The recession, business rates and “turning the corner.” Wexford business owners talk with Wexford Hub.

We at Wexford Hub asked several local businesses to give us their thoughts on topics such as the recession and the importance of social media. The respondents were, in no particular order:

What do you think could be done to improve business in Wexford Town?

Nick Murphy: Personally I think Wexford is not as unfortunate as other towns. We have a good tourist trade and perhaps we need to develop that more. The rental market does need to be assessed as more and more business cannot meet the required targets; hence the amount of empty units.

Ruth Ní Chonchubhair: Cheaper parking rates and a better traffic management could encourage people into the centre of town. Encourage pop-up shops/businesses to move into the town to fill up the many vacant buildings along the Main Street and to improve the flow from one end of the town to the other.

Graham Scallan: I personally feel that it’s up to the general public and all of us now that when we are shopping, to shop local and with registered businesses. There is no room for the black market that goes on in a lot of industries (non registered people offering services like hair dressing, painting, building works that are not registered as a business). If people support the businesses, it means more to the local economy. Shopping online also takes a lot away from our local development. So I ask people to please consider local more.

Anthony Dobbs: Business rates mainly and to a smaller degree, the actual rents. At present we have been in business for almost a year. We mainly trade in markets and online and through social media, but we have been trying to set down a base and move into a store. We have been finding that rates are up to 40% of yearly rents and that is crippling businesses in town. All you have to do is take a walk through the entire town from the south to the north and the amount of vacant stores is scary – And we feel that is the main reason.

Philip Byrne: Lower business rates. Parking should be free around the town from Friday evening until Monday morning.

Rachel Murphy:  I think there needs to be a bigger emphasis on getting people into the town. Parking in Wexford is too expensive for casual shoppers. There is no place to park for just an hour or two without paying up to €4. People don’t want to pay for parking and that’s why they will shop outside the town where they can avail of free parking.

Jorika Kohl: I think something needs to be done when it comes to the rates that businesses pay. They are very high and many small businesses can not work with those high rates.

Ann Marks: I operate from Camolin, just outside of Gorey. However, I feel that the core areas of major urban centres need to be developed with proper planning, whether by the private sector or the local authority. In order to attract customers they (Towns) need the convenience of out-of-town destinations and the diversity of shops to give customers a reason to visit. My husband is Welsh, and I have seen for myself from visiting the UK the damage that can be done to towns (small and large) by neglect. Town centre’s have to compete with the out-of-town centres.

What do you think could be done to improve the town in general?

Rachel Murphy: The overall look of the town at the moment is quite shabby. There has been so much work on improving the main street in the past few years but already the street is covered in chewing gum and looks terrible. The empty units on the main street are not giving a good impression of the town. I know in some cases (Dunnes Stores for example) the owners of the units don’t want a competitor going in to the unit but a hard line needs to be taken with these companies as it’s damaging the town’s reputation. Other units that are available and have interested parties lined up are coming up against people who don’t want a competitor going in (TK Maxx have had one shop owner in the town make several objections to them coming to Wexford). These people need to realise that not only are they preventing new jobs in Wexford but they are objecting against a company that would bring new shoppers to Wexford and these new shoppers will visit more than one shop when they are here!

Jonathon Dunne: Enniscorthy Town Council introduced a shop-front improvement scheme 3 years ago, which was in place prior to the town council being abolished. Shops and businesses were entitled to a set percentage of the cost of improving their shop-fronts, either painting or signage or replacing shop-fronts, etc. There was a maximum amount that they were entitled to. This worked brilliantly obviously being a painter I’m a little biased but it tidied up a lot of shops as rate payers were getting something back.

Ann Marks: The unoccupied units and ‘run down units’ in the centre send out a very mixed message for customers. In saying that, there are areas in Wexford town that that have clusters of lovely well-presented shops. It may be a case of building on these clusters and extending the good presentation further along, unit-by-unit. However I am not naïve: Someone/some group needs to get the idea and fund the investment to get a commercial return, so this is easier said than done.

