services.  A local government entity will also attract more small businesses than large ones as there are just more small businesses available.

Q: You volunteer with SCORE in our region counseling numerous small business owners. What are some the characteristics of a successful small business, and could you share one or two success stories here locally?

A: The main, shared characteristic of successful small business is the fire in the belly of the entrepreneur owner.  If the business owner does not believe in herself then that business will fail.  Also, the new owner needs the backing from home.  Almost all of the businesses I have helped through closing have not had the backing from home, and it leads to much discourse and strife.  The new business owner needs to have a solid foundation in the type of business being started.  Heather Curless, owner of Greener Stock, a green construction products store, has her degree in architecture and is LEED certified.  She combined her 10 years of architecture experience with her passion for saving the planet into a winning combination with her new store.  She has been open one year now and is doing very well.  Another very good success story is Mike Marks who started Soup du jour in Union Center.  Mike is a graduate of Johnson & Wales University in Rhode Island and has 20 years culinary experience.  He started his restaurant last year with recipes of his own design and built it his way.  Everything in his restaurant is made fresh.  The soups are made in the morning and all salads and sandwiches are made to order when ordered.  He has a winning idea and a passion for his craft.

Q: What are two things you would counsel local business owners to do during the holiday buying season to maximize their bottom line and strengthen their business?

A: Network, network, network.  This should already be being accomplished in the web, social media, and within their local shopping district. Communicate with their loyal clients and customers (the two are very different) what is happening with their store or restaurant via email.  There is no magic answer to getting people into your location "just" for the holiday season.  Small businesses cannot compete with the major marketing venues of larger regional or national stores.  Nor should they.  Offer local products, made by local artists, or crafted by other local businesses and let people know this well in advance.

Q: Conversely, what are two good habits you'd recommend local consumers develop to further strengthen our neighborhood businesses?

A: The Buy Local campaign is one of awareness.  The main reason most people do not buy from local vendors is that they do not know where or who they are.  Also, people are creatures of habit.  If they always stop at a large drive in window establishment on their way home Wednesday nights to get a fast dinner item they will not break this habit.  However, if they become aware that Soup du jour also has a drive up window or if they call ahead their order will be waiting for them when they arrive, this will change a habit [or] pattern.

A second habit consumers can adopt is not waiting to try something new.  I have conducted many business meetings at cafes and restaurants I work with and I usually hear that the person I am meeting "has been meaning to come here."  The only thing that stopped them is that they are in the habit of going somewhere else and it is easy.  Easy is very expensive in lost revenue to our community.  Change is hard, and people follow the herd.  Just think about one item.  Spend 10% of the money you are already spending in your local community.  This is not an increase in your outlay - just a redirection.  Ask your local businesses if they buy any of their products, items, or raw materials from local vendors.  If so congratulate them.  If not ask why not.  The more we can ask questions and raise awareness the better off all of us will be.