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Module #6 – Business Retention & Expansion

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Why Existing Businesses are Important: Recruitment has limitations Over time, they create more new jobs They invest in the community They are ambassadors for industry targeting and

recruitment

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Two BR&E Models

• Traditional – Volunteer Driven

• Continuous – Driven by Paid Staff

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Traditional Process

Led by local coordinator working with a volunteer leadership team of 10-15 people

Additional volunteers recruited to assist in face-to-face interviews of business owners

Process repeated every 3-5 years

Visit as many businesses as possible

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Traditional Process

Immediate concerns of businesses identified and addressed

Often uses outside assistance to develop survey instrument, analyze data and write report of findings and recommendations

Results in a 2-3 year strategic economic development plan

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Traditional Process

Pros Engages Community Low cost Visits all or random

sample of businesses Shortened data

collection time

Cons Hard to sustain Many communities only

do this once Volunteer time

commitment management Lack of follow-through

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Hours Committed to a Volunteer Driven BRE Program

Local Participants

Through Interviews

Implementation

Overall Coordinator 70 40

Leadership Team Members 45 30

Task Force Members 20 20

Volunteer Visitors 8 0

Firm Owners/Operators 1 0

Outside Assistance    

Consultant 100 30

Report Writer 75 0

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Continuous Process

Managed by local economic development professional

Operates continuously

Visits limited number of targeted businesses annually

Uses face-to-face and telephone interviews

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Continuous Process

Economic Development professional addresses immediate concerns

The economic development professional “narrates” the local economy to elected officials and the public

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Continuous Process

Pros Continuous effort Professionals better able to

inform community about issues

Relationships with businesses developed and maintained

Cons Limited business visits

tends to overlook smaller firms

Systemic issues not identified

Lack of citizen involvement

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Continuous Process

Communities using this approach must address:– Where to “house” the program

• Public• Private• Combination of sources

– How to fund the program– How to staff the program

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Choosing the “Right” Approach

Choosing the “right” approach “is a function of many factors, including community size, economic circumstances, local development objectives, and the level of commitment of (the) public and private sectors to economic improvement.” Alan Gregerman

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Common Program Elements

Leadership Development Community support Partner organizations Business visitation teams Community assessment Survey process and questionnaire Response process Data analysis and interpretation Benchmarks to measure success Report of results

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Leadership

Committed to BRE

Dynamic – leads by example

Seeks opportunities to serve businesses

Willing to partner with other organizations

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Development Community Support

BRE is not glamorous. It does not get the headlines.

BRE must be seen as an equal partner in the overall economic development mix.

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Partner Organizations

BRE is a team sport Existing businesses need access to a wide

variety services Partners include, but aren’t limited to:

– Workforce Development– Community college/vocation school– Financial institutions– Local, state & federal ED programs

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Business Visitation Teams

BRE is a contact sport

While you may learn about businesses over the phone or with a mail survey, nothing works as well as a face-to-face visit

Typical visits require a team of two – one to conduct the interview and one to record responses

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A Community Assessment

You must know your community

Conducting a community assessment identifies both the assets and deficiencies

The assessment also serves as a tool to education partner organizations, visitation teams and the general public

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A Survey Process and Questionnaire Why are you visiting the business?

How you will collect information from the businesses?

Who will you visit?

Where can you find a questionnaire?

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Conducting Successful Business Visits

Identify the purpose of the visit

Establish visitation teams

Train for successful visits

Visit the business

Respond to business concerns

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A Response Process

Develop a response plan before you visit the businesses

Identify critical issues during or immediately after the visit– Information requests– Urgent (red flag) issues– Longer-term (yellow flag) issues

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Data Analysis and Interpretation

Must be done

Is easier than you think

All you need is a calculator and a pencil

Is easier if you use a software package such as a database or spreadsheet

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Establishing Program Benchmarks Decide what should be measured

Focus on positive outcomes

Measure progress, not activities

Conduct intermediate checks on progress

Use commonly accepted and clearly defined measurement terms

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Preparing a Report of Findings and Recommendations Know your readers and write the report and

summaries accordingly

Use a commonly accepted format for business research reports

Tie the report narrative to the survey goals

Use charts, tables and graphs

Document all recommendations with findings from the survey

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