Keeping Business Close To Home



Think Local First (TLF) has a message for Ann Arbor: support local businesses or watch them vanish. Our characterful downtown and charming neighborhood shopping districts could wither, to be replaced by big-and-bigger boxes owned by outsider companies.

Ingrid Ault is executive director of TLF, a county-wide network of locally-owned independent businesses. She'll talk about community building and decline on Thursday, Feb. 24 at Concentrate's Speaker Series. The free presentation takes place from 5-7pm at Conor O'Neill's, 318 S. Main Street.

Locally-owned businesses contribute more to the local economy than companies based elsewhere, the nonprofit group says. Those businesses keep a larger proportion of their revenues in town, as much as  $25 more out of every $100. That money is spent on supplies and services sourced in the area, adding a multiplier effect.

TLF started in 2003 and is the brainchild of Lisa Dugdale, who wanted to spotlight independent area businesses and encourage shoppers to support them. Dugdale still serves on the TLF board.

Eight years ago, Dugdale found strong interest because local businesses were losing ground to chains and big entities. "They hadn't been able to communicate to people in Ann Arbor (that) there is a difference. People who are an integral part of making the community won't be around without the support of the community," she recalls.

Today, TLF has 222 current members, mostly businesses. They include 31 original members, among them 16 Hands Gallery, Abracadabra, Fourth Avenue Birkenstock, Dascola Barbers, and Gretchen's House – all were instrumental at the launch, Ault says. Some prominent original members have, unfortunately, closed shop: Shaman Drum Bookstore and Wilkinson's Luggage.

The group's goal is to reach 500 members by 2012. Membership fees are $50 for individuals and $120 to $345 for businesses, depending on annual sales. TLF's annual budget is $70,000. Ault is the only (part-time) staff member.

Ault became TLF executive director in 2008 following work in advertising, apartment leasing, new home construction and government. Her training is in urban planning. The job opening came about, Dugdale says, because after five years, it was time for her to step down. Dugdale continues to do nonprofit consulting; she also works for a River Rouge nonprofit.

"I like to get things started – that's half the hard part. Keeping them going is the other part," she says."If you're the only person doing it, it can take on your own skills and interests. To become Think Local First, it needed somebody with different passions and interests."

"I wanted it to be a broader community institution. It seems to have come through – I'm glad to see it make the transition effectively and still be part of the community."

In an ideal world, Dugdale says, we would have a locally-owned business selling products sourced and manufactured locally. The Michigan economy makes that nearly impossible these days, but when things turn around, she expects to see strong growth in the buy-local scene.

"I'm really glad that Ann Arbor has the business leaders it does – a core group of conscientious, forward-thinking businesses. Not every place has that," she says.

TLF was one of the first 20 networks to join Business Alliance for Local Living Economies (BALLE), a national clearinghouse for buy-local groups. Through BALLE, member groups share best practices and sound out new ideas. Zingerman's Paul Saginaw was appointed to its board a year ago.

When TLF first started, members had a strong interest in sustainable business practices. With the collapse of Michigan's economy, they struggled just to survive. Many long-time businesses are struggling now because they never embraced new technology. Some don't even have an email address, Ault observes.

"They needed somebody to do the Buy Local marketing part of it. Other networks (nationally) have done more with sustainability, but because Michigan is in the situation it's in, we needed to communicate the value of having local businesses," Dugdale says.

Many retailers were founding members, Ault says – a result of Dugdale's outreach, literally walking around town and selling the organization's goals. Since then, the buy-local movement has really gained traction, but recruiting members still isn't a sure thing. "It's both a hard and an easy sell. Some people get it right away. Others come around. Some people never see the worth," Ault says.

Among its projects, TLF publishes a compact annual Local Resource Guide of independent businesses in the county and beyond. The 2011 edition is available now at member establishments such as The People's Food Co-op. The next focus for the group will be food because it's an obvious fit for TLF, Ault says.

TLF also received a grant from the Ann Arbor Downtown Development Authority to study local, or scrip, currencies. It found many groups have been looking at the issue and there are some such currencies out there already. Without funding to continue, TLF connected the groups and left the project. "We'll see where it will go from there," Ault says. "Local currencies can be great drivers for community economic development. You need a champion to manage it long after the launch. The topic is still in conversational mode."

A recent membership survey found that TLF members want a local gift card that will be financially viable (unlike the former Ann Arbor Gold program), Ault says. Such a program would be easier to manage than a currency, which requires a lot of administration.

At her February 24 presentation, Ault will talk about a big topic – local washing, the practice of disguising branches of national chains as small independent businesses. TLF spotlights the practice in a video on its web site.

"Clearly you've made headway when the big guys want to use your terminology. One real estate company runs a ‘Shop at the Mall – it's local' campaign," Ault says.

"Starbucks surveyed many local cafes much like this one (she gestures around Sweetwaters on Washington Street) to see what makes them attractive, appealing, busy, charming. Now Starbucks is starting its own secondary chain with deceptive names like 123 Washington. People are duped by it all the time."


Constance Crump is Concentrate's senior writer. She's also an Ann Arbor-based writer whose work has appeared in Crain's Detroit Business, The Ann Arbor News, The Detroit Free Press, and Billboard Magazine. Her previous article was Astonishing Tales Of Real Scientists!

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All photos by Doug Coombe

Photos

Ingrid Ault at Kerrytown Market

Lisa Dugdale at Arbor Farms Market

Ingrid Ault at Keerytown Market

Lisa Dugdale at Arbor Farms Market
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