Philip Byrne: A lot more should be done on the quay front. The maritime festival last year was fantastic, this should be recognised and taken full advantage of. The opera house should have a massive billboard advertising what’s going on every week there. A couple of posters here and there is not enough.

Graham Scallan: I think it’s great to see the Wexford Quay front being used for various events now. It’s a showcase for our town when people arrive and I would encourage that more events are held here and extra facilities be added. Possibly some kiosks huts offering different services that associate with a quay front.

Ruth Ní Chonchubhair: Traffic management around the Bullring and facilities for short-stay parking zones to discourage illegal parking. Many people who have limited time avoid shopping in the centre of town as they don’t want to pay for parking for the sake of 5 minutes and therefore shop on the outskirts in the larger supermarkets.  Use the quay board-walk more. It is a fantastic space and could be used on a regular basis for markets/pop-up establishments rather than the odd festival. Improve the Bullring Market in the centre of town – it’s a really unique market that could draw tourists and locals alike if it was invested in. Street food vendors around the town to promote our amazing local producers.

Anthony Dobbs: I think a little more variety in shops would be an improvement. We feel that there are a lot of stores that compete with each other in the same genre and that there are not enough different places to visit. I think that the Bullring should be the centre point of the town. It’s vibrant and on the weekends it is always busy. I think customer service in many stores is poor and in some of the bigger stores if you ask an staff member a question it is almost as if you are being rude by interrupting them.

Nick Murphy: More free events (funded). Highlight the activities throughout the town. We have some great events like Art In The Open, Wexford Maritime Festival and the Spiegeltent Festival, but it is very difficult for individuals to get funding and there can often be little support from the relevant authorities.

What advice would you offer to those who are thinking about setting up a business in Wexford?

Graham Scallan: Please make sure that you do a business plan. Make it realistic and don’t be afraid to ask questions. Read business books, set yourself and the company targets and plans and review them monthly. I would freely help anyone if they wanted to ask any questions at all.

Philip Byrne: Don’t open a phone or a euro shop. Check out the enterprise boards and other places to help get it off the ground. Don’t be afraid to ask questions, even if you think they are silly.

Anthony Dobbs: Patience and perseverance. No matter what type of business you have, these are two qualities that you really need. Strong marketing and advertising skills are also required. Customer service is key above everything else. Wexford being a small place, word of mouth is priceless. Give people a reason to come to you (advertise) and give them an even better reason to come back (customer service).

Nick Murphy: Get as much advice from relevant bodies such as Wexford Local Development (WLD), the Enterprise Board, etc. See what funding may be available. Create an extensive business plan and try not divert from that.

Ruth Ní Chonchubhair: Network as much as possible, be prepared to work very hard and don’t be afraid to put yourself out there!

Ann Marks: I follow the “if you build it people will come” train of thought and I do not spend too much time doing business plans. Unorthodox, I know, but that is the way I operate. If you have an idea that you are confident about, then press ahead and if you are really enthusiastic about your idea then you will overcome any obstacles that are put in your way. In saying this, it is essential to have a plan B and an exit strategy. If your original plan does not work out admit so, and change.

Rachel Murphy: Prepare to be patient, prepare to work long hours and say goodbye to days off – At least for the first year. It’s not easy but being self-employed is rewarding. Look long and hard at what your business is offering and who your competitors are. What does your business offer that no one else does? Who is your target customer – And importantly, do they have money to spend at your business?

Jonathon Dunne: Network, network, network! I set up at the start of the recession and got some lucky breaks, but I’m 5 years in business without any help or grants and fortunately, I’ve been working full time for most of the 5 years. I networked a lot 3 years ago and I am still benefiting from being in those groups.

How did the recession affect your company? What did your company do to try and mitigate its effects?

