A Conversation With Jim Plouffe
The St. Ignace News asked author and Michigan entrepreneur Jim Plouffe to share some of his insights with local small business owners who may be struggling.
Q. You've counseled business owners from all over the country. Can you give any suggestions that would apply across the board to Straits area small businesses, in particular?
A. "St. Ignace, specifically, survives because of tourists. Then we have tradesmen who survive because of local business and Mackinac Island business. We need to create an advantage in the minds of travelers, then promote it. But St. Ignace doesn't compete. St. Ignace needs to create a story to sell itself, evoke emotions in people so they want to come here. Stress our advantages, for example, the boardwalk. How about 'Boardwalk City, where the fun begins.' It's a start. Fun is remarkably salable. We need to create fun experiences for our customers, and then make sure they're promoted downstate. The casino is another draw that should be promoted. Other local communities don't have that."
His advice for local businesses is the same: Promote a distinctive element.
"Across the board, businesses in St. Ignace need a competitive advantage, distinct from nearby destinations, that they focus on and actively promote. Reinvent the ambiance of St. Ignace."
Q. What about increasing traffic for small businesses here?
A. Developing more events in town is a good start, he said, to build on the success of perhaps the biggest draw, the car show.
"We theoretically need an event every weekend, and target different groups with every event. St. Ignace is gorgeous. We could make that competitive advantage just shine."
Small business owners are smart, he said, and they often know more than they realize about promotion.
"It doesn't have to be a great big idea. You don't need to come up with the next McDonald's. You just need one little idea, piled up on one other little idea, piled up on another. Opportunity is always knocking - it's whether you can find a way to exploit it that makes the difference."
Q. What is your advice for those who have a good idea, but struggle to find financing?
A. "Everything has a risk and a reward. The old saying is, if you have a great idea, you can always find the money. There's always a way to find financing. You might have to take a higher interest loan than you would ideally want. There are partnerships, equity stakes, even angel investors out there. It's staggering to me how many sources for funding there are."
Q. How can a person decide if he or she should go ahead with an idea to open a new business?
A. Any proposed venture should be put through the "paper and pencil test." Weigh the costs of operating the business against the sales needed to make a living. There are only two resources any business owner has to draw from: time and money.
"Those who don't have much money to invest, must invest more effort and time."
Q. What do you think of the small business climate here in Mackinac County?
A. The greatest hindrance to the business climate here is not having a sufficient year-around population. Too many businesses in Mackinac County fail because sales just cannot realistically support the business.
"What we really need is yeararound employment that pays a livable wage. We need those jobs, and the way to do it is we'll have to somehow go out and get them. The way to do it will not be by getting the next grant, I'll tell you that - not that we haven't got some wonderful things accomplished here through grants. But you create an economy through jobs, not through grants."
"You make the big money in cities, not in rural areas. That's what draws people to cities, that's why I went to Denver. How many Mercedes Benz do you see in St. Ignace? But in Birmingham, every- body has one. In cities, though, crime is higher. There are some trade offs."
Q. Can you explain some of the successes, or the challenges, you've faced with your own businesses here in St. Ignace?
A. Mr. Plouffe and his wife, Margaret, host weddings at their waterfront property on Pointe LaBarbe Road, where they employ five seasonal workers. It's successful, Mr. Plouffe said, because it offers a great convenience - couples can hold the ceremony, rehearsal dinner, family gatherings, and reception all at one site. Their customers all come from other areas, seeking destination weddings at the Straits. Lighthouse Point can accommodate up to 30 guests for a four-day wedding package. At the same time, the business attracts overflow wedding guests to stay at other local hotels.
"You want to find a way to create, for your community, instead of taking away," Mr. Plouffe said. "If you buy a vacant building or unused property, you're creating because you're paying taxes. If you bring people to the area, you're creating traffic for other small businesses."
He also attributes the wedding site's success to good local infrastructure, such as other nearby hotels, restaurants, and attractions, that offer his guests and overflow guests a nice vacation experience. He considered, but rejected, another Mackinac County site for the wedding service because there wasn't supporting infrastructure nearby.
"On the other hand, my Millionaire's Car Club [on US-2 in Moran Township] probably would have done better somewhere else. The location isn't right for it."
Q. Can you give a specific example of something any business here could use and promote as a strong competitive advantage?
A. Customers always remember extra service, and something as simple as that can be a business' competitive advantage. He gave the example of a local hotel that offers a free shuttle to pick up his wedding guests after a late-night reception.
"Service can be a huge competitive advantage. Now we will probably work more with that hotel, because it offered a free service to make our guests feel special and important, and that's what they want. Make them feel more important than anyone else does. There's your advantage."









