orange leaf stripe.jpg THE STATE OF BUSINESS IN MONONA COUNTY, IOWA 2014 BUSINESS RETENTION AND EXPANSION SURVEY RESULTS Monona County Economic Development Partnership for Growth 418 E. Iowa Ave., P.O. Box 135 Onawa, Iowa 51040 712.433.4493 Email: mocoecdev@gmail.com Website: www.mcedp.org banner.jpg mcedp Logo.jpg black graphics.jpg The State of Business in Monona County 2014 Report signature.jpg Monona County Economic Development Partnership for Growth (The Partnership) provides business support in two primary areas: Business Retention & Expansion (BRE) and New Business Attraction (NBA). Both are equally important for building and maintaining a strong local business economy! Our primary Business Retention effort involves conducting Synchronist Business surveys with local businesses. The Synchronist survey covers many topics: business stability, market strength, expansion plans, workforce concerns, local zoning and ordinances, legislative concerns, utility consumption and perceptions of the communities’ strengths, weaknesses and barriers to business growth. Survey results demonstrate how effectively our business community is responding to the challenges of today’s business climate. They also point out opportunities to strengthen our local business community. The Partnership responds to the businesses’ needs by providing a variety of resources including financial, business continuity plans, and workforce development assistance. BRE activities in 2014 also included hosting a Monona County Business Roundtable with Lt. Governor Kim Reynolds and co- sponsoring a Monona County Job Fair for over 115 participants. We provided local businesses with information on the 2014 commercial property tax reduction, and cities with tax credit information for housing development and public buildings reused as commercial enterprise. Thank you to all the businesses that have participated in the Synchronist Business Survey. We appreciate your time and insights! This report is the compilation of survey results spanning 2013 and 2014. Questions or comments? Please feel free to contact the Monona County Economic Development Partnership for Growth at 712.433.4493 or mocoecdev@gmail.com Teresa Miller Executive Director 53% 6% 39% 2% Growing Emerging Maturing/ Stable Declining Business Life Cycle New products or services in the past 5 years? Yes 84% No 16% New products or services in the next 2 years? Yes 71% No 29% Why is it important to know where a business is in its life cycle? Each life cycle has specific challenges and needs. The Partnership has resources to help businesses at any business life cycle. . Growing businesses are successful and profitable. They may expand their workforce and need workforce development assistance. . Emerging businesses may need new marketing strategies and employee training resources. . Maturing/stable businesses may need assistance in changing product lines and marketing strategies to remain profitable. . Declining businesses may need assistance in finding new markets to stay competitive. They may also indicate a business owner ready to sell. Helping a business find a buyer is important-- it keeps a local business operational! . Why is it important to know about the introduction of new products or services in the past 5 years? Why do we ask about anticipated new products or services? The Partnership follows these questions by gathering additional information: . How did those products or services come about? . What made that successful? . What challenges did you face? . Did a new market or trend emerge that directed the new product or service? . Was the product or service initiated and implemented from a corporate entity? If not, what additional support resources do you need? . What resources will you need to successfully launch future new products or services? This is an opportunity to learn about our local businesses: what they do and how they do it. We develop a deeper understanding of their business and create supportive relationships with them. We can more effectively “promote” them within our region and state. 1 Market served Local 78% Regional 15% National 6% International >1% 50% 42% 8% Increasing Stable Decreasing Sales Expansion Plans within 3 years? Yes 25% No 75% 71% 44% 29% 56% Anticipate negative legislation? Anticipate positive legislation? Yes No 5.7 4.9 4.3 4 3.4 2.8 5.6 0 1 2 3 4 5 6 7 Tech investment Property taxes Zoning Community planning Expansion Attraction Quality of Life Why is it important to know about a company’s market? How can we help businesses with sales concerns? . One goal for Business Retention and Expansion is to help companies become more profitable. The Synchronist Survey helps identify opportunities for doing that. . You will notice that 78% of our businesses define their market as local. Businesses that can expand their market to the regional, national or international market will see sales growth. . We have powerful statewide resources for businesses wishing to expand their market by exporting. . Stable sales can indicate a stale market, so we want to see sales increases for business growth! . Sales growth and greater profitability can lead to company expansions and more jobs! . When asked about upcoming legislation, a predominant theme emerged—the majority expected legislation that will have a negative impact on their business. . The majority did not expect legislation that would have a positive impact on their businesses. What do you consider This next series of questions asks survey participants to respond using a scale of 1 (least/ little) to 7 (most/very much) . How would you rate your company’s investment in technology? . How fair and equitable are property taxes? . How fair and equitable are zoning ordinances? . How satisfied are you with community planning in your town? . How satisfied are you with state incentives for business expansion? . How satisfied are you with state incentives for business attraction? . Overall, how would you rate the quality of life in your town and/or Monona County? 2 4.8 4.35 5.25 4.8 3.7 5.4 0 1 2 3 4 5 6 7 Availability Quality Stability 2013 2014 Workforce Finding qualified staff Industry 49% Community 51% Participants are also asked about the challenges of finding qualified employees: Is it harder to recruit due to lack of availability of qualified candidates in the community? Or is it harder to recruit based on the specific skills necessary in your industry? Participants are asked to share insights on the Strengths, Weaknesses and Barriers for business development and growth in Monona County and/or the town in which their business is located. Strengths Most frequently mentioned was the support business owners feel—from loyal customers to city and county officials, formal and informal networking, and strong retail promotions. Also cited: . low cost of doing business . low utility and housing rates . good locations . communities with basic amenities . good schools . a rural/agriculturally based business economy . stable workforce . a couple of large employers Weaknesses Most frequently mentioned was our aging population—we need more working age adults and young families in our communities. Also cited: . generational poverty . too few good paying jobs . too few skilled workers . a lack of appropriate sites for new businesses . too few financial resources for start up businesses . empty Main Street buildings too costly to repair . aging infrastructure . two large markets for competition . lack of a vision for the future Barriers Most frequently mentioned was resistance to change—the belief that key decision makers are protective of self interest. Also cited: . age and size of population . too few jobs . too few skilled workers . a lack of appropriate sites for new businesses . too few financial resources for start up businesses . legislation and regulation 3