Ann Marks: I have been in business for ten years; my other company is Barrow Signs that I run along with my husband. When the recession hit, we were exposed on all angles. It was a bitter experience having to lay off loyal staff and have creditors calling and debtors failing. It was a case of having to adapt, the nature of this business changed, whereas we had been installing signs in major park and ride schemes and at the K-Club for the Ryder Cup, demand changed, average project prices fell. We had to work with our suppliers to ensure we could get a credit line for materials. We added more value intrinsically and started taking on different types of projects. We set up Lily Bloom and www.chalkpaint.ie in 2013.

Philip Byrne: The recession actually helped us with our business! A lot of photographers and wedding suppliers were grossly overpriced. We entered the market at a very reasonable rate and since then we have been able to increase our prices instead of reducing them. We strive to help people save money on their weddings and only recommend vendors we personally think offer great value for money.

Jonathon Dunne: I set up in the recession, so I’m not really sure. I suppose it stopped me making too much money, too soon, which I think is a good thing.

Graham Scallan: Yes, it drastically did and we totally had to diverse our business, which we did, thankfully. We continue to grow now, thank God.

Nick Murphy: I worked in television for a number of years and due to lack of funding because of the recession, the company I worked for could no longer create enough work to keep the company alive and this gave me the incentive to start my own business. Keeping overheads low, I was able to pass on discounts to clients; creating a good loyal client database.

How important has social media (Facebook, Twitter, etc) been to your company?

Philip Byrne: Facebook is one of the most important tool we use in our business. It helps us keep in instant contact with our customers and it shows precisely how many people would see our advertisements, compared to the regular media such as radio and paper.

Ruth Ní Chonchubhair: Absolutely crucial. Facebook, Twitter and Blogger are the lifeblood of Rake of Cake’s marketing and promotional work. It is imperative that businesses nowadays embrace social media and use it efficiently and effectively.

Nick Murphy: Social media is vital to my business, despite having a good client base I still need social media to promote offers, etc. I find Twitter works best for my business but LinkedIn is fundamental in creating contacts within the industry.

Rachel Muphy: Facebook and Twitter have been a great way to get our product promoted at no cost. Easy to use with a huge potential audience. I would say that every business, new and established, should have a Facebook page and Twitter account.

Jonathon Dunne: I use social network, both Facebook and Twitter, but I don’t feel they have helped personally.

Ann Marks: Social Media evolved at around the same time as Barrow Signs and it we did not realise its potential. However when we launched Lily Bloom and www.chalkpaint.ie, social media had established itself as a useful tool for communicating with customers and forms part of the mix, along with radio and magazine advertising. When you look coldly at it, the key is to drive customers to your website or shop, and there will always be people who will not be social media savvy and will need to be targeted by other methods.

Anthony Dobbs: Huge. 50% of our customer base is online and I think too many people take online for granted (you build a website and just expect people to come and buy your stuff). That is far from the truth. Utilise every aspect of social media and if done correctly, then people will visit your site/purchase online.

Graham Scallan: It is very effective as it’s immediate, unlike paper ads or radio ads that you need to get produced.

What do you put your success down to?

Graham Scallan: Hard work, being diverse, working on my business, not in my business. At the end of the day, it’s business not personal, so you need to make each decision on that basis.

Ann Marks: I have a good team around me who all contribute to the business. However, business is fairly simple at the end of the day, and you need to deliver a good product or service to the customer at the right price. Poor service = no customers, over priced = no customers, under-priced = no profit margin.

Anthony Dobbs: Good products, great prices, knowledge of every product we sell and most of all… customer service.

Philip Byrne: Hard work and a lot of help from our families.

Nick Murphy: Very simple – Hard work, belief in what you do and a good quality end product.

Ruth Ní Chonchubhair: Hard work, listening to the customer and providing good quality products that the customer desires.

