Posted by Steve Marr in Untagged
The story line is familiar. A hurricane strikes. An earthquake destroys buildings. A tornado wipes out part of a town. Emergency responders rush in with aid. TV crews show us the damage and destruction. Early responders fill a need. When they leave, the long term issues for business owners begin.
When emergency and relief people rush in, many small businesses experience an increase in sales. Relief and construction workers buy gas, food, and supplies while on the job. Businesses may believe they are experiencing the start of a solid recovery.
Most small businesses, especially those with retail locations, get the majority of their business within a two mile radius. I have asked several businesses to survey actual customers by location to determine how far they travel. The result confirmed that the two mile distance is a key factor. As the distance increases to three to five miles, customer concentration drops much faster.