Module #6 – Business Retention & Expansion

1. Module #6 – Business Retention & Expansion

2. 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

3. Two BR&E Models • Traditional – Volunteer Driven • Continuous – Driven by Paid Staff

4. 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

5. 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

6. 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 Traditional Process

7. Hours Committed to a Volunteer Driven BRE Program

8. Continuous Process • Managed by local economic development professional • Operates continuously • Visits limited number of targeted businesses annually • Uses face-to-face and telephone interviews

9. Continuous Process • Economic Development professional addresses immediate concerns • The economic development professional “narrates” the local economy to elected officials and the public

10. 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 Continuous Process

11. 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

12. 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

13. 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

14. Leadership • Committed to BRE • Dynamic – leads by example • Seeks opportunities to serve businesses • Willing to partner with other organizations

15. 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.

16. 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

17. 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

18. 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

19. 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?

20. Conducting Successful Business Visits • Identify the purpose of the visit • Establish visitation teams • Train for successful visits • Visit the business • Respond to business concerns

21. 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

22. 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

23. 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

24. 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

25. LouisianaCommunityNetwork.org