Jonathon Dunne: Hunger to succeed and not being afraid to approach businesses or people and asking if I can quote for work i.e hotels, building contractors, etc.

In your opinion, what are the biggest challenges that local businesses will face in the future?

Rachel Murphy: Rates need to be addressed in Wexford. Competition from UK and abroad, particularly as Internet shopping becomes more popular. We have to ensure that the product or service we provide is superior to what people can get elsewhere. Customer Service is more important than ever when there is a lot of competition out there, we have to make sure that our business stands out for the right reasons.

Anthony Dobbs: Expense. If rates and rents continue to rise then so will closures. People will not want to try and run their own business for fear of failure and more debt.

Nick Murphy: For shop owners and high street retailers, I think rent is the biggest challenge.

Ruth Ní Chonchubhair: Competing with the large supermarkets and big-brand companies is always a threat. The loss of so many town centre businesses is also a serious problem as it leaves the main street looking vacant and uninviting. More needs to be done to improve the centre of the town, creating a hub of exciting and innovative businesses all working together to boost the town overall.

Jonathon Dunne: Personally, I find that it takes 4 to 6 weeks in a lot of cases to receive payment after a job finishes. From time to time, it puts me under pressure so I suppose credit control/cash flow.

Philip Byrne: The costs of running a business from a premises in town. We have the option of running our business online, but we would prefer to have a physical presence in town for the foreseeable future.

Graham Scallan: Rates are a very high part of Wexford businesses. Big names coming to town are not a worry, they’re an advantage and an asset to the town over the longer term.

Ann Marks: The Internet presents some challenges in terms of the ability of people to shop around for products, but it also delivers the same opportunities. It is about driving customers to your shop/website.
On a bigger scale, future energy costs do concern me, I never thought I would be worried about it but with the instability in the oil-producing countries, it has the potential to increase transport costs and overheads, meaning upward pressure on prices in the shop.

Lately, there has been a lot of talk about Ireland “turning a new corner.” Do you think that this is true?

Ann Marks: Indicators from the sign business suggest that there is an increase in confidence around, with shop owners investing more in their businesses.

Anthony Dobbs: I don’t think Ireland has turned the corner. There are still redundancies all over the place (they are not big headlines anymore) but they still happen. I think again that same old issue rates are crippling business so I don’t feel there is any encouragement from banks or the government to help business owners, especially new and small business owners who we feel are the future of our country.

Graham Scallan: I would be confident to say yes, there has been an uplift, and it’s great to know we are finally at the stage of that. We all need to stay focused now and continue to do as we did over the hard times. For anyone who made it through the recession and are now seeing things start to pick up again, it means they should now start to shine!

Nick Murphy: Definitely – I think people are spending more and are more aware that they need to promote a business which helps my business – Domino effect.

Jonathon Dunne: Personally, I haven’t seen any real difference in the last 2 or 3 years.

Rachel Murphy:  I think we are turning a corner. People have been wary about their spending habits over the past few years but there has been an increase in local spending recently. Most people have changed their shopping habits and want quality products at good prices, rather than buying lots of products. They will invest in one or two quality items or improve/protect items they already have in their homes.

Philip Byrne: Partly true. There are more people coming into our shop than before and spending on weddings has gone up again. We are seeing the like of videographers and rented cars at more and more weddings, where it used to be a photographer and a car owned by a family member.

Ruth Ní Chonchubhair: Yes and no.  Yes, in that people seem to be spending again, be it less than in the boom years. But no in terms of encouraging innovative business. Restrictions, regulations and red tape face every new idea and are stifling great small businesses from even entering the market. Craft beer could be a huge industry for Ireland, but the costs of setting up and selling, purely from a licencing point of view, are ridiculous. Similarly, street food is an amazing trend that has taken over globally. Imagine if Wexford had street food vendors selling creative and unusual foods at various locations around the town (eg. on the quay!). It would be amazing. But health and safety restrictions have gotten out of control, deterring any innovation.