There are many areas throughout the United States that have seen hardships. Because of a downturn in economy or a shift in resident demographics, some areas that once flourished are now having a hard time keeping businesses in the area. For business owners, or those who want to test their hand at entrepreneurship, this offers both risk and reward.
For starters, the risk comes with starting a business in an area that hasn’t seen much revenue in a while. Obviously, you will be investing a lot of time and money into something you can’t guarantee will work. However, the reward comes from taking this risk—and possibly snagging a great deal on some land or a building—and finding success when it does take off.
It all starts with a plan.
In order to take a rundown neighborhood and make it the next “up and coming” area, you need to have a plan. First, you need to decide what your goal is for the area. Will you focus on a stretch of land at first, or do you want to go larger? Depending on what you need, this may require you to buy out current residents or owners.
In addition, you’ll also want to consult with urban planning firms to create a plan of attack on what to do with the area and how it will look. These firms can help you prepare for what may lie ahead, as this is their area of expertise. They may also have some guidance or advice for you to follow as you forge ahead with your endeavor. Having renderings of the design and goals can help you find investors.
Aside from urban planning firms, finding a law firm to represent you will also be beneficial, especially if you start having to negotiate prices or stipulations in order to purchase current property, receive certain permits, or even create contracts with investors. For your benefits, it’s a good idea to opt for those lawyers who have experience in urban planning or real estate law.
Receive some backing.
Most local government officials want to see business spruce up in their area due to the benefits. For instance, more business in the area means more revenue for the city, and this can help defer the cost of taxes or create cash flow for additional improvements in the area.
If you have a specific goal for a certain up and coming area, be sure to get some face time with local government officials, especially the mayor and city planning commissions. Working together with these individuals, and having their blessing, can make it easier for you to influence the neighborhood to get on board as well as earn you some financial backing.
In addition, the local government can assist in helping you acquire certain locations, make deals with residents who may not want to move, or even help you attain certain assets to move forward. Plus, having their partnership means you won’t have much of an up-hill battle to climb when the process starts to move forward.
In addition to the government, you need to find some investors. Obviously, you can’t do a project without cash, and you need people to invest in the area to get the cash. This requires having a solid business plan and targeting the investors you believe would be willing to take the risk. By visiting these investors with a plan, backing from the local government, and renderings and plans from an urban planning commission, it will make it more formal and give the investors some actual data to use to make their decision.
Getting the green light on a project is not always an easy feat, but when you know exactly what you’re doing and how you need to go about it, you can make it easier on yourself to turn a rundown neighborhood into the place to be.