business recruitment for small scale communities
TRANSCRIPT
BUSINESS RECRUITMENTFOR SMALL SCALE
COMMUNITIES
Wisconsin City/County Management Association
March 7, 2014
ON TAP FOR TODAY
What Does My Community Have?
What’s Missing?
How Do I Fill the Gaps?
How Do I Find/Talk to Targeted Companies?
Tips, Tricks and Examples for Successful Recruitment
WHAT IS MY MARKET?
What it is not:• It does not stop at the City limits.• It is not concentric circles around your City.
WHAT IS MY MARKET?
On the Map tool – commuting distance & direction
WHAT IS MY MARKET?
Modified Reilly’s law –distance to nearest competition
Ask your local retailers ‘where do 80% of your customers come from? 15 mins
WHAT IS MY MARKET MISSING?
Vacancy and rent survey
• Is there space available for
rent at sizes under 5,000
square feet for all property
types?
• Can I find out about these
spaces?
WHAT IS MY MARKET MISSING?Retail supply and demand gap analysis
• Consumer Demand – Local Sales = Demand Gap
• If size of gap = twice average revenue per business,
business recruitment is possible
• Identify sectors without competing businesses already
located in communities within trade area
Category ConsumerDemand
Local Spending
Gap Average Per Store Sales
Grocery Sales
$25 million $10 million $15 million $20 million
Don’t know?www.sizeup.com
WORKFORCE SURVEY
Workforce education & occupationLabor shed boundariesGrowth sectors (EMSI)Talent Gap (import vs. export)
FILLING THE GAPS
Local vs. CorporateNew Space vs. InfillIncentives vs. Costs
RETAIL CONSIDERATIONS
Chain/FranchisePopulationCompetitionLocal Investor
Locally OwnedSupply GapSuitable Space
INDUSTRY LOCATION CRITERIA
Minimum 5,000 Residents
Minimum 100 prescriptions per day
Minimum 9,500 square feet
Signalized intersection
Available workforce
Minimum 15,000 cars per day
Minimum 2,000 daytime workers
Parking ratio
HIERARCHY OF RETAIL
• $400k in annual revenue
• $800k in annual revenue
• $1.2m in annual revenue
ARE RENTS REASONABLE?
Financial Feasibility ExampleAverage revenue per coffee shopAverage cost of a cup of coffee# of coffees needed to be sold daily
Asking Rent
Monthly Rent Payment
AveragePrice of Coffee
Number of DrinksSold Per Month to Cover Rent
Number of Drinks Sold to Cover All Expenses
$6/SF $1,100 $2 550 3,600
$10/SF $1,833 $2 916 12,000
OFFICE CONSIDERATIONS
Local resident passions
Non-Broadband professionals
Work from home individuals
Shared ‘hobby’ space
Small lease spaces
Shared services
TIPS & TRICKS: EXISTING SPACES
Standardize Lease
Temporary Uses
Marketing
Visualizations
Network your residents
Cell/Wifi coverage
TIPS & TRICKS: NEW DEVELOPMENT
Leverage community needs
Account for startup failure rate
Creative approaches – shared purchasing, industrial catering, fuel purchase, etc.
Network your residents
CASE STUDY: ORD, NEBRASKA Population: 2,089
Project: Scratchtown Brewing Company
Origin: Farm Community and Local Brewers
Funding: Online Kickstarter-like Campaign
CASE STUDY: PILOT POINT, TX
Population: 3,993
Projects:
• Gas Station – restaurant
conversion
• Hire at Home Initiative
Results: New restaurant,
coffee shop and art studio
CASE STUDY: PELLA, IOWA
Population: 10,000
Project: 3,000 square foot Coworking
Facility for local business community
featuring training and shared resources
Origin: University, Chamber and local
business community
CASE STUDY: STUDENT ASSISTED DESIGN
Location: Milwaukee,
Colorado, Minnesota
Project: Blight elimination &
vacant space enhancements
Origin: Community assistance
for renovation of long-vacant
property
ALWAYS
Know what you need
Know what you are willing to offer
Understand industry specific cost factors
Make meaningful and strategic investments
Tell a story
QUESTION & ANSWER
Thank You
CONTACT
Errin WeltyDowntown Development Account ManagerEconomic & Community Development(608) [email protected]