Wisconsin Basic Economic Development Course. Business Retention and Expansion

Transcription

1 Economic Business Retention and Expansion

2 Business Retention and Expansion SLIDE 2 Overview What is Business Retention and Expansion? Why is it Important? How do you Conduct BRE Successfully? What Outcomes can you Expect? Why will it Matter to your community?

3 What is BRE? SLIDE 3 Wisconsin Economic Basic Economic Sept Nov 11-14, 8-11, BRE is the process by which an EDO secures its base of businesses, limits firm defections, and enables growth among existing businesses. Secure Base Limit Defections Enable Growth

4 What is the primary tenet of a BRE program? SLIDE 4 Wisconsin Economic Basic Economic Sept Nov 11-14, 8-11, Communication - open and trusted communication between EDO and CEO The EDO must earn the reputation as the CEOs trusted advisor

5 Why BRE? SLIDE 5 Business retention and expansion is the prerequisite first step for all economic and workforce development initiatives. The insights and intelligence gained through systematic BRE efforts will provide impetus for future strategic entrepreneurial development and business recruitment. Strong BRE programs build the community s reputation as a good place to do business.

6 What are the Primary Tools of BRE? SLIDE 6 Intelligence Communication Response Economic Data One to One Interviews Access to Information Industrial Marketplace Focus Groups Problem Solving Tools Surveys Advocacy

7 What is the Best Way to Provide Assistance? SLIDE 7 Direct Assistance Facilitate - Broker Advocacy

8 What does a Successful BRE Program Include? SLIDE 8 Step by step Plan with Outcome Orientation What you Need to Know Who you Need to Survey How you will Use the Information Focused Survey Trained Interviewers Questions that Need Answers Short-term Response Procedure Immediate Thank You! Professional and Customized Response Long-term Plan for Change Tabulate overall Results Look for Trends and Outliers Incorporate knowledge into Business and Strategic Plans

9 What is your Objective? SLIDE 9 Map the Value Chain Develop Contingency Plans Facilitate Networks Wisconsin Wisconsin Basic Basic Economic Economic WI Grow your Economy Remove or Mitigate Obstacles Become more Competitive Identify and address business needs to retain, sustain, and build local businesses Align Education Workforce and Industry

10 The Business Survey What is your product + how does it fit in the industry? Industry Organization SLIDE 10 What process do you use to manufacture your product? Employment Capital Investment Physical Plant Wisconsin Wisconsin Basic Basic Economic Economic WI What has been the key to your success in our town? Is there anything inhibiting your growth? Business Climate Network Capital Needs Regulatory Environment Quality Workforce How can we help? Problem Solving Access to Info/Tools Advocacy

11 The Business Survey Sample Questions Products, Services, Sales) SLIDE 11 Wisconsin Wisconsin Basic Basic Economic Economic WI 4. Which of the following industries best describes your business? (circle one) (1) construction (2) manufacturing (3) transportation and public utilities (4) wholesale trade (5) other (specify) 5. What are the major products or services offered by this establishment and what percentage of your sales come from each one? Major product or service % sales (1) (2) (3) (4) (5) other products or services Total 100% 6. What is special or unique about your major products or services?

12 The Business Survey Sample Questions Suppliers / Customers SLIDE 12 Suppliers/Customers What raw materials or other components are used to create or produce your product or service and where do they come from? (Please specify point of origin by city, state, and supplier) 9. Raw Materials or Other Components 10. Point of Origin (Specify city, state, and supplier) 11. How are raw materials sent to you? (Circle) Truck Rail Air Other 12. How do you ship your products? (Circle) Truck Rail Air Other 13. In what industries are your major customers? 17. Is the percentage of products imported from other states or countries? (Circle one) increasing stable decreasing If increasing or decreasing, what goods or services are involved, and from what location(s)? (Match products to locations) 26. Are there suppliers or customers that would benefit by being located closer to this facility?(circle one) Yes No 27. If yes, list the companies and location:

13 The Business Survey Sample Questions - Employment SLIDE How many employees work at this location? full-time part-time 3-years ago 29. If the number of employees changed from three years ago, please explain the major business factors that led to this increase or decrease. 30a. Does your company have problems recruiting employees? (circle one/line) Category YES NO UNSURE (a) general labor (b) general production labor (c) precision production/specialty skills (d) clerical (e) sales (f) professional/management (g) information technology (h) temporary/contract employees (i) youth employees Do you expect the number of employees by to + or or = the next three years? 32. Overall, how do you rate your employees with respect to their attitude toward work and their productivity? (circle one per line) Excellent Good Fair Poor (1) attitude toward work (2) productivity

14 How do you Decide Who to Survey? SLIDE 14 Focus on individual companies and industries that can seize opportunities, take action, and catalyze other businesses within your community Size the company is a major employer or taxpayer Industry the company represents an industry critical locally Ownership the company is locally owned or controlled Market the company sells goods outside the market area Innovation the company aggressively incorporates technology into products and processes Investment the company continually invests in plant, equipment, and employees

15 What is the Best way to Survey? SLIDE 15 Survey Methods EDO CEO Interviews In-person surveys by volunteers In-person surveys by ED staff Combined mail and in-person surveys Telephone surveys Mail, , or web-based surveys

16 What to do After the Survey? Immediate SLIDE 16 Review surveys for requests Red-flag at risk firms Short Term (two weeks) Send a thank you note Tabulate surveys Create a file for each company Medium Term (four weeks) Ensure all requests have been answered or are in process with firm with at least weekly updates Long Term (two months and continuing) Update firms on progress in addressing business climate issues and next step strategies

17 Ten Early Warning Signs: Red Flags SLIDE 17 Declining sales or employment Larger, non-local corporate ownership Recent ownership or management change Lease of property / expiring leases Other facilities produce same product Negative attitudes about the community High regulatory burdens Union contract expirations Expanding employment / sales Expansion plans

18 Example: I can t find the workers I need to be competitive. SLIDE 18 Short-term Employment Services Medium-term Training Long-term Worker Pipeline Access to employment services Alternative employment relationships Upgrading skills of existing workers Customized training Industry specific education and career academies w career ladders/lattices Workforce attraction strategies

19 Measuring Impact SLIDE 19 Sept 10-13, 11-14, EDO Commitment Collaborating Entities Volunteers Inputs Outputs Surveys Interviews Technical Assistance Training Incentive Provided Regulation Waived Introduction Made Financing Found Problem Solved Outcomes Impact Investment Made Employees Trained Salaries Raised Tax-base increased Company Saved Jobs Created

20 What will you Gain? SLIDE 20 BRE programs present an unparalleled opportunity to gather information on individual businesses within your community and how they interact within your marketplace BRE intelligence may be used to diagnose problems, create solutions, target and align programming, and plan for the future BRE intervention enables businesses to expand to capture value, entrepreneurs to assess business opportunities, and EDO s to recruit strategically

21 Summary BRE is Fundamental SLIDE 21 80% of jobs are created by Existing Businesses Prioritize Companies that Seize + Leverage Opportunities Add Value thru Access to Info, Tools, Support, + Advocacy Basis for Entrepreneurship + Recruitment Maintain + Build Long-term Trusted Relationships