Last week, I received a note from a potential business owner who is thinking of coming to Palm Springs. I thought I would share that note and my response with you.
I came across your blog/newsletter online while trying to research the potential of buying an existing business in Palm Springs. I am wondering specifically if the Palm Springs economy is in any stage of recovery? Of course, the chamber and many who are trying to encourage growth to the area are going to be very optimistic. I understand that, but I am looking for reality. I would be just one of the small guys trying to build a small business and make a “decent” living from it. Perhaps the playing field right now is only with the big guys as they can take the risks and afford the wait better? And philosophically speaking, will the recovery look like anything it did before?
So, as a previous member of the Chamber and a marketing guy in the PS area, do you have any insight for me? Also can you refer me to any data/statistics on businesses closed, opened, demographics (residents and tourist seasons), etc, etc.
Anything else you might suggest is welcome, or anyone else to talk to.
Thanks so much.
Thanks for the note. You ask some great questions and I wish I could be optimistic for you. However, in this economy, any new business venture is a wild card. If you are prepared to “weather the storm” there are some great opportunities right now in Palm Springs. Rents/leases are at an all-time low and if you commit to a 5 – 10 year lease, you could be in great shape when the economy breaks.
On a positive note, the city council is close to approving an $80 million deal with a local contractor to demolish our old, closed down, downtown mall and build a great new project with new streets, retail, Movie Theater and green space. They hope to break ground early next year and finish the first phase by 2014. It will revitalize our downtown area and should make being a business owner very attractive.
Also remember that Palm Springs is a tourist location that is very seasonal. Many business close down in August and our tourism takes a pretty big hit during the summer months. I have noticed in the last five years that we are getting more and more travellers joining us on the weekends from LA and San Diego. Palm Springs is a great outlet for those who want to drive less than 2 hours and enjoy our beautiful desert.
The city of Palm Springs website may contain some statistics that should shed some light on our current business climate. Also, the Economic Development Department would be happy to answer any questions you may have. Just go to the city website for more information. Google Palm Springs and it will take you there. Feel free to write if you have any further questions.
Best regards,John Pivinski Vision Marketing of Palm Springs firstname.lastname@example.org